project report consumer behaviour (icici pru)
TRANSCRIPT
PROJECT REPORT
ON
A STUDY ON “CONSUMER BEHAVIOR” ON CAPITAL GUARANTEES SCHEMES IN REFERENCE TO ICICI PRUDENTIAL LIFE INSURANCE
COMPANY LTD.
BY
Dasari Ravi
REGISTRATION NO: 80339011
SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR
THE AWARD OF MASTER OF BUSINESS MANAGEMENT FROM
Dr. K V Subba Reddy Institute of Management ,
Kurnool.
SRI KRISHNA DEVARAYA UNIVERSITY
2009-2010
1
ACKNOWLEDGEMENT
I would like to begin my report by extending a sincere word of
thanks to Dr. K V Subba Reddy Institute of Management,
Kurnool and ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD for
giving me an opportunity to work on this project, as apart of my academic
program. It had been a very knowledgeable experience for me working on
this project. This project help me enhanced my level of confidence a lot
I would like to show my sincere gratitude to my Unit Manager ICICI
PRUDENTIAL LIFE INSURANCE CO LTD: Mr. M.R. Kiran (Company
Guide) for giving me the opportunity to work in his esteemed organization.
I would like to thank Mr. Kiran Kumar faculty member Dr. K V
Subba Reddy Institute of Management, Kurnool for giving me
invaluable suggestion and priceless guidance without which, and my
project would have been in complete. His contribution extend beyond the
project, in that he instilled in me a disciplined, systematic and a logical
approach
I also extend my heartfelt thanks to the management and staff of
ICICI PRUDENTIAL COMPANY for creating an extremely informal,
responsible and flexible work culture career prospect.
I would like to give special thanks to Mr. P.MYTHIL RAJ
(Marketing Manager) ICICI PRUDENTIAL COMPANY LTD Kurnool
branch who had given me a opportunity to work in ICICI prudential.
Last but not the least I would extend my heartiest gratitude to my
parents. And friend for their constant support and endeavor that helped
me move ahead with my work and make it a success.
Dasari Ravi
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DECLARATION
I Dasari Ravi declare that this project titled “CONSUMER BEHAVIOR” ON
CAPITAL GUARANTEE SCHEMES in reference to ICICI PRUDENTIAL LIFE
INSURANCE COMPANY has been carried out by me in ICICI PRU LIFE
(KURNOOL) under the able guidance of Mr. Kiran Kumar faculty member
Dr. K V Subba Reddy Institute of Management, Kurnool. I further
declare that it is my original work as a part of my academic course.
Dasari Ravi
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CONTENTS
CHAPTER TITLE OF CHAPTER PAGE NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
EXECUTIVE SUMMARY
INTRODUCTION IMPORTANCE OF THE STUDY OBJECTIVES OF THE STUDY SCOPE OF THE STUDY METHODOLOGY OF THE STUDY LIMITATIONS OF THE STUDY
INTRODUCTION TO INDIAN INSURANCE
MARKET
LIFE INSURANCE MARKET
MARKET SHARE AND GROWTH
INSURANCE INDUSTRY A SWOT -ANALYSIS
COMPANY PROFILE
DATA ANALYSIS AND INTREPRETATION
SUGGESTIONS
CONCLUSIONS
BIBILIOGRAPHY
ANNEXURE
4
EXECUTIVE SUMMARY
5
EXECUTIVE SUMMARY
As the title of the project suggests the main aim of the project lies in
studying the marketing process of insurance products and during this
process to understand the psychology-customer behavior and various
reactions of the customers as prospects.
Insurance business has traditionally been at the mercy of tax
savers and business booms in the financial yearend. However the influx of
private players in the foray has changed the business outlook of this
industry.
The project gives an introduction to the concept of insurance
followed by its origin and history in the world and in India and then
discusses the current market scenario. Further the project gives
introductions of ICICI prudential life insurance company ltd. and the
various products it has for offering to the public.
The project then briefly discusses about the sales interviewing
script, methodology of research, consumer opinion analysis, direct selling,
and market segmentations etc.
A sample size of 110 consumers was taken and their responses
are briefly analyzed, tabulated, to know the reactions of customers
regarding insurance products of ICICI PRU LIFE.
During the study it was found that most of the people has good
opinion about ICICI PRU LIFE and most of the people are interested in
investing their money in insurance and considering safety and profits as
factors for their investments.
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INTRODUCTION
7
INTRODUCTION
IMPORTANCE OF THE STUDY:
The main aim of the study can be summarized as a study into the
consumer behavior in the process of selling of insurance products and
thus it is primarily based on the study of consumer behavior i.e. how
individuals make decisions to spend their available resources (time,
money, effort) on various items. As marketers, it is important for us to
recognize why & how individuals make their consumption decisions so
that we can make better strategic marketing decisions, if marketers
understand consumer behavior they are able to predict how consumers
are likely to react to various informational & their marketing decisions
concerning product, price, promotion & distribution can be altered
according to consumers perceptions.
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OBJECTIVES:
The main objective of this project is to study the customer behavior
and various reactions of customers with reference to ICICI prudential life
insurance co., and suggest ways to improve its marketing efforts.
1. To Study the tends in Life Insurance Market
2. To Study the profile of ICICI Prudential Life Insurance Co.,
3. To Study the investors behaviour with respect to ICICI life insurance
4. To Analyze the investors perceptions about ICICI life insurance
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scope
The study is confined to the life insurance market, about the
investor preferences towards life insurance and a specific focus on the
ICICI Prudential Life Insurance has been made.
1 To understand the psychology of customer behavior and the reactions
of the customers when they are approached.
2 To develop an overall view of the insurance sector in the company.
3 To understand the selling mechanism and various techniques involved
in the marketing of insurance products
4 To understand customers perceptions regarding for opting of life
insurance.
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RESEARCH METHODOLOGY:
Methodology selected in order to realize the research objective of
the present study of survey by interview
RESEARCH DESIGN:
The study conducted is exploratory in nature. It involves a survey of
consumers for understanding consumer behavior and various reactions of
customers in reference to ICICI Prudential Life Insurance Co.
DATA SOURCE:
The primary data was collected from the consumers
RESEARCH INSTRUMENT:
The research instrument used was a structured closed
questionnaire backed by personal interview for data collection.
SAMPLE SIZE: 110 CONSUMERS
SAMPLING PROCEDURE:
Sample size of 110 consumers covering various segments like
manufacturing,
Pharmaceutical industries, construction, services sector and
business people from Twin cities & surrounding areas.
The completed questionnaire were compiled, tabulated and
analyzed so as to understand and find solutions, which will guide on
reaching the objectives of the study.
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Limitations:
1. Only life Insurance market has been studied
2. Only few investors were considered for the study
3. Relates to two years data
4. The study was carried out in Kurnool only, hence the results cannot
be extended to National level.
5. Few respondents are not cooperative enough owing to their busy
Schedule.
6. Time constraint had become a hindrance to go for largesampling.
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INSURANCE MARKET
IN
INDIA
13
INSURANCE MARKET
THE CONCEPT OF INSURANCE
The business of insurance is related to the protection of the
economic value of an asset for which a normal life time exists during
which it is expected to perform. However if the asset gets Damaged,
Destroyed or is made non functional by the occurrence of some
unfortunate event the owner of the assets suffers .Insurance is a
mechanism to reduce the financial implications of such consequences.
The mechanism involves people who are exposed to the same risk
come together and agree that if any one of the members suffers a loss the
others will share the loss . Thus people facing common risk come together
and make their contribution towards a common fund whose amount is
determined beforehand on the basis of past data and experiences.
The fundamental underlying principle of insurance is
1) Losses must be definite and discreet in time and place
2) Losses must not be fortuitous in nature and beyond the control of the
insured
3) Losses must be large enough to cause a financial burden
4) Losses must be measurable or calculable and a monetary amount
should be determined to compensate the loss
5) Past history of the specific losses should exist to help the actuaries to
estimate frequency severity and costs involved and determine fair
rates of insurance.
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6) The cost of insurance should be affordable by the parties and should
be a fraction of the value of the insured Item.
Thus we see that a large number of homogenous units
(people .companies, Entitles) with a similar potential for loss exposure
must be available for insurance and this is generally referred to as The
Law of large numbers.
Life Insurance
Almost 4,500 years ago, in the ancient land of Babylonia, traders
used to bear risk of the caravan trade by giving loans that had to be later
repaid with interest when the goods arrived safely. In 2100 BC, the Code
of Hammurabi granted legal status to the practice.
That, perhaps, was how insurance made its beginning.
Life insurance had its origins in ancient Rome, where citizens
formed burial clubs that would meet the funeral expenses of its members
as well as help survivors by making some payments.
As European civilization progressed, its social institutions and
welfare practices also got more and more refined. With the discovery of
new lands, sea routes and the consequent growth in trade, Medieval
guilds took it upon themselves to protect their member traders from loss
on account of fire, shipwrecks and the like.
Since most of the trade took place by sea, there was also the fear
of pirates. So these guilds even offered ransom for members held captive
by pirates. Burial expenses and support in times of sickness and poverty
were other services offered. Essentially, all these revolved around the
concept of insurance or risk coverage. That's how old these concepts are,
really.
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In 1347, in Genoa, European maritime nations entered into the
earliest known insurance contract and decided to accept marine insurance
as a practice.
The first step...
Insurance as we know it today owes its existence to 17th century
England. In fact. it began taking shape in 1688 at a rather interesting place
called Lloyd's Coffee House in London, where merchants, ship-owners
and underwriters met to discuss and transact business. By the end of the
18th century, Lloyd's had brewed enough business to become one of the
first modern insurance companies.
Insurance and Myth...
Back to the 17th century. In 1693, astronomer Edmond Halley
constructed the. First mortality table to provide a link between the life
insurance premium and the average life spans based on statistical laws of
mortality and compound interest. In 1756, Joseph Dodson reworked the
table, linking premium rate to age.
Enter companies...
The first stock companies to get into the business of insurance
were chartered in England in 1720. The year 1735 saw the birth of the first
insurance company in the American colonies in Charleston, SC.
In 1759, the Presbyterian Synod of Philadelphia sponsored the first
life insurance corporation in America for the benefit of ministers and their
dependents.
However, it was after 1840 that life insurance really took off in a big
way. The trigger: reducing opposition from religious groups.
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The growing years...
The 19th century saw huge developments in the field of insurance,
with newer products being devised to meet the growing needs of
urbanization and industrialization.
In 1835, the infamous New York fire drew people's attention to the
need to provide for sudden and large losses. Two years later,
Massachusetts became the first state to require companies by law to
maintain such reserves. The great Chicago fire of 1871 further
emphasized how fires can cause huge losses in densely populated
modern cities. The practice of reinsurance, wherein the risks are spread
among several companies, was devised specifically for such situations.
There were more offshoots of the process of industrialization. In
1897, the British government passed the Workmen's Compensation Act,
which made it mandatory for a company to insure its employees against
industrial accidents.
With the advent of the automobile, public liability insurance, which
first made its appearance in the 1880s, gained importance and
acceptance?
In the 19th century, many societies were founded to insure the life
and health of their members, while fraternal orders provided low-cost,
members-only insurance.
Even today, such fraternal orders continue to provide insurance
coverage to members as do most labor organizations. Many employers
sponsor group insurance policies for their employees, providing not just
life insurance, but sickness and accident benefits and old-age pensions.
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Employees contribute a certain percentage of the premium for these
policies.
Life Insurance in India
Although insurance in its present form has been brought to India by
the British and other colonial powers the concept of collective co-operation
to share a particular risk is as old as the dawn of human civilization.
India was a major trading power in ancient times and some
examples of sharing risks can be found such as ships carried cargo of
several traders together instead of a single individual. In the Mogul army a
life annuity was granted to the family on the demise of a soldier against
some regular contribution in his life time. The Joint family system of India
is also an embodiment of the same concept.
Early attempts
Life insurance in its modern form came to India from England in
1818 with the formation of the Oriental Life Insurance Company in Kolkata
and with the passage of time Indians were also covered by this company.
By 1868 there were 285 companies operating in India and were primarily
into insuring the European lives, those Indians who were offered were
charged an extra premium of 15 to 20% and treated as substandard lives.
First Indian Company
The first insurance company under the title "the Bombay life
insurance society" started its operations in 1870 and started insuring lives
of Indians at standard rates. Later "oriental Govt. life insurance co." was
established in 1874 which emerged as the leading insurance company in
India.
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Pre Independence history
With the various freedom movements various leaders encouraged
domestic life insurance companies to enter the fray. In 1914 there were
only 44 companies and in 1940 this number grew to 195.From here on the
growth of life insurance was quiet steady except in 1947-48 during the
partition of India.
Nationalization of Insurance Business 1956
After Independence our nation was moving towards a Socialistic
pattern of society and with the main aim of spreading the concept to rural
areas and to channel the money into nation building activities the
government of India Nationalized the life insurance business and formed
"The Life Insurance Corporation of India" by merging about 250 life
insurance companies. The Life Insurance Corporation of India started
functioning from 1.9.1956 and today is the largest insurer in the country
with one central office, seven zonal offices and over 2,048 branch offices
with a workforce of 1,25,000 employees and over 8,00,000 life insurance
agents.
Evaluate your life insurance needs :
Life Insurance is one of the most popular savings/ investment
vehicles in India. Ironically, it’s probably the least understood too. An
insurance policy offers much more than just tax planning and investment
returns. It offers the ability to plan for unforeseen events that could affect
family's financial profile adversely.
Fa ctors to consider:
Financial profile and needs are different from person to person,
and the same is true for insurance needs.
However, irrespective of the differences, the number of dependents
PH has and their financial needs are the most important factors to
consider.
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Issues to consider while evaluating the above factors include:
1) The wealth, income and expense levels of PH dependents,
2) Their significant foreseeable expenses,
3) The inheritance PH would leave on them, and
4) The lifestyle PH wants to provide for them.
How much insurance does a person need?
Obviously the above factors mean nothing to the insurance
planning process unless they are quantified.
Globally, the time-tested approach used by insurance and financial
planners is the capital needs analysis method.
When should you re-evaluate?
Whenever any of the factors discussed above change.
In Step 2, understand the key concepts underlying life insurance.
Risk cover versus investment returns:
Insurance options range from policies with low premium that offers
a PH almost no returns to those with high premium that effectively offer
post-tax returns of around 8% to 9.5% p.a.
These returns are at the lower end of fixed-income returns available
today and hence are relatively unattractive.
I recommend PH buy an insurance policy skewed towards
investment returns only if you are in the high-tax bracket, prefer to invest
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in low-risk, fixed-income options and have exhausted all the other such
investment options available.
See Financial Investment Options and Government Schemes
Directory for details of low-risk, fixed-income investment options available.
Whole life versus limited period:
As PH grow older, he may not have as many dependents (his
children would become self-dependent) or his wealth may reach a level
where it can support his dependents’ financial needs in the event of his
death.
These possibilities bring us to the interesting question on whether
he should insure himself, for whole life or for a limited term. Obviously, the
cost of insurance for the latter is lower.
I recommend him to insure for whole life only if he never expect his
wealth to reach a level where it can support the financial needs of his
dependents.
Tax Planning:
The premium paid for an LIC policy also qualifies for tax rebate
under Section 88 of the Income Tax Act. The maximum premium amount
that can qualify for rebate is Rs60, 000 per annum and you get a rebate
equivalent to 20% of the premium paid, from your tax liability for the year.
In step 3, deals about steps in selecting a life insurance policy.
Understand how much insurance PH need:
This is the single most important factor to evaluate before PH select
a life insurance policy. For this, he must consider the current expense
profile of his dependents and the current wealth level of his family. Also,
consider what is his dependent’s risk tolerance level is. Is he adequately
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Insured, this planning tool can take him step-by-step in addressing this
issue.
Selecting Premium Paying Term (PPT):
How long he want to pay his insurance premium for? Key factors
this decision could depend upon are -
1) How many years he see himself earning a regular income
2) The level of his regular savings
3) The amount he can commit to paying regularly as insurance
premium
4) How long he want to be insured versus how long he expects to pay
a premium for?
Other important questions to ask besides understanding how
much insurance he need and letting his premium-paying term, he need to
consider some other
Key factors, such as -
Does he want to participate in bonus/ profit share?
1) What is the primary objective of his seeking insurance –
2) Mainly risk cover, mostly investment returns?
3) Does he want accident cover?
For a detailed understanding of the factors he need to consider
while selecting a life insurance policy, and the rationale for the same, use
Insurance Planner.
This planning tool will also take him step by step and arrive him at a
shortlist of life insurance policies appropriate for him, based on his
personal profile.
To understand life insurance terms, he can read The Basics of Life
Insurance is as follows....
What is life Insurance?
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Life insurance is a contract for payment of money to the person
assured (or to the person entitled to receive the same) on the occurrence
of the event insured against.
Usually the contract provides for -
Payment of an amount on the date of maturity or at specified
periodic intervals or at death, if it occurs earlier.
Periodical payment of insurance premium by the assured, to the
corporation who provides the insurance.
Who can buy a life insurance policy?
Any person above 18 years of age, who is eligible to enter into a
Valid contract. Subject to certain conditions, a policy can be taken on the
life of a spouse or children.
What is a Whole Life Policy?
When most people think of life insurance, they think of a traditional
whole life policy. These are the simplest policies to understand: You pay a
fixed premium every year based on your age and other factors, you earn
interest on the policy's cash value as the years roll by, and your
beneficiaries get a fixed benefit after you die. The policy takes you into old
age for the same premium you started out with. Whole life insurance
policies are valuable because they provide permanent protection and
accumulate cash values that can be used for emergencies or to meet
specific objectives. The surrender value gives you an extra source of
retirement money if you need it.
What is an Endowment policy?
Unlike whole life, an endowment life insurance policy is designed
primarily to provide a living benefit and only secondarily to provide life
insurance protection. Therefore, it is more of an investment than a whole
life policy. Endowment life insurance pays the face value of the policy
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either at the insured's death or at a certain age or after a number of years
of premium payment.
Endowment life insurance is a method of accumulating capital for a
specific purpose and protecting this savings program against the saver's
premature death. Many investors use endowment life insurance to fund
anticipated financial needs, such as college education or retirement.
Premium for an endowment life policy is much higher than those for
a whole life policy.
What is a Money Back policy ?
This is basically an endowment policy for which a part of the sum
assured is paid to the policyholder in the form of survival benefits, at fixed
intervals, before the maturity date. The risk cover on the life continues for
the full sum assured even after payment of survival benefits and bonus is
also calculated on the full sum assured. If the policyholder survives till the
end of the policy term, the survival benefits are deducted from the maturity
value.
What is An Annuity Scheme?
Annuity schemes are those wherein your regular contributions over
a period of time (or a one-time contribution) accumulate to form a corpus
with the insurer. This corpus is used to yield you a regular income that is
paid to you until death starting from your desired retirement age. Some
annuity schemes have the option to pay your survivors a lump sum
amount upon your death in addition to the regular income you receive
while you are alive.
What are With Profit and Without Profit Plans?
The insurer distributes its profits among it policyholders every year
in the form of a bonus/ profit share. An insurance policy can be "with" or
“without” profit. In the former, any bonus declared is allotted to the policy
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and is paid at the time of maturity/ death (with the contracted amount). In a
“without” profit plan, the contracted amount is paid without any profit
share. The premium rate charged for a “with” profit policy is therefore
higher than for a "without" profit policy.
What is Bonus?
An insurer distributes its profits among it policyholders every year in
the form of a Bonus. Bonuses are credited to the account of the
policyholder and paid at the time of maturity. Bonus is declared as a
certain amount per thousand of sum assured. The term "bonus" is used
interchangeably with "with profit".
What are guaranteed Additions?
In some policies, the insurer guarantees the bonus/ profit declared
as a certain amount per thousand of sum assured. This assured bonus will
be credited to the policyholder irrespective of the performance of
insurance company and is known as Guaranteed Additions. Guaranteed
Additions will be payable at the end of the term of the policy or early death
of the policyholders.
What are Loyalty Additions?
In some policies, over and above Guaranteed Additions, the insurer
will declare and credit to the policyholder, an additional amount per
thousand of sum assured every 5 years, depending on its performance.
This additional amount is known as Loyalty Addition.
What are Survival Benefits?
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In some policies, a part of the sum assured is paid to the
policyholder in the form of Survival Benefits, at fixed intervals before the
maturity date. The risk cover for life continues for the full sum assured
even after payment of survival benefits and bonus is also calculated on
the full sum assured. If the policyholder survives till the end of the term,
the survival benefits will be deducted from maturity value.
What are Accident Benefits?
On payment of an additional premium of Re1 per Rs1000 of Sum
Assured per year, the assured is entitled to the following benefits:-
In case of accidental death, the nominee shall receive double the sum
assured.
In case of total and permanent disability due to accident, risk
coverage continues without further payment of premium. In addition, an
amount equal to the sum assured is paid to the assured in monthly
installments spread over 10 years. However, subsequent accidental death
will not entitle the nominee for double the sum assured.
What are Disability Benefits?
If the assured becomes totally and permanently disabled due to any
accident, he need not pay future premiums and his policy shall remain in
force for the full Sum Assured.
What are the various modes of payment for premium?
Premiums, other than single premiums, can be paid by the
policyholders to the insurer in yearly, half-yearly, quarterly or monthly
installments or through a Salary Savings Scheme. If the mode of payment
is yearly or half-yearly, some insurers give a rebate of 3% and 1.5%
respectively on the premium. If the mode of payment is monthly, some
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insurers charge an additional 5% (this additional charge is waived for the
Salary Saving Scheme).
What is Salary Savings Scheme?
Salary Savings Scheme provides for payment of premiums through
monthly deductions by the employer from the salary of employees. For
this scheme, the additional charge of 5% of the premium usually added for
the monthly mode of payments will be waived.
What loans are available against life insurance policies?
At present loans are granted on unencumbered polices as follows -
Up to 90% of the Surrender Value for policies, where the premium due is
fully paid-up, and
Up to 85% of the Surrender Value for policies where the premium
due is partly paid-up.
The minimum amount for which a loan can be granted under a policy is
Rs150. The rate of interest charged is 10.5% p.a., payable half-yearly.
Loans are not granted for a period shorter than six months, or on the
security of lost policies (the assured must have the duplicate policies) or
on policies issued under certain plans. Certain types of policies are,
however, without loan facility.
What is Surrender Value?
The cash value payable by the insurer on termination of the policy
contract at the desire of the policyholder before the expiry of policy term is
known as the surrender value of the policy. Generally, a policy can be
surrendered provided the policy is kept in force for at least 3 years. The
bonus is also added to the surrender value if the policy has been in force,
in most cases, for at least 5 years.
What is a Death Claim?
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The claim is usually payable to the nominee/assignee or the legal
successor, as the case may be. However, if the deceased policyholder
has not nominated/assigned the policy or not made a will, the claim is
payable to the holder of a Succession Certificate or such evidence of title
from a Court of Law.
What is Nomination/Assignment of a Policy?
When the policy money becomes due for payment on the death of
the policyholder, it can be paid only to that person who is legally entitled to
give a valid and effective discharge to the corporation. If the policy bears
nomination, the claim is settled in favor of the nominee. Similarly, if the
policy is assigned, the assignee receives the claim amount. It should be
noted that an assignment of a policy automatically cancels the existing
nomination. Hence, when such a policy is reassigned in favor of the
policyholder, it is necessary to make fresh nomination.
What are Medical and Non-Medical Schemes?
Life insurance is normally offered after a medical examination of the
life to be assured. However, to facilitate greater spread of insurance and
also as a measure of relaxation, some insurers do offer insurance cover
without any medical examination, subject to certain conditions.
How do you effect a Change of Address and Transfer of Policy
Records?
When a policyholder wants to change his address in the insurer’s
records, notice of such change should be given to the Branch office
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servicing his policy. Policy records can be transferred from the Branch
Office that services the policy to any other Branch Office nearest to the
policyholder’s place of residence. The correct address facilitates better
services and quicker settlement of claims.
When does a policy lapse?
When the premium is not paid within the days of grace provided
after the due date, the policy lapses. The grace period in case of yearly,
half-yearly and quarterly modes of payment is one month and in case of
the monthly mode of payment, it is 15 days.
How can a lapsed policy be revived?
A lapsed policy may be revived during the lifetime of the assured,
but within a period of 5 years from the due date of the first unpaid
premium and before the date of maturity. Revival of a lapsed policy is
considered either on non-medical or medical basis depending upon the
age of the life assured at the time of revival and the sum to be revived. If
the revival of the policy is completed by payment of over-due premium
within 14 days from the expiry of the grace period, only the late fee for one
month has to be paid.
Can a policy be altered?
No alteration is permissible in the policy document - the evidence of
contract, unless both the parties to the contract agree. After the policy is
issued, a policyholder in a number of cases finds the terms not suitable to
him/her and desires to change them to suit his/her convenience. As all
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insurers also realize that insurance is a long term contract, certain
changes under given circumstances might necessitate an alteration of the
contract. Keeping in view the basic principles of insurance and
administrative convenience, most insurers permit some alterations.
Though, it is generally found that as a rule, insurers do not permit
alterations resulting in lower rates of premier and within the 1st year from
the commencement of the policy.
What is the difference between Life Insurance and General
Insurance?
A Life Insurance deals with various plans connected with the life of
a person, whereas all kinds of non life insurance policies are issued by the
General Insurance companies.
What are the documents to be executed at the time of taking
insurance?
A Proposal form should be filled in by the person taking insurance
without concealing any material facts. The values for which insurance is to
be taken is also decide by the party taking insurance. No bills,
documentary proofs are taken by the insurance companies at the time of
taking insurance, as the insurance is a contract of utmost good faith.
Premium is to be given along with the proposal form for completing the
insurance transaction after which the insurance company issues the cover
note or policy.
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Insurance Sector Reforms
Why It became Inevitable
Despite the phenomenal success of The Life Insurance Corporation
of India the government and the public at large were not satisfied with it
and by signing the GATT accord the Government of India was committed
to open up the insurance sector to both domestic and international firms.
A committee under the chairmanship of late Mr. R.N Malhotra was
formed (ex governor RBI) and came to conclude that the monopoly of LIC
lead to the lack of sensitivity towards policy holders and only 22% of the
insurable population was insured.
The committee thus recommended a number of measures to
revamp LIC and to allow foreign companies to operate in India with an
Indian partner. It felt that this would lead to a greater scope in product
innovation and service improvement as well.
In 1999 the Insurance Regulatory and Development Authority Bill
was passed by the government to facilitate the growth and regulate the
newly opened insurance sector and to guarantee the investments made
by the people.
On August 15, 2000 the sector was finally opened for foreign sector
participation.
Deregulation came with certain conditions:
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Firstly, all new foreign players entering the Indian market must set
up a joint venture with a local company.
Secondly, the maximum share the foreign player can hold is 26%,
with the local company (or companies) holding the balance. Regulators
are currently reconsidering the foreign equity cap of 26%.
Proactive steps taken by the IRDA for development of the market:
1) Market regulation by prudential norms.
2) Registration of players who have the necessary financial strength to
withstand the demands of a growing and nascent market.
3) Implementation of a solvency regime that ensures continuous
financial stability.
4) Presence of an adequate number of insurers to provide competition
and choice to the customers.
5) Development of market capacity by asking insurers to retain bulk Of
the premium within the country and to exhaust local market
Capacity before reinsuring abroad.
In today’s highly competitive financial services environment,
effective organizations will employ technology in a strategic role to achieve
competitive edge. Technology will play an increasing role in aiding design
and administering of products, as well in efforts to
build life-long customer relationships.
Insurance
A thriving insurance sector is of vital importance to every modern
economy. First because it encourages the savings habit. Second because it
provides a safety net to rural and urban enterprises and productive
individuals. And perhaps most importantly it generates long-term investible
funds for infrastructure building. The nature of the insurance business is
32
such that the cash inflow of insurance companies is constant while the
payout is deferred and contingency related.
The insurance industry in India has registered a growth of 10.5 % in
the life insurance market and a 13% growth in the non life insurance
market. This is primarily because of the liberalization of the insurance sector
and the consumer awareness drive launched by both L.I.C and private
sector players. As the consumer of insurance is waking up to newer needs.
The Indian insurer is also getting there to meet them. Through product and
market research and no doubt through observation of consumer behavior
changes are effected in the kind of products and features coming out into
the market.
The concept of Insurance
The business of insurance is related to the protection of the
economic value of an asset for which a normal lifetime exists during which it
is expected to perform. However if the asset gets Damaged, destroyed or is
made non functional by the occurrence of some unfortunate event the
owner of the assets suffers. Insurance is a mechanism to reduce the
financial implications of such consequences.
The mechanism involves people who are exposed to the same risk
come together and agree that if any one of the members suffers a loss the
others will share the loss and make good the loss. Thus people facing
common risk come together and make their contribution towards a common
fund whose amount is determined beforehand on the basis of past data and
experiences.
LIFE INSURANCE MARKET
STATISTICS
Population : 1.07
Billion Economies : 4th largest in the world in terms of Purchasing Power
Parity (PPP).
Saving Rate : Around 20 % of GDP
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GDP growth Rate : Over 7.3%
Estimated insurable population : 900 million
Insured population : 70 million only
Insurance premium as a percentage of GDP: 2 %
Size of market, life and Non-life : $9.94 billion
Total global insurance premium : $ 2422 billion
Rate of Annual Growth year 2004-05 : Life 21.57
Non-life : 13.5 %
Number of Registered Companies:
Type of BusinessLife Insurance
Public sector : 1
Private sector : 14
Total : 15
General Insurance
Public insurance : 4
Private : 9
Total : 13
TOP PRIVATE LIFE INSURERS IN INDIA
NAME OF THE COMPANY
1 ICICI prudential life Insurance Company Ltd.
2 HDFC Standard Life Insurance Company Ltd.
3 Max New york Life Insurance Co. Ltd.
4 OM Kotak Mahindra Life Insurance Co. Ltd.
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5 Birla Sun Life Insurance Company Ltd.
6 TATA Aig Life Insurance Company Ltd.
7 SBI Life Life Insurance Company Ltd.
8 ING Vysaya Life Insurance Company Ltd.
9 Allianze Bajaj Life Insurance Company Ltd.
10 Aviva Life Insurance Company Ltd.
The life Insurance market in India is an underdeveloped market
that was only tapped by the state owned LIC till the entry of private
insurers. The penetration of life insurance products was 19 percent of
the total 400 million of the insurable population. The state owned LIC
sold insurance as a tax instrument. Not as a product giving protection.
Most customers were under-insured with no flexibility or transparency in
the products. With the entry of the private insurers the rules of the game
have changed.
The 15 private insurers in the life insurance market have already grabbed
nearly 21.57% of the market in terms of premium income. The new
business premiums of the 15 private players had tripled to Rs. 13,153 crore
in 2004 with the business increasing in the year 2004. Meanwhile state
owned LIC’s new premium business has fallen.
Innovative products, aggressive marketing and distribution
combination that has enabled private insurance companies to sign up
Indian customers faster than anyone ever expected. Indians, who have
always seen life insurance as a tax saving device, are now suddenly
turning to the private sector and snapping up the new innovative products
on offer.The growing popularity of the private insurers shows in other
ways. They are coining money in new niches that they have introduced.
The state owned companies still dominate segments like endowments and
money back policies. But in the annuity or pension products business the
35
private insurers have already wrested over 78 percent of the market. And
in the popular unit-linked insurance schemes they have a virtual
monopoly, with over 90 percent of the customers.
The private insurers also seem to be scoring big in other ways they
are persuading people to take out bigger policies. For instance, the
average size of a life insurance policy before privatization was around Rs.
50, 000. That has risen to about Rs. 80,000. But the private insurers are
ahead in this game and the average size of their policies is around Rs.1.1
lakh-way bigger than the industry average.
Market share and growth
LIC dominated the life insurance market with 87.4% of the total
premiums collected during FY 2003. Its premium income increased 42.8%
during FY 2004 from Rs.348.920 mn in FY 2003 to Rs 498219 mn in FY
2004 by comparison LIC’s premium income had increased 25.1 % during
2003 and 21.2% during 2004.
The private life insurance companies have improved their market
shares while LIC’s market share is down in the financial year ended 2003-
04 during the year the market share of private life insurers has improved
from 12.96% to 21.9% while LIC’s market share in terms of premium
collected is down to 78% as against 87% during the year before.
The life insurance industry on the whole underwrote first year
premium of Rs. 18,710.15 Crores during the year and recorded a growth
of 10.48% over the previous year while LIC witnessed a growth rate of just
about 1.93% in the first year premium at Rs.16284.69 Crores, the growth
rate of private insurers is much higher at 153%. The first year premium
collected by the 15 private players however is just about 2425.46 Crores
i.e., 14.89% of LIC’s first year premium collected.
36
Among the private players ICICI prudential led with a market share
of 6.25% (premium collection is about 750.91 Crores) followed by Allianz
bajaj at 3.4% (premium collection is about 449.86 Crores). Further a
comparison of the individual single premium underwritten by the private
players and LIC reveals a decline of 3.42 % and 61.29 % at Rs.287.97
Crores and Rs.1161.71 Crs respectively. Under the group insurance
scheme the premium underwritten by the private players and LIC stood at
376.79 crs and Rs. 3647.82 crores with lives covered at 17.35 lakh and
45.10 lakh respectively the market share of the private insurers and LIC in
terms of premium underwritten for group insurance was 9.36%, 90.64%
respectively.
The entire marketing process results in messages arising out of the
organization to the audience which are in the control of the company
where as there are some messages that reaches the company’s audience
which are not entirely in the hands of the company.
37
38
BUSINESS PREMIUM UNDERWRITTEN BY PRIVATE INSURERS AND LIC
INDUSTRY FOR 2003-04 & 2004-05
INSURANCE INDUSTRY – A SWOT ANALYSIS
Major Strengths:
1) Premium rates are increasing and so are commissions
2) The variety of products is increasing.
39
3) Prospects expect more services from their brokers
4) Flexibility in payment of premium
5) Flexibility in investment option.
6) Open office structure.
7) Competitive environment.
Major Weaknesses
1) Insurance companies are often slow to respond to changing needs.
2) There is an increasing trend of financial weakness among the
companies.
3) There are more competitors for agencies to compete with banks
and Internet players
Opportunities
1) The ability to cross sells financial services is barely being tapped
and can still be developed by collaborative efforts.
2) Technology is improving to the point that paperless transactions are
available.
3) The client's increasing need for an "insurance consultant" can open
new ways to service the client and generate income.
Threats
1) The increasing cost and need for insurance might hit a point where
a backlash with occur.
2) Government regulations on issues like health care, mold and
terrorism can quickly change the direction of insurance. Increasing
expenses and lower profit margins will hit hard on the smaller
agencies and insurance companies.
3) Increasing expenses and lower profit margins will hit hard on the
smaller agencies and insurance companies.
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4) Increasing in the number of private players in the market.
Factors Responsible for the Likely success of Insurance Companies.
Several factors are responsible for the likely success of the various
Insurance companies in general; viz.
1 The A change in the attitude of the population
2 An open and transparent environment created under the IRDA.
3 A well-established distribution network.
4 Trained professionals to build and sell the product.
5 A more rationale approach to the investment criteria
6 Encouragement of newer and better products.
7 A stringent accounting practice to prevent failures amongst the
insurers.
8 A level playing field at all stages of development in the sector for all
the players.
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COMPANY PROFILE
COMPANY PROFILE
INTRODUCTION OF ICICI PRUDENTIAL LIFE INSURANCE CO LTD.
ICICI Prudential Life Insurance Company is a joint venture between
ICICI Bank, a premier financial powerhouse and prudential (PLC), a
leading international financial services group headquartered in the United
Kingdom. ICICI Prudential was the first among private sector insurance
companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI
Bank and Prudential (PLC) holding 74% and 26% stake respectively. In
the period April-December 2005, the company garnered Rs 8.6 billion of
new business premium for a total sum assured of over Rs 73.6 billion and
wrote nearly 3,45,000 policies. The company has a network of over
50,000 advisors; as well as 7 bank assurance tie-ups. Today, ICICI
Prudential has emerged as the No. 1 private life insurer in the country,
42
with a wide range of flexible products that meet the needs of the Indian
customer at every step in life.
ICICI NETWORK:
43
ABOUT PRUDENTIAL
Origins:
When Prudential was founded in London in 1848 it provided
professional people with loans secured by life assurance. The market was
later broadened when insurance policies, with penny premiums collected
by agents, were sold by the industrial branch to the working classes in the
second half of the nineteenth century.
Industrial assurance was an innovation in insurance. The actuarial
methods , until then had been applied to insurance for the better off social
classes were combined with the traditional method of direct selling through
agents that had successfully been used by friendly societies and burial
clubs. The Prudential brand values of integrity, value for money and
security were established and built the company's reputation. Success in
this market meant that by the 1900s Prudential insured one third of the UK
population.
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Expansion
Over the decades Prudential has extended the product portfolio to
meet customers' needs. Following the First World War new policies for
single women, family and home protection were introduced. The
establishment of group pensions in 1929 added a further range of
products to the business. During the 1950s and 1960s, Prudential's
ordinary branch focused on life cover, long term savings products and
retirement annuities. Traditional industrial branch products declined,
although home service was still in demand. By the 1970s Prudential had
established a wide range of assurance, investment and savings products.
The focus on adopting new sales and marketing techniques to
promote products dominated the 1980s. The sales force was restructured
to deal better with customer needs and new channels of communication
were opened through telephone sales and Independent Financial
Advisers. The 1990s saw further diversification of products and methods
of communication. In 1997 Scottish Amicable was acquired, strengthening
Prudential's position in the IFA sector.
Recent Events
Prudential's UK business has undergone a strategic review to meet
customer's changing needs including the closure of the direct sales force,
the transfer of our general insurance operations to Winterthur Insurance
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and the relaunch of a single UK brand with the award-winning ‘Plan from
the Pru’ campaign, an impartial guide to financial planning.
Today Prudential's UK Insurance Operations provide a range of
financial products and services through a diversified distribution model
which includes agreements with Abbey National Bank and Zurich
Financial Services. Prudential is the leading distributor of with-profits
bonds through IFAs, and continues to lead the market in its other chosen
product areas, including corporate pensions and bulk and individual
annuities.
ICICI COMPANY VISION
To make ICICI Prudential the dominant Life and Pensions player built on
trust by world-class people and service.
This we hope to achieve by:
Understanding the needs of customers and offering them superior
products and service
Leveraging technology to service customers quickly, efficiently
and conveniently
Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to
our policyholders
Providing an enabling environment to foster growth and learning for
our employees
And above all, building transparency in all our dealings.
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The success of the company will be founded in its unflinching
commitment to 5 core values -- Integrity, Customer First,
Boundary less, Ownership and Passion. Each of the values
describes what the company stands for, the qualities of our people
and the way we work.
We do believe that we are on the threshold of an exciting
new opportunity, where we can play a significant role in redefining
and reshaping the sector. Given the quality of our parentage and
the commitment of our team, there are no limits to our grow.
Promoters:
ICICI and Prudential came together in 1993 to form Prudential ICICI
Asset Management Company, which has today emerged as one of the
leading mutual funds in India. The two companies bring together two of
the strongest financial service brands in Asia, known for their
professionalism, excellent quality of service and long term commitment to
YOU. Riding on the success of this relationship, the two companies joined
hands once more in 2000, to form ICICI Prudential Life Insurance, with a
commitment to provide leading-edge life insurance solutions.
ICICI Bank has 74% stake in the company, and prudential plc has 26%.
ICICIBank:
ICICI Bank (NYSE:IBN) is India’s second largest bank with an
asset base of Rs. 106812 crore. ICICI Bank provides a broad spectrum of
financial services to individuals and companies. This includes mortgages,
car and personal loans, credit and debit cards, corporate and agricultural
finance. The Bank services a growing customer base of more than 7
million customer accounts and 5 million bondholders’ accounts through a
47
multi-channel access network. This includes about 450 branches and
extension counters, 1675 ATMs, call centers and Internet banking
(www.icicibank.com). ICICI Bank posted a net profit of Rs.1, 206 crore for
the year ended March 31, 2005. ICICI Bank is the only Indian company to
be rated above the country rating by the international rating agency
Moody’s and the only Indian company to be awarded an investment grade
international credit rating. The Bank enjoys the highest AAA (or
equivalent) rating from all leading Indian rating agencies.
Management:
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board
comprises reputed people from the finance industry both from India and
abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. Kevin Holmgren
Mr. M.P. Modi
Mr. R Narayanan
Ms. Shikha Sharma, Managing Director
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Management Team
Ms. Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Customer Service and Operations
Mr. V. Rajagopalan, Appointed Actuary
Mr. Dipan Bhattacharya - Chief Information Technology
ICICI Pru in the News:
ICICI Prudential Life hikes capital to Rs 675 cr
ICICI Prudential Life has hiked its capital by Rs 50 crore to Rs 675 crore in
view of booming business.
Hiking the capital for the ninth time since its inception in December 2000,
the 74:26 joint venture between ICICI Bank and Prudential (PLC) said the
additional capital would be used for meeting capital adequacy norms
stipulated by the Insurance Regulatory and Development Authority.
'ICICI Prudential has grown exponentially over the past three
years,' its Managing Director Shikha Sharma said in a statement.
In the life insurance business, expenses were incurred up front
while the revenue (in the form of premium) stream was staggered, and this
necessitated a life insurance
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Company to regularly infuse capital during the first 5-7 years in
order to support the growth of business.
With an authorized capital of Rs 1,200 crore, the second generation
life insurer’s premium mop up had crossed Rs 1,000 crore in December
2005.
The insurance company, which expanded to 54 locations across
the country, so far sold over 5.50 lakh policies for a sum assured of over
Rs 13,000 crore.
Best Life Insurer Award:
Winner: ICICI PRUDENTIAL
In the short span since the insurance sector was opened up, ICICI
Prudential Life Insurance has literally dictated the market’s evolution.
Catering to all age and income segments, the company started out with
the traditional insurance policies that were easy to understand. The idea
was to entire customers used to LIC' style of functioning.
Soon, ICICI Prudential began exploring new areas. It introduced
modern products, like the market-linked product where returns are linked
to the market performance of the underlying assets.
ICICI Prudential leads in virtually all parameters: size of agent
force, number of policies sold, total sum assured, premium income and
productivity of agents. It has set exact standards for its range of products,
riders offered, quality of information in promotional material and even in
the insurance awareness events organized.
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What has been in favor of ICICI Prudential is its range of products
in each segment of life insurance-traditional, unit-linked and single-
premium options, be they for retirement plans or child plans. With such a
comprehensive bouquet, it caters to all financial goals of a customer.
ICICI Prudential also has a strong sales network and tie-ups with
banks to offer bank assurance products. Its supplementary marketing
channels contribute close to 30 per cent of its premium income. The
company is now reaching out to new and untapped markets. ICICI
Prudential works closely with NGOs and micro-finance institutions to
spread awareness about the concept of insurance in rural areas. This
helps meet the social obligations mandated by IRDA, but the company
has gone a step ahead by actively involving the villagers and working
closely with them.
The gap between ICICI Prudential and the second-in-line private
insurer is vast. In fact, this hiatus has led some analysts to wonder if the
company isn’t a trifle too aggressive. But others say this has more to do
with the company’s customer-centric focus, its pan-India presence and
superior risk management and investment strategies. ICICI Prudential is
not, however, resting on its laurels. The company will continue to innovate
and set the standards.
ICICI Pru has 40% of private life insurance market:
Mumbai: ICICI Prudential Life Insurance has increased its market
share among private life insurers to nearly 40%, from 33% as of end-
December. The company’s first-year premium income in the April-January
period stood at Rs 464.6 crore, accounting for 39.3% of the Rs 1,364
crore premium booked by all private life insurers together.
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Considering the entire life market, including the Rs 9,780 crore
booked by Life Insurance Corporation, ICICI Pru''s market share works out
to around 4.17%. The life insurance market continues to be dominated by
LIC which has about 87.8% share. This is only a marginal dip from its
88.2% share in end-December. These comparisons are only for first year
or new business premium. If renewal premium were to be taken into
account, LIC''s share would increase further to over 96%.
According to business figures brought out by the Insurance
Regulatory and Development Authority (IRDA), the first-year premium
mobilized by ICICI Prudential Life Insurance in the first ten months of `03-
04 amounted to Rs 464.4. This is more than twice the premium income
generated by its closest rival Birla Sun Life which raised Rs 195 crore
during the same period.
HDFC Standard Life and Tata AIG have retained their third and
fourth positions. Interestingly, there are three companies that are neck-
and-neck in the battle to be among the top five with a market share of
close to 7% - Allianz Bajaj, Max New York Life and SBI Life Insurance.
In the group insurance market, LIC''s share in the country is around
93%. Among the private companies, SBI Life, Birla Sun Life and HDFC
Standard Life dominate the group insurance segment. SBI Life, with its
group policies for mortgage loan protection and depositor insurance, has
close to 45.8% of the group market among private companies. Birla Sun
Life has a 23.4% share, followed by HDFC Standard Life which has a
18.4% share. Except these three companies, other players have a
negligible presence in the group market. But, with over a month to go for
the close of financial year, the rankings could still change dramatically.
More so, because insurance companies, particularly LIC, go into an
overdrive in mobilizing new business.
FACT SHEET:
52
THE COMPANY
ICICI Prudential Life Insurance Company is a joint venture between
ICICI Bank, a premier financial powerhouse, and prudential plc, a leading
international financial services group headquartered in the United
Kingdom. ICICI Prudential was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential’s equity base stands at Rs. 925 crore with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. In the
period April-December 2004, the company garnered Rs 860 crore of new
business premiums for a total sum assured of over Rs 7,360 crore and
wrote nearly 345,000 policies. Today the company is the No.1 private life
insurer in the country.
DISTRIBUTION:
ICICI Prudential has one of the largest distribution networks
amongst private life insurers in India, having commenced operations in 69
cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad,
Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal,
Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun,
Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior,
Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur,
Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam,
Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Mysore,
Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi,
Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum,
Udaipur, Vadodara, Vapi, Varanasi, Vashi, Vijayawada and Vizag.
The company has seven banc assurance tie-ups, having
agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of
India, Lord Krishna Bank and some co-operative banks, as well as over
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160 corporate agents and brokers. It has also tied up with organisations
like Dhan for distribution of Salaam Zindagi, a policy for the socially and
economically underprivileged sections of society.
ICICI Prudential has recruited and trained about 50,000 insurance
advisors to interface with and advise customers. Further, it leverages its
state-of-the-art IT infrastructure to provide superior quality of service to
customers.
PRODUCTS:
Insurance Solutions for Individuals:
ICICI Prudential Life Insurance offers a range of innovative,
customer-centric products that meet the needs of customers at every life
stage. Its 20 products can be enhanced with up to 6 riders, to create a
customized solution for each policyholder.
Savings Solutions
SecurePlus is a transparent and feature-packed savings plan that
offers 3 levels of protection.
CashPlus is a transparent, feature-packed savings plan that offers
3 levels of protection as well as liquidity options.
Save?n?Protect is a traditional endowment savings plan that
offers life protection along with adequate returns.
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CashBak is an anticipated endowment policy ideal for meeting
milestone expenses like a child?s marriage, expenses for a child?s
higher education or purchase of an asset.
LifeTime & LifeTime II offer customers the flexibility and control to
customize the policy to meet the changing needs at different life
stages. Each offer 4 fund options ? Preserver, Protector, Balancer
and Maximiser.
LifeLink II is a single premium Market Linked Insurance Plan which
combines life insurance cover with the opportunity to stay invested
in the stock market.
Premier Life is a limited premium paying plan that offers customers
life insurance cover till the age of 75.
Invest Shield Life is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest.
Invest Shield Cash is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest
along with flexible liquidity options.
InvestShield Gold is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest
along with limited premium payment terms.
Protection Solutions
LifeGuard is a protection plan, which offers life cover at very low
cost. It is available in 3 options ? level term assurance, level term
assurance with return of premium and single premium.
Child Plans
SmartKid education plans provide guaranteed educational benefits
to a child along with life insurance cover for the parent who purchases the
policy. The policy is designed to provide money at important milestones in
55
the child’s life. Smart Kid plans are also available in unit-linked form ? both
single premium and regular premium.
Retirement Solutions
ForeverLife is a retirement product targeted at individuals in their
thirties.
SecurePlus Pension is a flexible pension plan that allows one to
select between 3 levels of cover.
Market-linked retirement products
LifeTime Pension II is a regular premium market-linked pension
plan
LifeLink Pension II is a single premium market-linked pension
plan.
InvestShield Pension is a regular premium pension plan with a
capital guarantee on the investible premium and declared bonuses.
ICICI Prudential also launched Salaam Zindagi?, a social sector
group insurance policy targeted at the economically underprivileged
sections of the society.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for
companies seeking to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan
helps employers fund their statutory gratuity obligation in a scientific
56
manner. The plan can also be customized to structure schemes that can
provide benefits beyond the statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible
defined contribution superannuation scheme to provide a retirement kitty
for each member of the group. Employees have the option of choosing
from various annuity options or opting for a partial commutation of the
annuity at the time of retirement.
ICICI Pru Group Term Plan: ICICI Pru?s flexible group term
solution helps provide affordable cover to members of a group. The cover
could be uniform or based on designation/rank or a multiple of salary. The
benefit under the policy is paid to the beneficiary nominated by the
member on his/her death.
Flexible Rider Options:
ICICI Pru Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the
customer.
Accident & disability benefit: If death occurs as the result of an
accident during the term of the policy, the beneficiary receives an
additional amount equal to the sum assured under the policy. If the
death occurs while traveling in an authorized mass transport
vehicle, the beneficiary will be entitled to twice the sum assured as
additional benefit.
Accident Benefit: This rider option pays the sum assured under
the rider on death due to accident.
Critical Illness Benefit: protects the insured against financial loss
in the event of 9 specified critical illnesses. Benefits are payable to
the insured for medical expenses prior to death.
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Major Surgical Assistance Benefit: provides financial support in
the event of medical emergencies, ensuring benefits are payable to
the life assured for medical expenses incurred for surgical
procedures. Cover is offered against 43 surgical procedures.
Income Benefit: This rider pays the 10% of the sum assured to the
nominee every year, till maturity, in the event of the death of the life
assured. It is available on SmarKid, SecurePlus and CashPlus.
Waiver of Premium: In case of total and permanent disability due
to an accident, the premiums are waived till maturity. This rider is
available with SecurePlus and CashPlus
ABOUT THE PROMOTERS
ICICI Bank is India's second-largest bank with total assets of about
Rs.112,024 crore and a network of about 450 branches and offices and
about 1750 ATMs. It offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital,
asset management and information technology. ICICI Bank posted a net
profit of Rs.1,637 crore for the year ended March 31, 2005. ICICI Bank's
equity shares are listed in India on stock exchanges at Chennai, Delhi,
Kolkata and Vadodara, the Stock Exchange, Mumbai and the National
Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).
Established in London in 1848, Prudential plc, through its
businesses in the UK and Europe, the US and Asia, provides retail
58
financial services products and services to more than 16 million
customers, policyholder and unit holders worldwide. As of June 30, 2005,
the company had over US$300 billion in funds under management.
Prudential has brought to market an integrated range of financial services
products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia,
Prudential is the leading European life insurance company with a vast
network of 24 life and mutual fund operations in twelve countries - China,
Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand and Vietnam.
DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
1. RESPONDENTS MONTHLY INCOME DETAILS
QUANTUMN OF
MONTHLY INCOME
TOTAL RESPONDENTS PERCENTAGE
5000-10000 39 35%
10000-15000 45 41%
15000-20000 16 15%
ABOVE 20,000 10 9%
TOTAL 110 100%
59
INFERENCE: 41% of the respondents earning 10000/- to 15000/- income,
35% are 5000/- to 10000/-, 15% are 15000/- to 20000/- and 9% of the
respondents earning more than 20000/-.
2. PERCENTAGE OF AMOUNT RESPONDENTS WOULD LIKE TO SAVE
FROM THEIR MONTHLY INCOME
PERCENTAGE OF AMOUNT
RESPONDENTS LIKE TO SAVE
FROM MONTHLY INCOME
TOTAL
RESPONDENTS
PERCENTAGE %
5% 14 13%
5%-10% 33 31%
10%-20% 47 42%
20%-30% 9 8%
ABOVE 30% 7 6%
TOTAL 110 100%
60
FINDINGS: This is clear from the above figures that out of 110
respondents 42% would like to save 10-20% from their monthly income,
31% of them would like to save 5-10%, 13% want to save 5%, 8% want to
save 20-30% and 6% want to save above 30% of their income.
3.RESPONDENTS OPINION ON ICICI PRUDENTIAL LIFE INSURANCE
COMPANY
OPINION ON ICICI
PRUDENTIAL
COMPANY
TOTAL NO OF
RESPONDENTS
PERCENTAGE %
GOOD 105 96%
BAD 5 4%
NO OPINION 0 0%
TOTAL 110 100%
61
96%
4%
FINDINGS: It is clear from the above sample size of 110 respondents
96% of the respondents are having good opinion on ICICI prudential life
insurance company, 4% are having bad opinion on the company.
4. RESPONDENTS VARIOUS OPTIONS GENRALLY CONSIDER FOR
INVESTMENT
RESPONDENTS
OPTIONS OF
INVESTMENTS
TOTAL NO
RESPONSES
PERCENTAGE %
FIXED DEPOSITS 29 26%
MUTUAL FUNDS 20 18%
INSURANCE 32 29%
SHARES 25 23%
CHIT FUNDS 4 4%
TOTAL 110 100%
62
26%
18%29%
23%4%
FINDINGS: It is clear from the above sample that out 110 respondents
29% like to invest in insurance, 26% like to invest in fixed deposits, 23%
like to invest in shares, 18% like to invest in mutual funds and 4% like to
invest in chit funds.
5. RESPONDENTS OPINIONS ON FACTORS CONSIDER WHILE
INVESTING THEIR MONEY
FACTORS TOTAL NO OF
RESPONSES
PERCENTAGE %
PROFITS 37 34%
LIQUIDITY 6 5%
SAFETY 57 52%
TAX BENEFITS 10 9%
TOTAL 110 100%
63
34%
5%52%
9%
FINDINGS: 52% of the respondents consider safety while investing the
money, 34% return, 9% tax benefits and 5% of the respondents consider
liquidity while investing the money.
6. RESPONDENTS OPINION ON IMPACT ON THEIR SAVINGS
WITH THE CURRENT BUDGET-2006
IMPACT ON
SAVINGS WITH
CURRENT
BUDGET-2005
TOTAL RESPONSES PERCENTAGE
%
YES 69 63%
NO 41 37%
TOTAL 110 100%
64
63%
37%
FINDINGS: It is clear from the above sample of 110 respondents, 63% of
respondents has given opinion that there is impact on their savings with
the current budget -2005, 37% were not having impact on their savings.
7. RESPONDENTS PREFERED TIME HORIZON FOR INVESTMENT
(INYEARS)
TIME HORIZON OF
INVESTMENT (IN YRS)
TOTAL RESPONSES PERCENTAGE %
MINIMUM 1-2 YEARS 33 30%
MINIMUM 1-3 YEARS 34 31%
MINIMUM 1-4 YEARS 23 21%
ABOVE 5 YEARS 20 18%
TOTAL 110 100%
65
30%
31%
21%
18%
FINDINGS: It is clear from the above sample of 110 respondents, 31% of
the respondents preferred 1-3 years as time horizon to invest, 30% are 1-
2years, 21% are 1-4years and 18% are more than 5years as time horizon
to investment.
8. RESPONDENTS AWARE ABOUT CAPITAL GUARANTEE SCHEMES OF
ICICI PRUDENTIAL LIFE INSURANCE COMPANY
AWARENESS ABOUT
ICICI PRULIFE
SCHEMES
TOTAL RESPONSES PERCEBTAGE %
66
YES 58 53%
NO 52 47%
TOTAL 110 100%
53%
47%
FINDINGS: It is clear from the above sample of 110 respondents 53% of
the respondents are aware of ICICI PRUDENTIAL LIFE INSURANCE
COMPANY schemes and 47% are not aware of the company schemes.
9. RESPONDENTS KNOW ABOUT THE SCHEMES THROUGH
DIFFERENT MARKETING CHANNELS
RESONDENTS KNOW
ABOUT THE SCHEMES
TOTAL
RESPONSES
PERCENTAGE %
ADVISORS OF COMPANY 16 15%
67
MANAGEMENT
TRAINEES
40 36%
ADVERTISEMENTS 29 26%
OTHERS 25 23%
TOTAL 110 100%
ADVISORS OF
COMPANY15%
MANAGEMENT TRAINEES
36%ADVERTISEM
ENTS26%
OTHERS23%
FINDINGS: 36% of the respondents came to know about the capital
guarantee schemes through management trainees,26% through
advertisements,15% through advisors and 23% from others.
10. RESPONDENTS INTRESTED ORGANIZATIONS FOR INVESTING THEIR
MONEY
INTRESTED
ORGANIZATIONS
FOR INVESTMENTS
TOTAL
RESPONSES
PERCENTAGE %
LIC 58 52.72%
ICICI PRU LIFE 32 29.09%
SBI LIFE INSURANCE 6 5.45%
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HDFC 5 4.54%
OTHERS 9 8.18%
TOTAL 110 100%
FINDINGS: 52.72% of the respondents are interested for investing their
money in LIC, 29.09% in ICICI, 5.45% in SBI, 4.54% in HDFC and 8.18%
in others.
11. RESPONDENTS OPINION ON THE BENEFITS OF THE SCHEMES
OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY
RESPONDENTS ON
BENEFITS OF ICICI
SCHEMES
TOTAL RESPONSES PERCENTAGE %
REASONABLE 62 56%
69
NOT REASONABLE 8 7%
CAN NOT SAY 40 37%
TOTAL 110 100%
0%
10%
20%
30%
40%
50%
60%
REASONABLE NOTREASONABLE
CANNOT SAY
FINDINGS: 56% of the respondent’s opinion on the benefits of the
schemes of ICICI prudential life insurance company are reasonable, 7%
are not reasonable, 37% of the respondents can’t say.
12 RESPONDENTS OPINION ON INCREASE OF MARKET SHARE
WITH THESE SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE
COMPANY
RESPONDENTS
OPINION ON
INCREASE OF
MARKET SHARE
TOTAL RESPONSES PERCENTAGE %
YES 67 61%
70
NO 14 13%
CAN’T SAY 29 26%
TOTAL 110 100%
FINDINGS: 61% of respondents opined that the benefits given by ICICI
PRU are satisfied, 13% respondents are not satisfied and 37% can’t say.
13 RESPONDENTS OPINION ON THE CAPITAL GUARANTEE
SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY
RESPONDENTS
OPINION ON ICICI
SCHEMES
TOTAL
RESPONSES
PERECENTAGE
%
GOOD 66 60%
EXCELLENT 8 7%
AVERAGE 23 21%
POOR 13 12%
TOTAL 110 100%71
GOOD60%
EXCELLENT7%
AVERAGE21%
POOR12%
FINDINGS: 60% of the respondents opined that capital guarantee
schemes are good, 21% average,7% excellent and 12%poor.
14) AGE OF THE RESPONDENTS
RESPONDENTS AGE PERCENTAGE %
BELOW 30 18%
30-40 39%
40-50 33%
ABOVE 50 10%
TOTAL
72
100%
18%
39%
33%
10% 1
2
3
4
FINDINGS:
1. From the above sample of 110 respondents 18% are below the age of 30.
2. From the above sample of 110 respondents 39% are the age group of 30-
40.
3. From the above sample of 110 respondents 33% are age group of 40-50.
4. From the above sample of 110 respondents 10% are the age group of
above 50.
OVERALL FINDINGS:
1. Majority of the people (69%) know about ICICI PRU LIFE.
2. Most of the people (42.72%)have very good opinion about ICICI
PRU LIFE.
3. By this research it is clear that most of the respondents consider
safety while investing their money.
73
4. Most of the respondents in this research were from IT sector so
they need tax benefits schemes so there is more scope for
insurance sector to attract IT sector employees.
5. It is clear by the research that most of the people (47.72%) are
interested in saving 10%-20% from their monthly income for their
future period.
6. It is clear by research that majority of the respondents take
insurance to secure their lives and for tax benefits and also for
future profits.
7. It is clear by the research that most respondents (62.72%) has
given opinion that there is impact on their savings with the current
budget-2005.
8. It is clear by the research that most of the people are not proper
awareness regarding the schemes of ICICI PRU LIFE.
9. It is clear by the research that most of the people are choosing
LIC for their investments. And less no of people are choosing
ICICI PRU LIFE to invest their money.
10.Most of the respondents have given the reasonable opinion on
the benefits given by ICICI PRU LIFE schemes and they had
good opinion on the schemes.
74
11.Most of the respondents have given an opinion that they can
invest their money up to a time horizon of 1-3 years.
12.Kurnool is a potential city for the marketing of Insurance products;
it has a mix of High and Middle class, Employees and Business
class people. Further it must be noted that a large number of
software companies have emerged or have set up their branches
and are providing handsome compensation packages to their
employees
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SUGGESTIONS
SUGGESTIONS:
1 Most of the people are not having any proper awareness regarding
the different products of the company so by educating and
providing proper information to them we can easily attract them.
2 To create awareness in the people by conducting intensive
customer contact and gathering programs.
76
3 Insurance advisors towards prospective investors need
improvement
4 Increase more no of capital guarantee schemes with low premiums
so that middle class and rural customers can be attracted.
5 The schemes should be introduced according to the needs and
profits of customers.
6 A little more aggression in direct marketing strategies is needed to
increase the customer relationships and to provide better service to
the customers.
7 Wide range of publicity is needed to withstand the competition and
to attract the customers.
8 Along with the product, service has to be given ample opportunity
to differentiate along the competitors as styling and services.
Enhancing the value added features in the products.
10 It can open insurance consultancies in twin cities, so that it can
come closer to its customers.
11 Company should maintain continuous relationships with the
employees and customers to increase the market share.
12 Continuous maintenance of quality in services to maintain the
brand loyalty.
13 As technological improvements are increasing use the opportunities
well and to help the customer a search facility should be include in
order searching for key term from the website etc.
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CONCLUSIONS
CONCLUSION
Thus from overall project has helped me to learn a lot which is not
there in books. The practicality of the subject is totally seen in the real
sense. This live experience gave me an opportunity to learn new things,
which could be implemented in practical by the company to excel itself in
the segment. I thank ICICI PRUDENTIAL LIFE INSURANCE COMPANY
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for providing this opportunity to me as a summer trainee and shown the
path of knowledge and experience which will help me to succeed in the
career and excel into bright future
Conclusions on Consumer Behavior
Changing customer behavior in insurance buying
1) Customers know generally what a policy covers; they also know
that there are several fine prints in insurance contracts, which
they do not know, or perhaps care to know, at the time of
buying. And they also seem to generally conclude that when it
comes to making a claim under an insurance policy, there could
be several issues of which they are just unaware at the time of
buying the policy in the first place.
Changing Expectations
1) While the fresh air of competition in every sector of the economy
brings in major changes in consumer expectations. The
insurance industry has witnessed a few unique aspects, such as
regulation-inspired efforts to educate insurance buyers, and a
vast change in the skills and capabilities of the intermediaries
involved in distribution.
Motivating factors
1) In respect of life insurance, potential buyers are driver to buying a
policy for one or more of three major reasons: security of the
money invested, saving for one of more specific purposes, and the
availability of tax benefit.
2) Customers are increasingly known to place less reliance on the tax
benefit factor, and stress more on the security aspect and the end-
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use objective.
3) The challenge of the insurance companies is to address the
motivating factors imaginatively and come up with genuine
solutions. Take for example, the consumer's objective of taking a
policy to save money for higher education of a child.
4) A potential buyer primarily expects that the saving should be a
painless process and that the money saved should be absolutely
safe. The challenge is to provide not only convenient payment
options, but also mechanisms that could offer some measure of
protection and relief to the customer if he is forced to disrupt the
payment arrangement for unforeseen reasons.
5) On the issue of the consumers perception of security of the money
invested, there are two important aspects. One is how the features
of the insurance contract are put across to the buyer (whether it is a
unit-linked policy or endowment oriented). The second is how to
address more effectively the question about the dependability of the
new generation companies that potential new insurance buyers
raise during sales calls especially outside metros and in small
towns (referred to in publicity jargon as buyers in the SEC B and C
categories). Both insurance companies and the Regulator need to
address this behavioral challenge more actively.
Customers' experience:
1) There has been a vast change in the approach of the insurance
agent from the pre-liberalization days. While the agent in the
past established informal contacts with potential buyers and
often depended on referrals from friends and family members,
the new age companies insist on a professional, and often
aggressive stance on the part of the sales staff.
2) Customer expectations in this regard revolve around two key
80
aspects: first, whether the customer is getting truthful advice
from the agent, or if he is pushing a product that yields him the
highest commission rate. Invariably, the customers today expect
the insurance agent (and other intermediaries such as the bank
assurance sales staff) to provide ready comparison of
competitors' products and how the product the agent is
suggesting is superior to the others.
3) Publicity given by new insurance companies about the
protection aspect of insurance, customers in major cities have
come to appreciate the need for higher level of insurance cover
with reference to their earning stage in working life.
4) The second aspect of customers' perception about the new
generation of insurance agents is the level of continuing
commitment of the agent to arrange post-sale service. Potential
insurance customers increasingly make arrangements to pay
periodical premiums directly through the electronic medium, or
though automatic transfers from their bank accounts, thereby
bypassing the need for regular post-sale service by the agents,
customers would tend to place more reliance on the direct
standard of service from the company concerned.
5) Instances of customers requiring agents to arrange for loans
against their policies, or change nominations etc. are rare.
Therefore companies need to gear themselves to provide high
service standards directly.
Premium shopping
1) Customers have the general feeling that as insurance products
become more complex, and they get bundled with several
riders. It is becoming impossible to make price comparisons
81
between different companies.
2) An increasingly larger segment of customers now questions why
the premium rate should be the same for a policy if bought
direct from the company over Internet. or through a channel
considered simpler, such as the bank assurance channel. There
is logic in the insurance companies passing on the cost saving
to customers in such cases.
3) It is time the Regulator seriously considered the customer
expectations of differential premium rates for the same policy
bought through different channels and allowed the practice. For
example, it is common for banks abroad to offer a higher
interest rate to exclusive Internet clients.
4) It should therefore be conceivable to offer premium rebate to
insurance buyers who consciously decide to approach the
company directly for buying a policy (after presumably taking
the trouble of educating themselves about the product features
and other aspects). and choose to deal with the company
directly for future servicing needs.
High expectations
1) One aspect of customer service from new age insurance
companies that remains to be tested widely is the claim
payment record. While consumers seem to be satisfied that the
survival benefits under a life insurance policy would get paid
rather promptly from the tech-savvy new companies, obviating
the need for interlocution by the insurance agent, insurance
buyers are not yet convinced about hassle-free payment in the
event of a claim. Whether under a life policy or a general
insurance policy. This is especially so in respect of rider benefits
such as critical illness or hospitalization benefits.
82
Employee Behavior
1) An employee is an individual who works for another or for some
organization and has some characteristic due to the nature if his
occupation that affect his buying decisions and his behavior in
general. This is because of their limited incomes but at a more
or less fixed rate. They do not want to take up high risks and
prefer the passively managed schemes and have the ability to
save up to 20-30 % of their incomes for their personal and
families safety and contingencies as well as to evade tax and
thus are the most loyal customers of the insurance sector.
2) It is observed that the private sector employees on the overall
receive higher salaries than the government and public sector
employees and thus are a veryhigh potential segment to be
tapped.
3) Employees have a limited income at any given point of time and
therefore require more time to make available resources to take
up insurance policies along with detailed tax planning and
evaluating the benefits of the scheme thereby the calls focused
on employees have a longer turnaround time.
4) Finally employees have a greater change to invest in child care
policies as most of them inhibit a dream to collect small sums of
money to meet their children's education expenses at later
stages and are also very keen on the additional benefits given in
a policy.
Other Conclusions
1) A major limitation as we see is the expanse of our target market
(94% of the Indian market being untapped); though large it is
83
not clearly defined. This makes the search for our potential
customers even more challenging.
2) The willingness of the respondents to divulge information may
affect the validity of the project and the answers given by the
respondents would be assumed to be true.
3) The state of mind as well as the behavior of the respondent at
the time time of conducting the survey can affect the meaning of
the project.
4) Life insurance has become synonymous with LIC a major
percentage of the population is reluctant to rely on private life
Insurance Player.
Activities to promote life insurance among people
The strategies are
a) Public places hoardings
b) Advertisements on TV channel:
Especially they have selected Gemini TV channel for the above
purpose. So, they will advertise in these timings (cricket matches, serials,
news)
Factors responsible success of the insurance Companies
Several factors are responsible for the likely success of the various
Insurance Companies in general ;
1) The change in the attitude of population.
2) An open and transparent environment created under the IRDA.
3) A well-established distribution network.
84
BIBILIOGRAPHY
85
BIBILOGRAPHY
1) www.iciciprulife.com
2) www.einsuranceprofessional.com
3) www.bimaonline.com
4) www.ciionline.org
5) www.mindbranch.com
6) www.irdaindia.com
7) Insurance Journals
8) Consumer Behavior – Leon G.Schiffman and Lazar Kanuk
86
9) Services Marketing – Zeithmal Valorie
87
ANNEXURE
QUESTIONNAIRE
A Market Survey On Consumer Behavior on Capital Guarantee Schemes
With Reference to ICICI Prudential Life Insurance Company
Respected Sir/Madam,
I, P.SURESH REDDY, pursuing MBA II year as part of the
curriculum, I am undergoing summer project in ICICI Prudential Life
88
Insurance Company. Hence, I request you to kindly extend your co-
operation by filling this Questionnaire and the information provided will be
kept confidential and used for only academic purpose.
Name of the Respondent: Age:
Occupation: contact no:
1) What is the Quantum of your Monthly Income? [ ]
(A) 5000-10000 (B) 10000-15000
(B) 15000-20000 (D) ABOVE 20,000
2) What is the percentage of Amount you would like to save from Your
income? [ ]
(a) 5% (b) 10% (c) 10%-20% (d) 20%-30% (e) Above 30%
3) Your opinion on ICICI Prudential Life Insurance Company? [ ]
(a)Good (b) Positive (c) Negative (d) Better
4) What are the various options generally you consider for Investment? [ ]
(a) Fixed Deposits (b) Mutual Funds (c) Insurance (d) Shares
(e) Chit Funds
5) What are the factors you consider while choosing your Investment? [ ]
(a) Profits (b) Liquidity (c) Safety (d) Tax Benefits
6) Do you feel that there is Impact on your Savings with the Current
Budget? [ ]
(a) Yes (b) No
7) What is your preferred Time Horizon of Investment (in Years)? [ ]
89
(a) Min 1- 2years (b) 1-3 years (c) 1- 4years ( d) Above 5years
8) Are you Aware of Capital Guarantee Schemes of ICICI ? [ ]
(a)YES (b)NO
9) How you know about the Schemes? [ ]
(a) Advisors of Company (b) Management Trainees (c) Advertisements
(d) others
10) Which organization will you choose for your investments ? [ ]
(a) LIC (b) ICICI PRU LIFE (c) SBI INSURANCE (d) HDFC (e) OTHERS
11) Your view on Benefits given by ICICI Schemes? [ ]
(a) Reasonable (b) Not Reasonable (d) cannot say
12) Do you feel that Market Share of ICICI can be increased with these
Capital guarantee Schemes? [ ]
(a)Yes (b) No
13) What is the opinion on the Capital Guarantee Schemes of ICICI
Prudential Life Insurance company
a) good b) excellent c) average d) poor
14) Age of the respondents { }
a) below 30 years b) 30 – 40 years
c) 40 – 50 years d) above 50 years
15) Suggest any Measures to increase the Market Share:
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