project report

A
PROJECT REPORT
ICICI PRUDENTIAL LIFE
INSURANCE NEW CHANNEL TIE
UP WITH POST OFFICE

Submitted To
DR.IT INSTITUTE OF MANAGEMENT AND
TECHNOLOGY (IMT)
In partial fulfillment of the requirement for the degree of
BACHULAR OF BUSINESS ADMINISTRATION (BBA)
(Session 2010-2011)

Submitted to Submitted By
MISS. TARUNA DUREJA SANDEEP KUMAR
BBA – 5th SEM

1

TABLE OF CONTENTS

 COMPANY PROFILE
 ICICI INTRODUCTION
 HISTORY ICICI PRUDENTIAL
 BOARD OF DIRECTORS ICICI
 PRODUCTS
• Profile of the study
• Justification of study
• Organization Structure
 POST OFFICE PRODUCTS
 OBJECTIVES OF STUDY
 Research Methodology and Analytical Tools
• Sampling &Sampling Design
• Analytical Tools
– Statistical Tools
• Data Collection
• Hypothesis Testing
• Limitations of Study
 Advantages
 Recommendations
 Policy Implications
 Bibliography
 Annexure

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ACKNOWLEDGEMENT

Heartfelt thanks to the following people….

A Few typewritten words of thanks can-not really express the sincerity of my
gratitude. But I am still trying to put into words my gratefulness towards all who have
helped & encouraged me in carrying out this project.

I would like to thanks Miss Taruna Dureja to give me guidelines and my worthy
thanks to my teacher (faculty member) for their valuable contribution during the
academic session and guidance in preparation of this project report.

This report conveys my heartiest thanks to MISS ANJALI SHARMA AFSM of
“ICICI PRUDENTIALS LIFE INSURANCE CO. LTD.” for giving me this project
& helping me in completion of this project. No praise is ample for the never tiring
efforts of my colleagues whose constant support feedback, guidance & practical
suggestions helped me in completing this Project successfully.

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Company profile of ICICI PRUDENTIAL

The company assigned to me is ICICI Prudential Life Insurance
Company. It is in to selling life insurance products. 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). At
present it is growing at a tremendous pace. Now we can say there is no close
competitor to ICICI Prudential.
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 financial
year ended March 31, 2005, the company garnered Rs. 1,584 crores of new
business premium for a total sum assured of Rs. 13,780 crores and wrote nearly
6,15,000 policies. The company has a network of about 56,000 advisors as well
as 7-bank assurance and 150 corporate agent tie-ups.
For the past five years, ICICI Prudential has retained its position as No. 1
private life insurance in the country, with a wide range of flexible products that
meet the needs of Indian customer at every step in life.

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PREFACE

Beginning of the system project is entirely creative. This does not come all
of a sudden, but it comes by result of discussion, consultation and
contemplation. Problem unsolved here can never be satisfactory eliminated
later. It is therefore a slow process.
Moreover practical training is an important part of management courses.
The theoretical studies are not sufficient to get into the corporate world.
Only practical knowledge can help us to understand the complexities of
large scale organizations.
To develop healthy managerial and administration skill in potential
managers, it is necessary that theoretical knowledge must be supplemented
with exposure to the real environment. Actually, it is life for, a management
itself is realized.
In my case I confronted myself to ICICI prudential Life insurance company
Ltd. & the exposure that I could not have gained from the books. I found it
very interesting and challenging. I did my training at Una branch office and
my topic of project is INCLINATION TOWARDS ULIP security and
Investment solution with special reference to ICICI PRUDENTIAL
LIFE INSURANCE.

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DECLARATION

I hereby declare that the project “ICICI PRUDENTIAL LIFE INSURANCE LTD NEW
CHANNEL TIE UP WITH POST OFFICE of Life Insurance Corporation of India and
ICICI Prudential in UNA)” for ICICI PRUDENTIAL LIFE INSURANCE is original and
beneficed work done by me.

The project is being submitted in partial fulfillment requirements for the award degree of BBA
Under PTU JALANDHER .

The contents of this project are based on the field work and analysis done by me during my
tenure at ICICI Prudential, UNA

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EXECUTIVE SUMMARY

The Winter training is a integrated part of BBA course. In this period of 6 weeks we
come to know about the problem and how to solve those problems. In this we gained
practical knowledge about the organizational work.

I did for 6 weeks in an organization ICICI PRUDENTIAL LIFE INSURANCE, and
under going practical on the topic “(A comparative analysis with regard to investor’s
base & Investment Avenues in case of Insurance Companies-A comparision of post
office products and icici products and how to solve financial problems. The practical
training had provided me the real scenario of financial analysis. I analysis the financial
status of the organization.

I came to the conclusion that the financial position of company very strong and people
are more interested to invest their earning in ICICI PRUDENTIAL LIFE
INSURANCE as compare to other financial institutions. In last three or four year
ICICI PRUDENTIAL LIFE INSURANCE constantly ranked no.2 position in
Insurance sector. ICICI PRUDENTIAL LIFE INSURANCE satisfied their
consumers by fulfilling their needs sets.

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IRDA GUIDELINES ON ULIPS

The Insurance Regulatory and Development Authority (IRDA) recently
introduced its much-awaited guidelines to govern unit-linked insurance policies
(ULIPs)

The new provisions

IRDA has prescribed a minimum sum assured equal to 50 per cent of the total
annualized premium during the entire policy term or five times the annualized
premium, whichever is higher. This regulation is aimed at maintaining the basic
characteristic of a life insurance policy, where life cover should be the primary
benefit. Till the policyholder turns 60 years old, the sum assured cannot be
reduced by partial withdrawals. This is aimed at protecting the life insurance
cover.

Time Period:

According to new guidelines the time period of investment in ULIPs has been
increased to 5 years. Earlier it was for 3 years.

Top-up Premiums:

Top up premiums are irregular dump-in amounts allowed in a ULIP. Up to now,
there were no restrictions; it was possible, for example, to dump in Rs1 crore in
a ULIP and invest the entire amount in the market. But this vitiates the basic
characteristic of the policy by making the insurance component insignificant. To
plug this loophole, IRDA has prescribed that a sum assured must back any
dump-in that exceeds 25 per cent of normal premium, which will be constant
throughout the term of the policy. Any appropriation towards a dump-in can take
place only if the normal premiums are paid

Withdrawals from ULIPs:

Earlier, withdrawals from ULIPs were possible even within a year of issue.
Depending on the option selected, they were reduced from the sum assured,

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resulting in dilution of death benefits to the nominees. Now, withdrawals will be
allowed only after three years. The new guidelines provide that except for
withdrawals made during the two years immediately preceding death, no other
withdrawals can be reduced from the sum assured. But once the customer is
past the age of 60, all withdrawals can be reduced from the sum assured.

Lock-in period:

A top-up premium cannot be withdrawn for three years. This places ULIPs on
par with mutual fund contributions under Section 80C of the Income Tax Act,
1961. The only relaxation in this condition is on withdrawal of top-up premiums
made during the last three years of the policy contract.

Settlement options:

The policyholder has settlement options, to receive the policy benefits in
various forms, rather than a lump sum. For example, the company can give the
policyholder an option to receive the maturity benefit in the form of a monthly
pension. IRDA has restricted such extended periods of settlement to five years
from the date of maturity. The company should also make clear the inherent risk
involved in extended periods of settlement.

Charges:

Charges are costs appropriated by insurance companies from ULIP
premiums. The IRDA has listed the charges that insurance companies can
levy on policyholders, as well as laid out the standard definitions for use in
policy contracts. This is aimed at clarity and to enable customers to
understand and compare costs between different insurance companies.

Market Conduct:

There is an inherent risk in investing in ULIPs, as the performance of the
funds underlying the ULIPs governs their returns. To address these risks, the
IRDA has authorized the Life Insurance Council to formulate a Code of
Conduct for sale of ULIPs. This includes mandatory training for agents before
they are authorized to sell ULIPs, documentation to enable the customer to
understand and acknowledge the risk involved in buying ULIPs, a code of
conduct for their sale, educating policyholders on risk factors, terminology,
charges, etc.

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CHAPTER 1
INTRODUCTION

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Introduction to study:

My study is that I have to Analysis with regard to Investors base and Investment avenues
in case of insurance companies-“ICICI PRUDENTIAL NEW CHANNEL TIE UP WITH
POST OFFICE Let’s discuss the concept of insurance and a brief introduction about
these 2 companies.

“Insurance is a contract between two parties whereby one party called
insurer undertakes in exchange for a fixed sum called premiums, to pay
the other party called insured a fixed amount of money on the happening
of a certain event.”

It’s hard to think about those you leave behind if something happens to you. Your family
counts on you every day for financial support: food, shelter, transportation, education,
and much more. You and your spouse have plans or your future and dreams for your
family: a bigger home, a new business, college education, travel, retirement etc.

Life insurance is all about making sure your family has adequate
financial resources to make those plans and dreams come true, if you were
to die prematurely

It provides financial protection to help your family to manage after your death. Insurance
companies collect premiums to provide for this protection. A loss is paid out of the
premiums collected from the insuring public and the insurance companies act as trustees
to the amount collected

Many companies are coming with various plans Ulip plan is one of them which provides
huge benefit to the public. It provides insurance as well as investment.

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Why Life Insurance?

You think twice before taking the plunge into buying insurance. Is buying
insurance a necessity now? Spending an 'extra' amount as premium at
regular intervals where you do not see immediate benefits does not seem a
necessity at the moment.

Well you could be wrong. Buying Insurance cannot be compared with
any other form of investment. Insurance gives you a life long benefit and the
returns will definitely come but only when you need it the most i.e. at the
right time. Besides buying insurance early in life is one of the wise decisions
you could take. Because the premium you would be paying would be
comparatively lower.

Insurance is not about how much more it can offer you when the stock
market is at its peak. It may not be an attractive investment option. But
weigh the pros and cons and consider how much more it offers at a small
price.

Most important of all it provides you with that unique sense of
security that no other form of investment provides. It gives you a sense of
financial support especially during that time of crisis irrespective of the
fluctuations in the stock market. Insurance provides for your career goals
right from your childhood years.

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If the earning member of the family is no more your child's
educational needs will not suffer. In fact his higher education too will be
provided for. You need not spend sleepless nights thinking about how to
save for your child's marriage. Life Insurance will take care of that typical
once-in-a-life-time spending on marriages.

An accident or a disability may be devastating but an insurance policy
can be of utmost support for the family during such times too. Besides it
provides for additional benefits such as bonuses. You need not worry about
your retirement years. The rising prices, taxes, and your lifestyle will be
taken care of easily. And you can relax and spend your old age in comfort
and peace.

Need for Life Insurance

The need for life insurance comes from the need to safeguard our family. If
you care for your family’s needs you will definitely consider insurance.

Today insurance has become even more important due to the disintegration
of the prevalent joint family system, a system in which a number of
generations co-existed in harmony, a system in which a sense of financial
security was always there as there were more earning members.

Times have changed and the nuclear family has emerged. Apart from other
pitfalls of a nuclear family, a high sense of insecurity is observed in it today
besides, the family has shrunk. Needs are increasing with time and
fulfillment of these needs is a big question mark. Insurance provides a sense

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of security to the income earner as also to the family. Buying insurance frees
the individual from unnecessary financial burden that can otherwise make
him spend sleepless nights. The individual has a sense of consolation that he
has something to fall back on.

From the very beginning of your life, to your retirement age insurance can
take care of all your needs. Your child needs good education to mould him
into a good citizen. After his schooling he needs to go for higher studies, to
gain a professional edge over the others - a necessity in this age where
cutthroat competition is the rule. His career needs have to be fulfilled.

Life insurance today plays a major role in ones life at various stages.
Considering the benefits it offers one cannot but give a thought to buying an
insurance policy at the earliest.

INSURANCE PROVIDES:-

Insurance provides varies benefits to the people. some of those are
listing below -

1Risk Coverage

2Child Solutions

3Whole-Life Plans

4Health Protection

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5Superior Saving Instrument

6Investment

7Retirement(Pension Plans)

1 Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.

Ms. Chanda D. Kochhar, Chairperson
Mr. N. S. Kannan, Director
Mr. K. Ramkumar, Director
Mr. Barry Stowe, Director
Mr. Adrian O’Connor, Director
Mr. Keki Dadiseth, Independent Director
Prof. Marti G. Subrahmanyam, Independent Director
Ms. Rama Bijapurkar, Independent Director
Mr. Vinod Kumar Dhall, Independent Direct

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PROFILE OF INSURANCE INDUSTRY

Insurance is a must because of the uncertain future adversities of life.
Accidents, illnesses, disability etc are facts of life that can be extremely
devastating. Other than the hospitalization, medication bills these may run
up it’s the aftermath of the incident, the physical well being of the individual
that has to be taken into consideration. Will the individual be in a position to
earn as before? A pertinent question. But what if he is not? Disability can be

17

taken care of by insurance. Your family will not have to go through the grind
due to your present inability.

necessity at the moment. May be later well you could be wrong. Buying
Insurance cannot be compared with any other form of investment. Insurance
gives you a life long benefit and the returns will definitely come but only
when you need it the most i.e. at the right time. Besides buying insurance
early in life is one of the wise decisions you could take. Because the
premium you would be paying would be comparatively lower.

INDIAN INSURANCE INDUSTRY
Insurance industry, as on 1.4.2000, comprised mainly two players: the state
insurers:
Life Insurers:

• Life Insurance Corporation of India (LIC)

• HDFC Standard Life Insurance Company Ltd.

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• Max New York Life Insurance Co. Ltd.

• ICICI Prudential Life Insurance Company Ltd.

• Kotak Mahindra Old Mutual Life Insurance Limited

• Birla Sun Life Insurance Company Ltd.

• Tata AIG Life Insurance Company Ltd.

• SBI Life Insurance Company Limited

• ING Vysya Life Insurance Company Private Limited

• Bajaj Allianz Life Insurance Company Limited

• Metlife India Insurance Company Pvt. Ltd.

General Insurers:

• General Insurance Corporation of India (GIC) (with effect from
Dec'2000, a National Reinsurer)

GIC had four subsidary companies, namely ( with effect from Dec'2000,
these subsidaries have been de-linked from the parent company and made as
independent insurance companies.

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1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited.

SAHARA 0.61 0.04

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Company Profile of
POST OFFICE
GENERAL PROFILE OF THE ORGANISATION, FUNCTIONS AND DUTIES

The Department of Posts comes under the Ministry of Communications
and Information Technology, Government of India, functions under the Minister
for Communications and Information Technology, and has a Minister of
State for Communications to assist the Minister of Communications
and Information Technology in the discharge of various functions. The Secretary,
Department of Posts, as the Chief Executive of the Department, is
also the Director General, India Post, and the Chairman of the Postal Services
Board.

21

Shri. A. Raja is the Minister of Communications and Information
Technology

Shri. Gurudas Kamat is the Minister of State for Communications and
Information Technology.

Shri. Sachin Pilot is the Minister of State for Communications and Information
Technology.

Ms. Radhika Doraiswamy is the Secretary (Posts) to Govt. Of India as well as
Director General, Department of Posts and the Chairman of the Postal Services
Board.

The Postal Services Board, the apex management body of the
Department, comprises the Chairman and six MembeINR The Members of the
Board hold portfolios of Operations, Development and Personnel. The Joint
Secretary and Financial Advisor to the Department is a permanent
invitee to the Board. The Board is assisted by a senior staff officer of the
Directorate as Secretary to the Board. Presently, Deputy Director General (FS) is
assisting the Board in this capacity. Deputy Directors General, Directors and
Assistant Directors General provide necessary support for the Board at
HeadquarteINR The Postal Services Directorate is the Headquarters
organization located at Dak Bhawan, New Delhi, to oversee the operations in the
provision of postal services throughout the country.

The Postal Services Board comprises the following at present:

Ms. Radhika Doraiswamy Secretary (Posts) Chairman, Postal Board & Director
General

Ms. Indira Krishna Kumar Member (Personnel), Postal Services Board

Ms. Manjula Prasher Member (Operations), Postal Services Board

S. Samant Member (Technology), Postal Services Board

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Dr. Uday Balakrishnan Member (PLI) & Chairman Investment Board, Postal
Services Board

Maj. Gen. V Sadasivam Member (HRD) Postal Services Board

Sri P K Gopinath Member (Planning), Postal Services Board

For providing postal services, the whole country has been divided into 22 Postal
Circles. These Circles manage the day-to-day functioning of the various Head
Post Offices, Sub - Post Offices and Branch Post Offices, through their Regional and
Divisional level arrangements.

Objectives

Department of Posts is committed to providing universal access to basic postal
services in the country at affordable prices. Its objectives are to:-

Ensure availability of basic postal services in all parts of the country,
including tribal, hilly and remote areas.

Provide efficient reliable and economic service.

Provide value added services according to market requirements.

Modernize the services to handle the growing volume of work with
efficiency and thereby enhance customer and employee satisfaction.

Be a forward looking organization, and

Generate more resources and improve financial performance.

As per Government of India (Allocation of Business) Rules, 1961, second Schedule,
Rule 3, Distribution of Subjects among the Departments the Department Of Posts is
responsible for

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1. Execution of works, including purchase of land debitable to the Capital Budget
pertaining to the Department of Posts.

2. Posts, including Post Office Savings Banks (Administration), Post Office
Certificate (Administration), Post Office Life Insurance Fund (Administration),
printing of public postage stamps/commemorative stamps including postal
stationery, premium postal products and any agency function.

3. International cooperation in matters connected with postal communications,
including matters relating to all international bodies dealing with postal
communications such as Universal Postal Union, Asia Pacific Postal Union

(APU), Commonwealth Postal Union.

4. Matters relating to introduction, development and maintenance of all services
by the Post Office including those based on cable, radio and satellite
communications channels:

Provided that these matters do not amount to broadcasting, narrow casting,
cable and radio networking services and are also not governed by the Indian
Telegraph Act, 1885 and the rules made there under, and not exclusively
allotted to any other Department.

5. Promotion of feasibility survey, research and development in the field of
activities allotted to the Department.

6. Matters relating to administration of the Indian Post Office Act, 1898 and rules
made there under as well as other laws or enactments having a bearing on
postal activities, not specifically allotted to any other Department.

Network

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INDIA HAS THE LARGEST POSTAL NETWORK IN THE WORLD WITH
1,55,669 POST OFFICES OF WHICH 89% ARE IN RURAL AREAS. AT THE TIME
OF INDEPENDENCE, THERE WERE 23,344 POST OFFICES, WHICH WERE
PRIMARILY IN THE URBAN AREAS. THUS THE NETWORK HAS REGISTERED A
SEVEN FOLD GROWTH OVER THE LAST FIVE DECADES, THE FOCUS OF THIS
EXPANSION BEING IN THE RURAL AREAS. ON AN AVERAGE, A POST OFFICE
SERVES AN AREA OF 21.09 SQ. KM. & POPULATION OF 6,585. THROUGH
THESE OFFICES IT ENSURES DAILY DELIVERY OF DAK AT THE DOORSTEP OF
EVERY CUSTOMER ALL OVER THE COUNTRY, COLLECTION OF LETTERS
THROUGH LETTERBOXES, AND ALSO SALE OF STAMPS AND STATIONERY
THROUGH VILLAGE POSTMEN AT THE DOORSTEP OF CUSTOMERS IN RURAL
AREAS. POST OFFICES IN URBAN AND RURAL AREAS PROVIDE A RANGE OF
BASIC POSTAL SERVICES TO THE CUSTOMERS, INCLUDING BANKING AND
INSURANCE SERVICES. BILL COLLECTION FELICITIES ARE BEING EXTENDED
THROUGH ALL POST OFFICES IN URBAN AREAS, AND IDENTIFYING POST
OFFICES IN RURAL AREAS. CERTAIN VALUE ADDED SERVICES ARE BEING
PROVIDED IN SELECTED OFFICES IN URBAN AREAS.

Efforts are also being made to identify means of providing postal services
through more cost effective measures. The Licensed Stamp Vendor Scheme,
Licensed Postal Agents Scheme and the Panchayat Sanchar Sewa Yojana(PSSY) were
initiatives that were taken up in this regard. So far 7,697 Panchayat Sanchar Sewa
Kendras(PSSKs) have been opened, including 2,371 PSSKs under the 10 th Plan.
Since an assessment of these schemes indicates the need for restructuring them, no
targets were given in 2004-05 for opening PSSKs.

Efforts are also underway to optimize the retailing capacity of the network.
One major initiative taken up in the current year is the retailing of non-life insurance
products through Post Offices. The Department has entered into an agreement with
the Oriental Insurance Company to function as their Corporate Agent for marketing
identified non-life products. This Scheme was launched on a pilot basis through
select Post Offices in 2 districts each of 7 Circles. It is being gradually expanded,
after providing the requisite training to other Circles.

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Postal Services

Postal operations at the post office encompass the entire gamut of the basic
postal services which interalia include:

i) Sale of stamps and stationery

ii) Booking of registered articles

iii) Booking of insured articles

iv) Booking of value payable articles
Remittance of money through money orders
v)
and postal orders
vi) Booking of Parcels

Traditionally, these services were being provided at manually
operated counte INR Considering the vital need for providing the benefit of
technology to the customers, the counter operations are now being progressively
computerised to provide a greater range of service to the customer from a single
window leading to services being more responsive, and error free.

Mail Operations

Mail processing, transmission and delivery are the core activities of the
Department. Mail is collected from 0.60 Million letter boxes in the country. This is
processed by a network of 466 Railway Mail Service Offices, and conveyed by road,
rail and airlines all over the country.

Philately

The philatelic activities of India Post include:-

Designing, printing and distribution of special/commemorative postage
i)
stamps and other postage stamps/ service postage stamps.
Items of postal stationery like Envelope, Inland Letter Card, Postcard,
ii)
Aerogram and Registered Cover etc.

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Monitoring and promotion of Philately/conduct of philatelic exhibitions
iii)
within the country, participation in international and world exhibitions

iv) Management of the National Philatelic Museum, Dak Bhavan.

Insurance is a must because of the uncertain future adversities of life.
Accidents, illnesses, disability etc are facts of life that can be extremely

27

devastating. Other than the hospitalization, medication bills these may run
up it’s the aftermath of the incident, the physical well being of the individual
that has to be taken into consideration. Will the individual be in a position to
earn as before? A pertinent question. But what if he is not? Disability can be
taken care of by insurance. Your family will not have to go through the grind
due to your present inability.

necessity at the moment. May be later well you could be wrong. Buying
Insurance cannot be compared with any other form of investment. Insurance
gives you a life long benefit and the returns will definitely come but only
when you need it the most i.e. at the right time. Besides buying insurance
early in life is one of the wise decisions you could take. Because the
premium you would be paying would be comparatively lower.

28

The company mainly depends on advisors. The advisors are
considered as the brand ambassadors of the company or the working
partner who doesn’t have to invest to get returns but just work with
the company to make money. Advisors main job is to sell policy and
in return the advisors get huge return like high commission, rewards,
recognition etc. He is, for all purposes, an authorized salesman for
insurance.
Advisors can become the Unit Manager of the company if they
pass the pinnacle program. ICICI Prudential has recruited and trained
about 56,000 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.
Manager will get a fixed salary and the commission on the
policies sold by his advisor and the commission of the policies which
he has already sold. Tiger team manager is one who gets to sell the
policy and get commission, train the advisors about the product and
he is also a paid up employee of the company.

ICICI GROUP

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VISION
To be the dominant Life, Health and Pensions player built on trust by
world-class people and service

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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VALUES
Very member of the ICICI Prudential team is committed to 5 core
values: Integrity, Customer First, Boundary less, Ownership, and
Passion. These values shine forth in all we do, and have become the
keystones of our success

Brief Detail of the Company:/History

34

ICICI Prudential Life Insurance Company is a joint part of ICICI Bank, a
premier financial powerhouse, and Prudential policy, 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 capital stands at Rs. 18.15 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the period
April-December 2006, the company garnered new business weighted
premium of over Rs 2,302 crore and wrote over 1.1 million policies. The
company has assets held to the tune of over Rs 13,000 crore.

ICICI Prudential is also the only private life insurer in India to receive a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings.
The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI
Prudential's ability to meet its obligations to customers at the time of
maturity or claims.

For the past six years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that
meet the needs of the Indian customer at every step in life. To know more
about the company, please visit www.iciciprulife.com.

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Distribution

ICICI Prudential has one of the largest distribution networks amongst
private life insurers in India. As of December 31, 2006 it had commenced
operations in over 360 cities and towns in India, stretching from Bhuj in the
west to Guwahati in the east, and Jammu in the north to Trivandrum in the
south, and had over 175,000 advisors.

The company has 18 bancassurance partners, having tie-ups with ICICI
Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank,
all regional rural banks sponsored by Bank of India, as well as some co-
operative banks. It has also tied up with NGOs, MFIs and corporates for the
distribution of rural policies.

Product Offered By POST OFFICE & ICICI PRUDENTIAL

PRODUCT OFFERED BY POST OFFICE CHANNEL

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1 .NSC

2 .PPF

3 .SENIOR CITIZEN SCHEMES

4 .PO MIS

5 .TIME DEPOSITS

6 .FIXED DEPOSITS

7 .KISAN VIKAS PATRA

1. NSC,TIME DEPOSITS,FIXED DEPOSITS,KISAN VIKAS PTRA
Medium term fixed maturiy schemes

2.Senior citizen schemes,po mis Medium term regular incom schemes

3.PPF long term fixed maturity schemes

1.Kisan vikas patra min/max investment min 100rs 500rs 1000rs 10000rs
50000rs there is no maximum limit

2. Term 8years7months

3. interest rates 8.25%compunded half yearly

4.tax benefits at the time of investment –no rebate available

Interim withdrawal taxable

Withdrawal on maturity taxable

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2.post office time deposits

Min/max investment min200rs and maximum is no limit

Term 1,2,3 and 5years

Interest rate

1years-6.25%

2years-6.5%

3years-7.25%

5years-7.5%

Quartely compounding

Tax benefits-at the time of investment- rebate available up to 1lac under
sec80c for 5year time deposits

Interim withdrawal-taxable

Withdrawal on maturity-taxable

3.NSC

Min/max investment-100rs 500rs 1000rs 10000rs there is no maximum limit

Term-6years

Interest rate-8%per annum half yearly compounded(rs.100 becomes 160.10
after maturity period of six years)

39

Tax benefits-at the time of investment rebate available on investment and
accrued interest up to 1 lac under sec 80c

Interim withdrawal –N/A


5. F.D- min/max investment-min rs1000and no limit maximum

Term- min7days max-up to 10 years

Interest rate- present rate-10 to10.5% compounding differs from bank to
bank

Tax benefits-at the time of investment- rebate available up to 1lac under
sec 80c for year deposits

Interim withdrawal-taxable


PO MIS- MIN/MAX investment-min1500 max-450000 for single a/c and
900000 for joint a/c

TERM-6 year

Interest rates-8% per annum payable monthly plus bonus of 5% in case
held till maturity

TAX benefits-at the time of investment- no rebate available interim
payment-taxable

SENIOR CITIZEN SCHEMES-MIN/MAX-min1000 max15laks

40

TERM-5years extended by 3year

Interest rates-9%annual fixed rate which is payable quaterly

TAX BENEFITS-at the time of investment- rebate available up to 1lac
under sec 80c

INTERIM PAYABLE-taxable

PPF-min/max investment- min-500 max 70000 in a finacial year

TERM-15 year

INTEREST RATES-present rates-8% compounded per annum rate in the
year 2000-12%

TAX BENEFITS-rebate available up to 1lac under sec80c

INTERIM WITHDRAWAL-tax free

Withdrawal on maturity-tax free

OBJECTIVE OF THE STUDY

 To review the whole system of POST OFFICE and ICICI

PRUDENTIAL LIFE INSURANCE in terms of origin, growth and

rationale.

41

 To study the awareness level of private COMPANY among the

GOVT SECTOR POST OFFICE

 To study and understand the customers requirement and fulfill these

requirement

 To analyze various services provided by ICICI PRUDENTIAL LTD

and POST OFFICE

I

Products Offered By ICICI Prudential

42

2 Insurance Plans

ICICI Prudential has a wide array of insurance plans that have been
designed with the philosophy that different individuals are bound to have
differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of
the individual that will depend on the age and life stage of the individual
apart from a host of other factors.

Life Insurance Plans:

Under Life insurance plans, ICICI Prudential offers plans under the
following major need categories:

• Education Insurance Plans
• Wealth Creation Plans
• Premium Guarantee plans
• Protection Plans
43

Pension & Retirement Solutions:

The primary objective of a pension plan is to help you provide for your
financial needs in your post retirement years. You will find a Pension
Planning Calculator on the site, meant to make your pension plan review as
simple as possible. The calculator is the first step in your Pension Plan
scheme, there are othe steps towards getting the Indian pension policy you
need.

Click here to know more about our pension plan solutions.

• LifeStage Pension
• LifeTime Super Pension
• LifeLink Super Pension
• ForeverLife

44

Health Product Suite:

Under Health Product Suite, ICICI Prudential offers plans under the
following major need categories:

Hospitalisation Plans

• MediAssure
• Hospital Care

Critical Illnessl Pans

• Crisis Cover

Cancer Products
45

• Cancer Care

Diabetes Products

• Diabetes Care Active
• Diabetes Assure

3 Education Insurance Plans

One of your most important responsibilities as a parent is to ensure
that your child gets the best possible education that can be provided.

ICICI Prudential offers a wide portfolio of education insurance
plans that are designed to provide peace of mind to you, as a parent, that
your child's education will be secure. These plans ensure that money is made
available at the crucial junctures in a child's education - Class X, Class XII,
graduation and post-graduation - to fund crucial commitments for the child's
future.

Importantly, education insurance plans ensure that in the unfortunate
event of the death of a parent, the child's education continues unhampered.

46

Under the education insurance plans platform, ICICI Prudential brings
the following products to you. Please click on the product name to know
more about the plans.

Plan Name Plan Type

SmartKid New Unit-linked Unit Linked
Regular Premium

SmartKid New Unit-linked Unit Linked
Single Premium

SmartKid Regular Premium Traditional

4 Wealth Creation Plans

Wealth Creation Plans give the customer the dual benefit of
protection along with the potentially higher returns of market-linked
instruments. The most important benefit of ULIPs is the flexibility they give
the customer in choosing the premium amount and also choosing the
underlying fund in which this money is to be invested. Wealth creation plans
also offer the customer more liquidity options as compared to traditional
plans. As such, ULIPs are ideal for customers who want the protection of a

47

life cover to be allied to the returns of market linked instrument – giving
them an unmatched combination of benefits.

Under the wealth creation platform, ICICI Prudential brings the
following products to you. Please click on the product name to know more
about the plans.

Plan Name Plan Type

ICICI Pru Secure Save Unit Linked

ICICI Pru Wealth Advantage Unit Linked

ICICI Pru Life Stage Assure Unit Linked

ICICI Pru Life Time Gold Unit Linked

ICICI Pru Premier Life Gold Unit Linked

ICICI Pru Life Link Super Unit Linked

ICICI Pru Life Stage RP Unit Linked

48

Retirement Solutions

ICICI PRUDENTIAL Provide a wide range of retirement plans and
they are as follows

• Life Stage Pension
• Life Time Super Pension
• Life Link Super Pension
• Fore ver Life
• Immediate Annuity

Group Plans

ICICI Prudential offers a suite of group insurance plans that are as
follows:

• Group super annuation
• Group gratuity period
• Annuity solution plan
• Group term insurance plan
• Group term insurance in lieu of EDL

Organization Structure of ICICI

49

CHIEF MANAGING DIRECTOR (CMD)

CHIEF AREA OFFICER CHIEF AREA OFFICER

(PENINSULAR) (HIMALAYAN)

Sales Head

ZONAL MANA GER ZONAL MANA GER ZONAL MANA GER ZONAL MANA GER ZONAL MANA GER

ZONAL MANA GER ZONAL MANA GER

AREA SALES MANA GER

Unit Manager / Area Manager/ Senior Agency Manager

50

Research Methodology deals with, the procedure adopted to carry

out the study.

According to green and Tull:

“A research design is the specification of methods and procedures

acquiring the information needed It is the overall operational pattern or

framework of the project that stipulates which information is to be

collected from which sources by what procedures’’. For conducting the

study, the researcher has adopted both primary as secondary method of

data cllection.

TYPE OF RESEARCH

Research refers to the search for knowledge. It can be defined as

scientific and systematic search for pertinent information on a specific

topic. It is careful investigation or enquiry especially through search for

new facts of any branch of knowledge.

Research plays an important role in the project work. The result of the

project is completely based upon the research of the facts and figures

52

collected through the different ways of research. That is why it is also

called a movement from known to unknown. Research is the original

contribution to the existing stock of knowledge.

• Exploratory or Formulative research: Exploratory research is

conducted to clarify the ambiguous problems

• Descriptive research: To portray the characteristics of an

individual, group, situation, etc

• Diagnostic research: To determine the frequency of occurrence of

an event.

Research Design

In the data collection method, we have collected both primary and

secondary data to meet our objective.

Primary data:

The primary data was collected by a survey based on the

questionnaire. It was formulated on the basis of information gathered

53

by me with the help of Miss Taruna Arora who provide useful

guidelines and objective of our study.

Secondary data:

The secondary data was collected from books and internet.

Data Source:

The data that is collected from different sources, as the first hand

information that is called primary data. The source of primary data in

my research is questionnaire and observation method. The secondary

data were also used in my report preparation. This is collected from

company record and from internet.

Research Approach:

The required information in the form of data is collected through

survey method, with the help of personal interview through

questionnaire method.

Sampling plan:

54

There is a stage where the planning is done about the sample

units, sample size, sampling procedures, etc.

Sample units:

This means, which is to be surveyed. So as mention earlier that the

sample units is potential peoples.

Sample size:

The sample size means how many peoples should be surveyed. So

that total sample size is 150, which cover from different area of Una.

Sampling Procedures:

I choose convenient and judgmental sampling for my research.

Data collection method:

Personal interview method is used for collection of primary data

in the form of questionnaire from respondents.

Research Instruments:

Once the source of data collection is decided then comes the

instrument for data collection or the research instrument. In this survey

55

method a questionnaire was framed. This is Philip by the potential

people though personal interview

SWOT ANALYSE
Strength

• Good Fund Management Team.
• Stable and experienced management.
• Innovative Products, Technology, Organization culture and
climate.
• Excellent services.
• Less documentation formalities are required.
• Morally and ethically strong.
• Huge customer database.
• Strong networks.

Weakness

• Investment Products are slight costly.
• High operating and commission expenses
• Less attractive offers.
• Lack of promotional campaigns

56

• Competitors are in the market offer same product offered
by the difference in the premium and offering.
• Lack of customer awareness

Opportunity
.

• People are now more health and life conscious.
• Some Rural markets are still untouched.
• In the pension field where people want good life after their
retirement.
• It can piggyback on the brand name of the BIRLA.
• Highly potential market.

Threats

• POST OFFICE , public player acting as a big competitor
• Others Competitors (ICICI Pru, )
• With around 14 private players, it is very difficult to capture
the market share.

57

Results and Disscussions/Findings

No. of Respondents Yes No

100 72 28

 Do you invest?
No. of respondents

80
70
60
50
40
30
20
10
0
Yes No

58

 If not, why? What is the reason for that?

No. of Lack of Full of Lack of Lack of Inadequate
Respondents knowledge risk guidance interest funds
28 6 3 3 5 11

Lack of
knowledge
Full of risk
6, 21%
11, 39% Lack of
3, 11% guidence
5, 18% 3, 11%
Lack of interest

Inadequate
funds

59

 If not investing, are you interested in investing?


28 20 8

8, 29%

Yes
No

20, 71%

60

 What comes do you perceive first while investing?

No. of Security High saving Tax Others
Respondents returns benefits
72 15 24 17 16 0

30
No of respondents

24
25
20 17 16
15
15 Series1
10
5
0
0
Security High saving Tax others
returns benefits

61


72 53 19

 Are you adequately insured?

62

19, 26%

Yes
No

53, 74%

 Which Plan do you prefer and invest?

No. of Term Endowmen Money Pension Mediclaim Child
Respondents Plan t Plan Back Plan plan plan
Plan
72 12 10 27 10 8 5

63

No. of Security High saving Tax others
Respondents returns benefits
72 15 15 16 21 5

 Specify the reasons for investing in a particular plan:

64

25
21
20
16
No. of respondents

15 15
15

10

5
5

0
Security High returns saving Tax benefits others

 Are you satisfied with the investment decision?

No. of Respondents Highly Satisfied Modera unsatisfied Highly
Satisfied te unsatisfied

65

72 6 39 19 6 2

50
39
No of respondents

40
30
19 Series1
20
10 6 6
2
0
Highly Satisfied Moderate unsatisfied Highly
Satisfied unsatisfied

 If not, what are the reasons behind that:

No. of Lack Of Full of Lack of Lack of Inadequate More than
Respondents knowledge risk guidance interest funds one reason

66

8 1 1 1 1 1 3

Term Plan

Endowment
5 12 Plan
8
10 Money Back
10 Plan
Pension Plan
27
Mediclaim plan

Child plan

3.5 3
3
2.5
2
1.5 1 1 1 1 1
1
0.5
0
Inadequate
Full of risk

one reason
guidance

Lack of
interest
knowledge

More than
Lack of
Lack Of

funds

67

 What do you think who can better guide you for investment?

No. of Respondents Broker/agent Banks Investment others
consultant
72 13 17 35 7

68

Broker/agent
7, 10% 13, 18%
Banks

17, 24% Investment
35, 48% consultant
others

 Which Company do you prefer for investing?

No. of Respondents ICICI PRU POST Others
OFFICE
72 28 36 8

69

 Are you satisfied with the behavior/knowledge of broker/agent of a
company preferred by you?

No. of Highly Satisfied Moderat unsatisfie Highly
Respondents Satisfied e d unsatisfied
72 8 41 15 7 1

70

50
41
No of respondents

40

30
Series1
20 15
8 7
10
1
0
Highly Satisfied Moderate unsatisfied Highly
Satisfied unsatisfied

CONCLUSION

Competition will surely cause the market to grow beyond
current rates, create a bigger "pie," and offer additional consumer
choices through the introduction of new products, services, and price
options. Yet, at the same time, public and private sector companies
will be working together to ensure healthy growth and development
of the sector. Challenges such as developing a common industry

71

code of conduct, contributing to a common catastrophe reserve fund,
and chalking out agreements between insurers to settle claims to the
benefit of the consumer will require concerted effort from both
sectors.
The market is now in an evolving phase where one can expect a lot
of actions in coming days. The current impediments for foreign
participation – like 26% equity cap on foreign partner, ill defined
regulatory role of IRDA (Insurance Regulatory development Authority-
the watchdog of the industry) in pension business etc.—are expected
to be removed in near future. The early-adopters will then have a
clear advantage compared to laggards in gaining the market share
and market leadership. The will need to make sure right now that all
their infrastructure is in place so that they can reap the benefit of an
"unlimited potential."

72

BIBLIOGRAPHY

Books:

1Insurance(meaning and concept)-Published by IRDA

2The Mc-Grew Hill Investors Desk Reference,Mc-Graw
Hill Publications, Ellie Williams Clinton, page-301-303

3Life Insurance, Indiana University Press. Belth M. Joseph

4Statistical Methods by S.P. Gupta, 34th edition, published
73

by Sultan Chand & Sons.

5Research Methodology by C.R. Kothari, Second Edition
published by New Age International (P) Ltd.

6Business Research Methodology-Cooper & Sindler,4th
Edition

7Brouchers of different products of selected companies

8Handbook of ICICI PrudentiAL

9VISIT IN VARIOUS POST OFFICE DISTT UNA

Websites:

1www.economywatch.com

2 www.icicipru.com

3www.licindia.com

74

4www.irda.org

5www. Indiainfoline.com

75

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