a project report on insurance as an investment tool with regards to ulip at icici ltd

Insurance as an investment tool with regards to ULIP at ICICI LTD

EXECUTIVE SUMMARY

As the people are becoming more and more and aware of their Life Style and Income

level. They need a plan, which has an optimum balance between their Investment and

Savings. They require an integrated financial plan for investment.

The customer requires those investment options, which provide them with flexibility and

Liquidity and tax benefit.

Among the various other investment options, Insurance has gained a prominent place .It

provides the policyholder with the benefit of Life Protection and at the same time allows

him to take the benefit of the fluctuations of the share market.

Thus Life Insurance has taken a very vital position as a wholesome investment option.

Life Insurance is gaining public awareness and interest very rapidly. It was till now been

thought as a way to insure lives, But, recently it is emerging as a prominent Investment

avenue.

It has come up as a wholesome Investment avenue & provides the benefit of flexibility,

Liquidity and Life protection. Along with added benefits like the rider attachments which

protect the policyholder from various kinds of diseases and accident etc.

Babasabpatilfreepptmba.com


Scope of the study:

The study will bring out the what people prefer investing in the insurance and

how they divide there income for investing in different source of investment.

The study will bring out the extent of awareness of ULIP.

The study will help to know the working environment of the organization in the

field.

Limitation of the study: As this study is academic in nature, it suffer from time and cost constraints.

As data was collected through personal survey, it suffer from reverse bias.

Respondent were asked to recall from their memory. Hence there are chance of

recall bias.

The behavior of personnel might have changed under the condition of

observation.

There might have been tendencies among the respondent to amplify of their

responses under testing condition.



Company profileAs finance is the lifeblood for all economic activities, one aspect of financial arena,

which plays a very important role, is the Insurance.

Insurance is the outcome of Man’s search for safety and security, and to find out

ways and means to minimize the hardship, which are beyond his control. Because of the

economic reforms introduced by our government we can see that due to this

Globalization and privatization there is enormous increase in the private sector players

queuing in the insurance sector. This entry of Private players has enhanced the

competitiveness and Quality of service with many innovated products.

Now in India there are totally 28 players including 14 Life and 14 General

Insurance Companies. And Life Insurance is one of the most common forms of

insurance.

ICICI Prudential Life Insurance is a joint venture between the ICICI Group and

Prudential plc, of the UK. ICICI started off its operations in 1955 with providing finance

for industrial development, and since then it has diversified into housing finance,

consumer finance, mutual funds to being a Virtual Universal Bank and its latest venture

Life Insurance .ICICI Prudential Life Insurance Company is a joint venture between

ICICI Bank, which is one of India's foremost financial services companies, and

Prudential plc, which is a leading international financial services group headquartered in

the United Kingdom. ICICI Prudential began the operations in December 2000. Today,

this company has over 2100 branches, which include 1,116 micro-offices, over 290,000

advisors and 18 banc assurance partners. ICICI Prudential Life Insurance Company is the

first life insurer in India that received a National Insurer Financial Strength rating of

AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most Trusted

Private Life Insurer for three consecutive years. ICICI Prudential Life Insurance

Company has various insurance plans that have been designed for different individuals,

as every individual has different insurance needs.



ICICI Prudential Life Insurance Company Limited was incorporated on July 20,

2000.The authorized capital of the company is Rs.2300 Million and the paid up capital is

Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK

(26%).The Company was granted Certificate of Registration for carrying out Life

Insurance business, by the Insurance Regulatory and Development Authority on

November 24, 2000. It commenced commercial operations on December 19,

2000,becoming one of the first few private sector players to enter the liberalized arena.

The Company is now operational in Mumbai, New Delhi, Pune, Chennai,

KolkataBangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur,

Cochin, Meerut, Mangalore and Ludhiana.The Company recognizes that the driving force

for gaining sustainable competitive advantage in this business is superior customer

experience and investment behind the brand. The Company aims to achieve this by

striving to provide world class service levels through constant innovation in products,

distribution channels and technology based delivery.

Prudential PLC

Prudential plc was founded in 1848. Since then it has grown to become one of the largest

providers of a wide range of savings products for the individual including life insurance,

pensions, annuities, unit trusts and personal banking. It has a presence in over 15

countries, and caters to the financial needs of over 10 million customers. It manages

assets of over US$ 259 billion (Rupees 11,39,600 crores approx.) as of December 31,

1999. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1

million customers across 11 Asian countries.

Prudential is the largest life insurance company in the United Kingdom (Source : S&P's

UK Life Financial Digest, 1998). Asia has always been an important region for

Prudential and it has had a presence in Asia for over 75 years. In fact Prudential's first

overseas operation was in India, way back in 1923 to establish Life and General Branch

agencies. Development of superior products and services that offer value for money and

security while producing superior financial returns, enables Prudential to maximise the

value of its shareholder's investment and to establish lasting relationships with customers

and policy holders.



Brief Review of Scenario – InsuranceInsurance was nationalized mainly on 3 counts First, Indian lives were not insured.

Second, even if they were insured, they were treated as substandard lives and extra

premium was charged. Third, there were gross irregularities in the functioning of Life

insurance was nationalized in the year 1956, and then general insurance was nationalized

in the year 1972. In 1999, the private insurance companies were allowed back again into

insurance sector with maximum cap of 26 percent foreign holding.

1818 The British introduce to India, with the establishment of the Oriental Life

Insurance company in Calcutta.

1850 Non life insurance debuts, with Triton Insurance Company.

1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer

1907 Indian mercantile Insurance is the first Indian non-life insurer.

1912 The Indian life assurance companies’ act enacted to regulate the life

insurance business.

1938 The insurance act, which forms the basis for most current insurance laws,

replaces earlier act.

1956 Life insurance nationalized, government takes over 245 Indian and foreign

insurers and provident societies.

1956 Government sets up LIC

1972 Non life insurance nationalized, GIC set up.

1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up

to draw up a blue print for insurance sector reforms.

1994 malhotra Committee recommends re-entry of private players, autonomy ot

PSU insurers.

1997 Insurance regulator IRDA (Insurance Regulatory and Development

Authority) set up.

2000 IRDA starts giving licensed to private insurers

2001 ICICI Prudential Life Insurance came into the market to sell a policy.



2002 Banks were allowed to sell insurance plans, as TPAs enter the scene,

insurers start settling non-life claims in the cashless mode.

Contractual Definition:

According to E.W.Patterson, “Insurance is a contract by which one party, for a

consideration called a premium, assures a particular risk of other party ad promises to

pay to him or his nominee a certain or ascertainable sum of money on a specified.

According to the U.S Life Office Management Association Inc (LOMA), Life

Insurance is defined as follows: Life insurance provides a sum of money if the person

who is insured dies whilst the policy is in effect.

V ision: Understanding the needs of customers and offering them superior products and

service

Building long lasting relationships with their partners

Providing an enabling environment to foster growth and learning for their

employees.

Leveraging technology to service customers quickly, efficiently and conveniently

Values: Customer First: Own Customer; deliver the promise

Keep customer interest in the centre of all decisions.

Promise what you can, deliver it to finish.

Proactively seek Voice of Customer and act on it



Sponsors

ICICI Ltd was established in 1955 by the World Bank, the Government of India and the

Indian Industry, to promote industrial development of India by providing project and

corporate finance to Indian industry. Since inception, ICICI has grown from a

development bank to a financial conglomerate and has become one of the largest public

financial institutions in India. ICICI has financed all major sectors of the economy,

covering 6,848 companies and 16,851 projects. In the fiscal year 2000-2001, ICICI had

disbursed a total of Rs 319.65 billion. ICICI has now developed a whole range of

activities to become a Universal Bank. Some of ICICI's spectrum of activities include:

Commercial Banking - ICICI Bank, India's first internet bank.

Information Technology - ICICI InfoTech, transaction processing, software

development

Investment Banking - ICICI Securities, one of the key players in the Indian

Capital Markets

Mutual Fund - Prudential ICICI AMC, leading private sector mutual fund player

in India

Venture Capital - ICICI Venture, leading private equity investor with focus on

IT and HealthCare

Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset

Products



Other terms used in relation to insurance and their meaning:

Agent: The authorized representative of the insurer, licensed by the concerned authorities

like IRDA to canvass insurance.

Bonus: The yearly share of policy holders profit declared by the company based on its

profits which gets added to the policy amount and is payable upon its maturity.

Claim: The amount entitled to the policy holder or his nominee/assignee under a policy

contract in the event of the happening of the contingency insured against.

Insurable Interest: Evidence suggesting financial losses due to the occurrence of the

event insured against.

Policy: The evidence of contract between the insurer and the insured. A stamped sealed

and signed document issued by the insurer to the insured in proof of insuring his life.

Premium: The amount mentioned in the policy contract to be paid by the insurer

periodically to the insure to keep the policy in full force.



Area of Operation

ICICI Prudential has one of the largest distribution networks amongst private life insurers

in India, having commenced operations in 132 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.

The company has 9 bank partnerships for distribution, having agreements with ICICI

Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some

co-operative banks, as well as over 200 corporate agents and brokers, it has also tied up

with NGOs, MFIs and corporates for the distribution of rural policies.

ICICI Prudential has recruited and trained more than 72,000 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.

Achievements

Beginning operations in December 2000, ICICI Prudential’s success has been meteoric,

becoming the number one private life insurer within months of launch. Today, it has one

of the largest distribution networks amongst private life insurers in India, with branches

in 54 cities. The total number of policies issued stands at more than 780,000 with a total

sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total received

premium income of Rs. 9.9 billion; up 135%. New business premium income shows a

106% growth at Rs. 7.5 billion, driven mainly by the company’s range of unique unit-

linked policies and pension plans. The company’s retail market share amongst private

companies stood at 36%, making it clear leader in the segment. To add to its

achievements, in the year 2003/04 it was adjudged Most Trusted Private Life Insurer

(Economic Times ‘Most Trusted Brand Survey’ by ACNeilsen ORG-MARG). It was also



conferred the ‘Outlook Money-Best Life Insurer’ award for the second year running. The

company is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work, not

life’ campaign. Notably, ICICI Prudential was also short-listed to the final round for its

‘Sindoor campaign in EFFIES 2002.

In Keeping with its belief that a happy customer is the best endorsement, ICICI

Prudential has embraced the ‘SIX SIGMA’ approach to quality, an exercise that begins

and ends with the customer from capturing his voice to measuring and responding to his

experiences. This initiative is currently helping the company improve processes,

turnaround times and customer satisfaction levels. Another Novel introduction is the

ICICI Prudential Lifestyle Rewards Club, India’s first rewards programmed for Life

Advisors; it allows ICICI Prudential Advisors to redeem points for items ranging from

kitchenware to gold, white goods, and even international holidays.

Promotion

ICICI Prudential is a case study in how advertising and marketing can play a vital role in

re-shaping an industry. It has demonstrated how an industry where the customer was

nothing more than a policy number has changed to one where ‘customer preference’ rules

the roost.

Brand-building in a complex category like life insurance is an uphill and multi-faceted

task. At the time of launching operations, the communications task was to build

credibility, so as to give the customer the confidence that it was ‘a company that could be

trusted to invest funds with’. The aim was to encourage people to view insurance not as a

compulsory tax saving instrument, but as a means to lead a worry-free, secure life and in

the process, create the differentiator for brand ICICI Prudential.

The brand proposition for all the campaigns was reflected in the line: ‘Suraksha: Zindagi

ke har kadam par’. The campaign featured a significant competitive advantage, the sound

financial backing and credentials of ICICI Prudential, and showcased products from

different segments. The advertising idea was encapsulated in the symbol of protection –

the ‘Sindoor’. This campaign contributed extensively to raising brand awareness and

creating a distinctive identity for the company.



Board of Directors

The ICICI produentional Life Insurance Company Limited Board Comprises

reputed people from the finance industry both from India and abroad.

Mr.Chanda D.Kochhar, Chairperson

Mr. N.S. Kannan, Director

Mr. K.Ramkumar, Director

Mr. Barry Stowe, Director

Mr. Adrisan O’Connor, Director

Mr. Keki Dadiseth, Independent Director

Prof. Marti G. Subranhmanyam, Independent Director

Ms. Rama Bijapurkar, Independent Director

Mr. Vinod Kumar Dhall, Independent Director

Mr. V. Vaidyanathan, Managing Director

and CEO



Management Team

Mr. V. Vaidyanathan, : Managing Director and CEO

Ms. Anita Pai, : Executive Vice president – Customer

service, Techonology and Marketing

Dr. Avijit Chatteriee, : Appointed Actuarcy

Mr. Puneet Nanda, : Executive Vice President

Contribution to Indian Economy

Life Insurance is the only sector which garners long term savings.

Spread of financial services in rural areas and amongst socially less privileged.

Long term funds for infrastructure.

Strong positive correlation between development of capital markets and

insurance/pension structure.

Employment generation.



Stages in Insurance policy

1) Proposal : A Proposal Stage is the First stage before the policy is issued at COPS. At

this stage, the application form is received by COPS, but it is pending for issuance due to

further clarifications required from the customer.

2) Login : A proposal which is complete i.e., duly filled with all necessary documents

attached to it & accepted by the Branch ops, is called a Login

3) Reject: An Application gets rejected at the Branch Ops level due to necessary details

not filled in the form or necessary documents not submitted is a Reject. It is then sent

back to the Advisor for completion.

4) Issuance :Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status : When a customer refuses to take a policy post login but before

Issuance is called a Decline

6) Cancellation : When the cheque given by the customer bounces, it amounts to

cancellation of the policy.

7) Lapse: A policy for which the Customer fails to pay subsequent premiums is a Lapsed

Policy.

8) Freelook : Post issuance of the policy, the policy holder has the option to turn down

the policy within 15 days from the date of issuance. This period of 15 days is called

Freelook Period.

9) Surrender: When a customer wants to discontinue with the policy.



Insurance in Indian Financial System

In India insurance is in practice since 12th century as per the records. The first life

insurance company to operate in India the Oriental Life Insurance company was

established in 1818 in Calcutta. However it was a British company. The first Indian

Insurance company, the Bombay Mutual Life Assurance Society started its operation in

1871. The Indian Life Insurance company Act was passed in 1928.Subsequently, both of

these Acts were merged and the insurance Act 1938 was promulgated.

The story of non-life insurance in India is no different. Though Lloyd’s insurance

pioneered the general Insurance way back in 1688, the first non-life Insurance Company

to set up shop in India was the Triton Insurance company of Calcutta. In 1907 the first

Indian general insurer the Indian Mercantile insurance company started its operations.

The New India Assurance Company Limited was incorporated in 1919. After

independence the India Reinsurance Corporation was set up in 1956 and in 1957 the

office of the controller of the insurance was constituted. In 1968, that tariff advisory

committee was set up to regulate the investment of the players and finally in 1972, the

non-life insurance business in the country was nationalized and the general insurance

company was formed as holding company with four subsidiaries, the National Insurance,

Oriental Insurance, United India Insurance and the new India Assurance Company

Limited. In the same year the National Insurance Company Limited was amalgamated

with 22 foreign and 11 Indian Insurance companies. Thus over a period of two centuries,

the Indian insurance industry has gone through the full circle. From being an open

competitive market, it went through nationalization and has been subsequently liberalized

again. Keeping in mind the national economic and commercial objective of India the

government has set up IRDA on 7th December 1999. Through which the reforms process

of the industry got under way.



Insurance in Indian Financial System – Its ImportanceInsurance industry is one of the corner stone of any economy and financial System.

Insurance industry contributes its major part in increasing the saving and the fund

collected is utilized in developmental program.

The Financial sector in our country is in the process of change with the objective

o the overall growth of the economy. The insurance sector as every one knows,

constitutes a very important and vital financial intermediary for the growth of the

economy.

Insurance has become part and parcel of the financial system because it:

Reduces the uncertainty of business loses.

Increases business efficiency.

Identifies key men.

Enhances the credit.

Takes care of welfare of the society.

Protect the wealth of the nation.

Helps to attain economic growth.

Reduces the inflation level.

It is said “Every rupee invested in insurance contributes thrice the amount in the

economic development.

The Life Insurance:

Life Insurance is one of the most common forms of insurance. It has acquired top

position all over the world.“Life insurance is a contract fare by the insured promised to

pay a uniform rate premium of fixed intervals of time against which the insurer agrees to

pay a fixed amount on the happening of the event which may be the death of the insured

on the expiry of certain number of years”.



Advantages of Life Insurance

Life insurance is brought not because someone is going to die, but because

someone is going to live.

Life insurance means peace of mind.

Life insurance promises payment of the full sum assured from the moment the

first premium is paid.

Life insurance encourages regular savings and guards against extravagances.

In most cases life insurance possesses a cash value after the first three years.

Life insurance removes the worry of looking after your savings. Experts safely

and profitably invest your money on your behalf by experts.

Life insurance guarantees payment in cash and is backed by the Government of

India.

Life insurance is a tax saving product.

Life insurance is free from loss, from theft, fire, misplacement etc.

A life insurance contract is one sided, i.e., always in favour of the insured and his

family. One can withdraw from the contract anytime, but the company’s cannot.

Life insurance replaces uncertainty with certainty. It provide a complete, balanced and

perfect hedge against economic threats, which confront all person, the danger of living

too long or the danger of dying soon.



How Insurance Works

Suppose there are 1000 person all aged 35 years and healthy lives. They are insured for

one year against the risk of death. Each person is insured for Rs. 50,000. if the past

experience indicates the 4 out of 1000 people die during the year, expected amount

claimed to be paid to the family of 4 persons would come to Rs. 2,00,000. the

contribution to be paid by the each of the 1000 will come to Rs.200 per year. Thus, all the

1000 persons share loss caused to the 4 unfortunate families. 996 persons who survived

till 1 year have not lost any thing as they have secured peace of mind and a feeling of

security for their family. While insurance cannot prevent accident or premature death, it

can help, protect the family of the deceased against the loss of income caused by the of

the main breadwinner. In return for specified payments, insurance will provide protection

against the insurance of an uncertain event such as premature death. The business of

insurance company called insurer is to bring together persons who are exposed to similar

risk, collect contribution (premium) from them on sum equitable basis and pay the losses

(claim) to the unfortunate few who suffer.

NEED FOR THE INSURANCE:

Unlike other avenues of savings where the amount saved with interest is payable only on

maturity, insurance plans provide for payment of the total sum assured along with a

bonus, if any, on any eventuality even before the maturity of the policy. And another

advantage of insurance is that an insurer can avail loans against the security of the policy

from the insurance company. Even banks and other financial institutions advances loans

with insurance policies as a collateral security.

To provide for one’s family and perhaps; others in the event of death, especially

premature death. Originally, policies were to provide for short period of time, covering

temporary risky situations, such as sea voyages. As lie insurance became more

established, it was realized what a useful tool it was for a number of situation, including



Regular savings:-

Providing for one’s family and oneself, as a medium o long term exercise (through

a series of regular payment of premiums). This has become more relevant in recent

times as people seek financial independence from their family.

Investment:-

It is the insurance that builds up the savings of the society and thus safeguard the

economy from the ravages of inflation. Unlike regular saving products,

investment products are traditionally lump sum investments, where the individual

makes one time payment.

Retirement:

Provisions for one’s own later years become increasingly necessary, especially in

a changing cultural and social environment. One can buy a suitable insurance

policy, which will provide periodical payments in one’s old age.

Insurance Market in India

The term “insurance market” is used to denote the means available for the placing of

insurance and the various organizations that are willing to accept risks. It comprises of

the demand side i.e., the buyers and the supply side i.e. sellers and the intermediaries.

The rational behind the opening up to the sector was to five individual and corporate

insurance consumers a competitive environment that can deliver products and service in

tune to their requirements. At the same time and open insurance market will enable

capital formation. Reducing the need for India to seek external capital to support its

infrastructure of development program. The industry is believed to benefit from any

increased private participation especially in terms of technology from other global

players as these players enter into joint ventures with India counterparts. The partnership

between Indian and foreign firms will also enable the market to grow beyond the currents

rates and will offer wider choice for the consumer through the introduction of new

products, service and price option. New players are aggressive in their marketing

campaigns and the challenging LIC, virtually in all aspects.



Why should you take insurance

Insurance is desired to safeguard oneself and ones family against possible losses on

account of risk and perils. It provides financial compensation for the losses suffered due

to the happening of unforeseen events. By taking life insurance a person can have peace

of mind and need not worry about the financial consequences in case of any untimely

death.

Along with the growth of overall population in the country, crossing the benchmark of

hundred crore, there gas been a significant awareness for the need for insurance in the

other as well as rural segments and even among the lower middle class and illiterate class

of the population.

We in India have around 30 crore middle class educated and enlightened people who

have not realized that insurance is as necessary as the other basic necessities of life such

as food, shelter, clothing.

There are two kinds of insurance as given below:-

1. Life Insurance:

Human lives are insured under life insurance. A Life Insurance is a combination of

savings as well as security element. The insured is assured that the insurance company

will pay his family the insured amount in the case of premature death. Is he is alive and

the policy matures for payment, the savings so made will be helpful in his old age. Only

the Life Insurance Corporation of India transacts life insurance business in India.

2. General Insurance:

All insurance other than Life Insurance fall under General Insurance. Only the general

insurance corporation of India transacts General Insurance business in India.



The following are different types of general insurance:

Marine Insurance:-

The marine insurance is the oldest form of insurance and covers all the marine perils. Due

to marine perils, the ship can be damaged or destroyed, cargo can be lost and

consequently there can be lost of freight. Therefore, the marine insurance covers the risk

to ship, cargo, and freight on the high seas.

Fire Insurance :

The fire insurance covers the risk of fire to property because there is every likelihood of

fire spreading in big factories, go-downs, ware housing, house shops and ships. The fire

insurance not only covers the risk of fire, but also the consequential losses from such fire.

Insurance products

Education Insurance Plans

Smart Kid New Unit-linked

Regular Premium

Smart Kid New Unit-linked

Single Premium

Smart Kid Regular Premium

Wealth creation plan

Wealth Advantage

Life Stage Assure

Life Time Gold

Life Link Super

Life Stage RP



Premium guarantee plan

Invest Shield Life New

Invest Shield Cash Bank

Protection plan

Pure Protect

Life Guard

Save 'n' Protect

Cash Back

Home Assure

Retirement plan

Life Stage Pension

Life Time Super Pension

Life Link Super Pension

Forever Life Plan

Immediate Annuity

Health coverage plan

Health Saver

Medi Assure

Hospital Care

Crisis Cover

Cancer Care

Diabetes Care Active

Diabetes Assure



ICICI pru group solution plan

Group Super Annuation

Group Gratuity Plan

Annuity Solutions

Group Term Insurance Plan

Group Term Insurance in lieu of EDLI

ICICI Pru Suraksha

ICICI Pru Suraksha Kavach

Micro insurance plan

ICICI Pru Sarv Jana Plan

Organization chart



Different department in ICICI life insurance Ltd


Senior Voice President

Voice President

ZM Manager

Regional Manager

Associate Regional Manager

Area Manager/Sales Manager

Sourcing structure

Business Manager

CEO

Senior Agency Manager

Agency Manager

Senior business

Manager

Unit Manager


Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large

advisor force that targets various customer segments. The strength of tied agency lies in

an aggressive strategy of expanding and procuring quality business. With focus on sales

& people development, tied agency has emerged as a robust, predictable and sustainable

business model.

Banc assurance and Alliances:

ICICI Prudential was a pioneer in offering life insurance solutions through banks and

alliances. Within a short span of two years, and with nearly a large number of partners,

B & A has emerged as a vital component of the company’s sales and distribution

strategy, contributing to approximately one third of company’s total business.

The business philosophy at B&A is to leverage distribution synergies with our partners

and add value to its customers as well as the partners. Flexibility, adaptation and

experimenting with new ideas are the hallmarks of this channel.

Customer Service and Operations:

The operation department ensure consistent and quality service to the customer.This

department provide full information about the insurance product to the customer and this

department act as mediator between the clients and the agent. And smoothly

Manage the work process in company.

The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.

Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query

Resolution Unit are all committed to providing effective solutions to over lakhs of

customers across the country.

Information Technology:



The Information Technology function at ICICI Prudential is committed to enable

business through the use of technology. It is segmented into 4 groups to enable highest

levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in

designing better product offerings to end-users, the Solutions Group- Web that provides

real-time information to customers and is responsible for customer relationship

management, IT Architecture & Corporate Solutions Group is in charge of developing

and maintaining a blueprint for the IT architecture for the enterprise as a whole. This

team works as an in house R&D Solution Group, exploring new technological initiatives

and also caters to information needs of corporate functions in the organization. IT

Infrastructure group is responsible for providing hardware, software, network services to

the whole organization. This group runs the 'Digital Nervous System' of the Enterprise at

the highest levels of efficiency and provide robust, scalable and highly available platform

for deployment of business application.

Marketing

The marketing department play important role in the icici prudential life insurance

company. The company adapt brand and media management, channel support, direct

marketing and corporate communications to reach the customer. Advertising help the

ICICI prudential to identity while effectively communicating its varied product offerings

to the customer and channel marketing provide boost to the sale and help to build a strong

distribution channel The Direct marketing team was set up to generate high quality leads

for profitable business. The team achieves this through target database acquisition and

communicating customized product information through e-mailers, telemarketing and

innovative direct mailers.

Human Resource



The people strategy of ICICI Prudential is “To build a committed team with a culture of

innovation, learning and growth. The Human Resource Function at ICICI Prudential

drives the people strategy of the business. With its initial focus on operational excellence

to deliver benefits and services to staff members, HR is now committed to building

capability through state of the art processes. A robust performance management system,

compensation system and a segmented training architecture enable it to deliver value to

the organization.

Other private sector

S.No.

Registrati onNumber

Date of Reg.

Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 Metlife India Insurance Company Ltd.

11 133 04.09.2007 Future Generali India Life Insurance Company Limited

12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

General Insurers:


http://www.hdfcinsurance.com/

http://www.idbifortis.com/

http://www.fg-life.in/

http://www.fg-life.in/

http://www.metlife.co.in/

http://www.allianzbajaj.co.in/

http://www.ingvysyalife.com/

http://www.sbilife.co.in/

http://www.tata-aig-life.com/

http://www.birlasunlife.com/

http://www.omkotakmahindra.com/

http://www.iciciprulife.com/

http://www.maxnewyorklife.com/


S.No. Registration Number

Date of Registration

Name of the Company

1 102 23.10.2000 Royal Sundaram Alliance Insurance Company Limited

2 103 23.10.2000 Reliance General Insurance Company Limited.

3 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd

4 108 22.01.2001 TATA AIG General Insurance Company Ltd.

5 113 02.05.2001 Bajaj Allianz General Insurance Company Limited

6 115 03.08.2001 ICICI Lombard General Insurance Company Limited.

7 131 03-08-2007 Apollo DKV Insurance Company Limited

8 132 04-09-2007 Future Generali India Insurance Company Limited

9 134 16-11-2007 Universal Sompo General Insurance Company Ltd.


http://www.universalsompo.com/

http://www.universalsompo.com/

http://www.irdaindia.org/www.fg-general.in

http://www.irdaindia.org/www.fg-general.in

http://www.apollodkv.co.in/

http://www.apollodkv.co.in/

http://www.icicilombard.com/



http://www.bajajallianz.co.in/

http://www.bajajallianz.co.in/

http://www.irdaindia.org/www.tata-aiggeneral.com

http://www.irdaindia.org/www.tata-aiggeneral.com

http://www.itgi.co.in/

http://www.itgi.co.in/

http://www.reliancegeneral.co.in/

http://www.reliancegeneral.co.in/

http://www.irdaindia.org/www.royalsundaram.com

http://www.irdaindia.org/www.royalsundaram.com


Yr: 2001-2002 :

Life Insurance:

General Insurance :

S.No. Registration Number

Date of Registration

Name of the Company

1 123 15.07.2002 Cholamandalam General Insurance Company Ltd.

2. 124 27.08.2002 Export Credit Guarantee Corporation Ltd.

3. 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.

Yr: 2003-2004 :

Life Insurers:

S.No. RegistrationNumber

Date of Reg.

Name of the Company

1 127 06.02.2004 Sahara India Insurance Company Ltd.

Yr: 2004-2005 :



Date of Reg.

Name of the Company

1 121 03.01.2002 Reliance Life Insurance Company Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

http://www.saharalife.com/

http://www.saharalife.com/

http://www.hdfcchubbindia.com/

http://www.hdfcchubbindia.com/

http://www.irdaindia.org/http;/www.ecgcindia.com

http://www.irdaindia.org/http;/www.ecgcindia.com

http://www.cholainsurance.com/

http://www.cholainsurance.com/

http://www.avivaindia.com/

http://www.reliancelife.com/


Life Insurance:


Date of Reg.

Name of the Company

1 128 17.11.2005

Shriram Life Insurance Company Ltd .

Yr: 2006-2007 :

Life Insurance:


Date of Reg.

Name of the Company

1 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.

Yr: 2007-2008 :


Date of Reg.

Name of the Company

1 133 04.09.2007

Future Generali India Life Insurance Company Limited

2 135 19.12.2007

IDBI Fortis Life Insurance Company Ltd.


http://www.idbifortis.com/

http://www.irdaindia.org/www.fg-life.in

http://www.irdaindia.org/www.fg-life.in

http://www.bharti-axalife.com/

http://www.bharti-axalife.com/

http://www.shriramlife.com/

http://www.shriramlife.com/


Yr: 2008-2009 :

Life Insurers:

S.No.

RegistrationNumber

Date of Reg.

Name of the Company

1 136 08.05.2008

Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

2 138 27.06.2008

Aegon Religare Life Insurance Company Ltd.

3 140 27.06.2008

DLF Pramerica Life Insurance Company Ltd.

4 142 Star Union Dai-ichi Life Insurance Co. Ltd.,

General Insurance:


Date of Reg. Name of the Company

1 139 27.06.2008 Bharti Axa General Insurance Company Ltd.

Awards and Achievements

Innovation Award for launching Diabetes Care – Prudence Award 2006

People Award for excellence in training and people development Prudence Award 2006


http://www.irdaindia.org/www.bharti-axagi.co.in

http://www.dlfpramericalife.com/

http://www.aegonreligare.com/

http://www.canarahsbclife.com/

http://www.canarahsbclife.com/


India's Most Customer Responsive Insurance Company - Economic Times Customer Responsiveness Awards

Most Trusted Private Life Insurer: The Economic Times – A C Nielsen Survey of Most Trusted Brands – 2004

Prudence Customer Centricity Award - 2004 & 2005: Prudential Corporation Asia

Best Life Insurer 2003: Outlook Money Awards 2003-04

IMM Award for Excellence: Institute of Marketing & Management

Organization with Innovative HR Practices: Indira Group of Institutes



Superbrand 2003-04

Organization with Innovative HR Practices: Asia-Pacific H R Congress Awards for HR Excellence

Silver Effie for Effectiveness of the ‘Retire from Work not life’ advertising campaign: Effies 2003

Most Trusted Private Life Insurer: The Economic Times – A C Nielsen Survey of Most Trusted Brands – 2003

Best New Insurer: Outlook Money Awards 2003



Major Market Players: Presently there are 15 Life insurance companies in the country. There is only one public

sector company LIC and the rest 14 are from private sector. Although LIC has been

dominating the Life Insurance business since past few years the private players have now

started to build up momentum.

HDFC – Standard Life:

HDFC and Standard Life first came together for a possible joint venture, to enter

the Life Insurance market, in January 1995. It was clear from the outset that both

companies shared similar values and beliefs and strong relationship quickly formed.

Products offered by the company:

Endowment Assurance Plan

Money Back Plan

Group Insurance Plan

Life Insurance Corporation of India (LIC):

Life Insurance Corporation of India is a 100% government held Public Sector

Company. Being the first to be established LIC is the forerunner in the Life Insurance

sector. The market share for FY 2005-06 was 71.44%.

Bajaj Allianz Life Insurance Co

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading

conglomerates-Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the

world and Allianz AG, one of the world's largest insurance companies.

The following are the products offered by the company:

Bajaj Allianz Group Gratuity Care

Bajaj Allianz Group Superannuation Care

Bajaj Allianz Group Credit Care Plan

Bajaj Allianz term Plan

Bajaj Allianz Risk Care Plan

Bajaj Allianz Life Time Care

Bajaj Allianz save Care



The TATA AIG Group:

TATA AIG group is a 74:26 JV between Tata Group and AIG. It belongs to the

private sector. The company was registered on 12/2/2001. The market share for FY

2005-06 was 1.29%.

5) Max New York Life Insurance Company Ltd:

Product Offered By the Company Endowment policy

Whole Life policy

Term Insurance

6) MetLife Insurance Company Ltd:

The origin of Metropolitan Life Insurance Company (MetLife) was started in 1863.

But the company decided to focus on life insurance business in 1868. By 1880 the

company was started to 700 new industrial policies a day. From 1909 MetLife

became the nation’s largest life insurance in terms of insurance.

Products offered by the company Term Insurance products

One Year Term Insurance

Scheduled Term Insurance

Permanent insurance products

L-98 whole life

Equity Advantage VUL

SBI Life Insurance Company Ltd:

SBI Life Insurance Company is a 74:26 Joint venture between SBI and Cardiff S.A.

The company was registered on 31/3/2001.It is a private sector company. The market

share for FY 2005-06 was 2.31%.



Sahara India Life Insurance Company Ltd:

First Wholly Indian Owned Private Life Insurance Company. The Company

commenced operations from 30th October 2004. The market share for FY 2005-06

was 0.06 %.

6) MetLife Insurance Company Ltd:The origin of Metropolitan Life Insurance Company (MetLife) was started in 1863.

But the company decided to focus on life insurance business in 1868. By 1880 the

company was started to 700 new industrial policies a day. From 1909 MetLife

became the nation’s largest life insurance in terms of insurance.

Products offered by the company Term Insurance products

One Year Term Insurance

Scheduled Term Insurance

Permanent insurance products

L-98 whole life

Kotak Mahindra Life insurance Company Ltd:

Product offered by the company Endowment assurance plan

Money back policy

Term policy



The Insurance Regulatory and Development Authority (IRDA) :

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing regulations and registering

the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies were the launch of the

IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the

insurance companies would have a trained workforce of insurance agents in place to sell

their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of

globally compatible regulations. In the private sector 12 life insurance and 6 general

insurance companies have been registered.

Mission



” To protect the interest of the policy holder to regulate, promote and ensure orderly

growth of the insurance and for matter connected there with or incidental there to.”

Functioning of the IRDA

To exercise all the powers and functions of controller of insurance.

Protection of the interest of the policy holders.

To issue, renew, modify, withdraw or suspend certificate of registration.

To specify requisite qualification and training for insurance intermediaries and

agents.

To promote and regulate professional organizations connected with insurance.

To conduct inspection/investigation etc.

To prescribe method of insurance accounting.

To regulate investment of funds and margins of solvency.

To adjudicate upon dispute.

To conduct inspection and audit of insurers intermediaries and other organization

concerned with insurance.

Protection of the interest of policy holders:



IRDA has the responsibility of protecting the interest of insurance policyholders.

Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to

provide for: policy proposal documents in easily understandable language; claims

procedure in both life and non-life; setting up of grievance redressal machinery;

speedy settlement of claims; and policyholders' servicing. The Regulation also

provides for payment of interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a

position to meet their obligations towards policyholders with regard to payment of

claims.

It is obligatory on the part of the insurance companies to disclose clearly the

benefits, terms and conditions under the policy. The advertisements issued by the

insurers should not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their

head office and at their other offices.

The Authority takes up with the insurers any complaint received from the

policyholders in connection with services provided by them under the insurance

contract.

INSURANCE AS AN INVESTMENT TOOL WITH REGARDS



TO ULIP

With the development of the insurance market, investors now have more choice. One

option is unit linked insurance policies, which are slightly different from other policies.

Unit linked insurance products act like an insurance cover with the benefits of a mutual

funds. Benefits are expressed in terms of number of units and units price. Customer can

buy as many units through their premium as they wish. As in a mutual fund, the net asset

value is known on a daily basis.

The product have a higher transparency in terms of returns. While the

market link gets a policy-holder a better return ,the insurance aspect attached to each

unit gets the holder a tax exemption on premium paid up to 10,000 under Sec.80d.

Here, the virtues of asset allocation hold good too. If you want less risk,

choose a debt plan. Liquid funds are generally less risky and growth funds, which allot

substantial sums to equities, carry the highest risk reward ration.

Most insurance companies have turned out a good performance since 2002.

While debt funds recorded an average return of 8 percent equity funds earned a

phenomenal 60 percent on returns.

Investors must understand that a unit linked plan work on a minimum

premium basis and not on a sum assured one .like a mutual fund, one can fix an amount

of contribution or a minimum premium .

In short, if you can choose on the market and increase your investment, you can

maximise your return. On an average , the annual growth rate is pegged at 8 percent but

this is not guaranteed .however cumulative bonuses, ranging from 13 to 15 percent

annum, on an average is added to the sum assured for every claim free year.



Many plan allow a reduction in premium if it has been paid regularly for a certain period

or the unit fund achieves a certain valuation. Your premium would depend on the age

and term of the policy An investor has to pay some charges since the fund also involves

management of assets. Apart from the regular charges for cancellation of units, risk cover

and charges relate to policy specifics, these is a cost attached to fund management. Which

is normally in the range of 0.8 percent of the fund value per annum. Also ,under ULIP.

one will have to pay a certain amount for the cancellation of a policy before paying a

regular premium for three years.

However, there is a benefits for holding on for three years one can withdrawals without

any penalty. In the case of a fatality, the insured will receive the sum assured and then the

maturity value.

To put in to simply, ULIP attempt to fulfill investment need of an investors

with protection/insurance need of an insurance seeker. ULIPs work on the premise that

there is class of investors who regularly invest their savings in products like fixed

deposits, coupon-bearing bonds, debt fund, diversified equity fund and stock. There is a

another class of individuals who take insurance to provide for their family in case of

anevetuality. so typically both these categories of of individual have portfolio of

investment as well as life insurance. ULIP as a product combines both these

products( investment and life insurance) into single product. This save the investors/

insurance seeker the hassles of managing and tracking a portfolio of products. According

to the IRDA, a company offering unit linked plan must give an option to choose among

debt, balanced and equity funds.

Five step to selecting the right ULIP



Unit linked insurance plan(ULIP) were seen s wonder product that simultaneously an

individual’s need for investment and insurance. here are 5 step to select the right ULIP.

1) Understand the concept of ULIP:

Try to do as much homework as possible before investing in an ULIP. This way you

will kwon that you are getting into and won’t be faced with unpleasant surprises at later

stage. Gather the information on ULIPs the various options available and understand

their working. Read the literature available on ULIP on the websites and broachers

circulated by insurance companies.

2) Focus on your requirement and risk profile Identify a plan that is best suitable for you(in terms of allocation of money

between equity and debt instrument). Your risk appetite should play an important role

in the plan you choose. So if have a high risk a appetite, go in for a more aggressive

investment option.

3) Compare ULIPs of different insurance companies

Compare products of the leading insurance companies. Enquire about the premium

payments as ULIPs work on minimum premium basis as opposed to sum assured in the

case of conventional insurance policies. Check the fund’s performance over the past six

months. Find out how the debt and equity schemes are performing and how steady the

performance has been. Enquire about the charges you will have to pay. In ULIPs the cost

involved are a big deciding factor.

Ask about the top-up facility offered by ULIPs, additional lump sum investments

you can make to increase the saving portion of your policy. The companies give you the

option to increase the premium amount, there by providing you with the opportunity to

gainfully utilise surplus funds at your disposal.

Enquire about the number of time you can make free switches(change the asset

allocation of money in your ULIP account) from one investment plan to another. Some

insurance companies offer you free switches for a2 year period while other do so only for

1 year.



4) Go for an experienced insurance advisor:

Select an advisor who is not only professional and informed, but also independent and

unbiased. Also enquire whether he has serviced client like you. When your agent

recommends A ULIP of X Company ask him a few product related questions to test him

and also ask him why the other products should not be considered.

Insurance advice at all times must be unbiased and independent and your agent must be

willing to inform you about the pros and cons of buying a particular plan. His job should

not just being by filling the form and end after he deposits the cheque and give you the

receipt. He should keep a track of your plan and inform you on a regular basis. The key is

to go for an advisor who will offer you value added products

5) Dose your ULIP offer a minimum guarantee?

In market linked product if you investment’s downside can be protected, it would be a

huge advantage. Find out if the ULIP you are considering offers a minimum guarantee

and what cost have to be born for the same. This will enable you to make an informed

choice.

BASICS OF UNIT LINKED INSURTANCE PLANS



Basics of unit insurance Plans:

A Policy which provides for life insurance where the policy

value at any time varies according to the value of underlying assets at the time.

Unit Linked Insurance Plans (ULIP) is life insurance solution that provides the client

with the benefits of protection and flexibility in investment.

The investment is denoted as units and is represented by the value that it has attained

called as Net Assets Value (NAV).

Unit UnitsLinked in UnderlyingInsurance Fund Policies

ULIP Came into play in the 1960s and became very popular in Western Europe and

Americans. The reason that is attributed to the wide spread popularity of ULIP is because

of the transparency and the flexibility which it offered to the clients.

In today’s times-ULIP provides solutions for all the needs of a client like insurance

planning, financial needs, financial planning for children’s future and retirement

planning.

An ULIP structures looks like as follows

Less charge

Investment Life coversRepresented as units

FEATURES OF UNIT LINKED PLAN


Contribution

Less Charges


ULIP distinguishes itself through the multiple benefits that it provides to the consumer.

The plan is a one stop solution providing.

1. Investment and savings

2. Life Protection

3. Flexibility

a. Adjustable Life cover

b. Investment Options

4. Transparency

5. Options to take additional cover against

a. Death due to accident

b. Disability

c. Critical illness

d. Surgeries

6. Liquidity

7. Tax planning

Now let us see each of the above in detail.

1. Investment and savings:

ULIP provides the client with the option of investing as per personal risk profile and get

return accordingly. There are options of funds where in the client can put money in

1. Equity Markets

2. Debt Markets

3. balanced funds with a mix of the above two

4. Short-term debt market.

This also help the client in savings in accordance to the age as a younger person can

afford to take some risk however a senior citizen might not be in a position to make

investment in comparatively high risk instruments.



With the option of four funds to invest in the client always has the option to change shift

as the risk and return orientation changes.

Subsequent contributions and contribution can also be allocates in different funds.

Net Asset Value

The investment is denoted as NAV-Net Asset Value.

Net Asset Value is defined as the total value of the assets in the underlying fund minus

the expenses paid or to be paid divided by the number of units issued. The issue value of

a unit is usually 10/-.

The Net Asset Value of a fund is the indicator of the value of the fund.

In traditional Plans the policyholder is not aware of the value the policy is accruing.

In a Unit Linked plan—the investment, which is denoted through a NAV, is the real time

indicator of the value of the fund. Therefore a policyholder can easily find out that what

is the value that the policy has accrued as of now.

The NAV is listed on a daily basis in all the national newspapers.

Example

If 2, 00,000 - have been accumulated in the equity fund. And the number of units issued

is 10,000/- then NAV of the equity fund is

2, 00,000/10,000=20/-

As the equity markets develop the fund grows from 2,00,000 to 2,20,000

Now the NAV is 2, 20,000/10,000=22/-.

fund.

2. Life Protection:

The life insurance needs keep changing through the life stage of an individual.

When we start working



When we start a family

When our children start a career

When we retire

This When mapped to life insurance needs gives us a graph:`Therefore as our responsibilities grow the need for life protection grows and when these

responsibilities are successfully executed the needs reduces.

ULIP allows a client to change the varying life protection needs that makes it.

Easier for the client to manage

Hassle free

Economically effective

The death benefit is usually a multiple of the contribution being paid which ensures that

the contribution is adequate enough to provide life protection and savings.

In a ULIP the client usually pays yearly mortality charges, which makes it more cost

effective for the clients.

The charges deducted each year as per the age client therefore at the age of 30, mortality

for the age of 30 is charged and at the age of 31 mortality for age of 31 is charged.

3. Transparency:

ULIP are completely transparent and the client knows as how every paisa being charges

is allocated.



There are various kinds of expenses that are involved in any insurance plan. These

expenses may be related to the sales and distribution cost, or the operational costs, the

coasts related to the life insurance cover or the costs related to the management of

expenses. Since all unit-linked plans have a transparent structure, they have to exhibit all

the charges. It may be worthwhile to know about the various kind of expenses related to a

unit-linked plan.

The various kinds of expenses are detailed below

Contribution Related Charges

These are charges that are represented as a percentage of the regular or single

contribution paid. In case of regular contribution plan, it is usually high in the first year to

pay for the distribution cost. This charge pays for the issuance and for distribution

commissions.

This is a charge to cover the running expenses of the policy. For single contribution plans

this is levied once at the start of the policy. For regular contribution plans this will be

charged on a regular uniform basis depending upon the frequency of payments.

Normally these charges are shown as percentage of the contribution. Allocation is

another terminolology used by the company in actually representing costs.

Allocations mathematically reverse of the charges. Thus mathematically;

Allocation=1-Charges. Thus for example if a product has a 70% allocations in the first

year, it means 1-.07=0.3% or 30% charge.

Administrative Charges:

These are charge that are levied for the administration of the policy and the related costs

of administration of the insurance company itself. These costs are different from the



issuance and the distribution related costs of the product. They are more related to their

costs like the IT, operational, etc cost of continuing the policy. There are few prominent

ways in which these costs are levied.

a) They can be levied as the percentage of the value of the investments (funds) in the

account of the policyholder. So for example, as Bajaj Allianz levy a charge of

1.25% of the fund for the administration of the policy, every year. These kinds of

charges get adjusted in the Unit Value (NAV), as the NAV is declared after

adjusting these costs.

b) They can be levied as flat charge with an option of increasing it by a certain

percentage over years. For example Birla levies a flat charge of Rs 28 per month

on its policy. HDFC SL unit linked plan levies Rs 180 annually as the

administration charges.

Fund management fee:

All unit linked plans have underlying funds, which the policyholders choose for their

investments. These funds constitute of various financial instruments such as equity,

bonds, and money market instruments.

These charges are expressed as a percentage of the Asset Under Management of the

insurance company. So for example, Birla in its creator fund charges 1.25% annually of

the AUM, HDFC charges 0.09% for its equity fund. Interesting thing to know here is the

factor on which the charges depend the main factor being the fund composition.

For example, the cost of managing a bond is lesser than the cost of managing equity.

Thus normally, the fund option, which has a higher percentage of equity, would have

higher charges comparatively to other funds.

Mortality charges:

This covers the cost of providing life protection for the insured and may be once at the

start of the policy or a recurrent manner (for example). This charges is levied to provide

the insurance cover under the plan.



Normally these charges are 1-year charges and keep changing as per the age of the

policyholder.

These are the normally expressed as per thousand of the sum assured and depend on the

age of the policy holder. For example one would have the mortality charges as Rs 1.50

per thousand for 30 years old and Rs 1.55 for the age of 35 years. This means that cost of

insurance of Rs 1000 at the age of 30 is 1.50, where the same insurance cover cost Rs

1.55 at the age of 35 year

Rider charges: Rider charges are similar in nature to the mortality charges as they are levied to pay for

the other protection benefits that the policy holder has choose for critical illness benefits

or accident benefits.

Surrender charges: When policy holder decides to surrender the policy or partially withdrawals some of the

units for cash a surrender charges may be apply. Usually surrender charges apply only in

the first few years after the units are invested and are usually on a decreasing scale.

Surrender by charges are used to cover the initial expenses that have been incurred by the

company but not yet recovered by the policy holder

These charges can either be expressed as a percentage of the value of the investment or

as fixed flat charges, on the structure of the product.

Transaction Specific charges:

These charges are levied when the client dose some specific transaction like changing

funds, topping up the investment component or withdrawals.



4) Extra protection: Riders provide more protection to the policyholder and ULIP allows addition of

rider, at nominal cost.

The common riders that are attachable are

1. Death due to accident

2. Disability

3. Critical illness

4. Surgeries

5) Liquidity: This facility makes the ULIP a very practical insurance in current time, most life

insurance plan do not provide the policy holder the facility of withdrawals money in case

the need arises.

Unit linked plan provide you easy access to your money as and when you may require.

One can redeem the units after a particular period of time as defined by the plan, as per

the need .ULIP allow either partial or complete withdrawal, without penalizing the

policyholder.

6) Tax Planning:

Insurance is a very important of financial planning. It not only provides you and your

family with a comforting sense of security but some plans like the term assurance plan

can be easy on your pocket too

Working of a Unit Linked Plan

A client puts in a regular contribution of Rs 20,000/-. From this amount a percentage

is deducted as a contribution.



Therefore if the contribution related expenses is 20% - Rs 4,000 will be deducted as a

contribution related charges.

The amount that is now available is Rs 20,000– 4,000= 16,000/-

Now, if the client who is aged 30 years were to a life cover of 5,00,000/-, then

mortality 91.50/- per thousand at the age of 30 charges of Rs 750/- will be deducted.

This amount will provide life cover to the policy holder. The remaing amount of Rs

15250/- will be invested in any of the underlying funds i,e debt, equity or mix of both

the two. The client can invest in any one of them or all of them.

The investment as showed in terms of units. Thus if the client invested in debt fund

and NAV of the debt fund is 16/- (Market Price) then the number units that the client

is 15250 / 16 = 953.125 for this investment – fund management fee will be charged

and for maintaining the policy and administrative charge is levied.

Flow Chart of a Unit linked plan



Less 20%

20,000-4000=16000

16,000-750=15,250

for the age 30- mortality at 1.50

per thousand

15,250/- invested in debt fund

at a NAV of 16/-

953.1250units allocated

NAV of debt fund 16/- per unit

First and foremost, investors need to understand that a ULIP is a bundled product of their

investment of their investment and their insurance proceeds. So if you have a ULIP

invested in equities, you are exposing your life insurances monies as well as your


ContributionContribution related

charges deducted

Mortality & Rider Charges deucted

The client invests resultant in funds as

chosen

Units allocated

Represented as NAV

Life Protection500,000

Investment in Funds

Debt / Equity or balanced


investable surplus to the vagaries of equity markets. While it is fine and even sensible to

let your invest able assets get an equity flavors, the same cannot be said about your life

insurance monies, which to a large extent should be sacred. The volatility in equity

markets a can disturb the calmest of minds and the last thing you want to see is your nest

egg being eroded by the latest slide in equity markets. Abhishek Bhatia elaborates, ‘A

ULIP policyholder has the option to invest in a variety of funds, depending on his risk

profile. If one does not have the appetite to invest in equity, they can choose a debt or

balanced fund.’

However, the structure of a ULIP takes care of quite a bit of the uncertainty in the

markets. Insurance companies understand the need to give insurance – seekers the

flexibility to rethink their investment strategy in view of the market histrionics. There is

an option for the insurance – seeker to switch to another plan with a lower or zero equity

component to stem the loss in a falling equity market. The switch option allows

customers to switch between fund options, thereby making adjustments to any perceived

risks. ‘ICICI Pru allows policyholders to make this switch four times a year at no cost,

with Rs 100 at every additional switch after that. However, for investors to make the right

switch they need to track markets actively and well – informed, which is actually the job

of the investment advisor/consultant. SO IF INSURANCE –SEEKERS / INVESTORS

PLAY THEIR CARDS RIGHT, THEY CAN MAKE THIS MARRIAGE WORK.

Funds available in ICICI prudential



Plan Plan objective Risk Investment pattern

Maximiser

(Growth)

High growth and capital

appreciation over a long

terms

High Equity and equity related

securities: Max 90%, Debt,

money market and cash :

Min 10%

Balancer

(balanced)

Balance of capital

appreciation and study

returns over a long terms

Average Equity and equity related

securities: Max 40%, Debt,

money market and cash :

Min 60%

Preserver Equal balance of capital

appreciation and study

returns over a long term

Low Debt instrument: Max 50%

Money market and cash

Min 50%

Protector

(Income)

Study returns over a long

term.

Moderate Debt instrument: Max

100%

Money market and cash

Max 25%

The various products under ULIPS that ICICI Pru offers

RETIREMENT SOLUTIONS



Life expectancy has been rising rapidly and today, you can now expect to live much

longer than your earlier generations. For you, this increase will mean a longer

retirement life, stretching into couple of decades. So it is more critical than ever to

plan adequately and wisely for those incremental retirement years, keeping in mind

that your expenses will spiral upward, your cost of living will increase and inflation

will be ever present. Therefore, you need a plan that ensures safety, risk cover income

security and regular return for your post retirement year.

ICICI prudential life insurance Retirement solution that combine the best of

investment and insurance. The solution are developed to ensure your peace of mind

for the year to come. Solutions that give you power to maintain your lifestyle need, for

longer as you live.

Power you receive with retirement Solution

Power to choose retirement date

Power to increase your investments

Power to choose the protection level

Power to invest in a plan, based on your priority

Power to receive your pension

Life time pension: A regular premium

Life time pension is the new age retirement solution. It is a solution that provides the

policyholder with power to adapt as a life stage chance. It powers the policyholder to



plan for retirement, investment and protection. The flexibility to plan for your

retirement the way you want to is the crux of this plan.

The plan is a combination of Forever and life time. During the deferment period the

plan operate like Life time; enable the policyholder to create the best investment as

per personal risk and return profile. When policyholder desires to vest the plan, Life

time pension operate just like Forever Life.

Tax Benefits Tax Benefits u/s 80CCC(1) up to Rs 10,000/- deducted from your taxable and heath

rider have tax benefits under sec 80D.

Annuity once give is guaranteed and is taxable as per the current income tax

rules.

Communication and death claim where in the sum assured or purchase price is

paid, the amount is tax free.

Life Link Pension II A single premium plan This is the single premium market linked retirement solution. The plan combines the

facility of Life link and Forever life. This is oriented towards senior people who have

not planned for their retirement and would like to do so through a single premium. It is

also targeted towards people that have received a lump sum payment or have a lump

sum to invest, and would like to plan for their retirement with that money.

LIFE TIME PENSION II gives you the freedom to choose the amount of premium, and

invest in market – linked funds, to generate potentially higher returns. On the future

retirement date, the accumulated value of the units will be used to purchase an annuity –

to provide you with regular income for life.



POWER TO CHOOSE THE PROTECTION LEVELChoose from either a Zero sum assured or a sum assured, which will be equal to the

product of your annual contribution and term.

POWER TO CHOOSE THE RETIREMENT DATETake advantage of market movements by choosing a vesting age between 45 – 75 years

of age.

POWER TO INCREASE YOUR INVESTMENTSUse your surplus funds to – up your investments during the deferment period.

POWER TO INVEST IN A PLAN BASED ON YOUR PRIORITIESChoose from among four funds, based on your investment objectives and risk appetite. If

at a later stage your financial priorities change, you can switch between the various fund

options, absolutely free, 4 times a year.

POWER TO INCREASE / DECREASE YOUR CONTRIBUTIONBased on your requirements, increase or decrease your contribution.

TAX BENEFITTax benefit u/s 80CCC(1)...up to Rs 10,000/- deducted from your taxable income and

health riders have tax benefit under sec 80 D.

Annuity once given is guaranteed and annuity taxable as per current

income tax rules.

Commutation and death claim wherein the sum assured or purchase price

is paid, the amount is tax – free.

ICICI LIFE LINK PENSION II

Life Link pension II gives you the freedom to choose the amount of premium, and invest

in market – linked funds, to generate potentially higher returns. On a future retirement



date, the accumulated value of the units will be used to purchase an annuity that will

provide you with regular income for life.

POWER TO CHOOSE THE RETIREMENT DATE

Choose a vesting age between 45 – 75 years of age.

POWER TO INCREASE YOUR INVESTMENTS

Use your surplus funds to top – up your investments during the deferment period.

POWER TO INVEST IN A PLAN BASED ON YOUR PRIORITES

Choose from among four funds, based on your investment objective and risk appetite. If

at a later stage your financial priorities change, you can switch between the various fund

options, absolutely free, 4 times a year.

TAX BENEFIT

Tax benefit u/s 80CCC (1)..... up to Rs 10,000/- deducted from your taxable income and

health riders have tax benefit under sec 80 D.

Annuity once given is guaranteed and annuity is taxable as per the current

income tax rules.

Commutation and death claim wherein the sum assured or purchase price

is paid, the amount is tax – free.

CHILD PLANSAs a responsible parent, you will always strive to ensure a hassle – free, successful life

for your child. However, life is full of uncertainties and even the best – laid plans can go

wrong. Here’s how you can give your child a 1000% safe and assured tomorrow,

whatever the uncertainties. Smart Kid is especially designed to provide flexibility and

safeguard your child’s future education and lifestyle, taking all possibilities into accounts.

Choose from amongst a basket Of 3 Plans:

1) SMARTKID unit – linked regular premium

2) SMARTKID unit – linked regular premium II



3) SMARTKID unit – linked single premium II

All these plans offer you:

FINANCIAL BENEFITSRegular payments at critical stages in your child’s life, like Board Examinations,

graduation and post – graduation.

TOTAL PEACE OF MIND, EVEN IF YOU ARE NOT AROUND

SUM ASSURED IS PAID IMMEDIATELY

Ensures that your loved ones stay financially secure, even in your absence.

ALL FUTURE PREMIUMS ARE WAIVED

Ensuring that your family is not financially burdened in your absence.

POLICY BENEFITS CONTINUE

The educational benefits of policy continue, ensuring that your child can realize his or her

dreams without any hassles.

DEVELOPMENT ALLOWANCE

Smartkid quarantines regular income to secure your child’s education career and also

ensure his or her all – round development, for a nominal additional amount. The income

rider takes care of this through an annual payment of 10% of sum assured, to your child,

till the maturity of the policy, in the unfortunate event of the death of the parent.

SAVING’S PLAN

LIFE TIME & LIFE TIME II



Presenting Life Time & Life Time II – unit – linked plans that meet your changing needs

over a lifetime. These solutions have been developed to meet your savings, protection

and investment needs at every stage in life.

PROTECTION

* Choose specified level of protection (available only with Life Time).

* Two levels of Sum Assured to choose from (available only with Life Time II).

* Flexibility to increase or decrease your sum assured.

* Add – on riders to protect you against any eventuality.

SAVINGS

Flexibility to increase or decrease your contribution.

Facility of Premium Holiday, wherein the policy continues even if there is

temporary breaks in the payment of annual contribution (available only with Life

Time).

Facility of Automatic cover Continuance, wherein the policy continues even if there

is a temporary break in the payment of annual contribution (available only with Life

Time II).

Facility to top – up your investment any time you have surplus funds.

Additional allocation of units on a periodic basis.

Objectives:1) To know the factor that influence the investor while selecting the a ULIP.

2) To study customer awareness and preference towards the ULIP.



3) To study the performance of the ULIP.

4) To know the reason for dissatisfaction among the investor.

5) To know the investment pattern of the people in terms of savings.

Research Design

Exploratory design:

In this project we are using explorative research design which help to gain the back

ground information about the ICICI prudential life insurance

Source of Data : Primary Data

Secondary Data

Primary Data Observation

Survey

Telephonic survey

Secondary Data

Internet

Business magazines

Research Methodology

We are using survey method to collect primary data. The followings are the details of our

survey.

Sample: 100 people as a respondents for survey who may represent the population of

Hubli city.

Sample Unit: Hubli

Sampling frame: customer data base

Sampling extent: Hubli city



Sampling procedure: Descriptive sampling

Management problem

“Difficult to convince the customer”

Research problemInsurance as an investment tool with regards to ULIP



DATA ANALYSIS

Which of these are important while choosing the life insurance?

Frequency Percent Valid Percent

Cumulative Percent

Valid Investment 21 21.0 21.0 21.0



Security 19 19.0 19.0 40.0

Saving 8 8.0 8.0 48.0

Tax benefits 16 16.0 16.0 64.0

Return 22 22.0 22.0 86.0

Financial future need

14 14.0 14.0 100.0

Total 100 100.0 100.0

Analysis: Out of 100 respondent 21% of respondent said that Investment is the important while

choosing the insurance and 19% of respondent said that security is important and 8% of

respondent said saving is important while choosing the life insurance.16% of respondent said Tax

benefits is importent,22% and 14% of respondent are said that return and financial future need is

important while choosing the life insurance.

Rank the following based on your priority?

Return




Cumulative Percent

Valid 2 2.0 2.0 2.0

Return 1 1 1.0 1.0 3.0

Return2 5 5.0 5.0 8.0

Return 3 12 12.0 12.0 20.0

Return 4 35 35.0 35.0 55.0

Return 5 45 45.0 45.0 100.0

Total 100 100.0 100.0

Analysis: out of 100 respondent 45% of respondent are give more priority to the returns

Security




Cumulative Percent

Valid 2 2.0 2.0 2.0

Security 1 12 12.0 12.0 14.0

Security 2 22 22.0 22.0 36.0

Security 3 19 19.0 19.0 55.0

Security 4 19 19.0 19.0 74.0

Security 5 26 26.0 26.0 100.0

Total 100 100.0 100.0

Analysis: Out of 100 respondent 26% of respondents are give more priority to the Security.

Service





Cumulative Percent

Valid 2 2.0 2.0 2.0

Service 1 31 31.0 31.0 33.0

service 2 33 33.0 33.0 66.0

service 3 25 25.0 25.0 91.0

service 4 8 8.0 8.0 99.0

service 5 1 1.0 1.0 100.0

Total 100 100.0 100.0


Analysis: Out of 100 respondents 33% of respondent are give Less priority to the service.

Premium


Frequency

Percent Valid Percent

Cumulative

Percent Valid 2 2.0 2.0 2.0

premium 1

57 57.0 57.0 59.0

premium 2

29 29.0 29.0 88.0

premium 3

10 10.0 10.0 98.0

premium 4

2 2.0 2.0 100.0

Total 100 100.0 100.0


Analysis: Out of 100 respondent 57% of respondent are give less priority to the premium amount.

Tax benefits


Cumulative Percent

Valid 2 2.0 2.0 2.0Tax

benefits 11 1.0 1.0 3.0

Tax benefits 2

11 11.0 11.0 14.0

Tax benefits 3

31 31.0 31.0 45.0

Tax benefits 4

28 28.0 28.0 73.0

Tax benefits 5

27 27.0 27.0 100.0

Total 100 100.0 100.0



Analysis: Out of 100 respondent 31% of respondent are give more priority to the tax benefits.

What Factor influence you to invest in the insurance plan?

Frequency Percent Valid Percent Cumulative Percent

Valid Savings 49 49.0 49.0 49.0

financial need 23 23.0 23.0 72.0

Tax benefits 27 27.0 27.0 99.0

Others 1 1.0 1.0 100.0

Total 100 100.0 100.0



Analysis: In 100 respondent 49% of respondent are said that savings influence for invest in the

insurance, and 23% of respondent are said future financial need influence for invest in the

insurance. Out of 100 respondent 27% of respondent said that Tax benefits influence them for

investing in the insurance and 1% of respondent said other factor influence them invest in the

insurance.

Are you aware ULIP in ICICI prudential life insurance?


Cumulative Percent

Valid Yes 80 80.0 80.0 80.0

No 20 20.0 20.0 100.0

Total 100 100.0 100.0



Analysis: Out of 100 respondent 80% of respondent are aware of ULIP in ICICI prudential, and

20% of respondent are unaware of ULIP in ICICI prudential.

Why prefer ULIP in ICICI prudential?


Cumulative Percent

Valid Returns 31 38.8 38.8 38.8

Safety 17 21.3 21.3 60.0

Risk Cover 19 23.8 23.8 83.8

Tax benefits 13 16.3 16.3 100.0



Total 80 100.0 100.0

Analysis: Out of 80 respondent 39% of respondent said that they prefer ULIP for Return,21% of

respondent prefer for Safety purpose. 24% and 16% of respondent said that they prefer ULIP for

Risk cover and Tax benefits.

How did you come to know about the ULIP in ICICI prudential?


Cumulative Percent

Valid Friends 18 22.5 22.5 22.5

Advertisement 23 28.8 28.8 51.3

Advisor 14 17.5 17.5 68.8

News paper 15 18.8 18.8 87.5

Others 10 12.5 12.5 100.0



Total 80 100.0 100.0

Analysis: In 80 respondent 23% are know about the ULIP in ICICI through friends, 29% and 19%

of respondent are know about ULIP through Advertisement and News paper and 12% of

respondent are said that they know about the ULIP through other sources ,17% of respondent are

know through advisors.

Are you satisfied with the performance of the ULIP in ICICI prudential?



Analysis: Out of 80 respondent 41% of respondent are said that the are Highly satisfied with the

performance of the ULIP in the ICICI.48% are responded that they are satisfied with the ULIP in

ICICI 9% are said moderate and 1% of respondent said dissatisfied with the ULIP performance

and another 1% of respondent said highly dissatisfied with the ULIP in ICICI prudential.

In which insurance plan would like to invest in ICICI prudential?



Cumulative Percent

Valid Highly satisfied 33 41.3 41.3 41.3

Satisfied 38 47.5 47.5 88.8

Moderate 7 8.8 8.8 97.5

Dissatisfied 1 1.3 1.3 98.8

Highly Dissatisfied

1 1.3 1.3 100.0

Total 80 100.0 100.0



Cumulative Percent

Valid Smart kid 34 42.5 42.5 42.5

Life time gold

16 20.0 20.0 62.5

Retirement Solution

30 37.5 37.5 100.0

Total 80 100.0 100.0

Analysis: In 80 respondent 42% of respondent are interested to invest in Smart kid for their

children’s and 20% are interested in life time gold for higher return, 38% of respondent are

interested to invest in retirement solution for future purpose.

Are you satisfied with the advisor service in ICICI prudential?




Cumulative Percent

Valid Excellent 14 17.5 17.5 17.5

Good 18 22.5 22.5 40.0

Average 32 40.0 40.0 80.0

Bad 13 16.3 16.3 96.3

vast 3 3.8 3.8 100.0

Total 80 100.0 100.0

Analysis: In 80 respondent 18% of respondent are said that advisor service is excellent,23% are

said good and 40% of respondent said advisor service is average. 16% and 3% of respondent

are said bad and vast.

Satisfaction level towards ULIP in ICICI prudential?



Frequency


Cumulative Percent

Valid Highly satisfied 19 23.8 23.8 23.8

Satisfied 38 47.5 47.5 71.3

Nether satisfied or Dissatisfied

18 22.5 22.5 93.8


Highly Dissatisfied 1 1.3 1.3 100.0

Total 80 100.0 100.0

Analysis: Out of 80 respondent 24% of respondent are highly satisfied with the ULIP in ICICI,

47% of respondent are satisfied with the ULIP in ICICI.23% of respondent are nether satisfied or

dissatisfied with the ULIP, 5% are highly dissatisfied with the ULIP in the ICICI and 1% of

respondent said highly dissatisfied with the ULIP in ICICI prudential.

Are you satisfied with the service provided by the ICICI prudential?




Cumulative Percent

Valid Highly satisfied

16 20.0 20.0 20.0

Satisfied 9 11.3 11.3 31.3

Moderate 26 32.5 32.5 63.8


Highly Dissatisfied

8 10.0 10.0 100.0

Total 80 100.0 100.0

Analysis: Out of 80 respondent 20% of respondent are said that they are highly satisfied with the

service provided by the ICICI prudential,11% of respondent are satisfied with the service of ICICI

and 33% of respondent are moderate with the service of the ICICI. 26% and 10% of respondent

are said they are dissatisfied and highly dissatisfied with the ICICI prudential service.

In future would like invest in?




Cumulative Percent

Valid Insurance 45 45.0 45.0 45.0

Mutual fund 6 6.0 6.0 51.0

Equity 6 6.0 6.0 57.0

Share market

9 9.0 9.0 66.0

Investing in gold

3 3.0 3.0 69.0

Bank deposits

31 31.0 31.0 100.0

Total 100 100.0 100.0

Analysis: In 100 respondent 45% of respondent are said they invest money in future in

insurance and 6% of respondent are interested invest in mutual fund, and another 6% of

respondent are interested to invest in equity, 9%,3%,31% of respondent are interested to invest

in share market, investing in gold and bank deposits.



What kind of investment you prefer?


Cumulative Percent

Valid High risk, High return 20 20.0 20.0 20.0

Medium risk, Medium return 46 46.0 46.0 66.0

Low risk, low return 34 34.0 34.0 100.0

Total100 100.0 100.0

Analysis: Out of 100 respondent 20% of respondent are prefer high risk, high return .And 46% of

respondent are prefer medium risk .medium return and 34% of respondent are prefer low risk and

low return.

.



How much of money invested in above mentioned investment?


Cumulative Percent

Valid Less than 10,000 27 27.0 27.0 27.0

10,000-50,00045 45.0 45.0 72.0

50,000-1,00,00010 10.0 10.0 82.0

More than 1,00,000 18 18.0 18.0 100.0

Total100 100.0 100.0

Analysis: Out of 100 respondent 27% of respondent said less than 10000 amount of money

invested in above mentioned invesment.45% are 10000 to 50000 and 10% of respondent are

said they invest 50000 to 100000 in above mentioned investments. 18% of respondent are

invested more than 100000 in above mentioned investments.



If you save 10000 per month how you divide your savings? Investment in mutual fund

Frequency


Cumulative Percent

Valid mutual fund 10% 42 42.0 50.6 50.6

mutual fund 20% 29 29.0 34.9 85.5

mutual fund30% 5 5.0 6.0 91.6

mutual fund 40% 3 3.0 3.6 95.2

mutual fund50% 3 3.0 3.6 98.8

mutual fund 60% 1 1.0 1.2 100.0

Total 83 83.0 100.0Missing System 17 17.0

Total 100 100.0

Analysis: Out of 100 respondent 42% of respondent are 10% of the savings will be

invested in mutual fund, and 29% of respondent are 20% of the saving swill be invested

in mutual fund, 5% of respondent are said they invest 30% in mutual fund. 3 and 3% of

respondent are interested to invest in mutual fund that is 40% and 50% and 1% of

respondent are interested 60% in mutual fund.

Investment in Equity



Frequency


Cumulative Percent

Valid 19 19.0 19.0 19.0

Equity 10% 44 44.0 44.0 63.0

Equity20% 29 29.0 29.0 92.0

Equity 30% 3 3.0 3.0 95.0

Equity 40% 5 5.0 5.0 100.0

Total 100 100.0 100.0

Analysis: Out of 100 respondent 44% of respondent are interested to invest there savings

of 10% in equity and 29 of respondent are interested 20% in equity, 3% of respondent are

interested in equity, only 5% of respondent are interested 40% in equity.

Investment in fixed deposits



Frequency


Cumulative

Percent Valid 17 17.0 17.0 17.0

F D 10% 2 2.0 2.0 19.0

F D 20% 10 10.0 10.0 29.0

F D 30% 7 7.0 7.0 36.0

F D 40% 14 14.0 14.0 50.0

F D 50% 15 15.0 15.0 65.0

F D 60% 19 19.0 19.0 84.0

FD 70% 16 16.0 16.0 100.0

Total 100 100.0 100.0

Analysis: out of 100 respondent 2% of respondent are interested invest 10% in fixed

deposits, and 10% of respondent are interested invest 20% in fixed deposits, 7% of

respondent are interested invest in 30% in fixed deposits, 14% , 15%, 19%, 16% of

respondent are interested in invest that is 40%, 50%,60% ,70%.

Investment in Share market

Frequency Percent Valid Cumulative



Percent Percent Valid 17 17.0 17.0 17.0

share market 10%

38 38.0 38.0 55.0

share market 20%

26 26.0 26.0 81.0

share market 30%

10 10.0 10.0 91.0

share market 40%

3 3.0 3.0 94.0

share market 50%

2 2.0 2.0 96.0

share market 60%

4 4.0 4.0 100.0

Total 100 100.0 100.0

Analysis: Out of 100 respondent 38% of respondent are interested 10% of there savings

in share market, and 26% of respondent are interested 20% in share market, 10% of

respondent are interested in share market that is 30%.And 3%, 2%, 4% of respondent are

interested to invest 40%. 50% , and 60% of there savings in share market.

Findings



1) 80% of respondent are aware about the ULIP and 20% of respondent are unaware

about the ULIP in ICICI prudential.

2) 41% of the respondent are highly satisfied with the performance of the ULIP,

47% of the respondent are satisfied with performance, 8% of respondent are

moderate with the performance 1%of respondent are dissatisfied, and another 1%

of respondent are highly dissatisfied with the performance of ULIP

3) 17% respondent are said advisor service is Excellence, and 22%of respondent are

said good, 40% of respondent are said average , 16% and 3% of respondent are

said bad and vast.

4) 23% respondent are highly satisfied with the ULIP, and 47% of respondent are

Satisfied with the ULIP, 22% respondent are moderate with the ULIP, 5% and

1% of respondent are dissatisfied and highly dissatisfied with ULIP.

5) 20% of respondent are highly satisfied with the service provided by the ICICI

Prudential,11% of respondent are satisfied with the service of the ICICI

prudential, 32 % of respondent are moderate with the service and 26% and 10%of

respondent are highly dissatisfied and highly dissatisfied with the service of the

ICICI prudential.

6) Out of 80 respondent 43% of respondent are interested to invest in the smart kid,

and 20% of respondent are interested in life time gold remaining 38% of

respondent are interested in retirement plans in ICICI prudential. 7) 49% of respondent are prefer ICICI for savings and 23% of respondent are prefer

for future financial need, 27% of respondent are prefer for tax benefits and 1% are

prefer for other purpose

Suggestions



The management should introduce more plans of Retirement policy because many

of them are salaried & Business Men to cover the un tapped market.

Management has large scope for Child plans. As we have seen earlier in the

purpose of savings table that most of the people invest their savings in Education

& Most of the business men invest in insurance for the tax purpose also. So the

management concentrate on these plans for attract the customer.

Management should use Newspaper as one of source of creating aware &

motivate it’s advisor to create awareness

Respondent are dissatisfied with the service of the advisor in the ICICI prudential,

so Company take step to improve the service of the advisor and the company

should concentrate more on the communication of the advisor.

Management has to conduct Awareness program to create awareness among

another 20% available customers can be tapped by expanding its Business.

BIPLIOGRAPHY



1) Brochures

2) Intranet

4) Internet

WWW .iciciprulife.com

WWW .google.com


http://WWW.google.com/

http://WWW.iciciprulife.com/


ANNEXURE



Questionnaire

1) Name: _________________________________________________

2) Age :

3) Gender: Male Female

4) Occupation: Business man Professional

Student Others__________________

5) Annual Income: Below & 1,00,000 1,00,000 – 2,00,000

3,00,000 – 4,00,000 5,00,000 & Above

6) Address:_______________________________________________________

_______________________________________________________

_______________________________________________________

7) Contact number: _______________________________



8) Which of these are important while choosing the life insurance?

Investment Security Savings

Tax Benefits Returns Financial future need

9) Rank the following based on your priority?

(1 is less priority) ( 5 is more priority)

Returns

Security

Service

Premium

10) What factor influences you to invest in the insurance plan?

Savings personal financial

Need

Tax benefits if others specify____________

11) Are you aware of ULIP in ICICI prudential life insurance?

Yes No

If no go to question number 19



12) Why you prefer ULIP in ICICI prudential?

Returns Safety

Risk cover Tax benefits

13) How did you come to know about the ULIP in ICICI prudential?

Friends Advertisement

Advisor News paper

Others

14) Are you satisfied with the performance of the ULIP in ICICI prudential?

_______________________________________________________________

Highly Satisfied Moderate Dissatisfied Highly

Satisfied Dissatisfied

15) In which insurance plan would like to invest in ICICI prudential?

Smart kid Life time Gold

Retirement solution if other specify_________



16) Are you satisfied with the advisor service in ICICI prudential?

_______________________________________________________________

Excellent Good Average Bad vast

17) Satisfied level towards ULIP s in ICICI prudential?

_______________________________________________________________

Highly Satisfied nether satisfied Dissatisfied Highly

Satisfied or dissatisfied Satisfied

18) Are you satisfied with the service provided by the ICICI prudential?

______________________________________________________________

Highly Satisfied Moderate Dissatisfied Highly

Satisfied Dissatisfied

19) In future you would like to invest in?

Insurance Mutual fund Equity

Share market Investing in gold Bank Deposits



20) What kind of investment you prefer?

High risk High return

Medium Risk Medium Return

Low risk Low Return

21) How much of money invested in above mentioned investments?

Less than 10,000

10,000-50,000

50,000-1,00,000

More than 1,00,000

22) If you save 10,000 per month how you divide your savings?( In percentage)

Mutual fund

Insurance

Equity

Fixed Deposits

Share market


a project report on insurance as an investment tool with regards to ulip at icici ltd

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