icici prudential life-2

8/2/2019 ICICI Prudential Life-2

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SUMMER TRAINING

PROJECT REPORT

ON

COMPARATIVE STUDY OF ICICI

PRUDENTIAL PRODUCTS WITH

HDFC STANDARD LIFE AND BAJAJ ALLIANZ

IN BAREILLY

Submitted in partial fulfillment for the award of Master of

Business Administration (2009-2010).

Submitted To : Submitted By :Mrs.Bushra Khan Vishal Gupta

MBA IIIrd sem

Roll No- 0914270098

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Invertis Institute of Management Studies, Bareilly

Preface

The present management education has two major aspect i.e. practical and

Theoretical approaches. The practical training is the key in management courses,

which has received a vital importance in present scenario. Its exposure to the

potential manager to aware a management student about the actual work situation in

the organization. By this practical training a student rich insight in to what

practically going inside the insurance companies in India.

In fact its the implementation of theory into practice which is the life force of

management. Six weeks summer training is an obligatory requirement of the Master

of Business Administration. It was a great advantage for me of receiving practical

training in ICICI PRUDENTIAL LIFE INSURANCE COMPANY

LIMITED, Bareilly in their Marketing Department.

The management of Company offered an excellent learning situation their have been

considerable change in the technology, operation and structure of the insurance

company due to Globalization, merger and environmental issue and available

insurance policies and also new excellences been imposed by the changing consumer

satisfaction and multiple market requirements are forcing insurance companies to

adapt new technology.

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Acknowledgement

Words are inadequate to express deep sense of gratitude towards the management of

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED,

Bareilly, and (Uttar Pradesh), who accepted us as winter trainee, in their esteemed

organization.

Its my great privilege to express my regard towards to Mr. Vivek Srivastava,A.S.M. & Sumer Training Officer & Project Guide PRACHI PATHAK

& ALL THE FACULTY MEMBERS, who made my work possible through

his inspiring guidance and constructive criticism throughout the period of training.

I am very thankful to Mr. Saurav Saxena, Sales Development Manager of ICICI

PRUDENTIAL and Mr. Bilal, Financial Consultant, who provided me the sales

guidance needed in the completion of the project.

I am also thankful to our training & Placement Officer of our institute.

This project has been made possible through the direct and indirect motivation of all

my family members, relatives and friends who inspired me to work with full devotion

and consistency.

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LIST OF CONTENT

1. INTRODUCTION- 4-11

About life Insurance

2. ABOUT IRDA - 12-16

3.

ICICI PRUDENTIAL LIFE - 17-454. HDFC STANDARD LIFE PRODUCT - 46-48

5. BAJAJ ALLAINZ- 49-54

6. RESEARCH METHODOLOGY - 55-56

7. DATA INTERPRETATION - 57-71

8. FINDINGS - 72-739. DIFFICULTIES &LIMITATIONS - 74

10. RECOMMENDATION - 75

11. CONCLUSION - 76-77

12. BIBLIOGRAPHY - 78

13. COPY OF QUESTIONNAIRE - 79-80

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SCOPE

The scope of the present report is limited to the COMPARATIVE STUDY OF

INSURANCE COMPANIES. The findings are based solely on primary data

gathered by interviewing the financial consultants, the Sales Development Manager of

the firm and few executive of the firm, besides data obtained from, office records and

other office journals. This project report has been divided into different chapters and

contains different perspective and information about Insurance Companies.

Information collected by the survey conducted for the consumer preference of at

random samples. Thus, the primary data and secondary data both have provided the

basis for completing of his report.

About Life Insurance

What is Life Insurance

Scope of Life Insurance

Need of Life Insurance

Roles of Life Insurance

Benefits of Insurance

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What is Life Insurance?

Life Insurance is a contract between you and a life insurance company, which

provides your beneficiary with a pre-determined amount in case of your death during

the contract term.

Buying insurance is extremely useful if you are the principal earning member in the

family. In case of your unfortunate premature demise, your family can remain

financially secure because of the life insurance policy that you have purchased.

The primary purpose of life insurance is therefore protection of the family in the

event of death. Today, insurance is also seen as a tool to plan effectively for your

future years, your retirement, and for your childrens future needs. Today, the

market offers insurance plans that not just cover your life and but at the same time

grow your wealth too.

Insurance

Uncertain EventFinancial Loss

Insurance Compensates for theLoss

Then What ?

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SCOPE OF INSURANCE

Why does one need Life Insurance?

Life insurance is designed to protect you and your family against financial uncertainties

that may result due to unfortunate demise or illness. You can also view it as a

comprehensive financial instrument as a part of your financial planning offering you

savings & investment facilities along with cover against financial loss. By choosing the

right policy as per your needs i.e. customized solutions, you will be able to plan for a

secure future for yourself and your loved ones.

Choosing the right plan

Identifying the right plan basis your needs is the first crucial step towards insurance

planning.At HDFC SL we help you through this decision by identifying your various needs and

offering plans that are customized for you. You may also choose a plan for yourself by

identifying the life stage you are at.

Analyzing Needs

The following needs of a person can be fulfilled by insurance:-

Protection

Need for a sound income protection in case of your unfortunate demise

Investment

Need to ensure long-term real growth of your money

SavingSave for the milestones and protect your savings too

PensionNeed to save for a comfortable life post retirement

Once you have analyzed your needs as per above classification, you need to then

ascertain important factors such as type of cover, insurance amount as per one's

income, life stage and dependents

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Need for Life Insurance

Risks and uncertainties part of lifes great adventureaccident, illness, theft, natural

disaster- they are all built into the working of the Universe, waiting to happen.

Insurance then is mans answer to the vagaries of life. If you cannot beat man-made

and natural calamities, well, at least be prepared for them and their aftermath.

Insurance is a contract between two parties the insurer and the insured. Wherein

the insurer agrees to pay the insured for financial losses arising out of any unforeseen

events in return for a regular payment of premium. These unforeseen events are

defined as risk and that is why insurance is called a risk cover.

Hence, insurance is essentially the means to financially compensate for losses that life

throws at people corporate and otherwise.

Death (untimely)

Disability

Diseases

Debt

Destitution (Retirement)

..and the way to protect is; only by way of insurance

5 Ds

Uncertainty on Human Life

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Roles of Life Insurance

Role 1: Life Insurance as Investment

Insurance is an attractive option for investment. While most people recognize the risk

hedging and tax saving potential of insurance, many are not aware of its advantage as

an investment option as well. Insurance products yield more compared to regular

investment options, and this is besides the added incentives offered by insurers.

You cannot compare an insurance product with other investment schemes for the

simple reason that it offers financial protection from risks, something that is missing

in non-insurance products.

In fact, the premium you pay for an insurance policy is an investment against risk.

Thus, before comparing with other schemes, you must accept that a part of the total

amount invested in life insurance goes towards providing for the risk cover, while the

rest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the

end of the term. In other words, if you take a life insurance policy will come back to

you with added returns. In the unfortunate events of death within the tenure of the

policy, the family of the deceased will receive the sum assured.

Thus insurance is a unique investment avenue that delivers sound returns in addition

to protection.

Role 2: Life insurance as Risk cover

Insurance provides you with that unique sense of security that no other form of

investment provides. By buying life insurance, you buy peace of mind and are

prepared to face any financial demand that would hit the family in case of an

untimely demise.

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Insurance also provides a safeguard in the case of accidents or

a drop in income after retirement. An accident or disability can be devastating, and

an insurance policy can lend timely support to the family in such times. It also comes

as a great help when you retire, in case no untoward incident happens during the

term of the policy.

Role 3: Life insurance as Tax planning

Insurance serves an excellent tax saving mechanism too. You will be eligible for tax

benefits under section 80C and Section 10(10D) of the Income Tax Act 1961.

Under Section 80C, you can save up to Rs. 33,600 from your tax each year as

premiums up to Rs. 100,000 are allowed as a deduction from your taxable

income.

Under Section 10 (10D), the benefits you receive from this policy are

completely tax-free subject to the exclusions.

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BENEFITS OF LIFE INSURANCE

Superior to Any Other Savings Plan

Unlike any other savings plan, a life insurance policy provides full protection

risk of death. In the event of death of a policyholders, near and dear ones. In

comparisons, any other savings plan would amount to the total savings

accumulated till date. If any other incidence occurs prematurely, such savings can

be much lesser than the sum assured. Evidently, the potential financial loss to the

family of the policyholder is cease able.

Encourages and Forces Thrift

A saving deposit can easily be withdrawn. The payment of life insurance

premium, however, is considered sacrosanct and is viewed with the same

seriousness as the payment of interest on a mortgage. Thus, a life insurance policy

in effect brings about compulsory savings.

Easy Settlement and Protection against Creditors

A life insurance policy is the only financial instrument the proceeds of which can

be protected against the claims of a creditor of the assured by effecting a valid

assignment of the policy.

A Ready Marketability and Suitability For Quick BorrowingsA life insurance policy can, after a certain time period (generally 3 years), be

surrendered for a cash value. The policy is also acceptable as a security for a

commercial loan, for example a student loan, it is particularly advisable for housing

loans when an acceptable policy may also cause the lending institution to give loan at

lower interest rates.

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Disability Benefits

Death is not the only hazard that is insured, many policies also provide

disability benefits. Typically, these provide for waiver of future premiums andpayment of monthly installment spread over certain time period.

Accident Death Benefits

Many policies can also provide for an extra sum to be paid (typically equal to

the sum assured) if death occurs as a result of accident.

Tax Relief

Under the Indian tax act, the following tax relies are available

30% of the premium paid can be deductible from your total income-tax

liability.

100% of the premium paid is deductible from your total taxable income.

When these benefits are factored in, it is found that most policies offer return

that are comparable/or even better than older savings modes such as PPF, NSC etc.

Moreover, the cost of insurance is very negligible.

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About IRDA

What is IRDA

Notification

IRDA Journals

Composition of Authority under IRDA Act 1999

Duties, Power and functions of IRDA

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What is IRDA?

The IRDA Regulations, 2002 deals with the vast area of rights of the investors starting

with the rights to obtain a copy of the proposal, the free look in period in respect of

the life policies, a copy of the concluded policy to be furnished to the client and also

the obligations of the insurance company regarding servicing and extending of the

policy, payment of interest in case of delay settlement of the policy claims, etc.

The regulations also prescribe a procedure for settlement of the grievances including

the appointments of the Insurance Ombudsman at specific centers in India. In

addition to this, the IRDA Act empowers the Authority to look into the settlement of

the grievances and in cases where the policyholders approach the Authority directly;

the Authority often intervenes with the insurers for the protection of their rights.

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Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, Powers and functions of IRDA.

(1) Subject to the provisions of this Act and any other law for the time being in

force, the authority shall have the duty to regulate, promote and ensure

orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provision contained on sub-section

(1), the powers and functions of the Authority shall include

Issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration.

Protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable interest,

settlement of insurance claim, surrender value of policy and other

terms and conditions of contracts of insurance.

Specifying requisite qualifications, code of conduct and practical

training for intermediary of insurance intermediaries and agents.

Specifying the code of conduct for surveyors and loss assessors.

Promoting efficiency in the conduct of insurance business.

Promoting and regulating professional organizations connected with

the insurance and re-insurance business.

Levying fees and other charges for carrying out the purposes of this

Act.

Calling for information from, undertaking inspection of, conducting

enquiries and investigations including audit of the

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Control and regulation of the rates, advantages,

terms and conditions that may be offered by insurers in respect of

general insurance business but so controlled and regulated by the

Tariff

Advisory Committee under section 64U of the Insurance Act, 1938 (4 of

1938).

Specifying the form and manner in which books of account shall be

maintained and statement of accounts shall be rendered by insurers

and other insurance intermediaries.

Regulating investment of funds by insurance companies.

Regulating maintenance of margin of solvency.

Adjudication of disputes between insurers and intermediaries or

insurance intermediaries.

Supervising the functioning of the Tariff Advisory Committee.

Specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organizations

referred to in clause (f).

Specifying the percentage of life insurance business and general

insurance business to be undertaken by the insurer in the rural of social

sector

Exercising such other powers as may be prescribed.

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ICICI

Prudential

Life

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ICICI Prudential Life

The Partnership:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse, and prudential plc, leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was amongst

the first private sector insurance companies to begin operations in December 2000

after receiving approval from Insurance Regulatory Development Authority.

ICICI Prudential capital stands at Rs. 21.60 billion with ICICI Bank and Prudential

plc holding 78% and 29% stake respectively, As of March 31, 2007, the companygarnered Rs.4, 843 crore of weighted retail + group new business premiums and

wrote over 2.96 million retail policies. The company has assets hold to the tune of over

Rs. 15,000 crore.

ICICI Prudential is also the only private life insurer in India to receive a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind)

rating is the highest rating, and is a clear assurance of ICICI Credentials ability to

meet its obligations to customers at the time of maturity or claims.

For the past six years, ICICI Prudential has retained its position as the No. 1 private

life insurer in the country, with a wide range of flexible products that meet the needs

of the Indian customer at every step in life.

Distribution

ICICI Prudential has one of the larges distribution networks amongst private life

insurers in India. As of March 31, 2007 the company has over 580 offices across the

country and over 234,000 advisors. The company has over 22 banc assurance

partners, having tie-ups with ICICI Bank, Federal Bank, Bank of India, Lord

Krishna Bank, Idukki District Co-operative Bank, etc.

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Individual Products

Plans Benefit

Saving plans ICICI Prudential offers a variety of policies that give customer

the benefits of protection and the opportunity to save for

important assets of events, like a home, a car or a wedding.

Childrens plans Childrens plan is especially designed to provide flexibility and

safeguard customers childs future education and lifestyle,

taking all possibilities into account.

Retirement plans ICICI Prudential presents Retirement solutions that combine thebest of insurance and investment.

Group Solutions Employee benefits have proven to be an excellent tool to optimize

the retention of talent and improve an organizations bottom line.

Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added

to the basic policy at a marginal cost, depending on the specific

needs of the customer.

Protection Plans ICICI Prudential Protection Plan offers LIFE GUARD, which

offers life cover at low cost.

Health Assure Plus ICICI Prudential Health Assure is a regular premium plan which

provides long term cover against 6 critical illnesses by providing

policyholder with financial assistance, irrespective of the added

advantage of an equivalent life insurance cover.

Cancer Care It is a regular premium plan that pays cash benefit on the

diagnosis as well as at different stages in the treatment of variouscancer conditions.

Hospital Care It is a fixed benefit plan covering various stages of treatment.

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ICICI PRUDENTIAL LIFES key strengths

Financial Expertise: As a joint venture of leading financial services groups, ICICIPrudential Life has the financial expertise required to manage your long-term

investments safely and efficiently.

Range of solutions: We have a range of individual and group solutions, which canbe easily customized to specific needs. Our group solutions have been designed to offer

you complete flexibility combined with a low charging structure.

Track Record so far: Our cumulative premium income, including the first yearpremiums and renewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.

We have covered over 1.6 million individuals out of which over 5, 00,000 lives have been

covered through our group business tie-ups.

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ICICI Limited

ICICI is Indias leading housing finance institution and has helped build more

35,00,000 houses since its incorporation in 1977.

1) In Financial Year 2003-04 its assets under management crossed Rs.56,000 Cr.

2) As at March 31, 2004, outstanding deposits stood at Rs. 9,840 crores. The depositor

base now stands at around 1 million depositors

.

3) Rated AAA by CRISIL and ICRA for the 10th consecutive year

4) Stable and experienced management

5) High service Prudential s

6) Awarded the Economic Times Corporate Citizen of the year Award for its

long-standing commitment to community development.

7) Presented the Dream Home award for the best housing finance provider in 2004

at the third annual outlook money awards. .

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About the group companies of ICICI

ICICI

ICICI Bank

ICICI Mutual Funds

ICICI Securities

ICICI realty.com

Internet

Credit Information Bureau (India) Limited

ICICI Chubb General Insurance Company Limited

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Individual Products

Each of us leads a unique life and so has unique needs. ICICI Prudential Life offers arange of products and invites you to choose the one that suits you best.

Pension Plan

Personal Pension Plan

Unit Linked Pension Plan

Saving Plans

Endowment Assurance Plan

Unit Linked Endowment Plan

Money Back Plan

Childrens Plan

Unit Linked Young star Plan

Investment Plans Single Premium Whole Of Life Plan

Protection Plans

Term Assurance Plan

Loan Cover Term Assurance Plan

What is personal pension plan?

ICICI Personal Pension Plan is an insurance policy that is designed to provide a post-

retirement income fir life with the freedom to choose your retirement date.

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Customer can choose the premium, the Sum Assured and the

retirement date. At the end of the policy term, you will receive the Sum Assured Plus

any attaching bonus, which will provide your post-retirement income.

ICICI Personal Pension Plan is an insurance policy, which can benefit customer in

following ways:

Provides a post retirement income in your golden years.

Gives you the flexibility to plan your retirement date.

Gives you tax benefits on your premiums.

In case of unfortunate demise during the policy term, your nominee will receive the

following benefits:

Demise within first year : 80% of the premium paid

Demise after first year : premium paid to date along with compound interest

calculated at 8% p.a.

What is Retirement Age?

Customer can select age of retirement at between 50 years and 70 years.

The eligibility ages are as follows:

Minimum Age At Entry 18 years

Maximum Age At Entry 60 years

Minimum Term 10 years

Maximum Term 40 years

What are the customer premiums?

Customer agrees to pay a level premium regularly, either quarterly, half

yearly or annually, throughout the term of the policy.

The minimum premium amount is Rs. 5000 each year.

Premiums can be paid by cash, cheque or demand draft.

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Does Personal Pension Plan offer you Tax

Benefit?

Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the

Income Tax Act are applicable.


premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable

income.

Under Section 10 (10D), the benefits received from this policy are completely

tax-free.

Exclusions

No death benefit will be paid if the death has occurred directly or indirectly as a

result of suicide within one year from the date of first being covered under the policy.

What is Unit Linked Pension Plan?

The ICICI Unit Linked Pension Plan is an insurance policy that is designed to provide

a retirement income for life with the freedom to maximize your investment returns. It

allows you build up a retirement fund for the future and during that time, give you

the knowledge that your family will receive a cash lump sum to provide for them in

the event of your unfortunate demise.

Customer can choose your premium and the investment fund or funds. In the event of

your unfortunate demise during the policy term, your spouse will receive a cash lump

sum to help him or her manager the retirement years.




The minimum premium amount is Rs. 10,000 each year.

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Premiums can be paid by cash, cheque or demand

draft.

Beneficiaries:

Customer will receive the benefits due on maturity at the end of the policy

term.

In the event of your unfortunate demise, your nominee will receive the benefits

due.

What are the Investment Funds?

You can choose from all or any of the following 6 funds:

FUNDS Bank Deposits

& Money

Market

Govt.

Securities

& Bonds

Equity Risk

&

Return Rating

Liquid Funds 100% - - Low

Secure Managed Fund - 100% - Low

Moderate

Defensive Managed Fund - 70% to

85%

15% to

30%

Moderate

Balanced Managed Fund - 40% to

70%

30% to

60%

High

Equity Managed Fund - 0 to 40% 60% to

100%

Very High

Growth Fund - - 100% Very High

What happen if customer surrenders the policy?

The policyholder can surrender the policy at any point of time during the contract

term. The amount payable will be the unitized fund value after applying additional

surrender charges mentioned below:

1. In first three years: - Insurance plans are long-term investments with significant

tax advantages. Therefore, for the first three years of your plan, you may not

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surrender the plan or withdraw any portion of your funds

from it. These funds will be paid out to you only at the end of the third year. If you

stop paying your regular premium before three years have passed, your life cover will

cease and funds will be held in suspense after deduction of surrender charges.

2. From the fourth year onwards:-you can choose to surrender the policy at any

time and the surrender value will be the value of the units in the funds. We will

enforce surrender only if you have stopped paying regular premiums and your fund

value is less than your original annual regular premium amount. You can make lump

sum partial withdrawals from your funds at any time with in the policy term chosen

provided:

The minimum withdrawal amount is Rs. 10,000.

After the withdrawal the fund does not fall below your original annual regular

premium amount.

After the withdrawal, the fund does not fall below the sum of single premium

top-ups paid to date.

Are you eligible?

The eligibility ages for the life assured under the plan are as follows:



Minimum Age At Vesting 50 years

Maximum Age At Vesting 75 years

Minimum Term: 10 years Maximum Term: 40 years

Charges:

ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These

charges are:

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1. Premium Allocation Charge:- This is premium basedcharge. After deducting this charge from premium, the remainder is invested to buy

units. This percentage is called the Allocation Rate.

Premium paid Allocation Rate Allocation chargeRegular- 1st year 75% 25%

Regular- 2nd year 75% 25%

Regular- 3rd year onwards 99% 1%

2. Fund Management Charge:-This charge is 0.80% of the fund value per annumtaken on a daily basis.

3. Switching Charge:- 24 switches will be given free in a policy year and any

additional switch will be charged Rs 100 per switch.

What is Unit Linked Endowment Plan?

The unit linked endowment plan is an insurance policy that is designed to pay a lump

sum on maturity or on earlier death. On maturity customer receive the value of

customer units. On death customer receive the greater of the value of customer units

and customer selected basic sum assured.

What are the benefits?

There are 4 different options available to choose from:

1. Life Option - Death Benefit

On death within the policy term, the greater of the Sum Assured and the valueof fund will be paid to customer nominee. The policy will terminate.

2. Extra Life Option - Death Benefit + Accidental Death benefit

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If death occurs within the policy term as the result of

an accident, an extra benefit equal to the Sum Assured will be paid.

3. Life and Health Option - Death Benefit + Critical illness

Benefit

On death or earlier diagnosis of any one of six common critical illnesses within

the policy term, the greater of the Sum Assured and the value of the unit-linked fund

will be paid to customer nominee. The illnesses covered under this option are cancer,

coronary artery by pass graft surgery, heart attack, kidney failure, major organtransplant and stroke.

If death occurs within the policy term as the result of an accident, an extra benefit

equal to the Sum Assured will be paid.






What are the levels of protections?

Minimum of the term.

Maximum 40 times.



FUNDS Bank

Deposits

Govt.Securities Equity Risk

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&

Money

Market

&

Bonds&

Return

Rating

Liquid Funds 100% - - LowSecure Managed

Fund

- 100% - Low

Moderate

Defensive Managed

Fund

- 70% to 85% 15% to 30% Moderate

Balanced Managed

Fund

- 40% to 70% 30% to 60% High

Equity Managed

Fund

- 0 to 40% 60% to

100%

Very High



The policyholder can surrender the policy at any point of time during the contractterm. The amount payable will be the unitized fund value after applying additional


1. In first three years: - Insurance plans are long-term investments with significant

tax advantages. Therefore, for the first three years of your plan, you may notsurrender the plan or withdraw any portion of your funds from it. These funds will be

paid out to you only at the end of the third year. If you stop paying your regular

premium before three years have passed, your life cover will cease and funds will be

held in suspense after deduction of surrender charges.

2. From the fourth year onwards:- you can choose to surrender the policy at anytime and the surrender value will be the value of the units in the funds. We will




provided:



premium amount.



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Is customer eligible?

The age and term limits for taking out a ICICI Unit Linked Endowment are as shown

below:

Benefit options Term Period (yrs) Age at entry (yrs) Max. Age at

Maturity

(yrs)Min. Max. Min. Max.

Life Option 10 30 18 65 75

Extra Life Option 10 30 18 55 70

Life and Health Option 10 30 18 55 65

Extra Life and Health option 10 30 18 55 65

Does Endowment Assurance Plan offer you Tax Benefit?



Charges:

ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These

charges are:

1. Premium Allocation Charge:- This is premium based charge. After deductingthis charge from premium, the remainder is invested to buy units. This percentage iscalled the Allocation Rate.

Premium paid Allocation Rate Allocation charge

Regular- 1st year 70% 30%



2. Fund Management Charge:- This charge is 0.80% of the fund value per annumtaken on a daily basis.

3. Switching Charge:- 24 switches will be given free in a policy year and anyadditional switch will be charged Rs 100 per switch.

4. Policy Administration Charge:- A charge of Rs. 20 per month is charged tocover regular administration costs.

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Exclusions

No death benefit will be paid if the death has occurred directly or indirectly as

a result of suicide within one year from the date of first being covered under

the policy.

We will not pay Extra Health Benefits if the critical illness has occurred within

6 months of the start of the contract.

We may not pay Extra Health Benefits if we do not receive a duly completed

claim from within 26 weeks of he illness, disability, operation or other

circumstances giving rise to the claim.

What is Money Back Plan?

It is a participating insurance plan that offers the following features:

A proportion of the basic Sum Assured as Cash lump sums at regular 5 years

intervals within the policy term.

A lump sum payment on survival up to maturity date.

In case of the unfortunate death of the life assured within the term of the

policy, the basic sum assured plus any bonus additions is provided. This is over

and above the earlier payouts.

What optional benefits are available with this plan?

You can add 4 optional benefits to customize your policy to suit your needs:

1. Critical Illness Benefits:- It provides an amount, equal to the Sum Assuredselected under this benefit, on diagnosis of any one of the 6 critical illnesses. The Sum

Assured is payable only if you survive for 30 days after date of Critical Illness Benefit

claim.

2. Additional Term Benefit:- It provides an additional amount, equal to the SumAssured selected under this benefit, in case of your unfortunate demise.

3. Accidental Death Benefit:-It providesan additional amount, equal to the SumAssured selected under this benefit, in case of your unfortunate death:

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Due to an accident, and

Within 90 days of the accident.

What are the customer premiums? Customer agrees to pay a level premium regularly, either quarterly, half




KEY BENEFITS:

POLICYTERM

SURVIVAL BENEFIT DEATHBENEFIT

5th year 10th year 15th year 20th year 25th year 30th year

10 40% 60%+A.B - - - -

100%Su

m

Assured+

Attaching

Bonus

15 30% 30% 40%+A.B - - -

20 25% 25% 25% 25%+A.B - -

25 20% 20% 20% 20% 20%+A.B -

30 15% 15% 15% 15% 15% 15%+A.B

Is customer eligible?

This plan can be taken on a single life basis or a joint life (first claim) basis. The

eligibility ages are as follows:

Benefit options Term Period (yrs) Age at entry (yrs) Max. Age at

Maturity


Basic policy 10 30 12 60 75

Critical Illness Benefit 10 30 18 55 70

Additional Term Benefit 10 30 18 60 75

Accidental Death Benefit 10 30 18 55 65

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Beneficiaries:


term.

In the event of your unfortunate demise, your nominee will receive the

benefits.

Does Money Back Plan offer you Tax Benefit?



Exclusions



the policy.






We will not pay Accidental Death Benefit if Death occurs after 90 days from

the date of the accident.

We will not pay Additional Term benefit, Accidental Death Benefit if the death

is caused directly or indirectly from taking part or practicing for any

hazardous hobby or pursuit or race unless previously agreed to by us in

writing.

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What is childrens plan?

The ICICI Childrens Plan is designed to secure your childs future by giving your

child a guaranteed lump sum, on maturity or in case of your unfortunate demise,early

in the policy term. Childrens Plan receives simple reversionary bonuses, which are

usually added annually. This is a flexible plan with three options for you to choose

from, depending on your requirements.

What are the options that are available with this plan?You will have the choice of 3 options at the start of the policy:

PLAN OPTION DEATH

BEBEFIT

MATURITY

BEBEFITAccelerated benefit Plan Company will pay the

Sum Assured +

Bonuses Declared.

The policy terminates

immediately.

Company will pay the

Sum Assured + Bonuses

Declared.

Maturity Benefit Plan Future premiumswaived and the policy

continues till maturity.

We will pay the SumAssured + Bonuses

Declared.

Double Benefit Plan Company will pay the

Sum Assured.

Future premiums

waived, and the policy

continues till maturity.

We will pay the Sum

Assured + Bonuses

Declared.






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Are you eligible?



Maximum Age At Entry 60 yearsMaximum Age At Maturity 75 years


Does Childrens Plan offer you Tax Benefit?





income.


tax free.

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Exclusions

We will not pay any benefit if the death of the life assured has occurred directly or

indirectly as a result of suicide within one year of the date of commencement or the

date of issue, if later and the policy will lapse without any value.

What is Unit Linked Young Star Plan?

As a parent, your priority is your childrens future and being able to meet their

dreams and aspirations. Today, providing a geed education, establishing a

professional career or even a modest wedding is expensive. To help you save for your

child, we at ICICI Prudential Life, present the ICICI Unit Linked Young Star Plan.

ICICI Unit Linked Young Star Plan is designed to provide a lump sum to the child at

maturity. It also provides financial security to the child in the future, even in case of

the insured parents unfortunate death during the policy term. The Unit Linked

Young Star Plan also gives the option of additional protection against the six common

critical illnesses.

Your premiums are invested in units of the investment funds of your choice, based on

the prevailing unit prices. On maturity the value of the units will be paid. On death

the selected basic sum assured is paid, and the policy continues until maturity.






What are the levels of protections?

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Minimum 5 times.

Maximum 40 times.



FUNDS Bank Deposits

MoneyMarket

Govt.Securities

& Bonds

Equity Risk &

ReturnRating

Liquid Funds 100% - - Low

Secure Managed

Fund

- 100% - Low

Moderate

Defensive Managed

Fund

- 70% to 85% 15% to

30%

Moderate

Balanced Managed

Fund

- 40% to 70% 30% to

60%

High

Equity Managed

Fund

- 0 to 40% 60% to

100%

Very High


What happen if customer surrenders the policy?The policyholder can surrender the policy at any point of time during the contractterm. The amount payable will be the unitized fund value after applying additional


1. In first three years: - Insurance plans are long-term investments with significanttax advantages. Therefore, for the first three years of your plan, you may not

surrender the plan or withdraw any portion of your funds from it. These funds will be

paid out to you only at the end of the third year. If you stop paying your regular

premium before three years have passed, your life cover will cease and funds will be

held in suspense after deduction of surrender charges.

2. From the fourth year onwards:-you can choose to surrender the policy at anytime and the surrender value will be the value of the units in the funds. We will




provided:


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premium amount.



Are you eligible?




Maximum Age At Maturity 75 years


Charges:ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These

charges are:

1. Premium Allocation Charge:- This is premium based charge. After

deducting this charge from premium, the remainder is invested to buy units.

This percentage is called the Allocation Rate.

Premium paid Allocation Rate Allocation charge

Regular- 1st year 70% 30%



2. Fund Management Charge:- This charge is 0.80% of the fund value per annum

taken on a daily basis.

3. Switching Charge:- 24 switches will be given free in a policy year and any

additional switch will be charged Rs 100 per switch.

4. Policy Administration Charge:- A charge of Rs. 20 per month is charged to

cover regular administration costs.

Does Unit Linked Young Star Plan offer you Tax Benefit?

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Tax benefits described in Section 80C, Section 80D, and

Section 10 (10D) of the Income Tax Act are applicable.



income.


tax free.

Exclusions



the policy.











writing.

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What is Single Premium Whole Life Insurance Plan?

ICICI Single Premium Whole of Life Insurance Plan is a tailor made plan, well suited

to meet your long-term investment needs. This participating plan offers youre the

following benefits:

It provides long-term real growth of your money.

Single premium investment plan.

In case of your unfortunate death during the policy term, this participating

insurance plan will pay your family the Sum Assured and compound

reversionary Bonuses, which are usually added annually. An additional

Terminal Bonus may be paid depending on the performance of the underlying

investments.

During Guaranteed Surrender Periods customer get the Sum Assured and all

bonuses vested as at the date of surrender.

In case of unfortunate death

Your nominee gets the sum assured secured by your premium, plus any attaching

bonuses.

Are you eligible?




What are the payment options?

A single premium can be paid by cash, cheque or demand draft.

Minimum Sum Assured : 25,000

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Maximum Sum Assured : 50,00,000

Premium Rate: 950 per Rs. 1,000 of Sum Assured.


Customer can terminate the policy any time, after it has been in force for at least 6

months and receive a surrender value. However, after completion of 3 years there will

be a guaranteed surrender value of 50% of premium paid.

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Tax Benefits:

Currently Section 80C benefit is available for the premium paid under the plan to the

extent of 20% of the sum assured. In the event of a death claim the money paid is

exempt as per Section 10(10D), of the income Tax Act 1961. We would recommendyou to consult your tax consultant for further clarifications.

Exclusions:

Company shall not be liable to pay the benefit amount indicated in your policy

schedule if the death of the life assured or the death of the first to die of the lives

assured is caused directly or indirectly by suicide within one year of the date of

commencement, or the date of issue of the policy, if later.

What is Term Assurance Plan?

The ICICI Term Assurance Plan is an insurance policy that is designed to help secure

our familys financial needs. It does this by providing a lump sum to the family of the

life assured in case of death or critical illness of the life assured during the term of the

contract.

Under this plan, a um assured is payable in case of death of the life assured during the

term of the contract. One can choose the lump sum that would replace the income lost

to ones family in the unfortunate event of ones death. Since this non- participating

plan is a pure risk cover plan, no benefits are payable on survival to the end of the

term of the policy.

What optional benefits are available with this plan?

You can add the following optional benefit to customize your policy to suit your

needs:

1. Critical Illness Benefits:- It provides an amount, equal to the Sum Assured

selected under this benefit, on diagnosis of any one of the 6 critical illnesses. The Sum

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Assured is payable only if you survive for 30 days after date of

Critical Illness Benefit claim.

2. Accidental Death Benefit:- It providesan additional amount, equal to the Sum

Assured selected under this benefit, in case of your unfortunate death:

Due to an accident, and

Within 90 days of the accident.





Beneficiaries:


term.

In the event of your unfortunate demise, your nominee will receive the benefits

due.Are you eligible?

Benefit options Term period

(yrs)

Age at entry

(yrs)

Max. Age At

Maturity


Basic policy 10 30 12 60 65

Critical Illness Benefit 10 30 18 55 65

Accidental Death

Benefit

10 30 18 55 65

Does Term Assurance Plan offer you Tax Benefit?

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Tax benefits described in Section 80C, Section 80D, and

Section 10 (10D) of the Income Tax Act are applicable.



income.


tax-free.

Exclusions



the policy.











writing.

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HDFC

Standard Life

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The Partnership:

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 a strong relationship quickly formed.

In October 1995 the companies signed a 3-year joint venture agreement.

In October 1998, the joint venture agreement was renewed and additional resource

made available. Around this time Standard Life purchased 2% of InfrastructureDevelopment Finance Company Ltd. (IDFC). Standard Life also started to use the

services of the HDFC Treasury department to advise them upon their investments in

India.

Towards the end of 1999, the opening of the market looked very promising and both

companies agreed the time was right to move the operation to the next level.

Therefore, in January 2000 an expert team from the UK joined a hand picked team

from HDFC to form the core project team, based in Mumbai.

In a further development Standard Life agreed to participate in the Asset

Management Company promoted by HDFC to enter the mutual fund market. The

Mutual fund was launched on 20th July 2000.

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Incorporation of HDFC Standard Life InsuranceCompany Limited

The company was incorporated on 14th August 2000 under the name of HDFC

Standard Life Insurance Company Limited.

Our ambition from as far back as October 19954 was to be the first private company

to re-enter the life insurance market in India. On the 23rd of October 2000, this

ambition was realized when HDFC Standard Life was the only life company to be

granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while

Standard Life owns 18.6%. Given Standard Lifes existing investment in the HDFC

Group, this is the maximum investment allowed under current regulations.

Our Mission:

We aim to be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the

market; rather it is a combination of several things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to improve service standards

Use of technology to improve service standards

Increasing market share.

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Bajaj Allianz

The Partnership:Bajaj Allianz life insurance co. Ltd. is a joint venture between two leading

conglomerates Allianz AG, one of the worlds largest insurance companies, and

Bajaj auto, one of the biggest 2 and 3 wheeler manufacturers in the world.

Bajaj Allianz Life Insurance: No.1 Private Life Insurance Company in India for 2005-06

Growth rate of 216%for financial year 2005-2006

Over 20,00,000 satisfied customers

A countrywide network of 900+ offices

Assets under management Rs. 5,500 cr.

Shareholder capital base of Rs. 700 cr

Individual products

Plan Benefits

Life long Gain Life long Gain comes with a host of

features to allow you to have the best of all

worlds-regular income for you and the

added benefit of providing for customer

loved ones too..

New Unit gain Plus:- This plan offers the unique option of

combining the protection of life insurance

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with the attractive

prospects of investing in securities.

NRI Insurance You can now easily steer customer savings

from overseas to conveniently meet

customer familys needs now and in the

future.

Term Care This plan is a term insurance plan. This

plan is not only offers you life insurance

covers at a low cost, but also provide for

return of premium on maturity.

Loan Protector The Allianz Bajaj Loan Protector plan is a

mortgage term insurance plan that covers

the outstanding principal amount of a

loan. It is an economical way to protect the

family from the burden of repayment of

the loan in case of death of the loanee.

Child Gain Taking care of a child is perhaps the most

important job a parent can have .it is but

natural that you would like to give

customer child customer best, and

therefore, this is the time when careful

financial planning can help you fulfill the

aspirations that you have for customer

children.

Risk Care This plan offers you life insurance cover at

lost possible cost for a selected term .It is

an ideal option to cover customer near &

dear ones against financial risks arising

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out of lifes

adversities.

Lifetime Care This plan provides you with the comfort

that customer near & dear ones will

continue to live their life without financial

worries, even when you are not around.

New Unit Gain Easy Pension Plus Bajaj Allianz New Unit Gain Easy Pension

Plus, is a plan that helps you take control

of your future and ensure a retirement you

can look forward to. This is a regular

premium investment linked deferred

annuity policy. Available as: New Unit

Gain Easy Pension Regular Premium &New Unit Gain Easy Pension Single

Premium.

Health Care This is a three-year health insurance plan,

providing comprehensive health cover

with life insurance benefit. You can choose

the amount of cover for each benefit

separately in multiples of the minimum

cover amount, subject to a maximum

multiple of 10.

SWOT Analysis Of HDFC SLIC

STRENGTH

Covered Vast Area.

High Grade Products.

AAA rated by CRISIL and ICRA for eight consecutive years.

Efficient and effective Management information System Lotus Notes.

On-line program control

HDFC SLIC improves customer orientation on a sustained basis.

WEAKNESS

Not optimum utilization of available resources.

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Poor advertisements.

Opportunities.

OPPORTUNITIES

Availability of lives and resources is sound.

Significant demand pattern and better quality policies like medical policy &

services are more in demand.

Special drive for awareness of literacy and mass education by Government.

Opportunity opened for the technically superior, upgraded and better-

managed mills to go for value added product range, fetching higher

realization.

THREATS Absence of Govt. Policy leads to uncertainties about long-term availability of

the resources.

High power tariff, increasing prices of administrated products have added to

the woes of domestic industry competing with abroad enjoying advantages of

economies of scale, advanced technology, low cost of finance, cheaper power

tariff etc

Current per capital consumption of policies in India is far less, then other

countries.

OBJECTIVE OF THE STUDY

1. To know about the sales policy.

2. To identify the peak sale period of the year.

3. Co-operation level extended from the companys side.

4. Motivational enhancement tools being followed by the company.

5. To study the consumer response towards the policies.

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6. To identify the schemes offered by the company to

there consumers.

7. To know the service level expectations of customers.

RESEARCH METHODOLOGY

When we talk about research methodology, we do not talk only of research method

but also consider the logic behind the method that be used in context research study.

We also evaluate why we are using a particular method and the used technique should

be such that the research is capable of being evaluated by the researcher and as by

others.

This project work involves three types of research:-

DESCRIPTIVE RESEARCH

Descriptive research is one , which involves describing the state of affairs, as they

exist. This type of research was used in the study of marketing strategies for the sale

of companys product also while studying about the parameters, which affect

competitiveness of the product.

APPLIED RESEARCH

A part of this is applied research because it aims at identifying trends among the

customers about the basis expectations so that company get insight into the demand of

customers which if fulfilled will result in complete customer satisfaction.

ANALYTICAL RESEARCH

In this kind of research, the research uses facts or information already available and

analysis these to make a critical evaluation. We have used facts available about the

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marketing strategies policies and information of companys

position in respect of image, quality of product, packaging methods and supply and

distribution and real market situation than we analysis them and made a critical

evaluation of these facts to suggest certain recommendations.

SAMPLING SIZE

For conducting our study I have covered 200 respondents in Bareilly region.

RESEARCH INSTRUMENTS

The contact method used in the study were:

Questionnaire Methods.

DATA COLLECTION

Data collection was done using through both primary and secondary data.

SECONDARY DATA

These data are already existing but might nave been collected originally for some

other purpose like:-

Previous record of company

Research Methodology by C.R. Kothari.

In addition, other official sources.

PRIMARY DATA

Face to face conversation with the consumers/dealers.

With the help of Questionnaire.

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DATA ANALYSIS

Data become useful only after they are properly analyzed. Data analysis involves

converting a series of recorded observation into descriptive statement and inferences

about relationship. This task is helpful in identifying the areas where the company

can improve further by focusing on those attributes in which the industry is

performing ineffectively and inefficiently.

Data has been analyzed on the basis of following:-

Fig. 1 Awareness about life insurance policy

Fig. 2 Priority while taking any policy

Fig. 3 Easy mode of Payment Company

Fig. 4 Affordable premium of insurance company

Fig. 5 Promotional Activities company

Fig. 6 Player in better services

Fig. 7 Player in wide variety of policies

Fig. 8 Company that saves money

Fig. 9 Company for investment

Fig. 10 Good return on maturity

Fig. 11 Company for children future

Fig. 12 Company for money back policy

Fig. 13 Company for endowment policy

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Fig. 14 Most acceptable company

Awareness About Life Insurance

Yes No

55% 45%

No

45%

Yes

55%

INFERENCE: Only 55 % respondent are aware about Life Insurance.

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Major Priority While Taking Any Policy

Security Future Needs Saving Money Rebate in IncomeTax

12 16 28 14

Rebate on

Income Tax

7%

Saving

Money

46%

Future

Needs

27%

Security

20%

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INFERENCE: Majority of customers will take life insurance policy for

saving money followed by future needs, security and rebate in incometax.

Most Expected Easy Mode Of Payment Company

ICICI Prudential HDFC SLIC Bajaj Allianz

35 45 20

HDFC SL 45%

ICICI PRU 35%

Bajaj Allianz

20%

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INFERENCE: HDFC SLIC provides easy mode of paymentfollowed by other insurance companies.

Most Expected Affordable Premium Of Insurance Company


35 40 25

HDFC SL40

ICICI PRU,35

Bajaj Allianz,

25

INFERENCE: HDFC SLIC provides affordable premium ofinsurance followed by other insurance companies.

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Most Expected Maximum Promotional Activities ByInsurance Company


36 30 34

HDFC SL 30%

ICICI PRU 36%

Bajaj Allianz34%

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INFERENCE: ICICI Prudential does maximumpromotional activities than other insurance companies.

Major Players in Better services


33 36 31

HDFC SL 36%

ICICI PRU 33%

Bajaj Allianz

31%

INFERENCE: HDFC SL provides better services followed by

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other insurance companies.

Major Players in Wide Variety of Policies


37 32 31

HDFC SL 32%

ICICI PRU 37%

Bajaj Allianz

31%

INFERENCE: ICICI Prudential provides wide varieties ofpolicies followed by other insurance companies.

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Most Appealing Company to Save Money


34 37 29

HDFC SL 34%

ICICI PRU 37%

Bajaj Allianz

29%

INFERENCE: ICICI Prudential provides better plans for savingmoney followed by other insurance companies.

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Major Player in Good Return On Maturity


38 33 29

HDFC SL 38%

ICICI PRU 33%

Bajaj Allianz

29%

INFERENCE: HDFC SL provides good return on maturityfollowed by other insurance companies.

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Most Expected Company For Children Future


44 34 22

INFERENCE: HDFC SL helps to secure childrens future followed byother insurance companies

HDFC SL34%

ICICIPRU

44%

Bajaj Allianz22%

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Most Appealing Company In Money Back Policy


36 32 32

INFERENCE: ICICI Prudential provides good plans in money backpolicy followed by other insurance companies.

HDFC SL 32%

ICICIPRU3

6%

Bajaj Allianz

32%

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Major Player Of Endowment Policy


32 35 33

INFERENCE: ICICI Prudential leads a major role in endowment policyfollowed by other insurance companies.

HDFC SL 32%

ICICIPRU

35%

Bajaj Allianz33%

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Most Acceptable Company


35 32 33

INFERENCE: HDFC SL is the most accepted company followed by other

insurance companies.

Bajaj Allianz33% IC

ICIPRU

35%

HDFC SL 32%

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Most Appealing Company For Investment


37 33 30

INFERENCE: HDFC SL provides better plans for investment followedby other insurance companies.

Bajaj Allianz

30%ICICIPRU3

7%

HDFC SL 33%

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FINDINGS

The project report is the compilation of COMPARATIVE STUDY OF PRIVATE

INSURANCE COMPANIES.

1. The maximum respondents get the information about the insurance policy

from the customer executive.

2. HDFC SLIC and ICICI Prudential have the major market share of insurance

services.

3. ICICI Prudential and HDFC SLIC are more preferred by the customers while

purchasing a policy in Bareilly city.

4. More than 60% respondents are satisfied by insurance policy provided by

company.

5. Most of the people dont prefer to invest in private life insurance companies.

6. Those respondents who are not satisfied by insurance policy are due to

incomplete information provided by the financial consultant.

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STRATEGIC RECOMMENDATIONS

HDFC standard Life will have to work hard in the following areas:

1. Change the perception of the about the life insurance product in the mind of

the people.

2. To influence the customer to view it as a protection instrument and not a

savings instrument alone.

3. Position itself as a provider of a social security ad family protection.

4. Strengthen its distribution force especially Banc assurance as a channel ofdistribution. The strategic alliance with banks will convert bank customers

into insurance policy holders.

5. Strategy for reduction in management expenses and operations costs.

6. R & D department of the company should design the products in such a

manner that will generate more revenue with lowest cost.

7. The company should focus in the rural market.

At the end, HDFC Standard Life Insurance Company should take steps to overcome

the threats form the external environment, turn their weaknesses into strengths, and

take benefit of the opportunities to remain the leader among the private players in the

industry.

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DIFFICULTIES AND LIMITATIONS

During my summer training I have got great experience and knowledge about

insurance sector and working procedures over there. I tried to deliver my best to the

company but some difficulties that I faced during that time are as follows:

I was not given particular area to be targeted. I had to make my own choices. I

used to focus mainly on the property dealers and medical shops.

Some persons used to get agreed at the start but after some time they used todeny.

While selling a policy, I had to make persons convinced about each facet

policy, they had full knowledge about policy. But as I did not get a training for

selling policies but only to get an overview to it. Thus, it was difficult to

persuade them.

I used to meet 5 10 customers daily, some of them were co-operative, and

they used to give a positive response while others response was negative.

There wasnt any proper database through which I can make calls to the

targeted people. So I had to figure out the potential customers.

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RECOMMENDATIONS

The survey conducted has provided with ample insight and information. In this

regard, certain recommendations should be made which may prove helpful to the

organization.

1. Sales executive is an important link between the company and customer so

executive should have complete knowledge and should be well trained.

2. Companies should provide good services and flexibilities after the sales of

policy.

3. There should be insurance cum loan scheme.

4. There should be insurance policies with lesser premium.

5. HDFC SLIC and ICICI Prudential have good market share so they should

come with some new policies and benefits.

6. People are taking interest in availing the services of private companies, so

private companies should try to provide better services.

7. Company should provide monthly mode of payment for premium.

8. Some free gifts or any other promotional scheme should be given.

9. Company should go for relation building exercise with their agents and

customers.

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CONCLUSIONS

The Indian Insurance sector in todays scenario has transformed into a buyers

market, where the customer has the choice to select from a variety of products,

services and service providers. More and more customers are now identifying newer

dimension attached to life insurance to match their life-cycle needs. Given uncertainty

about lifes duration and about increasing costs and responsibilities, consumers would

definitely opt for a life Insurance policy, but which one will depend on the competitive

edge of the Life insurance companies as measured on the above Five factors.

The present study looks at customer levels in a Life Insurance product. This kind of

customer orientation is necessary in a market like India, where the market in turning

competitive due to large number of players with varied financial musicale and

expertise of reinvestment. The small investors purchase behavior does not have a high

level of coherence due to the influence of different purchase factors. The buying intent

of a Life Insurance product by a small investor can be due to multiple reasons

depending upon customers risk return trade off. Due to the reduction in the bank

interest rates & high degree of volatility in Indian Stock Market, investors are looking

for an alternative for their small time as well as long time investment which will

provide them a higher return & also safety to their investment. The Stock market is

also passing through a recession due to interest parity with bank instruments. Thus

Life insurance offers the best alternative to small investors in India. A prudent

Product design, by adding the feature expected by investors and spelt out in this

research will make the new Life Insurance Product more attractive for investors. The

factor identified in the study provide key information inputs regarding investors

preference and priorities that will guide future Life Insurance Product Managers.

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The current state of insurance distribution in India is still in

flux. On one hand, insurers are awaiting regulations to be approved for brokerages

and bancassurance to be truly launched. On the other hand they are trying the

corporate model of intermediaries in addition to the traditional models in the market.

There is no right and wrong in all this. The success of marketing insurance depends

on understanding the social and cultural needs of the target

population, and matching the market segment with the suitable intermediary

segment. In addition a major segment of the Indian population has low disposable

income, meaning that every penny won will be obtained after a lot of persuasion and

the expected value for money is high.

As per the study conducted we found that-

Only 55% of people are aware about life insurance policy.

Majority of customers take life insurance policies for saving money followed

by future needs, security and rebate in Income Tax.

ICICI Prudential does maximum promotional activities than other insurance

companies.

HDFC SLIC provides better services followed by the other companies.

ICICI Prudential provides wide varieties of policies followed by other

insurance companies.

HDFC SLIC provides good return on maturity followed by other insurance

companies.

HDFC SLIC is most accepted company followed by other insurance

companies.

More than 60% respondent is satisfied by Insurance policy provided by

company.

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ICICI Prudential and HDFC SLIC are more preferred

by customers while purchasing policies in Bareilly city.

BIBLIOGRAPHY

Websites

www.newstoday.com

www.irdaindia.org

www.omkotakmahindra.com

www.hdfclifeinsurace.com

www.bajajallianz.com

www.iciciprulife.com

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Primary data --- Questionnaire

JournalsIRDA Journal

Books

Consumer behavior - shiffman and knauk

Research Methodology - C.R Kothari

Marketing Management - Phillip Kotler

QUESTIONNAIRE

Name:

Address : .

.

.

Contact No. : .

Occupation : ..

Salary:-

(1) 50000 to 100000 (2) 1,00,000 to 1,50,000

(3) 1,50,000 to 2,00,000 (4) 2,00,000 to 2,50,000

(5) 2,50,000 & Above

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Q1. Do you have Life Insurance Policy?

YES NO

Q2. What are major Priorities while taking any policy for you?

(a) Security (b) Future Needs

(c) Saving Money (d) Rebate in Income Tax

Q3. Which company offers you easy mode of payment?

(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

Q4. Which company offers you the affordable premium of insurance?


Q5. Which company carries out maximum promotional activities?


Q6. Which company offers you better services?


Q7. Which company offers wide variety of policies?


Q8. Which company does think, would be better to save money?


Q9. Which company does think, would be better for investment?


Q10. Which company offers you good return on maturity?


Q11. Which company do you think is better for your childrens future?


79


80/80

Q12. Which company offers you better money back policy?


Q13. Which company has better endowment policy?


icici prudential life-2

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