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    A

    PROJECT

    ON

    TO STUDY THE BEHAVIORAL PATTERN OF THEINVESTORS FOR LIFE INSURANCE

    FOR

    ICICI PRUDENTIAL LIFE INSURANCE

    COMPANY LTD.

    PATAN

    Submitetd to

    Dr. Ashwin Modi

    ( Faculty member )

    S.K School of Business Management

    Hemchandracharya North Gujarat University, Patan.

    (In Partial fulfillment of the Requirement for the subject of'Entrepreneurship Development And Project Mgt as a part ofSemester-II in Post Graduate Diploma In Financial Services

    Management'.)

    SUBMITTED BY :-

    Tejas Soni (36)

    Ashwin Chaudhary (15)

    Nima Patel (22)

    Sunita Prajapati (27)

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    ACKNOWLEDGEMENT

    On this occasion, I would also like to thank to all those people who have

    helped me directly or indirectly during my project work.

    I would like to thank Our H.O.D. Mr. Nishit Bhatt who has given me

    such opportunity which will help me in my future. I am also very thankful to my

    project guide Mr. Ashwin Modi for providing the full guidance during my

    project work and motivated me through out the fulfillment of my project.

    I am very thankful to ICICI Prudential Life Insurance Company Limited

    for giving me the opportunity to undergo training in their esteemed organization.

    I would like to thank to Mr. Sunil Patel the channel development

    manager of ICICI Prudential Life Insurance Company Limited -Patan and Mr.

    Mehul Parmar the Unit manager of ICICI Prudential Life Insurance Company

    Limited -Patan for giving me training in my project.

    And at last but not the least I also express my sincere thanks to all my

    respondents, without their cooperation and help; I could not be able to complete

    my study.

    Tejas Soni

    Ashwin

    Chaudhary

    Nima Patel

    Sunita Prajapati

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    EXECUTIVE SUMMARY

    The project topic assigned to me was To study the behaviour pattern

    of Investors for Life insurance at ICICI Prudential Life Insurance Company

    Ltd, Surat.

    The sample size was 50. The data was collected through contacting

    personal Interview. The approach to interview was questionnaire. Analysis

    includes the behavior pattern of the investors. At the time of investment

    actually what they keep in mind to invest money. How they approach to life

    insurance.

    This report talks about the behavioral pattern of the investors in life

    insurance policies. While building up the report there are various things,

    which we have found out like there are many people who are interested in

    investing in life insurance policies for reasons like education for children, tax

    benefits, increasing wealth and many more.

    This study will also throw light on how their profile affect the behavior

    pattern of the investors.

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    TABLE OF CONTENTS

    No. Contents Page No.1 Industry Profile

    2 Company Profile

    3 Research Methodology

    Research objective

    Research design

    Sources of data

    Research approach

    Research instrument

    Sampling plan

    Limitations

    4 Data Analysis

    5 Conclusion

    6 Annexure

    7 Bibliography

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    BRIEF HISTORY OF INSURANCE

    Life Insurance in its modern form came to India from England in the year 1818. Oriental

    Life Insurance Company started by Europeans in Calcutta was the first life insurance

    company on Indian Soil. All the insurance companies established during that period were

    brought up with the purpose of looking after the needs of European community and

    Indian natives were not being insured by these companies. However, later with the efforts

    of eminent people like Babu Muttylal Seal, the foreign life insurance companies started

    insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy

    extra premiums were being charged on them. Bombay Mutual Life Assurance Society

    heralded the birth of first Indian life insurance company in the year 1870, and covered

    Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives,

    insurance companies came into existence to carry the message of insurance and social

    security through insurance to various sectors of society. Bharat Insurance Company

    (1896) was also one of such companies inspired by nationalism. The Swadeshi movement

    of 1905-1907 gave rise to more insurance companies. The United India in Madras,

    National Indian and National Insurance in Calcutta and the Co-operative Assurance at

    Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company

    took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath

    Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later

    Bombay Life) were some of the companies established during the same period. Prior to

    1912 India had no legislation to regulate insurance business. In the year 1912, the Life

    Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance

    Companies Act, 1912 made it necessary that the premium rate tables and periodicalvaluations of companies should be certified by an actuary. But the Act discriminated

    between foreign and Indian companies on many accounts, putting the Indian companies

    at a disadvantage.

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    The first two decades of the twentieth century saw lot of growth in insurance business.

    From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176

    companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming

    of insurance companies many financially unsound concerns were also floated which

    failed miserably. The Insurance Act 1938 was the first legislation governing not only life

    insurance but also non-life insurance to provide strict state control over insurance

    business. The demand for nationalization of life insurance industry was made repeatedly

    in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance

    Act 1938 was introduced in the Legislative Assembly.

    However, it was much later on the 19th of January, 1956, that life insurance in

    India was nationalized. About 154 Indian insurance companies, 16 non-Indian companiesand 75 provident were operating in India at the time of nationalization. Nationalization

    was accomplished in two stages; initially the management of the companies was taken

    over by means of an Ordinance, and later, the ownership too by means of a

    comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act

    on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st

    September, 1956, with the objective of spreading life insurance much more widely and in

    particular to the rural areas with a view to reach all insurable persons in the country,

    providing them adequate financial cover at a reasonable cost.

    Some of the important milestones in the life insurance business in India:

    1818: Oriental Life Insurance Company, the first life insurance company on

    Indian soil started functioning.

    1870: Bombay Mutual Life Assurance Society, the first Indian life insurance

    company started its business.

    1912: The Indian Life Assurance Companies Act enacted as the first statute to

    regulate the life insurance business.

    1928: The Indian Insurance Companies Act enacted to enable the government to

    collect statistical information about both life and non-life insurance businesses.

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    1938: Earlier legislation consolidated and amended to by the Insurance Act with

    the objective of protecting the interests of the insuring public.

    1956: 245 Indian and foreign insurers and provident societies are taken over by

    the central government and nationalised. LIC formed by an Act of Parliament,

    viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the

    Government of India.

    The General insurance business in India, on the other hand, can trace its roots to the

    Triton Insurance Company Ltd., the first general insurance company established in the

    year 1850 in Calcutta by the British.

    The Indian insurance industry is segmented into two distinct markets: the life insurancemarket and the non-life, or general, insurance market. The history of life insurance in

    India can be traced from 1818.

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    THE KEY FEATURES OF LIFE INSURANCE INDUSTRY

    Nomination: -When one makes a nomination, as the policyholder you continue to be the

    owner of the policy and the nominee does not have any right under the policy so long as

    you are alive. The nominee has only the right to receive the policy monies in case of your

    death within the term of the policy.

    Assignment :-If your intention is that your policy monies should go only to a particular

    person, you need to assign the policy in favor of that person

    Death Benefit: -The primary feature of a life insurance policy is the death benefit it

    provides. Permanent policies provide a death benefit that is guaranteed for the life of the

    insured, provided the premiums have been paid and the policy has not been surrendered.

    Cash Value: -The cash value of a permanent life insurance policy is accumulated

    throughout the life of the policy. It equals the amount a policy owner would receive, after

    any applicable surrender charges, if the policy were surrendered before the insured's

    death.

    Dividends: -Many life insurance companies issue life insurance policies that entitle the

    policy owner to share in the company's divisible surplus.

    Paid-Up Additions: -Dividends paid to a policy owner of a participating policy can be

    used in numerous ways, one of which is toward the purchase of additional coverage,

    called paid-up additions.

    Policy Loans: -Some life insurance policies allow a policy owner to apply for a loan

    against the value of their policy. Either a fixed or variable rate of interest is charged. This

    feature allows the policy owner an easily accessible loan in times of need or opportunity.

    Conversion from Term to Permanent: -When in need of temporary protection,

    individuals often purchase term life insurance. If one owns a term policy, sometimes a

    provision is available that will allow her to convert her policy to a permanent one without

    providing additional proof of nsurability.

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    Disability Waiver of Premium

    Waiver of Premium is an option or benefit that can be attached to a life insurance policy

    at an additional cost. It guarantees that coverage will stay in force and continue to grow.

    THE BENEFITS OF LIFE INSURANCE

    Risk cover: -Life Insurance contracts allow an individual to have a risk cover against any

    unfortunate event of the future.

    Tax Deduction: - Under section 80C of the Income Tax Act of 1961 one can get tax

    deduction on premiums up to one lakh rupees. Life Insurance policies thus decrease the

    total taxable income of an individual.

    Loans: - An individual can easily access loans from different financial institutions by

    pledging his insurance policies.

    Retirement Planning: - What had provided protection against the financial

    consequences of premature death may now be used to help them enjoy their retirement

    years. Moreover the cash value can be used as an additional income in the old age.

    Educational Needs: - Similar to retirement planning the cash values that flow from ones

    life insurance schemes can be utilized for educational needs of the insurer or his children.

    ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

    The Life Insurance Industry has an enviable track record among public sector units. It has

    a Consistent profit and dividend paying record accompanied by a steady growth in its

    financial resources. Through investments in the Government sector and socially- oriented

    sectors the Industry has contributed immensely to the nation's development. The industry

    is recognized as one of the largest financial Institutions in the country. The ventures

    initiated by the industry in the areas of Mutual Fund, Housing Finance has done

    exceedingly well in recent years. To protect the country's foreign exchange reserves, the

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    reinsurance arrangement are so organized that maximum retention is made possible

    within the country while at the same time protecting interests of the policy holders.

    INDIA AGAINST THE GLOBAL MARKETS

    India is an under-insured market Indias insurance market is still at an early stage of

    development. This is reflected in low penetration rates and low premiums per capita.

    Insurable population only 10% of Indias population have life insurance According

    to ING only 10% of the population is insured, which represents around 30% of the

    insurable population. This suggests more than 300m people, with the potential to buy

    insurance, remain uninsured

    Global perspective India ranks 19th on the global stage

    India represents only around 0.66% market share (ranked 19th) of global insurance

    premiums. As of 2004 the largest markets in size are the US (50x bigger than India),

    Japan and the UK. Out of the Asian countries (ex Japan), South Korea is the largest

    insurance market, Comprising 2.12% of global premiums, followed by China with

    1.61%.

    While insurance continues to reach out to the masses, Indias insurance penetration

    (premiums as a percentage of GDP) still remains very low at 3.2%. This can be split

    between life penetration of 2.6% and non-life of 0.6%. On the world stage, penetration

    rates are significantly below developed markets such as the US (9.4%), UK (12.6%) and

    Australia (8%). Compared with Asian markets, India still falls well short of its nearest

    peers with countries such as Japan, South Korea and Taiwan having some of the highest

    penetration rates in the world (between 9% and 14%). Nevertheless, despite current low

    spend on insurance, the trends in India remain positive. Since the opening up of the

    market to foreign players in 2000, penetration has more than doubled from 1.5%. With

    foreigners gaining momentum and building the insurance, coupled with Indias favorable

    macro overlay, we expect penetration rates to continue to expand.

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    FUTURE OF LIFE INAURANCE SCHEMES

    The Indian Life insurance sector will register a high growth rate in the future years to

    come says the report prepared by Fitch Ratings. This will be due to the innovative

    products, better distribution network, better services coupled with other never-before

    changes that have taken place in the insurance sector.

    In Nov 2005 the Indian Life insurance industry saw a growth of 46 %. This rally is

    expected to continue as people realize the importance of risk management. The private

    sector players are expected to grow with their innovative and profitable life insurance

    schemes.

    INSURANCE REGULATORY AUTHORITY

    On the recommendation of Malhotra Committee, an Insurance Regulatory Development

    Act (IRDA) passed by Indian Parliament in 1993. Its main aim was to activate an

    insurance regulatory apparatus essential for proper monitoring and control of the

    Insurance industry.

    Due to this Act several Indian private companies have entered into the insurance market,

    and some companies have joined with foreign partners. In economic reform process, the

    Insurance Companies has given boost to the socio-economic development process. The

    huge amount of funds that are at the disposal of Insurance Companies are directed as

    desired avenues like housing, safe drinking water, electricity, primary education and

    infrastructure. Above all the policyholders gets better pricing of products from

    competitive insurance companies.

    Liberalization

    The opening up of Insurance sector was a part of the ongoing liberalization in the

    financial sector of India. The domain of State-run insurance companies was thrown open

    to private enterprise on December 7, 1999, with the introduction of the Insurance

    Regulatory and Development Authority (IRDA) Bill. The opening up of the sector gave

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    way to the world known names in the industry to enter the Indian market through tie-ups

    with the eminent business houses. What was once a quiet business is becoming one of the

    hottest businesses today.

    Post liberalization

    The changing face of financial sector and the entry of several companies in the field of

    Life Insurance segment are one of the key results of these liberalization efforts. Insurance

    business by way of generating premium income adds significantly to the GDP. Despite

    the fact that the market is vast in India for the Insurance business, the coverage is far less

    compared with the international standards. Estimates show that a meager 35-40 million,

    out of a population of 950 million, have come so far under the umbrella of the insurance

    industry. The potential market is so huge that it can grow by 15 to 17 per cent per annum.

    With the entry of private players, the Indian Insurance Market may finally be able to

    make deeper penetration in to newer segments and expand the market size manifold. The

    quality of service will also improve and there will be wide The Life insurance market in

    India is likely to be risky in the initial stages, but this will improve in the next three to

    five years Therefore, it may be advantageous to be a second-round entrant. In the Life

    insurance market the need risk assessment systems and data that are the key to success in

    the Life insurance market are significantly underdeveloped in India even today.

    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 private sector. Although LIC has been

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

    started to take the momentum.

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    Major market players

    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 the first eight months of FY 2005-06 is 73.91%.

    ICICI Prudential Life Insurance

    ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. It is a

    private sector company. The company was registered on 24/11/2000. The market share

    for the first eight months of FY 2005-06 is 7.11%.

    Birla Sun Life Insurance Company

    Birla Sun Life Insurance Company is a 74:26 joint venture between Birla group and Sun

    Life Financial. It is a private sector company. The company was registered on 31/1/2001.

    The market share for first the eight months of FY 2005-06 is 1.84%.

    HDFC Standard

    HDFC standard is a 74:26 joint venture between HDFC and Standard Life. It is a private

    sector company. The company was registered on 23/10/2000. The market share for the

    first eight months of FY 2005-06 is 2.96%.

    OM Kotak Mahindra old Mutual

    OM Kotak Mahindra is a 74:26 joint venture between Kotak Mahindra bank and OldMutual. It is a private sector company. The company was registered on 10/1/2001. The

    market share for the first eight months of FY 2005-06 is 0.71%.

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    Royal Sundaram

    Royal Sundaram marks the coming together of Sundaram Finance, one of Indias most

    respected and trusted finance companies, and Royal and Sun Alliance, one of the largest

    insurance groups in the world.

    Max New York Life

    Max New York Life is a 74:26 joint venture between J & Bank, Pallonji & Co and

    MetLife. It is a private sector company. The company was registered on 6/8/2001. The

    market share for the first eight months of FY 2005-06 is 1.32%.

    AMP SANMAR

    Amp Sanmar was purchased by Reliance group in 3Q2005. It was registered as a private

    sector insurance company on 3/1/2002.The market share for the first eight months of FY

    2005-06 is 0.54%.

    Aviva Life Insurance India

    Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. It is a private

    sector company. The company was registered on 14/5/2002. The market share for the

    first eight months of FY 2005-06 is 1.12%.

    ING Vysya Life insurance

    ING Vysya Life Insurance is joint venture between Exide (50%), Gujarat Cements

    (14.87%), Enam (9.13%) and ING (26 %). It is a private sector company. The company

    was registered on 2/8/2001. The market share for the first eight months of FY 2005-06 is

    0.63%.

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    Met Life India

    Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank, Pallonji &

    Co and MetLife. It is a private sector company. The company was registered on 6/8/2001.

    The market share for the first eight months of FY 2005-06 is 0.40%.

    Allianz Bajaj Life Insurance Co.

    Allianz Bajaj Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto

    limited and Allianz AIG. The company was registered on 3/8/2001.The market share for

    the first eight months of FY 2005-06 is 6.12%.

    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 the first eight months of FY 2005-06 is 1.52%.

    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 the first eight

    months of FY 2005-06 is 1.78%.

    Sahara India Life Insurance Company Ltd.

    First Wholly Indian Owned Private Life Insurance Company. The Company commenced

    operations from 30th October 2004.

    Shriram life insurance company Ltd

    Shriram Life is a recent entrant into the life insurance sector It is a 74:26 joint venture

    between the Shriram group through its Shriram Financial Holdings and Sanlam Life

    Insurance Limited, South Africa. The company expects to start operations soon.

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    PRODUCT RANGE

    Life insurance is all about making sure your family has adequate financial resources to

    make those plans and dreams come true. It provides financial protection to help your

    family or business to manage after your death.

    Whole life policies - Cover the insured for entire life. The insured does not receive

    money while he is alive; the nominee receives the sum assured plus bonus upon death of

    the insured.

    Endowment policies - Cover the insured for a specific period. The insured receives

    money on survival of the term and is not covered thereafter.

    Money back policies - The nominee receives money immediately on death of the

    insured. On survival the insured receives money at regular intervals during the term.

    These policies cost more than endowment with profit policies.

    Children's policies - The nominee receives a guaranteed amount of money at a pre-

    determined time and not immediately on death of the insured. On survival the insured

    receives money at the same pre-determined time. These policies are best suited for

    planning children's future education and marriage costs.

    Annuities/Pension schemes - are policies that provide benefits to the insured only upon

    retirement. If the insured dies during the term of the policy, his nominee would receive

    the benefits either as a lump sum or as a pension every month.

    Since a single policy cannot meet all the insurance objectives, one should have a portfolio

    of policies covering all the needs.

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    THE MAJOR DISTRIBUTION CHANNELS

    Retail Banks

    While a lot of bank relationships with insurance companies have been established, lifeinsurance sales have been slower than one would expect he primary bank insurance

    activities have been the distribution of annuities, credit life, and direct marketing

    insurance. Banks are failing to incorporate successful sales tactics used to sell other

    financial services like investments.

    Full-Service Brokers

    Brokerage firms have gained much of the institutional and personal trust business lost bythe banks. These firms have steadily captured assets, primarily at the expense of the

    banks. The number of non-bank trust companies has increased in recent years as

    independent trust companies have emerged and more broker/dealers are integrated

    services. Insurance companies view full-service brokers as a potentially new distribution

    channel as well.

    Discount Brokers and Online Financial Services

    Direct sales of life insurance are growing rapidly, but many of the traditional full-serve

    players seem to be letting it go. Across all financial services, consumers are expressing a

    willingness to deal with a variety of providers on the web. Web sites are starting to pop

    up offering consumer insurance products especially designed for distribution over the

    web.

    Independent Advisors

    To gain a better understanding of the demand amongst independent advisors for trust

    services and to gain a better feel for how independent advisors handle trust services, a

    research was performed with independent advisors across several broker/dealers and

    custodians. The interviews revealed that demand is greatest for living trusts among

    independent advisors, followed by demand for corporate trustee services.

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    Life Insurance Agents, CPAs, & Lawyers

    Independent insurance agents represent a number of companies and can research these

    companies products to find the right combination for their clients. Independent agents &

    insurance producer groups are growing in prevalence. Although producer groups are in

    their infancy, their emergence may potentially be realignment in the distribution of

    financial services. Independent shops realized that by pooling production and funding a

    central support office, they had increased buying power.

    PERFORMANCE

    A robust 36 per cent increase in business by country's largest insurer LIC and strong

    performance by most of the private players pushed the overall life insurance growth to 46

    per cent in April-November 2005. With competition intensifying, the 14 life-insurers

    collected Rs 16,604 crores in new premium in the first eight months of 2005-06

    compared to Rs 11,337 crores in the year ago period, according to data compiled by

    regulator IRDA. State-owned Life Insurance Corporation gave a tough fight to private

    players, who were fast increasing their market share, to collect Rs 12,271 crores in new

    premium by selling over 1.3 crores policies.

    The 13 private players led by ICICI Prudential and Bajaj Allianz are leaving no stones

    unturned to expand business by netting more policyholders to increase their market share.

    Among private players, ICICI Prudential ranked at the top by collecting about Rs 1,180

    crores after logging 73 per cent growth, followed by Bajaj Allianz, which increased

    business by 264 per cent to collect Rs 1,016 crores in premium. ICICI Prudential had a

    market share of 7.11 per cent while Bajaj Allianz increased its market pie to 6.12 per

    cent.

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    HDFC Standard Life had a market share of 2.96 per cent, followed by Birla Sunlife (1.84

    per cent), Tata AIG (1.78 per cent), SBI Life (1.52 per cent), Max New York Life (1.32

    per cent) and Aviva (1.12 per cent). Other players -- Kotak Mahindra Old Mutual, ING

    Vysya, AMP Sanmar, Met Life and Sahara Life -- each had less than one per cent of the

    market.

    HDFC Standard collected Rs 491 crores in premium income till November, followed

    Birla Sunlife (Rs 305 crores), Tata AIG (Rs 296 crores), SBI Life (Rs 252 crores), Max

    New York Life (Rs 219 crores) and Aviva (Rs 186 crores).

    In group insurance, LIC continued to dominate with a market share of about 81.32 per

    cent by covering 8.638 million lives till November this fiscal. Among the private

    insurers, SBI Life was at the top with a market share of 5.27 per cent, followed by Tata

    AIG (4.16 per cent), ICICI Prudential (2.34 per cent), Met Life (1.9 per cent), Aviva

    (1.16 per cent) and Bajaj Allianz (1.14 per cent).

    First Year Premium Underwritten By Life Insurers For The Period Ended November

    2005

    l.No Insurer Market Sahre(%)

    1 LIC 73.91

    2 Bajaj Allianz 6.12

    3 ING Vysya 0.63

    4 AMP Sanmar 0.54

    5 SBI Life 1.52

    6 Tata AIG 1.78

    7 HDFC Standard 2.96

    8 ICICI Prudential 7.11

    9 Birla SunLife 1.8410 Aviva 1.12

    11 Kotak Mahnidra Old Mutual 0.71

    12 Max New York 1.32

    13 Met Life 0.40

    14 Sahara Life 0.06

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    COMPANY PROFILE

    India's Number One private life insurer, ICICI Prudential Life Insurance Company isa joint venture between ICICI Bank-one of India's foremost financial services

    companies-and Prudential plc- a leading international financial services group

    headquartered in the United Kingdom. Total capital stands at Rs. 18.15 billion, with

    ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

    They began their operations in December 2000 after receiving approval from

    Insurance Regulatory Development Authority (IRDA). Today, the PruICICI having

    nation-wide team comprises, about 450 branches, over 150,000 insurance advisors

    and 18 bancassurance partners.

    ICICI Prudential was the first life insurer in India to receive a National Insurer

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

    VISION:

    To make ICICI Prudential the dominant Life and Pensions player built on trust by

    world-class people and service.

    IT WILL BE ACHIEVED THROUGH:

    Understanding the needs of customers and offering them superior products and

    service

    Leveraging technology to service customers quickly, efficiently and

    conveniently

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    Developing and implementing superior risk management and investment

    strategies to offer sustainable and stable returns to our policyholders

    Providing an enabling environment to foster growth and learning for our

    employees

    building transparency in all their dealings.

    VALUES:

    Every member of the ICICI Prudential team is committed to 5 core values: Integrity,

    Customer First, Boundaryless, Ownership, and Passion.

    ABOUT COMPANIES

    ICICI Bank is India's second largest bank and largest private sector bank with

    assets of Rs. 2823.72 billion as on September 30, 2006. ICICI Bank provides a broad

    spectrum of financial services to individuals and companies. This includes

    mortgages, car and personal loans, credit and debit cards, corporate and

    agricultural finance. The Bank services a growing customer base through a multi-

    channel access network which includes over 635 branches and extension counters,

    2325 ATMs, call centers and Internet banking.

    Prudential

    Established in London in 1848, Prudential plc, through its businesses in the UK and

    Europe, the US and Asia, provides retail financial services products and services to more

    than 21 million customers, policyholder and unit holders worldwide. As of June 30, 2006,

    the company had over 234 billion in funds under management. Prudential has brought to

    market an integrated range of financial services products that now includes life assurance,

    pensions, mutual funds, banking, investment management and general insurance. In Asia,

    Prudential is the leading European life insurance company with a vast network of 23 life

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    and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia,

    Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

    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 largest distribution networks amongst private life insurers

    in India. As of December 31, 2006 it had commenced operations in over 360 cities and

    towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in

    the north to Trivandrum in the south, and had over 175,000 advisors.

    The company has 18 bancassurance partners, having tie-ups with ICICI Bank, Bank of

    India, Federal Bank, South Indian Bank, Lord Krishna Bank, all regional rural banks

    sponsored by Bank of India, as well as some co-operative banks. It has also tied up with

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

    Products

    ICICI Prudential Life Insurance offers a range of innovative, customer-centric products

    that meet the needs of customers at every life stage. Its products can be enhanced with up

    to 4 riders, to create a customized solution for each policyholder.

    Savings & Wealth Creation Solutions CashPlus is a transparent, feature-packed

    savings plan that offers 3 levels of protection as well as liquidity options.

    Save'n'Protect is a traditional endowment savings plan that offers life protection

    along with adequate returns.

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    CashBak is an anticipated endowment policy ideal for meeting milestone

    expenses like a child's marriage, expenses for a child's higher education or

    purchase of an asset. It is available for terms of 15 and 20 years.

    LifeTime Super & LifeTime Plus are unit-linked plans that offer customers the

    flexibility and control to customize the policy to meet the changing needs at

    different life stages. Each offer 4 fund options - Preserver, Protector, Balancer and

    Maximiser.

    LifeLink Super is a single premium unit linked insurance Plan which combines

    life insurance cover with the opportunity to stay invested in the stock market

    Premier Life Gold is a limited premium paying plan specially structured for

    long-term wealth creation.

    InvestShield Life New is a unit linked plan that provides premium guarantee on

    the invested premiums and ensures that the customer receives only the benefits of

    fund appreciation without any of the risks of depreciation.

    InvestShield Cashbakis a unit linked plan that provides premium guarantee on

    the invested premiums along with flexible liquidity options.

    Protection Solutions

    LifeGuard is a protection plan, which offers life cover at low cost. It is available

    in 3 options - level term assurance, level term assurance with return of premium

    & single premium.

    HomeAssure is a mortgage reducing term assurance plan designed specifically to

    help customers cover their home loans in a simple and cost-effective manner.

    Child Plans

    Education insurance under the SmartKid brand provides guaranteed

    educational benefits to a child along withlife insurance cover for the parent who

    purchases the policy. The policy is designed to provide money at important

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    milestones in the child's life. SmartKid plans are also available in unit-linked

    form - both single premium and regular premium.

    Retirement Solutions

    ForeverLife is a traditional retirement product that offers guaranteed returns for

    the first 4 years and then declares bonuses annually.

    LifeTime Super Pension is a regular premium unit linked pension plan that helps

    one accumulate over the long term and offers an annuity option (guaranteed

    income for life) at the time of retirement.

    LifeLink Super Pension is a single premium unit linked pension plan.

    Immediate Annuity is a single premium annuity product that guarantees income

    for life at the time of retirement. It offers the benefit of 5 payout options.

    Health Solutions

    Health Assure and Health Assure Plus: 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 actual medical expenses.

    Health Assure Plus offers the added advantage of an equivalent life insurance

    cover.

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

    as well as at different stages in the treatment of various cancer conditions.

    Diabetes Care: Diabetes Care is the first ever critical illness product specially for

    individuals with Type 2 diabetes. It makes payments on diagnosis on any of 6

    diabetes related critical illnesses, and also offers a coordinated care approach to

    managing the condition. Diabetes Care Plus also offers life cover.

    Group Insurance Solutions

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    ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance

    benefits to their employees.

    Group Gratuity Plan: ICICI Pru's group gratuity plan helps employers fund their

    statutory gratuity obligation in a scientific manner. The plan can also be customized tostructure schemes that can provide benefits beyond the statutory obligations.

    Group Superannuation Plan: ICICI Pru offers both defined contribution (DC) anddefined benefit (DB) superannuation schemes to optimise returns for the members of the

    trust and rationalise the cost. Members have the option of choosing from various annuity

    options or opting for a partial commutation of the annuity at the time of retirement.

    Group Immediate Annuities: In addition to the annuities offered to existing

    superannuation customers, we offer immediate annuities to superannuation funds not

    managed by us.

    Group Term Plan: ICICI Pru's flexible group term solution helps provide affordable

    cover to members of a group. The cover could be uniform or based on designation/rankor a multiple of salary. The benefit under the policy is paid to the beneficiary nominated

    by the member on his/her death.

    Flexible Rider Options

    ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginalcost, depending on the specific needs of the customer.

    Accident & disability benefit: If death occurs as the result of an accident during

    the term of the policy, the beneficiary receives an additional amount equal to the

    rider sum assured under the policy. If the death occurs while traveling in an

    authorized mass transport vehicle, the beneficiary will be entitled to twice the sum

    assured as additional benefit.

    Critical Illness Benefit: protects the insured against financial loss in the event of

    9 specified critical illnesses. Benefits are payable to the insured for medical

    expenses prior to death.

    Income Benefit: This rider pays the 10% of the sum assured to the nominee every

    year, till maturity, in the event of the death of the life assured. It is available on

    SmarKid and CashPlus.

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    Waiver of Premium: In case of total and permanent disability due to an accident,

    the future premiums continue to be paid by the company till the time of maturity.

    This rider is available with LifeTime Super, LifeTime Super Pension and

    CashPlus

    RESEARCH METHODOLGY

    To study the behavioral pattern of the investors for life insurance.

    OBJECTIVES OF THE STUDY

    Research Objectives:

    1. To study the consumer preference for life insurance in general.

    2. To better know how the consumers profile affects their investment decision in

    insurance.

    3. To understand the positioning of life insurance products.

    RESEARCH DESIGN

    Marketing research can be classified in one of three categories:

    Exploratory research

    Descriptive research

    Causal research

    Descriptive research is more rigid then exploratory research and seeks to describe users

    of a product, determine the proportion of the population that uses the product, or predict

    the future demand for a product. As opposed to exploratory research, descriptive research

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    should define questions, people surveyed, and the method of analysis prior to beginning

    data collection. In other words the, who, what, where, when, why and how aspects of the

    research should be defined. Such preparation allows the opportunity to make any required

    changes before the costly process of data collection has begun.

    There are two basic types of descriptive research: longitudinal studies and cross sectional

    studies. Longitudinal studies are time series analyses that make repeated measurements of

    the same individuals, thus allowing one to monitor behavior such as brand switching.

    However, longitudinal studies are not necessarily representative since many people may

    refuse to participate because of the commitment required. Cross sectional studies sample

    of the population to make measurements at a specific point of time. A special type of

    cross sectional analysis is a cohort analysis, which tracks an aggregate of individuals who

    experience the same event within the same time interval overtime. Cohort analyses are

    useful for long term forecasting of product demand.

    This research is Descriptive Research as this research is based on secondary data

    collected

    DATA COLLECTION

    Researcher has two options in order to collect the data. He can gather secondary data,

    primary data, or both.

    PRIMARY DATA

    Primary data are data that freshly gathered for a specific purpose or for a specific

    research project.

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    The primary data is collected through the systematic market research survey. This survey

    conducted through questionnaire, which have predefined specific objective questions.

    The 150 respondents are contacted within the Surat city.

    Again the informal interview is also taken for more in-depth to topic to the same

    respondents.

    SECONDARY DATA

    Before going through the time and expenses of colleting primary data, one should check

    for secondary data that previously may have been collected for other purposes but that

    can be used in the immediate study. Secondary data may be internal to the firm, such assales invoices and warranty cards, or may be external to the firm such as published data

    or commercial available data. The government census is a valuable source of secondary

    data.

    SECONDARY DATA SOURCES

    The secondary data are data that were collected for another purpose and already existsomewhere. The secondary I used in my research are from the following Books and sites:

    The data collected from the following websites,

    www.iciciprulife.com

    www.irdaindia.org

    Other sources of secondary data,

    Various Brochers of ICICI Prudential Life Insurance.

    LIMITATIONS

    1. As this study is based on sample survey, therefore there might be chances of some

    little variation from census survey.

    http://www.irdaindia.org/http://www.irdaindia.org/
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    2. Some of data are highly sensitive, therefore some of respondents might give

    wrong information about their personal detail viz. Income

    3. This survey is conducted within Patan city; therefore it might not be generalized

    for other cities.

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    ANALYSIS AND INTERPRETATION

    (1) How much amount of money do you invest annually?

    10000-20000 20000-30000

    30000-50000 more than 50000

    Annualy Investment

    48%

    26%

    18%

    8%

    10000-2000020000-3000030000-50000Above 500000

    Interpretation:

    From the Above Graph we can say that 26% of the respondents invest between

    20000-30000, where 48% respondents invest between 10000-20000. 18%

    respondents between 30000-50000 and only 8% respondents invest above50000.

    Amount

    Investing Respondent Percentage (%)

    10000-20000 24 48

    20000-30000 13 26

    30000-50000 09 18

    Above 500000 04 08

    Total 50 100

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    (2) For what purpose do you invest?

    For child education and marriage

    For increase wealth

    For financial securities

    Planning for retirement Long-term returns

    Tax saving

    Any other, please specify

    Investment Purpose

    8%

    28%

    12%4%

    30%

    18%Child education

    Increase in

    wealthFor financial

    securitiesRetirement

    Long term

    returnTax saving

    Purpose Respondent Percentage

    Child education 04 08%

    Increase in wealth 14 28%

    For financial securities 06 12%Retirement 02 04%

    Long term return 15 30%

    Tax saving 09 18%

    Total Respondents 50 100

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    Interpretation:

    From the Above Graph we can say that the purpose of most of respondents

    was to invest for increasing wealth and long term return. The percentageswere 28% and 30 % respectively. 28% respondents invest for increase in

    wealth. 04%, 30% and 12% respondents were investing for planning for

    retirement, long term return and for financial securities respectively.

    (3) Where do you invest your money?

    Bank FD Mutual fund

    Post office deposit Insurance

    Shares Any other, please specify

    Where to Invest

    26%

    16%

    14%

    24%

    20%Bank FD

    Mutual fund

    Post office

    deposite

    Insurance

    Shares

    Interpretation:

    Age group Respondent Percentage

    Bank FD 13 26%

    Mutual fund 08 16%

    Post office deposite 07 14%

    Insurance 12 24%

    Shares 10 20%

    Total 50 100

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    from the above graph we can say that out of 50 respondents 13 respondents invest

    in F.D. 07 invests in post office deposit. 12 in insurance and 08 in mutual fund. and10 invest in Shares.

    (4) Name the insurance company that you are aware of?

    LIC

    ICICI Prudential

    Bajaj- Alliance

    TATA-AIG

    Reliance life Birla sun life

    HDFC standard life

    Company Respondent Percentage

    Bajaj Allianz Life Insurance 38 76.00%

    ICICI Prudential life Insurance 42 84.00%

    TATA- AIG 34 68.67%

    Reliance Life Insurance 26 52.00%

    LIC 50 100.00%

    84.00%

    68.67%

    52.00%

    100.00%76.00%

    Bajaj Allianz Life

    Insurance

    ICICI Prudential

    life Insurance

    TATA- AIG

    Reliance Life

    Insurance

    LIC

    Interpretation:

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    From the above graph we can say that LIC is the having the 100% awareness where

    42 respondents were aware of ICICpru. 38 respondents were aware of Baja-alliance

    and 34 were aware of TATA- AIG, where 26 were aware of reliance life.

    (5) Have you invested in any life insurance policy?

    Yes No

    Invest in insurance

    70%

    30%

    Yes

    No

    Interpretation:

    From the above graph we can say that 70% from the respondents were having the

    insurance policy where 30% respondents had not insurance policy.

    Policy holder Respondent Percentage (%)

    Yes 35 70

    No 15 30

    Total 50 100

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    From the above graph we can say that 31 % of them having Policy for both purpose

    where 38% of the respondents were used to invest for insurance cover only and

    31% were used to invest for investment purpose.

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    (7) In you family, who all posses an insurance cover?

    My self

    Spouse

    Children

    Parents Grand children

    who posses insurance

    29%

    27%

    15%

    25%

    4%

    My self

    Spouse

    Children

    Parents

    Grand Children

    Interpretation:

    From the above graph we can say that 35 respondents have the policy for theirselves as well as their children, spouse, parents and grandchildren.

    Gender Respondent

    My self 32

    Spouse 30

    Children 17

    Parents 28

    Grand Children 04

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    (08) At present are you interested in investing into life insurance policy?

    Yes No

    Interested in Investing in Life Insurance

    82%

    18%

    Yes

    No

    Interpretation:

    From the above graph we can say that 82% right who wants to invest in Life

    insurance. And 18% were not ready to invest right now.

    Gender Respondent Percentage (%)Yes 41 82

    No 09 18

    Total 50 100

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    (09) Choose the insurance policy in which you would like to invest?

    Investment only

    Insurance only

    Both

    Investment pattern

    18%

    23%59%

    Investment only

    Insurance Only

    Both

    Interpretation:

    From the above graph we can say that those who wants to invest most of them

    59% wants invest for both the purpose Investment as well as insurance. Where

    23% wants to invest for insurance purpose only and 18% wants to invest forInvestment purpose only.

    Gender Respondent Percentage (%)

    Investment only 09 18

    Insurance only 11 23

    Both 29 59

    Total 50 100

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    Personal Information :-

    (1) Gender:

    Male Female

    Gender of respondent

    90%

    10%

    Male

    Female

    Interpretation:

    Form the above graph we can say that 90 % respondents are Male and 10%

    respondents are Female.

    Gender Respondent Percentage (%)

    Male 45 10

    Female 05 90

    Total 50 100

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    (2) Age Group:

    Below 25 25-35 35-45 45-55 Above 55

    Age group of Respondent

    2%

    68%

    20%

    8% 2%Below 25

    25-35

    35-45

    45-55

    Above 55

    Interpretation:

    Form the above graph we can say that 68 % respondents are between the age of 25-35

    and 20% respondents are between 35-45. There were 02% respondents below 25,

    08% between 45-55 and only 2% respondents were above 55 in my survey.

    Age group Respondent Percentage (%)

    Below 25 01 02

    25-35 35 68

    35-45 10 20

    45-55 04 08

    Above 55 01 02

    Total 50 100

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    (3) Marital Status: Married Unmarried

    Gender of Respondent

    76%

    24%

    Married

    Unmarried

    Interpretation:

    Form the above graph we can see that 76 % respondents are married and 24 %

    respondents are unmarried.

    Marital Status Respondent Percentage (%)Married 38 76

    Unmarried 12 24

    Total 50 100

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    FINDINGS

    In the survey it is found that among the private playerICICI prudential is doing well in the insurance sector.

    People are Interested in investing in ICICIpru than other

    private insurance company.

    Most of the respondents having the income between 60000-

    150000 and they usually investing in the different policy.

    89 of the respondents have already invested indifferent plan

    of insurance.

    123 of the respondents are really interested in investing inInsurance.

    People Who have invested in Insurance most of them are

    having the plan which includes the purpose of Investment

    as well as Insurance cover

    Most of the respondents have the policy for their selves as

    well as their family members.

    The purpose of investment of most of the respondent was

    for the Child education and the Tax benefit.

    Although there are some respondents who invest for

    increase in wealth and financial security ad retirement

    solution.

    Most of the respondents have their investment in the Bank

    FD, and post office deposit.

    Some of the them also investing in mutual funds and

    insurance also.

    In the survey it is found that most of the respondents were

    having the services as their occupation.

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    SUGGESTIONS

    People still doubt the private companies whether they

    provide return or not and their money will safe or not.

    Company should improve the quality f the adviser so

    that they can provide full information to the customers.

    People still investing in the bank FD and post. To

    capture that market company should come with the

    product, which is more safe and having good returncapacity.

    Company should also give more focus on professionals

    and the businessman who can be the more profitable for

    the company.

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    CONCLUSION

    After survey its known that people want to invest in

    the ULIPs than other policy. the reason is that it

    gives reasonable return with lore safety than otherplan of Private insurance players.

    People should be given more knowledge about thebenefit of the insurance.

    As the trust on private player is less the companyshould work on the getting the full trust of all the

    people.

    Because of insecurity in private companies people

    invest in the bank FD and Post office deposit.

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    BIBLIOGRAPHY

    WEBSITES:

    www.irdaindia.com

    www.icicibank.com

    www.iciciprulife.com

    www.prudential.co.uk

    BOOKS REFFERED:

    Business Research Methodology

    Author : Donald Cooper & Pamela Schindler

    Publisher : TATA - Mcgraw hill

    Year of Publication : 2003

    Marketing Management

    Author : Philip kotler

    Publisher : prentice hall

    Year of Publication : 2006

    http://www.irdaindia.com/http://www.maxnewyorklife.com/http://www.prudential.co.uk/http://www.irdaindia.com/http://www.maxnewyorklife.com/http://www.prudential.co.uk/