PROJECT REPORT ON

A STUDY OF ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

UNIVERSITY OF MUMBAI

MASTER OF COMMERCE
(Accountancy)
SEMESTER II
2015-16

SUBMITTED BY
Name: VIRAJ V. BALSARA

Roll No.: 32

PROJECT GUIDE
DR. NISHIKANT JHA

K.P.B HINDUJA COLLEGE OF COMMERCE

315, NEW CHARNI ROAD, MUMBAI-400 004

M.Com (Accountancy)
2nd SEMESTER

A STUDY OF ICICI PRUDENTIAL LIFE INSURANCE

CO. LTD.

SUBMITTED BY

008

VIRAJ BALSARA
Smt. P.D. Hinduja Trusts

Roll No.: 32

K.P.B. HINDUJA COLLEGE OF COMMERCE

315, New Charni Road, Mumbai 400 004 Tel.: 022- 40989000 Fax: 2385 93 97. Email:

NAAC Re-Accredited A

THE BEST COLLEGE OF UNIVERSITY OF MUMBAI FOR THE ACADEMIC YEAR 2010-2
Prin. Dr. Minu Madlani (M. Com., Ph. D.)

CERTIFICATE
This is to certify that Ms. VIRAJ V. BALSARA

of

M.Com (Accountancy)

Semester 2nd [2015-2016] has successfully completed the Project on A

STUDY ON ICICI PRUDENTAL LIFE INSURANCE CO. LTD. under the
guidance of DR. NISHIKANT JHA.

________________
Project Guide

________________
Co-coordinator

________________

________________

Internal Examiner

External Examiner

________________

________________

Principal

College Seal

DECLARATION
I Mr. VIRAJ V. BALSARA student of M.Com-Accountancy, 2nd semester
(2015-2016), hereby declare that I have completed the project on A STUDY
ON ICICI PRUDENTAL LIFE INSURANCE CO. LTD.

The information submitted is true and original copy to the best of our
knowledge.

(Signature)
Student

INDEX
SR. No
1
2
3
4
5
6
7

TOPIC

PAGES

CHAPTER 1: INTRODUCTION OF INSURANCE.

Everyone is exposed to various risks. Future is very uncertain, but there is way
to protect ones family and make ones childrens future safe. Life Insurance
companies help us to ensure that our familys future is not just secure but also
prosperous. Life Insurance is particularly important if you are the sole
breadwinner for your family. The loss of you and your income could devastate
your family. Life insurance will ensure that if anything happens to you, your
loved ones will be able to manage financially. This study titled Study of
Consumers Perception about Life Insurance Policies enables the Life Insurance
Companies to understand how consumers perception differs from person to
person. How a consumer selects, organizes and interprets the service quality and
the product quality of different Life Insurance Policies, offered by various Life
Insurance Companies.
Insurance is a tool by which fatalities of a small number are compensated out of
funds (premium payment) collected from plenteous. Insurance companies pay
back for financial losses arising out of occurrence of insured events e.g. in
personal accident policy death due to accident, in fire policy the insured events
are fire and other allied perils like riot and strike, explosion etc. hence insurance
safeguard against uncertainties. It provides financial recompense for losses
suffered due to incident of unanticipated events, insured with in policy of
insurance. Moreover, through a number of acts of parliament, specific types of

insurance are legally enforced in our country e.g. third party insurance under
motor vehicles Act, public liability insurance for handlers of hazardous
substances under environment protection Act. Etc.

1.1

WHAT IS INSURANCE?
It is a commonly acknowledged phenomenon that there are countless risks
in every sphere of life .for property, there are fire risk; for shipment of
goods. There are perils of sea; for human life there are risk of death or
disability; and so on .the chances of occurrences of the events causing losses
are quite uncertain because these may or may not take place. Therefore,
with this view in mind, people facing common risks come together and
make their small contribution to the common fund. While it may not be
possible to tell in advance, which person will suffer the losses, it is possible
to work out how many persons on an average out of the group, may suffer
losses. When risk occurs, the loss is made good out of the common fund .in
this way each and every one shares the risk .in fact they share the loss by
payment of premium, which is calculated on the likelihood of loss .in olden
time, the contribution make the above-stated notion of insurance.

1.2

DEFINITION OF INSURANCE:
Insurance has been defined to be that in, which a sum of money as a
premium is paid by the insured in consideration of the insurers bearings the
risk of paying a large sum upon a given contingency. The insurance thus is a
contract whereby:
a. Certain sum, termed as premium, is charged in consideration,

b. Against the said consideration, a large amount is guaranteed to be paid by

the insurer, who received the premium,
c. The compensation will be made in certain definite sum, i.e., the loss or
the policy amount which ever may be, and
d. The payment is made only upon a contingency
More specifically, insurance may be defined as a contact between two
parties, wherein one party (the insurer) agrees to pay to the other party (the
insured) or the beneficiary, a certain sum upon a given contingency (the
risk) against which insurance is required.

1.3

TYPES OF INSURANCE:
Insurance occupies an important place in the modern world because of the risk,
which can be insured, in number and extent owing to the growing complexity of
present day economic system. The different type of insurance have come about
by practice within insurance companies, and by the influence of legislation
controlling the transacting of insurance business, broadly, insurance may be
classified into the following categories:
I. Classification from business point of view
a) Life insurance, and
b) General insurance
II. Classification on the basis of nature of insurance
a) Life insurance
b) Fire insurance
c) Marine insurance
d) Social insurance, and
e) Miscellaneous insurance
III. Classification from risk point of view
a) Personal insurance
b) Property insurance
c) Liability insurance
d) Fidelity general insurance

1.4

IMPORTANCE OF INSURANCE:

Insurance benefits society by allowing individuals to share the risks faced by

many people. But it also serves many other important economic and societal
functions. Because insurance is available and affordable, banks can make loans
with the assurance that the loans collateral (property that can be taken as
payment if a loan goes unpaid) is covered against damage. This increased
availability of credit helps people buy homes and cars. Insurance also provides
the capital that communities need to quickly rebuild and recover economically
from natural disasters, such as tornadoes or hurricanes. Insurance itself has
become a significant economic force in most industrialized countries.
Employers buy insurance to cover their employees against work-related injuries
and health problems. Businesses also insure their property, including technology
used in production, against damage and theft. Because it makes business
operations safer, insurance encourages businesses to make economic
transactions, which benefits the economies of countries. In addition, millions of
people work for insurance companies and related businesses. In 1996 more than
2.4 million people worked in the insurance industry in the United States and
Canada. Insurance as an investment that offers a lot more in terms of returns,
risk cover & as also that tax concessions & added bonuses Not all effects of
insurance are positive ones. The possibility of earning insurance payments
motivates some people to attempt to cause damage or losses. Without the
possibility of collecting insurance benefits, for instance, no one would think of
arson, the wilful destruction of property by fire, as a potential source of money.

1.5

THE INSURANCE INDUSTRY TODAY:

Since the 1970s, the insurance business has grown dramatically and undergone
tremendous changes. As a result of the deregulation of financial services
businesses including insurance, banking, and securities tradingthe roles,
products, and services of these formerly distinct businesses have become
blurred. For instance, citizens in the U.S. state of California voted in 1988 to
allow banks to sell insurance in that state. In Canada, banks may also soon be
allowed to sell insurance. Advances in communications technology have also
allowed traditionally distinct financial businesses to keep instantaneous track of
developments in other businesses and compete for some of the same customers.
Some insurance companies now offer deposit accounts and mortgages. In the
United States, life insurance companies now sell more pension plans and other
asset management services than they do conventional life insurance.
Developments in computer technology that have given insurance providers the
ability to quickly access and process information have allowed them to customdesign policies to fit the needs of individual customers. But the increasing
complexity of policies has also made some aspects of buying and selling
insurance more difficult. In addition, improvements in geological and
meteorological technology have the potential to change the way property
insurers calculate risks of damage. For example, as scientists improve their
abilities to predict severe weather patterns, such as hurricanes, and geological

disturbances, such as earthquakes, insurers may change how they provide

protection against losses from such events

1.6

FEW LIFE INSURANCE POLICIES:

WHOLE LIFE POLICIES - Cover the insured for 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.
ANNUITIES / 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 predetermined time. These policies are best suited for planning children's future
education and marriage costs.
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