OVERVIEW OF CURRENT INSURANCE INDUSTRY

WHAT IS INSURANCE?

Insurance is a tool by which fatalities of a small number are compensated out of funds

(premium payment) collected from plenteous. Insurance is a safeguard against

uncertain events that may occur in the future. It is an arrangement where the losses

experienced by a few are extended over several who are exposed to similar risks. It is

a protection against financial loss arising on the happening of an unexpected event.

Insurance companies collect premium to provide security for the purpose. Loss is paid

out of the premium collected from people and the insurance companies act as trustees

to the amount so collected. These companies have proposal forms which are filled to

give details of insurance required. Depending upon the answers in the proposal form

insurance companies assess the risk and decide on the premium. Insurance companies

are risk bearers. They underwrite the risk in return for an insurance premium. the

function of insurance is to provide protection, prevent losses, capital formation etc.

hence insurance can be defined as a tool in which a sum of money as a premium is

paid by the insured in consideration of the insurers bearing the risk of paying a large

sum .it may also be defined as a contract wherein one party (insurer) agrees to pay the

other party (insured) or his beneficiary, a certain sum upon a given contingency

against which insurance is required. Insurance industry commands massive funds

through sales of insurance products to large number of clients. Insurers also create

liabilities and commit themselves to compensate for losses occurring to the

policyholders on future date. It also plays an important role in process of capital

formation.
NATURE OF INSURANCE

Risk sharing and risk transfer: Insurance is used to share the financial losses

that might occur to an individual or his family on the happening of specified

events. The loss arising from such events are shared by all the insured in the

form of premium. Example: suppose in a village, there are 250 houses, each

valued at Rs.200000. Every year one house gets burnt, resulting into a total

loss of Rs 200000.If all the 250 owners come together and contribute Rs.800

each, the common fund would be Rs200000.This is enough to pay to the

owner whose house gets burnt. Thus the risk of one owner is spread over 250

house owners of the village.

Risk assessment in advance: Insurance companies are risk bearers. They

assess the risk before insuring to charge the amount of premium.

Its not gambling or charity: The uncertainty is changed to certainty by

insuring property and life because the insurer promises to pay a definite sum at

damage or death. Insurance is antithesis of gambling. Failure of insurance

amounts to gambling because the uncertainty of loss is always looming.

Moreover insurance is not possible without premium. So it is different from

charity because charity is given without consideration.

Huge number of insured people: It is essential to insure larger number of

people or property to make cost of insurance less consequently premium

would also be less.

Assists in capital formation: Insurance provides capital to society.

Accumulative funds are invested in productive channels.

KEY TERMS

Risk: It is defined as an uncertainty of a financial loss. It is the unintentional

decline in or disappearance of value arising from contingency.

Policy: It is the document which embodies the insurance contract

Whole life policy: It is the policy under which the amount of policy will be

paid only on death of the insured. Premiums may be payable throughout the

life or for a limited period.

Endowment policy: Endowment policies entitle the insured to receive the

amount of the policy on his reaching a certain age and premiums also stops. If

death occurs earlier, amount of the policy will be paid at that time and

payment of premium will also stop at that time.

Claim: It is the amount which an insurer has to pay against a policy.

Reinsurance: It refers to placing a part of the risk by an insurer with another

insurer. The object is to reduce the possible loss to be borne by the original

insurer, who pays premiums at the ordinary rates to the reinsurer. Reinsure

must pay commission to the original insurer.

Premium: A periodic payment made on an insurance policy.

Insurance penetration: It is defined as insurance premium as a share of gross

domestic product.

Insurance density: Insurance density is defined as per capita expenditure on

insurance premium i.e. premium per capita.

Actuary: The actuary is a specialist who combines an understanding of risks

and mathematical technique to develop financial products to manage these

risks, price these products.

TYPES OF INSURANCE

Insurance is broadly divided in two segments, based on the nature of insurance, these

are:

1.) LIFE INSURANCE: It is an agreement between an insurance company and a

policyholder, under which the insurer guarantees to pay an assured some of money to

the nominated beneficiary in the unfortunate event of the policyholders demise

during the term of policy. This services sector offers immense opportunities for

expansion opportunities for expansion opportunities and the rural market, also, offers

tremendous growth opportunities for insurance companies.

2.) NON-LIFE INSURANCE: It can be again subdivided into two categories:

HEALTH INSURANCE: health insurance is an insurance policy that ensures

that you get cashless treatment or expense reimbursement, in case you fall ill.

It is a contract between a general insurance company and one, which considers

expenses incurred when availing treatment.

GENERAL INSURANCE: General insurance in India has been expecting

growth except in some portfolios like motor insurance, fire and engineering.

These portfolios are still under tariff- this means that premium depends on a

fixed predetermined rate structure. General Insurance has low market

penetration. It is 1.95% and ranks 51st. However in collection of premium it is

ranked 23rd. The main reason for the general insurance industry to perform

very poorly was because of the slow settlement of claims. Moreover the rates

of claim in India were highest in the world. It was 70 percent compared to 40

percent internationally. This meant that out of 100 people who had insured

their commodities 70 claimed for a loss or damage. The main reason for the

lack of demand for general insurance is that people consider it as an

 unnecessary expenditure. However it must be noted that the general insurance

has been earning consistent profits and has an efficient dividend paying record

accompanied by a steady growth in its financial resources.

Both life and non life, is likely to grow by over 200 percent, and private insurers are

expected to achieve a growth rate of 140 percent as a result of aggressive marketing

technique. It added that state owned insurance companies are likely to be 35-40

percent.
HISTORY OF INSURANCE INDUSTRY IN INDIA

The insurance industry in India over the past century has gone through big changes. In

India this industry reveals the 360 degree turn. 360 degree turn means that it started in

India from being an open competitive market to nationalization and back to a

liberalized market again. Insurance industry in India started as a fully private system

with no restriction on foreign participation in the Nineteenth Century. Before

independence, a few British insurance companies dominated the Market. Life

insurance was first set up in India through a British company called the Oriental Life

Insurance Company in 1818, followed by the Bombay Assurance Company in 1823

and the Madras Equitable Life Insurance Society in 1829. All of these companies

operated in India but did not insure the lives of Indians. They were there insuring the

lives of Europeans living in India. Some of the companies that started later did

provide insurance for Indians. But, they were treated as "substandard" and therefore

had to pay an extra premium of 20% or more. The first company that had policies that

could be bought by Indians with "fair value" was the Bombay Mutual Life Assurance

Society starting in 1871. The first general insurance company, Triton Insurance

Company Ltd., was established in 1850. It was owned and operated by the British.

The first general insurance company was the Indian Mercantile Insurance Company

Limited set up in Bombay in 1907.By 1938; the insurance market in India had nearly

176 companies (both life and non-life). After the independence, the industry went to

the other extreme. It became a state-owned monopoly. The industry started to witness

a problem like fraud. Hence many regulations were put in place to reduce and control

the problems in the industry. After which Insurance was nationalized. In 1956, the

then finance minister S. D. Deshmukh announced nationalization of the life insurance

business and then the general insurance business was nationalized in 1972.
OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

To compare the performance of ICICI with other competitors in the health

insurance industry.

SECONDARY OBJECTIVES

To identify the position ICICI holds among other private players.

To find out the strengths and weaknesses of the companys insurance

schemes

To study consumers awareness towards insurance products

To identify the customers perception about the company and its products.

To know about the various Investment alternatives that is mostly preferred

by the people.

To find out the important criteria that people think about before investing in

a life insurance policy.

To find out whether gender bias involved in investing life insurance or not.

To find out the awareness of ICICI Prudential Life Insurance among the

people.
SCOPE OF THE STUDY

This study has a wider scope among the insurance sector. The study which focuses on

various aspects such as competitive position of ICICI Prudential Life Insurance,

strengths and weaknesses of insurance covers, customers perception, etc also holds

good for other companies in the life and non-life insurance segment. The outcome of

the study, which are based on the above aspects can be utilized by the marketing

department of both life and non-life insurance companies.

The result of this research would help the company to have a better

understanding about the consumers perception towards life insurance.

The study helps the company by creating awareness about the consumers of

different ages and income levels.

The study also enables the company to focus the consumers preferences and

expectations on the product which they offer.

RESEARCH METHODOLOGY
Methodology is a systematic way of solving a problem it includes the research

methods for solving a problem it includes the research methods for solving the

problem.

Type of research - Descriptive research

Data source - Primary and Secondary data

Data collection method - Interview and survey

Data collection tools - Questionnaires

Sample size - 100

SAMPLE DESIGN

The target population of the study consists of various respondents of various places.

This survey was done by collecting the data from the respondents.

SAMPLE SIZE

After due consultation with the company supervisor as well as with the college guide,

also keeping in mind the requirements of the company for the research, the sample

size that was found to be appropriate for the study was 100.

SAMPLING TECHNIQUE

The sampling technique that adapted to conduct the survey was Convenient Random

Sampling and the area of the research was concentrated in the city of Erode only. The

survey was conducted by visiting different places like colleges, corporate offices,

respondents home etc...

DATA SOURCE

The task of data collection begins after a research problem has been defined. In this

study data was collected through both primary and secondary data source.
 A. PRIMARY DATA

A primary data is a data, which is collected for gathering information first time and to

analyze the problem. In this study the primary data was collected among the

consumers using questionnaire.

B. SECONDARY DATA

Secondary data consist of information that already exits somewhere, having been

collected for some other purpose. In this study secondary data was collected from

company websites, magazines and brochures.

STATISTICAL TOOLS

Simple percentage analysis, ranking method and chi square analysis are the main

statistical tool used for the study.

SIMPLE PERCENTAGE ANALYSIS

Percentage refers o a special king of ratio in making comparison between two or more

data and to describe relationships. Percentage can also be used to compare the relation

terms between two or more sources of data.

Percentage of respondents = Number of respondents * 100

Total respondents

RANKING METHOD (WEIGHTED AVERAGE METHOD)

This technique was used to rank out the opinion about the consumers preference

towards different investment alternatives. The order of merit given by the respondents

was converted into ranks by using the following formula.

Weightage Score = Wi * Xj

Where Wi = Weightage value and Xj = Ranking position value

CHI SQUARE TEST

Chi Square is a statistical measure used in the context of sampling analysis for

comparing the variance to a theoretical variance. In order to judge the significance of

association between two attributes, we make use of chi square test by finding the

values of chi square using the chi square distribution.

My project is based on Primary & Secondary modes of Data Collection.

COMPANY PROFILE

The Industrial Credit and Investment Corporation of India Limited (ICICI) was

formed in 1955 which is incorporated at the initiative of the World Bank, the

Government of India and representatives of Indian industry, with the objective of

creating a development financial institution for providing medium-term and long-term

project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first

Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency

loans to Indian industry. Besides funding from the World Bank and other multi-lateral

agencies, ICICI was also among the first Indian companies to raise funds from

international markets.

WHAT IS ICICI GROUP?

We are a part of the renowned ICICI Group, a diversified universal banking group,

with a track record of over 50 years in a variety of financial services.

ICICI was formed in 1955, as a result of the focused efforts of the World Bank,

the Government of India and the representatives of Indian Industry. Today, ICICI

Bank has grown to become Indias second largest bank, with over 24 million

customers worldwide. It is also the first bank from Asia (excluding Japan) to be

listed on the NYSE. ICICI Bank is a truly global bank, with presence at key

locations across the globe in Bahrain, Bangladesh, Belgium, Canada, China,

Dubai, Hong Kong, Indonesia, Malaysia, Russia, Singapore, South Africa, Sri

Lanka, Thailand, UK, USA and Quatar. ICICI Groups expertise spans a vast

range of financial services, including banking, broking, mutual funds, insurance,

home loans, venture funds and much more. The Group is the largest consumer

credit provider and the biggest private sector, life and general insurer in India.

Expertise across a vast range of products. All blended to bring you seamless financial
solutions that ensure you have the advantage in every financial decision. Wherever

you may be in the world.

STRUCTURE OF ICICI GROUP

OBJECTIVES OF ICICI GROUP

TRUST

We view each client relationship as a partnership for success. We regard your

financial needs as our own and aim to achieve your investment goals with you. We

put our best resources behind you to ensure that your investment objectives are more

than met.
 AGILITY

We seek to deliver superior value to you. We respond quickly and efficiently to

market opportunities, and offer the most apt financial solutions so that you can reap

the best possible benefits.

INNOVATION

We believe that the cornerstone of success in todays competitive environment is

Innovation. We seek newer opportunities constantly, to fulfill your emerging needs

and wants.

ICICI BANK

ICICI Bank is India's second-largest bank with total assets of Rs. 3,767.00 billion

(US$ 96 billion) at December 31, 2007 and profit after tax of Rs. 30.08 billion for the

nine months ended December 31, 2007. ICICI Bank is second amongst all the

companies listed on the Indian stock exchanges in terms of free float market

capitalization*. The Bank has a network of about 955 branches and 3,687 ATMs in

India and presence in 18 countries. ICICI Bank offers a wide range of banking

products and financial services to corporate and retail customers through a variety of

delivery channels and through its specialised subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and asset

management. The Bank currently has subsidiaries in the United Kingdom, Russia and

Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar

and Dubai International Finance Centre and representative offices in United Arab

Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our

UK subsidiary has established branches in Belgium.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited.

COMPANIES UNDER ICICI BANK

A. ICICI PRUDENTIAL AMC AND TRUST:

ICICI Prudential Asset Management Company enjoys the strong parentage of

prudential plc, one of UK's largest players in the insurance & fund management

sectors and ICICI Bank, a well-known and trusted name in financial services in India.

ICICI Prudential Asset Management Company, in a span of just over eight years, has

forged a position of pre-eminence in the Indian Mutual Fund industry as one of the

largest asset management companies in the country with assets under management of

Rs. 37,906.24 crore (as of March 31, 2007). The Company manages a comprehensive

range of schemes to meet the varying investment needs of its investors spread across

68 cities in the country.

Key Indicator:

During the year march 1998 Asset Under Management was Rs160 cores with only

two funds managed, as on February 29, 2008 now it raised up to Rs 62,008.95 cores

with 35 funds.

B. ICICI SECURITIES INDIAS LEADING INVESTMENT BANK

A subsidiary of ICICI Bank - the largest and most recognized private bank in India

ICICI Securities Ltd is premier Indian Investment Bank, with a dominant position in

its core segments of its operations - Corporate Finance including Equity Capital

Markets Advisory Services, Institutional Equities, Retail and Financial Product

Distribution With a full-service portfolio, a roster of blue-chip clients and

performance second to none, we have a formidable reputation within the industry.

The Corporate Finance team regularly ranks highest among the leading capital

markets league tables and recently topped the Prime Database League tables for funds

mobilized through equity instruments in the first half of CY 07.

ICICI Securities Inc., the step down wholly owned US subsidiary of the company is a

member of the National Association of Securities Dealers, Inc. (NASD). As a result of

this membership, ICICI Securities Inc. can engage in permitted activities in the U.S.

securities markets. These activities include Dealing in Securities and Corporate

Advisory Services in the United States and providing research and investment advice

to US investors. ICICI Securities Inc. is also registered with the Financial Services

Authority, UK (FSA) and the Monetary Authority of Singapore (MAS) to carry out

Corporate Advisory Services and Dealing in Securities.

C. ICICI VENTURE

ICICI Venture is one of the largest and most successful private equity firms in India

with funds under management in excess of USD 2 billion. ICICI Venture, over the

years has built an enviable portfolio of companies across sectors including

pharmaceuticals, Information Technology, media, manufacturing, logistics, textiles,

real estate etc thereby building sustainable value. It has several firsts to its credit in

the Indian Private Equity industry. Amongst them are Indias first leveraged buyout

(Infomedia), the first real estate investment ( Cyber Gateway), the first mezzanine

financing for a acquisition (Arch Pharmalabs) and the first royalty-based structured

deal in Pharma Research & Development (Dr Reddys). ICICI Venture is a subsidiary

of ICICI Bank, the largest private sector financial services group in India.
 D. ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between

ICICI Bank Limited and the Canada based $ 26 billion Fairfax Financial Holdings

Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings

is a diversified financial corporate engaged in general insurance, reinsurance,

insurance claims management and investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one

of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance

Company received regulatory approvals to commence general insurance business in

August 2001.

E. ICICI PRUDENTIAL LIFE INSURANCE COMPANY

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

premier financial powerhouse, and Prudential plc, a leading international financial

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

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

after receiving approval from Insurance Regulatory Development Authority (IRDA).

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

premier financial powerhouse, and Prudential plc, a leading international financial

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

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

after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 37.72 billion (as on February, 2008) with

ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the nine

months period April 1 to December 31, 2007, the company garnered new business

weighted premium of Rs. 4,586 crore and has underwritten around 18 lakh policies
during the period. The company has assets held over Rs. 28,000 crore. ICICI

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

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

rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to

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

years, ICICI Prudential Life has retained its leadership position in the life insurance

industry with a wide range of flexible products that meet the needs of the Indian

customer at every step in life.

a) VISION

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

people and service.

This we hope to achieve by:

Understanding the needs of customers and offering them superior products and

service

Leveraging technology to service customers quickly, efficiently and

conveniently

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our

employees

And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core

values ,Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the
values describe what the company stands for, the qualities of our people and the way

we work.

b) VALUES

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

Customer First, Boundary less, Ownership, and Passion. These values shine forth in

all we do, and have become the keystones of our success.

DEPARTMENTS AND BRANCHES OF ICICI PRUDENTIAL LIFE

INSURANCE COMPANY LIMITED

Branches:

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

insurers in India. It has a strong presence across India with over 945 branches in

addition to 550 micro-offices and an advisor base of 270,000.

Distribution Network:

There are four different ways of distributing a Life insurance product namely;

1. Agents (Financial Advisors):- Anybody possessing the minimum qualification of

10+2 after completing 100 hrs of training from the training institute approved by

IRDA can sell life insurance products of any particular company which has sponsored

him to take the training. This is the most popular distribution channel.

2. Corporate Agents Any corporate may apply for license to sell insurance after

complying with the requirements of IRDA.

3. Bancassurance If the corporate agent is a bank, and then it is known as

bancassurance. Banks can sell the policies to their existing as well as prospective

clients. This is becoming quite popular these days and the bank earns huge fund based

income. Bancassurance has 1% share in total premium collection in 2004-05.

4. Broker They are like corporate agents with only difference that they can sell the

products of more than one insurance company.

Departments:

The various departments that can be seen in an insurance organization and that has

been observed by me are as follows:

a) Marketing Department: This department mainly deals with the marketing

and promotion part of the Insurance Company. They spend most of their time

in formulating strategies to make their products known to the common people

and to promote the same in a easy and cost effective way.

b) Sales Department: This department mainly deals with the sales part of the

Insurance Company; the department includes designations like Sales Manager

and Financial Advisor who personally contacts with people for performing the

task of sales of various products.

c) Accounts/ Financial Department: This department has the task of keeping

track of the various expenses incurred by the various other departments of the

organization and also performs the task of allocating various funds to different

departments according to their requirements.

d) Human Resource Department: This department is handled by the Human

Resource manager of the company. The function of this department involves

the well being of the employees of the company, I,e, to see whether there is

employee grievance in the organization or not and if it is there what are the

possible causes for that and also try to find out solutions for the same if

possible.

e) Investment Department: This department deals with the task of investing the

money of the policy holders in such way that will ensure both safety of the
 money and also a steady return on the same. The task of this department is

very difficult as it deals with the money given by the policy holders, so it

requires lot of thinking on the part of the personnel of this department before

deciding where to invest the money.

f) Actuarial Department: This department is under the supervision of an

Actuary who decides the premiums and charges to be taken from the policy

holder on the basis of certain informations (like Age, Annual Income etc.)

provided by the prospective customer. The task also involves the calculation

of mortality charges which requires high statistical knowledge from ones

point of view. So, this department involves in the calculation of various

amounts to be charged from the prospective customers.

ICICI PRUDENTIAL LIFE INSURANCE PRODUCTS

Insurance Solutions for Individuals

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

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

protection along with adequate returns.

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 Gold & 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 6 fund options - Preserver, Protector,

Balancer, Maximiser, Flexi Growth and Flexi Balanced.

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 Cashbak is a unit linked plan that provides premium guarantee

on the invested premiums along with flexible liquidity options.

LifeStage RP is a unique and powerful wealth creation insurance solution,

which combines the benefits of automatic asset allocation and quarterly

rebalancing along with increased protection.

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.

Education insurance plans

 Education insurance under the SmartKid brand provides guaranteed

educational benefits to a child along with life insurance cover for the parent

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

important 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 5 annuity options (life

annuity, life annuity with return of purchase price, joint life last survivor

annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15

years & for life thereafter, joint life, last survivor annuity without return of

purchase price) 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.

PremierLife Pension is a unique and convenient retirement solution with a

limited premium paying term of three or five years, to suit professionals and

businessmen, especially those who require more flexibility and customization

while planning their finances.

Health Solutions

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.

Cancer Care Plus: is a wellness plan that includes all the benefits of Cancer

Care and also provides an additional benefit of free periodical cancer

screenings.

Diabetes Care: Diabetes Care is a unique critical illness product specially

developed for individuals with Type 2 diabetes and pre-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.

Diabetes Care Plus: is a unique insurance policy that provides an additional

benefit of life cover for Type 2 diabetics and pre-diabetics

Hospital Care: is a fixed benefit plan covering various stages of treatment -

hospitalisation, ICU, procedures & recuperating allowance. It covers a range

of medical conditions (900 surgeries) and has a long term guaranteed coverage

upto 20 years.

Crisis Cover : is a 360-degree product that will provide long-term coverage

against 35 critical illnesses, total and permanent disability, and death.

Group Insurance Solutions

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

enhance benefits to their employees.

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.

PRODUCT PROFILE

Marine Insurance

ICICI peudentials brings to India a wide range of marine cargo products from various

international markets. Their products considerably widen the scope of coverage

presently enjoyed by the insured population without necessarily involving a high

premium.

Burglary insurance

Burglary Insurance for machinery, stock in trade, furniture, fixtures & fittings and for

goods held in trust or on commission for the insured is responsible. Burglary

Insurance covers burglary or housebreaking accompanied by either forcible or violent

entry into/exit from the premises and hold-up.

Engineering Insurance:

Erection All Risks Insurance

The Erection All Risks policy is a comprehensive insurance, which provides complete

protection against all types of risks associated with erection, testing, commissioning

of machinery, plant and equipment during constructional stage.

Boiler & Pressure Plant Insurance

It covers the risk of explosion and collapse of any boiler or other pressure plant in the

course of ordinary working.

Contractor's All Risks Insurance

All types of civil engineering works, ranging from small buildings to massive dams

are exposed to damage from a wide range of causes such as fire, lightning, flood,
inundation, storm, cyclone and other accidental damages. It is a comprehensive

insurance which provides complete protection against all types of civil construction

risks.

Machinery Breakdown Insurance

A COMPANY extends its hand offering Machinery Breakdown Insurance Cover ably

supported by most capable technocrats to throw more light about the mechanical side

of all machines.

Marine-Cum-Erection Insurance

It is developed as a comprehensive product to manage the risk and insurance needs in

course of erection as well as during transit. It is a combination of Erection-All-Risks

and Marine Insurance to cater to the needs of the client where Marine/Transit

insurance is connected with Erection All Risks Insurance of any project.

Contractor's Plant & Machinery

Contractor's Plant & Machinery is an exclusive all risks policy covering the plant &

machinery used by the contractors at the site for various projects. It covers the

property whether they are at work or at rest or being dismantled for the purpose of

cleaning or overhauling, or in the course of operations or when being shifted within

the premises or during subsequent re-erection, but in any case only after successful

commissioning.

Liability Insurance:

Product Liability Insurance

Liability arises from a civil wrong or breach of personal duty imposed by law on a

person and owed to his/her fellow citizens. In some countries legal rights and duties
are framed in a Civil Code. In others they are not codified but drawn from the

precedent of decisions handed down in the courts over the centuries; this is known as

"Common Law".

Workmen's Compensation Insurance

It provides Insurance against occupational accident or disease to an employee whilst

in course of his employment.

Public Liability Act

It provides indemnity against the Insured's liability at law to the public in general

(excluding employees) for bodily injury and loss of or damage to property due to the

business activities carried on in insured's premises.

Business solutions:

Industrial All Risks Policy

Its a wide and comprehensive cover for the large sized business where the assets at

all locations of the insured exceed Rs.100 Corers. It is an All Risks Policy covering a

wide range of perils such as fire and allied perils, burglary, accidental damage,

breakdown as well as business interruption.

Office Shield

A flexible policy specifically designed to meet the insurance needs of your modern

office, irrespective of the number of locations.

Hotel Shield

Tailor-made cover designed to suit the specific needs of the Hotel Industry.

Enterprise Shield.
It is a newly devised package providing total insurance solutions for industries. You

do not need to analyze and evaluate a large number of insurance policies to insure

your business completely.

Education Shield

Tailor-made cover designed to suit the specific needs of Education Industry.

Traders Shield

It is an attractive policy that provides shopkeepers with a basic insurance package and

a further range of optional covers.

All Risks Policy for Portable Equipments

It offers an overall solution to cover portable items like laptops, mobiles, cameras and

projectors.

Standard Fire and Special Perils Policy

It offers cover against fire and allied perils and the perils of nature. The policy can

cover building (including plinth and foundation), plant and machinery, stocks,

furniture, fixtures and fittings and other contents.

Consequential Loss (Fire) Insurance

It provides protection against loss of profits in business due to an interruption in

business consequent upon an insured peril covered under the material damage policy.

Employee solutions:

Group Personal Accident Policy

It is a worldwide cover providing protection for the employees against any accidental

injuries sustained by the individuals resulting in death and disablement.

 Group Health

Health Premium Platinum is a comprehensive health insurance package, designed for

the employees of company and their family members.

Workmen's Compensation

Workmen's Compensation provides cover to target clients as required by law in

support to project insurances or property insurances.

ANALYSIS AND INETERPRETATION

Market share of LIC and Private Players

Market Players Market share in

percentage

Private players 28.44

LIC 71.56

Total 100

Interpretation:

LIC market share continued to decline in the period up to June 2007, it declined to

71.56% from 78.23% in the same period last year. On the other hand the market share

of the private players is continuously growing up; it increased to 28.44% from

21.77% in terms of insurance premium.

Market share of LIC and Private Players

Market share of LIC and Private Players up to

June 2007

28.44%

Private Players
LIC

71.56%
Market Share among Private players

Private players Market share in Market share

percentage change in

percentage

ICICI Prudential 29 4

Bajaj Allianz 21 1

SBI Life 10 0

HDFC Standard 9 1

Reliance Life 9 0

Birla Sunlife 5 -1

Kotak Mahindra 3 0

Old Mutual

Met Life 3 1

Aviva 3 0

Tata AIG 3 1

Max New York 2 -4

ING Vysya 2 -1

Bharti Axa Life 1 0

Sahara Life 0 0
 Shriram Life 0 -1

Private total 100

Interpretation:

ICICI PRUDENTIAL BECOMES THE MARKET LEADER AMONG

PRIVATE PLAYERS:

ICICI Prudential strengthens its position at the top of the heap by increasing its

market share by 4% in the month of Jan 2008, followed by Bajaj Allianze with 21%

market share. These two private players contribute 50% of the total insurance market

among the private players.

Market Share among Private players

 Market share among private players ICICI Prudential
Bajaj Allianz
5%
SBI Life
9% 3% HDFC Standard
9%
3% Reliance Life
3% Birla Sunlife
10% 2% Kotak Mahindra
3%
Met Life
5% Aviva
2%
Tata AIG
21% 1% Max New York
0% ING Vysya
29% Bharti Axa Life
0%
Sahara Life
Shriram Life
Sales Growth among Private players

Private players Year to year

growth in sales in

percentage

ICICI Prudential 116

Bajaj Allianz 105

SBI Life 138

HDFC Standard 88

Reliance Life 335

Birla Sunlife 152

Kotak Mahindra 121

Old Mutual

Met Life 125

Aviva 60

Tata AIG 100

Max New York 40

ING Vysya 74

Bharti Axa Life 362

Sahara Life 238

Shriram Life 91
Private total 119
Interpretation:

Private sector sales continued to be robust at 119% year to year (YoY), up from 118%

YoY last month. The month also saw LIC make up some lost ground by growing

faster than the system at 133% YoY. Among the larger players, Reliance, SBI Life

and Birla Sun Life continued to be the rising stars with the fastest YoY growth rates.

Sales Growth among Private players

Various investment alternatives available to consumers

Let us see what are the various investment alternatives that are available to the people

and among that which are the most preferred one. Now, from the data collected from

the 100 respondents which were surveyed through the questionnaire, the following

representation can be made:

Investment Total Rank

Alternatives score

Bank Deposits 6.75 I

Insurance 6.46 II

Post office 5.57 III

Gold & Silver 5.33 IV

Real Estate 5.07 V

Mutual fund 4.83 VI

Equity/Shares 3.84 VII

Public Provident 3.78 VIII

Fund(PPF)

Bond & Debentures 1.74 IX

Interpretation:
From the above table-2.5 it can be seen that ranks for theses investment

alternatives where analyzed by weighted average method. From this analyze we

found Bank Deposits is the most preferred investment alternative among the

people with the average of 6.75, secondly Insurance with the average of 6.46,

followed by other investment alternatives like Post Office (5.57), Gold and Silver

(5.33), Real Estate (5.07), Mutual Fund (4.83), Equity (3.84), PPF (3.78) and least

preferred alternative is that Bond and Debenture (1.74).we understood from this

analyze that people prefer the safe and secure investment alternatives like bank

deposits, insurance, real estates, than risky investment alternatives like bonds,

equities etc.. The reason that can be attributed for the liking of people towards

bank deposit is that people expect safety for their money they deposit even though

there is less appreciation on their deposit. Secondly insurance, may be because

that insurance provides both life cover as well as security to the holder of the

policy and also to the family members of the insurance holders. Now a days

insurance is also providing option to invest in the markets through plans like

ULIP, which gives the holder both the life cover as well as an opportunity to earn

income at the market rate. Then recently real estate is the major investment

alternative among the people particularly among Erode, this is mainly due to the

increase in land value and also good long term investment preference. Gold and

silver also good investment alternative among people due to the frequent

appreciation in the values of gold, next is that mutual fund which is also the

preferable investment alternative due to low risk on their investment, and other

alternatives which are not much preferred were equities, bonds etc. mainly due to

the risk involved in it.

Various investment alternatives available to consumers

Investment Alternative Preffered by people Bank Deposits

Insurance
7 6.75
6.46
Post office
6 5.575.33
5.074.83 Gold & Silver
5
Total scores

4 3.843.78 Real Estate

3 Mutual fund
2 1.74
Equity/Shares
1
Public Provident
0 Fund(PPF)
Investment Alternatives Bond &
Debentures

FINDINGS
3.3 FINDINGS

The findings that can be drawn from the survey conducted by us can be summarized

in the following way:

a) Bank Deposits are the most preferred investment alternative which is available

to people followed by alternatives such as Insurance, Real Estate, Gold and

Silver, Mutual etc.

b) It was found that 61 respondents were willing to take a life insurance under

LIC and 33 respondents under ICICI Prudential Life Insurance.

c) Among the 76 insurance holders 63 have policy of LIC whereas only 11

respondents have policy of ICICI Prudential Life Insurance.

d) Only 47% of the total respondents are aware of the joint venture between

ICICI bank with Prudential of UK to form a company called ICICI Prudential

Life Insurance in the year 2000. 22 respondents are interested to invest in

ICICI because of the companys growth potential and brand image that ICICI

has.

e) The scheme mostly preferred by insurance holders was life protection schemes

like death benefits followed by money growth plans like wealth creation and

high return plans.

f) It was found that nearly 50% of the respondents usually save less than 15%

and the kind of investment mostly preferred by the respondents were both long

and short term.

g) According to the survey safety is the most important criterion which is

excepted among all the respondents towards their investment alternatives

followed by Return, Brand Name, Tax Benefits, Liquidity and Capital Growth.

h) According to the study company image is to be the highly important criteria

which we consider before taking up a life insurance this is mainly because

people expect safety and security for their money which they invest, followed

by the factor Premium which we pay to the insurer and then Bonus and

Interest paid by the company, services etc.

i) People who belong to different age groups have different perception regarding

the most important criteria before taking the decision on a life insurance

policy.

j) People who belong to different income groups also have different perception

regarding the important criteria concerned with the life insurance.

3.4 SUGGESTIONS

1. Consumer should be aware of companys profile and returns associated with

insurance.

2. The Financial advisor should be right enough to serve the consumers. The

consumer

should also be aware of the advisor or others who is looking after their investments.

3. Company should publish their performance by comparing it with their competitors.

4. Company should adopt strategies to explore that private insurance companies are

safer and securer than public insurance company like LIC.

5. Middle income people suggest that premium can be collected on monthly basis

instead

of twice a year.

6. Companys reputation is more important because bad impression on image or

brand name is considered while decision making among consumers.

3.5S CONCLUSION

Insurance is a tool by which fatalities of a small number are compensated out

of funds collected from plenteous. Insurance is a safeguard against uncertain events

that may occur in the future. Over the last 5 to 6 years, the ICICI Prudential life

insurance company have tripled investors money than the other competent, this

progress leads to increase the company image and makes a way to lead the total

insurance market.
 Thus the study also comprise company image is the highly important criteria

that consumers consider before taking up a life insurance. This is mainly because

people expect safety and secure for their money which they invest, followed by the

factor Premium which we pay to the insurer and then Bonus and Interest paid by the

company, services etc.

Bibliography

Books & Magazines

Kothari, C.R, "Research Methodology" Wishwa Prakashan,

Delhi, 2004

Sawyer, A.G and Howard, David J, Journal of Marketing

Research 1999

Business World and Business India Magazine

Varshney, P.N Banking law and Practice

Websites

http://www.google.co.in/

http://www.en.wikipedia.org/
 http://www.rbi.org/

http://www.ekikrat.in/

http://www.seminarprojects.com/

http://www.scribd.com/

http://www.indiatimes.com/

http://www.wikianswers.com/

http://www.slideshare.net/