On
Preface
An Industrial, Business or service organization by taking up a project
study is most important part of our M.B.A course & is must as per the syllabus
prescribed by Saurashtra University. Our MBA course is of administrative and
managerial activity of industrial, Business or service organization. The main
objective of this project study is to help the student to develop ability to
practical technique to solve real life problem related industrial. Business or
Service organization.
According to the rules, I have taken my summer training in ICICI
Prudential Life Insurance. Our gardeners, professors and banks sum
managers gives the knowledge and guidance of this bank to us.
The summer training programmed for student of M.B.A Sam-III training
is for two months in the time of summer vacation theoretically knowledge and
class room discussion is not sufficient for the student but training given them
practical and day to day working of bank.
In this project report I had tried to analyze the needs of the customers
and suggest them the most suitable insurance solution. As well as I also
analyzed the brand awareness among the people.
ACKNOWLEDGEMENT
To take training is a part of our MBA programming and is an important
part. Training quit valuable and important aspect to provide practical
knowledge student of management studies.
It was very useful and experience which I got during my training in
ICICI Prudential Life Insurance.
I was able to prepare this training report with the co-operation of various
people.
First of all I am very much thankful to in charge Director and professor
of our institute
our professor Miss Vishva Kasundra who has given me an opportunity and
she has helped me very much in preparing the report by her guidance
Thanking you
(Hitesh J. vachhani)
(MBA-III)
DECLARATION
I undersigned Mr. hitesh j.vachhani The student of MBA Sam III here by
declare that the project work in my own work and has been carried out under
the guidance of Mrs Vishva Kasundra madam of R.K. College of Business
Management of Studies in Rajkot. This Report has been submitted to Saurashtra
University for Evaluation.
Date:
Place: Rajkot
Hitesh J. vachhani
T ABLE OF C ONTENT
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Particulars
Executive Summary
Nature of Insurance & Definition
Characteristics of Insurance
Introduction of Insurance Company
Life Insurance Company at a glance
Retail Market Share: Private Players
Introduction of ICICI Prudential
Prudential Plc
ICICI Life Insurance
Management
ICICI Prus Products
Finance Department
Marketing Department
Operation Department
Human Resource Department
Research Methodology
Questionnaire
Conclusion
SWOT Analysis
Bibliography
Page No.
7
9
13
17
22
27
31
34
35
36
39
44
58
62
65
78
89
93
95
97
The economy is highly influenced by the Financial System of the country. The Indian
Financial System has been broadly divided into two segments: the organized and the
unorganized. An investor has a wide array of investment avenues available. Economic well
being in the long run depends significantly on how wisely he invests.
0
For todays complex financial scenario a Mutual Fund is the ideal investment option. Markets
for other investment avenues have become information driven. The Mutual Fund Industry in
India began with the setting up of the Unit Trust of India (UTI) in 1964 by the Government of
India. Ever since then this industry has witnessed numerous changes and growth. In 1987
public sector banks and insurance companies were permitted to set up mutual funds.
R.K.College of Business Management
Securities Exchange Board of India (SEBI) formulated the Mutual Fund (Regulation) 1993,
which for the first time established a comprehensive regulatory framework for the mutual
fund industry. Since the private and joint sectors and the share of the private players have set
up then several mutual funds has risen rapidly.
When investors are confronted with an astounding range of products, from traditional bank
deposits to downright shady money-multiplier schemes, it has to be judged on the yardsticks
of return, liquidity, safety, convenience and tax efficiency.
Life Insurance
General Insurance
10
GENERAL DEFINITION
The general definitions are given by the social scientists & they
consider insurance as a device to protection against risks, or a
provision against inevitable contingencies or a co-operative device
of spreading risks. Some of such definitions are given below:
In the words of Ghosh & Agarwal , Insurance is a cooperative form of distributing a certain risk over a group of
persons who are exposed to it.
FUNDAMENTAL STATEMENT
These are based on economic or business oriented since it is a
device providing financial compensation against risk or
misfortune.
11
12
13
Sharing of Risks
Insurance is a co-operative device to share the burden of risk,
which may fall on happening of some unforeseen events, such as
the death of head of the family, or on happening of marine perils or
loss of by fire.
Co-operative Device
Insurance is a co-operative form of distributing a certain risk over
a group of persons who are exposed to it (Ghosh & Agarwal). A
large number of persons share the losses arising from a particular
risk.
Evaluation of Risk
For the purpose of ascertaining the insurance premium, the volume
of risk is evaluated, which forms the basis of insurance contract.
Payment of happening of specified event
On happening of specified event, the insurance company is bound
to make payment to the insured. Happening of the specified event
is certain in life insurance, but in the case of fire, marine or
accidental insurance, it is not necessary. In such cases, the insurer
is not liable for payment of indemnity.
Amount of payment
The amount of payment in indemnity insurance depends on the
nature of losses occurred, subject to a maximum of the sum
insured. In life insurance, however, a fixed amount is paid on the
happening of some uncertain event or on the maturity of the policy.
Large number of insured persons
The success of insurance business depends on the large number of
persons insured against similar risk. This will enable the insurer
to spread the losses of risk among large number of persons, thus
keeping the premium rate at the minimum.
Insurance is not a gambling
Insurance is not a gambling. Gambling is illegal, which gives gain
to one party & loss to the other. Insurance is a valid contract to
R.K.College of Business Management
14
A contract
Insurance is a legal contract between the insurer & insured under
which the insurer promises to compensate the insured financially
within the scope of insurance policy, & the insured promises to pay
a fixed rate of premium to the insurer.
R.K.College of Business Management
15
16
17
Nationalization
1956
1995
June
2000
August
2000
October
2000
2002
18
Above are few but strong reasons, which have contributed towards
nationalization of insurance sector, and then after in the year 1956,
all insurance companies were merged in to one and Life Insurance
Corporation of India came into existence.
Till the year 1999, LIC of India was the only insurance sector in
economic market with ever-increasing growth rate and market
share with the capacity to earn high rate of profit and thus
R.K.College of Business Management
19
1.00
0.36
0.08
0.28
Billion
Billion
Billion
Billion
0.66 Billion
20
110
111
12.02.2001
30.03.2001
21
22
23
Objectives of LIC
Maximize mobilization of peoples savings by making
insurance linked savings adequately attractive. Conduct
business with utmost economy & with the full realization that
the moneys belong to the policyholders.
24
25
26
27
As per the figure available with IRDA reports for the period ended in
August 2005, the 13 private players have grabbed nearly 26% market share
from LIC in terms of premium underwritten as against 17.70% in August
2004 The list of insurer with premium underwritten, investment and their
market share have been presented in table.
Table shows that the life insurance market has collected Rs. 16,604cr as
a fresh premium. It grew about 2.8 times bigger than he 3 players put together
in terms of premium collection. It is still growing at the rate 26% per annum. It
is relevant to that the market share by them. Out of 13 pvt. Players, ICICI
prudential has leading pvt. Player in the Life insurance, invested rs. 625 cr
which is the highest investments among the private players and captured first
position with 7.11% of the market share. Secondly, Max New York life has
invested Rs. 305 cr and had failed to capture the second position in terms of
market share and was satisfied with only 1.32% Followed by HDFC standard
Life had invested Rs. 255 cr and 2.96% of the market share was captured and
stood third position interims of investments and capturing market share.
Allianz Bajaj has invested Rs. 250 cr and stands fourth in terms of investment
but captured second position with 6.12% of the market share. This indicates
that there is no relation between investment and acquiring market share and
mere capital is not alone playing any significant role in terms of capturing
market share. There may be some other variables like: (a) innovative schemes,
(b) brand loyalty, (c) professional outlook, (d) transference in their
transactions, etc. It can be noticed that the capital is not playing any attaching,
kindly significant role in terms of premium collection and capturing market
share. It seems to be Bajaj Allianz would occupy the first position in near
future in terms of market share as well as annual growth rate.
Chart 1 shows that. Among private players, the ICICI prudential has
captured the 28% of the market share up to December 2005, followed by
Allianz Bajaj with 23% and HDFC Standard Life with 11% TATA Aig life and
Birla Sunlife with 7% each and remaining other players have captured less than
5% of market share.
28
Chart 2 shows that the annual growth rate of the private life insurance
players from November 2004-05. it is interesting to note that Allianz Bajaj has
achived 264.09% annual growth rate in terms of premium collection and the
fastest growing insurance players, followed by HDFC Standard with 143.1%
and Metlife with 136.45%, and remaining other players have doubled their
premium in a span of one year, whereas Birla Sunlife and SBI life have failed
to collect the premium consistently and registered negative growth rates 7.93%
and 2.48% respectively. Surprisingly, ICICI Prudential Co. has not been
retrained in their leading position in 2005.
The market share of the LIC has been declining since 2000, after
opening up of the sector to private companies, LICs higher market share in the
number of policies sold compared with premium income, so it is to be inferred
that the private players are cornering a larger share of high premium policies.
Further all policymakers are expected that, insurance business will take wings
under bancassurance but despite the belief SBI Life was registered negative
2.48% annual growth rate in corresponding period. It is need to be viewed
serious by the RBI and IRDA authorities.
29
30
31
32
a large capital base and scale of operations, seamless access to ICICIs strong
corporate relationships built up over five decades, entry into new business
segments, higher market share in various business segments, Particularly feebased services, and access to the vast talent pool of ICICI Bank approved the
merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, With
ICICI Bank.
Shareholders of ICICI and ICICI BANK approved the merger in January
2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the
High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI groups financing and banking operations,
both wholesale and retail, have been integrated in a single entity. ICICI Bank is
the only Indian company to be rated above the country rating by the
international rating agency moody s and the only Indian company to be
awarded an investment grade international credit rating. The Bank enjoys the
highest AAA (or equivalent) rating from all Leading Indian rating agencies.
Prudential P.L.C.
Established in 1848, today prudential plc is a leading international
financial services company with some 16 million customers, policyholders and
unit holders and some 20,000 employees worldwide. In the UK Prudential is a
leading life and pensions provider with around seven million customers. M&G
was acquired by Prudential in 1999 and is the Groups UK and European fund
manager, responsible for managing over of 111 billion of funds (as at December
2003). Launched by Prudential in 1998, Egg is an innovative financial services
company, with over three million customers, with nearly six per cent of UK
credit card balances. In Asia, Prudential is the leading European life insurer
with 23 life and fund management operations in 12 countries serving some five
million customers. In the US, Prudential owns Jackson National Life, a leading
life insurance company, and has more than 1.5 millions policies and contracts in
force.
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 UKs
R.K.College of Business Management
33
Largest life insurance company with a vast network of 22 life and mutual
fund operations in twelve countries China, Hong Kong, India, Indonesia,
Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and
Vietnam. Since 1923, Prudential has championed customer-centric products and
services, supported by over 60,000 staff and agents across the region.
Prudential plcs strong mix of business around the world positions us
well to benefit form the growth in customer demand for asset accumulation and
income in retirement. Our international reach and diversity of earnings by
geographic region and product will continue to give us significant advantage.
Our commitment to the shareholders who own Prudential is to maximize
the value over time of their investment. We do this by investing for the long
term to develop and bring out the best in our people and our businesses to
produce superior products and services, our international peer group in terms of
total shareholder returns.
At Prudential our aim is lasting relationships with our customers and
policyholders, through products and services that offer value for money and
security. We also seek to enhance our Companys reputation, built over 150
years, for integrity and for acting responsibly within society.
34
Management
K. V. Kamath
Managing Director and Chief Executive Officer
Lalita Gupte
Joint Managing Director
Kalpana Morparia
Joint Managing Director
Nachiket Mor
Deputy Managing Director
35
Board Committees
Audit Committee
Mr. Sridar Iyengar
Mr. Narendra
Murkumbi
Mr. M. K. Sharma
Customer Service
Committee
Credit Committee
N. Vaghul
Narendra Murkumbi
M.K. Sharma
P.M. Sinha
K. V. Kamath
Mr. N. Vaghul
Mr. Narendra Murkumbi
Mr. M .K. Sharma
Mr. P. M. Sinha
Mr. K. V. Kamath
36
Fraud Monitoring
Committee
Mr. M. K. Sharma
Mr. Narendra
Murkumbi
Mr. K. V. Kamath
Ms. Kalpana
Morparia
Ms. Chanda D.
Kochhar
Share Transfer &
Shareholders'/
Investors'
Grievance
Committee
Mr. M. K. Sharma
Mr. Narendra
Murkumbi
Ms. Kalpana
Morparia
Ms. Chanda D.
Kochhar
Risk Committee
Mr. N. Vaghul
Mr. Sridar Iyengar
Prof. Marti G. Subrahmanyam
Mr. V. Prem Watsa
Mr. K. V. Kamath
Asset-Liability Management
Committee
Committee of
Directors
Mr. K. V. Kamath
Ms. Lalita D. Gupte
Ms. Kalpana
Morparia
Ms. Chanda D.
Kochhar
Dr. Nachiket Mor
37
38
Savings Solutions..
Secure Plus is a transparent and feature-packed savings plan that offers 3
levels of protection. Cash Plus 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. Cash Back is an anticipated endowment policy ideal for
meeting milestone expenses like a childs marriage, expenses for a childs
higher education or purchase of an asset.
R.K.College of Business Management
39
Protection Solutions.
LifeGuard is a protection plan, which offers life cover at very low cost. It
is available in 3 coupons level term assurance, level term assurance with
return or premium and single premium.
Child Solutions.
Smart kid child plans provide 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 childs life.
SmartKid child planed are also available with in unit-linked form both single
premium and regular premium.
Market-linked Solutions
LifeLink is a single premium Market Linked Insurance Plan, which
combines life insurance cover with the opportunity to stay, invested in the stock
market. Life Time offers customers the flexibility and control to customize the
policy to meet the changing needs at different life stages. It offers 3 investment
options Growth Plan, Income plan and Balance plan.
Retirement Solutions
40
41
ICICI Prus flexible group term solution helps provides affordable cover
to members of group. The cover could be uniform or based on designation/rank
or a multiple of salary. The benefit under the policy is paid to the beneficiary
nominated by the member on his/her death.
42
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 SmartKid, SecurePlus and Cashplus.
Waiver of Premium: In Case of total and permanent due to an accident, the
premiums are waived till maturity. This rider is available with SecurePlus and
CashPlus.
43
44
[1]
45
[2]
[3]
[4]
[5]
[6]
[7]
[8]
[9]
Leverage Analysis:
A firm can make use of different sources of financing whose costs are different.
These sources may be, for purposes of exposition, classified into those that
carry a fixed rate of return and those on which the returns vary. The fixed
returns on some sources of finance have implications for those who are entitled
to a variable return. Thus, since debt involves the payment of a stated rte of
interest, the return to the ordinary shareholders is affected by the magnitude of
debt in the capital structure of a firm.
The employment of an asset or source of funds for which the firm has to pay a
fixed cost or fixed return may be termed as leverage. Consequently, the
earnings available to the shareholders as also the risk are affected. If earnings
les the variable costs exceed the fixed cost, or earnings before interest and taxes
exceed the fixed return requirement, the leverage is called favorable. When they
do not, the result is unfavorable leverage.
There are 2 types of leverage- operating and financial. The leverage
associated with investment (asset acquisition) activities is referred to as
operating leverage, while leverage associated with financing activities is called
financial leverage. While we are basically concerned with financial leverage for
purposes of the financing decision of a firm, the discussion of operating
leverage is to serve as a background to the understanding of financial leverage
because the two types of leverage are closely related. Operating leverage is
R.K.College of Business Management
46
determined by the relationship between the firms sales revenues and its
earnings before interest and taxes (EBIT). The earnings before interest and
taxes are also generally called as operating profits. Financial leverage
represents the relationship between the firms earnings before interest and taxes
(operating profits) and the earnings available for ordinary shareholders. The
operating profits (EBIT) are thus, used as the pivotal point in defining operating
and financial leverage. In a way, operating and financial leverage represent two
stages in the stages in the process of determining the earnings available to the
equity shareholders and, hence, their discussion in this chapter. Apart from the
elaboration of the return-risk implications, their combined effect has also been
discussed.
Operating leverage results from the existence of fixed operating expenses
in the firms income stream. The operating leverage may be defined as the
firms ability to use fixed operating costs to magnify the effects of changes in
sales on its earnings before interest and taxes. Operating leverage occurs any
time a firm has fixed costs that must be met regardless of volume. We employ
assets with fixed cost in the hope that volume will produce revenues more than
sufficient to cover all fixed and variable costs. In other words, with fixed costs,
the percentage change in profits accompanying a change in volume is greater
than the percentage change in volume. This occurrence is known as operating
leverage.
Financial leverage relates to the financing activities of a firm. The
sources from which funds can be raised by a firm, from the point of view of the
cost/charges, can be categorized into [1] those which carry a fixed financial
charge, and [2] those which do not involve any fixed charge. The sources of
funds in the first category consist of various types of long-term debt, including
bonds, debentures, and preference shares. Long-term debts carry a fixed rate of
interest which is a contractual obligation for the firm. Although the dividend on
preference shares is not a contractual obligation, it is fixed charge and must be
paid before anything is paid to the ordinary shareholders. The equity
shareholders are entitled to the remainder of the operating profits of the firm
after all the prior obligations are met. Financial leverage results from the
presence of fixed financial charges in the firms income stream. These fixed
charges do not vary with the earnings before interest and taxes (EBIT) or
operating profits.
Capital Budgeting:
R.K.College of Business Management
47
48
Receivables Management:
The receivables represent an important component of the
current assets of a firm. The receivables are defined as debt
owned to the firm by customers arising from sale of goods or
services and in the ordinary course of businesses. When a firm
makes an ordinary sale of goods or services and does not
receive payment, the firm grants trade credit and creates
accounts receivable, which could be collected in the future.
Receivables management is also called trade credit
management. Thus, accounts receivables represent an
extension of credit to customers, allowing them a reasonable
period of time in which to pay for the goods received.
The sale of goods on credit is an essential part of the
modern competitive economic systems. In fact, credit sales
and, therefore, receivables are treated as a marketing tool to
aid the sale of goods. The credit sales are generally made on
open account in the sense that there are no formal
acknowledgements of debt obligations through a financial
R.K.College of Business Management
49
Cost
Collection cost
Capital cost
Delinquency cost
Default cost
Dividend policy:
Dividend refers to that portion of a firms net earnings
which are paid out to the shareholders. Since dividends are
distributed out of profits, the alternative to the payment of
dividends is the retention of earnings/profits. The retained
earnings constitute an easily accessible important source of
financing the investment requirements of firms. There is, thus,
a type of inverse relationship between retained earnings and
cash dividends. Larger the retention, lesser dividends; and
smaller retentions, larger dividends. Thus, the alternative uses
of the net earnings-dividends and retained earnings-are
competitive and conflicting.
A major decision of financial management is the dividend
decision in the sense that the firm has to choose between
distributing the profits to the shareholders and plugging them
back into the business. The choice would obviously hinge on
the effect of the decision on the maximizing present values; the
firm should be guided by the consideration as to which
R.K.College of Business Management
50
51
Excluding Fund Of
Excluding Fund Of
Fund Of Funds
Fund Of Funds
Funds
Funds
527298.61
34793.7
520357.41
35962.1
N/A
N/A
N/A
N/A
493459.19
2107032.33
13189.46
220055.55
267272.69
632738.66
1363796.81
11892.52
567052.22
0
1901.45
0
0
0
0
0
0
7885.48
565300.47
2276874.74
12710.58
224400.85
236941.15
643309.79
1337579
9857
594872.17
0
2016.87
0
0
0
0
0
0
8669.47
2210219.06
32939.41
2343907.4
33551.3
3107988.05
1196159.48
465070.34
382811.94
N/A
1340625.72
1149722.96
123858.99
0
0
91168.93
0
N/A
55835.13
0
0
3222873.02
1219830.8
469516.87
386731.37
N/A
1335816.27
1197068.82
84093.35
0
0
97905.45
0
N/A
59243.32
0
0
13.
14.
15.
16.
17.
18.
19.
20.
52
21.
22.
23.
24.
25.
26.
27.
287119.9
1060032.69
4328067.51
5380.17
4221591.34
17596.99
1847383.96
0
0
3731.96
0
0
0
0
310427.14
1094027.66
3907924.85
5818.48
4359281.53
16987.98
1874050.79
0
0
3982.85
0
0
0
0
1299706.71
2886.65
1381960.47
2861.86
780107.96
793897.25
1419829.99
23543.31
3860299.44
35330904.55
0
0
0
231142.71
1448329.74
25362.02
3926014.55
35826123.52
0
0
0
244193.22
AUM
Equity &
Balance
Debt &
MIP
1580.36
464.589.
1115.92
29.39
70.61
1431.46
589.48
841.98
41.18
58.82
10049.66
1668.77
8380.89
16.61
83.39
1565.19
224.35
1340.84
14.33
85.67
1004.62
232.63
771.99
23.16
76.84
2366.72
96.57
2270.15
4.08
95.92
6472.80
1462.33
5010.47
22.59
77.41
1628.06
1628.06
0.00
100.00
0.00
16704.74
6965.36
9739.38
41.70
58.30
15707.82
6126.04
9581.78
39.00
61.00
7250.63
1987.93
5262.70
27.42
72.58
2072.86
337.25
1735.62
16.27
83.73
3780.83
85.52
3694.51
2.26
97.74
6501.52
1065.12
5436.41
16.38
83.62
2959.15
277.46
2681.69
9.38
90.62
6264.96
1682.48
4582.48
26.86
73.14
17095.89
2169.46
14926.4
4
12.69
87.31
Equity
%
Debt
%
53
9907.89
4226.40
5681.49
42.66
57.34
565.50
25.74
539.76
455
95.45
7189.35
2311.54
4877.81
32.15
67.85
7636.86
0.00
7636.86
0.00
2035.21
997.91
1037.31
49.03
100.0
0
50.97
8713.95
2629.09
6084.86
30.17
69.83
170.76
157.53
13.23
92.25
7.75
21975.57
8791.81
13183.7
40.01 59.99
7
List of Assets Management Companies and their assets under management
As on June 2006
Particulars
Diversified
Tax Planning
Index
Sector
Total Equity
FMP
MIP
Debt ST
Income
Total Debt
Balanced
Gilt LT
Gilt ST
Total Gilt
Liquid
Total
(In Crores.)
ICICI PRUDENTIAL
1593.8546
47.9336
2.0978
179.0116
2107.78
1551.236
823.2623
479.4336
3778.4525
6932.384
469.6412
412.9397
150.5677
563.5074
6961.6842
17095..89
54
RATIO ANALYSIS
Growth Fund
Ratio
Current
ratio
EPS
Formula
Current
asset/current
liability
Total
profit/unit
capital
2006
2005
2438.37/1818.15=1.34
1275.46/1066.90=1.19
23311.45/7700.63=3.02
14126.20/9981.01=1.4
1
Div payout
Div. paid/unit 941.81/7700.63=0.12(12%)Div. 621.86/9981.01=0.62(6
to unit
capital
paid/unit capital
.2%)
holders
Div.
Div. paid/net
621.86/14126.20=0.04(
941.81/23311.45=0.04(4%)
payout
profit
4%)
Div. to
Dividend/total
717.53/14882.68=0.48(
total
428.45/18041.54=0.24(2.4%)
income
4.8%)
income
Profit on
sales
Profit/sales
12074.52/14882.68=0.
redemption
13834.17/18041.54=0.77(77%)
redemption
81(81%)
to total
income
(Above Table Showing - Ratio analysis of ICICI PRUDENTIAL AMC)
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It is five times more expensive to acquire a new customer than to retain an old one.
Relationship marketing is the practice of building long term satisfying relationship
with key parties customers and suppliers. They accomplish this by promoting and
delivering high quality, goods, services, and fair prices to other parties overview.
Relationship marketing results in strong economic, technical and social ties among the
parties.
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Relationship marketing is one of the hottest tread in the present marketing scenario.
Satisfied customers not only stay with a company but they are also walking talking
advertisement for the companys product.
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60
The Operation department oils the work processes between the customer
and company to ensure consistent and quality service to the customer. To
streamline the operations, the operations department interfaces between the
clients and the agents, the branches and the under writers, and manages work
processes.
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has tie-up with organizations like Dhan for Distribution of Salaam Zindgi, a
Policy for the socially and economically underprivileged sections of society.
ICICI Prudential has recruited and trained over 32000 insurance advisors to
interface with and advice customers. Further, it leverages is State-of the art IT
infrastructure to provide superior quality of service to customer.
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63
64
65
66
Board of Directors
Sales
Sales
Sales
Sales
Executive
Executive
Executive
Executive
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Recruitment Sources:Human resource planning helps to determine the number and type of
people an organization needs. Job analysis and job design specify the tasks and
duties of jobs and the qualifications expected from prospective jobholders. The
next logical step is to hire the right number of people of the right broad groups
of activities. Recruitment forms the first stage in the process which continues
with selection and ceases with the placement of the candidate. It is the next step
in the procurement function, the first being the manpower planning. Recruiting
makes it possible to acquire the number and types of people necessary to ensure
the continued operation of the organization.
Recruiting is the discovering of potential applicants for actual or
anticipated organizational vacancies. In other words, it is linking activity
bringing together those with jobs and those seeking jobs. As Dale Yoder and
other point out: Recruitment is a process to discover the sources of manpower
to meet the requirements of the staffing schedule and to employ effective
measures for attracting that manpower in adequate numbers to facilitate
effective selection of an efficient working force. Accordingly, the purpose of
recruitment is to locate sources of manpower to meet job requirements and job
specifications.
Recruitment has been regarded as the most important function of
personnel administration, because unless the right types of people are hired,
even the best plans, organization charts and control systems would not do much
good. Flippo views recruitment both as positive and negative activity. He
says it is a process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization. It is often termed
positive in that it stimulates people to apply for jobs to increase the hiring
ratio i.e. the number of applicants for a job. Selection, on the other hand tends
to be negative because it rejects a good member of those who apply, leaving
only the best to be hired.
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RECRUITMENT
The upper level members like zonal managers, regional managers, branch managers and senior
executives are recruited. The regional manager has authority to select lower level employee like peon,
marketing executives, financial accountant etc. by approval of zonal manager.
ICICI PRUDENTIAL AMC recruits through following sources:
Internal Sources:
Present Employees
Employee Referrals
Previous Applicants
External Sources:
Advertisement
Campus interview
Consultants
Walk-ins
SELECTION
Selection is a process to select a fixed number of personnel from a large number of applicant received
by employees, seeking the job and selecting those who suitable for the given job selection includes a
number of steps. The purpose of selection is to pick up the right person for every job.
A scientific procedures of selection, requires 2 things:
1. Knowledge regarding the qualities which a person should posses in order to do the given job
properly
2. The evaluation of qualities possessed by a candidate for the job.
Prudential ICICI has adopted the following steps for selection procedure:
PRELIMINARY INTERVIEW
The main purpose of preliminary interview is to screen out those who are unsuitable. Those
interviews are quite short. If candidates are found suitable then an application blank may be given to
him to fill up and return.
In ICICI PRUDENTIAL AMC regional manager first interviews candidates, and if selected than he is
interviewed by zonal manager & if he is found suitable than an application blank is given to them.
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APPLICATION BLANK
Here the applicants are asked to complete a blank that provides space for him to record data relating
to the name of candidates, experience etc. The application blank must not be too lengthy. In Pru ICICI
AMC this application blank is forwarded to Mumbai branch to hr department.
INTERVIEW
After the application blank reaches to the HR Department Mumbai, a telephonic interview is
conducted by HR Manager to see that the regional manager & zonal manager has made the right
choice or not.
MEDICAL CHECK UP
If the candidates clears all the above stages, company checks his medical report the basic purpose of
medical check-up is to determine the job for which candidate is fit or not.
REFRENCES
Checking of references is an important part of selection process. The company prefers to select the
candidate within the group or if the candidate gives the name of reputed person as his references.
FINAL SELECTION
If the candidate passes successfully from the above stages he is finally selected for the post. The final
selection lies with the regional manager.
PLACEMENT
The last stage in selection process is the placement of candidate. After the final selection is done, the
selected candidate is finally placed on the job.
TRAINING
THERE ARE TWO TYPES OF TRAINING PROGRAMS:
ON THE JOB TRAINING
OFF THE JOB TRAINING
R.K.College of Business Management
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Continuous training and upgrading technical, behavioral and managerial skills is a way of life in
ICICI PRUDENTIAL AMC. ICICI PRUDENTIAL AMC encourages agent or sub-broker to hone
their skills regularly to enable them to face the challenges of the changing requirements of customers
that fit market up and down.
Training needs analysis is done on a regular basis and systematic methodologies are ensured that
skills and capabilities of all agents are constantly upgraded to enable them to perform in the
challenging work. There is special training session at regular time period in local branch to all
financial consultant and agents about new scheme and to improve their effectiveness.
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PERFORMANCE APPRAISAL
It is the systematic evaluation of the individual with respect to his or her performance on the
job and his or her potential for development.
Objective of Performance appraisal if for Developmental uses for agents and Financial Consultants,
for wages, transfer, promotion, for documentation and for organizational purpose like Human
Resource Planning, Job analysis and for training and development.
ICICI PRUDENTIAL first set the objective of performance appraisal then in establish job expectation
and then decide whose performance should be rated and who the raters are. Basically raters are
immediate supervisor, subordinates, peers, clients. For Performance Appraisal modern method is used
like MBO (Management By Objectives) and 360 appraisal. But there is some limitation like Hello
effect, Bias, Perception factor, Spill over etc
Selection Methods:
The selection procedure is concerned with securing relevant information
about an applicant. This information is secured in a number of steps or stages.
The objective of selection process is to determine whether an applicant meets
the qualifications for a specific job and to choose the applicant who is most
likely to perform well in that job.
The hiring procedure is not a single act but it is essentially a series of
methods or steps or stages by which additional information is secured about the
applicant. At each stage, facts may come to light which may lead to the
rejection of the applicant. A procedure may be compared to a series of
successive hurdles or barriers which an applicant must cross. These are
intended as screens, and they are designed to eliminate an unqualified applicant
at any point in the process. This technique is including all these hurdles.
Placement & Induction:Placement at ICICI bank is done very critically. The human resources are
considered very critical and are said to be main power of the bank. The CEO
Mr. K. V. Kamath says, Human capital is very important at ICICI. Training is a
big thing; each employee spends at least 69 hours during the year recharging
himself. Placement is done on the qualification and merit basis. Generally for
the retail banking and other in house jobs placement is done on the basis of the
interviews by branch and regional heads. They select only those competent
people who are ready to work round the clock and have full dedication towards
the bank.
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Training and Development:ICICI is a kind of private sector bank where if you are confident and
competent then you can get your carrier advancement and development at a
very high speed. CEO Mr. K. V. Kamath says, There are several young people
in our organization who are on the threshold of making it to the board. He
himself has this habit of dropping in unannounced on people tow or three levels
below him. It helps him to keep a tab on things and also to find out who is
knocking on top management doors. His management by walking about also
takes him to the basement, to see that everything is spick and span. He does like
to get to the bottom of things.
At ICICI executive development programme is more important. Because
they believe that if the executives are properly trained, properly motivated and
fully focused then they can guide any kind of work force. All those persons who
have authority over others and are responsible for their activities and for the
operations of an enterprise are managers. In a business organization, the coordination and direction of the efforts of others is a major part of the
management job. The manager has to deal not only with the staff but also with
others outside his own group, and has decided influence on the organization.
Performance Appraisal Policy:Once the employee has been selected, trained and motivated, he is then
appraised for his performance. Performance appraisal is the step where the
management finds out how effective it has been at hiring and placing
employees. If any problems are identified, steps are taken to communicate with
the employee and to remedy them. A performance appraisal is a process of
evaluation an employees performance of a job in terms of its requirements.
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Objectives
To Study the Brand awareness of the new product i.e. Unit Linked
Insurance Plans in Ahmedabad City.
To know what are the priorities of people of city for making investment in
Insurance.
To know what are the perception of the consumer about ICICI Prudential
Life Insurance Co.
To know the standing of the ICICI Prudential Life Insurance Co. in
Ahmedabad City.
Data Source:
The data would be collected from both primary as well as secondary source.
Consumers would be asked to fill questionnaires to arrive at the information.
Various secondary sources of data as magazines, journal, Internet etc. would
also be explored.
Sampling Area:
The sampling areas of this research are Ahmedabad.
Sampling method:
The convenient sampling method was used for this research and the
respondents were those who have already taken life insurance policy.
Sample Size:
The size of this research is 50 respondents.
Research Instrument:
The research instruments, which was used, for collecting the data is
questionnaire.
Method of contact:
The method of contact would be personal and direct as this would help
to qualify the customers issues while filling up the questionnaire and also helps
them if they do not have the knowledge about any insurance plan of the
company.
Method of making an approach for Sales:
R.K.College of Business Management
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After analyzing the data form the questionnaires the needs of prospects
were identified and the best suitable insurance solution was suggested to them
accordingly.
No. Of Respondents
50
0
As our sample is those people who have insurance so all the respondents are
falling under the Yes criteria.
Q.2. Which Companys Insurance Policies do you have?
Company
No. of Respondents
LIC
50
Birla Sunlife
SBI
10
Kotak Mahindra
Post Office
15
HDFC
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As from the above chart it is very clear the all of the respondents have an
insurance of the LIC while some of them have an insurance of the other
companies like post Office, ICICI Prudential Life insurance Co., HDFC Co.
Etc.
The reason behind this is that the LIC competitor since more than four
decades and the Indian Govt. allowed the Introduction of private player in
Insurance in the year 2000.
Q.3
No. of Respondents
11
18
6
5
10
The analysis of the above available data is merely to find out the percentage of
income that one is willing to invest in insurance.
Q.4
80
Criteria/Rank
Death Benefit
Childrens
Future
Retirement
Planning
Tax Planning
Financial
Planning
1
29
7
2
10
13
3
6
21
4
2
3
5
3
0
Total
50
44
20
43
8
2
18
5
8
3
8
11
6
25
48
46
From the table and chart it can be say that most of the people rank death benefit
first for the decision to make investment in Insurance. Their second priority is
tax planning because the premium, which is paid by the people towards
Insurance, is deductible up to certain limit from the income and also the
maturity amount is also tax free. The third and fourth priorities are childrens
future and retirement planning.
Q.5
81
Criteria
Yes
No
No. of Respondents
32
18
Q.6 If Yes do you have any knowledge about unit linked insurance
plans?
Criteria
Yes
No
No. of Respondents
25
7
The question number 5 and 6 are designed to know the awareness of people
who have knowledge of share market or deals in shares also have the
knowledge of the new modern insurance product i.e. Unit Linked Insurance
Plan. From the available data it can be say that those who deal in shares are also
aware of the ULIP.
Q.7
No. of Respondents
0
39
11
From the Q. No. 7 we can say that even though the modern products available
in the market since more than two years and which are having the more
flexibility and also giving the higher return than traditional one most of the
R.K.College of Business Management
82
people do not have or may be not aware of it which shows the lack of brand
awareness and it requires an aggressive promotional efforts on the part of
company.
There is a lot of scope available for the company to attract more customers by
giving or introducing most suitable ULIP products and at the same time increase
the customer base.
Q.8
Choice/Rank
Mutual Fund
Insurance
Gold
Equities
Post Office
Debenture
Bank Deposit
Other
1
0
4
4
17
22
0
0
10
2
1
12
8
3
12
2
6
5
3
5
14
1
0
12
4
12
0
4
1
4
2
5
2
10
19
2
5
25
8
2
2
2
1
1
1
6
12
3
5
6
0
14
0
0
7
5
0
13
1
0
2
3
0
8
1
0
13
0
0
0
1
2
Total
50
45
48
34
50
33
42
20
This question is mainly designed to know the investment priorities of the people
of Ahmedabad town. The objective behind this Q. is that after the Charotar
Nagrik Co-oprerative Bank and other Credit Societies, which are giving higher
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83
interest on deposits, the whole scenario of city is changed. Most of the people
prefer to invest in post office saving schemes and where their money is safe
even though the return is very less. So there is a great need to divert the efforts
of the company towards the safety and security as ICICI Prulife is a private
insurance Company.
Q.9
According to you what are the factors that would affect you decision
while purchasing an insurance policy?
Criteria/Rank
Premium
Return
Safety
Liquidity
Market
Condition
1
12
21
20
1
1
2
15
17
14
1
2
3
15
8
15
9
0
4
6
2
1
18
16
5
2
2
0
21
21
50
50
50
50
50
40
The question No. 9 is designed to know which the factors are affecting
the most to the prospect while making decision to invest in insurance. As far as
investment in insurance is concerned most of the people want that it should be
safe and at the same time giving the compatible returns because insurance is not
only for death benefit it is also a saving tool for future. So the mix response of
respondents is welcomed. Available data is such that there is a bit ambiguity.
R.K.College of Business Management
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But we can say that the most affecting factors to the prospect are return and
safety. As per the finance theory risk and return goes in hand in hand but as far
as insurance is concerned it is all about the compatible and safe returns over
others.
Q. 10 Are you or ay of your family members are planning to buy an
insurance policy in near future?
Criteria
Yes
No
No. of Respondents
13
37
This question is taken to collect the information of those respondents who are
going to plan to purchase insurance within near future that is used by the
company for making personal contact for sale.
Q. 11 Are your needs satisfied with your current investment in insurance?
Criteria
Yes
No
Q. 11(a)
No. of Respondents
10
30
Criteria
High Premium
Low Return
Poor Services
Others
No. of Respondents
0
1
7
2
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The question No.11 and 12 are designed to know the percentage of people who
are not satisfied with the current investment in insurance and also to know the
reasons behind it. So that the company can focus on those areas where the
competitors fail. Because now a days the competition is very stiff in the
insurance industry. All companies are trying to attract more customers by
anyhow. So it will be useful for designing the promotional schemes of the
company.
From the above table and chart it can be seen that the respondents who
are dissatisfied give the main reason behind it are poor services. There are many
others reasons like more time taken by the company for claim settlement, nondispatchment of cheques and other important vouchers, etc. So the company can
improve upon these and increase its market share by offering quality service to
the customers.
Q. 12 Do you know anything ICICI Prudential Life Insurance?
Criteria
Yes
No
No. of Respondents
30
20
Q. 13 If Yes, from where did you come to know about the company?
Criteria
Television
News Paper
Sales Representative
Others source
No. of Respondents
4
3
14
9
86
87
No
88
Q.3
MetLife Insurance
OM Kotak Mahindra
AMP Sanmar
Q.4
Death Benefit
Childrens Education
Retirements Benefit
Tax Planning
Financial Planning
Q.5
Q.6
No
Q.7
No
No
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Q.8
Mutual Funds
Insurance Policies
Gold
Equities
Q.9
If other (specify)___________
According to you what are the factors that would affect you decision
while purchasing an insurance policy?
(Please Rank Your Choice)
Premium
Return
Safety
Liquidity
Market Condition
No
No
High Premium
Low Return
Poor Services
Other Reasons__________
______________________
90
No
Q. 13 If Yes, from where did you come to know about the company?
T.V.
Radio
Newspaper
Internet
Magazine
Hoarding
91
So according to the data available form the survey one can conclude that even
though the Unit Linked Insurance Plans are very much popular in Metro and
semi cities, the product awareness of ULIP is very low among the people of city
and at the same time there is a need to create the different image of the company
among the people by any means like advertisement, seminars or meetings.
R.K.College of Business Management
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Strengths
o
o
o
o
o
o
o
Flexible Products
Partners having experience in different markets of
the world.
Synergy with exiting operations
Expertise in the field of insurance
Professional management
Good Customer service
Create a brand name
Weakness
Low capital base
Yet to build strong distribution network
Cannot tap rural market
Opportunities
o
o
Untapped market
Banks ready to tie up for as a readymade
distribution network for a small fee.
Threats
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Website address
www.bimaonline.com
www.licindia.com
www.irdaindia.com
www.iciciprulife.com
Magazines
India Today
ICFAI Journal
Outlook Express
Materials
LIC literature and brochures
ICICI Prudential literature and brochures
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