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A PROJECT REPORT

FOR

PROMOTION OF
LIFE INSURANCE PRODUCT & TEXPERT

Submitted for the partial fulfillment of the


MBA IV Semester

SIKKIM MANIPAL UNIVERSITY


[ 2006 – 2009 ]

Under the guidance of :- Submitted by:-


Prof. [Mrs.] SONAL MEHRA SUSHIL VISHWAKARMA

INSTITUTE OF MANAGEMENT DEPARTMENT


------------------------SMU------------------------
We Cover You . At Every Stap In Life .

TO WHOM SO EVER IT MAY CONCERN

This is to certify that


Mr. Sushil Vishwakarma
S/O Shri S.L. Vishwakarma

RESIDENT OF
H No. 586 East Kariya Pather Post bai
Ka bagicha ghamapur Jabalpur {M.P.}

He has completed vocational training


from
ICICI Prudential Life Insurance.

And his performance


during the training session was excellent.
We wish his a very bright and successful future.

Yours Sincerely

Rahul Balwalkar
VP & Head
CONTENT

1. COMPANY PROFILE

2. COMPETITORS

3. MARKET SHARE

4. INSURANCE PLANS

5. ABOUT TAXPERT

6. SURVEY WORK

7. DATA ANALYSIS

8. CONCLUSION

9. RECOMMENDATION

10. BIBLIOGRAPHY
COMPANY
PROFILE
COMPANY PROFILE

TCICI Prudential Life Insurance company is join venture between


ICICI Bank , a premier financial power house & prudential ply, a leading
international financial services group headquatered in the United
kingdom ICICI prudential was amongst the first private sector insurance
companies to begin to operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential equity base stands at Rs. 9.25 billion with ICICI
Bank & prudential ply holding 74% And 26 % stake respectively. In the
financial year ended” March 31, 2007” the company garnered Rs. 1584
core of new business premium for a total for a sum assured of Rs.
13,780 core And wrote nearly For 615000 policies the company has a
network of about 56000 advisors; as well as 7-banc assurance and 150
corporate agent tie — ups. For the past four year ICICI Prudential has
retained its position as the No. 1 private life insurer in the country, with a
wide range of the flexible products that meet the needs of the Indian
customer at every step in life.
VISION

To make ICICI Prudential the dominant Life 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.

We do believe that we are on the threshold of an exciting new


opportunity, where we can play a significant role in redefining and
reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth.
ICICI BANK

ICICI Bank is India’s second-largest bank with total assets of about


Rs. 112,024 crore and a network of about 450 branches and offices and
about 1750 ATMs. It offers a wide range of banking products and
financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates
in the areas of investment banking, life and non-life insurance, venture
capital, asset management and information technology. ICICI Bank
posted a net profit of Rs. 1,637 crore for the year ended March 31, 2004.
ICICI Bank’s equity shares are listed in India on stock exchanges at
Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai
and the National Stock Exchange of India Limited and its American
Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).

PRUDENTIAL PLC

Established in London in 1848, Prudential plc, through its


businesses in the UK and Europe, the US and Asia, provides retail
financial services products and services to more than 16 million
customers, policyholder and unit holders worldwide. As of June 30,
2004, the company had over US$300 billion in funds under
management. Prudential has brought to market an integrated range of
financial services products that now includes life assurance, pensions,
mutual funds, banking, investment management and general insurance.
In Asia, Prudential is the leading European life insurance company with
a vast network of 24 life and mutual fund operations in twelve countries -
China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam.
MANAGEMENT PROFILE
Board of Directors

The ICICI Prudential Life Insurance Company United Board


comprises reputed people from the finance industry both from India and
abroad.

Mr K.V. Kamath, Chairman


Mr. Barry Stowe
Mrs. Kapana Morparia
Mrs. Chanda Kochhar
Mr. HTPhong
Mr. M.P. Modi
Mr R Narayanan
Mr. Keki Dadiseth
Ms. Shikha Sharma, Managing Director
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director

Management Team

Ms. Shikha Sharma, Managing Director & CEO


Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anäta Pai, EVP — Customer Service & Technology
Mr. Azim Mithani, Chief Actuary
Mr. Puneet Nanda, Chief Investments Officer
Mr. Binayak Dutta, Chief — Sales and distribution
COMPETITORS
COMPETITORS
 Life Insurance Corporation of India.

 Allianz Bajaj Life Insurance.

 AMP Sanmar Assurance Company.

 Birla Sun Life Insurance Co. Ltd.

 Met Life

 HDFC Standard Life Insurance Co. Ltd.

 lNGVyasya Life Insurance Co. Pvt. Ltd.

 Max New York life Insurance Co. Ltd.

 OM Kotak Mahindra Life Insurance Co. Ltd.

 SBI Life Insurance Co. Ltd.

 Tata AIG Life Insurance Co. Ltd.

 Aviva Life Insurance Co. Ltd.


MARKET SHARE

Life Insurance Corporation of India 87.2

ICICI Pru 4.2

Birla Sun life 1.8

HDFC Standard 1.6

TATA Aig 1

Allianz Bajaj 1.1

SBI 1

Max New York Life 0.7

Om Kotak 0.4

Aviva 0.4

ING Vyasya 0.3

AMP Sanmar 0.2

Met Life 0.1


Life Insurance
100 Corporation of India
90 ICICI Pru
80
Birla Sun life
70

60 HDFC Standard

50
TATA Aig
40
Allianz Bajaj
30

20 SBI
10
Max New York Life
0
1
Om Kotak
INSURANCE
PLANS
ICICI PRU SMART KID [Unit Linked Regular Premium II]

What are these Investment plan

Who can invest Parents in the age group of 20-60, having


children in the age group of 0-15 years

Min & Max amount Minimum premium amount of Rs. 18,000/year

Liquidity One can get surrender value if policy is


terminated after first premium is paid.

Tax benefits Rebate under section 88 Income is tax free


under section 10[10D]

Other benefits Additional rider benefits of income Benefit Rider


Accident and Disability Benefit Rider. Waiver of
premium rider. Periodic Payouts at regular
interval.

Age of child at 20-25


Maturity
ICICI PRU LIFE TIME

What are these Investment plan

Who can invest Individuals

Suitable for whom For people who are looking for insurance risk
Cover as well as market linked returns.

Min & Max sum Minimum premium amount of Rs. 18,000.


Insured

Min & Max Entry age 0 to 60 years

Liquidity No withdrawal till 3 years. Market linked


surrender value after 3 years.

Tax benefits Rebate under section 88. Income /Returns are


tax-free under section 10 (1OD)

Other benefits Option to choose between Income, Growth,


Balanced and Preserver Plan and also to Switch
between them. Flexibility to increase / Decrease
life cover.
ICICI SECURE PLUS PENSION

What are these Regular premium linked Pension plan

Who can invest Individuals

Suitable for whom For people who are looking for pension, cover
As well as market linked returns.

Min & Max sum Minimum premium amount of Rs. 10,000/


Insured Monthly Rs. 834 top up minimum Rs. 5000.

Min & Max Entry age 18 to 65 yrs

Tax benefits Deduction under section 80 ccc upto Rs. 10,000


Commuted pension tax-free.

Other benefits Option to choose between Income, Growth,


Balanced and preserver plan and also to Switch
between them.
ICICI PRU LIFE TIME PENSION II

What are these regular premium linked pension plan

Who can invest individuals

Suitable for whom for people who are looking for pension, Cover as
well as market linked returns

Min & Max sum Minimum premium amount or Rs. 10,000, Top-
Insured up minimum Rs. 5,000

Min & Max Entry age 18 to 60 yrs

Liquidity No withdrawal before 3 years. Full withdrawal


Anytime after 3 years. No partial withdrawal.

Tax benefits Deduction under section 80 ccc upto Rs. 10,000


Commuted pension tax-free.

Other benefits Option to choose between Income, Growth,


Balanced and preserver plan and also to Switch
between them.
ABOUT TAXPERT
Who must file return of Income with Tax Authorities?

A Return of income has to be filed in the prescribed form by all


individuals and Hindu Undivided Families earning income above Rs.
50,000 in a financial year ending on March Besides, the following people
have to file returns, regardless of their income

 Occupiers of immovable property of specified floor area

 Owner or the lessee of a motor vehicle other than two wheelers

 Subscribers to a cellular telephone service

 Those who have spent money on own/other’s foreign travel

 Holders of a credit card

 Members of a club with an entrance fee of over Rs.25,000

What happens if one fails to file the return of income?

Failure to file income tax returns before the end of the relevant
assessment year will invite a penalty of Rs.5,000.

By when should one file the Return of Income?

Income tax returns are always filed for the year ended on 315t
March. Broadly individuals not requesting audit should file their returns
within 4 months after close of the year ,i.e. by July 31 and others can do
so within 7months i.e.October3 1.
What is Permanent Account Number in the Return?

To establish a unique identity of the tax asses see, all those who
are obliged to file the return of income must obtain Permanent Account
Number by making application in the prescribed form {Form No.49A}.

On what income do you have to pay tax?

Resident Indians have to pay tax for income earned anywhere in


the world. Non Resident Indians have to pay tax for their income earned
in India only. Resident but not ordinarily resident Indians pay tax on their
Indian income and income from foreign business/profession which is
controlled from India.

What are the formalities for filing of return?

For the employee of any company, they require the following


documents:

 Form 2d which is also known a Naya Saral OR Form 2e which is


known as Sara!.

 Xerox of Permanent Account Number {PAN} card

 Original Form 16 which is also known as Statement of Salary.

POLICY of India Infoline:

The policy of India Infoline is to file return of income free of cost.


For that purpose they send their investment advisor and marketing
executive to the companies and meet their. Human Resource Manager
to convince them for return filing of their employees from India infoline.
MY WORK as a TAXPERT:

I have worked in Mahim branch of India Infoline and I have visited


many companies like:

 Blue star

 Mahanagar Telephone Nigam Ltd.

 Johnson & Johnson

 Alembic

 Hawkins India Ltd.

 Others

I have also visited various malls, shops and houses and made
many customer in the process. Due to the policy of free return filing of
the company the employees, shopkeepers, and individuals have shown
interest in filing their return from us.
SURVEY WORK
OBJECTIVE OF THE STUDY

The study has several objectives :-

1) Primary objective:

To know about customer preference of life insurance.

2) Secondary objective:

a) To find out the relative market position of ICICI


PRUDENTIAL life insurance company in comparison with
nearest competitors.

b) To know about which type of policy preferred for investment.

c) To know the customer trusts on private life insurance


companies.

d) To know the preferred premium schedule of payment for life


insurance companies.

e) To obtain suggestions from people.


RESEARCH METHODOLOGY
Research methodology is a way to systematic solve the research
problem. It may be understood as a science of studying how research is
done scientifically. In research methodology we do not talk of research
methods but also consider the logic behind the methods we use in the
context of our research study and explain why we are using a particular
method or technique.

 RESEARCH DESIGN

A research design is a type of blue print prepared depending on


various types of blue prints available for the collection, measurement
and analysis of data. A research design calls for developing the most
efficient plan of gathering the needed information. Research design is
the specification of methods and procedures for acquiring this
information is needed.

DESCRIPTIVE STUDY:

Descriptive studies are undertaken in many circumstances. When


the interest is in knowing the characteristics of certain groups such as
age, sex educational level, occupation or income, a descriptive study
may be necessary. Other cases when a descriptive study could be taken
up are when he is interested in knowing the proportion of people in a
given population who have behaved in a particular manner, making
projections of a certain thing, or determining the relationship between
two or more variables. The objective of such a study is to answer the
“who, what, when, where, and how” of the subject under investigation.

Descriptive studies can be divided into two broad categories:


1. Cross-sectional: A cross-sectional study is concerned with a
sample of elements from a given population. Thus, it may deal with
households, dealers, retail stores, or other entities. Data on a
number of characteristics from the sample elements are collected
and analyzed. Cross-sectional studies are of two types-field
studies and surveys.

2. Longitudinal studies: Longitudinal studies are based on panel data


and panel methods. A panel is a sample of respondents who are
interviewed and then reinter viewed from time to time. Generally,
panel data relate to the repeated measurements of the same
variables.

 SAMPLING

An integral component of research designs the sampling unit.


Making a census study and entire universe will be impossible on account
of limitations of money and time. Hence sampling becomes evitable. A
sample is only a portion of the universe of the population.

 SAMPLING DESIGN

This survey was done in Mumbai during summer training. The


sampling plan was to be decided for a meaningful conclusion so a group
of hundred people were selected. Only those people were asked to fill
the questionnaire who were easily accessible and available.

METHOD OF DATA COLLECTION

To know the response I have used the questionnaire method in


sample survey. If one wishes to find out, what people think or know , the
logical procedure is to ask them. This led marketing researchers to use
the questionnaire method for collecting data more than any other
method.

In this method questionnaires were distributed to the respondents


and they were asked to answer questions in the questionnaires.

LIMITATIONS OF THE STUDY

Although in my study I have taken all the possible precaution


regarding the basic rules of marketing still I have faced many limitations
in completing the research works. Some of the limitations are as under:

1) The sample was limited to only Mumbai city the results were not
collected from other cities.

2) Since the span of time was short and it was not sufficient for doing
a large survey so the sample size taken is of 100 only.

3) Some of the respondents whom I approached to get the


questionnaire filled were busy or not ready to do so or they were in
a hurry to extend full attention to each questions.

4) No monetary assistance was provided from the organization and


the entire expenditure is gone away from the pocket of the
researcher.
QUESTIONNAIRE
Sir/Madam,

Thanks for devoting few time, I am doing a Research Report to


fulfill the partial need of M.B.A.(M.M.) TVth Sem UNIVERSITY
INSTITUTE OF MANAGEMENT, JABALPUR (M.P.).I wish that the
information given by you will be authentic and true.

Thank you,

PRASHANT KUMAR DUBEY

NAME :___________________________________________

AGE :___________________________________________

DESIGNATION :___________________________________________

ADDRESS :___________________________________________

TELEPHONE :___________________________________________

Q1) Which of the life insurance company are you aware of?

a) LIC b) ICICI Prudential

b) HDFC Standard Life c) All the above and others.

Q2) If you know ICICI Prudential what was your sources?

a) Sales Executive b) Friends

b) Advertisement c) Any Other


Q3) Do you have any life insurance policy?

a) Yes b) No

Q4) If yes, please tick the company...

a) LIC b) ICICI Prudential

c) HDFC Standard Life d) Any Other

Q5) if you want to buy a insurance policy which one you will
prefer?

a) Endowment plan b) Children plan

c) Term plan d) Pension plan

e) Any other

Q6) If you wish to have a insurance plan what will be your


purchase consideration?

a) Safety b) Investment

b) Tax benefit d) Any other

Q7) What is your level of trust in private Insurance Company?

a) Low b) Very Low

c) High d) Very High

Q8) What will be your preferred payment schedule?

a) Quarterly b) Half Yearly

b) Yearly d) Only Once


DATA ANALYSIS
1. Percentage of people aware of Life Insurance companies:

20%

50%
100%

75%

LIC ICICI PRUDENTLY HDFC STANDARD LIFE OTHER

S.No. Companies Percentage

1. LIC 100

2. ICICI PRUDENTLY 75

3. HDFC STANDARD LIFE 50

4. OTHER 20

Interpretation : Most of the people are ware of LIC as a life insurance


company.
2. Sources of person who made TCICI Prudential known:

5%

25%

55% 15%

SALES EXECUTIVE FRIENDS ADVERTISEMENT OTHERS

S.No. Sources Percentage

1. SALES EXECUTIVE 25

2. FRIENDS 15

3. ADVERTISEMENT 55

4. OTHERS 5

Interpretation: Advertisement is the main source of people to know about


ICICI Prudential.
3. People having Life Insurance policy:

15%

85%

YES NO

S.No. Options Percentage

1. YES 85

2. NO 15

Interpretation: Maximum people are having life insurance policies.


4. Which company policy do you have:

6%
4%

10%

80%

LIC ICICI PRUDENTLY HDFC STANDARD LIFE OTHER

S.No. Companies Percentage

1. LIC 80

2. ICICI PRUDENTLY 10

3. HDFC STANDARD LIFE 4

4. OTHER 6

Interpretation: Most of the respondents have life insurance company


policies.
5. The policy preferred by the people are:

12%

38%
20%

30%

Endowment plan Term plan Children plan Pension plan

S.No. Policies Percentage

1. Endowment plan 12

2. Term plan 20

3. Children plan 30

4. Pension plan 38

Interpretation: Usually people preferred policies according to their needs


and requirement but more preference is given to pension plan.
6. The purchase consideration while choosing an investment plan is:

5%

25%

45%

25%

Safety Investment Tax benefit Others

S.No. Options Percentage

1. Safety 45

2. Investment 25

3. Tax benefit 25

4. Others 5

Interpretation: While choosing the plan mostly safety and investment


precaution is taken care of
7. Level of trust in private company is:

5%

15%

45%

35%

Low Very Low High Very high

S.No. Options Percentage

1. Low 45

2. Very Low 35

3. High 15

4. Very high 5

Interpretation: Mostly people have less trust or no trust on private


insurance companies.
8. The preferred payment schedule are:

5%

30%

40%

25%

Quarterly Half yearly Yearly Once only

S.No. Options Percentage

1. Quarterly 30

2. Half yearly 25

3. Yearly 40

4. Once only 5

Interpretation: Usually people like to pay their premium quarterly.


CONCLUSION

After the whole data analysis and interpretation some conclusions


are being drawn out which are as under:

 The survey has found that maximum people have life insurance
policies with them and they preferred plan according to their needs
and requirements.

 But the people give more preference to pension plan which


provides them pension facilities after their retirement. This plan is
mainly concerned with private company employees

 While purchasing the policy the maximum people give preference


on saving as well as investment. These two are the basic purchase
consideration while choosing the plan.

 After the survey it was found that every respondent have the
knowledge about LIC but only 75% of people knows about ICICI
Prudential. The basic reason behind it is due to LIC, which is the
oldest government insurance from the last fifty years

 The main sources from which people know about ICICI Prudential
is through advertisements. It means that advertisement plays a
vital role in setting up on customers mind.

 After studying it is found that maximum people have less trust on


newly entered private insurance companies, the reason may be
due to their established or the threat of dissolving of money.

 The customer gives preference on paying their premiums quarterly


in spite of half yearly or yearly. Because it is easy and convenient
for them to pay as the amount is not much and can be afford
easily, but on various plans the company is accepting only yearly
installments.
APPENDIX
RECOMMENDATION

For increasing the market share of ICICI PRUDENTIAL:

Promotion of market linked insurance plans among young private


sector employees.

 Promotion of pension pian in the private sector companies

 Emphasis must be given to visual media advertising.

 Having brand ambassador for the advertising purpose.

 Promotion of insurance plans as a tax saving instruments.

 Increase the number of marketing executive.


BIBLIOGRAPHY

 Income Tax Law and Accounts by Dr. H.C Mehrotra

 Marketing research by G.C Ben

 Marketing Management by Philip Kotler.