S.NO               INDEX                  PAGE NO
       CHAPTER I
 1     INTRODUCTION                         7-16
 2     OBJECTIVES OF THE STUDY              17
 3     NEED & SCOPE OF THE STUDY            18-19
 4     METHODOLOGY OF THE STUDY             21-23
 5     LIMITATIONS                          24

 6     INDUSTRY PROFILE                    26-30
 7     COMPANY PROFILE                     32-50

 8     THEORETICAL APPROACH                51-57


       CHAPTER V
 10    FINDINGS                             73
 11    SUGGESTIONS                          74
 12    CONCLUSION                           75

  13      QUESTIONNARIE                                            76-79

  14      BIBLIOGRAPHY                                              80

                             EXECUTIVE SUMMARY

This project is based on the Customer Satisfaction of the ICICI PRUDENTIAL insurance
Company ltd. It is done to find out whether the customers are satisfied with the Benefits
they get with their respective policies or not. Further, in this Project the study includes the
introduction of the company wherein I told about the Objectives of the study and profile
of the ICICI Prudential.

Section 2 includes the Research Methodology wherein I have discussed the Research
Design and Various sources of the Data Collection. Thereafter the relevant matter
includes the Data analysis and Findings wherein I have analyzed the data collected from
the Questionnaire. Lastly it represents the conclusion and the suggestions based on the
customer satisfaction survey.


Life insurance is a form of insurance that pays monetary proceeds upon the death of the
insured covered in the policy. Essentially, a life insurance policy is a contract between the
named insured and the insurance company wherein the insurance company agrees to pay
an agreed upon sum of money to the insured's named beneficiary so long as the insured's
premiums are current.

With a large population and the untapped market area of this population insurance
happens to be a very big opportunity in India. Today it stands as a business growing at the
rate of 15-20% annually. Together with banking services, it adds about 7 percent to the
countries GDP. In spite of all this growth statistics of the penetration of the insurance in
the country is very poor. Nearly 80% of Indian populations are without life insurance
cover and the health insurance. This is an indicator that growth potential for the insurance
sector is immense in India.

It was due to this immense growth that the regulations were introduced in the insurance
sector and in continuation “Malhotra Committee” was constituted by the government in
1993 to examine the various aspects of the industry. The key element of the reform
process was participation of overseas insurance companies with 26% capital. Creating a
more competitive financial system suitable for the requirements of the economy was the
main idea behind this reform.

Since then the insurance industry has gone through many changes. The liberalization of
the industry the insurance industry has never looked back and today stand as one of the
most competitive and exploring industry in India. The entry of the private players and the

increased use of the new distribution are in the limelight today. The use of new
distribution techniques and the IT tools has increased the scope of the industry in the
longer run.

Insurance is the business of providing protection against financial aspects of risk, such as
those to property, life health and legal liability. It is one method of a greater concept
known as risk management –which is the need to mange uncertainty on account of
exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who are
exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect
the assets but only compensates the economic or financial loss.

In insurance the insured makes payment called “premiums” to an insurer, and in return is
able to claim a payment from the insurer if the insured suffers a defined type of loss. This
relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the
premium money from the time they receive it until the time they need it to pay claims.
This money is called the float. When the investments of float are successful they may
earn large profits, even if the insurance company pays out in claims every penny received
as premiums. In fact, most insurance companies pay out more money than they receive in
premiums. The excess amount that they pay to policyholders is the cost of float. An
insurance company will profit if they invest the money at a greater return than their cost
of float.

Reasons for insurance:

    To financially support family members in the event of untimely death/ disability of
        earning member
    To cover medical expenses of the insured in the event of illness
    To cover risk of loss of property in the event of any uncertainty

Classification of insurance:

The insurance industry in India can broadly classified in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as “life insurance provides a sum of money if the person
who is insured dies while the policy is in effect”.

In 1818 British introduced to India, with the establishment of the oriental life insurance
company in Calcutta. The first Indian owned Life Insurance Company; the Bombay
mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first
statuary measure to regulate the life insurance business in India. In 1983, the earlier
legislation was consolidated and amended by the insurance act, 1938, with
comprehensive provisions for detailed effective control over insurance. The union
government had opened the insurance sector for private participation in 1999, also
allowing the private companies to have foreign equity up to 26%. Following the opening
up of the insurance sector, 12 private sector companies have entered the life insurance

Benefits of life insurance:

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in short term and
long term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

“A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk
being proposed whether requested or not”.

2) Principle of insurable interest:

“Relationships with the subject matter (a person) which is recognized in law and gives
legal right to insure that person”.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in India
in 1850, whose shares were mainly held by the British. The first general insurance
company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was
stabilized in 1907 . there emerged many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of General
Insurance Corporation (GIC) OF India undertook the post-nationalization general
insurance business.

         Life Insurance Corporation               General Insurance Corporation
         ICICI Prudential Life Insurance          National Insurance Company
         HDFC Standard Life Insurance             The New India Insurance Company
         Max New York Life Insurance              The Oriental Insurance Company
         Birla Sun Life Insurance                 United India Insurance Company
         Om Kotak Mahindra Life Insurance         Reliance General Insurance
         Reliance Life Insurance                  TATA-AIG Insurance
         Allianz Bajaj Life Insurance             Royal Sundar ram Alliance General
         Dabur CGU Life Insurance                 Insurance
         ING Vyasa Life Insurance                 Bajaj Alliance General Insurance
         SBI Life Insurance                       ICICI Lombard Insurance

The Insurance Regulatory and Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector
insurance companies. The other decisions taken simultaneously to provide the supporting
systems to the insurance sector and in particular the life insurance companies were the
launch of the IRDA’s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell
their products, which are expected to be introduced by early next year.

Duties, Powers and Functions:
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
Subject to the provisions of Act and any other law for the time being in force, the
authority shall have the duty to regulate, promote and insure orderly growth of insurance
business and re-insurance business.

Without prejudice to the generality of the provisions contained in sub section (1), the
powers and functions of the authority shall include,

1.   Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend
     or cancel such registration.
2.   Protection of the interest of the policyholders, insurable interest, settlement of
     insurance claim, surrender value of policy, and other terms and contracts of
3. Specify requisite qualifications, code of conduct, practical training for intermediary
     or insurance intermediaries and agents.
4.   Specifying the code of conduct for surveyors and loss assessors.
5.   Promoting efficiency in the conduct of insurance business.
6.   Promoting and regulating organizations connected with the insurance and re-
     insurance business.
7.   Levying fees and other charges for carrying out the purpose of this act.
8.   Calling for information from, undertaking inspection of, conduction enquiries and
     investigations    including    audit   of   the   insurers,   intermediaries,   insurance
     intermediaries and other organizations connected with the insurance business.
9.   Control and regulations of the rates, advantages, terms and conditions that may be
     offered by insurer in respect of general insurance business not so controlled and
     regulated by the Tariff Advisory Committee under the section 64U of the Insurance
     Act, 1938(4 of 1938).
10. Specifying the firm and manner in which books of account shall be maintained and
     statement of accounts shall be rendered by insurers and other insurance
11. Regulating investments of funds by insurance companies.
12. Regulating maintenance of margin of solvency.
13. Adjudications of disputes between insures and intermediaries or insurance
14. Supervising the functioning of the Tariff Advisory Committee.

15. Specifying the percentage of premium income of the insurer to finance schemes for
     promoting and regulating professional organizations referred to in clause (f).
16. Specifying the percentage of life insurance business and general insurance business
     to be undertaken by the insurer in the rural or social sector.
17. Exercising such other powers as may be prescribed.
18. Exercising for the License

The IRDA has prescribed both qualifications and the disqualifications for a person to be
given a license:-

The person must be :
1. At least 18 years old.
2. Must have passed at least 12th standard or more (if the person is appointed in a place
   with population of 50,000or more), 10th standard otherwise.
3. Have undergone for at least 100 hours in life or general insurance business as the case
   may be form an institute, approved and notified by the authority.
4. Should have also passed the pre-recruitments examination conducted by the Insurance
   Institute of India or any other examination body recognized by the authority.
5. In case of an applicant for the composite insurance agent, the person should have
   completed at least 150 hours practical training in life and general insurance business,
   which may be spread over six to eight weeks.

The factors that would prevent a person from obtaining a license are that:
   1. Has been found to be unsound mind by a court of competent jurisdiction.
   2. Has been found guilty of criminal breach of trust, misappropriation, cheating,
       forgery or attempt to commit any such offence.

The licensed once issued can be cancelled whenever the person acquires a
disqualification. In case of companies and firms who want to become agents, the test of
qualification and disqualification would be applied to all the directors and partners.
There are two separate forms, one for individuals and other for those other than
individuals, in which the applications are to be made. The two forms are numbered by
IRDA-Agent VB and are annexed to the regulation. The applications in the respective
forms have to be made to the designated person appointed by the insurer sponsoring the

The application for the license to be accomplished by proofs:

   1. Of fee have been remitted to the authority.
   2. Of age.
   3. Of having completed the training and passed the prescribed examination.

The fee to be send to the authority directly is Rs.250 for new license and for renewals
applied for within the prescribed period, at least 30 days before the date of expiry. If the
application is made after the date of expiry it would be normally refused. But, if the
authority is satisfied that hardship would be caused otherwise, the license may be
renewed. Prior to renewal of the license the agent should have completed at least 25
hours practical training in life or general insurance or at least 50 hours practical training
in life and general insurance business in the case of a composite insurance agent.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies
have been registered.

Agency law regulations- agency
The basics of the insurance business in India are governed by the Agency law, which is
the part of the Indian Contracts Act, 1982. Further after the industry got opened up the

regulatory authority has been the Insurance Regulatory and Development Authority

Agent- The Definition

According to the section 182 of the Indian Contract Act, 1872, “an agent is a person
employed to do any for another or to represent another in dealing with a third person”. In
the insurance sector the term ‘Agent’ is ordinarily applied to a person engaged by the
insurer to procure new business.

Powers of Agent

An agent can act only to the extent of authority may be expressed or implied. An
authority is said to be expressed when it is given by words spoken or written. It is implied
when it is to be inferred from the circumstances of the case.

Life Insurance Agent

The Insurance Act, 1938 defines an agent as, “one who is licensed under the act and is
paid consideration of his soliciting or procuring insurance business including business
relating to continuance, renewal or revival of policies of insurance”.


What is customer satisfaction?
Customer satisfaction refers to how satisfied customers are with the products or services
they receive from a particular agency. The level of satisfaction is determined not only by
the quality and type of customer experience but also by the customer’s expectations.

A customer may be defined as someone who:
• has a direct relationship with, or is directly affected by your agency and receives or
relies on one or more of your agency’s services or products. Customers in human services
are commonly referred to as service users, consumers or clients.

• An organization with a strong customer service culture places the customer at the centre
of service design, planning and service delivery. Customer centric organizations will:

       determine the customers’ expectations when they plan
       listen to the customer as they design
       focus on the delivery of customer service activities
       Value customer feedback when they measure performance.

Why is it important?
There are a number of reasons why customer satisfaction is important in
Insurance Sector:
• Meeting the needs of the customer is the underlying rationale for the existence of
community service organizations. Customers have a right to quality services that deliver
• Organizations that strive beyond minimum standards and exceed the expectations of
their customers are likely to be leaders in their sector.
• Customers are recognized as key partners in shaping service development and assessing
quality of service delivery. The process for measuring customer satisfaction and obtaining
on organizational performance are valuable tools for quality and continuous service



For every problem there is a research. As all the researches are based on some
and my study is also based upon some objective and these are as follows.

   1. To understand the insurance business and products of ICICI Prudential life
      insurance co ltd.

   2. To find out the people’s perception about life insurance.

   3. To find out whether people were really aware of life insurance.

   4. To find out how people think about private life insurance.

   5. To find out what respondents expect from life insurance.

   6. To understand Consumer buying behavior

   7. To come out with conclusion and suggestions based on the analysis and the
      Interpretation of data.

                        Need and scope of the study

Needs of the study

Satisfaction is defined as . . .
“A person’s feeling of pleasure or disappointment resulting from comparing
a product’s perceived performance (or outcome) in relation to his or her
  Customer Satisfaction can be defined as supplying or gratifying all wants
or wishes, fulfilling conditions or desires, or the state of the mind anything
that makes a customer feel pleased or contented.

Consumer Behavior:
Consumer behavior is defined as the behavior that consumers display in
searching for, purchasing, using, evaluating and disposing of products and

services that they expect will satisfy their needs.
The study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services ideas, or experiences to
satisfy needs and desires

Customer value: The ratio between the customers’ perceived benefits
(economic, functional and psychological) and the resources (momentary,
time, effort, psychological) used to obtain those benefits.

Customer satisfaction: Customer satisfaction is the individual’s perception
of the performance of the product or service in relation to his or her
Motivation: The processes that account for an individual’s intensity,
direction, and persistence of effort toward attaining a goal.
Personality can be described ad the psychological characteristics that both
determine and reflect how person responds to his or her environment.

Perception is defined as the process by which an individual selects,
organizes, and interprets stimuli into a meaningful and coherent picture of
the world.

Consumer learning is the process by which individuals acquire the
purchase and consumption knowledge and experience they apply to future
related behavior.

Scope of the study

        This study can be conducted by comparing the performances &
        products of two private & a government insurance players in
        insurance industry.

        The number of respondents to be surveyed can be improved.

        The study can be conducted in Indore city only.

        This study can be conducted to analyze the market stand of ICICI
        Prudential life insurance Company limited.

    T h e jo i n t s t r e n g t h s

            A p o w e r f u l jo in t v e n t u r e p a r tn e r s h ip w it h e a c h c a r r y in g a s e t o f s tr e n g t h s
                                                  c o m p le m e n tin g e a c h o th e r s

   B ra n d s tre n g th                                                                                           R e p u ta tio n

                                                                                                                   In s u ra n c e
                                                                                                                   e x p e r tis e
   In f r a s t r u c t u r e

   C u s to m e r b a s e                                               P R U D E N T IA L                         P ro d u c t
                                                   IC IC I
   M a r k e t In n o v a t o r s                                                                                  D i s t r i b u t io n

   L o c a l k n o w le d g e                                                                                      O p e r a tio n s


The project is concerned with the “STUDY ON CUSTOMER
This study is very useful as the financial market become more

sophisticated      and     complex,      investor      needs     a      financial
intermediary who provides the required knowledge and
professional expertise on successful investing and Life insurance
is a form of insurance that pays monetary proceeds upon the
death of the insured covered in the policy. Essentially, a life
insurance policy is a contract between the named insured and
the insurance company wherein the insurance company agrees
to pay an agreed upon sum of money to the insured's named
beneficiary so long as the insured's premiums are current.


“Study of consumer behavior & customer satisfaction towards ICICI Prudential Life
Insurance Products”.

The research is carried on in a proper planned and systematic manner.

   •   The research was particularly a telephonic research. We have to sell products to
       list of people which include their names and contact numbers given by ICICI.
   •   During the telephonic we have to sell different products by explaining the benefits
       of a particular product, but. The minimum amount for selling a policy to a
       customer is equal to or more then Rs. 12000 only.
   •   Age limit for selling a product/policies was 1 month to 60 yrs – this mean that a
       policy can be sold to person between the age of 1 month to 60 yrs and not
       anything exceeding or below it.


The research design of this project is exploratory. Though each research study has its own
specific purpose but the research design of this project on ICICI is exploratory in nature

as the objective is the development of the hypothesis rather than their testing.


Every project work is based on certain methodology, which is a way to systematically
solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data analysis.

According to Clifford Woody,

“Research Methodology comprises of defining & redefining problems, collecting,
organizing &evaluating data, making deductions &researching to conclusions.”

Accordingly, the methodology used in the project is as follows: -

Defining the objectives of the study

Framing of questionnaire keeping objectives in mind (considering the objectives)

Feedback from the employees

Analysis of feedback

Conclusion, findings and suggestions.

Sampling Technique Used

This research has used convenience sampling technique.

1) Convenience sampling technique: Convenience sampling is used in exploratory
research where the researcher is interested in getting an inexpensive approximation of the
truth. As the name implies, the sample is selected because they are convenient

Selection of Sample Size:

For the survey, a sample size of 50 has been taken into consideration.

Sources of Data Collection:

Research will be based on two sources:

1. Primary data

2. Secondary data


Questionnaire: Primary data was collected by preparing questionnaire for customers.
The questionnaire was filled through telephonic research.


Secondary data will consist of different literatures like books which are published,
articles, internet, the company manuals and websites of company-
Magazines and brochures are some other sources of secondary data followed for the

In order to reach relevant conclusion, research work needed to be designed in a proper

This research methodology also includes:-

   •     Familiarization with the concept of insurance and its various terms.

   •   Thorough study of the information collected.
   •   Conclusions based on findings.

Statistical Tools Used

The main statistical tools used for the collection and analyses of data in this project are:

   •   Questionnaire
   •   Pie Charts
   •   Bar Diagrams

                                Limitations of study

Limitations of study

Due to the following unavoidable and uncontrollable factors the factors,the result might
not be accurate. Some of the problems faced while conducting the survey are as follows:

   •   Time and cost constraints were also there.
   •   Chances of some biasness could not be eliminated.
   •   A Samples size of fifty has been use due to time limitations.
   •   A majority of respondents show lack of cooperation and are biased towards their
       own opinions.

Sampling plan:
It is very difficult to collect information from every member of a population .As
time and costs are the major limitation that the researcher faces.

A sample of 100 was taken the sample size of 100 individuals were selected on

the basis of convenient sampling technique. The individuals were selected in the
random manner to form sample and data were collected from them for the
research study.

                                  Industrial Profile

Insurance in India
The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360 degree turn witnessed over a
period of almost two centuries.

A Brief history of the Insurance Sector
The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance in India are;
1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one company-
the Life Insurance Corporation of India (LIC). With the Insurance Regulatory and
Development Authority (IRDA) Bill 1999 paving the way for entry of private companies
into both life and general sectors there was bound to be new-found excitement- and new
success stories. Today, just three years since their entry, their cumulative share has
crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on a
growth path.
The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to 3.3%
in 2002-03; and life insurance has emerged as the dominant contributor to this growth.
The industry presented a huge opportunity. Life insurance penetration, for instance, was
at an abysmal 22% of the insurable population. However, private players have had to rise
to many challenges. They were faced with attitudinal barriers towards the category and
the perception that insurance was only a tax saving tool. Insurance per se had lost it basic
rationale: protection. It wasn’t surprising then that its potential lay frozen and
unexploited. The challenge for private insurance players was to change the established
category driver and get customers to evaluate life insurance as an investment-cum-
protection tool.

    Insurance in India started without any Regulation in Nineteenth
    It was story of a typical colonial era. A few British companies
    the market mostly in large urban centers.

   Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.
   Second, even if they were insured, they were treated as substandard lives and extra
   premium was charged. Third, there were gross irregularities in the functioning of Life
   insurance was nationalized in the year 1956, and then general insurance was
   nationalized in the year 1972. In 1999, the private insurance companies were allowed
   back again into insurance sector with maximum cap of 26 percent foreign holding.

♦ 1818 The British introduce to India, with the establishment of the
  Oriental Life Insurance company in Calcutta.
♦ 1850 Non life insurance debuts, with Triton Insurance Company.
♦ 1870 Bombay Mutual life Assurance Society is the first Indian-
  owned life insurer
♦ 1907 Indian mercantile Insurance is the first Indian non-life
♦ 1912 The Indian life assurance companies’ act enacted to regulate
  the life insurance business.
♦ 1938 The insurance act, which forms the basis for most current
  insurance laws, replaces earlier act.
♦ 1956 Life insurance nationalized, government takes over 245
  Indian and foreign insurers and provident societies.
♦ 1956 Government sets up LIC
♦ 1972 Non life insurance nationalized, GIC set up.
♦ 1993 Malhotra committee, headed by former RBI governor
  R.N.Malhotra, set up to draw up a blue print for insurance sector
♦ 1994 Malhotra Committee recommends re-entry of private
  players, autonomy ot PSU insurers.
♦ 1997 Insurance regulator IRDA (Insurance Regulatory and
  Development Authority) set up.
♦ 2000 IRDA starts giving licensed to private insurers
♦ 2001 ICICI Prudential Life Insurance came into the market to sell
  a policy.

   ♦ 2002 Banks were allowed to sell insurance plans, as TPAs enter
       the scene, insurers start settling non-life claims in the cashless

The Insurance Regulatory and Development Authority (IRDA):

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of the
IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell
their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.

With the demographic changes and changing life styles, the demand for insurance cover
has also evolved taking into consideration the needs of prospective policyholder for
packaged products. There have been innovations in the types of products developed by the

insurers, which are relevant to the people of different age groups, and suit their
requirements. Continued innovations in product development has resulted in a wide range

of flexible products to meet the requirements for cover at different stages of life -today a
variety of products are available ranging from traditional to Unit linked providing
protection towards child, endowment, capital guarantee, pension and group solutions. A
number of new products have been introduced in the life segment with guaranteed
additions, which were subsequently withdrawn/toned down; single premium mode has
been popularized; unit linked products; and add-on/riders i nc l udi ng accidental
death; dismemberment, critical illness, fixed term assurance risk cover, group hospital
and surgical treatment, hospital cash benefits, etc. Comprehensive packaged products
have been popularized with features of endowment, money back, whole life, single
premium, regular premium, rebate in premium for higher sum assured, premium mode
rebate, etc., together with riders to the base products.

Historical Perspective

   ⇒ Prior to 1956       -242 companies operating
   ⇒ 1956         -Nationalization- LIC monopoly player -Government control
   ⇒ 2001        -Opened up sector
Contribution to Indian Economy

       Life Insurance is the only sector which garners long term savings.
       Spread of financial services in rural areas and amongst socially less privileged.
       Long term funds for infrastructure.
       Strong positive correlation between development of capital markets and
       insurance/pension structure.
       Employment generation.

Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.

       Public Monopoly

         - 2000 Offices
         - Over 800,000 agents
      Distribution through tied agents only
      Sales approach primarily on a tax savings platform
      Traditional style product offering : Endowment and money back plans
      Inadequate and inflexible products
      Pensions: Small part of product offer
      Limited focus on customer needs

Improving Service Standards

   ⇐ Pre Deregulation – Limited Distribution

   Channel Access         Service Points              Use of IT

      ⇒ Advisors              ⇒ Branch Network             ⇒ Limited use of IT

   ⇒ Post Deregulation – Service through Distribution

   Multi Channel Access  Multiple     Service Use of IT
      ⇒ Advisors            ⇒ Call Centers       ⇒ Shorter time around
      ⇒ Brokers        &    ⇒ Email                  time
        Corporate agents    ⇒ Website            ⇒ Claims
      ⇒ Bancassurance       ⇒ Branch Network     ⇒ Policy Issuance

                                  Company profile

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of
India's foremost financial services companies and Prudential plc - a leading international
financial services group headquartered in the United Kingdom. Total capital infusion
stands at Rs. 42.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc
holding 26%.
We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of
over 2000 branches (inclusive of 1,095 micro-offices), over 261,000 advisors; and 24
bancassurance partners. ICICI Prudential is the first life insurer in India to receive a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three

years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life
Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted
Brands'. As we grow our distribution, product range and customer
base, we continue to tirelessly uphold our commitment to deliver worldclass
financial solutions to customers all over India.


The ICICI Prudential edge comes from our commitment to our customers, in all that we
do - be it product development, distribution, the sales process or servicing. Here's a peek
into what makes us leaders.
1. Our products have been developed after a clear and thorough understanding of
customers' needs. It is this research that helps us develop Education plans that offer the
ideal way to truly guarantee your child's education, Retirement solutions that are a hedge
against inflation and yet
promise a fixed income after you retire, or Health insurance that arms you with the funds
you might need to recover from a dreaded disease.

2. Having the right products is the first step, but it's equally important to ensure that our
customers can access them easily and quickly. To this end, ICICI Prudential has an
advisor base across the length and breadth of the country, and also partners with leading
banks, corporate agents and brokers to distribute our products .

3. Robust risk management and underwriting practices form the core of our business.
With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a
smooth and hassle-free claims process.

4. Entrusted with helping our customers meet their long-term goals, we adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, our 28,000 plus strong team is given the opportunity to
learn and grow, every day in a multitude of ways. We believe this keeps them engaged
and enthusiastic, so that they can deliver on our promise to cover you, at every step in

The company’s vision is “to make ICICI Prudential the dominant life and Pensions player
built n trust by world-class people and service”.

They hope to achieve this by:
1. Understanding the needs of customers and offering them superior products and
2. Leveraging technology to device customers quickly, efficiently and conveniently.
3. Developing and implementing superior risk management and investment strategies to
    offer sustainable and stable returns to their policyholders.
4. Providing an enabling environment to faster growth and learning for their employees.
5. Building transparency in all their dealings.

The success of the company is due to its unflinching commitment to five core values:
    1. Integrity
    2. Customer first
    3. Boundary less
    4. Ownership
    5. Passion

Each of the core values describe what the company stands for, the qualities of their
people and the way they work.

    1. ICICI Bank set up its international boundary in fiscal 2002 to cater to the cross-
        bascules needs of client and leverage on products internationally.

   2. It currently has subsidiaries in United Kingdom and Canada, branches in
       Singapore and Behr in and representative offices in US, United Arabs emirates
       and Bangladesh.

   3. ICICI Banks equity shares are listed in INDIA on the stock exchange; Mumbai
       and the National Stock Exchange on India Limited and its American Depository
       Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).


ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank
with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on
30th June, 2005. 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 specialized subsidiaries and affiliates in the areas of investment banking, life
and non-life insurance, venture capital and asset management. ICICI Bank is a leading
player in the retail banking market and has over 13 million retail customer accounts. The
Bank has a network of over 570 branches and extension counters, and 2,000 ATMs.

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, policyholders 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.


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. 42.72 billion (as of June 30, 2008) with
ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the quarter
ended June 30, 2008, the company garnered Retail Weighted New Business Premium of
Rs. 1,174 crores as against Rs 810 crores for the quarter ended June 30, 2007, thereby
posting a growth of 45% and has underwritten over 6 lakh policies over this period. The
company has assets held over Rs. 30,600 crore as on August 31, 2008.

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.


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 2000 branches (including
1,095 micro-offices) and an advisor base of over 261,000 (as on August 31, 2008). The
company has 24 banc assurance partners having tie-ups with ICICI Bank, Bank of India,
South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-op Bank,
Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri Sindhudurg
Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank, Aryawart
Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani
Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli
Urban Co-Operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative
Bank, The Haryana State Co-Operative Bank, Renuka Nagrik Sahakari Bank, Amanath
Co-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank


Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large
advisor force that targets various customer segments. The strength of tied agency lies in
an aggressive strategy of expanding and procuring quality business. With focus on sales
& people development, tied agency has emerged as a robust, predictable and sustainable
business model.

Banc assurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through banks and
alliances. Within a short span of two years, and with nearly a large number of partners, B
& A has emerged as a vital component of the company’s sales and distribution strategy,
contributing to approximately one third of company’s total business. The business
philosophy at B&A is to leverage distribution synergies with our partners and add value
to its customers as well as the partners. Flexibility, adaptation and experimenting with
new ideas are the hallmarks of this channel.

                             Board of the Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.

Ms. Chanda D. Kochhar, Chairperson
Mr. N. S. Kannan, Director
Mr. K. Ramkumar, Director
Mr. Barry Stowe, Director
Mr. Adrian O’Connor, Director
Mr. Keki Dadiseth, Independent Director
Prof. Marti G. Subrahmanyam, Independent Director
Ms. Rama Bijapurkar, Independent Director
Mr. Vinod Kumar Dhall, Independent Direct
Mr. V. Vaidyanathan, Managing Director & CEO

Management Team
The ICICI Prudential Life Insurance Company Limited Management team comprises
reputed people from the finance industry both from India and abroad.

Mr.V.Vaidyanathan, Managing Director & CEO
Dr. Avijit Chatterjee, Appointed Actuary
Mr. Puneet Nanda, Executive Vice President

                        Managing Director & CEO
                        ICICI Prudential Life Insurance Company Limited

Mr. V. Vaidyanathan is the Managing Director & CEO of ICICI Prudential Life
Insurance Company.

Vaidyanathan was a lateral hire and joined the ICICI Group in 2000 with 10 years of
banking experience. Within a year, he was appointed the Managing Director of ICICI
Personal Financial Services Limited, with the responsibility to set up the consumer
financing business for ICICI Limited. At 38, he was appointed as Executive Director on
the Board of ICICI Bank and was responsible for Retail Banking, SME Banking and
Rural Banking businesses.

During his career with the ICICI Group, he has built a strong retail banking business,
which includes deposits, private banking, mortgages, autoloans and credit cards and has
also led these businesses to market leadership. He also headed the Small and Medium
enterprises (SME) banking and Rural Banking Business of ICICI Bank. Under his
leadership over the last decade, the retail banking business has grown to 1400 bank
branches in 800 cities, 25 million customers , USD 30 bn in assets, a corresponding
liability base, and a strong team of 26000 employees . The bank continues to add over 3
million new customers every year. Having handled both sides of the balance sheet over
the past two decades, he is a banker whose experience goes across cycles. He has
groomed and left behind a strong leadership team in ICICI Bank.

He was also on the board of ICICI Lombard General Insurance, and was the chairman of
ICICI Home Finance Co limited. He was earlier on the board of CIBIL, India’s first
credit bureau.

His contribution in this sphere is widely recognized in industry circles and within the

ICICI Group. He was recently profiled among ‘India's Top 25 executives’ by Business
Today, a leading business magazine in India.

He is an alumnus of Birla Institute of Technology and Harvard Business School, AMP.
He is an avid runner, has participated in 4 marathons and occasionally plays golf. He
lives in Mumbai with his family including his father, wife and three children.

                        Dr. Avijit Chatterjee
                        Appointed Actuary
                        ICICI Prudential Life Insurance Company Limited

Avijit Chatterjee is Appointed Actuary of ICICI Prudential Life Insurance where he has
overall responsibility for statutory reporting, risk appetite, pricing, valuation, reinsurance,
etc. In addition to his role as Chief Actuary, Avijit will also be responsible for the entire
Risk framework for the company alongwith internal audit and legal departments. He has
been with the company since September 2007.

Prior to joining ICICI Prudential Life, Avijit spent 15 years in various positions in one of
UK's leading life insurance company. His areas of work included group-wide capital
management, product supervision, management of the group actuarial team and providing
actuarial input on all material transactions conducted by group entities.

Avijit holds a Ph.D. in pure mathematics, is a Fellow of the Faculty of Actuaries (FFA) in
Scotland and is also a Fellow of the Institute of Actuaries of India (FIAI).

                        Mr. Puneet Nanda
                        Executive Vice President
                        ICICI Prudential Life Insurance Company Limited

Mr. Puneet Nanda is Executive Vice President at ICICI Prudential Life Insurance
Company. He looks after the Corporate Center which includes Investment Management,
Human Resources, Finance and Accounts, Compliance, Investor/analyst relationship,
Business Intelligence and Corporate Strategy, Product Development, Corporate
Communications and Sales Strategy.
Mr. Nanda has been with the company since inception and was the Chief Investment
Officer responsible for the setting up and managing the investment function prior to
getting elevated to his current role.

Prior to joining ICICI Prudential, Mr. Nanda has worked with a leading investment bank
and an international financial services company.

Mr. Nanda is an engineer by qualification and has also completed his Post Graduate
Diploma in Management from the Indian Institute of Management, Lucknow in 1994.


Market Research reveals that the values people associate with ICICI Prudential are,
indeed, those that the company hopes to project: lifelong protection and value for money.
The core value is protecting your loved ones, throughout life’s ups and downs. It is a
powerful proposition; one, which ICICI Prudential, is taking into the market place.


Beginning operations in December 2000, ICICI Prudential’s success has been meteoric,
becoming the number one private life insurer within months of launch. Today, it has one
of the largest distribution networks amongst private life insurers in India, with branches
in 54 cities. The total number of policies issued stands at more than 780,000 with a total
sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total received
premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20
billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven
mainly by the company’s range of unique unit-linked policies and pension plans. The
company’s retail market share amongst private companies stood at 36%, making it clear
leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged
Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by
ACNeilsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’
award for the second year running. The company is also proud to have won Silver at
EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudential
was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.

In Keeping with its belief that a happy customer is the best endorsement, ICICI
Prudential has embraced the ‘SIX SIGMA’ approach to quality, an exercise that begins
and ends with the customer from capturing his voice to measuring and responding to his
experiences. This initiative is currently helping the company improve processes,
turnaround times and customer satisfaction levels. Another Novel introduction is the
ICICI Prudential Lifestyle Rewards Club, India’s first rewards programme for Life
Advisors; it allows ICICI Prudential Advisors to redeem points for items ranging from
kitchenware to gold, white goods, and even international holidays.

Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the
application form is received by COPS, but it is pending for issuance due to further
clarifications required from the customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary documents attached to it
& accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details not filled in
the form or necessary documents not submitted is a Reject. It is then sent back to the

Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is called a

6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of the policy.

7) Lapse

A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.

8) Freelook

Post issuance of the policy, the policyholder has the option to turn down the policy within
15 days from the date of issuance. This period of 15 days is called Freelook Period.

9) Surrender: When a customer wants to discontinue with the policy.

                             ProductS And Services

ICICI Prudential’s ultimate promise is financial security. A strong brand certainly boosts
sale, but without customer-friendly, innovative products, even the best brand would not
last long.

ICICI Prudential’s product range has been developed on the understanding that different
people have their own sets of needs at various stages of their lives. It has thus built a
flexible portfolio of products that can be customized to cater to varying needs of people
at each stage, and thus ensure protection in every step of life. The company’s philosophy
has been to help customers understand their financial needs and work closely with them
to customize a product that would meet. Advisors can offer a complete range of products
–Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans

– and tailor a flexible solution to meet customers’ changing needs at every stage of life. In
fact, ICICI Prudential was the first to un-bundle product benefits, pioneering the concept
of ‘riders’ and soon after introduce comprehensive market-linked and retirement plans.

ICICI Prudential has launched a handful of products that are analyzed below:

ICICI Prudential's life insurance products may be loosely categorized under three forms:
pure life insurance products without an investment angle to them; a product that is a mix
of a cumulative investment scheme and an insurance product; and, finally, standard
products such as money-back and endowment policies.

Single Premium Bond: The Single Premium Bond is the name of a policy that combines
the features of an investment in a cumulative deposit scheme with that of an insurance

Policy-holders are required to pay a one-time premium based on a target sum assured. At
maturity, the policy-holder gets the sum assured and guaranteed additions that work out
to a compound return of 4.5 per cent the sum assured.

The insurance part of the package comes in the form of death benefits that are paid in the
case of the demise of the policy-holder. The size of the death benefit is linked to the
number of years left for the policy to expire. On maturity date, the maturity value is also
paid in addition to the death benefits that would have been paid earlier.

Life Guard policies: The company offers two pure life insurance products that have an
umbrella name, Life Guard. One of them involves a one-time premium for which there
are no maturity benefits. The other requires regular premium payments that are returned
at the end of the policy. Life Guard offers absolutely no investment-related return and is
suitable for individuals looking for an unadulterated insurance package.


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

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

   •   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.

   •   LifeTime and LifeTime II offer customers the flexibility and control to customize
       the policy to meet the changing needs at different life stages. Each offer 4 fund
       options –Preserver, Protector, Balancer and Maximiser.

   •   LifeLink Super is a single premium Unit Linked Insurance Plan which combines
       life insurance cover with the opportunity to stay invested in the stock market.

   •   Premier Life is a limited premium paying plan that offers customers life
       insurance cover till age of 75.

   •   InvestShield Life is a Unit Linked plan that provides capital guarantee on the
       invested premiums and declared bonus interest.

   •   InvestShield Cash is a Unit Linked plan that provides capital guarantee on the
       invested premiums and declares bonus interest along with flexible liquidity

   •   InvestShield Gold is a Unit Linked plan that provides capital guarantee on the
       invested premiums and declares bonus interest along with limited premium
       payment terms.

Protection Solutions

   •   LifeGuard is a protection plan, which offers life cover at very low cost. It is
       available in 3 options –level term assurance with return of premium and single

   •   HomeAssure is a mortgage reducing term assurance plan designed specifically to
       help customers cover their home loans in a simple and cost-effective manner.

Child Plans
   •   SmartKid education 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 child’s life.
       SmartKid plans are also available in unit-linked form – both single premium and
       regular premium.

Retirement Solutions
   •   ForeverLife is a retirement product targeted at individuals in their thirties.
   •   SecurePlus Pension is a flexible pension plan that allows one to select between 3
       levels of cover.
   •   Market-linked retirement products
   •   LifeTime Pension II is a regular premium market-linked pension plan.
   •   LifeLink Pension II is single premium market linked pension plan.
   •   InvestShield Pension is a regular premium pension plan with a capital guarantee
       on the investible premium and declared bonuses
   •   Golden Years: is a limited premium paying retirement solution that offers tax
       benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and
   •   payout stages.

Health Solutions

       •   Health Assure and Health Assure Plus: Health Assure is a regular premium
           plan which provides long term cover against 6 critical illnesses by providing
           policy holder 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

   Group Insurance Solutions
   ICICI Prudential also offers Group Insurance Solutions for companies seeking to
   enhance benefits to their employees.
   ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers
   fund their statutory gratuity obligation in a scientific manner. The plan can also be
   customized to structure schemes that can provide benefits beyond the statutory
   ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
   contribution superannuation scheme to provide a retirement kitty for each member of
   the group. Employees have the option of choosing from various annuity options or
   opting for a partial commutation of the annuity at the time of retirement.

  ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide
affordable cover to members of a group. The cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.

   Flexible Rider Options

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

    1. Accident and disability benefit: If death occurs as the result of an accident
       during the term of the policy, the beneficiary receives an additional amount
       equal to the rider sum assured under the policy. If the death occurs while
       traveling in an authorized mass transport vehicle, the beneficiary will be
       entitled to twice the sum assured as additional benefit.
    2. Accident Benefit: This rider option pays the sum assured under the rider on
       death due to accident.
    3. Critical Illness Benefit: Protects the insured against financial loss in the event
       of 9 specified critical illnesses. Benefits are payable to the insured for medical
       expenses prior to death
    4. 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 in SmartKid, SecurePlus, and CashPlus.
    5. Waiver of Premium: In case of total and permanent disability due to an
       accident, the premiums are waived till maturity. This rider is available with
       Secure Plus and Cash Plus.


                   i.   ICICI Prudential is the largest private player in India, with a
                        market share of around 36% amongst the private players
                  ii.   ICICI Prudential has deposited a paid up capital of Rs 925
                        crore with IRDA caution deposit, the highest among all the
                        life insurance company in India where as LIC has deposited
                        Rs 60 crore so far.

                  iii.   ICICI Prudential is the first life insurance company to offer
                         ECS debit facility.
                  iv.    ICICI Prudential is the first company to introduce unit link
                         life insurance and pension products. Presently the maximum
                         numbers of ranges are under ULIP life insurance, investment
                         as well as pension plan.
                   v.    Products
    •   Flexibility to switch your fund value at your own discretion four times a year
        viz. maximizer, protector, balancer, preserver.
    •   Greater transparency-policy holder knows what is happening to his money and
        where the company has invested his money.
    •   Liquidity options-you can make complete or partial withdrawals any time
        after 3 years.
    •   Life insurance plans are eligible for deduction under sec 80.


                    i.   Industry in nascent stage.
                   ii.   Rural areas still not covered.
                  iii.   Not very known among Indian population.
                  iv.    Lack of credibility among the people because ICICI being a
                         private player.
                   v.    Premiums are high as compared to its competitors.
                  vi.    Very few branches in the country.

                vii.       Products:
                              •   The policy doesn’t have the surrender option before
                                  third year.
                              •   Plan does not offer any guarantee or assured return.
                              •   Product profile is not very comprehensive.
                              •   Mortality, management and administrative charges are
                                  sky scrapping as compared to its competitors.


                  i.       Liberalization of Indian economy.
                 ii.       As the industry is growing the whole market is virgin.
                iii.       The whole private sector is opened to be trapped even though
                           the competition is fierce from government owned insurance
                iv.        It’s a volume business that is even if the company has few
                           good corporates the turnover cease to increase by manifold.
                 v.        Products:
                       •     Preserver funds look good due to comfortable liquidity in
                             the economy and there is little chance hike in short-term
                             rate by RBI.
                       •     Finance minister unveiled a budget favoring consumer
                             spending, boosting demand and therefore higher economic


                  i.       The government players will become aggressive thus growth
                           is going to be tough.

 ii.   Entry of other players is not ruled out.
iii.   Apprehension towards ICICI Prudential being a private life
       insurance company.
iv.    We expect the industry to rationalize in future that is mergers
       and acquisitions will happen, which will impact the industry
       and ICICI Prudential fortunes.
 v.    Products:
          •   Past performance of these plans is not indicative of
              the future performance of the plan.
          •   The sum invested in the funds is subject to market
              risks and there can be no assurance that the objective
              of plan will be achieved.
          •   All benefits payable under the policy are subject to tax
              laws and other financial enactment, as they exist from
              time to time

                    THEORETICAL APPROACH

Meaning and Defination of Marketing

       Marketing, more than any other business functions deals with customers. Creating
customer’s value and satisfaction are the heart of modern marketing thinking and
practice. Marketing is the delivery of customers by promising superior value and to keep
current customers by delivering satisfaction.

       The American marketing association has defined marketing, as “Marketing is the
performance of business activities that direct the flow of goods and services from
producers to consumer or user.”

       Philip Kotler definition of marketing is “Marketing is a social and managerial
process by which individuals and groups obtain what they need and want through
creating and exchanging products and value with other.”

Functions of Marketing

        Marketing as business authorities conceive it today is aboard function of business
composed of many elements.

Until recently even outstanding authorities defined marketing as “The performance of
business activities that direct the flow of goods and services from producers to consumer
or user.” while this definition still not broad enough. It does not encompass the idea that
marketing also includes the identification of the market and the market’s needs and that is
guides the development of the products and services to fulfill those needs profitably.

Various Activities That A Marketer Follows

   Identifying specific markets for products and services;

   Identifying existing and future needs and wants of these markets; Guiding the
   development of products, packages and services to fill these needs at a profit, and
   selling delivering and collecting for, and effecting legal transfer of these goods
   services to the ultimate consumer or user.

   An even simpler definition and one easier to remember is the right product or service
   at the right price at the right place at the right time and doing it at a profit.

Definition Of Marketing Research

       The American Marketing Association defines marketing research as “The
systematic gathering, recording and analysis of data about problems relating to marketing

of goods and services.”

        According to Kotler, “Marketing research is the systematic design, collection
analysis and reporting of data and finding relevant of a specific marketing situation
facing the company.”

        The key word in the above definition is “Systematic.” this is the difference
between research and haphazard gathering of findings. For a study/research to be
systematic there must be two qualities in the least. First, it should be orderly so that the
measurements have accuracy and there is a fair cross–section. Second, it should be
impartial in analysis and interpretation

        Customer satisfaction refers to the extent to which customers are happy with the
products and services provided by a business. Customer satisfaction levels can be
measured using survey techniques and questionnaires. Gaining high levels of customer
satisfaction is very important to a business because satisfied customers are most likely to
be loyal and to make repeated orders and to use a wide range of services offered by a
The need to satisfy customer for success in any commercial enterprises is very obvious.
The income of all commercial enterprises is derived from the payments received for the
products and services to its external customers. Customers are the sole reason for the
existence of commercial establishments.
Since sales are the most important goal of any commercial enterprise, it becomes
necessary to satisfy customers. For customer satisfaction it is necessary to establish and
maintain certain important characteristics like:
a. Quality
b. Fair prices
c. Good customer handling skills
d. Efficient delivery
e. Serious consideration of consumer complaints.
Satisfaction is the feeling of pleasure or disappointment attained from comparing a

products perceived performance (outcome) in relation to his or her expectations. If the
performance falls short of expectations, the customer is dissatisfied. If the performance
matches the expectations, the customer is satisfied. If the performance exceeds
expectations, the customer is highly satisfied or delighted

There are 7 steps to Satisfaction Customer
It's a well known fact that no business can exist without customers. In the business of
Website design, it's important to work closely with your customers to make sure the site
or system you create for them is as close to their requirements as you can manage.
Because it's critical that you form a close working relationship with your client, customer
service is of vital importance. What follows are a selection of tips that will make your
clients feel valued, wanted and loved.
1. Encourage Face-to-Face Dealings
This is the most daunting and downright scary part of interacting with a customer. If
you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest
assured, though, it does get easier over time. It's important to meet your customers face to
face at least once or even twice during the course of a project.
My experience has shown that a client finds it easier to relate to and work with someone
they've actually met in person, rather than a voice on the phone or someone typing into an
email or messenger program. When you do meet them, be calm, confident and above all,
take time to ask them what they need. I believe that if a potential client spends over half
the meeting doing the talking, you're well on your way to a sale.
2. Respond to Messages Promptly & Keep Your Clients Informed
This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all
customers' queries within the space of a few hours, but at least email or call them back
and let them know you've received their message and you'll contact them about it as soon
as possible. Even if you're not able to solve a problem right away, let the customer know
you're working on it.
A good example of this is my Web host. They've had some trouble with server hardware
which has caused a fair bit of downtime lately. At every step along the way I was emailed

and told exactly what was going on, why things were going wrong, and how long it
would be before they were working again. They also apologized repeatedly, which was
nice. Now if they server had just gone down with no explanation I think I'd have been
pretty annoyed and may have moved my business elsewhere. But because they took time
to keep me informed, it didn't seem so bad, and I at least knew they were doing
something about the problems. That to me is a prime example of customer service.
3. Be Friendly and Approachable
A fellow Site Pointer once told me that you can hear a smile through the phone. This is
very true. It's very important to be friendly, courteous and to make your clients feel like
you're their friend and you're there to help them out. There will be times when you want
to beat your clients over the head repeatedly with a blunt object - it happens to all of us.
It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at
all times remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If a
customer has a problem, what should they do? If the first option doesn't work, then what?
Should they contact different people for billing and technical enquiries? If they're not
satisfied with any aspect of your customer service, who should they tell?
There's nothing more annoying for a client than being passed from person to person, or
not knowing who to turn to. Making sure they know exactly what to do at each stage of
their enquiry should be of utmost importance. So make sure your customer service policy
is present on your site -- and anywhere else it may be useful.
5. Attention to Detail (also known as 'The Little Niceties')
Have you ever received a Happy Birthday email or card from a company you were a
client of? Have you ever had a personalized sign-up confirmation email for a service that
you could tell was typed from scratch? These little niceties can be time consuming and
aren't always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers, it's
something. It shows you care; it shows there are real people on the other end of that
screen or telephone; and most importantly, it makes the customer feel welcomed, wanted

and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.
Take this as an example: you're working on the front-end for your client's exciting new
ecommerce Endeavour. You have all the images, originals and files backed up on your
desktop computer and the site is going really well. During a meeting with your client
he/she happens to mention a hard-copy brochure their internal marketing people are
developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep
complete with high resolution versions of all the images you've used on the site. A note
accompanies it which reads:
"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide
you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able
to make use of some in your brochure."
Your client is heartily impressed, and remarks to his colleagues and friends how very
helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in
your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy
customer will send several referrals your way.
7. Honour Your Promises
It's possible this is the most important point in this article. The simple message: when you
promise something, deliver. The most common example here is project delivery dates.
Clients don't like to be disappointed. Sometimes, something may not get done, or you
might miss a deadline through no fault of your own. Projects can be late, technology can
fail and sub-contractors don't always deliver on time. In this case a quick apology and
assurance it'll be ready ASAP wouldn't go amiss.
Customer service, like any aspect of business, is a practiced art that takes time and effort
to master. All you need to do to achieve this is to stop and switch roles with the customer.
What would you want from your business if you were the client? How would you want to
be treated? Treat your customers like your friends and they'll always come back.

Customer Satisfaction Strategies Followed By Icici prudential

       The different strategies followed by Icici prudential consists of Customer
relationship management, strategy to providing better facility to the owner, and strategy
to provide better after sales service to customer.

Customer Relationship Management
       CRM as a tool was used to create positive word-of-mouth, to monitor customer
experiences and generate referrals. A series of CRM activities were implemented with
regular direct communication, events and customer satisfaction surveys, etc.

       This study will help me to find and customer satisfaction level, To know the
reason for decline of customers at service station, To know the perception of customers
regarding the charges or rates offered by the service centers and To know any suggestion
from customers to improve the service centers.

       The study is scheduled through primary data and other information thereby
preparing Questionnaire, which focus of various variables, and attributes that are
important to know the satisfaction level and the factors affecting the purchase decision.

       The survey caused at the Hyderabad Dist with the sample size of 100.The
collected data are tabulated and analyzed data and all suggestions are given according to
the analyzed data graphs and charts are used to illustrate the statistical data and findings.

Companies use the following methods to measure customer satisfaction.

   1) Complaints and suggestion system:

   Companies obtaining complaints through their customer service centers, and further
suggestions were given by customers to satisfy their desires.

    2) Customer satisfaction surveys

    Responsive companies obtain a direct measure of customer satisfaction by periodic
surveys. They send questionnaires to random sample of their customers to find out how
they feel about various aspects of the company’s performance and also solicit views on
their competitor’s performance. It is useful to measure the customer’s willingness to
recommend the company and brand to other persons.

    3) Lost Customer Analysis.

Companies should contact customers who have stopped buying or who have switched to
another supplier to learn why this happened

    4) Consumer Behavior Vs Consumption Behavior

    Consumer behavior refers to the manner in which an individual reaches decision
related to the selection, purchases and use of goods and services. Walters and Paul says
that, consumer behavior is the process whereby the individuals decide what, when, how
and from whom to purchase goods & services.

Consumer behavior relates to an individual person (Micro behavior) where as
consumption behavior relates to and to the mass or aggregate of individuals (Macro
behavior) consumers behavior as a study focuses on the decision process of the individual
consumer or consuming unit such as the family.

In contrast the consumption behavior as a study is to do with the explanation of the
behavior of the aggregate of consumers or the consuming unit. Consumer is a pivot,
around which the entire system of marketing revolves. The study of buyer behavior is one
of the most important keys to successful mark.

1. What according to you life insurance is?

      Risk Coverage                  10               10%
      Tax Savings                     3               3%
      Good return                     4                4%
      Security                        3               3%
      All the above                  80                80%
      TOTAL                         100

                                    Life Insurance is
                         Risk Coverage   Tax Savings     Good return
                         Security        All the above   TOTAL








           From the survey it was found that amongst 100 respondents

               a)    10% of the respondents say risk coverage.
               b)    3% of the respondents say tax savings.
               c)    4% of the respondents say good returns.
               d)    3% of the respondents say financial security.
               e)    80% of the respondents say all of the above.

2. How aware are you regarding insurance?

      PARTICULARS                   NO.OF.RESPONDENT             PERCENTAGE

         Yes                              2                            2%

         No                              98                            98%

     TOTAL                               100                         100%

                           INSURANCE AWARENESS

          50                                              NO.OF.RESPONDENT
          40                                              PERCENTAGE
                   Yes          No      TOTAL


           From the survey it was found that amongst 100 respondents

            a) 98% of the respondents say that they are aware of insurance.
            b) Only 2% are unaware of insurance.

3. What are your preferable criteria for selecting an insurance company?

                                 criteria for selecting insurance company

                                2            2                          2            2
     p                60%                    4                          2            2
     e                50%
     o                40%
                                6                          2
     n                30%
                      20%                    6                          5            4
                      10%                                  3
                               25-30        30-35        35-40        40-45        45-60
             realibility                      2                                      2
             service             2                         4            2
             income                           4            2            2            2
             policy scheme       6            6            3            5            4

Here all age of people give preference to choose insurance company on the basis of policy
scheme firstly, and then second selection base is income, third chosen criteria is service and
last criteria of chosen of insurance company is reliability and creditworthiness. So on the
basis of this survey we can say that people mainly give importance of chosen an insurance
company is what type of policy Scheme Company has, means policy fulfill individual need
or not.

4. Are you currently insured?

Particulars                  No. of Respondents               Percentage

Yes                                       31                               62%

No                                        19                               38%
Total                                     50                           100%

                                  No. of Respondents





                   From the survey it was found that amongst 50 respondents

                   a) 62% of the respondents are already insured.
                   b) 38% of the respondents are not insured.

5. Are you satisfied with your current insurer?

Particulars                No. of Respondents                   Percentage

Yes                                      41                                  82%

No                                        9                                  18%

Total                                    50                              100%

                                No. of Respondents





                 From the survey it was found that amongst 50 respondents

                 a) 82% of the respondents are satisfied.
                 b) 18% of the respondents are not satisfied.

6. Are you aware of ICICI Prudential life insurance pvt ltd?

          Yes                         17                        17%
          No                          83                        83%
       TOTAL                         100                      100%

                         Awareness of ICICI Pru
                               Yes         No     TOTAL








          From the survey it was found that amongst 100 respondents

            a) 83% of the respondents say that they are aware of ICICI
               Prudential life insurance co.
            b) 17% of the say that they are unaware of ICICI Prudential life
               insurance co

7. Which one is your favorite insurance company?

 Particulars                        No. of Respondents               Percentage

LIC                                               24                                48%
ICICI                                              7                                14%
HDFC                                               5                                10%
Birla Sun Life                                     4                                 8%
Bajaj Allianz                                      4                                 8%
Others                                             6                                12%
Total                                             50                                100%



  Share in %




                      LIC          IC ICI     HDFC       Birla Sun         Bajaj      O thers
                                            Insurance com panies


                     From the survey it was found that amongst 50 respondents

                     a)   48% of the respondents likes LIC.
                     b)   14% of the respondents likes ICICI.
                     c)   10% of the respondents likes HDFC.
                     d)   8% of the respondents likes Birla Sun Life.
                     e)   8% of the respondents likes Bajaj Allianz.
                     f)   12% of the respondents likes other companies.
8. Are you interested in the products offered by ICICI Prudential?

Particulars               No. of Respondents               Percentage

Yes                                     30                           60%
No                                      12                           24%
Can’t Say                               8                            16%
Total                                   50                           100%

                                No. of Respondents


                     12                                              Can't Say


               From the survey it was found that amongst 50 respondents

               a) 60% of the respondents are attracted towards ICICI products.
               b) 24% of the respondents are not attracted towards ICICI
               c) 16% of the respondents can’t Say about it.

9. What is your main concern while taking an insurance policy?

Particulars                                    No. of Respondents                              Percentage

Tax Benefit                                                       20                                  40%
Security                                                          16                                  32%
Investments/Savings                                               14                                  28%
Total                                                             50                                  100%

        No. of Respondents


                             10           20
                                                              16                          14










                                   From the survey it was found that amongst 50 respondents

                                   a) 40% of the respondents are concerned about Tax Benefit.
                                   b) 32% of the respondents are concerned about their Security.
                                   c) 28% of the respondents are concerned about

10. What % of respondents who are under different plans of ICICI Prudential life

insurance co?

       PARTICULARS                  NO.OF.RESPONDENT              PERCENTAGE
       Invest gain plan                 41                          41%
       Unit gain plan                   36                          36%
       Child gain plan                   8                           8%
       Whole life plan                  15                          15%
       Pension plan                     No                          No
       TOTAL                           100                          100%



  8%                                                 41%
                                                            Invest gain plan
                                                            Unit gain plan
                                                            Child gain plan
                                                            Whole life plan
             36%                                            Pension plan


       From the survey it was found that amongst 100 respondents

        a)    41% of the respondents are under invest gain plan
        b)    36% of the respondents are under unit gain plan
        c)    8% of the respondents are child gain plan
        d)    15% of the respondents are whole life plan
        e)    No body under pension plan

11. What % of respondents benefits of choosing the particular products?

PARTICULARS                    NO.OF.RESPONDENT             PERCENTAGE
Risk coverage                  60                           60%
Additional benefit             20                           20%
Maturity date                  12                           12%
Sum Assured                    8                            8%
TOTAL                          100                          100%

                         Benefits of Particular Products

                70                                        Risk coverage
                60                                        Additional benefit
                                                          Maturity date
                                                          Sum Assured
                20                                        TOTAL
                           1               2

           a) 36% of the respondents say that a benefit of choosing the particular
                 Product is for Safety of life.
           b) 20% of the respondents say that a benefit of choosing the particular
              products is for additional benefit to family
           c) 12% of the respondents say that a benefit of choosing the particular
              products is for maturity date
           d) 8% of the respondents say that a benefit of choosing the particular
              products is for sum assured

12. According to you, in what areas should the insurance companies work upon?

Particulars                                     No. of Respondents              Percentage

Easy Procedures                                               14                             28%
Fewer premiums                                                10                             20%
More Returns                                                  9                           18%
Transparency                                                  17                          34%
Total                                                         50                          100%

          No. of Respondents

                                                                                17           Series1
                                                      10             9
                                    Easy Returns     Fewer    More Returns Transperancy


                                    From the survey it was found that amongst 50 respondents

                                    a)   28% of the respondents want Easy procedures.
                                    b)   20% of the respondents want fewer premiums.
                                    c)   18% of the respondents want more returns.
                                    d)   34% of the respondents want Transparency.

13. Do you think that services have improved after allowing private players in

insurance sector?

Particulars               No. of Respondents               Percentage

Yes                                     40                              80%
No                                      10                              20%
Total                                   50                            100%





               From the survey it was found that amongst 50 respondents

               a) 80% of the respondents think that services have improved.
               b) 20% of the respondents think that services have not improved.


     On an analysis and evaluation of the data collected from the respondents the
following findings were found:

•   Before establishment of private concerns the share of LIC was 22% hence there is
    a wide scope for private concerns to enter in to market.
•   Total 100 respondents have been approached out of which 75 are the potential
    respondents who have shown interest for investment and finance plan
•   Above 20% of respondents are shown interest for investment and financial plan
•   About 33.33% of respondents are not interest to give their personal records.
•   About 12.67% of respondents have already been covered by other insurance
•   About 10% of respondents have given invalid records.
•   About 10% of respondents are newly employed or trainees.
•   About 10% of respondents interested for investment plan after knowing ICICI
    prudential life insurance products.
•   Most of the people buy life insurance as just a tax benefit tool or as a life cover
    while only a few of the respondent take it as a saving option.The reason for this is
    lack of knowledge of insurance benefits among the people.
•   A Majority of the respondent buy insurance products because of the need reason
    while rest of the respondents buy for the brand purpose.
•   A Majority of the people come to know about the policies from the Direct Selling
•   A Majority of the people are satisfied by the incentives associated with their
•   Most of the respondents are satisfied by the services offered by there insurance
    company while some says that they are not satisfied by the services.
•   Most of the respondents want more Transparency from the side of the company.


The study has provided with the useful data from the respondents. There has a lot to be
recommended. Following are the recommendations:

     •   There is a need for better promotion for the investment products & services. The
         bank should advertise its products through television because it will reach to the
     •   More returns should be provided on Insurance plans.
     •   As the bank provides the Insurance facility to its customers. It should provide
         this facility by tie up with the other Insurance organizations as well. The main
         reason is that, the entire customers do not want Insurance of only one company.
         They should have choice while selecting a suitable Insurance plans. This will
         definitely add to the goodwill & profit for the bank.


After overhauling the all situation that boosted a number of Pvt. Companies associated
with multinational in the Insurance Sector to give befitting competition to the established
behemoth ICICI in private sector, we come at the conclusion that

   •   There is very tough competition among the private insurance companies on the
       level of new trend of advertising to lull a major part of Customers.
   •   ICICI is not left behind in the present race of advertisement.
   •   The entry of more Pvt. players in the Insurance Sector have expanded the product
       segment to meet the different level of the requirement of the customers. It has
       brought about greater choice to the customers.
   •   ICICI has vast market and very firm grip on its traditional customers and
       monopoly of life insurance products.

IRDA is also playing very comprehensive role by regulating norms mandating to private
players in this sector, that increases the confidence level of the customers to the private


Name          - _____________
Age           - _____________
Occupation    - _____________

Q1. Are you currently insured?
    - Yes
    - No

   If yes, please give the details of company, plan, premium etc.

Q2. Are you satisfied with your current insurer?

   - Yes
   - No

Q3. Which is your favorite insurance company?
    - LIC
    - ICICI
    - HDFC
    - Birla sun life
    - Bajaj Allianz
    - Others

Q4 Are you interested in the products offered by ICICI Prudential?
    - Yes
    - No
    - Can’t say

Q5. What is your main concern while taking an insurance policy?

    -   Tax benefit
    -   Security
    -   Investment/Savings

Q.6 Does this policy satisfy your financial needs? (Please rate on the scale of 1
to 10 with 1 being least satisfied)

Q.7 Please express your opinion for the premiums paid for the above policy?
    -Very high [ ]
    -High [ ]
    -Moderate [ ]
    -Low [ ]
    -Very Low [ ]

Q.8 How do you come to know about this policy? (Please tick).
    - Advertisements [ ]
    - Friends and relatives [ ]
    - Direct selling agents [ ].
    - Others (please specify) _____________________.

Q.9 Are there any incentives (tax benefits or Bonuses) associated with this
policy? (Please give appropriate details about it).
    -   ___________________________________________________________

10. Are you satisfied with the incentives associated with your policy?
    -Highly satisfied [ ].
    -Satisfied [ ]
    -Moderate [ ]
    -Unsatisfied [ ]
    -Highly Unsatisfied [ ].

11. According to you, in what areas should the insurance companies work upon?

    -   Less complicated procedures
    -   Fewer premiums
    -   More returns
    -   Transparency

Q12. Do you think that services have improved after allowing private players in
insurance sector?

   - Yes
   - No

Your comments on ICICI Prudential





   •     Material provided by the company
   •     survey

Search Engines


   •       Business research methodology
   •       Quantitative Methods

   •     Philip Kotler 2000 /e    - Marketing Management

   •     Gary Armstrong &
   •     Philip Kotler            - Principles Of Marketing

   •     G.C. Beri                - Marketing Research