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AN ORGANIZATION STUDY

AT

“ICICI Prudential Life

Insurance”

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CONTENTS

Sl No DESCRIPTION PAGE NO.

1 CHAPTER I 9
I.1 INTRODUCTION 10
I.2 INDUSTRY PROFILE 11
I.3 COMPANY PROFILE 12
15

2 CHAPTER II
2.1 ORGANISATIONAL STRUCTURE 42
43

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3 CHAPTER III
3.1 FUNCTIONAL AREAS 44
3.2 HUMAN RESOURCE 46
3.3 MARKETING 48
3.4 FINANCE
3.5 QUALITY CONTROL DEPARTMENT
3.6 IT AND SYSTEMS DEPARTMENT
4 CHAPTER IV
SWOT ANALYSIS 54

5 CHAPTER V 57
5.1 FINDINGS 58
5.2 SUGGESTION 59
5.3 60
CONCLUSION

6 BIBLIOGRAPHY

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CHAPTER- 1
INTRODUCTION

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1.1 INTRODUCTION

ICICI Prudential Life Insurance Company Limited was incorporated on July

20, 2000. The authorized capital of the company is Rs.2300 Million and the paid up
capital is Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and
Prudential plc UK (26%).

The Company was granted Certificate of Registration for

carrying out Life Insurance business, by the Insurance Regulatory and Development
Authority on November 24, 2000. It commenced commercial operations on December
19, 2000, becoming one of the first few private sector players to enter the liberalized
arena.

The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata,
Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin,
Meerut, Mangalore and Ludhiana.

Till March 31,2002 the Company has issued 100,000 polices

translating into a Premium Income of around Rs. 1,200 Million and a sum assured of
over Rs.15,000 Million.The Company recognizes that the driving force for gaining
sustainable competitive advantage in this business is superior customer experience
and investment behind the brand. The Company aims to achieve this by striving to
provide world class service levels through constant innovation in products,

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distribution channels and technology based delivery. The Company has already taken
significant steps to achieve this goal..
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.

1.3 INDUSTRY PROFILE

With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total value of
the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion).
According to government sources, the insurance and banking services' contribution to
the country's gross domestic product (GDP) is 7% out of which the gross premium
collection forms a significant part. The funds available with the state-owned Life
Insurance Corporation (LIC) for investments are 8% of GDP.

Till date, only 20% of the total insurable population of India is

covered under various life insurance schemes, the penetration rates of health and other
non-life insurances in India is also well below the international level. These facts
indicate the of immense growth potential of the insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as

major structural changes took place with the ending of government monopoly and the
passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting

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all entry restrictions for private players and allowing foreign players to enter the
market with some limits on direct foreign ownership.

The life insurance industry in India grew by an impressive 36%,

with premium income from new business at Rs. 253.43 billion during the fiscal year
2004-2005, braving stiff competition from private insurers. This report "Indian
Insurance Industry: New Avenues for Growth 2012", finds that the market share of
the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion
by selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest
the fall in its market share, as private players grew by 129% to mop up Rs. 55.57
billion in 2004-05 from Rs. 24.29 billion in 2003-04.

Though the total volume of LIC's business increased in the last

fiscal year (2004-2005) compared to the previous one, its market share came down
from 87.04 to 78.07%. The 14 private insurers increased their market share from
about 13% to about 22% in a year's time. The figures for the first two months of the
fiscal year 2005-06 also speak of the growing share of the private insurers. The share
of LIC for this period has further come down to 75 percent, while the private players
have grabbed over 24 percent.

Vision

To make ICICI Prudential the dominant Life and Pensions player built on trust by

world-class people and service.

This we hope to achieve by:

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• Understanding the needs of customers and offering them superior products

and service

• Leveraging technology to service customers quickly, efficiently and

conveniently

• Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

• Providing an enabling environment to foster growth and learning for our

employees

• And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the
values describe what the company stands for, the qualities of our people and the way
we work.
We do believe that we are on the threshold of an exciting new opportunity, where
we can play a significant role in redefining and reshaping the sector. Given the quality
of our parentage and the commitment of our team, there are no limits to our growth.

Mission
ICICI Prudential Target Returns Fund (There is no guarantee or assurance of
returns) is specially designed with the objective of providing investors with trigger
options to pre-set their investment objectives by allowing them to re-balance the
investment to pre-selected debt funds, once their investment objectives are met. The
fund utilizes fundamental analysis for individual security selection with a view to
invest in equities of companies that are highly liquid with large market capitalization.

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PROMOTERS
ICICI Bank

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 specialised 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.

Prudential plc

Established in London in 1848, Prudential plc, through its businesses in the UK

and Europe, the US and Asia, provides retail financial services products and services
to more than 16 million customers, policyholder and unit holders worldwide. As of
June 30, 2004, the company had over US$300 billion in funds under management.
Prudential has brought to market an integrated range of financial services products
that now includes life assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is the leading European life
insurance company with a vast network of 24 life and mutual fund operations in

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twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam.

MANAGEMENT

Board of Directors

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

Ms Chanda D. Kochar (Chairperson )

Mr NS Kannan , Director
Mr K Ramkumar ,Director
Mr Barry Stowe ,Director

Management Team

Ms. Shikha Sharma, Managing Director & CEO

Mr. N.S. Kannan, Executive Director
Mr. V. Rajagopalan, Chief - Actuary
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Ms. Anita Pai, Chief - Customer Service and Operations
Mr. Puneet Nanda, Chief – Investments

Product Profile

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Insurance Plans

ICICI Prudential has a wide array of insurance plans that have been designed with
the philosophy that different individuals are bound to have differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of the
individual that will depend on the age and life stage of the individual apart from a
host of other factors.

Life Insurance Plans:

Under Life insurance plans, ICICI Prudential offers plans under the following major
need categories:

• Education Insurance Plans

• Wealth Creation Plans

• Premium Guarantee plans

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• Protection Plans

Pension & Retirement Solutions:

The primary objective of a pension plan is to help you provide for your financial
needs in your post retirement years. You will find a Pension Planning Calculator on
the site, meant to make your pension plan review as simple as possible. The calculator
is the first step in your Pension Plan scheme, there are othe steps towards getting the
Indian pension policy you need.

• LifeStage Pension

• LifeTime Super Pension

• LifeLink Super Pension

• ForeverLife

Health Product Suite:

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Under Health Product Suite, ICICI Prudential offers plans under the following major
need categories:

Hospitalisation Plans

• MediAssure

• Hospital Care

Critical Illnessl Pans

• Crisis Cover

Cancer Products

• Cancer Care

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Diabetes Products

• Diabetes Care Active

• Diabetes Assure

Education Insurance Plans

One of your most important responsibilities as a parent is to ensure that your child
gets the best possible education that can be provided.

ICICI Prudential offers a wide portfolio of education insurance plans that are
designed to provide peace of mind to you, as a parent, that your child's education will
be secure. These plans ensure that money is made available at the crucial junctures in
a child's education - Class X, Class XII, graduation and post-graduation - to fund
crucial commitments for the child's future.

Importantly, education insurance plans ensure that in the unfortunate event of

the death of a parent, the child's education continues unhampered.
Under the education insurance plans platform, ICICI Prudential brings the
following products to you. Please click on the product name to know more about the
plans.

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Plan Name Plan Type

SmartKid New Unit-linked Unit Linked

Regular Premium

SmartKid New Unit-linked Unit Linked

Single Premium

SmartKid Regular Premium Traditional

Wealth Creation Plans

Wealth Creation Plans give the customer the dual benefit of protection along
with the potentially higher returns of market-linked instruments. The most important
benefit of ULIPs is the flexibility they give the customer in choosing the premium
amount and also choosing the underlying fund in which this money is to be invested.
Wealth creation plans also offer the customer more liquidity options as compared
to traditional plans. As such, ULIPs are ideal for customers who want the protection

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of a life cover to be allied to the returns of market linked instrument – giving them an
unmatched combination of benefits.

Under the wealth creation platform, ICICI Prudential brings the following
products to you. Please click on the product name to know more about the plans.

Plan Name Plan Type

ICICI Pru SecureSave Unit Linked

ICICI Pru Wealth Advantage Unit Linked

ICICI Pru LifeStage Assure Unit Linked

ICICI Pru LifeTime Gold Unit Linked

ICICI Pru PremierLife Gold Unit Linked

ICICI Pru LifeLink Super Unit Linked

ICICI Pru LifeStage RP Unit Linked

Why ICICI Pru Secure Save

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Life is full of uncertainties and a safety net that will protect us from any fall is
what we always strive for. The same is true for our investments – where we would
love to enjoy the upside of our investments while keeping our downside safe.
Presenting ICICI Pru SecureSave which aims to grow the value of customer’s
hard earned savings over time with an assurance of a minimum guaranteed maturity
amount to protect you from the downside of equity markets.

Features and benefits of ICICI Pru SecureSave

Guaranteed Maturity Benefit: The SecureSave Guarantee fund provides a

Guaranteed Maturity Benefit (GMB). It applies only at maturity, not on death, partial
withdrawal or surrender.
The GMB for the various policy terms offered under the policy are shown below.

10
Premium Payment Term 5 yrs 7 yrs
yrs
10 15 20
Term of the Policy
yrs yrs yrs
Guaranteed Maturity Benefit
110 125 150
(As a % of Aggregate Investment
% % %
Premium)*

* This Guarantee is on the Investment Premiums, i.e., your annual premiums less the
Mortality charge

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Why ICICI Pru Wealth Advantage

There are a number of things you need to do regularly, to ensure that your life runs
smoothly. Things like. your bill payments, your child’s school fees, EMIs and so on.
Keeping a track of all these is difficult indeed.

And there are those things that ask for your attention only once but reward you
with returns all your life, like ICICI Pru Wealth Advantage. This is our first whole life
ULIP that provides a long term cover with just a single premium and allows you to
stay invested throughout your life.

Features and benefits of ICICI Pru Wealth Advantage

• Whole Life Plan

• Single Premium
• Automatic Withdrawal Plan
• Automatic Transfer Strategy
• Death benefit
• Choice of 7 investment funds
• Switch benefit

Why LifeStage Assure

Well begun, they say, is half done. This adage holds true as much
to life as to your long-term financial planning. However, times have changed now;
markets have become volatile. Everyone knows for sure that the growth story of India
is intact for a longer term. Equity markets haven’t lost there charm as a long term
investment. Yet, everyone is waiting for a right time to invest. Since timing the

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market correctly is difficult for an average investor and capital preservation during
such volatile times is important.

Why LifeTime Gold

Gold has alway always retained its glitter through the ages. This precious yellow
metal, much coveted and valued, remains a symbol of class and an ageless asset.

The same attributes of gold - precious and valuable - are now yours to enjoy
with a policy that's simply pure gold ULIP.

Presenting ICICI Prudential's LifeTime

Gold, a regular premium unit-linked policy that offers potentially higher returns
through the Multiplier Fund that invests in the top 50 large cap companies.

Features and benefits of LifeTime Gold-

• Flexible policy term

• choices of premium payment
• investment fund
• Systematic withdrawal of money

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Why LifeLink Super

Well-deserved financial incentives, rewarding business profits and
even ancestral money are precious amounts that you should invest immediately so
they earn you potentially higher returns in the long run.

Invest in ICICI Prudential's LifeLink Super policy-a single-

premium unit-linked policy that works best for investors who have in mind long-term
financial goals, such as the education of a child or the purchase of a larger home.

Features and benefits of LifeLink Super

• 2 options of Sum Assured

Flexible policy term
Partial withdrawal of money
• Attractive premium allocation rates
7 investment funds
Switch benefit
Maturity benefit
• Death benefit

Why Life Stage

We have different priorities at different life stages. With such changing

priorities, it is important to adopt Asset Allocation as an investment practice. It helps

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to strike the right balance by distributing your investments across different asset
classes like equity and debt. More importantly, it should also change according to our
life stage profile – age, risk tolerance, etc. However, the discipline of making the right
Asset Allocation at various life stages in today’s fast-paced life requires the expertise
and dedicated time of someone who can manage your money on a day-to-day basis.

Features and Benefits of LifeStage RP

• Option to choose a unique and personalized life-cycle based portfolio strategy to
create ideal balance between Equity and Debt

• Option to change in chosen portfolio strategy 4 times in a policy term (CIPS -

Change in Portfolio Strategy)

• Additional allocation of units at regular intervals to enhance your investment

Premium Guarantee Plans

The latest addition to the life insurance product portfolio of ICICI Prudential is the
Premium Guarantee plan - InvestShield Life New. Premium Guarantee plans are the
ideal insurance-cum-investment option for customers who want to enjoy the
potentially higher returns(over the long term) of a market linked instrument, but
without taking any market risk.

Under the Premium Guarantee Plans platform, ICICI Prudential brings to you the
following products:

Plan Name Plan Type

InvestShield Life New Unit Linked

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InvestShield CashBak Unit Linked

Why InvestShield Life New?

InvestShield Life New is a one of its kind market linked policy that
gives the policyholder the chance of enjoying the potentially higher returns of a
market linked instrument. The underlying investment fund in InvestShield Life New
has up to 40% investment in equities and related securities.

Features and benefits of InvestShield Life New

As a market-linked plan with premium guarantee and enhanced life insurance,

InvestShield Life New offers a host of benefits to the policyholder.

Key Benefits

Premium Guarantee

Maturity Benefit

Death Benefit

Tax Benefits

Why InvestShield CashBak?

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InvestShield CashBak is a one of its kind market linked policy that gives the
policyholder the benefit of capital appreciation while maintaining a balance between
return, safety and liquidity. Moreover, InvestShield CashBak also has the added
assurance of a Premium Guarantee which ensures that in the event of the market
returns being negative, the sum of all premiums paid is returned to the policyholder
on maturity of the plan. In other words, InvestShield CashBak is a downside protected
plan.

In addition to this, the policyholder gets a life insurance cover for

protecting the family against the financial implications of the death of the
policyholder.

Features and benefits of InvestShield CashBak

As a market-linked plan with premium guarantee and enhanced life insurance,

InvestShield CashBak offers a host of benefits to the policyholder.

• Key Benefits
• Premium Guarantee
• Partial Withdrawals
• Maturity Benefit
• Death Benefit
• Tax Benefits

• Protection Plans

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Why ICICI Pru Pure Protect

As the head of your family, you have always fulfilled your responsibilities
and given your family the comforts they wanted. You have always been there for
them. However, life is full of uncertainties. So, it is important to ensure that your
family is protected, should something unfortunate happen to you.

ICICI Pru Pure Protect is a term plan (Without Return of Premium)

which will be available in two variants:

• ICICI Pru Pure Protect Classic: For Sum Assured of up to Rs. 25,00,000

• ICICI Pru Pure Protect Elite: For Sum Assured of Rs. 25,00,000 and above

Invest in the plan that best suits your protection needs and guarantees lifelong comfort
and security to your family.

Read more about this life insurance policy at Pure Protect at a glance.

Features and Benefits of Pure Protect

Take a look at the features and benefits of the plan:

• Death benefit
• Maturity benefit
• Additional Benefits
• Accidental Death and Disability Benefit Rider:

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• On death of the life assured due to an accident, the beneficiary gets the additional
Sum Assured under the Rider.

• In case of death due to accident while the life assured is using, as a fare paying
passenger, authorized public mass surface transport, namely bus or train, operating
under terms of such authorization the beneficiary gets twice the Sum Assured under
the rider.

• In the event of total and permanent disability, 10% of the Rider Sum Assured is paid
out every year, for 10 years.

Waiver of Premium Rider:

• In case of total and permanent disability due to an accident, under this rider the
company will pay the remaining premiums till maturity.

Why LifeGuard

Protect your family with ICICI Prudential's LifeGuard. LifeGuard acts as a

shield that safeguards your loved ones from financial insecurity, at all times.

A cost-effective plan, LifeGuard comes in two variants: LifeGuard with

Return of Premium (life cover with maturity benefit), and LifeGuard Single Premium
(premium at policy inception, cover till policy matures). Invest in a plan that best suits

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your requirements and guarantee your family lifelong comfort and security.

Features and Benefits of LifeGuard

LifeGuard offers a choice of 2 life insurance plans: LifeGuard with Return of

Premium and LifeGuard Single Premium. Take a look at the features and benefits of
the plans:

Death benefit: Provide for your beneficiary to receive the Sum Assured should
something happen to you.

Extended life cover: Invest in LifeGuard with Return of Premium plan and safeguard
your family with an additional cover—at 50% of the original Sum Assured—for 5
years after your policy terminates.

Additional riders: Protect your family from accidents and disability by adding on the
Accident and Disability Benefit Rider (ADBR) and the Waiver of Premium Rider
(WOPR).

• ADBR: The rider benefit amount will be paid to your family in the event of
death or disability due to an accident.

• WOPR: In the case of total and permanent disability due to an accident, all
further premiums will be waived and policy benefits will continue.

Tax benefits

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Maturity benefit.

Why Save'n'Protect

Life Insurance Scheme

Assure your loved ones stay secure, even when you are unable to hold up the
protective umbrella yourself. Invest in ICICI Prudential's Save'n'Protect life insurance
scheme, and in addition to safeguarding your family, Save'N'Protect will enable you
to make regular, systematic savings, so you can effortlessly provide your family with
every comfort and meet your long-term financial objectives.

Learn more about the features and benefits of the Save’n’Protect

life insurance scheme, from ICIC Prudential, and start protecting the future of your
family and loved ones today!

Features and benefits of Save'n'Protect

When you invest in Save’N’Protect, you give yourself the guarantee of safeguarding
your family’s well being in addition to savings towards some important goals.

Take a look at the features and benefits of this plan:

Sum Assured: Choose your Sum Assured depending on the level of cover with which
you want to protect your family. The minimum Sum Assured is Rs. 50,000.

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3 premium paying modes: Choose to pay your premium in monthly, bi-annual or

annual installments. Your premium is determined based on your age and the Sum
Assured you choose.
Death benefit
Maturity benefit
Extended life cover
Additional riders

Tax benefits

Why Home Assure

Owning your very own home is a cherished dream. We want to ensure that
this dream comes true, irrespective of what the future holds. We are pleased to bring
you Home Assure. This extremely affordable Term Life Insurance Plan offers you
protection against your loan amount with complete convinience in application. In case
of an unfortunate event of death, the financial security of your family is not affected.
The family need not direct their savings towards paying off the outstanding loan.
ICICI Prudential will pay the outstanding amount to the bank directly. Your family
will continue to retain the home purchased by your hard earned money.

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Features and benefits of Home Assure

1. All you have to do is pay a single premium to opt for the insurance cover and you
will continue to remain covered throughout the insurance tenure i.e. the under-
construction period (if applicable) + the original home loan tenure.

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2. You will need to state in advance the expected under-construction period as 0,1, or
2 years. This will be added to the home loan term to compute the total insurance
term.
3. You will be covered for the entire loan amount (santioned home loan + single
premium paid). The premium is very affordable and there will be a minimal increase
in the EMI due to the loan for the insurance premium.

4. The insurance cover would start from the date of first disbursement of the home
loan and ICICI Prudential shall accept risk from the date the premium is debited to the
account of the life assured.

5. The insurance cover would be as per the original loan schedule.

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6. On survival upto the end of term, no benefit will be payable.

Tax benefits: Premium paid for the policy and critical illness benefit rider will be
eligible for tax benefit under Sec. 80C and 80D respectively. Any amount paid to you
will be eligible for tax benefits under Sec. 10 (10D) as per prevailing Income Tax
laws.

Pension & Retirement Solutions:

The primary objective of a pension plan is to help you provide for your
financial needs in your post retirement years. You will find a Pension Planning
Calculator on the site, meant to make your pension plan review as simple as possible.
The calculator is the first step in your Pension Plan scheme, there are othe steps
towards getting the Indian pension policy you need.

• LifeStage Pension

• LifeTime Super Pension

• LifeLink Super Pension

• ForeverLife

Why LifeStage Pension

Retirement time is the time to live your dream, dream that you have been putting off
as you never had the time for it. But your retirement dream has a cost attached to it.
We call this your retirement number.0

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To help you achieve your retirement number ICICI Prudential presents to you,
LifeStage Pension.

One of the most distinguishing features of this policy is that it has no premium
allocation charge for regular premiums which means 100% of your money is invested.
What’s more, the policy provides you with a unique lifecycle-based strategy that
continuously re-distributes your money across various asset classes based on your life
stage and risk tolerance, eventually providing you with a customised retirement
solution.

Invest today to attain your retirement number and fulfill your dreams.

Key Benefits of LifeStage Pension

Option to choose a unique and personalised lifecycle based portfolio
strategy to create ideal balance between Equity and Debt.

• This plan invests 100% of your money in the portfolio of your choice.

• Enjoy the flexibility to choose from 5 pension options through which you can
receive your pension.

• Opportunity to earn potentially higher returns by investing in Unit Linked

Funds.

• Receive tax-free commutation up to one-third of the accumulated value on

vesting (retirement) date.

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Fund options available with ICICI Pru LifeStage Pension

Pension Flexi Growth

Objective : To generate superior long-term returns from a diversified portfolio of

equity and equity related instruments of large, mid and small cap companies.

Indicative Portfolio Allocation Max (%) Min (%)

Equity & Related Securities 100 20
Debt, Money Market & Cash 80 0
Risk- Reward profile of the Fund: High

Pension Flexi Balanced

Objective : To achieve a balance between capital appreciation and stable returns by

investing in a mix of equity and equity related instruments of large, mid and small cap
companies and debt and debt related instruments.

Indicative Portfolio Allocation Max (%) Min (%)

Equity & Related Securities 60 0
Debt, Money Market & Cash 100 40
Risk- Reward profile of the Fund: Moderate

Pension Protector

Objective: To provide accumulation of income through investment in various fixed

income securities. The fund seeks to provide capital appreciation while maintaining a
suitable balance between return, safety and liquidity.

Indicative Portfolio Allocation Max (%) Min (%)

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Debt Instruments, Money Market & Cash 100 100

Risk- Reward profile of the Fund: Low

Pension Maximiser (This Fund shall not be available for investment to those
Policyholder whose application is received by the company’s office after February 22,
2008)

Objective: To provide long-term capital appreciation through investments primarily in

equity and equity-related instruments.

Indicative Portfolio Allocation Max (%) Min (%)

Equity & Related Securities 100 75
Debt, Money Market & Cash 25 0
Risk- Reward profile of the Fund: High to those policyholder whose application is
received at the Company’s office after February 18, 2008)

Pension Balancer

Objective: To provide a balance between long-term capital appreciation and current

income through investment in equity as well as fixed income instruments in
appropriate proportions depending on market conditions prevalent from time to time.

Indicative Portfolio Allocation Max (%) Min (%)

Equity & Related Securities 40 0
Debt, Money Market & Cash 100 60
Risk- Reward profile of the Fund: Moderate

Pension Preserver

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Objective: To provide suitable returns through low risk investments in debt and
money market instruments while attempting to protect the capital deployed in the
fund.

Indicative Portfolio Allocation Max (%) Min (%)

Debt Instruments 50 0
Money Market & Cash 100 50
Risk- Reward profile of the Fund: Capital Preservation

Pension Multiplier (This Fund shall be available for investment to those

policyholders whose application is received at the Company’s office on or after
February 23, 2008)

Objective: To provide long-term capital appreciation from an equity portfolio

predominantly invested in NIFTY scrips.

Indicative Portfolio Allocation Max (%) Min (%)

Equity & equity related securities 100 80
Debt, Money market & Cash 20 0
Potential Risk-Reward profile of the Fund: High

Pension R.I.C.H. (This fund shall be available for investment to those policyholders
whose application is received at the Company’s office on or after March 15, 2008)

Objective: To generate superior long-term returns from a diversified portfolio of

equity an equity related instruments of companies operating in four important types of
industries viz., Resources, Investment-related, Consumption-related and Human
capital leveraged industries.

Indicative Portfolio Allocation Max (%) Min (%)

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Equity & equity related securities 100 80

Debt, Money market & Cash 20 0
Potential Risk-Reward profile of the fund: High

Pension Return Guarantee Fund (PRGF)

Objective: The fund seeks to provide guaranteed returns through investment in a

diversified portfolio of high quality fixed income instruments.

Portfolio Allocation Max (%) Min (%)

Debt, Money market & Cash 100 100
Risk-Reward Profile of the Fund: Low

Health Insurance Products

ICICI Prudential offers health insurance plans under the following major need
categories:

Comprehensive health coverage:

Health Saver

A comprehensive whole life plan that covers you against hospitalisation expenses and
creates a health fund to cover any other health expenses.

Hospitalisation coverage:

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MediAssure

A reimbursement hospitalization plan covering hospitalization stay and treatment.

The claim payout is based on actual expense incurred.

Hospital Care Get free quote and buy online

A fixed benefit cashless hospitalization plan covering various stages of treatment and
over 900 surgeries.

Critical illness coverage

Crisis Cover -A comprehensive health insurance policy that covers 35 critical

illnesses, death and disability.

1.2 COMPANY PROFILE

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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's equity base stands at Rs. 11.85 billion with ICICI Bank
and Prudential plc holding 74% and 26% stake respectively. In the financial year
ended March 31, 2005, the company garnered Rs 1584 crore of new business
premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000
policies. The company has a network of about 56,000 advisors; as well as 7
bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country, with
a wide range of flexible products that meet the needs of the Indian customer at every
step in life

39
Object 1

CHAPTER II

ORGANISATIONAL STRUCTURE

40
 Object 1

3.1 ORGANISATION STRUCTURE

Assistant
General
Accountant
Senior
Junior
Attenders
Assistant
Manager
Manager
Manager
Clerk
Clerk
Accountant

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 Object 1

Head Office

Branch structure Manager

Accountant (1) Accountant (2)

Assistant accountant Assistant accountant Assistant

Accountant

Senior Clerk

42
 Object 1

Junior
Clerk

At
tenders

3.2 Recommendation
about promotional
strategies

The suggestions have been classified into two categories.

� Action oriented suggestions
� People oriented suggestions

3.2.1 Special Recommendation

The insurance sector has largely stuck to images of happy families, carefree couples
and cute babies. We have to use a different route to break the clutter, and humor and
endorsement of celebrities is some of the routes available to us."
ICICI Prudential should come in front for development of rural sector, by way of
establishing a school, by digging a well in villages. May be it seems like a fool’s
suggestion but it is one of the way to gain trust in rural sector. We can also use to
advertise us by using the way of “HALLA BOL”. If we adopt this technique then I am
sure that this will be most creative and cheaper advertisement all over the world. And
by this way ICICI Prudential can again list their name in top advertise

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Object 1

CHAPTER-III

FUNCTIONING

44
Object 1

OF

DIFFERENT DEPARTMENT

45
 Object 1

2.1 HUMAN RESOURCE DEPARTMENT

ICICI Prudential is having two types of employees direct and indirect. They are
recruited from employment exchanges. Except PF there is no other fringe benefit for
temporary employees. There are different types of fringe benefit for permanent employees.
All the service matters of the organization are under the control of this department .HR
Department is working under leadership.

STRUCTURE OF HR DEPARTMENT

General
Manager

Manager (HR)

Assistant
Manager

Junior
Superintendent

Senior Assistant

Junior Assistant
46
 Object 1

Staff

Working period is from 10 am to 5 pm. Working days are from Monday to Saturday.
Production department, Quality control department work for 24 hrs So there are three shifts
per day. These shifts are from 6.30 am to 2.30 pm, 2.30 pm to 10.30 pm, and 10.30 pm to
6.30 am.

The important functions performed by the department are

 Induction and Orientation

 Training
 Performance Appraisal
 Promotion
 Recruitment
 Welfare Measures

Recruitment

Temporary recruitment is done through employment exchanges. The

duration of temporary employee is 180 days. For permanent recruitment they first
give notification in minimum three newspapers. From the approved applications,

47
 Object 1

candidates are selected for written tests. Those who pass the written test are called
for interview. The company has both permanent and temporary employees.
Permanent recruitment is done by the head office.

Training

Training is given to the permanent employees, both off the job and on the
job training is given. HR department is in charge of providing training to the
permanent employee

Promotion

Promotions are of two types i.e. Seniority based promotion and

performance based promotion. Middle level employees are promoted on the basis
of their seniority and top level employees are promoted on the basis of
performance.

Welfare Measure

Icici Prudential has a welfare society. Most of the employees are the
members of the welfare society. The enrolment in the society is kept optional.
There is a separate committee, chairman and secretary for the welfare society. The

48
 Object 1

members of the welfare society have to contribute an amount of Rs.50 every

month as a welfare fund. From this fund cash award is given to children of
employees who scored high mark in public examinations.

Moreover certain amount from the fund is given to the marriage

of the concerned member, marriage of the member’s children etc .Certain
percentage of the profit from the company is given as ex-gratia to all the
employees except to those employees who availed bonus. Employee should
present 240 days in a year to get full ex-gratia. Housing subsidy is also given to
the employees. Loan up to 2 lakhs and 1% subsidy is given to all the employees.

Employee state Insurance (ESI) is given to employees whose salary

is less than 7500. Medical allowance of Rs.100 is given to those employees who
do not prefer ESI. Annually employee can take leave up to 33
days out of which 12 days are regarded as casual leave. If an employee is
physically present for 246 days he can enter in to Departmental Promotional
Committee (DPC). For this minimum of 5 years service is essential.

2.2 MARKETING AND SALES

DEPARTMENT

49
 Object 1

A product is anything that can be offered to satisfy a need or want.So, a

social and managerial process by which individuals and groups obtain what they
need and want through creating, offering and exchanging products of value with
others – that is called marketing. Marketing starts with human needs, wants,
demands and human satisfaction. People satisfy their needs and wants with
products. Actually, selling is preoccupied with the seller’s need to convert his
product into cash, but marketing is the idea of satisfying the needs of the customer
by means of the product and the whole cluster of things associated with creating,
delivering and finally consuming it.

Marketing concept has constructed mainly on four pillars:

Target market :-companies do best when they define their target market(s)
carefully and prepare a tailored marketing programme Customer needs:- Different
types of customers are in the market. They have different types of needs likes

50
 Object 1

STRUCTURE OF MARKETING DEPARTMENT

General
Manager

Manager
(Marketing)

Assistant
Manager

Marketing Officer

Assistant Marketing
Officer

Marketing
Assistants

Marketing
Organizers

51
 Object 1

MARKETING RESEARCH

Marketing Research is the systematic method of gathering, recording, objective,

search and analyzing of valid and reliable information relating to the marketing of
goods and services. Several factors are contributed to the growth of marketing
research. Those are,

To know the potential area of selling for the manufacturer, where his goods could
be marketed

To understand the buyer behavior

Increasing the usage of computers has further contributed to the growth of

marketing research changes in the composition of population, particularly. The
shift from rural to the urban areas, has widened the scope for the marketing of
various types of goods and services in the urban areas.

52
 Object 1

2.3 FINANCE AND ACCOUNTS

DEPARTMENT

An organization communicates its financial information to

the users through financial statements and reports. Financial
statements contain summarized information of the organization’s
financial affairs, organized systematically. These statements
comprise the income statements or profit and loss account and the
position statement or the balance sheet.

To give a full view of the financial affairs of the undertaking it

is also necessary to include a statement of retained earnings, a
statement of changes in the financial position and a few schedules
such as schedule of fixed assets and schedule of debtors.

53
 Object 1

➢ Income Statement – the profit and loss account sets

out income as well as expenses of the same period and after
matching the two, the difference being the net profit or net
loss, is shown as the difference between the two sides of the
account. Thus, the earning capacity and the potential of an
organization are reflected by its profit and loss account.

➢ Position Statement – otherwise know as the balance

sheet displays the total resources of a business and the
owners and creditor’s equity in these resources. It indicates a
statement of affair of a business at a particular moment of
time and thus it is static in nature.

➢ Statement of Retained Earning – also known, as the profit and

loss appropriation account, is generally a part of the profit and loss account. It
shows how the profit of the business for the accounting period is appropriated
towards reserve and dividend and how much of the same is carried forwarded
as retained earnings.

54
 Object 1

➢ Statement of Changes in Financial Position – also known as

the fund flow statement, summarizes the changes in assets, liabilities and the
owner’s equity between two balance sheet dates. Thus, it is a statement of
flows, i.e., it measures the changes that have been taken place in the financial
position of a firm between two balance sheet dates. It summarizes the sources
and uses of the funds obtained.

3.6.1 STRUCTURE OF FINANCE AND

ACCOUNTS DEPARTMENT

General
Manager

Manager (Finance)

Assistant
Manager

Junior
Superintendent

Senior Assistant

55

Junior Assistant
 Object 1

CHART SHOWING ANATOMY OF FINANCIAL

STATEMENTS

FINANCIAL
STATEMEN
T

Position Statement of Statement of

Statement Income Changes in Owner’s changes in
Statements Equity changes in Financial
Or Retained Earnings Position
Or

Fund Flow Cash Flow

Statement Statement

56
 Object 1

FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial
strengths and weakness of the firm by properly establishing relationships
between the items of the balance sheet and profit and loss account. The
purpose of financial analysis is to disclose the information contained in the
financial statements so as to judge the profitability and financial
soundness of the organization

57
QUALITY CONTRO DEPARTMENT:

Quality control department as the name suggests this department takes care of the
quality of insurance policies offered by the company. Quality control department plays an
important role in the company. Quality control department sees that every insurance which has
been sold should not be based on fake promises and should meet the requirement of customers.

Structure of Quality control department

General
Manager

Manager (Quality
control)

Assistant
Manager

Junior
Superintendent

Senior Assistant

Junior Assistant
58
 Staff

IT AND SYSTEMS DEPARTMENT:

IT and Systems department of icici prudential life insurance is responsible for all the
work related to information technology. In this company every department use different software
and different ERP. ICICI PRUDENTIAL use FIDELIO software to save their data like no. of
policies sold. Each department is connected through this software and according to their
requirement every department take information from that software. If there is any problem with
the systems, software or networking then system department staff is called.

59
CHAPTER-Vi

60
 SWOT ANALYSIS

SWOT Analysis

Strengths

1. 200 years record of profitability

2. Entire range of products for corporate and retail customers
3. Market segmentation and products for niche segment
4. Significant presence in Credit cards, Insurance, Mutual funds,
Investment banking, Personal loans and SME sector
5. 54 overseas offices spanning 28 countries

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 6. 21 banking and non-banking subsidiaries and associates
7. Over 80% of top corporate in India have strong relationships with SBI
8. Largest individual customer base in the country
9. Leading provider of financial services across retail and wholesale
segments

Weaknesses

1. Constrained by the norms of public sector status

2. Large size has its impact on swiftness of response
3. Comparatively large number of employees
4. Lack of innovation
5. Inability to implement proper individual reward schemes to motivate
and enhance productivity due to industry wide implications

Opportunities

1. Improvement in the economic conditions

2. Increasing purchasing power of large number of middle class -------------
3. India’s stature as leading IT power
4. Retail finance and insurance sector
5. Low penetration of credit cards
6. Cross-selling
7. Infrastructure development

62
Threats

1. Asset Quality
2. Interest Rate risk
3. Operations risk in view of increasing use of technology in day to day
operations
4. Fleet-footed foreign banks and private banks
5. Pressure on margins

63
 CHAPTER-VI

FINDINGS, SUGGESTION AND

CONCLUSION

64
6.1 Findings

«80% of the respondents have bought a life insurance policy from ICICI Prudential
Life Insurance Company Ltd.

« ICICI Prudential’s ‘Life Time, Retirement Solutions and Smart Kid’ are the most
preferred policies among all types of policies of the company

« 63% of the respondents have a ‘High’ level of satisfaction for the policy service and
all of the respondents are satisfied with the existing features of their life insurance policy

« Life Risk cover is the main criterion for buying a Life Insurance policy followed by
benefit of income tax rebate

« Majority of the respondents have implicit faith in Private Life Insurance companies
as they believe they are trustworthy

« 90% of the policy holders opined that the prices of policies of Private Life Insurance
companies are affordable

« The most important guidance/service expected from a Life Insurance advisor is the
thorough and detailed explanation of policy features

« All the respondents (100%) are aware of ICICI Prudential – their main source of
awareness being Life Insurance advisors and advertisements

65
« 90% of the respondents who hold ICICI Prudential’s Life Insurance policy would
prefer to go in for another policy only from ICICI Prudential. The most important
reasons for this are – brand name, wide varieties of policies to choose from and good
servicing of policies

6.2 SUGGETIONS
ACTION ORIENTED SUGGESTIONS
An intense AIDA model needs to be adopted the AIDA model (Awareness, Internet, Desire,
and Action). Customers are aware of majority of products of ICICI PRUDENTIAL Life
Insurance Co. Ltd.
To create the awareness regarding Product
1. Print & Electronic Media Advertisement should be done (As we can see intense ad
campaign of HDFC Standard Life and Bajaj Allianz.)
2. After the initial promotional campaign the relative advantage of ICICI PRUDENTIAL
Life Insurance Co. Ltd. Over its competitor should be highlighted.
1. Hoardings at prime areas should be used.

PEOPLE ORIENTED SUGGESTIONS

1. Creating offers like lucky draws for the users of Internet.
2. Giving free gifts for the customer.

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6.3 CONCULSION
There has been a tectonic shift in advertising the insurance companies. Till 2
or 3 years back a typical Ad will showcase a small happy family enjoying their life. Then one
unfortunate Day the head of the family dies in an accident and the rest of the family is drawn to
rags. The ad ends up saying Insurance can help them against such calamities. People bought the
idea and started buying insurance. But there was a basic flaw in the ad. It tells the consumers
about the advantages of “having Insurance” but nothing about “buying insurance from a
perticular insurance firm”. So whoever casting such ad was helping the industry as a whole but
not their specific firm. If we see the recent ads they are talking about how “SBI Life” can help
smoothen your oldage life or how “ICICI Prudential” can help you in receiving pentions etc.
This sounds more logical. Each ad speaks about how their firms offers can help you instead of
telling how insurance as a whole can help you.

In concluding part of this project it shows that advertisement is very much

important for any business. A huge amount is paid by companies against advertisement. There
are many ways available to give advertisement on
which this amount is paid this are TV, Newspaper, Radio, Internet etc. The amount
spent on advertisement over four year across the world is shown I table.
At the initial phase of a company it is important that they give emphasis on corporate advertising
because it helps in brand recall. At the later stage company can go for product class
advertisements. Well it is also found that during session that endorsement of celebrities is helpful
in ad recall. But giving advertisement in any type of media is not the only medium; there are
many other ways also like social service, by way of educating people.

Especially for Insurance companies if they want to capture rural market

then they have to approach in different way. In my opinion rural market can only been captured
if we reaches to there heart. And this can be happen only if we solve there basic problem.
67
68
6. BIBLIOGRAPHY

Below you’ll Find Host of Additional Resources That you should Find
Useful In The Course of Your study Research:

By Books:

Marketing management : Philip kotler,

JOURNALS : Company Annual report,
The Hindu Business Line,
Market Research in Insurance.

Website
www.insuremagic.com
www.indiainfoline.com
www.bimaonline.com
www.expressindia.com
www.responsiveservice.com
www.agencyfaqs.com

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www.knowledgedigest.com
www.google.com
www.wikipedia.com
www. indiantelevision.com.

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