Icici Prudential

A
RESEARCH REPORT
ON
INVESTMENT PATTERN OF ICICI
PRUDENTIAL LIFE INSURANCE
COMPANY
AT
ICICI PRUDENTIAL LIFE INSURANCE
SUBMITTED TO
Shree Leuva Patel Trust M.B.A. Mahila College
AMRELI
SUBMITTED BY
Megha Bakhai
(IV SEM, FINANCE)
Year: 2004-06
GUIDED BY
Dr.Vijay Pithadia
AFFILIATED TO
SAURASHTRA UNIVERSITY, RAJKOT
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Certificate
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DECLARATION
I, Megha K. Bakhai, studying in MBA (IV Sem.) of Shree Leuva Patel

Trust MBA Mahila College, Amreli hereby declare that I have completed this project
on “INVESTMENT PATTERNS OF ICICI PRUDENTIAL LIFE INSURANCE” in
the academic year 2004-06 as per the requirements of the SAURASHTRA
UNIVERSITY as a part of MASTER IN BUSINESS ADMINISTRATION (MBA)
programme. The information presented through this project is true and original to the
best of my knowledge.
Here I assure you that Project work has not been presented to any
university or institute towards the degree/diploma fellowship or any other similar title.
Date: - Sign. :-
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ACKNOWLEDGEMENT
This project is the culmination of a study into the wide gamut of

activities carried on in the domain of Insurance especially “INVESTMENT
PATTERN OF ICICI PRUDNTIAL LIFE INSURANCE” in India. This project
would just not have been complete without the valuable contributions from various
people whom I have interacted with in the course of its completion. I would like to
express my sincere gratitude to all those people who have in their own sweet ways
helped me to complete this project.
I begin by thanking my Project Guide and my Guru, Mr. Madhav

Upadhyaya and Mr. Jignesh Bhatt, the treasure trove of information who has
rallied strongly behind me to see me complete this project. Without him this project
would have remained just an idea.
My parents who have always stood by me as solid as a rock; it is their

faith in me that has seen me complete this project on time. My Family who helped me
in whatever small ways possible .The list goes on ……………
I wish thanks to all those people who have lent me a helping hand in
finishing this project, whose names are too numerous to be mentioned here. My
College Professors
Dr. Vijay Pithadia

Mr. Vishal Patidar
Mr. Bhargav Pandya
who have always been my guiding lights .
Yours sincerely,
(Megha Bakhai)
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SHREE AMRELI JILLA LEUVA PATEL CHARITABLE

TURST – SURAT
PLACE :- SMT. SHANTABEN HARIBHAI GAJERA SHAIKSHANIK
SANKUL, Chakkargadh Road, Amreli-365 601.
PRINCIPAL’S RECOMMENDATION
TO,
The Registrar
Saurastra University
Rajkot.
Subject : MBA Final Training Project Report
Respected Sir,
I am recommending the Final Training Project Report

entitled___________________________________________________________________
_Prepared by __________________________________At
_____________________________________________________As the partial fulfillment
of the University requirement for the award of MBA degree of Saurastra University,
Rajkot.
Date :- Thanking You,
Place :- Amreli Yours faithfully,
Principal
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SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST –

SURAT
DIRECTOR’S RECOMMENDATION
TO,
The Registrar
Saurastra University
Rajkot.
Subject : MBA Final Training Project Report
Respected Sir,
I am recommending the Final Training Project Report

entitled___________________________________________________________________
_Prepared by __________________________________At
_____________________________________________________As the partial fulfillment
of the University requirement for the award of MBA degree of Saurastra University,
Rajkot.
Date :- Thanking You,
Place :- Amreli Yours faithfully,
Director
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SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST –

SURAT
GUIDE’S CERTIFICATE
This is to certify that ________________________________ The student of

MBA has carried out the project work as per the syllabus of Saurastra University. She
prepared this Final Training Project Report on
_____________________________________________________Under my
Guidance and her contribution in making this report during the academic year ____________
is highly appreciated.
To the best of my knowledge the details presented by her are original in nature
and have not been copied from any other source. Also this Report has not been submitted
earlier for the award of any degree or diploma in Saurastra University or any other
University.
Guide’s Name & Sign.
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INDEX
Sr. Particulars Page

No. no.
1. Introduction
2. Industry profile
3. Company Profile
4. Research Methodology
5. Data Collection & Interpretation
6. Suggestions & Recommendations
7. Summary
8. Bibliography
9. Appendix
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INTRODUCTION
Since the evolution of mankind, the need for biological and physical
fulfillment has emerged. Over the long span of development of mankind there is a
very high advancement in technological and industrial growth. In the beginning of
20th century, World has faced two major revolutionary wars World War I and World
War II. These have changed the world into global village gradually.
Due to advancement and growth in population has simultaneously

increased the demand for physical need. Availability of options has increased
competition among people. These have led to need of proper financial planning.
Emergence of investment option is mainly driven by people’s social and demographic
variables as described below.
Needs are generally classified into protection needs and investment

needs. Protection needs refers to the needs that have to be primarily taken care of, to
protect the living standard , current requirements and survival requirements of
investors. Need for regular incomes, need for retirement income and need for
insurance cover are protection need. Investment needs are additional financial needs
that have to be served through saving and investment. These are needs for children’s
education, hosing and children’s professional growth.
In Indian insurance sector was totally reserved for public sector

companies like LIC, GIC etc. with the opening up of the economy, a score of MNCs
have come in the market with Indian business houses resulting in client friendly,
healthy competition and rivalry in the insurance sector. Good old days have gone,
where only LIC agents were seen knocking doors of potential clients.
The policies floated by the government insurance companies where

primarily meant to cover risk but in today’s market, the policies are having
predominantly a major part of investment option with high rate of return.
One of the major challenge for all private companies is to develop a

strong sales team, since LIC who enjoyed a monopoly in this sector before it was
opened for private players has a network of 2,50,000 agents.
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India at a glance
 Population : 1.3 Billion
 Economy : 5th largest in the world in terms of purchasing power parity

(PPP)
 Premium as a percentage of GDP :1.77 %
 GDP growth rate : Over 7.5% per year on an average for the last
decade
 Saving rate : Around 30% of GDP
 Estimated middle class population : 300 Million
 Insured population : 70 million only
 Estimated business (2008) : $6.6 Billion
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REASONS FOR SELECTING AN INSURANCE SECTOR

FOR RESEARCH
Life Insurance Sector acts as a backbone of any economy. This

sector polls large funds from masses and then invests in the infrastructure projects as
well as other long term projects, which will generate a regular income flow in the
coming years. Traditionally life insurance was taken just as a security product but
now it is gaining importance as an investment product. Hence, now if you want to sell
life insurance product to anyone, you have to analyze his/her life stage, risk
preference, priorities and then suggest the appropriate product to that investor.
The insurance sector needs a great deal of financial planning,

knowledge, as well as knowledge about other financial products and their current
markets so that we can compare those products with the insurance product and
convince the client. Insurance companies also have to manage their investment in
such a way that the principal amount should not erode, and the investor should get
assured returns which the company has promised. This involves a great deal of
knowledge about portfolio management and hedging of risk. Thus this would give us
great exposure to financial markets as well as the intricacies of different financial
institutions, how they work and what difficulties they face.
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What Is Insurance ?
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Being a social animal and risk averse, man always tries to reduce
risk. An age-old method of sharing of risk through economic cooperation led to the
development of the concept of ‘insurance’.
Insurance is not necessarily an investment from which one expects

to get one's money back. Nor is it gambling. A gambler takes risks, while insurance
offers protection against risks that already exist. Insurance is a way to share risk with
others. Since ancient times, communities have pooled some of their resources to help
individuals who suffer loss.
“Insurance is a contract between two parties whereby one party

called insurer undertakes in exchange for a fixed sum called premiums, to pay
the other party called insured a fixed amount of money on the happening of a
certain event.”
“Insurance is a protection against financial loss arising on the

happening of an unexpected event. Insurance companies collect premiums to
provide for this protection. A loss is paid out of the premiums collected from the
insuring public and the Insurance Companies act as trustees to the amount
collected.”
For example, in a Life Policy, by paying a premium to the Insurer, the

family of the insured person receives a fixed compensation on the death of the
insured.
Similarly, in a car insurance, in the event of the car meeting with an

accident, the insured receives the compensation to the extent of damage. It is a system
by which the losses suffered by a few are spread over many, exposed to similar risks.
Insurance is desired to safeguard oneself and one's family against possible losses on
account of risks and perils. It provides financial compensation for the losses suffered
due to the happening of any unforeseen events.
By taking life insurance a person can have peace of mind and need
not worry about the financial consequences in case of any untimely death.
Certain Insurance contracts are also made compulsory by legislation. For example,
Motor Vehicles Act 1988, stipulates that a person driving a vehicle in a public place
should hold a valid insurance policy covering “Act” risks. Another example of
compulsory insurance pertains to the Environmental Protection Act, wherein a person
using or carrying hazardous substances (as defined in the Act) must hold a valid
Public Liability (Act) Policy.
Principles of Insurance
Insurance is a 'risk transfer mechanism' - it transfers the financial

risks of everyday life from you to an insurance company. But only in terms of the
financial consequences of risk. Without insurance, if you car was damaged, it would
cost you a lot of money to fix it or to buy another one. It could cost you even more to
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pay for compensation to someone else involved in an accident. Insurance protects
your financial interests. It cannot lighten the emotional, humanitarian and sentimental
consequences of an accident. But properly used, it will protect your financial
investment in your car and your legal obligations should you have an accident.
• Insurable Interest
Before you can insure anything, you must have a legally recognized
financial interest in what you are insuring. For motor insurance, you can't take out an
insurance policy on the car driven by the latest film star in the hope that it will crash
and you can claim. That is nothing more than gambling. But you can insure the car
you own, or drive. You would suffer financially if it is damaged or stolen and benefit
from its continued existence.
• Indemnity
This word is used to describe the type of payment you would receive.
A motor policy and a household policy are both a contract of indemnity. It means,
subject to the terms of the contract, you are entitled to be put back in the same
financial position after a loss as you were in before the loss. A refusal to indemnify is
a refusal to pay the claim.
• Contribution
If there is more than one policy in force that you could claim on, you
can't get payment from them both that would exceed the value of your loss. So each
policy would contribute a portion of the loss. You would receive the full value of the
loss but no more and the two policies would only bear part of it each.
• Subrogation
This is the right that your insurer has to recover from someone else
where you are entitled to do so. For example, if another driver causes damage to your
car, and your insurers pay for it, subrogation gives them the legal right to 'stand in
your shoes' and reclaim their outlay from the responsible driver.
• Proximate Cause
When you seek to claim from your insurers for a property or
financial loss you must show that the loss was caused as a result of a peril covered by
the policy. There must be a direct relationship of cause and effect; the cause must be
proximate in efficiency but not necessarily in point of time. There might for example,
be a chain of causes in which each cause is the natural result of the preceding cause. It
is the immediate and not the remote cause which must be considered. The full and
classic definition of this principle is given in case law called 'Pawsey V Scottish
Union and National Insurance Co (1908)'
History of Insurance
Insurance has been around since ancient times. The Babylonians and
Phoenicians had ocean marine insurance to protect a merchant against losses incurred
when a ship did not reach its intended destination with its load of goods or did not
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return with payment. This form of insurance, called Respondentia, evolved because
the goods on board often were used as collateral for a loan. The lender charged the
borrower interest on the loan and levied an additional sum, the premium, to cover the
cost of the respondentia contract. If the ship reached its destination and returned, the
merchant received payment for the goods and in turn paid the moneylender. If the
ship failed to return, the debt was cancelled. This system was profitable to lenders
because many respondentia contracts were sold, and debts were paid more often than
cancelled.
In ancient Rome, associations had a form of insurance for their

members. Each member made regular payments to the association in return for
coverage of funeral expenses or for assistance to family members who were injured or
ill.
Insurance also existed in 17th-century England, which was then one of

the world's principal maritime powers. Those seeking marine insurance would post a
list of their cargo and voyages in a London coffee house owned by Edward Lloyd.
Private investors would examine the list and sign their name by the entries they were
willing to guarantee for a fee. These private investors were the first insurance
underwriters, and the coffee house became the world center of marine insurance.
Today the organization is known as Lloyds of London, and it brings together
individuals, most often working in syndicates, who write all types of insurance.
Insurance in the modern form originated in the Mediterranean during

14th century. The earliest references to insurance have been found in Babylonia, the
Greeks and the Romans. The use of insurance appeared in the account of North Italian
merchant banks who then dominated the international trade in Europe at that time.
Marine insurance is the oldest form of insurance followed by life insurance and fire
insurance. The patterns that have been used in England followed in other countries
also in these kinds of insurance
The oldest and the earliest records of marine policy relates to a

Mediterranean voyage in 1347. In the year 1400, a book written by a merchant of
Florence, indicates premium rates charged for the shipments by sea from London to
Pisa. Marine Insurance spread from Italy to trading routes in other countries of
Europe.
Fire insurance has its origin in Germany where it was introduced in

municipalities for providing compensation to owners of the property, in return for an
annual contribution, based on the rent of those premises. The fire insurance in its
present form started after the most disastrous fire in human history known as the
'Great Fire' in London, which had destroyed several buildings. It drew the attention of
the public and the first fire insurance commercially transacted in 1667. The Industrial
Revolution (1720-1850) gave much impetus to fire insurance. The Nineteenth century
marked the development of fire insurance.
Due to the increasing demands of the time, different forms of insurance

have been developed. Industrial Revolution of 19th century had facilitated the
development of accidental insurance, theft and dacoity, fidelity insurance, etc. In 20th
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century, many types of social insurance started operating, viz., unemployment
insurance, crop insurance, cattle insurance, etc. This way the business of insurance
developed simultaneously with human and social development. Today, the use of
computers in the field of insurance is frequently increasing. Insurance becomes an
inseparable part of human development.
The early developments of life insurance were closely linked with that
of marine insurance. The first insurers of life were the marine insurance underwriters
who started issuing life insurance policies on the life of master and crew of the ship,
and the merchants. The early insurance contracts took the nature of policies for a short
period only. The underwriters issued annuities and pension for a fixed period or for
life to provide relief to widows on the death of their husbands. The first life
insurance policy was issued on 18th June 1583, on the life of William Gibbons for
a period of 12 months.
The history of life insurance in India dates back to 1818 when it was
conceived as a means to provide for English Widows. Interestingly in those days a
higher premium was charged for Indian lives than the non-Indian lives as Indian lives
were considered more riskier for coverage. The Bombay Mutual Life Insurance
Society started its business in 1870. It was the first company to charge same premium
for both Indian and non-Indian lives. The Oriental Assurance Company was
established in 1880. The first general insurance company- Tital Insurance Company
Limited, was established in 1850. Till the end of nineteenth century insurance
business was almost entirely in the hands of overseas companies.
Insurance regulation formally began in India with the passing of the

Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several
frauds during 20's and 30's sullied insurance business in India. By 1938 there were
176 insurance companies. The first comprehensive legislation was introduced with the
Insurance Act of 1938 that provided strict State Control over insurance business. The
insurance business grew at a faster pace after independence. Indian companies
strengthened their hold on this business but despite the growth that was witnessed,
insurance remained an urban phenomenon.
The Government of India in 1956, brought together over 240 private

life insurers and provident societies under one nationalized monopoly corporation
and LIC was born. Nationalization was justified on the grounds that it would create
much needed funds for rapid industrialization. This was in conformity with the
Government's chosen path of State- led planning and development.
ORIGIN OF INSURANCE
The concept of insurance is believed to have emerged almost 4500

years ago in the ancient land of Babylonia where traders used to bear risk of the
caravan by giving loans, which were later repaid with interest when the goods arrived
safely.
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A BRIEF HISTORY OF 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 business in India are:
1912: The Indian life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
1928: The Indian insurance Companies Act enacted to enable the government to
collect statistical information about both life and non- life insurance businesses.
1938: Earlier legislation consolidated and amended to by the insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.
GENERAL INSURANCE
The General insurance business in India, on the other hand, can trace its
roots to the Triton insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
1907: The Indian Mercantile insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General insurance Council, a wing of the insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business
practices.
1968: The insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
Prerequisites for Entering into Insurance
Life insurance is one of the important options for the investment

alternatives. So, there is the great need for the evaluation before
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entering into the insurance and its investment purpose. Any
private player wants to enter into an insurance sector has to
comply with the following requirement without which it will not be
considered eligible for obtaining license.
The prerequisites for entering into the insurance sectors may

be described as follows.
 Minimum Capital Requirements
The private sector is allowed to enter insurance sector. The

Minimum paid up capital for new entrants is mentioned below.
 Minimum paid up capital for life and non life insurance companies
of Rs. 1 billion.
 Minimum paid up capital for reinsurance companies is Rs. 2
billion.
 Share Holding
The promoters’ holding in private insurance company should

not exceed 40% and should, at no time, be less than 26% of the
total paid up capital.
No person other than the promoters should be allowed to hold more

than 1% of the equity.
 Entry for Foreign Players
If and when entry of foreign insurance companies is

permitted, they have to enter the market by way of joint
venture with Indian Partners.
 Equity Participation for Joint Venture
It is proposed that in the private insurance joint venture,

the Indian promoter will come to hold 74% stake in the venture
initially, leaving the foreign partner with 26%. It is also
proposed that the Indian promoter will have to mandatory
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lower its stake in the private insurance firm from the initial
74% to 26% in the period of ten years.
 Minimum Rural Business
 New entrance in life insurance should be required to

transact a certain minimum business in rural areas. It
should be ensured that such insurers do not avoid writing
small policies.
 Similarly, the new general insurance should also
write a certain minimum rural non traditional business.
 Those who fail to comply with these stipulations
should be subject to a penal assessment by the insurance
regulatory authority.
 Requirements for financial intuitions
 The RBI has stipulated that a minimum of 15% of

Capital Adequacy Ratio for FI to enter in insurance sector.
OVERVIEW OF THE LIFE INSURANCE SECTOR IN

INDIA
With largest number of life insurance policies in force in the world,
Insurance happens to be a mega opportunity in India. It’s a business growing at the
rate of 15-20 per cent annually and presently is of the order of Rs 450 billion.
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Together with banking services, it adds about 7 per cent to the country’s GDP. Gross
premium collection is nearly 2 per cent of GDP and funds available with LIC for
investments are 8 per cent of GDP.
Yet, nearly 80% of Indian population are without life insurance

cover, health insurance and non-life insurance continue to be below international
standards. And this part of the population is also subject to weak social security and
pension systems with hardly any old age income security. This itself is an indicator
that growth potential for the insurance sector is immense.
A well-developed and evolved insurance sector is needed for

economic development as it provides long term funds for infrastructure development
and at the same time strengthens the risk taking ability. It is estimated that over the
next ten years India would require investments of the order of one trillion US dollars.
With a large capital outlay and long gestation periods, infrastructure

projects are fraught with a multitude of risks throughout the development,
construction and operation stages. These include risks associated with project
implementation, including geological risks, maintenance, commercial and political
risks. Without covering these risks the financial institutions are not willing to commit
funds to the sector, especially because the financing of most private projects is on a
limited or non- recourse basis.
Insurance companies not only provide risk cover to infrastructure

projects, they also contribute long-term funds. In fact, insurance companies are an
ideal source of long term debt and equity for infrastructure projects. With long term
liability, they get a good asset- liability match by investing their funds in such
projects.
IRDA regulations require insurance companies to invest not less than 15

percent of their funds in infrastructure and social sectors. International Insurance
companies also invest their funds in such projects.
. There are two legislations that govern the sector- The Insurance Act-
1938 and the IRDA Act- 1999. The Government of India liberalized the insurance
sector in March 2000 with the passage of the Insurance Regulatory and Development
Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign ownership.
Under the current guidelines, there is a 26 percent equity cap for foreign partners in an
insurance company. There is a proposal to increase this limit to 49 percent. A host of
private insurance companies operating in both life and non-life segments have started
selling their insurance policies since 2001.
DEVELOPMENTS IN INSURANCE SECTOR

While Direct foreign investment is permitted in several areas of business in
India, the insurance industry has been fraught with trouble from the beginning.
Insurance has been and continues to be a government monopoly. For

instance, section 30 of the Life Insurance Corporation Act 1956 expressly provides
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that the Life Insurance Corporation of India shall have the exclusive privilege of
carrying on life insurance business. This monopoly situation also applies to general
insurance, although the position is different as regards risk management and
reinsurance
The previous government (The Indian National Congress) appointed the

Malhotra Committee which presented its Report in 1994, making recommendations
for opening up the insurance sector. It recommended infer alia that the private sector
be called upon to take some portion of the rural and non-traditional insurance market.
It also recommended that private foreign companies should enter into Joint ventures,
the promoter equity being 40 per cent and the balance held by the public.
When the present coalition government, the United Front, came to power,
as the Central Government, it introduced its promised Common Minimum
Programme. One of the attractions of this programme was the desire to introduce wide
ranging changes affecting the insurance sector, on lines similar to the banking sector
Based on this manifesto, the following developments took place in 1996 -
• A Bill on the Insurance Regulatory Authority was proposed. It is presently

uncertain whether the Authority will be empowered to invite domestic and
foreign investment in the insurance sector. Of course, the insurance industry
cannot be opened up until the necessary amendments have been made to the
LIC Act 1956 and the General Insurance Business Act 1972. It was
expected that this Bill would be debated in December 1996. However,
considering the strength of opposition to the Bill, and the time needed to draft
new guidelines and issue licences, it is likely to be at least 18 months before
any changes are implemented. something which foreign insurers have already
taken into account
• The Reserve Bank of India (RBI, the central regulatory bank in India) has in
the meantime granted approval to four foreign insurance companies to open
liaison offices in India. These will act only as channels of communication
between parties in India and their head offices abroad and are not permitted to
undertake any insurance business in India.
• As was expected, the existing insurance companies, both at the managerial and
employee level, have strongly opposed and criticized any move to privatize
insurance. A lot of criticism has also come from the coalition partners of the
United Front government. There seems to be little support for the move to
privatize.
• Informally, and in the belief that change will finally come about, several
Indian and foreign insurance companies have been neeotiatinc possible tie-ups
in life and general insurance business. So far, nearly 18 global insurance
majors have signed memoranda of understanding. It is rumoured in
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insurance circles that the government is likely to give licences in the initial
years only to a handful of companies—possibly only six—Three in life and
Three in general insurance business. A considerable amount of market
research and product blue print has already been done.
The following proposals were included in the 1997 Finance Bill (announced on 28
February 1997) -
• The Life Insurance Corporation of India (LIC) and the General Insurance
Corporation of India (GIC) should enjoy substantial autonomy, including the
power to make non-scheduled, non-consortium investments.
• LIC should be permitted to promote joint ventures in pensions fund business.
• GIC should be permitted to promote joint ventures in health insurance

business.
• Selected Indian companies with majority Indian ownership should be allowed

to undertake business in the health insurance sector.
• LIC should continue to enjoy a monopoly in life insurance business and GIC
should retain a monopoly in non-life, non-health insurance business.
• Comprehensive regulations relating to prudential, investment and social norms

should be made and enforced by the Insurance Regulatory Authority for all
service providers in the insurance industry.
Hence, it was decided to allow competition in a limited way by

stipulating the minimum capital requirement of Rs.100 crores. The committee felt the
need to provide greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with economic
motives. For this purpose, it had proposed setting up an independent regulatory body.
Benefits of Insurance
 Safeguards oneself and one's family for future requirements

If you are married without children or single, then you may need
life insurance to protect your partner or surviving family members against the
costs associated with your death. Funeral expenses, probate and administrative
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fees, outstanding debts, special obligations to charities, and federal and state
taxes are costs that all of us must consider.
 Disability Benefits
Death is not the only hazard that is insured; many polices also
include disability benefits. Typically, these provide for waiver of future
premiums and payment of monthly installments spread over certain time period.
 Accidental Death Benefits

Many policies can also provide for an extra sum to be paid.
(typically equal to the sum assured) if death occurs as a result of accident)
 Tax Relief
Under the Indian Income Tax Act, the following tax relief is
available
a) 20 % of the premium paid can be deducted from your total income tax
liability.
b) 100 % of the premium paid is deductible from your total taxable income.
When these benefits are factored in, it is found that most polices offer returns
that are comparable or even better than other saving modes such as PPF, NSC
etc. Moreover, the cost of insurance is a very negligible.
 Encourage Savings
Unlike any other savings plan, a life insurance policy affords full
protection against risk of death. In the event of death of a policyholder, the
insurance company makes available the full sum assured to the policyholders'
near and dear ones. In comparison, any other savings plan would amount to the
total savings accumulated till date. If the death occurs prematurely, such savings
can be much lesser than the sum assured. Evidently, the potential financial loss
to the family of the policyholder is sizable.
 Ready Marketability and Suitability for Quick Borrowing

A life insurance policy can, after a certain time period (generally
three years), be surrendered for a cash value. The policy is also acceptable as a
security for a commercial loan, for example, a student loan. It is particularly
advisable for housing loans when an acceptable LIC policy may also cause the
lending institution to give loan at lower interest rates.
Indian Partner Foreign Partner Specialization Present Status

HDFC Standard Life Life Started
UK Operation
Max India New York Life Life Started
Operation
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Bajaj Auto Allianz Life Started
Operation
Kotak Mahindra Old Mutual Life Started
South Operation
ICICI Prudential UK Life Started
Operation
TATA Group AIG,USA Life & non-Life Started
Operation
Birla Group Sun Life Life Started
Operation
Vysya Bank ING Life Started
Operation
SBI Cardiff, France Life Started
Operation
Registered insurers in India

Type of business Public sector Private sector Total
Life insurance 1 13 14
General insurance 6 8 14
Reinsurance 1 0 1
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Total 8 21 29
Registered insurers in India

16
14
12
Private
10 8
sector
Units
8 13
6 Public
sector
4
6
2
1 0
1
0
Life insurance General Reinsurance
Type of business insurance
ANALYSIS
There are mainly 29 companies in the both general insurance as well as

the life insurance and here in the graph I bifurcated the general insurance , life
insurance , and the reinsurance.
The data source is the IRDA annual report of 2003-2004.
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REASONS FOR SELECTION OF ICICI PRUDENTIAL

FOR THE RESEARCH
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ICICI Prudential ranks as number one amongst the private life

insurance players. There is vast potential for this company in Indian market. ICICI
Prudential is moving really fast to capture untapped market and it is expanding it’s
operations in different regions in India. The company not only stands No. 1 but also
treats its employees as No.1. No other company provides rewards and recognition to
their employees and advisors as done by ICICI Prudential. The culture of ICICI
Prudential is like a Hindu Undivided Family. It worked on the fundamental of
building relations. As we look as current performance and future targets laid down by
ICICI Prudential, it brings in our mind the words of the great poet :
ROBERT FROST
“THE WOODS ARE LOVELY
DARK AND DEEP……………

AND MILES TO GO BEFORE I SLEEP”
Hence we firmly believe we could not get better exposure to life

insurance if we would not have joined ICICI Prudential.
ICICI Prudential life insurance company limited is one of the leading

insurance companies in the private sector. Also it was the private sector company in
India to enter the business of insurance.
Insurance Regulatory and Development Authority –The

Watch Dog
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On 19th April 2000, the Authority has been notified in the Gazette of India
in terms of Insurance Regulatory and Development Authority Act, 1999 The
Authority has also been constituted.
Mission:
To protect the interests of the policyholders, to regulate, promote and ensure

orderly growth of the insurance industry and for matters connected therewith or
incidental thereto.
DUTIES, POWERS AND FUNCTIONS OF AUTHORITY
As per the INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY ACT ,1999
 14(1) Subject to the provisions of this Act and any other law for the time being
in force, the Authority shall have the duty to regulate, promote and ensure
orderly growth of the insurance business and re-insurance business.
 14(2) Without prejudice to the generality of the provisions contained in sub-
section (1), the powers and functions of the Authority shall include,--
a. Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;
b. Protection of the interests of the policy-holders in matters concerning assigning
of policy, nomination by policy-holders, insurable interest, settlement of
insurance claim, surrender value of policy and other terms and conditions of
contracts of insurance;
c. Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
d. Specifying the code of conduct for surveyors and loss assessors;
e. Promoting efficiency in the conduct of insurance business;
f. Promoting and regulating professional organization connected with the
insurance and re-insurance business;
g. Levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting enquiries
and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business;
h. Control and regulation of the rates, advantages, terms and conditions that may
be offered by insurers in respect of general insurance business not so controlled
and of 1938 regulated by the Tariff Advisory committee under section 64U of
the Insurance Act, 1938;
i. Specifying the form and manner in which books of account shall be maintained
and statement of accounts shall be rendered by insurers and other insurance
intermediaries;
j. Regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
k. Adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
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l. Supervising the functioning of the Tariff Advisory committee;
m. Supervising the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organization referred to in
clause (f);
n. Specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
o. Exercising such other powers as may be prescribed.
The founder chairman of IRDA was Mr. N.Rangachary. It was under his
stewardship that the Indian Insurance industry really opened up.
Chairman: Mr. C. S. Rao

The IRDA is located at
3rd Floor, Parisrama Bhavanam
5-9-58/B, Fateh Maidan Road
Basheerbagh
Hyderabad - 500 004
Ph:040-55820964
040-55789768
Fax: 55823334
KEY PLAYERS IN THE MARKET

Here below who are the key players in the insurance market are
shown with their Market share.
PLAYERS MARKET SHARE
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LIC 80%
ICICI Prudential 6.7%
Birla Sun Life 3.3%
Bajaj Allianz 2.8%
SBI Life 2.2%
Tata AIG 1.3%
Max – NYL 0.9%
Met Life 0.2%
Aviva 0.8%
Om Kotak 0.6%
ING Vysya 0.4%
AMP Sanmar 0.3%
TOTAL 100%
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Market share of life insurance

players
80%
70%
LIC
60% ICICI Prudential
Percentage
50% Birla Sun Life

Bajaj Allianz
40% SBI Life
Tata AIG
30% Max - NYL
20% Met Life
Aviva
10% Om Kotak
ING Vysya
0% AMP Sanmar
ANALYSIS
The main players in the insurance sector are given in the table with their
market share. I should say that before privatization only LIC is there so a kind of
monopoly so that there is 80% market share and the rest 20% are divided in other
private insurance companies.
I should say that after LIC the next rank goes to ICICI Prudential life
insurance and it is 6.7% and it is increasing day by day. So as the present situation
now LIC day by day loosing their market share because of the private players in the
market.
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Life insurance in India

20%
Insured
uninsured
80%
ANALYSIS
In India the whole population we consider at a 100% then from the

above chart we can say that there are 80% People which do not have any kind of
insurance.
So we can conclude that there is a wide scope for the insurance in the
developing country like India. At present Insurance industry is growing like leaps and
bounds.
ICICI Prudential Life Insurance Company Limited
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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.
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, distribution
channels and technology based delivery. The Company has already taken significant
steps to achieve this goal.
ICICI Ltd
ICICI Ltd was established in 1955 by the World Bank, the Government
of India and the Indian Industry, to promote industrial development of India by
providing project and corporate finance to Indian industry.
Since inception, ICICI has grown from a development bank to a

financial conglomerate and has become one of the largest public financial institutions
in India. ICICI has financed all major sectors of the economy, covering 6,848
companies and 16,851 projects. In the fiscal year 2000-2001, ICICI had disbursed a
total of Rs 319.65 billion.
ICICI Bank 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.
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Prudential plc:
Prudential plc was founded in 1848. Since then it has grown to become
one of the largest providers of a wide range of savings products for the individual
including life insurance, pensions, annuities, unit trusts and personal banking. It has a
presence in over 15 countries, and caters to the financial needs of over 10 million
customers. It manages assets of over US$ 259 billion (Rupees 11,39,600 crores
approx.) as of December 31, 1999. Prudential plc. has had its presence in Asia for the
past 75 years catering to over 1 million customers across 11 Asian countries.
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 12 countries - China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
Corporate Office:
ICCI Prulife Towers,

1089, Appasahab Marathe Marg,
Prabhadevi,
Mumbai 400 025.
Telephone Number: 022-462 1600
Website : http://www.iciciprulife.com/
MANAGEMENT
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• Board of Directors
The ICICI Prudential Life Insurance Company Limited
Board comprises reputed people from the finance industry both from India
and abroad.
Mr. K.V. Kamath, Chairman

Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. HT Phong
Mr. M.P. Modi
Mr. R Narayanan
Ms. Shikha Sharma, Managing Director
Mr. N.S. Kannan, Executive 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 Operation
Mr. Puneet Nanda, Chief - Investments
Vision
To make ICICI Prudential the dominant Life and Pensions player

built on trust by world class people and service.
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This we hope to achieve by:
• Understanding the needs of customers and offering them superior products

and service
• Leveraging technology to service customers quickly, efficiently and
conveniently
• Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
• Providing an enabling environment to foster growth and learning for our
employees
• And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to
Core values
 Integrity
 Customer First
 Boundryless
 Ownership
 Passion
INTEGRITY
Be honest and fair in what you say and what you do

• Practice what you preach.
• Stand up honestly and fearlessly for what is right.
• Act in a consistent and equitable manner.
• Think and act for long term impact.
• Do not compromise the future to pay for the present.
CUSTOMER FIRST
Own the customer; deliver the promise.
• Keep customer interest in the centre of all decisions.
• Promise what you can, deliver it to finish.
• Proactively seek voice of customer and act on it.
BOUNDRYLESS
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Never say “Its not my job.”
• Offer help and support across functions to ensure business success.
• Seek and share ideas freely.
• Recognize and respect internal customers.
• Understand and value contributions from colleagues.
• Nurture and motivate team members to reach full potential.
OWNERSHIP
If it is to be, it is up to me.
• Take responsibility and see task through completion.
• Own mistakes, learn from failures.
• Pursue goals relentlessly, never give up.
• Be a team player, take ownership for a team performance.
PASSION
Boundless energy and enthusiasm.

• Exhibit “Winning Instinct.”
• Demonstrate speed and urgency for achieving results.
• Challenge status quo and do things differently.
Each of the values describes what the company stands for, the
qualities of people and the way they work.
ICICI prudential life insurance 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.
Fact Sheet
• THE COMPANY
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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. 1185 crore with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For the period
April- December, 2005, the company garnered Rs 1,430 crore of new business
premium for a total sum assured of Rs 15,170 crore and wrote 497,765 policies. 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.
ICICI Prudential 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 rating is the highest credit rating, and is a clear assurance of ICICI
Prudential’s ability to meet its obligations to customers at the time of maturity or
claims.
• DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst

private life insurers in India, having commenced operations in over 116 cities and
towns in India, stretching from Bhuj in the west to Guwahati in the east, and
Amritsar in the north to Trivandrum in the south.
The company has 8 bancassurance tie-ups, having agreements with

ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Ernakulam Bank, Lord
Krishna Bank and some co-operative banks, as well as about 290 corporate agents and
brokers. It has also tied up with NGOs, MFIs and corporate for the distribution of
rural policies and organizations like Dhan for distribution of Salaam Zindagi, a policy
for the socially and economically underprivileged sections of society.
ICICI Prudential has recruited and trained more than 65,000 insurance
advisors to interface with and advise customers. Further, it leverages its state-of-the-
art IT infrastructure to provide superior quality of service to customers.
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Equity holding of company
74%
80%
70%
60%
50%
Percentage 40% 26%
30%
20%
10%
0%
ICICI BANK PRUDENTIAL
company name
ANALYSIS
Here above given that there is a joint venture of ICICI BANK and U.K.
BASED PRUDENTIAL COMPANY. So there is 74% equity holding of ICICI
BANK and 24% is of PRUDENTIAL COMPANY.
News Releases
Below are the 5 most recent news releases issued by ICICI Prudential
Life Insurance Company.
• ICICI Prudential Life Insurance crosses two million policies milestone

Mumbai; February 21, 2006
• ICICI Prudential records 76% quarter-on-quarter growth in Q306

Mumbai, January 19, 2005
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• Fitch Rates India's ICICI Prudential Life Insurance IFS 'AAA(ind)'
Fitch Ratings-London/Mumbai-16 January 2006
• ICICI Prudential marches into 5th year of Bank of India partnership

Mumbai; December 1, 2005
• ICICI Prudential Life Insurance bridges the Gulf

Bahrain; November 28, 2005
ICICI Pru in the News
• ICICI PruLife unveils unit-linked products

Business Line – June 03, 2005
• Let life insurers into derivatives markets'

Business Line – May 23, 2005
• ICICI Pru InvestShield Life

Business Line – May 08, 2005
• ICICI Pru's new business jumps 77% to cross Rs 1K cr

The Economic Times – April 13, 2005
• Insurance now a bigger draw for agents than MFs

The Economic Times - April 08, 2005
PRODUCTS
Insurance Solutions for Individuals.
ICICI Prudential Life Insurance offers a range of innovative,

customer-centric products that meet the needs of customers at every life stage. Its
products can be enhanced with up to 5 riders, to create a customized solution for each
policyholder.
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Savings Solutions
• SecurePlus :
SecurePlus is a transparent and feature-packed savings plan that

offers 3 levels of protection.
• CashPlus :
CashPlus is a transparent, feature-packed savings plan that offers 3

levels of protection as well as liquidity options.
• Save’n’Protect :
Save’n’Protect is a traditional endowment savings plan that offers life

protection along with adequate returns.
• CashBak
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 & LifeTimeII
LifeTime & LIfeTimeII 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 II
LifeLink II is a single premium Market Linked Insurance Plan

which combines life insurance cover with the opportunity to stay invested in
the stock market.
• Premier Life :
Premier Life is a limited premium paying plan that offers

customers life insurance cover till the age of 75.
• InvestShield Life :
InvestShield Life is a Market Linked plan that provides capital

guarantee on the invested premiums and declared bonus interest.
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• InvestShield Cash :
InvestShield Cash is a Market Linked plan that provides capital

guarantee on the invested premiums and declared bonus interest along with
flexible liquidity options.
• InvestShield Gold :
InvestShield Gold is a Market Linked plan that provides capital

guarantee on the invested premiums and declared bonus interest along with
limited premium payment terms.
Protection Solutions
• LifeGuard :
LifeGuard is a protection plan, which offers life cover at very low

cost. It is available in 3 options. which are as follows.
• Level Term Assurance with return of premium

• Level Term Assurance without return of premium
• Level Term Assurance - Single premium
HomeAssure:
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 :
As a responsible parent, you will always strive to ensure a hassle-

free, successful life for your child. However, life is full of uncertainties and even the
best-laid plans can go wrong. Here’s how you can give your child a 100% safe and
assured tomorrow, whatever the uncertainties. SmartKid is especially designed to
provide flexibility and safeguard your child’s future education and lifestyle, taking all
possibilities into account.
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• SmartKid regular premium

• SmartKid unit-linked regular premium
• SmartKid unit-linked regular premium II
• SmartKid unit-linked single premium II
Retirement Solutions
Life Expectancy has been rising rapidly and today you can expect to live
longer than your earlier generations. For you, this increase will mean a
longer retirement life, stretching into a couple of decades. ICICI Prudential
presents Retirement Solutions that combine the best of insurance and
investment. These solutions are developed to ensure your peace of mind
for the years to come.
Choose from amongst 6 retirement plans:
• Golden years
A flexible unit-linked retirement solution that offers flexibilities during the
accumulation as well as payout phase.
• Investment shield pension

A regular premium unit-linked pension plan with an assurance of Capital
Guarantee*
• Life Time Pension II

A regular premium linked pension plan that gives you the freedom to
choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.
• Life Link Pension II

A single premium linked pension plan that gives you the freedom to
choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.
• Secure Plus Pension

A regular premium pension plan that gives you the flexibility to
choose between 3 levels of sum assured for the same level of total
annual contribution
• ForeverLife
A regular premium pension plan that helps you save for your retirement while
providing you with life insurance protection.
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• ForeverLife
ForeverLife is a retirement product targeted at individuals in their

thirties.
• SecurePlus Pension
SecurePlus Pension is a flexible pension plan that allows one to

select between 3 levels of cover.
Market-linked retirement products

• LifeTime Pension II
LifeTime Pension II is a regular premium market-linked pension

plan.
• LifeLink Pension II
LifeLink Pension II is a single premium market-linked pension plan.
• InvestShield Pension
InvestShield Pension is a regular premium pension plan with a

capital guarantee on the investible premium and declared bonuses.
• Golden Years:
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.
ICICI Prudential also launched “Salaam Zindagi”, a social sector group

insurance policy targeted at the economically underprivileged sections of the
society.
Health Solution
• Health Assure:
Health Assure is a regular premium plan which provides long

term cover against 6 critical illnesses by providing policyholder with financial
assistance, irrespective of the actual medical expenses.
• Health Assure Plus:
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Health Assure Plus is a regular premium plan which provides
long term cover against 6 critical illnesses by providing financial assistance,
irrespective of actual medical expenses, as well as an equivalent life insurance
cover.
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 obligations.
• 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.
• Accident & 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
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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.
• Accident Benefit:
This rider option pays the sum assured under the rider on death
due to accident.
• Critical Illness Benefit:
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.
• Income Benefit:
This rider pays the 10% of the sum assured to the nominee every
year, till maturity, in the event of the death of the life assured. It is available
on SmarKid, SecurePlus and CashPlus.
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 SecurePlus and
CashPlus.
Investment Plan
LifeLink II :
LifeLink II is a unique plan that combines the security of a life insurance

policy with the opportunity of enjoying high returns on your investments, without the
market risks compromising on the protection of your family!
Keyman Plans
A keyman is an individual who directly affects the profitability and the

continuity of a business and whose absence may have an adverse effect on the health
and continuity of the business. Keyman insurance is a life insurance policy taken by
the company on the life of such a key person.
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The objective of the keyman insurance is to provide the company with
money so that the financial losses to the company can be protected, in absence of the
keyman. The aim is to indemnify the company of these losses and to allow business
continuity.
All premiums paid for securing a keyman life insurance policy are
treated as business expenditure u/s 37 (1).
SWOT ANALYSIS
Strength
1. ICICI Prudential is the 1st life insurance company to introduce UNIT

LINKED, PENSION PRODUCTS AND LIFE TIME it can get the pioneer
advantage.
2. Prudential is the 156 year old company founded in 1848 so it has full
fledge experience in this industries.
3. ICICI enjoys a rating with the Moody’s which is higher than the
severing rating.
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4. Large distribution channel with 30 branches and more than 30,000
financial advisors.
5. ICICI Prudential has the best incentives which motivate and encourage
the advisors to work and fulfill the commitment.
6. The financial condition of both companies is very sound.
7. Good customer has service.
8. Company has created a brand name.
Weaknesses
1. It has to do operation within the boundary of IRDA.
2. Up till one no more option of product for middle class offered by ICICI
Prudential.
3. No option in rural area.
4. Yet to build a strong distribution network in the market.
Opportunity
1. Today ICICI Prudential covers 40% Market so yet there is a great potentiality to
increase market share.
2. Insurance plan like pension plan, child plan and investment plan of ICICI
Prudential go good response from the market. So in future company can take
benefit for it.
3. The brand name that creates ICICI Prudential and awareness level of it is
comparatively quite higher than competition. So it will be helpful in future while
lunching new innovation products.
4. Untapped market of India.
Threats
1. It is private company so there is a doubt about solvency and liquidity among the
general people.
2. Change in the environmental factors many affects the company.
3. The government policies and the annual budget may the insurance market.
4. Large distribution network of LIC and trust of people in LIC.
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Relevance of study
“ALL PROGRESS IS BORN OF INQUIRY. COUBT IS OFTEN BETTER THAN

OVERCONFIDENCE, FOR IT LEADS TO INQUIRY, AND INQUIRY LEADS TO
INVENTION”
Research has its special significance in solving various operational and

planning problems of business and industry.
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Research inculcates scientific and inductive thinking and promotes the

development logical habits of thinking and organization.
Thus, Research is the fountain of knowledge for the sake of knowledge

and an important source of providing guidelines for solving different business,
governmental and social problems. It is a sort of formal training which enables one to
understand the new developments in one’s field in a better way.
In ICICI Prudential Life Insurance
 Study would identify the avenue of Investment which yields maximum

return.
 It would analyze whether ICICI Prudential return is moving along with
the market return.
 It would reveal the state of competition among ICICI Prudential
companies.
 It would suggest the integration of ICICI with prudential.
 It would also determine the risk return relationships associated with
different products of ICICI Prudential.
RESEARCH PROBLEM
The first and foremost step happens to be that of selecting and

properly defined research problem.
RESEARCH PROBLEM refers to some difficulty which a

researcher experiences in the context of either a theoretical or practical situation
and wants to obtain a solution for the same.
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A Research problem is one which requires a researcher to find out
the best solution for the given problem that is to find out by which course of action
the objective can be attained optimally in the context of a given environment.
Thus zest for the work is must. The subject or the problem selected
must involve the researcher and must have an upper most place in his mind so that
he/she may undertake all pains needed for the study.
I have selected the research problem in ICICI Prudential Life

Insurance is as follows :
 To know the Investment Pattern of the ICICI Prudential life insurance.
 To know the Investor’s approach towards the return given by ICICI Prudential
Life Insurance.
So, above two are very important research problem that I want to
study and get the solution of it.
RESEARCH OBJECTIVES
“The word objective means purpose behind doing anything.”
Every research study has its own specific research objective. Without
objective no one is doing any work. To do anything there is a purpose behind it.
Here in ICICI Prudential my research objectives are as follows
53
2
 To know Investment Pattern of ICICI Prudential Life Insurance company.
 To know the Investor’s approach towards the return provided by the ICICI
Prudential Life Insurance.
 To know the Satisfaction of the investors towards the return offered by the
ICICI Prudential Life Insurance.
Here above are the very important research objective that I want to
study and carry out the optimum solution for it.
SCOPE OF STUDY
Scope of study means the study whichever is carried out where it will
helpful in future.
In the same way Investment Pattern of ICICI Prudential Life Insurance

Company is helpful in the following ways
54
2
 It will be helpful to the company to know where it is lacking behind.
 The study will helpful to know the investor’s satisfaction towards return
provided by ICICI Prudential Life Insurance Company.
 On the basis of the study company can take the corrective actions.
 The study will be helpful to know the investment pattern in comparison to

LIC.
DATA COLLECTION
Life Insurance Statistics

PREMIUM(Rs. in Mn.) MARKET SHARE(%)
2002-03 2003-04 % Growth 2002-03 2003-04
Allianz Bajaj 633.89 1797.05 183.50 0.37 0.96

ING Vyasa 176.59 726.07 311.16 0.1 0.39
AMP Sanmar 63.15 278.82 341.51 0.04 0.15
SBI Life 718.81 1959.01 172.53 0.42 1.05
55
2
Tata AIG 522.08 1801.55 245.07 0.31 0.96
HDFC Standard 1293.14 2093.33 61.88 0.76 1.12
ICICI Prudential 3641.07 7509.10 106.23 2.15 4.01
Birla Sunlife 1295.68 4498.62 247.20 0.77 2.4
Aviva 134.66 771.38 472.84 0.08 0.41
Om Kotak 352.1 1271.02 260.98 0.21 0.68
Max Newyork 673.14 1314.88 95.34 0.4 0.7
Metlife 76.99 233.82 203.70 0.05 0.12
Pvt. Total 9581.3 24254.64 153.15 5.66 12.95
LIC 159767.62 162846.87 1.93 94.34 87.05
Total 169348.92 187101.5 10.48 100 100

(Source:IRDA Journal May 2004)
M arket share of LIC & Pvt. Player

in 2003-04
Pvt. Total
13% Pvt. Total
LIC
LIC
87%
ANALYSIS
We can analyze that market share of LIC and private insurance companies.
87% is of LIC and 13% is private insurance companies. As the study on ICICI
Prudential life insurance the market share is the highest which is 4.01% in the year
2003-04.
PREMIUM(Rs. in Mn.) MARKET SHARE(%)
56
2
2002-03 2003-04 % Growth 2002-03 2003-04
Pvt. Total 9581.3 24254.64 153.15 5.66 12.95
Market Share of Pvt. Insurers
12.95
15
10 5.66
% Mkt.Share Pvt. Total
5
0
2002-03 2003-04
ANALYSIS
Here in the above chart we can see the market share of the private players in
the year 2002-03 and in the year 2003-04.
Company 2002-03 2003-04 %

Growth
Allianz Bajaj 633.89 1797.05 183.50

ING Vyasa 176.59 726.07 311.16
AMP Sanmar 63.15 278.82 341.51
SBI Life 718.81 1959.01 172.53
Tata AIG 522.08 1801.55 245.07
HDFC Standard 1293.14 2093.33 61.88
57
2
ICICI Prudential 3641.07 7509.10 106.23
Birla Sunlife 1295.68 4498.62 247.20
Aviva 134.66 771.38 472.84
Om Kotak 352.1 1271.02 260.98
Max Newyork 673.14 1314.88 95.34
Metlife 76.99 233.82 203.70
Absolute Grow th in Prem ium incom e

of Pvt. Players
8000
7000
6000
5000
Rs. in Mn.
4000
2002-03
3000
2003-04
2000
1000
0
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iva
IG
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aj
Ta fe
ife
e
rk
d
SB r
Sa a
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a
ta
lif
I P dar
s
aj
yo
FC ta A
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nl
Av
IL
ya
Ko
et
n
zB
ew
de
Su
M
V
n
IC Sta
m
an
ru
N
O
IN
ax
li
AM
Bi
Al
M
IC
D
H
ANALYSIS
From the above chart we can interpret that there is a growth in each and
every private life insurance company. But as we can say there is maximum growth in
ICICI Prudential Life Insurance which is 106.23%. The amount is increase from
3641.07 to 7509.10
58
2
PATTERN OF INVESTMENT SPECIFIED BY IRDA-LIFE INSURANCE
Sr. No. Type of Investment Percentage

1. Government Security 25%
2. Government securities or other approved Not less than 50%
securities (including 1.)
3. Approved investments as specified in schedule I
a. Infrastructure and social sector Not less than 15%
b. Others to be governed by exposure norms
(investments in “other than in Approved Not exceeding 35%
investments” in no case can exceed 15%
of the fund
59
2
Sectoral Investments by Life Insurer

Percentage Share
Investment Profile LIC Private Sector Total
(Public Sector)
31/3/04 31/3/03 31/3/04 31/3/03 31/3/04 31/3/03
Central Government 48.1 53.6 38.8 47.8 48.0 53.6
Securities
State Govt. & Other 11.0 11.1 5.2 3.8 11.0 11.0
Approved Securities
(Including C.G.Sec.)
Infrastructure and Social 11.0 12.0 10.9 13.5 11.0 12.0
Sector
Investment subject to 25.0 22.8 39.3 30.5 25.3 22.9
Exposure norms
(Including OTAI)
Other than approved 4.8 0.4 5.8 4.4 4.8 0.5
investments (OTAI)
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: IRDA, P. 13, Vol. II, No.12-13, November 2004.
ICICI PRUDENTIAL INVESTMENT PATTERN ACCORING TO

THE PLANS
PENSION PLANS
Market linked plans
Choice of fund:
There are four fund options available to the policyholder:

Plan Risk Investment
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2
Pattern
Maximiser High Equity - 100%
Debt - 25%
Balancer Average Debt - 60%
Equity - 40%
Protector Moderate Debt - 100%
Equity - 25%
Preserver Low Debt - 50%
Equity - 50%
Market Linked Pension Plans at a glance:
Particulars LifeTime Pension LifeLink

Pension
Min. Age at Entry 18yrs 18yrs
Max. Age at Entry 60yrs (65yrs for zero death 72yrs
benefit)
Max cover ceasing 70yrs
Age
Min Term 10yrs 3yrs
Max Term Till vesting Age
Min Vesting Age 45yrs 45yrs
Max Vesting Age 75yrs 75yrs
Modes of payment Yearly, Half Yearly and Single.
Monthly.
Unit Linked Smart Kid II - SP
Choice Of Fund

Plan Risk Investment Pattern
Debt - 25%
Equity - 40%
Equity - 25%
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2
Equity - 50%
SmartKid - II (SP) at a Glance
Min Age at Entry 20 yrs

Max Age at Entry 60 yrs
Max Cover Ceasing Age 70 yrs
Minimum Contribution Single Premium - Rs. 50,000/-
Minimum Term 10 yrs
Maximum Term 25 yrs
Child's Age 0 - 15 yrs.
Unit Linked Smart Kid I - RP

Choice Of Fund

Debt - 25%
Equity - 40%
Equity - 25%
Equity - 50%
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2
SmartKid - I (RP) at a Glance

Max Cover Ceasing 70 yrs
Age
Minimum Annual - Rs. 18,000/-Half-Yearly - Rs. 9,000/-
Contribution Monthly - Rs. 1,500/-
Minimum Term 10 yrs
Maximum Term 25 yrs
Child's Age 0 - 15 yrs.
Unit Linked Smart Kid II - RP

Choice Of Fund

Debt - 25%
Equity - 40%
Equity - 25%
Equity - 50%
SmartKid - II (RP) at a Glance
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2

Max Cover Ceasing 70 yrs
Age
Minimum Annual - Rs. 18,000/-Half-Yearly - Rs. 9,000/-
Contribution Monthly - Rs. 1,500/-
Minimum Term 10 yrs
Maximum Term 25 yrs
Child's Age 0 – 15 yrs.
LIFE LINK
Choice of Fund:
The policyholder has the flexibility of investing in all the four funds in the proportion
he wishes under one single policy. Following are the fund options:

Debt - 25%
Equity - 40%
Equity - 25%
Equity - 50%
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2
LifeLink - at a glance:
Min age at entry 0 years

Max age at entry 60 years
Max cover 70 years

ceasing age
Minimum Rs 50,000
Contribution
Modes of Yearly, Half-Yearly and Monthly
payment
Death Benefit The death benefit is higher of the Sum Assured
reduced by the withdrawals or the value of units, at the
time of death.
However, the death benefit before 7 years of age or
after 70 years of age would only be the value of
investments.
LIFE TIME I
Choice of fund:

Debt - 25%
Equity - 40%
Equity - 25%
Equity - 50%
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2
Life Time I at a glance:
Min age at entry 0 years

Max age at entry 60 years
Max cover 70 years
ceasing age
Minimum Rs 50,000
Contribution
Modes of Yearly, Half-Yearly and Monthly
payment
Death Benefit The death benefit is higher of the Sum Assured
reduced by the withdrawals or the value of units, at
the time of death.
However, the death benefit before 7 years of age or
after 70 years of age would only be the value of
investments.
Invest Shield Life
Unit Linked Plan With Capital Guarantee
Asset Allocation % Mix

Debt Minimum: 70%
Maximum: 100%
Equity Minimum: 0%
Maximum: 30%
Invest Shield Life Features at a glance:
Death Benefit Sum Assured + Higher of the value of Unit Fund or the
guaranteed value of Unit Fund
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2
Maturity Benefit Higher of the value of Unit Fund or the guaranteed value of
Unit Fund
Extended Life Life Insurance for an amount of 50% of the Sum Assured, for
Cover 10 years post maturity, subject to a maximum age of 75 years
Age at Entry Minimum: 0 years
Maximum: 55 years
Maximum Age at 65 years
Maturity
Maximum Cover 75 years (including the extended life cover)
Ceasing Age
Term of the Policy Minimum: 10 years
Maximum: 30 years
Bonus Interest To be declared at the end of every financial year, on the
guaranteed value of the unit fund
Top-Up Minimum Amount of Rs 2,500/-
Investments
Minimum Annual Rs 8,000/-
Premium
Modes of Payment Yearly, Half-Yearly and Monthly
Additional Riders Accidental Death Benefit Rider
Offered Waiver of Premium
Critical Illness Rider
Invest Shield Cash
The asset allocation of the unit fund in Invest Shield Cash is:

Debt and Money Market Instrument 100%
Invest Shield Cash features at a glance:
Death Benefit Sum Assured + Higher of the value of Unit Fund

or the guaranteed value of Unit Fund.
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2
Maturity Benefit Higher of the value of Unit Fund or the guaranteed
value of Unit Fund.
Liquidity Benefit From 6th year onwards in the policy, withdrawal
of upto 10% of the value of unit fund is possible.
This is available only once during a policy year.
Maximum: 60 years
Maturity
Term of the Policy Minimum: 10 years
Maximum: 30 years
Bonus Interest To be declared at the end of every financial year,
on the guaranteed value of the unit fund.
Top-Up Investments Minimum Amount of Rs 2,500/-
Premium
Modes of Payment Yearly, Half-Yearly and Monthly
Additional Riders Accidental Death Benefit Rider.
Offered Waiver of Premium.
Critical Illness Rider.
Invest Shield Pension
The Asset Allocation is as follows:

Debt Minimum: 70%
Maximum: 100%
Equity Minimum: 0%
Maximum: 30%
Invest Shield Pension Features at a glance:
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2
guaranteed value of Unit Fund. The nominee, as lump sum or
to take a pension, can use this value.
Maturity (Vesting) Higher of the value of Unit Fund or the guaranteed value of
Benefit Unit Fund will be used to purchase an annuity.
Commutation At vesting, the policyholder can take upto 1/3rd of the benefit
Benefit value. The remaining amount is used to buy an annuity.
Sum Assured Option1: ZERO Sum Assured.
Options Option2: A Sum Assured as a multiple of the annual premium.
Maximum: 60 years (when a Sum Assured is chosen); 65 years
(for ZERO Sum Assured).
Age at Maturity Minimum: 45 years
(Vesting) Maximum: 75 years
Term of the policy Minimum: 10 years
Maximum: 30 years
guaranteed value of the unit fund
Top-Up Minimum Amount of Rs.2,500/-
Investments
Minimum Annual Rs.10,000/-
Premium
Modes of Payment Yearly, half-Yearly and Monthly
Additional Riders Accidental Death Benefit Rider
Offered Waiver of Premium.
Annuity Options 5 options available.
Invest Shield Gold

The Asset Allocation is as follows:

Asset % Mix
Allocation
Debt Minimum: 70%
Maximum: 100%
Equity Minimum: 0%
Maximum: 30%
Invest Shield Gold Features at a glance:
guaranteed value of Unit Fund
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2
Maturity Benefit Higher of the value of Unit fund or the guaranteed value
of Unit fund
Limited Premium Choice of a premium paying term of 5, 7 or 10 years with
Paying Term a corresponding coverage term of 10, 15 and 20 years
Maximum:60 years
Maturity
Term of the policy Minimum: 10 years
Maximum 20 years
guaranteed value of the unit fund.
Top-Up Investments Minimum Amount of Rs. 2,500/-
Premium
Modes of Payment Yearly, Half-Yearly and Monthly.
Additional Riders Accident and Disability Benefit Rider
Offered Critical Illness Benefit Rider
SAMPLING DESIGN
Sample design is definite plan for obtaining a sample from a

given population. It refers to the technique or the procedure the researcher would
adopt in selecting items for the sample.
Sample design is determined before the data are collected. There

are many sample designs from which a researcher can choose any one.
For the study of Investment Patterns of ICICI Prudential Life

Insurance I selected the non Probability sampling technique.
Sampling Design : Non-Probability sampling
Sample Unit : Sample Unit is ICICI Prudential Life Insurance
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2
Sample Size : Sample Size is 50 persons
Instrument : Questionnaire
Focus Group : Focus group in my study is the employee and Financial advisor
of ICICI Prudential Life Insurance.
Mode of Collection data : I have collected all the data by the personal interview and
the telephonic talk.
LIMITATION OF THE STUDY
There are many limitation are there while conducting my study which
are as follows.
 Time constraint : As the Project training is of 2 month we can’t get the proper
data within a limited time period.
 Confidential information is not shared due to business secrecy and the lack of
trust.
 They are not at all ready to give any financial information to the trainees for
their study of project.
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 Due to time constraints the executives of the company are not able to allot
time to the trainees
 Sample size is also one of the limitations as it is not represent the whole
population. Because of this we can not or not give the proper results.
 Sampling design may also be one limitation in the study. As sampling design
may not represent the whole population.
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2
QUESTION 1
Occupation of the Persons which is the Focus group for my study ?
Corporate Employees 11
Businessmen 39
Total 50
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2
Occupation of the People
22%
Corporate
employee
Businessman
78%
ANALYSIS
Here I have studied the Focus Group as my topic is selected. There are 11
corporate employees and 39 Business men.
My main focus group is the ICICI Prudential financial advisor and and
employee of ICICI Prudential Life Insurance Company Ltd.
QUESTION 2
Annual income of the Persons of the focus group?
Less than 100,000 12

100,000 to 299,999 33
300,000 to 499,999 03
More than 500,000 02
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2
Annual Income
4%
6%
24% Less than
100,000
100,000 to
299,999
300,000 to
499,999
More than
500,000
66%
ANALYSIS
From the above chart we can see that there are 66% persons are fall under
the income group of 100,000 to 299,999. So majority persons monthly income fall
under the 8000 to 25,000. Chart shows that there are 24% persons income is less than
100,000.
There are 6% and 4% people are of the income 300,000 to 499,999 and More than
500,000 respectively.
As per the general research we can say that middle class people are
always more as compared to the upper class. The same thing is also we can see
through the chart.
QUESTION 3
How the persons are making their investment portfolio ?
Bank F.D. 18
Stock Market 2
Government Security 13
Mutual Fund 1
75
2
Post office 7
PPF 5
Others 4
Investment avenues
Bank F.D.
8%
Stock Market
10%
36% Government
Security
Mutual Fund
14%
Post office
2% PPF
4% Others
26%
ANALYSIS
From the above chart we can see that people are more believing in the
bank fixed deposit, and then they come to the Government security and then Post
office. Here as my research is on insurance all persons are investing in insurance more
or less.
From the above chart we can easily say that investors are risk averse
they do not want to go for risky things. Here in the above chart in others I included
the Gold, Land and building etc. so people are also believe to invest in gold and others
assets.
QUESTION 4
People having policy of which policy ?
LIC & ICICI Prudential 36
76
2
ICICI Prudential & HDFC
std. life 14
Insurance policy
28%
LIC & ICICI
Prudential
ICICI
Prudential &
HDFC std. life
72%
ANALYSIS
Here form the above chart we can see that people having the combination
of the ICICI Prudential and LIC. People are more believing in LIC as LIC is the
government body. They are always having the doubt about the private companies but
now they are becoming broad minded and purchasing the policies of private
companies. Here the combination LIC and ICICI is 72% and combination of ICICI
and HDFC is 28%.
QUESTION 5
Approximately How much return the investors having ICICI

Prudential policy are getting?
4 to 6 1
77
2
6 to 8 19
8 to 10 23
More than 10 7
Percentage of return from ICICI

Prudential to investor
2% 4 to 6
14%
38% 6 to 8
8 to 10
46% More than

10
ANALYSIS
From the above chart we can see that there are the average returns
getting by the investors from the ICICI Prudential life insurance is between 6 to 8
percentage and 8 to 10 percentage. Higher return is also given by the ICICI is about
14% of people is getting. There are also 2% people whichever getting very low return
as 4 to 6%.
So the return given by the ICICI Prudential life insurance is between 6 to

10%. Which we can consider as the average return.
QUESTION 6
According to you Does the return on insurance cover exceeds cost?
Yes 13
78
2
No 8
Indifferen
t 29
Return on insurance exceeds the cost
26%
Yes
No
58% Indifferent
16%
ANALYSIS
From the above chart we can say that many persons are not say anything
or we can say that they do not gave any opinion about the return and cost of the
policy.
There 26% investors says that the return of policy hold by them is
exceeds the cost that they are incurring on the plan. In the same way there are 16%
investors says that the return of policy hold by them is not exceeds the cost.
From the above chart we can say that the investor believing that there is
more return than the cost incurred as there are many benefits of the insurance like life
cover, tax benefit, loan on investment etc.
QUESTION 7
What do you feel about return ?
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2
Extremely satisfied 4
Highly satisfied 10
Moderately satisfied 21
Satisfied 12
Not satisfied 3
Investor Perception about return

Extremely
satisfied
Highly satisfied
6% 8%
24% 20% Moderately
satisfied
Satisfied
Not satisfied
42%
ANALYSIS
From the above chart we can see that investor by investing in the
insurance sector they are moderately satisfied. Major portion is cover by the
moderately satisfied that is 42%. Next rank is of the satisfied that is 24%. 20% of the
people are highly satisfied by investing in the insurance sector and 8% are extremely
satisfied. There is also a portion of not satisfied by the return getting from the ICICI
Prudential Life Insurance.
As the general research we can say there is a less return in the insurance as
compared to the equity and stock market. So those major portions of the investors are
moderately satisfied by the return from the Icici prudential life insurance.
Here we can also say that insurance is taken to avoid the risk or to reduce
the risk. So where there is less risk there is less return as the principle of risk and
return says.
QUESTION 8
Which factor do you consider while investing in life insurance?
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2
Risk & Return 13

Risk & Tax benefit 11
Liquidity & Return 12
Tax benefit 14
Factors considered while investing in

life insurance
28% 26% Risk & Return
Risk & Tax benefit
Liquidity & Return
22% Tax benefit

24%
ANALYSIS
From the above chart we can say that persons are investing in the
insurance because of the tax benefit they are not aware about the concept of the
insurance. Now gradually people are becoming aware about the insurance and its
benefits.
According the situation and the individual belief investor’s are

considering the main factors like risk return, tax benefit and liquidity.
QUESTION 9
Is ICICI Prudential return moving along with the market return?
81
2
Yes 8
No 42
ICICI Prudential moving with market

return
16%
Yes No
84%
ANALYSIS
From the above chart we can say that 84% of the investors say return of
ICICI Prudential return is not moving along with the market return. According to
them by investing in the stock market they can get the more return.
While 16% say that ICICI Prudential return is moving along with the
market return. According to them they are not only concern about the return but the
other benefits they are getting from the insurance.
Generally from the above chart we can say that return from the any
insurance company is less than the market return as the main objective of the
insurance is to reduce the risk of the investor. In other words we can say that
insurance gives many other benefits to the investors.
QUESTION 10
Is ICICI Prudential returns more than other insurance companies?
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2
Yes 34
No 16
ICICI returns more than other

insurance
32%
Yes
No
68%
ANALYSIS
From the above chart we can see that 68% investors say that ICICI
Prudential returns are more than other insurance companies. while on the other hand
32% of the investors say that ICICI Prudential returns is less than the other insurance
companies.
By analyzing the data, at present ICICI Prudential is holding the 1st

position in the Private insurance sector. ICICI Prudential is considered after the LIC.
So because of entry of the private companies into the insurance sector now LIC losing
its market share day by day.
FINDINGS
 Generally people more believe in the LIC.
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 Investor’s believe LIC as one of the safest investment option.
 Investors have strong faith in banks and in post office schemes and
government security.
 Investors expect high safety, handsome returns and the full guarantee of their
investment.
 By investing in the insurance sector people are generally moderately satisfied

with the provided returns.
 Generally People are paying Rs. 15000 Rs per year as a premium.
 People also believe that returns of ICICI are more than other insurance
companies.
 One of the important finding of the survey is that people expect ICICI
Prudential to come up with a plan with principal amount of Rs. 10,000/- . So
that they can afford the premium to be paid.
SUGGESTIONS
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2
There are some of the things that I feel during my training period that
ICICI Prudential should improve.
1. There should be the transparency when you are explaining to the customer about
the policy. Many persons are not explaining the truth or hide the thing which
should be discussed.
2. There are many other ways of marketing the products but according to my point
of view they are more concentrating on the telephonic talk. Every time persons are
talking on telephones.
3. When there is a presentation they should serve the people and offer them a glass
of water. So that the people who came they feel free.
4. ICICI Prudential should give more advertise on the Television or through any
other media.
So above are the Important suggestions which I have observed during my

training period.
85
2
BIBLIOGRAPHY
86
2
BOOKS
1. Pathak Bharati V., Indian Financial Systema,Published by Pearson

Education(Singapore) Pte. Ltd., Indian Branch, 482 F.I.E. Patparganj,
Delhi.
2. Kothari C. R., Research Methodology, New Age international
publishers,New Delhi, Second edition
WEBSITES
 www.iciciprulife.com
 www.irda.com
 www.insuranceindia.com
 www.assureindia.com
 www.knowledgedigest.com
 www.icicionline.com
 www.irdaindia.com
 www.bimaonline.com
 www.indiainfoline.com
 www.moneycontrol.com
 www.valueresearch.com
 www.indiatimes.com
87
2
QUESTIONNAIRE
SURVEY ON INVESTOR’S APPROACH TOWARDS RETURN OF ICICI
PRUDENTIAL LIFE INSURANCE COMPANY
88
2
Personal Details :
Name :____________________________________________________
Address :__________________________________________________
__________________________________________________
Phone number :_____________________________________________
Education :________________________________________________
Occupation : Corporate Employees ____________________
Business men___________________________
Age :_____________________________________________________
Annual Income : Less than 100,000 ____________
100,000 to 299,999 ____________
300,000 to 499,999 ____________
More than 500,000 ____________
No. of Children :_____________________________________________
No. of Dependence :__________________________________________
1. Are you Investing?
Yes ___________No_____________
2. If Yes, Where are you investing the money?
Bank Fixed deposit ______________
89
2
Stock Market ______________
Post Office ______________
Government Security _____________
Mutual Fund _____________
PPF _____________
Others Like Gold, Land and building _____________
3. Do you have any insurance cover?
Yes______________No____________
4. If Yes, of which Company?
LIC & ICICI Prudential ______________
ICICI & HDFC std. life ______________
5. How much premium are you paying annually?
Rs._______________
6. Approximate How much return are getting on your Insurance cover

from
ICICI Prudential?
4 to 6%____________ 6 to 8%________________
8 to 10%___________ More than 10%__________
7. According to you does the return on Insurance cover exceeds cost?
Yes___________No___________
9. What do you feel about return?
Extremely Satisfied _____________
Highly Satisfied _____________
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2
Moderately Satisfied _____________
Satisfied _____________
Not Satisfied ____________
10. Which factor do you consider while investing in Life Insurance?
Risk & Return _____________
Risk & Tax benefit _____________
Liquidity & Return _____________
Tax benefit _____________
11. What do you think, Is ICICI Prudential moving along with Market
return?
Yes_____________No_____________
12. As per your opinion, Is ICICI Prudential returns more than other
insurance
companies?
Yes_____________No_____________
Suggestions from your side
__________________________________________________________________
__________________________________________________________________
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2
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A

I, Megha K. Bakhai, studying in MBA (IV Sem.) of Shree Leuva Patel

This project is the culmination of a study into the wide gamut of

I begin by thanking my Project Guide and my Guru, Mr. Madhav

My parents who have always stood by me as solid as a rock; it is their

Dr. Vijay Pithadia

who have always been my guiding lights .

SHREE AMRELI JILLA LEUVA PATEL CHARITABLE

Subject : MBA Final Training Project Report

I am recommending the Final Training Project Report

Date :- Thanking You,

Place :- Amreli Yours faithfully,

SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST –

Subject : MBA Final Training Project Report

I am recommending the Final Training Project Report

Date :- Thanking You,

Place :- Amreli Yours faithfully,

SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST –

This is to certify that ________________________________ The student of

Guide’s Name & Sign.

Sr. Particulars Page

Due to advancement and growth in population has simultaneously

Needs are generally classified into protection needs and investment

In Indian insurance sector was totally reserved for public sector

The policies floated by the government insurance companies where

One of the major challenge for all private companies is to develop a

 Population : 1.3 Billion

 Economy : 5th largest in the world in terms of purchasing power parity

 Premium as a percentage of GDP :1.77 %

 Saving rate : Around 30% of GDP

 Estimated middle class population : 300 Million

 Insured population : 70 million only

 Estimated business (2008) : $6.6 Billion

REASONS FOR SELECTING AN INSURANCE SECTOR

Life Insurance Sector acts as a backbone of any economy. This

The insurance sector needs a great deal of financial planning,

Insurance is not necessarily an investment from which one expects

“Insurance is a contract between two parties whereby one party

“Insurance is a protection against financial loss arising on the

For example, in a Life Policy, by paying a premium to the Insurer, the

Similarly, in a car insurance, in the event of the car meeting with an

Insurance is a 'risk transfer mechanism' - it transfers the financial

In ancient Rome, associations had a form of insurance for their

Insurance also existed in 17th-century England, which was then one of

Insurance in the modern form originated in the Mediterranean during

The oldest and the earliest records of marine policy relates to a

Fire insurance has its origin in Germany where it was introduced in

Due to the increasing demands of the time, different forms of insurance

Insurance regulation formally began in India with the passing of the

The Government of India in 1956, brought together over 240 private

The concept of insurance is believed to have emerged almost 4500

1957: General insurance Council, a wing of the insurance Association of India,

Prerequisites for Entering into Insurance

Life insurance is one of the important options for the investment

The prerequisites for entering into the insurance sectors may

 Minimum Capital Requirements

The private sector is allowed to enter insurance sector. The

The promoters’ holding in private insurance company should

No person other than the promoters should be allowed to hold more

 Entry for Foreign Players

If and when entry of foreign insurance companies is

 Equity Participation for Joint Venture

It is proposed that in the private insurance joint venture,

 Minimum Rural Business