Professional Documents
Culture Documents
DEOGIRI COLLEGE
AURANGABAD.
PROJECT REPORT
ON
OF
OF
Last but not the least I would like to thank my parents, friends , Colleagues
and the staff of ICICI Prudential Life Insurance Company Ltd.
Aurangabad, who directly or indirectly help me during the course of project
without which project would have been a Herculean task.
Gopal B.Chavan
Date: 5Th may 2009
This is to certify that Mr. Chavan Gopal Bhikusing has worked with
Bharti Airtel Company Ltd., Aurangabad On project assignment 15th
April to 30th April 2009.
Titto david
(Unit Manager)
Sr.
No.
INTRODUCTION
1.1 CONCEPT SELLING
Basically concept selling as same as any tangible product, but only different is that product
is service and not tangible and we have to sell the concept. IN ICICI Prudential, concept
making the people aware of benefits they get from the company while working for it and
also making them known about the products i.e. Insurance Plans in the portfolio of the
growth that is taking lace in the insurance industry. Also the job was challenging as I was
getting an opportunity to work with a leader in the industry, this will provide a platform to
company, in more precise words it is the expansion of the company the new financial
This study will help the company in being known the mind set of the people to
become a financial advisor, as well as the constraints while joining the company as a
financial advisor.
1.1.3 Learning from project:
I learnt how the insurance company works, what are the channels of distribution and
Company.
Services from major part of day today life. Today services sector is the fastest growing
sector in almost every countries economy. Services are the intangible product which are
attached to either the provider that is producer or the service receiver i.e. the customer who
1.2.2 DEFINSTION:
“Any act or performance that one party can offer to another that is essentially intangible
and does not result in ownership of any thing. Its production any or may not be tied top a
physical product.”
“Activities, Benefits, or Satisfaction, which are offered for sale and provided in
◙ Inconsistency: The quality of service can differ from one service provider to another
service provider. Also may form one service encounter to another even for the same service
provider.
◙ PERSONAL ABILITY: Services are not the physical objects therefore can’t be stored.
◙ OWENERSHIP: Buying service does not result into ownership of anything.
simultaneous.
◙ NATURE OF DEMAND: The demand for the service in the market is always
fluctuating.
2. Structure.
3. System.
4. Styles.
5. Staff.
6. Skills.
7. Shared values.
and agencies involve in the process of making the product or services available to
customers. They are the intermediaries and also known as the middleman. Producers of
services also need to think about the channels of distribution, which can make their
inseparability, etc. Therefore mostly the direct channel i.e. zero level is used in this case
the provider directly sales his services to customers. However some service provider makes
take help of the agents who can provide information of the customers, book the order and
collect the payment on behalf of the service providers. In any casa channel length does not
exceed one level. Some big and reputed service provider train the individuals to perform
service and franchise their services e.g. Employment agencies, travel agencies etc.
EXAMPLES:
1. Insurance:-
India is not recognized as a first emerging market for a insurance. The Indian
the GDP. With the passing or IRDA act in 2000 the insurance market in India has been
open to privet sector. As a result as many as 34 insurance companies entered the market;
in collaboration with foreign companies by end of 2002-2003 the market has now become
2. Transport:-
Heavy investments are made in means of transport like railways, waterways and
airways. There is need to develop infrastructures, modernize buses and train, aircrafts,
ships, introduces professional management improvement safety and security measure to
make this sector progressive.
3. Telecommunication:-
In spite of significant growth in telecommunication sector in the recent past, the
teledensity in India was abysmally low compared to other countries the teledensity in
India was only 1.89 by the end of 2002. Telecommunication has tremendous growth
potential. The rapid growth in cellular, radio paging, value added services, internet and
global mobile communication by satellite services, besides basic telephone services, is an
indicator of the bright future of sector.
4. Software:-
Computer software is the thrust area in growth plan of India economy. The
focus is to develop the industry for export as well as for domestic needs. Thus
this industry is having bright future.
5. Electricity:-
The government of India has taken up mission 2012 with an object of providing
power for all. A comprehensive plan has been developed to address all the problem’s
being confronted by sector. With these initiatives being taken for the growth of the sector,
we can be hopeful of better power generation.
6. Postal services:-
The department of posts is adapting itself to the hanging markets dimension in
spite of the financial impediments. Competition from courier and other services
companies is becoming more intense day by day. However, the department has no parallel
challenge in terms its huge network con connecting every part of India.
7. Tourism:-
Tourism is dynamic field and is subject to constant changes cause by the consumers as
well as social treads. One of the reasons identified for the slow growth of sector in India is
the lack of professionalism in the marketing tourism services. Hence strategy approach in
marketing of truism services is necessary to achieve good results.
8. Banking
Indian banks have a gigantic task of striking of appropriate balance between banking
operations of international standard and commitment and social welfare there is a need to
reset social .economy objective in the larger interest of the nation by taking into
consideration factors such as several competitions customers sophistication business
diversification product innovation asset and liability mismatch increased business risk,
NPA menace, capital restructure, cyber/e, banking-commerce and universal bankin
9. Healthcare:-
The entry of the corporate sector has brought in dynamic shift in healthcare services.
Having an assured growth in demand due to the increasing population, rise in the
population levels, emergence of communicable diseases, epidemics and falling living
conditions, and the health care sector has prospects of high level growth.
10. Education:-
The liberal financing by banks and other financial instructions, further facilities the
growth of this sector. In spite of several impediments such as school drops out’s,
infrastructure constraints quality variations lack of proper vision, financial problems for
public institution and universities, the sector is set to reach new heights each year.
1.4. INSURANCE
In this age of uncertainties nothing can be called as safe, a small accident can end our life
business home vehicle therefore it is necessary to insure the things including our life so that
if incident occurs the loss can be reimbursed .insurance is a promised given by one to
another where by the promissory undertakes to pay a sum of money to the promise on the
happening of the event insured against.
Types of insurance:
Life insurance is promise to perform in future when the obligation is met i.e. the insured
event takes place ,the money ,whose presence can be felt replaces the promise his helps the
insured person or in case of his death his dependences will get the assured amount of
money with which they can obtain the necessities of life.
Life insurance is a personalize service oriented industry, therefore providing the service
that should match the needs and wants of the customer should be a basic objective of life
insurance company. The marketing approach in relation to life insurance involves
following four steps.
1. Research to determine customer’s insecurity.
2. Designing new policies or innovate old ones.
3. Market services to the customer for whom they where researched and designed at
profit.
4. In doing so satisfy the customer’s needs.
Identify the customer’s
future needs
Determine the
premium for each plan
Policy servicing developed
Opening of
branches, Personal selling
appointing agents through agents;
and development Advertising
officers
TYES OF AGENT:
1. China.
2. Hong Kong
3. India.
4. Japan.
5. Korea
6. Malaysia.
7. Philippines.
8. Singapore.
9. Taiwan.
10.Indonesia.
11.U.K.
ICICI Prudential was registered on Nov. 24, 2000. with registration No. 105.
Board Of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from financial industry both from India and abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalana Morparia
Mrs. Chanda Kochhar
Mr. H T Hong
Mr. M.P. Modi
Mr. R Narayanan
Mr. Keki Dadiseth
Ms.Shikha Sharma, M.D.
Mr.N.S. Kannan, Executive Director
Management Team
• Lifeguard is a protection plan, which offers life insurance covers at very low cost.
Itis available in 3 options: Level term assurance, Level term assurance with return of
premium an single premium.
• Home Assure is a mortgage reducing term assurance plan designed specially to help
customers cover home loans in a single and cost effective manner.
CHILD PLANS
• Educational insurance under the Smart Kid brand provides guaranteed educational
benefits to a child along with life insurance cover for parent who purchases the
policy. The designed to provide money at important millstones in the child’s life.
Smart Kid plans are also available in Unit-linked form, both single premium and
regular premium.
RETIRMANT SOLUCTION
• Forever life is a traditional retirement product that offers guaranteed returns for the
first 4 years and then declares bonuses annually.
• Life Super Pension is a single premium unit linked pension plan.
HEALTH SOLUCTION
• Health Assure and Health Assure Plan : Health assure is regular premium plan
which provide long term cover against 6 critical illnesses by providing policyholder
with financial assistance, Irrespective of the actual medical expenses. Health Assure
Plus offers the added advantages of equivalent Life Insurance Cover.
• Cancer Care: is a regular premium plan that pays cash benefits on diagnosis as well
as at different stages in the treatment of various cancer conditions.
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 of disability benefit; if death occurs as the result of an accident during the
term of the policy, the beneficiary receives an additional amount equal to the rider
sum assured under the policy .if the death occurs while traveling in an authorized
mass transport vehicle. The beneficiary will be entitled to twice the sum assured as
additional benefit.
• Critical illness benefit: protects the insured against financial loss in the event of
9specified 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 the life assured. It is available on smart
kid and cash plus
• Waiver of premium: in case of total and permanent disability due to an accident, the
future premiums continue to be paid by the company till the time of maturity. This
rider is available with life time super, life time super pension and cash plus.
► VISION:
To make ICICI pru the dominant life and pension layer built on trust by world class
people and service.
This we hope to achieve by;
1. Understanding the needs of the customer and offering them superior products and
services.
2. Leveraging technology to service the customer quickly, efficiently and conveniently.
3. Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to policyholders.
4. Providing and enabling environment to faster growth and learning for our employees.
5. Building transparency in all our dealings.
► VALUES
The success of the company is to be achieved in its unflinching commitment to 5 core
values.
1. Integrity.
2. Customer first.
3. Boundary less.
4. Ownership.
5. Passion.
6. Each of the above values described what the company stands for, the qualities of our
► ACHIVEMENTS:
1. The Aurangabad branch office stood 8th, in terms of its business achievements,
Assistant Sales
Channel Development
Manager
Manager
Agency Manager
Unit Manager
Assistant Unit
Manager
INDUSTRY PROFILE
3.1 INSURANCE
In today’s era everything is too uncertain. A small accident can put to end of our vehicles,
business, home or perhaps a life too. So apart from saving money and investing into
different ways insurance should from a major part of our financial planning. Insurance is
nothing but, a promise to perform in future. It is a guarantee giving by one to another where
by the former undertakes to pay a sum of money to the latter on the happening of the event
insured against.
Life insurance can be termed as a device or a plan of compensating a financial loss over a
large number of people, which is too heavy to conveniently born by an individual. It seeks
to reduce the financial uncertainties which can arise from an old age or death of person.
Basically the insurance was started by the Greeks and Romans, were in case of a death of a
member the cost of burial was contributed by the other members of the community. This
was an early concept of Insurance.
In seventeenth century, Tontine Annuity system came into existence where as associations
of individuals were formed without any consideration of age. A fund was created in which
each member contributed equal sum of money this fund was invested and at the end of each
year the obtained interest was equally divided among the survived. The person who
survived to the last received the interest as well as the principle amount.
The first insurance company was formed in 1759 in Philidelphi, North America. Since then
over the past three centuries numbers of insurance companies are formed. And today
insurance is the fastest growing industry in the service sector because people have accepted
insurance as a protection coupled with investment.
3.4 IRDA
IRDA refers to Insurance Regulatory Development Authority. It is formed to
regulate and develop the insurance sector. It keeps check on the activities of the
various Life Insurance companies. All these companies are bound to follow the
rules and regulation laid down by IRDA.
3.4.1. MISSION:
To protect the interests of the policy holders, to regulate to promote and ensure
orderly growth of the insurance industry and for matters connected there with or
incidental there to.
3.4.2 DUTIES, POWERS & FUNCTIONS OF IRDA
Section 14 of IRDA act, 1999 lays down the duties, powers and functions of
IRDA.
1) Subject to the provisions to 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.
2) Without prejudice to the generality of the provisions contained in the sub-
section (i) The power and function 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
interests, 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 of insurance intermediaries and agents;
d. Specifying the code of conduct for surveyors and loss assessors;
e. Promoting efficiency 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 purpose of this
act;
h. Calling for information form, undertaking inspection of, conducting
enquiries and investigations including audit of the insurer,
intermediaries, insurance intermediaries and other organizations
connected with the insurance business;
i. Control and regulations of the rates ,advantages, terms and
conditions the may be offered by insurer in respect of general
insurance business not so control and regulated by the tariff advisory
committee under section 64U of the insurance act,1938 (4of1938);
j. Specifying the form and manner in which books of accounts shall be
maintained and statement of account shall be rendered by insurers
and other insurance intermediaries;
k. Regulating investment of funds by insurance companies;
l. Regulating maintenance of margin of solvency;
m.Adjudication of disputed between insures and intermediaries of
insurance intermediaries;
n. Supervising the functioning of the tariff advisory committee;
o. Specifying the percentage of the premium income of the insurer to
finance schemes for promoting and regulating professional
organizations referred to in clause(f);
p. Specifying the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural or
social sector; and
q. Exercising such other powers as may be prescribed.
3.4.3 QUALIFCTION TO BE AN AGENT
IRDA has laid down qualification to be an agent for any of the insurance
company. This is applicable to all insurance companies. To become an agent
(financial advisor) a person should possess following qualifications; If the. In
other places the applicant should satisfy the minimum educational qualification
of 10th std. or equivalent.
1. He has to complete his 100hrs of practical training in Life Insurance
business, that to from approved institute, where the applicant is seeking
the license for the first to work as an agent.
2. He has to pass the pre – requisite test which is conducted by the insurance
institute of India or any other approved body.
3. He required knowledge of solicit and procure insurance business.
4. He should be capable of providing necessary services to the policy holder.
5. Applicant is living in a resident where the population is 5.000 or above as
per the last census in that case. He must have qualified his 10+2 or
equivalent.
RESEARCH
METHODOLOGY
4.1 MARKETING RESEARCH
DEFINATION
• Aurangpura.
• Cannought place.
• NiralaBazar.
• Jyoti Nagar.
• Osmanpura.
• Cidco.
The scope of project was all about recruiting the financial advisors for the company on
commission basis. I was suppose to generate the leads then meet those people, telling them
the concept of financial advisor and convincing them to join the company and finally get
the undertaking forms filled and thus closing the leads.
In random sampling methods, the sample units are selected at random. Random
sampling follows a precisely specified system where there is no scope for biased selection
of sample unit’s take place by sheer chance of being selected.
SAMPLE PLAN
This is called for three decisions:-
2. Sample size: - the refers to the number of items that is to be selected from the universe
to constitute a sample-
100 people
UNIVERSE:- Universe sampling accounts for no. of sample size upon which project data
has been collected here to gather that data my sample size was 100 which is universe
sample size.
1. Questionnaires
2. Personal Interviews.
• Simplicity: the Questionnaire should very simple to understand that is the language
used should be easy and understandable. So that the person who is about to fill it can
give appropriate answers to the concern questions.
• Briefness: The Questionnaires should very brief that is possibly low number of
questions should be asked, so person will not fill bored.
• Clearness: Questions should be cleared and be possibly open ended to save time of
the people filling them.
4.9 PERSONAL INTERVIEWS
Personal interview is mostly commonly used method of data collection. Two purposive
communications between interviewer (researcher) and the respondent (subject) aimed at
obtaining and recording information pertinent to the subject matter of study. The
interviewer resents oral, verbal and written stimuli and receives oral resonances.
Interview may be used as the main method of data collection, or may be used as a
supplement to observation experiments or other technique.
People are more willing to speak rather than write. It also provides an opportunity to note
the body language of the respondent this is called as Personal Interview.
LIMITATIONS
1. Since the duration of the project training was less it was difficult to study
following aspects in depth.
This question was asked to person I order to know whether he have some knowledge about
the insurance product. Following was outcome observed after asking this question 200
people.
TABLE 5.1
LIC 80 80 %
ICICI 30 30 %
BAJAJ 20 20 %
HDFC 15 15 %
OHERS 5 5%
NO POLICY 10 10
Graphical Representation:
Chart 5.1
80 80
70
60
50
40
30
30
20 20
15
10
10 5
0
LIC ICICI BAJAJ HDFC OHER NO POLICY
Observation: It is being observed that 80 % of the sample populations are having their
insurance policy in LIC as compared to private life insurance companies.
a) Yes [ ] b) No [ ]
This question asked to make whether the targeted person can become our prospect or not.
TABLE 5.2
Yes 20 20%
No 80 80%
Graphical Representation:
Chart 5.2
20%
Yes
No
80%
Observation: this shows very low sample population is aware of this business of an
insurance agent and a very few of them are prepared to be an insurance agent.
ii) If ‘Yes’ which of following company you are working for?
a)LIC [ ] b) ICICI [ ] c) BAJAJ [ ] d) HDFC [ ] e) OTHERS
The above question helped in getting the information about the brand awareness
of the different insurance companies present in the market and also people’s
mindset about the companies.
Table 5.3
Graphical Representation:
Chart 5.3
10% 0%
10%
LIC
ICICI
BAJAJ
HDFC
20% 60% OTHERS
Observation: The graph indicates that large portion i.e. 60% is working for LIC
and at second number ICICI PRUDENTIAL with 20% is there as BAJAJ and
HDFC (with 10%) are having low number of people working for them.
3) Do you have any sales related experience?
a) Yes [ ] b) No [ ]
This question is asked to know about the sales related experience of the person
so that his communication skills and knowledge about selling anything can be
judged.
Table 5.4
Yes 60 60 %
No 40 40 %
Graphical Representation:
Chart 5.4
40%
Yes
No
60%
Graphical Representation:
Chart 5.5
30%
Yes
No
70%
Observation: It is being observed that 30% of the total sample population said
that they would like to know about the company and it’s Advisor.
5. If ‘Yes’ how would you like to be contacted through?
Graphical Representation:
Chart 5.6
10%
Personal Visit
Telephone
90%
This question helps in knowing the level of knowledge and understanding of the person.
TABLE 5.7
10th Passed 5 5%
10+2 Passed 35 35 %
Graduation 50 50%
Post Graduation 10 10 %
Graphical Representation:
Chart 5.7
35%
10thPassed
10+2 Passed
Graduation
Post Graduate
50%
5%
10%
The objective behind this question is to determine the interest of the person in
doing the business for the company and if is joins company how much time he
will be able to give for the business. The come was:-
Table 5.8
Student 20 20 %
House wife 25 25 %
TOTAL 100 100 %
Graphical Representation:
Chart 5.8
25%
Self emloye
Salaried
Student
50% House Wife
20%
5%
3. Rejections:
Even after people are willing to join the company and do certain rejections come due to
different reasons but the main reason was time constraint as people are too busy that they
can not afford time for 100 hrs training and to certain extend money is a problem especially
for the students who wanted to join the company as a financial advisor.
a) Rejection due to time constraint
89 % rejections were there due to time constraint. People who are self employed are
busy enough with their work. So they do not have sufficient time to spare for training
process. Even the housewives and the jobbers are busy with their work so they find it
difficult to manage to undergo the training.
To register for being a Financial advisor applicants need to pay a sum of Rs.1000/-
some people find it difficult to pay at single time. Also people have a mindset that if
they fail in getting the customers these entire sums have to paid will be waste. Nearly
11 % of the rejections are due to money constraint.
Table 5.9:
Graphical Reprentiontation:
Chart 5.9
89%
11%
CONCLUSION
BIBLIOGRAPHY
Books:
1. Service Marketing- Valeri A. Zeithaml & Mary Bitner 2nd edition –
Publication House.
3. Service Marketing-K. Rama Mohan Rao- 1st edition-Indian Print-
Peatson Education
4. Channel Management & retail Marketing- Meenal Dhotre - 1st edition-
References:-
Websites:
1. www.irdaindia.org
2. www.iciciprulife.com
ANNEXURE
QUESTIONNARIES
ICICI PRUDENTIAL
Name:
Age:
Residential Address:
City:
Contract No:
Date:
a) Yes [ ] b) No [ ]
a) Yes [ ] b) No [ ]
4) Are you interested in being / getting more information about financial advisor?
a) Yes [ ] b) No [ ]
1. Educational Qualification:
2.Current Occupation: