Icici Bank- project report
summer training report with icici bank...
“A Study on Marketing Strategy adopted by ICICI Bank with ICICI Prudential in comparison to Reliance Life and ING VYSYA based on promotional tools”
MR. GURPREET SINGH
LECTURER IN IBMT
(MBA – III SEM.) ROLL NO. 1036 ACEDAMIC YEAR 2008-10
INSTITUTE OF BUSINESS MANAGEMENT AND TECHNOLOGY YAMUNA NAGAR.
I hereby declare that this report work entitled “A Study on Marketing Strategy Adopted by ICICI Prudential in Comparison to Reliance Life And ING VYSYA Based On Promotional Tools ” is my work, carried out under the guidance of my Faculty guide Mr. Gurpreet Singh. This project neither full nor in part has ever been submitted for award of any other degree of either this university or any other university.
PRIYA KAUSHIK MBA (FINAL)
ACKNOWLEDGEMENT I thank to IBMT College for giving me an opportunity to undertake my Management thesis and for giving me knowledge in the field of marketing during my project report. I express my sincere and humble gratitude to Ms. Poonam Sethi for being my report and Industry guide and educating me to make this project a great success. I would like to thanks Mr.Gurpreet Singh for her valuable guidance and support in completion of project. I would express my sincere thanks to all the staff members of ICICI Bank and ICICI Prudential Life Insurance Company. Without their support, this report would not have been a success. Last but not the least I would like to thank those person whose encouragement and ideas enriched my report.
“Marketing Strategy adopted by ICICI Bank with ICICI Prudential in comparison to Reliance Life and ING VYSYA based on promotional tools”
• In project
I want to find the competent companies of ICICI
Prudential • Services of others companies • According to the data collected and analysis I come to know that LIC have more customer acquisition as comparative ICICI Prudential • To find out the entities of respondents and their age of business and turnover they have because on basis of this find out that how that customer is good for ICICI Prudential • Most of the respondents gave preference LIC because they have faith on it • Most of people have already attached with LIC
Theoretical knowledge without practical knowledge is pf little value. In order to achieve the concrete and positive result practical knowledge must be their. To fulfill these needs, the management course has a provision for the practical training program. I shall be thankful to the university to provide such opportunity so that the students can have the actual feeling of industrial life.
I have done my Project Report in ICICI bank with ICICI Prudential Life. I got ample of opportunities to view overall working and processing of Insurance in ICICI Prudential Life Insurance.
In the coming pages an attempt has been made to present a comprehensive report concerning different aspects.
CONTENTS 1) INTRODUCTION TO THE INDUSTRY, ORGANIZATION, AREA 2) COMPANY PROFILE 3) OBJECTIVES OF THE STUDY 4) LITERATURE REVIEW 5) RESEARCH METHODOLOGY a) SAMPLING AND SAMPLING DESIGN b) DATA COLLECTION 6) ANALYSIS OF DATA 7) RESULTS AND FINDINGS 8) RECOMMENDATIONS AND SUGGESTIONS 9) CONCLUSION 10) BIBLIOGRAPHY 11) ANNEXURE
INTRODUCTION TO THE INDUSTRY
INSURANCE – AN INTRODUCTION Insurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term "risk" is used to describe the possibility of adverse results flowing from any occurrence or the accidental happenings, which produce a monetary loss. Insurance is a pool in which a large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. The sharing of risk among large groups of people is the basis of insurance. The losses of an individual are distributed over a group of individuals.
Definitions General definition In the words of John Magee, “Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals.”
Fundamental definition In the words of D.S. Hansell, “Insurance accumulated contributions of all parties participating in the scheme.”
Contractual definition In the words of justice Tindall, “Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.”
Characteristics of insurance ♦ Sharing of risks ♦ Cooperative device ♦ Payment on happening of a special event ♦ The amount of payment depends on the nature of losses incurred. ♦ The success of insurance business depends on the large number of people insured against similar risk. ♦ Insurance is a plan, which spreads the risk and losses of few people among a large number of people. ♦ The insurance is a plan in which the insured transfers his risk on the insurer. ♦ Insurance is a legal contract which is based upon certain principles of insurance which includes utmost good faith, insurable interest, contribution, indemnity, causes proxima, subrogation, etc.
Functions of insurance Primary functions 1. Provide protection - Insurance cannot check the happening of the risk, but can
provide for the losses of risk. 2. Collective bearing of risk - Insurance is a device to share the financial losses of
few among many others. 3. Assessment of risk - Insurance determines the probable volume of risk by
evaluating various factors that give rise to risk. 4. Provide certainty - Insurance is a device, which helps to change from uncertainty
Secondary functions 1. Prevention of losses- Insurance cautions businessman and individuals to adopt
suitable device to prevent unfortunate consequences of risk by observing safety instructions. 2. Small capital to cover large risks - Insurance relives the businessman from
security investment, by paying small amount of insurance against larger risks and uncertainy.
FUNDAMENTALS OF INSURANCE \The fundamental Principles of the Insurance are as follows:
♦ Insurable Interest: Insurable interest means the legal right to insure. Insurable Interest is a must and only then the insurance contract is enforceable at law. This principle differentiates a Contract of insurance from wager. Lack of insurable interest renders the contract null and void. For Insurable Interest to exist there must be Property, Rights, Interest, Life or Liability; this must be insured and the Insured should have a legally recognizable relationship thereto. The Insured should be benefited by the safety of the property or is prejudiced by its loss. Insurable Interest may arise in the following manner:
1. Ownership: Absolute ownership entitles the owner to insure the property. This is the commonest method whereby Insurable Interest arises. 2. Partial Interest is also insurable e.g. a mortgagee. A creditor can also insure the life of his debtor but only to the extent of his loan. 3. Administrators and executors i.e. officials appointed by a court of law to take care of a property may also insure the property. 4. Relationship does not automatically constitute insurable interest. The only relationship recognized by law for this purpose is the one between a husband and wife.
5. An employer can insure his employee under a Personal Accident Policy as he has insurable interest in them. ♦ Proximate cause: Generally, the claims are payable under insurance policies if they arise out of events which are proximately caused by the insured perils. In other words, the proximate cause of the event has to be peril covered by the policy, so as to constitute a valid claim. ♦ Contribution: An insured may have several insurance on the same subject matter. If he recovers his loss under all these insurance, he will obviously make a profit out of loss. This will be an infringement of the principle of indemnity. Common Law has, therefore, evolved the doctrine of contribution whereby the insured is prevented from recovering more than his loss, despite his having several insurance on the subject matter. ♦ Subrogation: The principle of indemnity seeks to prevent the insured from making profit out of loss. However, it may so happen that that the insured may recover his loss under his policy and he may also have rights against third parties. If, after the insurance claim is settled, the insured is allowed to enforce his rights against third parties and to retain whatever damages he receives from them, he will certainly make a profit and the principle of indemnity will be infringed. ♦ Utmost Good Faith: In all General Insurance contracts we know that a property or interest or liability or life is offered for insurance and the insured has to take decisions on the acceptance of the proposal. If he decides to accept the proposal a premium commensurate with the risk has to be charged. To enable him to take necessary decision in this regard, the insurer must have certain facts about the risk offered. These facts influence the judgment of the insurer in deciding about the acceptance or otherwise of the risk and the rate of premium to be charged, if accepted. Such facts are known as material facts.
DEVELOPMENT OF INSURANCE IN INDIA A thriving insurance sector is of vital importance to every modern economy. First because it encourages the savings habit, second because it provides a safety net to rural and urban enterprises and productive individuals. And perhaps most importantly it generates long-term investible funds for infrastructure building. The nature of the insurance business is such that the cash inflow of insurance companies is constant while the payout is deferred and contingency related. This characteristic of their business makes insurance companies the biggest investors in longgestation infrastructure development projects in all developed and aspiring nations. This is the most compelling reason why private sector (and foreign) companies, which will spread the insurance habit in the societal and consumer interest, are urgently required in this vital sector of the economy.
Per capita insurance premium in India is a mere US$ 6, one of the lowest in the world. In South Korea, the corresponding figure is US$1,338, in USA it is $ 2250 and in UK it is $1589.
Insurance premium in India accounts for a mere 2 per cent of GDP compared to the world average of 7.8 per cent and G-7 average of 9.2 per cent.
Insurance premium as a percentage of savings is barely 5.95 per cent in India compared to 52.5 per cent in the UK.
NEED FOR GLOBAL INTEGRATION
Recent economic liberalization started few years ago have started bringing in new investments from global giants and the government was hard pressed to facilitate global integration by lowering trade barriers for the free flow of technology, intellectual and financial capital. Additionally, reforms are essential if the Indian economy is to achieve and sustain a growth rate of 7 to 8 per cent per annum. Reaching a faster growth path also implies attracting foreign direct investment inflows of $ 10 Billion every year, up from the current level of $ 3 to $ 3.5 Billion. Thus liberalization of insurance creates an environment for the generation of long-term contractual funds for infrastructural investments.
PRIVATIZATION: START UP STRATEGY Potential private entrants therefore expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the
Critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This might seem a logical strategy from the point of view of new players. Start-up costs-such as those of setting up a conventional distribution network-are large and High end niches offer better returns. However, in the long run 'middle-market' offers the greatest potential as in terms of it is the second largest market in the world. This may still be an urban market but goes beyond the affluent segment.
CLASSIFICATION OF INSURANCE Life is full of uncertainty. Trials and tribulations abound in each and every aspect of life .No one can truly predict or even estimate what the future has in store for him. Life offers no guarantee by itself; expect the incidences of death and taxation. The lack of security present throughout life can be overcome partially through insurance. Insurance can never replace or repair a loss. But the monetary value offered by insurance helps in adjusting to new circumstances. Despite offering the innumerable options and immense scope insurance can be classified into four major categories. •
Insurance of a person
Insurance of property
Insurance of interest.
Insurance of liability.
Insurance of person Under the preview of this class of insurance the risk associated with human life in general can be covered up to the limit specified. The person can insure his or her life and his health against any unplanned contingencies. The event of his death his dependents will be reimbursed with the full amount that he was insured for. Or if the insured person meets with the accident or suffers from any illness that cripples him forever he will be compensated with complete sum assured. Any way he may not be able to lead a normal life again.
Insurance of property Everyone posses material value in the form of tangible assets. Assets can be in the form of the landed estate or a vehicle, share holdings or plane old paper money. Since tangible property has a physical shape or consistency it is subject to many risk ranging from fire allied perils to theft and property. An individual’s lifetime of hard work can be wiped out in a blink of an eye. But if a person judiciously invest in insurance for his property prior to any unexpected contingency the he will be suitably compensated for his loss as soon as the extend of damage is ascertained.
Insurance of interest Every individual has to discharge certain specific duties. Everyone is expected to maintain a standard of conduct but then it is an intrinsic part of human nature to err. None is infallible and no one will ever be. Owing to an occasional error or omission committed by us, our clients or customers might suffer a loss. In turn we might have to pay those damages for compensation out of our own personal resources. However, if our chosen professional qualifies for insurance of interest. Then our insurance policy will be more than sufficient in arranging the funds and court formalities that might ensue aftermath of legal libel.
Insurance of liability Every person has to regulate his actions and behavior so as not to cause injury or damage to other people and their property. Every one is personally liable for his or her action. If due to lack of control over his actions or prejudice behavior, a person incurs any liability then has to provide compensation out of his personnel resources. Liabilities, Legal, Civil or Criminal can have severe repercussions on social standing and prestige besides the financial status.
Insurance Regulatory and Development Authority (IRDA) ACT, 1999 Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority The Authority is a ten member team consisting of (a)
five whole-time members;
four part-time members,
(all appointed by the Government of India)
Duties, Powers and Functions of IRDA Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA: (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 (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 organizations connected with the insurance and reinsurance 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; ( I ) 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 regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); (j) 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; (k) Regulating investment of funds by insurance companies; (l) Adjudication of disputes between insurers and intermediaries or insurance intermediaries; (m) Supervising the functioning of the Tariff Advisory Committee; (n) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f);
INDIAN INSURANCE INDUSTRY Insurers Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:
Life Insurers Life Insurance Corporation of India (LIC)
General Insurers •
General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsure)
GIC had four subsidiary companies, namely (with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies. 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited
Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001) Insurance Industry in the year 2000-2001 had some new entrants in Life insurance as well as in General insurance, namely:
Life Insurers 1. ICICI Prudential Life Insurance 2. Max New York Life Insurance 3. HDFC Standard Life 4. Birla Sun Life 5. SBI Life Insurance 6. Kotak Old Mutual Life Insurance 7. Aviva Life Insurance 8. Reliance Life Insurance 9. Tata AIG Life 10. Met Life India Insurance
11. Bajaj Allianz Life Insurance 12. ING Vysya Life Insurance 13. Sahara Life Insurance
General Insurers 1. Royal Sundaram Alliance Insurance Company Limited 2. Reliance General Insurance Company Limited. 3. IFFCO Tokio General Insurance Co. Ltd 4. TATA AIG General Insurance Company Ltd. 5. Bajaj Allianz General Insurance Company Limited 6. ICICI Lombard General Insurance Company Limited. 7. Cholamandalam General Insurance Company Ltd. 8. Export Credit Guarantee Corporation Ltd. 9. Export Credit Guarantee Corporation Ltd.
INSURANCE BUSINESS Insurance business is divided into four classes: 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance. Life Insurers transact life insurance business; General Insurers transact the rest. No composites are permitted as per law. LEGISLATION (as on 1.4.2000): Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.
INSURANCE PRODUCTS (as on 1.4.2000) (for latest information get in touch with the current insurers – website information of insurers is provided at the web page for insurers):
Life Insurance Popular Products: Endowment Assurance (Participating) and Money Back (Participating). More than 80% of the life insurance business is from these products.
General Insurance Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products New products have been launched by life insurers. These include linked-products. For details, please visit the websites of life insurers.
COMPANY PROFILE ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank by market capitalisation and second largest overall in terms of assets. Bank has total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009.. The Bank also has a network of 1,449 branches and about 4,721 ATMs in India and presence in 18 countries, as well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India.. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the HiSAVE savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's current and savings account (CASA) ratio increased to 30% in 2008 from 25% in 2007. ICICI 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 capital stands at Rs.18.15 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period April- December 2006, the company garnered new business weighted premium of over of Rs.2, 302 crore and wrote over 1.1 million policies. The company has assets held to the tune of over Rs.13000 crore. 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 (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential’s ability to meet its obligations to customers at the time of maturity or claims. For the past six 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.
DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. As of December 31, 2006 it had commenced operations in over 360 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to Trivandrum in the south, and had over 175,000 advisors. The company has 18 bancassurance partners, having tie-ups with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, all regional rural banks sponsored by Bank of India, as well as some co-operative banks. It has also tied-up with NGO’s, MFIs and corporates for the distribution of rural policies.
PROMOTERS ICICI Bank ICICI Bank is India’s second largest bank and largest private sector bank with assets of Rs.2823.72 billion as on September 30, 2006. ICICI Bank provides a broad spectrum of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The bank services a growing customer base through a multichannel access network which includes over 635 branches and extension counters, 2325 ATMs, call centers and internet banking.
PRUDENTIAL Plc Established in London 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 21 million customers, policyholder and unitholders worldwide. 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 23 life and mutual fund operations in 12 countries- China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, The Philippines, Singapore, Taiwan, Thailand and Vietnam.
VISION To make ICICI Prudential the dominant life and Pensions player built on trust by world-class people and service. This can be achieved 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.
VALUES Every member of ICICI Prudential team is committed to 5 core values: - Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all they do, and have become the keystones of their success.
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. Barry Stowe Mrs. Kalpana Morparia Ms. Shikha Sharma, Managing Director Mr. N.S.Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director
PRODUCTS OF ICICI PRUDENTIAL 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 upto 4 riders, to create a customized solution for each policyholder.
SAVINGS & WEALTH CREATION PRODUCTS 1. Cash Bak 2. Save ‘n’ Protect 3. Life Time Super & Life Time Plus 4. Life Link Super 5. Premier Life Gold
CHILD PLANS Education Insurance under Smart kid
RETIREMENT SOLUTIONS 1. 2. 3. 4.
Forever Life Lifetime Super Pension LifeLink Super Pension Immediate Annuity
HEALTH SOLUTIONS 1. Health Assure and Health Assure Plus 2. Cancer Care 3. Diabetes Care
GROUP INSURANCE SOLUTIONS 1. Group Gratuity Plan 2. Group Superannuation Plan 3. Group Immediate Annuities 4. Group Term Plan
FLEXIBLE RIDER OPTIONS 1. Accident & Disability Benefit 2. Critical Illness Benefit 3. Income Benefit 4. Waiver of Premium
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporates.
BOARD OF DIRECTORS Chief Executive Officer - Mr. P Nandagopal Chief Financial Officer - Mr. Rajesh Bahl Chief Marketing Officer - Mr. Rohit Gaurav Mull Chief Operating Officer - Mr. K.V. Srinivasan Chief Investment Officer - Mr. R Rangarajan Appointed Actuary - Ms. Pournima Gupte Head-HR - Ms. Maneesha Thakur
INSURANCE PLANS OF RELIANCE LIFE •
Reliance automatic investment plan
Reliance money guarantee plan
Reliance endowment plan
Reliance special endowment plan
Reliance cash flow plan
Reliance child plan
Reliance term plan
Reliance whole life plan
Reliance market return plan
Reliance golden years plan
Reliance golden years plan value
Reliance golden years plan plus
Reliance simple term plan
Reliance special term plan
Reliance credit guardian plan
Reliance special credit guardian plan
Reliance connect 2 life plan
ING Vysya Life Insurance Company Limited (the Company) entered the private life insurance industry in India in September 2001, and in a span of 5 years has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor sales force. It has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4, 50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 crore.
The Company aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to add protection to life. The one thing we hold in highest esteem is 'life' itself. We believe in enhancing the very quality of life, in addition to safeguarding an individual's security. Our core values are therefore defined as Professional, Entrepreneurial, Trustworthy, Approachable and Caring. The Company’s portfolio offers products that cater to every financial requirement, at any life stage. We believe in continuously developing customer-driven products and services and value being accessible and responsive to the needs of our customers.
CORPORATE OBJECTIVE At ING Vysya Life, we strongly believe that as life is different at every stage, life insurance must offer flexibility and choice to go with that stage. We are fully prepared and committed to guide you on insurance products and services through our well-trained advisors, backed by competent marketing and customer services, in the best possible way. It is our aim to become one of the top private life insurance companies in India and to become a cornerstone of ING’s integrated financial services business in India.
MISSION “To set the standard in helping our customers manage their financial future”.
MANAGEMENT TEAM BOARD OF DIRECTORS Mr. Rajan Raheja : Chairman Mr. Kshitij Jain :
Managing Director & Chief Executive Officer
Mr. N.N. Joshi :
SENIOR MANAGEMENT TEAM Kshitij Jain : MD & CEO T K Uthappa : VP, Sales - Tied Agency Rahul Agarwal: VP - Customer Services Amit Gupta: VP & Head - Marketing
INSURANCE PLANS OF ING VYSYA •
Rewarding Life Investment Plan
Powering Life Investment Plan
ING Life Plus Plan
Platinum Life Investment Plan
New Future Perfect Retirement Plan
High Life Plus Plan
Best Years Retirement Plan
OBJECTIVES OF THE STUDY
OBJECTIVES OF THE STUDY
To know how to face the problem of corporate world.
To face original market situations and to gain real marketing experience.
To enhance the knowledge and skills by working in particular company.
To apply the theoretical knowledge in corporate sector.
To collect information of other life Insurance Companies.
To face the problem of corporate world and tackle them in polite way.
To educate the customers about facilities provided by ICICI Prudential.
To get suspect convinced and convert into Prospect.
The literature review includes the academic books, journals, internet access, magazines etc. •
ICFAI reader-October 2006 (Page no. 58-60) It guided me to know about the growth of the Insurance sector over the last few years.
“Gupta S.P. ”. The information regarding the statistical tools and their limitations in different fields the research is given in this section. This section explains why to use correlation and what are the situations in which correlation can be used, and what does correlation means.
Schaums:Statistical Methods- Sultan Chand Publication The information regarding the statistical tools and their limitations in different fields the research is given in this section. This section explains why to use trend analysis and what are the situations in which correlation can be used, and what does correlation means.
Beri G.C.- Marketing Research 3rd edition : This book helped in understanding the different research designs and analytical tools used here.
“Kothari C.R.” The information regarding the basics of research and research methodology , what are the different types of research designs, what is problem statement, what are the sources of data collection and what are the methods of data collection is given in this section
NaliniProna Tripathy:Insurance Theory & – Introduction of Insurance , their advantages, disadvantages and various types have been taken from it.
What’s the need of Life insurance, I read it from The Mc-Graw Hill Investors Desk Reference,Mc-Graw Hill Publications, Ellie Williams Clinton
RESEARCH METHODOLOGY Research is common refers to search for knowledge. It is the pursuit of truth with the help of study, observation, composition and experiment. Research methodology is a systematic way to solve the research problems. It helps in studying the various steps that are adopted by the researcher to study the research problems along with the logic behind the It describe mail what must be done, how will be done. What data will be needed and how the data will be analyzed.
Sample Design Sample size:
Source of data: Both primary and secondary data used Primary data: Filled questionnaires from 150 respondents Secondary data: Through internet.
Sampling Plan The following factors have to be decided with in the scope of the sampling plan.
Sampling Unit The unit refers to the definitions of the particular person who is to be survey.
Descriptive research includes surveys and fact-finding enquires of different kinds. The major purpose of descriptive research of the sate of affairs as it exits at present. In social science and business research, we quite often use the term Ex post facto research for descriptive research studies.
This refers to the procedure by which the respondents should be chosen. In order to obtain a representative sample, a probability sample of the population was drawn. Probability sampling can be of the following types. -
Simple random sample
Stratified random sample.
Cluster (area) sample.
In this case, simple random sampling was done.
FORMATION OF QUESTIONNAIRE Quite often the questionnaire is considered as the heart of a survey operation. Hence it should be carefully constructed. in the words of good and Hatt, "In general, the word questionnaire refers to a device for securing answers to questions by using a form which the respondent fills in himself." All the questions in a questionnaire are framed with a specific objective in mind and are placed in logical, sequential order. The questionnaire framed for the purpose of the study
consists of a limited number of questions placed in a logical order. The questions were framed keeping in mind the educational and social background of the companies dealers. The questions were both open and closed ended as well as multiple choices.
ANALYSIS OF DATA
1. ORGANISING THE DATA The data collected during data collection process are organized and presented in a comprehensible sequence to make them more meaningful.
2. PRESENTATION OF DATA After the data has been properly organized, it is ready for presentation. There are different modes of presentation like tables, charts etc. The main objectives of presentation are to put collected data into an easy readable form.
3. ANALYSIS OF DATA After organizing and presenting the data, the researchers then have to proceed towards conclusion by logical inferences. The raw data is then analyzed: •
By bringing raw data to measured data.
Summarizing the data.
4. INTERPRETATION Interpretation means to bring out meaning of data or to convert mere data into information. From the analysis of data the various conclusions are find out on the basis of logical inferences.
CLASSIFICATION OF DATA If refers to the process of arranging data into homogenous classes. Subsequent to the collection of data, the results were sorted out and arranged in different categories like Graph, Table etc.
1. Entity of business
Constitution Sole proprietorship Partnership Job Other
Data 43 28 57 22
Interpretation: The above data shows that out of 150 peoples most of the people are with the
job.43 peoples are with the sole proprietership, 28 peoples are with the partnership and 22 people are with others.
2. Time period of business Below 10 10-20 20-50 More than 50
78 27 43 2
Interpretation: The above data shows that out of 150 peoples the most of the peoples are with the below 10 then 20-50 after that 10-20 and the rest with more than 50.
3. Your Turnover Below 5 5-10 10-25 More than 25
112 31 6 1
Interpretation: The above data shows that out of 150 peoples the highest turnover is below 5 after that 5-10, than 10-25 and rest with more than 25.
4. Having Insurance Yes No
Interpretation: The above data shows that out of 150 peoples 89 peoples are having insurance and 61peoples are not having insurance.
5. Company of Insurance Company ICICI Prudential
Reliance Life ING Vysya Any Other
9 4 81
Interpretation: The above data shows that out of 150 peoples 56 with ICICI prudential, 9 with relinnce, 4 with ING Vysya, and 81 with any other.
Interpretation: The above data shows that 8 products are traditional and 48 products are ULIP.
7. If traditional then which product
Cash Bak Save ‘n’ Protect Smart Kid Any Other
2 1 3 2
Interpretation: The above data shows that out of 8 products 2 are cash bak 1 are save and protect 3 are smart kid and 2 are any other
8. If ULIP then which product Smart Kid
Life Time Super Life Time Super Pension Any Other
24 5 9
Interpretation: The above data shows that out of 48 products 10 with smart kid,24 with life time super, 5 with life time super pension and 9 with any other.
9. Growth of money Yes No Still waiting for the result Can’t say
10 24 5 9
Interpretation: The above data shows that 10 with yes, 24 with no, 5 with still waiting for result, 9 with cannot say
10. Tell to others Of Course Yes Depends on heir needs Never
33 20 3
Interpretation: The above data shows that 33 with yes, 20 with depends on heir needs and 3 with never.
Interpretation: The above data shows that out of 150 peoples 135 peoples are satisfied and 15 peoples are not satisfied.
LIMITATIONS OF THE STUDY
Shortage of time- The main limitation I come across is shortage of time I have short time to collect data and analyze the problem and come to the solution.
Primary data collected totally dependent on the respondents’ view - Data collected from respondents is totally their opinion and it may be biased in nature and may not represent the truth.
Since the study is wide in nature and can’t be taken for considerationThe study is big in nature and data collected is only from Chandigarh and Panchkula people so it can’t be taken into consideration for whole ICICI Prudential branches.
People were reluctant to join this job, as it doesn’t provide any fixed salary.
People perceived this profession as a low status profession.
RESULTS AND FINDINGS
FINDINGS Analysis of a research project is based on the primary data and secondary data which is being collected from various sources to take out some conclusions of the research study being taken. In my project my purpose was to find the market credibility of ICICI Prudential Life Insurance among various other private life insurance companies. For this a population of 50 people was being interviewed having different lifestyles, different incomes, different occupations yet the point which was kept in mind was that this interviewed population
The questionnaire filled up by people revealed that nearly 36 people i.e. about 72% people have life insurance policies. This is due to the fact that people now have started realizing that life is very uncertain and it is advisable to have a life insurance policy. Nearly, 24 % people had ICICI policy and 20% people have Reliance Money as their life insurance policy. Firstlyy, when enquired about the perception of people about insurance policies, nearly 39 people i.e. about 78% people see it as a security option for their families financially so that if they are not alive some day, their family does not go in vain. While 11 people i.e. about 22% people see it an investment option to save taxes and get returns. Secondaly, when asked about their investments in various alternatives, 18 people gave life insurance policies their first preference for investment.This clearly shows that people are risk averse to a large extent as largest numbers of people like to invest in life insurance policies to make sure that there is security. Thirdly, when they were asked about the criterion of choosing a life insurance company 15 people replied that they see the security point of view to buy a life insurance company. 5 people chose time span as the criteria to choose a life insurance company. 2 people chose the market share of the company as the preferred criteria of choosing the life insurance company. 8 people chose the returns of life insurance companies as the criteria for choosing a life insurance company. Nearly, 20 people chose all the above mentioned reasons to choose a life insurance company. When the sample population was interviewed about their 1st preference among the pvt. Players, nearly 46 % people chose Reliance Money as the 1st insurance company, 24 % people chose
ICICI Prudential as the 1st preference, and 16 % chose ING VYSYA as the 1st insurance company. Only after 2000, private companies have come in the field of Life Insurance Company. Proceeding further, when sample population was asked to recognize the punch line of ICICI nearly 60 % of the population was able to recognize the punch line of ICICI which clearly indicates that ICICI is a well known life insurance company among the people. Followed by it, when sample size was interviewed about the reasons of famousness of ICICI 16 % of people chose its policies as the reason for its famousness, 20% people chose its parent companies as the reason for its popularity, 24 % agreed for its marketing and advertising strategies to be the prime cause of its popularity among masses. When asked about the satisfaction with the existing insurance policies nearly 69% people said that they are satisfied with their policy whereas only 31% people were not satisfied with their policy. They wanted the additional features of transparency about the returns after when they have stopped paying the premiums. Also they wanted higher rate of returns at the end of payment of premiums.
RECOMMENDATIONS AND SUGGESTIONS
Agents are the lifeblood of the insurance industry’s distribution channel. They are the main forces that bring business to the company. Unless and until the agents are qualified and have the caliber to understand the current market scenario, they cannot remain long in the business. Hence, an optimally selected sales force is the need for the hour, for the industry like insurance. The following are the recommendations to the company: 1. There should be weekend batches of training for the people who cannot take their full six days of the week from their busy schedule. 2. Anything can click in this line of work and hence the company should evaluate the candidates subjectively. 3. Advertisements should be given in newspapers so that number people should come for the interview. 4. Various MBA institutes should be targeted to get people with good marketing as well as interpersonal skills. 5. There should be some fixed salary with some fixed targets.
The needs of the nation and its people have finally prevailed and privatization of insurance is now a really towards further liberalization of the Indian economy. With the opening up of the Industry after reforms, private sector operators in collaboration with their overseas partners are likely to bring in a more professional and focused approach. Hence, in this millennium, insurance industry is likely to play an important role in changing the economic landscape of the country. However the success of the Insurance industry will primarily depend upon meeting the rising expectations of the consumers who will be the real king in the liberalized Insurance market in future.
BOOKS:1) Marketing Management
T. N. Chhabra
2) Marketing Research
3) Marketing Management
4) Marketing Management -
Annual Report of the Company
Journals & Catalogues of the company
Q1) Entity of your business a) Sole proprietorship c) Job
b) Partnership d) Individual
Q2) Since how long you are in this business? a) Below 10 years c) 20-50 years
b) 10-20 years d) More than 50
Q3) Your turnover a) Below 5 lakh c) 10-25 lakh
b) 5-10 lakh d) more than 25 lakh
Q4) Have you insured yourself? a) Yes
Q5) If yes then of which company insurance policies do you have? a) ICICI Prudential c) HDFC standard life insurance
b) Life insurance corporation of India d) any other
Q6) Which product do you have? a) Traditional Products
b) Unit Linked Insurance Plans
Q7) If traditional then which product do you have? a) Cash Bak c) Smart Kid
b) Save ‘n’ Protect d) any other
Q8) If Unit linked then which product do you have? a) Smart Kid c) Life time super pension
b) Life time super d) any other
Q9) Do you think that your money is growing according to you? a) Yes c) Still waiting for the result
b) No d) can’t say
Q10) Would you suggest any of your family members, friends and relatives to go for ICICI Prudential? a) Of Course yes c) Never
b) Depends on their needs
Q11) Are you satisfied with the insurance plan you have? If yes, why------------------------------------------------------------------------------If no why, -------------------------------------------------------------------------------