PROJECT WORK

ON
BANKING AND INSURANCE
 INTRODUCTION

Introduction of Life Insurance

Life insurance is designed to protect life and to product family against financial
uncertainties that may result due to unfortunate demise or illness. It can also view as
a comprehensive financial instrument, as a part of the financial planning offering
savings & investment facilities along with cover against financial loss. By choosing
the right policy as per the needs. i.e. customized solutions, you will be able to plan
for a secure future for yourself and your loved ones.

We all have different financial needs and objectives. But life insurance plays a
fundamental role in most of our plans for financial security. That's because of the
variety of life insurance plans available and the many ways they can be customized
to meet unique needs at different periods of your life.

Statement of the problem

Insurance sector is a booming sector and the penetration in India is quiet low. So,
all the private players are trying to increase the market share in the public. This
study also involves creating awareness among the urban and rural consumer about
the insurance sector and also the various policies involving various premium rates.
Since the penetration of private companies and policies is low among the consumer,
it is necessary to create awareness about life insurance policies and to know the
satisfaction level among consumer. Hence the present studies entitled awareness
about it among the consumer.
 Objectives of the Study

 To create an awareness about insurance company and policies.

 To identify the potential policy holders among end users and to create a
relationship between the companies and potential customers.

 To find out the customer satisfaction level among the go with their respecting
insurance companies in which they hold the polices.
 To find out the awareness of people about insurance policies.
 To offer suggestions based on findings.

Insurance Industry

The business of insurance started with marine business. Traders, who used to
gather in the Lloyd’s coffee house in London, agreed to share the losses to their
goods while being carried by ships. The losses used to occur because of pirates
who robbed on the high seas or because of bad weather spoiling the goods or
sinking the ship. The first insurance policy was issued in 1583 in England. In
India, insurance began in 1870 with life insurance being transacted by an English
company, the European and the Albert. The first Indian insurance company was the
Bombay Mutual Assurance Society Ltd, formed in 1870. This was followed by the
Oriental Life Assurance Co. in 1874, the Bharat in 1896 and the Empire of India in
1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in
Madras, the Bombay life in Bombay, the National in Calcutta, the New India in
Bombay, the Jupiter in Bombay and the Lakshmi in New Delhi. These were all
Indian companies, started as a result of the swadeshi movement in the early 1900s.
By the year 1956, when the life insurance was nationalized and the Life Insurance
Corporation of India (LIC) was formed on 1 st September 1956, there were 170
companies and 75 provident fund societies transacting life insurance business in
India. After the amendments to the relevant laws in 1999, the L.I.C. did not have
the exclusive privilege of doing life insurance business in India. By 31.3.2002,
eleven new insurers had been registered and has begun to transact life insurance
business in India.

Need of Insurance

Assets are insured, because they are likely to be destroyed, through accidental
occurrences. Such possible occurrences are called perils. Fire, floods, breakdowns,
lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset,
we say that the asset is exposed to that risk. Perils are the events. Risks are the
consequential losses or damages. The risk to an owner of a building, because of the
peril of an earthquake, may be a few lakhs or a few crores of rupees, depending on
the cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage may
or may not happen. Insurance is done against the contingency that it may happen.
There has to be an uncertainty about the risk. Insurance is relevant only if there are
uncertainties. If there is no uncertainty about the occurrence of an event, it cannot
be insured against. In the case of a human being, death is certain, but the time of
death is uncertain. In the case of a person who is terminally ill, the time of death is
not certain, though not exactly known. He cannot be insured.
Insurance does not protect the asset. It does not prevent its loss due to the peril.
The peril cannot be avoided through insurance. The peril can sometimes be
avoided, through better safety and damage control management. Insurance only
tries to reduce the impact of the risk on the owner of the asset and those who
depend on that asset. It only compensates the losses – and that too, not fully.

Only economic consequences can be insured. If the loss is not financial, insurance
may not be possible. Examples of non-economic losses are love and affection of
parents, leadership of managers, sentimental attachments to family heirlooms,
innovate and creative abilities, etc.

Types of insurance

 Automobile insurance

 Aviation insurance

 Boiler insurance

 Builder’s risk insurance

 Casualty insurance

 Disability insurance

 Liability insurance

 Marine cargo insurance

 Purchase insurance

 Credit insurance
 Crime insurance

 Crop insurance

 Directors and officers liability insurance

 Property insurance

 Terrorism insurance

 Title insurance

 Travel insurance

 Workers’ compensation

 Life insurance

 Total permanent disability insurance

 Locked funds insurance

 Marine insurance

 Financial loss insurance

 Health insurance

 Professional indemnity insurance

 Environmental liability insurance

 Pet insurance

 Political risk insurance

ICICI PRUDENTIAL

ICICI Prudential Life Insurance understand the needs you as a customer may have.
It changes at various stages in your life, from your child’s education to saving up
for your comfortable life post retirement. it is our constant endeavor to innovate
products that best suits any requirements you may have.

ICICI Prudential Life has been ranked as India's Most Trusted Private Life Insurer,
by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'.

That’s not all; our commitment lies in constantly innovating and delivering world-
class products and services to all our customers across the country.

The unstinted support of our customers has helped us create a strong trusted brand
and a wide product portfolio over the last 9 years in the Indian private life insurance
sector.

Our vision:

To be the dominant Life, Health and Pensions player built on trust by world-class
people and service.

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 5

core values -- Integrity, Customer First, Boundaryless, Ownership and Passion.
Each of the values describe what the company stands for, the qualities of our people
and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where

we can play a significant role in redefining and reshaping the sector. Given the
quality of our parentage and the commitment of our team, there are no limits to our
growth.

Promoters

ICICI Bank

ICICI Bank Limited (NYSE:IBN) About ICICI Bank: ICICI Bank Ltd (NYSE:IBN)
is India's largest private sector bank and the second largest bank in the country with
consolidated total assets of over US$ 100 billion as of March 31, 2010. ICICI
Bank’s subsidiaries include India’s leading private sector insurance companies and
among its largest securities brokerage firms, mutual funds and private equity firms.
ICICI Bank’s presence currently spans 19 countries, including India.

Prudential Plc

Established in London in 1848, Prudential plc is an international retail financial

services group with significant operations in Asia, the US and the UK serving
around 25 million customers, policyholder and unit holders worldwide. The
company has £290 billion of assets under management and it is one of the best
capitalised insurers in the world with an Insurance Groups Directive (IGD) capital
surplus estimated at £3.4 billion (at 31 December 2009). Prudential is a leading life
insurer in Asia with a presence in 12 markets and have the top three position in
seven key locations of Hong Kong, India, Indonesia, Malaysia, Singapore, the
Philippines and Vietnam.

Fact Sheet
The Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank, a premier financial powerhouse, and Prudential plc, a leading
international financial services group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).
 
ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of March 31, 2010)
with ICICI Bank and Prudential plc holding 74% and 26% stake respectively.
For the period April 1, 2009 to March 31, 2010, the company has garnered total
premium of Rs 16,532 crores and has underwritten over 10 million policies
since inception. The company has assets held over Rs. 57,000 crores as on
March 31, 2010.
 
For the past nine years, ICICI Prudential Life has retained its leadership
position in the life insurance industry with a wide range of flexible products
that meet the needs of the Indian customer at every step in life

Distribution

ICICI Prudential Life has one of the largest distribution networks amongst private
life insurers in India. It has a strong presence across India with over 1,900 branches
(including 1,074 micro-offices) and an advisor base of over 210,000 (as on March
31, 2010).
 
The company has 7 bancassurance partners having tie-ups with ICICI Bank,
Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank,
Renuka Nagrik Sahakari Bank, Bhandara Urban Co-operative Bank, Balasinor
Nagarik Sahakari Bank Limited, Arvind Co-op Bank.

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 4 riders, to create a customized solution for each
policyholder.
 Savings & Wealth Creation Solutions
o ICICI Pru LifeStage Wealth II is a unit linked insurance plan that
offers multiple choices to decide how your savings would be invested
based on your risk appetite.
o ICICI Pru Pinnacle II is a unit linked insurance plan that gives you the
advantage of varying exposure to equities with downside protection, so
that your investments are protected in financially volatile times.
o ICICI Pru LifeTime Premier is a comprehensive savings plan that
offers you a choice of portfolio strategies for your savings and at the
same time secures you against uncertainties of life.
o ICICI Pru LifeLink Wealth SP is a unique single premium ULIP that
provides you the opportunity to enjoy potentially higher returns over the
long term on your investments, with just a single premium.
o ICICI Pru Guaranteed Savings Insurance Plan is a limited pay
endowment product that allows you to enjoy the benefits of a long term
savings plan ensuring that you and your family are free of any financial
worries.
o ICICI Pru Whole Life provides you with a unique double advantage of
savings and protection that not only allows you to meet your goals but
also seeks to ensure that your dear ones will continue to live their lives
in comfort without financial worries in case of unforeseen eventuality
o ICICI Pru Save 'n' Protect is an ideal plan for those who want to
accumulate funds on a regular basis while enjoying insurance protection.
o ICICI Pru CashBak is a single policy that combines the triple benefit
of protection, savings & periodic liquidity.
 Protection Solutions
 o ICICI Pru iProtect is a term insurance plan that you can buy online at
your convenience at their home loans in a simple and cost-effective
manner.
o ICICI Pru Pure Protect is a flexible and affordable term product, with
which you can ensure your life and provide total security for your family
in case of an unfortunate event.
o ICICI Pru LifeGuard is a protection plan, which offers life cover at
low cost. It is available in 2 options –level term assurance with return of
premium & single premium.
o ICICI Pru 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
o ICICI Pru SmartKid Regular Premium is a fixed-term insurance plan
that provides you with funds at regular intervals.
 Retirement Solutions
o ICICI Pru LifeLink Pension SP is a single premium pension policy
that provides you the opportunity to enjoy regular income post
retirement by paying just a single premium.
o ICICI Pru ForeverLife is a traditional retirement product that offers
guaranteed returns for the first 4 years.
o ICICI Pru Immediate Annuity is a single premium annuity product
that guarantees income for life at the time of retirement. It offers the
benefit of 5 payout options.
 Health Solutions 
o ICICI Pru Hospital Care II is a family floater plan covering your
spouse and children. This fixed benefit hospitalisation and surgical plan
complements your existing coverage by offering payouts over and above
any health plan you have, thus availing best possible medical treatment,
without having to bother about the cost of the treatment or quality of
care.
o ICICI Pru Crisis Cover is a 360-degree product that will provide long-
term coverage against 35 critical illnesses, total and permanent
disability, and death.
o ICICI Pru Health Saver is a whole of life comprehensive health
insurance policy which provides a hospitalisation cover for you and your
family and reimburses all other medical expenses not covered in the
hospitalisation benefit by building a health fund for you and your family.
 Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking
to enhance benefits to their employees.
o Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner
and also avail of tax benefits as applicable to approved gratuity funds.
o Group Leave encashment Plan: ICICI Prudential Life’s Group offers a
market linked and traditional leave encashment plan designed to aid the
employer to build a fund to meet their future leave encashment liability.
The contributions made will be invested as per the chosen investment
plans and will be available for payment of the benefit when it falls due.
Additionally, the product also provides for term cover for all the
employees covered under the policy.
o Group Superannuation Plan: ICICI Prudential Life offers a flexible
market linked and traditional schemes that provide substantial benefits to
both employers and employees. Both defined contribution (DC) and
defined benefit (DB) schemes are offered to optimise returns for
members of the trust and rationalise cost. Members have the option of
choosing from various annuity options or opting for a partial
commutation of the annuity at the time of retirement.
o Group Immediate Annuities: ICICI Prudential Life realises the
importance of prudent retirement planning. With this in mind, it has
developed a suite of life and joint life annuities which guarantee periodic
payment to annuitants upto death. Further there are options which return
the purchase price on death of annuitants. These annuity options are
offered to our existing superannuation customers, and also to
superannuation funds not managed by us.
o Group Term Plan: ICICI Prudential Life's flexible group term solution
helps provide an 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 Prudential Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the customer.
o 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 assured under the policy. If an
 accident results in total and permanent disability, 10% of rider sum
assured will be paid each year, from the end of the 1st year after the
disability date for the remainder of the base policy term or 10 years,
whichever is lesser.
o Critical illness benefit: Critical Illness Benefit Rider provides
protection against 9 critical illnesses to the policyholder when attached
to the basic plan.

About the Promoters

  ICICI Bank 
About ICICI Bank: ICICI Bank Ltd (NYSE:IBN) is India's largest private
sector bank and the second largest bank in the country with consolidated total
assets of over US$ 100 billion as of March 31, 2010. ICICI Bank’s
subsidiaries include India’s leading private sector insurance companies and
among its largest securities brokerage firms, mutual funds and private equity
firms. ICICI Bank’s presence currently spans 19 countries, including India.
 Prudential Plc
Established in London in 1848, Prudential plc is an international retail
financial services group with significant operations in Asia, the US and the
UK serving around 25 million customers, policyholder and unit holders
worldwide. The company has £290 billion of assets under management and it
is one of the best capitalised insurers in the world with an Insurance Groups
Directive (IGD) capital surplus estimated at £3.4 billion (at 31 December
2009). Prudential is a leading life insurer in Asia with a presence in 12
markets and have the top three position in seven key locations of Hong Kong,
India, Indonesia, Malaysia, Singapore, the Philippines and Vietnam.

Range of Products

At ICICI Prudential Life, we understand that different individuals have different

needs.
 
The ideal insurance plan is one that addresses the exact insurance needs of the
individual which depends on the age and life stage of the individual apart from a
host of other factors.
 
ICICI Prudential Life offers plans under the following major need categories:
 

 Term plans 
 Wealth plans 
 Child plans 
 Health plans 
 Retirement plans 
 Group plans
 Rural plans

Management Profile
Board of Directors

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

Ms. Chanda D. Kochhar, Chairperson

Mr. N. S. Kannan, Director
Mr. K. Ramkumar, Director
Mr. Rajiv Sabharwal, Director
Mr. Barry Stowe, Director
Mr. Adrian O’Connor, Director
Mr. Keki Dadiseth, Independent Director
Prof. Marti G. Subrahmanyam, Independent Director
Ms. Rama Bijapurkar, Independent Director
Mr. Vinod Kumar Dhall, Independent Director
Mr. Sridar Iyengar, Independent Director
Mr. Sandeep Bakhshi, Managing Director & CEO
Mr. Puneet Nanda, Executive Director
Mr. Madhivanan Balakrishnan, Executive Director

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