CHAPTER 1 INTRODUCTION

1.1.1 COMPANY PROFILE

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial service group head quartered in the United Kingdom. ICICI Prudential was amongst the first private sector Insurance Company to begin operations in December 2000 after receiving approval from Insurance Regulatory Development authority (IRDA).

ICICI Prudential equity base stands at Rs.825 billion with ICICI Bank and Prudential policy holding 74% and 26% stake respectively. In the year ended September 30 2004, the company garnered Rs.498 crore of new business premium for a total sum assured of over Rs.23, 000 crore and had mover 1 million polices. The company has a network of over 40,000 advisors mass well as 7 banacassurance tie-ups.

Today, ICICI Prudential equity stands at Rs.675 Crore with ICICI Bank and Prudential police holding 74% and 26% stake respectively. In the quarter ended June 30,2004. The company issued over 1,00,000 policies for a total sum assured of over Rs.3753 Crore and had business premium income of Rs.243 Crore. Today the company is the number one private life insurance in India having commenced operations in 62 cities and forces in India.

ICICI Prudential life insurance company as a joint venture between ICICI Bank, a premier financial power house and prudential policy.

INDUSTRY PROFILE
Life Insurance Market in India

Many may not be aware that the life insurance industry of India is as old as it is in any other part of the world. The first Indian life insurance company was the Oriental Life Insurance Company, which was started in India in 1818 at Kolkata.

A number of players (over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country. However, the Government of India, concerned by the unethical standards adopted by some players against the consumers, nationalised the industry in two phases in 1956 (life) and in 1972 (non-life).

The insurance business of the country was then brought under two public sector companies, Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).

In line with the economic reforms that were ushered in India in early nineties, the Government set up a Committee on Reforms (popularly called the Malhotra Committee) in April 1993 to suggest reforms in the insurance sector. The Committee recommended throwing open the sector to private players to usher in competition and bring more choice to the consumer.

The objective was to improve the penetration of insurance as a percentage of GDP, which remains low in India even compared to some developing countries in Asia. Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms. So far in the private sector, 12 life insurance companies and 9 general insurance companies have been registered.

COMPANY OVERVIEW

India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companies-and Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

They began their operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, their nation-wide team comprises of over 580 offices, over 234,000 advisors; and 22 bancassurance partners.

ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times. As they grow their distribution, product range and customer base, they continue to tirelessly uphold their commitment to deliver world-class financial solutions to customers all over India.

ABOUT THE PROMOTERS

ICICI BANK It is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs 3446.58 bn as on March 31, 2007. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 950 branches and extension counters, 3300 ATMs, call centers and internet banking to ensure that customers have access to its services at all times.

PrudentialPlc
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over 251 billion of funds worldwide (as of 31 December 2006).

In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the second largest retail fund manager for Asian as at June 2006.

Its fund management business has expanded into a total of ten markets : China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

What makes ICICI Prudential No. 1

The ICICI Prudential edge comes from their commitment to their customers, in all that they do - be it product development, distribution, the sales process or servicing. Following are the important points to know what makes ICICI Prudential No.1

1. Their products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps them develop Education plans that offer the ideal way to truly guarantee child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after retire, or Health insurance that arms customer with the funds they might need to recover from a dreaded disease.

2. Having the right products is the first step, but it's equally important to ensure that their customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute their products

3. Risk management and underwriting practices form the core of their business. With clear guidelines in place, they ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process.

4. Entrusted with helping customers meet their long-term goals, they adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term.

5. Last but definitely not the least, their 16,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. They believe this keeps them engaged and enthusiastic, so that they can deliver on their promise to cover customer, at every step in life.

Company hopes to Achieve

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.

Organization chart of ICICI Prudential Life Insurance

Branch manager

Sales Manager

Sales Manager

Unit

Unit

Unit Manager

Unit

Unit

Unit Manager

Manager Manager

Manager Manager

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

1.1 OUTLINE OF THE STUDY

Insurance is concerned with the protection of economic value of assets. The beginning of insurance business is traced to the city of London. It started with the marine business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share losses to goods during transportation by ship. In India insurance started with life insurance. It was in the early 19th century when the Britishers on their postings in India felt the need of life insurance cover. It started with English Companies like. The European and the Albert. The first Indian insurance company was the Bombay Mutual Society Ltd., formed in 1870.

In the wake of the Swadeshi Movement in India in the early 1900s, quite a good number of Indian companies were formed in various parts of the country to transact insurance business. To name a few: Hindustan Co-operative and National Insurance in Kolkata, United India in Chennai, Bombay Life ,New India and Jupiter in Mumbai and Lakshmi Insurance in New Delhi.

In 1956, life insurance business was nationalized and LIC of India came into being on 1.9.1956. The government took over the business of 245 companies who were transacting life insurance business at that time. Thereafter, LIC got the exclusive privilege to transact life insurance business in India. Relevant laws were amended in1999 and LICs monopoly right to transact life insurance business in India came to end. At the close of financial year ending 31.3.2004, twelve new companies were registered with the Insurance Regulatory Development Authority (IRDA) to transact life insurance business in India.

EXECUTIVE SUMMARY
India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companies and Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

Life Time Super policy is a regular-premium unit-linked policy, which offers potentially higher returns that systematically enable to meet long-term financial objectives. In addition, Life Time Super also provides the protective benefit of an insurance cover, which keeps family secure, always. In this plan the policy holder has the flexibility to do withdrawal at the different lifestages depending upon the needs.

From the study suggest the investors that , as the Life Time Super is a better tool for integrated financial planning investing in Life Time Super creates asset by providing flexible choice of funds to invest, it accumulates the asset by having the flexibility of increasing investor accumulation by putting in extra premium whenever investor have some money to put in. It also provides some other features like riders which protects the health of the investor and meets the needs of Life stages. It has different benefits like switching options, maturity benefit and death benefits.

From the study conclude that Life Time Super is a better as compared to any other plans. It takes care of the investment and provides the protection against the health hazards. Thus Life Time Super is the product that satisfies totally a different set of needs and death benefit as a multiple of the annual premium .Thus, this is how Life Time Super helps an investor to create, protect, and accumulate his investments.

1.1.2 Vision:
To make ICICI Prudential the dominant life and pensions player built on trust by worldclass 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 policy holders 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 crore values-integrity customer first, boundaryless, ownership and passion. Each of the value describes 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.

1.1.3 Promoters
ICICI and prudential came together in 1993 to form Prudential ICICI Asset Management Company, Which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to you. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions.

ICICI bank has 74% stake in the company, and Prudential plc has 26%.

1.1.4 ICICI Bank ICICI Bank (NYSE:IBN) is Indians second largest bank with an asset base of Rs.106812 crore. 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 service a growing customer base of more than 7 million customer accounts and 5 million bondholders accounts through a multi-channel access network. This includes about 450 branches and extension counters, 1675 ATMs, call centers and internet banking (www.icicibank.com). ICICI Bank posted a nets profile of Rs.1, 206 crore for the year ended March 31, 2003. ICICI Bank is the only company to be rated above the country rating by the international rating agency Moddys and the only Indian company to be awarded an investment grade international credit rating. The bank enjoys the highest AAA (or equivalent) rating from all the leading Indian rating agencies.

1.1.5 Prudential plc Established in 1848, Prudential plc is a leading international financial services company in the UK. With around US$250 billion funds under management, and more than 16 million customers worldwide. Prudential has brought to market an integrated range of financial service products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance, in Asia, Prudential is UKs largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries- China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, prudential has championed customer- centric products and services, supported by over 60,000 staff and agents across the region.

1.2 PRODUCT PROFILE

1.2.1 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 20 products can be enhanced with up to 6 riders, to create a customized solution for each policy holders.

1.2.2 Savings Solutions SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection. CashPlus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.

1.2.3 Save?n?Protect is a traditional endowment savings plan that offers life protection along with adequate returns. CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a childs marriage, expenses for a childs higher education or purchase of an asset. LifeTime & LifeTime II offer customers the flexibility and control to customize the police to meet the changing needs at different life stages. Each offer 4 fund options? Preserver, Protector, Balancer and Maximiser. LifeLink II is a single premium Market Linked Insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75. Invest Shield Life is a market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest.

 Invest Shield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options. Invest Shield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.

1.2.4 Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options? level term assurance, level term assurance with return of premium and single premium.

1.2.5 Child Plans SmartKid education plans provide guaranteed educational benefits to a child along the insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the childs life. SmartKid plans are also available in unitlinked form? both single premium and regular premium.

1.2.6 Retirement Solutions Forever Life is a retirement product targeted at individuals in their thirties. SecurePluse Pension is a flexible pension plan that allows one to select between 3 levels of cover.

1.2.7 Market-linked retirement products LifeTime Pension II is a regular premium market- linked pension plan. LifeLink Pension II is a single premium market-linked pension plan. InvestShields Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses. 1.2.8 Group Insurance Solutions

ICICI Prudential also Group Insurance Solution for companies seeking to enhance benefit to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru group gratuity plans helps employers funds their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement Kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial communication of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Pru flexible group term solution helps provide affordable cover to member 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.

2.1 NEED FOR THE STUDY The main aim of the study is to find out what the customers expect from the Insurance product and make it move fast in the market. To measure the brand awareness and demand of the ICICI Prudential policies. To measure the customer attitude towards private Insurance sector.

CHAPTER 5 DATA ANALYSIS AND INTERPRETATION PERCENTAGE ANALYSIS

TABLE NO: 5.1 AGE WISE CLASSIFICATION Age Group 18-25 Years 25-35 35-45 Above 45 No of Respondents 43 61 13 33 Percentage 28.67 40.67 8.66 22

Total

150

100

Inference: The above table inferred that 40.67 % of the respondents are between the age group of 25 35 followed by 28.67 % of the respondents are between 18 25, 8.66 % are between 35 45 and 22 % are above 45 years.

CHART NO: 5.1 AGE WISE CLASSIFICATION

50
40.67

40
28.67

30
22

20
8.66

10

0
18-25 Years 25-35 35-45 Above 45

TABLE NO: 5.2

NATURE OF OCCUPATION Nature of Job Salaried Self Employed House Wife / Student Retired / Pensioner Agriculture Others Total No of Respondents 82 32 11 12 4 9 150 Percentage 54.67 21.33 7.33 8 2.67 6 100

Inference: The above table inferred that 54.67 % of the respondents are salaried persons, 21.33 % of the respondents are self employed, 8 % of the respondents have retired and pensioners, 7.33 % of the respondents are housewife/students, 6 % 0f the respondents are from others and 2.67 % are from agriculture.

CHART NO: 5.2

NATURE OF OCCUPATION

Graph showing the nature of Occupation 60 50 40 30 20 10 0

54.67

21.33 7.33 8 2.67

Salaried

Self Employed

House Wife / Student

Retired / Pensioner

Agriculture

Others

TABLE NO: 5.3

LEVEL OF INCOME

Income Upto 1 Lac Upto 2 Lacs 3 to 5 Lacs Above 5 Lacs Total

No of Respondents 51 51 36 12 150

Percentage 34 34 24 8 100

Inference: From the above table it is inferred that 34% of the respondents have income upto 1 lakh and 2 lakh, 24% of the respondents have income between 3-5 lakhs and 8% are above 5 lakhs income customers.

CHARTNO: 5.3

LEVEL OF INCOME

Graph showing the Level of Income

40 34 34 24

30

20 8 10

0 Upto 1 Lac Upto 2 Lacs 3 to 5 Lacs Above 5 Lacs

Income

TABLE NO: 5.4

PATTERN OF INVESTMENT

Response

No of Respondents

Percentage

Postal Savings Fixed Deposits Shares Recurring Deposits Mutual Funds Real Estates Others Total Inference:

21 38 19 25 21 22 4 150

14 25.33 12.67 16.67 14 14.67 2.67 100

From the above table it is inferred that reveals 25.33% of the respondents invest in fixed deposits, 16.67% of the respondents have recurring deposits, 14.67%of the respondents invest in real estates, 14% of the respondents have mutual funds and postal savings, 12.67% of respondents invest in shares, and 2.67% are interested in other plans.

CHART NO: 5.4

PATTERN OF INVESTMENT

30
25.33

20
14 12.67

16.67 14 14.67

10
2.67

Postal Savings

Fixed Deposits

Shares

Recurring Deposits

Mutual Funds Real Estates

Others

TABLE NO: 5.5

NUMBER OF POLICY HOLDERS

Response Yes No Total

No of Respondents 128 22 150

Percentage 85.33 14.67 100

Inference: From the above table it reveals that 85.33% of respondents have taken insurance, 14.67% of the respondents have not taken insurance.

CHART NO: 5.5

NUMBER OF POLICY HOLDERS

14.67

Yes No

85.33

TABLE NO: 5.6

NUMBER OF POLICY HOLDERS

Response Life Life, General No Response Total

No of Respondents 79 59 22 150

Percentage 52.67 39.33 14.67 100

Inference: From the above table it reveals that 52.67% of respondents have taken life insurance, 39.93% of the respondents have taken both life and general.

CHART NO: 5.6

NUMBER OF POLICY HOLDERS

14.67 52.67 Life Life, General 39.33 No Response

TABLE NO: 5.7

PERCEPTION OF CUSTOMERS ON THE CONCEPT OF INSURANCE

Response Investment Tool Tax Saving Tool Cover of probable risk Saving Tool Others Total Inference:

No of Respondents 29 7 40 52 22 150

Percentage 19.33 4.67 26.67 34.67 14.67 100

From the above table it reveals that 34.67% of respondents treats insurance as saving tool, 26.67% of respondents treats insurance as cover of probable risk, 19.33% of respondents treats insurance as investments tool, 4.67% of respondents consider insurance as Tax saving tool, and 14.67% of respondents have no idea on insurance.

CHART NO: 5.7

PERCEPTION OF CUSTOMERS ON THE CONCEPT OF INSURANCE

34.67

35 30 25 20 15 10 5 0
Investment Tool Tax Saving Tool Cover of probable risk Saving Tool Others

26.67 19.33 14.67

4.67

FACTORS THAT ARE TO BE CONSIDERED BEFORE INVESTMENT

TABLE NO: 5.8

Response Goodwill of the Company Rate of returns offered Brand image Diversified business group Service Offered Years of business Others Total

No of Respondents 30 32 22 12 15 10 31 150

Percentage 20 21.33 14.67 8 10 6.67 19.34 100

Inference: From the above table it is inferred that 21.33% of them respondents have decision of invest in financial institutions as it is offering good rate of returns offered, 20% of the respondents invest in financial institutions against goodwill of the company, 14.67% of because of brand image of the company and 14.67% have no idea in insurance, 10% of the respondents invest to the service offered, 8% of the respondents invest against diversified business groups, 6.67% of the respondents invest against years of business, 19.34% of the respondents invest in others.

CHART NO: 5.8

FACTORS THAT ARE TO BE CONSIDERED BEFORE INVESTMENT

160 140 120 100 80 60 40 20 0 No of Respondents Percentage

Goodwill of the Company Rate of returns offered Brand image Diversified business group Service Offered Years of business Others Total

TABLE NO: 5.9

SOURCE OF INFORMATION ABOUT THE LIFE INSURANCE.

Response Friends Relatives Colleagues TV Ads All of the above Others Total

No of Respondents 41 39 19 13 16 22 150

Percentage 27.33 26 12.67 8.67 10.67 14.67 100

Inference: From the above table it is inferred that 27.33% of them respondents got information about life insurance company from friends, 26% of the respondents got through relatives, 12.67% of the respondents got through their colleagues, 10.67% of the respondents got from all of the above, 8.67% of the respondents got information from TV Ads, 14.67% of the respondents showed no response towards insurance.

CHART NO: 5.9

SOURCE OF INFORMATION ABOUT THE LIFE INSURANCE.

27.33

26

30 20 10 0
Friends Relatives Colleagues TV Ads All of the abpve 12.67 8.67 14.67 10.67

Others

TABLE NO: 5.10

INVESTMENT IN THE PRIVATE LIFE INSURANCE COMPANY.

Response Yes No No Response Total

No of Respondents 89 39 22 150

Percentage 59.33 26 14.67 100

Inference: From the above table it is inferred that 59.33% of the respondents have invested in private life insurance company, 26% of the respondents do not invest in private life insurance company, and 14.67% of the respondents have no interest in insurance

CHART NO: 5.10

INVESTMENT IN THE PRIVATE LIFE INSURANCE COMPANY.

59.33

60 50 40 30 20 10 0
Yes No No Response 26 14.67

TABLE NO: 5.11

VARIOUS LIFE INSURANCE COMPANIES.

Response LIC, ICICI LIC, Metlife LIC, TATA LIC, HDFC LIC, Bajaj ICICI LIC Bajaj TATA Sanmar Metlife HDFC Others Total

No of Respondents 15 2 1 3 7 38 37 8 4 4 5 4 22 150

Percentage 10 1.33 0.67 2 4.67 25.33 24.67 5.3 2.67 2.67 3.33 2.67 14.67 100

CHART NO: 5.11

VARIOUS LIFE INSURANCE COMPANIES.

30
25.33 24.67

25 20 15
10 14.67

10
4.67 5.3 3.33

5 0

1.33

0.67

2.67

2.67

2.67
Others

LIC, Metlife TATA HDFC Bajaj LIC, LIC, LIC, ICICI LIC, ICICI

LIC

Bajaj

TATA

SanmarMetlife HDFC

TABLE NO: 5.12

FACTORS TO BE CONSIDERED BEFORE INVESTING IN INSURANCE COMPANY. Sample Brand image Service offered Rate of returns offered Product mix Product features Need based solutions Reference from a known Others TOTAL No of Respondents 25 20 31 11 21 9 9 24 150 Percentage 16.67 % 13.33% 20.67% 7.33% 14% 6% 6% 16% 100

Inference: From the above table it is inferred that 20.67% of respondents invest in insurance company which offer high rate of returns, 16.67% of respondents respond to brand image of the company, 13.33% of the respondents respond to the services offered in the company, 7.33% of the respondents product mix, 6% of the respondents follow need based solution and reference from a known some, 16% of the respondents follow the others.

CHART NO: 5.12

FACTORS TO BE CONSIDERED BEFORE INVESTING IN INSURANCE COMPANY.

14.67% 1.33% 6%

13.33%

6%

20.67%

14%

7.33%

TABLE NO: 5.13

CONTENTION OF CUSTOMERS ON THE SERVICE OF LIFE INSURANCE

Response Yes No Others TOTAL

No of Respondents 101 27 22 150

Percentage 67.33% 18% 14.67% 100

Inference: From the above table it is inferred that 67.33% of respondents are satisfied with the present life insurance company, 18% of the respondents are not satisfied with the insurance company, and 14.67% of the respondents have no response towards insurance companies.

CHART NO: 6.13

CONTENTION OF CUSTOMERS ON THE SERVICE OF LIFE INSURANCE

14.67% 18%

67.33%

TABLE NO: 5.14

DISSATISFACTION ON THE SERVICE OF LIFE INSURANCE COMPANY.

Response Advisors follow up not good Longer duration of processing No promptness in delivery Others TOTAL

No of Respondents 7 6 8 127 150

Percentage 4.67% 4% 5.33% 84.67% 100

Inference: The above table inferred that the main reason for dissatisfaction present in life insurance company are true of advisor follow up, lack of promptness in deliver, non transparency and delivery in process

CHART NO: 5.14

DISSATISFACTION ON THE SERVICE OF LIFE INSURANCE COMPANY.

4.67% 4% 5.33%

84.67%

TABLE NO: 5.15

COMPANY REPRESENT IS NEEDED.

Response Yes No Others TOTAL Inference:

No of Respondents 93 35 22 150

Percentage 62.00% 23% 14.60% 100

From the above table it is inferred that 62% of respondents attend their problems with company representative, 23.33% of respondents do not attend their problems with company representative, and 14.67% of respondents have no response towards insurance.

CHART NO: 5.15

COMPANY REPRESENT IS NEEDED.

14.60%

23% 62.00%

Table 5.19 CHI-SQUARE TEST FACTORS TO BE CONSIDERED BEFORE INVESTING IN INSURANCE COMPANY. ATTRIBUTES Brand image Service offered Rate of returns offered Product mix Product features Need based solutions Reference from a known Others TOTAL No of Respondents 25 20 31 11 21 9 9 24 150

FORMULA The chi-square test is given by the formula E (Oi-Ei)2 = Ei Where Oi = Observed frequency Ei = Expected frequency

HYPOTHESIS It is the statement of universe and it is of two types. HO: Null Hypothesis. The attributes are independent. Hi = alternate Hypothesis. The attributes are not independent.

DEGREE OF FREEDOM

Degree of freedom= (r-1) (c-1) Where r = the number of rows in the table and c = the number of columns in the table. (Oi-Ei)2 69.39 11.09 211.12 32.15 18.75 58.33 58.33 (Oi-Ei)2/ Ei 4.16 0.66 12.66 1.93 1.12 3.50 3.50

S.NO. 1 2 3 4 5 6 7

Samples Brand image Service offered Rate of returns Product mix Product feature Need based solutions Reference from a known source

Oi 25 20 31 11 21 9 9

Ei 16.67 16.67 16.67 16.67 16.67 16.67 16.67

Oi-Ei 8.33 3.33 14.53 -5.67 4.33 -7.67 -7.67

8 9

Others No reference

5 19 150

16.67 16.67

-11.67 2.33

136.18 5.45

8.17 0.33 36.03

Degree of freedom =

9-1

=8

Calculated value

36.03

Table value

15.507

CONCLUSION: The calculated value is greater than the table value Therefore, Null hypothesis is rejected.

CO- EFFICIENT OF CORRELATION

Table No: 5.20
X 30 32 22 12 15 10 9 22 dx (X-13) 17 19 9 -1 2 -3 -4 9 48 dx 289 361 81 1 4 9 16 81 842 Y 25 20 31 11 21 9 11 22 dy (Y-16) 9 4 15 -5 5 -7 -5 6 22 dy 81 16 225 25 25 49 25 36 482 dxdx 153 76 135 5 10 21 20 54 474

Calculation : N dXdY - dXdY ___________________________________ NdX - (dX) N dY - ( dY) (8) (474) (48) (22) _________________________________ (8) (842) - (48) (8) (482) (22)

r=

r=

r=

2736 3865.05

r=

0.707

Result : From the above calculation , so there is relationship .

CHAPTER 6

FINDINGS
o It provides the customers, the flexibility of increasing the sum assured which suits investors life stage needs. o Life Time Super provides health protection by providing a feature like rider o Life Time Super also covers you for the unfortunate event of Living dead with flexible features like 6 choice of funds to grow their investments in long-run o This plan has the flexibility to take out money of policyholder account for any of their requirements without having to pay any costs, which is how they use their accumulation account. o The concept of Rupee-cost Average minimizes the timing risk. A sustained investment plan would always create value in the long-term for the policy holders, irrespective of the existing investment market conditions. o The switch option gives the policy holder / investor the control to change the investment patterns with changing needs at different lifestages.

SUGGESTIONS

As the Life Time Super is a better tool for integrated financial planning, investing in Life Time Super creates asset by providing flexible choice of funds to invest, it accumulates the asset by having the flexibility of increasing investor accumulation by putting in extra premium whenever investor have some money to put in. It also provides some other features like riders which protects the health of the investor and meets the needs of Life stages.

CONCLUSION

Life Time Super is positioned as a long term wholesome financial products that takes care of the investment, insurance makes and provides the protection against the health hazards. Thus Life Time Super is the product that satisfies totally a different set of needs and death benefit as a multiple of the annual premium. It also provides the flexibility to control the insurance & savings, according to the needs of the individual at different life stages.

Thus, this is how Life Time Super helps an investor to create, protect, and accumulate his investments.

CHAPTER 8 8.1 LIMITATIONS OF THE STUDY 1. Personal bias cant completely rule out.

2. Due to time cost and resource constrains the survey was conducted in puducherry city.

3. Limitations during data collection like hesitation on the fact of samples.

4. The sample size was restricted to 150 respondents and the respondents were chosen on convenience basis.

8.2 SCOPE FOR FURTHER STUDY Customers are ever changing. They get newer ideas, opinions and are looking at quality for every rupee they dispose. For companies to live up to expectations of customers they need to organize their activities in such a way that their acceptance levels should be high compared to that of their competitions. Thus the focus is on analyzing the customer on various parameters so that they can approach him with generalized need based solutions. Henceforth, this project suits the above requirements in order to understand the Customers attitude in Puducherry.

This project looks at various aspects which Insurance Company should undertake in order to sustain and grab the market from competition.

Bibliography:

1) http://www.iciciprulife.com 2) http://www.google.com 3) http://www.wikipedia.com 4) http://business.mapsofindia.com

ANNEXURE

QUESTIONNAIRE

Personal information Name Age Gender Marital status : : Yrs.

: Male/Female : Married [
th

Unmarried [ 12
Th

] ] Graduate [ ]

Educational qualification: 10 [ ]

Post graduate [ If professional : MBA [ Engineer [ You are a : Salaried [ ] ] ]

] CA [ ] ] ICWA/CFA/CS [ Doctor [ ] ] [ ] ]

LLB [

Self employed

House wife student [ Agriculture [ Financial information ]

] Retired / pensioner [ Others

1. Could you please tell me approximate annual income Upto 1lac [ ] ] Upto 2 lac [ ] 3 to 5 lacs [ ]

Above 5 lacs [

2. Could you please indicate your investment across options Postal saving [ ] Fixed deposits [ ] mutual funds [ ] ] shares [ ]

Recurring deposit [ Others ----------------

real estates [ ]

3. Do you have insurance Yes [ ] ] No [ ] ]

If yes, life [

General [

4. What is your perception towards the concept of insurance? It is an investment tool [ ] ] it is a tax saving tool [ it is a savings tool [ ] ]

It is a cover for probable risk [

5. What are the various factors you look for in a financial institution before you make a decision to invest? Good will of the company [ Brand offered Services offered [ [ ] ] ] Rate of returns offered [ ] ] ]

Diversified business group [ Years of business [

6. What are you various sources of information about life insurance companies? Friends [ ] Relatives [ ] Colleagues [ ] TV ads [ ]

Paper Ads Auditor Others --------------------

7. Could you please tell if you have invested in a private life insurance company? Yes [ ] No [ ]

8. Could you recall names of some life insurance companies

9. Could you please tell the name of the life insurance company where you have invested?

10. What are the various factors you considered to invest in that company? Brand offered Rate of returns offered Product features [ [ [ ] ] ] Services offered [ Product mix [ ] [ ] ]

Need based solution ] others

Reference from a known source [

11. Are you happy with the services of your present life insurance company? Yes [ ] No [ ]

12. If no, what made you think so? Give reasons Advisors follow up not good [ ]

Untimely intimation of renewal premium [ ] No promptness in deliver [ ] ]

Longer duration of processing [ Not transparent Others [ ]

____________________

13. Do you want me to help you in sending a company representative to attend to your problems? Yes [ ] No [ ]

14. What are the

additional services you expect from your insurance company?

THANK YOU