Submitted To: - Submitted By
Submitted To: - Submitted By
Submitted To: - Submitted By
Submitted By: -
ACKNOWLEDGEMENT
The success of this final report is the outcome of Guidance and valuable
suggestions provided by all the concerned without whom the report could not fide
on the right back.
I would like to express my sincere gratitude to Lect. Mrs. Paramjeet kaur, MBA
Dept.,RIMT-MAEC for giving me an opportunity to do this project work.
I also express my sense of deep gratitude towards PUNJAB TECHNICAL
UNIVERSITY JALANDHAR for introducing a programme which enables us to
learn more.
Table of Content
1. Main Text
1.1 Executive Summary
5
1.2 Introduction
Introduction ....6
Objectives....8
Limitations..10
2. Finding & Results
Industry profile...11
Company profile....14
Company products.18
SWOT Analysis.....21
Research methodology...22
Advantage of life insurance...27
Conclusion.30
3. Appendices ...31
4. Bibliography..34
Executive Summary
responsibilities in focusing learning, and making it clearer for each participant, are
extremely important.
INTRODUCATION
Insurance is an upcoming sector, in India the year 2000 was a landmark
year for life insurance industry, in this year the life insurance industry was
liberalized after more than fifty years.
Insurance sector was once a monopoly, with LIC as the only company, a
public sector enterprise. But nowadays the market opened up and there are many
private players competing in the market. There are fifteen private life insurance
companies has entered the industry.
After the entry of these private players, the market share of LIC has been
considerably reduced. In the last five years the private players is able to expand the
market (growing at 30% per annum) and also has improved their market share to
18%.
For the past five years private players have launched many innovations in
the industry in terms of products, market channels and advertisement of products,
agent training and customer services etc.
The various life insurers entered India:1. HDFC Standard Life Insurance Company Ltd.
OBJECTIVES
The entry of foreign MNCs and the conductive business environment
fostered by the government, it is no wonder that the re-entry of private insurance
has marked a second coming for the sector. In just five years, the sector has
undergone a makeover, offering more choice, better services, quicker settlement,
tighter regulation and greater awareness s the environment become more and more
competitive and services and products become alike, creating a differentiation is
becoming extremely tough.
Thus, this project objectives is as follows
.
To know where Reliance life insurance Company limited & life insurance
Corporation of India companies stands in the market.
Find out the strength and the weakness of their plans.
And making comparative analysis between the products of Reliance life
insurance Company limited with Life insurance Corporation of India.
LIMITATIONS
Thought the present study aims to achieve the above mentioned objectives in
full earnest and accuracy, it may be hampered due to certain limitations, some of the
limitations of this study may be summarized as follows,
This study is limited to two private insurance companies only. (Reliance life
insurance company limited & Life insurance corporation of India)
This study is limited to Bangalore city only.
And getting accurate responses from the respondents due to their inherent
problems. They may be refusing to co-operate.
Respondents may have to be contacted repeatedly or alternate respondent
may have to be identified.
For want of time is restricted.
failures. It was in the early part of the 20 th century that some kind of legislation was
made to regulate the industry. From then on life insurance made great strides in the
country.
At the time of independence and thereafter, there were more than 200
companies operating in India and not all of them on sound ethical principles. Many
factors combined together to prompt the then government to nationalize the life
insurance industry in 1956 to form the Life Insurance Corporation of India.
The years from 1956 to 1999 saw the life insurance corporation of India
emerge as a giant financial institution and the lone organization purveying life
insurance, if we ignore the minimal presence of postal life insurance. The institution
succeeded in penetrating in many areas and segments of the population and in
garnering public money for public welfare.
It was in the 1990s that the winds of change started sweeping over India and
brought in their wake many changes in the economy. Liberalization ensured
competition in many fields and there was a clamor that the insurance industry too is
opened up to Private Indian and foreign players to provide the customer with a
choice.
The Malhotra committee, appointed in 1993 was given the mandate to study
the industry and to suggest the changes that were necessary to make it modern and
in tune with peoples aspirations. The report submitted by the committee was the
precursor of the IRDA Bill.
11
By the passing of the IRDA Bill, the Insurance sector has been opened up for
the private companies to carry on insurance business. Now the life insurance
industry in India is rapidly evolving and growing. It has witnessed a big growth as
many Indian and foreign were entered in to the Indian insurance sector. The life
insurance industry in India has become fiercely competitive with the entry of
several new players including major multinational insurers after the deregulation of
the sector. It has opened up a range of untapped opportunities for new entrants into
the industry, as the potential market for buyers is high since the emerging market in
India has a low insurance penetration and high growth rates.
12
COMPANY PROFILE
Overview
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. 47.80 billion, with ICICI Bank holding a stake of
74% and Prudential plc holding 26%.
We began our operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). Today, our nation-wide
team comprises of over 2100 branches (inclusive of 1,116 micro-offices), over
290,000 advisors; and 18 bancassurance partners.
ICICI Prudential is 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 - AC Nielsen ORG Marg survey of 'Most Trusted
Brands'. As we grow our distribution, product range and customer base, we
continue to tirelessly uphold our commitment to deliver world-class financial
solutions to customers all over India.
13
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:
our growth.
Our values :
Every member of the ICICI Prudential team is committed to 5 core values:
Integrity, Customer First, Boundaryless, Ownership, and Passion. These values
shine forth in all we do, and have become the keystones of our success.
Management Profile:
Board of Director
The ICICI Prudential Life Insurance Company Limited Board comprises reputed
people from the finance industry both from India and abroad.
15
Management Team
The ICICI Prudential Life Insurance Company Limited Management team
comprises reputed people from the finance industry both from India and abroad.
Ms. Shikha Sharma, Managing Director & CEO
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, Executive Vice President Customer Service & Technology
Dr. Avijit Chatterjee, Appointed Actuary
Mr. Puneet Nanda, Executive Vice President & Chief Investment Officer
16
Date of Establishment
1 Sep. 1956
Address
1st Floor,West Wing, Mumbai Do-Iv, Yogakshema, Jeevan Bima Marg, Mumbai - 400 021, India
17
Overview
The largest life insurance company in India, Life Insurance Corporation is fully owned by the
government. It provides individual life insurance, group insurance and pension plans. Its
subsidiaries include Life Insurance Corporation of India International, LIC Nepal, LIC Lanka,
LIC Housing Finance and LICHFL Care Homes. It has over 12 million policy holders and over 9
lakh agents. It has underwritten more than 120 million policies.
LIC saw computers in 1964. Today the company is on the Internet and is utilizing Information
Technology in servicing its clients. It has bagged various award including Loyalty Awards 2008 in
Insurance Sector, NDTV Profit Business Leadership Award 2007, CNBC Awaaz Consumer
Awards 2007 and Outlook Money NDTV Profit Awards 2007.
LIC provides a rewarding career as sales agents. It offers world class training, freedom to work
and unmatched financial strength.
18
COMPANY PRODUCT
Product Details of ICICI Prudential Life Insurance Products: Life Time Gold
Premium Life Gold
Life Stage Pension
Life Time Super Pension
Hospital Care
Life Link Super
Premier Life Pension
ICICI Pru______ + MediAssure
Invest Shield Life
19
21
22
23
You can choose to retire at any age between 45 years and 65 years.
On retirement:
Annuity option:
Early retirement benefits:
24
Money plus
Auto plus
Child plan
Health plan
SWOT ANALYSIS
Strengths:
a.
b.
c.
d.
e.
f.
Dedicated Employees.
Well Efficient Management.
Technology.
Diversification of funds.
Strong and popular brand name.
Adaptability to changes.
Weakness:
a. Lack of good services.
b. Lack of awareness about insurance among people.
c. Less coverage in Rural Areas.
Opportunities:
a.
b.
c.
d.
Threats:
a. Arrival of new entrants in the insurance industry.
b. Cut throat competition within the industry
Observations
RESEARCH METHODOLOGY
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TYPE OF RESEARCH
Exploratory research:
It is usually a small-scale study undertaken to define the exact nature of a
problem and to gain a better understanding of the environment within which the
problem has occurred. It is the initial research, before more conclusive research is
under taken.
Descriptive research:
It is to provide an accurate picture of some aspects of market environment.
Descriptive research is used when the objective is to provide a systematic
description that is as factual and accurate as possible. It provides the number of time
something occurs, or frequency, lends itself to satisfied calculations such as
determining average number of occurrences.
Casual research:
26
SAMPLING PROCEDURE
27
How should the respondents be chosen? To obtain a representative sample and nonprobability sample can be drawn, they are
Judgment sample:
The researcher selects population numbers who are good prospects for
accurate information.
For collection of research data judgment-sampling technique is used where
all of them are employees of the three insurance companies as they are good
prospect for accurate information.
Primary data:
Primary data is collected through face-to face interaction with employees of
the insurance companies, by meeting them in personal.
Secondary data:
28
The secondary data used for their study are inclusive of the data
collected from the internet, catalogues and brochures and magazines.
METHODOLOGY
The study will conduct on the bases of survey through questionnaires given
to respondents.
Sampling Design
Population: Ludhiana
Sample Size: Population of 100
Sample Technique: Convenience Sampling
Statistical Tools: Correlation.
29
Forced savings
Payment of life insurance premiums is compulsory and becomes a habit.
Savings in other scheme can be easily withdrawn and may be used for less worthy
purpose. Termination of a life insurance policy by the policyholder usually results
in substantial loss in benefits under the policy to the policyholder. One is thus
encouraged to save and keep ones policy alive.
A policy holder can take a loan from his insurance company against the
Security of his life insurance policy provided the terms of the terms of his policy
allow such a loan. This loan can be taken usually after a period of 3 years from
commencement of the policy and is a percentage of its surrender value.
Investment options
The unit link products gives comprehensive insurance solutions that cater
to an individuals dual need of earning potentially high returns as well as stay for
life. Thus there is an option to invest money in the products that combine the best of
insurance and investment. In a volatile market conditions it is possible to secure
both as one can hedge the investment with saver investment vehicles that provide a
diversified portfolio.
Tax benefits
The Indian income tax act provides tax concessions to the policyholder
both on payment of premium and on the maturity amount. Under sec 88 the tax
benefits on premium paid by an individual for life insurance policies on his own
life\on the life of spouse \children minor or major, including married daughters.
Under sec 6 of the married womens property act if a married man takes a
policy of life
insurance on his own life and expenses on the face of it to be for the
benefit of his wife or of his wife and children or any of them, then it shall be
deemed to be a trust for the benefit of his wife and children or any of them,
According to the interest so expressed and shall not so long as any object of trust
remains be subject to the control of the husband or to his creditors or form part of
his estate. An insurance policy taken by a married man in the above manner is ideal
way to protect the interest of his wife and children, even after his untimely death.
CONCLUSION
33
Bibliography
34
BOOKS:
Life and Health Insurance Kenneth Black and Harold D.
Fundamental of Risk and Insurance- Emmet J Vaughan and John
Willy
WEBSITES
www.licindia .com
www.irdaindia.org
www.iciciprulife.com
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