A COMPARATIVE STUDY OF HR PRACTICES AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE

A PROJECT ON

A COMPARATIVE STUDY OF HR PRACTICES AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD (DIST PATIALA)

A project report submitted in partial fulfillment of the requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION, DISTANCE EDUCATION

GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY, HISAR (2008-2010)

RESEARCH SUPERVISOR SUBMITTED BY:

DR N.

Name BHARAT

ROLL NUMBER 2020

DIRECTORATE OF DISTANCE EDUCATION

GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY HISAR (INDIA)

CERTIFICATE

This is to certify that the project report entitled COMPARATIVE STUDY OF HR PRATICES AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE CO LTD (DIST PATIALA) submitted by Mr. BHARAT BHUSHAN of the DIRECTORATE OF DISTANCE EDUCATION GURU JAMBHESHWAR UN IVERSITY OF SCIENCE & TECHNOLOGY HISAR (INDIA) in partial fulfillment of the requirement for the degree of Master of Business Administration (MBA) is a bonafide research work completed under my guidance and supervision. No part of this project report has ever been submitted for any other degree or diploma. The assistance rendered during the course of the study has been duly acknowledged.

DR. N K SAHNI

HOD

Post Graduate dept of Commerce

& Management S.D. college

Chandigarh

DECLARATIONCertified that I BHARAT BHUSHAN of Master of Business Administration (MBA) have prepared report titled COMPATATIVE STUDY OF HR PRACTICES AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. (DIST PATIALA) under the guidance of Dr N.N. SAHNI Designation HOD in POST GRADUATE DEPT OF COMMERCE & MANAGEMENT S.D COLLEGE CHANDIGARH, in the partial fulfillment of the requirement for the degree of Master of Business Administration. There by certify that no part of this report has been submitted for any other degree.

BHARAT BHUSHAN

ROLL NUMBER 2020

MBA 2ND Year

ACNKOWLEDGEMENTThis humble endeavor bears the imprint of many persons who were in ony way of the other helpful in the completion of my final research project. I would life to take this opportunity to present my vote of thanks to my guides who acted as lighting pillars to enlighten my way through out this project. This project would not have been possible without the kind assistance and guidance of many people who indeed were helpful, cooperative and kind during the entire course of my project.

The acknowledgment would not be complete without expressing my indebtedness to my Honble Dr N.K. SAHNI who guides me in this project and was the constant source of reference for me and showed full interest at each and every step of my project.

(BHARAT BHUSHAN)

TABLE OF CONTENT

Chapter. No CONTENTSPage No.

EXECUTIVE SUMMARY6

1.INTRODUCTION7

2.INSURANCE INDUSTRY24

3.PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.38

4.IMPLEMENTING HR PRACTICES AND POLICES IN ICICI PRUDENTIAL LIFE INSURANCE CO.LTD68

5.RESEARCH OBJECTIVES82

6.RESEARCH METHODOLOGY83

7.DATA ANALYSIS AND INTERPRETATION (Finding of the Study) 85

8.SUGGESTION100

9.CONCLUSION 110

10.LIMITATIONS111

11.BIBLIOGRAPHY112

12.ANNEXTURE113

EXECUTIVE SUMMARY ICICI Prudential Life Insurance Life Insurance is one of the largest Insurance networks in the country, and 2nd Life Insurance Company in India. The ICICI Group has been in existence since 1955 when ICICI Ltd., was created. ICICI Prudential Life Insurance started in 2002 as subsidiary of ICICI Ltd., Today ICICI Life Insurance has a customer base of 4 million with total assets exceeding Rs.1, 00,000 Cr. making it the 2nd largest life insurance company in the country, next only to LIC.

The Insurance sector, after the opening up, provides greater opportunities. Several global players have emerged and the market has changed significantly. In the changed scenario, the expectation is that the low Insurance premium as a percentage of GDP prevailing in India will improve and will offer better opportunities to the insurance players.

Life Insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP is 1.3 per cent against 5.2 per cent in the US, but in the liberalized scenario, the life insurance

premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-10 and personal line non-life from Rs 4 billion to Rs 51 billion.

In the life Insurance segment the Life Insurance Corporation of India (LIC) is the major player. The LIC has 2050 branches. It is constituted in to seven Zones. Currently there are 5, 60,000 LIC agents in India. General Insurance is another segment, which has been growing at a faster pace.

Though it all can happen with good HR policies and practices that has been a part of ICICI Prudential Life Insurance.

1. INTRODUCTION

The role of Human Resources is changing as fast as technology and the global marketplace. Historically, the HR Department was viewed as administration, kept personal files and other records, managed the hiring process, and provided other administrative support to the business. Those times have changed.

The positive result of these changes is that HR professionals have the opportunity to play a more strategic role in the business. The challenge for HR managers is to keep up to date with the latest HR innovationstechnological, legal, and otherwise.

This special report will discuss the best practices in HR management for 2010in other words, how HR managers can anticipate and address some of the most challenging HR issues this year. This report will give you the information you need to know about these current HR challenges and how to most effectively manage them in your workplace.

Human resources is an increasingly broadening term with which an organization, or other human system describes the combination of traditionally administrative personnel functions with acquisition and application of skills, knowledge and experience, Employee Relations and resource planning at various levels. The field draws upon concepts developed in Industrial/Organizational Psychology and System Theory. Human resources has at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production although this perspective is changing as a function of new and ongoing research into more strategic approaches at national levels. This first usage is used more in terms of `human resources development', and can go beyond just organizations to the level of nations. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as `human resources management'. This article addresses both definitions.

The objective of human resources' development (the `s' is important in human resource`s' in that it underscores indiduality/variability) is to foster human resourcefulness through enlightened and cohesive policies in education, training, health and employment at all levels, from corporate to national (Lawrence 2000) Human resource management's objective, on the other hand, is to maximize the return on investment from the organization's human capital and minimize financial risk. It is the responsibility of human resource managers in a corporate context to conduct these activities in an effective, legal, fair, and consistent manner.

Human resource management serves these key functions:

1. Recruitment & Selection

2. Training and Development

3. Performance Evaluation and Management

4. Promotions

5. Redundancy

6. Industrial and Employee Relations

7. Record keeping of all personal data.

8. Compensation, pensions, bonuses etc in liaison with Payroll

9. Confidential advice to internal 'customers' in relation to problems at work

10. Career development

Modern analysis emphasizes that human beings are not "commodities" or "resources", but are creative and social beings in a productive enterprise. The 2000 revision of ISO 9001 in contrast requires to identify the processes, their sequence and interaction, and to define and communicate responsibilities and authorities. In general, heavily unionized nations such as France and Germany have adopted and encouraged such job descriptions especially within trade unions. The International Labour Organization also in 2001 decided to revisit, and revise its 1975 Recommendation 150 on Human Resources Development. One view of these trends is that a strong social consensus on political economy and a good social welfare system facilitates labor mobility and tends to make the entire economy more productive, as labor can develop skills and experience in various ways, and move from one enterprise to another with little controversy or difficulty in adapting. Another view is that governments should become more aware of their national role in facilitating human resources development across all sectors.

An important controversy regarding labor mobility illustrates the broader philosophical issue with usage of the phrase "human resources": governments of developing nations often regard developed nations that encourage immigration or "guest workers" as appropriating human capital that is rightfully part of the developing nation and required to further its growth as a civilization. They argue that this appropriation is similar to colonial commodity fiat wherein a colonizing European power would define an arbitrary price for natural resources, extracting which diminished national natural capital.

The debate regarding "human resources" versus human capital thus in many ways echoes the debate regarding natural resources versus natural capital. Over time the United Nations have come to more generally support the developing nations' point of view, and have requested significant offsetting "foreign aid" contributions so that a developing nation losing human capital does not lose the capacity to continue to train new people in trades, professions, and the arts.

An extreme version of this view is that historical inequities such as African slavery must be compensated by current developed nations, which benefited from stolen "human resources" as they were developing. This is an extremely controversial view, but it echoes the general theme of converting human capital to "human resources" and thus greatly diminishing its value to the host society, i.e. "Africa", as it is put to narrow imitative use as "labor" in the using society.

In a series of reports of the UN Secretary-General to the General Assembly, a broad inter-sectoral approach to developing human resourcefulness has been outlined as a priority for socio-economic development and particularly anti-poverty strategies. This calls for strategic and integrated public policies, for example in education, health, and employment sectors that promote occupational skills, knowledge and performance enhancement (Lawrence, J.E.S. 2000).

In the very narrow context of corporate "human resources" management, there is a contrasting pull to reflect and require workplace diversity that echoes the diversity of a global customer base. Foreign language and culture skills, ingenuity, humor, and careful listening, are examples of traits that such programs typically require. It would appear that these evidence a general shift through the human capital point of view to an acknowledgment that human beings do contribute much more to a productive enterprise than "work": they bring their character, their ethics, their creativity, their social connections, and in some cases even their pets and children, and alter the character of a workplace. The term corporate culture is used to characterize such processes at the organizational level.

The traditional but extremely narrow context of hiring, firing, and job description is considered a 20th century anachronism. Most corporate organizations that compete in the modern global economy have adopted a view of human capital that mirrors the modern consensus as above. Some of these, in turn, deprecate the term "human resources" as useless. Yet the term survives, and if related to `resourcefulness', has continued and emerging relevance to public policy.

In general the abstractions of macro-economics treat it this way - as it characterizes no mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific human capital" as defined in macro-economics is the modern and correct definition of "human resources" - and that this is inadequate to represent the contributions of "human resources" in any modern theory of political economy.

1.1 HUMAN RESOURCES DEVELOPMENTIn organizations, in terms of sex and selection it is important to consider carrying out a thorough job analysis to determine the level of skills/technical abilities, competencies, flexibility of the employee required etc. At this point it is important to consider both the internal and external factors that can have an effect on the recruitment of employees. The external factors are those out-with the powers of the organization and include issues such as current and future trends of the labor market e.g. skills, education level, government investment into industries etc. On the other hand internal influences are easier to control, predict and monitor, for example management styles or even the organizational culture.

In order to know the business environment in which any organization operates, three major trends should be considered:

Demographics the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc.

Diversity the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of "baby-boomers" or older employees in comparison to thirty years ago. Traditional advocates of "workplace diversity" simply advocate an employee base that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation, etc.

Skills and qualifications as industries move from manual to a more managerial professions so does the need for more highly skilled graduates. If the market is "tight" (i.e. not enough staff for the jobs), employers will have to compete for employees by offering financial rewards, community investment, etc.

In regard to how individuals respond to the changes in a labour market the following should be understood:

Geographical spread how far is the job from the individual? The distance to travel to work should be in line with the pay offered by the organization and the transportation and infrastructure of the area will also be an influencing factor in deciding who will apply for a post.

Occupational structure the norms and values of the different careers within an organization. Mahoney 1989 developed 3 different types of occupational structure namely craft (loyalty to the profession), organization career (promotion through the firm) and unstructured (lower/unskilled workers who work when needed).

Generational difference different age categories of employees have certain characteristics, for example their behavior and their expectations of the organization.

While recruitment methods are wide and varied, it is important that the job is described correctly and that any personal specifications are stated. Job recruitment methods can be through job centres, employment agencies/consultants, headhunting, and local/national newspapers. It is important that the correct media is chosen to ensure an appropriate response to the advertised post.

Human Resources Development is a framework for the expansion of human capital within an organization or (in new approaches) a municipalty, region, or nation. Human Resources Development is a combination of Training and Education, in a broad context of adequate health and employment policies, that ensures the continual improvement and growth of both the individual, the organisation, and the national human resourcefulnes. Adam Smith states,The capacities of individuals depended on their access to education.Kelly D, 2001Human Resources Development is the medium that drives the process between training and learning in a broadly fostering environment. Human Resources Development is not a defined object, but a series of organised processes, with a specific learning objective (Nadler,1984) Within a national context, it becoms a strategic approach to intersectoral linkages between health, education and employment Human Resources Development is the structure that allows for individual development, potentially satisfying the organizations, or the nation's goals. The development of the individual will benefit both the individual, the organization, or the nation and its citizens. In the corporate vision, the Human Resources Development framework views employees, as an asset to the enterprise whose value will be enhanced by development, Its primary focus is on growth and employee developmentit emphasises developing individual potential and skills (Elwood, olton and Trott 1996) Human Resources Development in this treatment can be in-room group training, tertiary or vocational courses or mentoring and coaching by senior employees with the aim for a desired outcome that will develop the individuals performance. At the level of a national strategy, it can be a broad intersectoral approach to fostering creative contributions to national productivity

At the organizational level, a successful Human Resources Development program will prepare the individual to undertake a higher level of work, organized learning over a given period of time, to provide the possibility of performance change (Nadler 1984). In these settings, Human Resources Development is the framework that focuses on the organizations competencies at the first stage, training, and then developing the employee, through education, to satisfy the organizations long-term needs and the individuals career goals and employee value to their present and future employers. Human Resources Development can be defined simply as developing the most important section of any business its human resource by, attaining or upgrading the skills and attitudes of employees at all levels in order to maximize the effectiveness of the enterprise (Kelly 2001). The people within an organization are its human resource. Human Resources Development from a business perspective is not entirely focused on the individuals growth and development, development occurs to enhance the organization's value, not solely for individual improvement. Individual education and development is a tool and a means to an end, not the end goal itself. (Elwood F. Holton II, James W. Trott Jr). The broader concept of national and more strategic attention to the development of human resources is beginning to emerge as newly independent countries face strong competition for their skilled professionals and the accompanying brain-drain they experience.

1.2 MODERN CONCEPT OF HUMAN RESOURCESThough human resources have been part of business and organizations since the first days of agriculture, the modern concept of human resources began in reaction to the efficiency focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in the United States started the human relations movement, which viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts. This movement grew throughout the middle of the 20th century, placing emphasis on how leadership, cohesion, and loyalty played important roles in organizational success. Although this view was increasingly challenged by more quantitatively rigorous and less "soft" management techniques in the 1960s and beyond, human resources development had gained a permanent role within organizations, agencies and nations, increasingly as not only an academic discipline, but as a central theme in development policy.

Human resource policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance management, employee relations and resource planning. Each company has a different set of circumstances, and so develops an individual set of human resource policies.

PurposesHR policies allow an organization to be clear with employees on:

The nature of the organization

What they should expect from the company

What the company expects of them

How policies and procedures work at your company

What is acceptable and unacceptable behaviour

The consequences of unacceptable behaviour

The establishment of policies can help an organization demonstrate, both internally and externally, that it meets requirements for diversity, ethics and training as well as its commitments in relation to regulation and corporate governance. For example, in order to dismiss an employee in accordance with employment law requirements, amongst other considerations, it will normally be necessary to meet provisions within employment contracts and collective bargaining agreements. The establishment of an HR Policy which sets out obligations, standards of behaviour and document displinary procedures, is now the standard approach to meeting these obligations.

Developing the HR PoliciesHR policies provide an organization with a mechanism to manage risk by staying up to date with current trends in employment standards and legislation.

1.3 HR POLICIES AND PROCEDURES

This factsheet gives introductory guidance. It:

Highlights the main policies and procedures that organizations need to consider

Looks at formatting a policy and sources of information

Introducing HR policies and procedures gives organizations the opportunity to offer a fair and consistent approach to managing their staff. For more on why HR policies are introduced, see our factsheet HR policies and procedures: why introduce them?11 Policy or practice areas those are crucial to effective people management and development:

Recruitment and selection

Training and learning/development

Career opportunities

Communication

Employee involvement

Team working

Performance appraisal

Pay satisfaction

Job security

job challenge/job autonomy

Work-life balance.

Not all policies and procedures will be relevant to all organizations, and some policies are required by law while others are to promote good practice.

The following paragraphs indicate the range of possible policies which apply during the employment life cycle - more detailed information and the legal requirements on each of these areas is included.

Beginning employment

Recruitment and selection

Successful recruitment depends on finding people with the necessary skills, expertise and qualifications to deliver organizational objectives and who have the ability to make a positive contribution to the values and aims of the organization. A diverse workforce that reflects customer groups in the local community should be encouraged.

Elements to consider when forming a recruitment policy:

job profile/person specification

dealing with job applications - whether to use hard copy and/or online forms; confidentiality

recruitment advertising - discrimination pitfalls

selection techniques - training and validation

interviews

references

medical examinations

asylum and immigration

documentation

job analysis

equal opportunities monitoring

return on investment (ROI)/cost.

There's more information on the website via ourRecruitment and talent management subject pages.

Induction

Designing an appropriate and cost-effective induction programme is a complex task. The programme has to find a balance between providing all the information new employees need without overwhelming or diverting them from integrating into the team.

The length and nature of the induction process will depend on the complexity of the job and the background of the new employee.

Elements of an induction policy:

organization information - background and structure; departments; products and services; physical layout

terms and conditions - hours of work; holidays, travel policy

financial - pay; bonuses; overtime; pensions

culture and values - communication

rules and procedures - data protection; email and Internet usage; equal opportunities; use of mobile phones

health and safety - first aid; smoking; environmental aspects

training

trade unions

welfare, benefits and facilities - alcohol and drugs; employee assistance programmes.

Organizations may find it useful to have checklists that cover the pre-employment period, the first day, the first week, the first month and the end of the probationary period (if applicable) to make sure everything has been explained.

There's more information on the website via ourInduction subject page.

During employment

Employee relations look at the partnership between employee and employer, covering areas such as communication, grievances and discipline. It is equally important in both union and non-union situations. While employment law is closely linked with managing employee relations, a successful organization won't just base its actions on compliance with the law - exploring the concept of the psychological contract, based on trust between employee and employer, may also be useful.

Policies and procedures that organizations may introduce include:

health and safety

disciplinary and grievance

maternity and paternity leave and pay

redundancy

absence

whistle blowing

performance management

recognition agreements (union and other)

time off and leave for trade union activities, holidays, secondment, volunteering, eldercare, childcare, bereavement

communication and involvement, including employee voice

harassment and bullying.

There's more information on many of these issues on the website via our HR practice,Health, safety and wellbeing andEmployment law subjectpages.

Managing diversity

Diversity runs through all aspects of an organizations policies. Managing and valuing diversity is central to good people management and makes good business sense, so it also makes sense for diversity to be integral within all policies. A diversity policy sets out the organisation's vision and values in relation to diversity. It will often include the remit of polices, the processes for taking action, who is responsible and the training available.

The basic premise is that people should be valued as individuals and for reasons related to business interests, as well as for moral and social reasons. A more diverse workforce is likely to offer a wider range of skills and experiences and greater flexibility to meet business challenges.

Elements of a diversity policy:

gender/sex equality

race equality

sexual orientation

religion

age

appearance/accent

formats and accessibility of policies and procedures.

Learning, training and development

Roles and responsibilities are constantly changing, so employees will need to continually renew and refresh their skills and competences through training. This can happen in the course of normal working (on-the-job training) or away from the workplace (off-the-job training).

Some training is mandatory to comply with legal requirements, such as health and safety or finance.

Elements of a learning and development policy:

the organizations vision for learning and development

opportunities available, including secondment, career breaks, courses, coaching, mentoring

who to ask to get authorization for training

support given for learning opportunities

development reviews and personal development plans

payment of professional fees

training available for 'peripheral' workers ie contractors, temporary staff

record-keeping and administration

continuing professional development and personal development allowances (if these are not part of the employee benefits statement)

follow-up actions and transfer of learning to work.

Reward

Effective reward practices and procedures can underpin activities in recruitment, retention, turnover and engagement. Effective implementation and communication are essential for initiatives to succeed.

Reward policies should be clear and simple so that employees know what's expected of them and what they can expect to receive in return.

Elements of a reward policy:

the organizations vision for reward, including market rates, extra responsibility allowances

how jobs are graded or evaluated

pensions/additional voluntary contributions

permanent health insurance/critical illness cover

bonuses and incentive pay

benefits and non-cash recognition

company cars

sick pay

pay reviews

equal pay.

Complementary policies

Other policies that organizations may want to consider in relation to employment include:

a mission or values statement

parental leave

work-life balance/family-friendly work practices disability

well-being and 'wellness'

green/sustainable development

the employment of relatives/friends

conflict of interest, including personal relationships

second jobs

confidentiality

bad weather/climate conditions

relocation

suggestion schemes.

Ending employment

There are many reasons why employment ceases, from voluntary resignation to dismissal or redundancy.

Areas to consider for ending employment include:

dismissal

redundancy

voluntary resignation

retirement - retirement age; pre-retirement courses; phased retirement options

end of a short-term contract

end of a probationary period

death in service.

Exit surveys can record information about why employees say they are leaving. But the data is not always reliable. Another way to discover the reasons why is through opinion surveys during employment.

Formatting a policy

Policies should be written in plain English, so that they are user-friendly and easily understood by all employees.

The culture of the organization and the complexity of the policies will dictate the format. Options include:

separate manager and employee manuals

all policies available on an intranet

key policies on notice boards.

Policies should also indicate who to go to with queries about the content and who is responsible for updating and reviewing them.

Sourcing information

When developing policies and procedures there are many sources of information available. The following list gives an indication of further help but is not an exhaustive list.

2. INSURANCE INDUSTRY INSURANCE is basically a sharing device. The losses to assist resulting from natural calamities like fire, flood, earthquake, accidents, etc. are not met out of common pool contributed by large number of persons who are exposed to similar risks. This contribution of many is used to pay the losses suffered by the few. However the basic principle is that loss should occur as a result of natural calamities or unexpected events, which are beyond the human control. Secondly insured person should not make any gains out of insurance.

It is natural to think of insurance of physical assets such as motorcar insurance or fire insurance but often we forget that creator of all these assets is human being whose efforts have gone a long way in building up the assets. In that sense, human life is a unique income-generating asset. Unlike the physical assets, which decrease in value with the passage of time, the individual becomes more experienced and more matured as he advances in age. This raises his earning capacity and the purpose of life insurance is to protect the income of individual and provide financial security to his family, which is dependent on his income in the event of his premature death. The individual himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of savings in certain cases.

Insurance is related to the protection of the economic value of the asset. Every asset has a value .The asset would have been created through the effort of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. In the case of the factor or a cow, the production is sold and income generated. In the case of a motorcar, it provides comfort and convenience in transportation. There is no direct income. There is normally expected life time for the asset during which time it is expected to perform. the owner, aware of this , can so manage his affairs that by the end of that life time, a substitute is made available to ensure that the value, or income is not lost, however , if the asset get lost earlier, being destroyed or made non functional, through an accident or other unfortunate event, the owner and those deriving benefits therefore suffer. Insurance is a mechanism that helps to reduce such adverse consequences.Objectives of life Insurance

There are many reasons for investing in life insurance policies, such as: 1. Protection for the Family

The most important objective of life insurance is to provide financial protection for the family in case of an unexpected and premature death of its breadwinner. The purpose is to protect the dependents against the loss of earning power of the insured through death or disability. Those who have insured their lives for an adequate sum can live in peace and comfort, free of the gnawing worry of what would happen to their families in the event of their sudden and premature death. Life insurance has long been recognized as a necessary and essential element in a family's total financial program.

2.Regular Savings

Saving is not a physical need, unlike hunger or sleep. Many of us may not save unless there is compulsion to do so. For such people, life insurance is a compulsory, regular savings scheme, especially the monthly salary savings schemes.

Even if you do not subscribe to the salary savings scheme, you can issue standing instructions to your bankers to pay the premium regularly without reference to you.

The element of savings in a life insurance contract should be understood in a proper perspective. Typically, life insurance is made available on the basis of equated periodical payments. In the initial years, you tend to pay more compared to the risk factor. Strictly, speaking, the 'savings' aspect in a life insurance policy should not be compared with other pure savings media.

3.Tax Benefits

There is a tax rebate under Section 88 on life insurance premium. Many investors, especially those in higher tax brackets, used to buy life insurance mainly to take advantage of these tax benefits. Additional tax benefits are available under Section 80DD and Section 80CCC applicable to specific schemes. Hence, attractiveness from the tax angle has come down. 4. Housing Finance

One of the easier ways of acquiring a house property is through a loan under the various scheme of ICICI pru life, under which a life insurance policy is accepted as a collateral security. The proceeds of the policy can be adjusted towards the housing loan. To enjoy this loan facility, many people even go in for additional life insurance. However, with the advent of HDFC and various other housing finance schemes, you have alternatives to choose from.

Advantages of Life Insurance

Protection against risk of untimely death.

Protection during old age

Forced savings

Educational requirements and charity

Nomination and assignment

Marketability and suitability for borrowing.

Loans from the Insurance Company

Tax benefits

Protection to wife and children

2.1 IMPORTANCE OF INSURANCE

A) Beneficial to an individual:

1) Insurance provides security and safety. In case of life insurance payment is made when death occurs or the term of insurance is expired.

2.) Insurance affords peace of mind. A sense of security removes all tensions and fears. It stimulate to more and better work. By means of insurance much of the uncertainty that centers round the modern life may be eliminated. 3) Insurance eliminates dependency. The insurance provides adequate amount to the dependents at the early death of the property owner to pay off the unpaid loan.

4.) Insurance eliminated dependency. In the event of death of the bread winner of the family or destruction of property, the family suffers a lot. The insurance assists the family and provides adequate amount at the time of need.

5) Life Insurance encourages saving. Systematic saving is possible because regular premium are required to be compulsorily paid. Unlike bank deposits the deposited insurance premiums can not be withdrawn. Life Insurance is the best media of saving.

6) Life Insurance provides profitable investment. The elements of investment i.e. regular saving capital formation and return of the capital are observed in life insurance. In India in insurance policies carry the exemption from the income tax and estate duty.

7.) Life Insurance fulfills the needs of a person. The need of a person may be divided into (I) Family needs, (ii) old age needs, (iii) re-adjustment needs and(iv) special needs including needs for education, marriage settlement of children etc. (v) clean up funds for ritual ceremonies, payment of taxes etc. Insurance comes to help for meeting requirements.

(b) Beneficial to Business:

Insurance has been useful of the business society in more than one way.

(i)It reduces uncertainty of business losses. As a huge number ofproperties are employed in commerce and industry equally great risks areinvolved in day to day functioning. The owner of the business might foreseecontingencies that would bring great loss. By purchasing a policy he can besured of his earnings.

(ii)Business efficiency is increased with insurance. A businessman getsfree from unnecessary botherations and can devote more care and energy tomaximize his profits.

(iii)Keyman indemnification. Persons having expertise, experience, ability to control the business are most important for the employers. Death of such persons proves a more serious loss then that by fire. The compensation to the dependents of such employers requires adequate provision which can be met by purchasing life policies.

(iv) Addition in credit. The business can obtained loan by pledging the policy as collateral security for the loan. As the assets are insured therefore, in the event of loss the compensation can be paid. (v)Business Continuation. The partnership business may be discontinued at the death of a partner. The insurance policy provide adequate funds at the time of death therefore, the legal representative can be paid easily. (vi)Employee Welfare. Provision for welfare for employees can be made by the life insurance in case of accident or sickness benefit and pensions.

(c) Beneficial to Society:

(i) Wealth of society is protected. Insurance provides loss of human wealth. Loss of damage of property can also be indemnified by the insurance company.

(ii)Economic growth of the company. As insurance provides protectionagainst loss of property thus, if any such damage arise the assets can bereplaced without loss of production thus, Economic development of thecountry is not effected.

(iii)Accelerate the production growth. Adequate capital from Insurancecompany can accelerate production circle in the country. Economic growthof the country is not only assured but the process of growth is acceleratedwhich is more essential in a country like India where the population isincreasing very fast.

(iv)Reduction in inflation. The insurance company in the form of premiumget lot of money supply from the public which insurance corporation putinto production thus the money which would have come into circulationmight have gone for productive purposes.

2.2 TYPES OF PLANS OR POLICIES

On the basis of insurance objective, basic plans offered by insurers can be classified under three broad categories: Pure insurance products (term plan), pure investment products (pension plan) and investment-cum-insurance products (endowment, money-back, whole-life and unit-linked insurance plans). Increasingly, insurers are launching hybrid variants of these plain-vanilla plans.

1.Term plan

Term plans are the purest from of insurance. These are no-frills policies that cover only the risk of your dying. In the event of your death during the policy term, your nominees receive the cover amountin insurance parlance, the 'sum assured'; you get no benefits if you survive the policy term. Since the entire premium paid by you ---the cost of buying insurance cover---on term policies goes towards covering the risk of your life, insurers offer you this cover at the least cost.

2.Endowment plans

While term plans covers just the risk of death, endowment plans also offer some return on the premium is paid by you. So, if you die during the policy term, your nominee gets the sum assured plus some returns; if you survive the policy term, you still get back the sum assured and returns. As much as this "money if you die, money if you live philosophy is an enticing proposition, it comes at a price; high premiums, which drag down the returns from endowment plans, to barely 4-6 per cent a year. In an endowment plan, you pay premiums for a pre-defined tenure and sum assured. The premium will depend upon your age, the sum assured, the plans tenure and the nature of returns. A portion of the premium paid by you is invested by the insures on your behalf. Another portion goes towards your cover and a third towards meeting the insurer's administrative expenses, which lowers the effective yield on your investment in endowment plans.3.Money back plans

Money back plans are variant of endowment plans, with one basic difference: unlike endowment plans, where the survival benefits are distributed at the end of the policy term, the pay back in money -back plans is staggered through the policy term. Typically, a part of the sum assured is returned to you at periodic intervals through the policy tenure.4.Whole-life plan

The three categories of insurance plans mentioned above provide you life cover for a defined period, up to a certain age (generally, 70 years), Whole-life plan, on other hand, provide you cover through your lifetime---the only class of insurance policies to do so. Typically, whole-life plan are structured such that the policyholder has the option to pay premium up to a certain age (referred to as the 'maturity age' which is generally 80-100 years) or for a specified period. On reaching maturity age, the insurer gives you the option to either continue with the cover through the lifetime (for which no further premiums will have to be paid) or encash the maturity benefits (sum assured plus bonuses). Some insurers do give the option to encash the bonus during the term per it self, which can serve as a useful income stream during your later years, if you so desire.

5.Unit-linked insurance plans

In insurance-cum investment plans of the kind listed above, you have little say in where your money is invested. Your insurer too is governed by certain investment restrictions: it can invest just 10 per cent of the premium paid by you in equities; the greater chunk of 90 percent has to be invested in debt paper. While such restrictions are intended to insure safety of your investment, they also lead to rigidity in investment are rein in your returns to low single digits. Unit-linked insurance plans get around such restrictions, by giving you greater control over where your premium is invested.

Think of them as insurance plans that double as mutual funds. The annual premium you pay on unit-linked plans is linked to the sum assured and the policy tenure. You can switch from one plan to another free of cost once a year (a nominal amount is charged for additional switches). So, if you think stocks are going cheap, you can move to the growth plan; or, if you think stocks are overvalued, you can move your money to the income plan. You can switch from one plan to another free of cost once a year (a nominal amount is charged for additional switches). So, if you think stocks are going cheap, you can move to the growth plan; or, if you think stocks are overvalued, you can move your money to the income plan.6.Pension plan

Pension plan differ from the five types of the insurance plan mentioned above in the fundamental way; not all of them of life over. So, why we are talking about them here?

Because pension plan feature among the bevy of products offered by insurers and are pitched as retirement planning a schemes, similar to other investment-based insurance plans. Pension plans are investment options that let you set up an income stream in your post-retirement years by routing your savings through an insurer, who invests it on your behalf for a free. The precise returns you will get depend upon several factors: your age begin when you investing, the contribution you make, your investment preferences based on your risk profile, the age at which you want the money to start coming back to you, and the number of years for which you want the returns.

2.3 FUNCTIONS OF INSURANCE

a) Primary Functions

(I)Certainty of Compensation of Loss: Insurance provides certaintyof payment at the uncertainty of loss. The element of uncertainty isreduced by better planning and administration. The insurer chargespremium for providing certainty. Life is always full of risks. Lifewithout risks and uncertainties is unthinkable. Man has alwaysencountered risks of various types since the inception ofcivilization. Minor risks can be ignored but the major risks cannotbe ignored and their avoidance is desirable. One of the ways ortechniques of meeting the risks loss prevention and insurance.Insurance removes all uncertainties and the assured is givencertainty of payment of loss. The insurer charges premium forproviding the said certainty.

(ii)Insurance provides protection: The risk will occur or not, when willoccur, how much loss will be there? There are uncertainties of happenings oftime and amount of loss. The main function of the insurance is to provideprotection against the probable chances of loss. The insurance cannot check the happening of risk. The insurer gives certainty of payment of loss to the assured by charging premium.

(iii)Risk sharing: Risk is uncertain and therefore, the arising from the risk is also uncertain. All business concerns face the problem of risk and if the concern is big enough the handling of risk become a specialized function. Risk and insurance are interwoven with each other. Insurance, as a device is the outcome of the existence of various risks in our day to day life. It does not eliminate risks but it reduce the financial loss caused by risks. Insurance speeds the whole loss over the large number of persons who are exposed by a particular risk.

(b) Secondary Function

(I) Prevention of loss: Prevention is always better than cure. Prevention of loss is by far the best solution to the problem of risk. It is the most effective and cheapest method to avoid the unfortunate consequences. By having the fire resistant construction, observing safety instructions, installation of automatic sparker system etc. fore can be prevented. Similarly better roads, better lights and better traffic regulations automobile accidents can be prolonged. But some times prevention of protection is not always possible and effective. When prevention fails other methods must be adopted. The insurance joins hands with those institutions which are actively engaged in preventing the losses of the society. Reduction in loss causes lesser payment to the assured and so more saving is possible which will assist in reducing the premium. Lesser premium invites more business and more business in its turn results in lesser share to the assured. Reduced premiums stimulate more business and more and better protection to the insured

(ii)It provides capital: It provides capital to the society. For planneddevelopment of a country there is great need for huge amount of capital. Theaccumulated funds are invested in providing proper infrastructure and ininvesting in productive channel. Now a day, the insurance companies arerendering positive help in the development of trade, commerce andindustries of a country through different scheme of investment. A country'snatural resources can be exploited with long term and huge amount ofinvestment by the insurance companies.

(iii)Adequate Financial cover: The need of insurance is largely felt to givea cover to the rural areas and to the socially and economically backwardclasses with a view to reach all insurable person in the country and providethem adequate financial cover against death at a reasonable cost.

(iv)Mobilization of Savings: In insurance the savings of masses is collectedby insurance corporations.

(v)Investment: When funds are invested the interest of the community is kept in mind.

2.4 CONTRACT OF INSURANCE

1. Life Insurance can be defined as a contract, where for stipulated considerations called the premium the insurer agrees to pay the insured or a beneficiary, a defined amount upon the occurrence of death or some other specified event.

2. A contract of insurance is a contract of utmost good faith, technically known as 'Ubermiea fides'. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.

3. The Proposer, who is one of the parties of the contract, is presumed to have means of knowledge, which are not accessible to the Company, who is the other party to contract. Therefore, the Proposer is bound to tell the insurer everything, which might affect the judgments of the insurer, no matter how unimportant it may seem to him. In all the contracts of insurance, the Proposer is bound to make full disclosure of all material facts and not merely those, which he thinks material.

4. Misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk automatically discharges the Company from all liability under the contract the client loses out.Insurable Interest

An Insurable interest is one of the most basic of all requirements in insurance & it must be met for an insurance contract to be valid.

The Principle of Indemnity cannot be applied & does not apply to a Life Insurance contract because of the difficulty of putting a monetary value on the human life. However, here also Insurable Interest must be present to distinguish the contract from a mere gamble.

The Insurable Interest must:

Be definite

Be capable of valuation

Be legally valid & subsisting

Involve a loss of a legal right

2.5 INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:

I)STRUCTURE

Government stake in the insurance Companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

II)COMPETITION

>Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the sector.

No Company should deal in both Life and General Insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

Postal Life Insurance should be allowed to operate in the rural market.

Only one State Level Life Insurance Company should be allowed to operate in each state.

III)REGULATORY BODY

The Insurance Act should be changed.

An Insurance Regulatory body should be set up.

Controller of Insurance- a part of the Finance Ministry- should be made independent

IV)INVESTMENTS

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%.

GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time)

V)CUSTOMER SERVICE

LIC should pay interest on delays in payments beyond 30 days.

Insurance companies must be encouraged to set up unit linked pension plans.

> Computerization of operations and updating of technology to be carried out in the insurance industry.

The committee emphasized that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body2.6 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of

institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 151ife insurance and 15 non-life insurance companies have been registered.2.7 ENTRY OF PRIVATE PLAYERS

The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LlC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. The following companies are present in the Life Insurance Industry in India.

Bajaj Allianz Life Insurance Company Limited.

Birla Sun Life Insurance Co. Ltd

HDFC Standard Life Insurance Co. Ltd

ICICI Prudential Life Insurance Life Insurance Co. Ltd

ING Vysya Life Insurance Company Pvt. Ltd.

Life Insurance Corporation. of India

Max New York Life Insurance Co. Ltd

Met Life India Insurance Company Pvt. Ltd.

Kotak Mahindra Old Mutual Life Insurance Limited

SBI Life Insurance Co. Ltd

Tata AIG Life Insurance Company Limited

Reliance Life Insurance Company Limited.

Aviva Life Insurance Co. India Pvt. Ltd.

Sahara India Life Insurance Co, Ltd.

Shriram Life Insurance Co, Ltd.

Bharti AXA Life Insurance Company Ltd.

3. COMPANY PROFILE

ICICI Prudential Life Insurance 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 Life Insurance 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 Insurance''s equity base stands at Rs. 675 crore with ICICI Bank and Prudential plc holding 55% and 45% stake respectively. In the quarter ended June 30, 2004, the company issued over 100,000 policies, for a total sum assured of over Rs 3,753 crore and had a new business premium income of Rs. 242 crore. Today the company is the #1 private life insurers in the country.3.1 GROWTH PATTERN

ICICI Prudential Life Insurance has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 62 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar, Chandigarh, Chennai, Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vashi, Vijayawada and Vizag.

The company has ten bancassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, as well as some co-operative banks and corporate agents. It has also tied up with organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society.

ICICI Prudential Life Insurance has recruited and trained over 36,000 insurance agents to interface with and advice customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. ICICI Pru in the News ICICI Pru has 40% of private life insurance market The Economic Times: March 1, 2004

Prudential seeks to replicate ICICI Pru success The Economic Times: March 13, 2004

Best Life Insurer Award Outlook Money: March 15, 2004

ICICI Prudential Life Insurance Life hikes capital to Rs 675 cr The Economic Times: March 17, 2004

ICICI Pru tops premium income chart Business Standard: April 15, 2004

3.2 ORGANIZATIONAL STRUCTUREBoard of DirectorsThe ICICI Prudential Life Insurance Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.

Mr. Ajay Srinivasan

Ms. Shikha Sharma

Mr. N. S kannan.

Mr. K. S. Mehta

Mr. Dadi Engineer

Mr. Pradip P. Shah

Dr. (Mrs.) Swati A. Piramal

Mr. Pankaj Razdan

Management Team Ms. Shikha Sharma, Managing Director Mr. Sandeep Batra, Chief Financial Officer & Company Secretary Mr. Shubhro J. Mitra, Chief - Human Resources Mr. Puneet Nanda, Head - InvestmentsMs. Anita Pai, Chief -Customer Service and Operations Mr. V. Rajagopalan, Appointed Actuary Mr. Shridhar Sethuram, Chief - Strategy

3.3 STRUCTURE AND GROWTH OF INVESTMENTICICI 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 Life Insurance, with a commitment to provide leading-edge life insurance solutions.

ICICI Bank has 45% stake in the company, and Prudential plc has 55%.

ICICI Bank

ICICI Bank (NYSE:IBN) is India''s 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 services 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 centre and Internet banking (www.icicibank.com). ICICI Bank posted a net profit of Rs.1, 206 crore for the year ended March 31, 2003. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency Moody''s 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 leading Indian rating agencies. 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 services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is UK''s 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.

Underwriting

Underwriting at ICICI Prudential Life Insurance is designed to ensure that the best lives are taken in the risk pool and at the same time assist sales in getting more policies.

Underwriting at ICICI Prudential Life Insurance is divided into the following categories:

1. Non-Medical underwriting or jet underwriting

2. Standard Medical underwriting

3. Medical underwriting

4. Female underwriting

Non-Medical Underwriting or Jet UnderwritingDefinition:

1. Educated life earning regular income through employment

2. Professionally qualified life earning regular income through practice

3. Businessmen with gross income of Rs. 2 lakh as proved by ITR for the last financial year

Maximum age at entry: 45 years

Maximum Premium Ceasing age: 65 years

Minimum service:

Employed with the government defense, PSUs, Public or Private Ltd. Co.s only.

Employees of partnership firms and proprietorship firms will not qualify.

Qualifying Documents:

For Employed: -

1. Salary certificate / slip (authentication by employer not necessary)

2. Appointment letter given by employer

3. Tax returns for last one year (last financial year)

4. Form 16

For Professionals: -

1. Copy of degree certificate signed by the life assured

2. self declaration by professional on his printed letter head mentioning the year and place of obtaining the professional degree and years of practice

3. Tax returns for last 1 year (last financial year end)

For Businessmen: -

1. Tax returns for last 1 year (last financial year end) showing income above 2 lakhs

Plans allowed: All plans other than Lifeguard series

Riders Allowed: All

Maximum limit for eligible plan SA+ Rider SA (duly rated up but not including non-medical plans)

18 to 35 years: Rs. 10 lakhs death risk

36 to 45 years: Rs. 5 lakhs death risk

Standard Medical Underwriting

Cases that do not fall under jet i.e., non medical such cases go through medical. The simplest medical examination is called as SME- Standard medical examination and a majority or policies sold fall under this category.

Medical underwriting

For cases that have high sum assure and high ages or the underwriter feels that their needs to be more security before issuance-certain medical tests are conducted

Female underwriting

Female underwriting is divided into three groups. Special underwriting norms are required for female lives because of health profile, pregnancy related issues and the varied socio-economic profile3.4 APPLICATION FORM & LOG- IN PROCESS

There are lot of processes & activities that take place while the proposal pack is converted into the policy. The process that takes place is called the sales process. At the very outset, it may be said that there are three basic stages, which are as follows: -

The Advisor customer Interface: This is the stage where after the Advisor has offered a solution using our companys products, he has the application form filled up by the client. Along with this, the other documents that comprise the proposal pack are also collected.

The Advisor Branch Interface: In this second stage, the Advisor submit the proposal to the branch office of the company, where after checking for the completeness of the proposal pack, the acknowledgement slip is handed over to the advisor, along with the medical slips.

Business process: Here we are referring to the actual processing of the applications. This would happens once more as one of the three processes

1. Process for Jet Cases

2. Process for Standard Medical cases3. Process for Medical casesAdvisor confidential Report:

Here are the guidelines to be followed while filling up the Advisor Confidential Report

a. Do fill up the information on the identity of life Assured

b. Mention the purpose of insurance for client

c. Provide details as available on the occupation of life assured

d. Do mention his relation with the life assured or proposer

e. Mention about income & assets details

f. Details about other insurance policies would be disclosed

g. The general risk factors would help us to know if there are some hobbies or financial or social position or personal habits that would impact the risk profile of the life to be assured.

Proposal Pack:Here are the documents that comprises a proposal pack

Completed application form.

Proof of age

Computer generated Quotation Slip, which is included in proposal pack

Benefit illustration of the products

First Premium Deposit cheque, / Demand draft / bank pay order.

Ensure that the application no. is written behind the cheque, DD

Income Proof

Advisors confidential Report

Client Confidential Report

Application form:

The client should countersign all cuttings, overwriting

All the fields in the application form should be filled

Ensure that the application form is filled with same colour ink

Age proof (standard)

Date of birth / name match with that on form

If the life assured is married woman, a marriage certificate or maiden name declaration should be disclosed

The information provided in the age proof should be legible.

Age proof (Non-standard)

Date of birth / name does not match with that on form

Document provided is not legible

Document provided is not valid

The death risk exceeds Rs. 3 lakh

The cover ceasing age for the person is more than 60 years.

Quotation slip

1. Details on the computerized quotation slip does not match with those mentioned on the Application form

2. For Non Standard Age proof, extra premium charged not included in the Quotation slip

Payments details

1. The first premium amount is lesser than Rs. 800

2. For monthly mode of premium payment, the cheque is enclosed for one month

3. Unacceptable if third party issued cheque

4. For monthly mode of payment, the ECS form is not attached

Other Documents

1. Jet documents not attested by life assured

2. In case of student life, copy of recent ID card/ mark sheet not enclosed.

3. Income proof not enclosed as per requirements.

Certain Pointers

The advisor must not accept cash payments from the client. Cash will be accepted only by sales officer at the branch.

See that the form has been filled in the capitals and in legible handwriting & dark ink

The application number should be written behind the cheque

Take the appointment with the doctor as per the doctor list on the behalf of the client and inform as to what medical test he/ she will need to undergo

Give to the client both the copies of Medical examination slip.

The advisor code should be mentioned on the Application form.3.5 PERFORMANCE & PRODUCTS OF ICICI PRUDENTIAL LIFE INSURANCEInsurance Solutions for Individuals

ICICI Prudential Life Insurance Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its 19 products can be enhanced with up to 6 riders, to create a customized solution for each policyholder.

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.

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 child''s marriage, expenses for a child''s higher education or purchase of an asset.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.

Child Plans

SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child''s life. SmartKid plans are also available in unit-linked form - both single premium and regular premium.

Market-linked Solutions

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.

LifeTime II offers customers the flexibility and control to customize the policy to meet the changing needs at different life stages. It offers 4 fund options - Preserver, Protector, Balancer and Maximiser.

Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75.

Retirement Solutions

ForeverLife is a retirement product targeted at individuals in their thirties.

SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover.Market-linked retirement products

LifeTime PensionII is a regular premium market-linked pension plan

LifeLink Pension II is a single premium market-linked pension plan.

ICICI Prudential Life Insurance also launched ''Salaam Zindagi'', a social sector group insurance policy targeted at the economically underprivileged sections of the society.

Group Insurance Solutions

ICICI Prudential Life Insurance also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru''s group gratuity plan helps employers fund 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 commutation of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Pru''s flexible group term solution helps provide 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.

TERMINOLOGIES

1. DB: Death benefit: Benefit paid in a life insurance policy or an annuity plan with live cover in the event of the life assured passing away during the term

2. LA: Life assured: Person who is insured under the plan.

3. SA: Sum Assured: Amount of money for which the insurance is taken.

4. VB: Vested Bonus: Bonuses that have accrued over the term of the plan in with profits plans.

5. PP: Purchase Price: The accumulation of the money in a deferred annuity plan.

6. GA: Guaranteed Additions: Guaranteed return that the insurer adds to the sum assured.

7. Prospect: Individual that has the potential to purchase a life insurance policy i.e. age, health and money.

8. Prosper: The person who buys the policy-prosper and life assured can be the same person or different-but should fulfill the principle of insurable interest.

9. Annuitant: The policyholder who has pension / annuity plan.

10. Nominee: The custodian to the claim-may or may not be the rightful owner to the claim money.

11. Claimant: The person who makes the claim.

12. Beneficiary: The rightful successor to the claim.3.6 DIFFERENT PRODUCTS

SAVE N PROTECT

Savenprotect is a with profits endowment plan with FREE extended life cover.

The prospect has to choose the term & a sum assured for this plan. The plan provides plan cover during the term of the plan. After the term is over, on maturity the policyholder is paid the sum assured (SA) along with the bonuses that have accrued on the policy.

After maturity the policyholder is provided with free cover for 50% of the basic sum assured that have been taken for next 5 years. Thus this plan is of a great advantage when it comes to providing protection. The unique benefits provided is known as Extended Life Cover (ELC)

GENERAL FEATURES

Surrender: The plan can be surrendered after three policy years has been completed.

Loans: Are available on the policy and can be taken after the policy acquires the surrender value. Rate of interest changed will depend upon the interest rate as of that time.

Paid-up: The policy can acquire a paid up value after a period of three years.

Tax benefits: The plan carries the Sec 88 on the premium paid and Sec 10(10) d benefit on death and maturity claim. The tax benefits are subjects to tax laws and are not an integral features of Saven Protect.

SAVENPROTECT AT A GLANCE

Minimum sum assured Rs 50,000

Maximum sum assuredRs 1,00,00,000

Minimum PremiumYearly- Rs 6,000

Half yearly-Rs 3,000

Monthly- Rs 500

Minimum age at entry 0 Years

Maximum age at entry60 Years

Minimum maturity age18 Years

Maximum maturity age70 Years

Minimum term10 Years

Maximum term 30 Years

Sum assured in multiples of Rs 1,000/-

Premium payment frequenciesYearly, half Yearly, & monthly.

Premium payment periodEntire term of the plan

Benefit coverage periodEntire term of the policy+ 5 Years after maturity(50%of sum assured under ELC )

Death benefit ---------

Age7years ----------

ELC period50% of sum assured in case the policy holder dies during the 5 Years Extended Term.

Maturity benefitsS.A +G.A @ 3.5% compounded annually (for the first 4 Years)+V.B(if any & after 4 Years).

Surrender/Paid upAfter 3 full years premiums have been paid.

LoansAllowed after the surrender value period.

CASH BAK

CashBak is with profits anticipated endowment plan. This plan provides liquidity at the regular intervals of time and also help in saving money.

General features

Surrender: The plan can be surrendered after three policy years have been completed.

Loans: The Company in CashBak provides no loans as regular payouts are available to policyholders

Paid-up: The policy can acquire a paid-up value after a period of three years.

Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10) d benefit on death and maturity claim. The tax benefits are subject to tax laws and are not an integral feature of CashBak.

Target market

1. Young people of the age group 20-30 years who have just started a career and family.

Minimum sum assured Rs 75,000

Maximum sum assuredRs 1,00,00,000

Minimum PremiumYearly- Rs 6,000

Half yearly-Rs 3,000

Monthly- Rs 500

Minimum age at entry 16 Years

Maximum age at entry55 Years

Minimum maturity ageNot Applicable

Maximum maturity age70 Years

Minimum term15 Years

Maximum term 20 Years

Sum assured in multiples of Rs 1,000/-

Premium payment frequenciesYearly, half Yearly, & monthly.

Premium payment periodEntire term of the plan

Benefit coverage periodEntire term of the policy.

Death benefit during the term of the policyS.A+G.A@3.5%+Vested bonus (if any)

Maturity benefits50% of Sum assured @ 3.5%G.A compounded annually (for the first 4 Years)+V.B (if any & after 4 Years).

Surrender/Paid upAfter 3 full years premiums have been paid.

LoansNo Loans

Riders AllowedCritical Illness Benefit Rider (CIBR)

Major Surgical Assistance Rider (MSAR)

Accident & Disability Benefit Rider (ADBR)

Accident Benefit Rider)

2. Income group of minimum Rs 10,000 per month.

3. Middle-aged professionals, service holders and businessmen.CASHBAK AT A GLANCELIFE GUARDLife Guard is the term insurance solutions from ICICI Prudential Life Insurance. These plans provide with optimum financial protection in case death. These plans are extremely reasonable and are so cost effective that you just cant afford not to have one.

In this group of term insurance solutions there are three variants:

1. LifeGuard Return of Premium (ROP)

2. LifeGuard Without Return of Premium (WROP)

3. LifeGuard Singe Premium (SP)

Life Guard ROP

In this variant the premiums that are paid by the policyholder are returned at the end of the term i.e., on maturity to the policyholder.

Thus this plan serves to provide life protection and at the end of term the money paid which accumulates to be a substantial amount is received on maturity.

Moreover, this plan provides with the facility of FREE Extended Life Cover after maturity which adds to the protection that LifeGuard ROP so excellently provides.

General features

Surrender: The plan can be surrendered after three policy years have been completed.

Loans: No loans are available

Paid-up: The policy can acquire a paid up value after a period of three years.

Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10) d benefit on death and maturity claim. The tax benefits are subject to tax laws and are not an integral feature of LifeGuard ROP

LIFEGUARD-ROP AT A GLANCE Minimum sum assured Rs 1,00,000

Maximum sum assuredRs 1,00,00,000

Minimum PremiumYearly- Rs 6,000

Half yearly-Rs 3,000

Monthly- Rs 500

Minimum age at entry 18 Years

Maximum age at entry50 Years

Maximum maturity age65Years

Minimum term5 Years

Maximum term 25 Years

Sum assured in multiples of Rs 1,000/-

Premium payment frequenciesYearly, half Yearly, & monthly.

Premium payment periodEntire term of the plan

Benefit coverage periodTerm of The policy

Death benefitThe entire Sum assured

Maturity BenefitSum of Premiums paid & FREE ELC for 50% OF the SA

For next 5 Years.

Riders AllowedAccident & Disability Benefit Rider (ADBR)

Accident Benefit Rider (ABR)

Waiver of Premium rider(WOPR)

Surrender/Paid upAfter 3 full years premiums have been paid.

LoansNo Loans

RemarksMinimum annual premium Needs to be Rs 2,400

LIFEGUARD-WROP

This is the most cost effective policy to have life insurance. This plan Provides Life protection in the most effective way & it is as inexpensive as your daily newspaper.

For a healthy 30-Years old Male, SA of Rs 1 lakh & premium paid Yearly, the premium on LifeGuard WROP would be Rs 0.88 per Day for a period of 5 years.

Features of LifeGuardWROP

Features of WROP are in many ways similar-however the features that differentiate it from LifeGuard ROP are mentioned here for your understanding:

Death Benefit

The beneficiary/nominee gets 100% of the sum assured in case of the death of the policyholder.

There is no ELC in LifeGuard WROP

Maturity Benefit

NO maturity Benefit

Target Market:

1. Key man Insurance

2. Businessmen & Individuals that have liabilities.

3. People who are looking for pure protection.

LIFEGUARD-WROP AT A GLANCE

Minimum sum assured Rs 1,00,000

Maximum sum assuredRs 1,00,00,000

Minimum age at entry 18 Years

Maximum age at entry50 Years

Maximum maturity age65 Years

Minimum term5Years

Maximum term 25 Years

Sum assured in multiples of Rs 1,000/-

Premium payment frequenciesYearly, half Yearly, & monthly.

Premium payment periodEntire term of the plan

Benefit coverage periodEntire term of the policy

Death benefitThe entire sum assured

Maturity benefitsNo Benefit

Surrender/Paid upAfter 3 full years premiums have been paid.

LoansNo Loans

Riders AllowedAccident & Disability Benefit Rider (ADBR)

Accident Benefit Rider (ABR)

Waiver of Premium Rider (WOPR)

LIFEGUARD-SP

LifeGuard Single Premium is another term product that offers pure protection at lowest possible cost.

This plan absolves the policyholder from the commitment of paying regular premiums & ensures that the protection continues without any hindrance.

The concept of this variant is as same as the rest. The product at a glance will help you in understanding the plan.

Target Market

1. People who do not prefer long term commitments

2. People going for liabilities like housing loan or any sort of liability.

3. Young professionals that have an earning but are not too sure about it in the future.

4. Students who are going to study abroad

5. People who are going on short term or middle term assignments abroad.

LIFEGUARD-SP AT A GLANCEMinimum sum assured Rs 2,00,000

Maximum sum assuredRs 10,00,000

Minimum age at entry 18 Years

Maximum age at entry50 Years

Maximum maturity age65 Years

Minimum term5Years

Maximum term 15 Years

Sum assured in multiples of Rs 1,000/-

Premium payment frequenciesSingle Premium

Benefit coverage period Term of the policy

Death benefitThe entire sum assured

Maturity benefitsNo Benefit

Surrender/Paid upNO SURRENDER VALUE

LoansNO LOANS

Riders AllowedNO RIDERS

SMART KID

Smart Kid is with profits anticipated endowment plan that helps parents in creating an asset through which they can plan for their childrens future.

This plan insures the life of the parent and makes the child the beneficiary-therefore ensuring that the future if the child is secure-because when you are a parent you cant leave anything to change-can you?

General Features

Surrender: The plan can be surrendered after three policy years have been completed.

Loans: The Company in Smart Kid provides no loans as regular payouts are available to policyholders

Paid-up: The policy can acquire a paid-up value after a period of three years.

Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10)d benefit on death and maturity claim. The tax benefits are subject to tax laws and are not an integral feature of Smart Kid

Target Market:

1. Young couples with new born baby or children below 12 Years of age.

2. Income group of minimum Rs 10,000 per month.

3. Ideal age group: 30-45 years.

4. Professionals, service holders & businessmen.SMART KID AT A GLANCE

Minimum sum assured Rs 1,00,000

Maximum sum assuredRs 30,00,000

Age at entry for parent20 Years to 60 Years

Age at entry (child)0-12 Years

Maturity age22 Years-25 Years

Minimum term10Years

Maximum term 25 Years

Premium payment frequenciesRegular premium plan with Yearly, half-yearly, monthly mode of payments

Death benefitSum Assured paid immediately + Wop + Periodic benefits continue as it is

Maturity benefitsTwo payout structures are there

Surrender/Paid upAfter 3 years of premiums paid

LoansNO LOANS

Riders AllowedADBR & Income benefit rider

FOREVERLIFE

Forever Life is with life cover. The world in which we live today-the life expectancy is increasing however the earning period is constantly reducing.

This means that we will live longer but earn for a shorter period therefore we need to make our money work for us. And the earlier we put the money that we earn towards our retirement fund-the better will be our retirement fund and thus a better retired life.

Forever Life is a retirement solution that assists in meeting with that need in a disciplined planner.

General FeaturesSurrender: The plan can be surrendered after three policy years have been completed.

Loans: The Company in Forever Life provides no loans.

Paid-up: The policy can acquire a paid-up value after a period of three years.

Tax benefits: The plan carries the sec 88 ccc on the premium paid. Death claims are exempted from tax under sec10 (10)d. Annuity received is taxable at par with income

Target Market

1. Young People in the age group of 25-30

2. Monthly income Rs 10,000 & above

3. Salaried individuals in private sector

4. Businessmen & Traders

ANNUITY:

In this plan the annuitant pays a contribution for a term specified which is called the deferment period and post that term i.e. on Vesting, annuitant get an annuity. He can choose any of the 5 annuity types that plan provides. This annuity

Continues till the time the annuitant lives.