RESEARCH PROJECT REPORT (MBA - 043) ON MARKRTING STRATEGY OF ICICI PRUDENTIAL LIFE INSURANCE A STUDY OF ICICI PRUDENTIAL LIFE

INSURANCE (GORAKHPUR) Submitted in Partial Fulfillment of Master of Business Administration (MBA) Programme:- 20012 -13 Of

Gautam Budhha Technical University, Lucknow Under the Supervision of (Miss Nikita Sarpal) MBA Department S.R.M.S.C.E.T., Bareilly SUBMITTED BY NAME SAURABH KUMAR ROLL NO. - 1101470036

Faculty of Management Science Shri Ram Murti Smarak College of Engineering & Technology, Bareilly (College Code 014)
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Shri Ram Murti Smarak College of Engineering & Technology Bareilly(U.P.) Faculty of Management Science Certificate This is to certify that Mr Saurabh kumar, a student of MBA 3rd Semester has completed his Research Project Report title Marketing strategy of icici prudential life insurance A study of icici prudential life insurance Gorakhpur assigned by MBA Department and under my supervision. It is further certified that he/she has personally prepared this report that is the result of his/her personal survey/observation. It is of the standard expected to MBA student and hence recommended for evaluation. SignatureoftheSupervisor (Mr. anil yadav) Above statement is endorsed. (Dr. Anant Kr. Srivastava) Head of Department (MBA)
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Date:

DECLARATION

I am saurabh Kumar Roll no. 1101470036 a student of MBA third Semester of Shri Ram Murti Smarak college of Engg. & Tech. Bareilly, hereby declare that the summer training project report titled MARKETING STRATEGY OF ICICI PRUDENTIAL LIFE INSURANCE A STUDY OF ICICI PRUDENTIAL LIFE INSURANCE

GORAKGPUR is my original work and the same has not been submitted for the award of any other diploma or degree.

Place: Bareilly Date: (saurabh kumar)

Faculty of Management Science Shri Ram Murti Smarak College of Engineering & Technology, Bareilly (College Code 014) ACKNOWLEDGEMENT It is a privilege and pleasure to express the deep sense of gratitude to Mr. MAYANK MISHRA, Unit Manager of ICICI Prudential Life Insurance Pvt. Company Ltd. Gorakhpur for his valuable guidance and encouragement during the course of project work. I am extremely grateful to the authorities of Shri Ram Murti Smarak college of Engg. & Tech. Bareilly for deputing me under ICICI Prudential Life Insurance Company Limited. I would like to thank my concerned faculty Miss nikita Sarpal for extending her immense help while completing my project successfully. I would also like to special thanks to Mr. Anil Yadav, Sales manager for his valuable guidance and suggestion time to time. THANK YOU HOD SIR
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(saurabh kumar)

EXECUTIVE SUMMARY In todays rapidly changing business environment, organizations have to respond quickly to requirements for people. The Financial market has been witnessing growth which is manifold for last few years. Many private players have entered the economy thereby increasing the level of competition. In the competitive scenario it has become a challenge for each company to adopt practices that would help the organization stand out in the market. The competitiveness of a company of an organization is measured through the quality of products and services offered to customers that are unique from others. Thus the best services offered to the consumers are result of the genius brains working behind them. Human Resource in this regard has become an important function in any organization. All practices of marketing and finances can be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Therefore a recruitment practice in an organization must be effective and efficient in attracting the best manpower. With largest number of life insurance policies in force in the world, insurance happens to be a mega opportunity in India. Its business is growing at 15-20% annually and presently is of the order of Rs. 450m. Together with banking sector it adds about 7% to the GDP.
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Like in the case of BPOs, Insurance sector too faces the problem of attrition. Thus, recruitment is an ongoing process carried through out the year. The project is based on the study of recruitment process. The various recommendations suggested have been the result of the study. The idea is to generate ways of dealing with high attrition and making hiring process manageable and efficient.

TABLE OF CONTENT CHAPTER NO. 1. TOPIC PART A INTRODUCTION Our values Vision&missi0n COMPANY PROFILE 1.3. icici bank prudential plc distribution channel FUNCTIONAL AREAS functions of insurance 1.4. 1.5 1.6. 1.7. 1.8. role of insurance life insurance ORGANIZATIONAL STRUCTURE PRODUCT/ SERVICE ACHIEVEMENTS/ RECOGNITIONS COMPARATIVE PERFORMANCE SWOT ANALYSIS PAGE NO. 10-12

1.2.

13-17

18-34

35-35 36-47 48-50 51-68 69-71

PART B
2. 2. 3. INTRODUCTION ABOUT THE TOPIC SCOPE & OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY Research Design Type & Nature of Research Types of Data Methods of Data Collection Sample Size Sampling Technique Sampling Area DATA ANALYSIS & INTERPRETATION FINDINGS CONCLUSION RECOMMENDATIONS & SUGGESTIONS BIBLIOGRAPHY ANNEXURE 73-74 75-78 80-84

4. 5. 6. 7. 8. 9.

PART A: ABOUT THE ORGANIZATION

1. INTRODUCTION: ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK (26%).

The Company was granted Certificate of Registration for carrying out Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial operations on December 19, 2000, becoming one of the first few private sector players to enter the liberalized arena. The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad, Hyderabad and Lucknow. During this short period till March 31,2001 the Company has issued 6387 polices translating into a Premium Income Rs. 59.7 Million and a sum assured of over Rs.1000 Million. The company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal.
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OURVALUES:Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success. VISION & MISSION

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

This we hope to achieve by: Understanding the needs of customers and offering them superior products and Service. Leveraging technology service customers quickly, efficiently and conveniently. Developing and implementing super risk management and investment strategies to offer sustainable and stable returns to our policyholders. The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values the way we work. describe what the company stands for, the qualities of our people and

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We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth. MISSION:

We will leverage our people, technology, speed and financial capital to:

be the banker of first choice for our customers by delivering high quality, world-class

products and services.

expand the frontiers of our business globally. play a proactive role in the full realisation of Indias potential. maintain a healthy financial profile and diversify our earnings across businesses and

geographies.

maintain high standards of governance and ethics. contribute positively to the various countries and markets in which we operate. create value for our stakeholders.

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COMPANY PROFILE

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). We have a network of approximately 1,400 offices and over 1,75,0000 advisors, as at June 30, 2011. In addition to this, we also have over 5000 distribution touch-points and over 10,000 servicing touch-points across the country. For the past decade, ICICI Prudential Life Insurance has maintained its dominant position (on new business retail weighted basis) amongst private life insurers in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. We continue to tirelessly uphold our commitment to deliver world-class financial solutions and services to customers all over India.

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1.2.1 ICICI Bank One of the biggest financial institutions in India. Broad spectrum of financial solutions for corporate and retail customers. Assets of Rs. 73,000 cores Better than sovereign rating (moodys). First Indian company to be listed on New York Stock Exchange. Trusted by millions of Indians over the years.

1.2.2 Prudential product life cycle Started operations in 1848 and is now one of the largest life insurance companies

in the world. Presence in U.K, Europe, US and throughout Asia. Investor deposit base in U.K. alone exceeds Rs. 53,000 crores. Solid reputation built over 150 years. Already established as one of the biggest mutual fund companies in India

(prudential ICICI AMC) A truly global brand.

Prudential Asia 75 years of experience in Asia. Over 45,000 staff agents. Over 1 million customers. In 12 countries throughout Asia.
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1.2.3 Distribution channel in pru. life insurance co. ltd.

A ) Tied agencies Tied agencies are the largest distribution channel of ICICI prudential, compromising a large advisor force that targets various customer segments. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. With focus on sales and people development, tied agency has emerged as a robust, predictable and sustainable business model. B ) Bank assurance and alliances ICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. Within a short span of two years, and with nearly a large number of partners, banc assurance and alliances has emerged as a vital component of companys sales and distribution strategy, contributing to approximately one third of the companys business. The business philosophy at banc assurance and alliances is to leverage distribution synergies with our partners and add value to its customers as well as partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this channel.

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C) Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurer in India, having commenced operations in 62 cities and towns in India. These are: Agra, Ahmadabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Hyderabad, Hugli, Indore, Jaipur, Jalendhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vashi, Vijaywada and Vizag.

The company has ten bans assurance tie ups, having agreements with ICICI bank, Federal bank, South Indian bank, Bank of India, Lord Krishna bank, as well as some cooperative banks and corporate agents it has also tried up with organizations like dhan for distribution of salaam zindagi, a policy for the economically underprivileged sections of society. ICICI Prudential has recruited and trained over 36.000 insurance advisors/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.

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Overview India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companiesand Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72 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 680 offices, over 235,000 advisors; and 23 banc assurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - 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.

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1.3. FUNCTIONAL AREAS INSURANCE: Insurance is defined as cooperative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. Insurance is also defined as a social device to accumulate funds to meet the uncertain losses arising through a certain risk to persons insured against the risk. 1.3.1 Functions of Insurance 1. Primary functions Provide certainty Provides protections Risk sharing

2. Secondary functions Prevention of loss Provides capital. Improves efficiency. Helps in economic progress.

Nature of Insurance 1. 2. 3. 4. Risk bearing. Act as a cooperative device Valuation of risk. Payment at contingency.
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5. 6. 7. 8.

Valuation of amount of payment. Large number of insured person. Insurance is not a gambling. Insurance is not a charity

Principle of insurance 1. 2. Principle of cooperation. Theory of probability.

1.3.2 Role and Importance of Insurance A. To an individual 1. security and safety 2. affords peace of mind 3. protects mortgaged property 4. eliminates dependencies 5. encourages saving 6. provides profitable instrument 7. fulfill various need of a person B. To business 1. reduced uncertainty 2. increased efficiency 3. key man indemnification 4. enhancement of credit
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5. business continuation 6. welfare to employees C. To society 1. protection of wealth of society 2. economic growth of country 3. reduced inflation 1.3.3 LIFE INSURANCE Life insurance contract may be defined as the contract whereby the insurer in consideration of a premium undertakes to pay a certain sum of money either on the expiry of the fixed period or on the death of the insured. According to section 2 (2) of Insurance Act 1938 life insurance also includes annuity business. Since the life insurance contract is not an indemnity contract, the undertaking on the part of the insurer is an absolute one to pay a definite sum of money maturity of policy at the death or an amount in installment for affixed period or during the life. Features or Elements of Life Insurance contract:1. Nature of general contract 2. Insurable interest 3. Utmost good faith 4. Warranties 5. Proximate cause 6. Assignment and nomination 7. Return of premium
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Nature of general contract Life insurance is also a short of general contract. It includes all the essential features of general contract, as agreement, competency, legal objectives, legal considerations, free consent of parties etc.

a. Offer and acceptance: An offer or proposal is intimation to another of ones intention to do or to abstain from doing anything with a view to obtain the assent of that other person to such an act. When the person to whom the proposal is made signifies his assent to it, the offer is said to be accepted. The offer and acceptance of life insurance is of typical type. The proposal form is completed by the proposer and along with the proposed for first premium is paid. The same may be accepted at the normal rate and norms. The agents canvassing or publication of prospectus and of uses of insurance constitutes invitation to offer because the public in general and individual in particular are limited to make proposal for insurance. Submission of proposal along with the premium is an offer and dispatch of acceptance letter is acceptance. The risk will commence as soon as acceptance letter dispatched by the insurer. When the proposal in not accompanied with first premium, it would be an invitation to offer by prospects and the letter of insurer (generally letter of acceptance with modification is sent) asking the proposer to pay the first without any alteration is an offer and payment of first premium is acceptance.

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b. Competency: The essential element of a valid contract is that the parties to it must be legally competent to contract. Every person is competent to contract who is of the age of majority according to the law, who is of the sound mind, and who not disqualified from contracting by any law. The insurer will be competent to contract if he has got the license to carry on insurance business. The insurer is working with the article of association and memorandum of association or deed of partnership.

c. Free consent: Both the parties must be of the same mind at the time of the contract. If the two parties do not meet in this respect, there is no perfect agreement between them. It is necessary to call it free consent of the parties that the contract is not made through coercion, undue influence, fraud, misrepresentation or mistakes. In life insurance business both parties must know about the nature. Risk to be underwritten. If the consent is not free, the contract is generally voidable at the option of the other party whose consent was not freely given.

d. Legal consideration: The presence of a lawful consideration is essential for a legal contract. The insurer must have some consideration in return for his promise to pay a fixed sum at maturity or death whichever may be the case. The consideration need not be money only. It should be anything valuable or to which value may be assigned. It may be interest, dividend, right
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etc. In Raj Narayan vs. Hindustan Cooperative Insurance, the insurance was accepted but policy was not issued by the insurer. The insured died and could get the policy amount in allegiance of the policy because at the payment of the premium contract was complete. The first premium is consideration and the subsequent premium is merely conditions to contract.

e. Legal objectives: The contract would be legal only when the object is legal. The object of the legal life insurance contract is to protect oneself or one family against financial losses at the death of the insured. The contract is some times to provide for financial contingencies/emergencies that may occur in old age. In brief the contract will be lawful only when the objective is legal. The objective will be legal only when there is insurable interest. With out having this interest, the objective of the contract would not be legal. It would be a wager contract and against public policy.

1.3.4. Insurable interest: It is a pecuniary interest. The insured must have an insurable interest in the life to be insured for a valid contract. Insurable interest arises out of pecuniary relationship that exist between the policyholders and the life assured so that the former stands to loose by the death of the latter and /or continues to gain by his survival. Insurable interest in life insurance may be categorized in two parts that is:

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A). insurable interest in owns life:An individual has an insurable interest in his own life. Its presence is not required to be proved. Bunyon says that every man is presumed to possess an insurable interest in his estate for the loss of his future gains or savings which might be the result of his premature death. According to the definition of insurable interest it is also evident that the person will continue to gain financially while he is surviving and he will suffer losses if he is dead because he will be unable to earn or protect the property. The insurable interest in his own life is unlimited because the loss to the insured and his dependent can not be measured in terms of money and therefore no limits can be placed to the amount of the insurance that one may take on ones own life. Thus theoretically a person can take a policy to any unlimited amount on his own life; but in practice no insurer will issue a policy for an amount larger than amount seems suitable to the circumstances and means of applicant. Generally, it is mentioned one cannot purchase policy usually more than 10 times of his one year income. The premium can be paid by the 3rd party provided there is no intention to speculation. If there is possibility of wager contract it would be void. Insurable interest in other life :Life insurance can be affected on the life of 3rd party provided the proposer has insurable interest in others life. There are 2 type of insurable interest.

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I.. When no proof is required:There are only 2 cases when no proof is required for the insurable interest as they are legally presumed II. wife have insurable interest in the life of husband:-

it is presumed & decided by reed Vs royal exchange (1795) that wife is presumed to have insurable interest in the life of her husband because husband is legally bound to support the life of his wife. The wife who will suffer financially if husband is dead and will continue to gain if husband is surviving. Since the extent of loss or gain cannot be measured in this case hence wife has insurable interest in the husband life up to an unlimited extent. B) Husband has insurable interest in the life of wife: - Insurable interest presumed to exist here and no proof is required. It was decided Griffith vs. Fleming (1909) that the husband has insurable interest in his wifes life because of domestic services performed by his wife. If the wife is dead the husband has to employ other person to render domestic services & certain other financial expenditure will involve at her death which is not calculated. The husband is benefited at the survival; of his wife, so it is self proved that husband has insurable interest in his wifes life. Since monetary loss at her death or monetary benefit at her survival can not be measured there is unlimited insurable interest in the life of wife. Insurable interest has to be proved in following cases:-

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C)Business relationship: The policyholder may have insurable interest in the life of assured due to the business or contractual relations. In this case the amount of insurable corresponds with the amount of risk involved. some of the examples are A creditor has in the life of debtors. A trustee has insurable interest in respect of interest of which he is trustee A partner has insurable interest in the life of the other partners. An insurer has in the life of the insured.

An employee has in the life of key man. D) family relationship: Insurable interest may arise due to family relationship if pecuniary interest exist between policyholders and life assured because mere relationship or ties of blood and of affection does not constitute insurable interest, the proper must have reasonable expectation of financial benefit from the continuance of the life of the person to be insured or of financial loss from his death. The interest must be based on value and not on mere sentiments. Similarly moral

obligations are not sufficient to warrant existence of insurable interest although legal obligations to get support will form insurable interest of the person who is supported in life or the person who is supporting. Thus a son can insure his fathers life only when he is dependent on him and father can take insurance policy on his sons life only when he is dependent on his son.
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1.3.5 General rule of insurable interest in life insurance a) Time of insurable interest: - The insurable interest must exist at the time of proposal. Policy without insurable interest will be wager. It is not essential that insurable interest must be present at the time of claim. b) Services: - except the service of wife, services of other relatives will not essentially form insurable interest. There must be financial relationship between proposer and the life insured. In other words, services performed by the son will not constitute insurable interest of the father in the life of his son. Vice versa is not essential; for forming insurable interest. c) Insurable interest must be valuable: - In business relations the value or the extent of insurable interest must be determined to avoid wager contract of additional insurance. Insurance is limited only up to the amount of insurable interest. d) Insurable interest should be valid: - insurable interest should not be against the public policy and it should be recognized by the law. Therefore the consent of the life assured is very essential before the policy can be issued. 2. The legal responsibility may be on the basis of the insurable interest : - since the

person will suffer financially up to the extent of responsibility, the proposer has insurable interest to that extent. For instance a person will be under the legal responsibility to Expose at the funeral of his wife and children; he can purchase insurance in their lives up to that extent.
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3. Insurable interest must be definite: - the insurable interest must be present at the time of proposal. Mere expectation of gain or support will not constitute insurable interest. 4. Legal consequences: - the insurable interest must be there to form insurance contract. With out insurable interest, it would be null and void. legal and valid

5. Utmost good faith The life insurance requires that the principle of utmost good faith should be preserved by both parties. This says that both parties i.e. insured and insurer must be of the same mind at the time of contract because only then the risk may be correctly ascertained. They must make full and true disclosure of the facts material to the risk. Material facts: - In life insurance national facts are age, income occupation, health, habits, residence, family history and plan of insurance. These are not determined or the basis of opinion and therefore all facts must be disclosed which insured feel as material. Duty: - It is the duty of both the parties to disclose all material facts which are going to influence the decision of other party since the decision is taken on the basis of subject matter, the life to be insured in insurance and national facts relating to subject matter are known or is expected to be known by proposer; it is much more responsibility of the proposer to disclose the material facts. It should also be noted that all the disclosed facts must true to its nature and must be authenticated. Legal consequences: - In the absence of utmost good faith the contract will be voidable at the option of the person who suffered loss due to non-disclosure. The intention at non-

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disclosure counts frauds and is void ab-initio and unintentional non- disclosure is voidable at the option of party not at fault. Once the voidable contract not at fault has been validated by the party not at fault the contract cannot avoided by him later on for instance, if the insurer has continue to accept the premium when certain non disclosure, say mis-statement of age, has been disclosed the insurer can not invalid the contract and cannot refute the amount of claims. If the party not at fault does not exercise its option, the contract will remain valid. Facts not required to be disclosed Circumstances which are diminishing the risk. Facts which are known or reasonably should be known to insurer in his ordinary course of business. Facts which the insurer should infer from the information given. Facts which are waived by the insurer. Facts which are superfluous to disclose by reasons of a condition or warranties. Facts of public knowledge.

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6. Warranties For understanding warranties representations are to be thoroughly understood because in life insurance those representations which are embodied in the policy and are expressly or impliedly forming the part on the basis of the contract are called warranties. Every information given by the proposer for insurance to the insurer during negotiation is representation. Warranties are an integral part of the contract i.e. these are the basis of the contract between the proposer and insurer and if any statement, weather material or nonmaterial is untrue, the contract shall be null and void and the premium paid by him may be forfeited by the insurer. The policy issued will contain that the proposal and the Personnel statement shall form part of the policy and be the basis of the contract. So that representation will be warranties. As has been disclosed already that the warranties may be informative and promissory. i. Informative warranties: - in life insurance the informative warranties are more important. The person is expected to disclose all the material facts to the best of his knowledge and belief. ii. Promissory warranties: warranties related to the future may only be the statement

about his expectation or intention, for instance the proposer promises that he will not take up any hazardous occupation and will inform the insurer if he will take up the hazardous occupation.

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8.Breach of warranties: If there is breach of warranties, the insurer is not bound to perform his part of contract unless he chooses to ignore the breach. The effect of a breach of warranties is to render the contract voidable at the option of the other party provided there is no element of fraud. In case of fraudulent representation or promise, the contract will be void ab- initio.

9.Proximate cause The efficient or effective cause which causes the loss is called proximate cause. It is the real and actual cause of loss. If the cause of loss (peril) is insured, the insurer will pay; other wise the insurer will not compensate. In life insurance the doctrine of cause proximal (proximate cause) is not applied because the insurer is bound to pay the amount of insurance whatever may be the reason of death. It may be natural or unnatural. So, this principle is not of much practical importance of connection with life assurance, but in the following case the proximate causes are observed in the life insurance, too. i. War risk:- where policy issued on exclusion of war an aviation risk, the proximate cause of death is important because the insurer waives its liabilities if death occurred , in this case , while the insured was in field or is engaged in operation of war and aviation . Only premium paid or surrender value whichever is higher payable and the total policy amount is not payable. ii. Suicide: - if suicide occurs with in one year of the policy, or there, was intention to commit suicide and the payment of policy would be restricted, only up to the interest of
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the third party in the policy provided the interest was expressed at least one month before the suicide. iii. Accident benefit:-a problem arises when an insured under an accident policy is killed or suffer an injury which has an immediate cause and also a remote cause. In accident benefit policy, double of policy amount is paid. So, the cause of death in this policy is of paramount importance.

1. Assignment and cause The policy in the life insurance can be assigned freely for the legal consideration or love and affection. The assignment shall be complete and effectual only on the execution of such endorsement either on the policy itself or by any separate deed. Notice for such purpose must be given to the insurer who will acknowledge the assignment. Once the assignment is completed, it can not be revoked by the assignor because he ceases to be the owner of the policy unless reassignment is made by the assignee in favors of the Assignor. An assignee may be the owner of the policy both on survival of the life assured, or on his death according to the terms of transfer. The life policy are the only which can be assigned weather the assignee has insurable interest or not. Life policies are frequently charged , assigned or dealt with for they are valuable securities because a fixed sum is certainly paid in life policies excepting a few , say, pure endowment and temporary policies

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10.Nominations The holder of a policy of a life insurance on his own life may either at the time before the policy matures, nominates the person or persons to whom the money secured by the policy

shall be paid in the event of his death. A nomination can be cancelled before maturity, but unless notice is given of any such cancellation to the insurer, the insurer will not be liable for any bona fide payment to a nominee registered in a record. When the policy matures, or if the nominee dies, the sum shall be paid to the policyholder or his legal representation. 2. Return of premium Ordinarily, the premium once paid can not be refunded. However in the following cases the premiums paid are returnable: i. For reasons of equity: Equity implies a condition that the insurer shall not receive the price of running a risk he runs .thus, there the contract does not come into effect or it is held to be void ab inito. For example, an account of misrepresentation or breach of warranty, the insured, in the absence of any express condition to contrary, can claim the return of any premium paid. But if the policy runs for a time & become void later on the insured is not entitled to the return of any part of the premium. Where the insured is guilty of fraud in obtaining a policy, he will fail in his claim to the sum assured. He can not also ask for a return of the premium because he will have to allege his own fraud to succeed in his claim & no court will assist such person.
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11. Other features Life insurance policies have the following additional features: I. Unilateral contract: - life insurance contract unilateral contract because, here, only the insurer makes an enforceable promise. The proposer had already performed his duty of payment of premiums. If the first premium is paid, the insurer is bound to accept subsequent premium & to pay the amount claim when it arises except on the ground of fraud. II. Conditional contract: life insurance is a conditional contract because the insurer shall pay the assured sum only when the contract is continuing by payment of premium. In addition the insurers promise to pay the sum assured is also conditional upon the furnishing of satisfactory proof of death & other condition mentioned in the policy. III. Indemnity contract is not applied: in life insurance the indemnity contract is not applicable because the value of loss at death cannot be ascertained. It is not possible to ascertain the time up to which the insured would have survived.

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1.4. ORGANIZATIONAL STRUCTURE The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Ms. Chanda D. Kochhar, Chairperson Mr. N. S. Kannan, Director Mr. K. Ramkumar, Director Mr. Rajiv Sabharwal, Director Mr. Barry Stowe, Director Mr. Adrian OConnor, Director Mr. Keki Dadiseth, Independent Director Prof. Marti G. Subrahmanyam, Independent Director Ms. Rama Bijapurkar, Independent Director Mr. Vinod Kumar Dhall, Independent Director Mr. Sridar Iyengar, Independent Director Mr. Sandeep Bakhshi, Managing Director & CEO Mr. Puneet Nanda, Executive Director

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1.5 PRODUCT/ SERVICE Policy Servicing 1) what is the benefit of opting for riders / add-ons? Riders / add-ons are the additional benefits that can be added to the basic old policies prior to July 1, 2006, by paying a marginal additional premium. Riders offered by us are: a. ADBR: Accident & Disability Benefit Rider b. ABR: Accident Benefit Rider c. CIBR: Critical Illness Benefit Rider d. WOPR: Waiver of Premium Rider. e. IBR: Income Benefit Rider.

2) What is the difference between switch and redirection? A switch will enable you to shift the existing units of your unit-linked policy into a new fund and will not change your future premium allocation. A premium redirection will enable you to change your allocation for all the future premiums of your policy. However, your existing units will not be shifted into a new fund.

3) In case I lose my policy document how do I obtain a duplicate policy? You will need to pay the charges towards the issue of a duplicate policy, which will also include the charges for stamp fee. We will send a Duplicate Policy Request form that

35

you will need to fill and send us. You will also need to send us additional requirements like FIR copy/advertisement in the newspaper

4) How will the Net Asset Value (NAV) be calculated for my servicing requests? The Net Asset Value (NAV) is applicable at the time of valuation/purchase. It is calculated as the value on the day you make a transaction request (provided it is a working day).

5) How do I notify a change in address? OR How can I change my policy details? You have the following options: 1. Download the Change Request form from the Download Centre section of our website, fill and send it to us. 2. Call our Customer Service Helpline numbers mentioned in the Contact Us section of the website. 3. Or write to us at the corporate address mentioned in the Contact Us section of the website.

6) How do I effect a Top- up/Fund Switch/Premium Redirection? 1. Download the appropriate form from the Download Centre section of our website, fill in and send it to your nearest ICICI Prudential Branch. 2. For Switch and premium redirection, you can login to the website with your user id and password and give your request online.

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7) Can I change the frequency of payment for my policy? Yes, you can change the premium frequency from low (annual) to a higher frequency (biannual or monthly) or vice-versa.

8) What do I need to do when the life assured becomes a major? When the life assured becomes a major, you need to submit the proof of his/her age with his/her correct date of birth. You also need to write a covering letter.

8b) Can I change the date of birth after the free look period? If yes, what are the documents required? Yes, you can change the date of birth after the free look period. All you need to do is submit the proof of age with the correct date of birth, along with a covering letter.

9) When does a policy lapse? A policy lapses when the policy holder fails to pay the premium even within the grace period.

1.5.1 Surrender/Partial withdrawal/Assignment

1) Can I surrender my policy? After you pay premiums for at least three consecutive years, your policy acquires a surrender value and you can surrender the policy. If you have an ICICI Prudential single premium policy, you can surrender your policy after the first year.

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2) What do I need to do to surrender my policy? You need to submit a Surrender Request form which is available in Download Centre section of our website. Alternatively, you can contact us at any of our touch points.

3) What is partial withdrawal? Partial withdrawal of a policy implies withdrawal of only a part of the funds of your policy. The applicable norms for partial withdrawal may differ for every product. For product-specific details on the same, please refer to the respective product brochures that are available in the Products section of our website.

4) What are Top-ups? Top-ups are one-time payments. You have the flexibility to make an additional investment through a top-up, which is over and above your regular premium payments. You can make a top-up at any time while your policy is in force. The applicable norms for top-ups may differ for every product. For product-specific details on the same, please refer to the product brochures available in the Products section of the website. 5) What is transfer or assignment of a life insurance policy? Transfer or assignment is a method of transferring ones transferable interest in a life insurance policy to another person or institution, for example, as a security for repayment of loans.

6) Can I assign a policy? Yes, you can assign a policy. To assign the policy, you have to notify us regarding the assignment.
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7) How do I assign a policy or transfer a life insurance policy? Assignment or transfer of a life insurance policy may be made by simply making an endorsement to that effect in the policy document. Another way of transferring or assigning the life insurance policy is to get a separate assignment deed executed. The former case is the preferred mode of assignment as it is exempt from further stamp duty. An assignment should be signed by the assignor or his duly authorized agent, and should specifically state the fact of transfer or assignment. The document should be attested by at least one witness.

8) Is assignment allowed on all the insurance plans? Assignment is applicable on all insurance plans except Pension Policies and Married Womens Proper Why Life Time Super Pension ICICI Prudential's Life Time Super Pension policy is especially designed to help you systematically save towards a joyful and satisfying retirement.

Life Time Super Pension is a cost-effective plan that delivers great value in the long run. regular-premium unit-linked pension policy, Life Time Super Pension ensures you earn a fixed income, for your entire life after retirement. So you can relax and live moments that truly matter.

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1.5.2 Features and benefits of Forever Life 1) Forever Life is a regular premium deferred pension plan, which provides you with the security of a life cover during your working years (the Accumulation phase of the policy) and regular pensions once you retire (Annuity phase of the policy).

a) Premiums: Choose the Sum Assured and Vesting Age (age at which you want to start receiving your pensions). Depending on these as well as your age at entry, we determine your annual premium.

b) Pre-decided vesting age: Choose the date from which you want to receive your pensions.

c) Life cover: Enjoy the protective benefits of a life cover during the term of your policy i.e. the time from when you purchase the policy to the time you retire. The life cover amounts to the Sum Assured along with guaranteed additions and vested bonuses.

d) Annuities: Receive the Sum Assured along with guaranteed additions and vested bonuses when you retire. Choose how you want to receive your annuities.

e) options of annuity payouts: Choose to receive your annuity out of five annuity options that come with this retirement plan.

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f) Guaranteed additions: Receive additional sums at the rate of 3.5% per annum compounded on the Sum Assured, for the first four years.

g) Vested bonuses: Receive these from the 5th year onwards, as an annual compounded percentage of the Sum Assured.

h) Death benefit: Should something happen to you, your nominee will receive the Sum Assured along with guaranteed additions and vested bonuses.

i) Tax benefits: Enjoy tax savings on the premiums you pay (under u/s 80 CCC) and tax exemptions on death benefits [under u/s 10 (10 D)]

2.Health Product Suite: Under Health Product Suite, ICICI Prudential offers plans under the following major need categories: Health Assure Health Assure Plus Hospital Care Cancer Care Cancer Care Plus

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Crisis Cover Diabetes Care Diabetes Care Plus

Why Hospital Care? Today, when you are young and healthy, planning for a contingency is not always a priority but the cost of treating even the smallest of ailments is on the rise. You realize it only when you or your loved ones has to undergo some medical emergency and you are faced with the challenge of organizing funds to meet the hospitalisation related expenses. Hence a medical emergency comes not only with emotional turmoil but also with a huge expense attached to it.

During such an unexpected situation, your only concern should be that the best doctors and medical facilities are available and cost should not be a constraint so that you can take care of things without compromise but to ensure that best in class treatment is provided, the key to that is to be financially prepared for it.

To help you manage this unexpected emergency, ICICI Prudential, India's No. 1 private life insurer presents Hospital Care - a comprehensive insurance policy thetas:

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 Facility of cashless hospitalization in more than 3000 network hospitals. Benefit amount will be paid in addition to payment received by you from other medical insurance plans. You will receive lump-sum benefit amount, irrespective of the actual billing. Long term guaranteed coverage up to 20 years. Tax benefits on premium paid up to Rs.15,000 under Section 80D. Why Cancer Care As someone who has seen family members and friends struggle to survive Cancer, you have undoubtedly suffered yourself. You know the extent to which the illness drains the family; that the loss is both emotional, and financial. You would have also read, time and again, articles where medical experts unanimously agree that Cancer can attack anyone, anywhere, at any time. But this truth is only one part of the whole picture. Doctors also verify that those with a family history of Cancer are especially prone to being affected by it. Given all these important facts, have you stopped for a moment and asked yourself, "Why have I not insured myself against Cancer?"

ICICI Prudential suggests you insure yourself, right away, with Cancer Care-a comprehensive Cancer insurance policy, which enables you and your family to stay financially and mentally secure should you be diagnosed with early or advanced Cancer.

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1.5.3 Features and Benefits of Cancer Care a) Comprehensive cancer insurance plan: Get covered for most forms of cancer. Unique design: Receive pay benefits at both early and advanced stages. b) Cash payouts: Meet your expenses at for diagnosis, treatment and surgery, with cash payouts at various stages.

c) Sum Assured up to Rs. 10 lakhs: Receive this amount for a premium as low as Rs. 250 a month. d) Benefits accrued: The benefits accrued if you purchase 10 units (equivalent to Rs. 10 lakhs) of Cancer Care are enumerated in the table below: e) No medical bills required: Enjoy a hassle-free claim procedure. Receive the benefit amount without showing any medical bills. f) No medical examinations: Enjoy a waiver on medical examinations if you purchase up to 15 units (equivalent to Rs. 15 lakhs).

g) Waiver of premium: Have your premiums waived if diagnosed with advanced Cancer.

h) Tax benefits: Enjoy tax benefits on the premiums you pay (under u/s 80 D).

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1.5.4 Why Diabetes Care? Diabetes Care is the 1st ever critical illness insurance policy for Type 2 diabetics and prediabetics. Diabetes Care not only provides financial support but also helps you manage your condition more effectively.

Key Benefits of Diabetes Care Lump-sum payment on diagnosis of any one of the six critical illnesses. Optional cover for eye & foot complications. Wellness program - 3 Free check-ups and a consultation with a doctor Reduced Premium on display of good control. Tie-ups with leading healthcare partners to help you Manage diabetes. Web support for better diabetes control. Tax benefit under Section 80D of the Income Tax Act.

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1.6 ACHIEVEMENTS/ RECOGNITIONS Awards 2011 IICICI Prudential Life Insurance has been conferred the Insurance Company of the Year Award 2011 and Company of the Year Award 2011 Life Insurance at The I Indian Insurance Awards 2011 instituted by the reputed insurance journal of India Insurance Review, in association with Client, ICICI Prudential Life Insurance has been awarded the prestigious award for the Best Leading Private Player Life Insurance 2011 at the CNBC TV18 Best Bank and Financial Institution Awards for FY11 IICICI Prudential Life Insurance was awarded the ICWAI National Award for in Cost

Management 2010 under the Private sector-Service (Large) category ICWAI annual event. The International Council of Customer Service Organizations (ICCSO) recently awarded ICICI Prudential Life, the International Service Excellence Awards 2009 in the categories of Customer Charter Winner, Service Excellence in Large Business Highly Commended and Customer Service Leader awarded to Ms. Priya Nayak, VP-Service Quality

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1.7 COMPARATIVE PERFORMANCE OF THE ORGANIZATION

Aviva Bajaj Allianz Birla sun life Ing vysya Life insurance corporation Max new York life MetLife India Om kotak mahindra Reliance life insurance SBI life insurance Tata AIG

1) AVIVA The AVIVA Life Insurance Company is joint venture between Dabur India and the Aviva UK. Dabur is one of the Indias oldest and largest groups of companies with consolidated Annual turnover in excess of Rs 1,350 crores, countrys leading producer of traditional Healthcare products. Aviva Plc is UKs largest and the worlds fifth largest insurance group. It is one of the leading providers of life & pension products to Europe and has substantial business elsewhere around the world.
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2) Bajaj Allianz Bajaj Allianz Life Insurance co. Ltd. Is a joint venture between Allianz AG, and Bajaj Auto, one of the biggest 2 & 3 wheeler manufacturer in the world? Bajaj Auto Ltd, the Flagship Company of the Rs.8000 crores Bajaj group is the largest manufacturer of twowheelers and three-wheelers in India and one of the largest in the world. Allianz Allianz group is insurers and financial service providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the holding company, Allianz AG, with its head office in Munich. 3) Birla sun life insurance company Limited Birla sun Life Insurance is the coming together of the Aditya Birla group & Sun Life Financial of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and Overseas with operations in Canada, US, UK, Thailand, Indonesia, Philippines, Malaysia, and Egypt Foreign partner: Sun life assurance, sun life financials primary insurance business, has excellent rating with the worlds top rating agencies. With assets under management as on September 30, 2000 totaling more than CDN billion, it ranks amongst the largest international financial service organizations in the world.

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4) ING Vysya ING Vysya Life Insurance Company private Limited entered the private life insurance industry in India in September 2001, and in a short spans pf 3 years has established itself as a distinctive Life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor force. It also distributes products in close cooperation with the ING Vysya Bank network. The company is headquartered at Bangalore 5) MAX NEW YORK Limited Max India Limited is a multi-business corporation that has business interest in telecom service. Bulk pharmaceuticals, electronic components and specialty products. It is also the service-oriented businesses of healthcare, life insurance and information technology. NEW YORK Life New York Life has grown to be a fortune 100 company and an expert in life insurance. It was the first insurance company to offer cash dividends to policy owners. In 1894, New York Life pioneered then unheard-of-concept of insuring women at the same rate as men. Thereafter, it continued to introduce a series of firsts a disability benefit clause in 1920, unemployment insurance in 1992 and complete customer care of the web in 1998. Today New York Life has over US billion in assets under management and over 30,000 agents and employees worldwide. The October 2000 fortune survey named New York Life amongst the top three most admired life and health insurance companies
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worldwide. With over 3 million policyholders, New York Life is a leading provider of insurance in a host of countries worldwide. 6) METLIFE INDIA MetLife India was incorporated as a joint venture between MetLife International Holdings Inc., Jammu & Kashmir Bank, M Pallonji & Co and other private investors. MetLife India is headquartered in Bangalore with offices and presence in major Indian cities, and an additional 1000 outreach points through its channel partner. Life insurance Corporation of India (LIC) The Life insurance Corporation was established about 44 years ago with a view to provide an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a monopoly status and become synonymous with life insurance. Its main asset is its staff strength of 1.24 lakhs employed and 2,048 branches and over six-lakhs agency force. LIC has hundred divisional offices and has established extensive training facility at all levels. At the apex, is the Management Development Institute, seven zonal Training Centre and 35 sales Training Centers. At the industry level, along with the Government and the GIC, it has helped establish the National Insurance Academy. It presently transacts individual Life Insurance business, group Insurance business, social security schemes and Pensions, grants housing loans through its subsidiary. And the markets savings and Investment products through its mutual fund. It pays off about Rs 6,000 crores annually to5.6 million policyholders.

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7) Om kotak mahindra life insurance Established in 1985 as Kotak capital management finance promoted by Uday kotak the company has come a long way since its entry into corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc. The company got its name kotak mahindra as industrialists Harish and Anand Mahindra picked a stake in the company. Kotak Mahindra is today one of Indias leading Financial institute. a) OLD Mutual Old mutual plc is an international financial service group in London with expanding operations in life assurance, asset management, banking and general insurance. OLD Mutual is listed on the London Stock Exchange and also on the south-African, Namibian, Malaawi, and Zimbabwe stock exchanges. It has 156 years of experience in life insurance business. b) Om Kodak Mahindra OM Kodak Mahindra is the coming together of Kodak Mahindra Finance Ltd .and Old Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life insurance products.

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8) Reliance Life Insurance Reliance Life Insurance Company Ltd is a part of Reliance Capital Ltd. of the Reliance Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Ltd is a Non-Banking Financial company (NBFT) registered with the Reserve Bank of India act under section 45-1A. Reliance Capital sees immense Potential in the rapidly growing financial service sector in India and aims to become a dominant player in this Industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Ltd to offer need based Life Insurance solution to individual and corporate. 9) SBI Life Insurance SBI Life Insurance Company Ltd is a joint venture between Indias largest banks, State Bank of India and Cardiff S.A. a leading Life Insurance Company in France. State bank of India is a household name, and it stands as the last world for financial strength and security in the country. SBIs illus tries background dates back to the year 1806 when it started business, as a Presidency Bank, known as Bank of Bengal. Over the long journey, it has learnt to combine the best of banking practices handed down from the
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imperial management with the more Dynamic ways of doing banking in the modern India. It has grown as a responsible giant in the banking field over the years. Cardiff came into being in the year 1973. Since then it has grown into a vibrant insurance company. Specializing in personal lines such as long-term saving, protection products and creditor insurance. Cardiff had a premium income of over US$ 4 billion in 1999. And more than US$ 23 billion of funds under its management. Cardiff has been specializing in the art of selling insurance products through Commercial bank in France and 23 other countries. SBI Life Insurance Company Ltd is registered as a life Insurance Company with the Insurance Regulatory & Development Authority of India and has been issued License number 111 on 29th March 2001. The Companys authorized capital is Rs. 250 crores, and the paid up capital at present is Rs.125 crores. SBI owns 74%of the total equity, and Cardiff the balance 26%.

10) TATA AIG:The TATA AIG joint venture is a tie up between the established Tata Group and American International Group Inc. The TATA Group is one of the largest and most respected industrial houses in the country, while AIG is a leading US based insurance and financial service company with a presence in over 130 countries and jurisdiction around the world.

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1.8 SWOT ANALYSIS Strengths:

1.

Joint venture between ICICI Bank and Prudential U.K. is itself is a strong point

for ICICI Prudential Life Insurance Company . Domestic image of ICICI supported by Prudentials International image is strength of the company.

2.

The company is holding the No. 1 position among the other private players

since inception.

3.
groups.

Huge basket of product range which are suitable to all age and income

4.

Large pool of technically skilled manpower with in depth knowledge and

understanding of the market.

5.

Well-established training infrastructure and skilled faculties to take care of

technical expertise.

6. 7.

Strong capital and reserve base. Strong and well spread network of qualified intermediaries and sales person.

Weaknesses 1. 2. 3. Heavy management expenses and administrative costs. All operating offices do not function as profit centers. Poor retention percentage of tied up agents.

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4.

Vertical hierarchical reporting structure with many designations and cadres

leading to power politics at all levels without any exception. 5. Though adequate talents are available and all well spread throughout the

organization enough opportunities are not provided to utilize them in the right direction. Lake of initiative is also prevalent. 6. Low customer confidence on the private players.

Opportunities: 1. The whole rural market is a kind of niche segment of insurance business. The only

company which has some presence in rural market is LIC. So, I is at par with all other private companies and the its an equal competition for all, there is an opportunity to make a mark and be the first among the private insurers and capture the rural market. 2. The ICICI being such a big name has an opportunity to grow its insurance of the group companies and they can even target the

business using the goodwill

customers of each company of their group to get insurance through them by offering special incentives or schemes, such as providing medical insurance along with saving accounts in their banks etc. 3. The good showing at the stock markets and growing Indian economy enable the

ICICI Prudential to give better returns to customers, specially in unit linked schemes.

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4.

The Indian mass is getting more aware about the importance of insurance so they icici

are relatively more relative to insurance schemes, therefore it gives a chance to prudential. 5.

The world trends in distribution channel for selling insurance are changing , these

days 55% insurance in Europe is sold through banks. ICICI has its own bank spread all over the nation, this can be used to make cross selling possible. Threats: 1.The rural India and middle class India still dont have faith in private insurers. 2.The ICICI PRUDINTIAL is competing with private companies which are

spending huge amounts on marketing ,so to maintain a competitive edge with these companies in terms of acquiring market shares would be tough task.

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PART- 2

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INTRODUCTION "Advertisements are sometimes spoken of as the nervous system of the business world ... As our nervous system is constructed to give us all the possible sensations from objects, so the advertisement which is comparable to the nervous system must awaken in the reader as many different kinds of images as the object itself can excite" Advertising effectiveness means different things to the groups responsible for its different effects. To the writer or artist, effective advertising is that which communicates the desired Message. To the media buyer, effective advertising is that which reaches prospective Buyers a sufficient number of times. To the advertising or marketing manager, effective Advertising is that which, together with other marketing forces, sells his brand or product. To the general manager, effective advertising produces a return on his firms expenditure. In fact, effective advertising must achieve all four goals, delivering messages to the right Audience, thereby creating sales at a profit. Most advertisers have begun only recently to set goals in all four areas and measure progress toward them. Some advertisers have set Communications and audience goals, and measured copy and media effects, but few Advertisers have set dollar goals and measured sales and profit effects. The result is that advertising has rarely been a part of corporate planning. Thirty years ago, management was asking the same questions they ask today: Is my advertising working and what impact does it have on my sales? Can it be measured? Can our advertising and promotion be made accountable in the same manner as which one evaluates all of the other investments by our company?
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The answer to all three questions is yes. In fact, the techniques to deliver this degree of Accountability and control have been around for more than 50 years and are industry Standards. There are methods to test every aspect of marketing promotion, sales support and media Mix and analytical tools to establish a direct relationship to sales for complete Accountability. The key to this is applying a full advertising research curriculum. This Requires involvement of both sales and marketing management and the Advertising/promotions supplier coordinating their efforts with the researcher. It is a Partnership. This may explain why so many from both the client and agency sides remain Of the opinion that it cant be done. The fact is that a full curriculum can be implemented, is already integral to nearly every brand leader, and you can do it as well. It just takes a little Planning and co-operation. Lets start from where it all began.

1. Problem Areas A majority of Indian customers being very conservative and averse to risk, trust was an extremely important factor in the insurance business. Since LIC was a government owned body, there was an element of security embedded in its services and products. This proved to be the biggest hurdle for the new insurance companies as Indian customers were reportedly rather skeptical about them.

2. SCOPE TO THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are vying to gain market share in this rapidly improving market. The study deals advertisement given by Insurance Companies. The study then goes on to evaluate and analyze the findings of these advertisements so as to present a clear picture of media strategy the Insurance players. The Company The result of the survey will help the company to know about the effectiveness of various life insurance advertisements and how much advertisement is helpful in buying decision. The results will also help the company to trace the loop holes and then take the corrective measures to rectify them. The Industry This is a limited study which takes into consideration the responses of 50 people. This data can be exported to take decision for promotional strategy across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

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The Researcher To facilitate and provide all the useful information of the study, the company, the insurance industry and also provide marketing ways, methods of ICICI Prudential Life Insurance Co

2. BACKGROUND According to industry observers, one of the main reasons for the low insurance penetration in India was the ineffective distribution and marketing strategies adopted by LIC. The company reportedly never had any strategic marketing game plan, and due to its monopolistic nature the need for serious marketing efforts was never felt. The advertising initiatives were limited to some print and electronic media advertisements that typically talked about LICs products being great tax saving tool for salaried individuals who came under the income-tax bracket. Despite all this, LIC was synonymous with insurance in India and it had established an enviable brand image for itself, especially in the rural areas and small towns. However, with the entry of new players, the insurance market changed almost overnight. Analysts commented that the private insurers seemed all set to make the industry marketing-driven, wherein technical and service excellence would be the key of success. The private companies, in a bid to make their presence felt and their brand noticed, initiated a series of aggressive marketing and promotion initiatives, something that buyers of insurance were not accustomed to.

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In July 2002, Indias state owned insurer, Life Insurance Corporation of India (LIC) Announced aggressive marketing plans with a budget of around Rs 1 billion. The aim of This unusual decision was to woo customers across the country through a multimedia Campaign including advertisements on the radio and the press media, the outdoor media And the television. However, this did not come as a major surprise to industry observers Who said that LIC did not have too many options? With the insurance bill being passed in 2000, the Indian insurance sector saw a host of Private players enter the market with multinationals as their partners. These new players Resorted to aggressive marketing and advertisement strategies something the market had Never seen earlier. This sudden spurt of advertisements and awareness programs was visible on all the media Channels. Print, electronic and outdoor advertisements of the new private insurers flooded could be seen everywhere. This prompted many comparisons of such behavior of Insurance companies with the advertising frenzy of the dotcoms in India not too long ago With similar full-page advertisements, huge hoardings and costly electronic media Advertisements. According to reports, in the first quarter of the year 2002, insurance companies spent 70% of what was spent in the whole of 2001, on advertising and publicity. Across the world, insurance, as a category was one of the largest spenders on advertising. In India too substantial expenditure was being incurred due to advertising.

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COMPANY LIC Allianz Bajaj Om kotak Mahindra ICICI prudential

EXPENDITURE 1000 200 150 146

However, during the first year of the entry of new players, while LIC reported a growth of over 250%, private insurers managed to garner only about 0.5% market share, in spite of spending hefty amounts on advertising and promotion. According to reports, LICs business increased mainly because of the increased public awareness about insurance, which was brought about by the heavy advertisement campaigns of private players.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY The research methodology explains that researcher has gone through which path to solve the research problem and which tools have been adopted to achieve the desired objective and more importantly it tells why only the path or tools have been chosen not other. Fundamental to the success of any formal marking research project is sound research methodology. A research design purely and simply the framework or plan for a study that guides the collection and analysis of the data. Research Design It is the conceptual framework within research is to be conducted. The suitable design will be the one that maximize the bias and maximize the reliability to the data collected and analyzed. Now we will have a brief look on the aspects of the research plan, which are research approach, research instrument, sampling plan and contact method. Method of Data Collection: The research was conducted using primary as a source of information and the method adopted was 'surveying'. Survey is the most commonly used of primary data collection in market research. This widely used of its extreme flexibility. Survey research is a systematic gathering of data from respondents through questionnaires. The purpose research is to facilitate understanding or enable prediction of some aspects of behaviors of the population being surveyed. A questionnaire is a formal list of questions to be answered in the survey.

65

The questionnaire formed contained direct question, which were both open-ended and close-ended. Among close-ended question, again both dichotomous and multiple choice questions were used. The questions were framed keeping the objective of research in mind and in such a way that they are able to extract the required information from the respondents. Observation method was also used. In it, the factors around the respondents wee keenly observed e.g. space, potential for expansion etc. They were noted down as 'comments' which proved very useful while analyzing the data. Research methodology is a strategy that guides a research in providing answers to Research questions and for this, research survey is being done. Accuracy of the study Depends on the systematic application of the method. The researcher has to decide the Method to be used that helps him to get a desired direction in a systematic way. This study in the following manner. COLLECTION OF DATA: The task of data collection begins after a research problem has been defined and research design is chalked out. While deciding about the method of data collection to be used for the study; the researchers should keep in mind two types of data i.e. Primary and Secondary data. The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. The secondary data on other hand are those which have already been collected by someone else and which have already been passed through the statistical process. The data used for the present research is primary data. The different methods that are used for collecting primary data are as follows:
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A)

Contact Method:

The 'contact method ' considering the short coming was selected to personal interview. This method being versatile was arranged interviewing as it made concerned approach to the respondent. B) Observation Method:

The present investigation was done on the basis of making note of behaviour and gestures of the target customers. C) Schedule Method: The method of data collection is very much like the collection of data through questionnaire, with little difference which lies in the fact that schedules are being filled in by the enumerates who are specially appointed for the purpose, these enumerators go to the respondents along with the schedule and put up the question. Inferences are drawn on the answers given by them.

Research Approach The inferences on the characteristics and relationship in the study are mainly based on the quantitative figures obtained from the data based collected through the survey, therefore the research can be classified as inferential and quantitative in it approach. However ,also bears the researchers insight and impression on the topic, which are based on the subjective analysis of attitudes opinion and behavior of respondents identified during the informal interviews.
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Random Sampling Sampling can be defined as a part of population. Thus random sampling may be defined as the selection of a portion from the whole population in which each elements of the Population has an equal chance of being selected. A more please definition is that each Element in the population has a non-zero and known probability of selection a randomly Drawn sample is an unbiased sample. In this research survey 50 people were surveyed at Random to get the relevant information. Sample Size: The sampling techniques used in this project are probability sampling Techniques and the methods used in cluster sampling. Sampling Unit: The respondents who were asked to fill out questionnaires are the Sampling units. These comprise of employees of MNCs, Govt. Employees, and Self Employed etc.

Sampling Area: The area of the research was Gorakhpur city UTTER PRADESH, India.

Structured Questionnaire
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In this collection data, structured questionnaire is used as a tool by asking a set of Standardized questions to know the effect of Life Insurance Advertisement and behavior of the people for the ICICI Prudential Life Insurance.

Interview The next step involved in collecting information requires discussion with people. Thus Valuable information was gathered informal friendly talks with the people.

Secondary Data Collection Various websites were consulted to collect literature relevant to the topic. Interpretation Interpretation refers to the task of drawing inference from the collected facts after an analytical study, in fact it is a search for broader meaning of research findings it is through interpretation that the researcher can well understand the abstract principle that Respondents beneath his findings. The simple statistical tools will used to analyze the data Collection, Bar Graphs and pie chart have been used to illustrate the findings Diagrammatically. The scores for advertisement were compiled on spontaneous recall, Aided recall and likeability. The top ads are selected on the basis of their score.

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