Saab Marfin Mba

SAAB MARFIN MBA
A COMPARATIVE STUDY OF HR PRACTICES AND

POLICES OF ICICI PRUDENTIAL LIFE INSURANCE
COMPANY LTD
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POLICES OF ICICI COMPANY LTD
SAAB MARFIN MBA
TABLE OF CONTENT
Chapter. No CONTENTS Page

No.
EXECUTIVE SUMMARY 1
1. INTRODUCTION 2
2. INSURANCE INDUSTRY 19
3. PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE CO.LTD. 33
4. IMPLEMENTING HR PRACTICES AND POLICES IN ICICI 51

PRUDENTIAL LIFE INSURANCE CO.LTD
5. RESEARCH OBJECTIVES 65
6. RESEARCH METHODOLOGY 66
7. DATA ANALYSIS AND INTERPRETATION 68
8. SUGGESTION 83
9. CONCLUSION 92
10. LIMITATIONS 93
11. BIBLIOGRAPHY
12. ANNEXTURE
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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
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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.
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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
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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
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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":
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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
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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
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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 DEVELOPMENT
In 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"
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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
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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
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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
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brain-drain they experience.
1.2 MODERN CONCEPT OF HUMAN RESOURCES
Though 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.
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Purposes
HR 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 Policies
HR policies provide an organization with a mechanism to manage risk by

staying up to date with current trends in employment standards and
legislation.
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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.
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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
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documentation
job analysis
equal opportunities monitoring
return on investment (ROI)/cost.
There's more information on the website via our Recruitment 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
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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 our Induction 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
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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 and Employment law
subject pages.
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:
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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
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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
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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.
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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
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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.
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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
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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.
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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
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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
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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 of
properties are employed in commerce and industry equally great risks are
involved in day to day functioning. The owner of the business might
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foresee
contingencies that would bring great loss. By purchasing a policy he can
be
sured of his earnings.
(ii) Business efficiency is increased with insurance. A businessman gets
free from unnecessary botherations and can devote more care and energy
to
maximize 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.
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(ii) Economic growth of the company. As insurance provides protection

against loss of property thus, if any such damage arise the assets can be
replaced without loss of production thus, Economic development of the
country is not effected.
(iii) Accelerate the production growth. Adequate capital from Insurance
company can accelerate production circle in the country. Economic
growth
of the country is not only assured but the process of growth is
accelerated
which is more essential in a country like India where the population is
increasing very fast.
(iv) Reduction in inflation. The insurance company in the form of
premium
get lot of money supply from the public which insurance corporation put
into production thus the money which would have come into circulation
might 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
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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
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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
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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.
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2.3 FUNCTIONS OF INSURANCE

a) Primary Functions
(I) Certainty of Compensation of Loss: Insurance provides
certainty
of payment at the uncertainty of loss. The element of
uncertainty is
reduced by better planning and administration. The insurer
charges
premium for providing certainty. Life is always full of risks. Life
without risks and uncertainties is unthinkable. Man has always
encountered risks of various types since the inception of
civilization. Minor risks can be ignored but the major risks
cannot
be ignored and their avoidance is desirable. One of the ways or
techniques of meeting the risks loss prevention and insurance.
Insurance removes all uncertainties and the assured is given
certainty of payment of loss. The insurer charges premium for
providing the said certainty.
(ii) Insurance provides protection: The risk will occur or not, when will
occur, how much loss will be there? There are uncertainties of
happenings of
time and amount of loss. The main function of the insurance is to provide
protection 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.
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(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 planned
development of a country there is great need for huge amount of
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The
accumulated funds are invested in providing proper infrastructure and in
investing in productive channel. Now a day, the insurance companies are
rendering positive help in the development of trade, commerce and
industries of a country through different scheme of investment. A
country's
natural resources can be exploited with long term and huge amount of
investment by the insurance companies.
(iii) Adequate Financial cover: The need of insurance is largely felt to
give
a cover to the rural areas and to the socially and economically backward
classes with a view to reach all insurable person in the country and
provide
them adequate financial cover against death at a reasonable cost.
(iv) Mobilization of Savings: In insurance the savings of masses is
collected
by 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
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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
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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
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> 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)
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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 body
2.6 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
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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
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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.
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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,
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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
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Prudential seeks to replicate ICICI Pru success

Best Life Insurer Award

Outlook Money: March 15, 2004
ICICI Prudential Life Insurance Life hikes capital to Rs 675 cr

ICICI Pru tops premium income chart

Business Standard: April 15, 2004
3.2 ORGANIZATIONAL STRUCTURE
Board of Directors
The 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
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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 - Investments
Ms. Anita Pai, Chief - Customer Service and Operations
Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Strategy
3.3 STRUCTURE AND GROWTH OF INVESTMENT
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset
Management Company, which has today emerged as one of the leading
mutual funds in India. The two companies bring together two of the
strongest financial service brands in Asia, known for their
professionalism, excellent quality of service and long term commitment
to YOU. Riding on the success of this relationship, the two companies
joined hands once more in 2000, to form ICICI Prudential Life Insurance
Life Insurance, with a commitment to provide leading-edge life insurance
solutions.
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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
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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 Underwriting

Definition:
1. Educated life earning regular income through employment
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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)
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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 profile
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3.4 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 cases
3. Process for Medical cases
Advisor confidential Report:
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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
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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
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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

INSURANCE
Insurance Solutions for Individuals

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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
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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
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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.
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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.
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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.
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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 assured Rs 1,00,00,000
Minimum Premium Yearly- Rs 6,000
Half yearly-Rs 3,000
Monthly- Rs 500
Minimum age at entry 0 Years
Maximum age at entry 60 Years
Minimum maturity age 18 Years
Maximum maturity age 70 Years
Minimum term 10 Years
Maximum term 30 Years
Sum assured in Rs 1,000/-

multiples of
Premium payment Yearly, half Yearly, &

frequencies monthly.
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Premium payment Entire term of the plan

period
Benefit coverage period Entire term of the policy+ 5

Years after maturity(50%of
sum assured under ELC )
Death benefit ---------
Age<7years Premiums paid will be

refunded.
Age>7years ----------
ELC period 50% of sum assured in case CASH BAK

the policy holder dies during
the 5 Years Extended Term.
CashBak is
Maturity benefits S.A +G.A @ 3.5% with profits
compounded annually (for the anticipated
first 4 Years)+V.B(if any & endowment
after 4 Years). plan. This
Surrender/Paid up After 3 full years premiums plan provides
have been paid. liquidity at

the regular
Loans Allowed after the surrender
intervals of
value period.
time and also
help in saving money.
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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.
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Maximum sum assuredSAAB MARFIN MBA

Rs 1,00,00,000
Monthly- Rs 500
Minimum maturity age Not Applicable
Minimum term 15 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequencies Yearly, half Yearly, & monthly.
Premium payment period Entire term of the plan
Benefit coverage period Entire term of the policy.
Death benefit during the term of [email protected]%+Vested bonus (if any)

the policy
Maturity benefits 50% of Sum assured @ 3.5%G.A compo

annually (for the first 4 Years)+V.B (if a
after 4 Years).
Surrender/Paid up After 3 full years premiums have been
Loans No Loans
Riders Allowed Critical Illness Benefit Rider (CIBR)
Majorper
2. Income group of minimum Rs 10,000 Surgical
month.Assistance Rider (MSAR)
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Accident & Disability Benefit Rider (ADB
Accident Benefit Rider)
SAAB MARFIN MBA
3. Middle-aged professionals, service holders and businessmen.
CASHBAK AT A GLANCE
LIFE GUARD
Life 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.
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General features
been completed.
Loans: No loans are available
Paid-up: The policy can acquire a paid up value after a period of three
years.
(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
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Minimum sum assured Rs 1,00,000

LIFEGU
ARD-R
OP AT
A
Monthly- Rs 500
GLANC
E
Maximum maturity age 65Years
Minimum term 5 Years LIFEGU
Maximum term 25 Years ARD-W

ROP
Sum assured in multiples Rs 1,000/-
of
This is
Premium payment Yearly, half Yearly, &
the most
frequencies monthly.
cost
Premium payment period Entire term of the plan effective
Benefit coverage period Term of The policy policy to
have life
Death benefit The entire Sum assured
insurance
Maturity Benefit Sum of Premiums paid & FREE
. This
ELC for 50% OF the SA
plan
For next 5 Years. Provides
Riders Allowed Accident & Disability Benefit Life
Rider (ADBR) protectio
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Accident Benefit Rider (ABR)
Waiver of Premium
rider(WOPR)
Surrender/Paid up After 3 full years premiums

have been paid.
SAAB MARFIN MBA
n 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.
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LIFEGUARD-WROP AT A GLANCE
Minimum term 5Years
Sum assured in multiples Rs 1,000/-

of
Premium payment Yearly, half Yearly, & monthly.

frequencies
Premium payment period Entire term of the plan
Benefit coverage period Entire term of the policy
Death benefit The entire sum assured
Maturity benefits No Benefit
Surrender/Paid up After 3 full years premiums have

been paid.
Loans No Loans
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Riders Allowed Accident & Disability Benefit

Rider (ADBR)
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.
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LIFEGUARD-SP AT A GLANCE
Maximum sum assured Rs 10,00,000
Minimum term 5Years
Premium payment frequencies Single Premium
Benefit coverage period Term of the policy
Death benefit The entire sum assured
Maturity benefits No Benefit
Surrender/Paid up NO SURRENDER VALUE
Loans NO LOANS
Riders Allowed NO RIDERS
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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
been completed.
Loans: The Company in Smart Kid provides no loans as regular payouts

are available to policyholders
years.
(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
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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.
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Maximum sum assured Rs 30,00,000

SMART Age at entry for parent 20 Years to 60 Years
KID AT
Age at entry (child) 0-12 Years
A
Maturity age 22 Years-25 Years
GLANC
Minimum term 10Years
E
Premium payment frequencies Regular premium plan with

Yearly, half-yearly, monthly
mode of payments
FOREV Death benefit Sum Assured paid
ERLIFE immediately + Wop + Periodic
benefits continue as it is
Forever Maturity benefits Two payout structures are
Life is there
with life Surrender/Paid up After 3 years of premiums

cover. paid
The
Loans NO LOANS
world in
which Riders Allowed ADBR & Income benefit rider
we live
today-the life expectancy is increasing however the earning period is
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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 Features
been completed.
Loans: The Company in Forever Life provides no loans.
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
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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. During the deferment period
ForeeverLife provides with life protection thus this plan provides both
life insurance & retirement planning benefits.
Annuity Options
1. Life Annuity: This annuity provides an annuity till the time the
annuitant lives. Once the annuitant passes away the contract is over
& nothing is payable. This is suitable for an annuitant who does not
have any dependents. This annuity type will disburse the maximum
amount as an annuity.
2. Life Annuity with return of purchase price: Annuity is paid till
the time the annuitant survives & after the demise the purchase
price (as on vesting) is given to the nominee. Therefore this annuity
type can not provide only annuity but also leave a legacy for the
family
3. Joint Life Annuity, Last survivor annuity: Annuity is paid to the
annuitant and after the annuitant passes away & the spouse
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survives, the same annuity will be disbursed to the spouse. On the

death of spouse the annuity will stop & nothing is payable.
4. Joint Life Annuity, Last survivor annuity with return of purchase
price: Annuitant is paid to the annuitant & after the annuitant
passes away & the spouse survives, the same annuity will be
disbursed to the spouse. On the demise of the spouse the purchase
price (as on vesting) is given as a claim to the nominee. Therefore
this annuity type can not only provide an annuity but also leave a
legacy for the family.
5. Life Annuity guaranteed for 5,10,15 years & life thereafter: In
this annuity type the annuitant can choose a term of 5,10 or 15
Years & during the term the annuity will continue to be disbursed
irrespective of the fact whether the annuity is alive or not. If the
annuitant survives the guaranteed period the same annuity will
continue to be disbursed till the time annuitant survives. After
annuitants demise nothing is payable.
Annuities can be taken on yearly, half yearly,

monthly basis. Annuity Option once chosen
cannot be changed. Annuities have a 5 or 7 year
reset option.
FOREVER LIFE AT A GLANCE
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Maximum sum assured No Limit
Maximum maturity age 70Years
Minimum term 5Years
Premium payment frequencies Yearly, half-yearly & monthly
Premium payment period Entire term of the policy
Death benefit The entire sum assured + G.A

+Vested bonus (if any)
Maturity benefits According to Annuity option

choose
Surrender/Paid up After three years
Loans NO LOANS
Riders Allowed Accident & Disability Benefit

Rider (ADBR)
Critical Illness Benefit Rider

(CIBR) 79
Major Surgical Assistance
Rider (MSAR)
SAAB MARFIN MBA
4. HUMAN RESOURCE MANAGEMENT OF ICICI

PRUDENTIAL LIFE INSURANCE
1. MODE OF APPOINTMENT:
The appointment to various points shall be made in the following
manner:-
BY DIRECT RECRUITMENT:-
a. The qualifications for direct recruitment shall be such as
specified in the
staffing pattern.
b. The appointment shall be made according to the merit list drawn

at the
time of selection.
c. All appointments except to class-IV services shall be made on

the
recommendations of the selection Committee consisting of the
following:-
BY PROMOTION
Appointment by promotion to the next higher post in the respective
discipline
in any category shall be made on the basis of Seniority-cum-Merit
from
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amongst the employees working in the lower category having atleast

five
years service on the said post in the Life Insurance.
BY TRANSFER:
a. By transfer of a person on deputation from any Department. Of
Government/ ICICI Prudential Life Insurance or any sister Life
Insurance.
b. By permanent transfer of services of surplus staff of ICICI

Prudential Life Insurance on the
terms & conditions as Prescribed by the ICICI Prudential Life
Insurance and adopted by the
Board from time to time subject to the approval of Register.
c. By permanent transfer of an employee of other /ICICI Prudential Life

Insurance on his own request and upon the terms & inditions as
prescribed by the ICICI Prudential Life Insurance and adopted by the
board from time to time subject to the approval of Registrar.
The quta of appointment by direct recruitment and by promotion shall be

in
the ratio of 40:60 respectively wherever applicable. The
appointment under
Rule 1.3 shall be treated against the quota of direct recruitment.
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a). The reservation for the members of Scheduled Castes, Scheduled

Tribes
and Background classes in recruitments shall be in accordance
with the
policy of the Govt. as adopted by the BOD.
b). The Life Insurance may fix Quato for promotion of class IV
employees to
class III posta upto 10% of the promotion quota.
2. COMMENCEMENT OF SERVICE:
Services shall be deemed to have commenced from the working day on

which
the employee reports for duty. If he reports for the duty in the
afternoon the
services shall be deemed to have commenced from the following day.
3. ATTENDANCE AND LATE COMING:-
No employee shall enter or leave the premises of the Establishment

accept by the gate or gates meant for this purpose.
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An employee who is off his duty or has resigned or has been discharged
or
declared by the competentMedical Authority to be suffering from any
contagious or infectious disease, shall immediately leave the
premoises of the
Etablished and shall not enter any part of it, except with the express
permission of the copetent authority.
All employees shall be liable to be searched both at the time of entry and
exit
at the main entrance of the Establishment by an authorized person of
the same
sex with due dignity.
If more than one shift is working, the employee shall be liable to be

transferred
from one shift to another.
4. SENIORITY:
a). The seniority of an employee under these rules shall be determined in

a
particular category of post on the basis of the length of service on that
post
provided that in the case of employees appointment by the direct
recruitment
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which join within the period specified in the order of appointment or

within
such period specified by direct recruitment who who join with in the
period
specified in the order of appointment or within such period as may
from time to
time be extended by the appointing authority, subject to a maximum
of one
month from the data of order of appointment, the order of merit
dertermined,
shall not be disturbed. Provided further that in the case a candidate is
permitted
to join the service after the expiry of the said period of one month,
his seniority
shall be determined from the data he joins the service.
b). A person recruited by promotion from the service of the Life Insurance
shall be
senior to the person recruited otherwise if they join on the same data.
Provided
that in case of promotion of two or more persons with effect from the
same
data their inter-se-seniority shall be determined according to their
seniority in
the cadre or postal from which they have been promoted.
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c) Seniority of the employees of PDDC/ICICI PRUDENTIAL LIFE INSURANCE

upon the permanent transfer of
their services to the Life Insurance vis--vis other employees of Life
Insurance, shall
be determined in the following manner:-
(1) An employee who was working in the higher pay scale at the
time of
permanent transfer shall rank senior to the employee working in
the
lower pay scale on that date.
(2) In case where the pay scale of the post held by an employee in
the
PDDC or ICICI Prudential Life Insurance and of the post against
which he has been transferred
in Life Insurance identical, their seniority shall be determined
on the basis
of length of services in the same pay scale.
5. POSTING AND TRANSFERES:

Managing Director shall be competent to post/ transfer any employee
within the establishment. He shall also be competent to transfer an
employee against any equivalent post or along with post.
As and when considered necessary in the internet of work and upon
request from ICICI Prudential Life Insurance/Sister Life Insurancethe
services of an employee of ?Life Insurance may be placed on national
deputation without payment of deputation allowance to any other Life
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SAAB MARFIN MBA
Insurance/ ICICI Prudential Life Insurance for Period upto one year in the
first instance, which can be extended further.
6.DEPUTATION
Any employee of Life Insurancemay be sent on deputation to any
State level co-
operative Apex. Institution or Government Undertaking with his
consent and
on receipt of writtenrequisation from the concerned
Institution/Government
undertaking and with the concurrence of the ICICI Prudential Life
Insurance on the terms &
conditions mutually agreed upon by the leading and borrowing
organizations
subject to prior approval of the Registration.
7. JOINING TIME:
Upon transfer of an employee from one station to another the
joining time, exclusive of journey day(s), shall be admissible as
under:-
(i) upto distance of 4 kms : No joining
time.
(ii) For distance between 41kms : one day
to 100 kms
(iii) Above 100kms : Two day
8.Security
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SAAB MARFIN MBA
An employee of the Life Insurance Shall furnish such security, Fidelity

guarantee,
agreement bond in favour of the Life Insurance as may be decided by
board from
time to time.
9. PROVIDENT FUNDS:
Employees of the Life Insurance shall be entitled to the membership of
the
Employees Provident Fund and other schemes under the employees
Provident
Fund and Misc. Provisions Act 1952 irrespective of the pay drawn b
him re-
employed persons shall be governed by the terms of their
appointment.
10. BONUS:
Employees of the Life Insurance shall b entitled to payment of the
Bonus under
the payment of Bonus Act, 1965 as amended or re-enacted from time
to time.
11. MEDICAL BENEFITS:

An employee, as and when covered under the PSI Act/Scheme, shall
get
medical benefits as provided there in. An employee not covered
under the PSI
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SAAB MARFIN MBA
Act/Scheme shall be entitled to medical benefits as may be decided

by the
board from time to time with the concurrence of the ICICI Prudential
Life Insurance.
12. ALLOWANCE:
Dearness Allowance, Additional Dearness Allowance, House Rent
Allowance, City Compensatory Allowance, Rural Allowance and Other
Compensatory Allowance Shall be Admissible to the Employees of the Life
Insurance as per the Decision of the Board with the concurrence of the
ICICI Prudential Life Insurance and approval of the Registrar.
13. BENEFITS ADMISSIBLE IN THE EVENT OF DEATH OF AN

EMPLOYEE DURING SERVICE:
In case of death of an employee whilr in the service of
Life Insurance his family members shall be entitled to the following
benefits/ facilities at the rates/scales and on the tearms & conditions as
approved by the board from time to time with the concurrence of ICICI
Prudential Life Insurance.
a. Ex-gratia grant.
b. House Rent Allowance.
c. Encashment of P.leave.
d. Priority for employment of window/dependent of
deceased employee.
e. Special Ex-gratia grant to the family members of an
employee of the Life Insurance Killed by terrorist action.
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SAAB MARFIN MBA
14. TRAINING:
Managing Director may wit the concurrence of Life Insurance employee to
attend a seminar/ workshop/training within the country or abroad in
accordance with the instructions of the Registrar, as may be issued from
time to time.
15. LEAVE:
15.1 All the employees of Life Insurance shall be entitled to the
following
kinds of leave:-
(i) PRVILEGE LEAVE (LEAVE WITH WAGES:
One day for every 18 days of service (for the purpose of
calculation
of days of services,the period of Privilege Leave availed and
leave
without wages/ absence shall not be counted).
(ii) CASUAL LEAVE:
12 days per annum.
(iii) SICK LEAVE:

(a) 14 days per annum to those mployees ho are not
covered by the ESI ct/Schemes.
(b) 7 days per annum to thise employees who are covered
by the ESI Act/Scheme.
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16. RESIGNATION:
If a regular/permanent employee intends to leave the service of the
Life Insurance by tendering resignation, he shall have to give
one
months notice in writing, otherwise, he shall have to deposit
on e
months notice in writing, otherwise, he shall have to deposit
one
months salary or salary for the period by which the notice
falls short
of one month (for this purpose salary will include basic pay
+all other
allowance admissible thereon, experts House Rent/Rural
allowance,
Conveyance Allowance and Medical Allowance.)
24 hours notice shall be required for tendering resignation during

probation period.
The resignation tendered by the employee may be accepted by the

a
appointing authority.
17. SUPERANNUATION / RETIREMENT

Every employee of Life Insurance shall be superannuated on the
afternoon of the last day of the month in which he attains the age of 58
years.
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Not with standing anything contained in Rule 17.1 above, an employee

may be permitted at his own request to retire room the service of the Life
Insurance on attaining the age of 50 years or after 20 years of service at
any time by the appointing authority provided three months notice.
An ything contained in rule 17.1 and 17.2 above , the appointing
authority shall, if it is of the opinion after reviewing the entire service
record of an employee that he is not fit to be retained in the service and
that it is in the interest of the Life Insurance.
18. Major misconducts:

Without prejudice to the generality of the term, misconduct, the
following
acts of communion or omission shall, interlaid, constitute specific
acts of
Major Misconduct on the part of the employee:
1. Breach or habitual breach of any standing instructions or rules

regulations, conditions of the appointment letter or orders
issued by the establishment from time to time.
2. Acting in any manner prejudicial to the inertest or reputation of
the establishment, disregard of any operation & maintenance.
3. Negligence or habitual negligence of duty or laziness or in
efficiency or incompetence or malingering or neglect of work or
carelessness in work, poor or unsatisfactory performance
intentionally.
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4. bring narcotic, liquor or other intoxicating things in premises or

reporting.
5. Doing private or personal work during working hours, engaging
in any other trade, business profession, service of the
Establishment without while in the competent authority.
19. PUNISHMENTS FOR MAJOR MISCONDUCTS:

One or more of the following punishments may be imposed on an
employee
who is found guilty of a major misconduct, namely:-
1. Stoppage of one or more annual grade increments of pay with or
without cumulative effect
2. Recovery of damages or the amount of loss suffered by the
Establishment on account of misconduct of the employee.
3. Demotion to the Lower post.
4. Termination of service.
5. Dismissal from service.
20. PUNISHMENTS FOR MINOR MISCONDUCTS:-
One or more of the following punishments may be imposed on an
employee
who is found guilty or minor misconduct, namely:-
1. Warning or Censure.
2. Making an adverse entry in his service record.
3. Stoppage of one annual grade increment of pay with or without
cumulative effect for a period of six months.
4. Recovery of loss of goods expressly entrusted to the employee
or more for which he is accountable.
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5. Recovery from his pay of the he is accountable, pecuniary loss

caused by him to the establishment by negligence or breach of
orders.
6. Suspension without pay or subsistence for a period not
exceeding 15 days.
21. PROCEDURE FOR AWRDING PUNISHMENT FOR ACTS OF

MINOR MISCONDUTS:
Where an allegation of minor misconduct is alleged against an
employee, he
shall be called upon to explain his position.
22. PROCEDURE OF ENQUIRY AND PUNISHMENT FOR MAJOR

MISCONDUCTS.
An employee against whom a major misconduct is alleged shall be served

with a charge heet by the competent authority clearly setting forth the
imputation of mis conduct and calling upon the employee to submit his
explanation within a period of 7 days, provided that such time may be
extended for a maximum period of 7 days , after the expiry of initial
period of 7 days if suffiecient reasons are advised by the employee for
seeking an extension, for which purpose a written request will have to be
made him. In case the employee be pastedon the notice board of the
office establishment and it shall be deemed to have been served upon the
employee for the purpose of these rules.
In case where the employee admits in writing the charge(s) leveled
against him, it shall be open to the competent authority to award one
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more of the punishments provided in these rules without holding any

enquiry.
In the case of the explanation submitted by the employee is found

to be satisfactory, the matter will be dropped.
In case the employee fails to submit his explanation within the

prescribed time or extended time allowed to him or where the extended
time allowed to him or where the explanation submitted by him is not
found satisfactory, the competent authority shall appoint a person to
hold an enquiry and issue ordered in this regards specifying there in the
names of the Enquiry officers and the Presenting officers.
The accused employee shall be entitled to the reimbursement
of actual rail/bus fare only besides conveys undertaken by him for
inspection of relevant records and attending the enquiry proceedings at a
station other than his HQs.
The enquiry officer shall on the conclusion of the enquiry, submit
his report in writing giving his findings with the reasons therefore to the
authority.
APPEAL AGAINST PUNISHMENT:

i) An appeal against the orders of the competent authority
imposing
punishment, under rules 29 and 30 of these riles shall lie
to the
board of directors of the Life Insurance. The board shall
constitute a
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committee consisting of chairman , nominee of ICICI

Prudential Life Insurance, nominee
o f RCs and nominee of NDDB to examine the appeal on
the basis
of records.
ii) An appeal shall be filled within a period of 30 days from
the data
on which the appellant receives a copy of the order
appealed
against or is deemed to have received.
iii) The appellate authority may after consideration of the

case and
on recording sufficient reasons yet aside, reduce,
confirm or
enhance the punishment and its decides to enhance the
punishment, the accused employee shall be given an
opportunity
to show cause against such enhancement.
23. SUSPENSION:
In a case where it is considered that the employee be suspended
pending
enquiry, the competent authority may suspend the employee pending
issues of
a charge sheet or subsequent domestic enquiry or till the final orders
are
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passed on the enquiry case. Where criminal proceeding against an

employee in
respect of any offence involving moral turpitude are pending and the
competent authority is satisfied that it is necessary/desirable to place
the
employee under suspension, the competent.
SUBSISTENCE ALLOWANCE DURING SUSPENSION:

1. An employee shall be paid during the period of suspension
subsistence Allowance @ 50 % of the wages to which
the
employee was entitled to immediately proceeding the
date of such
suspension for the first 90 days of suspension and 75%
of such
wages for the remaining period of suspension.
2. The payment of subsistence Allowance to the suspended
employee shall be subject to his processing a certificate
every
month about his having not taken up any other
employment and
his having remained at the head quarters.
24. SERVICE RECORDS:

The following service reords shall be maintained in respect of an
employee of
Life Insurance:-
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i) personal File
ii) service book
iii) A.C.R file.
RESIDENTIAL ADDRESS OF EMPLOYE

An employee shall notify to the Life Insurance immediately on
engagement, like details of his residential addresses and
thereafter
promptly communicate to the Life Insurance any change in
his residential
address.
ANNUAL CONFIDENTIAL REPORTS:

ACRS of employees shall be written on yearly basis (April to
march)
in the prescribed format. The entries in the A.C.R of an
employee sall
be taken into account while deciding the case of promotion,
Proficiency step up, pre-mature increment(s) etc. The adverse
remarks in the ACR of an employee, if any ,hall be
communicated to
him in writing. The employee to whom adverse remarks are
conveyed may make a representation for review of the
adverse
remarks. In this regards the following time schedule shall be
followed:-
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1 Period of communication of Within 30 days of the

adverse remarks to the official receipt from the final
concerned accepting authority.
2. Period for receipt of Within thirty days from
representation against the date of receipt of
adverse remark. adverse remarks.
3. Final decision on the Within 30 days of the
representation on receipt of receipt of comments
comments of reporting / on the representation
reviewing/ accepting authority from the reporting/
reviewing/ accepting
authority.
NOTE I No further representation shall lie against the final decision.

NOTE-II The representation against adverse remarks received after the
expiry of
the stipulated period shall be rejected straight way.
25. GRIEVANCE /REDRESSAL PROCEDURE:

Any employee having a cause for complaint about his work or
working
conditions shall have a right to present a cause for investigation and
consideration within two days of rising of the cause. The procedure
for the
redress shall be as follows:-
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Stage I
The employee having a cause for complaint shall in the first place,
discuss it with his immediate supervisor.
Stage II
If a satisfactory solution of his problem is not bound with six days his
discussion of the complaint, he shall approach his sectional head/
departmental head through his immediate supervisor.
Stage-III
If the problem is not yet resolved, the aggrieved employee may request
for the consideration of his cause by the Grievance community
constituted as under with an intimation to the Labor-cum conciliation
officers of the areas.
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5. RESEARCH OBJECTIVES
The current research will be aimed at determining the HR Practices

and Policies at ICICI PRUDENTIAL LIFE INSURANCE. The research will be
focused on the following major issues.
a) To study the significance of HR policies.

b) To study the system development at ICICI Prudential Life
Insurance
c) To measure the factors related to HR Practices and Policies.
d) To study the employee relation and executive response for
Practices and Policies in ICICI Prudential Life Insurance.
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6. RESEARCH METHODOLOGY
In order to cope up with the emerging challenges due to tough global

competitions, the way out for this is to produce quality products at
reasonable prices. This is possible only through an organization culture
of quality consciousness and enhanced productivity. Optimal utilization
of resources especially the human resources are one sure way of meeting
this objective. Thats why proper induction of an employee is very
important.
RESEARCH DESIGN
Research design means a specified framework for controlling the data
collection. The research is of descriptive in nature, which could provide
an accurate picture of induction procedure conducted in the organization.
Descriptive research includes surveys and fact-finding inquiries of
different kinds. The research is of Ex post facto nature in which
researcher has no control over the variables. Statistical method lay stress
on objectivity rather than rely on intuition and judgment and average &
percentages can easily be calculated.
The following methodology was adopted in project

Comprises of understanding the theoretical concepts in general.
Questionnaire study
Analysis of the primary data
Analysis of the secondary data
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The statically method needs the collection of data in two forms

1. Primary data
2. Secondary data
1. PRIMARY DATA
The primary data are those, which are collected afresh and for the first
time, and thus happen to be original in character. The data on the
required information is collected from actual persons using the product/
services. This data is more suited for the objectives of the project.
2. SECONDARY DATA
The data which have already been collected by someone else or taken
from published or unpublished sources and which have been already
been passed through the statistical process.
MODE OF DATA COLLECTION

The study is based on Secondary data which includes
Secondary Data
Secondary Data will be gathered from books and journals on HR Practices
and Policies in ICICI Prudential Life Insurance.
Sample Plan
Unit:
100 Employees
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Universe:
The universe of the study was be ICICI Prudential Life Insurance, Patiala.
Contact Method:
The respondents sampling personally will be prepared to interview 100
employees.
7. FINDINGS OF THE STUDY

INDUCTION PROGRAM
Does the company provide induction for new employees ?
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GRAPH
The graph shows the %age of companies, which undergo some

standard methods of induction.
o The graph shows that almost all the companies are following
induction practices.
o Near about 93% of the companies follow induction practices while

7 % of them dont follow it.
o Induction is although inseparable part for HR practices. Yet there

are companies, which dont follow a standard procedure of
induction but make it just through personal explanation of working
strategy of the dept.
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o Induction could be done through Diaries, Manuals or through

Company CDs, or even by standard power point presentations
given to the employees to make them familiar to the policies of the
company
Who participates in delivering Induction ?
GRAPH 2
The graph shows the involvement of different departments in

delivering induction.
Most of the companies follow delivery of induction by related

departments.
According to the survey approximately 40% of the companies

follow induction practice through related dept., which explains
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working of respective dept. to the employees.
Compared to 40% of induction done by related dept. 35% is been

done by HR dept. and only 25% is performed by all dept.
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Is induction same for all levels or different ?
GRAPH 3
The chart depicts that what level of induction is applied to various

levels of employees.
Most of the companies say that induction process is different for

different level of employees while some says that the induction
procedure they follow is same for all level of employees.
The company may prepare a common induction procedure to

explain the policies, work culture of the company, the benefits the
company provide, the basis to be adopted for transfers and
separations, basis for promotions, and a brief history of the
organization, yet the process to be followed for individual working
environment must be different.
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How does the company recognize the need for training ?
GRAPH 4
The graph shows the methods through which the companies

identify the need to provide behavioral training to their employees.
There may be several methods for training among which most

commonly adopted method is reference through supervisor.
According to the survey conducted 67% of the companies take a

feed back from their employees and thus determine need for
training.
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Although 54% of superiors depends on performance monitoring

approach to decide for providing training to their employees.
And only 20% rely on questionnaire method.
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What type of training is conducted ?
GRAPH 5
The graph shows the type of training provided by various

organizations.
Though various types of training methods are adopted which

comprises of on the online training, apprentice training, classroom
training, job training, and outdoor training. But the most commonly
adopted method is on the job training, which is practiced in almost
all companies.
Then do the companies prefer the outdoor training, which is, again
most adopted one whereas online training is least.
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What is the Annual budget for training ?
GRAPH 6
The graph shows training budget, which is decided by the

companies to be spend on training of their employees. The
companies even send their employees to outstations.
The budget is decided depending upon the need of the employee

and the degree of skills and knowledge already possessed by the
employees and also depending the need of the organization.
Most of the companies i.e. almost 30-35% of companies keep their

budget around 2.5 to 3lac.
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Although some organizations have as high as Rs.9 lac assigned as

budget for training.
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What is the module duration for training programme ?
GRAPH 7
The graph depicts the module duration specified for training

programs by various companies.
Most of the companies prefer to go for training for less than 1

week it is mostly ranging from a minimum of 2 hrs to 2 days and
maximum to 6 to 7 days.
Some of the companies even go for a training for 4 weeks, which

makes their employees completely trained about the skills they are
lacking in.
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The companies even go for job rotation, which help them go for all
round development.
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Does the company provide any profit sharing policy ?
GRAPH 8
The graph shows the profit sharing policies of the organization.
Although there may be various profit sharing methods which may

work as motivational aspect for the employees. It could be through
ESOPs, exgratia etc, yet the most preferred one could be providing
bonus to the employees who fall in to this category as per
government rule.
According to the survey 13% of the organizations declare shares for

their employees and 87% prefer to declare bonus time to time.
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Does the organization provide any recreational activities?
GRAPH 9
The graph shows the recreational activities performed by the

manufacturing organizations.
Recreational activities are quite important for maintaining

interpersonal relations among the staff and to develop enthusiasm
among the employees. Moreover its a part of welfare activity,
which even work as motivational aspect.
The company could conduct many activities, which could gather the
company staff together at a common platform. These activities
could be picnics, tours, outings, parties, functions, get together.
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These activities not only enhance the interpersonal relations but

also help the families of the employees interact.
According to the survey the most preferred activity is get together

which approaches up to appx 100% of the organizations and the
least preferred one is company tours.
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Does the company provide any retirement benefit ?
GRAPH 10
The graph shows retirement benefits been received by the

employees .
As per government rule providing provident funds (PF) and gratuity

is the rule thus it is provided by all the organizations.
Apart from these, organizations provide other benefits too. 15% of

the organizations provide age relaxation so that the employees
could serve a little more to the organization and appx 40% provide
pensions to retired employees.
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What are the welfare activities taken up by the organizations ?
GRAPH 11
The graph shows the welfare activities taking place in the

manufacturing organizations.
Most of the organizations provide all the major welfare activities to
their employees.
Almost 100% of the companies provide first aid facilities and
cafeteria.
Almost 98% of them the organizations provide uniforms to their
employees. Although the maintenance of these uniforms may be
taken by either the HR dept. or the employees by themselves.
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Almost 94% of the organizations provide the transportation facility.

It may be company bus, or the company vehicles; in some cases the
company provides traveling allowance.
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Does the organization adopt any on job safety measures ?
GRAPH 12
The graph shows safety measures adopted by various

organizations as a part of their welfare scheme.
Various safety measures, which could be adopted by the

organizations, could be from fire, shock and electricity, safety while
handling machinery, and operational health and safety
measures(OH&S facility).
According to the survey almost all the organizations adopt all these
safety measures.
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The result is 100% implementation of these practices.
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What appreciation scheme is followed by the organization ?
GRAPH 13
The graph shows the appreciation schemes adopted by

organizations to reward the employees.
The organization may provide perks, promotions, monetary

rewards, increments, incentives or even an appreciation in public
matters a lot.
According to the survey the most common, adopted and preferred

one is increments for better work performance, then comes the
promotions & monetary incentives.
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Almost 100% of the organizations prefer to go for increments and

94% provide promotions & monetary incentives.
Least preferred one is public appreciation count to 67%.
What are various reward & recognition schemes of the organization ?
GRAPH 14
The graph shows the basis to give rewards.
There are various methods to reward an employee for his

outstanding performance. The organization may provide them with
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paid vacations, additional pay for additional work, overtime,

monetary rewards, perks etc.
According to the survey perks are the most preferred means of

rewarding the employees, then is paying overtime and least
preferred is paid vacations.
Perks counts to 67% of the choice, and paid vacations the least to
34%.
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How the organization recognize outstanding performer ?
GRAPH 15
The graph show the basis on which the organizations decide which
employee is to be rewarded .
Although almost all the organizations go for all
o Punctuality
o Regularity
o Initiative
o Productivity
o Extra work
But according to the survey the most preferred basis is punctuality
followed by initiative and productivity.
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Punctuality comprises 93% preference in deciding the right

candidate for reward and initiative and productivity aspect counts
equal to 67%.
8. SUGGESTIONS
As in the competitive world where the need for every organization to

prove itself the best and make an outstanding and remarkable progress is
the need, no fact could be left ignored. Every organization must know the
shortcomings and must try to go for building up the shortcomings. An
ethical practice in any organization could only be achieved if the
organization works for the well being of its employees. Every
organization must possess a basic structure and the organization must
be capable enough to reward its outstanding performers and must
appreciate the initiative works.
According to the survey been conducted with various HR heads of various

organizations here are few suggestions from their side:
INDUCTION PRACTICES
Induction is must in every organization for all level of employees to make

them well known of the industry they are working in.
The best ways to perform induction may be through
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o Lectures
o Power point presentations prepared explaining companys
policies.
o Through SOPs (Standard operating procedures)
o Manuals
o Diaries
o But the most adopted one is through personal induction.
The induction program must follow a proper feed back from

employees been put into the program which is again an ethical
practice and is achieved by
o induction scheduling
o opinions from supervisors
o feed back forms.
BEHAVIORAL TRAINING
Behavioral training is boon for any organization.
The organization could provide on the job training, which is quite

common and most adopted. The organization may also go for
outdoor training
Job rotation could be preferred which could make the employee

skilled in overall working of an organization.
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The organization may provide a basic training for FIRST AID &
SAFETY OR FIRE SAFETY TRAINING.
The organization may have tie ups with the training organizations
which could organize courses and the organization may take up the
best course as per requirements of their staff.
A proper feedback must be taken to grasp the extent the

employees have versed themselves with knowledge.
Proper Feed-back could be taken through

o evaluation
o questionnaire
o feed back forms
o submission of report through trainee
o feed back through trainers
MOTIVATIONAL TOOLS
Motivating for work is inseparable to continue productivity. But work
when itself serves as motivation then progress is inevitable. The
organization must take great care to motivate its employees through
various methods.
Promotion may be one of the best motivational factors. Promotional
basis could be
o work performance
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o qualification
o performance evaluation
o skill enhancements
o initiative steps taken .
organization may also provide fringe benefits such as

o leave traveling allowance
o medical
o free transportation
o ESI (Employee State Insurance)
o Furnishing scheme
o House lease
o hospitalization
WELFARE ACTIVITIES
The organization may adopt welfare policies such as
o Transportation facility
o Canteen facility with breakfast, lunch and dinner facility

along with refreshments.
o Canteen could be free, subsidized ,paid. But the most

preferred one is through subsidized mode.
o The organization must also possess first aid facilities for its
staff. A well-versed rehabilitation of injured staff and an
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duty doctor or an ambulance should be always provided.
o The organization must also possess a grievance handling

committee despite a union to take an action for their
problems. It could be a three tier of four-tier grievance
committee.
REWARD AND RECOGNITION SCHEME

Rewarding the best work not only provide the candidate with
appreciation but also provide enthusiasm to do better. A competitive
spirit is also developed to perform the best.
Some of the practices of rewarding the employees practiced in
organizations are
o Award after completion of 10 years of service

o Companys well furnished housing & hotels for officers
o Paid vacations to foreign countries
o Yearly reward scheme
o Overall equipment efficiency reward
o Quality man of the year award
o Best man of the year
o Best kaizen award
o Increments
o Promotions
o Incentives
o Monetary rewards
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o Public appreciation.
RECOMMENDATIONS
For all the programs the organization must follow feed back method
to understand the effectiveness of any practice in a better way.
Holistic views of induction should out show both positive and negative
aspects of the organization. Which ultimately let the employee know
about both the phases of the policies adopted by the organization.
Practice of providing a brief presentation of the company and a

booklet for rules and regulations of company must be maintained so
that the employee could go through it when ever required.
Individual should concentrate more while training. When an

organization invest on training of an employee, the purpose of
training serves the mutual benefit of both organization and the
employee. Thus, the employee should be more oriented towards
drawing as much benefits as he can. Employees are supposed to
understand their role for particular training program.
Company must maintain training manuals or training charts and

training report submitted by the trainee. This, practice not only keeps
a maintained record of the programs been conducted but also keep
the employee known of the knowledge gained by him which could
later be utilized.
A pre- evaluation and post evaluation practice should be followed to
understand the success of training and the training could be then
effectively used to fill gaps later.
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Continuous training module should be conducted, personality

development training should be provided.
To motivate the employees
Performance awards could be given every year.
Incentives could be paid.
Salary saving schemes could be provided.
Extra activities such as games and sports, community meetings,
recreational activities, picnics, tours and outings should be planned to
improve the interpersonal relationships.
External welfare activities could also be taken up by the organization
such as
o Blood donation camps
o Safety week
o Free eye camps
o Free books for children
o Poster and quotes competition could be organized.
Devotion, belongingness and good team member spirit should be

rewarded. Employees should be encouraged for group efforts and
team work.
To avoid worker union for better employee welfare and give suitable
welfare activities from time to time to the employees in house work
committee should be developed to handle the grievance.
Employees participation is key issue. Thus, suggestions should always

be invited and maximum efforts should be put up to implement the
suggestions.
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INITIATIVE SUGGESTIONS
Employees familys involvement in motivating employee is the key
element. It creates a special pressure point.
o Drawing competitions of children could be organized.
o Special training for wives could be arranged to teach them

what are the dos and doesnt.
o Special scholarships could be announced for the children of

employees securing good marks.
Management by objective should be adopted. The practice should

be objective to avoid biasness.
Kaizen award could be given to the implementer of best suggestion.
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BENEFITS
The new environment in INDIA is an environment of change, a change

brought by an awakening among the people of INDIA who demand a fair
deal for themselves and for their children. This situation constitutes a
great challenge for managers. All managers, whether they are managing
business or offices, farms or factories, whether they are called business
executives or civil servants, will have to measure up to this challenge .
--Mrs. INDIRA GANDHI
For scientific and systematic execution of all human activities, two

essential watchwords are- administer well and manage well.
Thus focusing the benefits of ethical HR practices are:
INCREASED PRODUCTIVITY HR practices deals with training

process which teach the employees proper handling of resources
and the methods to put their resources to optimum utilization with
minimization of losses and minimum wastage.
EMPLOYEE SATISFACTION HR goes for human resource

development functioning. It looks after the welfare activities of the
employees. Take care of their problems. Thus, an overall care of
their health, transportation, meals and well being is taken. Which
ultimately results into employee satisfaction.
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INDUSTRIAL PEACE Ethical HR practices contains a

well maintained grievance handling machinery which deals with the
internal problems and provide employees with satisfactory
solutions.
ORGANIZAED WORK PATTERN With the ascent of HR practices the

organization follows the process of departmentation. Which further
results to delegation of work and an organized work pattern.
BETTER INTERACTION Through recreational activities been

organized by the organization ( like parties, picnics, get-together,
annual days celebration). This inculcate team spirit among the
employees.
BETTER ADMINISTRATION Through following a fixed and

scheduled work pattern like induction feed-backs, induction
scheduling, training feed-backs, performance appraisal forms etc.
KNOWLEDGE ENHANCEMENT Through trainings ( on the job

training, out-door training etc.)
PARTICIPATION IN MANAGEMENT through suggestions and kaizen

practices.
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MORALE ENHANCEMENT Through motivational

activities and reward and recognition schemes.
EMPLOYEE ADVANCEMENT
SYSTEMATIC SCHEDULE
EMPLOYEE CARE
GOOD INTERPERSONAL RELATION
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CONCLUSION
At last I want to say that while recruitment and selection identify

acceptable candidate, the process still continue with induction program
for the new employee, we can further fine tune the fit between the
candidates qualities and the organizations desire. Then to make the
employees more skilled behavioral training may be provided.
It makes the positive impact of any organization, but it needs a lot of

money, time, attention and guidance. It is just like only taking, not giving
or taking the starting benefits and when the time comes for returning
back you just quit the job. So it is not always fruitful.
The employee motivation is needed to be built up through constant
attempts of the organization. The organization may adopt various
methods for motivating the employees. It may be by providing
recreational activities such as tours, picnics, family outings, annual days,
sport days, functions, and parties. The organization must consider its
employees as its family members and must provide some profit sharing
policy such as ESOPs , bonus, and shares. the organization may provide
fringe benefits.
Welfare activities to be undertaken by the organization may include

various facilities such as uniform for the employees for whom HR
department is responsible for its maintenance and providing it.
Last but not the least rewards are the main motivational activity, which
may be monetary and non-monetary rewards.
At last to conclude, I would like to say that with enthusiasm that it was a
great experience working with many experienced people working at
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senior positions. Interacting and spending time with the people rich in
learning experience. The people were very cooperative and helpful and
encouraging. It is an experience to be cherished for a long time.
It was great of learning so much about HR practices and implementing
them. Im really thankful for all the senior members who explain me the
working strategies and methodologies of organizations.
LIMITATIONS
VERY TIME CONSUMING in the fast competitive market every body

is busy in performing his /her job. It is really hard for the managers
to spare time. So it is time consuming.
TIME CONSTRAINTS understanding the work culture of any

organization in few weeks is very hard task. For doing project few
weeks are not enough. Managers were very busy so managing time
with them was quite difficult.
As the researcher was an outsider so co-ordination with the

employees took some time and it was formal.
HR managers were quite reserved in sharing their companys

policies with an outsider.
The sample size of study was small.
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REFERENCES
PERSONNEL / HUMAN RESOURCE MANAGEMENT

o DECENZO & ROBBINS
HUMAN RESOURCE MANAGEMENT

o GARY DESSLER
PERSONNEL/ HUMAN RESOURCE MANAGEMENT

o ROBERT L MATHIS
o JOHN H. JACKSON
HUMAN RESOURCE MANAGEMENT

o DEEPAK
BHATTACHARYA
http://en.wikipedia.org/wiki/Human_resource_policies
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ANNEXURE
Respected sir/Maam
This questionnaire is to study the HR POLICIES AND PRACTICES IN
ICICI PRUDENTIAL LIFE INSURANCE. You are requested to please give
few minutes to fill the questionnaire and provide us with valuable
information. All the information provided by you will be treated as
confidential. We will be glad to share the summary of the survey with
you .
Instructions
You may mark more then one options if relevant.
You are free to put your remarks in every blank provided.
1) Name of the
company_______________________________________
2) Complete
address__________________________________________
3) Name of HR
head__________________________________________
4) E-mail
address_____________________________________________
5) Telephone
no.______________________________________________
6) Work force of the
company____________________________________
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7) Turnover
rate_______________________________________________
8) does your organization have other manufacturing units in
India
(Yes / No)
9) if Yes, how many permanent employees do u have in each
(1)_________________ (2)_________________(3)_____________
INDUCTION PROGRAM
1) Does the company provide induction for new employees
(yes/no)
2) What are ways of induction
o Diaries
o Manuals
o Brochures
o Company cds
o Any other, please
specify________________________________
3) who participates in delivering the function?

o HRdepartment
o Related department
o All departments
o Any, other please
specify_______________________________
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4)Does induction is
o Same for all
o Different for different levels
5) Induction related to which areas are

provided____________________
6) What is the duration of induction program
`______________________
7) How does the company evaluates the effectiveness of
induction program being conducted
o Feed back method
o 0pinion from supervisor
o Employee satisfaction surveys
o Performance evaluation
o Any other, please specify__________________
8) Do the organization follow any induction

scheduling______________
9) Any other best induction practices you would like to share

__________
__________________________________________________________
BEHAVIORAL TRAINING
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1) HOW does the company recognize the need for training?

o Through questionnaires
o Performance monitoring
o Reference from supervisor
o Absence in pride
o Defective quality product
o Unsatisfactory promotions
o Any others, please
specify_______________________________
_________________________________________________________
2) What type of training is conducted

o On the job training
o Class room sessions
o Online training
o Apprentice Training
o Outdoor training
o Anyotherpleasespecify________________________________
____
3)who gives the training

o Internal trainer
o External trainer
o Any other, please
specify_______________________________
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4) what is the percentage of employee involved in

training_________
5) what is the annual budget for
training______________________
6) what is the module duration of
training_________________________
7) How do you take feedback of training
program__________________
____________________________________________________
8) Please provide us any other information to help us
understand the measurement of training
effectiveness_____________________________
9) Any best practice in training you would like to

share______________________________________________________
_
MOTIVATIONAL TOOLS
1) Does the company provide any recreational activities( you

can mark more than one option in case applicable)
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o Picnics
o Tours
o Family outings
o None
o Any other, please specify _____________________
2) Does the company provide any profit sharing policy
o ESOPS
o Bonus
o Shares
o None
o If any other, please specify___________________________
3) Does the company take up initiative for improving

interpersonal relationship
o Parties
o Functions
o Get together
o Community meetings
o Any other, please specify
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4) does the company provide any retirement benefits
o Gratuity
o VRS( voluntary retirement scheme)
o PF (Provident fund)
o Pension
o Old age security
o Any other, please specify_______________
5) What are the promotional basis adopted by the

organization
__________________________________________________________
6)what are the fringe benefits provided by an

organization____________
____________________________________________________________
7) any other motivational initiative you would like to share

with
us_________________________________________________________
_
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WELFARE ACTIVITIES
1)Does the company provide any transportation

facilities(yes/no)
2) if yes, what type of facilities have been

provided___________
____________________________________________________
3)Does the company provide uniform for its

employees(yes/no)
4)if yes,
o Who is responsible for providing these uniforms
o Who take care of their maintenanence
5) Does the company has well eastablish

cafeteria/canteen(yes/no)
If yes,
6) what facilities are provided

o Lunch
o Breakfast
o Dinner
o Snacks
7) Payment Mode
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o Free
o Subsidized
o Paid
8) does the company has any special aid facility( you can
mark more than one
option if applicable)
o On duty doctors
o Any collaboration with hospitals
o Ambulance for emergency
o First aid kit
o None
o Any other please
specify_________________________________
9) Does the company adopt any on job safety measures
o Fire safety
o Electric/ shock safety
o Radiation safety (if any)
o Any harm while handling the machinery
o None
o If any other
pleasespecify_____________________________
____
10) what policy do the company has for rehabilitation of
injuredstaff__________________________________________________
11) What are the grievance handling procedures of the organization

______
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_____________________________________________________________
12) any other welfare related initiative you would like to

share______________
___________________________________________________________________
REWARDS AND RECOGNISATION
1) What appreciation schemes are being followed by your organization

o Appreciate publicly
o Incentives
o Increments
o Promotions
o Any other please specify,
____________________________________________________________
__________________________________________
2) what are various rewards and recognition schemes for the
organization
o Additional pay for extra work
o Paid vacations
o Overtime
o Monetary rewards
o Perks
o Any other please
specify_____________________________
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3) How do you recognize outstanding performer

o Regularity
o Punctuality
o Initiative
o Extra work
o Productivity
o Any other, please specify____________________________________
___________________________________________________________
4)Any other medical benefits provided____________________________
__________________________________________________________
5) Any other recognisational schemes you would like to share_________
___________________________________________________________
THANKS FOR YOUR VALUEABLE HELP!
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SAAB MARFIN MBA

A COMPARATIVE STUDY OF HR PRACTICES AND

Chapter. No CONTENTS Page

3. PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE CO.LTD. 33

4. IMPLEMENTING HR PRACTICES AND POLICES IN ICICI 51

7. DATA ANALYSIS AND INTERPRETATION 68

ICICI Prudential Life Insurance Life Insurance is one of the largest

non-life from Rs 4 billion to Rs 51 billion.

The role of Human Resources is changing as fast as technology and the

The positive result of these changes is that HR professionals have the

context. The original usage derives from political economy and

The objective of human resources' development (the `s' is important in

Human resource management serves these key functions:

1. Recruitment & Selection

Modern analysis emphasizes that human beings are not "commodities" or

An important controversy regarding labor mobility illustrates the broader

governments of developing nations often regard developed nations that

The debate regarding "human resources" versus human capital thus in

An extreme version of this view is that historical inequities such as

In a series of reports of the UN Secretary-General to the General

strategic and integrated public policies, for example in education, health,

In the very narrow context of corporate "human resources" management,

In general the abstractions of macro-economics treat it this way - as it

macro-economics is the modern and correct definition of "human

1.1 HUMAN RESOURCES DEVELOPMENT

In organizations, in terms of sex and selection it is important to consider

In order to know the business environment in which any organization

Demographics the characteristics of a population/workforce, for

simply advocate an employee base that is a mirror reflection of the

In regard to how individuals respond to the changes in a labour market

agencies/consultants, headhunting, and local/national newspapers. It is

Human Resources Development is a framework for the expansion of

At the organizational level, a successful Human Resources Development

brain-drain they experience.

1.2 MODERN CONCEPT OF HUMAN RESOURCES

Though human resources have been part of business and organizations

Human resource policies are systems of codified decisions, established

Each company has a different set of circumstances, and so develops an

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

The nature of the organization

The establishment of policies can help an organization demonstrate, both

Developing the HR Policies

HR policies provide an organization with a mechanism to manage risk by

1.3 HR POLICIES AND PROCEDURES

This factsheet gives introductory guidance. It:

highlights the main policies and procedures that organizations

Introducing HR policies and procedures gives organizations the

11 policy or practice areas those are crucial to effective people

recruitment and selection

The following paragraphs indicate the range of possible policies which

Recruitment and selection

Successful recruitment depends on finding people with the necessary

Elements to consider when forming a recruitment policy:

job profile/person specification

Designing an appropriate and cost-effective induction programme is a

Elements of an induction policy:

organization information - background and structure; departments;

Organizations may find it useful to have checklists that cover the

Employee relations look at the partnership between employee and