A COMPARATIVE STUDY OF HR POLICES OF ICICI COMPANY LTD

SAAB MARFIN MBA

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

1
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
innovations—technological, legal, and otherwise.

This special report will discuss the best practices in HR management for
2010—in 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 resource’s' 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
organization’s, 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 development…it 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 individual’s 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 individual’s 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 organization’s 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 organization’s 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 organization’s 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
amount—in 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, PSU’s, 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 company’s 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
Advisor’s 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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SAAB MARFIN MBA

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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SAAB MARFIN MBA

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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SAAB MARFIN MBA

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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SAAB MARFIN MBA

3.6 DIFFERENT PRODUCTS

SAVE ‘N’ PROTECT

Save‘n’protect 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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SAAB MARFIN MBA

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 Save’n’ Protect.

SAVE’N’PROTECT 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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SAAB MARFIN MBA

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.

63

SAAB MARFIN MBA

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.

64

Minimum sum assured Rs 75,000

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 S.A+G.A@3.5%+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)

Major Surgical Assistance Rider (MSAR)
2. Income group of minimum Rs 10,000 per month.
65
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 can’t 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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SAAB MARFIN MBA

General features
Surrender: The plan can be surrendered after three policy years have
been completed.
Loans: No loans are available
Paid-up: The policy can acquire a paid up value after a period of three
years.
Tax benefits: The plan carries the sec 88 on the premium paid and sec10
(10) d benefit on death and maturity claim. The tax benefits are subject
to tax laws and are not an integral feature of LifeGuard ROP

67

SAAB MARFIN MBA

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

68
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 sum assured Rs 1,00,000





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

70

A COMPARATIVE STUDY OF HR POLICES OF ICICI COMPANY LTD

A COMPARATIVE STUDY OF HR POLICES OF ICICI COMPANY LTD

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A COMPARATIVE STUDY OF HR POLICES OF ICICI COMPANY LTD