Insurance Industry Guide

TABLE OF CONTENTS
PARTICULARS PAGE NUMBERS
1. Executive Summary 01-02
2. Introduction 03-14
3. Need for Insurance 15-22
4. Company Profile 23-32
5. Vision-Mission 33-36
6. Products 37-43
7. Stress Management 44-61
8. Stress Management at work place 62-82
9. Findings & Analysis 83-95
10. Suggestions 96-98
11. Limitations of the study 99-100
12. Conclusion 101-102
13. Annexure 103-106
14. Bibliography 107-108

EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

Insurance is the pooling of fortuitous losses by transfer of such risk to insurers, who
agreed to provide the pecuniary benefit on their occurance, or to render service connected with
risk. It is the transfer of financial responsibility for the risk at the point of occurance and
conventionally involves the insurer in a commitment to pay. The insurance service lead to
efficient and productive allocation of capital resources, facilitate growth of trade and commerce.
Globalization will certainly increase insurance penetration and all professionals shall equip
themselves to exploit opportunities offered by this sector.
ICICI PRUDENTIAL has maintained its lead amongst the private players of life
insurance with a market share of about 39%. The biggest achievement is in pension segment,
where company introduced a slew of products and captured around 23% of the total pension
market. ICICI Prudential have a customer centric growth strategy and has taken a number of
strategies against this.
The consumers are the largest economic group in any country and the present day
business activities are because of consumers only. Thus, consumers are the pillars of the
economy. The consumers are not only the heart of marketing system, but also the controller of
marketing functions. But if the modern marketing system consumers sovereignty has become a
myth on account of the variety of problems in the process of merchandising. The study of
consumer behavior enables marketers to understand and predict consumer behavior in the
market place; It also promotes understanding of the role that consumption plays in the lives of
the individual.
This gives me an opportunity to work on with this endeavor focusing on the study of
'consumer behavior towards the insurance products' with special reference to ICICI
PRUDENTIAL. The primary objective of the study is to understand the attitude and perception
of the respondents towards insurance products.
The study gives an insight to the insurance industry. It briefly explains about the history
of life insurance sector. It also contains the organizational profile of ICICI PRUDENTIAL,
stating about its mile stones, vision, products, protection, solutions, advertising effectiveness and
finally about its marketing strategies and challenges. The study ends up with the suggestions in
order to modify the current system for a higher growth and progress.

INTRODUCTION
LIFE INSURANCE
Life insurance is a contract providing for a payment of a sum of money to the
person assured or failing him to the person entitled to receive the same on the happening
of certain event. Uncertainty of death is inherent in human life. Ii is this risk, which
gives rise to the necessity for some form of protection against the financial loss arising
from death. Insurance substitutes this uncertainty by certainty. The objective of
insurance is normally to provide:
A Family Protection.
B Provision for old age.
INSURANCE INDUSTRY
ORIGIN OF INSURANCE
The origin of insurance dates back to the 12th
century, the origin of insurance
appeared first in marine and land fields. The ideas of insurance were made in Babylonia
and India at quite an early period; the courts of Hammurabi and Mano recognized the
provision for sharing the future losses. However there is no evidence that insurance in its
present form was practiced prior to 12th
century. Tracing the history of insurance to the
present day, one can easily gauge the performance of industry both collectively as an
industry as well as individually by the companies.
In earlier times, travelers by sea and land were very much exposed to risk of
losing their vessels and merchandise because piracy on the open seas and highway
robbery of caravan were common. References to similar practices are also found in
'Manab Dharma Shastra' which contained rules for sea from contracts which was
observed by traders. Insurance conceived as method of sharing of the losses embodying
the principal of co-operation existed in the early civilization.
Many may not be aware that the life insurance industry of India is as old as it is in

any other part of the world. The first Indian life insurance company was the Oriental Life
Insurance Company, which was started in India in 1818 at Kolkata1. A number of players
(over 250 in life and about
100 in non-life) mainly with regional focus flourished all across the country.
However, the Government of India, concerned by the unethical standards adopted by
some players against the consumers, nationalized the industry in two phases in 1956 (life)
and in 1972 (non-life). The insurance business of the country was then brought under two
public sector companies, Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC).
Reforms were initiated with the passage of Insurance Regulatory and
Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent
regulatory authority, which has put in place regulations in line with global norms. So far
in the private sector, 12 life insurance companies and 9 general insurance companies have
been registered.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT - 1999.
(I.R.D.A)
The object of this act is to provide for the establishment of an authority to protect
the interest of holders of insurance policies, to regulate, to promote and ensure orderly
growth of insurance industries. Insurance Regulatory and Development Authority
(IRDA) has sought the comments of industry participants to finalize the guidelines for
online agents' training institutes.
These proposed guidelines are in addition to its standard instructions and
guidelines applicable for approval/renewal of agents' training institutes. The guidelines
would be applicable to all the online training institutes including in-house training
institutes of the insurers.
As per the draft guidelines, the applicant should undergo at least 120 hours
practical training in life or general insurance business. The composite training should be
for at least 180 hours, where the applicant is seeking license for the first time to act as an
insurance agent.
The duration should be minimum of 24 days for 120 hours training and 36 days

for 180 hours training with a maximum five hours per day. Stating that no product
training/market survey should be included into this 120/180 hours training, the regulator
said revision examination could form part of the training.
DUTIES, POWERS AND FUNCTIONS OF AUTHORITY:
•• The powers and functions of the authority include registration of insurers,
intermediaries and agents regulations of terms and conditions of contract of
insurance, promoting and regulating professional organizations connected with the
insurance, monitoring investment of funds and solvency margin of insurance
companies.
•• The authority is to be advised by a committee to be known as the insurance advisory
committee, which shall consists of not more than 25 members including ex-officio
members in the insurance sector. The insurance advisory committee is expected to
advice the authority on matters relating to making of the regulations
•• An Indian insurance company has been defined as a company incorporated under the
Companies Act - 1956 and the paid capital of General Insurance business will have
to be not less than Rs 100/- Crores and in case of companies wanting to transact
reinsurance business the paid capital will have to not less than Rs 200/- Crores.
•• It has also been notified that every insurance company will have to appoint an
Actuary to be approved by I.R.D.A. The duty of the Actuary is to insure that
The assets are valued in appropriate manner
The liabilities are evaluated as required
The prescribed margin for maintaining solvency is complied with.
•• The I.R.D.A also issued regulations with regards to advertisement so as to
include almost any public communication for a sale of insurance policy.
THE FUNDAMENTAL / PRINCIPALS OF LAW OF INSURANCE.
UTMOST GOOD FAITH:
The parties to the commercial contract, according to the law are required to

observe good faith. The seller cannot mislead the buyer in respect of transactions,
but he has no subject of the contract, it is the buyer’s duty to be careful while
entering into a contract. 'LET THE BUYER BE AWARE' is a legal rule.
INSURABLE INTEREST:
The owner of the property has a right under law to effect insurance on the
property if he is likely to suffer financially when property is lost or damaged.
This legal right to insure is called insurable interest, without insurable interest the
contract of insurance will be void. Because of this legal requirement of insurable
interest the insurance contracts are not gambling transactions.
INDEMNITY:
The principal of indemnity arises under common law and requires that an
insurance control should be a contract of indemnity only and nothing more. The
object of principals to place the insured after a loss in the same financial position
as far as possible, as he is occupied immediately before the loss. The effect of this
principal is to prevent the insured from making the profit out of his loss or
gaining any advantage or benefit. The object of a contract of insurance is to
protect the financial interest of the insured in the subject matter of insurance.
SUBROGATION:
The principal of subrogation arises from the principal of indemnity. Subrogation
may be defined as transfer of rights and remedies of the insured to the insurer
who has indemnified the insured in respect of the loss. If the insured has any
rights of action to be recovered the loss from any third party, who is primary
responsible for the loss, the insurer having paid the loss is entitled to avail
himself of these rights to recover the loss from the third party. The effect is that
the insured does not receive more than actual amount of his loss and any
recovery affected from the third party goes to the benefit of the insurer to reduce
the amount of his loss
INSURANCE MARKET IN INDIA
By any yardstick, India, with about 200 million middle class households, presents
a huge untapped potential for players in the insurance industry. Saturation of markets in

many developed economies has made the Indian market even more attractive for global
insurance majors. Life insurance is mainly considered as a saving instrument rather than
an investment avenue as it promotes compulsory savings besides reducing tax burden on
the policyholder and protect the family of the policyholder in the event of unforeseen
happening. It is the only saving instrument, which covers the life risk besides giving tax
concession both at entry (premium paid) and at exit
HISTORY AND PRESENT STATUS OF INSURANCE MARKET IN
INDIA
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reviles the 360-degree turn witnessed over a
period of almost two centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR
The business of life insurance in India in its existing form started in India in
the 1818 with the establishment of Oriental Life Insurance Company in Calcutta. Some
of the important milestones in the Life Insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statue to
regulate the life insurance business.
1928: The Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-insurance business.
1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interest of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over
by the central government and nationalized. LIC found by an Act of Parliament, viz.
LIC Act 1956, with a capital contribution of rupees Five Crores from the Government of

India.
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 setup with the objective of
complimenting the reforms initiated in the financial sector. The reforms where 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:
Structure
a. Government stake in the insurance companies to be brought down to 50%.
b. Government should take over the holdings of GIC and its subsidiaries so
that these subsidiaries can act as independent corporations.
c. All the insurance company should be given greater freedom to operate.
Competition
A Private companies with a minimum paid up capital of Rs. 1bn should be
allowed to enter the industry.
b. No company should deal both the life insurance and general insurance
through a single entity.
c. Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.
c. Postal Life Insurance should be allowed to operate in the rural market.
d. Only one state level Life Insurance Company should be allowed to

operated in each state.
Regulatory body
a. The Insurance Act should be changed.
b. An Insurance regulatory body should be setup.
Reforms in the insurance sector were initiated with the passage of the IRDA Bill
in the Parliament in December 1999. The IRDA since its incorporation as statutory body
in April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
IRDA's online service for issue and renewal of license to agents.
The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have trained work force 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 12 life insurance and
6 general insurance companies have been registered.
Insurance is an Rs 400 billion business in India, and together with banking
services adds about 7% to India's GDP. Gross premium collection is about 2% of GDP
and has been growing by 15 to 20% per annum. India also has the highest number of life
insurance policies in force in the world, and total investable funds with the LIC are
almost 8% of GDP. Yet more than three fourth of India's insurable population has no life
insurance or pension cover. Health insurance of any kind is negligible and other forms
of non life insurance are much below international standards.
To tap the vast insurance potential and to mobilize long term savings we need
reforms which include revitalizing and restructuring of the public sector companies, and
opening up the sector to private players. A statutory body needs to be made to regulate
the market and to promote a Healthy market structure. Insurance Regulatory Authority

(IRA) is one such body, which checks on these tendencies. IRA role comprises of
following three functions:
a. Protection of consumer's interest
b. To ensure financial soundness and solvency of the insurance industry,
c. To ensure healthy growth of insurance market.
An insurance policy protects the buyer at some cost against the financial loss
arising from a specified risk. Different situations and different people require a different
mix of risk-cost combinations. Insurance companies provide these by offering schemes of
different kinds.
Unfortunately, the concept of insurance is not possible in our country. As per the
latest estimates, the total premium income generated by life and general insurance in
India is estimated at around 1.95% of GDP. How ever India's share of world insurance
market has shown an increase of 10% from 0.31% in 1996-97 to 0.34% in 1997-98.
India's market share in the life insurance business showed a real growth of 11% there by
outperforming global average of 7.7%. Non life insurance business grew by 3.1% against
global average of 0.20%. In India insurance pending per capita was among the last in the
world at $7.6 compared to $7 in the previous year . Amongst the emerging economies,
India is one of the least insured countries but the potential for growth is phenomenal, as a
significant portion of its population is in services and the life expectancy also increased
over the years.
The nationalized insurance industry has not offered consumers a variety of
products. Opening of the sector to private firms will foster competition, innovation and
variety of products. It would also generate greater awareness on the need for buying
insurance as a service and not merely for tax exemption, which is currently done on the
demand side, a strong correlation between demand for insurance and per capita income
level suggests that high economic growth can spur growth in demand for insurance. Also
there exists a strong correlation between insurance density and social indicators such as
literacy. With social development, insurance demand will grow.

LIFE INSURANCE MARKET IN INDIA
Life Insurance Statistics
Indian Population I bn
GDP as on 2000 ( Rs bn) 50000 bn
Gross Domestic Saving as a % of GDP 32%
NCAER estimate is Insurance Population 240 mn
Estimated market 2010 950 mn
India has an enormous middle class that can afford to buy life, health, and
disability and pension plan products. The low level of penetration of life insurance in
India compared to other developed nations can be judged by a comparison of per capita
life premium.
Country Life Premium per capita US $ in 1994
Japan 3817
UK 1280
USA 964
India 4
Clearly, there is considerable scope to raise per capita life premium in the market
is effectively tapped. India has traditionally been a high savings oriented country often
described as being on par with thrifty Japan. Insurance sector in the US is a big in the size
as the banking industry there. This gives us an idea of how important is the sector is.
Insurance sector canalizes the saving of the people to long-term investments. In India
where infrastructure is said to be critical importance, this sector will bring the nations
own money for the nation.
In the three years time we would expect 10% of the population to be under some
sort of an insurance cover. Thus assuming a premium of Rs 5000 on an average, 100
million Rs 5000 = Rs 500 billion.
This has made the sector the hottest one in India after IT. With social security and
security to public at large being the agenda for opening the sector, the role of the
regulator becomes all the more serious and one would be carefully watched at every step.

The Insurance Regulator and Development bill is now an Act. With this India is
now the cynosure of all the global insurance players. Numerous player, both Indian and
foreign have announced their intention to start their insurance shops in India. IRDA,
under chairman ship of Mr. RANGACHARI, opened the window for applying license in
India.
One of the main difference between the developed economies and the emerging
economies is that insurance products are bought in the former while these are sold in
later. Focus if insurance industry is changing towards providing a mix of both
protection/risk cover and long-term investment opportunities.

WHY LIFE INSURANCE?
WHY LIFE INSURANCE?
Life insurance cover is essential for it provides the following benefits:
a. A lump sum payment to the nominees at the time of the death of the policyholder;
b. A regular payment to the nominees in the event of the death of the policyholder;
c. Tax benefits, as premium paid to reduce the liability of tax;
d. Relieves economic hardships in the family on the uneventful death of the sole income
holder;
e. Inculcates the habit of saving.

NEED FOR INSURANCE
The need for life insurance comes from the need to safeguard our family. If you
care for your family's needs you will definitely consider insurance.
Today insurance has become even more important due to the disintegration of the
prevalent joint family system, a system in which a number of generations co-existed in
harmony, a system in which a sense of financial security was always there as there were
more earning members.
Times have changed and the nuclear family has emerged. Apart from the other
pitfalls of a nuclear family, a high sense of insecurity is observed in it today besides, the
family has shrunk. Needs are increasing with time and fulfillment of these need is a big
question mark.
How will you be able to satisfy all those needs? Better lifestyle, good education,
and your long desired house. But again you just cannot fritter away all your earnings.
You need to save a part of it for the future too a wise decision. This is where insurance
helps you.
Factors such as fewer numbers of earnings members, stress, pollution increased
competition, higher ambitions etc are some of the reasons why insurance has gained
importance and where insurance plays a successful role.
An Overview
Insurance business is divided into four classes:
1) Life Insurance business
2) Fire
3) Marine
4) Miscellaneous Insurance.
Life Insurers transact life insurance business; the rest is transacted by General
Insurers. No composites are permitted as per law. The business of Insurance essentially

means defraying risks attached to any activity over time (including life) and sharing the
risks between various entities, both persons and organizations. Insurance companies (ICs)
are important players in financial
Markets as they collect and invest large amounts of premium. Insurance products
are multi purpose and offer the following benefits:
1. Protection to the investors
2. Accumulate savings
3. Canalize savings into sectors needing huge long term investments.
ICs receive, without much default, a steady cash stream of premium or
contributions to pension plans. Various actuary studies and models enable them to
predict, relatively accurately, their expected cash outflows. Liabilities of ICs being long-
term or contingent in nature, liquidity is excellent and their investments are also long-
term in nature. Since they offer more than the return on savings in the shape of life-cover
to the investors, the rate of return guaranteed in their insurance policies is relatively low.
Consequently, the need to seek high rates of returns on their investments is also low. The
risk-return trade off is heavily tilted in favour of risk. As a combined result of all this,
investments of insurance companies have been largely in bonds floated by GOI, PSUs,
state governments, local bodies, corporate bodies and mortgages of long term nature. The
last place where Insurance companies are expected to be over-active is bourses.
Lately ICs have ventured into pension schemes and mutual funds also. However,
life insurance, constitutes the major share of insurance business. Life Insurance depends
upon the laws of mortality and there lies the difference between life and general
insurance businesses. Life has to extinguish sooner or later and the claim in respect of life
is certain. In case of general insurance, however, there may never be a claim and the
amount can never be ascertained in advance. Hence, Life Insurance includes, besides
covering the risk of early happening of an event, an element of savings also for the
beneficiaries. Pension business also derives from life insurance in as much as the pension
outgo again depends upon the laws of mortality. The forays made by insurance
companies in this area are, therefore, natural corollary of their business.

TYPES OF INSURANCE POLICIES
Broadly there are 3 types of life insurance policies:
a. Term Insurance Plans
b. Whole Life Insurance
c. Endowment Insurance Plans
Term Insurance Plans:
Pure life covers where you pay for risk cover and do not expect to receive
anything else in return is now available in India. Opting for such policy will improve the
efficiency of policy premium and enable you for a bigger risk cover for the same cost.
These are term insurance plans with maturity benefits; some term plans give your

premium amounts back with interest. This is a marketing policy to suit the general
psychology and should normally involve higher premium cost.
Whole life insurance plans:
Whole life policies require you to pay premium through out your life and cover
risk for whole life. The policies without profit are cheaper.
Endowment Insurance plans (with or without money back):
Endowment policies are costliest and among this group, money back policies
involve paying highest premium. They give you maturity benefits (normally sum assured)
and additional profit by way of bonus, guaranteed additions; loyalty bonus etc. money
policies also provide partial payment back to you at pre-set time periods.

DEFINITION OF SOME TYPES OF POLICIES
1. ANNUITY
An annuity is a steady stream of equal payments that one receives every year, or
every month either for life or a fixed number of years, as return after making an
investment either as a lump sum or through installments paid over a certain number of
years, a specific sum. Upon the death of the annuitant, or at the expiry of the period fixed
for annuity payments, the invested annuity fund is refunded usually along with a small
bonus. Annuities differ from all other forms of life insurance in one fundamental way-
they do not provide any insurance cover but offer a guaranteed income for a certain
period or for life.
Typically annuities are bought to generate income during one's retired life, which
is why they are also called pension plans. An annuity provides a solution to the biggest
financial insecurity of old age retires and the income from salary ceases.
2. ENDOWMENT
Endowment policies cover the risk for a specified period at the end of which the
sum assured is paid back to the policyholder along with the entire bonus accumulated
during the term of the policy. It is this feature the payment of the endowment to the
policyholder upon the completion of the policy's term, which rightly accounts for the
popularity of endowment policies.
Typically, one's responsibility for the financial protection of the family reduces
significantly once the children are grown up and independently settled. The focus then
shifts to managing a smaller family perhaps only oneself and one's spouse after
retirement/ this is where the endowment the original sum assured and the accumulated
bonus received back comes handy. You can either use the endowment amount for buying
an annuity policy to generate a monthly pension for the whole life, or put it in any other
suitable investment of your choice. This is the major benefit of an endowment policy
over a whole life.
3. MONEY BACK

Unlike endowment plans, in money back policies the policyholder gets periodic
"survivance payments" during the term of the policy and a lump sum amount on
surviving its term. In the event of the death during the term of the policy, the beneficiary
gets full sum assured without any deductions for the amount paid till date, and no further
premiums are required to be paid. These types of policies are very popular, since they can
be tailored to get large amount at a specific periods as per the needs of the policyholder.
FUTURE OF LIFE INSURANCE MARKET
Even at modest estimates the size of life insurance market in India could be
around Rs. 40000 billion covering just 250 mn people…
LIC had enjoyed the monopoly of the big life insurance market since 1956. LIC
was in for a surprise now an then when it found that, among air crash casualties or rail
accident victims, only very few had life insurance cover. In fact LIC did attempt to
evaluate the size of the market and look at broad homogeneous segments of the market
based on the data provided by Decennial Census Report relating to worker population
categorized into groups based on occupations. However LIC's major segmentations were
the urban, rural, male, female, medical and non-medical segments. The census of
occupation data was used more as a framework for formulating the business plans. But,
now with the entry of new player, very conscious of their market shares, the evaluation of
the size of the market for life insurance assumes importance. The market size with its
viable segments is to be identified and suitable products to meet the needs of these
segments developed.
Life insurance market covers the entire age range of the population of 1000
mn in India. However taking into account their economic conditions and their
ability to pay the premium for some sort life insurance cover or an annuity, the
number of eligible prospects for life insurance may be put around 30% of the total
population viz, 300 mn. LIC has on its books as on date 125 mn policies. Research
had shown, that each of these holders of the policies have on an average, 1.6 (as
many policy holders have more than one policy). Thus the no of persons holding
life insurance policies with LIC good work out to 75 mn. This means only 25% of

the potential market has so far covered, leaving the remaining 75%- a vast market of 225
mn persons- to be covered.
Market size ever expanding…
This market size is dynamic and ever expanding. The growth is dictated by several
factors such as:
1. An addition of around 20 mn of new population each year.
2. More and more persons due to improvements in economic conditions move
continuously into the zone of people with ability to pay premium for a life
insurance policy.
3. Many among the existing policyholders are grossly under insured. They need
and can afford additional insurance. These can be made to join the market as
potential prospects for additional insurance. These form the creamy layers
market capable of being very good source of high volume of business.
Taking all these factors into account it can be seen that the size of the market for
life insurance in India is enormous. Assuming the number of persons who can be sold an
insurance policy to be 250 mn, in terms of number of policies, this works out to 400 mn
policies. In financial terms, taking the average size of the policy as Rs 1 lakh, the sum
assured works out to Rs 40000 bn or $ 800 bn. The first year's premium income can be
assume as Rs 6250 per annum per policy. The figures would keep increasing year by year
due to the improvement in the economic conditions leading to increase in the number of
potential prospects .

COMPANY PROFILE
ICICI GROUP
OVERVIEW OF ICICI BANK
ICICI Bank is India's second-largest bank with total assets of about Rs.146,214
crore at December 31, 2004 and profit after tax of Rs. 1,391 crore in the nine months
ended December 31, 2004 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of
about 530 branches and extension counters and over 1,880 ATMs. ICICI Bank offers a
wide range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and through its specialized subsidiaries and
affiliates in the areas of investment banking, life and non-life insurance, venture capital
and asset management. ICICI Bank set up its international banking group in fiscal 2002
to cater to the cross-border needs of clients and leverage on its domestic banking
strengths to offer products internationally. ICICI Bank currently has subsidiaries in the
United Kingdom and Canada, branches in Singapore and Bahrain and representative
offices in the United States, China, United Arab Emirates, Bangladesh and South Africa
ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai
and the National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).
As required by the stock exchanges, ICICI Bank has formulated a Code of
Business Conduct and Ethics for its directors and employees.

At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs.
308.00 billion (US$ 7.00 billion) ranked third amongst all the companies listed on the
Indian stock exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI
Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and
secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002.
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. In the 1990s, ICICI transformed its business from a
development financial institution offering only project finance to a diversified financial
services group offering a wide variety of products and services, both directly and through
a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first
Indian company and the first bank or financial institution from non-Japan Asia to be
listed on the NY After consideration of various corporate structuring alternatives in the
context of the emerging competitive scenario in the Indian banking industry, and the
move towards universal banking, the managements of ICICI and ICICI Bank formed the
view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative
for both entities, and would create the optimal legal structure for the ICICI group's
universal banking strategy. The merger would enhance value for ICICI shareholders
through the merged entity's access to low-cost deposits, greater opportunities for earning
fee-based income and the ability to participate in the payments system and provide
transaction-banking services. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new business
segments, higher market share in various business segments, particularly fee-based
services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001,
the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two

of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved
by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat
at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002.
ICICI Bank is India's second largest bank wit an asset base of Rs. 106812 crores.
ICICI bank provides a broad spectrum of financial services to individuals and companies.
This includes mortgages, car and personal loans, credit and debit cards and corporate and
agricultural finance. The bank services a growing customer base of more than 7 mn
customer accounts and five mn bondholders accounts through a multi channel access
network. The includes about 450 branches and extension counters, 1675 ATMs, call
centers and Internet banking. ICICI bank posted a net profit of Rs 1206 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 only the Indian company to
be awarded an investment grade international credit rating. The enjoys the highest rating
from all Indian leading rating agencies.
OVERVIEW OF ICICI VENTURE WING

ICICI Venture, incorporated in 1988, is the most experienced and largest private equity
and venture fund management company in India with funds currently under management
in excess of Rs.20 billion (USD 400 million).
Over the last 15 years, ICICI Venture has been successful in identifying trends
well ahead of the curve; be it retail, media and entertainment, information technology,
real estate or pharmaceuticals and biotechnology. During this period ICICI Venture
launched and managed 8 funds with a corpus exceeding Rs. 20billion (USD 400 million).
Each fund had a distinct investment theme and ICICI Venture today has some of the best
known and managed companies in India in its portfolio. Herein ICICI Venture has
followed the philosophy of being a multi-sector player ensuring an optimum balance of
risk and return to its investors.
ICICI Venture has the distinction of managing a large number of exits in the
country. With over 100 liquidity events, the organization has reaped rich experience and
is well positioned to handle IPOs, strategic sale and/or mergers.
ICICI Venture has a wide network of third party investors, which include
domestic investors such as public sector banks, financial institutions and insurance
companies. A significant portion of the fund's corpus is also from international
development financial institutions and international funds.
The company has over 25 qualified professionals with experience across sectors
and functions. The capabilities of the team, structure of the organization, emphasis on
value creation and performance evaluation matrices enable ICICI Venture to extract
superior returns from its investments.
ICICI Venture has now launched the India Advantage Fund, with a corpus of
Rs.10 Billion (USD 225 million). The Fund will invest in mid-sized growth companies
for funding through expansions, acquisitions and restructuring. The Fund will also focus
on mezzanine funding and buyouts.
ICICI PRUDENTIAL

ICICI PRUDENTIAL Life Insurance was established in 2000 with a commitment
to expand and reshape the life insurance industry in India. The company was amongst the
first private sector insurance company to begin operations after receiving approval from
Insurance Regulatory Development Authority (IRDA), and in the same time since, has
taken several steps towards realizing its goal.
THE COMPANY
ICICI PRUDENTIAL Life Insurance Company is a joint venture between ICIC, a
premier financial powerhouse and prudential plc; a leading international financial
services group headquarters in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance company to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
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 customers. Riding on the success of this relationship, the two companies
joined hands once more in 2000, to form ICICI PRUDENTIAL LIFE INSURANCE, with
a commitment to provide leading -edge life insurance solutions. ICICI Bank has 74%
stake in the company, and Prudential plc has 26%.
To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.
This we hope to achieve by:
• Understanding the needs of customers and offering them superior products and

service
• Leveraging technology to service customers quickly, efficiently and conveniently
• Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
• Providing an enabling environment to foster growth and learning for our
employees
• And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5
core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of
the values describe what the company stands for, the qualities of our people and the way
we work
We do believe that we are on the threshold of an exciting new opportunity, where
we can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.
PRUDENTIAL PLC
Established in 1848, Prudential Plc is a leading international financial services
company in UK with around US $ 250 bn funds under management, and more than 16
million customers worldwide. Prudential has brought to market an integrated range of
financial services products that now includes:
• life assurance
• pensions
• mutual funds
• banking
• investment management
• general insurance
In Asia Prudential is UK's largest life insurance company with a vast network of
22 life and mutual fund operations in 12 countries: China, Hong Kong, India, Indonesia,
Japan, Korea, Malayasia, Philippines, Singapore, Taiwan, Thailand, Vietnam. Since

1923, prudential has championed customer centric products and services, supported by
over 60000 staff and agents across the region.
DISTRIBUTION
ICICI PRUDENTIAL has one of the largest distribution networks amongst
private life insurance in India, having commenced operations in 28 cities and towns in
India. These are: Ahmedabad, Bangalore, Chandigarh, Chennai, Coimbatore, Gurgaon,
Hyderabad, Indore, Jaipur, Jalandhar, Kanpur, Cochin, Kolkotta, Kottaym, Lucknow,
Ludhiana, Madurai, Mangalore, Meerut, Nagpore, Nasik, Nodia, New Delhi, Pune,
Thane, Vododara, Vashi.
The company has a largest number of banc assurance tie-ups, having agreement
with ICICI Bank, Citi Bank, Allahabad bank, Federal bank, South Indian Bank, Bank of
India, Lord Krishna Bank, Punjab and Maharashtra co-operative Bank, as well as some
corporate agents. It has also tied-up with organizations like Dahn for distribution of
Salaam Zindagi, a policy for the socially and economically under privilege sections of
society.
SERVICE
ICICI PRUDENTIAL has recruited and trained over 18000 insurance agents to
interface with and advice customers, and has the highest number amongst private life
insurers on the renowned Million Dollar Round table (MDRT). Further, it leverages its
state-of-the-art IT infrastructure to provide superior quality of service to customers.
MILESTONES
ICICI PRUDENTIAL life insurance has crossed Rs 500 crore premium income
mark on March 31, 2003 having issued nearly 350000 policies for a sum assured of Rs
8700 crore since its inception.
The last fiscal had been significant growth for ICICI PRUDENTIAL across all
segments, with 246827 policies issued in the period April 2002-March 2003, and Rs 348
Crore premium from new business in the same period, a 200 per cent growth over the
previous fiscal (April 2001-March 2002).
The company had also met all its rural and social sector obligations, said a press

release. The growth been driven by pensions and unit linked products. It has garnered
23% of pensions premium amongst all players for the period April 2002-February 2003
and 34% in Feb alone. Today the company has established itself the number one private
life insurer in the country.
HISTORY:
Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and
Prudential plc of U.K. in November 2000, ICICI Prudential Life Insurance was granted
Certification of Registration for carrying out Life Insurance business by the insurance
Regulatory & Development Authority of India. The company issued its first policy on
December 12, 2000.
Year of review 2002-2003:
ICICI Prudential has consolidated its position as the leading private life insurer in
India. ICICI Prudential's annualized premium grew more than three fold over the
previous year. Continuing with its 'Customer First' philosophy, ICICI Prudential has
significantly expanded its presence to 29 operational Branches (2001-2002: 16), with the
Advisor Force growing to over 18000. It has also strengthened its Alternate Distribution
channels, i.e. Bancassurance, Corporate Agents and Direct Marketing, making purchase
of insurance more accessible. Bancassurance and Direct Marketing channels have
contributed to over 18% of the Annualized Premium.
ICICI Prudential was amongst the first to identify the emerging opportunity in the
Pension segment and launched two linked pension products Life time Pension and Life
Link Pension, which have been well received in the market.
MANAGEMENT
BOARD OF DIRECTORS
ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.

Mr. K.V. Kamath, Chaiman
Mr. Mark Norbon
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. Kevin Holmgren
Mr. M.P.Modi
Mr. R Naryanan
Ms Shikha Sharma
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 - Operations & Underwriting
Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Sales & Marketing
Mr. Anil Tikoo, Head - Information Technology.

VISION-MISSION
VISION
To make ICICI Prudential the dominant Life and Pensions player built on trust
by world class people and service.
This we hope to achieve by:
• Understanding the needs of customers and offering them superior products and
service

• Leveraging technology to service customers quickly, efficiently and conveniently.
• Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to our policyholders.
• Providing an enabling environment to foster growth and learning for our employees.
• And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 core
values:
• Integrity
• Customer First
• Boundaryless
• Ownership
• Passion
Each of the values describe what the company stands for, the qualities of our
people and the way we work. We do believe that we are on the threshold of an existing
new opportunity, where we can play a significant role in redefining and reshaping the
sector. Given the quality of our parentage and the commitment of our team, there are no
limits to our growth.
VISION-MISSION
To be dominant life and pension players built on trust by world class people
and service.
INTEGRITY

• Stand up honestly and fearlessly for what they truly care about.
• Always act in a consistent and equitable manner.
• Don’t compromise the future to pay for the present.
CUSTOMER FIRST
• Own the customer: Deliver the promise.
• Listen actively, stretch continually to add value to customers and channel
partners
BOUNDARYLESS
• Never say "its not my job" go beyond the call of duty.
• Experiment- believe anything is possible
• Seek new ideas regardless of source
• Share ideas and thoughts freely across levels and functions
OWNERSHIP
• If it is to be, it is up to me
• Bias for action
• Own mistakes. Learn from failures
• Confront hard facts, pursue goals relentlessly
• Accountable for team performance
PASSION
• Winning instinct- transmit boundless energy and enthusiasm to drive
results

• Stand up and make a difference - challenge status quo and drive change
• Demonstrate speed for competitive advantage
• Passionately nurture and reward excellence

PRODUCTS
PRODUCTS
Insurance Solutions For Individuals:
ICICI PRUDENTIAL Life Insurance offers a range of innovative, customer centric
products that meet the needs of customer at every life stage. Its 13 products can be enhanced with
up to four riders, to create a customized solution for each policyholder.
Saving Solutions
ICICI PRUDENTIAL Save and Protect is a traditional endowment savings plan

that offers life protection along with adequate returns.
ICICI PRUDENTIAl CashBank is an anticipated endowment policy ideal for
meeting milestone expenses like a child's marriage, expenses for child's education or
purchase of an asset.
Protection Solutions
ICICI PRUDENTIAL Life Guard is a protection plan, which offers life covers at
very low cost. It is available in three options - level term assurance, level assurance with
return of premium and single premium.
Child Solutions
ICICI PRUDENTIAL Smart Kid provides guaranteed educational benefits to a
child along with life insurance cover for the parent who purchases the policy. The policy
is designed to provide money at important milestones in child's life.
Market Linked Solutions
ICICI PRUDENTIAL LifeLink is a single premium Market Linked Insurance
Plan, which combines life insurance cover with the opportunity to stay, invested in the
stock market.
ICICI PRUDENTIAL LifeTime offers customers the flexibility and control to
customize the policy to meet the changing needs at different life stages. It offers three
investment options
• Growth Plan
• Income Plan
• Balanced Plan
Retirement Solutions
• ICICI PRUDENTIAL Forever Life is retirement product targeted at individuals in
their 30's

• ICICI PRUDENTIAL LifeTime Pension is a regular premium market linked pension
plan.
• ICICI PRUDENTIAL LifeLink Pension is a single premium market linked pension
plan.
Single Premium Solutions
• ICICI PRUDENTIAL Assure Invest is a single premium savings product with life
cover for terms of 5, 7 or 10 years.
• ICICI PRUDENTIAL Reassure is a retirement product for senior citizens who are on
the verge of retirement or have just retired.
• ICICI PRUDENTIAL also launched "salaam zindagi", a social sector group insurance
policy targeted at the economically under privileged sections of the society.
Group Insurance Solutions
ICICI PRUDENTIAL also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
ICICI PRUDENTIAL 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 PRUDENTIAL 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 PRUDENTIAL GROUP TERM PLAN:
ICICI Pru's flexible group term solution helps to provide affordable cover to
members of a group. The cover could be uniform or based designation or rank or a
multiple of salary. The benefit the policy is paid to the beneficiary nominated by the

member on his/her death.
FLEXIBLE RIDER OPTIONS;
ICICI PRUDENTIAL life offers for flexible riders, which can be added to the
basic policy at a marginal cost, depending on the specific needs of the customer.
• Accident and disability benefit: if the death occurs as the result of an accident during
the term of the policy the beneficiary receives an additional amount equal to the sum
assured under the policy. If the death occurs while
• Level Term Cover: This rider provides the option to increase the risk cover. It may be
increased for an additional amount upto a maximum of the existing basics sum
assured on your policy
• Critical Illness Benefit: protects the insured against the financial loss in the event of 9
specified critical illnesses. Benefits are payable to the insured for medical expenses
prior to death.
• Major Surgical Assistance Benefit: provides financial support in the event of medical
emergencies, ensuring that benefits are payable to the life assured for medical
expenses incurred for surgical procedures. Cover is offered against 43 different
surgical procedures.
AWARENESS…
According to Saugata Gupta Chief - Marketing of ICICI Pru life's
communication strategies have been very successful in building the brand and driving
awareness of the company and the category. ORG-Marg's Brand track survey undertaken
last year indicate that though awareness of LIC stands at 100%, ICICI Pru life stands not
far behind in the second place at 70%. Further the awareness scores for ICICI Pru life
double between February 2001 and September 2001.
ORG Marg research also showed that the communication not only created
saliency and awareness, but also succeeded in influencing the buying decision. ICICI Pru
life emerged far ahead of other private players as far as share of wallet went, with 52% of
the respondents saying that they intended to buy policy from ICICI Pru life.

ADVERTISING EFFECTIVENESS…
ICICI Pru is a case study in the role of marketing in reshaping an industry. It
highlights how an industry where "sell" and "push" were often used words and consumer
was nothing more than a file number, has changed to one where "consumer preference"
and "consumer pull" rule the roost. Here's a look at how ICICI Pru changed the rules of
the games and emerged a leader in the process.
BACKGROUND
When the insurance sector was liberalized in 2000, the private players contend
with a few issues. Ratio of premium to GDP was low: 1.3% of GDP was invested in
insurance. Insurance penetration was at an abysmal 22% of insurable population. Besides
the above the private players were faced with attitudinal barriers, perception of insurance
has a tax saving tool and lack of a consumer centric approach in service and product
offerings.
THE MARKETING CHALLENGES FACING ICICI Pru:
The challenge therefore was to change established category drivers (death
payment and Tax saving) and to get the consumer to evaluated insurance on a more
emotional plat form rather than a mere rational decision. (tax savings).
THE CAMPAIGN OBJECTIVES:
• Reposition the category in the consumer's mind. Influence the consumer to view it as
a protection instrument and not a tax saving product alone.
• In the process, create differentiation for the ICICI Pru brand as a provider of social
security and family protection.
• Achieve leadership status in saliency, image and product parameters.
• Build credibility and trust.
CREATIVE STRATEGY:
The essence of the creative strategy is to get the consumer to re look at insurance
as a means to lead a worry free life and not as a necessary evil. To this effect the core

brand insight highlighted was "As head of the family, it is my responsibility to take care
of my loved ones and protect them from the uncertainties of life", summed up in the
advertising idea: 'we cover you at every step in life'
MARKET STRATEGY:
In a market likely to be cluttered, we used multiple touch points to reach the
consumer. The role for each medium was envisaged. The TV medium was used to
enhance the emotional link with the brand. Strategic use of 15 sec. Edits facilitated high
frequency levels. In print, the cost per response rather than the cost per thousand as
responses were measured in form of call-ins. Radio FM, Cinema, Internet were used to
create a media multiplier effect.
THE RESULTS OF COMMUNICATION EFFORTS:
Being number one in awareness and saliency. Awareness: ICICI Pru showed a
significant jump in awareness between Feb and Sept 2001. Image: highest score among
all insurance players including LIC, on image parameters like safety, modernity, service,
good returns
Etc. intention to invest: next only to LIC as per research
SUM UP
In just over a year ICICI PRUDENTIAL has emerged as India's # 1 private life
insurance company with almost 50% of the private players has sold highest number of
policies both in volume and value.

ANALYSIS OF THE QUESTIONNARIE OF THE EMPLOYEES
1. Do you have various other interests (social, religious), which remain neglected
because you do not get time to attend to these
Never 8%
Occasionally 4%
Sometimes 52%
Frequently 36%
Very 0%

SOCIAL ASPECTS
8%
4%
52%
36%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently

2. Do you feel stagnant in your role
Never 4%
Occasionally 12%
Sometimes 32%
Frequently 52%
Very 0%
ROLE STAGNATION
4%
12%
32%
52%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently

3. Are you able to satisfy the conflicting demands of the various peer level people
Never 12%
Occasionally 24%
Sometimes 24%
Frequently 36%
Very 4%

Role Expectation Conflict
12%
24%
24%
36%
4%
Never
Occasionally
Sometimes
Frequently
Very frequently
4. Would you like to take more responsibility than at present

Never 8%
Occasionally 24%
Sometimes 16%
Frequently 36%
Very 16%
Role Erosion
8%
24%
16%
36%
16%
Never
Occasionally
Sometimes
Frequently
Very frequently

5. The amount of work you have to do interferes with the quality you want to
maintain
Never 4%
Occasionally 4%
Sometimes 48%
Frequently 40%
Very 4%
Role Overload
4% 4%
48%
40%
4%
Never
Occasionally
Sometimes
Frequently
Very frequently

6. Is there not enough interaction between your role and other roles
Never 8%
Occasionally 8%
Sometimes 32%
Frequently 52%
Very 0%
Role Isolation
8%
8%
32%
52%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently

7. Do you wish to acquire more skills to handle the responsibilities of your role
Never 4%
Occasionally 8%
Sometimes 20%
Frequently 32%
Very 36%

Personal Inadequacy
4%
8%
20%
32%
36% Never
Occasionally
Sometimes
Frequently
Very frequently
8. If you had full freedom to define your role you would be doing some things
different from what you do now
Never 0%
Occasionally 16%
Sometimes 44%
Frequently 20%

Very 20%
Self-Role Distance
0%
16%
44%
20%
20%
Never
Occasionally
Sometimes
Frequently
Very frequently

9. Several aspects of your role are vague and unclear
Never 40%
Occasionally 16%
Sometimes 12%
Frequently 32%
Very 0%
Role Ambiguity
40%
16%
12%
32%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently

10. Do you wish to have more financial resources for the work assigned to you
Never 4%
Occasionally 4%
Sometimes 4%
Frequently 28%
Very 60%

Resource Inadequacy
4% 4%
4%
28%
60%
Never
Occasionally
Sometimes
Frequently
Very frequently

ANALYSIS
SUMMARY OF ANALYSIS
The analysis of the project:
• Most of the employees feel that their other social aspects remain
neglected due to workload, which is incompatible with organizational
role.

• Most of the employees feel that their roles are stagnant
• Some of the employees are not able to satisfy the conflicting demands of the
various peer level people.
• Most of the employees would like to take more responsibility than the present
• Most of the employees feel that their work interferes with the quality they want to
maintain in their job
• Most of the employees feel that there is not enough interaction between their role
and other roles because each one of them is working independently.
• Most of the employees wish to acquire more skills to handle the responsibilities of
their role
• Some of the employees feel that if they are given full freedom to define their role
they will do some things different from what they do now.
• Most of the employees feel that they should be provided with more financial
resources for the work assigned.
•

SUMMARY OF SUGGESTIONS
• When an individual occupies more than 1 role there are bound to be
conflicts between the different roles that he occupies. Such inter-role
conflicts are quite frequent in a modern society, where an individual is
increasingly occupying multiple roles in various organizations and
groups. So the organization should throw a light on their employees
social aspects. The organization should improve the facilities for
leisure and recreation; fact of people doing things for enjoyment,
when they are not working. The organization should arrange programs
for entertainment. Also a place for relaxation. Create a place for
indoor games like carom, table tennis etc
• As the individual grows older, he also grows in the role that he
occupies in an organization of the individual that the role changes, and
with this change in role, the need for taking up a new role becomes
crucial. In order to be promoted the nit managers have to reach certain
targets set to them. Reaching these targets sometimes becomes very
difficult. This is bound to produce stress. Thus the organization should
have a systematic strategy of manpower development.
• When there are conflicting expectations or demands by different role
senders, the role occupant may experience this stress. But most of the
employees are able to satisfy the demands of the various peer level
people.

But some employees are not able to satisfy the expectations from the
boss, subordinates, peers or clients. The organization should provide
the employees with full information about the products so that they
are able to satisfy the peers or clients.
• A role occupant may feel that the functions, which he would like to
perform, are being performed by some other role. The stress felt may
be called role erosion. Some important role expectations of the
employee are shared by other roles within the role set. So the
organization should give a chance to employees who are willing to
take more responsibilities to enhance their performance. And thus
provide training, guidance and assistance to the employees
• When the role occupant feels that there are too many expectations
from the significant others in his role set, he experiences role
overload. Some employees feel that they cannot possibly finish the

work within the time limit. The employees should be given sufficient
time to complete the work since it is an insurance industry, getting
the policies is quite difficult
• When a role occupant feels that he is not prepared to undertake the
role effectively, he may experience this stress. Almost all the
employees wish to acquire more skills because the organization is
launching new products in the market for the clients and so the
employees should posses enough knowledge, skills, training about the
product because without enough preparation or orientation they are
likely to experience this type of stress
So the organization should prepare the employees for the assigned
new role.
• This stress arises out of the conflict between the self-concept and the
expectations from the role, as perceived by the role occupant. Such
conflicts are common, although they may not be so severe. Some
employees are willing to do things different from what they do now.
So the organization should support such employees so that they can
generate good business, which in turn will benefit the employees and
also the organization.
• Resource Inadequacy stress is experienced when the resources
required by the role occupant for performing the role effectively are

not available, such as information, people, materials, finance or other
facilities. The unit managers have to recruit 25 advisors to generate
business from them. For this purpose they have to go for fieldwork
and hunt for them. So in this process they have to spend the money in
looking out for the efficient people. So the company so provides
financial resources and transportation facilities to the employees. This
will reduce the stress of the employees and thus they will be able to
perform they role effectively with the availability of adequate
resources.

LIMITATIONS
LIMITATIONS OF THE STUDY
• Since private life insurance is the new theory in the Indian market, an in depth
study was not possible.
• Some of the Unit Managers were engaged in their work and were not able to give
their opinion about their working process.
• Time Constraint

CONCLUSION
CONCLUSION
To conclude, I would like to say that working with ICICI Prudential for 2 months
was a great experience. And I feel proud be an advisor of an esteemed company, as ICICI
Prudential is known for its leadership in the private life insurance sector.
The company should plan ahead and practice good time management. It should
also help the employees to develop a sound philosophy of life and maintain a positive
attitude.

Stress Management by organization should be designed to reduce the harmful effects of
stress in a way
• Help employees modify their perception and understanding of work stress
• Help employees cope more effectively with the consequences of stress.
• Help the employees to identify and then modify or eliminate work stressors

ANNEXURE
“A study on Stress Management at ICICI PRUDENTIAL”
The information given by you will be used only for the academic purpose, will be of
immense value and would assist me in this endeavor. Thus kindly co-operate
Name of employee :
Age :
Gender : Male Female
Marital Status : Married Unmarried
Occupation :
1.Do you have various other interests (social, religious), which remain neglected
because you do not get time to attend to these

Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
2. Do you feel stagnant in your role
Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
3. Are you able to satisfy the conflicting demands of the various peer level people
Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
4. Would you like to take more responsibility than at present
Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
5. The amount of work you have to do interferes with the quality you want to maintain
Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)

6. Is there not enough interaction between your role and other roles
Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
7. Do you wish to acquire more skills to handle the responsibilities of your role
Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
8. If you had full freedom to define your role you would be doing some things
different from what you do now
Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
9. Several aspects of your role are vague and unclear
Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
10. Do you wish to have more financial resources for the work assigned to you

Never
(0)
Occasionally
(1)
Sometimes
(2)
Frequently
(3)
Very Frequently
(4)
BIBLIOGRAPHY

1. Organizational behavior : John W. Newstrom
Keith Davis
2. Managing Human Resources : Wayne. F. Cascio
3. Making Organizational Roles Effective : Udai Pareek
4. Web-Site : iciciprulife.com , google.com
5. Journals : Company Journals & Magazine

What is Stress
Stress is the general term applied to the pressures people feel in life. The presence
of stress at work is almost inevitable in many jobs. However, individual differences
account for a wide range of reactions to stress, a task viewed as challenging by one
person may produce high levels of anxiety in another. When pressure begins to build up,
it can cause adverse strain on person’s emotions, thought processes, and physical
condition. When stress becomes excessive, employees develop various symptoms of
stress that can harm their job performance and health, and even threaten their ability to
cope with the environment. Stress also leads to physical disorders, because the internal
body system changes to try to cope with stress. It is important that stress, both on and off
the job, be kept at a level low enough for most people to tolerate without developing
either emotional or physical disorders.
Stress can be either temporary or long-term, either mild or severe. The effects on
an employee depend mostly on how long its causes continue, how powerful they are,
and how strong the employee’s recovery powers are. If stress is temporary and mild, most
people can handle it or at least recover from its effects rather quickly.
Stress is simply the body's non-specific response to any demand made on it.
Stress is not by definition synonymous with nervous tension or anxiety. Stress provides
the means to express talents and energies and pursue happiness; it can also cause
exhaustion and illness, either physical or psychological; heart attacks and accidents. The

important thing to remember about stress is that certain forms are normal and essential.
As the body responds to various forms of physical or psychological stress, certain
predictable changes occur. These include increased heart rate, blood pressure (systolic
and diastolic), and secretions of stimulatory hormones. These responses to stress will
occur whether the stress is positive or negative in nature. In lay terms, it is known as the
"fight or flight" mechanism. Continual exposure lowers the body's ability to cope with
additional forms of psychological or physiological stress. The results of continuing stress
may cause disruption in one or more of the following areas of health: physical, emotional,
spiritual and/or social.
Stress is a process that builds. It's more effective to intervene early in the process
rather than later. Try to become aware of the signs that suggest the process has begun
Stress is the way your body responds to the demands placed on it. Positive or "good"
stress can help you concentrate and focus. In some instances, it actually increases your
ability to survive. Your body's response to stress can be hormonal, such as an adrenaline
rush. It can also be a rise in blood pressure, blood sugar, or body temperature. These
physical reactions can often make you more alert; give you more acute eyesight or greater
strength. That's how your body gives you what you need to act. Ideally, your body
automatically relaxes after you have handled the situation. Your physical responses
normalize and you are able to return to a state of rest. This process allows you to gather
physical and emotional energy which helps you deal with changes and challenges in your
daily life.
Your physical reaction to stress is the same for positive and negative stress; the
difference is that with negative stress your body never returns to the "pre-stress" relaxed
state. You remain tense or anxious, which drains you of emotional and physical energy.
The common expression for stress is ‘tension’ One is said to be tense, when there is some
anxiety, some fear of whether the desirable things may happen, whether something may
go wrong, etc. It is a state of discomfort felt in the mind and experienced by the body.
When there is tension, the body may become weak.
In management literature, ‘Stress’ is defined as a response of the human body to a
felt need. When one is hungry and there is an urge to eat food, the body is in a state of
stress, which disappears when the need is fulfilled. This definition suggests that stress is a

desirable condition, making one move towards fulfillment of needs. This is partly true.
Stress occurs also when the need arises out of fear and the urge is to run and escape. This
may sometimes, be not possible. In that case, there is no movement, the need remains
unfulfilled and the stress condition does not disappear.
Stress is identified as of two kinds. One is called EuStress, which is the condition
in which there is drive and effort to fulfill the needs. Motivation is high. Achievement is
seen as possible. The situation is challenging. Stress disappears when the need is fulfilled
There is success. The other is DiStress, which is the condition when there is a sense of
helplessness in being able to achieve. The feeling is of frustration. There is no success.
May be, there is no attempt even, because success is seen as impossible. The stress
condition remains.
If one were to chart the level of stress and the level of effort put in to work, it
would be an inverted parabola. Eustress would be in the ascending left side of the
parabola. The challenge would be maximum at the hump. The latter half on the right side
represents Distress. The problems of stress are caused by Distress, not by Eustress.
Eustress is necessary for the person to be fully alert, for all his faculties to come
into play to face the situation. For example, a goalkeeper in football or hockey, will be
totally relaxed when the ball is at the other end of the ground, but becomes extremely
alert as the ball moved towards him. His body stiffens, the eyes begin to bulge, focussing
on the ball and the movement of the players, picking up the slightest of movements and
every nerve and muscle ready to respond to those movements. That is Eustress, without
which the goalkeeper cannot be at his best. So also, Eustress is experienced by the
batsman in cricket when the bowler is on the run, and by the tennis player when the ball
is about to be served at the other end.
Stress is a part of living. Too little stress and we become apathetic and ineffective.
Too much stress and we live with anxiety, fatigue, and over time, increase our risk for
accidental injury and serious illness. Maintaining an optimal level of stress is an ongoing
challenge of everyday life.
The stress response of the body is meant to protect and support us. To maintain
stability or homeostasis, the body is constantly adjusting to its surroundings. When a
physical or mental event threatens this equilibrium, we react to it. This process is often

referred to as the "fight or flight response." We prepare for physical action in order to
confront or flee a threat. Our ancestors responded to stressful ordeals in this fashion.
Millions of years later, when you face a situation that you perceive as challenging, your
body automatically goes into overdrive, engaging the stress response. Immediately, you
release the same hormones that enabled cave people to move and think faster, hit harder,
see better, hear more acutely, and jump higher than they could only seconds earlier. Like
theirs, your heartbeat speeds up; your blood pressure increases; your breathing quickens.
Most modern stresses, however, do not call for either fight or flight. Our experience of
stress is generally related to how we respond to an event, not to the event itself.

Stress has existed throughout the evolution. About 4 billion years ago, violent
collision of rock and ice along with dust and gas, led to the formation of a new planet.
The planet survive more than 100 million years of meltdown to give birth to microscopic
life . These first organisms endured the harshest of conditions—lack of oxygen, exposure
to sun's UV rays and other inhospitable elements, to hang on to their dear life. Roughly
300,000 years ago, the Neanderthals learnt to use fire in a controlled way, to survive the
Glacial Age. And around 30,000 years, Homo sapiens with their dominant gene
constitutions and better coping skills, won the game of survival. Each step of evolution a
test of survival, and survival, a matter of coping with the stress of changing conditions.
Millions of trials and errors in the life process have brought men to this stage.
Coping with events to survive has led men to invent extraordinary technologies,
beginning with a piece of sharpened stone.
From the viewpoint of microevolution, stress induction of transpositions is a
powerful factor, generating new genetic variations in populations under stressful
environmental conditions. Passing through a 'bottleneck', a population can rapidly and
significantly alters its population norm and become the founder of new, evolved forms.
Gene transposition through Transposable Elements (TE)—'jumping genes', is a
major source of genetic change, including the creation of novel genes, the alteration of
gene expression in development, and the genesis of major genomic rearrangements. In a
research on 'the significance of responses of the genome to challenges,' the Nobel Prize
winning scientist Barbara McClintock, characterized these genetic phenomena as
'genomic shock’. This occurs due to recombination events between TE insertions (high
and low insertion polymorphism) and host genome. But, as a rule TEs remain
immobilized until some stress factor (temperature, irradiation, DNA damage, the
introduction of foreign chromatin, viruses, etc.) activates their elements.
The moral remains that we can work a stress condition to our advantage or protect
ourselves from its untoward follow-throughs subject to how we handle a stress situation.
The choice is between becoming a slave to the stressful situations of life or using them to
our advantage
"Nothing gives one person so much advantage over another as to remain always

cool and unruffled under all circumstances”
In a challenging situation the brain prepares the body for defensive action—the fight or
flight response by releasing stress hormones, namely, cortisone and adrenaline. These hormones
raise the blood pressure and the body prepares to react to the situation. With a concrete defensive
action (fight response) the stress hormones in the blood get used up, entailing reduced stress
effects and symptoms of anxiety.
When we fail to counter a stress situation (flight response) the hormones and
chemicals remain unreleased in the blood stream for a long period of time. It results in
stress related physical symptoms such as tense muscles, unfocused anxiety, dizziness and
rapid heartbeats. We all encounter various stressors (causes of stress) in everyday life, which
can accumulate, if not released. Subsequently, it compels the mind and body to be in an almost
constant alarm-state in preparation to fight or flee. This state of accumulated stress can increase
the risk of both acute and chronic psychosomatic illnesses and weaken the immune system of the
human body.
Stress can cause headaches, irritable bowel syndrome, eating disorder, allergies,
insomnia, backaches, frequent cold and fatigue to diseases such as hypertension, asthma,
diabetes, heart ailments and even cancer. In fact, Sanjay Chugh, a leading Indian
psychologist, says that 70 per cent to 90 per cent of adults visit primary care physicians
for stress-related problems. Scary enough.
Just about everybody—men, women, children and even fetuses—suffer from stress.
Relationship demands, chronic health problems, pressure at workplaces, traffic snarls, meeting
deadlines, growing-up tensions or a sudden bearish trend in the bourse can trigger stress
conditions. People react to it in their own ways. In some people, stress-induced adverse feelings
and anxieties tend to persist and intensify. Learning to understand and manage stress can prevent
the counter effects of stress.
Methods of coping with stress are aplenty. The most significant or sensible way
out is a change in lifestyle. Relaxation techniques such as meditation, physical exercises,
listening to soothing music, deep breathing, various natural and alternative methods,
personal growth techniques, visualization and massage are some of the most effective of
the known non-invasive stress busters
The words 'positive' and 'stress' may not often go together. But, there are

innumerable instances of athletes rising to the challenge of stress and achieving the
unachievable, scientists stressing themselves out over a point to bring into light the most
unthinkable secrets of the phenomenal world, and likewise a painter, a composer or a
writer producing the best paintings, the most lilting of tunes or the most appealing piece
of writing by pushing themselves to the limit. Psychologists second the opinion that some
'stress' situations can actually boost our inner potential and can be creatively helpful.
Sudha Chandran, an Indian danseus, lost both of her legs in an accident. But, the physical
and social inadequacies gave her more impetus to carry on with her dance performances
with the help of prosthetic legs rather than deter her spirits.
Experts tell us that stress, in moderate doses, are necessary in our life. Stress
responses are one of our body's best defense systems against outer and inner dangers. In a
risky situation (in case of accidents or a sudden attack on life et al), body releases stress
hormones that instantly make us more alert and our senses become more focused. The
body is also prepared to act with increased strength and speed in a pressure situation. It is
supposed to keep us sharp and ready for action.
Research suggests that stress can actually increase our performance. Instead of
wilting under stress, one can use it as an impetus to achieve success. Stress can stimulate
one's faculties to delve deep into and discover one's true potential. Under stress the brain
is emotionally and biochemically stimulated to sharpen its performance
Stress is, perhaps, necessary to occasionally clear cobwebs from our thinking. If
approached positively, stress can help us evolve as a person by letting go of unwanted
thoughts and principle in our life. Very often, at various crossroads of life, stress may
remind you of the transitory nature of your experiences, and may prod you to look for the
true happiness of life.
Organizational and individual programs to help managers and employees cope up
with stress have become increasingly popular, as the toll taken by stress has become more
widely known. Methods are available to individuals and organizations for managing

stress and reducing its harmful effects. Stress management refers to any program that
reduces stress be helping people understand the stress response, recognize stressors, and
use coping techniques to minimize the negative impact of stress.
INDIVIDUAL METHODS
Stress management by individuals includes activities and behaviors designed to
eliminate or control the sources of stress and make the individual more resistant to or
better able to cope with stress. The first step in individual stress management involves
recognizing the stressors that are affecting the person’s life. Next, the individual needs to
decide what to do about them.
Practical suggestions for individual stress management include the following
• Plan ahead and practice good time management
• Get plenty of exercise
• Develop a sound philosophy of life and maintain a positive attitude
• Concentrate on balancing your work and personal life.
• Learn a relaxation technique.
ORGANIZATIONAL METHODS
Stress management by organizations is designed to reduce the harmful effects of
stress in three ways
• Identify and then modify or eliminate work stressors
• Help employees modify their perception and understanding of work stress
• Help employees cope more effectively with the consequences of stress.
APPROACHES TO STRESS MANAGEMENT
Both organization and individuals are highly concerned about stress and its
effects. In attempting to manage stress, they have three broad options

• Prevent or control it,
• Escape from it,
• Learn to adapt it.
Organizations can seek to improve managerial communication skills, empower
employees through participation, redesign jobs to be more fulfilling, or implement
organization development programs. These steps are aimed at reducing or eliminating
stressors for employees. Some employees can escape stress by requesting job transfers,
finding alternative employment, taking early retirement or acquiring assertiveness skills
allow them to confront the stressor.
Some people experience stress because they are detached from the world around
them, they lack warm interpersonal relationships. Individuals with a driving ambition and
a strong need for independence may fail to develop close attachments to friends and
colleagues. To achieve their success, they often sacrifice fulfillment to their social needs.
Their lack of social attachments may result in anger, anxiety, and loneliness- all
producing stress in their lives.
STRESS AND JOB PERFORMANCE
Stress can be either helpful or harmful to job performance, depending on its level.
When there is no stress, job challenges are absent and performance tends to be low. As
stress increases, performance tends to increase, because stress helps a person call up resources to meet
job requirements. Constructive stress is a healthy stimulus that encourages employees to respond to
challenges. Eventually, stress reaches a plateau that corresponds approximately with a person’s top day to
day performance capability. At this point additional stress tends to produce no more improvement.
Finally, if stress becomes too great, it turns into a destructive force. Performance
begins to decline at some point because excess stress interferes with performance. An
employee loses the ability to cope: she or he becomes unable to make decisions and
exhibits erratic behavior. If stress increases to a breaking point, performance becomes
zero: the employee has a breakdown, becomes too ill to work, is fired, quits, or refuses to
come to work to face the stress.
STRESS MANAGEMENT
Is the need of the hour. However hard we try to go beyond a stress situation, life
seems to find new ways of stressing us out and plaguing us with anxiety attacks.

Moreover, be it our anxiety, mind-body exhaustion or our erring attitudes, we tend to
overlook causes of stress and the conditions triggered by those. In such unsettling
moments we often forget that stressors, if not escapable, are fairly manageable and
treatable.
Stress, either quick or constant, can induce risky body-mind disorders. Immediate
disorders such as dizzy spells, anxiety attacks, tension, sleeplessness, nervousness and
muscle cramps can all result in chronic health problems. They may also affect our
immune, cardiovascular and nervous systems and lead individuals to habitual addictions,
which are inter-linked with stress.
Like "stress reactions", "relaxation responses" and stress management techniques
are some of the body's important built-in response systems. As a relaxation response the
body tries to get back balance in its homeostasis. Some hormones released during the
'fight or flight' situation prompt the body to replace the lost carbohydrates and fats, and
restore the energy level. The knotted nerves, tightened muscles and an exhausted mind
crave for looseners. Unfortunately, today, we don't get relaxing and soothing situations
without asking. To be relaxed we have to strive to create such situations
Stress is physical
When the goalkeeper or the batsman or the tennis player experiences Eustress,
there are changes in the physical system. The muscles become tense. The eyes become
sharper. When one is under severe distress, as in the case of Arjuna in Kurukshetra, the
person sweats, the body becomes weak and loses strength.
Study of stress shows that the response is the same whether it is Eustress or
Distress, except that the degree varies. The response is called the Fight or Flight
response. When one senses danger, one is tempted to either stand and fight to ward off
the danger or run away – Flight. The body conditions itself for either event,
automatically, causing changes in the normal secretions of hormones and other
chemicals, withdrawing from activities that are less important and diverting to activities
that should have higher priority in that situation.. Food is less important. The muscles
need more energy and therefore the blood carries substances to the muscles, diverting
them from the stomach. More oxygen than normal is required. Therefore, the breathing

becomes faster, the heart-beat rate increases, the blood vessels dilate to carry more
oxygen. The liver releases more stored energy. The eyes and ears become more acutely
sensitive to the sensations from outside.
The body is programmed to reverse these changes, and revert to normal, when the
threat disappears. If however, one remains in a continuous state of stress, without
becoming normal, the changed conditions tend to remain permanent, like a rubber band
loses its elasticity when held extended for a long time. These abnormal conditions
manifest as diseases and one suffers from high blood pressure, cardiac disorders, peptic
ulcers, insomnia, constipation, fatigue, colitis, kidney problems, etc. Behaviourally, they
lead to absenteeism, alcoholism, use of drugs, marital disharmony and so on, which are
both organisationally and socially, undesirable
Stress is psychological
Stress is experienced when one perceives a threat and the fight or flight response
is called for. This perception is an interpretation that one makes within oneself, of the
external factors. When one sees a dog on the street baring its teeth, one may either get
frightened or remain calm. Both fright and calmness are psychological reactions. The
choice is one’s own and is not dictated by the dog. This choice is made, largely
unconsciously, on the basis of one’s beliefs about dogs in general, what one has heard
about rabies being caused by dog bites, what one sees about the characteristics of the dog
in question at that time, one’s predilections towards animals, and so on.
When one becomes anxious in a situation, the situation does not create any
anxiety. What one thinks about the situation creates the anxiety. If one is confident of
tackling the situation, there is no anxiety. Therefore, the level of stress is caused by one’s
own perception of one’s capability to cope with the situation. Thus, stress is a
psychological response, depending upon one’s level of fear, confidence, anxiety, anger,
hurt, etc. The physical response is an automatic sequel to one’s psychological condition.
The physical changes depend on the extent of fear or confidence etc. Therefore, the
management of stress essentially is in the control one has on one’s emotions.
Stressors
Stress is not caused by any external factor. It is created by oneself, by the way one
thinks about the external factors. Yet there are situations, in which most people tend to

get stressed. These are called stressors. In personal life, death of a close relative is a
stressor. An important test in life, like a final examination; a transfer of residence;
separation due to marriage, divorce or change of job; difficult financial demands; serious
illness; likelihood of unpleasant secrets becoming revealed; are common stressors.
Having to welcome and entertain important visitors or having to deliver a speech for the
first time, also cause considerable stress. At work, the following may be stressors.,
• Needs not met. These could be needs for power, for fulfillment, for use of
knowledge
• Not being included by others as part of a group you want to belong to
• Not being recognized or valued for one’s competence
• Feeling that one is not adequate for the task, particularly when compared to some
one else
• Being denied what is due (rewards, work)
• Monotony or boredom
• Not having enough freedom at work, being closely supervised
• Inequity in rewards, assignments
• Very little opportunity for growth
• Too much of work, overload
• Too little work, boredom
• Inadequate resources to do the assigned work, creating possibilities of failures
• Conflict in values at work, being required to do what one does not like to do
• Too many and conflicting demands at work from the role set
• Responsibilities not clear, ambiguity on what is expected
• Un understanding, unpredictable, temperamental boss
• New unfamiliar work
• Being blamed
• On close analysis, it will be found that all of the above situations are, in some way
or other, causing perceptions of possible failure at work or non-recognition and
consequent loss of self-esteem.

It is important to recognize whether you are under stress or out of it. Many times,
even if we are under the influence of a stressful condition and our body reacts to it
internally as well as externally, we fail to realize that we are reacting under stress. This
also happens when the causes of stress are there long enough for us to get habituated to
them. The body constantly tries to tell us through symptoms such as rapid palpitation,
dizzy spells, tight muscles or various body aches that something is wrong. It is important
to remain attentive to such symptoms and to learn to cope with the situations.
We cope better with stressful situation, when we encounter them voluntarily. In
cases of a relocation, promotion or layoff, adventurous sports or having a baby, we tend
to respond positively under stress. But, when we are compelled into such situations
against our will or knowledge, more often than not, we wilt at the face of unknown and
imagined threats. For instance, stress may mount when one is coerced into undertaking
some work against one's will.
Levels of Stress: There are four basic levels of stress symptoms.
1. The first is the normal initial response and is characterized by increased heart beat
rates, increased blood pressure, dilation of pupils, sweat in palms and reduced
activity in the stomach.
2. At the second level, there is more irritability, stuttering and stammering, difficulty
in concentrating, restlessness, lack of appetite and tendency to increased smoking
or drinking for those so habituated.
3. At the third level, there would be more headaches, stomachaches, diarrhea,
sweating, insomnia, depression etc.
4. The fourth level would be characterized by ulcers, stroke, alcoholism, drug
addiction, psychosis etc.
CAUSES OF STRESS
An important first step in prevention is to examine the causes of stress. Conditions

that tend to cause stress are called stressors. Although even a single stress may cause
major stress, usually stressors combine to pressure an employee in a variety of ways until
stress develops. Almost any job condition can cause stress, depending on an employee’s
reaction to it. For example, one employee will accept a new work procedure and feel little
or no stress, while another experiences overwhelming pressure from the same task.
Part of the difference lies in each employee’s experiences, general outlooks, and
expectations, frequently cause stress for employees.
Work overload and time deadlines put employees under pressure can lead to
stress. Often these pressures arise from management, and a poor quality of management
can cause stress. Examples of stress producing factors related to management are an
autocratic supervisor, an insecure job climate, lack of control over one’s own job, and
inadequate authority to match one’s responsibilities. Many things can trigger the stress
reaction, including danger, threat, news, illness, as well as significant changes in one's
self-identification as a Type A or as a Type B personality
TYPICAL CAUSES OF STRESS ON THE JOB
• Work Overload
• Time pressures
• Poor quality of supervision
• Insecure job climate
• Lack of personal control
• Inadequate authority to match responsibilities
• Role conflict and ambiguity
• Differences between company and employee values
• Change of any type, especially when it is major or unusual
• Frustration
• Technology with training or support
Signs of Stress
Although perception is a part of stress, stress is real. There are more than a few
ways a person can react to stress. The reactions fall into three categories: thoughts,

feelings and behaviors. Stressful thoughts involve what’s going on in your head when
you are stressed out. Some of the thoughts a person might have include the following:
• Low self-esteem
• Fear of failure
• Inability to concentrate
• Embarrassing easily
• Worrying about the future
• Preoccupation with thoughts/tasks
• Forgetfulness
Emotional stress can cause a person to have feelings of anxiousness, fear, anger or even
the “blues.”
Stress sometimes brings out unwanted behaviors too. The following is a list of
stressful behaviors:
• Acting on a whim
• Being accident prone
• Crying for no apparent reason
• Grinding your teeth
• Laughing in a high pitch and nervous tone of voice
• Increasing smoking
• Increasing use of drugs and alcohol
• Stuttering and other speech difficulties
In addition to stressful feelings, behaviors and thoughts, physiology, which refers
to the way that the human body reacts chemically and physically to stress, can also cause
problems. Stress can manifest itself mentally and physically. Following are some of the
indicators of a stressed-out person:
• Perspiration /sweaty hand.
• Increased heart beat

• Trembling
• Dryness of throat and mouth
• Tiring easily
• Urinating frequently
• Sleeping problems
• Diarrhea / indigestion / vomiting
• Butterflies in stomach
• Headaches
• Premenstrual tension
• Pain in the neck and or lower back.
• Loss of appetite or overeating
• Susceptibility to illness
WHAT ARE THE SYMPTOMS OF STRESS?
Physical symptoms
Physical symptoms can be caused by other illnesses, so it is important to have a
medical doctor treat conditions such as ulcers, compressed disks, or other physical
disorders. Remember, however, that the body and mind are not separate entities. The
physical problems outlined below may result from or be exacerbated by stress:
• sleep disturbances
• back, shoulder or neck pain
• tension or migraine headaches
• irregular heartbeat, palpitations
• asthma or shortness of breath
• chest pain

Emotional symptoms
Like physical signs, emotional symptoms such as anxiety or depression can mask
conditions other than stress. It is important to find out whether they are stress-related or
not. In either case, the following emotional symptoms are uncomfortable and can affect
your performance at work or play, your physical health, or your relationships with others:
• nervousness, anxiety
• depression, moodiness
• “butterflies”
• irritability, frustration
• memory problems
• lack of concentration
Relational symptoms
The antisocial behavior displayed in stressful situations can cause the rapid
deterioration of relationships with family, friends, co-workers, or even strangers. A
person under stress may manifest signs such as:
• increased arguments
• isolation from social activities
• conflict with co-workers or employers
• frequent job changes
• road rage
• domestic or workplace violence
• overreactions

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