“THE FINANCIAL SERVICES ARE LIKE FERTILIZERS THAT HELPS THE PLANT OF

NATION TO GROW AS A HUGE TREE”

Marketing Study of

ICICI PRU LIFE INSURANCE

IN CAPITAL LOCAL AREA BANK

HoshiarpurSummer Training Report

Submitted in the partial fulfillment of the requirements

For the award of the

MASTER OF BUSINESS ADMINISTRATION

For the

Session 2007-2008

Supervised By: Submitted By :

Mr. MANOJ SODHI SURBHI CHAWLA

(BRANCH HEAD)

LOVELY INSTITUTE OF MANAGEMENT

Acknowledgement

The insurance is a very much important & become the one of the

necessity of life as each and everyone wants to secure his life’s risk

financially also. Every person wants to increase his returns. People in this

age needs facilities which has the attribute of master of every thing to

ensure present and future.

It is my proud privilege and pleasure to express deep sense of

gratitude to Mr. Pankaj Batolar , Mr. Rohit Bhatia and Ms. Vandana

for placing complete faith and confidence in my ability to carry out this

study and for providing me his inspiration, encouragement, help ,valuable

guidance, constructive criticism and constant interest. I would like to thank

Mr. Manoj Sodhi, Branch Head, who scheduled this training program. He

took personal interest inspire of his numerous commitment and busy

schedule to help me complete this project. My project would not have seen

the light of the day without his masterly guidance and overwhelming help.

SURBHI CHAWLA

CERTIFICATE OF COMPLETION

This is to certify that Ms Surbhi Chawla, a student of MBA, has

successfully completed his project titled “A marketing study

of icici pru life insurance” in The Capital Local Area

Bank, Hoshiarpur” under the guidance of Mr. Manoj Sodhi.

This project is in the partial fulfillment of his MBA curriculum (2007-

2008).

Mr.Manoj Sodhi

(Project Guide)

PREFACE

To survive in today’s competitive business environment, one has to

mould his personality accordingly. These types of projects help a lot in

improving one’s personality, developing intellectual state of mind and

increasing conceptual and analytical skills to lead in this business run.

Someone has rightly said that practical training is better than classroom

training. Research work in professional parlance is important, for it gives a

close view of real life issues. During practical training, a person encounters

the actual difficulties faced during work. For any student of professional

course who is striving to perform outstanding, it is of paramount importance

that apart from theoretical knowledge, he/she must be in possession of some

practical knowledge. a project report deals with providing an opportunity to

students to have some exposure in the real world.

Every business today faces cut-throat competition. I have chosen this

topic, as with the increasing scope and importance, private sector banking is

one of the most happening business in whole of the world today. Private

banking has been able to penetrate the market and capture an escalating

share of the total financial market. These banks are opened with the aim of

profit maximization through customer satisfaction.

My project deals with life insurance . It is a study conducted in a

Local Area Bank, which is a new concept in the banking sector. Exciting

opportunities and growth in this sector attracted me to gather more

information about the CAPITAL LOCAL AREA BANK, HOSHIARPUR,

which incidentally has been the most profitable branch in the group of the

Capital Local Area Bank kinfolk.

CONTENTS

PROFILE OF CAPITAL LOCAL AREA BANK

HISTORY AND TIE UP OF ICICI PRU

IRDA – ACT

HOW IT WORKS

IMPORTANT CLAUSE – NOMINATION

MY STUDY – MARKETING

CONCLUSION

SUGGESSION / WEAKNESSES

BIBLIOGRAPHY

ANEXTURES

Profile of The Capital Local Area Bank

Hoshiarpur Branch

Profile of the Capital Local Area Bank

The advent of new millennium will be remembered as historical year

in the banking industry as “ Local Area Banks “ came into existence to

characterize the regional economy. In August 1996 Reserve bank of India

announced the guidelines for entry of LOCAL AREA BANKS in the private

sector. With an aim to provide institutional mechanism for promoting savings

as well as to provide credit for viable economic activities in the local area,

Capital Local Area Bank Ltd. came into existence in the year 2000.It is a new

generation bank under the patronage of S.AMARJIT SINGH SAMARA , a

prominent citizen, leading business personality of the area. Mr. Samra has

been a former chairman of MARKFED. The bank has to operate in the

heartland of Doaba districts of JALANDHAR , HOSHIARPUR, and

KAPURTHALA in the state of Punjab. Capital Bank has the privilege of

being the first local area bank in north India. The Capital bank started its

operation on January 14 2000, on the historical day of Maghi, with the

opening of its first branch at Nakodar. The bank’s second branch became

operational at village Samrai, Distt. Jalandhar on February 12, 2000, which is

a rural branch. The third branch is situated at industrial town Phagwara, and

the fourth branch was made functional at Hoshiarpur in 2001. At present , the

bank is having 16 branches . Capital Bank entered into business to

revolutionize banking industry. The bank has the following branches which

have been working at the following places.

JALANDHAR

PHAGWARA

NAKODAR

HOSHIARPUR

SAMRAI

MAHILPUR

MEHATPUR

KAPURTHALA

MALSIAN

GORAYA

NURMAHAL

RURKEE

SHANKER

LOHIAN

BHOGPUR

BEGOWAL

The bank further plans to open its operational branches soon at the

following rural areas for optimally re-sourcing the available funds:-

MUKERIAN

SHAHKOT

From its date of commencement, capital bank has received tremendous

response. Progress of the bank speaks volumes of its response both in the

fields of deposits and advances from its valued customers. The bank has

shown tremendous performance across the board during the year ended,

March 31,2006 and March2007. For the year ended March 31,2007 the gross

income of the bank has increased from 1950.84 lacs to 3040.35 lacs, resulting

a growth of more than 200%.The bank posted an operating profit and net

profit after tax of Rs 4128.20 lacs and Rs 5875.90 lacs respectively. The bank

has earned interest of Rs 1692.61 lacs during the year as against Rs 1211.14

lacs for the year ended March 31,2005. the operating profits have increased

from 265.46 lacs to 413.25 lacs for year ended March31,2006. The bank has a

retail and diversified

loan portfolio, consisting of loans to agriculture sector, retail trade, small scale

industry, consumer, housing transport etc. This has given inherent strength to

the bank in its growth and profitability, and has helped the bank to maintain a

zero NPA level and profit from day one, To further strengthen capital base,

the bank has ploughed back more than 70 % of the profits in the capital . The

capital adequacy of bank is 25.20 % as on march 31,2005.

CAPITAL CONTRIBUTION

As laid down by the Reserve bank of India it is mandatory for Local

Area Banks to have an initial fully paid up Capital of Rs 60 million as per

the capital contribution Rs 50 million have been contributed by principal

promoters and the rest have been procured from personal resources of the

promoters on repayment terms

FEATURES OF CAPITAL LOCAL AREA BANK LTD.

Fully computerized branches with state of art technology

Centrally air conditioned with plush interiors.

Uninterrupted extended banking hours and Sunday open.

Mobile Banking

Highly motivate courteous staff

Competitive interest rate on advances.

Quick decision making strategies.

Locker operation seven days a week.

Rapidly growing net work in the region.

Higher rate of interest on saving and term deposit.

ACHIEVEMENTS

Profit from day one

Low cost of deposit

Wide base of more than 61000 satisfied customers

Retail and diversified loan portfolio

Retail deposits

Zero NPA

Contributing to the economic development of the area

World class banking brought to rural areas.

Brief Analysis Of Banking Data Of Few Banks In Hoshiarpur District Amt : In LacsSr no

Name of Bank

Total Deposits Total Advances Total Priority Sector Advances

Direct Agri. Advances

2005 2006 2005 2006 2005 2006 2005 2006

1 Capital Local Area Bank Limited

2258 2794 2201 2550 878 1174 458 566

2 CBOP 3152 6394 1540 1615 483 736 410 663

3 HDFC 2922 4593 1099 1174 - 608 - 275

4 ICICI 1002 2668 - 5052 - 2064 - 324

5 SBI 80604 87466 16048 21238 9738 13220 4571 5094

HISTORY AND TIE – UP WITH

ICICI PRU

ICICI is an Indian company and PRUDENTIAL is an England based

company.

PRUDENTIAL has 157 years experience and ICICI is working from

last 50 years in India.

In January 2000, when the IRDA act came in existence all the

insurance companies whether Private or Govt. companies came under

the Act.

With the passing of this act all the private companies enter in the

Indian Market because Indian market was vacant with insurance point

of view.

ICICI Group came in the market with the collaboration of

PRUDENTIAL LIFE INSURANCE COMPANY.

In Insurance sector ICICI- PRUDENTIAL is No. 1 market player in

India. But when the act was not present then only one company has

hold in the market i.e. LIC (Life Insurance Company). Then LIC

captured all the 100% Market.

In last 5 years , ICICI PRUDENTIAL has entered in the market and

the effect is that the share of the LIC has been reduced . It is from

100% to 74%.

ICICI PRUDENTIAL has very large group of employees. They are

running their business through Advisors, Corporate agents and D.M.

etc.

In year (2004-2005), ICICI PRUDENTIAL has collected 2400 Crores

premium in India.

The fund management of that premium amounted to 8800 Crores.

ICICI PRUDENTIAL have both plans i.e. ULIP market link and

endowment plans.

In insurance industry ICICI PRUDENTIAL is the first company who

launches the ULIP plans i.e. Unit Linked Insurance Product which is

totally linked with the Share Market or Debt Market or Call Money

Market etc.

But now a days the ICICI PRUDENTIAL has developed

their relations with the Banks also as the competition in the market got

fire. So in Sept. – 2004 , ICICI PRUDENTIAL shake hands with Capital

Local Area Bank Ltd. Which is also one from the No. 1 local Banks. This

collaboration is groomed in the presence of Mr. Sarbjit Singh Samra

(M.D.) and their C.S. (Mr. Dinesh Gupta and Mr. Gurpreet Chug). This

collaboration has to be done by the corporate agent named PIONEER

ASSURANCE PVT. LTD. This Corporate agency has adjoined both the

groups i.e. ICICI PRUDENTIAL and CAPITAL LOCAL AREA BANK

LTD. In last couple of quarters Capital Bank has Collected premium

from their customers amounted in crores.

IRDA – ACT

The object of this Act, is “ to provide for the establishment of an Authority

to protect the interests of holders of insurance policies, to regulate , promote

and ensure orderly growth of the insurance industry.” Under the Act , the

Insurance Regulatory and Development Authority has been established.

IRDA

(INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY ACT, 1999)

Under this act an authority called IRDA has been set up.

This is a corporate body established for the purpose and objects as per out in

the explanation to the title.

The authority replaces “controller” under insurance act 1938.

The first schedule amends insurance act 1938.

It states that if “Authority” is super ceded by central government, the

controller of insurance may be appointed till. Such time as Authority is

reconstituted.

SCOPE

To permit private companies to enter the insurance market ,

government has enacted insurance regulatory and development authority

Act, 1999.

The act was passed by the parliament in December 1999.

It received presidential approval in January 2000.

This act provides for the establishment of the authority.

a) To protect the interest of holders of insurance policies.

b) To regulate, promote and ensure orderly growth of insurance

industry for matters connected there with or incidental thereto.

This act also sought to amend the following acts:

A) The insurance Act, 1938.

B) The Life Insurance Corporation Act , 1956.

C) The General Insurance Business (Nationalization) Act 1972

(GIBNA’712).

This act applies to whole India including J& K State , which is effective

from 29th dec. 1999.

CONSTITUTION OF IRDA

The insurance regulatory and development authority consists of the

following members.

A. Chairperson

B. Not more than five whole – time members.

C. Not more than four part – time members to be appointed by

the central government.

Members should be the person of –

- Ability

- Standing

- Integrity

They should have experience in the fields of

1. Life Insurance

2. General Insurance

3. Actuarial Science

4. Finance

5. Economics

6. Law

7. Accountancy

8. Administration, or

9. Any other discipline , thought to be useful by the central

government.(Chairperson, Members, Officers and other

Employees of authority shall be public servants.)

DUTIES, POWERS AND FUNCTIONS OF THE

AUTHORITY

The powers and functions of the authority include

registration of insurer’s intermediaries and agents, regulation of the terms

and conditions of the contracts of insurance, promoting and regulating

professional organizations connected with the insurance and re-insurance

business, monitoring investment of funds and solvency margins 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 twenty-five members excluding ex-officio members, to represent

the interests of commerce, industry, transport, agriculture, consumer fore,

surveyors, agents, intermediaries, organizations engaged in safety and loss

prevention, research bodies and employees association in the insurance

sector. The insurance advisory committee is expected to advise the Authority

on matters relating to the making of the regulations.

The IRDA has , in exercise of its authority issued a

number of regulations, which have to be compiled with the insurers. Only

Indian insurance companies will be given registration to transact insurance

business. An Indian Insurance Company has been defined as a company

incorporated under the Companies’ Act 1956 and, in the paid up capital of

which , the holding of a foreign company , directly or through its

subsidiaries and nominees, does not exceed 26%. The paid up capital of

companies wanting to transact life or general insurance business will have to

be not less than Rs. 100 Crores and in the case of companies wanting to

transact reinsurance business the paid up capital will have to be not less than

Rs. 200 Crores. Every insurance company will have to maintain at all times,

assets which are not less than specified limits depending on the extent of the

liability under its business . It has also been notified that every insurance

company will have to appoint accuracy , to be approved by the IRDA . It

will be the duty of the actuary to ensure that

1. The assets are valued in the appropriate manner.

2. The liabilities are evaluated as required and

3. The prescribed margins for maintaining solvency are

complies with.

The IRDA has also issued regulation with

regard to advertisements. These regulations are applicable to all

advertisements, whether issued by the insurance company or an insurance

intermediary, including an agent. The definition of advertisement has been

made very wide so as to include almost any public communication,

recommending or soliciting a sale of an insurance policy. It is obligatory that

every advertisement should have full disclosures of the product mentioned

and of the advertiser, including license and registration numbers.

Advertisement to be issued by agents must be approved by the insurer in

writing , before issue.

HOW IT WORKS

An intelligent investor always seek a flexible investment plan

to invest your savings. At the same time , he wishes to protect his family

from unforeseen circumstances. For him , an ideal plan would be one that is

flexible enough to meet his investment and protection needs.

How The Policy Works?

1. You need to choose the premium amount , term and sum assured

for which you wish to take the policy.

2. After deducting premium allocation charges , the balance amount

is invested in the investment fund(s) of your choice.

3. You can opt for add-on riders available under the policy.

4. On survival, the maturity benefit is paid to the policy holder . In

the unfortunate event of death , the nominee receives the higher of

sum Assured or the fund value.

Benefit In Detail

Choice of Investment Funds

We offer you 4 investment funds. You have the option to choose how

you want your investment to grow , based on the objectives of each of the

funds. Given following are the investment objective and asset allocation of

each of the funds :

Fund Name & its

Objective

Asset

Allocation

Min. Max. Potential Risk-

Reward

Maxi miser: Long

Term Capital

Appreciation

Equity and

Equity related

securities

Debt ,Money

Market & Cash

75%

0%

100%

25%

High

Balancer: Balance of

growth and steady

returns

Equity and

Equity related

securities

Debt ,Money

Market & Cash

0%

60%

40%

100%

Moderate

Protector:

Accumulate steady

income at a lower

risk.

Debt

instruments,

Money Market

& Cash

100% 100% Low

Preserver: Protection

of capital through

very low risk

investments.

Investments up to

20% can be allocated

to this fund

Debt

instruments,

Cash & Money

Market

0%

50%

50%

100%

Capital

Preservation

* You can invest in any one or a combination of the above mentioned

funds.

Switching Option

Under this option you can switch your investment between the

funds at any time (provided the policy is in force), depending on your

financial priorities and investment objective . In any policy year , 4

switches can be done free of charge. The minimum switch amount is

Rs. 2,000.

Additional Allocation Of Units

There will be additional allocation of units every 4th Year,

starting from the end of the 4th Year at the rate of 4% of annual premium

into your investment fund. Additional allocation of units will be made

only if the premiums have been paid regularly up to the date of

allocation.

Partial Withdrawal Benefit

Partial withdrawals will be allowed after completion of 3 policy

years and on payment of full 3 year’s premium. The minimum partial

withdrawal amount is Rs. 2000.

Morality Benefit

On maturity of this policy , you will be entitled to receive the

Fund Value at the time of Maturity . Alternatively, you can opt for the

settlement options available.

Settlement Option

On maturity of the policy , you can choose to take the fund

value as a structured benefit. With this facility , you can opt to get

payment on a yearly , half – yearly . quarterly or monthly (Through

ECS) basis, for a period of 1,2,3,4,or 5 years , post maturity (Settlement

period) . At any time during the settlement period , you have option to

withdraw the entire fund value. During the settlement period, the

investment risk in the investment portfolio is borne by the policy holder.

Death Benefit

In the unfortunate event of death during the term of the policy ,

the nominee shall receive the higher of Sum Assured (net of permissible

partial withdrawal) and the Fund Value.

Cover Continuance Option

This option ensures that your life insurance cover continues in

case you are unable to pay premiums , any time after payment of first

three year’s premium. All applicable charges will be automatically

deducted from the units available in your fund. You need to opt for cover

continuance , if you wish to avail of this benefit.

Additional Protection with Riders

You can further customize your policy by adding riders, to

enjoy additional protection as given below:

Riders Benefit

Accident &

Disability Benefit

Riders(ADBR)

In the event of death or disability due to an accident ,

the rider benefit amount would be paid accordingly.

Critical Illness

Benefit Rider(CIBR)

In the event of the Life Assured being diagnosed for any

of the specified critical illness, the rider benefit amount

would be paid.

Waiver of Premium

Rider (WOPR)

In the event of total and permanent disability due to an

accident , all further premiums till maturity would be

paid by the company.

Rider charges for opted riders will be recovered by cancellation

of units. For further details on the Rider benefit, exclusions and

conditions, please always got from the brochure.

CAN I SURRENDER MY POLICY

One of the main question which have utter importance that

whether one can surrender his policy or not. Because urgency can come at

any time in anyone’s life.

The answer to this question is yes, you can surrender your

policy. Surrender values are available to you after deducting surrender

charges and would depend on the number of completed policy years.

Following are the surrender values applicable after payment of full 3 year’s

premium.

No. of completed Years of the

policy

Surrender value as a % of the fund

value

3 Years 98%

4 Years 99%

5 Years and Above 100%

IMPORTANT CLAUSE

NOMINATION

HAVE YOU NOMITATED?

Nomination is a very important aspect of file insurance. To help

you understand the nomination process and it importance, we have devised a

guide that gives you a brief explanation of the process involved in

nomination.

Making a Nomination

The purpose of making nomination is to insure that your loved

ones are financially protected and have quick access of funds, should

something happen to you. Remember, if you don’t make a nomination in

your insurance policy , your insurance company is not a position to release

the policy money until your loved ones obtain a probate or later of

Administrator, which may take years !

Note: Nomination is required for the payment of death benefit only and not

living benefit.

How does nomination work?

You can nominate a person of your choice at the time of applying

for the life insurance policy of even after you have taken the policy. A

nomination enables the nominee the policy moneys from the insurer, on

behalf of legal heir(s) of the deceased. However, it advisable that the

nominee is a family member as the nominee has no pass on the death benefit

to the legal heirs as per the nomination section of insurance act.

You can nominate more than one person . However, in the event of

life assured’s demise, should nominees should authorize one among

themselves to receive the policy moneys from the insurer.

How does one can make a nomination?

The process is simple :

1. Fill up the nomination from at any of our branches of download it

from our website www.Iciciprulife.com

2. Give complete details about the nominee (full name, address etc.)

and critical details to establish the identity of a minor nominee (if

any). This helps to avoid any confusion in case there is a claimant

with a similar name staking a claim.

3. Ensure that the nomination form is signed by the witness who is

18years of age or above, of sound mind , and who is not your

nominee.

4. Submit the form at the nearest icici prudential Lic Ltd. branch

How do I change the nomination ?

You can make changes to a nomination by writing to us . The latest

nomination will supersede all previous nominations. A nomination will also

be considered revoked upon the demise of all nominees (if there is than one

nominee), during the lifetime of the policyholder.

What happens if a nomination is made the policy is assigned?

The nomination in such a case is cancelled automatically and the assignee is

entitled to receive the death benefit.

What happens when there is no nomination?

Where no nomination has been made, ICICI prudential shall pay the policy

money to the applicant who produces the probate or letters of administration

or any other legal evidence of title. Under the circumstances, the person

receiving the policy money is only receiving it as an executor and must

distribute it in accordance to the probated will of the deceased, or if there is

no will, according to the applicable laws of distribution.

MY STUDY

As I have assigned the project of the marketing of the ICICI-PRU life

insurance in CAPTITAL BANK I have learnt very much important things,

which are much valuable for person who just have come in this wide field of

stiff competition.

Salesmanship is the art of selling; it is the art of convincing people that they

need the product or service that is being sold, and persuading them to

purchase the product or service. Salesmanship, therefore, involves people,

products or service, and the ability to bring them together.

A successful salesmanship depends upon two important factors

1. Knowledge of the goods or services to be sold.

2. Ability to create a need for the goods or services.

.

KNOWLEGDE

A thorough knowledge of insurance is a pre-requisite for

successful insurance selling. This knowledge would mainly relate to:

1. The risk covered and risks excluded under insurance policies;

2. The risk which could be covered on payment of additional premium;

3. The basis of settlement of losses;

4. The method of arriving at the sum insured;

5. The basis of fixing the premium; and

6. The benefits derived under various type of policies direct benefits

such as financial protection, and indirect benefits such as loss

prevention and loss reduction.

7. This knowledge can be acquired through constant study of policy

forms, proposal forms, sales literature, manuals etc., participation in

training programmer, discussions with colleagues, superior officers

and fellow salesman; and more importantly, form one’ s experience.

Knowledge tends to get out of date, particularly in insurance where

one observe that new development take place more frequently now

than in the past. Insurance are constantly introduction new types of

covers, widening exiting covers and improving their methods of

rating. It is , therefore, important for the salesman to update his

knowledge of insurance practices.

8. In addition to insurance knowledge, the salesman should also have at

an elementary level, some general knowledge having a bearing on

insurance protection. For example to sell fire insurance to a small-

scale industrialist, the salesman should have some basic knowledge of

the type of products manufactured, etc. for selling a marine insurance,

he should have some knowledge of shipping and commercial practice,

the methods of packing, etc. this kind of knowledge is usually

acquired through study and experience over a period of time.

ABILITY TO CREATE A NEED

Knowledge of insurance covers is not enough. It should be

supported by the ability to create a desire in the mind of the client to

purchase the insurance cover. This is the essence of selling. This happens

when the client. A part form some knowledge of psychology how people

thin, feel and act, it also requires the skill to identify the real needs of the

client and to offer the most suitable insurance scheme at a premium (cost)

which is within his paying capacity. This, in short, is the process of

salesmanship.

Unlike motorcars, refrigerators, etc., insurance is an intangible

thing which cannot be seen , felt, examined or admired . when insurance is

purchased, the benefit may be derived by him only at some future date. If he

does not suffer a loss at all, he would consider the payment of premium as a

dead loss. Convincing a person that he needs something which prima-facie,

seems to be a loss, needs much greater effort and skills than in the case of

tangible goods, where the benefits can be seen almost immediately.

SALES PERSONALITY

Insurance salesmanship is difficult and could be frustrating.

The resistance to the purchase could be much stronger than in other goods.

To succeed, the salesman should have the right personality.

Personality cannot be defined. It is much more than external

appearances like personal look , mode of dress. It is the sum total of

impressions created on other people through appearance, talk, attitudes,

verbal and non –verbal expressions, postures, response to situations, temper

etc. These qualities can be acquired and developed through training ,

constant practice and experience . Hence it is said that “ Salesman are not

born, they are made.”

Emotional vitality consists of healthy, positive attitude and

goodwill towards other people. A competent salesman believes that

insurance is good for his client and that it is his job to give the client that

benefit, although the client may not see it. He should also believe that if the

client is not convinced, it is because the agent has not been clear and

persuasive enough. Objections have to be treated as opportunities to

understand the mind of the client and therefore to explain in more effective

ways. It is not possible to sell to a person who does not talk at all in response

to the salesman. If this is understood the salesman should welcome a client

who says that he is not convinced and therefore does not want to buy. The

salesman’s skills are under test. Either he has not understood the client’s

position well enough or he has not explained well enough. Either way , he

has more work to do. He cannot give up.

A good working technique would involve the use of several

tools of the trade. A market data file could be built up from newspapers,

trade journals, etc., and from other sources, providing valuable information

about new industries coming into existence, and existing industries

diversifying or expanding . Similarly , details of co-operative

societies(housing ,consumer’s, wholesaler’s, etc), lists of professionals like

doctors etc., could be built from information available with the concerned

associations.

A client data sheet could be prepared for each client providing

for personal information or business data which is relevant to insurance

selling. For example in respect of an individual client , his name, address,

office and residential telephone, age, marital status, number of dependants,

monthly income, etc. would be recorded in the data sheet. In respect of a

small scale industrialist, in addition to address, etc. the data sheet would

include the types of goods manufactured, whether for export or internal sale,

the annual turnover, the number of employees, etc.

A kit consisting of proposal forms, claim forms, specimen policy

forms, leaflets, brochures, etc. is another tool of trade. A scrap book could

be built up consisting of newspaper cuttings of news items and photographs

of fires, accidents etc. and details of actual losses suffered by other

policyholders. The value of visual aids in selling has been amply

demonstrated.

No plan of action can be worked efficiently unless proper

records are kept. Records required to be maintained would be in respect of

list of prospects, business performance and expiry dates of insurance held by

existing policy holders as well as by prospective clients.

THR PROCESS OF SALESMANSHIP

The process of salesmanship falls into four well-defined phases :

A) Prospecting

B) Pre-approach or preparation for sales talk.

C) Sales interview.

D) Completion or close.

PROSPECTING

Prospecting may be defined as the art of finding out probable

buyers of insurance. Prospecting is the prime activity on which the entire

selling process depends. If a salesman calls on 20 prospects, at least 10 or 12

may grant him a chance to explain how insurance can help them and at least

4 or 5 may eventually buy insurance. Thus, it is seen that prospecting leads

to calls, calls to interviewers and interviews to sales. Prospects are the raw

material on which the production of a salesman depends; if there is no raw

material, there is no production.

Who is a prospect? He will be a person who has a need which

insurance can satisfy and who has the capacity to pay the premium . The first

task of the salesman is to build up a list of such prospects. There are several

methods, and the salesman can use one or more methods suitable to him.

There are:

a). REFERRED LEADS : A relative , a friend, a satisfied policy

holder or even a prospect who has not purchased insurance, may arrange

introduction to other persons in need of insurance.

b). CENTERS OF INFLUENCE : There are certain persons who

command respect and prestige in their own circle. Such persons are

secretaries of associations, branch managers of banks, doctors, lawyers, tax

consultants, etc. A continuous flow of prospects may be expected through

these ‘centers of influence.’

c). NESTS: A large business house, an industrialist estate, a wholesaler

market or similar groups from what is called a ‘nest’. If a salesman gains an

entry into these groups, he would have access to a large number of

prospects.

d). COLD CANVAS : This is called on a person whom the agent does

not know, and to whom he has no introduction. A salesman, who has built

up self – confidence over a period of several years of experience, uses this

method as routine. Even junior salesmen with sufficient self-confidence

have succeeded in this method.

e). POLICYHOLDERS: The existing policyholders themselves are

prospects for new and additional business.

The name of prospects should be recorded

systematically. The prospects may be classified into different categories

according to their insurance needs, e.g. householders, small businessmen,

exporters and importers, professional men, trading concerns, contractors,

transport companies, manufacturing concerns etc. This would enable the

salesman to adopt the appropriate sales strategy for each class of prospects.

PRE – APPROACH OR PREPARATION FOR SALES TALK

Having complied a list of prospects , the next step is to gather

as much information as possible about the prospect , his property and his

business , etc. This information will help in identifying the needs of the

client and the types of covers that he will need and ascertaining his socio-

economic background and premium paying capacity.

The information can be gathered from a variety of sources:

through mutual friends, policy holders, trade associations, the balance sheets

of firms, company’s etc. The information may be gathered from the prospect

himself through a fact-finding interview. In fact, this would place the

salesman in a favorable position. The client would consider that the

salesman is a professional one who believes in study before sales.

The information that has been secured will enable the salesman

to discover the needs of the client, which will in turn determine the type of

cover to be offered and the sales the appropriate for the prospect.

Pre – approach is defined as a complete rehearsal of a sale

without the physical presence of the prospect. This means preparation of a

sales talk . The sales talk would be very according to the type of prospect

and the type of his needs. For example , in selling personal accident

insurance, the sales talk suitable for a middle class householder would not be

suitable for a rich landlord. Similarly, in selling fire insurance , a small

shopkeeper would require a particular type of sales talk which will not be

suitable for an industrialist. Again a sales talk, which is suitable for a

personal accident plan, will not be effective for a sale of a fire policy.

Thus there cannot be a single standard sales talk. The salesman

should , therefore prepare in advance, basic sales talks for all the situations,

and use the right sales talk as occasion’s demand. This preparation would

also include ready answers to all the possible objections, which are likely to

be raised by the prospect. In short, pre-approach becomes a complete sales

interview without the physical presence of the prospect. A good pre-

approach gives the salesman necessary poise and confidence to call on the

prospect.

SALES INTERVIEW

The starting point of the sales interview is the preliminary

contract or approach. At this stage, the immediate job of the salesman is not

to sell insurance but to sell himself. The observations made earlier on the

sales personality are relevant in this respect.

A favorable impression will be created on the prospect if the

salesman observes certain basic rules. The salesman should fix the

appointment in advance, observe punctuality, present a neat and clean

appearance with a pleasing smile , and open the interview with greetings to

the prospect. The actual sales interview would begin thereafter : through

introduction and purpose of calling , he would make himself acceptable.

For reasons already mentioned, it is not possible to give

illustration of standard sales interview. However, certain basic rules for

conducting an effective interview are dealt with. To start with an interview,

it explain the basic function & benefit of insurance. Pointing out the

prospect’s insurance needs and outlining the cover available to protect those

needs should follow this . Briefly, the salesman should explain the risks

covered, the risks excluded the basic of settlement of losses, the claim

procedure, and the cost of the policy.

During this exercise, the prospect may be expected to ask

questions or raise objections. This is to welcomed because questions or

objections indicate the prospect’s interest in the insurance policy. They also

indicate his line of thinking which helps the salesman to adopt a suitable

approach to meet the objections.

Again there cannot be standard answers to objections. The type

of questions will indicate the nature of replies to be given. Some of the

objections are mere “put offs” or “excuses”. Other objections may indicate

that the prospect is ignorant to the benefits of the insurance system.

However, there may be real and genuine objections on two

grounds:

1. Absence of particular.

2. Absolute inability to pay.

If this is so, it would mean that prospecting and pre – approach

have been faulty and it would be wise to give up.

During the sales interview, the salesman will have to apply

motivation. Motivation means making an appeal to the prospect’s emotions

rather than his intellect. This can be done by several methods. For examples,

newspapers cutting of news and pictures of fires, accidents, etc. When

shown to the prospect, would move him to action . Real life situation stories

or losses suffered by other policyholders will make him emotionally ready to

buy insurance protection.

The conduct of the interview should follow certain other rules.

The salesman cannot afford to argue with the prospect. However foolish

may be the prospect’s objections, the salesman should not show any trace of

irritation and impatience. He should remember that “the customer is always

right.” The rule is to agree with the prospect, and then show politely how he

is wrong.

COMPLETION

The completion or closing of the sale will follow if the

prospecting, pre – approach and interview have been done properly. The

time to close is immediately after the prospect is satisfied that the insurance

cover is suitable and desirable. This is the most important stage in the

process of selling, when the prospect takes the decision. Too ling and too

much talk is to be avoided at this stage.

Once the prospect decides to buy, the next step is the

completion of the proposal form, if required and the collection of the

premium is known. In some cases, the premium will have to be collected

later, if quotation has to be given or confirmed by the insurers. In completion

of the forms, the prospect must be guided to follow the instructions of the

insurer.

The four stages of the process of salesmanship have been

explained. But in actual practice, it may not be possible to draw a definite

line between prospecting and pre-approach, or interview and close etc.

salesmanship is not a mechanical process. A salesman deals with people and

no two people are alike or react exactly in the same manner. Over a period

of time, the salesman will gain enough knowledge of human behavior to be

able to adopt and follow a process of salesmanship suitable to his personality

and method of working.

SURVEY

During my marketing study I have go through a little survey being guided by

Mr. Manoj Sodhi. This was just to make me aware about the market as

which sector is at priority i.e. who can be a good prospect. Mr. Pankaj

(Marketing Executive – ICICI PRU – LIFE INSURANCE, HOSHIARPUR)

has helped me in making a brief questionnaire containing just 7-8

questions(having great impact to know about the good prospect).

Questionnaire are attached as ANAXTURE – 1

The total people I have intervened 30 people. This contain 10

students, 10 service men, 10 business men. As the following diagram show:

Business Men 33%

Students 34%

Service Men 33%

The categories are taken equally to know that what type of people can

be good prospects. We have conducted very much interesting values. The

students are interested but they have not enough sources or means though

they have invested but only in saving accounts (having ATM CARDS) . But

the students have very many references that can be good prospects. They

have given the references of even NRI’s Families that we can say very much

good and useful and fruitful prospects for ICICI PRU life insurance –

investment plans.

Second category of the servicemen is also interesting to study . I

found that the serviceman having upto 5000/- is keen to invest, but the one

problem is that he can’t wait for a duration of five years as he is a normal

person who has no enough source of money for his day to day necessaries

and as the future is uncertain the necessaries and needs can come anytime

and at anywhere. But the serviceman having more than 5000/- is more keen

to invest and having fewer needs to get immediate liquidity. He has just

interested in how much he will get in the end. One more important clause I

have noticed is that as we go to higher income group they have shown

courage to invest for five years and they just want to know how much they

will get back with how much security.

The third businessmen are very much interested to know the steady

returns. They all need safety as more of them have very much bad

experience of the stock exchanges and share markets. Some business men

who have good experience of the stock exchanges and share markets and of

mutual funds hesitate to invest . But as they will come to know the steady

and sure returns and the past performance of the ICICI PRU-LIFE

INSURANCE , I was quite sure that they can be inspired and motivated to

invest.

CONCLUSION

As marketing looks very easy but in reality it is not so. It is a

very typical concept and very difficult one. By having this project here I

have come to know the practical problems that have taken place in real

marketing.

Fortunately, I got training under a very good personality Mr.

Pankaj and guided by the caliber of Mr. Manoj Sodhi (Branch Head). I

have learnt very much the way of talking with people because the people are

different in nature and have different behavior.

All this helped me very much in the field . I did marketing in

rural field. And I got good feedback and responses. I met with near about

10-12 people who has given me good feedback and helped me in giving me

more prospects. I have done a case of ICICI PRO-LIFE INSURANCE in

village Bham at the name of Mrs. Amarjeet Kaur amounted 60,000/- (in all

respects). Then further I have done two Fixed deposits amounted Rs.

50,000/- for 400 days and Rs. 20,000/- for 3 years. I have learnt very much

how to inspire a person.

In nutshell I can say that this training is very helpful to me to

grow as a professional. Because the persons who has given me training are

the professionals. Not only to me for every new comer this is a very much

valuable training.

SUGGESSION/

WEAKNESSES

WEAKNESSES

The main problem of Capital Bank is the delay in clearing of

outstation cheques. The customers have to wait for a long time in

order to get their outstation cheques enchased. It is so because of less

number of the branches of Capital Bank. Capital Bank has a tie up

with HDFC Bank for getting its outstation Cheques cleared. The

outstation cheques are firstly deposited in HDFC, and then HDFC gets

the payment from its outstation destination. After receiving payment

from HDFC, Capital Bank disburses the payment to the customer.

Some in this way the customers have to face problems in getting their

outstation cheques cleared.

Capital Bank also faces the problem on the part of its ATM facility

being provided by the customers. The software being used to operate

the ATM is older one. It remains out of order every now and then. The

customers have to fill the withdrawal slips for getting money.

sometimes the customers cannot even deposit their money through

ATM as other competitive banks are providing.

The Capital Bank has used very aggressive marketing strategies

during its initial days. But with the passage of time, marketing has

been more or less ignored. As such, more profitability, which can be

achieved, is being sidelined.

The Bank lacks a specific reception cum enquiry counter. Many

customers who are ignorant about the banking activities and

procedures, face problems in the timely execution of their tasks. Their

time is wasted and a bad image of the bank is projected.

ATM facility of the bank is not as per requirement.

The person has no choice to withdraw in 1st year.(ICICI – PRU)

The surrendered value can be availed only after 2nd year.

SUGGESTIONS

1. ATM’s of all the branches of the Capital Bank should be

interconnected. In this way, the customers can access their account

from any branch of the bank.

2. Capital Bank should lower down the rate of interest on housing

loans. At present the rate being charged by the bank is 12.5% per

annum, which is quit high as compared to the rates of other banks.

So it should lover down the rates, in order to attract more

customers.

3. Capital Bank should make account opening formalities lesser

complex. There should be no botheration to the customer by

various formalities performed fro opening the account.

4. The Branch Manager should arrange a customer meet every

fortnight, in order to listen to their complaints and suggestions of

the customers and try to remove them there and then this will

enhance the reputation of the bank.

5. There should be a complaint box in the bank trough, which the

customers can make their complaints regarding the services and

facilities being provided by the bank. This is helpful fro those who

cannot attend the customer meet.

6. Marketing is the backbone of any business in this competitive

market Capital Bank should make advertising more

comprehensive by using various types of media. It will help in

creating a good image of the bank in the minds of people.

7. Gifts to old customers will certainly motivate them to make more

deposits.

8. Capital Bank should also go for education loans, which will be a

boon for talented students.

9. Capital Bank should also introduce new policies like that of

Sweeping Accounts policy of HDFC Bank. This policy works in

dual ways. This enables the customers to earn high rate of interest

as n case of term deposits, and also to withdraw this money

whenever he needs, just like a savings account. The bank will pay

for the amount left with it.

10.The bank should provide full seven day working facilities

throughout the year.

11.The limits of withdrawal from the ATM should be more than Rs

10000 /- per day as is urgently felt by a large number of customers

12.There must be a reception cum enquiry counter at every branch

where a skilled person is deputed, who has thorough knowledge of

the Bank’s working.

13.Mobile phones should be banned in the premises of the bank as it

is important from the point of security of the bank

14.Since it is a local area bank, more stress should be given towards

customer care and satisfaction.

15.Last but not least, the Bank should make arrangements to offer

an opportunity to summer trainees for training and placements.

16.The surrendered value should start from the first year though some

charges can be deducted on account of this.

17.The ATM cards can be given to use their interest amount when

they need may be after one year or 2nd year & so on.

18.The pre – request to start ICICI-PRU is i.e. Rs. 20,000/- & the

person who has less than 20,000/- has no alternate or he has no

right to invest in ICICI – PRU LIFE INSURANCE Plan.

BIBLIOGRAPHY

Marketing of Life and General Insurance

- Oriental Insurance Booklet.

Banking & Foreign Trade

- Shashi Gupta

Secondary Data From The Bank Reports

- Capital Local Area Bank Reports, Hoshiarpur

- Quarterly & Yearly Banking Reports, H.O.-

Jalandhar.

Internet

- Lifeline@iciciprulife.com

- Google.com (Search Engine)

- Wikipedia.com

ANAXTURE

MARKETING SURVEY

1. NAME

ADDRESS-

2. OCCUPATION?- STUDENT- SERVICE MAN- BUSINESSMAN

3. INCOME AVERAGE (MONTHALY)- UPTO 6,000/-- 6,000/- – 10,000/-MORE THAN 10,000/-

4. ARE THEY MARRIED? - YES - NO

5. HOW MUCH MEMBERS IN FAMILY?- UPTO 4- MORE THAN 4

6. HAVE THEY INVESTED? IF YES - Mutual Funds Share Market Life Insurance Plans

7. ARE THEY SATISFIEDYES NO

8. REFERENCES IF ANY

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