Post on 13-Mar-2023
A SUMMER TRAINING REPORT
ON
MARKETING IN GENERALINSURANCE OF ICICI
LOMBARD
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OFBACHELOR OF BUSINESS ADMINISTRATION (BBA)
Under Supervision of: Submitted by:
Mr. Ankur Bhupender
Sales Manager Roll No.
HCL
SESSION 2008-2011
ACKNOWLEDGEMENT
I take this opportunity to thank all the people who helped
me with valuable inputs, guidance and suggestions during my
tenure of project, without which this report would not have
taken its final shape.
I thank Mr. Ankur, Manager of ICICI Lombard who spared his
valuable time and gave me opportunity to work and undertake
this project and guided me through out this project.
This acknowledgement would be incomplete without thanking
Mr. Sales Consultant & Mr. Rajesh Singh, Senior Sales
Executive, ICICI Pvt. Ltd. who helped me in all possible
manner at all possible time during the course of this
project and all the above I would like to give my heartiest
regards & my Institute faculty & my internal guide whose
timely guidance and support at crucial junctures made the
undertaking of this project an enriching learning
experience. I would also like to thank all the people who
participated in this project directly or indirectly. Last
but not least I would like to thank all my friends who have
been a great help in this project with their innovative
ideas and suggestions
CONTENTS
TOPIC PAGE NO.
1. COMPANY PROFILE
2. INTRODUCTION
3. OBJECTIVE OF THE STUDY
4. RESEARCH METHODOLOGY
5. ANALYSIS AND INTERPRETATION OF DATA
6. FINDINGS / CONCLUSIONS AND SUGGESTIONS
BIBLIOGRAPHY
EXECUTIVE SUMMARY
Insurance is one of the fastest growing industry. Insurance
is basically divided into two heads one is Life Insurance
and other is General Insurance. In the beginning there was
one insurer that was LIC, but after 2000 insurance industry
was open for the private players. As of now there are 12
private and 1 public insurance company that is LIC.
This Project is prepared with the aim that the person who
read this project will come to know about the different
strategies of ICICI Lombard which is # 1 Private insurance
company and also help the consumer to choose the right
policies for themselves.
The basic objective of the study is to get adequate
knowledge of regarding the entire process of recruitment and
buying behavior of customers who are dealing with private
concern like ICICI Lombard.
The conclusion drawn and recommendation are being presented
towards the end of project.
With excessive competition prevailing in the market, it
becomes important on the part of organization to keep itself
updated on the changing trends in the market regarding to
the need of people.
COMPANY’S PROFILE
India's second-largest bank with asset size of over Rs.
3,446.58 billion (US$ 79 billion) and
profit after tax of Rs.31.10 billion for the year ended
March 31, 2007
A network of over 950 branches and extension counters and
over 3,300 ATMs in India and presence in 17 countries.
Presence across all financial products
Only FI in India to pierce sovereign rating
Currently has subsidiaries in the United Kingdom, Russia
and Canada, branches in Singapore, Bahrain, Hong Kong,
Sri Lanka and Dubai International Finance Centre and
representative offices in the United States, United Arab
Emirates, China, South Africa and Bangladesh, Thailand,
Malaysia and Indonesia
Listed at the NYSE, around 72% of the company’s equity is
held by foreign investors
Technology-enabled products and processes
18
COMPETITIVE ANALYSIS OF THE PRODUCT
Features ICICI
Lombard
Psu-medi
Claim
Bajaj
Alliainz
Health
Guard
Cholaman
-
dalam
Floater cover
for family
X X
2 year assured
cover
X X X
Cashless
hospital-
ization
No claim cash-
back
X X X
Free hea- lth
chk up
X X X
19
SWOT ANALYSIS OF ICICI LOMBARD
ICICI Lombard is one of the most powerful, world class Life
Insurance Co., gaining appreciation for their strong work
ethics, excellent performance, professionalism and team work
which led them to progress in today’s challenging
environment . Though with its excellence performance and
every efforts has been made to present the most authentic
and truly representative finding, but some uncontrollable
factors do affect the performance and thus bring about some
deviation and hurdles in progress. So with its strengths and
good quality, the company is having some weaknesses, and
threats and opportunities its SWOT analysis is as below:
Strengths
1. ICICI Lombard is the largest private player in the
insurance industry in India Excellent services.
2. Customization of Product as per customer’s needs
3. Brand Image
4. Business Experience.
5. Strong financial Base.
6. Innovative products, Technology, Organization culture
and climate.
7. The company has a large network of branches, which is
helpful to customer for the payment.
20
Weakness
1. Target only higher income group whereas other companies
are trying to catch middle – lower level people.
2. Lot of competitors are in the market offer same product
by the title difference in the premium and offering.
3. Higher premium as compared to the other companies.
4. Clients face problems to get insured due to large
number of formalities.
Opportunities
Huge market is literally untapped. Out of 320 million
insurable markets only 20% of the population is insured. In
a conservative society of India where people are more
inclined towards risk free investment such as bank Fad’s and
saving rather than equity and high risk investments
insurance offers the best of both worlds – the security with
high returns. So there exist high potential for insurance
company like ICICI Lombard.
In the pension field where people want good life after their
retirement. Indian people are more emotional towards their
child that’s why children plans are selling like hot cakes.
Health insurance and pension schemes, an estimated market
potential of approximately $15 billion.
21
Threats
1. Week perception of private players in the minds of
Indian people due to frequent financial scams.
2. Large number of insurance players.
3. Existing wrong business practices of companies like LIC
first premium is paid by their agents where –as IRDA
suggests that even forms to be filled by the clients
themselves.
4. Entry of many other private companies with equally
strong experience and financial strength of foreign
partners making the competition difficult and
saturating the urban markets.
5. LIC has woken up from sleep and is following
competitive strategies. Its huge surplus in life fund
gives a capability to lodge price war.
6. Current government policies do not encourage gross
domestic saving. If the tax liability of the service
class rises, the customer will have little money to
invest.
7. For the insurance sector government set the authority
that is IRDA (insurance regulatory and development
authority) which is undertaken to track record of all
the companies and change rule day by day more rigid
which is very difficult for the companies.
22
1What is General Insurance?
Insurance other than ‘Life Insurance’ falls under thecategory of General Insurance. General Insurance comprisesof insurance of property against fire, burglary etc,personal insurance such as Accident and Health Insurance,and liability insurance which covers legal liabilities.There are also other covers such as Errors and Omissionsinsurance for professionals, credit insurance etc.
Non-life insurance companies have products that coverproperty against Fire and allied perils, flood storm andinundation, earthquake and so on. There are products thatcover property against burglary, theft etc. The non-lifecompanies also offer policies covering machinery againstbreakdown, there are policies that cover the hull of shipsand so on. A Marine Cargo policy covers goods in transitincluding by sea, air and road. Further, insurance of motorvehicles against damages and theft forms a major chunk ofnon-life insurance business.
In respect of insurance of property, it is important thatthe cover is taken for the actual value of the property toavoid being imposed a penalty should there be a claim. Wherea property is undervalued for the purposes of insurance, theinsured will have to bear a ratable proportion of the loss.For instance if the value of a property is Rs.100 and it isinsured for Rs.50/-, in the event of a loss to the extent of
say Rs.50/-, the maximum claim amount payable would beRs.25/- ( 50% of the loss being borne by the insured forunderinsuring the property by 50% ). This concept is quiteoften not understood by most insured.
Personal insurance covers include policies for Accident,Health etc. Products offering Personal Accident cover arebenefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either onreimbursement or cashless basis. The cashless service isoffered through Third Party Administrators who havearrangements with various service providers, i.e.,hospitals. The Third Party Administrators also provideservice for reimbursement claims. Sometimes the insurersthemselves process reimbursement claims.
Accident and health insurance policies are available forindividuals as well as groups. A group could be a group ofemployees of an organization or holders of credit cards ordeposit holders in a bank etc. Normally when a group iscovered, insurers offer group discounts.
2
Liability insurance covers such as Motor Third PartyLiability Insurance, Workmen’s Compensation Policy etc offercover against legal liabilities that may arise under therespective statutes— Motor Vehicles Act, The Workmen’sCompensation Act etc. Some of the covers such as theforegoing (Motor Third Party and Workmen’s Compensationpolicy ) are compulsory by statute. Liability Insurance notcompulsory by statute is also gaining popularity these days.
Many industries insure against Public liability. There areliability covers available for Products as well.
There are general insurance products that are in the natureof package policies offering a combination of the coversmentioned above. For instance, there are package policiesavailable for householders, shop keepers and also forprofessionals such as doctors, chartered accountants etc.Apart from offering standard covers, insurers also offercustomized or tailor-made ones.
Suitable general Insurance covers are necessary for everyfamily. It is important to protect one’s property, which onemight have acquired from one’s hard earned income. A loss ordamage to one’s property can leave one shattered. Lossescreated by catastrophes such as the tsunami, earthquakes,cyclones etc have left many homeless and penniless. Suchlosses can be devastating but insurance could help mitigatethem. Property can be covered, so also the people againstPersonal Accident. A Health Insurance policy can providefinancial relief to a person undergoing medical treatmentwhether due to a disease or an injury.
Industries also need to protect themselves by obtaininginsurance covers to protect their building, machinery,stocks etc. They need to cover their liabilities as well.Financiers insist on insurance. So, most industries orbusinesses that are financed by banks and other institutionsdo obtain covers. But are they obtaining the right covers?And are they insuring adequately are questions that need tobe given some thought. Also organizations or industries thatare self-financed should ensure that they are protected byinsurance.
Most general insurance covers are annual contracts. However,there are few products that are long-term.
It is important for proposes to read and understand theterms and conditions of a policy before they enter into an
insurance contract. The proposal form needs to be filled incompletely and correctly by a proposer to ensure that thecover is adequate and the right one.
3
We face a lot of risks in our daily lives. Some of theselead to financial losses. Insurance is a way of protectingagainst these financial losses. For a payment (premium), aninsurance company will take the responsibility ofcompensating your financial losses.
Anyone who owns an asset can buy insurance to protect itagainst losses due to fire or theft and so on. Each one ofus can insure our and our dependents’ health and well beingthrough hospitalization and personal accident policies. Tobuy a policy the person should be the one who will bearfinancial losses if they occur. This is called insurableinterest.
One of the main reasons one should insure is to protectone’s belongings and assets against financial loss. When onehas earned and accumulated property, protecting it isprudent. The law also requires us to be insured against someliabilities. That is, in case we should cause a loss toanother person, that person is entitled to compensation. Toensure that we can afford to pay that compensation, the lawrequires us to buy liability insurance so that theresponsibility of paying the compensation is transferred toan insurance company.
Insuring anything other than human life is called generalinsurance. Examples are insuring property like house andbelongings against fire and theft or vehicles againstaccidental damage or theft. Injury due to accident orhospitalization for illness and surgery can also be insured.Your liabilities to others arising out of the law can also
be insured and is compulsory in some cases like motor thirdparty insurance.
4 TYPES OF INSURANCE
Insurance may be classified as:
1. LIFE INSURANCE
2. NON-LIFE INSURANCE
LIFE INSURANCE:
Term life insurance provides coverage for a limited period
of time, the relevant term. After that period, the insured
can drop the policy or pay annually increasing premiums to
continue the coverage. If the insured dies during the term,
the death benefit will be paid to the beneficiary. Term
insurance is often the most inexpensive way to purchase a
substantial death benefit on a coverage amount per premium
dollar basis.
Term insurance functions in a manner similar to most other
types of insurance in that it satisfies claims against what
is insured if the premiums are up to date and the contract
has not expired, and does not expect a return of Premium
dollars if no claims are filed. As an example, auto
insurance will satisfy claims against the insured in the
event of an accident and a home owner policy will satisfy
claims against the home if it is damaged or destroyed by,
for example, an earthquake or fire. Whether or not these
events will occur is uncertain, and if the policy holder
discontinues coverage because he has sold the insured car or
home the insurance company will not refund the premium. This
is purely risk protection.
5
Life insurance or life assurance is a contract between the
policy owner and the insurer, where the insurer agrees to
pay a sum of money upon the occurrence of the policy owner's
death. In return, the policy owner (or policy payer) agrees
to pay a stipulated amount called a premium at regular
intervals.
NON-LIFE INSURANCE / GENERAL INSURANCE
Basically non-life or general insurance is all about making
things insured which are other than life.
All insurance excluding life insurance comes under general
insurance. General Insurance is, broadly, insurance, which
does not include any investment element, and covers risk of
other natural, individual, political and economic risks. The
general insurance products for individuals include health,
home, travel, student, motor, accident and other business
insurance.
Buying general insurance policies are a provision in case of
any uncertain loss that might come up during the normal
course of activities. Hence an insurance cover rids you of
the tension and the financial burden that you would suffer
in case of a calamity.
The non life insurance industry in India has grown above
80% within the last five years. With 81% contribution,
public sector companies accounted for almost the entire
market share. However, the private sector companies had to
content with a meager 19% of market share.
6
As per a recent market research report named, “Indian
Insurance Industry Forecast (2007-2009)” published by
RNCOS, “The present growth in the non life insurance sector
is anticipated to continue in the years to come. Growing at
the Compound Annual Growth Rate of 13%, the insurance
market in India shall touch the mark of $9 billion by
2009”.
“In spite of the entry of new companies and nationalized
banks in the insurance sector in India, the Public Sector
Life Insurance Corporation still holds a substantial share
of 72%”, as per experts at RNCOS.
PRINCIPLES OF GENERAL INSURANCE
Business, as indeed life in general, is subject to varioustypes of risk and uncertainty. It is difficult to know whenany loss by way of accident or death might befall a person.Insurance is means of providing against loss caused bynatural or man made factors. Insurance has cone to occupy animportant place in the smooth running of the business.
1. SECURITY: Insurance secures the insured person againstrisk of loss due to happening of an uncertain event.This means that a businessman can carry on hisoperations without worrying about a possible loss. Hecan even take calculated risk in running anddevelopment of his business.
2. DISTRIBUTION OF RISK: In case of loss to the insuredfrom any risk covered under the contract of insurance,he is paid by the insurer the amount of loss upto thesum assured but he himself bear the effect of such. Heonly distribute the loss suffered and insured personamong others who are exposed to similar risk and whohave insured against such risk. Thus, insurance is anattempt at pooling of risk under which a large numberof people contribute to a fund out of whichcompensation is paid to the persons suffering aparticular type of loss.
7
3. COMPETITIVENESS: A businessman who has insured againsta possible loss in business can be more confident inhandling its affairs. He knows that even if hiscompensate and save him from possible ruin. Thus, thebusinessman can afford to be bold and unconventional indecision to meet and beat competition.
4. SPECIALIZATION: Insurance enables the businessman togive undivided time
and attention to successful running of hisbusiness. If the risk of loss are duly
covered, there will be nothing to disturb thepeace of mind of the businessman in planning and accomplishing ambitious projects.The insurer, who is himself an expert in the business of risk bearing willalways be there to rescue the businessman from loss of any kind
5. OPTIMUM USE OF AVAILABLE CAPITAL: If a business isadequately
insured, there is no need to set apart capital foruse in case of a business loss. This is because in the event of loss, the business willreceive sufficient money from the insurer to cope with the loss of capital. In otherwords, entire capital at the disposal of the business can be utilize in itsoperations to earn higher profits.
6. PROMOTION OF FOREIGN TRADE: transport of goods from onecountry to
another is beset with various risks. Insuranceplays an important role in covering these risks to boost foreign trade.
7. LOAN FACILITY: Insurance companies offers loans againstthe security of
policies issued by them. Buying a house,construction of house etc. are the few Examples. Insurance companies also provideunderwriting facility in case of issue of shares, debentures etc.
8. SOCIAL WELFARE: Insurance is a small well-wearingeffort to promote social
good. It encourages people to provide for thefuture, such as old age, education and marriage of children.
8
9Research methodology is understood as a science of studying
how research is done scientifically. In various steps are
studied that are generally adopted by a researcher in
studying his research problems along with the logic behind.
Thus research methodology includes not only research methods
also consider the logic behind the methods we use in the
context of our research studies and explain why we are using
this particular method.
Scope of StudyThe scope of my study begins with the study of history of
ICICI Lombard and it further extends to various issues
related to marketing strategies of the company.
Time frameIn the whole process time taken was 2 months that is 26th
may 07- 26th july 07 .
OBJECTIVE
Projects are basically carried out to find out any
appropriate solution of any particular problem. It helps in
the proper grooming of our analytical skill. While dealing
with any project we can understand various aspect of any
case
The main objective behind the projects are such as:
1. To improve our analytical skill.
2. To make a comparative analysis of documentation
process.
10
3. To find out the area where ICICI Lombard can get
competitive age in their documentation
process.
4. To conduct a deep research for getting and
appropriate out comes.
5. To judge the satisfaction level of customers
DATA COLLECTION
Data has been collected both from primary as well as
secondary described below:
Primary Sources
The primary sources of data were interview conducted as part
of survey this data forms the backbone of the analysis of
the customer’s requirements. As I have collected all the
data mainly from customers and internet. Everybody had
different responses regarding the various policies of the
company. Few people were more interested in public sector
rather than private sector.
.
Secondary Sources
The secondary sources of data were the various websites and
insurance manuals.
Secondary data- Secondary data is already available and
published. It could be external and internal source of data.
Internal source- It is the one which originates from
specific field or area where research is carried out.
Example- public brochure, official reports etc.
External source- this originates outside the field of study
like books, periodicals, journals and internet etc.
11
LIMITATIONS
The main limitation of my project is as follows:-
Time Constraints
Behaviour of the people
Primary data collection
OJT work pressure
Time Constraints: - I have less time to work on project
because all the time I have to work on OJT to complete my
OJT targets.
Behave of the people: - People of Delhi are not so much co-
operative as I approached to the office of other Life
Insurance Companies they refused me to give information
about the project.
Primary data collection: - It’s a tough job to collect
primary data from market and we have to collect data from
the main source and it is not an easy task.
OJT work pressure: - I have to complete my OJT targets also
so I have to adjust my time according to OJT as well as for
Project work.
12
CHAPTER-3
INTRODUCTION OF ICICI LOMBARD
13
ICICI BANK
ICICI Bank means ICICI Bank Limited, a company incorporated
under the Companies Act, 1956 and having its registered
office at Landmark, Race Course Circle, Vadodara 390 007.
ICICI Bank is India's second-largest bank with total assets
of Rs. 3,446.58 billion (US$ 79 billion) at March 31, 2007
and profit after tax of Rs. 31.10 billion for fiscal 2007.
ICICI Bank is the most valuable bank in India in terms of
market capitalization and is ranked third amongst all the
companies listed on the Indian stock exchanges in terms of
free float market capitalization*. The Bank has a network of
about 950 branches and 3,300 ATMs in
India and presence in 17 countries. 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. The
Bank currently has subsidiaries in the United Kingdom,
Russia and Canada, branches in Singapore, Bahrain, Hong
Kong, Sri Lanka and Dubai International Finance Centre and
representative offices in the United States, United Arab
Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. Our UK subsidiary has established a
branch in Belgium.
ICICI Bank's equity shares are listed in India on Bombay
Stock Exchange and the National Stock Exchange of India
Limited and its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE).
14
ICICI Lombard
ICICI Lombard General Insurance Company Limited, a company
incorporated under the Companies Act, 1956 and licensed
under and in terms of the Insurance Act, 1938 and the
Insurance Regulatory and Development Authority Act, 1999 to
carry out the business of general insurance and having its
registered office at ICICI Bank
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128-bit encryption
in case of online data exchange
First company to provide digitally signed documents
through an online interface
Achieved financial breakeven in first full year of
operations
Achieved underwriting breakeven in second year of
operations
Awarded the NDTV Profit Business Leadership Awards 2007
in the General Insurance category on July 27, 2007
Adjudged as the most Customer Responsive Company in the
Insurance category at the Economic Times Avaya Global
Connect Customer Responsiveness Award 2006
Awarded the Best Housing Insurance in the Smart Living
Awards by 360 degrees, a Times of India Group subsidiary,
in Nov 2006.
15
Awarded the Gold Shield for "Excellence in Financial
Reporting" by the ICAI (Institute of Chartered
Accountants of India) for the year ended March 31, 2006
Among the top three General Insurance Companies to be
awarded the "General Insurance Company of the Year" at
the 10th Asia Insurance Industry Awards
Adjudged amongst the top three in the Insurance Website
of the Year category at the 9th Asia Insurance Industry
Awards function held in Singapore during Septembe2005.
16
HISTORY
ICICI Lombard General Insurance Company Limited is a 74:26
joint venture between ICICI Bank Limited and the Canada
based $ 26 billion Fairfax Financial Holdings Limited. ICICI
Bank is India's second largest bank, while Fairfax Financial
Holdings is a diversified financial corporate engaged in
general insurance, reinsurance, insurance claims management
and investment management.
Lombard Canada Ltd, a group company of Fairfax Financial
Holdings Limited, is one of Canada's oldest property and
casualty insurers. ICICI Lombard General Insurance Company
received regulatory approvals to commence general insurance
business in August 2001.
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.
17
Illnesses can weaken your financial stability. Adding
to the already existing emotional stress. In order to
reduce the risk of unexpected medical costs, ICICI
Lombard, known for their innovative insurance products
has thoughtfully structured a Health Product Suite. The
plans under the suite vary widely in terms of coverage,
costs and benefits. So that you are well prepared in
the face of any health crisis.
1.1 Critical Care
Lump-sum benefit on diagnosis of Critical Illness/Major
Medical Illnesses and Procedures, Personal Accident and
Permanent Total Disablement (PTD)
Critical Care Insurance
Critical Care protects you or your spouse against loss
of income on diagnosis of any of the 9 major medical
illnesses and procedures. The first of its kind, it
offers a lump sum benefit on diagnosis of Cancer,
Bypass Surgery, Heart Attack, Kidney Failure, Major
Organ Transplant, Stroke, Paralysis, Heart Valve
Replacement Surgery or Multiple Sclerosis. Critical
Care Insurance also provides cover against accidental
death and permanent total disablement (PTD).
1.1.1 Critical Illness Cover
The Critical Care Insurance shall cover, subsequent to
90 days from the policy start date, the following major
medical illnesses and procedures:
1. Cancer
2. Coronary Artery Bypass Graft Surgery
3. Myocardial Infarction (Heart Attack)
24
4. Kidney Failure (End Stage Renal Failure)
5. Major Organ Transplant
6. Stroke
7. Paralysis
8. Heart Valve Replacement Surgery
9. Multiple Scleros
PRICE CHART
Critical Care Sum Insured Table
Covers Sum Insured Options
Critical Illness/Major Medical
Illness Diagnosis
Rs. 6,00,000 or Rs.
12,00,000
Accidental Death
Permanent Total Disability
(PTD)
25
Critical Care Premium Table
Policy
Tenure/Age
Groups
(Years)
Sum Insured = Rs. 6 Lakh Sum Insured = Rs. 12
Lakh
3 Years
(Rs.)
5 Years
(Rs.)
3 Years
(Rs.)
5 Years
(Rs.)
20 – 25 5,800 9,700 11,600 19,400
26 – 30 6,600 11,280 13,200 22,600
31 – 35 8,300 14,000 16,600 28,000
36 – 40 10,300 18,400 20,600 36,800
41 – 45 20,500 38,200 41,000 76,440
(Inclusive of Service Tax @ 12.36% and Education Cess at
2%)
The premium depends on the applicant's age* and the policy
tenure opted for.
*Age is calculated as on the date the policy is issued (i.e.
age completed as on his last birthday)
26
1.2 Health Advantage Plus Insurance
A unique policy that covers hospitalization and
Outpatient Department Expenses (including Dental
treatment, cost of medicines and drugs) and enables
optimum tax savings of up to Rs. 5099 u/s 80D
The `Health Advantage Plus Health Insurance Policy’ is aunique health insurance policy that covers unexpectedmedical emergencies like hospitalization costs as well asOutpatient Treatment Expenses (OPD) in the form ofreimbursement of cost of medicines, drugs, ambulance chargesand dental expenses. You avail optimum tax-saving benefit,this policy enables you to save up to Rs. 5099* underSection 80 D of the Income Tax Act.
Moreover, the 45 year age limit for ‘no health check-up’ forpolicy issuance is now extended to 55 years of age.
This Plan is available for all ages between 5-65 years and senior citizens aged 66 and above (renewable up to 70 years).
Basic Hospitalization Cover
This covers inpatient hospitalization expenses up to sum insured of Rs. 2 or Rs. 3 Lakhs (depending on the plan chosen). You can avail the cashless claim facility in any ofthe 4000+ network hospitals across India.
Basic Hospitalization cover includes:
Medical expenses incurred as an inpatient during hospitalization for more than 24 hours, including room charges, doctor’s / surgeon’s fee, medicines, diagnostic tests, etc.
27
30 days prior to hospitalization
60 days post hospitalization
Pre-existing disease can be covered after the 2nd year
provided the policy is renewed with us for three
consecutive years.
Technologically advanced treatment that do not need 24-hour hospitalisation but are covered under this policy are:-
- Cataract- Lithotripsy (Kidney Stone Removal)
Tonsillectomy
- Eye Surgery
- Dialysis
- Dilatation & Curettage
- Chemotherapy
- Radiotherapy
- Coronary Angiography’s
- Cardiac Catheterization
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1.3 Family Floater Plan
A single policy that secures the hospitalization
expenses of your entire
family.
For the first time in India, one single policy takes
care of the hospitalization expenses of your entire
family. Family Floater Health Plan takes care of all
the medical expenses during sudden illness, surgeries
and accidents
Policy Coverage
The policy covers medical expenses:
Incurred as an inpatient during hospitalisation for more
than 24 hours, including room charges, doctor/ surgeon's
fee, medicines, etc.
30 days prior to hospitalisation.
60 days post hospitalisation.
Day Care expenses incurred on advanced technological
surgeries and procedures like Dialysis, Radiotherapy, and
Chemotherapy, requiring less than 24 hours of
hospitalisation.
Pre-existing disease can be covered after the 4th year
provided the policy is renewed with us for four
consecutive years.
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FAMILY FLOATER HEALTH INSURANCE POLICY PREMIUM TABLE
Premium for 1 Year plans in Rupees
Plan
Detail
s
Plan A
Individual
Plan B
2 Adults
Plan C
2 Adults &
1 Kids
Plan D
2 Adults &
2 Kids
Plan E
1 Adult
& 1 Kid
Plan F
1 Adult
& 2 Kids
Age of
senior
most
family
member
1
Lac
2
Lac
3
Lac
2
Lac
3
Lac
2
Lac
3
Lac
2
Lac3Lac
2
Lac
3
Lac
2
Lac
3
Lac
5 - 18
yrs.
1,79
0
1,9
90
2,29
0- - - - - - - - - -
19 -
35
yrs.
2,49
0
2,6
90
3,10
0
4,03
5
4,65
0
5,22
9
6,02
4
6,42
3
7,39
8
3,53
3
4,0
69
4,40
6
5,0
73
36 -
45
yrs.
3,12
0
3,3
70
3,74
4
5,05
5
5,61
6
6,24
9
6,99
0
7,44
3
8,36
4
4,09
4
4,6
00
4,91
6
5,5
56
46 -
55
yrs.
5,70
0
6,0
00
6,66
7
9,60
0
10,6
67
10,7
94
12,0
41
11,9
88
13,4
15
6,59
3
7,3
78
7,18
8
8,0
82
56 -
60
yrs.
8,16
7
11,7
60
13,0
67
12,9
54
14,4
41
14,1
48
15,8
15
7,78
2
8,6
98
8,26
8
9,2
82
30
FAMILY FLOATER HEALTH INSURANCE POLICY PREMIUM TABLE
Premium for 2 Year plans in Rupees
Plan
Detail
s
Plan G
Individual
Plan H
2 Adults
Plan I
2 Adults &
1 Kids
Plan J
2 Adults &
2 Kids
Plan K
1 Adult & 1
Kid
Plan L
1 Adult & 2
Kids
Age of
senior
most
family
1 Lac 2 Lac 3 Lac 2 Lac 3 Lac 2 Lac 3 Lac 2 Lac 3Lac 2 Lac 3 Lac 2 Lac 3 Lac
member
5 - 18
yrs.3,222 3,582 4,122 - - - - - - - - - -
19 -
35
yrs.
4,482 4,842 5,580 7,263 8,370 9,41210,84
3
11,56
1
13,31
66,359 7,324 7,930 9,131
36 -
45
yrs.
5,616 6,066 6,739 9,09910,10
9
11,24
8
12,58
2
13,39
7
15,05
57,369 8,280 8,848
10,00
1
46 -
55
yrs.
10,83
0
11,40
0
12,66
7
18,24
0
20,26
8
20,50
9
22,87
8
22,77
7
25,48
9
12,52
7
14,01
9
13,65
7
15,35
5
56 -
60
yrs.
16,33
4
23,52
0
26,13
4
25,90
8
28,88
2
28,29
6
31,63
0
15,56
3
17,39
7
16,53
6
18,56
3
31
1.4 Personal Accident Insurance
A Policy that covers personal accident, permanent total
disablement (PTD) and loss due to terrorism.
ICICI Lombard Personal Accident Insurance policy covers
you against Accidental Death, Permanent Total
Disablement (PTD) and Permanent Partial Disablement
(PPD). As a special offer, we now bring 3 new Personal
Accident flexible plan options (Accidental Death &
Permanent Total Disablement cover only) with a sum
insured of Rs. 3, 5 and Rs. 10 Lakh.
Personal Accident Comprehensive Plan:
Amount of Cover Rs. 2,000,000
This is a comprehensive Personal Accident Plan
that shall cover the insured
for:
Death of the Insured person
Permanent Total Disablement (PTD)
Permanent Partial Disablement (PPD)
Carriage of Dead Body
32
PRICE CHART
Accidental Death & Permanent Total Disablement Cover
Capital Sum Insured (Rs.)
Policy Period 3,00,000 5,00,000 10,00,000
3 years Premium
(Rs.)
1125 1875 3750
4 years Premium
(Rs.)
1500 2500 5000
5 years Premium
(Rs.)
1875 3125 6250
33
2. MOTOR INSURANCE
MOTOR INSURANCE IS OF 3 TYPES:
2.1 Car Insurance
A comprehensive policy that not only covers you against
third party but also against accidents, damage, injury
and much more.
ICICI Lombard brings to you a comprehensive Package
Policy for your four-
wheelers, which covers Third Party Liability (TPL)
for bodily injury and/or
death, Personal Accident cover for owner-driver and
loss or damage to
the vehicle insured (Own Damage or OD).
-
Policy Coverage
Our Motor insurance Policy is governed by the Indian Motor
Tariff. It covers you for:
Loss or damage to your vehicle: The policy covers you
against any loss or damage caused to the vehicle or its
accessories due to the following natural and man made
calamities.
Natural Calamities – Fire, explosion, self-ignition or
lightning, earthquake, flood, typhoon, hurricane, storm,
tempest, inundation, cyclone, hailstorm, frost,
landslide,rockslide.
Man made Calamities – Burglary, theft, riot, strike,
malicious act, accident by external means, terrorist
activity, any damage in transit by road, rail, inland
waterway, lift, elevator or air.
The rates of the vehicle and its parts are subject to
depreciation as per the schedule provided by the Indian
Motor Tariff.
34
Personal accident cover: The motor insurance provides
compulsory personal accident cover for individual owners
of the vehicle while driving. You can also opt for a
personal accident cover for passengers.
Third party legal liability: This protects you against
legal liability arising due to accidental damages.
- Any permanent injury/ death of a person
- Any damage caused to the property.
2.2 Two Wheeler Insurance
A composite policy that protects you
against unfortunate accidents, third party liability,
injuries and damages.
Two- wheeler riding calls for a constant alertness from
theft and accidents. Two-wheeler policy guarantees
safety for your vehicle and yourself, thereby making
your ride stress- free.
Policy Coverage
Two-wheeler insurance policy is governed by the Indian
Motor Tariff. It covers you for:
Loss or damage to your vehicle: The policy covers
you against any loss or
damage caused to the vehicle or its accessories
due to the following natural
and man made calamities.
35
Natural Calamities – Fire, explosion, self-
ignition or lightning,
earthquake, flood, typhoon, hurricane, storm,
tempest, inundation, cyclone,
hailstorm,frost,landslide,rockslide.
Man made Calamities – Burglary, theft, riot,
strike, malicious act, accident
by external means, terrorist activity, any
damage in transit by road, rail,
inland waterway, lift, elevator or air. The
rates of the vehicle and its parts
are subject to depreciation as per the schedule
provided by the Indian
Motor Tariff.
Personal accident cover: The motor insurance
provides compulsory
personal accident cover for individual owners of
the vehicle while driving.
You can also opt for a personal accident cover
for passengers.
Third party legal liability: This protects you
against legal liability arising
due to accidental damages
- Any permanent injury/ death of a person
- Any damage caused to the property
Sum Insured
The vehicles are insured at a fixed value called the
Insured’s Declared Value (IDV). IDV is calculated on
the basis of the manufacturer’s listed selling price of
the vehicle (plus the listed price of any accessories)
after deducting the depreciation for every year as per
the schedule provided by the Indian Motor Tariff. If
the price of any electrical and / or electronic item
installed in the vehicle is not included in the
manufacturer’s listed selling price, then the actual
value (after depreciation) of this item can be added to
the sum insured over and above the IDV.
36
2.3 Commercial Vehicle Insurance
ICICI Lombard brings you Commercial Vehicle Insurance
offering the most crucial cover of Third Party Liability
(TPL). A specialised cover for Goods-carrying Vehicles –
be it Public or Private Carriers. You can now rest
assured that your vehicle is covered and your business
stays protected against liability due to accidental
death or injury to third parties or passenger(s).
Policy Coverage
ICICI Lombard Commercial Vehicle insurance offers Third
Party only cover for Goods-carrying Commercial vehicles.
This cover is applicable to Public and Private Carriers
including Motorized Three Wheelers and Motorized Pedal
Cycles.
Our Commercial Vehicle insurance Policy is governed by
the Indian Motor Tariff. It defines Goods-carrying
Commercial Vehicle as:
Public Carriers (other than three wheelers)
Private Carriers (other than three wheelers)
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles. (Public Carriers)
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles. (Private Carriers)
It covers you for:
a) Personal Injury
b) Property damage.
37
3. TRAVEL INSURANCE
3.1 Individual Overseas Plan
All overseas travel policies charge premium on a slab
basis. Which means if you are on a 16 day trip, you end
up paying for 21 days, as the slab is 14 to 21 days.
But with us you ‘pay per day’
Overseas Travel Insurance Policy Features
Eligibility: Insurance policy available for all ages
between 1 – 70 years and senior citizens between 71 to 85
years
Policy Duration: Cover trips from as short as 7 days to
180 days. Can be extended online
Policy Maximum: The Plans offer various coverage options
(US $ 50,000 to US $ 250,000)
Premium: Premium is payable on a pay per day basis and
not slab rates, pay at 0% EMI on ICICI Bank Credit Cards
Pre-existing diseases: Pre-existing ailments and
maternity are excluded except in case of life-threatening
situations i.e. until the insured's heath is stable
A (Excellent) Rating: ICICI Lombard has received an A
(Excellent) rating from General Insurance Company of
India and iAAA rating from ICRA signifying highest claims
paying ability
Deductible/Policy Excess: There is a Deductible/Policy
Excess of US $ 100. This implies for any claim the first
$100 are to be borne by the insured.
38
Additional Coverage: Coverage’s include Dental Treatment,
Medical Evacuation, Repatriation, Baggage Loss/Delay,
Trip Cancellation and Interruption, etc.
Insurance Direct: Buy insurance online or Dial-A-Policy
at 1800 222 555 to buy your policy over the phone
Claim: In order to make a claim, please contact our TPA
(Third Party Administrator) SOS International, which has
tie-ups with network hospitals worldwide
3.2 Student Medical Insurance
A comprehensive cover, which insures you against
unfortunate incidents or unexpected expenses abroad and
provides timely assistance and support when you need it
the most.
COMPARE PLANS (Click on Plan names to know more)
Coverageamount
GoldPlan
BronzePlan
Plus Plan
1)
MedicalExpenses*(includesMedical evacuationcost)
US$50,000to US $500,000
-
The Plus Planis an add - onplan that canbe bought inaddition to theGold or theSilver plan.
2) Dental Treatment* US$ 250 -
3)Checked Baggageloss
US$1,000
4) Personal Liability US$100,000
5) Bail Bond US$5,000
6) Study Interruption US$7,500
7) Sponsor Protection US$10,000
8)2Way CompassionateVisit
US$7,500
9) Passport Loss** US$ 200
10) Personal Accident US$25,000
US$10,000
39
11)Repatriation ofremains
Up toMedical SumInsured
-
Scenario 1 : Premium for20 year studenttraveling to US / Canadauniversity for one year.
InsuredforUS$100,000
43Rs.15,966
-Gold Plus PlanRs. 19, 767
Scenario 2 : Premium for20 year studenttraveling to UK /European / Australianuniversity for one year
InsuredforUS$100,000
Rs.8,931
Rs.7,630
Gold Plus PlanRs.11,031
40
4. Home InsuranceIt is imperative that you secure your home from natural
and man-made catastrophes. Our Home Insurance Plan
ensures you peace of mind by protecting the structure
and the contents of your home
The calamities covered are:
- Fire
- Riot, strike & malicious damage
- Explosion & implosion
- Earthquake
- Lightning
- Storm, cyclone, tempest, tornado, hurricane, flood
& inundation
- Damage due to impact by vehicle
- Missile testing operation
- Subsidence, landslides and rockslides
- Leakage from automatic Sprinkler installation
- Aircraft damage
- Bursting and/or overflowing of water tanks,
apparatus and pipes
Key Benefits
Comprehensive cover - Covers both structure and contents
of your home.
Avail 15% discount on a 3 years home insurance policy and
25% discount on 5 years policy.
Optional covers available - Terrorism and Additional
expenses of rent for alternative accommodation.
Need for Policy
1. Protect your single largest investment against losses
due to natural or man-made calamities like fire,
floods, burglary, earthquake.
41
2. Cover your household contents including furniture,
durables, clothes, utensils, jewellery, at market value
to accommodate inflation.
4.1 Householder’s Insurance
4.1.1 Risk covered under this policy: Section-1: Deals with fire and allied Perils. This section insures your house and the contents of your ouse against fire, lightning, explosion of gas cylinders, bursting and overflowing of water tanks and pipes, earthquake, flood, storm, cyclone, landslide, damage by aircrafts or articles dropped
from an aircraft,and it even takes care of damage by riots, strikes and malicious acts, Terrorism.
4.1.2 Types of construction covered:Only buildings of CLASS ‘A’ construction are covered.
CLASS ‘A’ construction –building shouldfulfill the following conditions.
(i). External walls of stone, bricks, blokes,etc.(ii) Roof of R.C.C./masonry/asbestos/concretesheet or boarding on R.C.C/steel/wooden frame work.
4.1.3 Others sections of this policy:
Section2: Damage of property: this sections covers losses ordamage to the property arising out of burglary,housebreaking, larceny or theft
If the clients desires to specifically insure items ofjewellery and valuables under this section, please ensurethat they are also covered under Section 1 for the samevalue.
Section3: all risks: this section insures your jewellery andvaluables against loss or damage by accident or misfortunewhile you are traveling anywhere in India. However, it issubject to certain limitations.
Section 4:plate glass: this policy covers accidentalbreakage/such glass.
42Section 5: break down of domestic appliances damage cause todomestic electrical, electronic or mechanical appliance bymechanical or electrical breakdown are covered.
Section 6: covers TV sets and VCR against fire, lightningexplosion of the domestic appliances bursting and overflowing of water tanks, apparatus and pipes, air-crafts orarticles dropped there from, earthquake, fire or shock,flood inundation, hurricane, cyclone, theft etc.
BURGLARY INSURANCE
Burglary Insurance policy covers property contained in business premises, stocks owned, or for which insured is responsible or held in trust and/or commission. It also covers cash, valuables, securities kept in a locked safe or cash box in locked steel cupboard on specific request.
What does this Policy cover ?
This Burglary Insurance covers loss or damage caused by Burglary and Theft (i.e. theft following upon an actual forcible and violent entry of and / or exit from the premises).
Robbery : In respect of contents of offices, warehouses, shops, etc. and cash in safe or strong room and also damage caused to the premisesExtensions
It is possible to extend the policy to include loss ofthe insured property to cover burglary as a result of
riot & strike risks.
It is possible to extend the cover to include theft andlarceny not accompanied by violent ingress or exit. Theextension does not cover losses detected during routinestock taking/ checking.
43Benefits
Costs for changing locks and cost for repair of damage caused to the insured premises after an insured event up to10 % of the total sum insured. This extension is available regardless of whether the Insured is a tenant responsible for such repairs or owner of the premises.
Loss minimisation expenses up to 10 % of the total sum insured
Expenses towards restoring paper files, plans, records and drawings, data and installation costs for computer programsup to Rs 10000
Expenses towards clearance of debris and movement and protection up to 10 % of the loss subject to a maximum of Rs 10,000
Loss or damage to the properties of the employees of the Insured up to Rs 5,000
MEANING
Today’s Indian insurance market, the challenge to insurers
and intermediaries is two-pronged:
1. Building faith about the company in the mind of the
client
2. Intermediaries being able to build personal
credibility with the clients
Traditionally tied agents have been the primary channels for
insurance distribution in the Indian market; the public
sector insurance companies have their branches in almost all
parts of the country and have attracted local people to
become their agents. The agents are from various segments
in society and collectively cover the entire spectrum of
society. A person who has lived in the locality for many
years sells the products of the insurance company with a
local branch nearby. This ensures the last mile touch point
being closer to the customer. Of course, the profile of the
people who acted as agents suggests they may not have been
sufficiently knowledgeable about the different products
offered, and may not have sold the best possible product to
the client. Nonetheless, the customer trusted the agent and
company. This arrangement worked adequately in the absence
of competition.
In today's scenario agents continue as the prime channel for
insurance distribution in India, as is the case in most
markets, supported by call centers to a small extent. Almost
all the new players follow this model primarily because the
regulations for other channels are yet to be put in place.
However there is great excitement in the industry over the
impending broker regulations and companies are planning
possible channels in their enthusiasm to increase volumes.
The belief that all these channels will grow and seamlessly
integrate to bring in business seems a fallacy.
46
What have emerged is a much more difficult and evolving
market scene with existing players, more new players coming
in, and global marketing practices and ideas being tested.
But none of this has changed the fundamental character of
the market, which we believe will take more time than
expected.
What should the companies look at?
Basically companies have to take a look at the
intermediaries they are using, whether it is optimal to use
them, and what are the alternatives?
The new companies have attempted appealing only to the
middle, upper middle and elite classes in the major cities.
Contrasted with Public sector insurance companies, with
their offices across the country, the new companies have
miles to go before they reach anywhere. They must overcome
the mindset of the customer that life insurance is Life
Insurance Corporation of India (LIC) and general insurance
is General Insurance Corporation of India (GIC) if they hope
to grow in the market. Meanwhile, the public sector
companies are going to great lengths to revamp their image
to look and feel more contemporary. Both the public and new
private sector companies are fighting their own battles from
the perspective of customer perception management:
NEED FOR ALTERNATIVE DISTRIBUTION CHANNEL
Financial Liberation
The liberalization of national financial and capital
markets; coupled with the globalization of national
economies has catalyzed financial innovation and spurred the
growth of cross- border capital movements. The regulatory
authorities in many countries have altered rules governing
financial intermediation to allow a broader range of
institutions to provide financial services and thus new
classes of non-bank financial institutions have emerged. The
Insurance (amendment) Bill, 2002 passed on 23.09.2002
provides for setting up of Cooperatives exclusively for
carrying on Insurance business.
47
The cooperatives would be subject to some paid up capital
requirements, deposits with RBI and other regulations
concerning accounts and audit.
Cost Advantage
The existing two-tier structure needed a relook and use of
technology with agency channel was poor and inadequate.
Besides, the levels of service were poor not consistent with
the costs. To maximize reach in the market place, many
insurers are aiming to derive channel advantage because each
channel has unique strengths. For e.g., a direct sales force
is usually optimal for complex, high cost transactions where
face-to-face interaction is expected and required. Brokers
and Corporate Agents can dramatically expand market reach
through local access and penetration. The Internet can be
used to get the message out to untold millions, at an
extremely low cost.
The companies that choose and cleverly integrate the rightmix of channels can build market systems that respondoptimally to each of the requirements of the products andmarkets. They can, for example, use expensive sales forcerepresentatives only to acquire and grow the most importantkey accounts. They can then use brokers to reach dispersed
groups of smaller customers and to provide local salessupport. They can use call centers to close simple sales,generate sales leads for other channels and follow up ondirect mail campaigns. They can use the Internet to reachcustomers who prefer to serve themselves and want to savemoney. These efforts add up to a huge competitive advantagein terms of revenue growth, market reach, customer loyallyand higher productivity. Experience shows better averages interms of policy size, first premium per policy and firstpremium per Rs.1000 sum assured.
48
Advances in Information and Computer Technologies The integration of voice and data enabled entry ofinteractive voice response system (IVRS). The policyholdercan manage his policies through his facility. The website,though initially started as a spin of, became interactiveenabling the policyholders to know product information,calculate the premium quotes, know the premium position andvarious other benefits and redress grievances. The touchscreen kiosks have been introduced to create awareness ofthe products and for servicing. The metro area networks and
the wide area networks facilitated payment of premiumanywhere and provided access to policy information anywherein the country. As a result of the above initiatives thecustomer has become ever more informed, demanding andintervening in the purchase decision-making. The marketbecame highly segmented and warranted multiple channels toexploit it.
AGENTS
Today's insurance agent has to know which product will
appeal to the customer, and also know his competitor's
products in the same space to be an effective salesman who
can sell his company, the product, and himself to the
customer. To the average customer, every new company is the
same. Perceptions about the public sector companies are also
cemented in his mind. The new companies are looking for
educated, aware individuals with marketing flair, an elite
group who can be attracted only with high remuneration and
the lure of a fashionable job, all of which may not be
possible in this business with its price pressures and the
complexity of selling insurance. Unable to attract this
segment, they have started easing recruitment conditions as
against the stringent norms they had earlier, thereby
diluting the process.
While the public sector companies are able to attract
agents, they continue to suffer from high attrition rates
due to indiscriminate agent appointment. The most
successful of these companies' tied agents are hardly of the
elite variety of salesman.
49
They are still the neighborhood do gooders -- the postman,
the schoolteacher, and the shopkeeper -- who know the people
and are themselves known in the community. The challenge
here is the lack of knowledge of the competitive market and
the inability to do intelligent comparisons with the
competitor's products. Educating and training these agents
is a serious challenge for the insurance company.
The relevance of this kind of agent continues even today as
agents are sought or contacted by families by word of mouth.
Insurance companies are advised not to follow the path of
FMCG's/credit card companies, believing that a suited and
booted customer care consultant or financial consultant will
necessarily appeal to the average Indian customer. Another
social feature in the market is the considerable respect for
age in Indian society and a belief that an older person
knows better. A very young up-market agent who is a typical
salesman may not appeal to a large segment of the middle
class, which is looking for a solid trustworthy person from
whom they can buy insurance. In this context it might be a
rewarding exercise to recruit some older people (who have
taken VRS2 from banks and other financial institutions) to
sell some lines of products like pension plans, annuities
etc.
50
MARKETING STRATEGIES
Marketing Strategy #1: Gain Customer Confidence. Customerindecisiveness, skepticism, indifference, or confusion areamong the top sales killers in the business world. It's upto you to project an image of experience, quality,dependability, excellent customer service, and/or added
value to your prospective customers in order to win theirconfidence. If you haven't clearly communicated theadvantages and solid reasons for them to do business withyou, then they'll be hesitant to commit and the sale will goto your competitor.
Marketing Strategy #2: Penetrate awareness of your targetaudience by using some form of integrated marketing. Inother words, the more ways the public hears about you, thebetter your chances are for achieving brand recognition,credibility, and greater market share. Effective marketingis partly the result of exposing your target audience toyour name and your selling points (unique sellingproposition) as often as possible(frequency), in as manyways as possible, and as cost-effectively as possible.
Marketing Strategy #3: Sincere enthusiasm, in both print andin person, is contagious (and I'm not talking about usingmultiple exclamation points after sentences!!! That detractsfrom your credibility and perceived professionalism.) If youdeeply believe in your products, services, your company, andyourself, then your prospects will pick up on thatpassionate attitude and feel confident and optimistic aboutdoing business with you.
Marketing Strategy #4: Purchasing is an emotional decision.Instill in your prospects good feelings about your company,your business relationship with them, and how you canimprove their lives or solve their problem. Accomplishingthat is at least as important in the sales and marketingprocess as focusing attention on product features andbenefits.
Marketing Strategy #5: Dispel distrust. Gain customerconfidence and overcome potential feelings of distrust byoffering written guarantees of satisfaction wheneverpossible, customer testimonials, references, and by joiningrespected and well-known professional organizations, such asthe Better Business Bureau, Chambers of Commerce, andindustry associations.
51
Marketing Strategy #6: Impose a deadline.Counteract one ofthe biggest obstacles to closing a sale known to mankind:procrastination. To overcome the natural human tendancy todeliberate, postpone, and delay, it's often necessary toinject a sense of urgency into your ads, salespresentations, and marketing messages. Whether supplies arelimited or prices are going up at the end of the month, someprospects need to have a deadline or an incentive tomotivate them to take action now.
Marketing Strategy #7: Create a business marketing plan toidentify and capitalize on your strengths and opportunities.Your marketing strategies should also take into accountfactors such as your weaknesses (and possible remedies),external threats (competition, economic factors, etc.), yourmarketing mix strategy (products/services, promotionalgoals, pricing strategy, and distribution decisions), mediastrategy, sales and expense budgets, target market analysis(know your customers), and readily available marketingtools, as well as marketing tools that you need to researchor acquire.
CHAPTER- 6
JOB PROFILE
53
JOB DESCRIPTION
After the product training and initial understanding of the
policies, we were required to generate leads by doing
telecalling. In the RO department, there are no separate
telecallers and the ROs are supposed to generate their own
leads and do the sales. Initially we were supported by a
database given to us, but later we were asked to generate
own database. Thus we generated the data base through
internet search mainly and some other through directories of
certain specific areas in Delhi. The database and leads were
generated through both in- office work as well as field
work. It is described in the following sections:
6.1 TELECALLING
The telecalling was done not to pitch the product on
phone but the main idea was to convince the prospective
customers to listen to us, about the blank, the
services provided, get him interested in the wealth
management area and convince him for an appointment.
The telecalling function included all the following
things: -
6.1.1 Conforming the person’s name
6.1.2 Greeting the person
6.1.3 Introducing myself with my name and bank’s
name.
6.1.4 Telling him about the investment services
provided by the bank
6.1.5 Convince him for appointment.
6.1.6 Note down the time and address of the
appointment.
6.1.7 If the person asks to call later, ask for his
preferred time.
54
DIFICULTIES FACED DURING THE TELECALLING PROCESS
6.1 Person or contact number
6.2 Person that moment
6.3 Person not interested at all.
6.4 Person asking for the details, but not ready
to give appointment.
6.2 DATABASE GENERATION IN FIELD WORK
1. Database generation for motor insurance
In between there was surge of activities related the
ICICI Lombard general insurance sales. There were more
of training on general insurance products and also for
generating more leads for the sales of general
insurance. For the generation of leads, all the
summer’s trainees were given a form seeking information
about the four-wheeler owner {for the purpose of motor
insurance}
A one page form was used which sought the following
information:
The vehicle model
The month and year of purchase
The name and contact number
2. Cold Calling
We also did cold calling for the purpose of lead
generation and so as to get experience of facing the
prospective customers personally and handling the
client objections all by myself.
55
3. Cross selling of Credit Cards
Meanwhile our summer training the newly launched credit
cards of CBOP known by the name of miracle card, was
floated in the wealth management department also for
cross selling.
During the cold calling, we used to pitch the credit
cards and sold some of the credit cards. For the credit
cards to be granted to the customers, the verifications
of documents was a crucial step and thus we learnt
about the know your customers norms by RBI for credit
cards, which is a list of the required documents for a
credit card sale. The credit card sale pften required
two or three visits to the customers for complete
documentation.
57
QUESTION 1: Am I too young to invest?
The power of compounding: the last moment. Longer you
delay the greater will be the financial burden on you to
meet your goals. On the other hand, you will b surprised
by what you can achieve by saving a small sum of money
regularly at an early age. Moreover the earliar you
invest; the longer your money works for you and greater
will be the power of compounding.
QUESTION 2: I don’t want to invest in private insurance
companies.
Insurance is a long term business entered into by
companies only after very careful deliberation and
recognizing a deep commitment to a market. Aviva combines
the financial powers and integrity of the dabur group,
with the international expertise and financial strength
of aviva.
QUESTION 3: Does Aviva guarantees returns like LIC?
The returns of Aviva policies are not guaranteed. The
rate of return would vary as per the product and the fund
chosen by the customers. You would also have noticed that
the most companies are moving away from the guaranteed
products. Many guaranteed return product have been
withdrawn from the market. Take example of Jeevan Shree,
Bima Nivesh, children’s money back , Jeevan Suraksha. All
these products have been withdrawn one after the another
in few last years.
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QUESTION 4: What if the company winds up operations afterfew years? who will be responsible for my policy?
The philosophy of the insurance is the long term
commitment by the insurers to the policyholders, more
particularly in case of life insurance business. The
insurers can carry out insurance business in India only
after being registered with IRDA. Prior to grant of this
registration, the authority does an examination of the
credibility, financial strength and commitment of the
applicants to the Indian market. Only in suitable cases
will the authority grant the registration to the
applicant. As a policy, the authority looks into the
business projections of an applicant for 10 years to
ensure that the business plan to be carried out by the
applicant would be on a sound basis and there would not
be any attempt to under cut the interests of or under
price a product of a competitor which will affect the
strength and solvency of the insurer.
QUESTION 5: If my agent offers me a discount, can Iaccept it or is discounting illegal?
The agent is bound by law not to offer a rebate from out
of commission he gets; if he gives the discount to the
customer from the commission that he receives from the
insurance company, it will be an offence under the
insurance act, 1938.
OBSERVATIONS DURING SELLING EXPERIENCE
Disinterest in insurance – people are not very much
interested in the concept of insurance. They think the
risk coverage part to just a liability on their
returns. Even in the ULIP plans, they are more
interested in the investment part they take ULIP plans
for tax benefits. The ‘insurance’ in insurance has a
less weightage than the investment in insurance.
Lack of awareness about ULIP – people do not fully
understand what ULIP is all about and they tent to
think it is yet another mutual fund. During my calls,
to my surprise I found that a good number of investors
were not even aware that they have already taken ULIP
policy previously which they think to be as ‘some
fund’.
Reluctance towards long term plans- people are keen to
invest in short term like mutual funds and direct
equity market. They are reluctant to make a long term
commitment. This is another reason why people shy away
from insurance. Even in mutual funds, they are more
interested in short term. They also prefer liquidity.
Lack of knowledge about investments- I saw that many
people are not aware about mutual funds, demat system
of securities etc. the sales offer in that case should
strive to make him understand first about all the
investment avenues before his making a decision.
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Apathy towards investment planning- some people I found
out were not even interested in planning how their own
money should be invested. They just rely on
intermediaries for their investment and do their
investment as and when there is a surplus.
Customers interested in discounts- some clients are
more interested in dealing with brokers and agents who
give out some of their own commission to the client as
a payback.
Two months of our Summer Training proved to be a great
learning experience for us. However during these two months
of tenure we noticed some areas which may need small
improvements which are as follows:
i. More of Tellecalling
As there is no tellecalling department, more focus is
required to do telecalling by ROs. For this they must be
supported by a quality of database. Also training on
telecalling requires attention. Setting up a telecalling
department though is practiced in other banks but it has
also got its own demerits.
ii. Large Product Mix
As of now ROs are selling only two products life long and
saveguard since they provide maximum revenue to the banks.
But bank can offer more products of aviva under its
contract. So allowing and encouraging ROs to also sell other
products will enable them to offer large mix of products to
their clients.
iii. Realistic Targets
tough setting high targets are always practiced but setting
them too high may sometime also be a source of demotivation.
iv. Increase in advertisement and promotional campaigns
Till now there is no ad on TV or other media. There is lack
of awareness about the bank. The canopies put up by us
helped in promotional campaign. In future too, the
objectives of such activities should not be restricted to
database collection, but the focus should be long term brand
building for the bank.
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v. Focus on portfolio designing
Currently the focus of employees is mainly on selling of
life insurance of products only. This focus should be
changed to whole of portfolio designing. This will require
training from expert in this field. For example Financial
planning Model can be used.
CONCLUSIONS
65Our summer training provided us valuable learning about the
industry, The product insurance and mutual funds and the
work experience of selling investment tools, especially life
insurance.
Banking industry and insurance industry today has enormous
scope in the form of bank assurance. Insurance industry has
seen enormous changes in the form of innovations. The
innovation of ULIP has brought a major change and has
revolutionized the growth of insurance industry. ULIP has
turned out to be a flexible, customer centric financial tool
having the advantage of both insurance and an investment.
We learned about technical features of the product and at
the same time, learned the soft skills needed to sell
investment tools. Especially selling of life insurance
involve a lot of relationship building, empathizing and
developing trust with the customers. It involves a lot of
patience as well.
We found that there is a gross lack of awareness about the
investment tools, especially the ULIP products, which can
greatly be improved by the sales peoples’ effort to educate
the customers about all the investment tools. The effort
should be to equip them with knowledge to let them make
better decision, rather than making decision on their
behalf. The latter is a short term approach to selling,
while the former will go a long way in building the faith of
the customer and thus the strong client.
We could generate some leads for the bank and the database
that we hope would materialize into sales. We learned
greatly from this experience and we tried to put in the best
of our effort to achieve our targets.
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CHAPTER - 10
ANNEXURE
67
FAQ’s OF MARKETING
Q1. WHO Might YOU Choose to Reach With a Prudent Marketing-
Inspired Approach?
UNORGANIZED WORKERS
This would entail the clear identification of the target
(from a single bargaining unit to a broad economic sector)
and extensive research on their distinctive characteristics.
Based on this insight, I would prepare with the union an
itemized written organization plan for the elected
officials' approval which would include advice on the
implementation, follow-up and evaluation of the outcome.
(More detailed information appears in an organizing
example.)
DUES PAYERS IN BARGAINING UNIT (S)
YOU may decide that in a given unit or units, more members
should be signed up, participation increased, or loyalty and
satisfaction with the union reinforced. Various research
methods and marketing techniques could provide YOU with the
information necessary to draft a strategic plan to advise
YOU on appropriate strategies to accomplish these goals.
THE GENERAL PUBLIC
Faced with a difficult conflict, YOU may be considering a
boycott of an employer's product(s), service(s) or
outlet(s). A thorough inventory of the target employer's
marketing position and strategies is essential. From this
would flow the elaboration of a counter-marketing plan aimed
at diminishing the target employer's market share. YOU could
then authorize a clearly focused boycott.
68
Q2.WHEN might YOU consider a marketing-based campaign?
When the circumstances, nature, size and consequences of the
organizing campaign, boycott or consolidation operation that
YOU are preparing justifies the extra time, further planning
and manifestly additional monies involved.
Q3.WHERE might YOU apply such a marketing plan?
A city, a county, a province or right across Canada or the
United States.
Q4.HOW could YOU determine whether a marketing approach is
beneficial and relevant for your labour organization?
Contact Allen Gottheil. I will gladly meet with YOU to
examine the situation (organization drive, consolidation
project, boycott or other campaign). I will then submit to
YOU, in writing, at absolutely no charge, a three to five
page blueprint of what relevant services I could offer (and
their benefits), a time frame for their performance and an
estimate of the direct costs.
Q5.WHY should YOU consider hiring an "outsider"?
As an "outside" marketing consultant, I believe that I would
be able to recommend innovative and imaginative approaches
in many situations. Often, it can be a very distinct
advantage to have someone with an uncommitted and
unconventional perspective, who is "not" involved in the
daily internal union routine, to suggest some novel and
hopefully appropriate strategies.
69
When a labour union or federation contemplates committing
resources to a major campaign I believe that I could be very
helpful in the planning, the mechanics, the execution and
the follow up of such a drive (or perhaps even in
counselling against embarking on the proposed campaign).
Independent marketing consultants are often brought in by
profit-seeking companies to recommend innovative approaches
to problems in which the "outsider" is viewed as someone who
may not be able to see the trees but can have a constructive
view of the forest.
69
PROFIT AND LOSS ACCOUNT OF ICICI BANK
Assets
Current Assets
CashAnd CashEquivalents1,479,000
Short Term Investments -
Net Receivables 194,000 Inventory - Other Current Assets -
Total Current Assets- Long Term Investments 1,185,000 Property Plant and Equipment 48,000 Goodwill - Intangible Assets - Accumulated Amortization - Other Assets 81,000 Deferred Long Term Asset Charges -
Total Assets2,987,000
LiabilitiesCurrent Liabilities
AccountsPayable-
Short/Current Long Term Debt -
Other Current Liabilities 2,454,000
Total Current Liabilities- Long Term Debt 57,000 Other Liabilities 215,000 Deferred Long Term Liability Charges - Minority Interest - Negative Goodwill -
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Total Liabilities2,726,000 Stockholders' Equity Misc Stocks Options Warrants- Redeemable Preferred Stock - Preferred Stock - Common Stock 45,000 Retained Earnings 44,000 Treasury Stock - Capital Surplus 171,000 Other Stockholder Equity 1,000
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