Hr practices and polices of ICICI Bank

1. A PROJECT ON
A COMPARATIVE STUDY OF HR PRACTICES AND
POLICES OF ICICI PRUDENTIAL LIFE INSURANCE
COMPANY LTD (DIST PATIALA)
A project report submitted in partial fulfillment of the requirement for the degree of
MASTER OF BUSINESS ADMINISTRATION, DISTANCE EDUCATION
GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY,
HISAR (2008-2010)
RESEARCH SUPERVISOR SUBMITTED
BY:
DR N. K SAHNI Name
BHARAT BHUSHAN
ROLL
NUMBER 2020

DIRECTORATE OF DISTANCE EDUCATION
GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY HISAR
(INDIA)
1

2. CERTIFICATE
This is to certify that the project report entitled “COMPARATIVE STUDY OF HR
PRATICES AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE CO LTD
(DIST PATIALA) submitted by Mr. BHARAT BHUSHAN of the DIRECTORATE OF
DISTANCE EDUCATION GURU JAMBHESHWAR UN IVERSITY OF SCIENCE &
TECHNOLOGY HISAR (INDIA) in partial fulfillment of the requirement for the degree
of Master of Business Administration (MBA) is a bonafide research work completed
under my guidance and supervision. No part of this project report has ever been
submitted for any other degree or diploma. The assistance rendered during the course of
the study has been duly acknowledged.
DR. N K
SAHNI
HOD
Post Graduate dept of Commerce
& Management S.D.
college
Chandigarh




DECLARATION
2

3. Certified that I BHARAT BHUSHAN of Master of Business Administration
(MBA) have prepared report titled “ COMPATATIVE STUDY OF HR PRACTICES
AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. (DIST
PATIALA) under the guidance of Dr N.N. SAHNI Designation HOD in POST
GRADUATE DEPT OF COMMERCE & MANAGEMENT S.D COLLEGE
CHANDIGARH, in the partial fulfillment of the requirement for the degree of Master of
Business Administration. There by certify that no part of this report has been submitted
for any other degree.
BHARAT BHUSHAN
ROLL NUMBER 2020
MBA 2
ND
Year

ACNKOWLEDGEMENT
3

4. This humble endeavor bears the imprint of many persons who were in ony way of
the other helpful in the completion of my final research project. I would life to take this
opportunity to present my vote of thanks to my guides who acted as lighting pillars to
enlighten my way through out this project. This project would not have been possible
without the kind assistance and guidance of many people who indeed were helpful,
cooperative and kind during the entire course of my project.
The acknowledgment would not be complete without expressing my indebtedness
to my Hon’ble Dr N.K. SAHNI who guides me in this project and was the constant
source of reference for me and showed full interest at each and every step of my project.
(BHARAT BHUSHAN)

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5. TABLE OF CONTENT
Chapter. No CONTENTS Page
No.
EXECUTIVE SUMMARY 1
1. INTRODUCTION 2
2. INSURANCE INDUSTRY 19
3. PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE CO.LTD. 33
4. IMPLEMENTING HR PRACTICES AND POLICES IN ICICI
PRUDENTIAL LIFE INSURANCE CO.LTD
51
5. RESEARCH OBJECTIVES 65
6. RESEARCH METHODOLOGY 66
7. DATA ANALYSIS AND INTERPRETATION 68
8. SUGGESTION 83
9. CONCLUSION 92
10. LIMITATIONS 93
11. BIBLIOGRAPHY
12. ANNEXTURE

EXECUTIVE SUMMARY
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6. ICICI Prudential Life Insurance Life Insurance is one of the largest Insurance
networks in the country, and 2
nd
Life Insurance Company in India. The ICICI Group has
been in existence since 1955 when ICICI Ltd., was created. ICICI Prudential Life
Insurance started in 2002 as subsidiary of ICICI Ltd., Today ICICI Life Insurance has a
customer base of 4 million with total assets exceeding Rs.1, 00,000 Cr. making it the 2
nd
largest life insurance company in the country, next only to LIC.
The Insurance sector, after the opening up, provides greater opportunities. Several
global players have emerged and the market has changed significantly. In the changed
scenario, the expectation is that the low Insurance premium as a percentage of GDP
prevailing in India will improve and will offer better opportunities to the insurance
players.
Life Insurance sector is one of the key areas where enormous business potential
exists. In India currently the life insurance premium as a percentage of GDP is 1.3 per
cent against 5.2 per cent in the US, but in the liberalized scenario, the life insurance
premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99
to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life
premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-
10 and personal line non-life from Rs 4 billion to Rs 51 billion.
In the life Insurance segment the Life Insurance Corporation of India (LIC) is the
major player. The LIC has 2050 branches. It is constituted in to seven Zones. Currently
there are 5, 60,000 LIC agents in India. General Insurance is another segment, which has
been growing at a faster pace.
Though it all can happen with good HR policies and practices that has been a part
of ICICI Prudential Life Insurance.
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7. 1. INTRODUCTION

The role of Human Resources is changing as fast as technology and the global
marketplace. Historically, the HR Department was viewed as administration, kept
personal files and other records, managed the hiring process, and provided other
administrative support to the business. Those times have changed.
The positive result of these changes is that HR professionals have the opportunity to play
a more strategic role in the business. The challenge for HR managers is to keep up to date
with the latest HR innovations—technological, legal, and otherwise.
This special report will discuss the best practices in HR management for 2010—in other
words, how HR managers can anticipate and address some of the most challenging HR
issues this year. This report will give you the information you need to know about these
current HR challenges and how to most effectively manage them in your workplace.
Human resources is an increasingly broadening term with which an organization, or
other human system describes the combination of traditionally administrative personnel
functions with acquisition and application of skills, knowledge and experience, Employee
Relations and resource planning at various levels. The field draws upon concepts
developed in Industrial/Organizational Psychology and System Theory. Human resources
has at least two related interpretations depending on context. The original usage derives
from political economy and economics, where it was traditionally called labor, one of
four factors of production although this perspective is changing as a function of new and
ongoing research into more strategic approaches at national levels. This first usage is
used more in terms of `human resources development', and can go beyond just
organizations to the level of nations. The more traditional usage within corporations and
businesses refers to the individuals within a firm or agency, and to the portion of the
organization that deals with hiring, firing, training, and other personnel issues, typically
referred to as `human resources management'. This article addresses both definitions.
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8. The objective of human resource’s' development (the `s' is important in human
resource`s' in that it underscores indiduality/variability) is to foster human
resourcefulness through enlightened and cohesive policies in education, training, health
and employment at all levels, from corporate to national (Lawrence 2000) Human
resource management's objective, on the other hand, is to maximize the return on
investment from the organization's human capital and minimize financial risk. It is the
responsibility of human resource managers in a corporate context to conduct these
activities in an effective, legal, fair, and consistent manner.
Human resource management serves these key functions:
1.Recruitment & Selection
2.Training and Development
3.Performance Evaluation and Management
4.Promotions
5.Redundancy
6.Industrial and Employee Relations
7.Record keeping of all personal data.
8.Compensation, pensions, bonuses etc in liaison with Payroll
9.Confidential advice to internal 'customers' in relation to problems at work
10.Career development
Modern analysis emphasizes that human beings are not "commodities" or "resources",
but are creative and social beings in a productive enterprise. The 2000 revision of ISO
9001 in contrast requires to identify the processes, their sequence and interaction, and to
define and communicate responsibilities and authorities. In general, heavily unionized
nations such as France and Germany have adopted and encouraged such job descriptions
especially within trade unions. The International Labour Organization also in 2001
decided to revisit, and revise its 1975 Recommendation 150 on Human Resources
Development. One view of these trends is that a strong social consensus on political
economy and a good social welfare system facilitates labor mobility and tends to make
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9. the entire economy more productive, as labor can develop skills and experience in
various ways, and move from one enterprise to another with little controversy or
difficulty in adapting. Another view is that governments should become more aware of
their national role in facilitating human resources development across all sectors.
An important controversy regarding labor mobility illustrates the broader philosophical
issue with usage of the phrase "human resources": governments of developing nations
often regard developed nations that encourage immigration or "guest workers" as
appropriating human capital that is rightfully part of the developing nation and required
to further its growth as a civilization. They argue that this appropriation is similar to
colonial commodity fiat wherein a colonizing European power would define an arbitrary
price for natural resources, extracting which diminished national natural capital.
The debate regarding "human resources" versus human capital thus in many ways echoes
the debate regarding natural resources versus natural capital. Over time the United
Nations have come to more generally support the developing nations' point of view, and
have requested significant offsetting "foreign aid" contributions so that a developing
nation losing human capital does not lose the capacity to continue to train new people in
trades, professions, and the arts.
An extreme version of this view is that historical inequities such as African slavery must
be compensated by current developed nations, which benefited from stolen "human
resources" as they were developing. This is an extremely controversial view, but it echoes
the general theme of converting human capital to "human resources" and thus greatly
diminishing its value to the host society, i.e. "Africa", as it is put to narrow imitative use
as "labor" in the using society.
In a series of reports of the UN Secretary-General to the General Assembly, a broad inter-
sectoral approach to developing human resourcefulness has been outlined as a priority for
socio-economic development and particularly anti-poverty strategies. This calls for
strategic and integrated public policies, for example in education, health, and
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10. employment sectors that promote occupational skills, knowledge and performance
enhancement (Lawrence, J.E.S. 2000).
In the very narrow context of corporate "human resources" management, there is a
contrasting pull to reflect and require workplace diversity that echoes the diversity of a
global customer base. Foreign language and culture skills, ingenuity, humor, and careful
listening, are examples of traits that such programs typically require. It would appear that
these evidence a general shift through the human capital point of view to an
acknowledgment that human beings do contribute much more to a productive enterprise
than "work": they bring their character, their ethics, their creativity, their social
connections, and in some cases even their pets and children, and alter the character of a
workplace. The term corporate culture is used to characterize such processes at the
organizational level.
The traditional but extremely narrow context of hiring, firing, and job description is
considered a 20th century anachronism. Most corporate organizations that compete in the
modern global economy have adopted a view of human capital that mirrors the modern
consensus as above. Some of these, in turn, deprecate the term "human resources" as
useless. Yet the term survives, and if related to `resourcefulness', has continued and
emerging relevance to public policy.
In general the abstractions of macro-economics treat it this way - as it characterizes no
mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific
human capital" as defined in macro-economics is the modern and correct definition of
"human resources" - and that this is inadequate to represent the contributions of "human
resources" in any modern theory of political economy.
1.1 HUMAN RESOURCES DEVELOPMENT
In organizations, in terms of sex and selection it is important to consider carrying out a
thorough job analysis to determine the level of skills/technical abilities, competencies,
flexibility of the employee required etc. At this point it is important to consider both the
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11. internal and external factors that can have an effect on the recruitment of employees. The
external factors are those out-with the powers of the organization and include issues such
as current and future trends of the labor market e.g. skills, education level, government
investment into industries etc. On the other hand internal influences are easier to control,
predict and monitor, for example management styles or even the organizational culture.
In order to know the business environment in which any organization operates, three
major trends should be considered:
·Demographics – the characteristics of a population/workforce, for example, age,
gender or social class. This type of trend may have an effect in relation to pension
offerings, insurance packages etc.
·Diversity – the variation within the population/workplace. Changes in society
now mean that a larger proportion of organizations are made up of "baby-
boomers" or older employees in comparison to thirty years ago. Traditional
advocates of "workplace diversity" simply advocate an employee base that is a
mirror reflection of the make-up of society insofar as race, gender, sexual
orientation, etc.
·Skills and qualifications – as industries move from manual to a more managerial
professions so does the need for more highly skilled graduates. If the market is
"tight" (i.e. not enough staff for the jobs), employers will have to compete for
employees by offering financial rewards, community investment, etc.
In regard to how individuals respond to the changes in a labour market the following
should be understood:
·Geographical spread – how far is the job from the individual? The distance to
travel to work should be in line with the pay offered by the organization and the
transportation and infrastructure of the area will also be an influencing factor in
deciding who will apply for a post.
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12. ·Occupational structure – the norms and values of the different careers within an
organization. Mahoney 1989 developed 3 different types of occupational structure
namely craft (loyalty to the profession), organization career (promotion through
the firm) and unstructured (lower/unskilled workers who work when needed).
·Generational difference –different age categories of employees have certain
characteristics, for example their behavior and their expectations of the
organization.
While recruitment methods are wide and varied, it is important that the job is described
correctly and that any personal specifications are stated. Job recruitment methods can be
through job centres, employment agencies/consultants, headhunting, and local/national
newspapers. It is important that the correct media is chosen to ensure an appropriate
response to the advertised post.
Human Resources Development is a framework for the expansion of human capital
within an organization or (in new approaches) a municipalty, region, or nation. Human
Resources Development is a combination of Training and Education, in a broad context
of adequate health and employment policies, that ensures the continual improvement and
growth of both the individual, the organisation, and the national human resourcefulnes.
Adam Smith states,“The capacities of individuals depended on their access to
education”.Kelly D, 2001Human Resources Development is the medium that drives the
process between training and learning in a broadly fostering environment. Human
Resources Development is not a defined object, but a series of organised processes, “with
a specific learning objective” (Nadler,1984) Within a national context, it becoms a
strategic approach to intersectoral linkages between health, education and employment
Human Resources Development is the structure that allows for individual development,
potentially satisfying the organization’s, or the nation's goals. The development of the
individual will benefit both the individual, the organization, or the nation and its citizens.
In the corporate vision, the Human Resources Development framework views employees,
as an asset to the enterprise whose value will be enhanced by development, “Its primary
focus is on growth and employee development…it emphasises developing individual
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13. potential and skills” (Elwood, olton and Trott 1996) Human Resources Development in
this treatment can be in-room group training, tertiary or vocational courses or mentoring
and coaching by senior employees with the aim for a desired outcome that will develop
the individual’s performance. At the level of a national strategy, it can be a broad
intersectoral approach to fostering creative contributions to national productivity
At the organizational level, a successful Human Resources Development program will
prepare the individual to undertake a higher level of work, “organized learning over a
given period of time, to provide the possibility of performance change” (Nadler 1984). In
these settings, Human Resources Development is the framework that focuses on the
organizations competencies at the first stage, training, and then developing the employee,
through education, to satisfy the organizations long-term needs and the individuals’
career goals and employee value to their present and future employers. Human Resources
Development can be defined simply as developing the most important section of any
business its human resource by, “attaining or upgrading the skills and attitudes of
employees at all levels in order to maximize the effectiveness of the enterprise” (Kelly
2001). The people within an organization are its human resource. Human Resources
Development from a business perspective is not entirely focused on the individual’s
growth and development, “development occurs to enhance the organization's value, not
solely for individual improvement. Individual education and development is a tool and a
means to an end, not the end goal itself”. (Elwood F. Holton II, James W. Trott Jr). The
broader concept of national and more strategic attention to the development of human
resources is beginning to emerge as newly independent countries face strong competition
for their skilled professionals and the accompanying brain-drain they experience.
1.2 MODERN CONCEPT OF HUMAN RESOURCES
Though human resources have been part of business and organizations since the first days
of agriculture, the modern concept of human resources began in reaction to the efficiency
focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in
the United States started the human relations movement, which viewed workers in terms
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14. of their psychology and fit with companies, rather than as interchangeable parts. This
movement grew throughout the middle of the 20th century, placing emphasis on how
leadership, cohesion, and loyalty played important roles in organizational success.
Although this view was increasingly challenged by more quantitatively rigorous and less
"soft" management techniques in the 1960s and beyond, human resources development
had gained a permanent role within organizations, agencies and nations, increasingly as
not only an academic discipline, but as a central theme in development policy.
Human resource policies are systems of codified decisions, established by an
organization, to support administrative personnel functions, performance management,
employee relations and resource planning.
Each company has a different set of circumstances, and so develops an individual set of
human resource policies.
Purposes
HR policies allow an organization to be clear with employees on:
·The nature of the organization
·What they should expect from the company
·What the company expects of them
·How policies and procedures work at your company
·What is acceptable and unacceptable behaviour
·The consequences of unacceptable behaviour
The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as well as its
commitments in relation to regulation and corporate governance. For example, in order to
dismiss an employee in accordance with employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within employment
contracts and collective bargaining agreements. The establishment of an HR Policy which
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15. sets out obligations, standards of behaviour and document displinary procedures, is now
the standard approach to meeting these obligations.
Developing the HR Policies
HR policies provide an organization with a mechanism to manage risk by staying up to
date with current trends in employment standards and legislation.
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16. 1.3 HR POLICIES AND PROCEDURES
This factsheet gives introductory guidance. It:
·highlights the main policies and procedures that organizations need to consider
·looks at formatting a policy and sources of information
Introducing HR policies and procedures gives organizations the opportunity to offer a fair
and consistent approach to managing their staff. For more on why HR policies are
introduced, see our factsheet HR policies and procedures: why introduce them?
11 policy or practice areas those are crucial to effective people management and
development:
·recruitment and selection
·training and learning/development
·career opportunities
·communication
·employee involvement
·team working
·performance appraisal
·pay satisfaction
·job security
·job challenge/job autonomy
·Work-life balance.
Not all policies and procedures will be relevant to all organizations, and some policies are
required by law while others are to promote good practice.
The following paragraphs indicate the range of possible policies which apply during the
employment life cycle - more detailed information and the legal requirements on each of
these areas is included.
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17. Beginning employment
Recruitment and selection
Successful recruitment depends on finding people with the necessary skills, expertise and
qualifications to deliver organizational objectives and who have the ability to make a
positive contribution to the values and aims of the organization. A diverse workforce that
reflects customer groups in the local community should be encouraged.
Elements to consider when forming a recruitment policy:
·job profile/person specification
·dealing with job applications - whether to use hard copy and/or online forms;
confidentiality
·recruitment advertising - discrimination pitfalls
·selection techniques - training and validation
·interviews
·references
·medical examinations
·asylum and immigration
·documentation
·job analysis
·equal opportunities monitoring
·return on investment (ROI)/cost.
There's more information on the website via our Recruitment and talent management
subject pages.
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18. Induction
Designing an appropriate and cost-effective induction programme is a complex task. The
programme has to find a balance between providing all the information new employees
need without overwhelming or diverting them from integrating into the team.
The length and nature of the induction process will depend on the complexity of the job
and the background of the new employee.
Elements of an induction policy:
·organization information - background and structure; departments; products and
services; physical layout
·terms and conditions - hours of work; holidays, travel policy
·financial - pay; bonuses; overtime; pensions
·culture and values - communication
·rules and procedures - data protection; email and Internet usage; equal
opportunities; use of mobile phones
·health and safety - first aid; smoking; environmental aspects
·training
·trade unions
·welfare, benefits and facilities - alcohol and drugs; employee assistance
programmes.
Organizations may find it useful to have checklists that cover the pre-employment period,
the first day, the first week, the first month and the end of the probationary period (if
applicable) to make sure everything has been explained.
There's more information on the website via our Induction subject page.
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19. During employment
Employee relations look at the partnership between employee and employer, covering
areas such as communication, grievances and discipline. It is equally important in both
union and non-union situations. While employment law is closely linked with managing
employee relations, a successful organization won't just base its actions on compliance
with the law - exploring the concept of the psychological contract, based on trust between
employee and employer, may also be useful.
Policies and procedures that organizations may introduce include:
·health and safety
·disciplinary and grievance
·maternity and paternity leave and pay
·redundancy
·absence
·whistle blowing
·performance management
·recognition agreements (union and other)
·time off and leave for trade union activities, holidays, secondment, volunteering,
eldercare, childcare, bereavement
·communication and involvement, including employee voice
·harassment and bullying.
There's more information on many of these issues on the website via our HR
practice, Health, safety and wellbeing and Employment law subject pages.
Managing diversity
Diversity runs through all aspects of an organization’s policies. Managing and valuing
diversity is central to good people management and makes good business sense, so it also
makes sense for diversity to be integral within all policies. A diversity policy sets out the
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20. organisation's vision and values in relation to diversity. It will often include the remit of
polices, the processes for taking action, who is responsible and the training available.
The basic premise is that people should be valued as individuals and for reasons related
to business interests, as well as for moral and social reasons. A more diverse workforce is
likely to offer a wider range of skills and experiences and greater flexibility to meet
business challenges.
Elements of a diversity policy:
·gender/sex equality
·race equality
·sexual orientation
·religion
·age
·appearance/accent
·formats and accessibility of policies and procedures.
Learning, training and development
Roles and responsibilities are constantly changing, so employees will need to continually
renew and refresh their skills and competences through training. This can happen in the
course of normal working (on-the-job training) or away from the workplace (off-the-job
training).
Some training is mandatory to comply with legal requirements, such as health and safety
or finance.
Elements of a learning and development policy:
·the organization’s vision for learning and development
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21. ·opportunities available, including secondment, career breaks, courses, coaching,
mentoring
·who to ask to get authorization for training
·support given for learning opportunities
·development reviews and personal development plans
·payment of professional fees
·training available for 'peripheral' workers ie contractors, temporary staff
·record-keeping and administration
·continuing professional development and personal development allowances (if
these are not part of the employee benefits statement)
·follow-up actions and transfer of learning to work.
Reward
Effective reward practices and procedures can underpin activities in recruitment,
retention, turnover and engagement. Effective implementation and communication are
essential for initiatives to succeed.
Reward policies should be clear and simple so that employees know what's expected of
them and what they can expect to receive in return.
Elements of a reward policy:
·the organization’s vision for reward, including market rates, extra responsibility
allowances
·how jobs are graded or evaluated
·pensions/additional voluntary contributions
·permanent health insurance/critical illness cover
·bonuses and incentive pay
·benefits and non-cash recognition
·company cars
·sick pay
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22. ·pay reviews
·equal pay.
Complementary policies
Other policies that organizations may want to consider in relation to employment include:
·a mission or values statement
·parental leave
·work-life balance/family-friendly work practices
·disability
·well-being and 'wellness'
·green/sustainable development
·the employment of relatives/friends
·conflict of interest, including personal relationships
·second jobs
·confidentiality
·bad weather/climate conditions
·relocation
·suggestion schemes.
Ending employment
There are many reasons why employment ceases, from voluntary resignation to dismissal
or redundancy.
Areas to consider for ending employment include:
·dismissal
·redundancy
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23. ·voluntary resignation
·retirement - retirement age; pre-retirement courses; phased retirement options
·end of a short-term contract
·end of a probationary period
·death in service.
Exit surveys can record information about why employees say they are leaving. But the
data is not always reliable. Another way to discover the reasons why is through opinion
surveys during employment.
Formatting a policy
Policies should be written in plain English, so that they are user-friendly and easily
understood by all employees.
The culture of the organization and the complexity of the policies will dictate the format.
Options include:
·separate manager and employee manuals
·all policies available on an intranet
·key policies on notice boards.
Policies should also indicate who to go to with queries about the content and who is
responsible for updating and reviewing them.
Sourcing information
When developing policies and procedures there are many sources of information
available. The following list gives an indication of further help but is not an exhaustive
list.
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24. 2. INSURANCE INDUSTRY
‘INSURANCE’ is basically a sharing device. The losses to assist resulting from
natural calamities like fire, flood, earthquake, accidents, etc. are not met out of common
pool contributed by large number of persons who are exposed to similar risks. This
contribution of many is used to pay the losses suffered by the few. However the basic
principle is that loss should occur as a result of natural calamities or unexpected events,
which are beyond the human control. Secondly insured person should not make any gains
out of insurance.
It is natural to think of insurance of physical assets such as motorcar insurance or fire
insurance but often we forget that creator of all these assets is human being whose efforts
have gone a long way in building up the assets. In that sense, human life is a unique
income-generating asset. Unlike the physical assets, which decrease in value with the
passage of time, the individual becomes more experienced and more matured as he
advances in age. This raises his earning capacity and the purpose of life insurance is to
protect the income of individual and provide financial security to his family, which is
dependent on his income in the event of his premature death. The individual himself also
needs financial security for the old age or on his becoming permanently disabled when
his income will stop. Insurance also has an element of savings in certain cases.
Insurance is related to the protection of the economic value of the asset. Every
asset has a value .The asset would have been created through the effort of the owner, in
the expectation that, either through the income generated there from or some other
output, some of his needs would be met. In the case of the factor or a cow, the production
is sold and income generated. In the case of a motorcar, it provides comfort and
convenience in transportation. There is no direct income. There is normally expected life
time for the asset during which time it is expected to perform. the owner, aware of this ,
can so manage his affairs that by the end of that life time, a substitute is made available
to ensure that the value, or income is not lost, however , if the asset get lost earlier, being
destroyed or made non functional, through an accident or other unfortunate event, the
24

25. owner and those deriving benefits therefore suffer. Insurance is a mechanism that helps
to reduce such adverse consequences.
Objectives of life Insurance
There are many reasons for investing in life insurance policies, such as: 1. Protection for
the Family
The most important objective of life insurance is to provide financial protection
for the family in case of an unexpected and premature death of its breadwinner.
The purpose is to protect the dependents against the loss of earning power of the
insured through death or disability. Those who have insured their lives for an
adequate sum can live in peace and comfort, free of the gnawing worry of what
would happen to their families in the event of their sudden and premature death.
Life insurance has long been recognized as a necessary and essential element in a
family's total financial program.
2.Regular Savings
Saving is not a physical need, unlike hunger or sleep. Many of us may not save unless
there is compulsion to do so. For such people, life insurance is a compulsory, regular
savings scheme, especially the monthly salary savings schemes.
Even if you do not subscribe to the salary savings scheme, you can issue standing
instructions to your bankers to pay the premium regularly without reference to you.
The element of savings in a life insurance contract should be understood in a proper
perspective. Typically, life insurance is made available on the basis of equated periodical
payments. In the initial years, you tend to pay more compared to the risk factor. Strictly,
speaking, the 'savings' aspect in a life insurance policy should not be compared with other
pure savings media.
3.Tax Benefits
There is a tax rebate under Section 88 on life insurance premium. Many investors,
especially those in higher tax brackets, used to buy life insurance mainly to take
25

26. advantage of these tax benefits. Additional tax benefits are available under Section 80DD
and Section 80CCC applicable to specific schemes. Hence, attractiveness from the tax
angle has come down.
4. Housing Finance
One of the easier ways of acquiring a house property is through a loan under the various
scheme of ICICI pru life, under which a life insurance policy is accepted as a collateral
security. The proceeds of the policy can be adjusted towards the housing loan. To enjoy
this loan facility, many people even go in for additional life insurance. However, with the
advent of HDFC and various other housing finance schemes, you have alternatives to
choose from.
Advantages of Life Insurance
·Protection against risk of untimely death.
·Protection during old age
·Forced savings
·Educational requirements and charity
·Nomination and assignment
·Marketability and suitability for borrowing.
·Loans from the Insurance Company
·Tax benefits
·Protection to wife and children
2.1 IMPORTANCE OF INSURANCE
A) Beneficial to an individual:
1) Insurance provides security and safety. In case of life insurance payment is made when
death occurs or the term of insurance is expired.
26

27. 2.) Insurance affords peace of mind. A sense of security removes all tensions and fears. It
stimulate to more and better work. By means of insurance much of the uncertainty that
centers round the modern life may be eliminated. 3) Insurance eliminates dependency.
The insurance provides adequate amount to the dependents at the early death of the
property owner to pay off the unpaid loan.
4.) Insurance eliminated dependency. In the event of death of the bread winner of the
family or destruction of property, the family suffers a lot. The insurance assists the family
and provides adequate amount at the time of need.
5)Life Insurance encourages saving. Systematic saving is possible because regular
premium are required to be compulsorily paid. Unlike bank deposits the deposited
insurance premiums can not be withdrawn. Life Insurance is the best media of saving.
6)Life Insurance provides profitable investment. The elements of investment i.e. regular
saving capital formation and return of the capital are observed in life insurance. In India
in insurance policies carry the exemption from the income tax and estate duty.
7.) Life Insurance fulfills the needs of a person. The need of a person may be divided into
(I) Family needs, (ii) old age needs, (iii) re-adjustment needs and(iv) special needs
including needs for education, marriage settlement of children etc. (v) clean up funds for
ritual ceremonies, payment of taxes etc. Insurance comes to help for meeting
requirements.
(b) Beneficial to Business:
Insurance has been useful of the business society in more than one way.
(i)It reduces uncertainty of business losses. As a huge number of
properties are employed in commerce and industry equally great risks are
involved in day to day functioning. The owner of the business might foresee
contingencies that would bring great loss. By purchasing a policy he can be
sured of his earnings.
27

28. (ii)Business efficiency is increased with insurance. A businessman gets
free from unnecessary botherations and can devote more care and energy to
maximize his profits.
(iii)Keyman indemnification. Persons having expertise, experience, ability to control the
business are most important for the employers. Death of such persons proves a more
serious loss then that by fire. The compensation to the dependents of such employers
requires adequate provision which can be met by purchasing life policies.
(iv) Addition in credit. The business can obtained loan by pledging the policy as
collateral security for the loan. As the assets are insured therefore, in the event of loss the
compensation can be paid. (v)Business Continuation. The partnership business may be
discontinued at the death of a partner. The insurance policy provide adequate funds at the
time of death therefore, the legal representative can be paid easily. (vi)Employee
Welfare. Provision for welfare for employees can be made by the life insurance in case
of accident or sickness benefit and pensions.
(c) Beneficial to Society:
(i) Wealth of society is protected. Insurance provides loss of human wealth. Loss of
damage of property can also be indemnified by the insurance company.
(ii)Economic growth of the company. As insurance provides protection
against loss of property thus, if any such damage arise the assets can be
replaced without loss of production thus, Economic development of the
country is not effected.
(iii)Accelerate the production growth. Adequate capital from Insurance
company can accelerate production circle in the country. Economic growth
of the country is not only assured but the process of growth is accelerated
which is more essential in a country like India where the population is
increasing very fast.
(iv)Reduction in inflation. The insurance company in the form of premium
get lot of money supply from the public which insurance corporation put
into production thus the money which would have come into circulation
might have gone for productive purposes.
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29. 2.2 TYPES OF PLANS OR POLICIES
On the basis of insurance objective, basic plans offered by insurers can be classified
under three broad categories: Pure insurance products (term plan), pure investment
products (pension plan) and investment-cum-insurance products (endowment, money-
back, whole-life and unit-linked insurance plans). Increasingly, insurers are launching
hybrid variants of these plain-vanilla plans.
1.Term plan
Term plans are the purest from of insurance. These are no-frills policies that cover
only the risk of your dying. In the event of your death during the policy term, your
nominees receive the cover amount—in insurance parlance, the 'sum assured'; you
get no benefits if you survive the policy term. Since the entire premium paid by
you ---the cost of buying insurance cover---on term policies goes towards
covering the risk of your life, insurers offer you this cover at the least cost.
2.Endowment plans
While term plans covers just the risk of death, endowment plans also offer some
return on the premium is paid by you. So, if you die during the policy term, your
nominee gets the sum assured plus some returns; if you survive the policy term,
you still get back the sum assured and returns. As much as this "money if you die,
money if you live” philosophy is an enticing proposition, it comes at a price; high
premiums, which drag down the returns from endowment plans, to barely 4-6 per
cent a year. In an endowment plan, you pay premiums for a pre-defined tenure
and sum assured. The premium will depend upon your age, the sum assured, the
plans tenure and the nature of returns. A portion of the premium paid by you is
invested by the insures on your behalf. Another portion goes towards your cover
and a third towards meeting the insurer's administrative expenses, which lowers
the effective yield on your investment in endowment plans.
3.Money back plans
Money back plans are variant of endowment plans, with one basic difference: unlike
endowment plans, where the survival benefits are distributed at the end of the policy
29

30. term, the pay back in money -back plans is staggered through the policy term. Typically,
a part of the sum assured is returned to you at periodic intervals through the policy
tenure.
4.Whole-life plan
The three categories of insurance plans mentioned above provide you life cover for a
defined period, up to a certain age (generally, 70 years), Whole-life plan, on other hand,
provide you cover through your lifetime---the only class of insurance policies to do so.
Typically, whole-life plan are structured such that the policyholder has the option to pay
premium up to a certain age (referred to as the 'maturity age' which is generally 80-100
years) or for a specified period. On reaching maturity age, the insurer gives you the
option to either continue with the cover through the lifetime (for which no further
premiums will have to be paid) or encash the maturity benefits (sum assured plus
bonuses). Some insurers do give the option to encash the bonus during the term per it
self, which can serve as a useful income stream during your later years, if you so desire.
5.Unit-linked insurance plans
In insurance-cum investment plans of the kind listed above, you have little say in where
your money is invested. Your insurer too is governed by certain investment restrictions: it
can invest just 10 per cent of the premium paid by you in equities; the greater chunk of 90
percent has to be invested in debt paper. While such restrictions are intended to insure
safety of your investment, they also lead to rigidity in investment are rein in your returns
to low single digits. Unit-linked insurance plans get around such restrictions, by giving
you greater control over where your premium is invested.
Think of them as insurance plans that double as mutual funds. The annual premium you
pay on unit-linked plans is linked to the sum assured and the policy tenure. You can
switch from one plan to another free of cost once a year (a nominal amount is charged for
additional switches). So, if you think stocks are going cheap, you can move to the growth
plan; or, if you think stocks are overvalued, you can move your money to the income
plan. You can switch from one plan to another free of cost once a year (a nominal amount
is charged for additional switches). So, if you think stocks are going cheap, you can move
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31. to the growth plan; or, if you think stocks are overvalued, you can move your money to
the income plan.
6.Pension plan
Pension plan differ from the five types of the insurance plan mentioned above in the
fundamental way; not all of them of life over. So, why we are talking about them here?
Because pension plan feature among the bevy of products offered by insurers and are
pitched as retirement planning a schemes, similar to other investment-based insurance
plans. Pension plans are investment options that let you set up an income stream in your
post-retirement years by routing your savings through an insurer, who invests it on your
behalf for a free. The precise returns you will get depend upon several factors: your age
begin when you investing, the contribution you make, your investment preferences based
on your risk profile, the age at which you want the money to start coming back to you,
and the number of years for which you want the returns.
2.3 FUNCTIONS OF INSURANCE
a) Primary Functions
(I) Certainty of Compensation of Loss: Insurance provides certainty
of payment at the uncertainty of loss. The element of uncertainty is
reduced by better planning and administration. The insurer charges
premium for providing certainty. Life is always full of risks. Life
without risks and uncertainties is unthinkable. Man has always
encountered risks of various types since the inception of
civilization. Minor risks can be ignored but the major risks cannot
be ignored and their avoidance is desirable. One of the ways or
techniques of meeting the risks loss prevention and insurance.
Insurance removes all uncertainties and the assured is given
certainty of payment of loss. The insurer charges premium for
providing the said certainty.
31

32. (ii)Insurance provides protection: The risk will occur or not, when will
occur, how much loss will be there? There are uncertainties of happenings of
time and amount of loss. The main function of the insurance is to provide
protection against the probable chances of loss. The insurance cannot check the
happening of risk. The insurer gives certainty of payment of loss to the assured by
charging premium.
(iii)Risk sharing: Risk is uncertain and therefore, the arising from the risk is also
uncertain. All business concerns face the problem of risk and if the concern is big enough
the handling of risk become a specialized function. Risk and insurance are interwoven
with each other. Insurance, as a device is the outcome of the existence of various risks in
our day to day life. It does not eliminate risks but it reduce the financial loss caused by
risks. Insurance speeds the whole loss over the large number of persons who are exposed
by a particular risk.
(b) Secondary Function
(I) Prevention of loss: Prevention is always better than cure. Prevention of loss is by far
the best solution to the problem of risk. It is the most effective and cheapest method to
avoid the unfortunate consequences. By having the fire resistant construction, observing
safety instructions, installation of automatic sparker system etc. fore can be prevented.
Similarly better roads, better lights and better traffic regulations automobile accidents can
be prolonged. But some times prevention of protection is not always possible and
effective. When prevention fails other methods must be adopted. The insurance joins
hands with those institutions which are actively engaged in preventing the losses of the
society. Reduction in loss causes lesser payment to the assured and so more saving is
possible which will assist in reducing the premium. Lesser premium invites more
business and more business in its turn results in lesser share to the assured. Reduced
premiums stimulate more business and more and better protection to the insured
(ii)It provides capital: It provides capital to the society. For planned
development of a country there is great need for huge amount of capital. The
accumulated funds are invested in providing proper infrastructure and in
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33. investing in productive channel. Now a day, the insurance companies are
rendering positive help in the development of trade, commerce and
industries of a country through different scheme of investment. A country's
natural resources can be exploited with long term and huge amount of
investment by the insurance companies.
(iii)Adequate Financial cover: The need of insurance is largely felt to give
a cover to the rural areas and to the socially and economically backward
classes with a view to reach all insurable person in the country and provide
them adequate financial cover against death at a reasonable cost.
(iv)Mobilization of Savings: In insurance the savings of masses is collected
by insurance corporations.
(v)Investment: When funds are invested the interest of the community is kept in mind.
2.4 CONTRACT OF INSURANCE
1. Life Insurance can be defined as a contract, where for stipulated considerations called
the premium the insurer agrees to pay the insured or a beneficiary, a defined amount upon
the occurrence of death or some other specified event.
2. A contract of insurance is a contract of utmost good faith, technically known as
'Ubermiea fides'. The doctrine of disclosing all material facts is embodied in this
important principle, which applies to all forms of insurance.
3. The Proposer, who is one of the parties of the contract, is presumed to have means of
knowledge, which are not accessible to the Company, who is the other party to contract.
Therefore, the Proposer is bound to tell the insurer everything, which might affect the
judgments of the insurer, no matter how unimportant it may seem to him. In all the
contracts of insurance, the Proposer is bound to make full disclosure of all material facts
and not merely those, which he thinks material.
4. Misrepresentation, non-disclosure or fraud in any document leading to the acceptance
of the risk automatically discharges the Company from all liability under the contract the
client loses out.
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34. Insurable Interest
·An Insurable interest is one of the most basic of all requirements in insurance & it
must be met for an insurance contract to be valid.
·The Principle of Indemnity cannot be applied & does not apply to a Life
Insurance contract because of the difficulty of putting a monetary value on the
human life. However, here also Insurable Interest must be present to distinguish
the contract from a mere gamble.
·The Insurable Interest must:
·Be definite
·Be capable of valuation
·Be legally valid & subsisting
·Involve a loss of a legal right
2.5 INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor
R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its
future direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector. The reforms were aimed at
creating a more efficient and competitive financial system suitable for the requirements
of the economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall financial system where it
was necessary to address the need for similar reforms. In 1994, the committee submitted
the report and some of the key recommendations included:
I)STRUCTURE
·Government stake in the insurance Companies to be brought down to
50%.
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35. ·Government should take over the holdings of GIC and its subsidiaries so
that these subsidiaries can act as independent corporations.
·All the insurance companies should be given greater freedom to operate.
II)COMPETITION
>Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the sector.
·No Company should deal in both Life and General Insurance through a
single entity.
·Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.
·Postal Life Insurance should be allowed to operate in the rural market.
·Only one State Level Life Insurance Company should be allowed to
operate in each state.
III)REGULATORY BODY
·The Insurance Act should be changed.
·An Insurance Regulatory body should be set up.
·Controller of Insurance- a part of the Finance Ministry- should be made
independent
IV)INVESTMENTS
·Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%.
·GIC and its subsidiaries are not to hold more than 5% in any company
(there current holdings to be brought down to this level over a period of
time)
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36. V)CUSTOMER SERVICE
·LIC should pay interest on delays in payments beyond 30 days.
·Insurance companies must be encouraged to set up unit linked pension
plans.
> Computerization of operations and updating of technology to be carried out
in the insurance industry.
The committee emphasized that in order to improve the customer services and increase
the coverage of insurance policies, industry should be opened up to competition. But at
the same time, the committee felt the need to exercise caution as any failure on the part of
new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the minimum
capital requirement of Rs.100 crores. The committee felt the need to provide greater
autonomy to insurance companies in order to improve their performance and enable them
to act as independent companies with economic motives. For this purpose, it had
proposed setting up an independent regulatory body
2.6 INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY.
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies. Since being set up as an independent statutory
body the IRDA has put in a framework of globally compatible regulations. The other
decision taken simultaneously to provide the supporting systems to the insurance sector
and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents. The approval of
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37. institutions for imparting training to agents has also ensured that the insurance companies
would have a trained workforce of insurance agents in place to sell their products which
are expected to be introduced by early next year. Since being set up as an independent
statutory body the IRDA has put in a framework of globally compatible regulations. In
the private sector 151ife insurance and 15 non-life insurance companies have been
registered.
2.7 ENTRY OF PRIVATE PLAYERS
The introduction of private players in the industry has added to the colors in the dull
industry. The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LlC. Since the advent of the
private players in the market the industry has seen new and innovative steps taken by the
players in this sector. The new players have improved the service quality of the
insurance. The following companies are present in the Life Insurance Industry in India.
·Bajaj Allianz Life Insurance Company Limited.
·Birla Sun Life Insurance Co. Ltd
·HDFC Standard Life Insurance Co. Ltd
·ICICI Prudential Life Insurance Life Insurance Co. Ltd
·ING Vysya Life Insurance Company Pvt. Ltd.
·Life Insurance Corporation. of India
·Max New York Life Insurance Co. Ltd
·Met Life India Insurance Company Pvt. Ltd.
·Kotak Mahindra Old Mutual Life Insurance Limited
·SBI Life Insurance Co. Ltd
·Tata AIG Life Insurance Company Limited
·Reliance Life Insurance Company Limited.
·Aviva Life Insurance Co. India Pvt. Ltd.
·Sahara India Life Insurance Co, Ltd.
37

38. ·Shriram Life Insurance Co, Ltd.
·Bharti AXA Life Insurance Company Ltd.
38

39. 3. COMPANY PROFILE
ICICI Prudential Life Insurance Life Insurance Company is a joint venture
between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading
international financial services group headquartered in the United Kingdom. ICICI
Prudential Life Insurance was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).
ICICI Prudential Life Insurance''s equity base stands at Rs. 675 crore with ICICI
Bank and Prudential plc holding 55% and 45% stake respectively. In the quarter ended
June 30, 2004, the company issued over 100,000 policies, for a total sum assured of over
Rs 3,753 crore and had a new business premium income of Rs. 242 crore. Today the
company is the #1 private life insurers in the country.
3.1 GROWTH PATTERN
ICICI Prudential Life Insurance has one of the largest distribution networks amongst
private life insurers in India, having commenced operations in 62 cities and towns in
India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad,
Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar, Chandigarh, Chennai,
Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Gwalior, Hyderabad, Hubli, Indore,
Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata,
39

40. Kolhapur, Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore,
Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot,
Ranchi, Rourkela, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur,
Vadodara, Vashi, Vijayawada and Vizag.
The company has ten bancassurance tie-ups, having agreements with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, as well as some co-
operative banks and corporate agents. It has also tied up with organizations like Dhan for
distribution of Salaam Zindagi, a policy for the socially and economically
underprivileged sections of society.
ICICI Prudential Life Insurance has recruited and trained over 36,000 insurance agents to
interface with and advice customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.
ICICI Pru in the News
·ICICI Pru has 40% of private life insurance market
The Economic Times: March 1, 2004
·Prudential seeks to replicate ICICI Pru success
The Economic Times: March 13, 2004
·Best Life Insurer Award
Outlook Money: March 15, 2004
·ICICI Prudential Life Insurance Life hikes capital to Rs 675 cr
The Economic Times: March 17, 2004
40

41. ·ICICI Pru tops premium income chart
Business Standard: April 15, 2004
3.2 ORGANIZATIONAL STRUCTURE
Board of Directors
The ICICI Prudential Life Insurance Life Insurance Company Limited Board comprises
reputed people from the finance industry both from India and abroad.
Mr. Ajay Srinivasan
Ms. Shikha Sharma
Mr. N. S kannan.
Mr. K. S. Mehta
Mr. Dadi Engineer
Mr. Pradip P. Shah
Dr. (Mrs.) Swati A. Piramal
Mr. Pankaj Razdan
Management Team
Ms. Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Customer Service and Operations
41

42. Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Strategy
3.3 STRUCTURE AND GROWTH OF INVESTMENT
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management
Company, which has today emerged as one of the leading mutual funds in India. The two
companies bring together two of the strongest financial service brands in Asia, known for
their professionalism, excellent quality of service and long term commitment to YOU.
Riding on the success of this relationship, the two companies joined hands once more in
2000, to form ICICI Prudential Life Insurance Life Insurance, with a commitment to
provide leading-edge life insurance solutions.
ICICI Bank has 45% stake in the company, and Prudential plc has 55%.
ICICI Bank
ICICI Bank (NYSE:IBN) is India''s second largest bank with an asset base of Rs.
106812 crore. ICICI Bank provides a broad spectrum of financial services to individuals
and companies. This includes mortgages, car and personal loans, credit and debit cards,
corporate and agricultural finance. The Bank services a growing customer base of more
than 7 million customer accounts and 5 million bondholders’ accounts through a multi-
channel access network. This includes about 450 branches and extension counters, 1675
ATMs, call centre and Internet banking (www.icicibank.com). ICICI Bank posted a net
profit of Rs.1, 206 crore for the year ended March 31, 2003. ICICI Bank is the only
Indian company to be rated above the country rating by the international rating agency
Moody''s and the only Indian company to be awarded an investment grade international
credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all leading
Indian rating agencies.
42

43. Prudential plc
Established in 1848, Prudential plc is a leading international financial services company
in the UK, with around US$250 billion funds under management and more than 16
million customers worldwide. Prudential has brought to market an integrated range of
financial services products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia, Prudential is UK''s
largest life insurance company with a vast network of 22 life and mutual fund operations
in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has
championed customer-centric products and services, supported by over 60,000 staff and
agents across the region.
Underwriting
Underwriting at ICICI Prudential Life Insurance is designed to ensure that the best lives
are taken in the risk pool and at the same time assist sales in getting more policies.
Underwriting at ICICI Prudential Life Insurance is divided into the following categories:

1.Non-Medical underwriting or jet underwriting
2.Standard Medical underwriting
3.Medical underwriting
4.Female underwriting
Non-Medical Underwriting or Jet Underwriting
Definition:
1.Educated life earning regular income through employment
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44. 2.Professionally qualified life earning regular income through practice
3.Businessmen with gross income of Rs. 2 lakh as proved by ITR for the last
financial year
Maximum age at entry: 45 years
Maximum Premium Ceasing age: 65 years
Minimum service:
Employed with the government defense, PSU’s, Public or Private Ltd. Co.’s only.
Employees of partnership firms and proprietorship firms will not qualify.
Qualifying Documents:
For Employed: -
1.Salary certificate / slip (authentication by employer not necessary)
2.Appointment letter given by employer
3.Tax returns for last one year (last financial year)
4.Form 16
For Professionals: -
1.Copy of degree certificate signed by the life assured
2.self declaration by professional on his printed letter head mentioning the
year and place of obtaining the professional degree and years of practice
3.Tax returns for last 1 year (last financial year end)
For Businessmen: -
1.Tax returns for last 1 year (last financial year end) showing income above 2
lakhs
Plans allowed: All plans other than Lifeguard series
Riders Allowed: All
Maximum limit for eligible plan SA+ Rider SA (duly rated up but not including non-
medical plans)
44

45. 18 to 35 years: Rs. 10 lakhs death risk
36 to 45 years: Rs. 5 lakhs death risk
Standard Medical Underwriting
Cases that do not fall under jet i.e., non medical – such cases go through medical. The
simplest medical examination is called as SME- Standard medical examination and a
majority or policies sold fall under this category.

Medical underwriting
For cases that have high sum assure and high ages or the underwriter feels that their
needs to be more security before issuance-certain medical tests are conducted
Female underwriting
Female underwriting is divided into three groups. Special underwriting norms are
required for female lives because of health profile, pregnancy related issues and the
varied socio-economic profile
3.4 APPLICATION FORM & LOG- IN PROCESS
There are lot of processes & activities that take place while the proposal pack is
converted into the policy. The process that takes place is called the sales process. At the
very outset, it may be said that there are three basic stages, which are as follows: -
The Advisor customer Interface: This is the stage where after the Advisor has offered a
solution using our company’s products, he has the application form filled up by the client.
Along with this, the other documents that comprise the proposal pack are also collected.
The Advisor Branch Interface: In this second stage, the Advisor submit the proposal to
the branch office of the company, where after checking for the completeness of the
45

46. proposal pack, the acknowledgement slip is handed over to the advisor, along with the
medical slips.
Business process: Here we are referring to the actual processing of the applications. This
would happens once more as one of the three processes –
1.Process for Jet Cases
2.Process for Standard Medical cases
3.Process for Medical cases
Advisor confidential Report:
Here are the guidelines to be followed while filling up the Advisor Confidential Report –
a.Do fill up the information on the identity of life Assured
b.Mention the purpose of insurance for client
c.Provide details as available on the occupation of life assured
d.Do mention his relation with the life assured or proposer
e.Mention about income & assets details
f.Details about other insurance policies would be disclosed
g.The general risk factors would help us to know if there are some
hobbies or financial or social position or personal habits that would
impact the risk profile of the life to be assured.
Proposal Pack:
Here are the documents that comprises a proposal pack –
Completed application form.
Proof of age
Computer generated Quotation Slip, which is included in proposal pack
Benefit illustration of the products
First Premium Deposit cheque, / Demand draft / bank pay order.
Ensure that the application no. is written behind the cheque, DD
Income Proof
Advisor’s confidential Report
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47. Client Confidential Report
Application form:
·The client should countersign all cuttings, overwriting
·All the fields in the application form should be filled
·Ensure that the application form is filled with same colour ink
Age proof (standard)
Date of birth / name match with that on form
If the life assured is married woman, a marriage certificate or maiden name
declaration should be disclosed
The information provided in the age proof should be legible.
Age proof (Non-standard)
Date of birth / name does not match with that on form
Document provided is not legible
Document provided is not valid
The death risk exceeds Rs. 3 lakh
The cover ceasing age for the person is more than 60 years.
Quotation slip
1.Details on the computerized quotation slip does not match with those mentioned on
the Application form
2.For Non –Standard Age proof, extra premium charged not included in the Quotation
slip
Payments details
1.The first premium amount is lesser than Rs. 800
2.For monthly mode of premium payment, the cheque is enclosed for one month
47

48. 3.Unacceptable if third party issued cheque
4.For monthly mode of payment, the ECS form is not attached
Other Documents
1.Jet documents not attested by life assured
2.In case of student life, copy of recent ID card/ mark sheet not enclosed.
3.Income proof not enclosed as per requirements.
Certain Pointers
The advisor must not accept cash payments from the client. Cash will be accepted
only by sales officer at the branch.
See that the form has been filled in the capitals and in legible handwriting & dark
ink
The application number should be written behind the cheque
Take the appointment with the doctor as per the doctor list on the behalf of the client
and inform as to what medical test he/ she will need to undergo
Give to the client both the copies of Medical examination slip.
The advisor code should be mentioned on the Application form.
3.5 PERFORMANCE & PRODUCTS OF ICICI PRUDENTIAL LIFE
INSURANCE
Insurance Solutions for Individuals
ICICI Prudential Life Insurance Life Insurance offers a range of innovative, customer-
centric products that meet the needs of customers at every life stage. Its 19 products can
be enhanced with up to 6 riders, to create a customized solution for each policyholder.
Savings Solutions
48

49. SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of
protection.
CashPlus is a transparent, feature-packed savings plan that offers 3 levels of
protection as well as liquidity options.
Save''n''Protect is a traditional endowment savings plan that offers life
protection along with adequate returns.
CashBak is an anticipated endowment policy ideal for meeting milestone
expenses like a child''s marriage, expenses for a child''s higher education or
purchase of an asset.
Protection Solutions
LifeGuard is a protection plan, which offers life cover at very low cost. It is
available in 3 options - level term assurance, level term assurance with return of
premium and single premium.
Child Plans
SmartKid education plans provide guaranteed educational benefits to a child
along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child''s life.
SmartKid plans are also available in unit-linked form - both single premium and
regular premium.
Market-linked Solutions
LifeLink II is a single premium Market Linked Insurance Plan which combines
life insurance cover with the opportunity to stay invested in the stock market.
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50. LifeTime II offers customers the flexibility and control to customize the policy to
meet the changing needs at different life stages. It offers 4 fund options -
Preserver, Protector, Balancer and Maximiser.
Premier Life is a limited premium paying plan that offers customers life
insurance cover till the age of 75.
Retirement Solutions
ForeverLife is a retirement product targeted at individuals in their thirties.
SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.
Market-linked retirement products
LifeTime PensionII is a regular premium market-linked pension plan
LifeLink Pension II is a single premium market-linked pension plan.
ICICI Prudential Life Insurance also launched ''Salaam Zindagi'', a social sector group
insurance policy targeted at the economically underprivileged sections of the society.
Group Insurance Solutions
ICICI Prudential Life Insurance also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru''s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The plan
can also be customized to structure schemes that can provide benefits beyond the
statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each member
of the group. Employees have the option of choosing from various annuity
50

51. options or opting for a partial commutation of the annuity at the time of
retirement.
ICICI Pru Group Term Plan: ICICI Pru''s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the policy is
paid to the beneficiary nominated by the member on his/her death.
TERMINOLOGIES
1.DB: Death benefit: Benefit paid in a life insurance policy or an annuity plan with
live cover in the event of the life assured passing away during the term
2.LA: Life assured: Person who is insured under the plan.
3.SA: Sum Assured: Amount of money for which the insurance is taken.
4.VB: Vested Bonus: Bonuses that have accrued over the term of the plan in with
profits plans.
5.PP: Purchase Price: The accumulation of the money in a deferred annuity plan.
6.GA: Guaranteed Additions: Guaranteed return that the insurer adds to the sum
assured.
7.Prospect: Individual that has the potential to purchase a life insurance policy –i.e.
age, health and money.
8.Prosper: The person who buys the policy-prosper and life assured can be the same
person or different-but should fulfill the principle of insurable interest.
9.Annuitant: The policyholder who has pension / annuity plan.
10.Nominee: The custodian to the claim-may or may not be the rightful owner to the
claim money.
11.Claimant: The person who makes the claim.
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52. 12.Beneficiary: The rightful successor to the claim.
3.6 DIFFERENT PRODUCTS
SAVE ‘N’ PROTECT
Save‘n’protect is a with profits endowment plan with FREE extended life cover.
The prospect has to choose the term & a sum assured for this plan. The plan provides
plan cover during the term of the plan. After the term is over, on maturity the
policyholder is paid the sum assured (SA) along with the bonuses that have accrued on
the policy.
After maturity the policyholder is provided with free cover for 50% of the basic sum
assured that have been taken for next 5 years. Thus this plan is of a great advantage when
it comes to providing protection. The unique benefits provided is known as Extended Life
Cover (ELC)
GENERAL FEATURES
Surrender: The plan can be surrendered after three policy years has been completed.
Loans: Are available on the policy and can be taken after the policy acquires the
surrender value. Rate of interest changed will depend upon the interest rate as of that
time.
Paid-up: The policy can acquire a paid up value after a period of three years.
Tax benefits: The plan carries the Sec 88 on the premium paid and Sec 10(10) d benefit
on death and maturity claim. The tax benefits are subjects to tax laws and are not an
integral features of Save’n’ Protect.
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53. SAVE’N’PROTECT AT A GLANCE
Minimum sum assured Rs 50,000
Maximum sum assured Rs 1,00,00,000
Minimum Premium Yearly- Rs 6,000
Half yearly-Rs 3,000
Monthly- Rs 500
Minimum age at entry 0 Years
Maximum age at entry 60 Years
Minimum maturity age 18 Years
Maximum maturity age 70 Years
Minimum term 10 Years
Maximum term 30 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequenciesYearly, half –Yearly, & monthly.
Premium payment period Entire term of the plan
Benefit coverage periodEntire term of the policy+ 5 Years
after maturity(50%of sum assured
under ELC )
Death benefit ---------
Age<7years Premiums paid will be refunded.
Age>7years ----------
ELC period 50% of sum assured in case the
policy holder dies during the 5
Years Extended Term.
Maturity benefits S.A +G.A @ 3.5% compounded
annually (for the first 4 Years)
+V.B(if any & after 4 Years).
Surrender/Paid up After 3 full years premiums have
been paid.
Loans Allowed after the surrender value
period.
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54. CASH BAK
CashBak is with profits anticipated endowment plan. This plan provides liquidity at the
regular intervals of time and also help in saving money.
General features
Surrender: The plan can be surrendered after three policy years have been completed.
Loans: The Company in CashBak provides no loans as regular payouts are available to
policyholders
Paid-up: The policy can acquire a paid-up value after a period of three years.
Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10) d benefit
on death and maturity claim. The tax benefits are subject to tax laws and are not an
integral feature of CashBak.
Target market
1. Young people of the age group 20-30 years who have just started a
career and family.
54

55. 2. Income group of minimum Rs 10,000 per month.
3. Middle-aged professionals, service holders and businessmen.
Minimum sum assured Rs 75,000
Maximum sum assured Rs 1,00,00,000
Minimum Premium Yearly- Rs 6,000
Half yearly-Rs 3,000
Monthly- Rs 500
Minimum age at entry 16 Years
Maximum age at entry 55 Years
Minimum maturity age Not Applicable
Maximum maturity age 70 Years
Minimum term 15 Years
Maximum term 20 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequencies Yearly, half –Yearly, & monthly.
Premium payment period Entire term of the plan
Benefit coverage period Entire term of the policy.
Death benefit during the term of the
policy
[email protected]%+Vested bonus (if any)
Maturity benefits 50% of Sum assured @ 3.5%G.A compounded
annually (for the first 4 Years)+V.B (if any & after 4
Years).
Surrender/Paid up After 3 full years premiums have been paid.
Loans No Loans
Riders Allowed Critical Illness Benefit Rider (CIBR)
Major Surgical Assistance Rider (MSAR)
Accident & Disability Benefit Rider (ADBR)
Accident Benefit Rider)
55

56. CASHBAK AT A GLANCE
LIFE GUARD
Life Guard is the term insurance solutions from ICICI Prudential Life Insurance. These
plans provide with optimum financial protection in case death. These plans are extremely
reasonable and are so cost effective that you just can’t afford not to have one.
In this group of term insurance solutions there are three variants:
1.LifeGuard – Return of Premium (ROP)
2.LifeGuard – Without Return of Premium (WROP)
3.LifeGuard – Singe Premium (SP)
Life Guard – ROP
In this variant the premiums that are paid by the policyholder are returned at the end of
the term i.e., on maturity to the policyholder.
Thus this plan serves to provide life protection and at the end of term the money paid
which accumulates to be a substantial amount is received on maturity.
Moreover, this plan provides with the facility of FREE Extended Life Cover after
maturity – which adds to the protection that LifeGuard ROP so excellently provides.
General features
Surrender: The plan can be surrendered after three policy years have been completed.
Loans: No loans are available
Paid-up: The policy can acquire a paid up value after a period of three years.
Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10) d benefit
on death and maturity claim. The tax benefits are subject to tax laws and are not an
integral feature of LifeGuard ROP
56

57. LIFEGUARD-ROP AT A GLANCE
57

58. Minimum sum assured Rs 1,00,000
Maximum sum assured Rs 1,00,00,000
Minimum Premium Yearly- Rs 6,000
Half yearly-Rs 3,000
Monthly- Rs 500
Minimum age at entry 18 Years
Maximum age at entry 50 Years
Maximum maturity age 65Years
Minimum term 5 Years
Maximum term 25 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequenciesYearly, half –Yearly, & monthly.
Premium payment period Entire term of the plan
Benefit coverage periodTerm of The policy
Death benefit The entire Sum assured
Maturity Benefit Sum of Premiums paid & FREE ELC
for 50% OF the SA
For next 5 Years.
Riders Allowed Accident & Disability Benefit Rider
(ADBR)
Accident Benefit Rider (ABR)
Waiver of Premium rider(WOPR)
Surrender/Paid up After 3 full years premiums have
been paid.
Loans No Loans
Remarks Minimum annual premium Needs to
be Rs 2,400
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59. LIFEGUARD-WROP
This is the most cost effective policy to have life insurance. This plan Provides Life
protection in the most effective way & it is as inexpensive as your daily newspaper.
For a healthy 30-Years old Male, SA of Rs 1 lakh & premium paid Yearly, the premium
on LifeGuard WROP would be Rs 0.88 per Day for a period of 5 years.
Features of LifeGuardWROP
Features of WROP are in many ways similar-however the features that differentiate it
from LifeGuard ROP are mentioned here for your understanding:
Death Benefit
The beneficiary/nominee gets 100% of the sum assured in case of the death of the
policyholder.
There is no ELC in LifeGuard WROP
Maturity Benefit
NO maturity Benefit
Target Market:
1.Key man Insurance
2.Businessmen & Individuals that have liabilities.
3.People who are looking for pure protection.
59

60. LIFEGUARD-WROP AT A GLANCE
Minimum sum assured Rs 1,00,000
Maximum sum assured Rs 1,00,00,000
Minimum age at entry 18 Years
Maximum age at entry 50 Years
Maximum maturity age 65 Years
Minimum term 5Years
Maximum term 25 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequenciesYearly, half –Yearly, & monthly.
Premium payment period Entire term of the plan
Benefit coverage period Entire term of the policy
Death benefit The entire sum assured
Maturity benefits No Benefit
Surrender/Paid up After 3 full years premiums have been
paid.
Loans No Loans
Riders Allowed Accident & Disability Benefit Rider
(ADBR)
Accident Benefit Rider (ABR)
Waiver of Premium Rider (WOPR)
LIFEGUARD-SP
LifeGuard Single Premium is another term product that offers pure protection at lowest
possible cost.
60

61. This plan absolves the policyholder from the commitment of paying regular premiums &
ensures that the protection continues without any hindrance.
The concept of this variant is as same as the rest. The product at a glance will help you in
understanding the plan.
Target Market
1.People who do not prefer long term commitments
2.People going for liabilities like housing loan or any sort of liability.
3.Young professionals that have an earning but are not too sure about it in the
future.
4.Students who are going to study abroad
5.People who are going on short term or middle term assignments abroad.
LIFEGUARD-SP AT A GLANCE
61

62. Minimum sum assured Rs 2,00,000
Maximum sum assured Rs 10,00,000
Minimum age at entry 18 Years
Maximum age at entry 50 Years
Maximum maturity age 65 Years
Minimum term 5Years
Maximum term 15 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequencies Single Premium
Benefit coverage period Term of the policy
Death benefit The entire sum assured
Maturity benefits No Benefit
Surrender/Paid up NO SURRENDER VALUE
Loans NO LOANS
Riders Allowed NO RIDERS
62

63. SMART KID
Smart Kid is with profits anticipated endowment plan that helps parents in creating an
asset through which they can plan for their children’s future.
This plan insures the life of the parent and makes the child the beneficiary-therefore
ensuring that the future if the child is secure-because when you are a parent you cant
leave anything to change-can you?
General Features
Surrender: The plan can be surrendered after three policy years have been completed.
Loans: The Company in Smart Kid provides no loans as regular payouts are available to
policyholders
Paid-up: The policy can acquire a paid-up value after a period of three years.
Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10)d benefit on
death and maturity claim. The tax benefits are subject to tax laws and are not an integral
feature of Smart Kid
Target Market:
1.Young couples with new born baby or children below 12 Years of age.
2. Income group of minimum Rs 10,000 per month.
3. Ideal age group: 30-45 years.
4.Professionals, service holders & businessmen.
63

64. SMART KID AT A GLANCE
FOREVERLIFE
Forever Life is with life cover. The world in which we live today-the life expectancy is
increasing however the earning period is constantly reducing.
Minimum sum assured Rs 1,00,000
Maximum sum assured Rs 30,00,000
Age at entry for parent 20 Years to 60 Years
Age at entry (child) 0-12 Years
Maturity age 22 Years-25 Years
Minimum term 10Years
Maximum term 25 Years
Premium payment frequencies Regular premium plan with Yearly,
half-yearly, monthly mode of
payments
Death benefit Sum Assured paid immediately +
Wop + Periodic benefits continue as
it is
Maturity benefits Two payout structures are there
Surrender/Paid up After 3 years of premiums paid
Loans NO LOANS
Riders Allowed ADBR & Income benefit rider
64

65. This means that we will live longer but earn for a shorter period therefore we need to
make our money work for us. And the earlier we put the money that we earn towards our
retirement fund-the better will be our retirement fund and thus a better retired life.
Forever Life is a retirement solution that assists in meeting with that need in a disciplined
planner.
General Features
Surrender: The plan can be surrendered after three policy years have been completed.
Loans: The Company in Forever Life provides no loans.
Paid-up: The policy can acquire a paid-up value after a period of three years.
Tax benefits: The plan carries the sec 88 ccc on the premium paid. Death claims are
exempted from tax under sec10 (10)d. Annuity received is taxable at par with income
Target Market

1.Young People in the age group of 25-30
2.Monthly income Rs 10,000 & above
3.Salaried individuals in private sector
4.Businessmen & Traders
ANNUITY:
In this plan the annuitant pays a contribution for a term specified which is called the
deferment period and post that term i.e. on Vesting, annuitant get an annuity. He can
choose any of the 5 annuity types that plan provides. This annuity
65

66. Continues till the time the annuitant lives. During the deferment period ForeeverLife
provides with life protection – thus this plan provides both life insurance & retirement
planning benefits.
Annuity Options
1.Life Annuity: This annuity provides an annuity till the time the annuitant lives.
Once the annuitant passes away the contract is over & nothing is payable. This is
suitable for an annuitant who does not have any dependents. This annuity type will
disburse the maximum amount as an annuity.
2. Life Annuity with return of purchase price: Annuity is paid till the time the
annuitant survives & after the demise the purchase price (as on vesting) is given to
the nominee. Therefore this annuity type can not provide only annuity but also
leave a legacy for the family
3. Joint Life Annuity, Last survivor annuity: Annuity is paid to the annuitant and
after the annuitant passes away & the spouse survives, the same annuity will be
disbursed to the spouse. On the death of spouse the annuity will stop & nothing is
payable.
4.Joint Life Annuity, Last survivor annuity with return of purchase price:
Annuitant is paid to the annuitant & after the annuitant passes away & the spouse
survives, the same annuity will be disbursed to the spouse. On the demise of the
spouse the purchase price (as on vesting) is given as a claim to the nominee.
Therefore this annuity type can not only provide an annuity but also leave a legacy
for the family.
5. Life Annuity guaranteed for 5,10,15 years & life thereafter: In this annuity
type the annuitant can choose a term of 5,10 or 15 Years & during the term the
annuity will continue to be disbursed irrespective of the fact whether the annuity is
alive or not. If the annuitant survives the guaranteed period the same annuity will
continue to be disbursed till the time annuitant survives. After annuitants demise
nothing is payable.
66

67. Annuities can be taken on yearly, half yearly, monthly
basis. Annuity Option once chosen cannot be changed.
Annuities have a 5 or 7 year reset option.
FOREVER LIFE AT A GLANCE

67

68. Minimum sum assured Rs 50,000
Maximum sum assured No Limit
Minimum age at entry 20 Years
Maximum age at entry 60 Years
Maximum maturity age 70Years
Minimum term 5Years
Maximum term 30 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequencies Yearly, half-yearly & monthly
Premium payment period Entire term of the policy
Death benefit The entire sum assured + G.A
+Vested bonus (if any)
Maturity benefits According to Annuity option choose
Surrender/Paid up After three years
Loans NO LOANS
Riders Allowed Accident & Disability Benefit Rider
(ADBR)
Accident Benefit Rider (ABR)
Critical Illness Benefit Rider
(CIBR)
Major Surgical Assistance Rider
(MSAR)
68

69. 4. HUMAN RESOURCE MANAGEMENT OF ICICI
PRUDENTIAL LIFE INSURANCE
1. MODE OF APPOINTMENT :
The appointment to various points shall be made in the following manner:-
BY DIRECT RECRUITMENT:-
a. The qualifications for direct recruitment shall be such as specified in the
staffing pattern.
b. The appointment shall be made according to the merit list drawn at the
time of selection.
c. All appointments except to class-IV services shall be made on the
recommendations of the selection Committee consisting of the
following:-
BY PROMOTION
Appointment by promotion to the next higher post in the respective discipline
in any category shall be made on the basis of ‘Seniority-cum-Merit’ from
amongst the employees working in the lower category having atleast five
years service on the said post in the Life Insurance.
BY TRANSFER:
a. By transfer of a person on deputation from any Department. Of
Government/ ICICI Prudential Life Insurance or any sister Life Insurance.
b. By permanent transfer of services of surplus staff of ICICI Prudential Life
Insurance on the
69

70. terms & conditions as Prescribed by the ICICI Prudential Life Insurance and
adopted by the
Board from time to time subject to the approval of Register.
c. By permanent transfer of an employee of other /ICICI Prudential Life Insurance on his
own request and upon the terms & inditions as prescribed by the ICICI Prudential Life
Insurance and adopted by the board from time to time subject to the approval of
Registrar.
The quta of appointment by direct recruitment and by promotion shall be in
the ratio of 40:60 respectively’ wherever applicable. The appointment under
Rule 1.3 shall be treated against the quota of direct recruitment.
a). The reservation for the members of Scheduled Castes, Scheduled Tribes
and Background classes in recruitments shall be in accordance with the
policy of the Govt. as adopted by the BOD.
b). The Life Insurance may fix Quato for promotion of class IV employees to
class III posta upto 10% of the promotion quota.
2. COMMENCEMENT OF SERVICE:
Services shall be deemed to have commenced from the working day on which
the employee reports for duty. If he reports for the duty in the afternoon’ the
services shall be deemed to have commenced from the following day.
70

71. 3. ATTENDANCE AND LATE COMING:-

No employee shall enter or leave the premises of the Establishment accept by the gate or
gates meant for this purpose.
An employee who is off his duty or has resigned or has been discharged or
declared by the competentMedical Authority to be suffering from any
contagious or infectious disease, shall immediately leave the premoises of the
Etablished and shall not enter any part of it, except with the express
permission of the copetent authority.
All employees shall be liable to be searched both at the time of entry and exit
at the main entrance of the Establishment by an authorized person of the same
sex with due dignity.
If more than one shift is working, the employee shall be liable to be transferred
from one shift to another.
4. SENIORITY:
a). The seniority of an employee under these rules shall be determined in a
particular category of post on the basis of the length of service on that post
provided that in the case of employees appointment by the direct recruitment
which join within the period specified in the order of appointment or within
such period specified by direct recruitment who who join with in the period
specified in the order of appointment or within such period as may from time to
time be extended by the appointing authority, subject to a maximum of one
month from the data of order of appointment, the order of merit dertermined,
shall not be disturbed. Provided further that in the case a candidate is permitted
71

72. to join the service after the expiry of the said period of one month, his seniority
shall be determined from the data he joins the service.
b). A person recruited by promotion from the service of the Life Insurance shall be
senior to the person recruited otherwise if they join on the same data. Provided
that in case of promotion of two or more persons with effect from the same
data their inter-se-seniority shall be determined according to their seniority in
the cadre or postal from which they have been promoted.
c) Seniority of the employees of PDDC/ICICI PRUDENTIAL LIFE INSURANCE upon
the permanent transfer of
their services to the Life Insurance vis-à-vis other employees of Life Insurance, shall
be determined in the following manner:-
(1) An employee who was working in the higher pay scale at the time of
permanent transfer shall rank senior to the employee working in the
lower pay scale on that date.
(2) In case where the pay scale of the post held by an employee in the
PDDC or ICICI Prudential Life Insurance and of the post against which he has
been transferred
in Life Insurance identical, their seniority shall be determined on the basis
of length of services in the same pay scale.
5. POSTING AND TRANSFERES:
Managing Director shall be competent to post/ transfer any employee within the
establishment. He shall also be competent to transfer an employee against any equivalent
post or along with post.
As and when considered necessary in the internet of work and upon request from ICICI
Prudential Life Insurance/Sister Life Insurance’the services of an employee of ?Life
Insurance may be placed on national deputation without payment of deputation allowance
72

73. to any other Life Insurance/ ICICI Prudential Life Insurance for Period upto one year in
the first instance, which can be extended further.
6.DEPUTATION
Any employee of Life Insurancemay be sent on deputation to any State level co-
operative Apex. Institution or Government Undertaking with his consent and
on receipt of writtenrequisation from the concerned Institution/Government
undertaking and with the concurrence of the ICICI Prudential Life Insurance on the
terms &
conditions mutually agreed upon by the leading and borrowing organizations
subject to prior approval of the Registration.
7. JOINING TIME:
Upon transfer of an employee from one station to another the joining time,
exclusive of journey day(s), shall be admissible as under:-
(i) upto distance of 4 kms : No joining time.
(ii) For distance between 41kms: one day
to 100 kms
(iii) Above 100kms : Two day
8.Security
An employee of the Life Insurance Shall furnish such security, Fidelity guarantee,
agreement bond in favour of the Life Insurance as may be decided by board from
time to time.
9. PROVIDENT FUNDS:
Employees of the Life Insurance shall be entitled to the membership of the
Employees Provident Fund and other schemes under the employees Provident
Fund and Misc. Provisions Act’ 1952 irrespective of the pay drawn b him re-
employed persons shall be governed by the terms of their appointment.
10. BONUS:
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74. Employees of the Life Insurance shall b entitled to payment of the Bonus under
the payment of Bonus Act, 1965 as amended or re-enacted from time to time.
11. MEDICAL BENEFITS:
An employee, as and when covered under the PSI Act/Scheme, shall get
medical benefits as provided there in. An employee not covered under the PSI
Act/Scheme shall be entitled to medical benefits as may be decided by the
board from time to time with the concurrence of the ICICI Prudential Life Insurance.
12. ALLOWANCE:
Dearness Allowance, Additional Dearness Allowance, House Rent Allowance, City
Compensatory Allowance, Rural Allowance and Other Compensatory Allowance Shall
be Admissible to the Employees of the Life Insurance as per the Decision of the Board
with the concurrence of the ICICI Prudential Life Insurance and approval of the
Registrar.
13. BENEFITS ADMISSIBLE IN THE EVENT OF DEATH OF AN
EMPLOYEE DURING SERVICE:
In case of death of an employee whilr in the service of
Life Insurance his family members shall be entitled to the following benefits/ facilities at
the rates/scales and on the tearms & conditions as approved by the board from time to
time with the concurrence of ICICI Prudential Life Insurance.
a.Ex-gratia grant.
b.House Rent Allowance.
c.Encashment of P.leave.
d.Priority for employment of window/dependent of deceased employee.
e.Special Ex-gratia grant to the family members of an employee of the
Life Insurance Killed by terrorist action.
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75. 14. TRAINING:
Managing Director may wit the concurrence of Life Insurance employee to attend a
seminar/ workshop/training within the country or abroad in accordance with the
instructions of the Registrar, as may be issued from time to time.
15. LEAVE:
15.1 All the employees of Life Insurance shall be entitled to the following
kinds of leave:-
(i) PRVILEGE LEAVE (LEAVE WITH WAGES :
One day for every 18 days of service (for the purpose of calculation
of days of services,the period of Privilege Leave availed and leave
without wages/ absence shall not be counted).
(ii) CASUAL LEAVE:
12 days per annum.
(iii) SICK LEAVE:
(a)14 days per annum to those mployees ho are not covered by the
ESI ct/Schemes.
(b)7 days per annum to thise employees who are covered by the ESI
Act/Scheme.
16. RESIGNATION:
If a regular/permanent employee intends to leave the service of the
Life Insurance by tendering resignation, he shall have to give one
month’s notice in writing, otherwise, he shall have to deposit on e
month’s notice in writing, otherwise, he shall have to deposit one
month’s salary or salary for the period by which the notice falls short
of one month (for this purpose salary will include basic pay +all other
allowance admissible thereon, experts House Rent/Rural allowance,
Conveyance Allowance and Medical Allowance.)
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76. 24 hours notice shall be required for tendering resignation during
probation period.
The resignation tendered by the employee may be accepted by the a
appointing authority.
17. SUPERANNUATION / RETIREMENT
Every employee of Life Insurance shall be superannuated on the afternoon of the last day
of the month in which he attains the age of 58 years.
Not with standing anything contained in Rule 17.1 above, an employee may be permitted
at his own request to retire room the service of the Life Insurance on attaining the age of
50 years or after 20 years of service at any time by the appointing authority provided
three months notice.
An ything contained in rule 17.1 and 17.2 above , the appointing
authority shall, if it is of the opinion after reviewing the entire service record of an
employee that he is not fit to be retained in the service and that it is in the interest of the
Life Insurance.

18. Major misconducts:
Without prejudice to the generality of the term, “ misconduct”, the following
acts of communion or omission shall, interlaid, constitute specific acts of
Major Misconduct on the part of the employee:
1.Breach or habitual breach of any standing instructions or rules regulations,
conditions of the appointment letter or orders issued by the establishment
from time to time.
2.Acting in any manner prejudicial to the inertest or reputation of the
establishment, disregard of any operation & maintenance.
76

77. 3.Negligence or habitual negligence of duty or laziness or in efficiency or
incompetence or malingering or neglect of work or carelessness in work, poor
or unsatisfactory performance intentionally.
4.bring narcotic, liquor or other intoxicating things in premises or reporting.
5.Doing private or personal work during working hours, engaging in any other
trade, business profession, service of the Establishment without while in the
competent authority.
19. PUNISHMENTS FOR MAJOR MISCONDUCTS:
One or more of the following punishments may be imposed on an employee
who is found guilty of a major misconduct, namely:-
1.Stoppage of one or more annual grade increments of pay with or without
cumulative effect
2.Recovery of damages or the amount of loss suffered by the Establishment on
account of misconduct of the employee.
3.Demotion to the Lower post.
4.Termination of service.
5.Dismissal from service.
20. PUNISHMENTS FOR MINOR MISCONDUCTS:-
One or more of the following punishments may be imposed on an employee
who is found guilty or minor misconduct, namely:-
1.Warning or Censure.
2.Making an adverse entry in his service record.
3.Stoppage of one annual grade increment of pay with or without cumulative
effect for a period of six months.
4.Recovery of loss of goods expressly entrusted to the employee or more for
which he is accountable.
5.Recovery from his pay of the he is accountable, pecuniary loss caused by him
to the establishment by negligence or breach of orders.
6.Suspension without pay or subsistence for a period not exceeding 15 days.
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78. 21. PROCEDURE FOR AWRDING PUNISHMENT FOR ACTS OF
MINOR MISCONDUTS:
Where an allegation of minor misconduct is alleged against an employee, he
shall be called upon to explain his position.
22. PROCEDURE OF ENQUIRY AND PUNISHMENT FOR MAJOR
MISCONDUCTS.
An employee against whom a major misconduct is alleged shall be served with a charge
heet by the competent authority clearly setting forth the imputation of mis conduct and
calling upon the employee to submit his explanation within a period of 7 days, provided
that such time may be extended for a maximum period of 7 days , after the expiry of
initial period of 7 days if suffiecient reasons are advised by the employee for seeking an
extension, for which purpose a written request will have to be made him. In case the
employee be pastedon the notice board of the office establishment and it shall be deemed
to have been served upon the employee for the purpose of these rules.
In case where the employee admits in writing the charge(s) leveled against him, it
shall be open to the competent authority to award one or more of the punishments
provided in these rules without holding any enquiry.
In the case of the explanation submitted by the employee is found to be
satisfactory, the matter will be dropped.
In case the employee fails to submit his explanation within the prescribed time or
extended time allowed to him or where the extended time allowed to him or where the
explanation submitted by him is not found satisfactory, the competent authority shall
appoint a person to hold an enquiry and issue ordered in this regards specifying there in
the names of the Enquiry officers and the Presenting officers.
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79. The accused employee shall be entitled to the reimbursement of actual
rail/bus fare only besides conveys undertaken by him for inspection of relevant records
and attending the enquiry proceedings at a station other than his HQs.
The enquiry officer shall on the conclusion of the enquiry, submit his report in
writing giving his findings with the reasons therefore to the authority.

APPEAL AGAINST PUNISHMENT:
i) An appeal against the orders of the competent authority imposing
punishment, under rules 29 and 30 of these riles shall lie to the
board of directors of the Life Insurance. The board shall constitute a
committee consisting of chairman , nominee of ICICI Prudential Life
Insurance, nominee
o f RCs and nominee of NDDB to examine the appeal on the basis
of records.
ii) An appeal shall be filled within a period of 30 days from the data
on which the appellant receives a copy of the order appealed
against or is deemed to have received.
iii) The appellate authority may after consideration of the case and
on recording sufficient reasons yet aside, reduce, confirm or
enhance the punishment and its decides to enhance the
punishment, the accused employee shall be given an opportunity
to show cause against such enhancement.
23. SUSPENSION:
In a case where it is considered that the employee be suspended pending
enquiry, the competent authority may suspend the employee pending issues of
a charge sheet or subsequent domestic enquiry or till the final orders are
passed on the enquiry case. Where criminal proceeding against an employee in
respect of any offence involving moral turpitude are pending and the
competent authority is satisfied that it is necessary/desirable to place the
79

80. employee under suspension, the competent.
SUBSISTENCE ALLOWANCE DURING SUSPENSION :
1. An employee shall be paid during the period of suspension
subsistence Allowance @ 50 % of the wages to which the
employee was entitled to immediately proceeding the date of such
suspension for the first 90 days of suspension and 75% of such
wages for the remaining period of suspension.
2. The payment of subsistence Allowance to the suspended
employee shall be subject to his processing a certificate every
month about his having not taken up any other employment and
his having remained at the head quarters.
24. SERVICE RECORDS:
The following service reords shall be maintained in respect of an employee of
Life Insurance:-
i) personal File
ii)service book
iii)A.C.R file.
RESIDENTIAL ADDRESS OF EMPLOYE
An employee shall notify to the Life Insurance immediately on
engagement, like details of his residential addresses and thereafter
promptly communicate to the Life Insurance any change in his residential
address.
ANNUAL CONFIDENTIAL REPORTS:
ACRS of employees shall be written on yearly basis (April to march)
in the prescribed format. The entries in the A.C.R of an employee sall
be taken into account while deciding the case of promotion,
80

81. Proficiency step up, pre-mature increment(s) etc. The adverse
remarks in the ACR of an employee, if any ,hall be communicated to
him in writing. The employee to whom adverse remarks are
conveyed may make a representation for review of the adverse
remarks. In this regards the following time schedule shall be
followed:-
1Period of communication of adverse
remarks to the official concerned
Within 30 days of the
receipt from the final
accepting authority.
2.Period for receipt of representation
against adverse remark.
Within thirty days from the
date of receipt of adverse
remarks.
3.Final decision on the representation
on receipt of comments of reporting /
reviewing/ accepting authority
Within 30 days of the
receipt of comments on the
representation from the
reporting/ reviewing/
accepting authority.
NOTE –I No further representation shall lie against the final decision.
NOTE-II The representation against adverse remarks received after the expiry of
the stipulated period shall be rejected straight way.
25. GRIEVANCE /REDRESSAL PROCEDURE:
Any employee having a cause for complaint about his work or working
conditions shall have a right to present a cause for investigation and
consideration within two days of rising of the cause. The procedure for the
redress shall be as follows:-
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82. Stage –I
The employee having a cause for complaint shall in the first place, discuss it with his
immediate supervisor.
Stage –II
If a satisfactory solution of his problem is not bound with six days his discussion of the
complaint, he shall approach his sectional head/ departmental head through his immediate
supervisor.
Stage-III
If the problem is not yet resolved, the aggrieved employee may request for the
consideration of his cause by the Grievance community constituted as under with an
intimation to the Labor-cum conciliation officers of the areas.
82

83. 5. RESEARCH OBJECTIVES
The current research will be aimed at determining the HR Practices and Policies
at ICICI PRUDENTIAL LIFE INSURANCE. The research will be focused on the
following major issues.
a)To study the significance of HR policies.
b)To study the system development at ICICI Prudential Life Insurance
c)To measure the factors related to HR Practices and Policies.
d)To study the employee relation and executive response for Practices and
Policies in ICICI Prudential Life Insurance.
83

84. 6. RESEARCH METHODOLOGY
In order to cope up with the emerging challenges due to tough global competitions, the
way out for this is to produce quality products at reasonable prices. This is possible only
through an organization culture of quality consciousness and enhanced productivity.
Optimal utilization of resources especially the human resources are one sure way of
meeting this objective. That’s why proper induction of an employee is very important.
RESEARCH DESIGN
Research design means a specified framework for controlling the data collection. The
research is of descriptive in nature, which could provide an accurate picture of induction
procedure conducted in the organization. Descriptive research includes surveys and fact-
finding inquiries of different kinds. The research is of Ex post facto nature in which
researcher has no control over the variables. Statistical method lay stress on objectivity
rather than rely on intuition and judgment and average & percentages can easily be
calculated.
The following methodology was adopted in project
 Comprises of understanding the theoretical concepts in general.
Questionnaire study
Analysis of the primary data
Analysis of the secondary data
The statically method needs the collection of data in two forms
1.Primary data
2.Secondary data
1.PRIMARY DATA
The primary data are those, which are collected afresh and for the first time, and thus
happen to be original in character. The data on the required information is collected from
84

85. actual persons using the product/ services. This data is more suited for the objectives of
the project.
2.SECONDARY DATA
The data which have already been collected by someone else or taken from published or
unpublished sources and which have been already been passed through the statistical
process.
MODE OF DATA COLLECTION
The study is based on Secondary data which includes
Secondary Data
Secondary Data will be gathered from books and journals on HR Practices and Policies in
ICICI Prudential Life Insurance.
Sample Plan
Unit:
100 Employees
Universe:
The universe of the study was be ICICI Prudential Life Insurance, Patiala.
Contact Method:
The respondents sampling personally will be prepared to interview 100 employees.
85

86. 7. FINDINGS OF THE STUDY
INDUCTION PROGRAM
Does the company provide induction for new employees ?
GRAPH
The graph shows the %age of companies, which undergo some standard methods of
induction.
oThe graph shows that almost all the companies are following induction practices.
oNear about 93% of the companies follow induction practices while 7 % of them
don’t follow it.
oInduction is although inseparable part for HR practices. Yet there are companies,
which don’t follow a standard procedure of induction but make it just through
personal explanation of working strategy of the dept.
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87. oInduction could be done through Diaries, Manuals or through Company CDs, or
even by standard power point presentations given to the employees to make them
familiar to the policies of the company
Who participates in delivering Induction ?
GRAPH 2
The graph shows the involvement of different departments in delivering
induction.
Most of the companies follow delivery of induction by related departments.
According to the survey approximately 40% of the companies follow induction
practice through related dept., which explains the working of respective dept. to
the employees.
Compared to 40% of induction done by related dept. 35% is been done by HR
dept. and only 25% is performed by all dept.
87

88. Is induction same for all levels or different ?
GRAPH 3
The chart depicts that what level of induction is applied to various levels of
employees.
Most of the companies say that induction process is different for different level of
employees while some says that the induction procedure they follow is same for
all level of employees.
The company may prepare a common induction procedure to explain the policies,
work culture of the company, the benefits the company provide, the basis to be
adopted for transfers and separations, basis for promotions, and a brief history of
the organization, yet the process to be followed for individual working
environment must be different.
88

89. How does the company recognize the need for training ?
GRAPH 4
The graph shows the methods through which the companies identify the need to
provide behavioral training to their employees.
There may be several methods for training among which most commonly adopted
method is reference through supervisor.
According to the survey conducted 67% of the companies take a feed back from
their employees and thus determine need for training.
Although 54% of superiors depends on performance monitoring approach to
decide for providing training to their employees.
And only 20% rely on questionnaire method.
89

90. What type of training is conducted ?
GRAPH 5
The graph shows the type of training provided by various organizations.
Though various types of training methods are adopted which comprises of on the
online training, apprentice training, classroom training, job training, and outdoor
training. But the most commonly adopted method is on the job training, which is
practiced in almost all companies.
Then do the companies prefer the outdoor training, which is, again most adopted
one whereas online training is least.
90

91. What is the Annual budget for training ?
GRAPH 6
The graph shows training budget, which is decided by the companies to be spend
on training of their employees. The companies even send their employees to
outstations.
The budget is decided depending upon the need of the employee and the degree of
skills and knowledge already possessed by the employees and also depending the
need of the organization.
Most of the companies i.e. almost 30-35% of companies keep their budget around
2.5 to 3lac.
Although some organizations have as high as Rs.9 lac assigned as budget for
training.
91

92. What is the module duration for training programme ?
GRAPH 7
The graph depicts the module duration specified for training programs by various
companies.
Most of the companies prefer to go for training for less than 1 week it is mostly
ranging from a minimum of 2 hrs to 2 days and maximum to 6 to 7 days.
Some of the companies even go for a training for 4 weeks, which makes their
employees completely trained about the skills they are lacking in.
The companies even go for job rotation, which help them go for all round
development.
92

93. Does the company provide any profit sharing policy ?
GRAPH 8
The graph shows the profit sharing policies of the organization.
Although there may be various profit sharing methods which may work as
motivational aspect for the employees. It could be through ESOPs, exgratia etc,
yet the most preferred one could be providing bonus to the employees who fall in
to this category as per government rule.
According to the survey 13% of the organizations declare shares for their
employees and 87% prefer to declare bonus time to time.
93

94. Does the organization provide any recreational activities?
GRAPH 9
The graph shows the recreational activities performed by the manufacturing
organizations.
Recreational activities are quite important for maintaining interpersonal relations
among the staff and to develop enthusiasm among the employees. Moreover it’s a
part of welfare activity, which even work as motivational aspect.
The company could conduct many activities, which could gather the company
staff together at a common platform. These activities could be picnics, tours,
outings, parties, functions, get together.
These activities not only enhance the interpersonal relations but also help the
families of the employees interact.
94

95. According to the survey the most preferred activity is get together which
approaches up to appx 100% of the organizations and the least preferred one is
company tours.
95

96. Does the company provide any retirement benefit ?
GRAPH 10
The graph shows retirement benefits been received by the employees .
As per government rule providing provident funds (PF) and gratuity is the rule
thus it is provided by all the organizations.
Apart from these, organizations provide other benefits too. 15% of the
organizations provide age relaxation so that the employees could serve a little
more to the organization and appx 40% provide pensions to retired employees.
96

97. What are the welfare activities taken up by the organizations ?
GRAPH 11
The graph shows the welfare activities taking place in the manufacturing
organizations.
Most of the organizations provide all the major welfare activities to their
employees.
Almost 100% of the companies provide first aid facilities and cafeteria.
Almost 98% of them the organizations provide uniforms to their employees.
Although the maintenance of these uniforms may be taken by either the HR dept.
or the employees by themselves.
Almost 94% of the organizations provide the transportation facility. It may be
company bus, or the company vehicles; in some cases the company provides
traveling allowance.

97

98. Does the organization adopt any on job safety measures ?
GRAPH 12
The graph shows safety measures adopted by various organizations as a part of
their welfare scheme.
Various safety measures, which could be adopted by the organizations, could be
from fire, shock and electricity, safety while handling machinery, and operational
health and safety measures(OH&S facility).
According to the survey almost all the organizations adopt all these safety
measures.
The result is 100% implementation of these practices.
98

99. What appreciation scheme is followed by the organization ?
GRAPH 13
The graph shows the appreciation schemes adopted by organizations to reward the
employees.
The organization may provide perks, promotions, monetary rewards, increments,
incentives or even an appreciation in public matters a lot.
According to the survey the most common, adopted and preferred one is
increments for better work performance, then comes the promotions & monetary
incentives.
Almost 100% of the organizations prefer to go for increments and 94% provide
promotions & monetary incentives.
Least preferred one is public appreciation count to 67%.
99

100. What are various reward & recognition schemes of the organization ?
GRAPH 14
The graph shows the basis to give rewards.
There are various methods to reward an employee for his outstanding
performance. The organization may provide them with paid vacations, additional
pay for additional work, overtime, monetary rewards, perks etc.
According to the survey perks are the most preferred means of rewarding the
employees, then is paying overtime and least preferred is paid vacations.
Perks counts to 67% of the choice, and paid vacations the least to 34%.
100

101. How the organization recognize outstanding performer ?
GRAPH 15
The graph show the basis on which the organizations decide which employee is to
be rewarded .
Although almost all the organizations go for all
oPunctuality
oRegularity
oInitiative
oProductivity
oExtra work
But according to the survey the most preferred basis is punctuality followed by
initiative and productivity.
Punctuality comprises 93% preference in deciding the right candidate for reward
and initiative and productivity aspect counts equal to 67%.
101

102. 8. SUGGESTIONS
As in the competitive world where the need for every organization to prove itself the best
and make an outstanding and remarkable progress is the need, no fact could be left
ignored. Every organization must know the shortcomings and must try to go for building
up the shortcomings. An ethical practice in any organization could only be achieved if the
organization works for the well being of its employees. Every organization must possess
a basic structure and the organization must be capable enough to reward its outstanding
performers and must appreciate the initiative works.
According to the survey been conducted with various HR heads of various organizations
here are few suggestions from their side:
INDUCTION PRACTICES
Induction is must in every organization for all level of employees to make them well
known of the industry they are working in.
The best ways to perform induction may be through
oLectures
oPower point presentations prepared explaining company’s policies.
oThrough SOPs (Standard operating procedures)
oManuals
oDiaries
oBut the most adopted one is through personal induction.
The induction program must follow a proper feed back from employees been put
into the program which is again an ethical practice and is achieved by
102

103. oinduction scheduling
oopinions from supervisors
ofeed back forms.
BEHAVIORAL TRAINING
Behavioral training is boon for any organization.

The organization could provide on the job training, which is quite common and
most adopted. The organization may also go for outdoor training
Job rotation could be preferred which could make the employee skilled in overall
working of an organization.
The organization may provide a basic training for FIRST AID & SAFETY OR
FIRE SAFETY TRAINING.
The organization may have tie ups with the training organizations which could
organize courses and the organization may take up the best course as per
requirements of their staff.
A proper feedback must be taken to grasp the extent the employees have versed
themselves with knowledge.
Proper Feed-back could be taken through
oevaluation
oquestionnaire
ofeed back forms
osubmission of report through trainee
ofeed back through trainers
103

104. MOTIVATIONAL TOOLS
Motivating for work is inseparable to continue productivity. But work when itself serves
as motivation then progress is inevitable. The organization must take great care to
motivate its employees through various methods.
Promotion may be one of the best motivational factors. Promotional basis could
be
owork performance
oqualification
operformance evaluation
oskill enhancements
oinitiative steps taken .
organization may also provide fringe benefits such as
oleave traveling allowance
omedical
ofree transportation
oESI (Employee State Insurance)
oFurnishing scheme
oHouse lease
ohospitalization
WELFARE ACTIVITIES
The organization may adopt welfare policies such as
oTransportation facility
104

105. oCanteen facility with breakfast, lunch and dinner facility along with
refreshments.
oCanteen could be free, subsidized ,paid. But the most preferred one is
through subsidized mode.
oThe organization must also possess first aid facilities for its staff. A well-
versed rehabilitation of injured staff and an on duty doctor or an
ambulance should be always provided.
oThe organization must also possess a grievance handling committee
despite a union to take an action for their problems. It could be a three tier
of four-tier grievance committee.
REWARD AND RECOGNITION SCHEME
Rewarding the best work not only provide the candidate with appreciation but also
provide enthusiasm to do better. A competitive spirit is also developed to perform the
best.
Some of the practices of rewarding the employees practiced in organizations are
oAward after completion of 10 years of service
oCompany’s well furnished housing & hotels for officers
oPaid vacations to foreign countries
oYearly reward scheme
oOverall equipment efficiency reward
oQuality man of the year award
oBest man of the year
oBest kaizen award
oIncrements
105

106. oPromotions
oIncentives
oMonetary rewards
oPublic appreciation.
RECOMMENDATIONS
For all the programs the organization must follow feed back method to understand
the effectiveness of any practice in a better way.
Holistic views of induction should out show both positive and negative aspects of the
organization. Which ultimately let the employee know about both the phases of the
policies adopted by the organization.
Practice of providing a brief presentation of the company and a booklet for rules and
regulations of company must be maintained so that the employee could go through it
when ever required.
Individual should concentrate more while training. When an organization invest on
training of an employee, the purpose of training serves the mutual benefit of both
organization and the employee. Thus, the employee should be more oriented towards
drawing as much benefits as he can. Employees are supposed to understand their role
for particular training program.
Company must maintain training manuals or training charts and training report
submitted by the trainee. This, practice not only keeps a maintained record of the
programs been conducted but also keep the employee known of the knowledge gained
by him which could later be utilized.
A pre- evaluation and post evaluation practice should be followed to understand the
success of training and the training could be then effectively used to fill gaps later.
Continuous training module should be conducted, personality development training
should be provided.
To motivate the employees
106

107. Performance awards could be given every year.
Incentives could be paid.
Salary saving schemes could be provided.
Extra activities such as games and sports, community meetings, recreational
activities, picnics, tours and outings should be planned to improve the interpersonal
relationships.
External welfare activities could also be taken up by the organization such as
oBlood donation camps
oSafety week
oFree eye camps
oFree books for children
oPoster and quotes competition could be organized.
Devotion, belongingness and good team member spirit should be rewarded.
Employees should be encouraged for group efforts and team work.
To avoid worker union for better employee welfare and give suitable welfare
activities from time to time to the employees in house work committee should be
developed to handle the grievance.
Employee’s participation is key issue. Thus, suggestions should always be invited and
maximum efforts should be put up to implement the suggestions.
INITIATIVE SUGGESTIONS
Employee’s family’s involvement in motivating employee is the key element. It
creates a special pressure point.
oDrawing competitions of children could be organized.
oSpecial training for wives could be arranged to teach them what are the
dos and doesn’t.
107

108. oSpecial scholarships could be announced for the children of employees
securing good marks.
Management by objective should be adopted. The practice should be objective to
avoid biasness.
Kaizen award could be given to the implementer of best suggestion.
108

109. BENEFITS
“The new environment in INDIA is an environment of change, a change brought by an
awakening among the people of INDIA who demand a fair deal for themselves and for
their children. This situation constitutes a great challenge for managers. All managers,
whether they are managing business or offices, farms or factories, whether they are called
business executives or civil servants, will have to measure up to this challenge ”.
--Mrs. INDIRA GANDHI
For scientific and systematic execution of all human activities, two essential watchwords
are- administer well and manage well.
Thus focusing the benefits of ethical HR practices are:
INCREASED PRODUCTIVITY HR practices deals with training process
which teach the employees proper handling of resources and the methods to put
their resources to optimum utilization with minimization of losses and minimum
wastage.
EMPLOYEE SATISFACTION HR goes for human resource development
functioning. It looks after the welfare activities of the employees. Take care of
their problems. Thus, an overall care of their health, transportation, meals and
well being is taken. Which ultimately results into employee satisfaction.
INDUSTRIAL PEACE Ethical HR practices contains a well
maintained grievance handling machinery which deals with the internal problems
and provide employees with satisfactory solutions.
109

110. ORGANIZAED WORK PATTERN With the ascent of HR practices the
organization follows the process of departmentation. Which further results to
delegation of work and an organized work pattern.
BETTER INTERACTION Through recreational activities been
organized by the organization ( like parties, picnics, get-together, annual days
celebration). This inculcate team spirit among the employees.

BETTER ADMINISTRATION Through following a fixed and scheduled work
pattern like induction feed-backs, induction scheduling, training feed-backs,
performance appraisal forms etc.
KNOWLEDGE ENHANCEMENT Through trainings ( on the job
training, out-door training etc.)
PARTICIPATION IN MANAGEMENT through suggestions and kaizen
practices.
MORALE ENHANCEMENT Through motivational activities and
reward and recognition schemes.
EMPLOYEE ADVANCEMENT
SYSTEMATIC SCHEDULE
EMPLOYEE CARE
GOOD INTERPERSONAL RELATION
110

111. CONCLUSION
At last I want to say that while recruitment and selection identify acceptable candidate,
the process still continue with induction program for the new employee, we can
further fine tune the fit between the candidate’s qualities and the organization’s
desire. Then to make the employees more skilled behavioral training may be
provided.
It makes the positive impact of any organization, but it needs a lot of money, time,
attention and guidance. It is just like only taking, not giving or taking the starting
benefits and when the time comes for returning back you just quit the job. So it is
not always fruitful.
The employee motivation is needed to be built up through constant attempts of the
organization. The organization may adopt various methods for motivating the employees.
It may be by providing recreational activities such as tours, picnics, family outings,
annual days, sport days, functions, and parties. The organization must consider its
employees as its family members and must provide some profit sharing policy such as
ESOPs , bonus, and shares. the organization may provide fringe benefits.
Welfare activities to be undertaken by the organization may include various facilities
such as uniform for the employees for whom HR department is responsible for its
maintenance and providing it.
Last but not the least rewards are the main motivational activity, which may be monetary
and non-monetary rewards.
At last to conclude, I would like to say that with enthusiasm that it was a great experience
working with many experienced people working at senior positions. Interacting and
spending time with the people rich in learning experience. The people were very
cooperative and helpful and encouraging. It is an experience to be cherished for a long
time.
111

112. It was great of learning so much about HR practices and implementing them. I’m really
thankful for all the senior members who explain me the working strategies and
methodologies of organizations.

LIMITATIONS
VERY TIME CONSUMING in the fast competitive market every body is busy
in performing his /her job. It is really hard for the managers to spare time. So it is
time consuming.
TIME CONSTRAINTS understanding the work culture of any organization in
few weeks is very hard task. For doing project few weeks are not enough.
Managers were very busy so managing time with them was quite difficult.
As the researcher was an outsider so co-ordination with the employees took some
time and it was formal.
HR managers were quite reserved in sharing their company’s policies with an
outsider.
The sample size of study was small.
112

113. REFERENCES
PERSONNEL / HUMAN RESOURCE MANAGEMENT
oDECENZO & ROBBINS
HUMAN RESOURCE MANAGEMENT
oGARY DESSLER
PERSONNEL/ HUMAN RESOURCE MANAGEMENT
oROBERT L MATHIS
oJOHN H. JACKSON
HUMAN RESOURCE MANAGEMENT
oDEEPAK
BHATTACHARYA
http://en.wikipedia.org/wiki/Human_resource_policies
113

114. ANNEXURE
Respected sir/Maam
This questionnaire is to study the “HR POLICIES AND PRACTICES IN
ICICI PRUDENTIAL LIFE INSURANCE”. You are requested to please give few
minutes to fill the questionnaire and provide us with valuable information. All the
information provided by you will be treated as confidential. We will be glad to share the
summary of the survey with you ….
Instructions
You may mark more then one options if relevant.
You are free to put your remarks in every blank provided.
1)Name of the company_______________________________________
2)Complete address__________________________________________
3)Name of HR head__________________________________________
4)E-mail address_____________________________________________
5)Telephone no.______________________________________________
6)Work force of the company____________________________________
7)Turnover rate_______________________________________________
8)does your organization have other manufacturing units in India
(Yes / No)
9)if Yes, how many permanent employees do u have in each
(1)_________________ (2)_________________(3)_____________
INDUCTION PROGRAM
1)Does the company provide induction for new employees (yes/no)
2)What are ways of induction
oDiaries
oManuals
114

115. oBrochures
oCompany cd’s
oAny other, please
specify________________________________
3)who participates in delivering the function?
oHRdepartment
oRelated department
oAll departments
oAny, other please
specify_______________________________
4)Does induction is
oSame for all
oDifferent for different levels
5)Induction related to which areas are
provided____________________
6) What is the duration of induction program `______________________
7) How does the company evaluates the effectiveness of induction
program being conducted
oFeed back method
o0pinion from supervisor
oEmployee satisfaction surveys
oPerformance evaluation
oAny other, please specify__________________
8) Do the organization follow any induction scheduling______________
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116. 9) Any other best induction practices you would like to share __________

__________________________________________________________
BEHAVIORAL TRAINING
1) HOW does the company recognize the need for training?
oThrough questionnaires
oPerformance monitoring
oReference from supervisor
oAbsence in pride
oDefective quality product
oUnsatisfactory promotions
oAny others, please specify_______________________________
_________________________________________________________
2) What type of training is conducted
oOn the job training
oClass room sessions
oOnline training
oApprentice Training
oOutdoor training
oAnyotherpleasespecify___________________________________
_
3)who gives the training
oInternal trainer
116

117. oExternal trainer
oAny other, please specify_______________________________
4)what is the percentage of employee involved in training_________
5)what is the annual budget for training______________________
6)what is the module duration of training_________________________
7)How do you take feedback of training program__________________
____________________________________________________
8) Please provide us any other information to help us understand the
measurement of training effectiveness_____________________________

9) Any best practice in training you would like to
share_______________________________________________________
MOTIVATIONAL TOOLS
1)Does the company provide any recreational activities( you can mark
more than one option in case applicable)
oPicnics
oTours
oFamily outings
oNone
oAny other, please specify _____________________
117

118. 2)Does the company provide any profit sharing policy
oESOP’S
oBonus
oShares
oNone
oIf any other, please specify___________________________
3)Does the company take up initiative for improving interpersonal
relationship
oParties
oFunctions
oGet together
oCommunity meetings
oAny other, please specify
4)does the company provide any retirement benefits
oGratuity
oVRS( voluntary retirement scheme)
oPF (Provident fund)
118

119. oPension
oOld age security
oAny other, please specify_______________
5) What are the promotional basis adopted by the organization
__________________________________________________________

6)what are the fringe benefits provided by an organization____________
___________________________________________________________
_
7) any other motivational initiative you would like to share with
us__________________________________________________________
WELFARE ACTIVITIES
1)Does the company provide any transportation facilities(yes/no)
2) if yes, what type of facilities have been provided___________
____________________________________________________
3)Does the company provide uniform for its employees(yes/no)
4)if yes,
oWho is responsible for providing these uniforms
oWho take care of their maintenanence
5) Does the company has well eastablish cafeteria/canteen(yes/no)
119

120. If yes,
6) what facilities are provided
oLunch
oBreakfast
oDinner
oSnacks
7) Payment Mode
oFree
oSubsidized
oPaid
8) does the company has any special aid facility( you can mark more than
one option if applicable)
oOn duty doctors
oAny collaboration with hospitals
oAmbulance for emergency
oFirst aid kit
oNone
oAny other please
specify_________________________________
9) Does the company adopt any on job safety measures
oFire safety
oElectric/ shock safety
oRadiation safety (if any)
oAny harm while handling the machinery
oNone
oIf any other
pleasespecify_______________________________
__
120

121. 10) what policy do the company has for rehabilitation of
injuredstaff__________________________________________________
11) What are the grievance handling procedures of the organization ______
_____________________________________________________________
12) any other welfare related initiative you would like to share______________
___________________________________________________________________
REWARDS AND RECOGNISATION
1)What appreciation schemes are being followed by your organization
oAppreciate publicly
oIncentives
oIncrements
oPromotions
oAny other please specify,
___________________________________________________________
___________________________________________
2)what are various rewards and recognition schemes for the organization
oAdditional pay for extra work
oPaid vacations
oOvertime
oMonetary rewards
oPerks
oAny other please specify_____________________________
3) How do you recognize outstanding performer
oRegularity
121

122. oPunctuality
oInitiative
oExtra work
oProductivity
oAny other, please specify____________________________________
___________________________________________________________
4)Any other medical benefits provided____________________________
__________________________________________________________
5) Any other recognisational schemes you would like to share_________
___________________________________________________________

THANKS FOR YOUR VALUEABLE HELP!
122