Description
Insurance is the pooling of fortuitous losses by transfer of such risk to insurers, who agreed to provide the pecuniary benefit on their occurance, or to render service connected with risk. It is the transfer of financial responsibility for the risk at the point of occurance and conventionally involves the insurer in a commitment to pay
TABLE OF CONTENTS
PARTICULARS PAGE NUMBERS
1. Executive Summary 01-02
2. Introduction 03-14
3. Need for Insurance 15-22
4. Company rofi!e 23-32
5. "ision-#ission 33-3$
$. roducts 3%-43
%. Stress #ana&ement 44-$1
'. Stress #ana&ement at (or) p!ace $2-'2
*. +indin&s , -na!ysis '3-*5
10. Su&&estions *$-*'
11. .imitations of t/e study **-100
12. Conc!usion 101-102
13. -nnexure 103-10$
14. 0i1!io&rap/y 10%-10'
EXECUTIVE SUMMARY
Insurance is t/e poo!in& of fortuitous !osses 1y transfer of suc/ ris) to insurers2 (/o
a&reed to provide t/e pecuniary 1enefit on t/eir occurance2 or to render service connected (it/
ris). It is t/e transfer of financia! responsi1i!ity for t/e ris) at t/e point of occurance and
conventiona!!y invo!ves t/e insurer in a commitment to pay. 3/e insurance service !ead to
efficient and productive a!!ocation of capita! resources2 faci!itate &ro(t/ of trade and commerce.
4!o1a!i5ation (i!! certain!y increase insurance penetration and a!! professiona!s s/a!! e6uip
t/emse!ves to exp!oit opportunities offered 1y t/is sector.
ICICI 789EN3I-. /as maintained its !ead amon&st t/e private p!ayers of !ife
insurance (it/ a mar)et s/are of a1out 3*:. 3/e 1i&&est ac/ievement is in pension se&ment2
(/ere company introduced a s!e( of products and captured around 23: of t/e tota! pension
mar)et. ICICI rudentia! /ave a customer centric &ro(t/ strate&y and /as ta)en a num1er of
strate&ies a&ainst t/is.
3/e consumers are t/e !ar&est economic &roup in any country and t/e present day
1usiness activities are 1ecause of consumers on!y. 3/us2 consumers are t/e pi!!ars of t/e
economy. 3/e consumers are not on!y t/e /eart of mar)etin& system2 1ut a!so t/e contro!!er of
mar)etin& functions. 0ut if t/e modern mar)etin& system consumers soverei&nty /as 1ecome a
myt/ on account of t/e variety of pro1!ems in t/e process of merc/andisin&. 3/e study of
consumer 1e/avior ena1!es mar)eters to understand and predict consumer 1e/avior in t/e
mar)et p!ace; It a!so promotes understandin& of t/e ro!e t/at consumption p!ays in t/e !ives of
t/e individua!.
3/is &ives me an opportunity to (or) on (it/ t/is endeavor focusin& on t/e study of
<consumer behavior towards the insurance products' (it/ specia! reference to ICICI
789EN3I-.. 3/e primary o1=ective of t/e study is to understand t/e attitude and perception
of t/e respondents to(ards insurance products.
3/e study &ives an insi&/t to t/e insurance industry. It 1rief!y exp!ains a1out t/e /istory
of !ife insurance sector. It a!so contains t/e or&ani5ationa! profi!e of ICICI 789EN3I-.2
statin& a1out its mi!e stones2 vision2 products2 protection2 so!utions2 advertisin& effectiveness and
fina!!y a1out its mar)etin& strate&ies and c/a!!en&es. 3/e study ends up (it/ t/e su&&estions in
order to modify t/e current system for a /i&/er &ro(t/ and pro&ress.
INTRODUCTION
LIFE INSURANCE
.ife insurance is a contract providin& for a payment of a sum of money to t/e
person assured or fai!in& /im to t/e person entit!ed to receive t/e same on t/e /appenin&
of certain event. 8ncertainty of deat/ is in/erent in /uman !ife. Ii is t/is ris)2 (/ic/
&ives rise to t/e necessity for some form of protection a&ainst t/e financia! !oss arisin&
from deat/. Insurance su1stitutes t/is uncertainty 1y certainty. 3/e o1=ective of
insurance is norma!!y to provide>
- +ami!y rotection.
0 rovision for o!d a&e.
INSURANCE INDUSTRY
ORIGIN OF INSURANCE
3/e ori&in of insurance dates 1ac) to t/e 12
t/
century2 t/e ori&in of insurance
appeared first in marine and !and fie!ds. 3/e ideas of insurance (ere made in 0a1y!onia
and India at 6uite an ear!y period; t/e courts of ?ammura1i and #ano reco&ni5ed t/e
provision for s/arin& t/e future !osses. ?o(ever t/ere is no evidence t/at insurance in its
present form (as practiced prior to 12
t/
century. 3racin& t/e /istory of insurance to t/e
present day2 one can easi!y &au&e t/e performance of industry 1ot/ co!!ective!y as an
industry as (e!! as individua!!y 1y t/e companies.
In ear!ier times2 trave!ers 1y sea and !and (ere very muc/ exposed to ris) of
!osin& t/eir vesse!s and merc/andise 1ecause piracy on t/e open seas and /i&/(ay
ro11ery of caravan (ere common. 7eferences to simi!ar practices are a!so found in
<#ana1 9/arma S/astra< (/ic/ contained ru!es for sea from contracts (/ic/ (as
o1served 1y traders. Insurance conceived as met/od of s/arin& of t/e !osses em1odyin&
t/e principa! of co-operation existed in t/e ear!y civi!i5ation.
#any may not 1e a(are t/at t/e !ife insurance industry of India is as o!d as it is in
any ot/er part of t/e (or!d. 3/e first Indian !ife insurance company (as t/e @rienta! .ife
Insurance Company2 (/ic/ (as started in India in 1'1' at Ao!)ata1. - num1er of p!ayers
Bover 250 in !ife and a1out
100 in non-!ifeC main!y (it/ re&iona! focus f!ouris/ed a!! across t/e country.
?o(ever2 t/e 4overnment of India2 concerned 1y t/e unet/ica! standards adopted 1y
some p!ayers a&ainst t/e consumers2 nationa!i5ed t/e industry in t(o p/ases in 1*5$ B!ifeC
and in 1*%2 Bnon-!ifeC. 3/e insurance 1usiness of t/e country (as t/en 1rou&/t under t(o
pu1!ic sector companies2 .ife Insurance Corporation of India B.ICC and 4enera!
Insurance Corporation of India B4ICC.
7eforms (ere initiated (it/ t/e passa&e of Insurance 7e&u!atory and
9eve!opment -ut/ority BI79-C 0i!! in 1***. I79- (as set up as an independent
re&u!atory aut/ority2 (/ic/ /as put in p!ace re&u!ations in !ine (it/ &!o1a! norms. So far
in t/e private sector2 12 !ife insurance companies and * &enera! insurance companies /ave
1een re&istered.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT - 1999.
(I.R.D.A)
3/e o1=ect of t/is act is to provide for t/e esta1!is/ment of an aut/ority to protect
t/e interest of /o!ders of insurance po!icies2 to re&u!ate2 to promote and ensure order!y
&ro(t/ of insurance industries. Insurance 7e&u!atory and 9eve!opment -ut/ority BI79-C
/as sou&/t t/e comments of industry participants to fina!i5e t/e &uide!ines for on!ine
a&ents< trainin& institutes.
3/ese proposed &uide!ines are in addition to its standard instructions and
&uide!ines app!ica1!e for approva!Drene(a! of a&ents< trainin& institutes. 3/e &uide!ines
(ou!d 1e app!ica1!e to a!! t/e on!ine trainin& institutes inc!udin& in-/ouse trainin&
institutes of t/e insurers.
-s per t/e draft &uide!ines2 t/e app!icant s/ou!d under&o at !east 120 /ours
practica! trainin& in !ife or &enera! insurance 1usiness. 3/e composite trainin& s/ou!d 1e
for at !east 1'0 /ours2 (/ere t/e app!icant is see)in& !icense for t/e first time to act as an
insurance a&ent.
3/e duration s/ou!d 1e minimum of 24 days for 120 /ours trainin& and 3$ days
for 1'0 /ours trainin& (it/ a maximum five /ours per day. Statin& t/at no product
trainin&Dmar)et survey s/ou!d 1e inc!uded into t/is 120D1'0 /ours trainin&2 t/e re&u!ator
said revision examination cou!d form part of t/e trainin&.
DUTIES, POWERS AND FUNCTIONS OF AUTHORITY:
•• 3/e po(ers and functions of t/e aut/ority inc!ude re&istration of insurers2
intermediaries and a&ents re&u!ations of terms and conditions of contract of
insurance2 promotin& and re&u!atin& professiona! or&ani5ations connected (it/ t/e
insurance2 monitorin& investment of funds and so!vency mar&in of insurance
companies.
•• 3/e aut/ority is to 1e advised 1y a committee to 1e )no(n as t/e insurance advisory
committee2 (/ic/ s/a!! consists of not more t/an 25 mem1ers inc!udin& ex-officio
mem1ers in t/e insurance sector. 3/e insurance advisory committee is expected to
advice t/e aut/ority on matters re!atin& to ma)in& of t/e re&u!ations
•• -n Indian insurance company /as 1een defined as a company incorporated under t/e
Companies -ct - 1*5$ and t/e paid capita! of 4enera! Insurance 1usiness (i!! /ave
to 1e not !ess t/an 7s 100D- Crores and in case of companies (antin& to transact
reinsurance 1usiness t/e paid capita! (i!! /ave to not !ess t/an 7s 200D- Crores.
•• It /as a!so 1een notified t/at every insurance company (i!! /ave to appoint an
-ctuary to 1e approved 1y I.7.9.-. 3/e duty of t/e -ctuary is to insure t/at
3/e assets are va!ued in appropriate manner
3/e !ia1i!ities are eva!uated as re6uired
3/e prescri1ed mar&in for maintainin& so!vency is comp!ied (it/.
•• 3/e I.7.9.- a!so issued re&u!ations (it/ re&ards to advertisement so as to
inc!ude a!most any pu1!ic communication for a sa!e of insurance po!icy.
THE FUNDAMENTAL PRINCIPALS OF LAW OF INSURANCE.
UTMOST GOOD FAITH:
3/e parties to t/e commercia! contract2 accordin& to t/e !a( are re6uired to
o1serve &ood fait/. 3/e se!!er cannot mis!ead t/e 1uyer in respect of transactions2
1ut /e /as no su1=ect of t/e contract2 it is t/e 1uyerEs duty to 1e carefu! (/i!e
enterin& into a contract. !LET THE BUYER BE AWARE< is a !e&a! ru!e.
INSURABLE INTEREST:
3/e o(ner of t/e property /as a ri&/t under !a( to effect insurance on t/e
property if /e is !i)e!y to suffer financia!!y (/en property is !ost or dama&ed.
3/is !e&a! ri&/t to insure is ca!!ed insura1!e interest2 (it/out insura1!e interest t/e
contract of insurance (i!! 1e void. 0ecause of t/is !e&a! re6uirement of insura1!e
interest t/e insurance contracts are not &am1!in& transactions.
INDEMNITY:
3/e principa! of indemnity arises under common !a( and re6uires t/at an
insurance contro! s/ou!d 1e a contract of indemnity on!y and not/in& more. 3/e
o1=ect of principa!s to p!ace t/e insured after a !oss in t/e same financia! position
as far as possi1!e2 as /e is occupied immediate!y 1efore t/e !oss. 3/e effect of t/is
principa! is to prevent t/e insured from ma)in& t/e profit out of /is !oss or
&ainin& any advanta&e or 1enefit. 3/e o1=ect of a contract of insurance is to
protect t/e financia! interest of t/e insured in t/e su1=ect matter of insurance.
SUBROGATION:
3/e principa! of su1ro&ation arises from t/e principa! of indemnity. Su1ro&ation
may 1e defined as transfer of ri&/ts and remedies of t/e insured to t/e insurer
(/o /as indemnified t/e insured in respect of t/e !oss. If t/e insured /as any
ri&/ts of action to 1e recovered t/e !oss from any t/ird party2 (/o is primary
responsi1!e for t/e !oss2 t/e insurer /avin& paid t/e !oss is entit!ed to avai!
/imse!f of t/ese ri&/ts to recover t/e !oss from t/e t/ird party. 3/e effect is t/at
t/e insured does not receive more t/an actua! amount of /is !oss and any
recovery affected from t/e t/ird party &oes to t/e 1enefit of t/e insurer to reduce
t/e amount of /is !oss
INSURANCE MAR"ET IN INDIA
0y any yardstic)2 India2 (it/ a1out 200 mi!!ion midd!e c!ass /ouse/o!ds2 presents
a /u&e untapped potentia! for p!ayers in t/e insurance industry. Saturation of mar)ets in
many deve!oped economies /as made t/e Indian mar)et even more attractive for &!o1a!
insurance ma=ors. .ife insurance is main!y considered as a savin& instrument rat/er t/an
an investment avenue as it promotes compu!sory savin&s 1esides reducin& tax 1urden on
t/e po!icy/o!der and protect t/e fami!y of t/e po!icy/o!der in t/e event of unforeseen
/appenin&. It is t/e on!y savin& instrument2 (/ic/ covers t/e !ife ris) 1esides &ivin& tax
concession 1ot/ at entry Bpremium paidC and at exit
HISTORY AND PRESENT STATUS OF INSURANCE MAR"ET IN
INDIA
3/e insurance sector in India /as come a fu!! circ!e from 1ein& an open
competitive mar)et to nationa!i5ation and 1ac) to a !i1era!i5ed mar)et a&ain. 3racin& t/e
deve!opments in t/e Indian insurance sector revi!es t/e 3$0-de&ree turn (itnessed over a
period of a!most t(o centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR
3/e 1usiness of !ife insurance in India in its existin& form started in India in
t/e 1'1' (it/ t/e esta1!is/ment of @rienta! .ife Insurance Company in Ca!cutta. Some
of t/e important mi!estones in t/e .ife Insurance 1usiness in India are>
1*12> 3/e Indian .ife -ssurance Companies -ct enacted as t/e first statue to
re&u!ate t/e !ife insurance 1usiness.
1*2'> 3/e Insurance Companies -ct enacted to ena1!e t/e &overnment to
co!!ect statistica! information a1out 1ot/ !ife and non-insurance 1usiness.
1*3'> Ear!ier !e&is!ation conso!idated and amended to 1y t/e Insurance -ct
(it/ t/e o1=ective of protectin& t/e interest of t/e insurin& pu1!ic.
1*5$> 245 Indian and forei&n insurers and provident societies are ta)en over
1y t/e centra! &overnment and nationa!i5ed. .IC found 1y an -ct of ar!iament2 vi5. .IC
-ct 1*5$2 (it/ a capita! contri1ution of rupees +ive Crores from t/e 4overnment of
India.
INSURANCE SECTOR REFORMS
In 1**32 #a!/otra Committee2 /eaded 1y former +inance Secretary and 70I
4overnor 7.N. #a!/otra2 (as formed to eva!uate t/e Indian insurance industry and
recommend its future direction. 3/e #a!/otra committee setup (it/ t/e o1=ective of
comp!imentin& t/e reforms initiated in t/e financia! sector. 3/e reforms (/ere aimed at
Fcreatin& a more efficient and competitive financia! system suita1!e for t/e re6uirements
of t/e economy )eepin& in mind t/e structura! c/an&es current!y under(ay and
reco&ni5in& t/at insurance is an important part of t/e overa!! financia! system (/ere it
(as necessary to address t/e need for simi!ar reforms..F
In 1**42 t/e Committee su1mitted t/e report and some of t/e )ey recommendations
inc!uded>
S#$%&#%$'
a. 4overnment sta)e in t/e insurance companies to 1e 1rou&/t do(n to 50:.
1. 4overnment s/ou!d ta)e over t/e /o!din&s of 4IC and its su1sidiaries so
t/at t/ese su1sidiaries can act as independent corporations.
c. -!! t/e insurance company s/ou!d 1e &iven &reater freedom to operate.
C()*'#+#+(,
- rivate companies (it/ a minimum paid up capita! of 7s. 11n s/ou!d 1e
a!!o(ed to enter t/e industry.
1. No company s/ou!d dea! 1ot/ t/e !ife insurance and &enera! insurance
t/rou&/ a sin&!e entity.
c. +orei&n companies may 1e a!!o(ed to enter t/e industry in co!!a1oration
(it/ t/e domestic companies.
c. osta! .ife Insurance s/ou!d 1e a!!o(ed to operate in t/e rura! mar)et.
d. @n!y one state !eve! .ife Insurance Company s/ou!d 1e a!!o(ed to
operated in eac/ state.
R'-%./#($0 1(20
a. 3/e Insurance -ct s/ou!d 1e c/an&ed.
1. -n Insurance re&u!atory 1ody s/ou!d 1e setup.
7eforms in t/e insurance sector (ere initiated (it/ t/e passa&e of t/e I79- 0i!!
in t/e ar!iament in 9ecem1er 1***. 3/e I79- since its incorporation as statutory 1ody
in -pri! 2000 /as fastidious!y stuc) to its sc/edu!e of framin& re&u!ations and re&isterin&
t/e private sector insurance companies.
3/e ot/er decisions ta)en simu!taneous!y to provide t/e supportin& systems to t/e
insurance sector and in particu!ar t/e !ife insurance companies (as t/e !aunc/ of t/e
I79-<s on!ine service for issue and rene(a! of !icense to a&ents.
3/e approva! of institutions for impartin& trainin& to a&ents /as a!so ensured t/at
t/e insurance companies (ou!d /ave trained (or) force of insurance a&ents in p!ace to
se!! t/eir products2 (/ic/ are expected to 1e introduced 1y ear!y next year.
Since 1ein& set up as an independent statutory 1ody t/e I79- /as put in a
frame(or) of &!o1a!!y compati1!e re&u!ations. In t/e private sector 12 !ife insurance and
$ &enera! insurance companies /ave 1een re&istered.
Insurance is an 7s 400 1i!!ion 1usiness in India2 and to&et/er (it/ 1an)in&
services adds a1out %: to India<s 49. 4ross premium co!!ection is a1out 2: of 49
and /as 1een &ro(in& 1y 15 to 20: per annum. India a!so /as t/e /i&/est num1er of !ife
insurance po!icies in force in t/e (or!d2 and tota! investa1!e funds (it/ t/e .IC are
a!most ': of 49. Get more t/an t/ree fourt/ of India<s insura1!e popu!ation /as no !ife
insurance or pension cover. ?ea!t/ insurance of any )ind is ne&!i&i1!e and ot/er forms of
non !ife insurance are muc/ 1e!o( internationa! standards.
3o tap t/e vast insurance potentia! and to mo1i!i5e !on& term savin&s (e need
reforms (/ic/ inc!ude revita!i5in& and restructurin& of t/e pu1!ic sector companies2 and
openin& up t/e sector to private p!ayers. - statutory 1ody needs to 1e made to re&u!ate
t/e mar)et and to promote a ?ea!t/y mar)et structure. Insurance 7e&u!atory -ut/ority
BI7-C is one suc/ 1ody2 (/ic/ c/ec)s on t/ese tendencies. I7- ro!e comprises of
fo!!o(in& t/ree functions>
a. rotection of consumer<s interest
1. 3o ensure financia! soundness and so!vency of t/e insurance industry2
c. 3o ensure /ea!t/y &ro(t/ of insurance mar)et.
-n insurance po!icy protects t/e 1uyer at some cost a&ainst t/e financia! !oss
arisin& from a specified ris). 9ifferent situations and different peop!e re6uire a different
mix of ris)-cost com1inations. Insurance companies provide t/ese 1y offerin& sc/emes of
different )inds.
8nfortunate!y2 t/e concept of insurance is not possi1!e in our country. -s per t/e
!atest estimates2 t/e tota! premium income &enerated 1y !ife and &enera! insurance in
India is estimated at around 1.*5: of 49. ?o( ever India<s s/are of (or!d insurance
mar)et /as s/o(n an increase of 10: from 0.31: in 1**$-*% to 0.34: in 1**%-*'.
India<s mar)et s/are in t/e !ife insurance 1usiness s/o(ed a rea! &ro(t/ of 11: t/ere 1y
outperformin& &!o1a! avera&e of %.%:. Non !ife insurance 1usiness &re( 1y 3.1: a&ainst
&!o1a! avera&e of 0.20:. In India insurance pendin& per capita (as amon& t/e !ast in t/e
(or!d at H%.$ compared to H% in t/e previous year . -mon&st t/e emer&in& economies2
India is one of t/e !east insured countries 1ut t/e potentia! for &ro(t/ is p/enomena!2 as a
si&nificant portion of its popu!ation is in services and t/e !ife expectancy a!so increased
over t/e years.
3/e nationa!i5ed insurance industry /as not offered consumers a variety of
products. @penin& of t/e sector to private firms (i!! foster competition2 innovation and
variety of products. It (ou!d a!so &enerate &reater a(areness on t/e need for 1uyin&
insurance as a service and not mere!y for tax exemption2 (/ic/ is current!y done on t/e
demand side2 a stron& corre!ation 1et(een demand for insurance and per capita income
!eve! su&&ests t/at /i&/ economic &ro(t/ can spur &ro(t/ in demand for insurance. -!so
t/ere exists a stron& corre!ation 1et(een insurance density and socia! indicators suc/ as
!iteracy. Iit/ socia! deve!opment2 insurance demand (i!! &ro(.
LIFE INSURANCE MAR"ET IN INDIA
L+3' I,4%$/,&' S#/#+4#+&4
I,2+/, P(*%./#+(, I 1,
GDP /4 (, 5666 ( R4 1,) 76666 1,
G$(44 D()'4#+& S/8+,- /4 / 9 (3 GDP :59
NCAER '4#+)/#' +4 I,4%$/,&' P(*%./#+(, 5;6 ),
E4#+)/#'2 )/$<'# 5616 976 ),
India /as an enormous midd!e c!ass t/at can afford to 1uy !ife2 /ea!t/2 and
disa1i!ity and pension p!an products. 3/e !o( !eve! of penetration of !ife insurance in
India compared to ot/er deve!oped nations can 1e =ud&ed 1y a comparison of per capita
!ife premium.
C(%,#$0 L+3' P$')+%) *'$ &/*+#/ US = +, 199;
>/*/, :?1@
U" 15?6
USA 9A;
I,2+/ ;
C!ear!y2 t/ere is considera1!e scope to raise per capita !ife premium in t/e mar)et
is effective!y tapped. India /as traditiona!!y 1een a /i&/ savin&s oriented country often
descri1ed as 1ein& on par (it/ t/rifty Japan. Insurance sector in t/e 8S is a 1i& in t/e si5e
as t/e 1an)in& industry t/ere. 3/is &ives us an idea of /o( important is t/e sector is.
Insurance sector cana!i5es t/e savin& of t/e peop!e to !on&-term investments. In India
(/ere infrastructure is said to 1e critica! importance2 t/is sector (i!! 1rin& t/e nations
o(n money for t/e nation.
In t/e t/ree years time (e (ou!d expect 10: of t/e popu!ation to 1e under some
sort of an insurance cover. 3/us assumin& a premium of 7s 5000 on an avera&e2 100
mi!!ion 7s 5000 K 7s 500 1i!!ion.
3/is /as made t/e sector t/e /ottest one in India after I3. Iit/ socia! security and
security to pu1!ic at !ar&e 1ein& t/e a&enda for openin& t/e sector2 t/e ro!e of t/e
re&u!ator 1ecomes a!! t/e more serious and one (ou!d 1e carefu!!y (atc/ed at every step.
3/e Insurance 7e&u!ator and 9eve!opment 1i!! is no( an -ct. Iit/ t/is India is
no( t/e cynosure of a!! t/e &!o1a! insurance p!ayers. Numerous p!ayer2 1ot/ Indian and
forei&n /ave announced t/eir intention to start t/eir insurance s/ops in India. I79-2
under c/airman s/ip of #r. 7-N4-C?-7I2 opened t/e (indo( for app!yin& !icense in
India.
@ne of t/e main difference 1et(een t/e deve!oped economies and t/e emer&in&
economies is t/at insurance products are 1ou&/t in t/e former (/i!e t/ese are so!d in
!ater. +ocus if insurance industry is c/an&in& to(ards providin& a mix of 1ot/
protectionDris) cover and !on&-term investment opportunities.
WHY LIFE INSURANCE?
WHY LIFE INSURANCEB
.ife insurance cover is essentia! for it provides t/e fo!!o(in& 1enefits>
a. - !ump sum payment to t/e nominees at t/e time of t/e deat/ of t/e po!icy/o!der;
1. - re&u!ar payment to t/e nominees in t/e event of t/e deat/ of t/e po!icy/o!der;
c. 3ax 1enefits2 as premium paid to reduce t/e !ia1i!ity of tax;
d. 7e!ieves economic /ards/ips in t/e fami!y on t/e uneventfu! deat/ of t/e so!e income
/o!der;
e. Incu!cates t/e /a1it of savin&.
NEED FOR INSURANCE
3/e need for !ife insurance comes from t/e need to safe&uard our fami!y. If you
care for your fami!y<s needs you (i!! definite!y consider insurance.
3oday insurance /as 1ecome even more important due to t/e disinte&ration of t/e
preva!ent =oint fami!y system2 a system in (/ic/ a num1er of &enerations co-existed in
/armony2 a system in (/ic/ a sense of financia! security (as a!(ays t/ere as t/ere (ere
more earnin& mem1ers.
3imes /ave c/an&ed and t/e nuc!ear fami!y /as emer&ed. -part from t/e ot/er
pitfa!!s of a nuc!ear fami!y2 a /i&/ sense of insecurity is o1served in it today 1esides2 t/e
fami!y /as s/run). Needs are increasin& (it/ time and fu!fi!!ment of t/ese need is a 1i&
6uestion mar).
?o( (i!! you 1e a1!e to satisfy a!! t/ose needsL 0etter !ifesty!e2 &ood education2
and your !on& desired /ouse. 0ut a&ain you =ust cannot fritter a(ay a!! your earnin&s. Gou
need to save a part of it for t/e future too a (ise decision. 3/is is (/ere insurance /e!ps
you.
+actors suc/ as fe(er num1ers of earnin&s mem1ers2 stress2 po!!ution increased
competition2 /i&/er am1itions etc are some of t/e reasons (/y insurance /as &ained
importance and (/ere insurance p!ays a successfu! ro!e.
A, O8'$8+'C
Insurance 1usiness is divided into four c!asses>
1C .ife Insurance 1usiness
2C +ire
3C #arine
4C #isce!!aneous Insurance.
.ife Insurers transact !ife insurance 1usiness; t/e rest is transacted 1y 4enera!
Insurers. No composites are permitted as per !a(. 3/e 1usiness of Insurance essentia!!y
means defrayin& ris)s attac/ed to any activity over time Binc!udin& !ifeC and s/arin& t/e
ris)s 1et(een various entities2 1ot/ persons and or&ani5ations. Insurance companies BICsC
are important p!ayers in financia!
#ar)ets as t/ey co!!ect and invest !ar&e amounts of premium. Insurance products
are mu!ti purpose and offer t/e fo!!o(in& 1enefits>
1. rotection to t/e investors
2. -ccumu!ate savin&s
3. Cana!i5e savin&s into sectors needin& /u&e !on& term investments.
ICs receive2 (it/out muc/ defau!t2 a steady cas/ stream of premium or
contri1utions to pension p!ans. "arious actuary studies and mode!s ena1!e t/em to
predict2 re!ative!y accurate!y2 t/eir expected cas/ outf!o(s. .ia1i!ities of ICs 1ein& !on&-
term or contin&ent in nature2 !i6uidity is exce!!ent and t/eir investments are a!so !on&-
term in nature. Since t/ey offer more t/an t/e return on savin&s in t/e s/ape of !ife-cover
to t/e investors2 t/e rate of return &uaranteed in t/eir insurance po!icies is re!ative!y !o(.
Conse6uent!y2 t/e need to see) /i&/ rates of returns on t/eir investments is a!so !o(. 3/e
ris)-return trade off is /eavi!y ti!ted in favour of ris). -s a com1ined resu!t of a!! t/is2
investments of insurance companies /ave 1een !ar&e!y in 1onds f!oated 1y 4@I2 S8s2
state &overnments2 !oca! 1odies2 corporate 1odies and mort&a&es of !on& term nature. 3/e
!ast p!ace (/ere Insurance companies are expected to 1e over-active is 1ourses.
.ate!y ICs /ave ventured into pension sc/emes and mutua! funds a!so. ?o(ever2
!ife insurance2 constitutes t/e ma=or s/are of insurance 1usiness. .ife Insurance depends
upon t/e !a(s of morta!ity and t/ere !ies t/e difference 1et(een !ife and &enera!
insurance 1usinesses. .ife /as to extin&uis/ sooner or !ater and t/e c!aim in respect of !ife
is certain. In case of &enera! insurance2 /o(ever2 t/ere may never 1e a c!aim and t/e
amount can never 1e ascertained in advance. ?ence2 .ife Insurance inc!udes2 1esides
coverin& t/e ris) of ear!y /appenin& of an event2 an e!ement of savin&s a!so for t/e
1eneficiaries. ension 1usiness a!so derives from !ife insurance in as muc/ as t/e pension
out&o a&ain depends upon t/e !a(s of morta!ity. 3/e forays made 1y insurance
companies in t/is area are2 t/erefore2 natura! coro!!ary of t/eir 1usiness.
TYPES OF INSURANCE POLICIES
0road!y t/ere are 3 types of !ife insurance po!icies>
a. 3erm Insurance !ans
1. I/o!e .ife Insurance
c. Endo(ment Insurance !ans
T'$) I,4%$/,&' P./,4>
ure !ife covers (/ere you pay for ris) cover and do not expect to receive
anyt/in& e!se in return is no( avai!a1!e in India. @ptin& for suc/ po!icy (i!! improve t/e
efficiency of po!icy premium and ena1!e you for a 1i&&er ris) cover for t/e same cost.
3/ese are term insurance p!ans (it/ maturity 1enefits; some term p!ans &ive your
premium amounts 1ac) (it/ interest. 3/is is a mar)etin& po!icy to suit t/e &enera!
psyc/o!o&y and s/ou!d norma!!y invo!ve /i&/er premium cost.
WD(.' .+3' +,4%$/,&' *./,4:
I/o!e !ife po!icies re6uire you to pay premium t/rou&/ out your !ife and cover
ris) for (/o!e !ife. 3/e po!icies (it/out profit are c/eaper.
E,2(C)',# I,4%$/,&' *./,4 (C+#D ($ C+#D(%# )(,'0 1/&<):
Endo(ment po!icies are cost!iest and amon& t/is &roup2 money 1ac) po!icies
invo!ve payin& /i&/est premium. 3/ey &ive you maturity 1enefits Bnorma!!y sum assuredC
and additiona! profit 1y (ay of 1onus2 &uaranteed additions; !oya!ty 1onus etc. money
po!icies a!so provide partia! payment 1ac) to you at pre-set time periods.
DEFINITION OF SOME TYPES OF POLICIES
1. ANNUITY
-n annuity is a steady stream of e6ua! payments t/at one receives every year2 or
every mont/ eit/er for !ife or a fixed num1er of years2 as return after ma)in& an
investment eit/er as a !ump sum or t/rou&/ insta!!ments paid over a certain num1er of
years2 a specific sum. 8pon t/e deat/ of t/e annuitant2 or at t/e expiry of t/e period fixed
for annuity payments2 t/e invested annuity fund is refunded usua!!y a!on& (it/ a sma!!
1onus. -nnuities differ from a!! ot/er forms of !ife insurance in one fundamenta! (ay-
t/ey do not provide any insurance cover 1ut offer a &uaranteed income for a certain
period or for !ife.
3ypica!!y annuities are 1ou&/t to &enerate income durin& one<s retired !ife2 (/ic/
is (/y t/ey are a!so ca!!ed pension p!ans. -n annuity provides a so!ution to t/e 1i&&est
financia! insecurity of o!d a&e retires and t/e income from sa!ary ceases.
5. ENDOWMENT
Endo(ment po!icies cover t/e ris) for a specified period at t/e end of (/ic/ t/e
sum assured is paid 1ac) to t/e po!icy/o!der a!on& (it/ t/e entire 1onus accumu!ated
durin& t/e term of t/e po!icy. It is t/is feature t/e payment of t/e endo(ment to t/e
po!icy/o!der upon t/e comp!etion of t/e po!icy<s term2 (/ic/ ri&/t!y accounts for t/e
popu!arity of endo(ment po!icies.
3ypica!!y2 one<s responsi1i!ity for t/e financia! protection of t/e fami!y reduces
si&nificant!y once t/e c/i!dren are &ro(n up and independent!y sett!ed. 3/e focus t/en
s/ifts to mana&in& a sma!!er fami!y per/aps on!y onese!f and one<s spouse after
retirementD t/is is (/ere t/e endo(ment t/e ori&ina! sum assured and t/e accumu!ated
1onus received 1ac) comes /andy. Gou can eit/er use t/e endo(ment amount for 1uyin&
an annuity po!icy to &enerate a mont/!y pension for t/e (/o!e !ife2 or put it in any ot/er
suita1!e investment of your c/oice. 3/is is t/e ma=or 1enefit of an endo(ment po!icy over
a (/o!e !ife.
:. MONEY BAC"
8n!i)e endo(ment p!ans2 in money 1ac) po!icies t/e po!icy/o!der &ets periodic
Fsurvivance paymentsF durin& t/e term of t/e po!icy and a !ump sum amount on
survivin& its term. In t/e event of t/e deat/ durin& t/e term of t/e po!icy2 t/e 1eneficiary
&ets fu!! sum assured (it/out any deductions for t/e amount paid ti!! date2 and no furt/er
premiums are re6uired to 1e paid. 3/ese types of po!icies are very popu!ar2 since t/ey can
1e tai!ored to &et !ar&e amount at a specific periods as per t/e needs of t/e po!icy/o!der.
FUTURE OF LIFE INSURANCE MAR"ET
Even at modest estimates t/e si5e of !ife insurance mar)et in India cou!d 1e
around 7s. 40000 1i!!ion coverin& =ust 250 mn peop!eM
.IC /ad en=oyed t/e monopo!y of t/e 1i& !ife insurance mar)et since 1*5$. .IC
(as in for a surprise no( an t/en (/en it found t/at2 amon& air cras/ casua!ties or rai!
accident victims2 on!y very fe( /ad !ife insurance cover. In fact .IC did attempt to
eva!uate t/e si5e of t/e mar)et and !oo) at 1road /omo&eneous se&ments of t/e mar)et
1ased on t/e data provided 1y 9ecennia! Census 7eport re!atin& to (or)er popu!ation
cate&ori5ed into &roups 1ased on occupations. ?o(ever .IC<s ma=or se&mentations (ere
t/e ur1an2 rura!2 ma!e2 fema!e2 medica! and non-medica! se&ments. 3/e census of
occupation data (as used more as a frame(or) for formu!atin& t/e 1usiness p!ans. 0ut2
no( (it/ t/e entry of ne( p!ayer2 very conscious of t/eir mar)et s/ares2 t/e eva!uation of
t/e si5e of t/e mar)et for !ife insurance assumes importance. 3/e mar)et si5e (it/ its
via1!e se&ments is to 1e identified and suita1!e products to meet t/e needs of t/ese
se&ments deve!oped.
.ife insurance mar)et covers t/e entire a&e ran&e of t/e popu!ation of 1000
mn in India. ?o(ever ta)in& into account t/eir economic conditions and t/eir
a1i!ity to pay t/e premium for some sort !ife insurance cover or an annuity2 t/e
num1er of e!i&i1!e prospects for !ife insurance may 1e put around 30: of t/e tota!
popu!ation vi52 300 mn. .IC /as on its 1oo)s as on date 125 mn po!icies. 7esearc/
/ad s/o(n2 t/at eac/ of t/ese /o!ders of t/e po!icies /ave on an avera&e2 1.$ Bas
many po!icy /o!ders /ave more t/an one po!icyC. 3/us t/e no of persons /o!din&
!ife insurance po!icies (it/ .IC &ood (or) out to %5 mn. 3/is means on!y 25: of
t/e potentia! mar)et /as so far covered2 !eavin& t/e remainin& %5:- a vast mar)et of 225
mn persons- to 1e covered.
#ar)et si5e ever expandin&M
3/is mar)et si5e is dynamic and ever expandin&. 3/e &ro(t/ is dictated 1y severa!
factors suc/ as>
1. -n addition of around 20 mn of ne( popu!ation eac/ year.
2. #ore and more persons due to improvements in economic conditions move
continuous!y into t/e 5one of peop!e (it/ a1i!ity to pay premium for a !ife
insurance po!icy.
3. #any amon& t/e existin& po!icy/o!ders are &ross!y under insured. 3/ey need
and can afford additiona! insurance. 3/ese can 1e made to =oin t/e mar)et as
potentia! prospects for additiona! insurance. 3/ese form t/e creamy !ayers
mar)et capa1!e of 1ein& very &ood source of /i&/ vo!ume of 1usiness.
3a)in& a!! t/ese factors into account it can 1e seen t/at t/e si5e of t/e mar)et for
!ife insurance in India is enormous. -ssumin& t/e num1er of persons (/o can 1e so!d an
insurance po!icy to 1e 250 mn2 in terms of num1er of po!icies2 t/is (or)s out to 400 mn
po!icies. In financia! terms2 ta)in& t/e avera&e si5e of t/e po!icy as 7s 1 !a)/2 t/e sum
assured (or)s out to 7s 40000 1n or H '00 1n. 3/e first year<s premium income can 1e
assume as 7s $250 per annum per po!icy. 3/e fi&ures (ou!d )eep increasin& year 1y year
due to t/e improvement in t/e economic conditions !eadin& to increase in t/e num1er of
potentia! prospects .
COMPANY PROFILE
COMPANY PROFILE
ICICI GROUP
OVERVIEW OF ICICI BAN"
ICICI 0an) is India<s second-!ar&est 1an) (it/ tota! assets of a1out 7s.14$2214
crore at 9ecem1er 312 2004 and profit after tax of 7s. 123*1 crore in t/e nine mont/s
ended 9ecem1er 312 2004 B7s. 12$3% crore in fisca! 2004C. ICICI 0an) /as a net(or) of
a1out 530 1ranc/es and extension counters and over 12''0 -3#s. ICICI 0an) offers a
(ide ran&e of 1an)in& products and financia! services to corporate and retai! customers
t/rou&/ a variety of de!ivery c/anne!s and t/rou&/ its specia!i5ed su1sidiaries and
affi!iates in t/e areas of investment 1an)in&2 !ife and non-!ife insurance2 venture capita!
and asset mana&ement. ICICI 0an) set up its internationa! 1an)in& &roup in fisca! 2002
to cater to t/e cross-1order needs of c!ients and !evera&e on its domestic 1an)in&
stren&t/s to offer products internationa!!y. ICICI 0an) current!y /as su1sidiaries in t/e
8nited Ain&dom and Canada2 1ranc/es in Sin&apore and 0a/rain and representative
offices in t/e 8nited States2 C/ina2 8nited -ra1 Emirates2 0an&!ades/ and Sout/ -frica
ICICI 0an)<s e6uity s/ares are !isted in India on t/e Stoc) Exc/an&e2 #um1ai
and t/e Nationa! Stoc) Exc/an&e of India .imited and its -merican 9epositary 7eceipts
B-97sC are !isted on t/e Ne( Gor) Stoc) Exc/an&e BNGSEC.
-s re6uired 1y t/e stoc) exc/an&es2 ICICI 0an) /as formu!ated a Code of
0usiness Conduct and Et/ics for its directors and emp!oyees.
-t -pri! 42 20052 ICICI 0an)2 (it/ free f!oat mar)et capita!i5ationN of a1out 7s.
30'.00 1i!!ion B8SH %.00 1i!!ionC ran)ed t/ird amon&st a!! t/e companies !isted on t/e
Indian stoc) exc/an&es.
ICICI 0an) (as ori&ina!!y promoted in 1**4 1y ICICI .imited2 an Indian
financia! institution2 and (as its (/o!!y-o(ned su1sidiary. ICICI<s s/are/o!din& in ICICI
0an) (as reduced to 4$: t/rou&/ a pu1!ic offerin& of s/ares in India in fisca! 1**'2 an
e6uity offerin& in t/e form of -97s !isted on t/e NGSE in fisca! 20002 ICICI 0an)<s
ac6uisition of 0an) of #adura .imited in an a!!-stoc) ama!&amation in fisca! 20012 and
secondary mar)et sa!es 1y ICICI to institutiona! investors in fisca! 2001 and fisca! 2002.
ICICI (as formed in 1*55 at t/e initiative of t/e Ior!d 0an)2 t/e 4overnment of India
and representatives of Indian industry. 3/e principa! o1=ective (as to create a
deve!opment financia! institution for providin& medium-term and !on&-term pro=ect
financin& to Indian 1usinesses. In t/e 1**0s2 ICICI transformed its 1usiness from a
deve!opment financia! institution offerin& on!y pro=ect finance to a diversified financia!
services &roup offerin& a (ide variety of products and services2 1ot/ direct!y and t/rou&/
a num1er of su1sidiaries and affi!iates !i)e ICICI 0an). In 1***2 ICICI 1ecome t/e first
Indian company and t/e first 1an) or financia! institution from non-Japan -sia to 1e
!isted on t/e NG -fter consideration of various corporate structurin& a!ternatives in t/e
context of t/e emer&in& competitive scenario in t/e Indian 1an)in& industry2 and t/e
move to(ards universa! 1an)in&2 t/e mana&ements of ICICI and ICICI 0an) formed t/e
vie( t/at t/e mer&er of ICICI (it/ ICICI 0an) (ou!d 1e t/e optima! strate&ic a!ternative
for 1ot/ entities2 and (ou!d create t/e optima! !e&a! structure for t/e ICICI &roup<s
universa! 1an)in& strate&y. 3/e mer&er (ou!d en/ance va!ue for ICICI s/are/o!ders
t/rou&/ t/e mer&ed entity<s access to !o(-cost deposits2 &reater opportunities for earnin&
fee-1ased income and t/e a1i!ity to participate in t/e payments system and provide
transaction-1an)in& services. 3/e mer&er (ou!d en/ance va!ue for ICICI 0an)
s/are/o!ders t/rou&/ a !ar&e capita! 1ase and sca!e of operations2 seam!ess access to
ICICI<s stron& corporate re!ations/ips 1ui!t up over five decades2 entry into ne( 1usiness
se&ments2 /i&/er mar)et s/are in various 1usiness se&ments2 particu!ar!y fee-1ased
services2 and access to t/e vast ta!ent poo! of ICICI and its su1sidiaries. In @cto1er 20012
t/e 0oards of 9irectors of ICICI and ICICI 0an) approved t/e mer&er of ICICI and t(o
of its (/o!!y-o(ned retai! finance su1sidiaries2 ICICI ersona! +inancia! Services
.imited and ICICI Capita! Services .imited2 (it/ ICICI 0an). 3/e mer&er (as approved
1y s/are/o!ders of ICICI and ICICI 0an) in January 20022 1y t/e ?i&/ Court of 4u=arat
at -/meda1ad in #arc/ 20022 and 1y t/e ?i&/ Court of Judicature at #um1ai and t/e
7eserve 0an) of India in -pri! 2002.
ICICI 0an) is India<s second !ar&est 1an) (it an asset 1ase of 7s. 10$'12 crores.
ICICI 1an) provides a 1road spectrum of financia! services to individua!s and companies.
3/is inc!udes mort&a&es2 car and persona! !oans2 credit and de1it cards and corporate and
a&ricu!tura! finance. 3/e 1an) services a &ro(in& customer 1ase of more t/an % mn
customer accounts and five mn 1ond/o!ders accounts t/rou&/ a mu!ti c/anne! access
net(or). 3/e inc!udes a1out 450 1ranc/es and extension counters2 1$%5 -3#s2 ca!!
centers and Internet 1an)in&. ICICI 1an) posted a net profit of 7s 120$ Crore for t/e year
ended #arc/ 312 2003. ICICI 1an) is t/e on!y Indian company to 1e rated a1ove t/e
country ratin& 1y t/e internationa! ratin& a&ency #oody<s and on!y t/e Indian company to
1e a(arded an investment &rade internationa! credit ratin&. 3/e en=oys t/e /i&/est ratin&
from a!! Indian !eadin& ratin& a&encies.
OVERVIEW OF ICICI VENTURE WING
ICICI "enture2 incorporated in 1*''2 is t/e most experienced and !ar&est private e6uity
and venture fund mana&ement company in India (it/ funds current!y under mana&ement
in excess of 7s.20 1i!!ion B8S9 400 mi!!ionC.
@ver t/e !ast 15 years2 ICICI "enture /as 1een successfu! in identifyin& trends
(e!! a/ead of t/e curve; 1e it retai!2 media and entertainment2 information tec/no!o&y2
rea! estate or p/armaceutica!s and 1iotec/no!o&y. 9urin& t/is period ICICI "enture
!aunc/ed and mana&ed ' funds (it/ a corpus exceedin& 7s. 201i!!ion B8S9 400 mi!!ionC.
Eac/ fund /ad a distinct investment t/eme and ICICI "enture today /as some of t/e 1est
)no(n and mana&ed companies in India in its portfo!io. ?erein ICICI "enture /as
fo!!o(ed t/e p/i!osop/y of 1ein& a mu!ti-sector p!ayer ensurin& an optimum 1a!ance of
ris) and return to its investors.
ICICI "enture /as t/e distinction of mana&in& a !ar&e num1er of exits in t/e
country. Iit/ over 100 !i6uidity events2 t/e or&ani5ation /as reaped ric/ experience and
is (e!! positioned to /and!e I@s2 strate&ic sa!e andDor mer&ers.
ICICI "enture /as a (ide net(or) of t/ird party investors2 (/ic/ inc!ude
domestic investors suc/ as pu1!ic sector 1an)s2 financia! institutions and insurance
companies. - si&nificant portion of t/e fund<s corpus is a!so from internationa!
deve!opment financia! institutions and internationa! funds.
3/e company /as over 25 6ua!ified professiona!s (it/ experience across sectors
and functions. 3/e capa1i!ities of t/e team2 structure of t/e or&ani5ation2 emp/asis on
va!ue creation and performance eva!uation matrices ena1!e ICICI "enture to extract
superior returns from its investments.
ICICI "enture /as no( !aunc/ed t/e India -dvanta&e +und2 (it/ a corpus of
7s.10 0i!!ion B8S9 225 mi!!ionC. 3/e +und (i!! invest in mid-si5ed &ro(t/ companies
for fundin& t/rou&/ expansions2 ac6uisitions and restructurin&. 3/e +und (i!! a!so focus
on me55anine fundin& and 1uyouts.
ICICI PRUDENTIAL
ICICI 789EN3I-. .ife Insurance (as esta1!is/ed in 2000 (it/ a commitment
to expand and res/ape t/e !ife insurance industry in India. 3/e company (as amon&st t/e
first private sector insurance company to 1e&in operations after receivin& approva! from
Insurance 7e&u!atory 9eve!opment -ut/ority BI79-C2 and in t/e same time since2 /as
ta)en severa! steps to(ards rea!i5in& its &oa!.
THE COMPANY
ICICI 789EN3I-. .ife Insurance Company is a =oint venture 1et(een ICIC2 a
premier financia! po(er/ouse and prudentia! p!c; a !eadin& internationa! financia!
services &roup /ead6uarters in t/e 8nited Ain&dom. ICICI rudentia! (as amon&st t/e
first private sector insurance company to 1e&in operations in 9ecem1er 2000 after
receivin& approva! from Insurance 7e&u!atory 9eve!opment -ut/ority BI79-C.
ICICI and 789EN3I-. came to&et/er in 1**3 to form prudentia! ICICI -sset
#ana&ement Company2 (/ic/ /as today emer&ed as one of t/e !eadin& mutua! funds in
India. 3/e t(o companies 1rin& to&et/er t(o of t/e stron&est financia! service 1rands in
-sia2 )no(n for t/eir professiona!ism2 exce!!ent 6ua!ity of service and !on& term
commitment to customers. 7idin& on t/e success of t/is re!ations/ip2 t/e t(o companies
=oined /ands once more in 20002 to form ICICI 789EN3I-. .I+E INS87-NCE2 (it/
a commitment to provide !eadin& -ed&e !ife insurance so!utions. ICICI 0an) /as %4:
sta)e in t/e company2 and rudentia! p!c /as 2$:.
3o ma)e ICICI rudentia! t/e dominant .ife and ensions p!ayer 1ui!t on trust 1y
(or!d-c!ass peop!e and service.
3/is (e /ope to ac/ieve 1y>
• 8nderstandin& t/e needs of customers and offerin& t/em superior products and
service
• .evera&in& tec/no!o&y to service customers 6uic)!y2 efficient!y and convenient!y
• 9eve!opin& and imp!ementin& superior ris) mana&ement and investment
strate&ies to offer sustaina1!e and sta1!e returns to our po!icy/o!ders
• rovidin& an ena1!in& environment to foster &ro(t/ and !earnin& for our
emp!oyees
• -nd a1ove a!!2 1ui!din& transparency in a!! our dea!in&s.
3/e success of t/e company (i!! 1e founded in its unf!inc/in& commitment to 5
core va!ues -- Inte&rity2 Customer +irst2 0oundary!ess2 @(ners/ip and assion. Eac/ of
t/e va!ues descri1e (/at t/e company stands for2 t/e 6ua!ities of our peop!e and t/e (ay
(e (or)
Ie do 1e!ieve t/at (e are on t/e t/res/o!d of an excitin& ne( opportunity2 (/ere
(e can p!ay a si&nificant ro!e in redefinin& and res/apin& t/e sector. 4iven t/e 6ua!ity of
our parenta&e and t/e commitment of our team2 t/ere are no !imits to our &ro(t/.
PRUDENTIAL PLC
Esta1!is/ed in 1'4'2 rudentia! !c is a !eadin& internationa! financia! services
company in 8A (it/ around 8S H 250 1n funds under mana&ement2 and more t/an 1$
mi!!ion customers (or!d(ide. rudentia! /as 1rou&/t to mar)et an inte&rated ran&e of
financia! services products t/at no( inc!udes>
• !ife assurance
• pensions
• mutua! funds
• 1an)in&
• investment mana&ement
• &enera! insurance
In -sia rudentia! is 8A<s !ar&est !ife insurance company (it/ a vast net(or) of
22 !ife and mutua! fund operations in 12 countries> C/ina2 ?on& Aon&2 India2 Indonesia2
Japan2 Aorea2 #a!ayasia2 /i!ippines2 Sin&apore2 3ai(an2 3/ai!and2 "ietnam. Since 1*232
prudentia! /as c/ampioned customer centric products and services2 supported 1y over
$0000 staff and a&ents across t/e re&ion.
DISTRIBUTION
ICICI 789EN3I-. /as one of t/e !ar&est distri1ution net(or)s amon&st private
!ife insurance in India2 /avin& commenced operations in 2' cities and to(ns in India.
3/ese are> -/meda1ad2 0an&a!ore2 C/andi&ar/2 C/ennai2 Coim1atore2 4ur&aon2
?ydera1ad, Indore2 Jaipur2 Ja!and/ar2 Aanpur2 Coc/in2 Ao!)otta2 Aottaym2 .uc)no(2
.ud/iana2 #adurai2 #an&a!ore2 #eerut2 Na&pore2 Nasi)2 Nodia2 Ne( 9e!/i, une2
3/ane2 "ododara2 "as/i.
3/e company /as a !ar&est num1er of 1anc assurance tie-ups2 /avin& a&reement
(it/ ICICI 0an)2 Citi 0an)2 -!!a/a1ad 1an)2 +edera! 1an)2 Sout/ Indian 0an)2 0an) of
India2 .ord Aris/na 0an)2 un=a1 and #a/aras/tra co-operative 0an)2 as (e!! as some
corporate a&ents. It /as a!so tied-up (it/ or&ani5ations !i)e 9a/n for distri1ution of
Sa!aam Oinda&i2 a po!icy for t/e socia!!y and economica!!y under privi!e&e sections of
society.
SERVICE
ICICI 789EN3I-. /as recruited and trained over 1'000 insurance a&ents to
interface (it/ and advice customers2 and /as t/e /i&/est num1er amon&st private !ife
insurers on t/e reno(ned #i!!ion 9o!!ar 7ound ta1!e B#973C. +urt/er2 it !evera&es its
state-of-t/e-art I3 infrastructure to provide superior 6ua!ity of service to customers.
MILESTONES
ICICI 789EN3I-. !ife insurance /as crossed 7s 500 crore premium income
mar) on #arc/ 312 2003 /avin& issued near!y 350000 po!icies for a sum assured of 7s
'%00 crore since its inception.
3/e !ast fisca! /ad 1een si&nificant &ro(t/ for ICICI 789EN3I-. across a!!
se&ments2 (it/ 24$'2% po!icies issued in t/e period -pri! 2002-#arc/ 20032 and 7s 34'
Crore premium from ne( 1usiness in t/e same period2 a 200 per cent &ro(t/ over t/e
previous fisca! B-pri! 2001-#arc/ 2002C.
3/e company /ad a!so met a!! its rura! and socia! sector o1!i&ations2 said a press
re!ease. 3/e &ro(t/ 1een driven 1y pensions and unit !in)ed products. It /as &arnered
23: of pensions premium amon&st a!! p!ayers for t/e period -pri! 2002-+e1ruary 2003
and 34: in +e1 a!one. 3oday t/e company /as esta1!is/ed itse!f t/e num1er one private
!ife insurer in t/e country.
HISTORY:
Incorporated on Ju!y 202 2000 it is a %4>2$2 =oint venture 1et(een ICICI and
rudentia! p!c of 8.A. in Novem1er 20002 ICICI rudentia! .ife Insurance (as &ranted
Certification of 7e&istration for carryin& out .ife Insurance 1usiness 1y t/e insurance
7e&u!atory , 9eve!opment -ut/ority of India. 3/e company issued its first po!icy on
9ecem1er 122 2000.
Y'/$ (3 $'8+'C 5665-566::
ICICI rudentia! /as conso!idated its position as t/e !eadin& private !ife insurer in
India. ICICI rudentia!<s annua!i5ed premium &re( more t/an t/ree fo!d over t/e
previous year. Continuin& (it/ its <Customer +irst< p/i!osop/y2 ICICI rudentia! /as
si&nificant!y expanded its presence to 2* operationa! 0ranc/es B2001-2002> 1$C2 (it/ t/e
-dvisor +orce &ro(in& to over 1'000. It /as a!so stren&t/ened its -!ternate 9istri1ution
c/anne!s2 i.e. 0ancassurance2 Corporate -&ents and 9irect #ar)etin&2 ma)in& purc/ase
of insurance more accessi1!e. 0ancassurance and 9irect #ar)etin& c/anne!s /ave
contri1uted to over 1': of t/e -nnua!i5ed remium.
ICICI rudentia! (as amon&st t/e first to identify t/e emer&in& opportunity in t/e
ension se&ment and !aunc/ed t(o !in)ed pension products .ife time ension and .ife
.in) ension2 (/ic/ /ave 1een (e!! received in t/e mar)et.
MANAGEMENT
BOARD OF DIRECTORS
ICICI rudentia! .ife Insurance Company .imited 0oard comprises reputed peop!e
from t/e finance industry 1ot/ from India and a1road.
#r. A.". Aamat/2 C/aiman
#r. #ar) Nor1on
#rs. .a!ita 9. 4upte
#rs. Aa!pana #orparia
#rs. C/anda Aoc//ar
#r. Aevin ?o!m&ren
#r. #..#odi
#r. 7 Naryanan
#s S/i)/a S/arma
MANAGEMENT TEAM
#s S/i)/a S/arma2 #ana&in& 9irector
#r. Sandeep 0atra2 C/ief +inancia! @fficer , Company Secretary
#r. S/u1/ro J. #itra2 C/ief - ?uman 7esources
#r. uneet Nanda2 ?ead - Investments
#s. -nita ai2 C/ief - @perations , 8nder(ritin&
#r. ". 7a=a&opa!an2 -ppointed -ctuary
#r. S/rid/ar Set/uram2 C/ief - Sa!es , #ar)etin&
#r. -ni! 3i)oo2 ?ead - Information 3ec/no!o&y.
VISION-MISSION
VISION
3o ma)e ICICI rudentia! t/e dominant .ife and ensions p!ayer 1ui!t on trust
1y (or!d c!ass peop!e and service.
3/is (e /ope to ac/ieve 1y>
• 8nderstandin& t/e needs of customers and offerin& t/em superior products and
service
• .evera&in& tec/no!o&y to service customers 6uic)!y2 efficient!y and convenient!y.
• 9eve!opin& and imp!ementin& superior ris) mana&ement and investment strate&ies to
offer sustaina1!e and sta1!e returns to our po!icy/o!ders.
• rovidin& an ena1!in& environment to foster &ro(t/ and !earnin& for our emp!oyees.
• -nd a1ove a!!2 1ui!din& transparency in a!! our dea!in&s.
3/e success of t/e company (i!! 1e founded in its unf!inc/in& commitment to 5 core
va!ues>
• Inte&rity
• Customer +irst
• 0oundary!ess
• @(ners/ip
• assion
Eac/ of t/e va!ues descri1e (/at t/e company stands for2 t/e 6ua!ities of our
peop!e and t/e (ay (e (or). Ie do 1e!ieve t/at (e are on t/e t/res/o!d of an existin&
ne( opportunity2 (/ere (e can p!ay a si&nificant ro!e in redefinin& and res/apin& t/e
sector. 4iven t/e 6ua!ity of our parenta&e and t/e commitment of our team2 t/ere are no
!imits to our &ro(t/.
VISION-MISSION
3o 1e dominant !ife and pension p!ayers 1ui!t on trust 1y (or!d c!ass peop!e
and service.
INTEGRITY
• Stand up /onest!y and fear!ess!y for (/at t/ey tru!y care a1out.
• -!(ays act in a consistent and e6uita1!e manner.
• 9onEt compromise t/e future to pay for t/e present.
CUSTOMER FIRST
• @(n t/e customer> 9e!iver t/e promise.
• .isten active!y2 stretc/ continua!!y to add va!ue to customers and c/anne!
partners
BOUNDARYLESS
• Never say Fits not my =o1F &o 1eyond t/e ca!! of duty.
• Experiment- 1e!ieve anyt/in& is possi1!e
• See) ne( ideas re&ard!ess of source
• S/are ideas and t/ou&/ts free!y across !eve!s and functions
OWNERSHIP
• If it is to 1e2 it is up to me
• 0ias for action
• @(n mista)es. .earn from fai!ures
• Confront /ard facts2 pursue &oa!s re!ent!ess!y
• -ccounta1!e for team performance
PASSION
• Iinnin& instinct- transmit 1ound!ess ener&y and ent/usiasm to drive
resu!ts
• Stand up and ma)e a difference - c/a!!en&e status 6uo and drive c/an&e
• 9emonstrate speed for competitive advanta&e
• assionate!y nurture and re(ard exce!!ence
PRODUCTS
PRODUCTS
I,4%$/,&' S(.%#+(,4 F($ I,2+8+2%/.4:
ICICI 789EN3I-. .ife Insurance offers a ran&e of innovative2 customer centric
products t/at meet t/e needs of customer at every !ife sta&e. Its 13 products can 1e en/anced (it/
up to four riders2 to create a customi5ed so!ution for eac/ po!icy/o!der.
S/8+,- S(.%#+(,4
ICICI 789EN3I-. Save and rotect is a traditiona! endo(ment savin&s p!an
t/at offers !ife protection a!on& (it/ ade6uate returns.
ICICI 789EN3I-! Cas/0an) is an anticipated endo(ment po!icy idea! for
meetin& mi!estone expenses !i)e a c/i!d<s marria&e2 expenses for c/i!d<s education or
purc/ase of an asset.
P$(#'&#+(, S(.%#+(,4
ICICI 789EN3I-. .ife 4uard is a protection p!an2 (/ic/ offers !ife covers at
very !o( cost. It is avai!a1!e in t/ree options - !eve! term assurance2 !eve! assurance (it/
return of premium and sin&!e premium.
CD+.2 S(.%#+(,4
ICICI 789EN3I-. Smart Aid provides &uaranteed educationa! 1enefits to a
c/i!d a!on& (it/ !ife insurance cover for t/e parent (/o purc/ases t/e po!icy. 3/e po!icy
is desi&ned to provide money at important mi!estones in c/i!d<s !ife.
M/$<'# L+,<'2 S(.%#+(,4
ICICI 789EN3I-. .ife.in) is a sin&!e premium #ar)et .in)ed Insurance
!an2 (/ic/ com1ines !ife insurance cover (it/ t/e opportunity to stay2 invested in t/e
stoc) mar)et.
ICICI 789EN3I-. .ife3ime offers customers t/e f!exi1i!ity and contro! to
customi5e t/e po!icy to meet t/e c/an&in& needs at different !ife sta&es. It offers t/ree
investment options
• 4ro(t/ !an
• Income !an
• 0a!anced !an
R'#+$')',# S(.%#+(,4
• ICICI 789EN3I-. +orever .ife is retirement product tar&eted at individua!s in
t/eir 30<s
• ICICI 789EN3I-. .ife3ime ension is a re&u!ar premium mar)et !in)ed pension
p!an.
• ICICI 789EN3I-. .ife.in) ension is a sin&!e premium mar)et !in)ed pension
p!an.
S+,-.' P$')+%) S(.%#+(,4
• ICICI 789EN3I-. -ssure Invest is a sin&!e premium savin&s product (it/ !ife
cover for terms of 52 % or 10 years.
• ICICI 789EN3I-. 7eassure is a retirement product for senior citi5ens (/o are on
t/e ver&e of retirement or /ave =ust retired.
• ICICI 789EN3I-. a!so !aunc/ed Fsa!aam 5inda&iF2 a socia! sector &roup insurance
po!icy tar&eted at t/e economica!!y under privi!e&ed sections of t/e society.
G$(%* I,4%$/,&' S(.%#+(,4
ICICI 789EN3I-. a!so offers 4roup Insurance So!utions for companies
see)in& to en/ance 1enefits to t/eir emp!oyees.
ICICI 789EN3I-. 4roup 4ratuity !an> ICICI ru<s 4roup 4ratuity !an
/e!ps emp!oyers fund t/eir statutory &ratuity o1!i&ation in a scientific manner. 3/e p!an
can a!so 1e customi5ed to structure sc/emes t/at can provide 1enefits 1eyond t/e
statutory o1!i&ations.
ICICI PRUDENTIAL GROUP SUPERANNUATION PLAN:
ICICI ru offers a f!exi1!e defined contri1ution superannuation sc/eme to provide
a retirement )itty for eac/ mem1er of t/e &roup. Emp!oyees /ave t/e option of c/oosin&
from various annuity options or optin& for a partia! commutation of t/e annuity at t/e
time of retirement.
ICICI PRUDENTIAL GROUP TERM PLAN:
ICICI ru<s f!exi1!e &roup term so!ution /e!ps to provide afforda1!e cover to
mem1ers of a &roup. 3/e cover cou!d 1e uniform or 1ased desi&nation or ran) or a
mu!tip!e of sa!ary. 3/e 1enefit t/e po!icy is paid to t/e 1eneficiary nominated 1y t/e
mem1er on /isD/er deat/.
FLEXIBLE RIDER OPTIONSE
ICICI 789EN3I-. !ife offers for f!exi1!e riders2 (/ic/ can 1e added to t/e
1asic po!icy at a mar&ina! cost2 dependin& on t/e specific needs of t/e customer.
• -ccident and disa1i!ity 1enefit> if t/e deat/ occurs as t/e resu!t of an accident durin&
t/e term of t/e po!icy t/e 1eneficiary receives an additiona! amount e6ua! to t/e sum
assured under t/e po!icy. If t/e deat/ occurs (/i!e
• .eve! 3erm Cover> 3/is rider provides t/e option to increase t/e ris) cover. It may 1e
increased for an additiona! amount upto a maximum of t/e existin& 1asics sum
assured on your po!icy
• Critica! I!!ness 0enefit> protects t/e insured a&ainst t/e financia! !oss in t/e event of *
specified critica! i!!nesses. 0enefits are paya1!e to t/e insured for medica! expenses
prior to deat/.
• #a=or Sur&ica! -ssistance 0enefit> provides financia! support in t/e event of medica!
emer&encies2 ensurin& t/at 1enefits are paya1!e to t/e !ife assured for medica!
expenses incurred for sur&ica! procedures. Cover is offered a&ainst 43 different
sur&ica! procedures.
AWARENESSF
-ccordin& to Sau&ata 4upta C/ief - #ar)etin& of ICICI ru !ife<s
communication strate&ies /ave 1een very successfu! in 1ui!din& t/e 1rand and drivin&
a(areness of t/e company and t/e cate&ory. @74-#ar&<s 0rand trac) survey underta)en
!ast year indicate t/at t/ou&/ a(areness of .IC stands at 100:2 ICICI ru !ife stands not
far 1e/ind in t/e second p!ace at %0:. +urt/er t/e a(areness scores for ICICI ru !ife
dou1!e 1et(een +e1ruary 2001 and Septem1er 2001.
@74 #ar& researc/ a!so s/o(ed t/at t/e communication not on!y created
sa!iency and a(areness2 1ut a!so succeeded in inf!uencin& t/e 1uyin& decision. ICICI ru
!ife emer&ed far a/ead of ot/er private p!ayers as far as s/are of (a!!et (ent2 (it/ 52: of
t/e respondents sayin& t/at t/ey intended to 1uy po!icy from ICICI ru !ife.
ADVERTISING EFFECTIVENESSF
ICICI ru is a case study in t/e ro!e of mar)etin& in res/apin& an industry. It
/i&/!i&/ts /o( an industry (/ere Fse!!F and Fpus/F (ere often used (ords and consumer
(as not/in& more t/an a fi!e num1er2 /as c/an&ed to one (/ere Fconsumer preferenceF
and Fconsumer pu!!F ru!e t/e roost. ?ere<s a !oo) at /o( ICICI ru c/an&ed t/e ru!es of
t/e &ames and emer&ed a !eader in t/e process.
BAC"GROUND
I/en t/e insurance sector (as !i1era!i5ed in 20002 t/e private p!ayers contend
(it/ a fe( issues. 7atio of premium to 49 (as !o(> 1.3: of 49 (as invested in
insurance. Insurance penetration (as at an a1ysma! 22: of insura1!e popu!ation. 0esides
t/e a1ove t/e private p!ayers (ere faced (it/ attitudina! 1arriers2 perception of insurance
/as a tax savin& too! and !ac) of a consumer centric approac/ in service and product
offerin&s.
THE MAR"ETING CHALLENGES FACING ICICI P$%:
3/e c/a!!en&e t/erefore (as to c/an&e esta1!is/ed cate&ory drivers Bdeat/
payment and 3ax savin&C and to &et t/e consumer to eva!uated insurance on a more
emotiona! p!at form rat/er t/an a mere rationa! decision. Btax savin&sC.
THE CAMPAIGN OB>ECTIVES:
• 7eposition t/e cate&ory in t/e consumer<s mind. Inf!uence t/e consumer to vie( it as
a protection instrument and not a tax savin& product a!one.
• In t/e process2 create differentiation for t/e ICICI ru 1rand as a provider of socia!
security and fami!y protection.
• -c/ieve !eaders/ip status in sa!iency2 ima&e and product parameters.
• 0ui!d credi1i!ity and trust.
CREATIVE STRATEGY:
3/e essence of t/e creative strate&y is to &et t/e consumer to re !oo) at insurance
as a means to !ead a (orry free !ife and not as a necessary evi!. 3o t/is effect t/e core
1rand insi&/t /i&/!i&/ted (as F-s /ead of t/e fami!y2 it is my responsi1i!ity to ta)e care
of my !oved ones and protect t/em from t/e uncertainties of !ifeF2 summed up in t/e
advertisin& idea> <(e cover you at every step in !ife<
MAR"ET STRATEGY:
In a mar)et !i)e!y to 1e c!uttered2 (e used mu!tip!e touc/ points to reac/ t/e
consumer. 3/e ro!e for eac/ medium (as envisa&ed. 3/e 3" medium (as used to
en/ance t/e emotiona! !in) (it/ t/e 1rand. Strate&ic use of 15 sec. Edits faci!itated /i&/
fre6uency !eve!s. In print2 t/e cost per response rat/er t/an t/e cost per t/ousand as
responses (ere measured in form of ca!!-ins. 7adio +#2 Cinema2 Internet (ere used to
create a media mu!tip!ier effect.
THE RESULTS OF COMMUNICATION EFFORTS:
0ein& num1er one in a(areness and sa!iency. -(areness> ICICI ru s/o(ed a
si&nificant =ump in a(areness 1et(een +e1 and Sept 2001. Ima&e> /i&/est score amon&
a!! insurance p!ayers inc!udin& .IC2 on ima&e parameters !i)e safety2 modernity2 service2
&ood returns
Etc. intention to invest> next on!y to .IC as per researc/
SUM UP
In =ust over a year ICICI 789EN3I-. /as emer&ed as India<s P 1 private !ife
insurance company (it/ a!most 50: of t/e private p!ayers /as so!d /i&/est num1er of
po!icies 1ot/ in vo!ume and va!ue.
-N-.GSIS @+ 3?E Q8ES3I@NN-7IE @+ 3?E E#.@GEES
1. D( 0(% D/8' 8/$+(%4 (#D'$ +,#'$'4#4 (4(&+/., $'.+-+(%4), CD+&D $')/+, ,'-.'&#'2
1'&/%4' 0(% 2( ,(# -'# #+)' #( /##',2 #( #D'4'
N'8'$ ?9
O&&/4+(,/..0 ;9
S()'#+)'4 759
F$'G%',#.0 :A9
V'$0 69
SOCIAL ASPECTS
8%
4%
52%
36%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently
5. D( 0(% 3''. 4#/-,/,# +, 0(%$ $(.'
N'8'$ ;9
O&&/4+(,/..0 159
S()'#+)'4 :59
F$'G%',#.0 759
V'$0 69
ROLE STAGNATION
4%
12%
32%
52%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently
:. A$' 0(% /1.' #( 4/#+430 #D' &(,3.+&#+,- 2')/,24 (3 #D' 8/$+(%4 *''$ .'8'. *'(*.'
N'8'$ 159
O&&/4+(,/..0 5;9
S()'#+)'4 5;9
F$'G%',#.0 :A9
V'$0 ;9
Role Expectation Conflict
12%
24%
24%
36%
4%
Never
Occasionally
Sometimes
Frequently
Very frequently
;. W(%.2 0(% .+<' #( #/<' )($' $'4*(,4+1+.+#0 #D/, /# *$'4',#
N'8'$ ?9
O&&/4+(,/..0 5;9
S()'#+)'4 1A9
F$'G%',#.0 :A9
V'$0 1A9
Role Erosion
8%
24%
16%
36%
16%
Never
Occasionally
Sometimes
Frequently
Very frequently
7. TD' /)(%,# (3 C($< 0(% D/8' #( 2( +,#'$3'$'4 C+#D #D' G%/.+#0 0(% C/,# #(
)/+,#/+,
N'8'$ ;9
O&&/4+(,/..0 ;9
S()'#+)'4 ;?9
F$'G%',#.0 ;69
V'$0 ;9
Role Overload
4%
4%
48%
40%
4%
Never
Occasionally
Sometimes
Frequently
Very frequently
A. I4 #D'$' ,(# ',(%-D +,#'$/&#+(, 1'#C'', 0(%$ $(.' /,2 (#D'$ $(.'4
N'8'$ ?9
O&&/4+(,/..0 ?9
S()'#+)'4 :59
F$'G%',#.0 759
V'$0 69
Role Isolation
8%
8%
32%
52%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently
@. D( 0(% C+4D #( /&G%+$' )($' 4<+..4 #( D/,2.' #D' $'4*(,4+1+.+#+'4 (3 0(%$ $(.'
N'8'$ ;9
O&&/4+(,/..0 ?9
S()'#+)'4 569
F$'G%',#.0 :59
V'$0 :A9
Personal Inadequacy
4%
8%
20%
32%
36%
Never
Occasionally
Sometimes
Frequently
Very frequently
?. I3 0(% D/2 3%.. 3$''2() #( 2'3+,' 0(%$ $(.' 0(% C(%.2 1' 2(+,- 4()' #D+,-4
2+33'$',# 3$() CD/# 0(% 2( ,(C
N'8'$ 69
O&&/4+(,/..0 1A9
S()'#+)'4 ;;9
F$'G%',#.0 569
V'$0 569
SelfRole !istance
0%
16%
44%
20%
20%
Never
Occasionally
Sometimes
Frequently
Very frequently
9. S'8'$/. /4*' (3 0(%$ $(.' /$' 8/-%' /,2 %,&.'/$
N'8'$ ;69
O&&/4+(,/..0 1A9
S()'#+)'4 159
F$'G%',#.0 :59
V'$0 69
Role A"#i$uity
40%
16%
12%
32%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently
16. D( 0(% C+4D #( D/8' )($' 3+,/,&+/. $'4(%$&'4 3($ #D' C($< /44+-,'2 #( 0(%
N'8'$ ;9
O&&/4+(,/..0 ;9
S()'#+)'4 ;9
F$'G%',#.0 5?9
V'$0 A69
Resource Inadequacy
4%
4%
4%
28%
60%
Never
Occasionally
Sometimes
Frequently
Very frequently
SUMMARY OF ANALYSIS
3/e ana!ysis of t/e pro=ect>
• #ost of t/e emp!oyees fee! t/at t/eir ot/er socia! aspects remain
ne&!ected due to (or)!oad2 (/ic/ is incompati1!e (it/ or&ani5ationa!
ro!e.
• #ost of t/e emp!oyees fee! t/at t/eir ro!es are sta&nant
• Some of t/e emp!oyees are not a1!e to satisfy t/e conf!ictin& demands of t/e
various peer !eve! peop!e.
• #ost of t/e emp!oyees (ou!d !i)e to ta)e more responsi1i!ity t/an t/e present
• #ost of t/e emp!oyees fee! t/at t/eir (or) interferes (it/ t/e 6ua!ity t/ey (ant to
maintain in t/eir =o1
• #ost of t/e emp!oyees fee! t/at t/ere is not enou&/ interaction 1et(een t/eir ro!e
and ot/er ro!es 1ecause eac/ one of t/em is (or)in& independent!y.
• #ost of t/e emp!oyees (is/ to ac6uire more s)i!!s to /and!e t/e responsi1i!ities of
t/eir ro!e
• Some of t/e emp!oyees fee! t/at if t/ey are &iven fu!! freedom to define t/eir ro!e
t/ey (i!! do some t/in&s different from (/at t/ey do no(.
• #ost of t/e emp!oyees fee! t/at t/ey s/ou!d 1e provided (it/ more financia!
resources for t/e (or) assi&ned.
•
SUMMARY OF SUGGESTIONS
• I/en an individua! occupies more t/an 1 ro!e t/ere are 1ound to 1e
conf!icts 1et(een t/e different ro!es t/at /e occupies. Suc/ inter-ro!e
conf!icts are 6uite fre6uent in a modern society2 (/ere an individua! is
increasin&!y occupyin& mu!tip!e ro!es in various or&ani5ations and
&roups. So t/e or&ani5ation s/ou!d t/ro( a !i&/t on t/eir emp!oyees
socia! aspects. 3/e or&ani5ation s/ou!d improve t/e faci!ities for
!eisure and recreation; fact of peop!e doin& t/in&s for en=oyment2
(/en t/ey are not (or)in&. 3/e or&ani5ation s/ou!d arran&e pro&rams
for entertainment. -!so a p!ace for re!axation. Create a p!ace for
indoor &ames !i)e carom2 ta1!e tennis etc
• -s t/e individua! &ro(s o!der2 /e a!so &ro(s in t/e ro!e t/at /e
occupies in an or&ani5ation of t/e individua! t/at t/e ro!e c/an&es2 and
(it/ t/is c/an&e in ro!e2 t/e need for ta)in& up a ne( ro!e 1ecomes
crucia!. In order to 1e promoted t/e nit mana&ers /ave to reac/ certain
tar&ets set to t/em. 7eac/in& t/ese tar&ets sometimes 1ecomes very
difficu!t. 3/is is 1ound to produce stress. 3/us t/e or&ani5ation s/ou!d
/ave a systematic strate&y of manpo(er deve!opment.
• I/en t/ere are conf!ictin& expectations or demands 1y different ro!e
senders2 t/e ro!e occupant may experience t/is stress. 0ut most of t/e
emp!oyees are a1!e to satisfy t/e demands of t/e various peer !eve!
peop!e.
0ut some emp!oyees are not a1!e to satisfy t/e expectations from t/e
1oss2 su1ordinates2 peers or c!ients. 3/e or&ani5ation s/ou!d provide
t/e emp!oyees (it/ fu!! information a1out t/e products so t/at t/ey
are a1!e to satisfy t/e peers or c!ients.
• - ro!e occupant may fee! t/at t/e functions2 (/ic/ /e (ou!d !i)e to
perform2 are 1ein& performed 1y some ot/er ro!e. 3/e stress fe!t may
1e ca!!ed ro!e erosion. Some important ro!e expectations of t/e
emp!oyee are s/ared 1y ot/er ro!es (it/in t/e ro!e set. So t/e
or&ani5ation s/ou!d &ive a c/ance to emp!oyees (/o are (i!!in& to
ta)e more responsi1i!ities to en/ance t/eir performance. -nd t/us
provide trainin&2 &uidance and assistance to t/e emp!oyees
• I/en t/e ro!e occupant fee!s t/at t/ere are too many expectations
from t/e si&nificant ot/ers in /is ro!e set2 /e experiences ro!e
over!oad. Some emp!oyees fee! t/at t/ey cannot possi1!y finis/ t/e
(or) (it/in t/e time !imit. 3/e emp!oyees s/ou!d 1e &iven sufficient
time to comp!ete t/e (or) since it is an insurance industry2 &ettin& t/e
po!icies is 6uite difficu!t
• I/en a ro!e occupant fee!s t/at /e is not prepared to underta)e t/e
ro!e effective!y2 /e may experience t/is stress. -!most a!! t/e
emp!oyees (is/ to ac6uire more s)i!!s 1ecause t/e or&ani5ation is
!aunc/in& ne( products in t/e mar)et for t/e c!ients and so t/e
emp!oyees s/ou!d posses enou&/ )no(!ed&e2 s)i!!s2 trainin& a1out t/e
product 1ecause (it/out enou&/ preparation or orientation t/ey are
!i)e!y to experience t/is type of stress
So t/e or&ani5ation s/ou!d prepare t/e emp!oyees for t/e assi&ned
ne( ro!e.
• 3/is stress arises out of t/e conf!ict 1et(een t/e se!f-concept and t/e
expectations from t/e ro!e2 as perceived 1y t/e ro!e occupant. Suc/
conf!icts are common2 a!t/ou&/ t/ey may not 1e so severe. Some
emp!oyees are (i!!in& to do t/in&s different from (/at t/ey do no(.
So t/e or&ani5ation s/ou!d support suc/ emp!oyees so t/at t/ey can
&enerate &ood 1usiness2 (/ic/ in turn (i!! 1enefit t/e emp!oyees and
a!so t/e or&ani5ation.
• 7esource Inade6uacy stress is experienced (/en t/e resources
re6uired 1y t/e ro!e occupant for performin& t/e ro!e effective!y are
not avai!a1!e2 suc/ as information2 peop!e2 materia!s2 finance or ot/er
faci!ities. 3/e unit mana&ers /ave to recruit 25 advisors to &enerate
1usiness from t/em. +or t/is purpose t/ey /ave to &o for fie!d(or)
and /unt for t/em. So in t/is process t/ey /ave to spend t/e money in
!oo)in& out for t/e efficient peop!e. So t/e company so provides
financia! resources and transportation faci!ities to t/e emp!oyees. 3/is
(i!! reduce t/e stress of t/e emp!oyees and t/us t/ey (i!! 1e a1!e to
perform t/ey ro!e effective!y (it/ t/e avai!a1i!ity of ade6uate
resources.
LIMITATIONS OF THE STUDY
• Since private !ife insurance is t/e ne( t/eory in t/e Indian mar)et2 an in dept/
study (as not possi1!e.
• Some of t/e 8nit #ana&ers (ere en&a&ed in t/eir (or) and (ere not a1!e to &ive
t/eir opinion a1out t/eir (or)in& process.
• 3ime Constraint
CONCLUSION
3o conc!ude2 I (ou!d !i)e to say t/at (or)in& (it/ ICICI rudentia! for 2 mont/s
(as a &reat experience. -nd I fee! proud 1e an advisor of an esteemed company2 as ICICI
rudentia! is )no(n for its !eaders/ip in t/e private !ife insurance sector.
3/e company s/ou!d p!an a/ead and practice &ood time mana&ement. It s/ou!d
a!so /e!p t/e emp!oyees to deve!op a sound p/i!osop/y of !ife and maintain a positive
attitude.
Stress #ana&ement 1y or&ani5ation s/ou!d 1e desi&ned to reduce t/e /armfu! effects of
stress in a (ay
• ?e!p emp!oyees modify t/eir perception and understandin& of (or) stress
• ?e!p emp!oyees cope more effective!y (it/ t/e conse6uences of stress.
• ?e!p t/e emp!oyees to identify and t/en modify or e!iminate (or) stressors
HA 4#%20 (, S#$'44 M/,/-')',# /# ICICI PRUDENTIALI
3/e information &iven 1y you (i!! 1e used on!y for t/e academic purpose2 (i!! 1e of
immense va!ue and (ou!d assist me in t/is endeavor. 3/us )ind!y co-operate
Name of emp!oyee >
-&e >
4ender > #a!e +ema!e
#arita! Status > #arried 8nmarried
@ccupation >
1.9o you /ave various ot/er interests Bsocia!2 re!i&iousC2 (/ic/ remain ne&!ected
1ecause you do not &et time to attend to t/ese
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
2. 9o you fee! sta&nant in your ro!e
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
3. -re you a1!e to satisfy t/e conf!ictin& demands of t/e various peer !eve! peop!e
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
4. Iou!d you !i)e to ta)e more responsi1i!ity t/an at present
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
5. 3/e amount of (or) you /ave to do interferes (it/ t/e 6ua!ity you (ant to maintain
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
$. Is t/ere not enou&/ interaction 1et(een your ro!e and ot/er ro!es
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
%. 9o you (is/ to ac6uire more s)i!!s to /and!e t/e responsi1i!ities of your ro!e
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
'. If you /ad fu!! freedom to define your ro!e you (ou!d 1e doin& some t/in&s
different from (/at you do no(
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
*. Severa! aspects of your ro!e are va&ue and unc!ear
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
10. 9o you (is/ to /ave more financia! resources for t/e (or) assi&ned to you
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
1. @r&ani5ationa! 1e/avior > Jo/n I. Ne(strom
Aeit/ 9avis
2. #ana&in& ?uman 7esources > Iayne. +. Cascio
3. #a)in& @r&ani5ationa! 7o!es Effective > 8dai aree)
4. Ie1-Site > icicipru!ife.com 2 &oo&!e.com
5. Journa!s > Company Journa!s , #a&a5ine
WD/# +4 S#$'44
Stress is t/e &enera! term app!ied to t/e pressures peop!e fee! in !ife. 3/e presence
of stress at (or) is a!most inevita1!e in many =o1s. ?o(ever2 individua! differences
account for a (ide ran&e of reactions to stress2 a tas) vie(ed as c/a!!en&in& 1y one
person may produce /i&/ !eve!s of anxiety in anot/er. I/en pressure 1e&ins to 1ui!d up2
it can cause adverse strain on personEs emotions2 t/ou&/t processes2 and p/ysica!
condition. I/en stress 1ecomes excessive2 emp!oyees deve!op various symptoms of
stress t/at can /arm t/eir =o1 performance and /ea!t/2 and even t/reaten t/eir a1i!ity to
cope (it/ t/e environment. Stress a!so !eads to p/ysica! disorders2 1ecause t/e interna!
1ody system c/an&es to try to cope (it/ stress. It is important t/at stress2 1ot/ on and off
t/e =o12 1e )ept at a !eve! !o( enou&/ for most peop!e to to!erate (it/out deve!opin&
eit/er emotiona! or p/ysica! disorders.
Stress can 1e eit/er temporary or !on&-term2 eit/er mi!d or severe. 3/e effects on
an emp!oyee depend most!y on /o( !on& its causes continue2 /o( po(erfu! t/ey are2
and /o( stron& t/e emp!oyeeEs recovery po(ers are. If stress is temporary and mi!d2 most
peop!e can /and!e it or at !east recover from its effects rat/er 6uic)!y.
Stress is simp!y t/e 1ody<s non-specific response to any demand made on it.
Stress is not 1y definition synonymous (it/ nervous tension or anxiety. Stress provides
t/e means to express ta!ents and ener&ies and pursue /appiness; it can a!so cause
ex/austion and i!!ness2 eit/er p/ysica! or psyc/o!o&ica!; /eart attac)s and accidents. 3/e
important t/in& to remem1er a1out stress is t/at certain forms are norma! and essentia!.
-s t/e 1ody responds to various forms of p/ysica! or psyc/o!o&ica! stress2 certain
predicta1!e c/an&es occur. 3/ese inc!ude increased /eart rate2 1!ood pressure Bsysto!ic
and diasto!icC2 and secretions of stimu!atory /ormones. 3/ese responses to stress (i!!
occur (/et/er t/e stress is positive or ne&ative in nature. In !ay terms2 it is )no(n as t/e
Ffi&/t or f!i&/tF mec/anism. Continua! exposure !o(ers t/e 1ody<s a1i!ity to cope (it/
additiona! forms of psyc/o!o&ica! or p/ysio!o&ica! stress. 3/e resu!ts of continuin& stress
may cause disruption in one or more of t/e fo!!o(in& areas of /ea!t/> p/ysica!2 emotiona!2
spiritua! andDor socia!.
Stress is a process t/at 1ui!ds. It<s more effective to intervene ear!y in t/e process
rat/er t/an !ater. 3ry to 1ecome a(are of t/e si&ns t/at su&&est t/e process /as 1e&un
Stress is t/e (ay your 1ody responds to t/e demands p!aced on it. ositive or F&oodF
stress can /e!p you concentrate and focus. In some instances2 it actua!!y increases your
a1i!ity to survive. Gour 1ody<s response to stress can 1e /ormona!2 suc/ as an adrena!ine
rus/. It can a!so 1e a rise in 1!ood pressure2 1!ood su&ar2 or 1ody temperature. 3/ese
p/ysica! reactions can often ma)e you more a!ert; &ive you more acute eyesi&/t or &reater
stren&t/. 3/at<s /o( your 1ody &ives you (/at you need to act. Idea!!y2 your 1ody
automatica!!y re!axes after you /ave /and!ed t/e situation. Gour p/ysica! responses
norma!i5e and you are a1!e to return to a state of rest. 3/is process a!!o(s you to &at/er
p/ysica! and emotiona! ener&y (/ic/ /e!ps you dea! (it/ c/an&es and c/a!!en&es in your
dai!y !ife.
Gour p/ysica! reaction to stress is t/e same for positive and ne&ative stress; t/e
difference is t/at (it/ ne&ative stress your 1ody never returns to t/e Fpre-stressF re!axed
state. Gou remain tense or anxious2 (/ic/ drains you of emotiona! and p/ysica! ener&y.
3/e common expression for stress is RtensionE @ne is said to 1e tense2 (/en t/ere is some
anxiety2 some fear of (/et/er t/e desira1!e t/in&s may /appen2 (/et/er somet/in& may
&o (ron&2 etc. It is a state of discomfort fe!t in t/e mind and experienced 1y t/e 1ody.
I/en t/ere is tension2 t/e 1ody may 1ecome (ea).
In mana&ement !iterature2 RStressE is defined as a response of t/e /uman 1ody to a
fe!t need. I/en one is /un&ry and t/ere is an ur&e to eat food2 t/e 1ody is in a state of
stress2 (/ic/ disappears (/en t/e need is fu!fi!!ed. 3/is definition su&&ests t/at stress is a
desira1!e condition2 ma)in& one move to(ards fu!fi!!ment of needs. 3/is is part!y true.
Stress occurs a!so (/en t/e need arises out of fear and t/e ur&e is to run and escape. 3/is
may sometimes2 1e not possi1!e. In t/at case2 t/ere is no movement2 t/e need remains
unfu!fi!!ed and t/e stress condition does not disappear.
Stress is identified as of t(o )inds. @ne is ca!!ed EuStress2 (/ic/ is t/e condition
in (/ic/ t/ere is drive and effort to fu!fi!! t/e needs. #otivation is /i&/. -c/ievement is
seen as possi1!e. 3/e situation is c/a!!en&in&. Stress disappears (/en t/e need is fu!fi!!ed
3/ere is success. 3/e ot/er is 9iStress2 (/ic/ is t/e condition (/en t/ere is a sense of
/e!p!essness in 1ein& a1!e to ac/ieve. 3/e fee!in& is of frustration. 3/ere is no success.
#ay 1e2 t/ere is no attempt even2 1ecause success is seen as impossi1!e. 3/e stress
condition remains.
If one (ere to c/art t/e !eve! of stress and t/e !eve! of effort put in to (or)2 it
(ou!d 1e an inverted para1o!a. Eustress (ou!d 1e in t/e ascendin& !eft side of t/e
para1o!a. 3/e c/a!!en&e (ou!d 1e maximum at t/e /ump. 3/e !atter /a!f on t/e ri&/t side
represents 9istress. 3/e pro1!ems of stress are caused 1y 9istress2 not 1y Eustress.
Eustress is necessary for t/e person to 1e fu!!y a!ert2 for a!! /is facu!ties to come
into p!ay to face t/e situation. +or examp!e2 a &oa!)eeper in foot1a!! or /oc)ey2 (i!! 1e
tota!!y re!axed (/en t/e 1a!! is at t/e ot/er end of t/e &round2 1ut 1ecomes extreme!y
a!ert as t/e 1a!! moved to(ards /im. ?is 1ody stiffens2 t/e eyes 1e&in to 1u!&e2 focussin&
on t/e 1a!! and t/e movement of t/e p!ayers2 pic)in& up t/e s!i&/test of movements and
every nerve and musc!e ready to respond to t/ose movements. 3/at is Eustress2 (it/out
(/ic/ t/e &oa!)eeper cannot 1e at /is 1est. So a!so2 Eustress is experienced 1y t/e
1atsman in cric)et (/en t/e 1o(!er is on t/e run2 and 1y t/e tennis p!ayer (/en t/e 1a!!
is a1out to 1e served at t/e ot/er end.
Stress is a part of !ivin&. 3oo !itt!e stress and (e 1ecome apat/etic and ineffective.
3oo muc/ stress and (e !ive (it/ anxiety2 fati&ue2 and over time2 increase our ris) for
accidenta! in=ury and serious i!!ness. #aintainin& an optima! !eve! of stress is an on&oin&
c/a!!en&e of everyday !ife.
3/e stress response of t/e 1ody is meant to protect and support us. 3o maintain
sta1i!ity or /omeostasis2 t/e 1ody is constant!y ad=ustin& to its surroundin&s. I/en a
p/ysica! or menta! event t/reatens t/is e6ui!i1rium2 (e react to it. 3/is process is often
referred to as t/e Ffi&/t or f!i&/t response.F Ie prepare for p/ysica! action in order to
confront or f!ee a t/reat. @ur ancestors responded to stressfu! ordea!s in t/is fas/ion.
#i!!ions of years !ater2 (/en you face a situation t/at you perceive as c/a!!en&in&2 your
1ody automatica!!y &oes into overdrive2 en&a&in& t/e stress response. Immediate!y2 you
re!ease t/e same /ormones t/at ena1!ed cave peop!e to move and t/in) faster2 /it /arder2
see 1etter2 /ear more acute!y2 and =ump /i&/er t/an t/ey cou!d on!y seconds ear!ier. .i)e
t/eirs2 your /eart1eat speeds up; your 1!ood pressure increases; your 1reat/in& 6uic)ens.
#ost modern stresses2 /o(ever2 do not ca!! for eit/er fi&/t or f!i&/t. @ur experience of
stress is &enera!!y re!ated to /o( (e respond to an event2 not to t/e event itse!f.
Stress /as existed t/rou&/out t/e evo!ution. -1out 4 1i!!ion years a&o2 vio!ent
co!!ision of roc) and ice a!on& (it/ dust and &as2 !ed to t/e formation of a ne( p!anet.
3/e p!anet survive more t/an 100 mi!!ion years of me!tdo(n to &ive 1irt/ to microscopic
!ife . 3/ese first or&anisms endured t/e /ars/est of conditionsS!ac) of oxy&en2 exposure
to sun<s 8" rays and ot/er in/ospita1!e e!ements2 to /an& on to t/eir dear !ife. 7ou&/!y
3002000 years a&o2 t/e Neandert/a!s !earnt to use fire in a contro!!ed (ay2 to survive t/e
4!acia! -&e. -nd around 302000 years2 ?omo sapiens (it/ t/eir dominant &ene
constitutions and 1etter copin& s)i!!s2 (on t/e &ame of surviva!. Eac/ step of evo!ution a
test of surviva!2 and surviva!2 a matter of copin& (it/ t/e stress of c/an&in& conditions.
#i!!ions of tria!s and errors in t/e !ife process /ave 1rou&/t men to t/is sta&e.
Copin& (it/ events to survive /as !ed men to invent extraordinary tec/no!o&ies2
1e&innin& (it/ a piece of s/arpened stone.
+rom t/e vie(point of microevo!ution2 stress induction of transpositions is a
po(erfu! factor2 &eneratin& ne( &enetic variations in popu!ations under stressfu!
environmenta! conditions. assin& t/rou&/ a <1ott!enec)<2 a popu!ation can rapid!y and
si&nificant!y a!ters its popu!ation norm and 1ecome t/e founder of ne(2 evo!ved forms.
4ene transposition t/rou&/ 3ransposa1!e E!ements B3ECS<=umpin& &enes<2 is a
ma=or source of &enetic c/an&e2 inc!udin& t/e creation of nove! &enes2 t/e a!teration of
&ene expression in deve!opment2 and t/e &enesis of ma=or &enomic rearran&ements. In a
researc/ on <t/e si&nificance of responses of t/e &enome to c/a!!en&es2< t/e No1e! ri5e
(innin& scientist 0ar1ara #cC!intoc)2 c/aracteri5ed t/ese &enetic p/enomena as
<&enomic s/oc)E. 3/is occurs due to recom1ination events 1et(een 3E insertions B/i&/
and !o( insertion po!ymorp/ismC and /ost &enome. 0ut2 as a ru!e 3Es remain
immo1i!i5ed unti! some stress factor Btemperature2 irradiation2 9N- dama&e2 t/e
introduction of forei&n c/romatin2 viruses2 etc.C activates t/eir e!ements.
3/e mora! remains t/at (e can (or) a stress condition to our advanta&e or protect
ourse!ves from its unto(ard fo!!o(-t/rou&/s su1=ect to /o( (e /and!e a stress situation.
3/e c/oice is 1et(een 1ecomin& a s!ave to t/e stressfu! situations of !ife or usin& t/em to
our advanta&e
FNot/in& &ives one person so muc/ advanta&e over anot/er as to remain a!(ays
coo! and unruff!ed under a!! circumstancesT
In a c/a!!en&in& situation t/e 1rain prepares t/e 1ody for defensive actionSt/e fi&/t or
f!i&/t response 1y re!easin& stress /ormones2 name!y2 cortisone and adrena!ine. 3/ese /ormones
raise t/e 1!ood pressure and t/e 1ody prepares to react to t/e situation. Iit/ a concrete defensive
action Bfi&/t responseC t/e stress /ormones in t/e 1!ood &et used up2 entai!in& reduced stress
effects and symptoms of anxiety.
I/en (e fai! to counter a stress situation Bf!i&/t responseC t/e /ormones and
c/emica!s remain unre!eased in t/e 1!ood stream for a !on& period of time. It resu!ts in
stress re!ated p/ysica! symptoms suc/ as tense musc!es2 unfocused anxiety2 di55iness and
rapid /eart1eats. Ie a!! encounter various stressors Bcauses of stressC in everyday !ife2 (/ic/
can accumu!ate2 if not re!eased. Su1se6uent!y2 it compe!s t/e mind and 1ody to 1e in an a!most
constant a!arm-state in preparation to fi&/t or f!ee. 3/is state of accumu!ated stress can increase
t/e ris) of 1ot/ acute and c/ronic psyc/osomatic i!!nesses and (ea)en t/e immune system of t/e
/uman 1ody.
Stress can cause /eadac/es2 irrita1!e 1o(e! syndrome2 eatin& disorder2 a!!er&ies2
insomnia2 1ac)ac/es2 fre6uent co!d and fati&ue to diseases suc/ as /ypertension2 ast/ma2
dia1etes2 /eart ai!ments and even cancer. In fact2 San=ay C/u&/2 a !eadin& Indian
psyc/o!o&ist2 says t/at %0 per cent to *0 per cent of adu!ts visit primary care p/ysicians
for stress-re!ated pro1!ems. Scary enou&/.
Just a1out every1odySmen2 (omen2 c/i!dren and even fetusesSsuffer from stress.
7e!ations/ip demands2 c/ronic /ea!t/ pro1!ems2 pressure at (or)p!aces2 traffic snar!s2 meetin&
dead!ines2 &ro(in&-up tensions or a sudden 1earis/ trend in t/e 1ourse can tri&&er stress
conditions. eop!e react to it in t/eir o(n (ays. In some peop!e2 stress-induced adverse fee!in&s
and anxieties tend to persist and intensify. .earnin& to understand and mana&e stress can prevent
t/e counter effects of stress.
#et/ods of copin& (it/ stress are ap!enty. 3/e most si&nificant or sensi1!e (ay
out is a c/an&e in !ifesty!e. 7e!axation tec/ni6ues suc/ as meditation2 p/ysica! exercises2
!istenin& to soot/in& music2 deep 1reat/in&2 various natura! and a!ternative met/ods2
persona! &ro(t/ tec/ni6ues2 visua!i5ation and massa&e are some of t/e most effective of
t/e )no(n non-invasive stress 1usters
3/e (ords <positive< and <stress< may not often &o to&et/er. 0ut2 t/ere are
innumera1!e instances of at/!etes risin& to t/e c/a!!en&e of stress and ac/ievin& t/e
unac/ieva1!e2 scientists stressin& t/emse!ves out over a point to 1rin& into !i&/t t/e most
unt/in)a1!e secrets of t/e p/enomena! (or!d2 and !i)e(ise a painter2 a composer or a
(riter producin& t/e 1est paintin&s2 t/e most !i!tin& of tunes or t/e most appea!in& piece
of (ritin& 1y pus/in& t/emse!ves to t/e !imit. syc/o!o&ists second t/e opinion t/at some
<stress< situations can actua!!y 1oost our inner potentia! and can 1e creative!y /e!pfu!.
Sud/a C/andran2 an Indian danseus2 !ost 1ot/ of /er !e&s in an accident. 0ut2 t/e p/ysica!
and socia! inade6uacies &ave /er more impetus to carry on (it/ /er dance performances
(it/ t/e /e!p of prost/etic !e&s rat/er t/an deter /er spirits.
Experts te!! us t/at stress2 in moderate doses2 are necessary in our !ife. Stress
responses are one of our 1ody<s 1est defense systems a&ainst outer and inner dan&ers. In a
ris)y situation Bin case of accidents or a sudden attac) on !ife et a!C2 1ody re!eases stress
/ormones t/at instant!y ma)e us more a!ert and our senses 1ecome more focused. 3/e
1ody is a!so prepared to act (it/ increased stren&t/ and speed in a pressure situation. It is
supposed to )eep us s/arp and ready for action.
7esearc/ su&&ests t/at stress can actua!!y increase our performance. Instead of
(i!tin& under stress2 one can use it as an impetus to ac/ieve success. Stress can stimu!ate
one<s facu!ties to de!ve deep into and discover one<s true potentia!. 8nder stress t/e 1rain
is emotiona!!y and 1ioc/emica!!y stimu!ated to s/arpen its performance
Stress is2 per/aps2 necessary to occasiona!!y c!ear co1(e1s from our t/in)in&. If
approac/ed positive!y2 stress can /e!p us evo!ve as a person 1y !ettin& &o of un(anted
t/ou&/ts and princip!e in our !ife. "ery often2 at various crossroads of !ife2 stress may
remind you of t/e transitory nature of your experiences2 and may prod you to !oo) for t/e
true /appiness of !ife.
@r&ani5ationa! and individua! pro&rams to /e!p mana&ers and emp!oyees cope up
(it/ stress /ave 1ecome increasin&!y popu!ar2 as t/e to!! ta)en 1y stress /as 1ecome more
(ide!y )no(n. #et/ods are avai!a1!e to individua!s and or&ani5ations for mana&in&
stress and reducin& its /armfu! effects. Stress mana&ement refers to any pro&ram t/at
reduces stress 1e /e!pin& peop!e understand t/e stress response2 reco&ni5e stressors2 and
use copin& tec/ni6ues to minimi5e t/e ne&ative impact of stress.
INDIVIDUAL METHODS
Stress mana&ement 1y individua!s inc!udes activities and 1e/aviors desi&ned to
e!iminate or contro! t/e sources of stress and ma)e t/e individua! more resistant to or
1etter a1!e to cope (it/ stress. 3/e first step in individua! stress mana&ement invo!ves
reco&ni5in& t/e stressors t/at are affectin& t/e personEs !ife. Next2 t/e individua! needs to
decide (/at to do a1out t/em.
ractica! su&&estions for individua! stress mana&ement inc!ude t/e fo!!o(in&
• !an a/ead and practice &ood time mana&ement
• 4et p!enty of exercise
• 9eve!op a sound p/i!osop/y of !ife and maintain a positive attitude
• Concentrate on 1a!ancin& your (or) and persona! !ife.
• .earn a re!axation tec/ni6ue.
ORGANIJATIONAL METHODS
Stress mana&ement 1y or&ani5ations is desi&ned to reduce t/e /armfu! effects of
stress in t/ree (ays
• Identify and t/en modify or e!iminate (or) stressors
• ?e!p emp!oyees modify t/eir perception and understandin& of (or) stress
• ?e!p emp!oyees cope more effective!y (it/ t/e conse6uences of stress.
APPROACHES TO STRESS MANAGEMENT
0ot/ or&ani5ation and individua!s are /i&/!y concerned a1out stress and its
effects. In attemptin& to mana&e stress2 t/ey /ave t/ree 1road options
• revent or contro! it2
• Escape from it2
• .earn to adapt it.
@r&ani5ations can see) to improve mana&eria! communication s)i!!s2 empo(er
emp!oyees t/rou&/ participation2 redesi&n =o1s to 1e more fu!fi!!in&2 or imp!ement
or&ani5ation deve!opment pro&rams. 3/ese steps are aimed at reducin& or e!iminatin&
stressors for emp!oyees. Some emp!oyees can escape stress 1y re6uestin& =o1 transfers2
findin& a!ternative emp!oyment2 ta)in& ear!y retirement or ac6uirin& assertiveness s)i!!s
a!!o( t/em to confront t/e stressor.
Some peop!e experience stress 1ecause t/ey are detac/ed from t/e (or!d around
t/em2 t/ey !ac) (arm interpersona! re!ations/ips. Individua!s (it/ a drivin& am1ition and
a stron& need for independence may fai! to deve!op c!ose attac/ments to friends and
co!!ea&ues. 3o ac/ieve t/eir success2 t/ey often sacrifice fu!fi!!ment to t/eir socia! needs.
3/eir !ac) of socia! attac/ments may resu!t in an&er2 anxiety2 and !one!iness- a!!
producin& stress in t/eir !ives.
STRESS AND >OB PERFORMANCE
Stress can 1e eit/er /e!pfu! or /armfu! to =o1 performance2 dependin& on its !eve!.
I/en t/ere is no stress2 =o1 c/a!!en&es are a1sent and performance tends to 1e !o(. -s
stress increases2 performance tends to increase2 1ecause stress /e!ps a person ca!! up resources to meet
=o1 re6uirements. Constructive stress is a /ea!t/y stimu!us t/at encoura&es emp!oyees to respond to
c/a!!en&es. Eventua!!y2 stress reac/es a p!ateau t/at corresponds approximate!y (it/ a personEs top day to
day performance capa1i!ity. -t t/is point additiona! stress tends to produce no more improvement.
+ina!!y2 if stress 1ecomes too &reat2 it turns into a destructive force. erformance
1e&ins to dec!ine at some point 1ecause excess stress interferes (it/ performance. -n
emp!oyee !oses t/e a1i!ity to cope> s/e or /e 1ecomes una1!e to ma)e decisions and
ex/i1its erratic 1e/avior. If stress increases to a 1rea)in& point2 performance 1ecomes
5ero> t/e emp!oyee /as a 1rea)do(n2 1ecomes too i!! to (or)2 is fired2 6uits2 or refuses to
come to (or) to face t/e stress.
STRESS MANAGEMENT
Is t/e need of t/e /our. ?o(ever /ard (e try to &o 1eyond a stress situation2 !ife
seems to find ne( (ays of stressin& us out and p!a&uin& us (it/ anxiety attac)s.
#oreover2 1e it our anxiety2 mind-1ody ex/austion or our errin& attitudes2 (e tend to
over!oo) causes of stress and t/e conditions tri&&ered 1y t/ose. In suc/ unsett!in&
moments (e often for&et t/at stressors2 if not escapa1!e2 are fair!y mana&ea1!e and
treata1!e.
Stress2 eit/er 6uic) or constant2 can induce ris)y 1ody-mind disorders. Immediate
disorders suc/ as di55y spe!!s2 anxiety attac)s2 tension2 s!eep!essness2 nervousness and
musc!e cramps can a!! resu!t in c/ronic /ea!t/ pro1!ems. 3/ey may a!so affect our
immune2 cardiovascu!ar and nervous systems and !ead individua!s to /a1itua! addictions2
(/ic/ are inter-!in)ed (it/ stress.
.i)e Fstress reactionsF2 Fre!axation responsesF and stress mana&ement tec/ni6ues
are some of t/e 1ody<s important 1ui!t-in response systems. -s a re!axation response t/e
1ody tries to &et 1ac) 1a!ance in its /omeostasis. Some /ormones re!eased durin& t/e
<fi&/t or f!i&/t< situation prompt t/e 1ody to rep!ace t/e !ost car1o/ydrates and fats2 and
restore t/e ener&y !eve!. 3/e )notted nerves2 ti&/tened musc!es and an ex/austed mind
crave for !ooseners. 8nfortunate!y2 today2 (e don<t &et re!axin& and soot/in& situations
(it/out as)in&. 3o 1e re!axed (e /ave to strive to create suc/ situations
S#$'44 +4 *D04+&/.
I/en t/e &oa!)eeper or t/e 1atsman or t/e tennis p!ayer experiences Eustress2
t/ere are c/an&es in t/e p/ysica! system. 3/e musc!es 1ecome tense. 3/e eyes 1ecome
s/arper. I/en one is under severe distress2 as in t/e case of -r=una in Auru)s/etra2 t/e
person s(eats2 t/e 1ody 1ecomes (ea) and !oses stren&t/.
Study of stress s/o(s t/at t/e response is t/e same (/et/er it is Eustress or
9istress2 except t/at t/e de&ree varies. 3/e response is ca!!ed t/e +i&/t or +!i&/t response.
I/en one senses dan&er2 one is tempted to eit/er stand and fi&/t to (ard off t/e dan&er
or run a(ay U +!i&/t. 3/e 1ody conditions itse!f for eit/er event2 automatica!!y2 causin&
c/an&es in t/e norma! secretions of /ormones and ot/er c/emica!s2 (it/dra(in& from
activities t/at are !ess important and divertin& to activities t/at s/ou!d /ave /i&/er
priority in t/at situation.. +ood is !ess important. 3/e musc!es need more ener&y and
t/erefore t/e 1!ood carries su1stances to t/e musc!es2 divertin& t/em from t/e stomac/.
#ore oxy&en t/an norma! is re6uired. 3/erefore2 t/e 1reat/in& 1ecomes faster2 t/e /eart-
1eat rate increases2 t/e 1!ood vesse!s di!ate to carry more oxy&en. 3/e !iver re!eases more
stored ener&y. 3/e eyes and ears 1ecome more acute!y sensitive to t/e sensations from
outside.
3/e 1ody is pro&rammed to reverse t/ese c/an&es2 and revert to norma!2 (/en t/e
t/reat disappears. If /o(ever2 one remains in a continuous state of stress2 (it/out
1ecomin& norma!2 t/e c/an&ed conditions tend to remain permanent2 !i)e a ru11er 1and
!oses its e!asticity (/en /e!d extended for a !on& time. 3/ese a1norma! conditions
manifest as diseases and one suffers from /i&/ 1!ood pressure2 cardiac disorders2 peptic
u!cers2 insomnia2 constipation2 fati&ue2 co!itis2 )idney pro1!ems2 etc. 0e/avioura!!y2 t/ey
!ead to a1senteeism2 a!co/o!ism2 use of dru&s2 marita! dis/armony and so on2 (/ic/ are
1ot/ or&anisationa!!y and socia!!y2 undesira1!e
Stress is psyc/o!o&ica!
Stress is experienced (/en one perceives a t/reat and t/e fi&/t or f!i&/t response
is ca!!ed for. 3/is perception is an interpretation t/at one ma)es (it/in onese!f2 of t/e
externa! factors. I/en one sees a do& on t/e street 1arin& its teet/2 one may eit/er &et
fri&/tened or remain ca!m. 0ot/ fri&/t and ca!mness are psyc/o!o&ica! reactions. 3/e
c/oice is oneEs o(n and is not dictated 1y t/e do&. 3/is c/oice is made2 !ar&e!y
unconscious!y2 on t/e 1asis of oneEs 1e!iefs a1out do&s in &enera!2 (/at one /as /eard
a1out ra1ies 1ein& caused 1y do& 1ites2 (/at one sees a1out t/e c/aracteristics of t/e do&
in 6uestion at t/at time2 oneEs predi!ections to(ards anima!s2 and so on.
I/en one 1ecomes anxious in a situation2 t/e situation does not create any
anxiety. I/at one t/in)s a1out t/e situation creates t/e anxiety. If one is confident of
tac)!in& t/e situation2 t/ere is no anxiety. 3/erefore2 t/e !eve! of stress is caused 1y oneEs
o(n perception of oneEs capa1i!ity to cope (it/ t/e situation. 3/us2 stress is a
psyc/o!o&ica! response2 dependin& upon oneEs !eve! of fear2 confidence2 anxiety2 an&er2
/urt2 etc. 3/e p/ysica! response is an automatic se6ue! to oneEs psyc/o!o&ica! condition.
3/e p/ysica! c/an&es depend on t/e extent of fear or confidence etc. 3/erefore2 t/e
mana&ement of stress essentia!!y is in t/e contro! one /as on oneEs emotions.
S#$'44($4
Stress is not caused 1y any externa! factor. It is created 1y onese!f2 1y t/e (ay one
t/in)s a1out t/e externa! factors. Get t/ere are situations2 in (/ic/ most peop!e tend to &et
stressed. 3/ese are ca!!ed stressors. In persona! !ife2 deat/ of a c!ose re!ative is a stressor.
-n important test in !ife2 !i)e a fina! examination; a transfer of residence; separation due
to marria&e2 divorce or c/an&e of =o1; difficu!t financia! demands; serious i!!ness;
!i)e!i/ood of unp!easant secrets 1ecomin& revea!ed; are common stressors. ?avin& to
(e!come and entertain important visitors or /avin& to de!iver a speec/ for t/e first time2
a!so cause considera1!e stress. -t (or)2 t/e fo!!o(in& may 1e stressors.2
• Needs not met. 3/ese cou!d 1e needs for po(er2 for fu!fi!!ment2 for use of
)no(!ed&e
• Not 1ein& inc!uded 1y ot/ers as part of a &roup you (ant to 1e!on& to
• Not 1ein& reco&ni5ed or va!ued for oneEs competence
• +ee!in& t/at one is not ade6uate for t/e tas)2 particu!ar!y (/en compared to some
one e!se
• 0ein& denied (/at is due Bre(ards2 (or)C
• #onotony or 1oredom
• Not /avin& enou&/ freedom at (or)2 1ein& c!ose!y supervised
• Ine6uity in re(ards2 assi&nments
• "ery !itt!e opportunity for &ro(t/
• 3oo muc/ of (or)2 over!oad
• 3oo !itt!e (or)2 1oredom
• Inade6uate resources to do t/e assi&ned (or)2 creatin& possi1i!ities of fai!ures
• Conf!ict in va!ues at (or)2 1ein& re6uired to do (/at one does not !i)e to do
• 3oo many and conf!ictin& demands at (or) from t/e ro!e set
• 7esponsi1i!ities not c!ear2 am1i&uity on (/at is expected
• 8n understandin&2 unpredicta1!e2 temperamenta! 1oss
• Ne( unfami!iar (or)
• 0ein& 1!amed
• @n c!ose ana!ysis2 it (i!! 1e found t/at a!! of t/e a1ove situations are2 in some (ay
or ot/er2 causin& perceptions of possi1!e fai!ure at (or) or non-reco&nition and
conse6uent !oss of se!f-esteem.
It is important to reco&ni5e (/et/er you are under stress or out of it. #any times2
even if (e are under t/e inf!uence of a stressfu! condition and our 1ody reacts to it
interna!!y as (e!! as externa!!y2 (e fai! to rea!i5e t/at (e are reactin& under stress. 3/is
a!so /appens (/en t/e causes of stress are t/ere !on& enou&/ for us to &et /a1ituated to
t/em. 3/e 1ody constant!y tries to te!! us t/rou&/ symptoms suc/ as rapid pa!pitation2
di55y spe!!s2 ti&/t musc!es or various 1ody ac/es t/at somet/in& is (ron&. It is important
to remain attentive to suc/ symptoms and to !earn to cope (it/ t/e situations.
Ie cope 1etter (it/ stressfu! situation2 (/en (e encounter t/em vo!untari!y. In
cases of a re!ocation2 promotion or !ayoff2 adventurous sports or /avin& a 1a1y2 (e tend
to respond positive!y under stress. 0ut2 (/en (e are compe!!ed into suc/ situations
a&ainst our (i!! or )no(!ed&e2 more often t/an not2 (e (i!t at t/e face of un)no(n and
ima&ined t/reats. +or instance2 stress may mount (/en one is coerced into underta)in&
some (or) a&ainst one<s (i!!.
L'8'.4 (3 S#$'44: TD'$' /$' 3(%$ 1/4+& .'8'.4 (3 4#$'44 40)*#()4.
1. 3/e first is t/e norma! initia! response and is c/aracteri5ed 1y increased /eart 1eat
rates2 increased 1!ood pressure2 di!ation of pupi!s2 s(eat in pa!ms and reduced
activity in t/e stomac/.
2. -t t/e second !eve!2 t/ere is more irrita1i!ity2 stutterin& and stammerin&2 difficu!ty
in concentratin&2 rest!essness2 !ac) of appetite and tendency to increased smo)in&
or drin)in& for t/ose so /a1ituated.
3. -t t/e t/ird !eve!2 t/ere (ou!d 1e more /eadac/es2 stomac/ac/es2 diarr/ea2
s(eatin&2 insomnia2 depression etc.
4. 3/e fourt/ !eve! (ou!d 1e c/aracteri5ed 1y u!cers2 stro)e2 a!co/o!ism2 dru&
addiction2 psyc/osis etc.
CAUSES OF STRESS
-n important first step in prevention is to examine t/e causes of stress. Conditions
t/at tend to cause stress are ca!!ed stressors. -!t/ou&/ even a sin&!e stress may cause
ma=or stress2 usua!!y stressors com1ine to pressure an emp!oyee in a variety of (ays unti!
stress deve!ops. -!most any =o1 condition can cause stress2 dependin& on an emp!oyeeEs
reaction to it. +or examp!e2 one emp!oyee (i!! accept a ne( (or) procedure and fee! !itt!e
or no stress2 (/i!e anot/er experiences over(/e!min& pressure from t/e same tas).
art of t/e difference !ies in eac/ emp!oyeeEs experiences2 &enera! out!oo)s2 and
expectations2 fre6uent!y cause stress for emp!oyees.
Ior) over!oad and time dead!ines put emp!oyees under pressure can !ead to
stress. @ften t/ese pressures arise from mana&ement2 and a poor 6ua!ity of mana&ement
can cause stress. Examp!es of stress producin& factors re!ated to mana&ement are an
autocratic supervisor2 an insecure =o1 c!imate2 !ac) of contro! over oneEs o(n =o12 and
inade6uate aut/ority to matc/ oneEs responsi1i!ities. #any t/in&s can tri&&er t/e stress
reaction2 inc!udin& dan&er2 t/reat2 ne(s2 i!!ness2 as (e!! as si&nificant c/an&es in one<s
se!f-identification as a 3ype - or as a 3ype 0 persona!ity
TYPICAL CAUSES OF STRESS ON THE >OB
• Ior) @ver!oad
• 3ime pressures
• oor 6ua!ity of supervision
• Insecure =o1 c!imate
• .ac) of persona! contro!
• Inade6uate aut/ority to matc/ responsi1i!ities
• 7o!e conf!ict and am1i&uity
• 9ifferences 1et(een company and emp!oyee va!ues
• C/an&e of any type2 especia!!y (/en it is ma=or or unusua!
• +rustration
• 3ec/no!o&y (it/ trainin& or support
S+-,4 (3 S#$'44
-!t/ou&/ perception is a part of stress2 stress is rea!. 3/ere are more t/an a fe(
(ays a person can react to stress. 3/e reactions fa!! into t/ree cate&ories> t/ou&/ts2
fee!in&s and 1e/aviors. Stressfu! t/ou&/ts invo!ve (/atEs &oin& on in your /ead (/en
you are stressed out. Some of t/e t/ou&/ts a person mi&/t /ave inc!ude t/e fo!!o(in&>
• .o( se!f-esteem
• +ear of fai!ure
• Ina1i!ity to concentrate
• Em1arrassin& easi!y
• Iorryin& a1out t/e future
• reoccupation (it/ t/ou&/tsDtas)s
• +or&etfu!ness
Emotiona! stress can cause a person to /ave fee!in&s of anxiousness2 fear2 an&er or even
t/e V1!ues.T
Stress sometimes 1rin&s out un(anted 1e/aviors too. 3/e fo!!o(in& is a !ist of
stressfu! 1e/aviors>
• -ctin& on a (/im
• 0ein& accident prone
• Cryin& for no apparent reason
• 4rindin& your teet/
• .au&/in& in a /i&/ pitc/ and nervous tone of voice
• Increasin& smo)in&
• Increasin& use of dru&s and a!co/o!
• Stutterin& and ot/er speec/ difficu!ties
In addition to stressfu! fee!in&s2 1e/aviors and t/ou&/ts2 p/ysio!o&y2 (/ic/ refers
to t/e (ay t/at t/e /uman 1ody reacts c/emica!!y and p/ysica!!y to stress2 can a!so cause
pro1!ems. Stress can manifest itse!f menta!!y and p/ysica!!y. +o!!o(in& are some of t/e
indicators of a stressed-out person>
• erspiration Ds(eaty /and.
• Increased /eart 1eat
• 3rem1!in&
• 9ryness of t/roat and mout/
• 3irin& easi!y
• 8rinatin& fre6uent!y
• S!eepin& pro1!ems
• 9iarr/ea D indi&estion D vomitin&
• 0utterf!ies in stomac/
• ?eadac/es
• remenstrua! tension
• ain in t/e nec) and or !o(er 1ac).
• .oss of appetite or overeatin&
• Suscepti1i!ity to i!!ness
WHAT ARE THE SYMPTOMS OF STRESSB
PD04+&/. 40)*#()4
/ysica! symptoms can 1e caused 1y ot/er i!!nesses2 so it is important to /ave a
medica! doctor treat conditions suc/ as u!cers2 compressed dis)s2 or ot/er p/ysica!
disorders. 7emem1er2 /o(ever2 t/at t/e 1ody and mind are not separate entities. 3/e
p/ysica! pro1!ems out!ined 1e!o( may resu!t from or 1e exacer1ated 1y stress>
• s!eep distur1ances
• 1ac)2 s/ou!der or nec) pain
• tension or mi&raine /eadac/es
• irre&u!ar /eart1eat2 pa!pitations
• ast/ma or s/ortness of 1reat/
• c/est pain
E)(#+(,/. 40)*#()4
.i)e p/ysica! si&ns2 emotiona! symptoms suc/ as anxiety or depression can mas)
conditions ot/er t/an stress. It is important to find out (/et/er t/ey are stress-re!ated or
not. In eit/er case2 t/e fo!!o(in& emotiona! symptoms are uncomforta1!e and can affect
your performance at (or) or p!ay2 your p/ysica! /ea!t/2 or your re!ations/ips (it/ ot/ers>
• nervousness2 anxiety
• depression2 moodiness
• V1utterf!iesT
• irrita1i!ity2 frustration
• memory pro1!ems
• !ac) of concentration
R'./#+(,/. 40)*#()4
3/e antisocia! 1e/avior disp!ayed in stressfu! situations can cause t/e rapid
deterioration of re!ations/ips (it/ fami!y2 friends2 co-(or)ers2 or even stran&ers. -
person under stress may manifest si&ns suc/ as>
• increased ar&uments
• iso!ation from socia! activities
• conf!ict (it/ co-(or)ers or emp!oyers
• fre6uent =o1 c/an&es
• road ra&e
• domestic or (or)p!ace vio!ence
• overreactions
STRESS AT WOR"PLACE
It is not possi1!e to remove t/e pressures at (or) 1ut one can definite!y reduce
pressure2 (/ic/ in turn ta)es form of stress and furt/er s/apes itse!f as ai!ments 1y
ena1!in& peop!e
Stress in t/e (or)p!ace is 1ecomin& a ma=or concern for emp!oyers2 mana&ers and
&overnment a&encies2 o(in& to t/e @ccupationa! ?ea!t/ and Safety !e&is!ations re6uirin&
emp!oyers to practice Rduty of careE 1y providin& emp!oyees (it/ safe (or)in&
environments (/ic/ a!so cover t/e psyc/o!o&ica! (e!!1ein& of t/eir staff.
@ne of t/e costs2 for emp!oyers2 of (or) p!ace stress is a1senteeism2 (it/ t/e
-.C.3.8. reportin& t/at o(in& to stress2 near!y fifty per cent of emp!oyees surveyed /ad
ta)en time off (or). @t/er ne&ative effects (ere reductions in productivity2 reduced
profits2 accidents2 /i&/ rates of sic)ness2 increased (or)ersE compensation c!aims and
/i&/ staff turnover2 re6uirin& recruitin& and trainin& of rep!acement staff.
I/i!e a certain amount of stress is needed to motivate individua!s into action2
pro!on&ed stress can /ave a /u&e impact on overa!! /ea!t/. #ore t/an t(o-t/irds of visits
to doctorsE sur&eries are for stress-re!ated i!!nesses. Stress /as 1een !in)ed to /eadac/es2
1ac)ac/es2 insomnia2 an&er2 cramps2 e!evated 1!ood pressure2 c/ronic fati&ue syndrome2
fi1romya!&ia and !o(ered resistance to infection. +or (omen2 stress is a )ey factor in
/ormona! im1a!ances resu!tin& in menstrua! irre&u!arities2 #S2 fi1roids2 endometriosis
and ferti!ity pro1!ems. Stress can a!so 1e a factor in t/e deve!opment of a!most a!! disease
states inc!udin& cancer and /eart disease.
Eac/ profession /as its o(n uni6ue factors t/at may cause stress; 1e!o( are some
causes of stress t/at cross many professions>
W Increased (or)!oad
W @r&ani5ationa! c/an&es
W .ac) of reco&nition
W ?i&/ demands
W .ac) of support
W ersona! and fami!y issues.
W oor (or) or&ani5ation
W .ac) of trainin&
W .on& or difficu!t /ours
W inade6uate staff num1ers and resources
W oor mana&ement communication
W .ac) of contro! or input
Ior)p!ace stress is on t/e rise and its costin& corporate -merica a fortune. Some
estimate t/at '0: of /ea!t/ care costs are stress re!ated2 and t/ese expenses &o ri&/t to
t/e 1ottom !ine.
-ccordin& to CNN-#oney.com2 -mericans spent more t/an H1% 1i!!ion for anti-
depressants and anti- anxiety dru&s in 20022 up 10: from t/e year 1efore and near!y 30:
over a t(o-year period.
3/e Institute for #ana&ement Exce!!ence reports t/at -merican industry spends
more t/an H2$ 1i!!ion eac/ year for medica! 1i!!s and disa1i!ity payments (it/ anot/er
H10 1i!!ion for executive<s !ost (or)days2 /ospita!i5ation2 and ear!y deat/.
In addition to t/ese sta&&erin& fi&ures2 stress ta)es its to!! t/rou&/ t/e added costs of
6ua!ity contro!2 !e&a! c/a!!en&es2 !ost opportunities2 poor performance2 1ad attitudes2 and
trainin&.
Ie cannot do muc/ a1out t/e s)yroc)etin& costs of medica! care and prescription
dru&s2 1ut (e can ta)e immediate action to contro! t/e top ten causes of stress as
identified 1y 3/e 4!o1a! 0usiness and Economic 7oundta1!e on -ddiction and #enta!
?ea!t/.
TD' C(%,#2(C, +4:
10. FIor)!oadF U Emp!oyees report t/at t/ey are often stressed (/en t/ey /ave too !itt!e
or too muc/ to do. #ana&ers need to divide responsi1i!ities and /e!p emp!oyees prioriti5e
(or) t/at must 1e done. #a)e sure you understand t/e impact 1efore s/iftin&
responsi1i!ities. 3a)e into account t/e cost of stress 1efore you increase anyoneEs
(or)!oad or /ire more peop!e.
*. F7andom interruptionsF - 3e!ep/ones2 pa&ers2 (a!)-in visits2 and spontaneous demands
from supervisors a!! contri1ute to increased stress. 3ime mana&ement2 de!e&ation of
responsi1i!ities2 and c!arification of expectations can reduce t/ese stressors.
'. Fervasive uncertaintyF U Stress !eve!s increase rapid!y (/en peop!e are confronted 1y
ne( re6uirements and procedures. Aeepin& peop!e informed contro!s stress and increases
productivity. ut detai!s in a memo so t/ey can revie( t/e facts fo!!o(in& your
exp!anations.
%. F#istrust and unfairnessF - 3/ese situations )eep everyone on ed&e2 create 1ad
attitudes2 and !o(er productivity. It is important to )eep an open !ine of communication to
avoid misunderstandin& and )no( (/at peop!e are t/in)in& a1out your decisions.
#ana&ers must consistent!y 1ui!d trust and &ive e6ua! treatment - =ust do t/e ri&/t t/in&.
$. F8nc!ear po!icies and no sense of directionF - .ac) of focus causes uncertainty and
undermines confidence in mana&ement. Gou need more t/an a (e!!-(ritten po!icy
manua!. Enforcement of po!icies and c!ear communications are essentia!.
3o ma)e sure everyone &ets t/e messa&e2 you can repeat your exp!anation in a variety of
(ays U repetition and feed1ac) are important. 7einforce po!icies t/rou&/ memos2 artic!es2
1u!!etin 1oard postin&s2 persona! meetin&s2 and sma!! &roup discussions.
5. FCareer and =o1 am1i&uityF - If peop!e are uncertain a1out t/eir =o1s and careers2 t/ere
is a fee!in& of /e!p!essness and of 1ein& out of contro!. In addition to t/e trusted =o1
descriptions and annua! personne! revie(s2 peop!e need to understand a 1road ran&e of
issues t/at affect t/e company.
Ne(s of mer&ers2 conso!idations2 p!ant c!osin&s2 and restructurin& contri1ute to a fee!in&
of /e!p!essness. #ana&ement must )eep peop!e informed a1out situations t/at (i!! affect
t/eir =o1s2 or t/e rumor mi!! (i!! add to an a!ready stressfu! situation.
4. FNo feed1ac) - &ood or 1adT U eop!e (ant to )no( (/et/er t/ey are meetin&
expectations. Consistent2 (ritten and ver1a!2 persona!i5ed feed1ac) is re6uired. Some
peop!e need more attention t/an ot/ers2 1ut everyoneEs performance is en/anced if
!eaders fre6uent!y affirm individua! efforts.
3. FNo appreciationT - +ai!ure to s/o( appreciation &enerates stress t/at endan&ers
productivity t/rou&/out t/e company. 3/ere are many (ays to demonstrate appreciation2
1ut t/e most effective is a sincere comment a1out /o( muc/ t/e person means to you and
t/e company.
2. F.ac) of communicationsF - oor communication !eads to decreased performance and
increased stress. #ana&ement memos and announcements (or) (e!! for distri1utin&
information2 1ut t(o-(ay conversation improves communication and so!icits ideas and
su&&estions (/i!e reducin& stress and comp!aints.
1. V.ac) of contro!T U Ior)p!ace stress is at its &reatest (/en emp!oyees /ave no say
re&ardin& t/in&s t/at affect t/em. Gou can decrease sensitivity to a!! t/e ot/er stressors
and &ive a sense of 1ein& in contro! 1y invo!vin& emp!oyees in operatin& and
administrative decisions are actin& on t/eir input. +ront!ine emp!oyees )no( (/at t/ey
are ta!)in& a1out. .istenin& to (/at t/ey /ave to say reduces stress and increases
productivity.
MANAGING STRESS
Stress cannot 1e avoided. It s/ou!d not 1e avoided. Iit/out stress2 t/ere (i!! 1e
no attempt to try t/e difficu!t. @ne (i!! &ive up muc/ too easi!y. @ne (i!! not succeed in
doin& even (/at one is easi!y capa1!e of2 1ecause even t/e norma! facu!ties (i!! not come
into p!ay - !i)e t/e &oa!)eeper2 if /e remained re!axed even at t/e !ast minute.
3/ere are t(o aspects to ta)e care of in mana&in& stress. @ne is t/at one s/ou!d
not deve!op stress to t/e point t/at one 1ecomes non-functiona! !i)e -r=una !ayin& do(n
/is arms. 3/e second is to try to &et 1ac) to norma! as 6uic)!y as one can and not
continue to 1e in a state of stress for too !on&.
3/e former is ac/ieved essentia!!y 1y an attitude t/at is deve!oped 1y rationa!
t/ou&/ts. 3/e first is to rea!i5e t/at oneEs perceptions often distort t/e rea!ity. 3/e
situation may not 1e as 1ad as it may seem to 1e. 3/e second is to understand t/at a
fai!ure is not an unmiti&ated disaster. It is not possi1!e to succeed a!! t/e time. It is not
even necessary to succeed a!! t/e time. @ne fai!ed effort does not mean t/at t/e person is
no &ood. No1ody /as succeeded (it/out many !osses. Even Ior!d c/ampions sometimes
!ose a first round matc/ to an unseeded p!ayer. #arconi and 3/omas -!va Edison
succeeded in t/eir inventions after many attempts t/at fai!ed. 3/ey sa( fai!ures as
opportunities to !earn.
3/e t/ird is to reco&ni5e t/at (orry and anxiety (i!! not modify t/e situation2 1ut
(i!! on!y distur1 oneEs peace of mind and /ea!t/. If one (atc/es passen&ers at airports
and rai!(ay stations2 one (i!! find /o( some of t/em remain 6uite re!axed and even
s!eepin& (/i!e ot/ers are continuous!y ma)in& en6uiries from officia!s a1out extent and
causes of de!ays. Suc/ constant en6uiries on!y irritate2 1ut do not expedite so!utions.
3/ey add to stress of se!f and of ot/ers.
-not/er very va!id concept is (/at is postu!ate in t/e 4ita. Gou can on!y do. 3/e
resu!ts are not in your /ands. 3/e resu!ts2 ca!!ed fai!ures or successes are in t/e future.
@ne does not /ave contro! on t/e future. @ne can ac6uire some contro! on t/e present and
t/at is (/at one does. -!so t/e success or fai!ure does not depend on!y on (/at one does.
#any ot/er factors impin&e. 3/erefore2 t/e 4ita proposes2 do your duty and do not (orry
a1out (/at t/e conse6uences or fruits may 1e. @n!y t/ou&/ts a1out t/e possi1!e
desira1i!ity of t/e fruits cause anxieties. #ot/er 3eresa /ad expressed t/e same t/ou&/t2
(/en s/e is reported to /ave said to t/e industria!ist #r J.7.9.3ata2 F I/y are you
(orryin& a1out povertyL Gour (or) is to open more industries2 &ive more emp!oyment to
peop!e and !eave t/e rest to 4od.F.
- situation t/at causes stress is a pro1!em situation. 3/e so!ution needs &eneratin&
mana&eria! options. eop!e !ose tempers and a1use officia!s as a resu!t of stress. None of
t/ese so!ve t/e pro1!ems t/at may exist. ro1!em so!vin& needs ca!m2 c!ear2 ana!ytica!
t/in)in&. C!arity of t/ou&/t and ana!ysis improves (it/ Eustress and deteriorates (it/
9iStress. #ana&eria! a!ternatives and options (i!! 1e seen (/en one Ris concernedE (it/
t/e matter2 not (/en one is RanxiousE.
-n a(areness t/at not/in& (i!! 1e perfect and t/at anyt/in& t/at can &o (ron&
(i!! &o (ron&2 /e!ps to cope (it/ t/e stress situations. eop!e (/o demand of t/emse!ves
Exce!!ence a!(ays2 are !i)e!y to deve!op /i&/ stress. erfection is not necessary. It may
a!so not 1e possi1!e. Satisfyin& is often t/e on!y avai!a1!e option.
-t (or) one must !earn to de!e&ate. #any peop!e 1e!ieve t/at t/ey a!one can do
certain tas)s. 3/e &o!den ru!e is to ma)e t/is statement inva!id as 6uic)!y as possi1!e.
Stress is on!y one reason for doin& so. 3/e positive outcomes are many. -s one rises in
t/e /ierarc/y2 it (ou!d 1e impossi1!e to do a!! t/e =o1s t/at /ave to 1e done. @ne needs to
pass on to ot/ers. 3ime spent in ma)in& t/is /appen2 is &ood investment for t/e future.
4ettin& 1ac) to norma! is re!ative!y easy. @ne on!y /as to &et oneEs mind into a
condition in (/ic/ t/ere is no stress. -ny p!easant activity (i!! ma)e t/is possi1!e.
?o11ies /e!p. 3/e practice of Go&a is exce!!ent to re!ax oneEs 1ody and mind. Stress is
re!ieved (/en one can s/are oneEs t/ou&/ts and fee!in&s (it/ someone e!se. 4ood tunes
and ra&as2 !i)e in 1/a=ans and &/a5a!s2 /ave t/e capacity to soot/e oneEs nerves2 even if
one is not !istenin&.
@ut!ines t/e individua! and or&ani5ationa! impacts of stress Identifies various
interventions desi&ned to reduce stress Covers emp!oyee re/a1i!itation fo!!o(in& !on&-
term a1sence Exp!ains emp!oyers< !e&a! duties and o1!i&ations +eatures six detai!ed
company case studies settin& out a variety of approac/es to stress mana&ement Stress is
t/e !ar&est sin&!e cause of !on&-term a1sence amon& (/ite-co!!ar (or)ers in t/e 8A. It is
not surprisin&2 t/erefore2 t/at considera1!e efforts are no( 1ein& made to reduce its
impact in t/e (or)p!ace. Emp!oyers a!so /ave a !e&a! duty to conduct ris) assessments
and ta)e action (/enever emp!oyees are )no(n to 1e experiencin& stress.
In many or&ani5ations2 /o(ever2 stress sti!! remains a difficu!t issue to address. It
can 1e /ard to define and t/ere continues to 1e scepticism in certain 6uarters over t/e
aut/enticity of some emp!oyees< c!aims of fee!in& <stressed< at (or). Securin& top
mana&ement commitment 1y presentin& a sound 1usiness case is t/erefore vita! to
de!iverin& t/e necessary or&ani5ationa! infrastructure for a successfu! stress mana&ement
strate&y.
Identifyin& t/e main sources of stress remains t/e most effective first step in stress
mana&ement. 3/is provides a foundation for tar&etin& interventions at 1ot/ an individua!
and or&ani5ationa! !eve!2 suc/ as offerin& trainin& and support for mana&ers and
emp!oyees or &ivin& access to sources of /e!p suc/ as emp!oyee assistance pro&rammes.
It is inevita1!e2 /o(ever2 t/at some emp!oyees (i!! deve!op stress-re!ated i!!nesses
resu!tin& in !on&-term a1sence from (or). -t t/is sta&e2 /avin& a (e!!-structured
re/a1i!itation process in p!ace is essentia!.
- company practice section detai!s /o( six or&ani5ations are tac)!in& t/e issue of
stress mana&ement. 3/e Study a!so reports on t/e ?ea!t/ and Safety Executive<s (or) to
deve!op a set of <&ood practice< stress mana&ement standards2 (/i!e a separate four-pa&e
<Stress and t/e !a(< section summari5es emp!oyers< !e&a! o1!i&ations and duties.
-s t/e #ana&er> -s t/e 1oss2 one can ensure t/at su1ordinates are not put to
undue stress and a!so t/at t/ey are /e!ped to &et out of stress situations as 6uic)!y as
possi1!e. 3/e steps are
• 7eco&ni5e t/e stress !eve!s
• S/o( concern
• Encoura&e ta!)in&
• .isten
• Empat/ise
• Exp!ain and s/o( /o( it can 1e done
• 7eassure
• rovide support
• 9iscuss and invo!ve t/em in decisions
• S/o( respect to t/e individua!s
• -void insu!t2 denunciation2 a1use2 reprimand2 particu!ar!y in pu1!ic
• -void manipu!ation2 coercion2 1!amin&
• -void pressuri5in& too muc/
• rovide socia! support
-!! t/e a1ove2 render support and /e!p to reduce anxieties. It is not su&&ested t/at
t/e demands on peop!e s/ou!d 1e !o(ered. eop!e !i)e c/a!!en&es. 3/ey must 1e &iven
c/a!!en&in& assi&nments. 3/at is t/e on!y (ay to &ro(t/. 0ut if t/ere is a sensin& of
extreme stress2 it s/ou!d 1e mana&ed t/rou&/ reassurance2 not 1y (it/dra(in& t/e
assi&nment.
P'$4(,/.+#0 T0*'4
Studies on Stress /ave identified t/at 3ype - persona!ities tend to &et stressed
muc/ faster t/an 3ype 0 persona!ities. 3/e c/aracteristics of a 3ype - persona!ity are an
intense ur&e to ac/ieve2 impatience and rest!essness2 a!(ays on t/e move2 /urryin&2 doin&
more t/an one tas) at a time. ?e )eeps a /eavy and ti&/t sc/edu!e and dis!i)es (aitin&
and re!axin&. 3/e 3ype 0 is exact!y t/e opposite2 ta)es t/in&s easy2 finds time to re!ax2 is
not impatient and is not o1sessed (it/ (innin& a!! t/e time.
Instruments /ave 1een deve!oped to identify t/e 3ype of any person. 0ut no one is
fu!!y 3ype - or fu!!y 3ype 0. It is possi1!e to move from one type to anot/er. It is not as if
3ype 0 is t/e more desira1!e persona!ity2 1ecause stress is not t/e on!y factor re!evant for
effectiveness. -c/ievement is e6ua!!y important for effectiveness and t/ere t/e 3ype -
/as a 1etter c/ance to (in.
T+)' M/,/-')',#
Inade6uacy of resource is a common stressor. @ne needs resources to do a =o1 and
if t/e resource is not avai!a1!e2 t/ere cou!d 1e stress. @ne important resource is 3ime.
#any peop!e find t/at t/ey do not /ave enou&/ time to do a =o1. 9ead!ines seem to 1e
difficu!t to meet. 3/is is true of individua!s as (e!! as of co!!ectives. Ie read of
committees as)in& for extension of time to do t/eir =o1s; of pro=ects not 1ein& comp!eted
on time. 8nfortunate!y2 time is suc/ a resource t/at no1ody can &ive more or ta)e a(ay.
Every1ody /as a definite amount of time avai!a1!e. Studies s/o( t/at peop!e are poor
p!anners in terms of usa&e of time as a resource. 3ime is (asted in a num1er of (ays.
3/erefore2 if one !earns (ays to mana&e oneEs time 1etter2 t/ere cou!d 1e a 1etter contro!
on stress.
3ime is (asted 1ecause of
• Non-productive (or) !i)e searc/in& for fi!es2 papers and references.
• -vai!a1!e information 1ein& inade6uate or incomp!ete
• #eetin&s and !en&t/y reports
• Indecisiveness2 una1!e to ma)e up oneEs mind
• Correctin& errors in instructions2 assi&nments
• C!arifyin& &oa!s and ro!es
• 3oo muc/ routine2 paper(or)
• .ac) of prioriti5ation
nce t/e cause is )no(n2 t/e remedy s/ou!d 1e o1vious. 3/e 1est (ay to )no( t/e
cause is to )eep a detai!ed !o& of /o( one is usin& /is time over a period of a (ee) or so.
Some of t/e remedies (i!! 1e in t/e nature of read=ustments of persona! /a1its2 !i)e
p!annin& on priorities2 avoidin& drift in meetin&s2 not insistin& on perfectionism etc.
Some remedies (i!! 1e in t/e nature of reor&ani5in& (or) systems in t/e office so t/at
searc/ and corrections are made minima!. Some (i!! 1e in t/e nature of trainin& ot/ers for
1etter (or) practices2 so t/at supervision can 1e !ess.
Indecisiveness /as 1een mentioned as a time (aster. 3/is may /appen 1ecause of
!ac) of c!arity on o1=ectives or 1ecause of fati&ue and t/e mind not 1ein& a1!e to
concentrate. 0ot/ are avoida1!e. Indecisiveness can a!so /appen 1ecause of !ac) of
)no(!ed&e on t/e su1=ect. 3/e time one ta)es to study a matter depends on oneEs s)i!!.
Experienced peop!e run t/rou&/ a 100 pa&e fi!e2 (it/out readin& every pa&e2 1ut pic)in&
up t/e important and re!evant matter2 (/i!e anot/er may /ave to spend dou1!e t/e time
readin& every paper to determine its re!evance. 3/us2 one (ay to mana&e time 1etter is to
improve oneEs s)i!!s at (or)
7eco&ni5in& Stress> 3/e fo!!o(in& are indicators t/at you may 1e experiencin&
• 4enera! irrita1i!ity
• E!evated /eart rate
• Increased 1!ood pressure
• Increased accident proneness
• +!oatin& anxiety-anxious fee!in& for no specific reason
• 3rem1!in&
• Insomnia
• ?eadac/es
• Indi&estion
• ain in nec) andDor !o(er 1ac)
• C/an&es in appetite or s!eep pattern
+ina!!y2 if stress /as 1ecome too muc/ to /and!e2 see) /e!p. 9on<t !et t/e fear of
(/at ot/ers mi&/t say or t/in) stop you from doin& (/at<s 1est for you. If you t/in) you
mi&/t 1e depressed2 discuss your concern (it/ your fami!y doctor2 minister2 or a menta!
/ea!t/ professiona!2 (/o can !isten and /e!p you. If youEre afraid to &o a!one2 ta)e a
trusted friend (it/ you. Gou are not a!one. arents and friends may understand more t/an
you t/in) t/ey mi&/t2 and t/ey certain!y (ant you to fee! 1etter
3reatment and medications are avai!a1!e t/at can provide re!ief sometimes in a
fe( (ee)s. 3/e most common forms of treatment for depression are psyc/ot/erapy2
antidepressants or a com1ination of 1ot/. Gour /ea!t/ provider (i!! /e!p determine t/e
1est treatment for you.
WD', +4 4#$'44 / C/$,+,- 4+-,/.B
I/en it is part of a natura! reaction to c/a!!en&e or dan&er2 t/e 1odyEs response is
ca!!ed positive stress. ?o(ever2 (/en you fee! out of contro! or under intense pressure2
you may experience t/e p/ysica!2 emotiona!2 or re!ationa! symptoms 1rou&/t on 1y
ne&ative stress. 3/ese are t/e si&ns of stress t/at you need to reco&ni5e and contro!.
It is important to remain attentive to ne&ative stress symptoms and to !earn to
identify t/e situations t/at evo)e t/em. I/en t/ese symptoms persist2 you are at ris) for
serious /ea!t/ pro1!ems 1ecause stress can ex/aust your immune system. 7ecent researc/
demonstrates t/at *0: of i!!ness is stress-re!ated.
It is not possi1!e to !ive (it/out any stress. Ie can2 /o(ever2 !earn (ays to /and!e
t/e stress of dai!y !ife efficient!y2 and to mana&e our reactions to stress and minimi5e its
ne&ative impact.
WD0 4D(%.2 0(% .'/$, #( &(*' C+#D 4#$'44B
In t/e 1est of a!! possi1!e (or!ds2 (/en a stressfu! situation ends2 /ormona!
si&na!s s(itc/ off t/e stress response2 and t/e 1ody returns to norma!. 8nfortunate!y2
stress doesn<t a!(ays !et up. If you tend to /ar1or anxiety2 and you (orry a1out dai!y
events and re!ations/ips2 your stress response never s/uts do(n. Studies s/o( t/at !on&-
term activation of stress symptoms can /ave a /a5ardous2 even !et/a! effect on your 1ody.
I/en t/e si&ns of stress persist2 you are at ris) for many /ea!t/ pro1!ems t/at peop!e
often do not rea!i5e are2 in !ar&e part2 attri1uta1!e to stress2 suc/ as>
• @1esity
• ?eart disease
• Cancer
• 9epression
• -norexia nervosa or ma!nutrition
• @1sessive-compu!sive or anxiety disorder
• Su1stance a1use
H(C T( M/,/-' S#$'44 B'##'$B
Identifyin& unre!ieved stress and 1ein& a(are of its effect on our !ives is not
sufficient for reducin& its /armfu! effects. Just as t/ere are many sources of stress2 t/ere
are many possi1i!ities for its mana&ement. ?o(ever2 a!! re6uire (or) to(ard c/an&e>
c/an&in& t/e source of stress andDor c/an&in& your reaction to it. ?o( do you proceedL
• 0ecome a(are of your stressors and your emotiona! and p/ysica! reactions.
• Notice your distress. 9on<t i&nore it. 9on<t &!oss over your pro1!ems.
• 9etermine (/at events distress you. I/at are you te!!in& yourse!f a1out meanin&
of t/ese eventsL
• 9etermine /o( your 1ody responds to t/e stress. 9o you 1ecome nervous or
p/ysica!!y upsetL If so2 in (/at specific (aysL
R'&(-,+K' CD/# 0(% &/, &D/,-'.
• Can you c/an&e your stressors 1y avoidin& or e!iminatin& t/em comp!ete!yL
• Can you reduce t/eir intensity Bmana&e t/em over a period of time instead of on a
dai!y or (ee)!y 1asisCL
• Can you s/orten your exposure to stress Bta)e a 1rea)2 !eave t/e p/ysica!
premisesCL
Can you devote t/e time and ener&y necessary to ma)in& a c/an&e B&oa! settin&2
time mana&ement tec/ni6ues2 and de!ayed &ratification strate&ies may 1e /e!pfu!
/ereCL
R'2%&' #D' +,#',4+#0 (3 0(%$ ')(#+(,/. $'/&#+(,4 #( 4#$'44.
• 3/e stress reaction is tri&&ered 1y your perception of dan&er...p/ysica! dan&er
andDor emotiona! dan&er. -re you vie(in& your stressors in exa&&erated terms
andDor ta)in& a difficu!t situation and ma)in& it a disasterL
• -re you expectin& to p!ease everyoneL
• -re you overreactin& and vie(in& t/in&s as a1so!ute!y critica! and ur&entL 9o you
fee! you must a!(ays prevai! in every situationL
• Ior) at adoptin& more moderate vie(s; try to see t/e stress as somet/in& you can
cope (it/ rat/er t/an somet/in& t/at overpo(ers you.
• 3ry to temper your excess emotions. ut t/e situation in perspective. 9o not !a1or
on t/e ne&ative aspects and t/e F(/at if<s.F
• .earn to moderate your p/ysica! reactions to stress.
• S!o(2 deep 1reat/in& (i!! 1rin& your /eart rate and respiration 1ac) to norma!.
• 7e!axation tec/ni6ues can reduce musc!e tension. E!ectronic 1iofeed1ac) can
/e!p you &ain vo!untary contro! over suc/ t/in&s as musc!e tension2 /eart reate2
and 1!ood pressure.
• #edications2 (/en prescri1ed 1y a p/ysician2 can /e!p in t/e s/ort term in
moderatin& your p/ysica! reactions. ?o(ever2 t/ey a!one are not t/e ans(er.
.earnin& to moderate t/ese reactions on your o(n is a prefera1!e !on&-term
so!ution.
B%+.2 0(%$ *D04+&/. $'4'$8'4.
• Exercise for cardiovascu!ar fitness t/ree to four times a (ee) Bmoderate2
pro!on&ed r/yt/mic exercise is 1est2 suc/ as (a!)in&2 s(immin&2 cyc!in&2 or
=o&&in&C.
Eat (e!!-1a!anced2 nutritious mea!s.
• #aintain your idea! (ei&/t.
• -void nicotine2 excessive caffeine2 and ot/er stimu!ants.
• #ix !eisure (it/ (or). 3a)e 1rea)s and &et a(ay (/en you can.
• 4et enou&/ s!eep. 0e as consistent (it/ your s!eep sc/edu!e as possi1!e.
• #aintain your emotiona! reserves.
• 9eve!op some mutua!!y supportive friends/ipsDre!ations/ips.
• ursue rea!istic &oa!s2 (/ic/ are meanin&fu! to you2 rat/er t/an &oa!s ot/ers /ave
for you /at you do not s/are.
• Expect some frustrations2 fai!ures2 and sorro(s. -!(ays 1e )ind and &ent!e (it/
yourse!f -- 1e a friend to yourse!f.
SEVEN TIPS TO REDUCE STRESS AT WOR"
?ere are some tips t/at (i!! /e!p you ac/ieve success over stress. Gou can reduce
stress on t/e =o1.
1. I/en ma)in& p/one ca!!s2 as you pic) up t/e p/one and dia!2 ta)e t/ree s!o(
deep 1reat/s. Concentrate on pus/in& tension out of your !un&s as you ex/a!e.
2. Sit do(n to eat. B9o not eat (/i!e standin& or drivin& in your carC +ocus on
re!axin& and en=oya1!e ta!) at !unc/time. If co-(or)ers on!y insist on re/as/in&
a!! of t/e ne&ative stuff at (or)2 insist on eatin& a!one.
3. I/en you drive your car to your 1usiness or your =o12 !isten to somet/in&
en=oya1!e or motivatin&.
4. @n t/e (ay /ome from your 1usiness or your =o12 !isten to en=oya1!e or re!axin&
music.
5. 3a)e a fe( minutes eac/ day to t/an) 4od2 in (/atever form is consistent (it/
your 1e!ief system2 for t/e &!orious sunrise. -t sunset2 do t/e same. If you are at
(or) (/i!e t/e sun is settin&2 ta)e a 6uic) 1rea) to (atc/ t/e sun set and a&ain2
t/an) your concept of F4odF for t/e &!orious sunset.
$. 3a)e a fe( minutes at (or) to t/in) of peop!e (/o may /ave /armed you in any
(ay. 0reat/e deep!y2 re!ax2 and pus/ out a!! of t/e tension surroundin& t/ose
t/ou&/ts. +i!! your /ear and your !un&s (it/ for&iveness for t/e person or persons
(/o /ave /armed you. Iis/ for t/em t/e same success and /appiness you (is/
for yourse!f.
%. .ive today as if it (/ere your !ast day. #a)e your !ast day2 your 1est day
S#$'44 M/,/-')',# S#$/#'-+'4
3/e fo!!o(in& are tips on /o( to maintain a /ea!t/ier !ifesty!e and to prepare you to cope
(it/ t/e stress of everyday !ivin&.
• Structure eac/ day to inc!ude a minimum of 20 minutes of aero1ic exercise.
• Eat (e!!-1a!anced mea!s2 more (/o!e &rains2 nuts2 fruits and ve&eta1!es.
Su1stitute fruits for desserts.
• -void caffeine. 3/e su1stance may a&&ravate anxiety2 insomnia2 nervousness and
trem1!in&.
• 7educe refined su&ars. Excess su&ars cause fre6uent f!uctuation in 1!ood &!ucose
!eve!s2 addin& stress to t/e 1ody<s p/ysio!o&ica! functionin&.
• 7educe a!co/o! and dru&s. 3/ese su1stances may add to /eadac/es and s(e!!in&2
decrease copin& mec/anisms and add to depression.
G'# / .'/4# @ D(%$4 (3 4.''* ,+-D#.0.
• Spend time eac/ day (it/ at !east one re!axation tec/ni6ue - ima&ery2
daydreamin&2 prayer2 yo&a or meditation.
• 3a)e a (arm 1at/ or s/o(er.
• 4o for a (a!).
S'8', S%&&'443%. S#$'44 M/,/-')',# T'&D,+G%'4
#ana&e your stress and 1e a /ea!t/ier2 /appier and more p!easant person to 1e
around. .etEs cut to t/e c/aseM
1. M/<' 4#$'44 0(%$ 3$+',2
-c)no(!ed&e t/at stress is &ood and ma)e stress your friendX 0ased on t/e 1odyEs
natura! Vfi&/t or f!i&/tT response2 t/at 1urst of ener&y (i!! en/ance your
performance at t/e ri&/t moment. IEve yet to see a top sportsman tota!!y re!axed
1efore a 1i& competition. 8se stress (ise!y to pus/ yourse!f t/at !itt!e 1it /arder
(/en it counts most.
5. S#$'44 +4 &(,#/-+(%4
Stressed peop!e snee5e stress &erms indiscriminate!y and 1efore you )no( it2 you
are infected (it/ stress &erms tooX
rotect yourse!f from stress &erms 1y reco&ni5in& stress in ot/ers and !imitin&
your contact (it/ t/em. @r if youEve &ot t/e inc!ination2 p!ay stress doctor and
teac/ t/em /o( to 1etter mana&e t/eir stress.
:. C(*0 -((2 4#$'44 )/,/-'$4
I/en peop!e around are !osin& t/eir /ead2 (/ic/ )eeps ca!mL I/at are t/ey
doin& different!yL I/at is t/eir attitudeL I/at !an&ua&e do t/ey useL -re t/ey
trained and experiencedL +i&ure it out from afar or sit t/em do(n for a c/at.
.earn from t/e 1est stress mana&ers and copy (/at t/ey do.
;. U4' D'/80 1$'/#D+,-.
Gou can tric) your 1ody into re!axin& 1y usin& /eavy 1reat/in&. 0reat/e in s!o(!y
for a count of % t/en 1reat/e out for a count of 11. 7epeat t/e %-11 1reat/in& unti!
your /eart rate s!o(s do(n2 your s(eaty pa!ms dry off and t/in&s start to fee!
more norma!.
7. S#(* 4#$'44 #D(%-D# #$/+,4
It is possi1!e to tan&!e yourse!f up in a stress )not a!! 1y yourse!f. VIf t/is /appens2
t/en t/at mi&/t /appen and t/en (eEre a!! up t/e cree)XT #ost of t/ese t/in&s
never /appen2 so (/y (aste a!! t/at ener&y (orryin& need!ess!y. 4ive stress
t/ou&/t-trains t/e red !i&/t and stop t/em in t/eir trac)s. @)ay so it mi&/t &o
(ron& U /o( !i)e!y is t/at2 and (/at can you do to prevent itL
A. ",(C 0(%$ 4#$'44 D(# 4*(#4 /,2 #$+--'$ *(+,#4
resentations2 intervie(s2 meetin&s2 &ivin& difficu!t feed1ac)2 ti&/t dead!inesM
#y /eart rate is cran)in& up =ust (ritin& t/ese do(nX
#a)e your o(n !ist of stress tri&&er points or /ot spots. 0e specific. Is it on!y
presentations to a certain audience t/at &et you (or)ed upL 9oes one pro=ect
cause more stress t/an anot/erL 9id you drin) too muc/ coffeeL
Ano(in& (/at causes you stress is po(erfu! information2 as you can ta)e action
to ma)e it !ess stressfu!. 9o you need to !earn some ne( s)i!!sL 9o you need extra
resourcesL 9o you need to s(itc/ to de-caffeinated coffeeL
@. E/#, 2$+,<, 4.''* /,2 1' )'$$0L
.ac) of s!eep2 poor diet and no exercise (rea)s /avoc on our 1ody and mind.
Aind of o1vious2 1ut (ort/ mentionin& as itEs often i&nored as a stress
mana&ement tec/ni6ue. .isten to your mot/er and donEt 1urn t/e cand!e at 1ot/
endsX
#odern !ife is fu!! of stress. -s or&ani5ations 1ecome more comp!ex t/e potentia!
for2 and t/e amount of stress increases. 8r1ani5ation2 industria!i5ation and t/e increase in
sca!e of operations in t/e society are some of t/e reasons for risin& stress. Stress is an
inevita1!e conse6uence of socio-economic comp!exity2 and to some extent2 its stimu!ant
as (e!!. eop!e experience stress2 as t/ey can no !on&er /ave a comp!ete contro! over
(/at /appens in t/eir !ives.
3/eyEre 1ein& no escape from stress in modern !ife; (e need to find (ays of usin&
stress productive!y2 and reducin& dysfunctiona! stress. Even as stress is inevita1!e in
todayEs comp!ex !ife2 so is it necessary for /uman pro&ress. Stress is produced 1y severa!
/appenin&s in !ife. In &enera!2 every transition or c/an&e produces stress. eop!e in ne(er
states experience a /i&/er stress of transition. Goun& peop!e 1et(een 20 and 30 years of
a&e /ave 1een found to report t(ice as muc/ stress (/en2 compared to o!der peop!e.
Stress disorders /ave 1een found more fre6uent!y amon&st t/e ur1an popu!ation t/an t/e
rura!2 and are &reater in t/e /i&/er educationa! cate&ories.
#odern =o1s are frau&/t (it/ dan&er of stress. 3/e motivationa! strate&ies !i)e =o1
enric/ment2 incentives2 re(ards2 a(ards2 promotions may o1tain superior performance
from emp!oyee in s/ort term 1ut t/ese are a!so potentia! sources of =o1 stress2 if not
mana&ed time!y and appropriate!y. Sometimes t/ey may /ave fata! conse6uences t/at
ma)e t/ese motivationa! strate&ies not on!y irre!evant 1ut a!so counter productive.
3/erefore2 ?7 mana&ers must conduct and coordinate t/e studies intended to understand
t/e sources2 factors and imp!ications of stress in or&ani5ation. 0road!y t/ere are t(o )inds
of stress>
1. Environment induced stress !i)e economic recession2 uncertainty in 1usiness
environment2 competition2 c/an&in& tec/no!o&y2 and c/an&in& products.
2. @r&ani5ation induced stress !i)e comp!exity of mana&ement2 (/ic/ demands /i&/
!eve! of consistent performance2 increasin& pressureDtar&ets2 unstructured =o1
profi!es2 en/anced responsi1i!ities2 emp!oyment insecurity2 s/arp re(ard and
punis/ment measures.
Studies prove t/at stress is 1ecomin& a ma=or area of concern to mana&ements
particu!ar!y to ?7 mana&ers. 8nfortunate!y2 avoidin& or removin& stress a!to&et/er from
(or)p!ace is an impossi1!e tas). ?o(ever2 ?7 mana&ers must ma)e efforts to identify
sources of stress2 particu!ar!y or&ani5ation induced in order to minimi5e t/em. If !eft
unassessed or unattained2 it may 1ecome a formida1!e 1!oc) in rea!i5in& t/e potentia! of
emp!oyees apart from resu!tin& in dysfunctiona! effects to t/e or&ani5ation.
METHODLOGY
9efinin& t/e pro1!em and @1=ective> 3/e o1=ective of t/e study is to use
indicators to reduce stress amon& t/e emp!oyees for t/e purposes !i)e understand t/e
avoida1!e and unavoida1!e stress on t/e =o1s faced 1y t/e emp!oyees and to dra( p!ans to
(eed out t/e avoida1!e stress and to minimi5e t/e or&ani5ation induced stresses.
9eve!opin& t/e researc/ p!an> @nce t/e pro1!em is identified2 t/e next step is to
prepare a p!an for &ettin& t/e information needed for t/e researc/. 3/e present study (i!!
adopt t/e exp!oratory approac/ (/erein t/ere is a need to &at/er !ar&e amount of
information 1efore ma)in& a conc!usion. If re6uired2 t/e descriptive and casua!
approac/es may a!so 1e used.
Co!!ection and Sources of data> #ar)et researc/ re6uires t(o )inds of data2 i.e.2
rimary data and secondary data. 0ein& a firm in t/e 0an)in& industry2 data &at/erin&
(i!! invo!ve usa&e of 1ot/ primary and secondary data t/ou&/ t/ere (i!! 1e an extensive
usa&e of primary data. Ie!!-structured 6uestionnaires (i!! 1e prepared for 1ot/ existin&
as (e!! as non-existin& c!ients. 3/ere (i!! 1e persona! intervie(2 surveys. 3/e
6uestionnaires (i!! contain c!ose-ended 6uestions. Secondary data (i!! 1e co!!ected from
various =ourna!s2 1oo)s and (e1 sites
-na!y5e t/e co!!ected information> 3/is invo!ves convertin& ra( data into usefu!
information. It invo!ves ta1u!ation of data2 usin& statistica! measures on t/em for
deve!opin& fre6uency distri1utions and ca!cu!atin& t/e avera&es and dispersions.
7eport researc/ findin&s> 3/is p/ase (i!! mar) t/e cu!mination of t/e mar)etin&
researc/ effort. 3/e report (it/ t/e researc/ findin&s is a forma! (ritten document. 3/e
researc/ findin&s and persona! experience (i!! 1e used to propose recommendations
Samp!in& Si5e> 100 emp!oyees
Samp!in& 8nits> 3/e respondents2 i.e.2 t/e 8nit #an&ers of ICICI rudentia!.
7andom samp!in& is carried out
TD+4 */$#+&%./$ *$(M'&# D/4 1'', 2'8'.(*'2 10 %4+,- O$-/,+K/#+(,/. R(.'
S#$'44 S&/.' (ORS S&/.'):
It can 1e used to measure t/e ro!e stresses. 3/e @7S sca!e contains five items for
eac/ ro!e stress; it uses a 5-point sca!e B0 to 4C
ROLE SPACE CONFLICTS
Se!f-7o!e 9istance> t/is stress arises out of t/e conf!ict 1et(een t/e se!f-concept
and t/e expectations from t/e ro!e2 as perceived 1y t/e ro!e occupant. Suc/ conf!icts are
common2 a!t/ou&/ t/ey may not 1e so severe.
R(.' S#/-,/#+(,: -s t/e individua! &ro(s o!der2 /e a!so &ro(s in t/e ro!e t/at /e
occupies in an or&ani5ation of t/e individua! t/at t/e ro!e c/an&es2 and (it/ t/is c/an&e
in ro!e2 t/e need for ta)in& up a ne( ro!e 1ecomes crucia!. 3/is is 1ound to produce some
stress.
I,#'$-R(.' D+4#/,&': I/en an individua! occupies more t/an 1 ro!e t/ere are 1ound to
1e conf!icts 1et(een t/e different ro!es t/at /e occupies. Suc/ inter-ro!e conf!icts are
6uite fre6uent in a modern society2 (/ere an individua! is increasin&!y occupyin&
mu!tip!e ro!es in various or&ani5ations and &roups
ROLE SET CONFLICTS
R(.' A)1+-%+#0: I/en t/e individua! is not c!ear a1out t/e various expectations t/at
peop!e /ave from /is ro!e2 t/e conf!ict t/at /e faces is ca!!ed ro!e am1i&uity. 3/is may 1e
due to !ac) of information avai!a1!e to ro!e occupant2 or !ac) of understandin& of t/e cues
avai!a1!e to /im
R(.' EN*'&#/#+(, C(,3.+&#: I/en t/ere are conf!ictin& expectations or demands 1y
different ro!e senders2 t/e ro!e occupant may experience t/is stress. 3/ere may 1e
conf!ictin& expectations from t/e 1oss2 su1ordinates2 peers or c!ients.
R(.' O8'$.(/2: I/en t/e ro!e occupant fee!s t/at t/ere are too many expectations from
t/e si&nificant ot/ers in /is ro!e set2 /e experiences ro!e over!oad. It is measured 1y
as)in& 6uestions a1out peop!eEs fee!in&s on (/et/er t/ey cou!d possi1!y finis/ (or)
&iven to t/em durin& a modified (or)day.
R(.' E$(4+(,: - ro!e occupant may fee! t/at t/e functions2 (/ic/ /e (ou!d !i)e to
perform2 are 1ein& performed 1y some ot/er ro!e. 3/e stress fe!t may 1e ca!!ed ro!e
erosion. 7o!e erosion is !i)e!y to 1e experienced in an or&ani5ation2 (/ic/ is redefinin&
its ro!e and creatin& ne( ro!es.
R(.' I4(./#+(,: In a ro!e set2 t/e ro!e occupant may fee! t/at certain ro!es are
psyc/o!o&ica!!y c!oser to /im2 (/i!e ot/ers are at a muc/ &reater distance. 3/e main
criterion of distance is t/e fre6uency and ease of interaction. 3/e &ap 1et(een t/e desired
and t/e existin& !in)a&es (i!! indicate t/e amount t/e ro!e iso!ation.
P'$4(,/. I,/2'G%/&0: I/en a ro!e occupant fee!s t/at /e is not prepared to underta)e
t/e ro!e effective!y2 /e may experience t/is stress. 3/e ro!e occupant may fee! t/at /e
does not /ave enou&/ )no(!ed&e2 s)i!!s2 or trainin&2 or /as not /ad time to prepare for t/e
assi&ned ro!e. ersons (/o are assi&ned ne( ro!es (it/out enou&/ preparation or
orientation are !i)e!y to experience t/is type of stress
R'4(%$&' I,/2'G%/&0: 7esource Inade6uacy stress is experienced (/en t/e resources
re6uired 1y t/e ro!e occupant for performin& t/e ro!e effective!y are not avai!a1!e2 suc/ as
information2 peop!e2 materia!s2 finance or ot/er faci!ities
doc_585871845.doc
Insurance is the pooling of fortuitous losses by transfer of such risk to insurers, who agreed to provide the pecuniary benefit on their occurance, or to render service connected with risk. It is the transfer of financial responsibility for the risk at the point of occurance and conventionally involves the insurer in a commitment to pay
TABLE OF CONTENTS
PARTICULARS PAGE NUMBERS
1. Executive Summary 01-02
2. Introduction 03-14
3. Need for Insurance 15-22
4. Company rofi!e 23-32
5. "ision-#ission 33-3$
$. roducts 3%-43
%. Stress #ana&ement 44-$1
'. Stress #ana&ement at (or) p!ace $2-'2
*. +indin&s , -na!ysis '3-*5
10. Su&&estions *$-*'
11. .imitations of t/e study **-100
12. Conc!usion 101-102
13. -nnexure 103-10$
14. 0i1!io&rap/y 10%-10'
EXECUTIVE SUMMARY
Insurance is t/e poo!in& of fortuitous !osses 1y transfer of suc/ ris) to insurers2 (/o
a&reed to provide t/e pecuniary 1enefit on t/eir occurance2 or to render service connected (it/
ris). It is t/e transfer of financia! responsi1i!ity for t/e ris) at t/e point of occurance and
conventiona!!y invo!ves t/e insurer in a commitment to pay. 3/e insurance service !ead to
efficient and productive a!!ocation of capita! resources2 faci!itate &ro(t/ of trade and commerce.
4!o1a!i5ation (i!! certain!y increase insurance penetration and a!! professiona!s s/a!! e6uip
t/emse!ves to exp!oit opportunities offered 1y t/is sector.
ICICI 789EN3I-. /as maintained its !ead amon&st t/e private p!ayers of !ife
insurance (it/ a mar)et s/are of a1out 3*:. 3/e 1i&&est ac/ievement is in pension se&ment2
(/ere company introduced a s!e( of products and captured around 23: of t/e tota! pension
mar)et. ICICI rudentia! /ave a customer centric &ro(t/ strate&y and /as ta)en a num1er of
strate&ies a&ainst t/is.
3/e consumers are t/e !ar&est economic &roup in any country and t/e present day
1usiness activities are 1ecause of consumers on!y. 3/us2 consumers are t/e pi!!ars of t/e
economy. 3/e consumers are not on!y t/e /eart of mar)etin& system2 1ut a!so t/e contro!!er of
mar)etin& functions. 0ut if t/e modern mar)etin& system consumers soverei&nty /as 1ecome a
myt/ on account of t/e variety of pro1!ems in t/e process of merc/andisin&. 3/e study of
consumer 1e/avior ena1!es mar)eters to understand and predict consumer 1e/avior in t/e
mar)et p!ace; It a!so promotes understandin& of t/e ro!e t/at consumption p!ays in t/e !ives of
t/e individua!.
3/is &ives me an opportunity to (or) on (it/ t/is endeavor focusin& on t/e study of
<consumer behavior towards the insurance products' (it/ specia! reference to ICICI
789EN3I-.. 3/e primary o1=ective of t/e study is to understand t/e attitude and perception
of t/e respondents to(ards insurance products.
3/e study &ives an insi&/t to t/e insurance industry. It 1rief!y exp!ains a1out t/e /istory
of !ife insurance sector. It a!so contains t/e or&ani5ationa! profi!e of ICICI 789EN3I-.2
statin& a1out its mi!e stones2 vision2 products2 protection2 so!utions2 advertisin& effectiveness and
fina!!y a1out its mar)etin& strate&ies and c/a!!en&es. 3/e study ends up (it/ t/e su&&estions in
order to modify t/e current system for a /i&/er &ro(t/ and pro&ress.
INTRODUCTION
LIFE INSURANCE
.ife insurance is a contract providin& for a payment of a sum of money to t/e
person assured or fai!in& /im to t/e person entit!ed to receive t/e same on t/e /appenin&
of certain event. 8ncertainty of deat/ is in/erent in /uman !ife. Ii is t/is ris)2 (/ic/
&ives rise to t/e necessity for some form of protection a&ainst t/e financia! !oss arisin&
from deat/. Insurance su1stitutes t/is uncertainty 1y certainty. 3/e o1=ective of
insurance is norma!!y to provide>
- +ami!y rotection.
0 rovision for o!d a&e.
INSURANCE INDUSTRY
ORIGIN OF INSURANCE
3/e ori&in of insurance dates 1ac) to t/e 12
t/
century2 t/e ori&in of insurance
appeared first in marine and !and fie!ds. 3/e ideas of insurance (ere made in 0a1y!onia
and India at 6uite an ear!y period; t/e courts of ?ammura1i and #ano reco&ni5ed t/e
provision for s/arin& t/e future !osses. ?o(ever t/ere is no evidence t/at insurance in its
present form (as practiced prior to 12
t/
century. 3racin& t/e /istory of insurance to t/e
present day2 one can easi!y &au&e t/e performance of industry 1ot/ co!!ective!y as an
industry as (e!! as individua!!y 1y t/e companies.
In ear!ier times2 trave!ers 1y sea and !and (ere very muc/ exposed to ris) of
!osin& t/eir vesse!s and merc/andise 1ecause piracy on t/e open seas and /i&/(ay
ro11ery of caravan (ere common. 7eferences to simi!ar practices are a!so found in
<#ana1 9/arma S/astra< (/ic/ contained ru!es for sea from contracts (/ic/ (as
o1served 1y traders. Insurance conceived as met/od of s/arin& of t/e !osses em1odyin&
t/e principa! of co-operation existed in t/e ear!y civi!i5ation.
#any may not 1e a(are t/at t/e !ife insurance industry of India is as o!d as it is in
any ot/er part of t/e (or!d. 3/e first Indian !ife insurance company (as t/e @rienta! .ife
Insurance Company2 (/ic/ (as started in India in 1'1' at Ao!)ata1. - num1er of p!ayers
Bover 250 in !ife and a1out
100 in non-!ifeC main!y (it/ re&iona! focus f!ouris/ed a!! across t/e country.
?o(ever2 t/e 4overnment of India2 concerned 1y t/e unet/ica! standards adopted 1y
some p!ayers a&ainst t/e consumers2 nationa!i5ed t/e industry in t(o p/ases in 1*5$ B!ifeC
and in 1*%2 Bnon-!ifeC. 3/e insurance 1usiness of t/e country (as t/en 1rou&/t under t(o
pu1!ic sector companies2 .ife Insurance Corporation of India B.ICC and 4enera!
Insurance Corporation of India B4ICC.
7eforms (ere initiated (it/ t/e passa&e of Insurance 7e&u!atory and
9eve!opment -ut/ority BI79-C 0i!! in 1***. I79- (as set up as an independent
re&u!atory aut/ority2 (/ic/ /as put in p!ace re&u!ations in !ine (it/ &!o1a! norms. So far
in t/e private sector2 12 !ife insurance companies and * &enera! insurance companies /ave
1een re&istered.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT - 1999.
(I.R.D.A)
3/e o1=ect of t/is act is to provide for t/e esta1!is/ment of an aut/ority to protect
t/e interest of /o!ders of insurance po!icies2 to re&u!ate2 to promote and ensure order!y
&ro(t/ of insurance industries. Insurance 7e&u!atory and 9eve!opment -ut/ority BI79-C
/as sou&/t t/e comments of industry participants to fina!i5e t/e &uide!ines for on!ine
a&ents< trainin& institutes.
3/ese proposed &uide!ines are in addition to its standard instructions and
&uide!ines app!ica1!e for approva!Drene(a! of a&ents< trainin& institutes. 3/e &uide!ines
(ou!d 1e app!ica1!e to a!! t/e on!ine trainin& institutes inc!udin& in-/ouse trainin&
institutes of t/e insurers.
-s per t/e draft &uide!ines2 t/e app!icant s/ou!d under&o at !east 120 /ours
practica! trainin& in !ife or &enera! insurance 1usiness. 3/e composite trainin& s/ou!d 1e
for at !east 1'0 /ours2 (/ere t/e app!icant is see)in& !icense for t/e first time to act as an
insurance a&ent.
3/e duration s/ou!d 1e minimum of 24 days for 120 /ours trainin& and 3$ days
for 1'0 /ours trainin& (it/ a maximum five /ours per day. Statin& t/at no product
trainin&Dmar)et survey s/ou!d 1e inc!uded into t/is 120D1'0 /ours trainin&2 t/e re&u!ator
said revision examination cou!d form part of t/e trainin&.
DUTIES, POWERS AND FUNCTIONS OF AUTHORITY:
•• 3/e po(ers and functions of t/e aut/ority inc!ude re&istration of insurers2
intermediaries and a&ents re&u!ations of terms and conditions of contract of
insurance2 promotin& and re&u!atin& professiona! or&ani5ations connected (it/ t/e
insurance2 monitorin& investment of funds and so!vency mar&in of insurance
companies.
•• 3/e aut/ority is to 1e advised 1y a committee to 1e )no(n as t/e insurance advisory
committee2 (/ic/ s/a!! consists of not more t/an 25 mem1ers inc!udin& ex-officio
mem1ers in t/e insurance sector. 3/e insurance advisory committee is expected to
advice t/e aut/ority on matters re!atin& to ma)in& of t/e re&u!ations
•• -n Indian insurance company /as 1een defined as a company incorporated under t/e
Companies -ct - 1*5$ and t/e paid capita! of 4enera! Insurance 1usiness (i!! /ave
to 1e not !ess t/an 7s 100D- Crores and in case of companies (antin& to transact
reinsurance 1usiness t/e paid capita! (i!! /ave to not !ess t/an 7s 200D- Crores.
•• It /as a!so 1een notified t/at every insurance company (i!! /ave to appoint an
-ctuary to 1e approved 1y I.7.9.-. 3/e duty of t/e -ctuary is to insure t/at
3/e assets are va!ued in appropriate manner
3/e !ia1i!ities are eva!uated as re6uired
3/e prescri1ed mar&in for maintainin& so!vency is comp!ied (it/.
•• 3/e I.7.9.- a!so issued re&u!ations (it/ re&ards to advertisement so as to
inc!ude a!most any pu1!ic communication for a sa!e of insurance po!icy.
THE FUNDAMENTAL PRINCIPALS OF LAW OF INSURANCE.
UTMOST GOOD FAITH:
3/e parties to t/e commercia! contract2 accordin& to t/e !a( are re6uired to
o1serve &ood fait/. 3/e se!!er cannot mis!ead t/e 1uyer in respect of transactions2
1ut /e /as no su1=ect of t/e contract2 it is t/e 1uyerEs duty to 1e carefu! (/i!e
enterin& into a contract. !LET THE BUYER BE AWARE< is a !e&a! ru!e.
INSURABLE INTEREST:
3/e o(ner of t/e property /as a ri&/t under !a( to effect insurance on t/e
property if /e is !i)e!y to suffer financia!!y (/en property is !ost or dama&ed.
3/is !e&a! ri&/t to insure is ca!!ed insura1!e interest2 (it/out insura1!e interest t/e
contract of insurance (i!! 1e void. 0ecause of t/is !e&a! re6uirement of insura1!e
interest t/e insurance contracts are not &am1!in& transactions.
INDEMNITY:
3/e principa! of indemnity arises under common !a( and re6uires t/at an
insurance contro! s/ou!d 1e a contract of indemnity on!y and not/in& more. 3/e
o1=ect of principa!s to p!ace t/e insured after a !oss in t/e same financia! position
as far as possi1!e2 as /e is occupied immediate!y 1efore t/e !oss. 3/e effect of t/is
principa! is to prevent t/e insured from ma)in& t/e profit out of /is !oss or
&ainin& any advanta&e or 1enefit. 3/e o1=ect of a contract of insurance is to
protect t/e financia! interest of t/e insured in t/e su1=ect matter of insurance.
SUBROGATION:
3/e principa! of su1ro&ation arises from t/e principa! of indemnity. Su1ro&ation
may 1e defined as transfer of ri&/ts and remedies of t/e insured to t/e insurer
(/o /as indemnified t/e insured in respect of t/e !oss. If t/e insured /as any
ri&/ts of action to 1e recovered t/e !oss from any t/ird party2 (/o is primary
responsi1!e for t/e !oss2 t/e insurer /avin& paid t/e !oss is entit!ed to avai!
/imse!f of t/ese ri&/ts to recover t/e !oss from t/e t/ird party. 3/e effect is t/at
t/e insured does not receive more t/an actua! amount of /is !oss and any
recovery affected from t/e t/ird party &oes to t/e 1enefit of t/e insurer to reduce
t/e amount of /is !oss
INSURANCE MAR"ET IN INDIA
0y any yardstic)2 India2 (it/ a1out 200 mi!!ion midd!e c!ass /ouse/o!ds2 presents
a /u&e untapped potentia! for p!ayers in t/e insurance industry. Saturation of mar)ets in
many deve!oped economies /as made t/e Indian mar)et even more attractive for &!o1a!
insurance ma=ors. .ife insurance is main!y considered as a savin& instrument rat/er t/an
an investment avenue as it promotes compu!sory savin&s 1esides reducin& tax 1urden on
t/e po!icy/o!der and protect t/e fami!y of t/e po!icy/o!der in t/e event of unforeseen
/appenin&. It is t/e on!y savin& instrument2 (/ic/ covers t/e !ife ris) 1esides &ivin& tax
concession 1ot/ at entry Bpremium paidC and at exit
HISTORY AND PRESENT STATUS OF INSURANCE MAR"ET IN
INDIA
3/e insurance sector in India /as come a fu!! circ!e from 1ein& an open
competitive mar)et to nationa!i5ation and 1ac) to a !i1era!i5ed mar)et a&ain. 3racin& t/e
deve!opments in t/e Indian insurance sector revi!es t/e 3$0-de&ree turn (itnessed over a
period of a!most t(o centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR
3/e 1usiness of !ife insurance in India in its existin& form started in India in
t/e 1'1' (it/ t/e esta1!is/ment of @rienta! .ife Insurance Company in Ca!cutta. Some
of t/e important mi!estones in t/e .ife Insurance 1usiness in India are>
1*12> 3/e Indian .ife -ssurance Companies -ct enacted as t/e first statue to
re&u!ate t/e !ife insurance 1usiness.
1*2'> 3/e Insurance Companies -ct enacted to ena1!e t/e &overnment to
co!!ect statistica! information a1out 1ot/ !ife and non-insurance 1usiness.
1*3'> Ear!ier !e&is!ation conso!idated and amended to 1y t/e Insurance -ct
(it/ t/e o1=ective of protectin& t/e interest of t/e insurin& pu1!ic.
1*5$> 245 Indian and forei&n insurers and provident societies are ta)en over
1y t/e centra! &overnment and nationa!i5ed. .IC found 1y an -ct of ar!iament2 vi5. .IC
-ct 1*5$2 (it/ a capita! contri1ution of rupees +ive Crores from t/e 4overnment of
India.
INSURANCE SECTOR REFORMS
In 1**32 #a!/otra Committee2 /eaded 1y former +inance Secretary and 70I
4overnor 7.N. #a!/otra2 (as formed to eva!uate t/e Indian insurance industry and
recommend its future direction. 3/e #a!/otra committee setup (it/ t/e o1=ective of
comp!imentin& t/e reforms initiated in t/e financia! sector. 3/e reforms (/ere aimed at
Fcreatin& a more efficient and competitive financia! system suita1!e for t/e re6uirements
of t/e economy )eepin& in mind t/e structura! c/an&es current!y under(ay and
reco&ni5in& t/at insurance is an important part of t/e overa!! financia! system (/ere it
(as necessary to address t/e need for simi!ar reforms..F
In 1**42 t/e Committee su1mitted t/e report and some of t/e )ey recommendations
inc!uded>
S#$%&#%$'
a. 4overnment sta)e in t/e insurance companies to 1e 1rou&/t do(n to 50:.
1. 4overnment s/ou!d ta)e over t/e /o!din&s of 4IC and its su1sidiaries so
t/at t/ese su1sidiaries can act as independent corporations.
c. -!! t/e insurance company s/ou!d 1e &iven &reater freedom to operate.
C()*'#+#+(,
- rivate companies (it/ a minimum paid up capita! of 7s. 11n s/ou!d 1e
a!!o(ed to enter t/e industry.
1. No company s/ou!d dea! 1ot/ t/e !ife insurance and &enera! insurance
t/rou&/ a sin&!e entity.
c. +orei&n companies may 1e a!!o(ed to enter t/e industry in co!!a1oration
(it/ t/e domestic companies.
c. osta! .ife Insurance s/ou!d 1e a!!o(ed to operate in t/e rura! mar)et.
d. @n!y one state !eve! .ife Insurance Company s/ou!d 1e a!!o(ed to
operated in eac/ state.
R'-%./#($0 1(20
a. 3/e Insurance -ct s/ou!d 1e c/an&ed.
1. -n Insurance re&u!atory 1ody s/ou!d 1e setup.
7eforms in t/e insurance sector (ere initiated (it/ t/e passa&e of t/e I79- 0i!!
in t/e ar!iament in 9ecem1er 1***. 3/e I79- since its incorporation as statutory 1ody
in -pri! 2000 /as fastidious!y stuc) to its sc/edu!e of framin& re&u!ations and re&isterin&
t/e private sector insurance companies.
3/e ot/er decisions ta)en simu!taneous!y to provide t/e supportin& systems to t/e
insurance sector and in particu!ar t/e !ife insurance companies (as t/e !aunc/ of t/e
I79-<s on!ine service for issue and rene(a! of !icense to a&ents.
3/e approva! of institutions for impartin& trainin& to a&ents /as a!so ensured t/at
t/e insurance companies (ou!d /ave trained (or) force of insurance a&ents in p!ace to
se!! t/eir products2 (/ic/ are expected to 1e introduced 1y ear!y next year.
Since 1ein& set up as an independent statutory 1ody t/e I79- /as put in a
frame(or) of &!o1a!!y compati1!e re&u!ations. In t/e private sector 12 !ife insurance and
$ &enera! insurance companies /ave 1een re&istered.
Insurance is an 7s 400 1i!!ion 1usiness in India2 and to&et/er (it/ 1an)in&
services adds a1out %: to India<s 49. 4ross premium co!!ection is a1out 2: of 49
and /as 1een &ro(in& 1y 15 to 20: per annum. India a!so /as t/e /i&/est num1er of !ife
insurance po!icies in force in t/e (or!d2 and tota! investa1!e funds (it/ t/e .IC are
a!most ': of 49. Get more t/an t/ree fourt/ of India<s insura1!e popu!ation /as no !ife
insurance or pension cover. ?ea!t/ insurance of any )ind is ne&!i&i1!e and ot/er forms of
non !ife insurance are muc/ 1e!o( internationa! standards.
3o tap t/e vast insurance potentia! and to mo1i!i5e !on& term savin&s (e need
reforms (/ic/ inc!ude revita!i5in& and restructurin& of t/e pu1!ic sector companies2 and
openin& up t/e sector to private p!ayers. - statutory 1ody needs to 1e made to re&u!ate
t/e mar)et and to promote a ?ea!t/y mar)et structure. Insurance 7e&u!atory -ut/ority
BI7-C is one suc/ 1ody2 (/ic/ c/ec)s on t/ese tendencies. I7- ro!e comprises of
fo!!o(in& t/ree functions>
a. rotection of consumer<s interest
1. 3o ensure financia! soundness and so!vency of t/e insurance industry2
c. 3o ensure /ea!t/y &ro(t/ of insurance mar)et.
-n insurance po!icy protects t/e 1uyer at some cost a&ainst t/e financia! !oss
arisin& from a specified ris). 9ifferent situations and different peop!e re6uire a different
mix of ris)-cost com1inations. Insurance companies provide t/ese 1y offerin& sc/emes of
different )inds.
8nfortunate!y2 t/e concept of insurance is not possi1!e in our country. -s per t/e
!atest estimates2 t/e tota! premium income &enerated 1y !ife and &enera! insurance in
India is estimated at around 1.*5: of 49. ?o( ever India<s s/are of (or!d insurance
mar)et /as s/o(n an increase of 10: from 0.31: in 1**$-*% to 0.34: in 1**%-*'.
India<s mar)et s/are in t/e !ife insurance 1usiness s/o(ed a rea! &ro(t/ of 11: t/ere 1y
outperformin& &!o1a! avera&e of %.%:. Non !ife insurance 1usiness &re( 1y 3.1: a&ainst
&!o1a! avera&e of 0.20:. In India insurance pendin& per capita (as amon& t/e !ast in t/e
(or!d at H%.$ compared to H% in t/e previous year . -mon&st t/e emer&in& economies2
India is one of t/e !east insured countries 1ut t/e potentia! for &ro(t/ is p/enomena!2 as a
si&nificant portion of its popu!ation is in services and t/e !ife expectancy a!so increased
over t/e years.
3/e nationa!i5ed insurance industry /as not offered consumers a variety of
products. @penin& of t/e sector to private firms (i!! foster competition2 innovation and
variety of products. It (ou!d a!so &enerate &reater a(areness on t/e need for 1uyin&
insurance as a service and not mere!y for tax exemption2 (/ic/ is current!y done on t/e
demand side2 a stron& corre!ation 1et(een demand for insurance and per capita income
!eve! su&&ests t/at /i&/ economic &ro(t/ can spur &ro(t/ in demand for insurance. -!so
t/ere exists a stron& corre!ation 1et(een insurance density and socia! indicators suc/ as
!iteracy. Iit/ socia! deve!opment2 insurance demand (i!! &ro(.
LIFE INSURANCE MAR"ET IN INDIA
L+3' I,4%$/,&' S#/#+4#+&4
I,2+/, P(*%./#+(, I 1,
GDP /4 (, 5666 ( R4 1,) 76666 1,
G$(44 D()'4#+& S/8+,- /4 / 9 (3 GDP :59
NCAER '4#+)/#' +4 I,4%$/,&' P(*%./#+(, 5;6 ),
E4#+)/#'2 )/$<'# 5616 976 ),
India /as an enormous midd!e c!ass t/at can afford to 1uy !ife2 /ea!t/2 and
disa1i!ity and pension p!an products. 3/e !o( !eve! of penetration of !ife insurance in
India compared to ot/er deve!oped nations can 1e =ud&ed 1y a comparison of per capita
!ife premium.
C(%,#$0 L+3' P$')+%) *'$ &/*+#/ US = +, 199;
>/*/, :?1@
U" 15?6
USA 9A;
I,2+/ ;
C!ear!y2 t/ere is considera1!e scope to raise per capita !ife premium in t/e mar)et
is effective!y tapped. India /as traditiona!!y 1een a /i&/ savin&s oriented country often
descri1ed as 1ein& on par (it/ t/rifty Japan. Insurance sector in t/e 8S is a 1i& in t/e si5e
as t/e 1an)in& industry t/ere. 3/is &ives us an idea of /o( important is t/e sector is.
Insurance sector cana!i5es t/e savin& of t/e peop!e to !on&-term investments. In India
(/ere infrastructure is said to 1e critica! importance2 t/is sector (i!! 1rin& t/e nations
o(n money for t/e nation.
In t/e t/ree years time (e (ou!d expect 10: of t/e popu!ation to 1e under some
sort of an insurance cover. 3/us assumin& a premium of 7s 5000 on an avera&e2 100
mi!!ion 7s 5000 K 7s 500 1i!!ion.
3/is /as made t/e sector t/e /ottest one in India after I3. Iit/ socia! security and
security to pu1!ic at !ar&e 1ein& t/e a&enda for openin& t/e sector2 t/e ro!e of t/e
re&u!ator 1ecomes a!! t/e more serious and one (ou!d 1e carefu!!y (atc/ed at every step.
3/e Insurance 7e&u!ator and 9eve!opment 1i!! is no( an -ct. Iit/ t/is India is
no( t/e cynosure of a!! t/e &!o1a! insurance p!ayers. Numerous p!ayer2 1ot/ Indian and
forei&n /ave announced t/eir intention to start t/eir insurance s/ops in India. I79-2
under c/airman s/ip of #r. 7-N4-C?-7I2 opened t/e (indo( for app!yin& !icense in
India.
@ne of t/e main difference 1et(een t/e deve!oped economies and t/e emer&in&
economies is t/at insurance products are 1ou&/t in t/e former (/i!e t/ese are so!d in
!ater. +ocus if insurance industry is c/an&in& to(ards providin& a mix of 1ot/
protectionDris) cover and !on&-term investment opportunities.
WHY LIFE INSURANCE?
WHY LIFE INSURANCEB
.ife insurance cover is essentia! for it provides t/e fo!!o(in& 1enefits>
a. - !ump sum payment to t/e nominees at t/e time of t/e deat/ of t/e po!icy/o!der;
1. - re&u!ar payment to t/e nominees in t/e event of t/e deat/ of t/e po!icy/o!der;
c. 3ax 1enefits2 as premium paid to reduce t/e !ia1i!ity of tax;
d. 7e!ieves economic /ards/ips in t/e fami!y on t/e uneventfu! deat/ of t/e so!e income
/o!der;
e. Incu!cates t/e /a1it of savin&.
NEED FOR INSURANCE
3/e need for !ife insurance comes from t/e need to safe&uard our fami!y. If you
care for your fami!y<s needs you (i!! definite!y consider insurance.
3oday insurance /as 1ecome even more important due to t/e disinte&ration of t/e
preva!ent =oint fami!y system2 a system in (/ic/ a num1er of &enerations co-existed in
/armony2 a system in (/ic/ a sense of financia! security (as a!(ays t/ere as t/ere (ere
more earnin& mem1ers.
3imes /ave c/an&ed and t/e nuc!ear fami!y /as emer&ed. -part from t/e ot/er
pitfa!!s of a nuc!ear fami!y2 a /i&/ sense of insecurity is o1served in it today 1esides2 t/e
fami!y /as s/run). Needs are increasin& (it/ time and fu!fi!!ment of t/ese need is a 1i&
6uestion mar).
?o( (i!! you 1e a1!e to satisfy a!! t/ose needsL 0etter !ifesty!e2 &ood education2
and your !on& desired /ouse. 0ut a&ain you =ust cannot fritter a(ay a!! your earnin&s. Gou
need to save a part of it for t/e future too a (ise decision. 3/is is (/ere insurance /e!ps
you.
+actors suc/ as fe(er num1ers of earnin&s mem1ers2 stress2 po!!ution increased
competition2 /i&/er am1itions etc are some of t/e reasons (/y insurance /as &ained
importance and (/ere insurance p!ays a successfu! ro!e.
A, O8'$8+'C
Insurance 1usiness is divided into four c!asses>
1C .ife Insurance 1usiness
2C +ire
3C #arine
4C #isce!!aneous Insurance.
.ife Insurers transact !ife insurance 1usiness; t/e rest is transacted 1y 4enera!
Insurers. No composites are permitted as per !a(. 3/e 1usiness of Insurance essentia!!y
means defrayin& ris)s attac/ed to any activity over time Binc!udin& !ifeC and s/arin& t/e
ris)s 1et(een various entities2 1ot/ persons and or&ani5ations. Insurance companies BICsC
are important p!ayers in financia!
#ar)ets as t/ey co!!ect and invest !ar&e amounts of premium. Insurance products
are mu!ti purpose and offer t/e fo!!o(in& 1enefits>
1. rotection to t/e investors
2. -ccumu!ate savin&s
3. Cana!i5e savin&s into sectors needin& /u&e !on& term investments.
ICs receive2 (it/out muc/ defau!t2 a steady cas/ stream of premium or
contri1utions to pension p!ans. "arious actuary studies and mode!s ena1!e t/em to
predict2 re!ative!y accurate!y2 t/eir expected cas/ outf!o(s. .ia1i!ities of ICs 1ein& !on&-
term or contin&ent in nature2 !i6uidity is exce!!ent and t/eir investments are a!so !on&-
term in nature. Since t/ey offer more t/an t/e return on savin&s in t/e s/ape of !ife-cover
to t/e investors2 t/e rate of return &uaranteed in t/eir insurance po!icies is re!ative!y !o(.
Conse6uent!y2 t/e need to see) /i&/ rates of returns on t/eir investments is a!so !o(. 3/e
ris)-return trade off is /eavi!y ti!ted in favour of ris). -s a com1ined resu!t of a!! t/is2
investments of insurance companies /ave 1een !ar&e!y in 1onds f!oated 1y 4@I2 S8s2
state &overnments2 !oca! 1odies2 corporate 1odies and mort&a&es of !on& term nature. 3/e
!ast p!ace (/ere Insurance companies are expected to 1e over-active is 1ourses.
.ate!y ICs /ave ventured into pension sc/emes and mutua! funds a!so. ?o(ever2
!ife insurance2 constitutes t/e ma=or s/are of insurance 1usiness. .ife Insurance depends
upon t/e !a(s of morta!ity and t/ere !ies t/e difference 1et(een !ife and &enera!
insurance 1usinesses. .ife /as to extin&uis/ sooner or !ater and t/e c!aim in respect of !ife
is certain. In case of &enera! insurance2 /o(ever2 t/ere may never 1e a c!aim and t/e
amount can never 1e ascertained in advance. ?ence2 .ife Insurance inc!udes2 1esides
coverin& t/e ris) of ear!y /appenin& of an event2 an e!ement of savin&s a!so for t/e
1eneficiaries. ension 1usiness a!so derives from !ife insurance in as muc/ as t/e pension
out&o a&ain depends upon t/e !a(s of morta!ity. 3/e forays made 1y insurance
companies in t/is area are2 t/erefore2 natura! coro!!ary of t/eir 1usiness.
TYPES OF INSURANCE POLICIES
0road!y t/ere are 3 types of !ife insurance po!icies>
a. 3erm Insurance !ans
1. I/o!e .ife Insurance
c. Endo(ment Insurance !ans
T'$) I,4%$/,&' P./,4>
ure !ife covers (/ere you pay for ris) cover and do not expect to receive
anyt/in& e!se in return is no( avai!a1!e in India. @ptin& for suc/ po!icy (i!! improve t/e
efficiency of po!icy premium and ena1!e you for a 1i&&er ris) cover for t/e same cost.
3/ese are term insurance p!ans (it/ maturity 1enefits; some term p!ans &ive your
premium amounts 1ac) (it/ interest. 3/is is a mar)etin& po!icy to suit t/e &enera!
psyc/o!o&y and s/ou!d norma!!y invo!ve /i&/er premium cost.
WD(.' .+3' +,4%$/,&' *./,4:
I/o!e !ife po!icies re6uire you to pay premium t/rou&/ out your !ife and cover
ris) for (/o!e !ife. 3/e po!icies (it/out profit are c/eaper.
E,2(C)',# I,4%$/,&' *./,4 (C+#D ($ C+#D(%# )(,'0 1/&<):
Endo(ment po!icies are cost!iest and amon& t/is &roup2 money 1ac) po!icies
invo!ve payin& /i&/est premium. 3/ey &ive you maturity 1enefits Bnorma!!y sum assuredC
and additiona! profit 1y (ay of 1onus2 &uaranteed additions; !oya!ty 1onus etc. money
po!icies a!so provide partia! payment 1ac) to you at pre-set time periods.
DEFINITION OF SOME TYPES OF POLICIES
1. ANNUITY
-n annuity is a steady stream of e6ua! payments t/at one receives every year2 or
every mont/ eit/er for !ife or a fixed num1er of years2 as return after ma)in& an
investment eit/er as a !ump sum or t/rou&/ insta!!ments paid over a certain num1er of
years2 a specific sum. 8pon t/e deat/ of t/e annuitant2 or at t/e expiry of t/e period fixed
for annuity payments2 t/e invested annuity fund is refunded usua!!y a!on& (it/ a sma!!
1onus. -nnuities differ from a!! ot/er forms of !ife insurance in one fundamenta! (ay-
t/ey do not provide any insurance cover 1ut offer a &uaranteed income for a certain
period or for !ife.
3ypica!!y annuities are 1ou&/t to &enerate income durin& one<s retired !ife2 (/ic/
is (/y t/ey are a!so ca!!ed pension p!ans. -n annuity provides a so!ution to t/e 1i&&est
financia! insecurity of o!d a&e retires and t/e income from sa!ary ceases.
5. ENDOWMENT
Endo(ment po!icies cover t/e ris) for a specified period at t/e end of (/ic/ t/e
sum assured is paid 1ac) to t/e po!icy/o!der a!on& (it/ t/e entire 1onus accumu!ated
durin& t/e term of t/e po!icy. It is t/is feature t/e payment of t/e endo(ment to t/e
po!icy/o!der upon t/e comp!etion of t/e po!icy<s term2 (/ic/ ri&/t!y accounts for t/e
popu!arity of endo(ment po!icies.
3ypica!!y2 one<s responsi1i!ity for t/e financia! protection of t/e fami!y reduces
si&nificant!y once t/e c/i!dren are &ro(n up and independent!y sett!ed. 3/e focus t/en
s/ifts to mana&in& a sma!!er fami!y per/aps on!y onese!f and one<s spouse after
retirementD t/is is (/ere t/e endo(ment t/e ori&ina! sum assured and t/e accumu!ated
1onus received 1ac) comes /andy. Gou can eit/er use t/e endo(ment amount for 1uyin&
an annuity po!icy to &enerate a mont/!y pension for t/e (/o!e !ife2 or put it in any ot/er
suita1!e investment of your c/oice. 3/is is t/e ma=or 1enefit of an endo(ment po!icy over
a (/o!e !ife.
:. MONEY BAC"
8n!i)e endo(ment p!ans2 in money 1ac) po!icies t/e po!icy/o!der &ets periodic
Fsurvivance paymentsF durin& t/e term of t/e po!icy and a !ump sum amount on
survivin& its term. In t/e event of t/e deat/ durin& t/e term of t/e po!icy2 t/e 1eneficiary
&ets fu!! sum assured (it/out any deductions for t/e amount paid ti!! date2 and no furt/er
premiums are re6uired to 1e paid. 3/ese types of po!icies are very popu!ar2 since t/ey can
1e tai!ored to &et !ar&e amount at a specific periods as per t/e needs of t/e po!icy/o!der.
FUTURE OF LIFE INSURANCE MAR"ET
Even at modest estimates t/e si5e of !ife insurance mar)et in India cou!d 1e
around 7s. 40000 1i!!ion coverin& =ust 250 mn peop!eM
.IC /ad en=oyed t/e monopo!y of t/e 1i& !ife insurance mar)et since 1*5$. .IC
(as in for a surprise no( an t/en (/en it found t/at2 amon& air cras/ casua!ties or rai!
accident victims2 on!y very fe( /ad !ife insurance cover. In fact .IC did attempt to
eva!uate t/e si5e of t/e mar)et and !oo) at 1road /omo&eneous se&ments of t/e mar)et
1ased on t/e data provided 1y 9ecennia! Census 7eport re!atin& to (or)er popu!ation
cate&ori5ed into &roups 1ased on occupations. ?o(ever .IC<s ma=or se&mentations (ere
t/e ur1an2 rura!2 ma!e2 fema!e2 medica! and non-medica! se&ments. 3/e census of
occupation data (as used more as a frame(or) for formu!atin& t/e 1usiness p!ans. 0ut2
no( (it/ t/e entry of ne( p!ayer2 very conscious of t/eir mar)et s/ares2 t/e eva!uation of
t/e si5e of t/e mar)et for !ife insurance assumes importance. 3/e mar)et si5e (it/ its
via1!e se&ments is to 1e identified and suita1!e products to meet t/e needs of t/ese
se&ments deve!oped.
.ife insurance mar)et covers t/e entire a&e ran&e of t/e popu!ation of 1000
mn in India. ?o(ever ta)in& into account t/eir economic conditions and t/eir
a1i!ity to pay t/e premium for some sort !ife insurance cover or an annuity2 t/e
num1er of e!i&i1!e prospects for !ife insurance may 1e put around 30: of t/e tota!
popu!ation vi52 300 mn. .IC /as on its 1oo)s as on date 125 mn po!icies. 7esearc/
/ad s/o(n2 t/at eac/ of t/ese /o!ders of t/e po!icies /ave on an avera&e2 1.$ Bas
many po!icy /o!ders /ave more t/an one po!icyC. 3/us t/e no of persons /o!din&
!ife insurance po!icies (it/ .IC &ood (or) out to %5 mn. 3/is means on!y 25: of
t/e potentia! mar)et /as so far covered2 !eavin& t/e remainin& %5:- a vast mar)et of 225
mn persons- to 1e covered.
#ar)et si5e ever expandin&M
3/is mar)et si5e is dynamic and ever expandin&. 3/e &ro(t/ is dictated 1y severa!
factors suc/ as>
1. -n addition of around 20 mn of ne( popu!ation eac/ year.
2. #ore and more persons due to improvements in economic conditions move
continuous!y into t/e 5one of peop!e (it/ a1i!ity to pay premium for a !ife
insurance po!icy.
3. #any amon& t/e existin& po!icy/o!ders are &ross!y under insured. 3/ey need
and can afford additiona! insurance. 3/ese can 1e made to =oin t/e mar)et as
potentia! prospects for additiona! insurance. 3/ese form t/e creamy !ayers
mar)et capa1!e of 1ein& very &ood source of /i&/ vo!ume of 1usiness.
3a)in& a!! t/ese factors into account it can 1e seen t/at t/e si5e of t/e mar)et for
!ife insurance in India is enormous. -ssumin& t/e num1er of persons (/o can 1e so!d an
insurance po!icy to 1e 250 mn2 in terms of num1er of po!icies2 t/is (or)s out to 400 mn
po!icies. In financia! terms2 ta)in& t/e avera&e si5e of t/e po!icy as 7s 1 !a)/2 t/e sum
assured (or)s out to 7s 40000 1n or H '00 1n. 3/e first year<s premium income can 1e
assume as 7s $250 per annum per po!icy. 3/e fi&ures (ou!d )eep increasin& year 1y year
due to t/e improvement in t/e economic conditions !eadin& to increase in t/e num1er of
potentia! prospects .
COMPANY PROFILE
COMPANY PROFILE
ICICI GROUP
OVERVIEW OF ICICI BAN"
ICICI 0an) is India<s second-!ar&est 1an) (it/ tota! assets of a1out 7s.14$2214
crore at 9ecem1er 312 2004 and profit after tax of 7s. 123*1 crore in t/e nine mont/s
ended 9ecem1er 312 2004 B7s. 12$3% crore in fisca! 2004C. ICICI 0an) /as a net(or) of
a1out 530 1ranc/es and extension counters and over 12''0 -3#s. ICICI 0an) offers a
(ide ran&e of 1an)in& products and financia! services to corporate and retai! customers
t/rou&/ a variety of de!ivery c/anne!s and t/rou&/ its specia!i5ed su1sidiaries and
affi!iates in t/e areas of investment 1an)in&2 !ife and non-!ife insurance2 venture capita!
and asset mana&ement. ICICI 0an) set up its internationa! 1an)in& &roup in fisca! 2002
to cater to t/e cross-1order needs of c!ients and !evera&e on its domestic 1an)in&
stren&t/s to offer products internationa!!y. ICICI 0an) current!y /as su1sidiaries in t/e
8nited Ain&dom and Canada2 1ranc/es in Sin&apore and 0a/rain and representative
offices in t/e 8nited States2 C/ina2 8nited -ra1 Emirates2 0an&!ades/ and Sout/ -frica
ICICI 0an)<s e6uity s/ares are !isted in India on t/e Stoc) Exc/an&e2 #um1ai
and t/e Nationa! Stoc) Exc/an&e of India .imited and its -merican 9epositary 7eceipts
B-97sC are !isted on t/e Ne( Gor) Stoc) Exc/an&e BNGSEC.
-s re6uired 1y t/e stoc) exc/an&es2 ICICI 0an) /as formu!ated a Code of
0usiness Conduct and Et/ics for its directors and emp!oyees.
-t -pri! 42 20052 ICICI 0an)2 (it/ free f!oat mar)et capita!i5ationN of a1out 7s.
30'.00 1i!!ion B8SH %.00 1i!!ionC ran)ed t/ird amon&st a!! t/e companies !isted on t/e
Indian stoc) exc/an&es.
ICICI 0an) (as ori&ina!!y promoted in 1**4 1y ICICI .imited2 an Indian
financia! institution2 and (as its (/o!!y-o(ned su1sidiary. ICICI<s s/are/o!din& in ICICI
0an) (as reduced to 4$: t/rou&/ a pu1!ic offerin& of s/ares in India in fisca! 1**'2 an
e6uity offerin& in t/e form of -97s !isted on t/e NGSE in fisca! 20002 ICICI 0an)<s
ac6uisition of 0an) of #adura .imited in an a!!-stoc) ama!&amation in fisca! 20012 and
secondary mar)et sa!es 1y ICICI to institutiona! investors in fisca! 2001 and fisca! 2002.
ICICI (as formed in 1*55 at t/e initiative of t/e Ior!d 0an)2 t/e 4overnment of India
and representatives of Indian industry. 3/e principa! o1=ective (as to create a
deve!opment financia! institution for providin& medium-term and !on&-term pro=ect
financin& to Indian 1usinesses. In t/e 1**0s2 ICICI transformed its 1usiness from a
deve!opment financia! institution offerin& on!y pro=ect finance to a diversified financia!
services &roup offerin& a (ide variety of products and services2 1ot/ direct!y and t/rou&/
a num1er of su1sidiaries and affi!iates !i)e ICICI 0an). In 1***2 ICICI 1ecome t/e first
Indian company and t/e first 1an) or financia! institution from non-Japan -sia to 1e
!isted on t/e NG -fter consideration of various corporate structurin& a!ternatives in t/e
context of t/e emer&in& competitive scenario in t/e Indian 1an)in& industry2 and t/e
move to(ards universa! 1an)in&2 t/e mana&ements of ICICI and ICICI 0an) formed t/e
vie( t/at t/e mer&er of ICICI (it/ ICICI 0an) (ou!d 1e t/e optima! strate&ic a!ternative
for 1ot/ entities2 and (ou!d create t/e optima! !e&a! structure for t/e ICICI &roup<s
universa! 1an)in& strate&y. 3/e mer&er (ou!d en/ance va!ue for ICICI s/are/o!ders
t/rou&/ t/e mer&ed entity<s access to !o(-cost deposits2 &reater opportunities for earnin&
fee-1ased income and t/e a1i!ity to participate in t/e payments system and provide
transaction-1an)in& services. 3/e mer&er (ou!d en/ance va!ue for ICICI 0an)
s/are/o!ders t/rou&/ a !ar&e capita! 1ase and sca!e of operations2 seam!ess access to
ICICI<s stron& corporate re!ations/ips 1ui!t up over five decades2 entry into ne( 1usiness
se&ments2 /i&/er mar)et s/are in various 1usiness se&ments2 particu!ar!y fee-1ased
services2 and access to t/e vast ta!ent poo! of ICICI and its su1sidiaries. In @cto1er 20012
t/e 0oards of 9irectors of ICICI and ICICI 0an) approved t/e mer&er of ICICI and t(o
of its (/o!!y-o(ned retai! finance su1sidiaries2 ICICI ersona! +inancia! Services
.imited and ICICI Capita! Services .imited2 (it/ ICICI 0an). 3/e mer&er (as approved
1y s/are/o!ders of ICICI and ICICI 0an) in January 20022 1y t/e ?i&/ Court of 4u=arat
at -/meda1ad in #arc/ 20022 and 1y t/e ?i&/ Court of Judicature at #um1ai and t/e
7eserve 0an) of India in -pri! 2002.
ICICI 0an) is India<s second !ar&est 1an) (it an asset 1ase of 7s. 10$'12 crores.
ICICI 1an) provides a 1road spectrum of financia! services to individua!s and companies.
3/is inc!udes mort&a&es2 car and persona! !oans2 credit and de1it cards and corporate and
a&ricu!tura! finance. 3/e 1an) services a &ro(in& customer 1ase of more t/an % mn
customer accounts and five mn 1ond/o!ders accounts t/rou&/ a mu!ti c/anne! access
net(or). 3/e inc!udes a1out 450 1ranc/es and extension counters2 1$%5 -3#s2 ca!!
centers and Internet 1an)in&. ICICI 1an) posted a net profit of 7s 120$ Crore for t/e year
ended #arc/ 312 2003. ICICI 1an) is t/e on!y Indian company to 1e rated a1ove t/e
country ratin& 1y t/e internationa! ratin& a&ency #oody<s and on!y t/e Indian company to
1e a(arded an investment &rade internationa! credit ratin&. 3/e en=oys t/e /i&/est ratin&
from a!! Indian !eadin& ratin& a&encies.
OVERVIEW OF ICICI VENTURE WING
ICICI "enture2 incorporated in 1*''2 is t/e most experienced and !ar&est private e6uity
and venture fund mana&ement company in India (it/ funds current!y under mana&ement
in excess of 7s.20 1i!!ion B8S9 400 mi!!ionC.
@ver t/e !ast 15 years2 ICICI "enture /as 1een successfu! in identifyin& trends
(e!! a/ead of t/e curve; 1e it retai!2 media and entertainment2 information tec/no!o&y2
rea! estate or p/armaceutica!s and 1iotec/no!o&y. 9urin& t/is period ICICI "enture
!aunc/ed and mana&ed ' funds (it/ a corpus exceedin& 7s. 201i!!ion B8S9 400 mi!!ionC.
Eac/ fund /ad a distinct investment t/eme and ICICI "enture today /as some of t/e 1est
)no(n and mana&ed companies in India in its portfo!io. ?erein ICICI "enture /as
fo!!o(ed t/e p/i!osop/y of 1ein& a mu!ti-sector p!ayer ensurin& an optimum 1a!ance of
ris) and return to its investors.
ICICI "enture /as t/e distinction of mana&in& a !ar&e num1er of exits in t/e
country. Iit/ over 100 !i6uidity events2 t/e or&ani5ation /as reaped ric/ experience and
is (e!! positioned to /and!e I@s2 strate&ic sa!e andDor mer&ers.
ICICI "enture /as a (ide net(or) of t/ird party investors2 (/ic/ inc!ude
domestic investors suc/ as pu1!ic sector 1an)s2 financia! institutions and insurance
companies. - si&nificant portion of t/e fund<s corpus is a!so from internationa!
deve!opment financia! institutions and internationa! funds.
3/e company /as over 25 6ua!ified professiona!s (it/ experience across sectors
and functions. 3/e capa1i!ities of t/e team2 structure of t/e or&ani5ation2 emp/asis on
va!ue creation and performance eva!uation matrices ena1!e ICICI "enture to extract
superior returns from its investments.
ICICI "enture /as no( !aunc/ed t/e India -dvanta&e +und2 (it/ a corpus of
7s.10 0i!!ion B8S9 225 mi!!ionC. 3/e +und (i!! invest in mid-si5ed &ro(t/ companies
for fundin& t/rou&/ expansions2 ac6uisitions and restructurin&. 3/e +und (i!! a!so focus
on me55anine fundin& and 1uyouts.
ICICI PRUDENTIAL
ICICI 789EN3I-. .ife Insurance (as esta1!is/ed in 2000 (it/ a commitment
to expand and res/ape t/e !ife insurance industry in India. 3/e company (as amon&st t/e
first private sector insurance company to 1e&in operations after receivin& approva! from
Insurance 7e&u!atory 9eve!opment -ut/ority BI79-C2 and in t/e same time since2 /as
ta)en severa! steps to(ards rea!i5in& its &oa!.
THE COMPANY
ICICI 789EN3I-. .ife Insurance Company is a =oint venture 1et(een ICIC2 a
premier financia! po(er/ouse and prudentia! p!c; a !eadin& internationa! financia!
services &roup /ead6uarters in t/e 8nited Ain&dom. ICICI rudentia! (as amon&st t/e
first private sector insurance company to 1e&in operations in 9ecem1er 2000 after
receivin& approva! from Insurance 7e&u!atory 9eve!opment -ut/ority BI79-C.
ICICI and 789EN3I-. came to&et/er in 1**3 to form prudentia! ICICI -sset
#ana&ement Company2 (/ic/ /as today emer&ed as one of t/e !eadin& mutua! funds in
India. 3/e t(o companies 1rin& to&et/er t(o of t/e stron&est financia! service 1rands in
-sia2 )no(n for t/eir professiona!ism2 exce!!ent 6ua!ity of service and !on& term
commitment to customers. 7idin& on t/e success of t/is re!ations/ip2 t/e t(o companies
=oined /ands once more in 20002 to form ICICI 789EN3I-. .I+E INS87-NCE2 (it/
a commitment to provide !eadin& -ed&e !ife insurance so!utions. ICICI 0an) /as %4:
sta)e in t/e company2 and rudentia! p!c /as 2$:.
3o ma)e ICICI rudentia! t/e dominant .ife and ensions p!ayer 1ui!t on trust 1y
(or!d-c!ass peop!e and service.
3/is (e /ope to ac/ieve 1y>
• 8nderstandin& t/e needs of customers and offerin& t/em superior products and
service
• .evera&in& tec/no!o&y to service customers 6uic)!y2 efficient!y and convenient!y
• 9eve!opin& and imp!ementin& superior ris) mana&ement and investment
strate&ies to offer sustaina1!e and sta1!e returns to our po!icy/o!ders
• rovidin& an ena1!in& environment to foster &ro(t/ and !earnin& for our
emp!oyees
• -nd a1ove a!!2 1ui!din& transparency in a!! our dea!in&s.
3/e success of t/e company (i!! 1e founded in its unf!inc/in& commitment to 5
core va!ues -- Inte&rity2 Customer +irst2 0oundary!ess2 @(ners/ip and assion. Eac/ of
t/e va!ues descri1e (/at t/e company stands for2 t/e 6ua!ities of our peop!e and t/e (ay
(e (or)
Ie do 1e!ieve t/at (e are on t/e t/res/o!d of an excitin& ne( opportunity2 (/ere
(e can p!ay a si&nificant ro!e in redefinin& and res/apin& t/e sector. 4iven t/e 6ua!ity of
our parenta&e and t/e commitment of our team2 t/ere are no !imits to our &ro(t/.
PRUDENTIAL PLC
Esta1!is/ed in 1'4'2 rudentia! !c is a !eadin& internationa! financia! services
company in 8A (it/ around 8S H 250 1n funds under mana&ement2 and more t/an 1$
mi!!ion customers (or!d(ide. rudentia! /as 1rou&/t to mar)et an inte&rated ran&e of
financia! services products t/at no( inc!udes>
• !ife assurance
• pensions
• mutua! funds
• 1an)in&
• investment mana&ement
• &enera! insurance
In -sia rudentia! is 8A<s !ar&est !ife insurance company (it/ a vast net(or) of
22 !ife and mutua! fund operations in 12 countries> C/ina2 ?on& Aon&2 India2 Indonesia2
Japan2 Aorea2 #a!ayasia2 /i!ippines2 Sin&apore2 3ai(an2 3/ai!and2 "ietnam. Since 1*232
prudentia! /as c/ampioned customer centric products and services2 supported 1y over
$0000 staff and a&ents across t/e re&ion.
DISTRIBUTION
ICICI 789EN3I-. /as one of t/e !ar&est distri1ution net(or)s amon&st private
!ife insurance in India2 /avin& commenced operations in 2' cities and to(ns in India.
3/ese are> -/meda1ad2 0an&a!ore2 C/andi&ar/2 C/ennai2 Coim1atore2 4ur&aon2
?ydera1ad, Indore2 Jaipur2 Ja!and/ar2 Aanpur2 Coc/in2 Ao!)otta2 Aottaym2 .uc)no(2
.ud/iana2 #adurai2 #an&a!ore2 #eerut2 Na&pore2 Nasi)2 Nodia2 Ne( 9e!/i, une2
3/ane2 "ododara2 "as/i.
3/e company /as a !ar&est num1er of 1anc assurance tie-ups2 /avin& a&reement
(it/ ICICI 0an)2 Citi 0an)2 -!!a/a1ad 1an)2 +edera! 1an)2 Sout/ Indian 0an)2 0an) of
India2 .ord Aris/na 0an)2 un=a1 and #a/aras/tra co-operative 0an)2 as (e!! as some
corporate a&ents. It /as a!so tied-up (it/ or&ani5ations !i)e 9a/n for distri1ution of
Sa!aam Oinda&i2 a po!icy for t/e socia!!y and economica!!y under privi!e&e sections of
society.
SERVICE
ICICI 789EN3I-. /as recruited and trained over 1'000 insurance a&ents to
interface (it/ and advice customers2 and /as t/e /i&/est num1er amon&st private !ife
insurers on t/e reno(ned #i!!ion 9o!!ar 7ound ta1!e B#973C. +urt/er2 it !evera&es its
state-of-t/e-art I3 infrastructure to provide superior 6ua!ity of service to customers.
MILESTONES
ICICI 789EN3I-. !ife insurance /as crossed 7s 500 crore premium income
mar) on #arc/ 312 2003 /avin& issued near!y 350000 po!icies for a sum assured of 7s
'%00 crore since its inception.
3/e !ast fisca! /ad 1een si&nificant &ro(t/ for ICICI 789EN3I-. across a!!
se&ments2 (it/ 24$'2% po!icies issued in t/e period -pri! 2002-#arc/ 20032 and 7s 34'
Crore premium from ne( 1usiness in t/e same period2 a 200 per cent &ro(t/ over t/e
previous fisca! B-pri! 2001-#arc/ 2002C.
3/e company /ad a!so met a!! its rura! and socia! sector o1!i&ations2 said a press
re!ease. 3/e &ro(t/ 1een driven 1y pensions and unit !in)ed products. It /as &arnered
23: of pensions premium amon&st a!! p!ayers for t/e period -pri! 2002-+e1ruary 2003
and 34: in +e1 a!one. 3oday t/e company /as esta1!is/ed itse!f t/e num1er one private
!ife insurer in t/e country.
HISTORY:
Incorporated on Ju!y 202 2000 it is a %4>2$2 =oint venture 1et(een ICICI and
rudentia! p!c of 8.A. in Novem1er 20002 ICICI rudentia! .ife Insurance (as &ranted
Certification of 7e&istration for carryin& out .ife Insurance 1usiness 1y t/e insurance
7e&u!atory , 9eve!opment -ut/ority of India. 3/e company issued its first po!icy on
9ecem1er 122 2000.
Y'/$ (3 $'8+'C 5665-566::
ICICI rudentia! /as conso!idated its position as t/e !eadin& private !ife insurer in
India. ICICI rudentia!<s annua!i5ed premium &re( more t/an t/ree fo!d over t/e
previous year. Continuin& (it/ its <Customer +irst< p/i!osop/y2 ICICI rudentia! /as
si&nificant!y expanded its presence to 2* operationa! 0ranc/es B2001-2002> 1$C2 (it/ t/e
-dvisor +orce &ro(in& to over 1'000. It /as a!so stren&t/ened its -!ternate 9istri1ution
c/anne!s2 i.e. 0ancassurance2 Corporate -&ents and 9irect #ar)etin&2 ma)in& purc/ase
of insurance more accessi1!e. 0ancassurance and 9irect #ar)etin& c/anne!s /ave
contri1uted to over 1': of t/e -nnua!i5ed remium.
ICICI rudentia! (as amon&st t/e first to identify t/e emer&in& opportunity in t/e
ension se&ment and !aunc/ed t(o !in)ed pension products .ife time ension and .ife
.in) ension2 (/ic/ /ave 1een (e!! received in t/e mar)et.
MANAGEMENT
BOARD OF DIRECTORS
ICICI rudentia! .ife Insurance Company .imited 0oard comprises reputed peop!e
from t/e finance industry 1ot/ from India and a1road.
#r. A.". Aamat/2 C/aiman
#r. #ar) Nor1on
#rs. .a!ita 9. 4upte
#rs. Aa!pana #orparia
#rs. C/anda Aoc//ar
#r. Aevin ?o!m&ren
#r. #..#odi
#r. 7 Naryanan
#s S/i)/a S/arma
MANAGEMENT TEAM
#s S/i)/a S/arma2 #ana&in& 9irector
#r. Sandeep 0atra2 C/ief +inancia! @fficer , Company Secretary
#r. S/u1/ro J. #itra2 C/ief - ?uman 7esources
#r. uneet Nanda2 ?ead - Investments
#s. -nita ai2 C/ief - @perations , 8nder(ritin&
#r. ". 7a=a&opa!an2 -ppointed -ctuary
#r. S/rid/ar Set/uram2 C/ief - Sa!es , #ar)etin&
#r. -ni! 3i)oo2 ?ead - Information 3ec/no!o&y.
VISION-MISSION
VISION
3o ma)e ICICI rudentia! t/e dominant .ife and ensions p!ayer 1ui!t on trust
1y (or!d c!ass peop!e and service.
3/is (e /ope to ac/ieve 1y>
• 8nderstandin& t/e needs of customers and offerin& t/em superior products and
service
• .evera&in& tec/no!o&y to service customers 6uic)!y2 efficient!y and convenient!y.
• 9eve!opin& and imp!ementin& superior ris) mana&ement and investment strate&ies to
offer sustaina1!e and sta1!e returns to our po!icy/o!ders.
• rovidin& an ena1!in& environment to foster &ro(t/ and !earnin& for our emp!oyees.
• -nd a1ove a!!2 1ui!din& transparency in a!! our dea!in&s.
3/e success of t/e company (i!! 1e founded in its unf!inc/in& commitment to 5 core
va!ues>
• Inte&rity
• Customer +irst
• 0oundary!ess
• @(ners/ip
• assion
Eac/ of t/e va!ues descri1e (/at t/e company stands for2 t/e 6ua!ities of our
peop!e and t/e (ay (e (or). Ie do 1e!ieve t/at (e are on t/e t/res/o!d of an existin&
ne( opportunity2 (/ere (e can p!ay a si&nificant ro!e in redefinin& and res/apin& t/e
sector. 4iven t/e 6ua!ity of our parenta&e and t/e commitment of our team2 t/ere are no
!imits to our &ro(t/.
VISION-MISSION
3o 1e dominant !ife and pension p!ayers 1ui!t on trust 1y (or!d c!ass peop!e
and service.
INTEGRITY
• Stand up /onest!y and fear!ess!y for (/at t/ey tru!y care a1out.
• -!(ays act in a consistent and e6uita1!e manner.
• 9onEt compromise t/e future to pay for t/e present.
CUSTOMER FIRST
• @(n t/e customer> 9e!iver t/e promise.
• .isten active!y2 stretc/ continua!!y to add va!ue to customers and c/anne!
partners
BOUNDARYLESS
• Never say Fits not my =o1F &o 1eyond t/e ca!! of duty.
• Experiment- 1e!ieve anyt/in& is possi1!e
• See) ne( ideas re&ard!ess of source
• S/are ideas and t/ou&/ts free!y across !eve!s and functions
OWNERSHIP
• If it is to 1e2 it is up to me
• 0ias for action
• @(n mista)es. .earn from fai!ures
• Confront /ard facts2 pursue &oa!s re!ent!ess!y
• -ccounta1!e for team performance
PASSION
• Iinnin& instinct- transmit 1ound!ess ener&y and ent/usiasm to drive
resu!ts
• Stand up and ma)e a difference - c/a!!en&e status 6uo and drive c/an&e
• 9emonstrate speed for competitive advanta&e
• assionate!y nurture and re(ard exce!!ence
PRODUCTS
PRODUCTS
I,4%$/,&' S(.%#+(,4 F($ I,2+8+2%/.4:
ICICI 789EN3I-. .ife Insurance offers a ran&e of innovative2 customer centric
products t/at meet t/e needs of customer at every !ife sta&e. Its 13 products can 1e en/anced (it/
up to four riders2 to create a customi5ed so!ution for eac/ po!icy/o!der.
S/8+,- S(.%#+(,4
ICICI 789EN3I-. Save and rotect is a traditiona! endo(ment savin&s p!an
t/at offers !ife protection a!on& (it/ ade6uate returns.
ICICI 789EN3I-! Cas/0an) is an anticipated endo(ment po!icy idea! for
meetin& mi!estone expenses !i)e a c/i!d<s marria&e2 expenses for c/i!d<s education or
purc/ase of an asset.
P$(#'&#+(, S(.%#+(,4
ICICI 789EN3I-. .ife 4uard is a protection p!an2 (/ic/ offers !ife covers at
very !o( cost. It is avai!a1!e in t/ree options - !eve! term assurance2 !eve! assurance (it/
return of premium and sin&!e premium.
CD+.2 S(.%#+(,4
ICICI 789EN3I-. Smart Aid provides &uaranteed educationa! 1enefits to a
c/i!d a!on& (it/ !ife insurance cover for t/e parent (/o purc/ases t/e po!icy. 3/e po!icy
is desi&ned to provide money at important mi!estones in c/i!d<s !ife.
M/$<'# L+,<'2 S(.%#+(,4
ICICI 789EN3I-. .ife.in) is a sin&!e premium #ar)et .in)ed Insurance
!an2 (/ic/ com1ines !ife insurance cover (it/ t/e opportunity to stay2 invested in t/e
stoc) mar)et.
ICICI 789EN3I-. .ife3ime offers customers t/e f!exi1i!ity and contro! to
customi5e t/e po!icy to meet t/e c/an&in& needs at different !ife sta&es. It offers t/ree
investment options
• 4ro(t/ !an
• Income !an
• 0a!anced !an
R'#+$')',# S(.%#+(,4
• ICICI 789EN3I-. +orever .ife is retirement product tar&eted at individua!s in
t/eir 30<s
• ICICI 789EN3I-. .ife3ime ension is a re&u!ar premium mar)et !in)ed pension
p!an.
• ICICI 789EN3I-. .ife.in) ension is a sin&!e premium mar)et !in)ed pension
p!an.
S+,-.' P$')+%) S(.%#+(,4
• ICICI 789EN3I-. -ssure Invest is a sin&!e premium savin&s product (it/ !ife
cover for terms of 52 % or 10 years.
• ICICI 789EN3I-. 7eassure is a retirement product for senior citi5ens (/o are on
t/e ver&e of retirement or /ave =ust retired.
• ICICI 789EN3I-. a!so !aunc/ed Fsa!aam 5inda&iF2 a socia! sector &roup insurance
po!icy tar&eted at t/e economica!!y under privi!e&ed sections of t/e society.
G$(%* I,4%$/,&' S(.%#+(,4
ICICI 789EN3I-. a!so offers 4roup Insurance So!utions for companies
see)in& to en/ance 1enefits to t/eir emp!oyees.
ICICI 789EN3I-. 4roup 4ratuity !an> ICICI ru<s 4roup 4ratuity !an
/e!ps emp!oyers fund t/eir statutory &ratuity o1!i&ation in a scientific manner. 3/e p!an
can a!so 1e customi5ed to structure sc/emes t/at can provide 1enefits 1eyond t/e
statutory o1!i&ations.
ICICI PRUDENTIAL GROUP SUPERANNUATION PLAN:
ICICI ru offers a f!exi1!e defined contri1ution superannuation sc/eme to provide
a retirement )itty for eac/ mem1er of t/e &roup. Emp!oyees /ave t/e option of c/oosin&
from various annuity options or optin& for a partia! commutation of t/e annuity at t/e
time of retirement.
ICICI PRUDENTIAL GROUP TERM PLAN:
ICICI ru<s f!exi1!e &roup term so!ution /e!ps to provide afforda1!e cover to
mem1ers of a &roup. 3/e cover cou!d 1e uniform or 1ased desi&nation or ran) or a
mu!tip!e of sa!ary. 3/e 1enefit t/e po!icy is paid to t/e 1eneficiary nominated 1y t/e
mem1er on /isD/er deat/.
FLEXIBLE RIDER OPTIONSE
ICICI 789EN3I-. !ife offers for f!exi1!e riders2 (/ic/ can 1e added to t/e
1asic po!icy at a mar&ina! cost2 dependin& on t/e specific needs of t/e customer.
• -ccident and disa1i!ity 1enefit> if t/e deat/ occurs as t/e resu!t of an accident durin&
t/e term of t/e po!icy t/e 1eneficiary receives an additiona! amount e6ua! to t/e sum
assured under t/e po!icy. If t/e deat/ occurs (/i!e
• .eve! 3erm Cover> 3/is rider provides t/e option to increase t/e ris) cover. It may 1e
increased for an additiona! amount upto a maximum of t/e existin& 1asics sum
assured on your po!icy
• Critica! I!!ness 0enefit> protects t/e insured a&ainst t/e financia! !oss in t/e event of *
specified critica! i!!nesses. 0enefits are paya1!e to t/e insured for medica! expenses
prior to deat/.
• #a=or Sur&ica! -ssistance 0enefit> provides financia! support in t/e event of medica!
emer&encies2 ensurin& t/at 1enefits are paya1!e to t/e !ife assured for medica!
expenses incurred for sur&ica! procedures. Cover is offered a&ainst 43 different
sur&ica! procedures.
AWARENESSF
-ccordin& to Sau&ata 4upta C/ief - #ar)etin& of ICICI ru !ife<s
communication strate&ies /ave 1een very successfu! in 1ui!din& t/e 1rand and drivin&
a(areness of t/e company and t/e cate&ory. @74-#ar&<s 0rand trac) survey underta)en
!ast year indicate t/at t/ou&/ a(areness of .IC stands at 100:2 ICICI ru !ife stands not
far 1e/ind in t/e second p!ace at %0:. +urt/er t/e a(areness scores for ICICI ru !ife
dou1!e 1et(een +e1ruary 2001 and Septem1er 2001.
@74 #ar& researc/ a!so s/o(ed t/at t/e communication not on!y created
sa!iency and a(areness2 1ut a!so succeeded in inf!uencin& t/e 1uyin& decision. ICICI ru
!ife emer&ed far a/ead of ot/er private p!ayers as far as s/are of (a!!et (ent2 (it/ 52: of
t/e respondents sayin& t/at t/ey intended to 1uy po!icy from ICICI ru !ife.
ADVERTISING EFFECTIVENESSF
ICICI ru is a case study in t/e ro!e of mar)etin& in res/apin& an industry. It
/i&/!i&/ts /o( an industry (/ere Fse!!F and Fpus/F (ere often used (ords and consumer
(as not/in& more t/an a fi!e num1er2 /as c/an&ed to one (/ere Fconsumer preferenceF
and Fconsumer pu!!F ru!e t/e roost. ?ere<s a !oo) at /o( ICICI ru c/an&ed t/e ru!es of
t/e &ames and emer&ed a !eader in t/e process.
BAC"GROUND
I/en t/e insurance sector (as !i1era!i5ed in 20002 t/e private p!ayers contend
(it/ a fe( issues. 7atio of premium to 49 (as !o(> 1.3: of 49 (as invested in
insurance. Insurance penetration (as at an a1ysma! 22: of insura1!e popu!ation. 0esides
t/e a1ove t/e private p!ayers (ere faced (it/ attitudina! 1arriers2 perception of insurance
/as a tax savin& too! and !ac) of a consumer centric approac/ in service and product
offerin&s.
THE MAR"ETING CHALLENGES FACING ICICI P$%:
3/e c/a!!en&e t/erefore (as to c/an&e esta1!is/ed cate&ory drivers Bdeat/
payment and 3ax savin&C and to &et t/e consumer to eva!uated insurance on a more
emotiona! p!at form rat/er t/an a mere rationa! decision. Btax savin&sC.
THE CAMPAIGN OB>ECTIVES:
• 7eposition t/e cate&ory in t/e consumer<s mind. Inf!uence t/e consumer to vie( it as
a protection instrument and not a tax savin& product a!one.
• In t/e process2 create differentiation for t/e ICICI ru 1rand as a provider of socia!
security and fami!y protection.
• -c/ieve !eaders/ip status in sa!iency2 ima&e and product parameters.
• 0ui!d credi1i!ity and trust.
CREATIVE STRATEGY:
3/e essence of t/e creative strate&y is to &et t/e consumer to re !oo) at insurance
as a means to !ead a (orry free !ife and not as a necessary evi!. 3o t/is effect t/e core
1rand insi&/t /i&/!i&/ted (as F-s /ead of t/e fami!y2 it is my responsi1i!ity to ta)e care
of my !oved ones and protect t/em from t/e uncertainties of !ifeF2 summed up in t/e
advertisin& idea> <(e cover you at every step in !ife<
MAR"ET STRATEGY:
In a mar)et !i)e!y to 1e c!uttered2 (e used mu!tip!e touc/ points to reac/ t/e
consumer. 3/e ro!e for eac/ medium (as envisa&ed. 3/e 3" medium (as used to
en/ance t/e emotiona! !in) (it/ t/e 1rand. Strate&ic use of 15 sec. Edits faci!itated /i&/
fre6uency !eve!s. In print2 t/e cost per response rat/er t/an t/e cost per t/ousand as
responses (ere measured in form of ca!!-ins. 7adio +#2 Cinema2 Internet (ere used to
create a media mu!tip!ier effect.
THE RESULTS OF COMMUNICATION EFFORTS:
0ein& num1er one in a(areness and sa!iency. -(areness> ICICI ru s/o(ed a
si&nificant =ump in a(areness 1et(een +e1 and Sept 2001. Ima&e> /i&/est score amon&
a!! insurance p!ayers inc!udin& .IC2 on ima&e parameters !i)e safety2 modernity2 service2
&ood returns
Etc. intention to invest> next on!y to .IC as per researc/
SUM UP
In =ust over a year ICICI 789EN3I-. /as emer&ed as India<s P 1 private !ife
insurance company (it/ a!most 50: of t/e private p!ayers /as so!d /i&/est num1er of
po!icies 1ot/ in vo!ume and va!ue.
-N-.GSIS @+ 3?E Q8ES3I@NN-7IE @+ 3?E E#.@GEES
1. D( 0(% D/8' 8/$+(%4 (#D'$ +,#'$'4#4 (4(&+/., $'.+-+(%4), CD+&D $')/+, ,'-.'&#'2
1'&/%4' 0(% 2( ,(# -'# #+)' #( /##',2 #( #D'4'
N'8'$ ?9
O&&/4+(,/..0 ;9
S()'#+)'4 759
F$'G%',#.0 :A9
V'$0 69
SOCIAL ASPECTS
8%
4%
52%
36%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently
5. D( 0(% 3''. 4#/-,/,# +, 0(%$ $(.'
N'8'$ ;9
O&&/4+(,/..0 159
S()'#+)'4 :59
F$'G%',#.0 759
V'$0 69
ROLE STAGNATION
4%
12%
32%
52%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently
:. A$' 0(% /1.' #( 4/#+430 #D' &(,3.+&#+,- 2')/,24 (3 #D' 8/$+(%4 *''$ .'8'. *'(*.'
N'8'$ 159
O&&/4+(,/..0 5;9
S()'#+)'4 5;9
F$'G%',#.0 :A9
V'$0 ;9
Role Expectation Conflict
12%
24%
24%
36%
4%
Never
Occasionally
Sometimes
Frequently
Very frequently
;. W(%.2 0(% .+<' #( #/<' )($' $'4*(,4+1+.+#0 #D/, /# *$'4',#
N'8'$ ?9
O&&/4+(,/..0 5;9
S()'#+)'4 1A9
F$'G%',#.0 :A9
V'$0 1A9
Role Erosion
8%
24%
16%
36%
16%
Never
Occasionally
Sometimes
Frequently
Very frequently
7. TD' /)(%,# (3 C($< 0(% D/8' #( 2( +,#'$3'$'4 C+#D #D' G%/.+#0 0(% C/,# #(
)/+,#/+,
N'8'$ ;9
O&&/4+(,/..0 ;9
S()'#+)'4 ;?9
F$'G%',#.0 ;69
V'$0 ;9
Role Overload
4%
4%
48%
40%
4%
Never
Occasionally
Sometimes
Frequently
Very frequently
A. I4 #D'$' ,(# ',(%-D +,#'$/&#+(, 1'#C'', 0(%$ $(.' /,2 (#D'$ $(.'4
N'8'$ ?9
O&&/4+(,/..0 ?9
S()'#+)'4 :59
F$'G%',#.0 759
V'$0 69
Role Isolation
8%
8%
32%
52%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently
@. D( 0(% C+4D #( /&G%+$' )($' 4<+..4 #( D/,2.' #D' $'4*(,4+1+.+#+'4 (3 0(%$ $(.'
N'8'$ ;9
O&&/4+(,/..0 ?9
S()'#+)'4 569
F$'G%',#.0 :59
V'$0 :A9
Personal Inadequacy
4%
8%
20%
32%
36%
Never
Occasionally
Sometimes
Frequently
Very frequently
?. I3 0(% D/2 3%.. 3$''2() #( 2'3+,' 0(%$ $(.' 0(% C(%.2 1' 2(+,- 4()' #D+,-4
2+33'$',# 3$() CD/# 0(% 2( ,(C
N'8'$ 69
O&&/4+(,/..0 1A9
S()'#+)'4 ;;9
F$'G%',#.0 569
V'$0 569
SelfRole !istance
0%
16%
44%
20%
20%
Never
Occasionally
Sometimes
Frequently
Very frequently
9. S'8'$/. /4*' (3 0(%$ $(.' /$' 8/-%' /,2 %,&.'/$
N'8'$ ;69
O&&/4+(,/..0 1A9
S()'#+)'4 159
F$'G%',#.0 :59
V'$0 69
Role A"#i$uity
40%
16%
12%
32%
0%
Never
Occasionally
Sometimes
Frequently
Very frequently
16. D( 0(% C+4D #( D/8' )($' 3+,/,&+/. $'4(%$&'4 3($ #D' C($< /44+-,'2 #( 0(%
N'8'$ ;9
O&&/4+(,/..0 ;9
S()'#+)'4 ;9
F$'G%',#.0 5?9
V'$0 A69
Resource Inadequacy
4%
4%
4%
28%
60%
Never
Occasionally
Sometimes
Frequently
Very frequently
SUMMARY OF ANALYSIS
3/e ana!ysis of t/e pro=ect>
• #ost of t/e emp!oyees fee! t/at t/eir ot/er socia! aspects remain
ne&!ected due to (or)!oad2 (/ic/ is incompati1!e (it/ or&ani5ationa!
ro!e.
• #ost of t/e emp!oyees fee! t/at t/eir ro!es are sta&nant
• Some of t/e emp!oyees are not a1!e to satisfy t/e conf!ictin& demands of t/e
various peer !eve! peop!e.
• #ost of t/e emp!oyees (ou!d !i)e to ta)e more responsi1i!ity t/an t/e present
• #ost of t/e emp!oyees fee! t/at t/eir (or) interferes (it/ t/e 6ua!ity t/ey (ant to
maintain in t/eir =o1
• #ost of t/e emp!oyees fee! t/at t/ere is not enou&/ interaction 1et(een t/eir ro!e
and ot/er ro!es 1ecause eac/ one of t/em is (or)in& independent!y.
• #ost of t/e emp!oyees (is/ to ac6uire more s)i!!s to /and!e t/e responsi1i!ities of
t/eir ro!e
• Some of t/e emp!oyees fee! t/at if t/ey are &iven fu!! freedom to define t/eir ro!e
t/ey (i!! do some t/in&s different from (/at t/ey do no(.
• #ost of t/e emp!oyees fee! t/at t/ey s/ou!d 1e provided (it/ more financia!
resources for t/e (or) assi&ned.
•
SUMMARY OF SUGGESTIONS
• I/en an individua! occupies more t/an 1 ro!e t/ere are 1ound to 1e
conf!icts 1et(een t/e different ro!es t/at /e occupies. Suc/ inter-ro!e
conf!icts are 6uite fre6uent in a modern society2 (/ere an individua! is
increasin&!y occupyin& mu!tip!e ro!es in various or&ani5ations and
&roups. So t/e or&ani5ation s/ou!d t/ro( a !i&/t on t/eir emp!oyees
socia! aspects. 3/e or&ani5ation s/ou!d improve t/e faci!ities for
!eisure and recreation; fact of peop!e doin& t/in&s for en=oyment2
(/en t/ey are not (or)in&. 3/e or&ani5ation s/ou!d arran&e pro&rams
for entertainment. -!so a p!ace for re!axation. Create a p!ace for
indoor &ames !i)e carom2 ta1!e tennis etc
• -s t/e individua! &ro(s o!der2 /e a!so &ro(s in t/e ro!e t/at /e
occupies in an or&ani5ation of t/e individua! t/at t/e ro!e c/an&es2 and
(it/ t/is c/an&e in ro!e2 t/e need for ta)in& up a ne( ro!e 1ecomes
crucia!. In order to 1e promoted t/e nit mana&ers /ave to reac/ certain
tar&ets set to t/em. 7eac/in& t/ese tar&ets sometimes 1ecomes very
difficu!t. 3/is is 1ound to produce stress. 3/us t/e or&ani5ation s/ou!d
/ave a systematic strate&y of manpo(er deve!opment.
• I/en t/ere are conf!ictin& expectations or demands 1y different ro!e
senders2 t/e ro!e occupant may experience t/is stress. 0ut most of t/e
emp!oyees are a1!e to satisfy t/e demands of t/e various peer !eve!
peop!e.
0ut some emp!oyees are not a1!e to satisfy t/e expectations from t/e
1oss2 su1ordinates2 peers or c!ients. 3/e or&ani5ation s/ou!d provide
t/e emp!oyees (it/ fu!! information a1out t/e products so t/at t/ey
are a1!e to satisfy t/e peers or c!ients.
• - ro!e occupant may fee! t/at t/e functions2 (/ic/ /e (ou!d !i)e to
perform2 are 1ein& performed 1y some ot/er ro!e. 3/e stress fe!t may
1e ca!!ed ro!e erosion. Some important ro!e expectations of t/e
emp!oyee are s/ared 1y ot/er ro!es (it/in t/e ro!e set. So t/e
or&ani5ation s/ou!d &ive a c/ance to emp!oyees (/o are (i!!in& to
ta)e more responsi1i!ities to en/ance t/eir performance. -nd t/us
provide trainin&2 &uidance and assistance to t/e emp!oyees
• I/en t/e ro!e occupant fee!s t/at t/ere are too many expectations
from t/e si&nificant ot/ers in /is ro!e set2 /e experiences ro!e
over!oad. Some emp!oyees fee! t/at t/ey cannot possi1!y finis/ t/e
(or) (it/in t/e time !imit. 3/e emp!oyees s/ou!d 1e &iven sufficient
time to comp!ete t/e (or) since it is an insurance industry2 &ettin& t/e
po!icies is 6uite difficu!t
• I/en a ro!e occupant fee!s t/at /e is not prepared to underta)e t/e
ro!e effective!y2 /e may experience t/is stress. -!most a!! t/e
emp!oyees (is/ to ac6uire more s)i!!s 1ecause t/e or&ani5ation is
!aunc/in& ne( products in t/e mar)et for t/e c!ients and so t/e
emp!oyees s/ou!d posses enou&/ )no(!ed&e2 s)i!!s2 trainin& a1out t/e
product 1ecause (it/out enou&/ preparation or orientation t/ey are
!i)e!y to experience t/is type of stress
So t/e or&ani5ation s/ou!d prepare t/e emp!oyees for t/e assi&ned
ne( ro!e.
• 3/is stress arises out of t/e conf!ict 1et(een t/e se!f-concept and t/e
expectations from t/e ro!e2 as perceived 1y t/e ro!e occupant. Suc/
conf!icts are common2 a!t/ou&/ t/ey may not 1e so severe. Some
emp!oyees are (i!!in& to do t/in&s different from (/at t/ey do no(.
So t/e or&ani5ation s/ou!d support suc/ emp!oyees so t/at t/ey can
&enerate &ood 1usiness2 (/ic/ in turn (i!! 1enefit t/e emp!oyees and
a!so t/e or&ani5ation.
• 7esource Inade6uacy stress is experienced (/en t/e resources
re6uired 1y t/e ro!e occupant for performin& t/e ro!e effective!y are
not avai!a1!e2 suc/ as information2 peop!e2 materia!s2 finance or ot/er
faci!ities. 3/e unit mana&ers /ave to recruit 25 advisors to &enerate
1usiness from t/em. +or t/is purpose t/ey /ave to &o for fie!d(or)
and /unt for t/em. So in t/is process t/ey /ave to spend t/e money in
!oo)in& out for t/e efficient peop!e. So t/e company so provides
financia! resources and transportation faci!ities to t/e emp!oyees. 3/is
(i!! reduce t/e stress of t/e emp!oyees and t/us t/ey (i!! 1e a1!e to
perform t/ey ro!e effective!y (it/ t/e avai!a1i!ity of ade6uate
resources.
LIMITATIONS OF THE STUDY
• Since private !ife insurance is t/e ne( t/eory in t/e Indian mar)et2 an in dept/
study (as not possi1!e.
• Some of t/e 8nit #ana&ers (ere en&a&ed in t/eir (or) and (ere not a1!e to &ive
t/eir opinion a1out t/eir (or)in& process.
• 3ime Constraint
CONCLUSION
3o conc!ude2 I (ou!d !i)e to say t/at (or)in& (it/ ICICI rudentia! for 2 mont/s
(as a &reat experience. -nd I fee! proud 1e an advisor of an esteemed company2 as ICICI
rudentia! is )no(n for its !eaders/ip in t/e private !ife insurance sector.
3/e company s/ou!d p!an a/ead and practice &ood time mana&ement. It s/ou!d
a!so /e!p t/e emp!oyees to deve!op a sound p/i!osop/y of !ife and maintain a positive
attitude.
Stress #ana&ement 1y or&ani5ation s/ou!d 1e desi&ned to reduce t/e /armfu! effects of
stress in a (ay
• ?e!p emp!oyees modify t/eir perception and understandin& of (or) stress
• ?e!p emp!oyees cope more effective!y (it/ t/e conse6uences of stress.
• ?e!p t/e emp!oyees to identify and t/en modify or e!iminate (or) stressors
HA 4#%20 (, S#$'44 M/,/-')',# /# ICICI PRUDENTIALI
3/e information &iven 1y you (i!! 1e used on!y for t/e academic purpose2 (i!! 1e of
immense va!ue and (ou!d assist me in t/is endeavor. 3/us )ind!y co-operate
Name of emp!oyee >
-&e >
4ender > #a!e +ema!e
#arita! Status > #arried 8nmarried
@ccupation >
1.9o you /ave various ot/er interests Bsocia!2 re!i&iousC2 (/ic/ remain ne&!ected
1ecause you do not &et time to attend to t/ese
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
2. 9o you fee! sta&nant in your ro!e
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
3. -re you a1!e to satisfy t/e conf!ictin& demands of t/e various peer !eve! peop!e
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
4. Iou!d you !i)e to ta)e more responsi1i!ity t/an at present
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
5. 3/e amount of (or) you /ave to do interferes (it/ t/e 6ua!ity you (ant to maintain
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
$. Is t/ere not enou&/ interaction 1et(een your ro!e and ot/er ro!es
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
%. 9o you (is/ to ac6uire more s)i!!s to /and!e t/e responsi1i!ities of your ro!e
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
'. If you /ad fu!! freedom to define your ro!e you (ou!d 1e doin& some t/in&s
different from (/at you do no(
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
*. Severa! aspects of your ro!e are va&ue and unc!ear
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
10. 9o you (is/ to /ave more financia! resources for t/e (or) assi&ned to you
Never
B0C
@ccasiona!!y
B1C
Sometimes
B2C
+re6uent!y
B3C
"ery +re6uent!y
B4C
1. @r&ani5ationa! 1e/avior > Jo/n I. Ne(strom
Aeit/ 9avis
2. #ana&in& ?uman 7esources > Iayne. +. Cascio
3. #a)in& @r&ani5ationa! 7o!es Effective > 8dai aree)
4. Ie1-Site > icicipru!ife.com 2 &oo&!e.com
5. Journa!s > Company Journa!s , #a&a5ine
WD/# +4 S#$'44
Stress is t/e &enera! term app!ied to t/e pressures peop!e fee! in !ife. 3/e presence
of stress at (or) is a!most inevita1!e in many =o1s. ?o(ever2 individua! differences
account for a (ide ran&e of reactions to stress2 a tas) vie(ed as c/a!!en&in& 1y one
person may produce /i&/ !eve!s of anxiety in anot/er. I/en pressure 1e&ins to 1ui!d up2
it can cause adverse strain on personEs emotions2 t/ou&/t processes2 and p/ysica!
condition. I/en stress 1ecomes excessive2 emp!oyees deve!op various symptoms of
stress t/at can /arm t/eir =o1 performance and /ea!t/2 and even t/reaten t/eir a1i!ity to
cope (it/ t/e environment. Stress a!so !eads to p/ysica! disorders2 1ecause t/e interna!
1ody system c/an&es to try to cope (it/ stress. It is important t/at stress2 1ot/ on and off
t/e =o12 1e )ept at a !eve! !o( enou&/ for most peop!e to to!erate (it/out deve!opin&
eit/er emotiona! or p/ysica! disorders.
Stress can 1e eit/er temporary or !on&-term2 eit/er mi!d or severe. 3/e effects on
an emp!oyee depend most!y on /o( !on& its causes continue2 /o( po(erfu! t/ey are2
and /o( stron& t/e emp!oyeeEs recovery po(ers are. If stress is temporary and mi!d2 most
peop!e can /and!e it or at !east recover from its effects rat/er 6uic)!y.
Stress is simp!y t/e 1ody<s non-specific response to any demand made on it.
Stress is not 1y definition synonymous (it/ nervous tension or anxiety. Stress provides
t/e means to express ta!ents and ener&ies and pursue /appiness; it can a!so cause
ex/austion and i!!ness2 eit/er p/ysica! or psyc/o!o&ica!; /eart attac)s and accidents. 3/e
important t/in& to remem1er a1out stress is t/at certain forms are norma! and essentia!.
-s t/e 1ody responds to various forms of p/ysica! or psyc/o!o&ica! stress2 certain
predicta1!e c/an&es occur. 3/ese inc!ude increased /eart rate2 1!ood pressure Bsysto!ic
and diasto!icC2 and secretions of stimu!atory /ormones. 3/ese responses to stress (i!!
occur (/et/er t/e stress is positive or ne&ative in nature. In !ay terms2 it is )no(n as t/e
Ffi&/t or f!i&/tF mec/anism. Continua! exposure !o(ers t/e 1ody<s a1i!ity to cope (it/
additiona! forms of psyc/o!o&ica! or p/ysio!o&ica! stress. 3/e resu!ts of continuin& stress
may cause disruption in one or more of t/e fo!!o(in& areas of /ea!t/> p/ysica!2 emotiona!2
spiritua! andDor socia!.
Stress is a process t/at 1ui!ds. It<s more effective to intervene ear!y in t/e process
rat/er t/an !ater. 3ry to 1ecome a(are of t/e si&ns t/at su&&est t/e process /as 1e&un
Stress is t/e (ay your 1ody responds to t/e demands p!aced on it. ositive or F&oodF
stress can /e!p you concentrate and focus. In some instances2 it actua!!y increases your
a1i!ity to survive. Gour 1ody<s response to stress can 1e /ormona!2 suc/ as an adrena!ine
rus/. It can a!so 1e a rise in 1!ood pressure2 1!ood su&ar2 or 1ody temperature. 3/ese
p/ysica! reactions can often ma)e you more a!ert; &ive you more acute eyesi&/t or &reater
stren&t/. 3/at<s /o( your 1ody &ives you (/at you need to act. Idea!!y2 your 1ody
automatica!!y re!axes after you /ave /and!ed t/e situation. Gour p/ysica! responses
norma!i5e and you are a1!e to return to a state of rest. 3/is process a!!o(s you to &at/er
p/ysica! and emotiona! ener&y (/ic/ /e!ps you dea! (it/ c/an&es and c/a!!en&es in your
dai!y !ife.
Gour p/ysica! reaction to stress is t/e same for positive and ne&ative stress; t/e
difference is t/at (it/ ne&ative stress your 1ody never returns to t/e Fpre-stressF re!axed
state. Gou remain tense or anxious2 (/ic/ drains you of emotiona! and p/ysica! ener&y.
3/e common expression for stress is RtensionE @ne is said to 1e tense2 (/en t/ere is some
anxiety2 some fear of (/et/er t/e desira1!e t/in&s may /appen2 (/et/er somet/in& may
&o (ron&2 etc. It is a state of discomfort fe!t in t/e mind and experienced 1y t/e 1ody.
I/en t/ere is tension2 t/e 1ody may 1ecome (ea).
In mana&ement !iterature2 RStressE is defined as a response of t/e /uman 1ody to a
fe!t need. I/en one is /un&ry and t/ere is an ur&e to eat food2 t/e 1ody is in a state of
stress2 (/ic/ disappears (/en t/e need is fu!fi!!ed. 3/is definition su&&ests t/at stress is a
desira1!e condition2 ma)in& one move to(ards fu!fi!!ment of needs. 3/is is part!y true.
Stress occurs a!so (/en t/e need arises out of fear and t/e ur&e is to run and escape. 3/is
may sometimes2 1e not possi1!e. In t/at case2 t/ere is no movement2 t/e need remains
unfu!fi!!ed and t/e stress condition does not disappear.
Stress is identified as of t(o )inds. @ne is ca!!ed EuStress2 (/ic/ is t/e condition
in (/ic/ t/ere is drive and effort to fu!fi!! t/e needs. #otivation is /i&/. -c/ievement is
seen as possi1!e. 3/e situation is c/a!!en&in&. Stress disappears (/en t/e need is fu!fi!!ed
3/ere is success. 3/e ot/er is 9iStress2 (/ic/ is t/e condition (/en t/ere is a sense of
/e!p!essness in 1ein& a1!e to ac/ieve. 3/e fee!in& is of frustration. 3/ere is no success.
#ay 1e2 t/ere is no attempt even2 1ecause success is seen as impossi1!e. 3/e stress
condition remains.
If one (ere to c/art t/e !eve! of stress and t/e !eve! of effort put in to (or)2 it
(ou!d 1e an inverted para1o!a. Eustress (ou!d 1e in t/e ascendin& !eft side of t/e
para1o!a. 3/e c/a!!en&e (ou!d 1e maximum at t/e /ump. 3/e !atter /a!f on t/e ri&/t side
represents 9istress. 3/e pro1!ems of stress are caused 1y 9istress2 not 1y Eustress.
Eustress is necessary for t/e person to 1e fu!!y a!ert2 for a!! /is facu!ties to come
into p!ay to face t/e situation. +or examp!e2 a &oa!)eeper in foot1a!! or /oc)ey2 (i!! 1e
tota!!y re!axed (/en t/e 1a!! is at t/e ot/er end of t/e &round2 1ut 1ecomes extreme!y
a!ert as t/e 1a!! moved to(ards /im. ?is 1ody stiffens2 t/e eyes 1e&in to 1u!&e2 focussin&
on t/e 1a!! and t/e movement of t/e p!ayers2 pic)in& up t/e s!i&/test of movements and
every nerve and musc!e ready to respond to t/ose movements. 3/at is Eustress2 (it/out
(/ic/ t/e &oa!)eeper cannot 1e at /is 1est. So a!so2 Eustress is experienced 1y t/e
1atsman in cric)et (/en t/e 1o(!er is on t/e run2 and 1y t/e tennis p!ayer (/en t/e 1a!!
is a1out to 1e served at t/e ot/er end.
Stress is a part of !ivin&. 3oo !itt!e stress and (e 1ecome apat/etic and ineffective.
3oo muc/ stress and (e !ive (it/ anxiety2 fati&ue2 and over time2 increase our ris) for
accidenta! in=ury and serious i!!ness. #aintainin& an optima! !eve! of stress is an on&oin&
c/a!!en&e of everyday !ife.
3/e stress response of t/e 1ody is meant to protect and support us. 3o maintain
sta1i!ity or /omeostasis2 t/e 1ody is constant!y ad=ustin& to its surroundin&s. I/en a
p/ysica! or menta! event t/reatens t/is e6ui!i1rium2 (e react to it. 3/is process is often
referred to as t/e Ffi&/t or f!i&/t response.F Ie prepare for p/ysica! action in order to
confront or f!ee a t/reat. @ur ancestors responded to stressfu! ordea!s in t/is fas/ion.
#i!!ions of years !ater2 (/en you face a situation t/at you perceive as c/a!!en&in&2 your
1ody automatica!!y &oes into overdrive2 en&a&in& t/e stress response. Immediate!y2 you
re!ease t/e same /ormones t/at ena1!ed cave peop!e to move and t/in) faster2 /it /arder2
see 1etter2 /ear more acute!y2 and =ump /i&/er t/an t/ey cou!d on!y seconds ear!ier. .i)e
t/eirs2 your /eart1eat speeds up; your 1!ood pressure increases; your 1reat/in& 6uic)ens.
#ost modern stresses2 /o(ever2 do not ca!! for eit/er fi&/t or f!i&/t. @ur experience of
stress is &enera!!y re!ated to /o( (e respond to an event2 not to t/e event itse!f.
Stress /as existed t/rou&/out t/e evo!ution. -1out 4 1i!!ion years a&o2 vio!ent
co!!ision of roc) and ice a!on& (it/ dust and &as2 !ed to t/e formation of a ne( p!anet.
3/e p!anet survive more t/an 100 mi!!ion years of me!tdo(n to &ive 1irt/ to microscopic
!ife . 3/ese first or&anisms endured t/e /ars/est of conditionsS!ac) of oxy&en2 exposure
to sun<s 8" rays and ot/er in/ospita1!e e!ements2 to /an& on to t/eir dear !ife. 7ou&/!y
3002000 years a&o2 t/e Neandert/a!s !earnt to use fire in a contro!!ed (ay2 to survive t/e
4!acia! -&e. -nd around 302000 years2 ?omo sapiens (it/ t/eir dominant &ene
constitutions and 1etter copin& s)i!!s2 (on t/e &ame of surviva!. Eac/ step of evo!ution a
test of surviva!2 and surviva!2 a matter of copin& (it/ t/e stress of c/an&in& conditions.
#i!!ions of tria!s and errors in t/e !ife process /ave 1rou&/t men to t/is sta&e.
Copin& (it/ events to survive /as !ed men to invent extraordinary tec/no!o&ies2
1e&innin& (it/ a piece of s/arpened stone.
+rom t/e vie(point of microevo!ution2 stress induction of transpositions is a
po(erfu! factor2 &eneratin& ne( &enetic variations in popu!ations under stressfu!
environmenta! conditions. assin& t/rou&/ a <1ott!enec)<2 a popu!ation can rapid!y and
si&nificant!y a!ters its popu!ation norm and 1ecome t/e founder of ne(2 evo!ved forms.
4ene transposition t/rou&/ 3ransposa1!e E!ements B3ECS<=umpin& &enes<2 is a
ma=or source of &enetic c/an&e2 inc!udin& t/e creation of nove! &enes2 t/e a!teration of
&ene expression in deve!opment2 and t/e &enesis of ma=or &enomic rearran&ements. In a
researc/ on <t/e si&nificance of responses of t/e &enome to c/a!!en&es2< t/e No1e! ri5e
(innin& scientist 0ar1ara #cC!intoc)2 c/aracteri5ed t/ese &enetic p/enomena as
<&enomic s/oc)E. 3/is occurs due to recom1ination events 1et(een 3E insertions B/i&/
and !o( insertion po!ymorp/ismC and /ost &enome. 0ut2 as a ru!e 3Es remain
immo1i!i5ed unti! some stress factor Btemperature2 irradiation2 9N- dama&e2 t/e
introduction of forei&n c/romatin2 viruses2 etc.C activates t/eir e!ements.
3/e mora! remains t/at (e can (or) a stress condition to our advanta&e or protect
ourse!ves from its unto(ard fo!!o(-t/rou&/s su1=ect to /o( (e /and!e a stress situation.
3/e c/oice is 1et(een 1ecomin& a s!ave to t/e stressfu! situations of !ife or usin& t/em to
our advanta&e
FNot/in& &ives one person so muc/ advanta&e over anot/er as to remain a!(ays
coo! and unruff!ed under a!! circumstancesT
In a c/a!!en&in& situation t/e 1rain prepares t/e 1ody for defensive actionSt/e fi&/t or
f!i&/t response 1y re!easin& stress /ormones2 name!y2 cortisone and adrena!ine. 3/ese /ormones
raise t/e 1!ood pressure and t/e 1ody prepares to react to t/e situation. Iit/ a concrete defensive
action Bfi&/t responseC t/e stress /ormones in t/e 1!ood &et used up2 entai!in& reduced stress
effects and symptoms of anxiety.
I/en (e fai! to counter a stress situation Bf!i&/t responseC t/e /ormones and
c/emica!s remain unre!eased in t/e 1!ood stream for a !on& period of time. It resu!ts in
stress re!ated p/ysica! symptoms suc/ as tense musc!es2 unfocused anxiety2 di55iness and
rapid /eart1eats. Ie a!! encounter various stressors Bcauses of stressC in everyday !ife2 (/ic/
can accumu!ate2 if not re!eased. Su1se6uent!y2 it compe!s t/e mind and 1ody to 1e in an a!most
constant a!arm-state in preparation to fi&/t or f!ee. 3/is state of accumu!ated stress can increase
t/e ris) of 1ot/ acute and c/ronic psyc/osomatic i!!nesses and (ea)en t/e immune system of t/e
/uman 1ody.
Stress can cause /eadac/es2 irrita1!e 1o(e! syndrome2 eatin& disorder2 a!!er&ies2
insomnia2 1ac)ac/es2 fre6uent co!d and fati&ue to diseases suc/ as /ypertension2 ast/ma2
dia1etes2 /eart ai!ments and even cancer. In fact2 San=ay C/u&/2 a !eadin& Indian
psyc/o!o&ist2 says t/at %0 per cent to *0 per cent of adu!ts visit primary care p/ysicians
for stress-re!ated pro1!ems. Scary enou&/.
Just a1out every1odySmen2 (omen2 c/i!dren and even fetusesSsuffer from stress.
7e!ations/ip demands2 c/ronic /ea!t/ pro1!ems2 pressure at (or)p!aces2 traffic snar!s2 meetin&
dead!ines2 &ro(in&-up tensions or a sudden 1earis/ trend in t/e 1ourse can tri&&er stress
conditions. eop!e react to it in t/eir o(n (ays. In some peop!e2 stress-induced adverse fee!in&s
and anxieties tend to persist and intensify. .earnin& to understand and mana&e stress can prevent
t/e counter effects of stress.
#et/ods of copin& (it/ stress are ap!enty. 3/e most si&nificant or sensi1!e (ay
out is a c/an&e in !ifesty!e. 7e!axation tec/ni6ues suc/ as meditation2 p/ysica! exercises2
!istenin& to soot/in& music2 deep 1reat/in&2 various natura! and a!ternative met/ods2
persona! &ro(t/ tec/ni6ues2 visua!i5ation and massa&e are some of t/e most effective of
t/e )no(n non-invasive stress 1usters
3/e (ords <positive< and <stress< may not often &o to&et/er. 0ut2 t/ere are
innumera1!e instances of at/!etes risin& to t/e c/a!!en&e of stress and ac/ievin& t/e
unac/ieva1!e2 scientists stressin& t/emse!ves out over a point to 1rin& into !i&/t t/e most
unt/in)a1!e secrets of t/e p/enomena! (or!d2 and !i)e(ise a painter2 a composer or a
(riter producin& t/e 1est paintin&s2 t/e most !i!tin& of tunes or t/e most appea!in& piece
of (ritin& 1y pus/in& t/emse!ves to t/e !imit. syc/o!o&ists second t/e opinion t/at some
<stress< situations can actua!!y 1oost our inner potentia! and can 1e creative!y /e!pfu!.
Sud/a C/andran2 an Indian danseus2 !ost 1ot/ of /er !e&s in an accident. 0ut2 t/e p/ysica!
and socia! inade6uacies &ave /er more impetus to carry on (it/ /er dance performances
(it/ t/e /e!p of prost/etic !e&s rat/er t/an deter /er spirits.
Experts te!! us t/at stress2 in moderate doses2 are necessary in our !ife. Stress
responses are one of our 1ody<s 1est defense systems a&ainst outer and inner dan&ers. In a
ris)y situation Bin case of accidents or a sudden attac) on !ife et a!C2 1ody re!eases stress
/ormones t/at instant!y ma)e us more a!ert and our senses 1ecome more focused. 3/e
1ody is a!so prepared to act (it/ increased stren&t/ and speed in a pressure situation. It is
supposed to )eep us s/arp and ready for action.
7esearc/ su&&ests t/at stress can actua!!y increase our performance. Instead of
(i!tin& under stress2 one can use it as an impetus to ac/ieve success. Stress can stimu!ate
one<s facu!ties to de!ve deep into and discover one<s true potentia!. 8nder stress t/e 1rain
is emotiona!!y and 1ioc/emica!!y stimu!ated to s/arpen its performance
Stress is2 per/aps2 necessary to occasiona!!y c!ear co1(e1s from our t/in)in&. If
approac/ed positive!y2 stress can /e!p us evo!ve as a person 1y !ettin& &o of un(anted
t/ou&/ts and princip!e in our !ife. "ery often2 at various crossroads of !ife2 stress may
remind you of t/e transitory nature of your experiences2 and may prod you to !oo) for t/e
true /appiness of !ife.
@r&ani5ationa! and individua! pro&rams to /e!p mana&ers and emp!oyees cope up
(it/ stress /ave 1ecome increasin&!y popu!ar2 as t/e to!! ta)en 1y stress /as 1ecome more
(ide!y )no(n. #et/ods are avai!a1!e to individua!s and or&ani5ations for mana&in&
stress and reducin& its /armfu! effects. Stress mana&ement refers to any pro&ram t/at
reduces stress 1e /e!pin& peop!e understand t/e stress response2 reco&ni5e stressors2 and
use copin& tec/ni6ues to minimi5e t/e ne&ative impact of stress.
INDIVIDUAL METHODS
Stress mana&ement 1y individua!s inc!udes activities and 1e/aviors desi&ned to
e!iminate or contro! t/e sources of stress and ma)e t/e individua! more resistant to or
1etter a1!e to cope (it/ stress. 3/e first step in individua! stress mana&ement invo!ves
reco&ni5in& t/e stressors t/at are affectin& t/e personEs !ife. Next2 t/e individua! needs to
decide (/at to do a1out t/em.
ractica! su&&estions for individua! stress mana&ement inc!ude t/e fo!!o(in&
• !an a/ead and practice &ood time mana&ement
• 4et p!enty of exercise
• 9eve!op a sound p/i!osop/y of !ife and maintain a positive attitude
• Concentrate on 1a!ancin& your (or) and persona! !ife.
• .earn a re!axation tec/ni6ue.
ORGANIJATIONAL METHODS
Stress mana&ement 1y or&ani5ations is desi&ned to reduce t/e /armfu! effects of
stress in t/ree (ays
• Identify and t/en modify or e!iminate (or) stressors
• ?e!p emp!oyees modify t/eir perception and understandin& of (or) stress
• ?e!p emp!oyees cope more effective!y (it/ t/e conse6uences of stress.
APPROACHES TO STRESS MANAGEMENT
0ot/ or&ani5ation and individua!s are /i&/!y concerned a1out stress and its
effects. In attemptin& to mana&e stress2 t/ey /ave t/ree 1road options
• revent or contro! it2
• Escape from it2
• .earn to adapt it.
@r&ani5ations can see) to improve mana&eria! communication s)i!!s2 empo(er
emp!oyees t/rou&/ participation2 redesi&n =o1s to 1e more fu!fi!!in&2 or imp!ement
or&ani5ation deve!opment pro&rams. 3/ese steps are aimed at reducin& or e!iminatin&
stressors for emp!oyees. Some emp!oyees can escape stress 1y re6uestin& =o1 transfers2
findin& a!ternative emp!oyment2 ta)in& ear!y retirement or ac6uirin& assertiveness s)i!!s
a!!o( t/em to confront t/e stressor.
Some peop!e experience stress 1ecause t/ey are detac/ed from t/e (or!d around
t/em2 t/ey !ac) (arm interpersona! re!ations/ips. Individua!s (it/ a drivin& am1ition and
a stron& need for independence may fai! to deve!op c!ose attac/ments to friends and
co!!ea&ues. 3o ac/ieve t/eir success2 t/ey often sacrifice fu!fi!!ment to t/eir socia! needs.
3/eir !ac) of socia! attac/ments may resu!t in an&er2 anxiety2 and !one!iness- a!!
producin& stress in t/eir !ives.
STRESS AND >OB PERFORMANCE
Stress can 1e eit/er /e!pfu! or /armfu! to =o1 performance2 dependin& on its !eve!.
I/en t/ere is no stress2 =o1 c/a!!en&es are a1sent and performance tends to 1e !o(. -s
stress increases2 performance tends to increase2 1ecause stress /e!ps a person ca!! up resources to meet
=o1 re6uirements. Constructive stress is a /ea!t/y stimu!us t/at encoura&es emp!oyees to respond to
c/a!!en&es. Eventua!!y2 stress reac/es a p!ateau t/at corresponds approximate!y (it/ a personEs top day to
day performance capa1i!ity. -t t/is point additiona! stress tends to produce no more improvement.
+ina!!y2 if stress 1ecomes too &reat2 it turns into a destructive force. erformance
1e&ins to dec!ine at some point 1ecause excess stress interferes (it/ performance. -n
emp!oyee !oses t/e a1i!ity to cope> s/e or /e 1ecomes una1!e to ma)e decisions and
ex/i1its erratic 1e/avior. If stress increases to a 1rea)in& point2 performance 1ecomes
5ero> t/e emp!oyee /as a 1rea)do(n2 1ecomes too i!! to (or)2 is fired2 6uits2 or refuses to
come to (or) to face t/e stress.
STRESS MANAGEMENT
Is t/e need of t/e /our. ?o(ever /ard (e try to &o 1eyond a stress situation2 !ife
seems to find ne( (ays of stressin& us out and p!a&uin& us (it/ anxiety attac)s.
#oreover2 1e it our anxiety2 mind-1ody ex/austion or our errin& attitudes2 (e tend to
over!oo) causes of stress and t/e conditions tri&&ered 1y t/ose. In suc/ unsett!in&
moments (e often for&et t/at stressors2 if not escapa1!e2 are fair!y mana&ea1!e and
treata1!e.
Stress2 eit/er 6uic) or constant2 can induce ris)y 1ody-mind disorders. Immediate
disorders suc/ as di55y spe!!s2 anxiety attac)s2 tension2 s!eep!essness2 nervousness and
musc!e cramps can a!! resu!t in c/ronic /ea!t/ pro1!ems. 3/ey may a!so affect our
immune2 cardiovascu!ar and nervous systems and !ead individua!s to /a1itua! addictions2
(/ic/ are inter-!in)ed (it/ stress.
.i)e Fstress reactionsF2 Fre!axation responsesF and stress mana&ement tec/ni6ues
are some of t/e 1ody<s important 1ui!t-in response systems. -s a re!axation response t/e
1ody tries to &et 1ac) 1a!ance in its /omeostasis. Some /ormones re!eased durin& t/e
<fi&/t or f!i&/t< situation prompt t/e 1ody to rep!ace t/e !ost car1o/ydrates and fats2 and
restore t/e ener&y !eve!. 3/e )notted nerves2 ti&/tened musc!es and an ex/austed mind
crave for !ooseners. 8nfortunate!y2 today2 (e don<t &et re!axin& and soot/in& situations
(it/out as)in&. 3o 1e re!axed (e /ave to strive to create suc/ situations
S#$'44 +4 *D04+&/.
I/en t/e &oa!)eeper or t/e 1atsman or t/e tennis p!ayer experiences Eustress2
t/ere are c/an&es in t/e p/ysica! system. 3/e musc!es 1ecome tense. 3/e eyes 1ecome
s/arper. I/en one is under severe distress2 as in t/e case of -r=una in Auru)s/etra2 t/e
person s(eats2 t/e 1ody 1ecomes (ea) and !oses stren&t/.
Study of stress s/o(s t/at t/e response is t/e same (/et/er it is Eustress or
9istress2 except t/at t/e de&ree varies. 3/e response is ca!!ed t/e +i&/t or +!i&/t response.
I/en one senses dan&er2 one is tempted to eit/er stand and fi&/t to (ard off t/e dan&er
or run a(ay U +!i&/t. 3/e 1ody conditions itse!f for eit/er event2 automatica!!y2 causin&
c/an&es in t/e norma! secretions of /ormones and ot/er c/emica!s2 (it/dra(in& from
activities t/at are !ess important and divertin& to activities t/at s/ou!d /ave /i&/er
priority in t/at situation.. +ood is !ess important. 3/e musc!es need more ener&y and
t/erefore t/e 1!ood carries su1stances to t/e musc!es2 divertin& t/em from t/e stomac/.
#ore oxy&en t/an norma! is re6uired. 3/erefore2 t/e 1reat/in& 1ecomes faster2 t/e /eart-
1eat rate increases2 t/e 1!ood vesse!s di!ate to carry more oxy&en. 3/e !iver re!eases more
stored ener&y. 3/e eyes and ears 1ecome more acute!y sensitive to t/e sensations from
outside.
3/e 1ody is pro&rammed to reverse t/ese c/an&es2 and revert to norma!2 (/en t/e
t/reat disappears. If /o(ever2 one remains in a continuous state of stress2 (it/out
1ecomin& norma!2 t/e c/an&ed conditions tend to remain permanent2 !i)e a ru11er 1and
!oses its e!asticity (/en /e!d extended for a !on& time. 3/ese a1norma! conditions
manifest as diseases and one suffers from /i&/ 1!ood pressure2 cardiac disorders2 peptic
u!cers2 insomnia2 constipation2 fati&ue2 co!itis2 )idney pro1!ems2 etc. 0e/avioura!!y2 t/ey
!ead to a1senteeism2 a!co/o!ism2 use of dru&s2 marita! dis/armony and so on2 (/ic/ are
1ot/ or&anisationa!!y and socia!!y2 undesira1!e
Stress is psyc/o!o&ica!
Stress is experienced (/en one perceives a t/reat and t/e fi&/t or f!i&/t response
is ca!!ed for. 3/is perception is an interpretation t/at one ma)es (it/in onese!f2 of t/e
externa! factors. I/en one sees a do& on t/e street 1arin& its teet/2 one may eit/er &et
fri&/tened or remain ca!m. 0ot/ fri&/t and ca!mness are psyc/o!o&ica! reactions. 3/e
c/oice is oneEs o(n and is not dictated 1y t/e do&. 3/is c/oice is made2 !ar&e!y
unconscious!y2 on t/e 1asis of oneEs 1e!iefs a1out do&s in &enera!2 (/at one /as /eard
a1out ra1ies 1ein& caused 1y do& 1ites2 (/at one sees a1out t/e c/aracteristics of t/e do&
in 6uestion at t/at time2 oneEs predi!ections to(ards anima!s2 and so on.
I/en one 1ecomes anxious in a situation2 t/e situation does not create any
anxiety. I/at one t/in)s a1out t/e situation creates t/e anxiety. If one is confident of
tac)!in& t/e situation2 t/ere is no anxiety. 3/erefore2 t/e !eve! of stress is caused 1y oneEs
o(n perception of oneEs capa1i!ity to cope (it/ t/e situation. 3/us2 stress is a
psyc/o!o&ica! response2 dependin& upon oneEs !eve! of fear2 confidence2 anxiety2 an&er2
/urt2 etc. 3/e p/ysica! response is an automatic se6ue! to oneEs psyc/o!o&ica! condition.
3/e p/ysica! c/an&es depend on t/e extent of fear or confidence etc. 3/erefore2 t/e
mana&ement of stress essentia!!y is in t/e contro! one /as on oneEs emotions.
S#$'44($4
Stress is not caused 1y any externa! factor. It is created 1y onese!f2 1y t/e (ay one
t/in)s a1out t/e externa! factors. Get t/ere are situations2 in (/ic/ most peop!e tend to &et
stressed. 3/ese are ca!!ed stressors. In persona! !ife2 deat/ of a c!ose re!ative is a stressor.
-n important test in !ife2 !i)e a fina! examination; a transfer of residence; separation due
to marria&e2 divorce or c/an&e of =o1; difficu!t financia! demands; serious i!!ness;
!i)e!i/ood of unp!easant secrets 1ecomin& revea!ed; are common stressors. ?avin& to
(e!come and entertain important visitors or /avin& to de!iver a speec/ for t/e first time2
a!so cause considera1!e stress. -t (or)2 t/e fo!!o(in& may 1e stressors.2
• Needs not met. 3/ese cou!d 1e needs for po(er2 for fu!fi!!ment2 for use of
)no(!ed&e
• Not 1ein& inc!uded 1y ot/ers as part of a &roup you (ant to 1e!on& to
• Not 1ein& reco&ni5ed or va!ued for oneEs competence
• +ee!in& t/at one is not ade6uate for t/e tas)2 particu!ar!y (/en compared to some
one e!se
• 0ein& denied (/at is due Bre(ards2 (or)C
• #onotony or 1oredom
• Not /avin& enou&/ freedom at (or)2 1ein& c!ose!y supervised
• Ine6uity in re(ards2 assi&nments
• "ery !itt!e opportunity for &ro(t/
• 3oo muc/ of (or)2 over!oad
• 3oo !itt!e (or)2 1oredom
• Inade6uate resources to do t/e assi&ned (or)2 creatin& possi1i!ities of fai!ures
• Conf!ict in va!ues at (or)2 1ein& re6uired to do (/at one does not !i)e to do
• 3oo many and conf!ictin& demands at (or) from t/e ro!e set
• 7esponsi1i!ities not c!ear2 am1i&uity on (/at is expected
• 8n understandin&2 unpredicta1!e2 temperamenta! 1oss
• Ne( unfami!iar (or)
• 0ein& 1!amed
• @n c!ose ana!ysis2 it (i!! 1e found t/at a!! of t/e a1ove situations are2 in some (ay
or ot/er2 causin& perceptions of possi1!e fai!ure at (or) or non-reco&nition and
conse6uent !oss of se!f-esteem.
It is important to reco&ni5e (/et/er you are under stress or out of it. #any times2
even if (e are under t/e inf!uence of a stressfu! condition and our 1ody reacts to it
interna!!y as (e!! as externa!!y2 (e fai! to rea!i5e t/at (e are reactin& under stress. 3/is
a!so /appens (/en t/e causes of stress are t/ere !on& enou&/ for us to &et /a1ituated to
t/em. 3/e 1ody constant!y tries to te!! us t/rou&/ symptoms suc/ as rapid pa!pitation2
di55y spe!!s2 ti&/t musc!es or various 1ody ac/es t/at somet/in& is (ron&. It is important
to remain attentive to suc/ symptoms and to !earn to cope (it/ t/e situations.
Ie cope 1etter (it/ stressfu! situation2 (/en (e encounter t/em vo!untari!y. In
cases of a re!ocation2 promotion or !ayoff2 adventurous sports or /avin& a 1a1y2 (e tend
to respond positive!y under stress. 0ut2 (/en (e are compe!!ed into suc/ situations
a&ainst our (i!! or )no(!ed&e2 more often t/an not2 (e (i!t at t/e face of un)no(n and
ima&ined t/reats. +or instance2 stress may mount (/en one is coerced into underta)in&
some (or) a&ainst one<s (i!!.
L'8'.4 (3 S#$'44: TD'$' /$' 3(%$ 1/4+& .'8'.4 (3 4#$'44 40)*#()4.
1. 3/e first is t/e norma! initia! response and is c/aracteri5ed 1y increased /eart 1eat
rates2 increased 1!ood pressure2 di!ation of pupi!s2 s(eat in pa!ms and reduced
activity in t/e stomac/.
2. -t t/e second !eve!2 t/ere is more irrita1i!ity2 stutterin& and stammerin&2 difficu!ty
in concentratin&2 rest!essness2 !ac) of appetite and tendency to increased smo)in&
or drin)in& for t/ose so /a1ituated.
3. -t t/e t/ird !eve!2 t/ere (ou!d 1e more /eadac/es2 stomac/ac/es2 diarr/ea2
s(eatin&2 insomnia2 depression etc.
4. 3/e fourt/ !eve! (ou!d 1e c/aracteri5ed 1y u!cers2 stro)e2 a!co/o!ism2 dru&
addiction2 psyc/osis etc.
CAUSES OF STRESS
-n important first step in prevention is to examine t/e causes of stress. Conditions
t/at tend to cause stress are ca!!ed stressors. -!t/ou&/ even a sin&!e stress may cause
ma=or stress2 usua!!y stressors com1ine to pressure an emp!oyee in a variety of (ays unti!
stress deve!ops. -!most any =o1 condition can cause stress2 dependin& on an emp!oyeeEs
reaction to it. +or examp!e2 one emp!oyee (i!! accept a ne( (or) procedure and fee! !itt!e
or no stress2 (/i!e anot/er experiences over(/e!min& pressure from t/e same tas).
art of t/e difference !ies in eac/ emp!oyeeEs experiences2 &enera! out!oo)s2 and
expectations2 fre6uent!y cause stress for emp!oyees.
Ior) over!oad and time dead!ines put emp!oyees under pressure can !ead to
stress. @ften t/ese pressures arise from mana&ement2 and a poor 6ua!ity of mana&ement
can cause stress. Examp!es of stress producin& factors re!ated to mana&ement are an
autocratic supervisor2 an insecure =o1 c!imate2 !ac) of contro! over oneEs o(n =o12 and
inade6uate aut/ority to matc/ oneEs responsi1i!ities. #any t/in&s can tri&&er t/e stress
reaction2 inc!udin& dan&er2 t/reat2 ne(s2 i!!ness2 as (e!! as si&nificant c/an&es in one<s
se!f-identification as a 3ype - or as a 3ype 0 persona!ity
TYPICAL CAUSES OF STRESS ON THE >OB
• Ior) @ver!oad
• 3ime pressures
• oor 6ua!ity of supervision
• Insecure =o1 c!imate
• .ac) of persona! contro!
• Inade6uate aut/ority to matc/ responsi1i!ities
• 7o!e conf!ict and am1i&uity
• 9ifferences 1et(een company and emp!oyee va!ues
• C/an&e of any type2 especia!!y (/en it is ma=or or unusua!
• +rustration
• 3ec/no!o&y (it/ trainin& or support
S+-,4 (3 S#$'44
-!t/ou&/ perception is a part of stress2 stress is rea!. 3/ere are more t/an a fe(
(ays a person can react to stress. 3/e reactions fa!! into t/ree cate&ories> t/ou&/ts2
fee!in&s and 1e/aviors. Stressfu! t/ou&/ts invo!ve (/atEs &oin& on in your /ead (/en
you are stressed out. Some of t/e t/ou&/ts a person mi&/t /ave inc!ude t/e fo!!o(in&>
• .o( se!f-esteem
• +ear of fai!ure
• Ina1i!ity to concentrate
• Em1arrassin& easi!y
• Iorryin& a1out t/e future
• reoccupation (it/ t/ou&/tsDtas)s
• +or&etfu!ness
Emotiona! stress can cause a person to /ave fee!in&s of anxiousness2 fear2 an&er or even
t/e V1!ues.T
Stress sometimes 1rin&s out un(anted 1e/aviors too. 3/e fo!!o(in& is a !ist of
stressfu! 1e/aviors>
• -ctin& on a (/im
• 0ein& accident prone
• Cryin& for no apparent reason
• 4rindin& your teet/
• .au&/in& in a /i&/ pitc/ and nervous tone of voice
• Increasin& smo)in&
• Increasin& use of dru&s and a!co/o!
• Stutterin& and ot/er speec/ difficu!ties
In addition to stressfu! fee!in&s2 1e/aviors and t/ou&/ts2 p/ysio!o&y2 (/ic/ refers
to t/e (ay t/at t/e /uman 1ody reacts c/emica!!y and p/ysica!!y to stress2 can a!so cause
pro1!ems. Stress can manifest itse!f menta!!y and p/ysica!!y. +o!!o(in& are some of t/e
indicators of a stressed-out person>
• erspiration Ds(eaty /and.
• Increased /eart 1eat
• 3rem1!in&
• 9ryness of t/roat and mout/
• 3irin& easi!y
• 8rinatin& fre6uent!y
• S!eepin& pro1!ems
• 9iarr/ea D indi&estion D vomitin&
• 0utterf!ies in stomac/
• ?eadac/es
• remenstrua! tension
• ain in t/e nec) and or !o(er 1ac).
• .oss of appetite or overeatin&
• Suscepti1i!ity to i!!ness
WHAT ARE THE SYMPTOMS OF STRESSB
PD04+&/. 40)*#()4
/ysica! symptoms can 1e caused 1y ot/er i!!nesses2 so it is important to /ave a
medica! doctor treat conditions suc/ as u!cers2 compressed dis)s2 or ot/er p/ysica!
disorders. 7emem1er2 /o(ever2 t/at t/e 1ody and mind are not separate entities. 3/e
p/ysica! pro1!ems out!ined 1e!o( may resu!t from or 1e exacer1ated 1y stress>
• s!eep distur1ances
• 1ac)2 s/ou!der or nec) pain
• tension or mi&raine /eadac/es
• irre&u!ar /eart1eat2 pa!pitations
• ast/ma or s/ortness of 1reat/
• c/est pain
E)(#+(,/. 40)*#()4
.i)e p/ysica! si&ns2 emotiona! symptoms suc/ as anxiety or depression can mas)
conditions ot/er t/an stress. It is important to find out (/et/er t/ey are stress-re!ated or
not. In eit/er case2 t/e fo!!o(in& emotiona! symptoms are uncomforta1!e and can affect
your performance at (or) or p!ay2 your p/ysica! /ea!t/2 or your re!ations/ips (it/ ot/ers>
• nervousness2 anxiety
• depression2 moodiness
• V1utterf!iesT
• irrita1i!ity2 frustration
• memory pro1!ems
• !ac) of concentration
R'./#+(,/. 40)*#()4
3/e antisocia! 1e/avior disp!ayed in stressfu! situations can cause t/e rapid
deterioration of re!ations/ips (it/ fami!y2 friends2 co-(or)ers2 or even stran&ers. -
person under stress may manifest si&ns suc/ as>
• increased ar&uments
• iso!ation from socia! activities
• conf!ict (it/ co-(or)ers or emp!oyers
• fre6uent =o1 c/an&es
• road ra&e
• domestic or (or)p!ace vio!ence
• overreactions
STRESS AT WOR"PLACE
It is not possi1!e to remove t/e pressures at (or) 1ut one can definite!y reduce
pressure2 (/ic/ in turn ta)es form of stress and furt/er s/apes itse!f as ai!ments 1y
ena1!in& peop!e
Stress in t/e (or)p!ace is 1ecomin& a ma=or concern for emp!oyers2 mana&ers and
&overnment a&encies2 o(in& to t/e @ccupationa! ?ea!t/ and Safety !e&is!ations re6uirin&
emp!oyers to practice Rduty of careE 1y providin& emp!oyees (it/ safe (or)in&
environments (/ic/ a!so cover t/e psyc/o!o&ica! (e!!1ein& of t/eir staff.
@ne of t/e costs2 for emp!oyers2 of (or) p!ace stress is a1senteeism2 (it/ t/e
-.C.3.8. reportin& t/at o(in& to stress2 near!y fifty per cent of emp!oyees surveyed /ad
ta)en time off (or). @t/er ne&ative effects (ere reductions in productivity2 reduced
profits2 accidents2 /i&/ rates of sic)ness2 increased (or)ersE compensation c!aims and
/i&/ staff turnover2 re6uirin& recruitin& and trainin& of rep!acement staff.
I/i!e a certain amount of stress is needed to motivate individua!s into action2
pro!on&ed stress can /ave a /u&e impact on overa!! /ea!t/. #ore t/an t(o-t/irds of visits
to doctorsE sur&eries are for stress-re!ated i!!nesses. Stress /as 1een !in)ed to /eadac/es2
1ac)ac/es2 insomnia2 an&er2 cramps2 e!evated 1!ood pressure2 c/ronic fati&ue syndrome2
fi1romya!&ia and !o(ered resistance to infection. +or (omen2 stress is a )ey factor in
/ormona! im1a!ances resu!tin& in menstrua! irre&u!arities2 #S2 fi1roids2 endometriosis
and ferti!ity pro1!ems. Stress can a!so 1e a factor in t/e deve!opment of a!most a!! disease
states inc!udin& cancer and /eart disease.
Eac/ profession /as its o(n uni6ue factors t/at may cause stress; 1e!o( are some
causes of stress t/at cross many professions>
W Increased (or)!oad
W @r&ani5ationa! c/an&es
W .ac) of reco&nition
W ?i&/ demands
W .ac) of support
W ersona! and fami!y issues.
W oor (or) or&ani5ation
W .ac) of trainin&
W .on& or difficu!t /ours
W inade6uate staff num1ers and resources
W oor mana&ement communication
W .ac) of contro! or input
Ior)p!ace stress is on t/e rise and its costin& corporate -merica a fortune. Some
estimate t/at '0: of /ea!t/ care costs are stress re!ated2 and t/ese expenses &o ri&/t to
t/e 1ottom !ine.
-ccordin& to CNN-#oney.com2 -mericans spent more t/an H1% 1i!!ion for anti-
depressants and anti- anxiety dru&s in 20022 up 10: from t/e year 1efore and near!y 30:
over a t(o-year period.
3/e Institute for #ana&ement Exce!!ence reports t/at -merican industry spends
more t/an H2$ 1i!!ion eac/ year for medica! 1i!!s and disa1i!ity payments (it/ anot/er
H10 1i!!ion for executive<s !ost (or)days2 /ospita!i5ation2 and ear!y deat/.
In addition to t/ese sta&&erin& fi&ures2 stress ta)es its to!! t/rou&/ t/e added costs of
6ua!ity contro!2 !e&a! c/a!!en&es2 !ost opportunities2 poor performance2 1ad attitudes2 and
trainin&.
Ie cannot do muc/ a1out t/e s)yroc)etin& costs of medica! care and prescription
dru&s2 1ut (e can ta)e immediate action to contro! t/e top ten causes of stress as
identified 1y 3/e 4!o1a! 0usiness and Economic 7oundta1!e on -ddiction and #enta!
?ea!t/.
TD' C(%,#2(C, +4:
10. FIor)!oadF U Emp!oyees report t/at t/ey are often stressed (/en t/ey /ave too !itt!e
or too muc/ to do. #ana&ers need to divide responsi1i!ities and /e!p emp!oyees prioriti5e
(or) t/at must 1e done. #a)e sure you understand t/e impact 1efore s/iftin&
responsi1i!ities. 3a)e into account t/e cost of stress 1efore you increase anyoneEs
(or)!oad or /ire more peop!e.
*. F7andom interruptionsF - 3e!ep/ones2 pa&ers2 (a!)-in visits2 and spontaneous demands
from supervisors a!! contri1ute to increased stress. 3ime mana&ement2 de!e&ation of
responsi1i!ities2 and c!arification of expectations can reduce t/ese stressors.
'. Fervasive uncertaintyF U Stress !eve!s increase rapid!y (/en peop!e are confronted 1y
ne( re6uirements and procedures. Aeepin& peop!e informed contro!s stress and increases
productivity. ut detai!s in a memo so t/ey can revie( t/e facts fo!!o(in& your
exp!anations.
%. F#istrust and unfairnessF - 3/ese situations )eep everyone on ed&e2 create 1ad
attitudes2 and !o(er productivity. It is important to )eep an open !ine of communication to
avoid misunderstandin& and )no( (/at peop!e are t/in)in& a1out your decisions.
#ana&ers must consistent!y 1ui!d trust and &ive e6ua! treatment - =ust do t/e ri&/t t/in&.
$. F8nc!ear po!icies and no sense of directionF - .ac) of focus causes uncertainty and
undermines confidence in mana&ement. Gou need more t/an a (e!!-(ritten po!icy
manua!. Enforcement of po!icies and c!ear communications are essentia!.
3o ma)e sure everyone &ets t/e messa&e2 you can repeat your exp!anation in a variety of
(ays U repetition and feed1ac) are important. 7einforce po!icies t/rou&/ memos2 artic!es2
1u!!etin 1oard postin&s2 persona! meetin&s2 and sma!! &roup discussions.
5. FCareer and =o1 am1i&uityF - If peop!e are uncertain a1out t/eir =o1s and careers2 t/ere
is a fee!in& of /e!p!essness and of 1ein& out of contro!. In addition to t/e trusted =o1
descriptions and annua! personne! revie(s2 peop!e need to understand a 1road ran&e of
issues t/at affect t/e company.
Ne(s of mer&ers2 conso!idations2 p!ant c!osin&s2 and restructurin& contri1ute to a fee!in&
of /e!p!essness. #ana&ement must )eep peop!e informed a1out situations t/at (i!! affect
t/eir =o1s2 or t/e rumor mi!! (i!! add to an a!ready stressfu! situation.
4. FNo feed1ac) - &ood or 1adT U eop!e (ant to )no( (/et/er t/ey are meetin&
expectations. Consistent2 (ritten and ver1a!2 persona!i5ed feed1ac) is re6uired. Some
peop!e need more attention t/an ot/ers2 1ut everyoneEs performance is en/anced if
!eaders fre6uent!y affirm individua! efforts.
3. FNo appreciationT - +ai!ure to s/o( appreciation &enerates stress t/at endan&ers
productivity t/rou&/out t/e company. 3/ere are many (ays to demonstrate appreciation2
1ut t/e most effective is a sincere comment a1out /o( muc/ t/e person means to you and
t/e company.
2. F.ac) of communicationsF - oor communication !eads to decreased performance and
increased stress. #ana&ement memos and announcements (or) (e!! for distri1utin&
information2 1ut t(o-(ay conversation improves communication and so!icits ideas and
su&&estions (/i!e reducin& stress and comp!aints.
1. V.ac) of contro!T U Ior)p!ace stress is at its &reatest (/en emp!oyees /ave no say
re&ardin& t/in&s t/at affect t/em. Gou can decrease sensitivity to a!! t/e ot/er stressors
and &ive a sense of 1ein& in contro! 1y invo!vin& emp!oyees in operatin& and
administrative decisions are actin& on t/eir input. +ront!ine emp!oyees )no( (/at t/ey
are ta!)in& a1out. .istenin& to (/at t/ey /ave to say reduces stress and increases
productivity.
MANAGING STRESS
Stress cannot 1e avoided. It s/ou!d not 1e avoided. Iit/out stress2 t/ere (i!! 1e
no attempt to try t/e difficu!t. @ne (i!! &ive up muc/ too easi!y. @ne (i!! not succeed in
doin& even (/at one is easi!y capa1!e of2 1ecause even t/e norma! facu!ties (i!! not come
into p!ay - !i)e t/e &oa!)eeper2 if /e remained re!axed even at t/e !ast minute.
3/ere are t(o aspects to ta)e care of in mana&in& stress. @ne is t/at one s/ou!d
not deve!op stress to t/e point t/at one 1ecomes non-functiona! !i)e -r=una !ayin& do(n
/is arms. 3/e second is to try to &et 1ac) to norma! as 6uic)!y as one can and not
continue to 1e in a state of stress for too !on&.
3/e former is ac/ieved essentia!!y 1y an attitude t/at is deve!oped 1y rationa!
t/ou&/ts. 3/e first is to rea!i5e t/at oneEs perceptions often distort t/e rea!ity. 3/e
situation may not 1e as 1ad as it may seem to 1e. 3/e second is to understand t/at a
fai!ure is not an unmiti&ated disaster. It is not possi1!e to succeed a!! t/e time. It is not
even necessary to succeed a!! t/e time. @ne fai!ed effort does not mean t/at t/e person is
no &ood. No1ody /as succeeded (it/out many !osses. Even Ior!d c/ampions sometimes
!ose a first round matc/ to an unseeded p!ayer. #arconi and 3/omas -!va Edison
succeeded in t/eir inventions after many attempts t/at fai!ed. 3/ey sa( fai!ures as
opportunities to !earn.
3/e t/ird is to reco&ni5e t/at (orry and anxiety (i!! not modify t/e situation2 1ut
(i!! on!y distur1 oneEs peace of mind and /ea!t/. If one (atc/es passen&ers at airports
and rai!(ay stations2 one (i!! find /o( some of t/em remain 6uite re!axed and even
s!eepin& (/i!e ot/ers are continuous!y ma)in& en6uiries from officia!s a1out extent and
causes of de!ays. Suc/ constant en6uiries on!y irritate2 1ut do not expedite so!utions.
3/ey add to stress of se!f and of ot/ers.
-not/er very va!id concept is (/at is postu!ate in t/e 4ita. Gou can on!y do. 3/e
resu!ts are not in your /ands. 3/e resu!ts2 ca!!ed fai!ures or successes are in t/e future.
@ne does not /ave contro! on t/e future. @ne can ac6uire some contro! on t/e present and
t/at is (/at one does. -!so t/e success or fai!ure does not depend on!y on (/at one does.
#any ot/er factors impin&e. 3/erefore2 t/e 4ita proposes2 do your duty and do not (orry
a1out (/at t/e conse6uences or fruits may 1e. @n!y t/ou&/ts a1out t/e possi1!e
desira1i!ity of t/e fruits cause anxieties. #ot/er 3eresa /ad expressed t/e same t/ou&/t2
(/en s/e is reported to /ave said to t/e industria!ist #r J.7.9.3ata2 F I/y are you
(orryin& a1out povertyL Gour (or) is to open more industries2 &ive more emp!oyment to
peop!e and !eave t/e rest to 4od.F.
- situation t/at causes stress is a pro1!em situation. 3/e so!ution needs &eneratin&
mana&eria! options. eop!e !ose tempers and a1use officia!s as a resu!t of stress. None of
t/ese so!ve t/e pro1!ems t/at may exist. ro1!em so!vin& needs ca!m2 c!ear2 ana!ytica!
t/in)in&. C!arity of t/ou&/t and ana!ysis improves (it/ Eustress and deteriorates (it/
9iStress. #ana&eria! a!ternatives and options (i!! 1e seen (/en one Ris concernedE (it/
t/e matter2 not (/en one is RanxiousE.
-n a(areness t/at not/in& (i!! 1e perfect and t/at anyt/in& t/at can &o (ron&
(i!! &o (ron&2 /e!ps to cope (it/ t/e stress situations. eop!e (/o demand of t/emse!ves
Exce!!ence a!(ays2 are !i)e!y to deve!op /i&/ stress. erfection is not necessary. It may
a!so not 1e possi1!e. Satisfyin& is often t/e on!y avai!a1!e option.
-t (or) one must !earn to de!e&ate. #any peop!e 1e!ieve t/at t/ey a!one can do
certain tas)s. 3/e &o!den ru!e is to ma)e t/is statement inva!id as 6uic)!y as possi1!e.
Stress is on!y one reason for doin& so. 3/e positive outcomes are many. -s one rises in
t/e /ierarc/y2 it (ou!d 1e impossi1!e to do a!! t/e =o1s t/at /ave to 1e done. @ne needs to
pass on to ot/ers. 3ime spent in ma)in& t/is /appen2 is &ood investment for t/e future.
4ettin& 1ac) to norma! is re!ative!y easy. @ne on!y /as to &et oneEs mind into a
condition in (/ic/ t/ere is no stress. -ny p!easant activity (i!! ma)e t/is possi1!e.
?o11ies /e!p. 3/e practice of Go&a is exce!!ent to re!ax oneEs 1ody and mind. Stress is
re!ieved (/en one can s/are oneEs t/ou&/ts and fee!in&s (it/ someone e!se. 4ood tunes
and ra&as2 !i)e in 1/a=ans and &/a5a!s2 /ave t/e capacity to soot/e oneEs nerves2 even if
one is not !istenin&.
@ut!ines t/e individua! and or&ani5ationa! impacts of stress Identifies various
interventions desi&ned to reduce stress Covers emp!oyee re/a1i!itation fo!!o(in& !on&-
term a1sence Exp!ains emp!oyers< !e&a! duties and o1!i&ations +eatures six detai!ed
company case studies settin& out a variety of approac/es to stress mana&ement Stress is
t/e !ar&est sin&!e cause of !on&-term a1sence amon& (/ite-co!!ar (or)ers in t/e 8A. It is
not surprisin&2 t/erefore2 t/at considera1!e efforts are no( 1ein& made to reduce its
impact in t/e (or)p!ace. Emp!oyers a!so /ave a !e&a! duty to conduct ris) assessments
and ta)e action (/enever emp!oyees are )no(n to 1e experiencin& stress.
In many or&ani5ations2 /o(ever2 stress sti!! remains a difficu!t issue to address. It
can 1e /ard to define and t/ere continues to 1e scepticism in certain 6uarters over t/e
aut/enticity of some emp!oyees< c!aims of fee!in& <stressed< at (or). Securin& top
mana&ement commitment 1y presentin& a sound 1usiness case is t/erefore vita! to
de!iverin& t/e necessary or&ani5ationa! infrastructure for a successfu! stress mana&ement
strate&y.
Identifyin& t/e main sources of stress remains t/e most effective first step in stress
mana&ement. 3/is provides a foundation for tar&etin& interventions at 1ot/ an individua!
and or&ani5ationa! !eve!2 suc/ as offerin& trainin& and support for mana&ers and
emp!oyees or &ivin& access to sources of /e!p suc/ as emp!oyee assistance pro&rammes.
It is inevita1!e2 /o(ever2 t/at some emp!oyees (i!! deve!op stress-re!ated i!!nesses
resu!tin& in !on&-term a1sence from (or). -t t/is sta&e2 /avin& a (e!!-structured
re/a1i!itation process in p!ace is essentia!.
- company practice section detai!s /o( six or&ani5ations are tac)!in& t/e issue of
stress mana&ement. 3/e Study a!so reports on t/e ?ea!t/ and Safety Executive<s (or) to
deve!op a set of <&ood practice< stress mana&ement standards2 (/i!e a separate four-pa&e
<Stress and t/e !a(< section summari5es emp!oyers< !e&a! o1!i&ations and duties.
-s t/e #ana&er> -s t/e 1oss2 one can ensure t/at su1ordinates are not put to
undue stress and a!so t/at t/ey are /e!ped to &et out of stress situations as 6uic)!y as
possi1!e. 3/e steps are
• 7eco&ni5e t/e stress !eve!s
• S/o( concern
• Encoura&e ta!)in&
• .isten
• Empat/ise
• Exp!ain and s/o( /o( it can 1e done
• 7eassure
• rovide support
• 9iscuss and invo!ve t/em in decisions
• S/o( respect to t/e individua!s
• -void insu!t2 denunciation2 a1use2 reprimand2 particu!ar!y in pu1!ic
• -void manipu!ation2 coercion2 1!amin&
• -void pressuri5in& too muc/
• rovide socia! support
-!! t/e a1ove2 render support and /e!p to reduce anxieties. It is not su&&ested t/at
t/e demands on peop!e s/ou!d 1e !o(ered. eop!e !i)e c/a!!en&es. 3/ey must 1e &iven
c/a!!en&in& assi&nments. 3/at is t/e on!y (ay to &ro(t/. 0ut if t/ere is a sensin& of
extreme stress2 it s/ou!d 1e mana&ed t/rou&/ reassurance2 not 1y (it/dra(in& t/e
assi&nment.
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Studies on Stress /ave identified t/at 3ype - persona!ities tend to &et stressed
muc/ faster t/an 3ype 0 persona!ities. 3/e c/aracteristics of a 3ype - persona!ity are an
intense ur&e to ac/ieve2 impatience and rest!essness2 a!(ays on t/e move2 /urryin&2 doin&
more t/an one tas) at a time. ?e )eeps a /eavy and ti&/t sc/edu!e and dis!i)es (aitin&
and re!axin&. 3/e 3ype 0 is exact!y t/e opposite2 ta)es t/in&s easy2 finds time to re!ax2 is
not impatient and is not o1sessed (it/ (innin& a!! t/e time.
Instruments /ave 1een deve!oped to identify t/e 3ype of any person. 0ut no one is
fu!!y 3ype - or fu!!y 3ype 0. It is possi1!e to move from one type to anot/er. It is not as if
3ype 0 is t/e more desira1!e persona!ity2 1ecause stress is not t/e on!y factor re!evant for
effectiveness. -c/ievement is e6ua!!y important for effectiveness and t/ere t/e 3ype -
/as a 1etter c/ance to (in.
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Inade6uacy of resource is a common stressor. @ne needs resources to do a =o1 and
if t/e resource is not avai!a1!e2 t/ere cou!d 1e stress. @ne important resource is 3ime.
#any peop!e find t/at t/ey do not /ave enou&/ time to do a =o1. 9ead!ines seem to 1e
difficu!t to meet. 3/is is true of individua!s as (e!! as of co!!ectives. Ie read of
committees as)in& for extension of time to do t/eir =o1s; of pro=ects not 1ein& comp!eted
on time. 8nfortunate!y2 time is suc/ a resource t/at no1ody can &ive more or ta)e a(ay.
Every1ody /as a definite amount of time avai!a1!e. Studies s/o( t/at peop!e are poor
p!anners in terms of usa&e of time as a resource. 3ime is (asted in a num1er of (ays.
3/erefore2 if one !earns (ays to mana&e oneEs time 1etter2 t/ere cou!d 1e a 1etter contro!
on stress.
3ime is (asted 1ecause of
• Non-productive (or) !i)e searc/in& for fi!es2 papers and references.
• -vai!a1!e information 1ein& inade6uate or incomp!ete
• #eetin&s and !en&t/y reports
• Indecisiveness2 una1!e to ma)e up oneEs mind
• Correctin& errors in instructions2 assi&nments
• C!arifyin& &oa!s and ro!es
• 3oo muc/ routine2 paper(or)
• .ac) of prioriti5ation
nce t/e cause is )no(n2 t/e remedy s/ou!d 1e o1vious. 3/e 1est (ay to )no( t/e
cause is to )eep a detai!ed !o& of /o( one is usin& /is time over a period of a (ee) or so.
Some of t/e remedies (i!! 1e in t/e nature of read=ustments of persona! /a1its2 !i)e
p!annin& on priorities2 avoidin& drift in meetin&s2 not insistin& on perfectionism etc.
Some remedies (i!! 1e in t/e nature of reor&ani5in& (or) systems in t/e office so t/at
searc/ and corrections are made minima!. Some (i!! 1e in t/e nature of trainin& ot/ers for
1etter (or) practices2 so t/at supervision can 1e !ess.
Indecisiveness /as 1een mentioned as a time (aster. 3/is may /appen 1ecause of
!ac) of c!arity on o1=ectives or 1ecause of fati&ue and t/e mind not 1ein& a1!e to
concentrate. 0ot/ are avoida1!e. Indecisiveness can a!so /appen 1ecause of !ac) of
)no(!ed&e on t/e su1=ect. 3/e time one ta)es to study a matter depends on oneEs s)i!!.
Experienced peop!e run t/rou&/ a 100 pa&e fi!e2 (it/out readin& every pa&e2 1ut pic)in&
up t/e important and re!evant matter2 (/i!e anot/er may /ave to spend dou1!e t/e time
readin& every paper to determine its re!evance. 3/us2 one (ay to mana&e time 1etter is to
improve oneEs s)i!!s at (or)
7eco&ni5in& Stress> 3/e fo!!o(in& are indicators t/at you may 1e experiencin&
• 4enera! irrita1i!ity
• E!evated /eart rate
• Increased 1!ood pressure
• Increased accident proneness
• +!oatin& anxiety-anxious fee!in& for no specific reason
• 3rem1!in&
• Insomnia
• ?eadac/es
• Indi&estion
• ain in nec) andDor !o(er 1ac)
• C/an&es in appetite or s!eep pattern
+ina!!y2 if stress /as 1ecome too muc/ to /and!e2 see) /e!p. 9on<t !et t/e fear of
(/at ot/ers mi&/t say or t/in) stop you from doin& (/at<s 1est for you. If you t/in) you
mi&/t 1e depressed2 discuss your concern (it/ your fami!y doctor2 minister2 or a menta!
/ea!t/ professiona!2 (/o can !isten and /e!p you. If youEre afraid to &o a!one2 ta)e a
trusted friend (it/ you. Gou are not a!one. arents and friends may understand more t/an
you t/in) t/ey mi&/t2 and t/ey certain!y (ant you to fee! 1etter
3reatment and medications are avai!a1!e t/at can provide re!ief sometimes in a
fe( (ee)s. 3/e most common forms of treatment for depression are psyc/ot/erapy2
antidepressants or a com1ination of 1ot/. Gour /ea!t/ provider (i!! /e!p determine t/e
1est treatment for you.
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I/en it is part of a natura! reaction to c/a!!en&e or dan&er2 t/e 1odyEs response is
ca!!ed positive stress. ?o(ever2 (/en you fee! out of contro! or under intense pressure2
you may experience t/e p/ysica!2 emotiona!2 or re!ationa! symptoms 1rou&/t on 1y
ne&ative stress. 3/ese are t/e si&ns of stress t/at you need to reco&ni5e and contro!.
It is important to remain attentive to ne&ative stress symptoms and to !earn to
identify t/e situations t/at evo)e t/em. I/en t/ese symptoms persist2 you are at ris) for
serious /ea!t/ pro1!ems 1ecause stress can ex/aust your immune system. 7ecent researc/
demonstrates t/at *0: of i!!ness is stress-re!ated.
It is not possi1!e to !ive (it/out any stress. Ie can2 /o(ever2 !earn (ays to /and!e
t/e stress of dai!y !ife efficient!y2 and to mana&e our reactions to stress and minimi5e its
ne&ative impact.
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In t/e 1est of a!! possi1!e (or!ds2 (/en a stressfu! situation ends2 /ormona!
si&na!s s(itc/ off t/e stress response2 and t/e 1ody returns to norma!. 8nfortunate!y2
stress doesn<t a!(ays !et up. If you tend to /ar1or anxiety2 and you (orry a1out dai!y
events and re!ations/ips2 your stress response never s/uts do(n. Studies s/o( t/at !on&-
term activation of stress symptoms can /ave a /a5ardous2 even !et/a! effect on your 1ody.
I/en t/e si&ns of stress persist2 you are at ris) for many /ea!t/ pro1!ems t/at peop!e
often do not rea!i5e are2 in !ar&e part2 attri1uta1!e to stress2 suc/ as>
• @1esity
• ?eart disease
• Cancer
• 9epression
• -norexia nervosa or ma!nutrition
• @1sessive-compu!sive or anxiety disorder
• Su1stance a1use
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Identifyin& unre!ieved stress and 1ein& a(are of its effect on our !ives is not
sufficient for reducin& its /armfu! effects. Just as t/ere are many sources of stress2 t/ere
are many possi1i!ities for its mana&ement. ?o(ever2 a!! re6uire (or) to(ard c/an&e>
c/an&in& t/e source of stress andDor c/an&in& your reaction to it. ?o( do you proceedL
• 0ecome a(are of your stressors and your emotiona! and p/ysica! reactions.
• Notice your distress. 9on<t i&nore it. 9on<t &!oss over your pro1!ems.
• 9etermine (/at events distress you. I/at are you te!!in& yourse!f a1out meanin&
of t/ese eventsL
• 9etermine /o( your 1ody responds to t/e stress. 9o you 1ecome nervous or
p/ysica!!y upsetL If so2 in (/at specific (aysL
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• Can you c/an&e your stressors 1y avoidin& or e!iminatin& t/em comp!ete!yL
• Can you reduce t/eir intensity Bmana&e t/em over a period of time instead of on a
dai!y or (ee)!y 1asisCL
• Can you s/orten your exposure to stress Bta)e a 1rea)2 !eave t/e p/ysica!
premisesCL
Can you devote t/e time and ener&y necessary to ma)in& a c/an&e B&oa! settin&2
time mana&ement tec/ni6ues2 and de!ayed &ratification strate&ies may 1e /e!pfu!
/ereCL
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• 3/e stress reaction is tri&&ered 1y your perception of dan&er...p/ysica! dan&er
andDor emotiona! dan&er. -re you vie(in& your stressors in exa&&erated terms
andDor ta)in& a difficu!t situation and ma)in& it a disasterL
• -re you expectin& to p!ease everyoneL
• -re you overreactin& and vie(in& t/in&s as a1so!ute!y critica! and ur&entL 9o you
fee! you must a!(ays prevai! in every situationL
• Ior) at adoptin& more moderate vie(s; try to see t/e stress as somet/in& you can
cope (it/ rat/er t/an somet/in& t/at overpo(ers you.
• 3ry to temper your excess emotions. ut t/e situation in perspective. 9o not !a1or
on t/e ne&ative aspects and t/e F(/at if<s.F
• .earn to moderate your p/ysica! reactions to stress.
• S!o(2 deep 1reat/in& (i!! 1rin& your /eart rate and respiration 1ac) to norma!.
• 7e!axation tec/ni6ues can reduce musc!e tension. E!ectronic 1iofeed1ac) can
/e!p you &ain vo!untary contro! over suc/ t/in&s as musc!e tension2 /eart reate2
and 1!ood pressure.
• #edications2 (/en prescri1ed 1y a p/ysician2 can /e!p in t/e s/ort term in
moderatin& your p/ysica! reactions. ?o(ever2 t/ey a!one are not t/e ans(er.
.earnin& to moderate t/ese reactions on your o(n is a prefera1!e !on&-term
so!ution.
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• Exercise for cardiovascu!ar fitness t/ree to four times a (ee) Bmoderate2
pro!on&ed r/yt/mic exercise is 1est2 suc/ as (a!)in&2 s(immin&2 cyc!in&2 or
=o&&in&C.
Eat (e!!-1a!anced2 nutritious mea!s.
• #aintain your idea! (ei&/t.
• -void nicotine2 excessive caffeine2 and ot/er stimu!ants.
• #ix !eisure (it/ (or). 3a)e 1rea)s and &et a(ay (/en you can.
• 4et enou&/ s!eep. 0e as consistent (it/ your s!eep sc/edu!e as possi1!e.
• #aintain your emotiona! reserves.
• 9eve!op some mutua!!y supportive friends/ipsDre!ations/ips.
• ursue rea!istic &oa!s2 (/ic/ are meanin&fu! to you2 rat/er t/an &oa!s ot/ers /ave
for you /at you do not s/are.
• Expect some frustrations2 fai!ures2 and sorro(s. -!(ays 1e )ind and &ent!e (it/
yourse!f -- 1e a friend to yourse!f.
SEVEN TIPS TO REDUCE STRESS AT WOR"
?ere are some tips t/at (i!! /e!p you ac/ieve success over stress. Gou can reduce
stress on t/e =o1.
1. I/en ma)in& p/one ca!!s2 as you pic) up t/e p/one and dia!2 ta)e t/ree s!o(
deep 1reat/s. Concentrate on pus/in& tension out of your !un&s as you ex/a!e.
2. Sit do(n to eat. B9o not eat (/i!e standin& or drivin& in your carC +ocus on
re!axin& and en=oya1!e ta!) at !unc/time. If co-(or)ers on!y insist on re/as/in&
a!! of t/e ne&ative stuff at (or)2 insist on eatin& a!one.
3. I/en you drive your car to your 1usiness or your =o12 !isten to somet/in&
en=oya1!e or motivatin&.
4. @n t/e (ay /ome from your 1usiness or your =o12 !isten to en=oya1!e or re!axin&
music.
5. 3a)e a fe( minutes eac/ day to t/an) 4od2 in (/atever form is consistent (it/
your 1e!ief system2 for t/e &!orious sunrise. -t sunset2 do t/e same. If you are at
(or) (/i!e t/e sun is settin&2 ta)e a 6uic) 1rea) to (atc/ t/e sun set and a&ain2
t/an) your concept of F4odF for t/e &!orious sunset.
$. 3a)e a fe( minutes at (or) to t/in) of peop!e (/o may /ave /armed you in any
(ay. 0reat/e deep!y2 re!ax2 and pus/ out a!! of t/e tension surroundin& t/ose
t/ou&/ts. +i!! your /ear and your !un&s (it/ for&iveness for t/e person or persons
(/o /ave /armed you. Iis/ for t/em t/e same success and /appiness you (is/
for yourse!f.
%. .ive today as if it (/ere your !ast day. #a)e your !ast day2 your 1est day
S#$'44 M/,/-')',# S#$/#'-+'4
3/e fo!!o(in& are tips on /o( to maintain a /ea!t/ier !ifesty!e and to prepare you to cope
(it/ t/e stress of everyday !ivin&.
• Structure eac/ day to inc!ude a minimum of 20 minutes of aero1ic exercise.
• Eat (e!!-1a!anced mea!s2 more (/o!e &rains2 nuts2 fruits and ve&eta1!es.
Su1stitute fruits for desserts.
• -void caffeine. 3/e su1stance may a&&ravate anxiety2 insomnia2 nervousness and
trem1!in&.
• 7educe refined su&ars. Excess su&ars cause fre6uent f!uctuation in 1!ood &!ucose
!eve!s2 addin& stress to t/e 1ody<s p/ysio!o&ica! functionin&.
• 7educe a!co/o! and dru&s. 3/ese su1stances may add to /eadac/es and s(e!!in&2
decrease copin& mec/anisms and add to depression.
G'# / .'/4# @ D(%$4 (3 4.''* ,+-D#.0.
• Spend time eac/ day (it/ at !east one re!axation tec/ni6ue - ima&ery2
daydreamin&2 prayer2 yo&a or meditation.
• 3a)e a (arm 1at/ or s/o(er.
• 4o for a (a!).
S'8', S%&&'443%. S#$'44 M/,/-')',# T'&D,+G%'4
#ana&e your stress and 1e a /ea!t/ier2 /appier and more p!easant person to 1e
around. .etEs cut to t/e c/aseM
1. M/<' 4#$'44 0(%$ 3$+',2
-c)no(!ed&e t/at stress is &ood and ma)e stress your friendX 0ased on t/e 1odyEs
natura! Vfi&/t or f!i&/tT response2 t/at 1urst of ener&y (i!! en/ance your
performance at t/e ri&/t moment. IEve yet to see a top sportsman tota!!y re!axed
1efore a 1i& competition. 8se stress (ise!y to pus/ yourse!f t/at !itt!e 1it /arder
(/en it counts most.
5. S#$'44 +4 &(,#/-+(%4
Stressed peop!e snee5e stress &erms indiscriminate!y and 1efore you )no( it2 you
are infected (it/ stress &erms tooX
rotect yourse!f from stress &erms 1y reco&ni5in& stress in ot/ers and !imitin&
your contact (it/ t/em. @r if youEve &ot t/e inc!ination2 p!ay stress doctor and
teac/ t/em /o( to 1etter mana&e t/eir stress.
:. C(*0 -((2 4#$'44 )/,/-'$4
I/en peop!e around are !osin& t/eir /ead2 (/ic/ )eeps ca!mL I/at are t/ey
doin& different!yL I/at is t/eir attitudeL I/at !an&ua&e do t/ey useL -re t/ey
trained and experiencedL +i&ure it out from afar or sit t/em do(n for a c/at.
.earn from t/e 1est stress mana&ers and copy (/at t/ey do.
;. U4' D'/80 1$'/#D+,-.
Gou can tric) your 1ody into re!axin& 1y usin& /eavy 1reat/in&. 0reat/e in s!o(!y
for a count of % t/en 1reat/e out for a count of 11. 7epeat t/e %-11 1reat/in& unti!
your /eart rate s!o(s do(n2 your s(eaty pa!ms dry off and t/in&s start to fee!
more norma!.
7. S#(* 4#$'44 #D(%-D# #$/+,4
It is possi1!e to tan&!e yourse!f up in a stress )not a!! 1y yourse!f. VIf t/is /appens2
t/en t/at mi&/t /appen and t/en (eEre a!! up t/e cree)XT #ost of t/ese t/in&s
never /appen2 so (/y (aste a!! t/at ener&y (orryin& need!ess!y. 4ive stress
t/ou&/t-trains t/e red !i&/t and stop t/em in t/eir trac)s. @)ay so it mi&/t &o
(ron& U /o( !i)e!y is t/at2 and (/at can you do to prevent itL
A. ",(C 0(%$ 4#$'44 D(# 4*(#4 /,2 #$+--'$ *(+,#4
resentations2 intervie(s2 meetin&s2 &ivin& difficu!t feed1ac)2 ti&/t dead!inesM
#y /eart rate is cran)in& up =ust (ritin& t/ese do(nX
#a)e your o(n !ist of stress tri&&er points or /ot spots. 0e specific. Is it on!y
presentations to a certain audience t/at &et you (or)ed upL 9oes one pro=ect
cause more stress t/an anot/erL 9id you drin) too muc/ coffeeL
Ano(in& (/at causes you stress is po(erfu! information2 as you can ta)e action
to ma)e it !ess stressfu!. 9o you need to !earn some ne( s)i!!sL 9o you need extra
resourcesL 9o you need to s(itc/ to de-caffeinated coffeeL
@. E/#, 2$+,<, 4.''* /,2 1' )'$$0L
.ac) of s!eep2 poor diet and no exercise (rea)s /avoc on our 1ody and mind.
Aind of o1vious2 1ut (ort/ mentionin& as itEs often i&nored as a stress
mana&ement tec/ni6ue. .isten to your mot/er and donEt 1urn t/e cand!e at 1ot/
endsX
#odern !ife is fu!! of stress. -s or&ani5ations 1ecome more comp!ex t/e potentia!
for2 and t/e amount of stress increases. 8r1ani5ation2 industria!i5ation and t/e increase in
sca!e of operations in t/e society are some of t/e reasons for risin& stress. Stress is an
inevita1!e conse6uence of socio-economic comp!exity2 and to some extent2 its stimu!ant
as (e!!. eop!e experience stress2 as t/ey can no !on&er /ave a comp!ete contro! over
(/at /appens in t/eir !ives.
3/eyEre 1ein& no escape from stress in modern !ife; (e need to find (ays of usin&
stress productive!y2 and reducin& dysfunctiona! stress. Even as stress is inevita1!e in
todayEs comp!ex !ife2 so is it necessary for /uman pro&ress. Stress is produced 1y severa!
/appenin&s in !ife. In &enera!2 every transition or c/an&e produces stress. eop!e in ne(er
states experience a /i&/er stress of transition. Goun& peop!e 1et(een 20 and 30 years of
a&e /ave 1een found to report t(ice as muc/ stress (/en2 compared to o!der peop!e.
Stress disorders /ave 1een found more fre6uent!y amon&st t/e ur1an popu!ation t/an t/e
rura!2 and are &reater in t/e /i&/er educationa! cate&ories.
#odern =o1s are frau&/t (it/ dan&er of stress. 3/e motivationa! strate&ies !i)e =o1
enric/ment2 incentives2 re(ards2 a(ards2 promotions may o1tain superior performance
from emp!oyee in s/ort term 1ut t/ese are a!so potentia! sources of =o1 stress2 if not
mana&ed time!y and appropriate!y. Sometimes t/ey may /ave fata! conse6uences t/at
ma)e t/ese motivationa! strate&ies not on!y irre!evant 1ut a!so counter productive.
3/erefore2 ?7 mana&ers must conduct and coordinate t/e studies intended to understand
t/e sources2 factors and imp!ications of stress in or&ani5ation. 0road!y t/ere are t(o )inds
of stress>
1. Environment induced stress !i)e economic recession2 uncertainty in 1usiness
environment2 competition2 c/an&in& tec/no!o&y2 and c/an&in& products.
2. @r&ani5ation induced stress !i)e comp!exity of mana&ement2 (/ic/ demands /i&/
!eve! of consistent performance2 increasin& pressureDtar&ets2 unstructured =o1
profi!es2 en/anced responsi1i!ities2 emp!oyment insecurity2 s/arp re(ard and
punis/ment measures.
Studies prove t/at stress is 1ecomin& a ma=or area of concern to mana&ements
particu!ar!y to ?7 mana&ers. 8nfortunate!y2 avoidin& or removin& stress a!to&et/er from
(or)p!ace is an impossi1!e tas). ?o(ever2 ?7 mana&ers must ma)e efforts to identify
sources of stress2 particu!ar!y or&ani5ation induced in order to minimi5e t/em. If !eft
unassessed or unattained2 it may 1ecome a formida1!e 1!oc) in rea!i5in& t/e potentia! of
emp!oyees apart from resu!tin& in dysfunctiona! effects to t/e or&ani5ation.
METHODLOGY
9efinin& t/e pro1!em and @1=ective> 3/e o1=ective of t/e study is to use
indicators to reduce stress amon& t/e emp!oyees for t/e purposes !i)e understand t/e
avoida1!e and unavoida1!e stress on t/e =o1s faced 1y t/e emp!oyees and to dra( p!ans to
(eed out t/e avoida1!e stress and to minimi5e t/e or&ani5ation induced stresses.
9eve!opin& t/e researc/ p!an> @nce t/e pro1!em is identified2 t/e next step is to
prepare a p!an for &ettin& t/e information needed for t/e researc/. 3/e present study (i!!
adopt t/e exp!oratory approac/ (/erein t/ere is a need to &at/er !ar&e amount of
information 1efore ma)in& a conc!usion. If re6uired2 t/e descriptive and casua!
approac/es may a!so 1e used.
Co!!ection and Sources of data> #ar)et researc/ re6uires t(o )inds of data2 i.e.2
rimary data and secondary data. 0ein& a firm in t/e 0an)in& industry2 data &at/erin&
(i!! invo!ve usa&e of 1ot/ primary and secondary data t/ou&/ t/ere (i!! 1e an extensive
usa&e of primary data. Ie!!-structured 6uestionnaires (i!! 1e prepared for 1ot/ existin&
as (e!! as non-existin& c!ients. 3/ere (i!! 1e persona! intervie(2 surveys. 3/e
6uestionnaires (i!! contain c!ose-ended 6uestions. Secondary data (i!! 1e co!!ected from
various =ourna!s2 1oo)s and (e1 sites
-na!y5e t/e co!!ected information> 3/is invo!ves convertin& ra( data into usefu!
information. It invo!ves ta1u!ation of data2 usin& statistica! measures on t/em for
deve!opin& fre6uency distri1utions and ca!cu!atin& t/e avera&es and dispersions.
7eport researc/ findin&s> 3/is p/ase (i!! mar) t/e cu!mination of t/e mar)etin&
researc/ effort. 3/e report (it/ t/e researc/ findin&s is a forma! (ritten document. 3/e
researc/ findin&s and persona! experience (i!! 1e used to propose recommendations
Samp!in& Si5e> 100 emp!oyees
Samp!in& 8nits> 3/e respondents2 i.e.2 t/e 8nit #an&ers of ICICI rudentia!.
7andom samp!in& is carried out
TD+4 */$#+&%./$ *$(M'&# D/4 1'', 2'8'.(*'2 10 %4+,- O$-/,+K/#+(,/. R(.'
S#$'44 S&/.' (ORS S&/.'):
It can 1e used to measure t/e ro!e stresses. 3/e @7S sca!e contains five items for
eac/ ro!e stress; it uses a 5-point sca!e B0 to 4C
ROLE SPACE CONFLICTS
Se!f-7o!e 9istance> t/is stress arises out of t/e conf!ict 1et(een t/e se!f-concept
and t/e expectations from t/e ro!e2 as perceived 1y t/e ro!e occupant. Suc/ conf!icts are
common2 a!t/ou&/ t/ey may not 1e so severe.
R(.' S#/-,/#+(,: -s t/e individua! &ro(s o!der2 /e a!so &ro(s in t/e ro!e t/at /e
occupies in an or&ani5ation of t/e individua! t/at t/e ro!e c/an&es2 and (it/ t/is c/an&e
in ro!e2 t/e need for ta)in& up a ne( ro!e 1ecomes crucia!. 3/is is 1ound to produce some
stress.
I,#'$-R(.' D+4#/,&': I/en an individua! occupies more t/an 1 ro!e t/ere are 1ound to
1e conf!icts 1et(een t/e different ro!es t/at /e occupies. Suc/ inter-ro!e conf!icts are
6uite fre6uent in a modern society2 (/ere an individua! is increasin&!y occupyin&
mu!tip!e ro!es in various or&ani5ations and &roups
ROLE SET CONFLICTS
R(.' A)1+-%+#0: I/en t/e individua! is not c!ear a1out t/e various expectations t/at
peop!e /ave from /is ro!e2 t/e conf!ict t/at /e faces is ca!!ed ro!e am1i&uity. 3/is may 1e
due to !ac) of information avai!a1!e to ro!e occupant2 or !ac) of understandin& of t/e cues
avai!a1!e to /im
R(.' EN*'&#/#+(, C(,3.+&#: I/en t/ere are conf!ictin& expectations or demands 1y
different ro!e senders2 t/e ro!e occupant may experience t/is stress. 3/ere may 1e
conf!ictin& expectations from t/e 1oss2 su1ordinates2 peers or c!ients.
R(.' O8'$.(/2: I/en t/e ro!e occupant fee!s t/at t/ere are too many expectations from
t/e si&nificant ot/ers in /is ro!e set2 /e experiences ro!e over!oad. It is measured 1y
as)in& 6uestions a1out peop!eEs fee!in&s on (/et/er t/ey cou!d possi1!y finis/ (or)
&iven to t/em durin& a modified (or)day.
R(.' E$(4+(,: - ro!e occupant may fee! t/at t/e functions2 (/ic/ /e (ou!d !i)e to
perform2 are 1ein& performed 1y some ot/er ro!e. 3/e stress fe!t may 1e ca!!ed ro!e
erosion. 7o!e erosion is !i)e!y to 1e experienced in an or&ani5ation2 (/ic/ is redefinin&
its ro!e and creatin& ne( ro!es.
R(.' I4(./#+(,: In a ro!e set2 t/e ro!e occupant may fee! t/at certain ro!es are
psyc/o!o&ica!!y c!oser to /im2 (/i!e ot/ers are at a muc/ &reater distance. 3/e main
criterion of distance is t/e fre6uency and ease of interaction. 3/e &ap 1et(een t/e desired
and t/e existin& !in)a&es (i!! indicate t/e amount t/e ro!e iso!ation.
P'$4(,/. I,/2'G%/&0: I/en a ro!e occupant fee!s t/at /e is not prepared to underta)e
t/e ro!e effective!y2 /e may experience t/is stress. 3/e ro!e occupant may fee! t/at /e
does not /ave enou&/ )no(!ed&e2 s)i!!s2 or trainin&2 or /as not /ad time to prepare for t/e
assi&ned ro!e. ersons (/o are assi&ned ne( ro!es (it/out enou&/ preparation or
orientation are !i)e!y to experience t/is type of stress
R'4(%$&' I,/2'G%/&0: 7esource Inade6uacy stress is experienced (/en t/e resources
re6uired 1y t/e ro!e occupant for performin& t/e ro!e effective!y are not avai!a1!e2 suc/ as
information2 peop!e2 materia!s2 finance or ot/er faci!ities
doc_585871845.doc