Preface

In the commercial arena, the choice of an effective strategy is perhaps the most important and the

toughest decision to take. The decision to select among the grand strategies and deciding upon

which strategy will best meet the enterprise’s objectives is rendered complex by multiple

considerations. The same is also true with the insurance companies in India who are constantly

revamping their strategies and coming out with innovative options to stay in the competition.

There were days when Life Insurance Corporation of India (LIC) was the only insurance

company available to people in India and where people synonymised Insurance to LIC. Also

since it was a Public Sector Undertaking (PSU) it has a great support from people. But now times

have changed a lot of private players have entered into the fray. There have been a lot of Indian

companies collaborating with foreign insurance giants like ICICI Prudential, Bajaj Allianz etc

who have already made their presence felt in the Indian Insurance industry.

Even though LIC is still the market leader with more than over 60% of the market share, the

private players are giving it a tough time. Since the last decade the market share of LIC had

fallen down by about more than 20%.

The new private players have started offering a variety of unlimited schemes right from

insurance plans for a 30 day old baby to that of a 70 year old senior citizen. Also the private

companies have started creating the importance and need of insurance in today’s life. They have

started positioning their brands and are marketing their products in such a way the people have

started feeling the need of security in their lives.

1
India is a vast market for life insurance that is directly proportional to the growth in premiums

and an increase in life density. With the entry of private sector players backed by foreign

expertise, Indian insurance market has become more vibrant.

Competition in this market is increasing with company’s continuous effort to attract the

customers with new product offerings. However, the market share of private insurance

companies remains low. Even to this day, Life Insurance Corporation (LIC) of India dominates

Indian insurance sector. The heavy hand of government still dominates the market, with price

controls, limits on ownership, and other restraints. They private players are still in their initial

days and would take some more time to capture a good market share. At present they are coming

up with new and innovative ideas.

The Life Insurance sector in India is growing at a very high rate through the Unit Linked

Insurance Plan (ULIPs). Most of the Life Insurance companies grow more than 100 % every

year all through ULIPs. In this study I have compared the ULIP’s products of four leading

Insurance companies, which are hot selling products at present.

The four selected companies on which the project is entirely focused are namely:-

 ICICI PRUDENTIAL LIFE INSURANCE LIMITED

 BAJAJ ALLIANZ LIFE INSURANCE LIMITED

 LIFE INSURANCE CORPORATION OF INDIA

2
  HDFC STANDARD LIFE INSURANCE LIMITED

My project work is divided into 11 chapters.

In chapter first I have covered about introduction of insurance & life insurance and in this

chapter I have also covered the market share of the life insurance companies.

In the second chapter II have covered the introduction ULIP, its funds option & its various

types of expenses.

In chapter third I have covered the profiles of the insurance companies as LIC, HDFC Standard

Life, ICICI Prudential & Bajaj Allianz life Insurance.

In chapter fourth I have covered the objective of the study & scope of the study. My

research objectives are the investment habit of people, level of awareness of ULIP in Ghazipur,

market share of the life insurance companies, etc.

In fifth chapter I have covered the importance of my study. In this chapter we know

about are the investment habit of people, level of awareness of ULIP in Ghazipur, market share

of the life insurance companies, etc.

In chapter sixth I have covered the research methodology where I have cover the primary and

secondary data. In primary data collection method I have taken questionnaire and schedule

method and in secondary data collection method I have taken journal of marketing advertising

books and internet.

The data analysis and interpretation has been covered in the chapter seventh where I have been

taken Column chart. And I have included the project report interpretation.

3
In the chapter eighth I have covered the finding & recommendation of my study which I

founded after completion of my project report.

In ninth chapter I have covered the conclusion, which is necessary part of report, in my

conclusion most of respondent prefer pension plan, life insurance, banks for investing their

money for securing their future.

In chapter tenth I have covered the questionnaire which can use in future if any requirement

arises in evaluation.

At last in chapter eleventh the bibliography is covered from which sources I have collected my

data for reliability of this next time it can be easily search.

4
 Acknowledgement

Completing the work assigned by a single hand is not always possible. With regard to my

Project, I would like to thank each and every one who offered help, guideline and support

whenever required.

The faculty members of T.E.R.I. P.G. College who provided me with valuable insights into the

completion of this project. Especially, my mentor Mrs. Rekha Srivastava, Lecturer Of

Business Administration who extended his guidance and support for bringing out this report in

the best possible way. I would like to express my heart felt thank to Mr. Rahul Anand

Singh, Lecturer & H.O.D. of Business Administration, T.E.R.I. P.G. College Ghazipur. I

thank my institute, T.E.R.I. P.G. College for providing me a very nice project topic for research

which enhancing my knowledge about ULIP.

I also want to thank my batchmates who have helped me in getting acquainted with various

aspects during the project.

Finally, not forgetting the respondents of my study, I thank them all, for providing me with all

the information required and co-operating in every possible way that they could.

Rashmeet Singh

5
CONCEPT OF INSURANCE :

Life has always been an uncertain thing . To be secure against unpleasant possibilities ,

always requires the utmost resourcefulness and foresight on the part of man . To pray or

to pay for protection is the spirit of the humanity . Man has been accustomed to pray

God for protection and security from time immemorial . In modern days Insurance

Companies want him to pay for protection and security . The insurance man says "God

helps those who help themselves "; probably he is correct.

Too many people in this country are not in employment ; and work for too many no

longer guarantees income security . Several millions are part-time , self employed and low

-earning workers living under pitiable circumstances where there is no security cover

against risk . Further the inherent changing employment risks , the prospect of continual

change in the work place with its attendant threats of unemployment and low pay

especially after the adoption of New Economic Policy and the imminent life cycle risks -

a new source of insecurity which includes the changing demands of family life ,

separation , divorce and elderly dependents are tormenting the society . Risk has become

central to one's life . It is within this background life insurance policy has been

introduced by the insurance companies covering risks at various levels . Life insurance

coverage is against disablement or in the event of death of the insured , economic

support for the dependents . It is a measure of social security to livelihood for the

insured or dependents . This is to make the right to life meaningful , worth

6
living and right to livelihood a means for sustenance . Therefore , it goes without saying

that an appropriate life insurance policy within the paying capacity and means of the

insured to pay premium is one of the social security measures envisaged under the

Indian Constitution . Hence , right to social security , protection of the family , economic

empowerment to the poor and disadvantaged are integral part of the right to life and

dignity of the person guaranteed in the constitution.

Man finds his security in income (money) which enables him to buy food , clothing ,

shelter and other necessities of life . A person has to earn income not only for himself

but also for his dependents , viz , wife and children . He has to provide legally for his

family needs , and so he has to keep aside something regularly for a rainy day and for

his old age . This fundamental need for security for self and dependents proved to be the

mother of invention of the institution of life insurance.

What is Insurance?

Mankind is exposed to many serious perils such as property losses from fire and

windstorm and personal losses from disability and premature death. Although it is

impossible for an individual to foretell or completely prevent their occurrence but it is

possible to provide against their financial effect the loss of property and earnings. From

the point of view of the individual the life Insurance may be defined as a contract

whereby for a Consideration amount called the premium , one party (the insurer) agrees to

pay to the other (the insured) or a beneficiary a particular amount upon the occurrence

of death or any other agreed event.

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  Insurance is the method of spreading and transfer of risks.

 Losses of few unfortunate are shared by and spread over to many exposed to the

same risk.

 Assets created by the owner in expectation of future needs have a value.

 Losses of assets for any reason deprive the owner of the expected benefits.

 It acts as a form of a safeguard against misfortunes.

 From the point of view of community life insurance may be defined as a social

device to make accumulations to meet uncertain losses resulting from premature

death or disability.

Purpose and need of insurance :

Assets are insured , because they are likely to be destroyed , through accidental

occurrences . Such possible occurrences are called perils . Fire , flood , breakdown ,

lightening , earthquake , etc . are perils. If such perils can cause damage to the assets , we

say that the asset is exposed to that risk. Perils are the events . Risks are the

consequential losses or damages . The risk to a owner of a building , because of the peril

of earthquake , may be a few crores of rupees, depending on the cost of the building

and the contents in it. The risk only means that there is a possibility of loss or

8
damage. The damage may or may not happen . Insurance is done against the contingency

that it may happen. There has to be an uncertainty about the risk . Insurance is relevant

only if there are uncertainties . If there is no uncertainty about occurrence of an event , it

cannot be insured against . In case of human being death is certain , but the time of

death is uncertain . In case of a person who is terminally ill , the time of death is not

uncertain , though not exactly known. He cannot be insured. Insurance does not protect

the asset . It does not prevent its loss due to the peril. The peril cannot be avoided

through insurance . The peril can sometimes be avoided , through better safety and damage

control management . Insurance only tries to reduce the impact of risk on the owner of

the asset and those who depend on that asset . It only compensates the losses and that

too , not fully. Only economic consequences can be insured . If the loss is notfinancial

,insurance may not be possible . Examples of non- economic losses are love and

affection of parents , leadership of managers , sentimental attachments to family heirlooms

, innovative and creative abilities, etc.

FUNCTIONS OF INSURANCE:-

The functions of Insurance can be described into two parts:

1. Primary Functions

2. Secondary Functions

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The primary functions of insurance include the following:-

Provide Protection - The primary function of insurance is to provide protection

against future risk , accidents and uncertainty . Insurance cannot check the happening

of the risk , but can certainly provide for the losses of risk . Insurance is actually a

protection against economic loss , by sharing the risk with others.

Collective bearing of risk – Insurance is a device to share the financial loss of few

among many others . Insurance is a mean by which few losses are shared among larger

number of people.

Assessment of risk - Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk . Risk is the basis for determining the premium

rate also.

Provide Certainty - Insurance is a device , which helps to change from uncertainty to

certainty . Insurance is device whereby the uncertain risks may be made more certain.

The secondary functions of insurance include the following:-

Prevention of Losses - Insurance cautions individuals and businessmen to adopt

suitable device to prevent unfortunate consequences of risk by observing safety

instructions ; installation of automatic sparkler or alarm systems , etc . Prevention of

losses cause lesser payment to the assured by the insurer and this will encourage for

10
more savings by way of premium . Reduced rate of premiums stimulate for more

business and better protection to the insured.

Small capital to cover larger risks - Insurance relieves the businessmen from security

Investments , by paying small amount of premium against larger risks and uncertainty.

Contributes towards the development of larger industries – Insurance provides

development opportunity to those larger industries having more risks in their setting

up . Even the financial institutions may be prepared to give credit to sick industrial

units which have insured their assets including plant and machinery

Brief History Of Insurance

The story of insurance is probably as old as the story of mankind . The same instinct

that prompts modern businessmen today to secure themselves against loss and disaster

existed in primitive men also . They too sought to avert the evil consequences of fire

and flood and loss of life and were willing to make some sort of sacrifice in order to

achieve security. Though the concept of insurance is largely a development of the recent

past , particularly after the industrial era – past few centuries – yet its beginnings date back

almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818.

Oriental Life Insurance Company started by Europeans in Calcutta was the first life

insurance company on Indian Soil . All the insurance companies established during that

11
period were brought up with the purpose of looking after the needs of European

community and Indian natives were not being insured by these companies . However ,

later with the efforts of eminent people like Babu Muttylal Seal , the foreign life

insurance companies started insuring Indian lives. But Indian lives were being treated as

sub-standard lives and heavy extra premiums were being charged on them. Bombay

Mutual Life Assurance Society heralded the birth of first Indian life insurance company

in the year 1870 , and covered Indian lives at normal rates. Starting as Indian enterprise

with highly patriotic motives , insurance companies came into existence to carry the

message of insurance and social security through insurance to various sectors of society.

Bharat Insurance Company (1896) was also one of such companies inspired by

nationalism . The Swadeshi movement of 1905-1907 gave rise to more insurance

companies . The United India in Madras , National Indian and National Insurance in

Calcutta and the Co-operative Assurance at Lahore were established in 1906 . In 1907 ,

Hindustan Co-operative Insurance Company took its birth in one of the rooms of the

Jorasanko , house of the great poet Rabindranath Tagore , in Calcutta . The Indian

Mercantile , General Assurance and Swadeshi Life (later Bombay Life) were some of the

companies established during the same period . Prior to 1912 India had no legislation to

regulate insurance business. In the year 1912 , the Life Insurance Companies Act, and the

Provident Fund Act were passed . The Life Insurance Companies Act, 1912 made it

necessary that the premium rate tables and periodical valuations of companies should be

certified by an actuary . But the Act discriminated between foreign and Indian companies

on many accounts , putting the Indian companies at a disadvantage

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The first two decades of the twentieth century saw lot of growth in insurance business. From 44

companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total

business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies

many financially unsound concerns were also floated which failed miserably. The Insurance Act

1938 was the first legislation governing not only life insurance but also non-life

insurance to provide strict state control over insurance business . The demand for

nationalization of life insurance industry was made repeatedly in the past but it gathered

momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced

in the Legislative Assembly . However , it was much later on the 19th of January , 1956 ,

that life insurance in India was nationalized . About 154 Indian insurance companies , 16

non-Indian companies and 75 provident were operating in India at the time of

nationalization . Nationalization was accomplished in two stages ; initially the management

of the companies was taken over by means of an Ordinance , and later , the ownership

too by means of a comprehensive bill. The Parliament of India passed the Life Insurance

Corporation Act on the 19th of June 1956 , and the Life Insurance Corporation of India

was created on 1st September , 1956 , with the objective of spreading life insurance much

more widely and in particular to the rural areas with a view to reach all insurable

persons in the country , providing them adequate financial cover at a reasonable cost.

Some of the important milestones in the life insurance business in India are:

 1818: Oriental Life Insurance Company , the first life insurance company on Indian

soil started functioning.

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 1870: Bombay Mutual Life Assurance Society , the first Indian life insurance company

started its business.

 1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

 1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

 1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

 1956: 245 Indian and foreign insurers and provident societies are taken over by the

central government and nationalized . LIC was formed by an Act of Parliament , viz .

LIC Act, 1956 , with a capital contribution of Rs. 5 crores from the Government of

India.

The General insurance business in India , on the other hand , can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in the

year 1850 in Calcutta by the British.

 1907: The Indian Mercantile Insurance Ltd. set up , the first company to transact all

classes of general insurance business.

 1957: General Insurance Council , a wing of the Insurance Association of India ,

frames a code of conduct for ensuring fair conduct and sound business practices.

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 1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalized the

general insurance business in India with effect from 1st January 1973.

 107 insurers amalgamated and grouped into four companies viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd. and the United India Insurance Company

Ltd. GIC incorporated as a company.

Life Insurance

Life insurance is a contract under which the insurer (Insurance Company ) in

Consideration of a premium paid undertakes to pay a fixed sum of money on The death

of the insured or on the expiry of a specified period of time whichever is earlier. In

case of life insurance , the payment for life insurance policy is certain. The Event insured

against is sure to happen only the time of its happening is not known . So life insurance

is known as ‘Life Assurance’ . The subject matter of insurance is life of human being.

Life insurance provides risk coverage to the life of a person. On death of the person ,

insurance offers protection against loss of income and compensate the titleholders of the

policy.

Why life insurance :-

 Protection of the interest of the family member.

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  Provision for education and marriage of the children.

 Post retirement income for self and dependents

 Special needs for medical expenses.

 Provision for health / illness.

 Provision for housing.

 Provision for income tax rebate.

Benefits of life insurance :

Insurance not only serves the ends of individuals or of special groups of individuals

but also is advantageous to the society as a whole.

 Benefits To The Individual:-

 Superior to any other saving plans

 Encourages and forces thrift

 Easy Settlement And Protection Against Creditors

 Administering the legacy for beneficiaries

 Ready marketing and suitability for quick borrowing

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  Disability benefits

 Accidental death benefits

 Tax relief

 Benefits to business :

Insurance results in business continuation and welfare of employees . Uncertainty of

business losses is reduced by insurance.

 Benefits of society :

The welfare of the society is protected . Insurance results in economic growth of the

Country and reduction in inflation.

List of Life Insurance companies in India:-

1. AEGON RELIGARE

2. AVIVA

3. BAJAJ ALLIANZ

4. BHARATI AXA

5. BIRLA SUN LIFE

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6. FUTURE GENERALI

7. HDFC STANDARD LIFE

8. HSBC

9. ICICI PRUDENTIAL

10. IDBI FORTIS

11. ING VYSYA

12. KOTAK LIFE INSURANCE

13. LIC

14. MAX NEWYORK LIFE

15. MET LIFE

16. RELIANCE LIFE

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17. SAHARA INDIA

18. SBI LIFE

19. SHRIRAM LIFE

20. TATA AIG LIFE

21. DLF PRAMERICA

22. CANARA HSBC OBC

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Market share of Life Insurance Companies:-

Life Insurance Corporation of India (LIC) , remains by far the largest player in the

market . Among the private sector players , ICICI Prudential Life Insurance (JV between

ICICI Bank and Prudential PLC ) is the largest followed by Bajaj Allianz Life Insurance

Company Limited (JV between Bajaj Group and Allianz).

The market share of the major market players of the insurance industry

Can be shown as the following pie chart:-

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 Market share

1% 6%
2%
2%
LIC
3%
ICICI Prudential
3%
Bajaj Allianz
3%
SBI Life

Reliance
7%
HDFC Standard Life

Birla Sun Life

Max Newyork

9% 64% Kotak Mahindra

Others

Unit Linked Insurance Plan ( ULIP )

What is ULIP ?

A plan which gives complete clarity about the various charges deducted and why it’s

being deducted and so how your fund will grow over time.

Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual

funds in terms of their structure and functioning . As is the case with mutual funds ,

21
investors in ULIPs is allotted units by the insurance company and a net asset value

(NAV) is declared for the same on a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to

the ones found in the mutual funds domain , i.e. diversified equity funds , balanced funds

and debt funds to name a few. Generally speaking , ULIPs can be termed as mutual fund

schemes with an insurance component . However it should not be construed that barring

the insurance element there is nothing differentiating mutual funds from ULIPs.

ULIPs are a category of goal-based financial solutions that combine the safety of

insurance protection with wealth creation opportunities . In ULIPs , a part of the

investment goes towards providing you life cover. The residual portion of the ULIP is

invested in a fund which in turn invests in stocks or bonds ; the value of investments

alters with the performance of the underlying fund opted by you.

Simply put , ULIPs are structured in such that the protection element and the savings

element are distinguishable , and hence managed according to your specific needs . In this

way , the ULIP plan offers unprecedented flexibility and transparency.

Financial Pyramid

22
Life Insurance will take care of your protection and saving & investment needs

Unit Linked Insurance Plans

23
Working of ULIPs:-

It is critical that you understand how your money gets invested once you purchase a
ULIP:
When you decide the amount of premium to be paid and the amount of life cover you
want from the ULIP , the insurer deducts some portion of the ULIP premium upfront .
This portion is known as the Premium Allocation charge , and varies from product to

24
product . The rest of the premium is invested in the fund or mixture of funds chosen by
you . Mortality charges and ULIP administration charges are thereafter deducted on a
periodic (mostly monthly ) basis by cancellation of units , whereas the ULIP fund
management charges are adjusted from NAV on a daily
The diagram below illustrates the working of ULIPs :-

TYPES OF FUNDS UNDER ULIPs:-

Most insurers offer a wide range of funds to suit one’s investment objectives , risk

profile and time horizons . Different funds have different risk profiles . The potential for

returns also varies from fund to fund . The following are some of the common types of

funds available along with an indication of their risk characteristics.

25
General description Nature of Risk category

investments

Equity Primarily invested in Medium to High

Funds company stocks with the

general aim of capital

appreciation.

Income, Fixed Interest and Invested in corporate bonds, Medium

Bond Funds government securities and

other fixed income

instruments.

Cash Sometimes known as Low

Funds Money Market Funds —

invested in cash, bank

deposits and money market

instruments

26
 Balanced Combining equity Medium

Funds investment with fixed

interest instruments

FEATURES OF A UNIT LINKED PLAN:-

ULIP distinguishes itself through the multiple benefits that it provides to the consumer .

The plan is a one stop solution providing:-

 Life Protection

 Investment and Savings

 Flexibility

a. Adjustable life cover

b. Investment option

 Transparency

 Options to take additional cover against

a. Death due to accident

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 b. Disability

c. Critical Illness

d. Surgeries

 Liquidity.

 Tax planning

 LIFE PROTECTION:-

Can any one of us deny that we do not need life protection ? Honestly none can

especially when we see the fatal events that occur so frequently around us. However the

need may vary and ULIP provides the benefit of adjusting according to the varying

need of the client.

The life insurance needs keep changing throughout the life stage of an individual :-

 When we start working

 When we start a family

 When our children start a career

 When we retire

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Therefore as our responsibilities grow the need for life protection grows and when these

responsibilities are successfully executed the need reduces.

ULIP allows a client to change the varying life protection needs that makes it :-

 Easier for the client to manage

 Hassle free

 Economically effective

The death benefit is usually a multiple of the Contribution being paid which ensures that

the Contribution is adequate enough to provide life protection and is also able to

maintain a semblance between protection and savings.

The charge is deducted each year as per the age of the client therefore at the age of 30

, mortality for the age of 30 is charged and at the age of 31, mortality for the age of

31 is charged.

 INVESTMENT AND SAVINGS :-

Undoubtedly all of us look for saving the money that we have and to ensure that the

investment that we make should create value for us and more the better . Many life

insurance plans present in the market do not provide justice to this important need of

the client . ULIP on the other hand has all the composition of satisfying investment and

savings needs of the clients.

29
 ULIP provides the client with the option of investing as per

personal risk profile and get returns accordingly . There are options of funds where in the

client can put money in:-

 Equity Market

 Debt Markets

 Balanced funds with a mix of the above two

 Short-term debt market

This also helps the client in saving in accordance to the age as a younger person can

afford to take some risk however a senior citizen might not be in a position to make

investment in comparatively high risk instruments.

 TRANSPARENCY :-

Every client has the right to know about the manner in which the contribution being

given by him is being invested . The biggest concern that is raised is about the charges .

ULIP are completely transparent and the client knows as how every paisa being charges

is allocated . There are various kinds of expenses that are involved in any insurance plan.

These expenses may be related to the sales and distribution cost , or the operational costs

30
, the costs related to the life insurance cover or the costs related to the management of

expenses.

 Options to take additional cover against:-

Riders provide more protection to the policyholder and ULIP allows addition of riders , at

minimal cost.

The common riders that are attachable are :-

 Death due to accident

 Disability

 Critical Illness

 Surgeries

 LIQUIDITY :-

This facility makes the ULIP a very practical insurance in current times . Most life

insurance plans do not provide the policyholder the facility of withdrawing money in

case the need arises. Unit Linked Plans provide you easy access to your money as and

when you may require . One can redeem the units after a particular period of time as

31
defined by the plan , as per the need . ULIP allows either partial & complete withdrawal ,

without penalizing the policyholder.

For example in the 6 th year of your plan , you require 15000/- for

certain medical expenses that came up. Your investment has been made in the balanced

fund . If the current NAV of the balanced fund is 15/-, then all you need to do is to

sell 1000 units which will give you 15000/-. The rest of the fund and the policy will

continue normally as this is a partial withdrawal . If need be , the policyholder can

withdraw all the monies in the funds by redeeming all the units .Liquidity thus provided

to the policyholder is immense value in servicing the ever-changing needs of the client.

 TAX PLANNING ;-

Regulation in India allows tax benefits in the contribution paid under section 88 .

contribution paid for health riders (critical illness and major surgical) is allowed tax

benefit under section 80 D , as per the prevailing tax laws . Maturity benefits are tax

free under section 10 (10) d , provided the life cover is at least 5 times of the annual

contribution paid . Death benefit is tax free under section 10 (10) d With so many tax

benefits available in one instrument - ULIP tends to be an intelligent tax planning tool.

THE VARIOUS KINDS OF EXPENSES OF ULIPs:-

The various kinds of expenses are detailed below:-

32
 CONTRIBUTION RELATED CHARGES: -

These are charges that are represented as a percentage of the regular or single

contribution paid . In case of a regular contribution plan , it is usually high in the first

year to pay for the distribution cost . This charge pays for the issuance and for

distribution commissions . This is a charge to cover the running expenses of the policy. For

single contribution plans this is levied once at the start of the policy . For regular

contribution plans this will be charged on a regular uniform basis depending upon the

frequency of payments . Normally these charges are shown as percentage of the

contribution . Allocation is another terminology used by the company in actually

representing costs..

 ADMINISTRATION CHARGES: :-

These are charges that are levied for the administration of the policy and the related

costs of administration of the insurance company , itself . These costs are different from

the issuance and the distribution related costs of the product . They are more related to

the costs like the IT , operational , etc cost of continuing the policy . There are a few

prominent ways in which these costs are levied.

They can be levied as the percentage of the value of the investments (funds) in

the account of the policyholder . So for example , as Bajaj Allianz levy a charge of

1.25% of the fund for the administration of the policy , every year . These kinds of

charges get adjusted in the Unit Value (NAV) , as the NAV is declared after adjusting

33
these costs . They can be levied as a flat charge with an option of increasing it by a

certain percentage over years.

 FUND MANAGEMENT FEE: -

All unit linked plans have underlying funds , which the policyholders choose for their

investments . These funds constitute of various financial instruments such as equity ,

bonds , money market instruments . The fund management fees is levied to pay for the

charges of managing the investments , which basically involve the cost of buying and

selling the various financial instruments for the various funds.

 MORTALITY CHARGES: -

This covers the cost of providing life protection for the insured and may be paid once

at the start of the policy or a recurrent manner (for example ). This charge is levied to

provide the insurance cover under the plan . Normally these charges are 1- year charges

and keep changing as per the age of the policyholder . These are normally expressed as -

per thousand of the sum assured and depend on the age of the policyholder . So , for

example one would have the mortality charge as Rs 1.50 per thousand of SA for a 30

year old and Rs 1.55 for the age of 35 years . This means that the cost of insurance of

Rs 1000 at the age of 30 is 1.50 , where the same insurance cover costs Rs 1.55 at the

age of 35 years . All unit- linked products have a mortality charge table that is used to

calculate the life insurance cover charge on a yearly basis.

34
 RIDER CHARGES:

Rider charges are similar in nature to the mortality charges as they are levied to pay for

the other protection benefits that the policyholder has chosen for-like the critical illness

benefit or the accident benefit , etc .

 SURRENDER CHARGES:

When the policyholder decides to surrender the policy or partially withdraw some of the

units for cash , a surrender charge may be apply . Usually the surrender charges only

apply in the first few years after the units are invested and are usually on a decreasing

scale . Surrender charges are used to cover initial expenses that have been incurred by

the company but not yet recovered from the policyholder yet . These charges can either

be expressed as a percentage of the value of investments or as a fixed flat charge ,

depending on the structure of the product . So , the policyholder may have charge of 2%

of the unit value as the surrender charge or Rs 1000 as the surrender penalty . Surrender

charges usually apply to policies with high allocation , especially in the first few years.

 TRANSACTIONAL SPECIFIC CHARGES:

These charges are levied when the client does some specifics transaction like changing

funds , topping up the investment component or withdrawals.

35
 Company Profile

 Life Insurance Corporation of India:-

The Life Insurance Corporation of India popularly known as “LIC of India” was incorporated

on September 1, 1956 by nationalizing 245 Indian as well as foreign companies . It was

established 52 years ago with a view to provide an insurance cover against various risk in life.the

luminaries who spearheaded this move at that time visualised an entity that will provide life

insurance to Indians, especially the vast rural masses, at an economical cost and channel the

36
savings for the betterment of the nation. It is the largest life insurance company in India and also

the countries largest investor. It is fully owned by the Government of India and headquartered in

Mumbai.

The subsidiary companies under LIC are:

LIC of India, International:-

A joint venture offshore company promoted by LIC, commenced its operation in july1989. The

primary objective is to the US-dollar denominated policies which cater to the insurance needs of

non-resident in Indians. It provides insurance services to policyholders who residing in Gulf. The

LIC International operates in all Gulf Cooperation Council (GCC) countries.

LIC Nepal:-

A joint venture company formed in September 2001 with the Vishal Group of Industries with a

capital base of Rs.250mn. It is one of the largest capitalized insurance companies of Nepal. It has

joint share between LIC of India (55%) Vishal Group (25%) and has a public participation to the

extent o 20%.

Life Insurance Corporation Lanka Limited (LICL):-

A joint venture company formed in 2003 with the Bartleet Group of Companies, it is one of the

oldest and reliable institutions in Sri Lanka. The combined strengths of these two formidable

companies has enabled LICL to emerge as the premier provider of Life Insurance in Sri Lanka.

The Indian-based blue-chip also has offices in UK, Mauritius, Fiji, and in all Middle East

countries.

37
LIC Housing Finance:-

Incorporated on june 19, 1989; its main objective is to provide long term finance for

construction or purchase of houses or apartments. The company provides long terms finance to

individuals for purchase, construction, repair and renovation of new \ existing flats\houses. It

also provides finance on existing property for business, personal needs and gives loans to

professionals for purchase or construction of clinics\ nursing homes\ diagnostic centers\office

space and also for purchase of equipments. It has set up a representative office in Dubai and

Kuwait to cater to the non- resident Indians in countries covering Bahrain, Dubai, Kuwait, Qatar

and Saudi Arabia. It has client group of over 9,40, 000prudent house owners who enjoy the

company’s financial assistance.

Vision:-

“To emerge as a transnationally competitive financial conglomerate of significance to societies

and be the pride of India “ .

Mission:-

Explore and enhance the quality of life of people through financial security by providing

products and services of aspired attributes with competitive returns and by rendering resources

for economic development.

Objectives of LIC:-

38
 Spread life insurance widely in particular to the rural areas and socially and economically

backward classes. This is done with a view to reach all the insurable persons in the

country and provide them adequate financial cover against death at a reasonable cost.

 To maximize mobilization of people’s savings by making insurance linked savings

adequately attractive.

 Bearing in mind, the primary obligation to its policyholders, whose money it holds in

trust, the investible funds to be deployed to the best advantage of the investors as well as

the national priorities and the obligations of attractive returns.

 To conduct business with utmost economy and keeping gin mind that the money belongs

to the policyholders.

 It acts as a trustee of the insured public in its individual and collective capacities.

 To meet the various life insurance need of the community that would arise in the

changing social and economic environment.

 It ensures that all people working in the corporation are involved to the best of their

capability in furthering the interests of the insured public by providing efficient service

with courtesy.

39
  Promote amongst all agents and employees of the corporation a sense of participation,

pride and job satisfaction through discharge of their duties with dedication towards

achievement of corporate objective.

LIC Product Portfolio:-

 Children Plans

 Jeeevan Anurag

 CDA Endowment Vesting at 21

 CDA Endowment Vesting at 18

 Jeevan Kishore

 Child Career Plan

 Child Fortune Plus

 Marriage Endowment or Educational

 Annuity Plan

 Jeevan Chhaya

 Child future Plan

 Money Back Plans

 Jeevan Varsha

 The Money Back Policy-20 years

 The Money Back Policy-25 years

40
  Jeevan Surabhi-15 Years

 Jeevan Surabhi-20 Years

 Jeevan Surabhi-25 Years

 Bima Bachat

 Plans for Handicapped Dependents

 Jeevan Aadhar

 Jeevan Vishwas

 Endowment Assurance Plans

 The Endowment Assurance Policy

 The Endowment Assurance Policy-Limited Payment

 Jeevan Mitra (Double Cover Endowment Plan)

 Jeevan Mitra (Triple Cover Endowment Plan)

 Jeevan Anand

 New Janraksha Plan

 Jeevan Amrit

 Special Money Back Plan for women

 Jeevan Bharti-1

 Whole Life Plans

 The Whole Life Policy

41
  The Whole Life Policy –Limited Payment

 The Whole Life Policy – Single Premium

 Jeevan Anand

 Jeevan Tarang

 Unit Linked Plans

 Market Plus –I

 Profit Plus

 Fortune Plus

 Money Plus-I

 Child Fortune Plus

 Pension Plans

 Jeevan Nidhi

 Jeevan Akshay-VI

 New Jeevan Dhara-I

 New Jeevan Suraksha-I

 Term Assurance Plans

 Two year Temporary Assurance Plan

 The Convertible Term Assurance Policy

 Anmol Jeevan- 1

42
  Amulya Jeevan -1

HDFC Standard Life Insurance Ltd.

Introduction:-

43
HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance

companies, which offers a range of individual and group insurance solutions. It is a joint venture

between Housing Development Finance Corporation Limited (HDFC Limited), India's leading

housing finance institution and a Group Company of the Standard Life Plc, UK. As on February

28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds

26.00% of equity in the joint venture, while the rest is held by others.

Our Key Strengths:-

Financial Expertise:-

As a joint venture of leading financial services groups, HDFC Standard Life has the financial

expertise required to manage your long-term investments safely and efficiently.

Range of Solutions:-

We have a range of individual and group solutions, which can be easily customized to specific

needs. Our group solutions have been designed to offer you complete flexibility combined with a

low charging structure.

Track Record So Far :-

Our gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 crores.

As on March 31, 2009, the company has more than 27 lakh polices in force.

Our Vision & Values:-

44
Our Vision:-

'The most successful and admired life insurance company, which means that we are the most

trusted company, the easiest to deal with, offer the best value for money, and set the standards in

the industry'.

'The most obvious choice for all'.

Our Values:-

Values that we observe while we work:

 Integrity

 Innovation

 Customer centric

 People Care “One for all and all for one”

 Team work

 Joy and Simplicity

Organizational Goals:-

HDFC’s main goals are to

a) Develop close relationships with individual households,

b) Maintain its position as the premier housing finance institution in the country,

45
 c) Transform ideas into viable and creative solutions,

d) Provide consistently high returns to shareholders,

e) To grow through diversification by leveraging off the existing client base

Our Parentage:-

HDFC Limited:-

HDFC Limited, India’s premier housing finance institution has assisted more than 3.3 million

families own a home, since its inception in 1977 across 2400 cities and towns through its

network of over 250 offices. It has international offices in Dubai, London and Singapore with

service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI’s and PIO’s to own a

home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000

crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a

deposit base of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors. Customer

Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for

the Indian housing finance industry. Recognition for the service to the sector has come from

several national and international entities including the World Bank that has lauded HDFC as a

model housing finance company for the developing countries. HDFC has undertaken a lot of

consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in

the setting up of housing finance companies.

46
Standard Life Group (Standard Life plc and its subsidiaries):-

The Standard Life Group has been looking after the financial needs of customers for over 180

years. It currently has a customer base of around 7 million people who rely on the company for

their insurance, pension, investment, banking and health-care needs. Its investment manager

currently administers £125 billion in assets. It is a leading pensions provider in the UK, and is

rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by

Moody's. Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the

Money Marketing Awards, and it was voted a 5 star life and pension’s provider at the Financial

Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been

awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its

inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the

Mortgage Magazine Awards in 2006.

Why HDFC Standard Life?

There are many reasons why one may choose HDFC Standard Life Insurance

Company Ltd. as your partner in meeting your insurance needs:

a) Innovative products to meet your needs.

b) Efficient customer service team.

c) Good financial track record of both parents – HDFC and Standard Life.

47
 d) Certified Financial Consultants to advise you.

e) Professional approach in managing your investments.

f) Income Tax benefits for our insurance products.

Products of HDFC standard life insurance:-

 Individual

 Group

 Social

 Individual Products

We have a varied range of Products that you can choose from tosuit all your needs. These will

help secure your future as well as the future of yourfamily. Our individual products are as

follows :-

Protection Plans :-

You can protect your family against the loss of your income or the burden of a loan in the

event of your unfortunate demise, disability or sickness. These plans offer valuable peace of

mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover

Term Assurance Plan.

Investment Plans :-

48
Our Single Premium Whole Of Life plan is well suited to meet your long term investment

needs. We provide you with attractive long term returns through regular bonuses.

Pension Plans:-

Our Pension Plans help you secure your financial independence even after retirement.

Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit

Linked Pension Plus

Savings Plans :-

Our Savings Plans offer you flexible options to build savings for your future needs such as

buying a dream home or fulfilling your children immediate and future needs. Our Savings range

includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus,

Unit Linked Endowment Plus II, Money Back, Unit Linked Enhanced Life Protection II,

Children's Plan, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star

Plus II.

 Group Products :-

We now offer the following group products to our esteemed corporate clients:

 Group Term Insurance

 Group Variable Term Insurance

49
  Group Unit-Linked Plan

 Social Product:-

Development insurance plan

Development Insurance plan is an insurance plan which provides life cover to members of a

Development Agency for a term of one year. On the death of any member of the group insured

during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of

the immediate financial needs following their loss.

ICICI Prudential Life Insurance Company Limited

50
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000.

The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs.

1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK

(26%).

The Company was granted Certificate of Registration for carrying out Life Insurance

business, by the Insurance Regulatory and Development Authority on November 24,

2000. It commenced commercial operations on December 19, 2000, becoming one of the first

few private sector players to enter the liberalized arena.

The Company is now operational in Agra, Ahmedabad, Ajmer, Allahabad, Amritsar,

Aurangabad, Bangalore, Bhatinda, Bhopal, Bhubaneswar, Chandigarh, Chennai,

Coimbatore, Dehradun, Goa, Guntur, Gurgaon,Greater Noida, Hyderabad, Hubli, Indore, Jaipur,

Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolakata, Kota, Kottayam,

Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi,

Patiala, Pune, Rajkot, Ranchi, Surat, Thane, Thrissur, Trichy, Trivandrum, Vadodara, Vashi,

Vijaywada.

Till March 31,2002 the Company has issued 100,000 polices translating into a Premium

Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million.

The Company recognizes that the driving force for gaining sustainable competitive

advantage in this business is superior customer experience and investment behind the

brand. The Company aims to achieve this by striving to provide world-class service

51
levels through constant innovation in products, distribution channels and technology based

delivery. The Company has already taken significant steps to achieve this goal.

Prudential Plc:-

Prudential Plc was founded in 1848. Since then it has grown to become one of the largest

providers of a wide range of savings products for the individual including life insurance,

pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries, and

caters to the financial needs of over 10 million customers.

It manages assets of over US$ 259 billion (Rupees 11, 39,600 crore approx.) as of

December 31, 1999. Prudential plc has had its presence in Asia for the past 75 years

catering to over 1 million customers across 11 Asian countries. Prudential is the largest

life insurance company in the United Kingdom. Asia has always been an important

region for Prudential and it has had a presence in Asia for over 75 years. In fact

Prudential's first overseas operation was in India, way back in 1923 to establish Life and

General Branch agencies.

In the US, Prudential owns Jackson National Life, one of the leading life insurance

companies. Prudential controls approximately 4% of all the listed shares on the second

largest stock exchange in the world, the London Stock Exchange, making it one of the

largest institutional investors in the UK. Prudential is focused on the Internet generation

and is one of the first financial service organizations to use the Internet on a fully

integrated basis.

52
In October 1998, Prudential launched a "branchless" bank based on the internet.

Unusually titled as " egg:|". The bank has in a short span of its existence become a

leading banking service provider in the UK. Infect in the first six months of its existence

it garnered over 5 billion (US$ 8 billion) in deposits from over 500,000 customers.

Development of superior products and services that offer value for money and security

while producing superior financial returns enables Prudential to maximize the value of its

shareholder's investment and to establish lasting relationships with customers and policy holders.

ICICI and Prudential came together in 1993 to provide mutual fund products in India and

today are the largest private sector mutual fund company in India. The two companies

bring together two of the strongest financial service brands in Asia known for their

professionalism, excellent quality of service and long term commitment.

VISION & VALUES:-

Vision of ICICI Prudential :

 To make ICICI Prudential the dominant Life and Pensions player built on trust by world-

class people and service.

 Understanding the needs of customers and offering them superior

products and service

 Leveraging technology to service customers quickly, efficiently and

53
conveniently

 Developing and implementing superior risk management and

investment strategies to offer sustainable and stable returns to

policyholders

 Providing an enabling environment to foster growth and learning for

employees

 And above all, building transparency in all its dealings.

The success of the company will be founded in its unflinching commitment to 5 core values --

Integrity, Customer First, Boundaryless, Ownership and Passion.

Values of ICICI Prudential :

Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer

First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have

become the keystones of company success.

PRODUCTS OF ICICI PRUDENTIAL:-

 Insurance Solutions for Individuals:-

ICICI Prudential Life Insurance offers a range of innovative, customercentric products that meet

the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to

create a customized solution for each policyholder.

Savings & Wealth Creation Solutions :

54
 Save'n'Protect is a traditional endowment savings plan that offers life protection along with

adequate returns.

 CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a

child's marriage, expenses for a child's higher education or purchase of an asset. It is

available for terms of 15 and 20 years.

 LifeTime Super & LifeTime Plus are unit-linked plans that offer customers the flexibility

and control to customize the policy to meet the changing needs at different life stages. Each

offer 6 fund options - Preserver, Protector, Balancer, Maximiser, Flexi Growth and Flexi

Balanced.

 LifeLink Super is a single premium unit linked insurance Plan which combines life

insurance cover with the opportunity to stay invested in the stock market.

 Premier Life Gold is a limited premium paying plan specially structured for long-term

wealth creation.

 InvestShield Life New is a unit linked plan that provides premium guarantee on the invested

premiums and ensures that the customer receives only the benefits of fund appreciation

without any of the risks of depreciation.

 InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested

premiums along with flexible liquidity options.

Protection Solutions:

 LifeGuard is a protection plan, which offers life cover at low cost. It is available in 3 options

- level term assurance, level term assurance with return of premium & single premium.

55
 HomeAssure is a mortgage reducing term assurance plan designed specifically to help

customers cover their home loans in a simple and cost-effective manner.

Child Plans :-

Education insurance under the SmartKid brand provides guaranteed educational benefits to a

child along withlife insurance cover for the parent who purchases the policy. The policy is

designed to provide money at important milestones in the child's life. SmartKid plans are also

available in unit-linked form - both single premium and regular premium.

Retirement Solutions :-

 ForeverLife is a traditional retirement product that offers guaranteed returns for the first 4

years and then declares bonuses annually.

 LifeTime Super Pension is a regular premium unit linked pension plan that helps one

accumulate over the long term and offers 5 annuity options (life annuity, life annuity with

return of purchase price, joint life last survivor annuity with return of purchase price, life

annuity guaranteed for 5,10 and 15 years & for life thereafter, joint life, last survivor annuity

without return of purchase price) at the time of retirement.

 LifeLink Super Pension is a single premium unit linked pension plan.

 Immediate Annuity is a single premium annuity product that guarantees income for life at

the time of retirement. It offers the benefit of 5 payout options.

56
Health Solutions :-

 Health Assure and Health Assure Plus: Health Assure is a regular premium plan which

provides long term cover against 6 critical illnesses by providing policyholder with financial

assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added

advantage of an equivalent life insurance cover.

 Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at

different stages in the treatment of various cancer conditions.

 Diabetes Care: Diabetes Care is a unique critical illness product specially developed for

individuals with Type 2 diabetes and prediabetes. It makes payments on diagnosis on any of

6 diabetes related critical illnesses, and also offers a coordinated care approach to managing

the condition. Diabetes Care Plus also offers life cover.

 Hospital Care: is a fixed benefit plan covering various stages of treatment – hospitalisation,

ICU, procedures & recuperating allowance. It covers a range of medical conditions (900

surgeries) and has a long term guaranteed coverage upto 20 years

 Group Insurance Solutions:

ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance

benefits to their employees.

 Group Gratuity Plan: ICICI Prudential's group gratuity plan helps employers fund their

statutory gratuity obligation in a scientific manner. The plan can also be customized to

structure schemes that can provide benefits beyond the statutory obligations.

 Group Superannuation Plan: ICICI Prudential offers both defined contribution (DC) and

defined benefit (DB) superannuation schemes to optimise returns for the members of the trust

57
 and rationalise the cost. Members have the option of choosing from various annuity options

or opting for a partial commutation of the annuity at the time of retirement.

 Group Immediate Annuities: In addition to the annuities offered to existing superannuation

customers, we offer immediate annuities to superannuation funds not managed by us.

 Group Term Plan: ICICI Prudential's flexible group term solution helps provide affordable

cover to members of a group. The cover could be uniform or based on designation/rank or a

multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the

member on his/her death.

58
 Bajaj Allianz Life Insurance Ltd.:-

THE COMPANY:-

BAJAJ Allianz Life Insurance Company is a joint venture between two leading

conglomerates, Bajaj Auto Limited, one of largest manufactures of motorcycles and scooters in

the world, and Allianz AG of Germany one of the largest insurance companies. Bajaj Allianz

Life Insurance Co. Ltd. Was incorporated on 12th March 2001. The company received the

Insurance Regulatory and Development Authority (IRDA) certificate of Registration

(R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India.

Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj Auto Limited and

Allianz AG of Germany holding 74% and 26% stake respectively. It is the largest private

player in the Insurance Industry in India with a market share of around 34% amongst the

private companies and second to LIC.

Bajaj Auto Limited:-

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest

manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous

with quality & customer focus. With over 15,000 employees, the company is a Rs. 4000 crore

auto giant, is the largest 2/3- wheeler manufacturer in India and the 4th largest in the world.

59
AAA rated by Crisil, Bajaj Auto has been in operation for over 55 years. It has joined hands with

Allianz to provide the Indian consumers with a distinct option in terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer –

 Financial strength and stability to support the Insurance Business.

 A strong brand-equity.

 A good market reputation as a world class organization.

 An extensive distribution network.

 Adequate experience of running a large organization.

 A 10 million strong base of retail customers using Bajaj products.

 Advanced Information Technology in extensive use.

 Experience in the financial services industry through Bajaj Auto Finance Ltd

Allianz AG:-

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000

employees. At the top of the international group is the holding company, Allianz AG, with its

head office in Munich.

Allianz AG is in the business of General (Property & Casualty) Insurance; Life & Health

Insurance and Asset Management and has been in operation for over 110 years. Allianz is one of

the largest global composite insurers with operations in over 70 countries. Further, the Group

provides Risk Management and Loss Prevention Services. Allianz has insured most of the

60
world's largest infrastructure projects (including Hongkong Airport and Channel Tunnel between

UK and France), further Allianz insures the majority of the fortune 500 companies, besides being

a large industrial insurer, Allianz has a substantial portfolio in the commercial and personal lines

sector, using a wide variety of innovative distribution channels.

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

 Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.

 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. -

AUM of Rs.51,96,959 cr.

 12th largest corporation in the world

 49.8 % of global business from Life Insurance

 Established in 1890, 110 yrs of Insurance expertise

VISION:-

 To be the first choice insurer for customers

 To be the preferred employer for staff in the insurance industry.

 To be the number one insurer for creating shareholder value.

61
MISSION:-

As a responsible, customer focused market leader, we will strive to understand the insurance

needs of the consumers and translate it into affordable products that deliver value for money.

PRODUCTS PROFILE:-

Unit Linked Plan :-

 New family gain

 New unit gain plus

 New unit gain premier

Traditional plan :-

 Invest gain

 Cash gain

 Child gain

Retirement Solutions:-

 Swarna visranthi

 New unit gain easy pension plus

62
Health Plan :-

 Care first

 Health care

Term Plan :-

 Risk care

 Term care

63
 Comparison of ULIP products of different insurance companies

ICICI Prudential Life Insurance

Fund options- growth fund, balanced fund, income fund, and preserver.

Allocation to equities- upto 100% in growth fund, upto 40% in balanced fund, nil in income

fund, 50% in preserver.

Minimum premium- 20,000.

Min/max age at entry- up to 65 years.

Fund management charges- 1.5% in growth fund, 1.0% in balanced fund, .75% in income

and preserver fund.

Fixed monthly expenses- 60rs.

Partial withdrawals- above one partial withdrawal 100 rs. charge per withdrawal.

Charges on top ups- 1%.

Switching charges- above 4 switches in a year 100 rs. Per switching

64
 HDFC Standard Life Insurance

Fund options- growth fund, balanced fund, defensive fund, secure fund, liquid fund.

allocation to equities- 100% in growth fund, 30-60% in balanced fund, 15- 30% in

defensive fund, 0% in secure and liquid fund.

Minimum premium- 10,000.

Min/max age at entry- 18- 65 years.

Fund management charges- .80%

Fixed monthly expenses- 20 rs.

Partial withdrawals allowed- above 6 partial withdrawals 250 rs. Per withdrawal.

Charges on top ups- 2.5% for initial 2 years, after 1%.

Switching charges- 2 free switching and then 100 rs. per switching.

65
 LIFE INSURANCE CORPORATION OF INDIA

Fund options- equity fund, bond fund, growth fund, balanced fund.

Allocation to equities- upto 100% in equity fund, upto 20% in bond fund, 40 - 100% in

growth fund, 40 – 60% in balanced fund.

Minimum premium- 10000.

Min/max age at entry- 10 – 65 years.

Fund management charges- 1.5% for equity fund, 1.35% for growth fund, 1.25% for

balanced fund, 1% for bond fund.

Fixed monthly expenses- 60 rs.

Partial withdrawals allowed- above 4 partial withdrawals 100 rs. Per withdrawals.

Charges on top ups- NIL.

Switching charges- above 4 switching 100 rs. per switching.

66
 BAJAJ ALLIANZ LIFE INSURANCE

Fund options- growth fund, balanced fund, conservative fund, secure fund.

Allocation to equities- 20 – 70% in growth fund, 10 – 40% in balanced fund, 0 – 15% in

conservative fund, 0% in secure fund.

Minimum premium- 15,000.

Min/max age at entry- 12 – 60 years.

Fund management charges- .90% - 1.25% of net assets in the fund.

Fixed monthly expenses- 50 rs.

Charges on top ups- 1%.

Switching charges- above 2 switching per year 500 rs. Per switching.

67
 Objective of the study –

 To compare the Unit Linked Insurance Plans (ULIPs) of LIC , Bajaj Allianz , ICICI

Prudential & HDFC Standard Life Insurance Limited.

 To find out awareness of ULIP s among customers.

 To compare the Market Share of LIC, Bajaj Allianz, ICICI Prudential & HDFC

Standard Life Insurance Limited.

 To compare individual investors according to their income, risk taking ability and their

perception towards financial companies.

 To find out the objective of investors behind investment in ULIP.

 To know the amount of return the investors expect on their investment.

68
 SCOPE OF THE STUDY
This study aims to make a comparative study of the Unit Linked Insurance Plans (ULIPs) of

some selected players in the Indian insurance market i.e. LIC , ICICI Prudential , Bajaj

Allianz & HDFC Standard life Insurance and study the awareness of ULIP among various

investors. The comparative analysis is based on the empirical data collected from the Ghazipur

city. The study also aims to comparative analysis of Market Share of these selected players in the

Indian insurance market and to know the risk taking ability of the investors.

69
 IMPORTANCE

 This study is helpful to identify the awareness of ULIP among various investors.

 This study is helpful to identify the market share of LIC, ICICI Prudential, HDFC

Standard Life & Bajaj Allianz Life Insurance Ltd.

 Through this study the objective of investors have been identified.

 Through this study we can identified the revenue earned by a single investor.

 This study is helpful to know which insurance company is preferred by most of the

investors

 Through this study we can identify the risk taking ability of the investors.

70
LIMITATIONS

A good report sells the results of the study, but it should not oversell. Every project has

limitations. The competent researcher does not attempt to gloss over these points but instead

calls them to the attention of the readers.

This helps readers from a more accurate interpretation of the result then otherwise do it has the

added advantage from the researcher’s stand point, of giving confidence in the result presented.

If reader fined limitation that the report does not point out, they are apt to wonder how carefully

the research was done. So in this research report limitation is several types:

 The research is done only in the Ghazipur area.

 Some data was collected on random basis.

 Time factor is also limitation of the research.

 Respondent was hesitant to give information due to misapprehension best known to them.

 The tools which I have chosen was interview and questionaire as we know in the

questionnaire the respondents do not give accurate answer and they do not show

the interest to give answers.

71
 RESEARCH

Research is a Purposeful investigation. It is a scientific and systematic search for knowledge and

information on a specific topic. Research is useful and Research objective can be achieved if it is

done in Propose Process.

METHODOLOGY

The word “Methodology” spells the meaning itself i.e. the method used by the researches in

obtaining information. The data (Information can be collected from the Primary sources and

Secondary sources.)

Research Process:

 Formulating the research problem

 Extensive literature survey

 Developing the hypothesis

 Preparing the research design

 Developing the sample design

 Collecting the data

 Execution of the project

 Analysis of data

 Hypothesis testing

 Generalizations of the report

 Presentation of the results

72
Objective of My Research:

 To compare the Unit Linked Insurance Plans (ULIPs) of LIC , Bajaj Allianz , ICICI

Prudential & HDFC Standard Life Insurance Limited.

 To find out awareness of ULIP s among customers.

 To compare the Market Share of LIC, Bajaj Allianz, ICICI Prudential & HDFC Standard

Life Insurance Limited.

 To compare individual investors according to their income, risk taking ability and their

perception towards financial companies.

 To find out the objective of investors behind investment in ULIP.

 To know the amount of return the investors can get back on their investment.

RESEARCH DESIGN :

A proper research design is essential for successful Research. It is the blue print for the research

study. Research design is a comprehensive master plan. It is guiding frame work for the research

study.

Design is a strategy of investigation so as to obtain answer to research questions. But research

design varies from research to research. It depends on the research objectives.

Two general types of Research design

 Exploratory Research

73
 Conducive Research

1- Exploratory Research

 The Literature Survey

 Survey of Knowledge Process

 Analysis of Case studies.

2- Conclusion Research

 Descriptive Research

 Experimental Research.

Developing the Research Design and the Research Procedure:

Development of research design and procedure is the next step in the marketing research process,

after problem definition and problem analysis. The choice of research design depends on the

depth and extent of date required the cost and benefits of the urgency of the work. And the time

avails able for completing it. Research design is actually the blue print of the research project.

Sampling:

In many marketing research projects, making a census study of the entire Universe will be

impossible on account of limitations of time and money. Hence, sampling becomes inevitable.

Sampling is used to collect primary data when the sources of data are far too many to be

exhaustively handled, Sampling in the integral part of the data collection process. In view of the

74
important of sampling in the data collection process we shall be discussing the subject at length.

Obviously a sample is only a portion of the universe or population. The success of sampling

depends on the extent to which the characteristics of the sample truly represent those of the

universe.

Advantages of Sampling :

Sampling saves cost and time. It enables collection of information that ‘OK’ for the given

purpose at lesser cost and time.

Terms commonly used in Sampling:

Before we go into further details relating to samples, it is essential for us to understand, certain

terms that are commonly used in relation to statistical sampling.

 Population or Universe:

In sampling and market research the tern ‘population’ or ‘Universe’ means the aggregate of all

elements that are relevant to the scope of the problem under study.

Parameter:

It is a value or a statement that explains a true characteristic of an entire population. It is the

value that would be obtained if the entire population were covered in the measurement.

 Statistic:

It is the value of a characteristic obtained from a sample of the population. It merely provides an

estimate of what would be the population is parameter with regard to the specified characteristic.

75
Normally the statistic will vary some what from the parameter, due to errors associated with

sampling.

 Precision:

It is the degree of closeness between statistics and parameter. Precision is the direct outcome of

two qualities of a sample

(1) Its representative.

(2) It’s stability.

(3) Representative denotes to what extent the sample is close to the population.

Developing the sample Design :

 The following are the basic components of a sample design:

 Choosing the sample size (How many to be surveyed)

 Choosing the sample procedure (How to ensure that these)

 Who are to be interrogated are included in the sample.

 Choosing the media (How to reach respondents in the sample-through mail interview,

personal interview, or telephone interview)

Sampling Method:

Different methods can be employed to select the sample units. These methods termed as

sampling methods, fall under two broad categories.

 Probability sampling Methods

 Non-Probability sampling Methods

76
I have taken random sampling method for our research methodology. In this method I have

randomly chose the 100 person for fill up the questionnaire as well as schedule for data

collection.

 Probability/Random sampling:

In Probability sampling methods, the sample units are selected at random. ‘At random’ should

not be understood as haphazard or arbitrary selection. Experience has shown that when samples

are chosen in an arbitrary manner, they are full of bias.

 Non-Probability/Non-Random Sampling:

In non-probability sampling methods sample units are selected in a non random manner. The

selection may be opportunistic or purposive; it may be the based on the convenience or the

judgments of the researcher; the choice is deliberate not random.

As a general observation, it can be stated that probability sampling methods are more scientific

and capable of yielding more representative samples that non-probability sampling methods.

 Simple Random Sampling:

A simple random sample is a sample where in any item of the population is as likely to be

selected in the sample as any other item. In other words, all items of the population have equal

chance of being selected in the sample. Lottery is one method of selection a simple random

sample in fact the method is commonly known by the name lottery sampling.

77
 Systematic Sampling

There is only a small difference between simple random sampling and systematic sampling.

Systematic sampling involves selecting every ‘not unit from the population after the beginning

unit is selected at random. The interval ‘n’ is fixed by dividing the population by sample size.

 Stratified Sampling

In this case, the population is divided into a few strata according to certain characteristic that are

common to members within the strata. From each starts, a specified number of units is picked up

by random means. These units together constitute a stratified sample, while resorting to stratified

sampling. It is essential that the criteria used to strictly the population is directly associated with

what the study is going to measure.

 Area Sampling

Area sampling is also a form of stratified sampling. In this case, the stratification is based on

Laotians. This method selected the sample units in several stages. At each stage, a series of

intermediary geographical blocks are selected at random. Finally, from within these blocks, the

sample units are selected at random.

Different Methods under Non-Probabilities Sampling:

 Convenience Sampling

 Quota Sampling

 Judgment Sampling

 Panel Sampling

78
 Convenience Sampling

In this method, selection of sample units is based on the convenience of the researcher. Quite

often, accessibility decides the selection of sample. Convenience sampling is normally used only

in protesting phase of studies.

 Quota Sampling

The researcher prescribes certain parameters and assigns sample quotas to field workers. Each

field worker selects the unit to be interviewed, based on the parameters indicated and fills the

quota assigned to him.

 Judgment Sampling

Judgment sampling is a deliberate choice of a sample by the researcher based on his judgment

about the population members.

DATA COLLECTION:

Data collection is an elaborate processing which the researcher makes a planned search for all

relevant data. Data is foundation of all marketing research. It is the raw material with which a

market research. It is the raw material with which a market researcher functions.

In this section four major decisions had to be taken.

1- What type of data is required?

2- Where the required data is found?

3- What technique of data collection will be used?

79
4- How will the data be analyzed?

Data collocation method:

There are two types of data collocation method-

1. Primary

2. Secondary

 Primary data:

Primary data are those which are collected afresh and for the first time, and thus happen to be

original in character.

Method of Primary data collection:

1. Observation method

2. Interview method

3. Questionnaire method

4. Schedule method

1. Observation method:

In observation method the information is sought by way of investigators own direct

observation without asking from the respondent. Advantage of this method is that subjective

bias is eliminated if, of observation done accurately. The information obtain under this

method is what is currently happening.

80
2. Interview method:

The interview method of collection data involves presentation of oral-verbal stimuli and replay

in terms of oral verbal responses, this method can be use through personal interviews, it possible

to through telephone interview. Advantage of this method is more information and that tool in

greater depth can be obtained. Interviewer by his own skill can over come the resistance, if any,

of the respondents; the interview method can be made to yield in almost perfect sample of the

population. The weakness of this method is that it is very expensive method.

3. Questionnaire method:

In the question method questionnaire is sent to the person concerned with request to answer the

question and the return the questionnaire. The questionnaire consist of a number of question

printed are type in definite order on a farm or set of forms. The questionnaire is mailed to

respondent who are expected to read and understand the question and right down the reply in

the space meant for the purpose in the questionnaire it self. Advantage of this method is low

cost even when the universe is large and widely spread geographically, and respondent have

adequate time to give well thought out answer. Disadvantage of this method is it can be use only

when respondent are educated and co-operating.

I have been taken the questionnaire method for our project work.

4. Scheduling method:

This method requires the selection of enumerators for filling up schedules or assisting

respondents to fill up schedules and as such enumerators should be very carefully selected. This

81
method of data collection is very useful in extensive enquiries and can lead to fairly reliable

result. It is however expensive and usually adopted in investigations conducted by governmental

agencies or by some big organizations.

My data collection method was scheduling and questionnaire method.

 Secondary Data:

Secondary data means data that are already available, they refer to the data which have already

been collected and analyzed by someone else. In this case he is certainly not conformed to the

problems that are usually associated with the collection of originals data. Secondary data may

either be published data or unpublished data.

My data collection in primary source was questionnaire and schedule. In secondary source of

data collection I have use internet, magazine, books, and Indian journal of marketing.

Researcher must be very careful in using secondary data. He must make a minute scrutiny

because it is just possible that the secondary data may be unsuitable or may be inadequate in the

context of the problem which the researcher wants to study.

Sources of Secondary data

The secondary source of data collection is the Books, Internet, News paper, etc. These are the

secondary source of data collocation.

 Field Work:

82
Field work is a challenging job for each marketing personal and researcher. So as in field work

the data is collected by the researcher in a particular frame of time. So as to complete the work in

prefixed time. The researcher adopted the method of “Direct interview through questionnaire”.

 Data Analysis:

Data analysis refers to the computation of certain majors a long with searching for patterns of

relationship that exist among data groups. Thus, “In the process of analysis, relationships are

difference supporting or conflicting with original or new can be said to indicate any

conclusions”.

In the data analysis I have taken percentage method in the project work

83
 Age distribution of the respondent.

Age Group No. of Respondent Percentage

21-30 34 34%

30-45 36 36%

45-60 22 22%

above 60 8 8%

Total 100 100%

40

35

30

25

20 NO. OF RESPONDENTS
Column1
15

10

0
21-30 30-45 45-60 above 60

Interptretation:-

Almost 70% of respondent was from age group 21yrs to 45yrs this is considered to be most

active age group. During this age, life of an individual changes very drastically. The career is in

84
growing stage in starting few years and there are hardly any responsibilities, at this time there is

a lot of funds available for disposal. It is this age where maximum risk can be taken and a greater

period can be given to grow the amount invested. As a person enter into their 30’s they have

increased family responsibility and gradually the risk taking ability reduces with the age. With a

greater portion of such population included in data collection a greater degree of understanding

can be gained how financial planning is done by pepole.

• Income distribution of respondent.

85
Income Level Respondent Percentage

upto 2,00,000 36 36%

2,00,000 - 3,00,000 26 26%

3,00,000 - 4,00,000 18 18%

4,00,000 - 5,00,000 12 12%

above 6,00,000 8 8%

Total 100 100%

40

35

30

25

20 Series 1
Column1
15

10

0
up to 200000 200000-300000 300000-400000 400000-500000 above 500000

Ques-1. Do you make Investments?

86
 OPTION NO. OF PERCENTAGE
RESPONDENTS (%)

YES 95 95

NO 5 5

TOTAL 100 100

100

90

80

70

60

50 Series 1
Column1
40

30

20

10

0
YES NO

Interpretation:-

87
From the above table we can analyse that 95% of respondents responds in the favor of making

investments. While 5 % of the respondents do not invest their money anywhere.

So, we can say that most of the people invest their money in various types of investments such as

life insurance , mutual fund , shares , bank deposits , govt. bonds etc.

Ques-2. Where do you make investments?

88
 CATEGORY NO. OF PERCENTAGE
RESPONDENTS (%)

LIFE INSURANCE 40 40

MUTUAL FUND 16 16

SHARES 20 20

BANK DEPOSITS 18 18

OTHER 6 6

TOTAL 100 100

45

40

35

30

25
NO. OF RESPONDENTS
20 Series 3

15

10

0
Life Insurance Mutual Fund Shares Bank Deposits Other

Interpretation:-

89
A fair idea of asset allocation of individuals in various asset class can be observed through this. .

It can be observed by the above table that the all respondent had a life cover policy. The next

major portion is shares . It means that individuals has the ability to take risk. Major investments

are also made in Bank Fixed Deposits and mutual fund. Some of the respondents have also

invested in other type of investments as Provident Fund and Post office deposits.

Ques-3. Do you have any insurance policy?

90
OPTION NO. OF PERCENTAGE
RESPONDENTS (%)

YES 89 89

NO 11 11

TOTAL 100 100

100

90

80

70

60

50 NO. OF RESPONDENTS
Column1
40

30

20

10

0
YES NO

Interpretation:-

91
It was observed from the graph that 89% of respondents have taken life insurance policy. While

the 11 % of respondents have invested in another type of investments. It means that most of the

respondents don’t want to take any type of risk. Some of the respondents have taken the

insurance policy only for their income tax exemption.

Ques-4. Which company policy do you have?

92
COMPANY NAME NO. OF PERCENTAGE
RESPONDENTS (%)

LIC 67 67

ICICI PRU 14 10

HDFC STANDARD 8 8

BAJAJ ALLIANZ 6 6

OTHER 5 9

TOTAL 100 100

80

70

60

50

40 NO. OF RESPONDENTS
Column1
30

20

10

0
LIC ICICI PRU HDFC STANDARD BAJAJ ALLIANZ OTHER

Interpretation:-

93
From the above table & graph it is observed that 67% of the respondents have taken policy of

LIC , 14% of respondents have taken policy of ICICI prudential , 8% of the respondents have

chosen HDFC Standard Life , 6 % of the respondents have chosen Bajaj Allianz and 5% of

respondents have chosen another company as SBI Life Isurance , Max Newyork Life insurance

etc.

So we can say that LIC has covered maximum share of Insurance market and after LIC , IN 2 nd

position ICICI Prudential Life Insurance is placed.

Ques-5. According to you which company provide better services?

94
COMPANY NAME NO. OF PERCENTAGE
RESPONDENTS (%)

LIC 15 15

ICICI PRU 43 43

HDFC STANDARD 17 17

BAJAJ ALLIANZ 15 15

OTHER 10 10

TOTAL 100 100

50

45

40

35

30

25 NO. OF RESPONDENTS
Column1
20

15

10

0
LIC ICICI PRU HDFC STANDARD BAJAJ ALLIANZ OTHER

Interpretation:-

95
When We talk about the services of the company to the customers , we observed that 43% of the

respondents favor ICICI Prudential & only 15% of the respondents have favored LIC.

It means that public sector company is not at 1 st position in giving better services to the

customers . So for giving better services to the customers ICICI is at 1st position.

Ques-6. The policy you have taken is ULIP or other?

96
OPTION NO. OF PERCENTAGE
RESPONDENTS (%)

ULIP 38 38

OTHER 62 62

TOTAL 100 100

70

60

50

40
NO. OF RESPONDENTS
Column1
30

20

10

0
ULIP OTHER

Interpretation:-

97
From the above table & graph it is analyzed that only 38% of the respondents have taken Unit

Linked Insurance Plan . While 62 % of the respondents have taken another type of insurance

plan as term insurance , whole life insurance , endowment insurance etc.

So from the above we can say that most of the respondents have taken ULIPs and they don’t

want to take any type of risk. From their point of view ULIP is a risky investment because the

return of ULIP depends on the NAV of the company.

Ques-7. Are you aware about all features of ULIPs?

98
OPTION NO. OF PERCENTAGE
RESPONDENTS (%)

YES 36 36

NO 64 64

TOTAL 100 100

70

60

50

40
NO. OF RESPONDENTS
Column1
30

20

10

0
YES NO

Interpretation:-

99
From the above we can observed that only 36 % of the respondents know all the features of

ULIPs . While there are the major portion of people i.e. 64% who are not aware about the

features of ULIPs.

Thus we can say that the reason behind the investment in ULIPs is only its main advantages as

Giving High Return , Tax Planning etc.

Ques- 8. What is the reason to invest in ULIPs?

100
REASON BEHIND NO. OF PERCENTAGE
INVESTMENT RESPONDENTS (%)

LIFE PROTECTION 20 20

HIGH RETURN 25 25

TAX PLANNING 50 50

OTHER 5 5

TOTAL 100 100

60

50

40

30 NO. OF RESPONDENTS
Column1

20

10

0
Life Insurance High Return Tax Planning Other

Interpretation:-

101
When we talk about the reason to invest in ULIPs to the respondents, 50% of the respondents tell

the reason of Tax Planning , 25 % of respondents tell the reason of High Return & 25 % of

respondents favor Life Protection.

Thus we can say that the reasons behind taking of Unit Linked Insurance Plan are Tax Planning

& Getting High Return.

Ques-9. How much would you willing to spend per annum in ULIP?

102
OPTION NO. OF PERCENTAGE
RESPONDENTS (%)

LESS THAN 6000 4 4

6001 – 10000 15 15

10001 – 25000 52 52

25001 – 50000 23 23

MORE THAN 50000 6 6

TOTAL 100 100

60

50

40

30

20 NO. OF RESPONDENTS
Column1

10

0
00 00
0
00
0
00
0
00
0
60 0 25 50 50
N -1 1- 1-
HA 01 00 00 HA
N
SS
T 60 10 25 T
LE RE
OT
M

Interpretation:-

103
From the graph above, we can clearly see that 52% of the respondents are willing to spend

between Rs. 10001 – Rs. 25000 for ULIP. 4% are willing to spend between Rs. 6001 – Rs.

10000 per annum. Only 23% are willing to spend more than Rs. 25000 per annum as life

insurance premium and only 6 % respondents are willing to spend more than Rs.50000 in ULIP .

Thus we can say that the maximum premium payable by most consumers is Rs. 25000 p.a. So ,

there is a large amount of competition faced by the insurance companies. Hence to capture a

larger part of the market the insurance companies must introduce more reasonable plans with

lesser premium payable per annum.

Ques-10. Which type of ULIP product do you have?

104
 NO. OF PERCENTAGE
RESPONDENTS (%)

PROTECTION PLAN 12 12

CHILD PLAN 18 18

PENSION PLAN 28 28

SAVING PLAN 42 42

TOTAL 100 100

45

40

35

30

25
NO. OF RESPONDENTS
20 Column1

15

10

0
Protection Plan Child Plan Pension Plan Saving Plan

Interpretation:-

105
From the chart given above we can clearly see that 42 % of the respondents hold saving plan , 28

% of the respondents have taken pension plan , 18 % of the respondents have taken child plan &

12 % of the respondents hold protection plan.

Thus we can say that most of the respondents are greedy about both investment & saving that’s

why most of the respondents have taken saving plan.

Ques-11. According to you what is the amount of risk involved in ULIPs?

106
CATEGORY NO. OF PERCENTAGE
RESPONDENTS (%)

HIGH RISK 44 44

MODERATE RISK 36 36

LOW RISK 6 6

THEY ARE SAFE 4 4

NO IDEA 10 10

TOTAL 100 100

50

45

40

35

30

25 NO. OF RESPONDENTS
Column1
20

15

10

0
High Risk Moderate Risk Low Risk They are safe No Idea

Interpretation:-

107
The above graph show the risk taking ability of the individuals. From the above graph we can

observe that 44 % of the respondents say that there is high risk involved in ULIPs, 36 % of

respondents respond moderate risk , 6% of respondents respond low risk and 4 % of the

respondents say that there is low risk.

Thus from the above we can say that ULIP is a risky investment because its return depends on

NAV of the company.

Ques-12. How much return do you expect from ULIPs?

108
RATE OF RETURN NO. OF PERCENTAGE
RESPONDENTS (%)

15 – 25 % 25 25

25 – 35 % 40 40

35 – 45 % 25 25

MORE THAN 45 % 10 10

TOTAL 100 100

45

40

35

30

25
NO. OF RESPONDENTS
20 Column1

15

10

0
15%-25% 25%-35% 35%-45% MORE THAN 45%

Interpretation:-

109
From the graph & table it can be seen that 40 % of the respondents want 25 – 35 % return on

their investment, 25 % of the respondents want 15-25% return on investment, 25 % respondents

want 35-45% return on their investment and only 10 % respondents want more than 45 % return

on their investments.

FINDINGS

110
While going to the findings conducting the research I found some facts which are as follow:

 I had found that almost 70% of respondent was from age group 21yrs to 45yrs this is

considered to be most active age group. 22% of respondent was from age group 45yrs to 60

yrs & 8% of respondent was from above to 60yrs age group.

 The major portion of respondents are in income slab of up to Rs.2, 00,000 p.a.; this indicates

that the persons may be in the beginning stage of career. With increasing income slab the no

of respondent are reduced.

 When I talk to the customers about their investments, it was found that most of the people

invest their money in various types of investments such as life insurance , mutual fund ,

shares , bank deposits , govt. bonds etc.

 It was observed that the all respondent had a life cover policy. This shows that there is a great

future of Life Insurance. The next major portion is equity market. It means that many people

has the ability to take risk. Major investments are also made in Bank Fixed Deposits and

mutual fund.

111
 Most of the people have taken insurance policy in their name. It means that people are more

interested in utilizing their saving in buying insurance policy than in other sources.

 Life Insurance Corporation (LIC) of India is still the undisputed market leader as 63% of the

respondents which was 74% five years earlier we see that private insurance companies are

penetrating in the customer base of LIC. Overall we can see that private insurance

companies are giving a tough competition to the LIC and will certainly create a good

business for themselves in the coming days.

 It was observed that private insurance companies as ICICI prudential, HDFC Standard Life,

Bajaj Allianz etc. give much better services to the customers. Thus LIC has to improve itself

about giving services to the customers mainly at the time of Claim Settlement.

 Most of the respondents are familiar with The Unit Linked Insurance Plan. But this is only

38% of the respondents. It means that many people do not want to take any type of risk. The

main reason behind this is that the return of ULIP is depend on the NAV of the company.

 Most of the respondents are not aware about all the features of ULIP mainly its various

charges and its fund options. Thus there is a great need to make aware about the ULIP to the

various respondents.

 Most of the people have taken ULIP only for the tax exemption. They are not much greedy

about to get high return & Life protection. Thus ULIP is preferred by the most of the

customers only for the tax planning.

112
 The maximum premium payable by most of the consumers is less than Rs. 25000 p.a. So,

there is a large amount of competition faced by these insurance companies. Hence to capture

a larger part of the market these insurance companies must introduce more reasonable plans

with lesser premium payable per annum.

 Most of the respondents have hold saving plan & some of the respondents hold pension plan.

Thus we can say that people are more concerned about saving their income through tax

exemption than other things.

 There is a high risk or sometimes moderate risk involved in ULIP as said by the various

respondents. Thus we can say that ULIP is a risky investment .

 It is observed that the large amount of investors want 25 – 35% of return on their investment.

Thus most consumers are willing to adapt to some amount of risk but still want some

guaranteed returns. Therefore the bulk of investment should be made in the balanced fund

with 50% debt and 50% equity.

113
 RECOMMENDATION

 Today LIC of India is still the market leader with 64% of market share which was about 74%

in earlier five years. Thus to capture large market in an insurance industry as LIC , the

private companies should improve more their schemes.

 On the basis of giving after sales services to the customers, ICICI Prudential is at 1 st rank.

Only 15% respondents respond in the favour of LIC. Thus LIC should improve more its

after sales services mainly at the time time of claim settlement.

 There should be used differenciated strategies in sales, distribution & marketing for ULIP by

the selected insurance companies because the customers of ULIP are very few in the market

of Ghazipur.

 The insurance agents must meet more people to make aware about ULIP or there is a need to

develop ULIP awareness programme.

 Customers should be informed about any fluctuating return from the market on ULIP.

 The insurance agents must be educated about the plans because they do not give full

information about the insurance plans.

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 CONCLUSION

From this research titled “COMPARATIVE ANALYSIS OF ULIPs OFFERED BY

INSURANCE COMPANIES”, I have learned a lot about real practical work being done

in the market. I have also watched & learned the practical applicability of the various

things that we have studied theoretically.

The household savings in India can be broadly categorized into the following types: 

 Savings in physical properties

 Savings in financial instruments or financial household savings

Financial household savings in India usually include the following:

 Savings deposits with banks

 Life insurance policies

 Provident funds

 Pension funds

 Liquid cash of households

 Deposits with non-banking financial institutions

 Unit Trust of India Investment Schemes

The major portion of financial saving goes into life insurance.

Life insurance is a contract under which the insurer (Insurance Company ) in Consideration

of a premium paid undertakes to pay a fixed sum of money on The death of the

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insured or on the expiry of a specified period of time whichever is earlier. Today there

are near about 22 life insurance companies in India in which the largest share is of LIC(with 64%

of the market share) and the largest player in the private sector is ICICI Prudential.

These life insurance companies provide a wide range of plans to the customers in which the one

is ULIP and on which the entire project is focused. Normally ULIP is a type of plan which

provides life protection to the insured and also provides the investment opportunity to him.

When I compare the ULIPs of the selected companies, it is found that LIC charges are very low

as compared to the other life insurance companies.

Thus here I conclude my project as follows:-

 LIC has the largest market share (about 64%) in the market of insurance.

 LIC charges on ULIPs are very low as compared to other insurance companies.

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