Customer Perception On Unit Linked Insurance Policies in India

IMT Nagpur
PGDM 2009-2011
PROJECT REPORT
On
Customer Perception on Unit

Linked Insurance Policies in India
(BUSINESS RESEARCH METHODS)
Submitted to
PROF. P. BHARADWAJ
Submitted by
Section C
Group 2
Nitin Sharma 2009147

Mukul Mathur 2009166
Padam Nabham Suresham Tiwari 2009173
Parth Agnihotri 2009174
Prashant Sharma 2009187
Submitted on
25th March 2010
Business Research Methods Project
DECLARATION
We, Mukul Mathur, Nitin Sharma, Padam Nabham Suresham Tiwari, Parth Agnihotri and
Prashant Sharma, hereby declare that this report on “Customer Perception on Unit Linked
Insurance Policies in India” has been prepared under the guidance of Dr. Preshth Bharadwaj and
submitted as a project for the Business Research Methodology course at Institute of Management
Technology, Nagpur.
The report is authorized by and submitted to Dr. Preshth Bharadwaj, and it covers a detailed
analysis of customer perception on unit linked insurance policies in India.
For preparing this report, various springs of knowledge been approached (secondary sources
such as newspapers, journals and magazines, internet, etc.) and primary data collection methods
like online survey, and secondary data collection like telephonic interviews and online focus
group study has been applied and conducted amongst the selected sample group.
Mukul Mathur
Nitin Sharma
Padam Nabham Suresham Tiwari
Parth Agnihotri
Prashant Sharma
Customer Perception on Unit Linked Insurance Policies in India

ii
ACKNOWLEDGEMENT
At the very inception, we are indebted to Dr. Preshth Bharadwaj for bequeathing the opportunity
to work on project on “Customer Perception on Unit Linked Insurance Policies in India”. This
has been a great learning experience and an opportunity to broaden our knowledge base and skill
sets.
We also express our gratitude to him for having stood by us as a pathfinder and for showing
confidence in us and of course encouraging us during the times, we felt defeated.
We are grateful to the untiring efforts put in by the Librarian of IMT for rendering us their
heartfelt services and cooperation and providing us with appropriate magazines / journals useful
for the topic, and the staff in the IT department who made the internet surfing possible.
Lastly, we would like to mention the cooperation and help received from our colleagues in
offering us the best of ideas and encouragement.
Place: IMT, Nagpur

Date: 25th March 2010

iii
TABLE OF CONTENTS
Acknowledgement.......................................................................................................................................ii
List of Figures...............................................................................................................................................v
List of Tables................................................................................................................................................v
Introduction.................................................................................................................................................1
Research objectives.....................................................................................................................................1
History.........................................................................................................................................................2
Current status in india.................................................................................................................................2
What is “ULIP”?...........................................................................................................................................2
Working of ULIP...........................................................................................................................................2
Charges Under ULIP.....................................................................................................................................3
Policy administration charges..................................................................................................................3
Premium allocation charges....................................................................................................................3
Mortality charges....................................................................................................................................3
Fund management charges.....................................................................................................................3
Rider CHARGES........................................................................................................................................4
Switching charges....................................................................................................................................4
Top Up charges........................................................................................................................................4
Surrender charges...................................................................................................................................4
Types of ULIP...............................................................................................................................................4
Benefits of ULIP...........................................................................................................................................5
Relevance of the study................................................................................................................................6
Possible assumptions/ Hypotheses that can be tested through the proposed research.............................6
Targeted Group For Research Study............................................................................................................7
Research Methodology................................................................................................................................7
Secondary Data collection.....................................................................................................................10
Primary data collection..........................................................................................................................10
Data analysis..............................................................................................................................................11
Conclusion and summary..........................................................................................................................11
Recommendations.....................................................................................................................................11
Limitation of Study....................................................................................................................................11

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Scope for future.........................................................................................................................................11

APPENDIX 1...............................................................................................................................................12
APPENDIX 2...............................................................................................................................................13
Riders.....................................................................................................................................................13
Switching Funds.....................................................................................................................................13
Top Up...................................................................................................................................................13
Sales benefit Illustration........................................................................................................................13
IRDA.......................................................................................................................................................13
SPSS.......................................................................................................................................................13
IDI..........................................................................................................................................................14
FGD........................................................................................................................................................14
GDP........................................................................................................................................................14
APPENDIX 3...............................................................................................................................................15
Questionnaire........................................................................................................................................15
Coding of Questionnaire........................................................................................................................20
Bibliography...............................................................................................................................................21

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LIST OF FIGURES
Figure 1: Figure Showing Advantages of ULIP..............................................................................5
LIST OF TABLES
No table of figures entries found.

vi
Business Research Methods Project Report
INTRODUCTION
In last two decades, after liberalization in India, GDP (Appendix1) of India has seen noteworthy
surge indicating escalation in income level of common people. This amplified level has enthused
people to quest for diverse sources of investment options. ULIP has originated as a virtuous
option for venture beside with other choices like bonds, debentures, mutual funds etc. ULIP has
its benefits and downsides as any other possibility of investment bearing in mind which
individuals forms perception and make choice regarding investment.
This project targets at ascertaining perception of ULIPs consumers and potential market in India.
This project will try to walk around the awareness level amongst corporate folks and attempts to
examine the conjectural factors for investing decision selection midst masses.
RESEARCH OBJECTIVES
In direction to catch an answer to the study problem following research objective has been
recognized which will assist us in congregation of info which in turn will help us getting better
insight of the actual situation prevailing in mind of Indian clienteles:
 Level of satisfaction with currently available ULIPs.

 Criteria for selecting a ULIP.
 Demographic characteristics of ULIP buyers.
 Analysis of customer sentiments on various services provided by insurance companies
for ULIP.
 Reasons for satisfaction or dissatisfaction.
 Level of awareness about ULIP.
 Determining the types of services the customers need.
 Level of customer knowledge about ULIP charges.
 Attitude towards charging policies.
 Likelihood of purchase of plan when and why.

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HISTORY
Unit Linked Insurance Policies [ULIP] was first offered in the United States in 1976, [after being
developed and sold successfully in The Netherlands, England, and Canada] in the name of
Variable Life Insurance. Fundamentally it was a type of whole life insurance whose values may
vary directly with the performance of a set of earmarked investments.
CURRENT STATUS IN INDIA

Right now India is inundated with 112 ULIP Insurance policies provided by 22 players (shown
in Appendix1).
IRDA (Appendix 2) oversees the rules and regulations in India.
WHAT IS “ULIP”?
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 your 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 an individual. The main benefit of ULIP is transparency.
WORKING OF ULIP
When an individual decides the amount of premium to be paid and the amount of life cover he
wants 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 product. The rest
of the premium is invested in the fund or mixture of funds depending upon the company
portfolio and fund plan chosen by the individual.
The fund of an individual is invested – either in equity or debt or a combination of the two – in
various ratios. The fund value will reflect the performance of the underlying asset classes. At the

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time of maturity of the plan, the individual is entitled to receive the fund value as at the time of
maturity.
CHARGES UNDER ULIP

There are numerous charges which are imposed by the issuing company. Some charges are
periodic (e.g. mortality and administrative charges), some are user dependent (e.g. fund
switching charges) and some are one time charges (e.g. surrender charges).
Following is the extensive classification of charges levied by the insurance corporations in India:
POLICY ADMINISTRATION CHARGES These charges are deducted on a monthly

basis to recover the expenses incurred by the insurer on servicing and maintaining the life
insurance policy like paperwork , work force etc.
PREMIUM ALLOCATION CHARGES These charges are deducted upfront from the
premium paid by the client. These charges account for the initial expenses incurred by the
company in issuing the policy- eg. Cost of underwriting, medicals & expenses related to
distributor fees. After these charges are deducted the money gets invested in the chosen fund.
MORTALITY CHARGES Mortality expenses are charged by life insurance companies for
providing a life cover to the individual. The expenses vary with the age and either the sum
assured or the sum-at-risk which is the difference between sum assured and fund value of the
insurance policy of an individual. Mortality charges are deducted on a monthly basis.
FUND MANAGEMENT CHARGES A portion of the ULIP premium, depending on the

fund chosen, is invested either in equities, bonds, g-secs or money market instruments.
Sometimes it is a combination of these. Managing these investments incurs a fund management
charge (FMC). The FMC varies from fund to fund even within the same insurance company
depending on the underlying assets in the fund. Usually a fund with higher equity component
will have a higher FMC.

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RIDER CHARGES Insurance companies levy rider charges in case you opt for riders
(Appendix 2).
SWITCHING CHARGES Insurance companies charge fee for switching funds.
TOP UP CHARGES Insurance companies deduct a certain percentage from the top-up
amount as charges. These charges are usually lower than the regular charges that are deducted
from the annual premium.
SURRENDER CHARGES Surrender charge may be deducted for premature partial or full
encashment of units wherever applicable, as mentioned in the policy conditions. These charges
are levied as a percentage of the fund value or as a percentage of the premium.
One can gain knowledge about these charges through Sales benefit illustration (Appendix 2),
brochure and advisor.
TYPES OF ULIP
Depending upon the purport of investment of the populaces, ULIP can be broadly assorted as
follows:
 Retirement
 Wealth
 Children Education
 Health
Wealth Creation ULIPs can be further primarily classified as:

 Single premium - Regular premium plan
 Guarantee plans – Non guarantee plans

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 Life Stage based – Non life Stage based
Child's education ULIP ensures that one’s child’s education continues unhampered even if
something unfortunate happens to the individual.
Under Health ULIPs and Retirement pension ULIP tax benefits are also provided on premium
under section 80D and 80CCC respectively in India.
On the basis of the nature of return the ULIPs can be classified as:
 Type I ULIP (On death you get: Higher of sum assured OR fund value)
 Type II ULIP (On death you get : Sum assured PLUS fund value)
BENEFITS OF ULIP
ULIPs come with embedded characteristic of transparency, liquidity, flexibility, tax benefits and
goal based savings.
Provides flexibility in investments

ULIPs offer a complete selection of high, medium and low risk investment options under the
same policy.
Transparency
The charge structure, value of investment and expected IRR based on 6% and 10% rate of
returns, for the complete tenure of the policy are shared with you before you buy a product.
Similarly, the annual account statement, quarterly investment portfolio and daily NAV reporting,
ensures that you are aware of the status of your investment portfolio at all times. Most companies
publish latest NAVs on their respective websites.
Liquidity
To cope with unforeseen circumstances, ULIPs offer the benefit of partial withdrawal; wherein
after 3 years you can withdraw funds from our Unit Linked account, retaining only the stipulated
minimum amount.

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Disciplined and regular savings ULIPs help you inculcate a regular saving habit. Also, the
average unit costs tend to be lower than one time investment.
Multiple benefits bundled in one product ULIP is an outstanding solution for risk cover, long
term investments with the benefit of various investment opportunities, coupled with tax benefits.
Disciplined risk mitigation approach ULIPS are ideal for those investors who wish to avail the
benefit of market linked growth without actually participating in the stock market, with the
added benefit of risk-cover.
Figure 1: Figure Showing Advantages of ULIP
Currently in India premium payments can be remunerated through following channels:

 Insurance offices - main office or branch offices
 The Internet - through banks that your insurance company has tie-ups with

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 The bank - can provide a customer bank with standing instructions (auto-pay) to debit
your account as and when the insurance premium becomes payable, or use phone-
banking facilities
 Authorized service providers - such as BillJunction.com or BillDesk.com
RELEVANCE OF THE STUDY

This study offers an acumen of what is the rational of Indian customers when they venture in
ULIPs, reasons behind their selection of investment (tax saving, retirement plans etc.), to what
extend they want to take risk, what all things they contemplate , what the level of information
they have , their frequency of buying and their demographics.
This study can contribute in finding what services and amenities are relevant in eyes of Indian
consumer and what is not. This study can substantiate as a countless advantage in development
of further ULIP by providing valuable input regarding the Indian consumer thinking.
POSSIBLE ASSUMPTIONS/ HYPOTHESES THAT CAN

BE TESTED THROUGH THE PROPOSED RESEARCH
From the study we can evaluate demographics of people going for ULIP and their perception on
the subject of the ULIP. More over following hypothesis can be drawn and verified.
 People who are pleased with the current policies are likely to purchase the ULIP in near
future.
 People generally acquire ULIP for Tax benefits.
 People who has info about the charges and payment modes and other services and rules and
regulations are more satisfied with the current plans.
TARGETED GROUP FOR RESEARCH STUDY

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Our target group for the study is people with age group of 20-40, presently working in Cooperate
sector in India. The targeted group has been chosen considering 3 reasons in mind. First and
foremost these are the ones who majorly think of investment for long term benefit as it is
inception of their professional career. Secondly, they are ready to take more risk as compared to
other group. Lastly, they are believed to have not only sufficient information about the numerous
investment options plus mainly approached by the various investment agencies agents.
Within this targeted group, we are primarily focused upon person living in metro and majors
cities of India where private and public sector are equally dominant.
RESEARCH METHODOLOGY
Majority of the above mentioned identified objectives can be analyzed by using descriptive
research methods that through by building up questionnaires and surveys. We have gathered data
implementing Single cross-sectional design.
Following is the outline which we planned at early stages for accumulation of data for research
analysis at further stages of project.
Research objective – To determine Demographic characteristics of ULIP buyers.

Research method- For capturing demographic characteristic we can put questions to capture
personal information like name, age, occupation, sex, income level, etc. at the end of the
questionnaire.
Measurement/ scale- For capturing age and income level broader categories can be created
(nominal scale), for sex two options can be given (nominal scale), Name can be optional.
Research objective- Analysis of customer sentiments on various services provided by

insurance companies for ULIP.
Research method- Various common services provided by insurance companies can be identified
by doing exhaustive secondary data study of various ULIP plans offered in India. Once the

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services are identified the question can posed to customers to rate the quality of various services
in the questionnaire designed for survey.
Measurement/ scale- Nominal scale. Non comparative. Itemized scale.
Research objective- Reasons for satisfaction or dissatisfaction.

Research method- The main reasons for satisfaction and dissatisfaction can be identified by IDIs
with customers and insurance agents. Once the major issues are identified then it can be further
tested by adding another question to the questionnaire.
Measurement/ Scaling- Preference ranking (interval scale)
Research objective - Criteria for selecting a ULIP.

Research method- Various options for selecting can be gathered through a mixture of IDI and
secondary sources which can be further evaluated by adding another question to questionnaire.
Measurement/ Scaling- Continuous ratings scale can be implemented to rate each identified
parameter in order to suffice our understanding regarding what goes inside the customer mind
when he goes for selecting the ULIP.
Research objective- Level of satisfaction with currently available ULIPs.

Research method- This information can only extracted from the satisfied current/ old ULIP
customers. This can be easily captured by augmenting another question in questionnaire.
Measurement/ Scaling- Continuous ratings scale can be implemented to identify the satisfaction
level of customers. Likert scale can also be used for knowing the level of satisfaction.
Research objective- Level of awareness about ULIP.

Research method- This can be easily captured by augmenting another question in questionnaire.
Measurement/ Scaling- Continuous ratings scale can be implemented to identify the awareness
level of customers. Likert scale can also be used for knowing the level of awareness.
Research objective - Determining types of service customer needed

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Research method - What services a customer looking for can be figured out again by conducting
IDIs and later on putting the recognized option in the questionnaire for further validating those
points.
Measurement/ Scaling- Preference ranking can be used to find types of services they need.
Continuous rating scale can be used.
Research objective - Level of customer knowledge about ULIP charges
Research method – Information regarding the various charges augment in ULIP can be elicit
from the secondary sources and to judge the knowledge of customer question can be added in the
questionnaire.
Measurement/ Scaling- Preference ranking scale can be proved as a good tool for judging
whether they knew about the charges or not and further they can be asked to continuously rank
the various charges they know about. Continuous rating scale can be used.
Research objective- Attitude towards charging policies.
Research method – what is the attitude towards charging policies of ULIP can be known by
asking question regarding this, and this can be done by IDI of customers as well as policy sellers.
After this we can also know about the attitude of policy sellers by adding questions in
questionnaire to be filled by customers to understand it in better way.
Measurement/ Scaling- Continuous ratings scale can be implemented to identify the satisfaction
level of customers by the attitudes of policy sellers.
Research objective- Likelihood of purchase of plan when and why.
Research method – For generating the options for finding answer to why we can again go for
IDIs. We can introduce question regarding timing of new plans purchasing plus one question for
getting views of customers on IDI generated and one question for probable investment amount.

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Measurement/ Scaling- for fetching information on tenure, likely amount and validating reasons
Preference ranking (interval scale) as well as continuous rating scale can be implemented.
Ordinal scale will be used.
SECONDARY DATA COLLECTION
Initially, for generating relevant questions, for the IDI (appendix 2) and FGD (appendix 2) and
gaining insight about the ULIP we have done a small study on ULIP on internet. Further for
generating options for the questionnaire we utilized Google talk for online focus group
discussion and telephonic services for IDI.
PRIMARY DATA COLLECTION
On the basis of valuable customers input, gathered during the secondary data collection period,
we generated a questionnaire (appendix 3) through brainstorming process for online survey.
Further, we have hosted the online survey on Google survey with the purport of capturing
primary data for research study and moreover authenticating, the analysis and data captured
during the secondary data collection period.
We have implemented snowballing sampling method as the desired information is little bit
confidential and sensitive in nature and other sampling method won’t serve the purpose for the
study. We received around 20-30 responses for the data analysis determination.
DATA ANALYSIS
Collected raw data has been analyzed through SPSS (appendix 2)
CONCLUSION AND SUMMARY
RECOMMENDATIONS

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LIMITATION OF STUDY
This study has been piloted on a much focused group, so can’t be generalized for the entire
country contemporary situation. This study envisages behavior for the considered targeted group
individuals but the outcomes of study can vary when more groups are encompassed in the study.
Moreover, the sample size has been miniscule to predict anything.
SCOPE FOR FUTURE

This study attempts to provide prognosis of youth Indian minds residing in major cities of
country concerning investment in ULIPs. This study outcome, at advance level, can be verified
by including more people from currently focused study by taking small cities into account. More
over result of this study can be tested by encompassing more categories of individuals so these
outcomes can be generalized for masses and put to development of future ULIPs.
Further, research can be performed for determining the precise time for introduction of new
ULIP and effect of advertising.

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APPENDIX 1
Following is the list of Companies/Banks Providing ULIP in India.

 Met Life India Insurance Company Ltd.
 ING Vysya Life Insurance Company Ltd.
 Kotak Mahindra Old Mutual Life Insurance Limited.
 ICICI Prudential Life Insurance Co. Ltd.
 Tata AIG Life Insurance Company Limited.
 SBI Life Insurance Co. Ltd.
 Max New York Life Insurance Co. Ltd
 Shriram Life Insurance Co. Ltd.
 Reliance Life Insurance Company Limited.
 Bajaj Allianz Life Insurance Company Limited
 DLF Pramerica Life Insurance Co. Ltd.
 Future Generali India Life Insurance Company Limited.
 Sahara India Life Insurance Co, Ltd.
 Aviva Life Insurance Company India Limited.
 Birla Sun Life Insurance Co. Ltd.
 HDFC Standard Life Insurance Co. Ltd
 IDBI Fortis Life Insurance Company Ltd.
 AEGON Religare Life Insurance Company Limited.
 Canara HSBC Oriental Bank of Commerce Life Insurance.
 Life Insurance Corporation of India.
 Bharti AXA Life Insurance Company Ltd.
 Canara HSBC Oriental Bank of Commerce Life Insurance.

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APPENDIX 2
List of Jargon Used as follows
RIDERS
Riders are additional or supplementary benefits that are bought along with a main life insurance
plan. Some of the commonly offered riders are critical illness benefit rider, accident & disability
benefit rider, waiver of premium rider etc. For example, in case you opt for a Critical illness rider
you get additional protection from 9 critical illnesses.
SWITCHING FUNDS
ULIPs not only allow you to invest your money in fund options with various debts – equity
exposure but also give you the option to switch between different funds. For example, you can
switch money from a fund with 100% equity to a balanced portfolio, which has 60 per
cent equity and 40 per cent debt.
TOP UP
It is additional investment over & above the regular premium by an individual.
SALES BENEFIT ILLUSTRATION

A sales benefit illustration illustrates various charges, year by year, for the term of the plan so
that you know exactly how much money is deducted as charges & what is invested.
IRDA
The Insurance Regulatory and Development Authority (IRDA) is a national agency of the
Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known
as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements.
Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate,
promote and ensure orderly growth of the insurance industry and for matters connected therewith
or incidental thereto."
SPSS

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SPSS (originally, Statistical Package for the Social Sciences) was released in its first version in
1968 after being developed by Norman H. Nie and C. Hadlai Hull. SPSS is a computer program
used for statistical analysis. It is used by market researchers, health researchers, survey
companies, government, education researchers, marketing organizations and others. It contains
measures for descriptive and bivariate statistics, prediction for numerical outcomes, prediction
for identifying groups and various other operations.
IDI
IDI stands for In Depth Interview. An in-depth interview is an open-ended, discovery-oriented
method that is well suited for describing both program processes and outcomes from the
perspective of the target audience or key stakeholder.
FGD
FGD stands for Focused Group Discussion. A focus group is a form of qualitative research in
which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards
a product, service, concept, advertisement, idea, or packaging.[1] Questions are asked in an
interactive group setting where participants are free to talk with other group members.
GDP
Gross domestic product (GDP) or gross domestic income (GDI) is a basic measure of a country's
overall economic output. It is the market value of all final goods and services made within the
borders of a country in a year. It is often positively correlated with the standard of living, though
its use as a stand-in for measuring the standard of living has come under increasing criticism and
many countries are actively exploring alternative measures to GDP for that purpose.

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APPENDIX 3
Following is the Questionnaire used for collecting the Primary data for Project analysis. The survey has
been conducted online and hosted on the Google survey.
QUESTIONNAIRE
1) Have you ever invested in ULIP (please choose one)?
a) Yes
b) No
Note: - If No, please move to Q3.
2) For how many years are you investing in ULIP (please choose one)
a) Doesn’t invest anymore, invested in past.

b) Investing for last 5 years.
c) Investing for last 10 years.
d) Investing for last 15 years.
e) Investing for more than 15 years.
3) What are your perception regarding the ULIP (please choose one)
a) ULIPs are waste of money, too risky for investment.

b) ULIPs are for good option for Tax saving purpose.
c) ULIPs are good option for Health insurance.
d) ULIPs are safe and good option for wealth management.
e) Both (b) and (c).
f) Both (b) and (d).
g) Both (c) and (d).
h) Options (b), (c), (d) and (e).
i) Other _______________________________________________________________
4) Please tick the purpose with which you might/you have selected ULIP as investment
option (multiple options can be selected).
a) Tax saving Purpose

b) Health insurance Purpose
c) Retirement Planning Purpose
d) Wealth growth Purpose
e) Children Education

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5) Please rate the factors according to your choice (1to 5) which you have/ might consider
while choosing the ULIP as investment option. (1 – lowest ,5 –highest)
a) Transparency of processes.
b) Liquidity of funds.
c) Flexibility of fund switching.
d) Tax benefits from investment.
e) Low risk in comparison to mutual fund.
f) Returned earned.
g) Performance of past schemes.
h) Rating of ULIP by agencies.
i) Recommendations of friends and relatives.
j) Company brand value.
k) Recommendation of agents.
l) Others _______________________________________________________________
6) Please rate the knowledge level with respect to ULIP services provided by Insurance
companies in India.
Very Low-----------------------------------------------------------------------------------Very High

0 1 2 3 4 5 6 7 8 9 10
7) Please mark the what types of ULIPs you are aware of (multiple options can be selected)
a) Type I
b) Type II
c) Single premium
d) Regular premium plan
e) Guarantee plans
f) Non guarantee plans
g) Life Stage based
h) Non-life Stage based
8) Please tick against the type of charges charged by companies associated with the ULIP
that you are aware of (multiple options can be selected)
a) Policy administration charges

b) Premium allocation charges
c) Mortality charges
d) Fund management charges
e) Rider charges
f) Switching charges
g) Top Up charges
h) Surrender charges

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If Q1 answer is no, please ignore Q9, Q10, Q11, Q12 and Q13 and continue with Q14
9) Please rate the frequency of premium payment (1 – 5) of currently available ULIP which
suits you. (1 – lowest ,5 –highest)
a) One time
b) Monthly
c) Quarterly
d) Half yearly
e) Yearly
f) Once in 2 year
g) Once in 3 year
h) More than 3 year
10) Please rate the mode of payment (1 – 5) according to your use (1 – lowest ,5 –highest)
a) Insurance offices.
b) Credit card.
c) Net banking.
d) Cheques deposits.
e) Office collection.
f) Banks.
g) Auto pay facility.
h) Authorized agents.
i) Authorized internet sites.
11) Please rate your satisfaction level with the current ULIP
Very dissatisfied-----------------------------------------------------------------------Very satisfied

0 1 2 3 4 5 6 7 8 9 10
12) Please rate your satisfaction level with the ULIP plans based on following services
provided by the insurance companies.(alerts and updates are through SMS, email and
phone calls)
Very dissatisf Neither Satisfact Very

dissatisfa actory satisfacto ory satisfact
ctory ry nor ory
dissatisfa
ctory
Flexibility of fund switching
Providing fund switching alerts
Portfolio management
Flexibility in modes of
premium payment

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Providing premium payment

alerts
Customer service at insurance
offices
Customer call center services
Fund value updates
13) Please rate the reasons for satisfaction/dissatisfaction (1-5) with ULIP (1 – very
unsatisfactory, 5- very satisfactory )
a) Rate of return.
b) Flexibility of fund switching.
c) Proper guidance for management of funds.
d) Various modes for payments of premium.
e) Customer service.
f) Transparency in various processes.
14) Please rate the following services (1 - 5) which you would like to see in future ULIPs(1 –
lowest ,5 –highest)
a) Flexible premium amount payment option.

b) E-mobile payment option.
c) Daily funds value alerts.
d) Flexibility in deciding fund allocation to equity and debt.
e) Allow more number of fund switching.
f) 24x7 customer support.
g) 15 days premium option.
15) Please mark the probable time period in future when you would like to go for the ULIP as
investment option (please choose one).
a) Not decided.
b) Within 1 month.
c) 1 - 6 months.
d) 6 - 12 months.
e) 12 - 18 months.
f) More than 18 months.
g) Won’t invest in future.
If (a) or (g) is chosen, Please ignore Q16 and Q17, proceed with Q18.
16) Please mark the tenure (in years) for which you would like to invest in ULIPs.
a) 3
b) 3 - 6

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c) 6 - 9.
d) 9 - 12
e) 12 - 15
f) 15 – 20
17) Please mark the probable amount you would like to investment in ULIP in coming future
(all figures are in INR and annually) (Please choose one)
a) Less than 20,000

b) 20,000-50,000
c) 50,000-100,000
d) 100,000-200,000
e) 200,000-500,000
f) More than 500,000
Please let us know a little more about you.
18) Your age group (please choose one)
a) Less than 20 years

b) 21-25
c) 26-30
d) 30-35
e) 36-40
f) 41-45
g) 45-50
h) Over 51
19) Your monthly household income (rupees/month) (please choose one)
a) Less than 10,000

b) 10,001 to 20,000
c) 20,001 to 30,000
d) 30,001 to 40,000
e) 40,001 to 50,000
f) 50,001 to 60,000
g) 60,001 to 70,000
h) 70,001 to 80,000
i) 80,001 to 90,000
j) 90,001 to 100,000
k) Over 100,000
20) Your Gender (please choose one)
a) Male

20
b) Female
21) Your Name (optional)
_______________________________________________________________________
CODING OF QUESTIONNAIRE

21
BIBLIOGRAPHY
All the relevant information has been gathered from following sources
 http://www.wikipedia.org/
 http://www.apnaloan.com/
 http://www.moneycontrol.com/
 Business Research Methods, 7E, William G. Zikmund
 Business Research Methods, Naresh Mahalotra

22

Customer Perception On Unit Linked Insurance Policies in India

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IMT Nagpur

Customer Perception on Unit

Nitin Sharma 2009147

Customer Perception on Unit Linked Insurance Policies in India

Place: IMT, Nagpur

Customer Perception on Unit Linked Insurance Policies in India

Customer Perception on Unit Linked Insurance Policies in India

Scope for future.........................................................................................................................................11

Customer Perception on Unit Linked Insurance Policies in India

No table of figures entries found.

Customer Perception on Unit Linked Insurance Policies in India

 Level of satisfaction with currently available ULIPs.

Customer Perception on Unit Linked Insurance Policies in India

CURRENT STATUS IN INDIA

Customer Perception on Unit Linked Insurance Policies in India

CHARGES UNDER ULIP

POLICY ADMINISTRATION CHARGES These charges are deducted on a monthly

FUND MANAGEMENT CHARGES A portion of the ULIP premium, depending on the

Customer Perception on Unit Linked Insurance Policies in India

SWITCHING CHARGES Insurance companies charge fee for switching funds.

Wealth Creation ULIPs can be further primarily classified as:

Customer Perception on Unit Linked Insurance Policies in India

 Life Stage based – Non life Stage based

Provides flexibility in investments

Customer Perception on Unit Linked Insurance Policies in India

Figure 1: Figure Showing Advantages of ULIP

Currently in India premium payments can be remunerated through following channels:

Customer Perception on Unit Linked Insurance Policies in India

RELEVANCE OF THE STUDY

POSSIBLE ASSUMPTIONS/ HYPOTHESES THAT CAN

TARGETED GROUP FOR RESEARCH STUDY

Customer Perception on Unit Linked Insurance Policies in India

Research objective – To determine Demographic characteristics of ULIP buyers.

Research objective- Analysis of customer sentiments on various services provided by

Customer Perception on Unit Linked Insurance Policies in India

Research objective- Reasons for satisfaction or dissatisfaction.

Research objective - Criteria for selecting a ULIP.

Research objective- Level of satisfaction with currently available ULIPs.

Research objective- Level of awareness about ULIP.

Research objective - Determining types of service customer needed

Customer Perception on Unit Linked Insurance Policies in India

Research objective - Level of customer knowledge about ULIP charges

Research objective- Attitude towards charging policies.

Research objective- Likelihood of purchase of plan when and why.

Customer Perception on Unit Linked Insurance Policies in India

SECONDARY DATA COLLECTION

PRIMARY DATA COLLECTION

Collected raw data has been analyzed through SPSS (appendix 2)

CONCLUSION AND SUMMARY

Customer Perception on Unit Linked Insurance Policies in India

SCOPE FOR FUTURE

Customer Perception on Unit Linked Insurance Policies in India

Following is the list of Companies/Banks Providing ULIP in India.

Customer Perception on Unit Linked Insurance Policies in India

SALES BENEFIT ILLUSTRATION

Customer Perception on Unit Linked Insurance Policies in India

Customer Perception on Unit Linked Insurance Policies in India

1) Have you ever invested in ULIP (please choose one)?

Note: - If No, please move to Q3.

a) Doesn’t invest anymore, invested in past.

a) ULIPs are waste of money, too risky for investment.

a) Tax saving Purpose