kotak ulip plans summer internship project

A REPORT

ON

ANALYSIS OF CONSUMER INVESTMENT BUYING BEHAVIOR AND

INNOVATION IN INSURANCE IN PRESENT SCENARIO

BY CHANI RAJ

15TH MAY 2009

CERTIFICATE

This is to certify that the project entitled, “Analysis of consumer investment buying

behavior and market potential Of ULIPs in the NCR Region”, submitted in partial

fulfillment of the degree of Master of Business Administration (MBA) as per requirement,

is based on original project study, conducted by Chani Raj (Enroll. No. 07BS 1073),

under my guidance and supervision.

Place: Gurgaon Prof. Vikram Sharma

Date: May 15,2009

ICFAI Business School

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ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to all those who have contributed significantly by sharing their knowledge and experience in the completion of this project work.

I am greatly obliged to Dr. O.P.Gupta, Director, ICFAI Business School-Gurgaon, for providing me the right kind of opportunity and facilities to complete this venture.

My first word of gratitude is due to Mr. Dipanjan Hore, Sales Manager-Kotak Direct, my corporate guide, for his kind help and support and for his valuable guidance throughout the project. I am thankful to him for providing me with necessary insights and helping me out at every single step.

My heartfelt thanks to our respected Faculty Guide namely Prof. Vikram Sharma. Without his continuous help the project would not have been materialized in the present form. His valuable suggestions helped me at every step.

Finally, I would also like to thank all my dear friends for their kind cooperation, advice and encouragement during the long and arduous task of preparing this report and carrying out the project.

At last but not the least, who are always at the top of my heart, my dear family members whose blessings, inspiration and encouragement have resulted in the successful completion of this project.

Date: 15 May,2009 Chani Raj

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EXECUTIVE SUMMARY

I ,Chani Raj ,enrollment no.7 BS1073, am a student of ICFAI Business School-Gurgaon. I was given the opportunity to pursue my internship in KOTAK DIRECT for a period of fourteen weeks. My project is titled Analysis of consumer investment buying behavior and innovation in insurance in present scenario.

The basic project objectives are as follows:

To study consumer investment behavior To study brand awareness of Kotak Comparison of ULIPs. To discuss various new avenues in insurance and find the Market potential of

ULIP in NCR regions which was divided into four regions viz: Delhi, Gurgaon, Noida, and Greater Noida.

As a part of my project I was required to carry out two surveys.

The following vital conclusions were derived:

Trust needs to be developed among the customers both as far as the ULIP as a product is concerned

Some respondents despite of knowing about ULIP were hesitant to talk on it because they were not too confident about their knowledge. This very fact completely declines the concept of providing switches as a lucrative feature in ULIP (which is done by most of the companies). The reason is that very rarely people have the ability or time to use these features.

Awareness was missing specifically in Greater Noida and Noida in comparison to Delhi.

Important Recommendations that were suggested are:

Building trust by providing the customers with adequate knowledge about the company and then the product.

Enhancing the level of awareness in terms of the company, their Partners and then the product and special emphasis among the female chunk of the population.

Adequate advertisement via appropriate media should be done by the various companies as is done in the case of mutual Funds.

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INTRODUCTION TO INSURANCE

HISTORY OF INSURANCE

I’m sure we’ve all heard of the word, and have an idea of how it works. Is it a great thing? Is it something concrete or abstract? It depends on the context of the situation. A quick, simple definition of insurance could be as follows: Reimbursement in a situation of loss. Usually, someone decides that insurance is needed. In order for the concept of insurance to arise, a prepayment of some type is required. In the case of typical, everyday general auto, health and life insurance, for example, the pre payment is in the form of a premium. Prior to the eve of the year 2000, thousands of people flocked to the stores, stocking up on numerous supplies. They feared that something catastrophic was going to take place once the clock struck midnight, and if so, they wanted to do prepare. Isn’t this a form of insurance? Sure in its basic definition. The supplies they purchased would act as reimbursement in the case of loss.

Early insurance goes back to the Egyptian times. It was known that around 3000 BC, Chinese merchants dispersed their shipments among several vessels to avoid the possibility of damage or loss. There are some insurance companies around today in the United States that provided insurance back in the mid 1700’s, as well as some that provided relief to banks during the 1930’s and the Great Depression. Today, there is insurance for any aspects of daily living: Business, Auto, Health, Life and Travel. Each of those categories includes sub-categories, branching off into numerous divisions.From the beginning human societies sought ways to soften the shocks of existence. Our ancestors were very much aware that no individual could go it alone, that only by pooling the resources of the many could the unfortunate few be helped.

This simple notion of mutuality persists like a welcome footpath through the incredible tangle of human history. While empires have risen and collapsed, through wars, famines and pestilence, during the ebb and flow of struggling generations, the idea of insurance as “the victory of human thought over the rude violence of life”

Even as human society emerged from the darkness of unrecorded time, we see it at once. In ancient Babylonia, where from the confluence of two rivers, enterprising merchants sent caravans and ships to trade with all parts of the known world: with Egypt, Phoenicia, India and China.

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To reduce the risk of robbery, plunder and capture for ransom, the Babylonians devised a system of contracts in which the supplier of capital for a venture agreed to cancel the loan if the trader was robbed of his goods. The trader who borrowed the capital paid an extra amount for this protection (a premium) in addition to the usual interest. As for the lender, collecting these premiums from many traders made it possible for him to absorb the losses of the few. This arrangement proved to be more appealing and sensible than the earlier one of pledging not only the trader’s ships and other tangible property, but also his life (as a slave) and those of his family as well. Accordingly, the practice was sensibly legalized in the Code of Hammurab.

These arrangements became well known to the Phoenicians and to the Greeks, Hindus we discover a comprehensive code of sea laws, including a principle of “jettison” or “general average.” It states that if it becomes necessary to throw goods overboard in order to lighten the ships, such sacrifice for the common benefit should be made good by a common contribution. The very word “insurance” is derived from the Latin word for “security.”

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WHY DO PEOPLE INVEST??

People invest in life insurance owing to a few key reasons, mainly

Insurance creates financial provisions for the deceased's dependants. Insurance provides for the policyholder's old age after his earning power

diminishes. After all, interest rates may fall and invested holdings may lose value and stop gaining dividends, but the value of an insurance policy once set, never reduces.

Insurance also provide a legally authorized way to reduce the incidence of Income Tax.

With a view to promote savings and increase awareness regarding insurance, the government has provided certain benefits through the Income Tax Act for taxpayers if they choose to opt for life insurance policies. If you plan for your future in a prudent manner, you can maximize the returns on your insurance portfolio.

Under Section 10(l0A) (iii) of the Income Tax Act, any payment received by way of commutations of pension out of the Jeevan Suraksha annuity plans is exempt from tax

Under Section 10(10D), any sum received under a Life Insurance policy (not being a Key Man policy) is also exempt from taxation. But it is wise to remember that Pensions received from Annuity plans are not exempted from Income Tax.

Section 80 CCC provides a deduction of up to Rs.10,000/- to an individual assessee for any amount paid or deposited to effect or keeping in force any annuity plan of LIC for receiving pension from the fund referred in sections 10 (23AAB). Presently LIC's Jeevan Suraksha plan is one such plan using such benefit.

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WHAT IS AN ULIP (Unit Linked Insurance Plan)?

A policy, which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. ULIP is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV).

A unit-linked insurance plan provides both insurance and investment benefit. In unit-linked plans, the premiums paid are invested in funds offered by the company; the policyholder determines the appropriate ratio of investments into these funds. The funds are generally invested in equities, debt instruments, money market instruments, and government securities.

The value of the policy is determined on any day by multiplying the number of units issued by the value of units on that day. The value of these units is called the Net Asset Value (NAV) and is normally published in newspapers on a daily basis. Unit-linked insurance products are risky because the premium money invested is subject to market risk. The funds do not offer a guaranteed or assured return. Insurance companies will only show you a projected return, which may or may not be achieved during the term of the policy.

Are Ulips Similar To Mutual Funds?

In structure, yes; in objective, no. Because of the high first-year charges, mutual funds are a better option if you have a five-year horizon. But if you have a long term investment horizon, then ULIPs have an edge. To explain this further a ULIP has high first-year charges towards acquisition (including agents’ commissions). As a result, they find it difficult to outperform mutual funds in the first five years. But in the long-term, ULIP managers have several advantages over mutual fund managers. Since policyholder premiums come at regular intervals, investments can be planned out more evenly.

Mutual fund managers cannot take a similar long-term view because they have bulk investors who can move money in and out of schemes at short notice.

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ADVANTAGES OF UNIT-LINKED POLICIES:

A combination of protection and tax advantage, unit-linked policies dominate a huge chunk of the portfolio of the private insurers. The annual premium contributes over 70% to the premium income.

In the event of death during the life of the policy, the sum assured or value of the policy fund whichever is higher is paid to the nominees.

There is a lot of flexibility in these plans with falling interest rates. So an investor can adjust his risk profile according to his choice. The risk element is transferred to the investor and the insurance company enjoys the capital and solvency.

The client is aware of the "no guarantee" era and he plans his investment judiciously.

The client enjoys transparency, by way of returns on the equity markets simultaneously enjoying the benefits of life cover.

It's tax-free, unlike a mutual fund or any other investment, where the gains are taxed.

The client also has an option of restructuring his investment pattern which is a value addition to the original policy (i.e. top-ups)

Contrary to the traditional policies, the unit linked policies are more transparent, flexible and easy to understand. The customer has open options for investment and he is consciously aware of the ratio of his premium towards investment and life cover.

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COMPANY PROFILE

KOTAK GROUP is one of the top most financial product service providers in India. It is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs5,824 crores, employs around 20,000 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 370 cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The group services around 4.4 million customer accounts. It comprises of following sub units which combines to form such a vast company and group of people.

1. Kotak Securities.

2. Kotak Insurance.

3. Kotak Mahindra bank.

4. Kotak Mutual funds.

5. Kotak Private equity.

6. Kotak Investment banking.

7. Kotak Reality funds.

.

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. Since then it's been a steady and confident journey to growth and success.

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KOTAK DIRECT

KOTAK DIRECT (A Subsidiary of KOTAK SECURITIES) deals with ULIPs (Unit Linked Insurance Plans). It was started in 2007 with the Head office in Mumbai. The various branches of Kotak Direct are located throughout the country & new branches are opening up as well.

Kotak Securities, a subsidiary of Kotak Mahindra Bank, is the stock-broking and distribution arm of the Kotak Mahindra Group. The institutional business division, which brings you AKSESS, primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs). The division also has a comprehensive research cell with sectoral analysts covering all the major areas of the Indian economy.

Kotak Securities Ltd. is one of the oldest and leading stock broking houses in India with a market Kotak Securities Ltd. has also been the largest in IPO distribution.

Kotak Securities has 877 outlets servicing over 4, 30,000 customers and a coverage of 321 cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments.

Kotak Securities Limited has over Rs. 3300 crore of Assets Under Management (AUM) as of 31st March, 2008. The portfolio Management Services provide top class service, catering to the high end of the market. Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert.

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STRUCTURE OF KOTAK DIRECT

Vice President

Zonal Head

Area Head

Territory Head

Sales Manager

Senior Relationship Manager

Relationship Manager

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STRATEGIC

LEVEL OR TOP

MIDDLE LEVEL

OPERATIONAL LEVEL

TEAM of

10 TO 20 people

SYSTEMATIC APPROACH OF THE SALES TEAM

Before going for PITCHING & PRESENTATIONS, the sales team need to follow the

following process for systematic functioning.

(Prepares pool of prospective customers) (Prepares pool of prospective customers)

(After talking to prospective clients)

(Study about the client & client’s needs)

(Meet the client)

(Info. about various plans)

(Replying to confusions & queries)

(Persuading the client)

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AGENTS

(RM’s & SRM’s)

TELE CALLING Prospective Clients

Appointment Fixed

PRE APPROACH

APPROACH

PITCHING & PRESENTATION

QUERY HANDLING

FOLLOW UP

CUSTOMER SUPPORT

(Customer Call Centre)

FUNCTIONS OF THE OPERATIONS TEAM If client is convinced & interested, the following process needs to be performed by the

OPERATION TEAM before the policy is dispatched to the policy holder.

NO

YES

NO

YES

NO

YES

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Completion of Forms & Documents

Crosscheck at Branches

Primary underwriting (Zonal Office)

Form is

Case is picked

Secondary underwriting (Main Office)

Form is

Case logged in (Live Asia)

Policy Dispatched to Clients

Policy rejected

POLICIES OF KOTAK DIRECT

There are basically 3 policies dealt in KOTAK DIRECT

KOTAK SAFE INVESTMENT PLAN (KSIP)

KOTAK SMART ADVANTAGE PLAN (KSAP)

KOTAK HEADSTART FUTURE PROTECT

Depending upon the needs & wants, clients have the option of choosing between any of these three plans which provides them with various benefits & growth options along with an Insurance cover.

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KOTAK SAFE INVESTMENT PLAN (KSIP)

Kotak Safe Investment Plan is a Unit Linked Insurance Plan that combines the benefits of insurance and capital market returns into one. This plan from the stable of Kotak Life Insurance is a true reflection of the company’s essence: innovation that will benefit the investor.

What makes investing in Kotak Life Insurance truly unique is that you enjoy a Guaranteed Maturity Value with varying degrees of equity exposure depending on your risk appetite. So if the market value of your units is higher, you reap the benefits with the peace of mind that whilst in a bear market your investment is under-pinned by the Guaranteed Maturity Value. And there is more, the returns are totally Tax free.

KOTAK SMART ADVANTAGE (KSAP)

Guaranteed returns of unto 275% of your first year premium at maturity Assured bonus additions at regular intervals during he policy term to enhance

your fund value. 100% allocation of the premium from 2nd year onwards Unique fund offering maximum opportunity for growth and choice for your

investment needs Maximum protection for your loved ones to choose from.

KOTAK HEADSTART FUTURE PROJECT

Every child is different. Each has their own set of dreams and aspirations. As a parent you would like to provide your child with all the building blocks that could develop his or her potential to the fullest. This could mean extra coaching or tuition for talented children, special training or equipment for natural athletes or professional training for born singers. Headstart Child Plans is a specially tailored, cost-effective plan, aims to give your children the financial means to pursue his or her dreams and live them.

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The Headstart Advantage:

Triple Death Benefit : Sum received at death =( Sum assured + Fund value + Remaining premium)

Dynamic Floor Fund Maximizes wealth while providing protection Joint life option Save for 2 children with one plan Additional bonus units Flexible Withdrawal

Additional Benefits :

Term / Preferred Term Benefit:

In the event of death during the term of this benefit, the beneficiary would receive an additional death benefit amount, which is over and above the sum assured. The maximum amount of benefit you can avail is equal to the basic sum assured. Where the Term Benefit cover applied for is more than Rs.10 lakhs, better rates may apply.

Accidental Death Benefit:

This benefit provides an additional amount (over and above the sum assured) to the beneficiary in the event accidental death of the life insured. The maximum cover available under this benefit is equal to the basic sum assured (subject to a maximum of Rs.10 lacs).

Critical Illness Benefit:

This benefit can be added to the basic life insurance plan to provide financial support in the event of medical emergencies. On the first occurrence of critical illness during the term of the plan, you would receive a portion of the sum assured to reduce your

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financial burden in this emergency. The maximum Critical Illness Benefit that you can avail of is equal to half the basic sum assured (subject to a maximum of Rs.20 lacks).

Life Guardian Benefit:

In case of the unfortunate death of the proposer, this benefit keeps the policy alive by waiving all future premiums on the policy.

Accidental Disability Guardian Benefit:

In case the proposer is permanently disabled as a result of accident, this benefit keeps the policy alive by waiving all future premiums on the policy.

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COMPARISON BETWEEN VARIOUS POLICIES:

POLICIES

FEATURES

KSAP KSIP HEADSTART

ENTRY AGE MIN: 0 Years

MAX:65Years

MIN:0Years

MAX:65Years

MIN:18 Years

MAX:60Years

MATURITY AGE

MIN:18Years

MAX:75Years

MAX:75Years MIN:18Years

MAX:70Years

POLICY TERMS

REGULAR:10/15

/20/25Years

FOR MINOR: 10Years or 18 less entry age at last birthday whichever is higher.

MIN: 10Years or 18 minus age at entry for minors; whichever

Is higher

MAX: 30Years

Min: Greater of (10 Yrs or 18 less child’s present age)

Max: 25 Yrs.

REGULAR PPT: Rs.15, 000 p.a.

REGULAR: REGULAR PPT: Rs.15, 000 p.a.

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MINIMUM PREMIUM LIMITED PPT:

Rs 36,000p.a.

Rs.18, 000 p.a.

LIMITED PPT:

Rs 50,000 p.a.

LIMITED PPT:

Rs 25,000 p.a

for 4-10 Yrs

Rs 50,000 p.a.

for 3 Yrs

BASIC SUM ASSURED

MIN: 0.5 X

(Policy term x annual premium.)

MAX: Any multiple of premium, subject to underwriting

HIGH COVER: Policy term x annual premium

LOW COVER:

Greater of(5x annual premium,0.5xpolicy term x annual premiums )

MIN: 0.5 X

(Policy term x annual premium.)

MAX: Any multiple of premium, subject to underwriting

RIDERS

BENEFITS

Critical Illness Benefit

Permanent Disability Benefit

Accidental Disability Guardian Benefit: Premiums waiver protection on disability.

Accidental Death Benefit

NO RIDERS BENEFITS

Critical Illness Benefit

Permanent Disability Benefit

Accidental Disability Guardian Benefit: Premiums waiver protection on disability.

Accidental Death Benefit

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Preferred Term Benefit

Life Guardian Benefit

USP OF THE VARIOUS PLANS

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PLAN KSAP KSIP HEADSTART

USP

Upto 275 % return

on first year

premium at maturity

& assured bonuses.

Guaranteed Maturity

Value for all type of

investors.

Triple Death Benefit &

Dynamic Floor fund.

COMPARISON OF CHARGES:

POLICIES

CHARGES

KSAP KSIP HEADSTART

Years <36000 >=36000 Years charges Years Allocation

(15k to 25k)

2-5 2% Nil 1 14% 1 68%

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PREMIUM ALLOCATION CHARGES

6-10

11+

1%

Nil

Nil

Nil

>2 3.5% 2

3

4-10

>11

86%

93%

99%

100%

POLICY ADMINISTRATION CHARGES

Rs.65p.m. at commencement of the policy, inflating by 5%p.a.

=<Rs.20000 -7%

>20000-3.5%

<Rs100000: flat fee of Rs.75 p.m. in year 1and Rs 40 p.m. in year2 onwards.

>Rs.100000: No charges

FUND MANAGEMENT CHARGES

Dynamic bond fund - 1.2%

Dynamic floor fund- 1.75%

Opportunities fund- 2%

Guaranteed/dynamic money market fund

Guaranteed/dynamic gilt fund

Guaranteed/dynamic bond fund

Guaranteed/dynamic floating rate fund

Guaranteed/

0.6%

1%

1.2%

1.2%

Dynamic money market fund

Dynamic gilt fund

Dynamic bond fund

Dynamic floating rate fund

Dynamic

0.6%

1%

1.2%

1.2%

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dynamic balanced fund

Guaranteed/dynamic growth fund

Aggressive growth fund

1.3%

1.5%

1.6%

balanced fund

Dynamic growth fund

Aggressive growth fund

1.3%

1.5%

1.6%

SWITCHING CHARGES

First four switches in a year are free.

Rs. 500 will be charged for every additional switch.





MORTALITY CHARGES

No mortality charges in 1st year. From year 2nd onwards, the cost of life cover & will be levied by cancellation of units on a monthly basis.

Thus is the cost of life cover & will be levied by cancellation of units on a monthly basis.

Thus is the cost of life cover & will be levied by cancellation of units on a monthly basis.

Age

(Yrs)

25

35 45 55

Mortality charges

(Per ’000)

1.54 1.83 3.57 9.04

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PARTIAL WITHDRAWAL

CHARGES

Partial withdrawal not allowed in the first 3 years. From year 4th

onwards, a part of the fund value can be withdrawn.

No other expense charges for the 1st two withdrawals in the policy year. Additional expense of

Rs. 500 per withdrawal for subsequent withdrawals.

Partial withdrawal not allowed in the first 3 years.

Subsequently, (7-N) % is charged on each withdrawal, where N is the no. of year.

Partial withdrawal not allowed in the first 3 years. Subsequently,

(7-N) % is charged on each withdrawal, where N is the no. of year.

COMPARISON OF PLANS

CHILDREN PLANS

Children plan are those plans which are launched targeting young couples and who have a

lot of dreams for their children, but may be their income will not allow them to fulfill their

dreams after years down the line when their children actually want a adequate of lump sum

with them for the purpose of higher education, professional qualification etc. As life is

uncertain, these plans are launched keeping in mind that, whether parents will be their or

not, children can fulfill their dreams.

Some of these plans are

a. Headstart future protect(Kotak Mahindra OM)

b. Smart kid(ICICI prudential)

c. Children’s Dream plan(Birla Sun Life)

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d. Child Gain( Bajaj Allianz)

Assumptions while comparing children plans provided by various Insurers-

1. Growth rate is expected to be 20% through out the policy.

2. Other charges are considered with fund management charges and expected to be

approximately equal.

3. Annual Premium is considered to be same for a better comparison, except Kotak OM and

ICICI Pru, because these companies are charging different allocation charges for different

levels.

4. All companies are assumed to be equally proficient; they can offer same levels of returns.

5. Fund management charges charged by various companies are different, but for a better

comparison we are charging same level of charges. In long term fund management can

make a lot of difference in returns, but it is not feasible from a customer’s point of view,

because he may not be able to compare all the plans in the best way.

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From the above table, we can assume that Birla Sun life is providing maximum returns, but in the case of demise of proposer Kotak OM is the most beneficiary for family of proposer.

FAMILY PLANs

These plans are more focused on future protection and savings. As these plans are very different from children plans, because children plans are considered to be long term plans or most of the times considered for a fixed time period and some of the condition make it safe for Insurance companies to make it minimum exit period, but on the other hand Family Plans are more transaction based plans.

Charges are more in case of family plans, in comparison to children plans. So it becomes more difficult for any Investor to decide which policy can give him maximum benefits.

While comparing Family plans we are considering these charges as a base of comparison –

I. Allocation chargesII. Fund management chargesIII. Policy administration charges

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IV. Death benefitsV. Growth rate-30%p.a.VI. Charges as fund management charges and mortality chargesVII. Policy administration are considered as a part of allocation charges

and adjusted as a part of allocation charges only.

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SURVEYS

SURVEY 1

In order to understand the behavior of customers towards ULIP’s and to determine the various factors which a consumer actually takes into account while buying a ULIP, a survey was done.

We prepared a questionnaire consisiting of 13 factors which plays an important role in choosing a ULIP and asked the respondents to rate these factors on a scale of 1 to 5(1 being least important & 5 being most important). This questionnaire was not specific to any particular company and aimed at determining the most important factors from the consumer point of view. With the help of data thus obtained, a complete analysis was done and results were obtained.

Sample Size:

The sample size of the survey was 100. The respondents were ensured complete confidentiality of their opinion and view.

Sample Population:

Our sample population belonged to all the sections of the society i.e. higher income group, middle income group and lower income group. As a result of this, the data thus obtained was not confined to a particular section of the society and represented the view and opinion of all the classes of society in large.

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ANALYSIS OF SURVEY 1

On the basis of the datas obtained, statistical methods were employed to determine the most important factors of the 13 factors which are most important from a consumer point of view before going for a ULIP.

FACTORS

QUESTIONNAIRE No. 1 2 3 4 5 6 7 8 9 10 11 12 13

1 4 3 5 3 5 3 3 3 4 2 4 3 5

2 5 4 3 3 2 1 3 5 5 5 3 4 5

3 5 4 5 4 4 3 4 5 4 4 4 5 4

4 5 4 1 5 5 5 3 4 5 5 4 3 4

5 5 5 5 3 5 3 4 4 3 4 3 1 5

6 5 4 2 3 5 1 4 5 5 5 4 4 5

7 4 5 4 5 5 1 3 4 2 1 1 4 4

8 1 5 3 2 5 4 3 5 2 4 3 5 4

9 5 5 2 2 5 5 5 5 4 5 1 2 4

10 4 5 4 5 5 1 3 4 3 1 1 2 4

11 5 5 5 4 2 1 5 5 5 5 1 5 5

12 5 5 5 5 1 1 5 5 5 5 5 5 5

13 5 5 5 5 1 1 5 5 5 5 1 5 5

14 4 2 1 2 3 1 1 2 1 4 3 5 2

15 5 4 2 3 5 1 4 5 5 5 4 4 5

16 5 4 3 3 5 3 3 3 3 5 4 3 4

17 5 3 1 2 5 1 3 5 5 5 3 3 5

18 5 5 3 5 5 2 3 5 3 2 3 3 4

19 5 4 4 5 5 3 4 5 5 4 5 4 5

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20 5 4 4 5 5 2 4 4 5 5 5 4 4

21 5 4 3 3 5 2 4 4 3 4 3 4 3

22 5 4 4 5 5 2 4 5 5 5 4 5 4

23 5 4 4 5 5 2 4 5 5 5 4 5 4

24 5 4 4 5 5 2 5 5 5 4 5 4 4

25 5 2 2 5 5 1 5 5 5 5 2 2 5

26 5 5 5 5 5 2 5 5 3 3 2 3 5

27 5 5 1 5 5 1 5 5 1 5 1 3 5

28 5 1 3 5 3 1 3 5 5 5 3 3 5

29 5 4 4 4 3 5 3 5 5 4 4 4 4

30 5 4 3 4 2 4 4 5 4 1 3 4 4

31 3 4 4 5 5 3 3 4 3 4 3 4 3

32 5 4 5 4 5 3 4 4 5 4 3 4 4

33 5 4 1 3 4 2 4 5 4 5 2 5 3

34 3 4 4 3 4 3 4 3 3 4 3 3 3

35 5 5 4 4 5 4 5 5 4 5 5 4 4

36 5 4 4 5 5 3 4 5 5 4 5 4 5

37 5 4 1 5 5 5 5 5 5 5 1 1 5

38 5 4 1 5 5 5 5 5 4 3 1 1 4

39 4 4 5 4 5 3 2 4 4 2 1 4 4

40 5 5 5 5 4 3 3 5 4 3 3 4 4

41 4 3 3 5 5 1 4 5 4 5 3 5 3

42 5 3 3 5 5 2 4 3 4 5 5 4 5

43 5 5 1 5 5 1 5 5 5 3 3 5 5

44 5 4 2 3 5 1 4 5 5 4 4 3 4

45 5 4 1 3 5 1 4 5 5 4 4 3 4

46 4 4 3 3 4 1 4 3 4 3 1 4 4

47 4 4 2 3 3 1 4 4 3 2 3 3 5

48 5 5 3 4 5 1 5 5 4 4 4 4 4

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49 5 5 1 3 4 1 5 5 3 5 5 3 4

50 5 4 4 5 5 2 5 5 4 5 5 2 5

51 5 4 3 4 4 3 4 5 3 3 3 5 5

52 5 4 2 3 4 1 5 5 4 4 3 3 5

53 5 1 4 2 3 2 3 5 4 3 2 4 5

54 5 4 1 3 4 1 3 4 4 5 1 5 5

55 5 5 5 4 5 3 5 4 4 5 4 3 3

56 5 4 3 4 5 2 5 5 2 4 2 4 4

57 5 4 3 4 5 3 5 5 3 5 3 2 5

58 5 4 3 4 5 1 4 3 4 5 2 3 5

59 4 4 3 3 5 3 4 4 3 4 1 4 4

60 5 5 3 4 5 2 4 4 5 3 2 4 5

61 4 3 2 2 4 2 4 5 3 3 3 4 5

62 5 5 2 3 3 2 5 5 4 4 5 4 5

63 5 4 4 4 4 2 4 5 3 2 4 4 5

64 5 4 1 3 4 2 3 5 4 4 2 4 4

65 5 4 3 4 5 1 2 5 4 3 3 5 4

66 5 4 4 4 4 1 4 5 5 5 4 3 4

67 5 4 5 3 5 2 5 5 5 2 4 3 5

68 5 4 2 4 4 2 4 5 4 2 3 4 5

69 5 5 4 5 5 5 5 5 3 5 3 2 5

70 5 5 3 3 3 2 3 5 4 3 4 4 5

71 5 5 4 3 4 3 4 5 3 4 2 4 5

72 5 5 3 4 5 1 2 4 5 5 5 3 5

73 4 4 2 3 3 1 2 4 4 2 1 5 5

74 4 5 4 5 5 3 5 3 4 5 1 2 5

75 5 4 5 4 5 4 5 5 4 4 2 3 3

76 4 5 2 3 4 2 4 4 4 3 2 4 4

77 5 4 4 4 4 1 4 3 4 4 3 4 3

33

78 4 4 2 2 3 1 4 5 4 2 1 3 4

79 5 5 3 4 5 2 5 4 4 4 4 5 5

80 5 4 3 3 4 1 3 5 4 3 3 4 5

81 5 4 3 4 4 3 4 5 4 4 3 4 5

82 5 4 1 3 3 2 3 5 5 5 2 3 4

83 5 4 4 3 4 2 4 5 5 5 4 4 3

84 4 4 3 2 3 1 2 3 4 4 1 4 4

85 5 4 3 4 5 1 4 5 3 3 2 4 4

86 5 5 3 3 4 3 5 4 4 4 3 4 4

87 5 3 2 3 3 2 3 5 5 3 3 4 4

88 5 4 3 2 3 3 3 5 4 4 4 3 4

89 5 5 4 5 5 1 4 5 3 5 5 3 4

90 4 4 3 2 3 2 2 5 3 2 1 2 5

91 5 4 3 3 2 1 2 5 3 4 2 5 4

92 5 4 3 4 5 1 5 4 4 4 2 4 5

93 5 5 2 3 5 3 5 5 4 5 3 4 4

94 5 3 4 2 4 2 5 3 4 3 3 2 3

95 4 5 5 4 5 4 4 5 5 4 4 3 5

96 5 5 4 3 4 3 3 3 4 3 3 2 4

97 4 4 3 4 4 2 4 4 4 4 1 5 4

98 5 4 2 3 3 2 4 4 3 2 3 3 4

99 5 4 2 4 4 1 3 3 5 1 1 4 5

100 5 5 2 4 5 1 4 5 4 4 2 4 5

SUM 474 415 308 372 425 212 389 451 397 384 291 363 434

AVERAGE 4.74 4.15 3.08 3.724.25

2.12

3.89

4.51 3.97 3.84 2.91 3.63 4.34

34

MEDIAN 5 4 3 3 5 2 4 5 4 4 3 4 4

MODE 5 4 3 3 5 1 4 5 4 5 3 4 5

S. D.0.596623

50.79

61.22

80.98

60.99

1.16

0.94

0.75

0.915

1.143

1.272

0.991

0.699

VARIANCE0.355959

60.63

41.50

90.97

10.98

1.34

0.89

0.56

0.837

1.307

1.618

0.983

0.489

35

On the basis of survey done, the following results were obtained:

The 5 most important factors while buying an insurance plan especially ULIP’s are as follows:

Sr. No.

FACTORAVER-

AGEMEDI-

ANMODE S.D. VARIANCE

1Return On Investment 4.74 5 5 0.59662 0.3559596

2Financial Health (Company) 4.51 5 5 0.74529 0.55545

3Comparison with Financial Products 4.34 4 5 0.69949 0.48929

4Tax Saving 4.25 5 5 0.98857 0.97727

5Policy Features 4.15 4 4 0.79614 0.63384

36

CONCLUSIONS FROM SURVEY 1

Returns on Investment & Financial Health of the company are the 2 most important factors while buying an INSURANCE PLAN.

Return on Investment gets an average of 4.74 (on a scale of 5) with both median & mode being 5. S.D & Variance are 0.56 & 0.36 respectively which are quite less & shows high degree of similarity in the views of the people surveyed, on the importance of this factor.

Financial Health of the company gets an average of 4.51 (on a scale of 5) with both mean & median being 5. S.D & Variance are 0.75 & 0.56 respectively which also show quite a high degree of similarity in the views but comparatively lesser than RETURN ON INVESTMENT Factor.

Comparison with Financial Products, Tax Saving & Policy Features are also very important factors & plays a very important role in the purchase of an Insurance Policy.

The above 5 factors are the most important ones which affect the purchase of an Insurance Policy.

An Insurance company needs to pay a lot of attention on these factors before developing a policy as they play utmost importance in the purchase of an Insurance Policy

37

SURVEY 2 In order to understand the market potential of ULIPs in the NCR region, we prepared a questionnaire asking demographic questions such as name age, sex, occupation etc. This questionnaire was not specific to any particular company and aimed at determining if

There is any relation between age and preference for ulips Income and preference for ulips Occupation and income for ulips

. With the help of data thus obtained, a complete analysis was done and results were obtained.

Sample Size:

The sample size of the survey was 280. The respondents were ensured complete confidentiality of their opinion and view.

Sample Population:

Our sample population belonged to the NCR region namely Delhi, Gurgaon,Noida and Greater Noida.

MARKET PROFILE-DELHI

38

BRIEF DEMOGRAPHY OF THE CITY

PARAMETERS UNIT DESCRIPTION

Population Lac./Crores 15,412,000

Area Sq km 1,483 sq km 2

Literacy Rate % 81.82 %

Literacy Rate - Male % 83.63%

Literacy Rate - Female % 60.28%

General Characteristics of the Markets

Delhi is a densely populated medium sized city

Has a good youth population by virtue of the presence of several

industries and other offices.

But there are only a few mid-sized markets and only few potential

outlets

The markets are modern and developed.

There is sufficient awareness among consumers regarding new

innovations in the field of commerce and industry.

Purchasing power of the territory is also good

The markets are small but moderately good.

MARKET PROFILE-GURGAON

39



Geographical Area Sq. Km. 220

Population Lac.& Crore 5,73,542

Population Density Per Sq. Km. 331

Literacy Rate %77 % Population Literate.


Gurgaon is a huge market in terms of size and has around 25 market

places

Few markets are pro middle class and few exclusively cater to the elite

class

This city is an ideal combination of traditional culture and

modernization

It has got a high purchasing power

Youth and old age person are found more in this city.

Mostly all the call centres of big MNCs are in this city.

40

MARKET PROFILE-NOIDA



Population Lac./Crores 293,908

Area Sq km 203.16sq km 2

Literacy Rate % 68 %

Literacy Rate - Male % 74%

Literacy Rate - Female % 61%


The city makes for a good market place but the mostly there are small,

crowded, traditional markets

There are many offices and many of the persons are working in these

offices so this city has good potential for the product placement.

The persons here are much aware about the ULIPs than any other city.

But there are only a few mid-sized markets

The city and its consumers are growing up because of the growing

industry.

41

MARKET PROFILE-GREATER NOIDA



Population Lac./Crores 1,73,542

Area Sq km 173.16sq km 2

Literacy Rate % 68 %

Literacy Rate - Male % 74%

Literacy Rate - Female % 61%


There are many offices and many of the persons are working in these

offices so this city has good potential for the product placement.

The persons here are much aware about the ULIPs than any other city.

But there are only a few mid-sized markets

The city and its consumers are growing up because of the growing

industry.

42

ANALYSIS AND CONCLUSIONS OF SURVEY 2

ESTIMATION OF MARKET POTENTIAL USING Z-TEST

In order to estimate the population proportion who were interested in ULIP I am using Z-test and during this I have taken a confidence level of 95% to determine the population proportion. I have taken an assumption in this also because it was very difficult for me to take the original data from the new census report i.e. many of the income information is included in that report and also the population proportion which I am calculating is for the whole of population but our sample starts from 20 years so these calculations are according to whole population.

P = Population Proportionp^= Sample Proportion=%age who are interestedq^= (1-p^)n= Size of SampleConfidence Level =95%Z at 95% = 1.96

By Using the Formula for Z-Test i.e.

DELHI

p^ =%age who are interested =60/70=8q^ = 15Z= 1.96

P = 85 ±1.96 √85×1570

P=85±1.96 x 4.26P=85±8.37 P= {76.63%, 93.37 %}

43

P = p^ ± Z √ p q̂ ¿̂n

¿

Therefore ULIP can be found popular among 76.63 % to 93.37% of population

above 21 years of age and above 2 lacs income group in Delhi

GURGAON

p^ =%age who are interested = 55/70=78q^ = 22Z= 1.96

P = 78 ±1.96 √78×2270

P=78±1.96 x 4.95P=78±9.70 P= {68.30 %, 87.70%}

Therefore ULIP can be found popular among 68.30 %to 87.70%of population above 21 years of age and above 2 lacs income group in Gurgaon.

NOIDA

p^ =%age who are interested = 52/70=74q^ = 26Z= 1.96

P = 74 ±1.96 √74×2670

P=74±1.96 x 5.24P=74±10.27 P= {63.63 %, 84.27%}

Therefore the market potential for the region of Noida ranges from 63.63 %, to 84.27%

44

GREATER NOIDA

p^ = 80q^ = 20Z= 1.96

P = 80 ±1.96 √80×2070

P=80±1.96 x 4.78P=80±9.37 P= {70.63 %, 89.37%}

Therefore ULIP can be found popular among 70.63% to 89.37% of population above 21 years of age and above 2 lacs income group in Greater Noida.

45

ESTIMATION OF MARKET POTENTIAL USING CHI-SQUARE TEST

We have segregated the NCR region into four parts namely; Noida, Gurgaon, Greater Noida and Delhi respectively. The table below represents the response of the people in the various regions.

Sample response concerning ULIP preference:

Noida Gurgaon Greater Noida

Delhi Total

Number who prefer

to have ULIP

52 55 56 60 223

Number who do not prefer to have ULIP

18 15 14 10 57

Total number

sampled in each

region

70 70 70 70 280

Suppose we find out the proportion of people who prefer to have ULIP:

Pn Proportion in Noida who prefer ULIP

Pg Proportion in Gurgaon who prefer ULIP

Pu Proportion in Greater Noida who prefer ULIP

Pd Proportion in Delhi who prefer ULIP

Let:

Ho: Pn= Pg=Pu=Pd Null hypothesis

46

H1: Pn, Pg, Pu and Pd are not all equal Alternate Hypothesis

Combined proportion who prefer ULIP = 223/280 = 0.8

Proportion of people who are interested in ULIP in each of the four regions:


Delhi

Total number sampled 70 70 70 70

Estimated proportion who

prefer ULIP 0.8 0.8 0.8 0.8Number

expected to have ULIP 56 56 56 56


Estimated proportion not preferring ULIP 0.2 0.2 0.2 0.2

Number expected not to

buy ULIP 14 14 14 14

47

Comparison of expected and observed frequencies of Sampled Data:


Delhi

Frequency preferring to invest in

ULIPObserved Frequency

52 55 56 60

Expected Frequency

56 56 56 56

Frequency preferring

not to invest in

ULIPObserved Frequency

18 15 14 10

Expected Frequency

14 14 14 14

The Chi-Square Statistic:

fo fe fo-fe (fo-fe)^2 (fo-fe)^2)/fe

52 56 -4 16 0.2855 56 -1 1 0.0156 56 0 0 060 56 4 16 0.2818 14 4 16 1.1415 14 1 1 0.0714 14 0 0 010 14 -4 16 1.14

Total= 2.92

As the value at 3 degrees of freedom and 95% confidence interval is 0.352 which is much less than the calculated value that is 2.92.

48

Thus, our Null hypothesis is rejected that is the proportion of people interested in investing in ULIP is not the same for all the four regions.

Dependence of Age and Preference:

If we try to find out that if there is any relation between age and preference for ULIP, we find the tabulated data as follows:

Crosstabs:

Null Hypothesis: There is no association between age and preference of ULIP.

Alternative Hypothesis: There is association between age and preference of ULIP.

Case Processing Summary

Valid Missing Total

N Percent N Percent N Percent

Age * Preference 280 100.0% 0 .0% 280 100.0%

Age group categories are:-

a) 21-30 yrs

b) 31-40 yrs

c) 41-50 yrs

d) >50 yrs

49

Age * Preference Cross tabulation Count

Yes/no Total

Yes No

>50/21-30/31-40/41-50 21-30 102 25 127

31-40 59 18 77

41-40 27 14 41

>50 34 1 35

Total 222 58 280

In the above table we are studying the cross tabulations between age and preference either to go for ULIP or not.

Chi-Square Tests

Suppose we find out the proportion of people who prefer to have ULIP:Pa Proportion in age group 21-30 who prefer ULIPPb Proportion in age group 31-40 who prefer ULIPPc Proportion in age group 41-50 who prefer ULIPPe Proportion in age group >50 who prefer ULIPTotal proportion of interested people = 224/280= 0.8

Age group 21-30 31-40 41-50 >50Total number

sampled 127 77 41 35Estimated

proportion who

50

prefer ULIP 0.8 0.8 0.8 0.8Number expected

to have ULIP102 62 33 28


Estimated proportion not preferring ULIP 0.2 0.2 0.2 0.2

Number expected not to buy ULIP

25 15 8 7

Fo Fe fo-fe (fo-fe)^2 (fo-fe)^2)/fe

102 102 0 0 059 62 -3 9 0.1427 33 -6 36 1.0934 28 6 36 1.2825 25 0 0 018 15 3 9 0.614 8 6 36 4.57 7 0 0 0

Chi cal = 7.61As the value at 3 degrees of freedom and 95% confidence interval is 0.352 which is much less than the calculated value that is 7.61.Thus, our Null hypothesis is rejected and we can conclude that the preference of investment in ULIP and age group are not independent.

51

Dependence of Income and Preference:

If we try to find out that if there is any relation between income and preference to invest in ULIP, we find the tabulated data as follows:

Crosstabs

Null Hypothesis: There is no association between income and preference.

Alternative Hypothesis: There is association between income and preference.

Valid Missing Total


Income * Preference 276 98.6% 4 1.4% 280 100.0%

Income* Preference Cross tabulation Count

Yes/No Total

Yes No

Upto 2 Lacs/2-5 Lacs/5-7 Lacs/7-10 Lacs

Upto 2 Lacs

55 10 65

2-5 Lacs 97 22 119

5-7 Lacs 47 12 59

7-10 Lacs 17 8 25

> 10 lacs 6 2 8

52

Total 223 53 276

Chi-Square Tests

Suppose we find out the proportion of people who prefer to have ULIP:Pa Proportion in income group (upto 2 lacs) who prefer ULIPPb Proportion in income group (2-5 lacs) who prefer ULIPPg Proportion in income group (5-7 lacs) who prefer ULIPPc Proportion in income group (7-10 lacs) who prefer ULIPPe Proportion in income group (>10 lacs) who prefer ULIP

Total proportion of interested people = 223/276= 0.8

Income group Upto 2 lacs

2-5 lacs 5-7 lacs 7-10 lacs Above 10 lacs

Total number sampled 65 119 59 25 8


prefer ULIP 0.8 0.8 0.8 0.8 0.8Number

expected to have ULIP 52 95 47 20 6


Estimated proportion not preferring ULIP 0.2 0.2 0.2 0.2 0.2


buy ULIP 13 23 12 5 2

53

Fo fe fo-fe (fo-fe)^2 (fo-fe)^2)/fe

55 52 3 9 .17397 95 2 4 0.0447 47 0 0 017 20 -3 9 0.526 6 0 0 010 13 -3 9 0.6922 23 -1 1 .04312 12 0 0 08 5 3 9 1.82 2 0 0 0

Chi cal =3.26

As the value at 4 degrees of freedom and 95% confidence interval is 0.711 which is much less than the calculated value that is 3.26.Thus, our Null hypothesis is rejected and we can conclude that the preference of investment in ULIP and income level of the customers is not independent.

54

Dependence of Occupation and Preference:

If we try to find out that if there is any relation between occupation and preference to invest in ULIP, we find the tabulated data as follows:

Crosstabs

Null Hypothesis: There is no association between occupation and preference.

Alternative Hypothesis: There is association between occupation and preference.

Valid Missing Total


Occupation* Preference 280 100.0% 0 .0% 280 100.0%

Occupation* Preference Crosstabulation Count

Yes/No Total

Yes No

Govt Service/Student/Others/Pvt Service/Business

Govt Service 24 4 28

Student 13 1 14

Others 24 6 30

Pvt Service 107 39 143

Business 56 9 65

Total 224 56 280

55

In the above tables we have shown crosstabs between occupation and preference

We have taken the categories of

a) Government serviceb) Private Servicec) Studentd) business e) others

Chi-Square Tests

Suppose we find out the proportion of people who prefer to have ULIP:Pa Proportion in occupation group (Govt service) who prefer ULIPPb Proportion in occupation group (private service) who prefer ULIPPg Proportion in occupation group (student) who prefer ULIPPc Proportion in occupation group (business) who prefer ULIPPe Proportion in occupation group (others) who prefer ULIP

Total proportion of interested people = 224/280= 0.8

Occupation Govt service

Private service

Student Business Others



prefer ULIP 0.8 0.8 0.8 0.8 0.8Number

expected to have ULIP 22 11 24 114 52


Estimated proportion not preferring ULIP 0.2 0.2 0.2 0.2 0.2


buy ULIP 6 3 6 29 13

Fo fe fo-fe (fo-fe)^2 (fo-fe)^2)/fe

56

24 22 2 4 .1813 11 2 4 .3624 24 0 0 0107 114 -7 49 .4256 52 4 16 .304 6 -2 4 .671 3 -2 4 1.36 6 0 0 039 29 0 0 09 13 -4 16 1.23

Chi cal = 4.46

As the value at 4 degrees of freedom and 95% confidence interval is 0.711 which is much less than the calculated value that is 4.46.Thus, our Null hypothesis is rejected and we can conclude that the preference of investment in ULIP and occupation of the customers are not independent.

HENCE, WE GET AN OVERVIEW THAT THE PREFERENCE OF INVESTMENT DIFFERS AND IS SIGNIFICANTLY DEPENDENT ON AGE-GROUP, INCOME, AND OCCUPATION OF THE CUSTOMERS.

57

RECOMMENDATIONS

1. Building trust by providing the customers with adequate knowledge about the company and then the product.

2. The private players should try to establish Brand awareness and credibility especially among the senior customers so as to divert their interest from the clean sweep made by LIC and UTI.

3. The companies should target more of female consumers as they have money to invest but are completely unaware about the options available to them and ULIP should be made to look more attractive to them.

4. Adequate advertisement via appropriate media should be done by the various companies as is done in the case of mutual Funds.

5. Customers are not aware about the ULIP being offered by their own banks.So, proper counters should be there to facilitate customer awareness.

6. Certain discount charges should be made available because of the severe competition within the private players as well as the biggest threat posed by LIC and SBI.

7. ULIP is a highly untapped market and here the right strategies and hitting the bulls eye by propagating the most sought after benefit among the customers will attract most of the customers.

8. Every individual should be encouraged to do insurance planning. Life Insurance cover should be taken when young and the person is able to service the premiums. The amount of coverage depends on the requirements.

58

KOTAK AGGRESSIVE GROWTH FUND

59

KOTAK DYNAMIC FLOOR FUND

60

KOTAK DYNAMIC GROWTH FUND

61

KOTAK GUARANTEED GROWTH FUND

62

KOTAK DYNAMIC BOND FUND

KOTAK GUARANTEED BOND FUND

63

QUESTIONNAIRE ON ULIP (Unit Linked Insurance Plan)

Questionnaire No.

Sir/Madam,

This research project is a part of our curriculum. This is a general study of Insurance Plans especially ULIP & thus we seek to know only your general views about insurance companies. This is not specific to any particular company.

Please grade the following questions on the given 1 to 5 scale.

Features preferred during purchase of ULIP.

(1 – Not required at all; 5 – Very essential)

Please rate the factors in the empty cells.

Sr. No.

Factors

1 Return on Investment 1

2

3

4

5

2 Policy Features 1

2

3

4

5

3 Investment Risk 1

2

3

4

5

4 Length of Investment 1

2

3

4

5

5 Tax Savings 1

2

3

4

5

64

6 Forced Savings 1

2

3

4

5

7 Brand Equity of the company 1

2

3

4

5

8 Financial Health (Company) 1

2

3

4

5

9 Core competency of the company in that sector. 1

2

3

4

5

10 Interpersonal Skills (Sales Staff) 1

2

3

4

5

11 Influence of Relatives/Friends in investment decision making

1

2

3

4

5

12 Post Sales Services support. 1

2

3

4

5

13 Comparison with other Financial product (eg. Mutual Funds)

1

2

3

4

5

When you think of investment in Insurance, which company name immediately creeps in your mind? Rank in the order of preference.

(*: From 1 to 5; 1 is most preferred & 5 is least preferred)

While investing in an insurance policy whether the company is local or multinational affects your decision & Why?

65

Sr. No. Company Rank*

1 HDFC Life Insurance

2 ICICI Prudential

3 KOTAK Life Insurance

4 LIC

5 OTHERS

.

Thank You for your cooperation & we assure you complete confidentiality of the information you have so kindly, sincerely & patiently shared with us.

66

QUESTIONNAIRE

We are conducting a survey on the Unit Linked Insurance Plan (ULIP). We request the Respondents to provide their valuable views on the same by answering to this Questionnaire .The information provided by you will be used solely for Academic purpose and to study the present Market Potential of ULIP.

NAME: PLACE:

AGE:

a) 15-20 yrs b) 21-30 yrs

c) 31- 40 yrs d) 41-50 yrs

e) >50 yrs

GENDER:

a) Male b) Female

OCCUPATION:

a) Government Service b) Private Service

c) Business d) Student

e) Others

ANNUAL INCOME:

a) Up to 2lacs b) Between 2-5 lacs

c) 5-7 lacs d) 7-10 lacs

e) Above 10 lacs

1. Are you aware about Unit Linked Insurance Plan (ULIP)? a) Yes b) No2. Have you invested in the ULIP of any company; (i) if yes then please tick the following?

a) ICICI Prudential life insurance b) HDFC Standard Life

c) Bajaj Allianz Life Insurance d) Kotak Life Insurance

67

e) Any other (please specify)

(ii) If No, then would you like to invest in ULIP? a) Yes b) No3. What is the reason for investment in the ULIP?a) Child Education b) Child Marriagec) Pension d) Income Growthe) Tax Rebate f) 2 in 1 benefits4. What is your time horizon when investing in ULIP?a) Up to 3 yrs b) Between 4-7 yrsc) 7-10 yrs d) 10-15 yrse) Over 15 yrs5. When investing in a ULIP, what would be your preference?a) Low Risk, Low Gain b) Moderate Risk, Moderate Gainc) High Risk, High Gain d) No Risk

REFERENCES

Books:

1. Churchill & Brown; Basic Marketing Research;Thomas Publications,5th edition2. Paul Hague, Nick Hague and Carol-Ann Morgan; Market Research in Practice; Kogan

Page limited,1st South Asian edition 2004.3. Harper W.Boyd, Jr. Ralph Westfall, Stanley F. Stasch; Marketing Research; All India

Traveller Book Seller, 7th edition.4. William O. Bearden, Richard G. Netemeyer, Mary F. Mobley; Handbook of Marketing

Skills; SAGE Publications.5. “Malhotra Naresh (2002), Marketing Research”, Prentice Hall of India.6. “Kotler Philip(2004),Marketing Management”

Websites:

68

www.kotakdirect.in http://www.thehindubusinessline.com/2005/07/04/stories/2005070401261200.htm www.wikipedia.org http://www.thehindubusinessline.com/2004/09/14/stories/2004091400100900.htm www.mouthshut.com www.financeindiamart.com www.businesstoday.com www.howstuffworks.com www.google.com www.icici.com www.kotak.com www.hdfcbank.com

Personnel:

1 Mr. Dipanjan Hore2 Mr. Ajay Narang

69

http://www.howstuffworks.com/

http://www.businesstoday.com/

http://www.financeindiamart.com/

http://www.mouthshut.com/

http://www.thehindubusinessline.com/2004/09/14/stories/2004091400100900.htm

http://www.wikipedia.org/

http://www.thehindubusinessline.com/2005/07/04/stories/2005070401261200.htm

http://www.kotakdirect.in/