sonal project onnconsumer preference of ulip

8/14/2019 Sonal Project onnconsumer preference of ulip

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SUMMER TRAINING REPORT ON

CONSUMER PREFERENCE OF ULIP

(UNIT LINKED INSURANCE

POLICY )

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE

OF

MASTER OF RISK & INSURANCE MANAGEMENT

(2008-2010)

AEGON RELIGARE LIFE INSURANCE

UNDER GUIDANCE OF SUBMITTED BY

MOHD. AZAM SONAL GINODIA

(AGENCY DEV. MANAGER ) MRIM-3rd SEMAGEON RELIGARE LIFE INSURANCE ROLL NO- 24

Enrolment No.- 308578

FACULTY OF COMMERCE


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BANARAS HINDU UNIVERSITY

VARANASI


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PREFACE

I feel greatly enthuastic in presenting this

summer training report.I have tried to

present the various aspects of ULIP Products

in a detailed manner. It has been pleasure

on working on this report.

I have tried to create an understanding on

ULIP Products, how it is managed &

regulated. I have taken origin, meaning of

Insurance and various aspects of ULIP

products in which I showed Consumer

Prefernce of ULIP of 100 persons in mysurvey.

I have done my project in a very healthy

atmosphere. I learn a lot of things which I

could never have been learnt from my

theory classes.

My efforts would prove to have succeed if

this report satisfies the readers as I have

tried to do so.


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SONAL GINODIA

ACKNOWLEDGEMENT

It is a greater pleasure and privilege for me

to take the opportunity to render our deep

sense of gratitude and appreciation to Mr

Mohammad Azam (Agency Development

Manager), Mr. Dinesh Singh (Business

Manager) who has been source of inspiration

for taking up this project and for itssuccessful completion.

I would also like to place on record ourthanks to all the respondents without whosekind co-operation this project would not havebeen completed.

I also express my sincere gratitude to

Prof.O.P.RAI (Coordinator of M.R.I.M.) and

Prof.B.JHA (Dean of Faculty of Commerce)

for availing me opportunity for summer

training.


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I also acknowledge my thanks to my revered

Institute, my family members and friends for

their co-operation and encouragement.

SONAL

GINODIA

CO NTENTS

1. Synopsis

2. Research Objective

3. About Life Insurance

Brief History of Insurance Purpose & Need of Insurance

Introduction About Life Insurance Role of Life Insurance Advantages of Life Insurance

4. Insurance Regulatory & Development Authority

5. About ULIP

What is ULIP Working of ULIP Benefits of ULIP

6. About Aegon Religare

History of Aegon & Religare Leadership Team Value & Vision Management Style Investment Team & Matrix Product Range


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SWOT Analysis Ads & Competitors

7. Presentation of Data & Analysis

Research Methodology Annexure Analysis & Interpretation

8. Survey Report

Findings & Conclusion

Outlook & Potential9. Suggestions

10. Biblography

SYNOPSIS

CONSUMER PREFERENCE OF ULIP

This project as a part of training has been prepared on the topic

Customers Perspective of Unit Linked Insurance Plans. The report

highlights all the aspects of a ULIP customer. It begins from the history of

insurance and covers the growth of life insurance business in India. Then it

throws light upon the pivot of the current life insurance industry, i.e. ULIP.

ULIPs can be said as the summation of insurance policy and mutual funds.

Hence they not only provide the risk cover but are also providing the

capital market gains to the insured. The project also provides the details of

the various ULIPs provided by AEGON Religare Life Insurance viz. Star

Child Plan, Protect Gain, Level term and many more. It provides the details

regarding the marketing channel and the promotion and advertisement

campaign of the company. It also lays emphasis on the fact that life agents

are the blood regulating organ in a life insurance company.


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INTRODUCTION

ABOUT

LIFEINSURANCE


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WHY IS INSURANCE NECESSARY?

Why insurance is necessary? The question contains the answer within itself.

After all, life is fraught with tensions and apprehensions regarding the

future and what it holds for the individual. Despite all the planning and

preparation one might make no one can accurately guarantee or predict how

or when death might result and the circumstances that might ensue in itsaftermath.

We are not saying that life and existence are constantly fraught with danger

and uncertainty. But then it is essential that you plan for the future. The

changes for a fatality or an injury to occur to the average individual may

not be particularly high but then no one can really afford to completely

disregard his or her future and what it holds.

People generally regard insurance as a scheme when and where you have to

lose a lot to gain a little. Nevertheless, insurance is still the most reliable

tool an individual can use to plan for his future.

PURPOSE & NEED OF INSURANCE:

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

accidental occurrences. Such possible occurrences are called perils. Fire,

flood, breakdown, lightening, earthquake, etc. are perils. If such perils can

cause damage to the assets, we say that the asset is exposed to that risk.

Perils are the events. Risks are the consequential losses or damages.

The risk to a owner of a building, because of the peril of earthquake, maybe a few crores of rupees, depending on the cost of the building and the

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

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

contingency that it may happen. There has to be an uncertainty about the

risk. Insurance is relevant only if there are uncertainties. If there is no

uncertainty about occurrence of an event, it cannot be insured against. In

case of human being death is certain, but the time of death is uncertain. In

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

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

the asset. It does not prevent its loss due to the peril. The peril cannot beavoided through insurance. The peril can sometimes be avoided, through


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better safety and damage control management. Insurance only tries to

reduce the impact of risk on the owner of the asset and those who depend

on that asset. It only compensates the losses- and that too, not fully. Only

economic consequences can be insured. If the loss is notfinancial,insurance

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

affection of parents, leadership of managers, sentimental attachments to

family heirlooms, innovative and creative abilities, etc.

LIFE INSURANCE MARKET IN INDIA

Many may not be aware that the life insurance industry of India is as old as

it is in any other part of the world. The first Indian life insurance company

was the Oriental Life Insurance Company, which was started in India in

1818 at Kolkata.

A number of players (over 250 in life and about 100 in non-life) mainly

with regional focus flourished all across the country. However the

government of india, concerned by the unethical standard adopted by some

player against the consumers, nationalized the industry in two phases in

1956(life) and in 1972(non-life).

The insurance business of the country was then brought under two public

sector companies, Life Insurance Corporation of India (LIC) and General

insurance Corporation of India (GIC).

In line with the economic reforms that were ushered in India in early

nineties, the Government set up a committee on reforms (popularly called

the malhotra committee) in April 1993 to suggest reforms in the insurance

sector. The Committee recommended throwing open the sector to private

player to usher in competition and bring more choice of the consumers. The

objective of the insurance to penetration of insurance as a percentage of

GDP, which remains low in India even compared to Insurance Regulatory

and Development Authority (IRDA) Bill in 1999. IRDA was set up as an

independent regulatory, which has put in place regulations in line withglobal norms. So far in the private.


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ROLE OF LIFE INSURANCE

1. Life insurance as Investment

Insurance is an attractive option for investment. Which most people

recognize the risk hedging and tax saving potential of insurance, many are

not aware of its advantages as an investment option as well. Insurance

products yield more compared to regular investment options and this is

besides the added incentive offered to insurers.

You cannot compare an insurance product with other investment schemes

for the simple reason that it offers financial protection from risks,

something that is missing in non-insurance products. In fact, the premium

you pay for an insurance policy is an investment against risk. Thus before

comparing with other schemes, you must accept that a part of the total

amount invested in life insurance goes towards providing for the risk cover,

while the rest is used for savings.

1. Life insurance as Risk cover

First and foremost, insurance is about risk cover and protection financial

protection, to be more precise to help outlast lifes unpredictable losses.

Designed to safeguard against losses suffered on account of any unforeseen

event, insurance provides you with that unique sense of security that no

other from of investment provides. By buying life insurance, you buy peace

of mind and are prepared to face any financial demand that would hit the

family in case of an untimely demise.

To provide such protection, insurance firms collect contributions from

many people who face the same risk. A loss claim is paid out of the total

premium collected by the insurance companies, who act as trustees to the

monies.

Insurance also provides a safeguard in the case of accidents or a drop in

income after retirement. An accident or disability can be devastating, and

an insurance policy can lend timely support to the family in such times. It

also comes as a great help when you retire, in case no untoward incidenthappens during the term of the policy.


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1. Life insurance as Tax planning

Insurance serves as an excellent tax saving mechanism too. The

Government of India has offered tax incentives to life insurance products in

order to facilitate the flow of funds into productive assets. Under section

80(c) of Income Tax Act 1961,an individual is entitled to a rebate of

Rs.1Lakh on the annual premium payable on his/her life and life of his/her

children or adult children. The rebate is deductible from tax payable by the

individual or a Hindu Undivided Family (HUF), the rebate is deductible

from the tax liability of an individual or a Hindu Undivided Family.

ADVANTAGES OF LIFE INSURANCE:-

Life insurance has no competition from any other business. Many people

think that life insurance is an investment or a means of saving. This is not a

correct view. When a person saves, the amount of funds available at any

time is equal to the amount of money set aside in the past, plus interest.

This is so in a fixed deposit in the bank, in national saving certificates, in

mutual funds and all other saving instruments. If the money is invested in

buying shares and stocks, there is the risk of the money being lost in

fluctuation of the stock market even if there is no loss, the available moneyat any time is the amount invested plus appreciation. In life insurance,

however the fund available is not the total of the savings already made

(premium paid),but the amount one wished to have at the end of the saving

period (which is the next 20 or 30 years).the final fund is secure from the

very beginning. One has to pay for it only as long as one life or for a lesser

period if so chosen.

There is no other scheme which provides this kind of benefit therefore life

insurance has no substitute. Even so, a comparison with other form of

saving will show that life insurance has the following advantages:-

In the event of death, the settlement is easy. The heirs can collect the

moneys quicker, because of the facility of nomination and assignment.

The facility of nomination is now available for some bank accounts.

There is a certain amount of compulsion to go through the plan of savings.

In other forms, if one changes the original plan of savings, there is no loss.

Creditor can not claim life insurances moneys. They can be protected

against attachment by courts.

There are text benefits, both in income tax and capital gains. Marketability

and liquidity are better. A life insurance policy is property and can be

transferred or mortgaged. Loan can be raised against the policy.


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The following tenets help agent to believe in benefit of life insurance. Such

faith will enhance there determination to sell and their perseverance.

Life insurance is not only the best possible way for family protection. There

is no other way.

Insurance is the only way to safeguard against the un predictable risks ofthe future. It is unavoidable.

The value of human life is far greater than the value of property only

insurance can preserve it.

Life insurance is not surpassed by many other savings or investment

instruments, in terms of security, marketability, stability of value or

liquidity.Insurance, including life insurance, is essential for the

conservation of many businesses, just as it is in the preservation of homes.

Life insurance enhances the existing standards of living.

Life insurances help people live financially solvent lives.

Life insurance perpetuates life, liberty and the pursuit of happiness.


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THE INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passage of the

IRDA Bill in Parliament in December 1999. The IRDA since its

incorporation as a statutory body in April 2000 has fastidiously stuck to its

schedule of framing regulations and registering the private sector insurance

companies

The other decision taken simultaneously to provide the supporting systemsto the insurance sector and in particular the insurance companies was the

launch of the IRDAs online services for issue and renewal of licenses to

agents.

The approval of institutions for imparting training to agents has also

ensured that the insurance companies would have a trained workforce of

insurance agents in place to sell their products, which are expected to be

introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a

framework of globally compatible regulations. In the private sector 12 life

insurance and 6 general insurance companies have been registered.


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A BOUT UNIT LINKED

INSURANCE

PLAN(ULIP)


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ULIP

What is ULIP?

A plan which gives complete clarity about the various charges deductedand why its being deducted and so how your fund will grow over time.

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

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

with mutual funds, investors in ULIPs is allotted units by the insurance

company and a net asset value (NAV) is declared for the same on a daily

basis.

Similarly ULIP investors have the option of investing across various

schemes similar to the ones found in the mutual funds domain, i.e.diversified equity funds, balanced funds and debt funds to name a few.

Generally speaking, ULIPs can be termed as mutual fund schemes with an

insurance component.

However it should not be construed that barring the insurance element there

is nothing differentiating mutual funds from ULIPs.

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

safety of insurance protection with wealth creation opportunities. In ULIPs,

a part of the investment goes towards providing you life cover. The residual

portion of the ULIP is invested in a fund which in turn invests in stocks or

bonds; the value of investments alters with the performance of the

underlying fund opted by you.

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

the savings element are distinguishable, and hence managed according to

your specific needs. In this way, the ULIP plan offers unprecedented

flexibility and transparency.


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Working of ULIPs

It is critical that you understand how your money gets invested once you

purchase a ULIP:

When you decide the amount of premium to be paid and the amount of life

cover you want from the ULIP, the insurer deducts some portion of the

ULIP premium upfront. This portion is known as the Premium Allocation

charge, and varies from product to product. The rest of the premium is

invested in the fund or mixture of funds chosen by you. Mortality charges

and ULIP administration charges are thereafter deducted on a periodic

(mostly monthly) basis by cancellation of units, whereas the ULIP fund

management charges are adjusted from NAV on a daily basis.

Since the fund of your choice has an underlying investment either in

equity or debt or a combination of the two your fund value will reflect the

performance of the underlying asset classes. At the time of maturity of your

plan, you are entitled to receive the fund value as at the time of maturity.

The pie-chart below illustrates the split of your ULIP premium:

One of the big advantages that a ULIP offers is that whatever be your

specific financial objective, chances are that there is a ULIP which is just

right for you. The figure below gives a general guide to the different goals

that people have at various age-groups and thus, various life-stages.


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BENEFITS OF ULIP


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Unit linked plans provide an opportunity for the discerning investor to

benefit from the return available in their capital market without going for

direct investments in capital market.

CUSTOMER SATISFACTION

MARKET TO YOUR OWN CUSTOMER:Giving a lot of thoughts to your marketing program aimed at current

customer is one aspect of building customers royality.

When you buy a new car, many dealer will within minutes try to sell you an

extended warranty, an alarm system, and may be rust proofing. It often a

very easy sale and costs a dealer almost nothing to make. Are there

additional products you can sell your customers?

USE COMPLAINTS TO BUILD BUSINESS:When customers arent happy with your business they usuallywont

complain to you-instead, theyll probably complain to just about everyone

else them and take their business to your competition next time. Thats

why increasing number of business are making follow-up calls of mailing

satisfaction questionnaires after the sale is made. They find that if they

promptly follow up resolve a customers complaint, the customer might be

even more likely to do business then the average customer who didnt have

a complaint.

In many business situations, the customer will have many more interactions

after the sale with technical, service, or customer support people then they

did with the sales people. So if youre serious about retaining customers or

getting referrals, these interactions are the ones that are really going to

matter. They really should be handled with the same attention and focus

that sales calls get because in a way they are sales calls for repeat business.

REACH OUT TO YOUR CUSTOMER:Contactcontactcontact with current customer is a good way to Buildtheir loyality. The more the customer sees someone from your firm, the

more likely youll get the next order. Send Christmas cards, see them at

trade shows, stop by to make sure everythings okay. Send a simplenewsletter to your customers-tell them about the great things that are


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happening at your firm and include some useful information for them. Send

some copies of any media clippings about your firm. Invite them to free

seminars. The more they know about you, the more they see you as

someone out to help them, the more they know about your

accomplishments-the more loyal a customer they will be.

Building customer loyality will be a lot easier if you have a royal

workforce-not at all a given these days. It is especially important for you to

retain those employees such as sales peoples, technical support, and the

customer-service people. Many companies give a attention to retaining

sales people but little to support people.ive have been fortunate to have the

same great people in customer service for years and the compliment from

customers make it clear that they really appreciate specific people in our

service functions.

it takes a lot less money to increase your retention of currentcustomers then to find new ones-but to know I dont give it as much

effort as I should because it does take a lots of energy and effort!

LIFE INSURANCE IS A WAY TO LIFE

ULIPs ARE SAFE SECURITIES OF IVESTMENTS

AEGON Religare ULIPs invest across different asset classes-Equity

debt & money market.

Stringent investment norms mandated and monitored regularly by IRDA.

ADVANTAGES OVER FINANCIAL INSTRUMENTS

ULIPs are long-term protection-cum investment vehicles.

Offer long- term financial solutions for multiple needs.

FLEXIBILITIES OFFERED


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Choice of 4 funds with investment in diversified asset classes.

Choice of switching investment a cross funds.

Co. manages your hard earned money (you need not be an Expert

financial investor).EXISTING TRENDS

Longer the time spent in financial markets, higher are the Chances of reapingbenefits. If we consider a 10 yrs period from 1998 till date, equity returns haveout performed other investment options, such as Gold, silver& governmentbonds.


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ABOUT AEGONRELIGARE


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O VER 160 MILLIONS EXPERIENCE AND PROTECT 40 MILLIONS

LIVES


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160 years of experience in the insurance business.

Ranked the 5th largest insurance company in the world on revenues*

Presenting 20 countries throughout the Americas, Europe, and Asia.

4 crore customers worldwide.

Track record of finding beneficiaries of policies &settling claims.

Even in the wake of crisis in the financial world rated AA#by rating agency.


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OneofIndias leading integrated financial services group.

Services in retail, wealth & institutional spectrums.

Presence in more them 460 cities &towns &more than 1550

locations.

New Initiatives

! Indias first holistic arts initiative including an art fund

! Indias first Film Fund

! Indias first 360 degree content rich online investment portal

! Launched the Corporate Services Group-a centralized advisory-ledReferral group

! Launched Banc invest Channel, a co-managed distribution channeloffering3-in-1 product (bank, trading and demat account)

! Inked Indias first wealth management joint venture with globalmajorMacquire Bank

! The latest feather in the Religare hat is their foray into the LifeInsurance market in partnership with AEGON


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OVERVIEW

AEGONs businesses serve over 40 million customers in over 20 markets throughout theAmericas, Europe and Asia, with major operations in the United States, the Netherlands and

the United Kingdom. With headquarters in The Hague, the Netherlands, AEGON companies

employ almost 32,000 people worldwide. The companys common shares are listed on four

stock exchanges: Amsterdam, London, New York and Tokyo. It manages EUR 351 billion in

revenue generating investments. AEGON has more than 160 years of experience with its

roots going back to 1844. It holds 26% equity in our company.

About Religare Enterprises Limited

Religare Enterprises Limited (REL) is one of the leading integrated financial services groupsof India. REL's businesses are broadly clubbed across three key verticals - the Retail,Institutional and Wealth spectrums, catering to a diverse and wide base of clients. REL offersa multitude of investment options and a diverse bouquet of financial services with its panIndia reach in more than 1800* locations across more than 490* cities and towns.

REL also currently operates from 10 countries globally following its acquisition of London'soldest brokerage & investment firm, Hichens, Harrison & Co. plc. With a view to expand,

diversify and introduce offerings benchmarked against global best practices, Religare haspartnered with Australia based financial services major-Macquarie for its wealth managementbusiness and with Vistaar Entertainment to launch India's first SEBI approved Film Fundoffering a unique alternative asset class of investments. REL holds 44% equity in ourcompany.

Bennett, Coleman & Co. Ltd. (BCCL), part of the mammoth Times Group, is Indiaslargest media house. It reaches out to 2468 cities and towns all over India. The group ownsand manages powerful media brands like The Times of India, The Economic Times,Maharashtra Times, Navbharat Times, Femina, Filmfare, Grazia, Top Gear, Radio Mirchi,

Zoom, Times Now, Times Music, Times OOH, Private Treaties and indiatimes.com. All ofits brands are multinational in outlook, traditional at heart and national in spirit. From thevery first edition on November 3, 1838 the mammoth BCCL Group has come a long way. Byway of the innovative venture of Times Private Treaties the BCCL Group holds 30% equityin our company.


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BOA R D OF DIRECTORS

CHIEF EXECUTIVE OFFICER

RAJEEV JAMKHEDKAR

CHIEF FINANCIAL OFFICER & APPOINTED ACTUARY

K.S GOPALAKRISHNAN

CHIEF INVESTMENT OFFICER

SAIBAL GHOSH

CHIEF MARKETING OFFICER

YATEESH SRIVASTAVA

AUDIT RISK & COMPLAINCE OFFICER

DEBMALYA MAITRA


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Value and Vision


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S avings & Investment Products in Indian Market

Art of Growing Money


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AEGON Religare Star Child Plan

To be able to meet your childrens needs and aspirations is what you always strive towards.

Life, if systematically managed, can keep changing for the better leading to a more secure

future for your children. AEGON Religare Star Child Plan aims to help you in doing just that.

It not only makes provisions for your childrens future but also ensures that their future

remains secured.

This plan not only make provisions for your childs future but also ensures that their future is

remains secures in the event of your unfortunate demise, we assure a lump sum premium and

waive off of future premium till maturity.

BENEFITS

Choice of investment fund.

Option of withdrawals.

Option of transfer fund Option to top-up investments

Liquidity as per requirements

Tax benefit

Get the dual benefit of securing your family financially as well as saving for a brighter future

with our ULIP plans. You've always worked hard to give your family nothing but the best.

But growing expenses, never-ending price hikes and inflation make most of your plans

difficult. Which is why, it becomes all the more important to invest and set aside that little


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something for whatever may come your way. AEGON Religare Premium Gain Plan helps

maximise your investments and gives you the best possible returns


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roller coasterleading only t


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The Invest Protect Advantage

It will not only help you gain from your investments but will also minimize the risk on your

returns as your policy nears maturity.

It aims to protect your money by systematically shifting the units from Enhanced Equity

Fund to the Secured Fund during the last three policy years.

BENEFIT

Choice of investment funds

Option of withdrawals

Option to transfer Funds

Option to top-up investments

Tax benefit


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Have money but no time to spend it? Ensure that it is not the other way round tomorrow.

Know how much pension you would require when you retire and start saving for your

retirement today.

AEGON Religare Pension Plan

Today, you are living comfortably. There is a regular inflow of income and your bills are paid

on time. However, the future will be different. Rising inflation will affect the price of the

smallest of items. AEGON Religare Pension Plan provides you with a regular pension that

will help you take care of the much needed basic necessities, post-retirement.

AEGON Religare Intra Pension Plan

Your family looks to you for support and strength at all times. Whether

markets crash, prices rise or unforeseen events run riot with your budgets, you manage to

come out of such situations on top. All your life, you strive hard and make sure you earn

enough and more to ensure that you and your family get the best of everything. Why should

your post-retirement life be any less?

It will not only help you gain from your investments but will also minimize the risk on yourreturns as your policy nears maturity.

It aims to protect your money by systematically shifting the units from Enhanced Equity

Fund to the Secured Fund during the last three policy years.


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BENEFIT

Choice of investment funds

Option of withdrawals

Option to transfer Funds

Option to top-up investments

Tax benefit

Critical Illness Rider

Accidental Death, Disability, Dismemberment Rider


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SWOT ANALYSIS

STRENGTH WEAKNESS

Focus on in only one product. Loose departmental

Structure in AEGON

RELIGARE life insurance

Strong product knowledge brand equity.

Worldwide distribution network.

Financially strong stability to support Being a new entrant in india Business.

Awareness is low about co.

Advance information technology in (in small cities).

extensive use.

Has strong commands &popularity in No decentralization ofAEGON

pension plan. RELIGARE life insurance.

Joint venture with bannett&colemanGives Prestige to popularity of co.

OPPURTUNITY THREATS

Wide geographical reach. Close competition in premium

Rates and commission.

Non-life penetration is low in india Too many approaches of

A potential growth area of the Competitors.

future.


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Ads


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MAJOR COMPETETOR OF AEGON RELIGARE

LIFE INSURANCE COMPANY LIMITED

1. LIC

2. BIRLA SUN LIFE INSURANCE COMPANY LIMITED

3. BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED

4. HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

5. TATA AIG LIFE INSURANCE COMPANY LIMITED

6. MAX NEW YORK LIFE INSURANCE COMPANY LIMITED

7. OM KOTAK MAHINDRA LIFE INSURANCE COMPANY

LIMITED

8. AVIVA LIFE INSURANCE COMPANY LIMITED

9. ING Vysya LIFE INSURANCECOMPANY LIMITED

10.SBI LIFE INSURANCE COMPANY LIMITED

11. METLIFE INDIA LIFE INSURANCE COMPANY

LIMITED


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PRESENTATION OF

D AT A & ANALYSIS


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METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically.Research comprises defining and redefining problems, formulating hypothesis or suggested

solution, collecting, organizing and evaluating data making deductions and research

conclusions to determine whether they fit the formulating hypothesis.

Data required- To gain knowledge about the Work Life Balance is an issue with thecompany and also if it an issue then look into that areas.

1. DATA TYPE:

Primary Data

Personal interview Questionnaire Marketing research

Secondary Data

Concerned Data Internet

We have collected primary data in the form of Questionnaire

2. DATA SOURCE:- Data is collected from:- Data is mainly collected from the AEGON Religare website

3. SAMPLING:A Probability Sampling Method is used.

The sample design is random i.e. the probability of selection of every member is equal.

4. RESEARCH DESIGN:

It is the arrangement of conditions for collection and analysis of data in a manner thataims to combine relevance to the research purpose with economy in procedure.

5. RESEARCH APPROACH: Survey Questionnaires

6. ANALYSIS AND INTERPRETATION OF DATA: It was carried on through

-Tabulation of collected data.

Conclusions are drawn from the collected data to accomplish objectives.


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ANNEXURE

CONSUMERS PREFERENCE OF ULIP AT VARANASI

Name:______________________

Age: _______________________

Gender: ____________________

Occupation: _________________

Marital status: _______________

QUESTIONNAIRE

1. Have you taken any insurance policy?

YES [ ] NO [ ]

2. Is that ULIP or others?

ULIP [ ] OTHERS [ ]

3. Do you know about ULIP plan?

YES [ ] NO [ ]

4. From which sector would you like to buy ULIP product?

PUBLIC [ ] PRIVATE [ ]

5. What is your purpose to invest in ULIP plan?

RISK COVER [ ] HIGH RETURN [ ] TAX SAVING [ ]

6. Where you will prefer to invest next time?

ULIP [ ] MUTUAL FUND [ ]

7. What is your mode of payment of premium?

YEARLY [ ] HALF YEARLY [ ] QUARTERLY [ ] MONTHLY [ ]

8. For whom will you take ULIP?

SELF [ ] CHILDREN [ ] FAMILY [ ]

9. Which type of ULIP product do you have?

CHILD PLAN [ ] PENSION PLAN [ ] SAVING PLAN [ ]

10. What kind of service you look for in an insurance co.?

CUSTOMERCENTRICITY [ ] EASY TO ACCESS A/C [ ] SERVICE ON

INTERNET [ ] SERVICE ON PHONE CALL [ ]

11. Are you satisfied with different services provided by insurance companies?

YES [ ] NO [ ]

12. Are you satisfied with charges of ULIP Plan?

YES [ ] NO [ ]


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ANALYSIS & INTERPRETATION

1. Have you taken any insurance policy?

OPTION RESPONSES PERCENTAGE

YES 75 75%

NO 25 25%

TOTAL 100 100%

INTERPRETATION:- This Pie-Chart shows that people are more

interested in utilizing their saving in buying insurance policy than

in other sources.

2. Is that ULIP or others?


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INTERPRETATION:- This Pie-Chart show that people are familiar with

ULIP Plan and a large no. of people have invested in ULIP.

3. Do you know about all features of ULIP plan?


ULIP 75 75%

OTHERS 25 25%

TOTAL 100 100%


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YES 35 35%NO 65 65%

TOTAL 100 100%

INTERPRETATION:-This Pie-Chart show that people are still unaware

about ULIP features .

4. From which sector would you like to buy ULIP product?


PRIVATE 45 45%

PUBLIC 55 55%

TOTAL 100 100%


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INTERPRETATION:-This Pie-Chart show that people trust on Public

Sector more than Private Sector in investment.

5. What is your purpose to invest in ULIP plan?

OPITION RESPONSES PERCENTAGE

RISK COVER 20 20%

HIGH RETURN 30 30%

TAX SAVING 50 50%

TOTAL 100 100%


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INTERPRETATION:-This Pie-Chart show that people are interested in

investing for tax saving than for risk cover and high return.

6.

In

which you will prefer to invest next time if you have options?


ULIP 19 19%

MUTUAL FUND 21 21%

INVESTMENT 33 33%

TRADITIONAL PLAN 27 27%

TOTAL 100 100%


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INTERPRETATION:- This Pie-Chart show that people are more

interested in investment in banks and Nsc than in Ulip and mutual fund.

7. Which mode of premium payment will you prefer?


YEARLY 46 46%

HALF YEARLY 13 13%

MONTH 27 27%

QUARTER 14 14%

TOTAL 100 100%


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INTERPRETATION:- This Pie-Chart show that yearly paymentof premium is more prefered by investors in order to avoid

trasaction and other charges.

8. For whom will you prefer to purchase ULIP POLICY?


CHILDREN 37 37%

SELF 23 23%

FAMILY 40 40%

TOTAL 100 100%

INTERPRETATION:- This Pie-Chart show that people prefer to invest in

those policy which give security to their family than thy think of ourselves.


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9. Which type of ULIP product you have?


CHILDREN 27 27%

SAVING 43 43%

PENSION 30 30%

TOTAL 100 100%


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INTERPRETATION:- In this figure it show that people are more

concerned about saving their income through tax exemption than other

things.

10. What is the kind of services that you look for in an insurance co.?


CUSTOMER-CENTRICITY 27% 27%

EASY TO ACCESS A/C 23% 23%

SERVICE ON INTERNET 12% 12%

SERVICE ON PHONE CALLS 16% 16%

TRANSPARENCY 12% 12%

TOTAL 90 90%

INTERPRETATION:- In this figure I found that people are moreconcerned about the service of customer centricity than other services.


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1. Are you satisfied with different services provided by Insurance Company?


YES 70 70%

NO 30 30%

TOTAL 100 100%

INTERPRETATION:- This Pie-Chart show that people are satisfied with

the services provided by insurance company and are also interested in

taking policy.


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12. Are you satisfied with charges of ULIPs Plans offered

by other Life Insurance Cos?


YES 45% 45%

NO 55% 55%

TOTAL 100 100%

INTERPRETATION:- This Pie-Chart show that people are not satisfied

with the hidden charges charged by insurance company they are required

to reduce and disclose all the charges.

FINDINGS,CONCLUSIONS

AND SUGGESTIONS


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CONCLUSION

Only 35% of respondents are aware about all the feature and terms & condition of ULIP

50% of respondents want to purchase ULIP product for tax saving & 30% for high return &

20% for risk cover

55% of the respondents prefer to invest in public sector & 45% in private sector

46% of the respondents prefer to one time, 13% half yearly, &27% monthly payment &14%

quarterly premium payment.

33% of the respondents prefer to invest in investment, 27% in traditional plan, 21% wants in

mutual fund &19% in ULIP.


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LIMITATIONS

The following limitation may arise during the summer training:-

When I used to make any call people generally makes false promises

Some respondents were not at time after called them so had to be re-contacted

The period was limited(a week) for conducting survey

The responses were totally depends on the people

The result was affected due to sometime unavailability of the authorize

Person of the company

To conduct a survey in the season of summer was too complicated.


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SUGGESTIONS:

The company should make more product on the basis of tax benefit

The company should analysis its ULIP product

The company should more focus on child plan.


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OUTLOOK

Indian insurance market is expected to be around $25 billion by 2010

Expected CAGR of over 20%p.a.

POTENTIAL

Largely untapped market: about 0.6% of the global market for 17% of the worlds population

Nearly 70% of the Indian population is without Life, Health and Non-Life Insurance.

Insurance penetration is low at 2.9% as compared to the world average of over 8%.

Non-Life penetration is even lower-less than 1% in 2004

Per capita life insurance premium in india in 2004 was $16 as compared to the world average

of $292.

Strong economic growth with increase in affluence and risk awareness leading to rapid

growth in the Insurance sector.

Many more international players including AXA have announced plans to enter India.

Investment opportunities exist in both life and Non-Life segments.

Total estimated investment opportunity of $4-5 billion.

Source: IRDA.


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sonal project onnconsumer preference of ulip

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