vinod kumar pgdhrm

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A

PROJECT REPORT

ON

EMPLOYEE JOB SATISFACTION

Submitted in partial fulfillment for the award of Degree of

POST GRADUATE DIPLOMA IN HUMAN RESOURCE MANAGEMENT

Of

Sikkim Manipal UniversitySession 2012-13

Submitted BY

VINOD KUMAR

ROLL NO: 1208024230

PGDHRM

SUBMITTED TO

ZEENU IT EDUCATION


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MUNGER

A

Project Report

on

EMPLOYEE JOB SATISFACTION with special

reference to ICICI Bank A Study in Patna City.

Submitted in partial fulfillment for the award of

PGDHRM2012-2013

GUIDED BY: SUBMITTED BY:

Mr. Abhishek Tiwari

Regional Manager PGDHRM IInd Sem

SIKKIM MANIPAL UNIVERSITY

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Certificate

This is to certify that the project work done on EMPLOYEE

JOB SATISFACTION with special reference to ICICI BANK

A Study in Patna City. submitted to SIKKIM MANIPAL

UNIVERSITY by student of PGDHRM 2nd semester in partial

fulfillment of the requirement for the award of degree

Business administration in a bonafide work carried out by

him under my supervision and guidance. This work has not

been submitted anywhere else for any other degree/diploma.

Date :----------------

Patna--------------- (ABHISHEK TIWARI)

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Declaration

I hereby firmly declare that this project report entitled

EMPLOYEE JOB SATISFACTION A Study In Patna City. is

submitted at the Sikkim Manipal University in partial fulfillment of the degree of

PGDHRM is a bonafied works and it has not been submitted to any other University

and institution for any degree or diploma.

DATE:

VINOD KUMARPLACE:

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Acknowledgement

The appetite to search the facts, the skill to link them with one another,and the art to present them in a meaningful manner ..isnt it the crux of any study ?But this can not be turned into substance without the cooperation of learned authoritieson the subject and the resourceful individuals. Any study of this magnitude requires themarshalling of information ranging from Arawali to Alps, and any single personcannot do such Himalayan tasks. It needs co-operation of many, and I have beenfortunate enough as I got help from all the related authorities.

I am glad to offer my prime sense of gratitude to Mr. Abhishek Tiwari,regional Manager, ICICI Bank, Patna Bihar. I am obliged to MR. KUNDAN KUMARDirector and head of the ZEENU IT EDUCATION and I thank MR. S.K.DEEPAK for hirinquisitive guidance in the design and development of this work. They have been anever enthusiastic fountain of inspiration and encouragement.

I take this as an opportunity to express my warmest regards for myfriends and class mates for their inspiring co-operation. I am indebted to all therespondents who sacrificed their time and willingly discussed with me a variety ofissues related with the subject. Finally I am beholden to my parents and brother fortheir blessings and inspiration.

DATE:VINOD KUMAR

PLACE:

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TABLE OF CONTENT

CHAPTER 1 INTRODUCTION Page No.

1.1 What is Perception?1.2 Factors That Influence Perception1.3 What is investment?

1.4 Basic concept of investment1.5 What is Insurance?1.6 Purpose and need of insurance1.7 How insurance works1.8 What is Life Insurance?1.9 Superiority of life insurance to other forms of savings1.10 Buying of life insurance policy1.11 Unit Linked Insurance Plans1.12 Features of Unit Linked Insurance Plans1.13 How Unit Linked Insurance Plans Works?1.14 Unit Linked Insurance Plans are Good

1.15 Unit Linked Products Offer in terms of Value Addition1.16 Is Investment Risk Left to the Customer who Buys ULIPs?1.17 Companies Providing Unit Linked Insurance Plans1.18 Justification Of The Study

CHAPTER 2 RESEARCH METHODOLOGY2.1 Statement of Problem

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2.2 Purpose of Study2.3 Objectives of Study2.4 Population2.5 Sample Size2.6 Sample Unit2.7 Sources of Data

2.8 Sampling Method2.9 Delimitation

CHAPTER 3 ANALYSIS AND INTERPRETATIONOF DATA

CHAPTER 4 FINDINGS, LIMITATION ANDSUGGESTION

BIBLOGRAPHY

APPENDIX

CHAPTER - 1

INTRODUCTION

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1. INTRODUCTION

1.1 WHAT IS PERCEPTION?

Perception is aprocess by which individuals organize and interpret

their sensory impressions in order to give meaning to their environment. However, what

one perceives can be substantially different from objective reality. It need not be, but

there is often disagreement. For example, its possible that all employees in a firm may

view it as a great place to work favorable working conditions, interesting job

assignments, good pay, an understanding and responsible management but, as most

of us know, its very unusual to find such agreement.

1.2 Factors That Influence Perception:-

A number of factors operate to shape and sometimes distort perception. These

factors can reside in the perceiver, in the object or targetbeing perceived, or in thecontext of the situation in which the perception is made.

a) Factors in the perceiver

Attitudes

Motives

Interests

Experience

Expectations

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b) Factors in the situation

Time

Work setting

Social setting

c) Factors in the target

Novelty

Motion

Sounds

Size

Background

Proximity

Similarity

1.3 INTRODUCTION TO INVESTMENT

The economic progress of a country is to a certain extent linked with the

growth of the capital market. Growth of capital market is directly linked with the

savings of the people .The savings alone cannot provide growth to the capital

market. The faster growth of capital market pre-suppose two things -

Availability of savings with the public

Necessary know how of investments.

In India, not withstanding a high rate of savings by the community, the

capital market is not in a position to grow fast because the common man has not

acquired the necessary know how himself to select appropriate avenues of

investment which will serve his needs.

Therefore savings are mainly directed towards

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Fixed Deposit with bank/ post office

Real State

Gold

Investment in capital market is a tough job and requires study of capitalmarket and the intelligence to interpret the graph of capital market. It is almost a

technical job and requires an expert guide.

If the investor is assured that there are organizations of repute with

necessary expertise to select appropriate avenues of investment where the yield is

attractive enough, with utmost security of capital invested, it would create a proper

climate for diversion of a part of savings.

Financial institutions possess the required expertise and hence they have

been successful in moping up public savings through life insurance policies. Thus

life insurance policies also provide an opportunity of participation in capital market

which will assure a reasonable capital appreciation on his investment, to those who

are generally shy to invest their savings in equities and debentures because of its

complicated procedures. Therefore more and more people are investing in life

insurance policies.

1.4 BASIC CONCEPT OF INVESTMENT

Investing is never an easy process. However, a sound understanding of some

basic concepts makes the process of investment decision much easier. The following

steps can help you get started on your path to becoming a successful investor.

1. Identify financial needs and goals - The first step is to understand your financial

needs and goals .An investor has to decide when he needs money and for what

purpose? He has to list his financial goals and when they will materialize and how

much money is required for the same .The answer will help them to arrive at the time

frame for investment short term, medium term long term.

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2. Understand tolerance to risk - Before making an investment decision it is important

to ascertain investors feelings about risk . Will he be comfortable with fluctuations in

the value of investment? Or he will settle for lower returns, without ups and downs?

3. Estimating required rate of return - The required rate of return depends on

investors financial goals and the time required to achieve them. In this case, as

investment horizon reduces, for the same level of savings, higher risk is to be taken.

Alternatively, if investors are not willing to take higher risk, he has to save a higher

amount.

CONCEPT OF INSURANCE

1.5. What is Insurance?

The business of insurance is related to the protection of the economic value of assets.

Every asset has a value. The asset would have been created through the efforts of the

owner, in the expectation that, either though the income generated there from or some

other output, some of his needs would be met. In the case of a factory or a cow, the

production is sold and income generated. In the case of motor car, it provides comfort

and convenience in transportation. There is no direct income. There is a normally

expected life time for the asset during which time it is expected to perform. The owner,

aware of this, can so manage his affairs that by the end of that life time, a substitute is

made available to ensure that the value or income is not lost. However, if the asset gets

lost earlier, being destroyed or made non-functional, through an accident or other

unfortunate event, the owner and those deriving benefits there from suffer. Insurance is

a mechanism that helps to reduce such adverse consequences.

1.6 PURPOSE & NEED OF INSURANCE:

Assets are insured, because they are likely to be destroyed or made non-

functional, through an accidental occurrence. Such possible occurrences are called

perils. Fire, floods, breakdowns, lightning, earthquakes, etc. are perils. The damage that

these may cause the assets, is the risk that the assets are exposed to.

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The risk only means that there is a possibility of loss or damage. It may or may

not happen. There has to be an uncertainty about the risk. Insurance is done against the

contingency that it may happen. Insurance is relevant only if there are uncertainties. If

there is no uncertainty about the occurrence of an event, it cannot be insured against.

There are other meanings of the term risk. To the ordinary man in the street risk

means exposure to danger. In insurance practice, risk is also used to refer to the peril or

loss producing event. For example, it is said that fire insurance covers the risks of fire,

explosion, cyclone, flood etc. Again it is used to refer to the property covered by

insurance, for example, a timber construction is considered to be a bad risk for fire

insurance purpose. Here the term risk refers to the subject mater of insurance.

Conceptually, the mechanism of insurance is very simple. People who are

exposed to the same risks come together and agree that, if any one of the members,

suffers a loss, the others will share the loss and make good to the person who lost. All

people who send goods by ship are exposed to the same risk related to water damage,

ship sinking, piracy, etc. Those owning factories are not exposed to these risks. But they

are exposed to different kinds of risks like, fire, hailstorms, earthquakes, lightning,

burglary, etc. Like this, different kinds of risks can be identified and separate groups

made, including those exposed to such risks. By this method, the risk is spread among

the community and the likely big impact on one is reduced to smaller manageable

impacts on all.

The manner in which the loss is to be shared can be determined before hand. It

may be proportional to the likely loss that each person is likely to suffer, which is

indicative of the benefit be would received if the period befell him. The share could be

collected from the members after the loss has occurred or the likely shares may be

collected in advance, at the time of admission to the group. Insurance companies collect

in advance and create a fund from which the losses are paid.

A human life is also an income generating asset. This asset also can be lost

through unexpectedly early death or made non-functional through sickness and

disabilities caused by accidents. Accidents may or may not happen. Death will happen,

but the timing is uncertain. If it happens around the time of ones retirement, when it

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could be expected that the income will normally cease, the person concerned could have

made some other arrangement to meet the continuing needs. But it happens much

earlier when the alternate arrangements are not in place, insurgencies necessary to help

those dependent on the income.

In the case of a human being, he may have made arrangements for his needs

after his retirement. These would have been made on the basis of some expectations

like he may live for another 15 years, or that his children will look after him. If any of

these expectations do not become true, the original arrangement would become

inadequate and there could be difficulties. Living too long can be as much a problem as

dying too young. These are risks which need to be safeguarded against. Insurance takes

care.

Insurance does not protect the asset. It does not prevent its loss due to the peril.

The peril cannot be avoided, through insurance. The peril can sometimes be avoided,

through better safety and damage control management. Insurance only tries to reduce

the impact of the risk on the owner of the asset and those who depend on that asset. It

compensates, may not be fully, the losses. Only economic or financial losses can be

compensated.

The concept of insurance has been extended beyond the coverage of tangible

assets. Exporters run the risk of the importers in the other country defaulting as well as

losses due to sudden changes in currency exchange rates, economic policies or political

disturbances. These risks are now insured. Doctors run the risk of being charged with

negligence and subsequent liability for damages. The amounts in question can be fairly

large, beyond the capacity of individuals to bear. These are insured. Thus, insurance is

extended to intangibles. In some countries, the voice of a singer or the legs of a dancer

may be insured; even through the advantage of spread may not be available in these

cases.

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Satisfaction of economic needs required generation of income from some source.

If the property, which is the source of such income, is lost fully or partially, permanently

or temporarily, the income too would stop. The purpose of insurance is to safeguard

against such misfortunes by making well the losses of the unfortunate few, through the

help often the fortunate many, which were exposed to the same risk but saved from the

misfortune. Thus the essence of insurance is to share losses and substitute certainty by

uncertainty.

There are certain basic principles which make it possible for insurance to remain

popular and a fair arrangement. The first is the fact that people arte exposed to risks and

that the consequences of such risks are difficult for any one individual to bear. It

becomes bearable when the community shares the burden. The second is that no one

person should be in a position to make the risk happen. In other words, none in the

group should set fire to his assets and ask others to share the cost of damage. This

would be taking unfair advantages of an arrangements put into place to protect people

from the risks they are exposed to. The occurrence has to be random, accidental, and

not the deliberate creation of the insured person.

1.7 HOW INSURANCE WORKS:

People facing common risks come together and made their small contributions to

a common fund. The contribution to be made by each person is determined on the

assumption that while it may not be possible to tell beforehand, which person will suffer,

it is possible to tell, on the basis of past experiences, how many persons, on an average,

may suffer losses. The following two examples explain the above concept of insurance.

Example 1

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In a village, there are 400 houses, each valued at Rs. 20,000.0 Every

year, on the average, 4 houses get burnt, resulting into a total loss of Rs. 80,000. If all

the 400 owners come together and contribute. Rs. 200 each, the common fund would be

Rs. 80,000. This is enough to pay Rs. 20,000 to each of the 4 owners whose houses got

burnt. Thus the risk of 4 owners is spread over 400 house-owners of the village.

Example 2

There are 1000 persons who are all aged 50 and are healthy. It is

expected that of these 10 persons may die during the year. If the economic value of the

loss suffered by the family of each dying person is taken to be Rs. 20,000 the total loss

would work out to Rs. 2,00,000/- the total loss contributes Rs. 200/- a year, the common

fund would be Rs 2,00,000/- This would be enough to pay Rs. 20,000 to the family of

each of the ten persons who die. Thus the risks in cases of 10 persons are shared by

1000 persons.

1.8 What is life insurance?

Life Insurance is a contract for payment of a sum of money to the person assured

(or failing him/her, to the person entitled to receive the same) on the happening of the

event insured against. Usually the contract provides for the payment of an amount on

the date of maturity of at specified dates at periodic intervals or at unfortunate death, if it

occurs earlier. Among other things, the contract also provides for the payment of

premium periodically to the company by the assured. Life insurance is university

acknowledged to be an institution, which eliminates risk, substituting certainty for

uncertainty and comes to the timely aid of the family in the unfortunate events of the

death of the breadwinner. By and large, life insurance is civilizations partial solution to

financial uncertainties caused by untimely death.

Life insurance, in short, is concerned with two hazards that stand across the life

path of every person: that of dying prematurely leaving a dependent family to fend itself

and that of living to old age without visible means of support.

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Human Life is an income generating asset; this asset can be loosed through

unexpected death or made nonfunctional through sickness or disability caused by an

accident. There is no certainty that an accident will happen. On the other hand there is a

certainty that death will happen, but its timing is uncertain.

Life Insurance protects against loss of income of an individual. Life Insurance-

does not protect the asset.

does not prevent its loss.

Insurance reduces the impact of risk on the owner and those who depend on the

asset. It must however be noted that, only economic and financial losses can be

compensated.

For e.g., the emotional support that the bread winner provides can neither be

evaluated nor compensated. However, the financial support can be evaluated and

compensated.

Any Insurance is designed to compensate a policy holder for a loss suffered, by

the payment of money, repair, replacement or reinstatement. In ever case policy holder

is entitled to be put back in the financial position as he or she was immediately before

the event insured against occurred. There must be no element of profit of loss to the

policy holder. Most, but not all insurance policy are indemnity contracts.

Life Insurance plan are broadly classified into:

1. Traditional

2. Unit Linked Plans

3. Individual or Group Policies

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4. With and without profit policies

5. Other different type of policies

6. Annuities

7. Products for Women and Children

1.9 Superiority of Life Insurance to Other Forms of Savings:

Protection:

Savings through life insurance guarantee full protection against risk of death, the full

sum assured is payable (with bonuses wherever applicable) whereas in other savings

schemes, only the amount saved (with interest) is payable.

Aid to Thrift:

Lifeinsurance encourages thrift. Long term saving can be made in a relatively painless

manner because of the easy installment facility built into the scheme (premiums can be

paid through monthly, quarterly, half yearly or yearly installment). The salary savings

scheme, popularly known as SSS, provides a convenient method of paying premium

each month through deduction from ones salary. The salary savings scheme can be

introduced in an institution or establishment subject to specified terms and conditions.

Liquidity:

Loans can be raised on the sole security of a policy which has acquired (a paid up)

value. Besides, a life insurance policy is also generally accepted as security for even a

commercial loan.

Tax Relief:

Relief in income tax is available for amounts paid by way of premium for life insurancesubject to the income tax rates in force. Assesses can avail themselves of provisions in

the law for tax relief. In such cases the assured in effect pays a lower premium for his

insurance than he would have to pay otherwise.

Money When You Need It:

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A suitable insurance plan or a combination of different plans can be taken out to meet

specific needs that are likely to arise in future, such as childrens education, start in

life or marriage provision or even periodical needs for cash over a predetermined stretch

of time. Alternatively, policy moneys can be so arranged to be made available at the time

of ones retirement from service to be used for any specific purpose, such as for the

purchase of a house or for other investments. Subject to certain conditions, loans are

granted to policyholders for house building or for purchase of flats.

1.10 Buying of Life Insurance Policy:

Any person who has attained majority and is eligible to enter into a valid contract

can take out a life insurance policy for himself/ herself and on those in whom he/she has

insurable interest. Policies can also be taken out, subject to certain conditions, on the life

of ones spouse or children. While underwriting proposals, factors such as the state of

health of the life to be assured, the proponents income and other relevant factors are

considered by the corporation.

Epilogue:

So Long As The Maintains Of A Family Depends On CaringPower Of The Bread Winner;So Long As The Caring Power Can Be Destroyed By Death,Old Age Or Disability;Just So long Will Life Insurance Continue To Be TheKeystone Of The Individual And Those Who Are DependentUpon Him.

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1.11 UNIT LINKED POLICIES:A Unit Linked Policy isa Life Assurance Policy in which the benefitdepends upon the portfolio of shares.

Unit Linked Insurance Plans (ULIP)

Unit-linked plans are modern products that are consumer friendly and as

anywhere in the world, these are gaining popularity and finding wide acceptance in India

as well.

A Unit Linked Insurance Plans isapolicy, 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).

ULIP came into play in the 1960s and became very popular in Western Europe

and Americas. The reason that is attributed to the wide spread popularity of ULIP is

because of the transparency and the flexibility which it offers.

Unlike traditional insurance products, customers find unit-linked plans more

transparent, flexible and easy to understand. A customer who buys a unit-linked policy

can far more easily understand the charges he pays towards the savings component,

the life cover, and the riders. And he has the option to choose from different fund

options for the investment component depending on his appetite for risk.

As times progressed the plans were also successfully mapped along with life

insurance need to retirement planning. In todays times, ULIP provides solutions for

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insurance planning, financial needs, financial planning for childrens future and

retirement planning.

1.12 Features of Unit Linked Insurance Plans:

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

consumer. The plan is a one-stop solution providing:

Life protection

Investment and Savings

Flexibility

Adjustable Life Cover

Investment Options

Transparency

Options to take additional cover against

Death due to accident

Disability

Critical Illness

Surgeries

Liquidity

Tax planning

1.13 How Unit Linked Insurance Plan Works?

Each premium paid by insured person is split: a part is used to provide life

assurance cover, while the balance (after the deduction of cost, expenses, etc.) is used

to buy units in a unit trust.

In this way, a small investor can benefit from investment in a manage fund

without making a large financial commitment. As they are linked to the value of shares

Unit Linked policy can go up and down in values. Policy Holders can surrender the policy

at any time and the surrender value is the selling price of the units purchased by the

date of cancellation (Less expense). A small part of a contribution is used for providing

life cover and the balance is invested in units. Legal heirs are entitled to the amount of

insurance cover and entitled units in case of death of the insured.

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In Unit Linked Policies, in order to offset the erosion in money value, there is a

trend to issue Unit Linked Policies. Sum Assured is expressed in units whose price is

linked to an inflation related index. So, the price of Unit keeps on fluctuating with a rise

or fall of the index.

The benefits are also paid in units which when expressed in its prevailing price

on the date of payment of claim; protect the life insured against inflation.

1.14 Unit-Linked Insurance Plans are Good:

Most insurers in the year 2004 have started offering at least a few unit-linked

plans. Unit-linked life insurance products are those where the benefits are expressed in

terms of number of units and unit price. They can be viewed as a combination ofinsurance and mutual funds.

The number of units that a customer would get would depend on the unit price

when he pays his premium. The daily unit price is based on the market value of the

underlying assets (equities, bonds, government securities, etc.) and computed from the

net asset value.

The advantage of unit-linked plans is that they are simple, clear, and easy to

understand. Being transparent the policyholder gets the entire upside on the

performance of his fund. Besides all the advantages they offer to the customers, unit-

linked plans also lead to an efficient utilization of capital.

Unit-linked products are exempted from tax and they provide life insurance.

Investors welcome these products as they provide capital appreciation even as the

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yields on government securities have fallen below 6 per cent, which has made

the insurers slash payouts.

According to the IRDA, a company offering unit-linked plans must give theinvestor an option to choose among debt, balanced and equity funds. If you opt fora

unit-linked endowment policy, you can choose to invest your premiums in debt, balanced

or equity plans.

If you choose a debt plan, the majority of your premiums will get invested in debt

securities like gilts and bonds. If you choose equity, then a major portion of your

premiums will be invested in the equity market. The plan you choose would depend on

your risk profile and your investment need.

The ideal time to buy a unit-linked plan is when one can expect long-term growth

ahead. This is especially so if one also believes that current market values (stock

valuations) are relatively low.

So if you are opting for a plan that invests primarily in equity, the buzzing market

could lead to windfall returns. However, should the buzz die down, investors could be left

stung.

If one invests in a unit-linked pension plan early on, say when one is 25, one can

afford to take the risk associated with equities, at least in the plan's initial stages.

However, as one approaches retirement the quantum of returns should be subordinated

to capital preservation. At this stage, investing in a plan that has an equity tilt may not be

a good idea.

Considering that unit-linked plans are relatively new launches, their short history

does not permit an assessment of how they will perform in different phases of the stock

market. Even if one views insurance as a long-term commitment, investments based on

performance over such a short time span may not be appropriate.

1.15 Unit-linked products actually offer in terms of value-addition:

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When you are looking at a long-term plan, there are always factors that will

change from time to time to meet any challenges. Also, plans change so that the

company can offer some amount of customization. Among other things, we offer to add

the cover to the policy, add riders when necessary, and change the investment structure.

We also let customers choose from different fund options on the investment without

compromising on the basic product.

While all these options do come with caps to follow the regulatory framework,

they definitely offer value-addition to the customer. And, with the NAV (net asset value)

of the fund calculated at the end of the day, the customer knows the value of his funds. I

must add that in case of death, the beneficiary gets the sum assured or the NAV of the

fund, whichever is higher. So, there is no reduction in protection in these plans.

1.16 Is the investment risk left to the customer who buys unit-linked plans?

For any investor, the idea is to maximize returns. Wise customers know that the

era of guaranteed returns is over. The fall in interest rates in the past 18 months is

indication enough of what lies ahead. What unit-linked products offer is a long-term

investment option where returns are far more real and there is no compromise in the

protection that the policy offers.

In the guaranteed returns regime, the guaranteed component was met by paying

lower interest rates to those who did not have any guarantee on their plans. Compared

to this, unit-linked plans offer greater value to the customer. Yes, to an extent the risk is

in the hands of the customer. However, the flexibility to opt for funds means that the

customer can benefit as well. And finally, the returns that these products offer are bound

to be relatively higher than what similar traditional plans offer.

In order to cater to customers with very low risk appetite we also offer a unitized,

with-profit plan across our products, where the bonus rate is declared in advance for the

year. This is a conservative approach, but it has its takers. With this option, at the end of

the policy the policyholder gets a share of the bonus that the company earns. In this

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case, there is an assured return that is benchmarked to the current bond rates (5 per

cent last year).

1.17 Companies Providing Unit Linked Insurance Plans

In India, there are following fifteen life insurance companies which are providing

Unit Linked Insurance Plans: -

Life Insurance Corporation Of India

Bajaj Allianz Life Insurance Company Limited

ICICI Prudential Life Insurance

HDFC Standard Life

SBI Life Insurance

Birla Sunlife

Tata AIG Life Insurance

Max New York Life

Aviva Life Insurance

Kotak Mahindra Old Mutual

ING Vysya Life Insurance

Reliance Life

Met Life

Sahara Life

Shriram Life

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1.18 JUSTIFICATION OF STUDY:

Indians savings are invested predominantly in fixed deposits, insurance,

government backed instruments or end up as idle cash. In the present scenario because

of decreasing returns on savings,tax benefit getting bleaker day by day,defaulting ofeven government backed institutions have made small and medium investors to look

beyond traditional options of investment.

It is in this context the research work tries to assess objectively the perception of

investors and pattern of investment in Patna city. It also charts out the prime factors

which affect the investment in general and specifically in unit linked life insurance

policies.

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CHAPTER 2

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

The success of any event heavily depends upon the way chosen for its execution. This

includes ensures of some basic question to the specific focus on constraints as well. In

other words they can call the methodology as the backbone of any research. It also

includes research or study method. Thus when they talk of methodology they not only

talk of methodology they not talk of methods but also consider the logic behind the

methods they use in the context of their study objective and explain way use are using

them so that study results are capable of being evaluated logically.

2.1 Statement Of Problem:

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Investors Perception Towards Unit Linked Insurance Policies A Study In Patna City.

2.2 Purpose Of The Study:

The purpose is to study the perception of investors towards unit linked

insurance policies in Patna city.

2.3 Objectives Of The Study

The objectives set for the study are

To find out the awareness of investors about the unit linked insurance policies in

Patna city.

To find out the reason why investors invest into unit linked insurance policies.

To find out the factor influencing investors for purchasing unit linked policy of a

particular company.

To find out the market share of different Insurance Companies dealing in Unit

Linked Insurance Policies.

2.4 Population:

Population refers to the total of items about which information is desire. The attributes

that are the object of study are referred to as characteristics and the units possessing

them are called as elementary units. The aggregate of such units is generally described

as population. Thus, all the units in any field of inquiry constitute universe and all

elementary units constitute population.

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The population can be finite and in finite the population is said to be finite if it is consist

of a fixed number of elements so that it is possible to enumerate it in its totality. An

infinite population is which it is theoretically impossible to observe all the elements.

The population is specific group of people, firms, conditions, activities etc. which forms

the pivotal of research for developing and using a sample, it become primary duty of a

researcher to define the population from which to draw the sample.

Population To achieve the objective the city of Patna was selected.

2.5 Sample:

The sample is the representative unit of population. The researcher has taken the

consumer as sample for this research. Since in this research the researcher has

collected the sample according to his own convenience. So the sample is convenient

sample and the sample size of the research is 100.

This refers to number of items to be selected from the universe to constitute a sample.

The size of the sample should neither be excessively large, nor too small. It should be

optimum. An optimum sample size is one, which fulfills the requirement of efficiency,

representativeness, reliability, and flexibility.

2.6 Sampling Method

The researcher adopted Convenient Sampling Method. In this method the sample units

are chosen primarily on the basis of convenience to the investigator. In this type of

sampling, the researcher selects items for the sample deliberately; his choice concerning

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There is some specific delimitation in the study they are:-

1. The generalization of data is subjective to the population of Patna city.

2. The generalization of finding is subject to the accuracy of data provided by the

respondents.

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CHAPTER - 3

ANALYSIS AND INTERPRETATION

OF DATA

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3.1 ANALYSIS AND INTERPRETATION OF DATA

Analysis is an attempt to organize and summaries data in order to increase

result, usefulness in such a manner that enables to relate critical points with the

objectives of study. The data after collection has to be processed an analyzed in

accordance with the out line laid down for the purpose at the time of developing the

research plan. Technically speaking, analyzing implies editing, coding, classification

and tabulation of collected data so that they are amenable to analysis. The terms

analysis refers to the computation of certain measures along with searching for pattern

of relationship that exists among data groups.

Interpretation refers to task of drawing inferences from the collected facts after

an analytical and/or experimental study. In fact, it is a search for broader meaning of

research finding the task of interpretation has to measure aspects that is (i) the effort to

establish continuity in research though linking the results of a given steady with those

of another and (ii) the establishment of some explanatory concepts.

Interpretation is concerned with relationships within the collected data, partially

over lapping analysis. Interpretation also extends beyond the data of the study to

include the result of other research, theory, and hypotheses. Thus, interpretation is the

device though which factors that seem to explain what has been observed by

researcher in the course of study can be better understood and it also provides a

theoretical conception, which can serve as a guide for further researches.

Interpretation is essential for the simple reason that the usefulness and utility of

research finding lie in proper interpretation. Interpretation leads to the establishment of

explanatory concepts that can serve as a guide for further research studies; it opens

new avenues of intellectual adventure and stimulates the quest for more knowledge.

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Part A: - Demographic Profile of Respondents

Age Profile

Age-group Respondents Percentage (%)

Less than 25 years 06 06%

25 30 years 28 28%

30 35 years 31 31%

35 40 years 18 18%

40 50 years 11 11%50 years and above 06 06%

Total 100 100%

6

2831

18

11

60

10

20

30

40

Respondents

Age Profile

Less than 25 years

25 30 years

30 35 years

35 40 years

40 50 years50 years and above

Interpretation From the above table it is found that majority of respondents(31%) are under the age group of 30 35.

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Gender

Gender Respondents Percentage (%)

Male 89 89%Female 11 11%

Total 100 100%

89

11

0

20

40

60

80

100

Respondents

Gender

Male

Female

Interpretation From the above table it is found that majority of respondents (89%) aremale.

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Marital Status

Marital Status Respondents Percentage (%)

Married 69 69%Unmarried 31 31%

Total 100 100%

69

31

0

20

40

60

80

Respondents

Marital Status

Married

Unmarried

Interpretation From the above table it is found that majority of respondents (69%) aremarried.

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Qualification

Qualification Respondents Percentage (%)

Under Graduate 19 19%Graduate 47 47%

Post Graduate 34 34%

Total 100 100%

19

47

34

0

10

20

30

40

50

Respondents

Qualification of Respondent

Under GraduateGraduate

Post Graduate

Interpretation From the above table it is found that majority of respondents (47%) aregraduates.

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Employment Status

Employment status Respondents Percentage (%)Employed 67 67%

Unemployed 09 09%Self-employed 24 24%

Total 100 100%

67

9

24

0

10

20

30

40

50

60

70

Respondents

Employment Status

Employed

Unemployed

Self-employed

Interpretation It is found from the above table that majority of the respondents (67%)are employed.

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Occupation Profile

Occupation Respondents Percentage (%)

Entrepreneur 18 18%Engineer 17 17%

Lawyer 03 03%

Doctor 06 06%

Academician 19 19%

Government Service 15 15%

Others 22 22%

Total 100 100%

18 17

3

6

19

15

22

0

5

10

15

20

25

Respondents

OccupationEntrepreneur

Engineer

Lawyer

Doctor

Academician

Government

Service

Others

Interpretation It is found from the above table that majority of respondents (22%) areothers.

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Nature of Family

Nature of Family Respondents Percentage (%)Joint Family 43 43%

Nuclear Family 57 57%Total 100 100%

43

57

0

10

20

30

40

50

60

Respondents

Nature of Family

Joint Family

Nuclear Family

Interpretation It is found from the above table that majority of the respondents (57%)belongs to nuclear family

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Income Profile

Income (monthly) Respondents Percentage (%)

Up to Rs.10,000 08 8%

Rs.10,000 Rs.15,000 12 12%

Rs.15,000 Rs.20,000 25 25%Rs.20,000 Rs.25,000 18 18%

Rs.25,000 Rs.30,000 22 22%Rs.30,000 and above 15 15%

Total 100 100%

8

12

25

18

22

15

0

5

10

15

20

25

Respondents

Income Profile

Up to Rs.10,000Rs.10,000 Rs.15,000

Rs.15,000 Rs.20,000

Rs.20,000 Rs.25,000

Rs.25,000 Rs.30,000

Rs.30,000 and above

Interpretation It is found that majority of the respondents (25%) falls under the incomegroup of Rs.15,000 Rs.20,000.

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Part B

Awareness of Unit Linked Insurance Policies

Awareness Respondents Percentage (%)

Yes 86 86%

No 14 14%

Total 100 100%

86

14

0

20

40

60

80

100

Respondents

Awareness of Unit Linked Insurance Policies

Yes

No

Interpretation - It is found from the above table that majority of respondents (86%) inPatna city are aware of Unit Linked Insurance policies provided by various LifeInsurance company.

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Sources of Information

Sources Respondents Percentage (%)Newspapers/Magazines 12 13.95%

Television 15 17.44%

Friends 09 10.46%

Relatives 05 5.82%

Leaflets/Brochures 16 18.61%

Insurance Agents 26 30.23%Others 03 3.49%

Total 86 100%

1215

9

5

16

26

3

0

5

1015

20

25

30

Respondents

Sources of Information Newspapers/Magazines

Television

Friends

Relatives

Leaflets/Brochures

Insurance Agents

Others

Interpretation - From the above table it is found that majority of respondents (30.23%)consider insurance agents as main source of information.

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Unit Linked Insurance Plan is Covered by LICs

Awareness Respondents Percentage (%)Yes 77 89.53%

No 09 10.47%

Total 86 100%

Unit Linked Insurance is covered by LICs

77

9

0

20

40

60

80

100

Respondents

Yes

No

Interpretation - From the above table it is found that majority of respondents (77%) inPatna city are aware that Unit Linked Insurance Policies are offered by Life InsuranceCompanies (LICs).

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Investors Awareness of Portfolio Management and Selection done in Unit LinkedInsurance Policies:

Awareness Respondents Percentage (%)

Yes 37 43.02%No 49 56.98%

Total 86 100%

Awareness Of Portfolio Management and

Selection done in Unit Linked Insurance Policies

37

49

0

10

20

30

40

50

60

Respondents

Yes

No

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Interpretation- From the above table it is found that majority of respondents (56.98%)in Patna city are not aware of Portfolio Management and Selection done in UnitLinked Insurance Policies:

Purchase of Policy

Purchase Respondents Percentage (%)Yes 72 83.72%

No 14 16.28%Total 86 100%

72

14

0

20

40

60

80

Respondents

Purchase of Policy

Yes

No

Interpretation - From the above table it is found that out of 86 respondents, who areaware of Unit Linked Life Insurance policies, only 72 respondents have taken UnitLinkedLife Insurance policies.

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Reason Considered while purchasing ULIPs

16

26

22

8

0

5

10

1520

25

30

Respondents

Reason Considered while purchasing ULIPsRisk Coverage

Investment Planning

Tax Relief

Others

Factors Respondents Percentage (%)

Risk Coverage 16 22.22%

Investment Planning 26 36.11%

Tax Relief 22 30.56%

Others 08 11.11%

Total 72 100%

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Interpretation - From the above table it is found that majority of respondents (36.11%)considered investment planning as the main reason for purchasing unit linked insurancepolicies.

Factors Influencing in Investing in ULIPs

Influencer Respondents Percentage (%)

Policy Structure 23 31.94%

Company Name 09 12.50%Growth of Fund 26 36.12%

Advertisement 05 6.94%Others 09 12.50%

Total 72 100%

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23

9

26

5

9

0

5

10

15

20

25

30

Respondents

Factors Influencing in Investing in ULIPs

Policy Structure

Company Name

Growth of Fund

Advertisement

Others

Interpretation - It is found from the above table that majority of respondents (36.12%)are influenced by the growth of fund while taking decision in investing in Unit LinkedInsurance Policies.

Holder of policy

Holder Respondents Percentage (%)Spouse 21 29.17%

Self 24 33.33%Parent 11 15.28%

Children 16 22.22%

Total 72 100%

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21

24

11

16

0

5

10

15

20

25

Respondents

Spouse

Self

Parent

Children

Interpretation - From the above table it is found that majority of respondents (33.33%)made unit linked insurance plans for themselves.

Mode of Investment

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Mode Respondents Percentage (%)

Regular Premium 51 70.83%

Single Premium 21 29.17%

Total 72 100%

51

21

0

10

20

30

40

50

60

Respondents

Mode of Investment

Regular Premium

Single Premium

Interpretation - From the above table it is found that out of 72 respondents, 51respondents prefer to pay regular premium and only 21 respondents prefer to pay singlepremium.

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BestLifeInsurance Company

Life Insurance Companies Respondents Percentage (%)

Bajaj Allianz 19 26.39%

ICICI Prudential 21 29.17%

SBI Life 12 16.67%

LIC 09 12.5%ING Vaisya 02 2.78%

Birla Sunlife 05 6.93%Others 04 5.56%

Total 72 100%

1921

12

9

2

5 4

0

5

10

15

20

25

Respondents

Best Insurance Company

Bajaj Allianz

ICICI Prudential

SBI Life

LIC

ING Vaisya

Birla Sunlife

Others

Interpretation - According to majority of respondents (29.17%) ICICI Prudential LifeInsurance Company is the best life insurance company dealing in ULIPs in Patna City.

Perception Towards the Best Company

According to respondents a particular insurance company is best in market

because of following reasons-1. Good and satisfactory services provided by company2. Good reputation in the market3. Better schemes and benefits provided by the company

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sBenefits Availed

Benefits Availed Respondents Percentage (%)

Yes 14 19.44%No 58 80.56%

Total 72 100%

14

58

0

1020

30

40

50

60

Respondents

Benefits Availed

Yes

No

Interpretation - From the above table it is found that out of 72 respondents only 11respondents (19.44%) has availed benefits from ULIPs.

Different Benefits Availed by the Respondents

According to respondents they availed following benefits from Unit LinkedInsurance policy-

1. Benefit from Rider

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2. Partial Withdrawal Benefit

Satisfaction with Procedural Formalities

Satisfaction Respondents Percentage (%)Yes 11 78.57%

No 03 21.43%

Total 14 100%

11

3

0

2

4

6

8

10

12

Respondents

Satisfied with Procedural Formalities

Yes

No

Interpretation - From the above table it is found that out of 14 respondents, 11respondents are satisfied with the procedural formalities while receiving the benefitsfrom the company providing ULIPs.

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Respondents suggestions towards procedural formalities

According to respondents the procedural formalities while receiving benefits fromthe company can be made satisfactorily through following ways-

1. Paper formalities must be reduced while providing benefits.2. Proper information must be provide to holders so that they can receive the benefits

easily3. Apart from the procedural formalities most of respondents are of opinion that while

dealings with respondents the behavior of company people must be good.

Suggestions for improvement

According to respondents the following benefits should be included in Unit Linked

Insurance policies provided by different companies-

1. More disease coverage2. Providing more riders3. Tied up with more hospitals

Suggestions for Effectiveness

According to respondents Unit Linked Insurance policies can be made moreeffective through following ways-

1. More advertisements in regional languages to be made about life insurancepolicies

2. Minimum and simplified formalities3. Transparency in terms and conditions

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CHAPTER - 4

FINDINGS,LIMITATIONAND

SUGGESTION

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4.1 FINDINGS:

Majority of respondents i.e., 86% are aware of unit linked insurance policies in

Patna city.

Most of respondents i.e., 56.98% are not aware of portfolio management done in

unit linked insurance policies in Patna city.

Majority of respondents invest into unit linked insurance policies for Investment

Planning (36.11%) and Tax Relief (30.56%) followed by Risk Coverage (22.22%)

and Other reason (11.11%).

Growth of Fund (36.12%) and Policy Structure (31.94%) is the factor influencing

investors for purchasing unit linked policy of a particular company followed by

Policy Structure (31.94%), Company Name (12.5%), Others (12.5) and

Advertisement (6.94%).

It is found that 71.4% of market share is captured by LIC followed by ICICI

Prudential (7.56%), Bajaj Allianz (7.35%), HDFC Standard Life (2.9%), SBI Life

(2.3%),Birla Sunlife (1.9%), etc.

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4.2 LIMITATIONS:

Any research or study always has some limitations under which this has

to be undertaken. This one too was not an exception. These limitations are poised by the

environment some external and some inherent. This study has been conducted with

utmost consideration to the adequacy of data and quality of information, though as

mention earlier the reliance on the sources can not be minimized to zero in context of

precision. The limitation can be enlisted as hereunder:-

1. The perception level of the respondents.

2. Availability of documents as sources of secondary information.

3. Reliability of information collected from various public information sources such as

magazines and website.

4. Respondents are not willing to fill the questionnaire.

5. Sometimes the respondents are not available at their place.

6. Very often the respondent do not express their true feelings, in such case their

habit, preference, practice, cannot be assessed correctly.

7. Some of the respondents refuse to give the important information best known to

them.

8. The sample size was reduced to 61 from 100, as there was no response error.

However in spite of these limitations all efforts have been put to make the

report correct, genuine, and fulfilling the objectives of the reports.

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4.3 SUGGESTION

On the basis of this study, the following suggestions have been made to makethe Unit Linked Insurance Plans more effective: -

There is need to bring more awareness of various Unit Linked Insurance policiesamong the investors by providing them vouchers and literatures in differentregional languages.

The insurance companies should not insist upon fulfillment of there own businessobjectives rather than they must insist on welfare of investors.

There should be free, fair, justified and honest competition amongst the various

insurance companies.

Investors should be given timely information of the governments changedpolicies regarding insurance sector.

Attempts should be made by the Insurance companies for creating awarenessamong its Investors regarding investment of funds of Unit Linked Policies indifferent Portfolios.

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BIBLOGRAPHY

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BIBLOGRAPHY

Book Reference

1. Kotler philip, Marketing Management New Delhi, Prentice hall of India, 2003

2. Kothari C.R, Research Methodology New Delhi, vishwa Prakash, 2003

3. Robbins S. P. Organizational Behavior New Delhi, Pearson Education, 2004, TenthEdition, Page no. 123 124.

4. Life Insurance Programme Based on IRDA Syllabus NIS SPARTA Ltd.

Web Reference

1. www.google.com

2. www.icicibank.com

3. www.iciciprulife.com

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http://www.google.com/http://www.iciciprulife.com/http://www.google.com/http://www.iciciprulife.com/


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APPENDIX

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QUESTIONNAIRE

Respected Sir/Madam,I am conducting a survey entitled EMPLOYEE JOB SATISFACTION

A Study In Patna City. I need your help in conducting thisstudy. Kindly provide me your valuable opinion to fill this questionnaire. Yourinformation will be kept confidential and will be exclusively used for academicpurpose.

VINOD KUMAR

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Part A

1. Demographic Information

a) Name:-........................................................................................................................

b) Address:-....................................................................................................................

c) Phone Number:-.........................................................................................................

d) Age group:-

Less than 20 [ ] 20-25 [ ] 26-30 [ ] 31-35 [ ]

36-40 [ ] 41-45 [ ] 45-50 [ ] 50 and above [ ]

e) Sex:- Male [ ] Female [ ]

f) Martial Status:- Married [ ] Unmarried [ ]

g) Educational Qualification:-Graduate [ ] Under Graduate [ ] Post Graduate [ ]

h) Educational qualification of spouse:-

Graduate [ ] Under Graduate [ ] Post Graduate [ ]

i) Employment status:-

Employed [ ] Unemployed [ ] Self-employed [ ]

j) Employment status of spouse:-Employed [ ] Unemployed [ ] Self-employed [ ]

k) Number of earning member:-

l) Number of dependents:-

m) Monthly Personal Income:-Up to Rs.10,000 [ ] Rs.10,000-15,000 [ ] Rs.15,000-20,000 [ ]

Rs.20,000-25,000 [ ] Rs.25,000-30,000 [ ] Rs.30,000 and above [ ]

n) Average monthly income of family:-

Up to Rs.10,000 [ ] Rs.10,000-15,000 [ ] Rs.15,000-20,000 [ ]

Rs.20,000-25,000 [ ] Rs.25,000-30,000 [ ] Rs.30,000 and above [ ]

o) Nature of family:-

Joint family [ ] Nuclear family [ ]

p) Occupations:-

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Entrepreneur [ ] Engineer [ ] Lawyer [ ]Doctor [ ] Academician [ ] Others [ ]

Government service [ ] Businessman [ ]

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Part B

2.(a) Are you aware of Unit Linked Insurance Policies of various insurance companies?

Yes [ ] No [ ]

3. From which source you collected the information?

News papers [ ] Television [ ] Friends [ ] Relatives [ ]

Leaflets/Brochures [ ] Insurance Agents [ ] Others [ ] _______________

4. Are you aware that Unit Linked Insurance Policies are offered by life insurance

companies?Yes [ ] No [ ]

5. (a) Are you aware of portfolio management and selection done in ULIPs?

Yes [ ] No [ ]

(b) If yes, please mention the source of information? ___________________________

6(a) Have you taken any Unit Linked Insurance Policies ?

Yes [ ] No [ ]

(b) If yes, then please mention-

Name of the company _________________________________________________

Name of the policy ___________________________________________________

7. Please mention the reason considered by you while purchasing the unit linked insurance

policies. (Please tick only one)Risk Coverage [ ] Investment Planning [ ]Tax Relief [ ] Others [ ] _________________________

8. Which factor mostly influences you while investing in ULIPs of particular company?

Policy Structure [ ] Company Name [ ]Growth of Fund [ ] Advertisment [ ]

Others [ ] _____________________

9. For whom you have purchased unit linked insurance policies

Self [ ] Spouse [ ] Children [ ] Parents [ ]

10. Which mode of investment do you made in ULIPs?Regular Premium [ ] Single Premium [ ]

11(a).According to you which company is best in the market with respect to ULIPs?LIC [ ] ICICI Prudential [ ]

Bajaj Allianz [ ] Birla Sun Life [ ]

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ING Vaisya [ ] SBI Life [ ]Others [ ] _____________________

(b).Please state the reason _______________________________________________

____________________________________________________________________

12(a).Have you availed any benefits from unit linked insurance policies?Yes [ ] No [ ]

(b) If yes, then specify the benefits you have received.____________________________________________________________________

_

(c) Are you satisfied with the procedural formalities on your part while receiving the

benefits from the company?

Yes [ ] No [ ]

(d) If no, then how it can be simplified?

____________________________________________________________________

_

13. What other sort of benefits you wish to be provided by ULIPs?

_____________________________________________________________________

____________________________________________________________________

_

14. Do you have any suggestion to make unit linked insurance policies more effective?_____________________________________________________________________

_____________________________________________________________________

Signature

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vinod kumar pgdhrm

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