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AEGON RELIGARE

“UNIT LINK INSURANCE PLANS”

Submitted in partial fulfillment of the requirements of The M. B. A. Degree Course of Bangalore University

AEGON RELIGARE “UNIT LINK INSURANCE PLANS” Submitted in partial fulfillment of the requirements of The M.

Submitted by Suraj Singh (REGD-NO-22205611040 ) Under the supervision and guidance of

Mr. Suresh C.A Branch head

Aegon Religare lic Brigade road,bangalore

External guide

Miss.Ragini

Professor

St.Hopkins College of Management

Internal guide

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AEGON RELIGARE

DECLARATION

I hereby declare that this report titled “An In-depth Analysis on Unit link insurance plan ” at Aegon Religare is a record of independent work carried out by me towards the partial fulfillment of MBA course of Dravidian University at St.Hopkins college of Management. This has not been submitted in part or fulfillment towards any degree.

PLACE: BANGALORE DATE : 25/04/2013

Suraj Singh

(22205611040)

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PRINCIPAL’S CERTIFICATE

This to certify that this report titled Unit Link Insurance plans (ULIP) has been prepared by Suraj Singh bearing the Reg. No.22205611040 under the guidance and supervision of Miss Ragini, Professor,

St.hopkins college, Bangalore.

Place: Bangalore Date: 25/04/2013

Mr.Mohan

Principal

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AEGON RELIGARE

GUIDE’S CERTIFICATE

This is to certify that the Project Report entitle ”Unit link Insurance Product ” is done by Suraj Singh bearing Registration No.22205611040 is a bonafide work done carried under my guidance during the academic year (2011-2013) in a partial fulfillment of the requirement for the award of MBA degree by Dravidian University. To the best of my knowledge this report has not formed the basis for the award of any other degree.

Place: Bangalore

Date: 25/04/2013 college of management)

Miss.Ragini

(professor-St.Hopkins

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GUIDE’S CERTIFICATE

This is to certify that the Project Report entitled “Unit Link Insurance Product ”is done by Suraj Singh bearing Registration No.22205611040 is a bonafide work done carried under my guidance during the academic year 2011-2013 in a partial fulfillment of the requirement for the award of MBA degree by Dravidian University. To the best of my knowledge this report has not formed the basis for the award of any other degree.

Place: Bangalore Date:

Miss.Ragini (Professor St.hopkins college)

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AEGON RELIGARE

Acknowledgement

I am indebted to Mr.Suresh CA, the Branch manager, Aegon Religare Life Insurance Pvt Ltd for providing me guidance throughout the project. A very special thanks to Miss Ragini, Faculty, St.Hopkins College of Management, Bangalore who has always helped the students to achieve the best through his words of encouragement and being very supportive by providing us with an excellent Concepts of Marketing.

Finally, I remain indebted to my parents who helped me throughout the project by giving me their invaluable feedback, inspiring me and guiding me and all the team leaders and team members who helped me out in knowing the grass root functioning of the store.

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Table of Content

  • 1. Introduction about industry

  • 2. Company profile

  • 3. Research design

4. Our product

  • 5. Product comparison

  • 6. Data analysis and interpretation

  • 7. Findings

  • 8. Suggestions/recommendations

9.Annexure

10.Bibliography

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Industry Background

A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. This is known as insurance.

Indian insurance sector has remained on rails even in the toughest of the times, thanks to the Insurance Regulatory and Development Authority (IRDA)'s tough and conservative apparatus. A sound insurance segment ensures better economic development as indicated by a study which states that 1 per cent increase in insurance penetration leads to 13 per cent reduction in uninsured losses and 22 per cent reduction in taxpayers' contribution to recovery following a natural catastrophe. Keeping pace with international happenings, Indian insurance industry has remained in a good health and maintained absolute transparency and highest standards of corporate governance. Assets under management (AUM) of the Indian insurers are slated to touch Rs 20 trillion (US$ 376.51 billion) while the general insurance sector is anticipated to grow 18 per cent in 2012-13. Insurance sector has grown substantially over the last few years, with its AUM from Rs 8 trillion (US$ 150.57 billion) in 2008 to Rs 18 trillion (US$ 338.82 billion) in 2011-12.

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History of life insurance companies in India

Some of the important milestones insurance business in India are:

in

the

life

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non- life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

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Market share of various life insurance companies of India

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Life insurance companies in India

Public Sector

Government of India Fully owns 1 company:

Life Insurance Corporation of India

Private Sector

AEGON Religare Life Insurance

Aviva Life

Shriram Life Insurance

Bajaj Allianz Life Insurance

Bharti AXA Life Insurance Co Ltd

Birla Sunlife

Canara HSBC Oriental Bank of Commerce Life Insurance

Star Union Dai-ichi Life Insurance

DLF Pramerica Life Insurance

Edelweiss Tokio Life Insurance Co. Ltd

Future Generali Life Insurance Co Ltd

HDFC Standard Life Insurance Company Limited

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ICICI Prudential

IDBI Fortis Life Insurance

IndiaFirst Life Insurance Company

ING Vysya Life Insurance

Kotak Life Insurance

Max Life Insurance

PNB MetLife India Life Insurance

Reliance Life Insurance Company Limited

Sahara Life Insurance

SBI Life Insurance Company Limited

TATA AIG Life Insurance

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Research design

Title of study

Unit Link Insurance Plan (ULIP) Aegon Religare company

Statement of problem

There are various kind of insurance product available in the industry. Here, we have compared Traditional plan and Unilt Link insurance plan. Where as we have tried to get on a conclusion what are the usp of Unit Link Insurance product and why we should buy them.

Objective

  • To know the pattern of investment in insurance sector in context of Banglore

  • To know the investment motives preferred by Bangalore people.

  • To know how the people make investment decision

  • To know about Aegon Religare (ulip) product

  • To do a comparison

Scope

  • To re-establish Aegon religare. as the market leader in quality and value-priced investment products in Bangalore.

  • Establish good working relationships with our clients

  • Understanding market needs and plan for development

  • To understand customer needs and provide them best investment products

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Limitations

  • Less awareness about the product.

  • Less knowledge among people about Aegon Religare.

  • More people don’t want to trust private company,they want to for lic on safer side.

PLANNING OF THE SURVEY:-

Preplanning is sine-guenon for any kind of survey. Their some must be some preliminary preparation. first and foremost I decided the topics to works on and then prepared some question related to the topic considering every possible point of view .finally, I framed the questionnaire is the language .I used simple words and easy sentences to be fairly understood .

OBJECTIVE OF THE SURVE:--

The objective of any survey is to study the opinion of the respondent about the chosen items. The opinions are drawn in the form of answer given to the set of question in the questionnaire .

The topic of the present survey is “THE BRIEF INVESTMENT PRODUCT COMPARISON OF (ULIP) AEGON RELIGARE

3. SCHEDULE

Contains of the schedule are determine by taking into account the aim of the survey and the subsequent collection of the information form the informants with the help of a questionnaire .it is a vital part of the survey and has to be prepared with utmost care ,once the contents of the schedule have been determine .

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it insures complete information and data required in min.no.of question

the question should be worded in a simple language so that it may be easily understandable to both the interviewer and as well as interviewees.

The information‘s could be filled quickly and easily with min. errors and omission.

There should be MCQ whose answer could be given by putting a tick mark.

There should be ambiguity.

Keeping in the mind the aim of my survey and all these consideration regarding schedule, the questionnaire was formed bearing the heading “PROUCT COMPARISON OF AEGON RELIGARE”

TECHINQUE OF DATA COLLECTIONS AND SIMPLING TECHNIQUE

  • The formostpart of project is to prepare the tools of the data collection. Data have been collected here through questionnaire interviewing clients who present at time of survey in the Primary data collection total 101 customer were interviewed. Some of unable to give time for it because of their hectic schedule Busy.

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  • The interview was the direct one and the question were asked in face to face situation.

  • During the time of data collection the customers had to fill up the questionnaire at the every moment before me .

  • They also discussed some of the question with me reasons for using the direct method of interview was the accuracy of the personal interview .

DURATION OF THE SURVE

Survey was started from 15 th march 2013 and got completed in the 2 nd week of April 2013

REPORT WRITING

In this very project only a few things have been analyzed which are essential .few things could not get analyzed due to unreliable information supplied by the respondents.

IMPORTANCE TERMS OF REASERCH METHODOLOGY

  • Type of research-Descriptive &conclusive

  • Data type –Primary data

  • Data size -100

  • Data collection method –questionnaire

  • Data collection instruments-structured questionnaire

  • Sample unit-All

  • Sample technique –Random

  • Data analysis Tools and techniques –Bar and Pie chart

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Company profile

AEGON Religare Life Insurance Company

Aegon Religare lic is a joint venture of three company

Aegon-one of the worlds largest insurance and pension company Religare-one of the India’s largest company in finance sector Bennet and Coleman india’s largest media house

AEGON RELIGARE Company profile AEGON Religare Life Insurance Company Aegon Religare lic is a joint venture
AEGON RELIGARE Company profile AEGON Religare Life Insurance Company Aegon Religare lic is a joint venture

Together they came as Aegon Religare life insurance company

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AEGON RELIGARE ABOUT AEGON As an international life insurance, pension and investment company, AEGON has businesses

ABOUT AEGON

As an international life insurance, pension and investment company, AEGON has

businesses in over twenty markets in the Americas, Europe and Asia. With headquarters

in The Hague, the Netherlands, AEGON companies employ approximately 28,000 people

and serve some 40 million customers across the globe. The company’s common shares

are listed on three stock exchanges: Amsterdam, New York and London. AEGON has

more than 160 years of experience with its roots going back to 1844. AEGON holds 26%

equity in ARLI.

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Aegon Life insurance/ pension/ investments

Presence in over 20 markets throughout the Americas ,Europe and Asia 5 th largest life insurance company in the world based on revenue. Ranked 103 on the fortune 500 list. More than 5 crore customers worldwide. More than 31,500 employees worldwide.

ABOUT RELIGARE ENTERPRISES LIMITED

Religare Enterprises Limited (REL) is a global financial services group with a presence

across Asia, Africa, Middle East, Europe and the Americas. In India, Religare’s largest

market, the group offers a wide array of products and services ranging from insurance,

asset management, broking and lending solutions to investment banking and wealth

management. The group has also pioneered the concept of investments in alternative asset

classes such as arts and films. With over 10,000 employees across multiple geographies,

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Religare serves over a million clients, including corporates and institutions, high net

worth families and individuals, and retail investors. REL hold 44% equity in ARLI.

Religare Value that bind

One of India’s leading integrated financial services group Services in retail, wealth & institutional spectrums

Presence in more than 460 cities and towns and more than 1550 locations across India

ABOUT BENNETT, COLEMAN & COMPANY LIMITED

Bennett, Coleman & Company Limited (BCCL), part of the mammoth Times Group,

is India’s largest media house. It reaches out to 2468 cities and towns all over India. The

group owns and 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

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indiatimes.com. All of its brands are multinational in outlook, traditional at heart and

national in spirit. From the very first edition on November 3, 1838 the mammoth BCCL

Group has come a long way. By way of the innovative venture of Times Private Treaties

(http://www.timesprivatetreaties.com), the BCCL Group holds 30 equety in ARLI.

Leader Ship Team

Mr. Rajiv Jamkedar

Managing Director & Chief

Mr. K.S. Gopalakrishnan

Executive Officers Chief financial officers

Mr. Saibal Ghosh

Chief Investment Officers

Mr. Yateesh Srivastava

Chief Marketing Officers

Mr. Debmalya Maitra

Head-Audit Risk & compliance

Mr.PK Dinakar

Appointed Actuary

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Board of Directors

  • Mr. Sunil Godhwani

  • Mr. Ravi Mehrotra

  • Mr. Kamlesh Dangi

  • Mr. Douglas C. Henck

  • Mr. David Wolf

  • Mr. Jan Aartvander Steen

  • Mr. Sivakumar Sundaram

  • Mr. K N Memani

  • Dr. Adarsh Kishore

  • Rajiv Jamkhedkar

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SWOT Analysis

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organization’s resources and capabilities to the requirements of the environment in which the firm operates. In other words, it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decision-making process of the organization.

S - Strenght W – Weakness O – Opportunities T – Treats

Strength:

. Innovative Policies with emphasis on long term returns Online products like iTerm . International expertise of AEGON group

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. Strong and aggressive marketing AEGON companies employ approximately 28,000 people and serve some 40 million customers across the globe . Religare has over 10,000 employees across multiple geographies, Religare serves over a million clients

Weakness:

Less penetration in rural areas . . Small agent base catering to huge customer base as compared to big players

.More no of competitors

Threats:

Stringent Economic measures by Government and RBI

Entry of new NBFCs in the sector Market changes

Opportunity:

.Growing rural market.

. . Earning Urban Youth. . Cross selling through financial services such as banking .

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ULIP Products

  • What is ULIP ?

  • Difference between ULIP and Mutual fund

  • Structure of ULIP

  • Types of funds under ULIP

  • Advantage of ULIP

  • Disadvantage of ULIP

  • ULIP feature

  • Aspects of ULIP

  • Categories of ULIP

  • Investment Strategies

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Introduction

A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that unlike a pure insurance policy gives investors the benefits of both insurance and investment under a single integrated plan.

What is ULIP

ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy which provides a combination of risk cover and investment. The dynamics of the capital market have a direct bearing on the performance of the ULIPs. In a ULIP policy, the investment risk is generally borne by the investor.

What is the difference between ULIP and Mutual Funds

By concept, there is only a small difference between ULIP schemes and a Mutual fund scheme, in terms of product structure, excluding risk coverage. They are both market linked for returns, and they will both carry market risk. Based on the investor’s selected stock performance, his returns will reflect exactly that in both cases. For both options, a fund manager will be responsible for running the scheme. That is all as far as the similarities are concerned, i.e. the product structure. There

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are significant variations in the way the two products are managed, and, on an important note, regulated.

Regarding regulation, Mutual Funds are regulated by the SEBI, while ULIPs are regulated by the IRDA. From an industrial point of view, while Mutual Funds focus on low costs and better performance as the USP, ULIP looks more at distribution reach as the USP.

Summary:

Mutual Funds are regulated by the SEBI, while ULIPs are regulated by the IRDA. Mutual Funds are sold by un-tied agents, while ULIPs are sold by tied agents attached to one particular insurer. Mutual funds have stricter transparency requirements than ULIPs. ULIPs are more flexible than MFs, as they allow you to increase your life cover while the premium remains the same; unlike ULIPs, where you have to buy a new policy altogether.

Structure of ULIP’s

ULIP’s offered by different insurers have

varying charge structure.

Broadly the different types of fees and charge given below.

Premium Allocation Charges

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This is the amount the company will deduct from your premium upfront which will reduce your investment considerably. These charges were very high when ULIPS were introduced in India. Now, after several interventions by IRDA, ULIPS charges have come down drastically. But still these charges reduce the investment of the customers and bring down returns.

Mortality Charges

Whenever you buy a life insurance policy, the company offering it will levy a charge for the insurance protection upon death and to cover certain other expenses. In a nutshell this is the actual cost of insurance. Technically called mortality charge, this is deducted usually every month from your policy's account value. While the insurance company can tweak these charges from time to time it cannot exceed the maximum limit as specified in the policy.

Fund Management Charges

This is the amount charged by the company to manage the fund. These charges are not on the premium paid but on the fund value and are the major source of revenue for the company. These charges are in the range of 0.75% pa to 1.35% pa depending on the nature of the fund. In NAV guaranteed plans, there can be an additional charge of 0.5%pa.

Policy Administration Charges

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These are used to pay the costs of maintaining the policy, including accounting and record keeping. Administration fees usually are deducted from your policy value once a month.

Surrender charges

This charge is deducted from your cash value if you surrender (terminate) your policy during your surrender charge period. Be sure to check the length of your surrender charge period when evaluating a policy to buy.

Fund Switching Charge

Switches are options given to policyholders of unit-linked insurance plans (Ulips) to move their investments from one fund to another, within one plan.

You can transfer units fully or partially between fund options - equity, debt and equity to debt.

Typically, Ulips offer pure equity, debt and balanced fund options to their customers. Mostly, each Ulip can invest in a minimum of four-five funds. And, the policyholder is allowed to choose the funds where his/her money will be invested.

Advantage of Ulip’s

Unit Linked Plans offer unique opportunity to combine protection with

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investments. Some special features of Unit Linked Life Insurance Policies (ULIPs) are:

Provides

flexibilityininvestments

ULIPs offer a complete selection of high, medium and low risk

investment options under the same policy. You can choose an appropriate policy according to your risk taking appetite, coupled with the opportunity to switch between fund options without any additional expense for specified number of switches. ULIPs provide the flexibility to choose the sum assured and investment ratio in the annual targeted premium. It also offers the flexibility of one time increase in investment portfolio, through top-ups to avail investment opportunity offered by external environment or own income flows.

Transparency The charge structure, value of investment and expected IRR based on 6% and 10% rate of returns, for the complete tenure of the policy are shared with you before you buy a product. Similarly, the annual account statement, quarterly investment portfolio and daily NAV reporting, ensures that you are aware of the status of your investment portfolio at all times. Most companies publish latest NAVs on their respective websites on a daily basis.

Liquidity To cope with unforeseen circumstances, ULIPs offer the benefit of partial withdrawal; wherein after 5 years you can withdraw funds from our Unit Linked account, retaining only the stipulated minimum amount.

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Disciplined

and

regular

 

savings

ULIPs help you inculcate a regular saving habit. Also, the average

unit costs tend to be lower than one time investment.

 

Multiple

benefits

bundled

in

one

product

ULIP is an outstanding

solution

for

risk

cover,

long

term

investments with the benefit of various investment opportunities,

coupled with tax benefits.

 

Spread

of

risk

ULIPS are ideal for those investors who wish to avail the benefit of market linked growth without actually participating in the stock market, with the added benefit of risk-cover.

Disadvantages

  • Flexibility

  • Initially heavy cost

  • No control on Cost

ULIP’s Feature

  • Top up

  • Switch between fund

  • Increase or decrease the protection level during the term of policy

  • Cover continuance options

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  • Surrender options

  • Range of riders which can be attached to the main policy to provide you added protection.

Aspects of ULIP’s

  • All the charge deductible under the policy

  • Payment on premature surrender

  • Features and benefits

  • Limitations and exclusion

  • Lapsing and its consequence

  • Other disclosure

Our ULIP’s Products

These plans give you double benefit of life cover and market linked investment.

Aegon Religare future protect premier

Aegon Religare future protect plan

Aegon Religare future protect plus plan

Aegon Religare assure plan

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Aegon Religare assure plus plan

Aegon Religare I maximizer plan

Depending on the purpose of investment ULIPS can be divided into the following types:

What Are The Different Types Of ULIPs?

ULIPs for Retirement Planning: These plans accumulate a portion of your savings over a period of time and the corpus amount is made available to the policyholder at maturity for purchasing an immediate annuity plan.

ULIPs for Child Education: These plans aim at providing financial support for expenses related to children like education, marriage etc.

ULIPs for Wealth Creation: There are many ULIP’s with the objective of accumulating wealth over time which will help the policyholder beat the rising costs by offering return on investment.

ULIPs for Health Solutions: Keeping in mind the rising medical expenses, these plans allow the policyholder to claim for health related expenses of any kind. Some plans may also fund your future health insurance charges.

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Most insurers offer a wide range of funds to suit one’s insurance and investment objectives, risk profile and time horizons. Different funds have different risk profiles. The potential for returns also varies from fund to fund The following are some of the common types of funds available in India, along with an indication of their risk characteristics.

General Description

Nature of

Risk Category

 

Investment

Equity Funds

Primarily invested in company stocks with the general aim of capital appreciation

Medium to High

Balanced Funds

Combining equity investment with fixed interest instruments

Medium

Income, Fixed Interest and Bond Funds (also known as debt fund)

Invested in corporate bonds, government securities and other fixed income instruments

Medium

Cash Funds (also known as secured fund)

Sometimes known as Money Market Funds — invested in cash, bank deposits

Low

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and money market instruments

   

As we can see, equity funds invest largely in equity and carry higher risk. These funds are preferable for young investors with higher risk appetites. Income, Fixed Interest, Bond and Balanced funds provide lesser risk then equity funds. Middle aged investors with medium risk profile can opt for balanced funds that invest only part of the corpus in equities. Cash funds are an ideal option for risk-averse customers.

Product comparison of Aegon Religare with other companies

conclusion

  • Aegon Religare Ulip’s plan is one of the most sold plan in the insurance industry.

  • Aegon Religare introduced online Ulip’s plan.

Rising Star child plan

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Why to buy this plan

Child plan is required now a days as cost of education is growing at significant rate as per survey these are some interesting facts and

figures:-

In spite of great increase course and tuition fees there are various other expenses which comes to up bring the child if we consider all those fees and expenses we can easily get that in present scenario a child plan is

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AEGON RELIGARE most to get rid of increasing expenses and maintain good life standard life for

most to get rid of increasing expenses and maintain good life standard life for our children.

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AEGON RELIGARE Rising star- Aegon Religare Rising Star Insurance Plan is a comprehensive unit-linked plan designed

Rising star-Aegon Religare Rising Star Insurance Plan is a comprehensive unit-linked plan designed to help parents systematically accumulate the desired corpus for their child’ s future, along with providing 360 degree protection to ensure that the child is financially secured in case of an unfortunate event.

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AEGON RELIGARE concerned about the rapid change in the way of life. He is also aware

concerned about the rapid change in the way of life. He is also aware of the rising inflation and spiralling education expenses.Moreover, he is cognisant that life is uncertain and the future of his family, especially his son needs to be protected. He relies on AEGONReligare’s Rising Star Insurance Plan.

Cover Amount (Base Sum Assured): Rs.10 lakhs, Policy Term: (25 – age at entry of child) = 23 years, Premium Payment Term: 23 years, Annual Premium: Rs.50, 000 (exclusive of service tax).

Mr. Mahesh (Age 34 years) works with a private firm. His wife is a teacher and they have a son - Anuj who is 5 years old. Although Mahesh and his wife’s salary provides well for their family, he is

His plan details are as follows:

Comparison between different companies child plan

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FEATURE

ARLIFE

HDFC

BHARTI AXA

S

DEATH

1.Higher of SA or

  • 1. Highest of SA

  • 1. SA paid immediately

BENIFIT

105% of Total premiums

or 105% of total premiums

2.Future premiums paid

paid

paid

by Bharti AXA into

immediately

immediately

fund

2.Future

  • 2. Fund Value

  • 3. Option of Income

premiums paid

paid on

benefit equal to 10% of

by ARLI into fund 3.Income benefit

maturity PLUS Save Option:

Sum Assured every year to child till maturity

equal to

Future

  • 4. Fund value paid at

annual premium paid every year to child till

premiums paid by HDFC life into fund

maturity

Save

– n –Gain

age 25 years 4.Fund value paid at maturity

Option: 50% of future premiums paid by HDFC life into fund and 50% of the future premiums paid on an annual basis to beneficiary

RIDER

ADD,CI

NO

NO

WAIVER

YES

YES

YES

INCOME

YES

NO

NO

RIDER

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  • In case of your death during Policy Term, benefits to nominee:

o Higher of cover amount (Sum Assured) or 105% of all premiums paid immediately o All future premiums waived off and paid by the company into the Policy Fund value, policy continues o Amount equal to the annualized premium excluding rider premium will be paid every year to the nominee o On maturity, Policy Fund Value will be paid

  • In case you survive the Policy Term, you will receive the fund value existing on the maturity date

  • Auto rebalancing of funds

  • Partial Withdrawal

  • Tax benefits as per prevailing tax laws. Please consult your tax advisor for details.

  • This plan not only makes provision for your children’s future (maturity benefit) but also ensures that their future remains secured in case of your unfortunate death (death benefit + policy continues + income benefit ).

Conclusion

  • Rising star is the only child plan having income benefit rider

  • Various riders are also available

  • It is important to have child plan

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Target market for child plan

Financially securing the child’s future and saving for his / her educational expenses is an important need of all parents. This plan is thus suitable for all parents who have children between the age group of 0-15 years and are looking for a unit-linked plan with long term investment in mind.

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DATA ANALYSIS AND INTERPRETATION

These questions were asked to 100 customer and client and based on their answers this interpretation these data are analyzed.

1.Are you aware about AEGON RELIGARE and its product before you got into contact with an executive?

Sales NOT AWARE AWARE PARTIALLY AWARE
Sales
NOT AWARE
AWARE
PARTIALLY AWARE

Out of 100 around 49 said they were not aware,36 said they were aware about the company and 15 people said they knew but partially.

.Do you have any ULIP’s plan?

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AEGON RELIGARE YES No
AEGON RELIGARE
YES
No

Out of 101 clients 64 sai d they don’t have any where as 37 said they do have such plan.

3.Do you want to take A EGON Religare ULIP’s plan?

Out of 100 client/custo

mer 33 said they WILL TAKE IN FUTU RE,17 SAID

THEY ALREADY TOOK,26 SAID THEY ARE NOT SURE AND 23 SAID THEY DON’T WANT .

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THEY WILL TAKE THEY ALREADY TOOK NOT SURE DON’T WANT
THEY WILL TAKE
THEY ALREADY TOOK
NOT SURE
DON’T WANT

4.Do you compare between different insurance companies while taking the plan?

46

 
AEGON RELIGARE Sales YES NO
AEGON RELIGARE
Sales
YES
NO

Interpretation

66 out of 100 said they don’t compare while 33 said they do such research before buying.

5.Do you see child plan useful in meeting child’s need in future as per increasing inflation in edaucation?

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AEGON RELIGARE

Not Sure-28 Yes-38 No-34
Not Sure-28
Yes-38
No-34

Interpretation

Out of 100 customer and clients 28 said they are not sure, where as 33 said they don’t think so and 38 said that they think it will work out.

6.Do you want child plan for your child?

48

 
AEGON RELIGARE not sure yes no
AEGON RELIGARE
not sure
yes
no

Interpretation

64 out of 100 said they want one child plan,20 said they are not sure,whereas,16 said they don’t wan’t any such plan.

7.Do they feel ULIP’s is important to take?

49

 
AEGON RELIGARE Yes no
AEGON RELIGARE
Yes
no

Interpretations

76 out of 100 think that it’s important to have such product for any uncertainity.whereas,24 people don’t think so.

TABLE 1:

CLASSIFICATION OF RESPONDENTS ONTHE BASIS OF OCCUPATION

Occupation

No of respondents

% of

Respondents

Self Employed

  • 37 37

 

Student

  • 05 05

 

Govt. employee

  • 10 10

 

50

 

AEGON RELIGARE

Professional

  • 25 25

 

Pvt. Employee

  • 23 23

 

Total

100

100

Concept of the table

The above table shows classification of respondent’s on the basis of occupation.

Analysis

Maximums of 37 % of the respondents belong to Self employed category. Another 25 % are professional. Working professional 23 % share of the respondents. 10 % of the Govt. Employees. students occupy 5 % of the total sample survey

GRAPH 3

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION

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AEGON RELIGARE

Employee 10 15 20 25 30 35 40 No of respondents employed 5 employee No o
Employee
10
15
20
25
30
35
40
No of respondents
employed
5
employee
No o f respondents
Govt.
student
Self
Professional
Pvt.
0

Inference

Hence

it

can

be

inferred

that

majority

responde nts are

Self

employed.

Concept of the table

The above table shows

whether respondents are insured.

Analysis

52

 
AEGON RELIGARE Majority of 77 % respondents are insured and 2 3 % of the respondents
AEGON RELIGARE
Majority
of
77
%
respondents
are insured
and
2 3
%
of
the
respondents are not ins ured of the total survey.
Graph 5:
SHOWING THE RESPONDENTS WHO ARE INS URED
No. of Respondents
Yes
No
53

AEGON RELIGARE

Inference

Hence it can be inferred that maximum respondents are insured.

TABLE 6

SHOWING THE RESPONDENTS WHO ARE SATISFIED WITH THEIR CURRENT ULIP’S

Particulars

No. of Respondents

Percentage

Yes

 
  • 70 70%

NO

 
  • 30 30%

Total

100

100%

Concept of the table

The above table shows whether the respondents are satisfied with their ULIP’s.

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AEGON RELIGARE

Analysis

Majority of 70 % of the respondents are Satisfied with their ULIP’s and 23 % of the respondents are not of the total survey.

GRAPH 6

SHOWING THE RESPONDENTS WHO ARE SATISFIED WITH THEIR CURRENT INSURER

55

 
AEGON RELIGARE No. of Respondents Yes No
AEGON RELIGARE
No. of Respondents
Yes
No

Inference

Hence it can be inferred that maximum respondents are satisfied with their current Insurer.

TABLE 7:

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AEGON RELIGARE

CLASSIFICATIONS OF RESPONDENTS ON THE BASIS OF THE PLANS THEY ARE ULIP’s IN ARLI

 

No. of Respondents

% of Respondents

Protection

41

41

Investment

31

31

Pension plan

10

10

Unit linked youngster plan

10

10

Saving

8

8

Total

100

100%

Concept of the table

The above table shows classifications of respondents on the basis of the Plans they are Insured.

Analysis

Out

of

100

respondents

41

%

of

them are insured in the

Protection Plan.31% of them are insured in Investment Plan. 10% of the

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AEGON RELIGARE

respondents are equal ly insured in Pension Plan and

Unit

Linked

insurance plan. 8% of th e respondents are insured in Saving s Plan.

GRAPH 7:

CLASSIFICATIONS OF RESPONDENTS ON THE BASIS OF THE PLANS THEY ARE INSURED

Unit Linked Y oungster Plan No. of Respondents Protection Investment Pension Plan Saving
Unit Linked Y oungster Plan
No. of Respondents
Protection
Investment
Pension Plan
Saving

Inference

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AEGON RELIGARE

Hence it can be inferred that maximum respondents are insured in Protection Plan.

TABLE 8:

CLASSIFICATIONS OF RESPONDENTS ON THE BASIS OF THEIR FAVORED INSURANCE COMPANY

Particulars

No. of Respondents

% of Respondents

LIC

 
  • 45 45%

HDFC-SLIC

 
  • 17 17%

ICICI

 
  • 10 10%

Birla Sun Life

 
  • 8 8%

Bajaj Allianz

 
  • 8 8%

AEGON RELIGARE

 
  • 2 2%

Others

10

10%

Total

100

100%

Concept of the table

The above table shows classifications of respondents on the basis of their favored Insurance Company.

Analysis

The survey depicts that out of 100 respondents, 45% of them favored is LIC. 17% of Respondents favored is HDFC-SLIC. 10% of the

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AEGON RELIGARE

Respondents favored is ICICI.8% of them favored is Birla Sun Life, another 8% of the respondents favored is Bajaj Allianz, 2% Respondent favored to AEGON RELIGARE and the rest 10% of the respondents are favored for other Insurance Companies.

GRAPH 8:

CLASSIFICATIONS OF RESPONDENTS ON THE BASIS OF THEIR FAVORED INSURANCE COMPANY

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AEGON RELIGARE

Bajaj 10 15 20 25 30 35 40 45 50 No. of Respondents 5 No. of
Bajaj
10
15
20
25
30
35
40
45
50
No. of Respondents
5
No. of Respondents
LIC
ICICI
HDFC-SLIC
OTHERS
Life
Birla Sun
Allianz
0
ARLI

Inference

Hence it can be inferred that majority respondents are favored for LIC.

TABLE 9:

SHOWING THE DIFFERENT WAYS THROUGH WHICH THE RESPONDENTS GOT AWARE OF ARLI

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AEGON RELIGARE

Particulars

No. of Respondents

% of Respondents

Advertisements

 
  • 20 20%

Friends & Relatives

 
  • 24 24%

Direct Selling Agents

 
  • 42 42%

Others

 
  • 14 14%

Total

100

100%

Concept of the table

The above table shows how the respondents came to know about ARLI.

Analysis

The survey depicts that out of 100 respondents, 20% of them came to know about HDFC-SLIC through Advertisements.24% of them came to know through Friends and Relatives.42% of them came to know about ARLI through Direct Selling Agents and the rest 14% of the respondents came to know through other different sources.

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AEGON RELIGARE

GRAPH 9:

10 5 0 No. of Respondents Agents Relatives Others Direct Selling Friends & Advertisements SHOWING THE
10
5
0
No. of Respondents
Agents
Relatives
Others
Direct Selling
Friends &
Advertisements
SHOWING THE DIFFERENT WAYS THROUGH WHICH THE
RESPONDENTS GOT AWARE OF ARLI
15
No. of Respondents
20
25
30
35
40
45

Inference

Hence it can be inferred that majority respondents are became aware of ARLI through Direct Selling Agents.

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AEGON RELIGARE

TABLE 10:

SHOWING THE RESPONDENTS INTERESTED IN THE PRODUCTS OFFERED BY ARLI

Particulars

No. of Respondents

% of Respondents

Yes

 
  • 60 60%

No

 
  • 24 24%

Can’t Say

 
  • 16 16%

TABLE 12:

CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF THEIR INVESTMENT INVESTED IN DIFFERENT COMPANIES FOR LIFE INSURANCE

Companies

No. of

Percentage

Respondents

LIC

 
  • 57 57%

HDFC Standard Life Insurance

 
  • 07 07%

ICICI Prudential Life Insurance

 
  • 10 10%

SBI

 
  • 04 04%

Max New York Life Insurance

 
  • 05 05%

Tata AIG

 
  • 03 03%

Bajaj Allianz

 
  • 03 03%

Birla sunlife

 
  • 04 04%

AEGON RELIGARE

 
  • 02 02%

OTHERS

O5

05%

Total

100

100%

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AEGON RELIGARE

Concept of the table

The above table shows classifications of respondents on the basis of their money invested in different Companies for Life Insurance

Analysis

The survey depicts that out of 100 respondents, 57% of them favored is LIC. 10% of Respondents favored is ICICI. 02% of the Respondents favored is ARLI. 4% of them favored is Birla Sun Life, another 3% of the respondents favored is Bajaj Allianz and the rest 05% of the respondents are favored for other Insurance Companies.

GRAPH 12:

CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF THEIR INVESTMENT INVESTED IN DIFFERENT COMPANIES FOR LIFE INSURANCE

65

 

AEGON RELIGARE

Others Birla sunlife AEGON RELIGAR E Bajaj Allianz Tata AIG SBI No. of Respondents LIC
Others
Birla sunlife
AEGON RELIGAR E
Bajaj Allianz
Tata AIG
SBI
No. of Respondents
LIC

HDFC standard l ife insurance

ICICI Prudential Life Insurance

Max NewYork Li fe Insurance

Inference

Hence it can be infe rred that majority respondents have inve sted in LIC.

SHOWING THE RESP ONDENTS WHO AGREE THAT THE S ERVICES

INSURANCE COMPANIE S HAVE IMPROVED AFTER ALLOWI NG PRIVATE

PLAY

YERS IN INSURANCE SECTOR

Particulars

No. of Respondents

% o f the

Respo

ndents

Yes

80

8

0

No

20

2

0

Total

100

1

00

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AEGON RELIGARE

Concept of the table

The above table shows whether respondents are agree that the services of the insurance companies have improved after allowing private players in the insurance sector

Analysis

As per the survey out of 100 respondents, 80% of them agree that the insurance sectors have improved a lot after allowing the private players in the Insurance Sector and 20% of them do not agree .

GRAPH 15:

SHOWING THE RESPONDENTS WHO AGREE THAT THE SERVICES HAVE IMPROVED AFTER ALLOWING PRIVATE PLAYERS IN INSURANCE SECTOR

67

 
AEGON RELIGARE No. of Respondents Yes No
AEGON RELIGARE
No. of Respondents
Yes
No

Inference

Hence it can be inferred that maximum respondents agree services of the insurance companies have improved after allowing private players in the insurance sector

CLASSIFICATION OF THE REPONDENTS ON THE BASIS OF THE SERVICE THEY EXPECT FROM THE COMPANY

Particulars

No. of Respondents

Percentage%

Easy Access ability to Deposit center

 
  • 31 31%

Time to time premium collection

 
  • 19 19%

Provision in case of Dues

 
  • 13 13%

68

 

AEGON RELIGARE

Bonus &other schemes

37

37%

Total

100

100%

Concept of the table

The above table is shows the classification of the respondents on the basis of the service they expect from the company.

Analysis

As per the survey out of 100 respondents, 31% of them would like the Easy Access Ability to deposit Center service, 19% of them like the Time to time premium collection service, 13% of them like Provision in case of Dues service and the rest 37% of them like Bonus & other Schemes service.

GRAPH 17:

CLASSIFICATION OF THE REPONDENTS ON THE BASIS OF THE SERVICE THEY EXPECT FROM THE COMPANY

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AEGON RELIGARE

No. of Respondents Easy Access ability to Deposit center Time to time premium collection Provision in
No. of Respondents
Easy Access ability to Deposit
center
Time to time premium collection
Provision in case of Dues
Bonus &other schemes

Inference

Hence it can be inferred that majority respondents like the Bonus and other schemes

service.

Summary of Findings and Conclusion

Findings

  • Majority respondents are between age group of 24-35 years

  • On the basis of Sex the majority of the Respondents are Male.

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AEGON RELIGARE

  • On the basis of Occupation majority of the Respondents are employed.

  • Maximum respondents agree that it is essential to have ULIP’s.

  • Maximum respondents are ULIP’s

  • Maximum respondents are satisfied with their current company.

  • Maximum respondents are insured in ULIP’s Plan.

  • Majority of the respondents are favored Insurance Company is LIC.

  • Majority respondents became aware of ARLI through Direct Selling Agents.

  • Maximum respondents are interested in theULIP’s Products offered by ARLI.

  • Majority respondents concern is Tax Benefit while taking the ULIP’s.

  • Majority respondents have invested in LIC.

  • Majority respondents are only satisfied towards the Return associated with their policy in ARLI.

  • Majority respondents want the company to work on Transparency.

  • Maximum respondents agree services of the insurance companies have improved after allowing private players in the insurance sector.

  • Majority respondents like the Bonus and other schemes service.

  • Majority of the respondents have rated good for the services given by ARLI

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AEGON RELIGARE

  • Majority of the respondents have found a great difference in Tax Planning which is better in ARLI.

  • Majority of the respondents feel that ARLI provides value for their money.

  • Majority of the respondents say they will purchase policies from ARLI in future.

CONCLUSION

Our exhaustive research in the field of ULIP’s threw up some interesting trends which can be seen in the above analysis. A general impression that we gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money.

People in general have been impression by the marketing and advertising campaigns of insurance companies. A high penetration of print, radio and Television ad campaigns over the years is beginning to have its impact now.

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AEGON RELIGARE

Another heartening trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times.

The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the opportunity for a relative new comer like AEGON RELIGARE Life Insurance Company Ltd. LIC has never been known for prompt service or customer oriented methods and AEGON RELIGARE life insurance can build on these factors.

DA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

SUGGESTIONS /RECOMENDATIONS

1) As the people think that insurance is a tool to protect their family & tax saving device. They are aware of the fact & realizing its importance. The company should try to expand & build up its

73

 

AEGON RELIGARE

infrastructure because there is a large potential for insurance in India. 2) There is scope to sale insurance policy by concentrating on age group 28-40 years here potential of Customer is there (Example.

3)

Software Professional, BPO employees, and Professionals) As per the survey the major respondents are males, it is advisable to retain them and also check their further requirements to retain them for a longer period.

4) Since AEGON RELIGARE Life Insurance Company Ltd is leading with several companies’ policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. 5) Protection Plan or Savings can be sold well by concentrating on age group of 35-45 years. (Example. Government Employees and Businessman) 6) As per the survey the major respondents are the Self employed so the company should try to convince them to invest in the Policies as per their basis Like Savings plan for the Pension, Investment Plans for the Businessman, Retirement plan for the Government employees, etc.

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AEGON RELIGARE

7) As major respondents think to have Life Insurance policy is very essential there is a lot of scope for Insurance Company. 8) As major of the respondents are insured, it is necessary to adopt any good marketing strategies and also provide them the details of various policies, Return on Investment etc. available in ARLI, so that the respondents would might get insured in the company in future. 9) ARLI should introduce attractive policies & also attractive bonus on policies to attract more potential customers. 10) Majority of the respondents favorite company is LIC, as the Company provides high returns as well as give maximum guaranty on their investments and it is a Government oriented Company so there will be maximum no loss, people think in private companies there is no guaranty that their investment will be safe, so the ARLI people should give guarantee for their investments and the investments should be used in a particular field or area in which there will be maximum no loss & as well as gain trust of the respondents but providing different schemes, incentives etc., and also give good returns so that the respondents get diverted from LIC to ARLI.

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AEGON RELIGARE

11) There is a need for better promotion for the investment products and services. The company should advertise its products through television because it will reach to the masses. 12) Many of the respondents can’t say whether they want to buy the products offered by ARLI or not, so the company should provide these respondents the complete details of the products through their agents, etc. so that the respondents understand the benefit of the products provided and takes the pleasure of buying them. 13) ARLI should try to build trust among the public by making people aware of their investment is safe, high return on vestment, tax benefits. 14) Maximum respondents are satisfied with the return provided by ARLI, the company should now concentrate on what basis the some of the customers who are not satisfied 15) As per the want of the customer, the company should provide more returns.

16) The Government

employees are very lenient in their work, after

introducing he private companies in the insurance sector ,the delay in service provided by the Government Companies, the customer would shift to private as they are always Punctual and strict in providing their service

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AEGON RELIGARE

Ex: BSNL broadband people do not provide service on time when needed but the Airtel people provide the service as soon as it required with no delay. 17) Approx 36% of respondents differ with their previous insurance provider, they feel that ARLI is providing good Return for their investment, so ARLI if possible try to provide more Diversified return customer. 18) The ARLI should improve Effective Service as well as Good Returns. 19) Respondents are willing to purchase ARLI Insurance policies in future; this benefits ARLI as more potential customer in future.

77