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AT
(Industry Integrated)
TO
BY
PRIYANKA SHARMA
Reg. No. A8751216
Under the guidance of
BANGALORE.
December 2009
1
CERTIFICATE
This is to certify that the project report at
(Industry Integrated)
TO
PRIYANKA SHARMA
FACULTY GUIDE
Signature:
2
STUDENT’S DECLARATION
(Industry Integrated)
TO
Is my original work and the same has not been submitted for the
titles or prizes.
Place:- Bangalore
PRIYANKA SHARMA
Date:- Regd.
No. A8751216
3
ACKNOWLEDGEMENT
and Dean, NIAM Training Officer Mrs. Leela G. for inspiring me to take
up this project.
And the Territory Manager Mr. Mahesh and all my colleagues, friends for
PRIYANKA SHARMA
4
CONTENTS
Chapter name
Page No.
1. Introduction 06-08
1.1. Needs of the study 8
1.2. Purpose of the study 8
1.3. Methods of Data collection 9
5
5. Study of the problem 39-52
“ PREFERENCE FOR UNIT LINK INVESTMENT PLAN
OVER TRADITIONAL INVESTMENT AVENUES ”
(A STUDY ON SECURITY AND INVESTMENT PLAN)
7. Recommendation 65-67
Annexure 70-72
Bibliography 73
6
CHAPTER- 1
INTRODUCTI
ON
7
1. INTRODUCTION
My work was of marketing and sales of financial products, the efforts were
done to make improvements in the customer acquisition process for better
results. I was handling life insurance products of ICICI Prudential. The Project
is about the study of the Preference For Unit Link Investment
Plans Over Traditional Investment Avenues.
Though I was working in the financial consultancy but the major focus was
on the ICICI PRUDENTIAL’S ULIP PLAN PRODUCTS. But the major
focuses was on making a customer profile for ICICI PRUDENTIAL and
study the position of Icici prudential in the market as well as among its
competitors and also to find reasons for the preferences of ULIP PLAN over
other investment avenues. In addition, investors were to be made aware
about various products and services offered by Icici prudential and checking
the satisfaction level of present customers.
8
had to make telephonic interviews from the data. Company activity was also
one of the major sources for generating business. Initially we were even
accompanied sales representatives to the clients place. Main objective was to
know the need of the customer and how to fulfill that in the best way.
The purpose of this study was to discover the answer for the following
questions with the help of Questionnaire filled by using Interview method. The
objectives of the study were compiled in the following broad groups:
• To know the reasons for increasing trend of unit linked insurance
plan.
• To know how ULIP differ from Traditional plans means how they
gave better returns than traditional plan.
• Comparison of ULIP with other investment instrument available in
the market.
• Comparison of investment plan with other tax saving instruments.
• To check the awareness level of people about insurance.
9
For the study of the proposed topic a Questionnaire was framed with the help
of the experts involved in the insurance business. I also took the help of some
existing as well as new investors to know their expectations from insurance
products like ULIP and other Traditional products. These methods helped me
to frame the questionnaire as per the need of my study.
10
the investment, income tax benefits and medical benefits.
CHAPTER 2
INDUSTRY PROFILE
11
2.1 INSURANCE INDUSTRY PROFILE
Insurance
What is insurance:
Mankind is exposed to many serious perils such as property losses from fire
and windstorm and personal losses from disability and premature death.
Although it is impossible for an individual to foretell or completely prevent their
occurrence but it is possible to provide against their financial effect the loss of
property and earnings.
From the point of view of the individual the life Insurance may be defined as a
contract whereby for a Consideration amount called the premium, one party
(the insurer) agrees to pay to the other (the insured) or a beneficiary a
particular amount upon the occurrence of death or any other agreed event.
12
• Assets created by the owner in expectation of future needs
have a value
• Losses of assets for any reason deprive the owner of the expected
benefits.
• It acts as a form of a safeguard against misfortunes.
• From the point of view of community life insurance may be defined as a
social .
As said earlier that the making is exposed to many serious perils which risk
the security of their belongings. The risk here means that there is a possibility
of occurrence of loss or damage to the property, it may happen or may not
happen. Insurance is relevant only in the contingency of uncertainty. If there is
no uncertainly about the occurrence of the loss it can’t be insured against:
• Assets are likely to be destroyed or made non-functional due to perils
like firefloods, breakdowns, lightning and earthquake.
• Damage to assets caused by any perils is the risk that assets are
exposed to.
• Insurance become relevant only if there is uncertainly of occurrence of
event leading to loss.
• No uncertainty No insurance.
• We can say that the human life value is an ongoing generating asset,
which can be lost on early death or disability caused by accidents.
• Insurance doesn’t protect the assets but only compensates the
economic or financial loss.
• Basically insurance covers tangible assets but the concept can be
extended to intangible also.
Life Insurance:
13
has the monopoly in this sector since its nationalization. In our wordily life,
whenever there is uncertainty, there is an involvement of risk. The instinct for
security against such risk is one of the basic motivating forces determining
human attitudes. As a squeal to this quest for Security, the concept of
insurance must have been born. The urge to provide insurance or protection
against the loss of life & property must have prompted people to make some
sort of sacrifice willingly in order to achieve security through “COLLECTIVE
CO-OPERATION”, in this sense; story of insurance is probably as old as THE
story of mankind.
Unlike any other saving plan, a life insurance policy affords full protection
against risk of death. In the event of death of a policyholder, the insurance
14
company makes available the full sum assured to the near and dear of
policyholder. In comparison, any other saving plan would amount the total
saving accumulated till date. If the death occurs prematurely, such saving can
be much lesser than sum assured. Evidently, the potential financial loss of the
family of the policyholder is sizable.
A life insurance policy is the only financial instrument, the proceeds of which
can be protected against the claims of a creditor of the assured by affecting a
valid assignment of the policy.
A life insurance policy can, after a certain period (generally Three years), is
surrendered for a cash value. The policy is also acceptable as a security for
commercial loans, for example, a student loan.
• Disability benefits:
Death is not only hazard that is insured; many policies may include disability
benefits. Typically, these provide for waiver of future premiums and payment
15
of monthly installment periods.
• Accidental death benefits:
Many policies can also provide for an extra sum to be paid (typically equal to
the sum assured) if death occurs as a result of accident.
• Tax relief:
Under the Indian income tax act, the following tax relief is available
1. 20% of premium can be deducted from total income tax liability.
2. 100% of the premium paid is deductible from your total taxable
income.
When these benefits are factored in, it is found that most Policies offer returns
that are comparable /or even better than other saving modes such as PPF,
NSC etc. moreover, the cost of insurance is a very negligible.
• Benefits to business:
• Benefits of society:
16
the Government. India is regarded as under- insured country with insurance
penetration at a very low level of 0.6% of GDP. Insurance, as a rule, has
always been given very low priority by corporate India. It is always taken with
reluctance, usually only when it is compulsory, and then only by big industrial
houses. Without exception it is always inadequate to meet the needs of the
corporate sector. In addition to the tradition exposure of fire, floods, workers
compensation and the interruption, Corporate India also has to address
unpredictable changes in areas such as environment; security; occupational
health and safety; public liabilities; Directors and Officers Liability and product
liability It therefore becomes quite obvious that purchase of insurance, in
itself, will not substitute for a soundly based and property implemented Risk
Management Program as insurance can only offer some financial relief by
replacing the plants; it cannot replace the loss in development of a business
or development of the market.
17
Various Players Presents In The Market
18
15.Bharti AXA Life insurance Company Ltd.
The graph shows that among all the private life insurance companies ICICI
Prudential is the biggest player having 32 % market share. It shows the
19
popularity and acceptance of ICICI Prudential among the people after LIC of
India.
CHAPTER 3
COMPANY PROFILE
20
3.1 ICICI PRUDENTIAL LIFE INSURANCE
ICICI
The World Bank established ICICI LTD in 1955, the Government of India and
the Indian Industry, promote Industrial development of India by providing
project and corporate finance to Indian industry.
21
ICICI has grown from a development bank to a financial conglomerate and
has become one of the largest public financial institutions of India. ICICI has
financed almost all major sector of the economy, covering 6848 companies
and 16851projects. In the fiscal year 2002- 2003, ICICI had disbursed a total
of Rs 45673 billion. Assets worth.1676.59 billion as on 31st of march 2005
and customer 6 million and 5 million policyholder account. Multi channel
network, 573 branches and 2000+ATMs
PRUDENTIAL
Prudential was founded in 1848. Prudential is the largest life insurance
company in the United Kingdom. Provides retail financial services products
and services to more than 20 million customers, policyholder and unit holders
and manages over £300 billion of funds worldwide (as of 31 December 2006).
In Asia, Prudential is the leading European life insurance company with life
operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the
second largest retail fund manager for Asian sourced assets ex-Japan as at
June 2006. Its fund management business has expanded into a total of ten
markets .
Prudential “genesis”
Founded in 1848-U.K.
Fourth largest insurance company in the world as per fortune 500 in terms of
22
revenues
Leading life insurance Company in United Kingdom.
Over US$ 270 BILLION (Rs.12, 69,000 crores) under a management.
AAA rating from standard & poor’s (the highest rating)
Over 75 years of experience with operation in 11 countries.
23
• Providing assistance in various matters like nominations, assignment,
alteration of terms, change of address and payment of claims.
• Other activities like investment of funds, maintenance of accounts,
personnel management, data processing and complying with other
legal and regulatory requirements
• These can be termed as the important activities of the Life Insurance
companies. The insurance companies may concentrate these
activities at ones place if it area of operation is limited or the activities
may be decentralized because of the fact that the area of that
company is also decentralized.
Structure Of The Company :
24
ICICI Bank :
PRUDENTIAL PLC :
25
ICICI Prudential Life Insurance offers a range of innovative, customer-centric
products that meet the needs of customers at every life stage. Its products
can be enhanced with up to 4 riders, to create a customized solution for each
policyholder. Savings & Wealth Creation Solutions:
• Save'n'Protect is a traditional endowment savings plan that offers life
protection along with return.
• CashBak is an anticipated endowment policy ideal for meeting milestone
expenses like a child's marriage, expenses for a child's higher
education or purchase of an asset. It is available for terms of 15 and 20
years.
• LifeTime Super & LifeTime Plus are unit-linked plans that offer
customers the flexibility and control to customize the policy to meet the
changing needs at different life stages. Each offer 6 fund options -
Preserver, Protector, Balancer, Maxi miser, Flexi Growth and Flexi
balanced.
• LifeLink Super is a single premium unit linked insurance Plan, which
combines life insurance cover with the opportunity to stay invested in
the stock market.
• Premier Life Gold is a limited premium paying plan specially structured
for long term wealth creation.
• InvestShield Life New is a unit linked plan that provides premium
guarantee on the invested premiums and ensures that the customer
receives only the benefits of fund appreciation without any of the risks
of depreciation.
• InvestShield Cashbak is a unit linked plan that provides premium
guarantee on the invested premiums along with flexible liquidity
options.
Protection Solutions :
26
• Home Assure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and
cost effective manner.
• Child Plans: Education insurance under the Smart Kid brand provides
guaranteed educational benefits to a child along with life insurance
cover for the parent who purchases the policy. The policy is designed
to provide money at important milestones in the child's life. Smart Kid
plans are also available in unit-linked form - both single premium and
regular premium.
Retirement Solutions:
Health Solutions:
27
as well as at different stages in the treatment of various cancer
conditions.
28
affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the
policy is paid to the beneficiary nominated by the member on his/her
death.
ICICI Pru Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the
customer.
Accident & disability benefit: If death occurs as the result of an accident
during the term of the policy, the beneficiary receives an additional
amount equal to the rider sum assured under the policy. If an accident
results in total and permanent disability, 10% of rider sum assured will
be paid each year, from the end of the 1st year after the disability date
for the remainder of the base policy term or 10 years, whichever is
lesser. If the death occurs while traveling in an authorized mass
transport vehicle, the beneficiary will be entitled to twice the sum
assured as additional benefit.
Critical Illness Benefit: protects the insured against financial loss in
the event of 9 specified critical illnesses. Benefits are payable to the
insured for medical expenses prior to death.
Waiver of Premium: In case of total and permanent disability due to an
accident, the future premiums continue to be paid by the company till
the time of maturity. This rider is available with LifeTime Super
LifeTime Super Pension and CashPlus.
29
3.5 Management hierarchy
MD&C.E.O
EXECUTIVE DIRECTOR
HEAD OF SALES
VICE PRESIDENT
ASSOSIATE REGIONAL MANAGER
AREA MANAGER
SALES MANAGER
AGENCY MANAGER
UNIT MANAGER
ADVISIORS
30
VISION
To make ICICI Prudential the dominant life, health and Pensions player built
on trust by world –class people and service. This we hope to achieve by:
• Understanding the needs of customers and offering them superior products
and service
• Leveraging technology to serve customer quickly, efficiently and
conveniently.
• Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders.
• Providing an enabling environment to foster growth and learning for our
employees.
And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to
5 core values- integrity, customer first, Boundary less, Ownership and
passion. Each of the values describes what the company stands for the
qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity,
where we can play a significant role in redefining and reshaping the sector.
Given the quality of our parentage and the commitment of our team, there are
no limits to our growth.
Strengths:
31
ventures.
• ICICI Prudential is one of India’s leading financial institutions.
• Offering a complete financial solution that encompasses every sphere of life.
• From commercial banking
To stock broking
To mutual funds
To life insurance
To investment banking,
ICICI prudential is the first company, which got license of insurance trading
from I.R.D.A. (Insurance Regulatory & Development Authority)
• ICICI Prudential is leading in securities.
• The company has a network in 74 cities in India and offices in New-York,
London and Dubai.
• The group services a customer base of over 2.7 million.
Weaknesses:
• Though there is a huge market for insurance polices, the middle class who
constitutes bulk of this market is burdened with inflationary pressure and
therefore is not able to save for future.
• Less popularity of ICICI Prudential in villagers.
• Most of the people have faith on LIC as it is a Govt. Organization.
Opportunities:
32
Threats :
CHAPTER 4
RESEARCH METHODOLOGY
33
RESEARCH METHODOLOGY
Research Methodology deals with, the procedure adopted to carry out the
study. According to green and Tull:
“A research design is the specification of methods and procedures acquiring
the information needed. It is the overall operational pattern or framework of
the project that stipulates which information is to be collected from which
sources by what procedures’’. For conducting the study, as a researcher I
adopted both primary as well as secondary method of data collection.
•The need of the study arises because of the reason that a trainee must
understand the company, its achievements and tasks, products and
services and also to collect information about its competitors.
• But the major focus was on making a customer profile for icici
prudential and study the position of Icici prudential in the market as
well as among its competitors. In addition, investors were to be made
aware about various products and services offered by Icici prudential
and checking the satisfaction level of present customers.
• What were the reasons of neglecting the traditional plans and giving
the preference to ULIP? Which feature of ULIP attracted them more?
Are they satisfied with the features offered in ULIP or can it be made
more customers friendly?
34
4.2 OBJECTIVES OF STUDY
• To know how ULIP differ from Traditional plans means how they
gave better returns than traditional plan.
35
• The method used in this study is rational and based on judgmental scale
and methods.
In order to design the research it was needed to have perfect design for
sufficient data collection from different data sources to meet the objective of
the study. For this study I used both the methods of data collection. For
36
collecting the primary data I used questionnaire filled by interview method and
I went through the available sources of data like company data base,
publications and Internet for getting the secondary data. This collection of
data, both primary and secondary helped me to meet my objective of the
proposed study.
Primary data:
The primary data was collected with the help of questionnaire filled using
Interview method. As per the need of the study I formulated the questionnaire
with the help of the experts of insurance sector and some existing as well as
new customers whom I could bank up on. This helped me to frame the
required level of questionnaire needed for the study of the stated problem.
Secondary data:
The secondary data was collected from the database, publications and the
websites of the company through Internet.
For this study I used Exploratory research method and personally visited the
person selected as my sample for the study, randomly selected from the
population of the existing customer data base in the company, and collected
the required information in the form of data with the help of questionnaire filled
with personal interview and the company sources.
This is the stage where the planning is done about the sample size and
37
sampling procedures. According to the sampling plan I opted the following
basis for study.
The sample size means how many peoples should be interviewed in order to
get the primary data. In this research process the sample size was 150 (10%
of the total population), which was selected on random basis from the
population consisting 1500 existing customers of 2008-09, belonging to
different areas of Bangalore based on their age, sex, income level,
educational qualification and nature of job. Since I was unable to study the
entire population due to some constraints like time, money, resources, and
I chose random sampling process for my research. This was done in the
following manner. i.e. All the names of the population (1500) written on a
paper chit kept in a box and randomly picked 150 chits. Whoever name were
there selected as a sample of the study.
38
CHAPTER 5
39
INVESTMENT AVENUES ”
✪ULIP
5.1 (A)_Traditional
Term Insurance:
Under term insurance plan, sum assured is payable only if death occurs
during the specified pre-determined term. If death does not take place during
such term the amount of premium stands forfeited. Thus it can be seen that
40
the term insurance is nothing but the cost of pure protection. It is a contract,
which provides financial protection if death should occur within a specified
period. No survival benefits are provided under the contract.
Whole life insurance provides for the payment of the face value upon the
death of the insured, regardless of when it may occur. This policy furnishes
permanent protection to the insured at he moderate cost. This is highly
important for the average man or woman of moderate salary, who require
considerable family protection and whose limited income does not enable him
or her both to pay premiums and to accumulate a large savings fund. The
whole life policy provides a capital sum of money in the event of death of the
assured whenever that may occur.
Endowment Policy:
Endowment is a product, which includes Risk cover and saving also. In the
pure endowment policy the sum assured is payable in the event of death or
definitely on maturity. In an endowment sum assured is for sure given to the
policyholder on completion of the term. Endowment plans are very popular in
developing nations since they serve a dual purpose of life cover and savings.
Many a people in our country go for endowment products because of the
compulsory saving aspect. An endowment plan on the other hand is not a
cheap plan since the insurer has a dual liability of providing life cover and on
maturity giving the entire sum assured.
Annuities:
41
death in its pure form a life annuity may be defined as a contract whereby for
a premium consideration one party (the insurer) agrees to pay the other (the
annuitant) a stipulated sum (the annuity) periodically throughout life. The
purpose of the annuity is to protect again a risk—the outliving of one’s
income.
Unit linked insurance plan (ULIP) is a life insurance solution that provides the
client with the benefits of protection and flexibility in investment. It is a solution
which provides for life insurance where the policy value at any time varies
according to the value of the underlying assets at the time .
The investment is denoted as unit and is represented by the value that it has
attained called as Net Asset Value (NAV).
ULIP came into play in 1960s and became very popular in Western Europe
and America. The reason that is attributed to the wide spread popularity of
ULIP is because of the transparency and the flexibility which it offers to the
clients . As time progressed the plans were also successfully mapped along
with life insurance needs to retirement planning. In today’s times ULIP
provides solution for all the needs of a client like insurance planning, financial
42
needs, financial planning for children’s future and retirement planning.
Structure Of Ulip
ULIP distinguishes itself through the multiple benefits that it provides to the
consumer. The plan is a one stop solution providing
1. Life protection
2. Investment and Savings
a. Market linked fund based on risk profile
b. Switch option
c. Premium redirection
d. Automatic transfer plan (ATP)
3. Flexibility of cover continuance
4. Transparency
5. Extra protection with riders
a. Death due to accident
43
b. Disability
c. Critical illness
6. Liquidity
7. Tax planning
Maxi miser: If high growth is your priority, this is the plan for you. You can
enjoy long-term capital appreciation from a portfolio that is invested primarily
in equity and equity-related securities
Protector: - If on the other hand, your priority is steady returns, you can opt
for the protector Plan. Plan, you can accumulate a steady income at a low risk
across a medium to long-term period from a portfolio, which is primarily
invested in fixed income securities.
Balancer : -If you prefer a balance of growth and steady returns, choose our
balancer plan. This would ensure that your portfolio is invested in equity-
linked securities, as well as in fixed income securities.
44
Automatic Transfer Plan
45
✪ Funds would get transferred automatically a fixed date every month (1st or
15th ) from protector to maxi miser.
✪ You can either choose a fixed amount or a fixed percentage.
✪ Minimum ATP is Rs.2000
✪ ATP will cease if the funds in the protector are insufficient.
✪ Effectively this works like 12 free switches of fixed installments over and
above the 4 free switches.
ULIPs have gained high acceptance due to attractive features they offer.
These include:
✪ Flexibility
• Flexibility to choose Sum Assured.
• Flexibility to choose premium amount.
• Option to change level of Premium /Sum Assured even after the plan
has started.
• Flexibility to change asset allocation by switching between funds
46
✪ Transparency
• Charges in the plan & net amount invested are known to the customer
• Convenience of tracking one’s investment performance on a daily
basis.
✪ Liquidity
•Option to withdraw money after few years (comfort required in case of
exigency)
•Low minimum tenure.
• Partial / Systematic withdrawal allowed
✪ Fund Options
Traditional Plans :
These are the oldest types of plans available. These plans cater to customers
with a low risk appetite. Some of the common features of traditional plans are:
✪ Steady Investment
•Major chunk of investible funds are in debt instruments
•Steady and almost assured returns over the long term
✪ Features
47
5.4 Why/When we recommend TRADITIONAL and ULIPs
...Where the objective is only Risk cover and not savings and cost has to be minimum.
48
known to the investor (As he is the one who decides where his money
should be invested).
• There is a greater flexibility in terms of premium payments i.e. A
premium holiday is possible.
•You can also invest surplus money by way of top ups which will increase
your investment in the fund and thereby provide a push to returns as
well.
•There is no assured Sum on survival, the higher of the Sum Assured or
Fund Value is paid at the maturity or incases of death.
All of us want to save for a rainy day. We want our money or investment to:
(i) Give the best possible return and
(ii) Be available to us when we require it.
Financial planning makes this possible. Financial planning is an attempt to
maximize returns keeping in mind the liquidity and security of our investment.
Thinking long term while allowing for short-term needs that may arise.
•One plus lump sum of money to
(a) Produce income.
49
(b) Increase the capital
One can invest money only when one possesses it, which is possible by
saving systematically. Selecting a good saving scheme can do this.
✪ Safety
✪ Flexibility
✪ Tax saving
(a) Safety
(b) Liquidity
50
5.7 What makes ULIPs a total financial planning package?
51
Now it is necessary that we understand a few terms before look in to
the various financial planning ways:
• Save: this is an activity that helps in the “asset allocation”. It has both a
short term & long term perspective.
52
• Invest: this is an activity that focuses “asset creation”. It involves making
money from money.
• Spend: this is the activity of using the money for our expenses.
53
CHAPTER 6
54
they got against traditional, was any specific reason for buying, were they
satisfied with ULIP, if not, what additional features they wanted to be added in
that.
SAMPLE SIZE
Service Man 50
Business man 40
Shopkeeper 25
House Wife 12
Other 23
Total 150
55
CATEGORY NO. OF PEPOLE
YES 123
NO 27
TOTAL 150
Interpretation: This data shows that the most of the people are tax payee
adding to 123 people out of 150 .
YES 130 87
NO 20 20
Interpretation: The pie chart depicts that from 150 respondents a major
part resulting to 87% of the total were having some kind of insurance policy.
COMPANIES PEOPLE %
LIC 92 61
56
ICICI 12 8
HDFC 10 7
OTHER 16 11
Interpretation: The pie chart illustrates that out of all the 150 respondents
61% is having LIC policy, which is the major player of the insurance sector.
While the share of non-policyholder is only 13%. This depicts that an average
number of the respondents are holding policy, for the purpose of minimizing
the risk.
YES 87 58
NO 63 42
57
Interpretation: This pie chart shows that Icici Prudential has a reasonable
amount of Brand awareness showing about 58% of the total. This brand
image should be further leveraged by the company to increase its market
share over its competitors.
ADVERTISEMENT 59 40
WORD OF MOUTH 44 29
YOUR BANK 11 7
INSURANCE AGENT 36 24
Interpretation: Out of all the 150 respondents 40% knew about ICICI
58
Prudential through Advertisement, 29% word of mouth, and 24% through the
agents of the company.
ENDOWNMENT 29 19
TERM 16 11
ULIP 85 57
NO POLICY HOLDER 20 13
Interpretation: Out of all the 150 respondents 57% is having ULIP plan,
19% endowment and 11% term insurance.
SATISFIED 83 56
UNSATISFIED 47 31
NO POLICY HOLDER 20 13
59
Interpretation: The data shows that out of all the 150 respondents 56% are
satisfied with their investment plans.
Q8. Are you aware about the benefit and the condition about your plan?
COMPLETE AWARE 34 23
ADEQUATE AWARE 25 17
CONFUSE 20 13
60
LESS KNOWLEDGE 28 19
COMPLETE UNAWARE 23 15
NO POLICY HOLDER 20 13
Interpretation: The data shows that out of all the 150 respondents only
23% are completely aware and 17% are adequate aware about the benefit
and the condition of their plan.
Q9. How much return you are expecting from your ULIP?
CATEGORIOES NO OF PEPOLE %
15-25% 30 20
25-35% 32 21
61
35-45% 28 19
Interpretation:The data shows that out of all the 150 respondents 27%were
expecting more than 45% return and rest below 45% but not less than 15%.
Q11. Do you think lifetime super an ULIP investment plan of ICICIPRU is better than
other traditional investment plans?
62
TOTAL 150 100
Interpretation:The data shows that out of all the 150 respondents one third
(33%)were agree that ICICI Pru. Policy was better than traditional plans.
FOR PROTECTION 22 15
FOR SAVING 31 21
63
FOR INVESTMENT 54 35
Interpretation:The data shows that out of all the 150 respondents 35%
purchased insurance plans for their investment purpose, 29% for tax saving,
and only 15 % for protection.
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TOTAL 150 100
Interpretation: Thes data shows that out of all the 150 respondents
34%said ULIP a safe avenue, 18% moderate risk and 20% said as risky
investment.
6.2 FINDINGS
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✪ Today, people mainly prefer ULIP for saving, then bank then Post-Office
and after that prefer P.P.F. and other. The main reason behind the
insurance plan or ULIP preference is switching facility or option to
choose fund.
✪ People prefer high growth as well as safety of Principle as compare to
less growth & return even after taking certain level of risks.
✪ People mainly purchase life insurance policy / ULIPs for investment and
then for tax-saving they give 2nd preference to protection today.
✪ Approximately 20% people do not know what is insurance.
✪ I also find that people mainly prefer L.I.C. as compare to private
insurance company.
✪ In my survey, I also find that only 56% people are satisfied with current
policy.
✪ I also find that only 58% people know about the ICICI Prudential Life
Insurance.
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CHAPTER 7
RECOMMANDATIONS
RECOMMENDATIONS
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1. Emphasis on advertisement: Company should emphasis on insurance
plan advertisement, because at present company main focus on
conventional product advertisement.
4. There should be a product with good features and low initial premium:
A product like Life Time super is suitable for all but the initial premium
which cannot be less than 20000 rs. is on the higher side , therefore the
company should derive a product with similar features but with low initial
premium so that it is affordable to normal service class.
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6. Market surveys should be conducted regularly so that to know about
customer demands and changing needs: The company should know
about the customers changing needs and demands by conducting
market surveys which are helpful in innovating a product which suits the
customers requirements.
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CHAPTER 8
SUMMARY/CONCLUSION
8.1 SUMMARY/CONCLUSION
70
In India, insurance is generally considered as a tax-saving device instead of
its other implied long-term financial benefits. Indian people are prone to
investing in properties and gold followed by banks deposits. They selectively
invest in shares also but the percentage is very small—4.5%. Even to this
day, Life insurance market has become more vibrant. Smashing all doubts
over the decision to liberalize the industry, the overwhelming first year
performance of the Indian insurance sector is test case of a massive success
story of private players entering into the erstwhile state monopoly.
The top three insurance companies-ICICI Prudential Life Insurance Company,
HDFC Standard Life and Max New York Life- combined managed to sell over
two lakh policies in a single year. ICICI Prudential, touted as the number one
private life insurer, scored on all three fronts-with the maximum number of
policies sold (1,00,000 policies), highest amount of premium collected (Rs.
2,700 crore).
How so ever impeccable a thing may see to be there always dwell some
possibilities of failure and incompleteness. The result of this work was also
subject to some of limitations, which were as follows:
• The main limitation of the study was the availability of time. As the
sufficient time was not available for collection of data I could not collect
sufficient data.
• Some respondents were not interested in giving answer and they
appeared to be busy.
• Lack of experience. And above all
• Time constraint and expense/ cost related to all my ways of collection of
data, getting appointments, traveling to the potential people were the
main hurdles in this study.
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8.3 Significance of the study
The significance of the study is the finding the exact reasons of preference of
ULIP over the traditional avenues (like term insurance) Which helped not only
me but also the company to serve the customers in a better way in order to
sustain in cut throat competition. The main outcomes were as follows:
both the angles Company and Client. There were both positive and
were:
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which helped me in learning how to deal with the clients in variety of situations.
and closing, and doing live Study of the problems, however with time I get
adjusted to the situation and worked on it sincerely. Now I feel much more
ANNEXURE
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Yes ( ) No ( )
b) If Yes, where do you make investment?
Bank deposits ( ) Mutual Funds( )
Shares( ) life insurance ( )
Postal deposit schemes ( ) Real estate ( )
Precious metal ( )
Company debentures and deposits ( )
Q 2. What are the reasons to make investments?
Tax Saving ( ) Return ( )
Capital Appreciation ( )
secure investment ( )
Life cover ( )
Other ( )
Q3. Are you satisfied with your Investment?
YES ( ) NO ( )
Q 4. In which sector do you prefer to invest your money?
Private Sector ( )
Government Sector ( )
Q 5. Do you think services provided by private sector will be better than
public sector companies?
Yes ( ) No ( )
Q 6. Are private life insurance companies reliable for Investment?
Yes ( ) No ( )
Q 7. Have you heard about private insurance company icici prudential life?
Yes ( ) No ( )
Q 8. From where did you come to know about icici prudential life insurance?
Electronic media ( ) print media ( )
Seminar ( ) Work shops ( )
Advisor ( ) others ( )
Q 9. a) Are you aware of unit linked insurance Plans (ulip)?
Yes ( ) No ( )
b) If Yes, Do you know, FULLY AWARE LITTLE AWARE
UNAWARE
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The working of ULIP ( ) ( ) ( )
Criteria for returns ( ) ( ) ( )
Different Plans ( ) ( ) ( )
Where your fund invested by insurer ( ) ( ) ( )
Switching Option( ) ( ) ( )
Q 10. a) Have you ever invested in ULIP plans?
Yes ( ) No ( )
b) If Yes, please specify: -
PLAN NAME:
Saving plan ( ) protection plan ( )
Pension plan( ) children’ s plan ( )
Q 11. What are the reason for investment in ulip
Life protection ( )
Investment and Savings ( )
Flexibility ( ) Transparency ( )
Liquidity ( ) Tax planning ( )
Q 12. Which company policy do you have?
ICICI Prudential ( )
HDFC Standard ( )
Bajaj Allianz ( )
Birla Sun Life ( )
Lic ( ) Other ………………………………...
Q13. How much return you are expecting from your ULIP?
15-25%
25-35%
35-45%
More than 45%
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Q 15. Do you have any plan to buy ulip plans in near future?
Yes ( ) No ( )
Q 16. If you are not taking any ulip plans, please tell us the reasons why?
We couldn’t afford ( )
We don’t see any benefit with the system. ( )
We don’t want insurance. ( )
We don’t understand how ulip works. ( )
We are not too much aware of ulip plans. ( )
Q 17. What steps do you suggested to the companies to make their ULIP
plans more popular?
Give more advertisements. ( )
Arrange more work shops. ( )
Arrange more seminars ( )
Reduce charges ( )
Create awareness through advisors ( )
NAME-------------------------AGE------------------------------------
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OCCUPATION---------------------------------------------------------
ADDRESS---------------------------------------------------------------
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BIBLIOGRAPHY
Secondary Sources:
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“Indicators of Performance of Universities”
(National Institute ………, New Delhi .)
(Sept, 2008)
Life Insurance in India 1956
(Kothari Cr 2008)
“Research Methodology Methods & Techniques”
(New Age International (p) Limited)
Brochures:
ICICI Prudential Life Insurance Company Ltd, UNI: 105v01 L/IC/26, 2004
Life Insurance Company Ltd, UNI: 05l058v01 L/IC/02 1956.
Websites:
www.google.com
www.bimaonline.com
www.licindia.com
www.iciciprulife.com
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