Professional Documents
Culture Documents
FACULTY OF COMMERCE
BANARAS HINDU UNIVERSITY
VARANASI
PREFACE
ACKNOWLEDGEMENT
SONAL
GINODIA
CONTENTS
1. Synopsis
2. Research Objective
3. About Life Insurance
➢ Brief History of Insurance
➢ Purpose & Need of Insurance
➢ Introduction About Life Insurance
➢ Role of Life Insurance
➢ Advantages of Life Insurance
4. Insurance Regulatory & Development Authority
5. About ULIP
➢ What is ULIP
➢ Working of ULIP
➢ Benefits of ULIP
8. Survey Report
➢ Findings & Conclusion
➢ Outlook & Potential
9. Suggestions
10. Biblography
SYNOPSIS
ULIPs can be said as the summation of insurance policy and mutual funds.
Hence they not only provide the risk cover but are also providing the
capital market gains to the insured. The project also provides the details of
the various ULIPs provided by AEGON Religare Life Insurance viz. Star
Child Plan, Protect Gain, Level term and many more. It provides the details
regarding the marketing channel and the promotion and advertisement
campaign of the company. It also lays emphasis on the fact that life agents
are the blood regulating organ in a life insurance company.
Finally, a survey was conducted which showed that the customers are not
completely aware of all the features of a Unit Linked Plan. In fact they
hardly know about the different types of fees charged by a life insurance
company. Moreover there is a large no. of persons who have not heard
about ULIP.
RESEARCH OBJECTIVE
We are not saying that life and existence are constantly fraught with danger
and uncertainty. But then it is essential that you plan for the future. The
changes for a fatality or an injury to occur to the average individual may
not be particularly high but then no one can really afford to completely
disregard his or her future and what it holds.
People generally regard insurance as a scheme when and where you have to
lose a lot to gain a little. Nevertheless, insurance is still the most reliable
tool an individual can use to plan for his future.
A number of players (over 250 in life and about 100 in non-life) mainly
with regional focus flourished all across the country. However the
government of india, concerned by the unethical standard adopted by some
player against the consumers, nationalized the industry in two phases in
1956(life) and in 1972(non-life).
The insurance business of the country was then brought under two public
sector companies, Life Insurance Corporation of India (LIC) and General
insurance Corporation of India (GIC).
In line with the economic reforms that were ushered in India in early
nineties, the Government set up a committee on reforms (popularly called
the malhotra committee) in April 1993 to suggest reforms in the insurance
sector. The Committee recommended throwing open the sector to private
player to usher in competition and bring more choice of the consumers. The
objective of the insurance to penetration of insurance as a percentage of
GDP, which remains low in India even compared to Insurance Regulatory
and Development Authority (IRDA) Bill in 1999. IRDA was set up as an
independent regulatory, which has put in place regulations in line with
global norms. So far in the private.
ROLE OF LIFE INSURANCE
1. Life insurance as “Investment”
• Insurance is an attractive option for investment. Which most people
recognize the risk hedging and tax saving potential of insurance, many are
not aware of its advantages as an investment option as well. Insurance
products yield more compared to regular investment options and this is
besides the added incentive offered to insurers.
There is no other scheme which provides this kind of benefit therefore life
insurance has no substitute. Even so, a comparison with other form of
saving will show that life insurance has the following advantages:-
• In the event of death, the settlement is easy. The heirs can collect the
moneys quicker, because of the facility of nomination and assignment.
• The facility of nomination is now available for some bank accounts.
• There is a certain amount of compulsion to go through the plan of savings.
• In other forms, if one changes the original plan of savings, there is no loss.
• Creditor can not claim life insurances moneys. They can be protected
against attachment by courts.
• There are text benefits, both in income tax and capital gains. Marketability
and liquidity are better. A life insurance policy is property and can be
transferred or mortgaged. Loan can be raised against the policy.
The following tenets help agent to believe in benefit of life insurance. Such
faith will enhance there determination to sell and their perseverance.
• Life insurance is not only the best possible way for family protection. There
is no other way.
• Insurance is the only way to safeguard against the un predictable risks of
the future. It is unavoidable.
• The value of human life is far greater than the value of property only
insurance can preserve it.
• Life insurance is not surpassed by many other savings or investment
instruments, in terms of security, marketability, stability of value or
liquidity.Insurance, including life insurance, is essential for the
conservation of many businesses, just as it is in the preservation of homes.
• Life insurance enhances the existing standards of living.
• Life insurances help people live financially solvent lives.
• Life insurance perpetuates life, liberty and the pursuit of happiness.
THE INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY
Reforms in the Insurance sector were initiated with the passage of the
IRDA Bill in Parliament in December 1999. The IRDA since its
incorporation as a statutory body in April 2000 has fastidiously stuck to its
schedule of framing regulations and registering the private sector insurance
companies
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
insurance and 6 general insurance companies have been registered.
ABOUT UNIT LINKED
INSURANCE
PLAN(ULIP)
ULIP
What is ULIP?
A plan which gives complete clarity about the various charges deducted
and why it’s being deducted and so how your fund will grow over time.
However it should not be construed that barring the insurance element there
is nothing differentiating mutual funds from ULIPs.
Simply put, ULIPs are structured in such that the protection element and
the savings element are distinguishable, and hence managed according to
your specific needs. In this way, the ULIP plan offers unprecedented
flexibility and transparency.
Working of ULIPs
It is critical that you understand how your money gets invested once you
purchase a ULIP:
When you decide the amount of premium to be paid and the amount of life
cover you want from the ULIP, the insurer deducts some portion of the
ULIP premium upfront. This portion is known as the Premium Allocation
charge, and varies from product to product. The rest of the premium is
invested in the fund or mixture of funds chosen by you. Mortality charges
and ULIP administration charges are thereafter deducted on a periodic
(mostly monthly) basis by cancellation of units, whereas the ULIP fund
management charges are adjusted from NAV on a daily basis.
One of the big advantages that a ULIP offers is that whatever be your
specific financial objective, chances are that there is a ULIP which is just
right for you. The figure below gives a general guide to the different goals
that people have at various age-groups and thus, various life-stages.
BENEFITS OF ULIP
Unit linked plans provide an opportunity for the discerning investor to
benefit from the return available in their capital market without going for
direct investments in capital market.
• CUSTOMER SATISFACTION
When you buy a new car, many dealer will within minutes try to sell you an
extended warranty, an alarm system, and may be rust proofing. It often a
very easy sale and costs a dealer almost nothing to make. Are there
additional products you can sell your customers?
In many business situations, the customer will have many more interactions
after the sale with technical, service, or customer support people then they
did with the sales people. So if you’re serious about retaining customers or
getting referrals, these interactions are the ones that are really going to
matter. They really should be handled with the same attention and focus
that sales calls get because in a way they are sales calls for repeat business.
✔ FLEXIBILITIES OFFERED
Choice of 4 funds with investment in diversified asset classes.
• Even in the wake of crisis in the financial world rated AA# by rating agency.
• Oneof India’s leading integrated financial services group.
New Initiatives
! The latest feather in the Religare hat is their foray into the Life
Insurance market in partnership with AEGON
OVERVIEW
AEGON’s businesses serve over 40 million customers in over 20 markets throughout the
Americas, Europe and Asia, with major operations in the United States, the Netherlands and
the United Kingdom. With headquarters in The Hague, the Netherlands, AEGON companies
employ almost 32,000 people worldwide. The company’s common shares are listed on four
stock exchanges: Amsterdam, London, New York and Tokyo. It manages EUR 351 billion in
revenue generating investments. AEGON has more than 160 years of experience with its
roots going back to 1844. It holds 26% equity in our company.
REL also currently operates from 10 countries globally following its acquisition of London's
oldest brokerage & investment firm, Hichens, Harrison & Co. plc. With a view to expand,
diversify and introduce offerings benchmarked against global best practices, Religare has
partnered with Australia based financial services major-Macquarie for its wealth management
business and with Vistaar Entertainment to launch India's first SEBI approved Film Fund
offering a unique alternative asset class of investments. REL holds 44% equity in our
company.
Bennett, Coleman & Co. Ltd. (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 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 the BCCL Group holds 30% equity
in our company.
BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER
RAJEEV JAMKHEDKAR
K.S GOPALAKRISHNAN
SAIBAL GHOSH
YATEESH SRIVASTAVA
DEBMALYA MAITRA
Value and Vision
Savings & Investment Products in Indian Market
This plan not only make provisions for your child’s future but also ensures that their future is
remains secures in the event of your unfortunate demise, we assure a lump sum premium and
waive off of future premium till maturity.
BENEFITS
Get the dual benefit of securing your family financially as well as saving for a brighter future
with our ULIP plans. You've always worked hard to give your family nothing but the best.
But growing expenses, never-ending price hikes and inflation make most of your plans
difficult. Which is why, it becomes all the more important to invest and set aside that little
something for whatever may come your way. AEGON Religare Premium Gain Plan helps
maximise your investments and gives you the best possible returns
Yo
roller coaster rid
leading only to a
you.
The Invest Protect Advantage
It will not only help you gain from your investments but will also minimize the risk on your
returns as your policy nears maturity.
It aims to protect your money by systematically shifting the units from Enhanced Equity
Fund to the Secured Fund during the last three policy years.
BENEFIT
• Choice of investment funds
• Option of withdrawals
• Option to transfer Funds
• Option to top-up investments
• Tax benefit
Have money but no time to spend it? Ensure that it is not the other way round tomorrow.
Know how much pension you would require when you retire and start saving for your
retirement today.
It will not only help you gain from your investments but will also minimize the risk on your
returns as your policy nears maturity.
It aims to protect your money by systematically shifting the units from Enhanced Equity
Fund to the Secured Fund during the last three policy years.
BENEFIT
STRENGTH WEAKNESS
OPPURTUNITY THREATS
• Wide geographical reach. Close competition in premium
Rates and commission.
1. LIC
1. DATA TYPE:
Primary Data
– Personal interview
– Questionnaire
– Marketing research
–
Secondary Data
– Concerned Data
– Internet
We have collected primary data in the form of Questionnaire
2. DATA SOURCE:
- Data is collected from:
- Data is mainly collected from the AEGON Religare website
3. SAMPLING:
A Probability Sampling Method is used.
The sample design is random i.e. the probability of selection of every member is equal.
4. RESEARCH DESIGN:
It is the arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure.
5. RESEARCH APPROACH:
– Survey
– Questionnaires
Name:______________________
Age: _______________________
Gender: ____________________
Occupation: _________________
Marital status: _______________
QUESTIONNAIRE
1. Have you taken any insurance policy?
YES [ ] NO [ ]
11. Are you satisfied with different services provided by insurance companies?
YES [ ] NO [ ]
12. Are you satisfied with charges of ULIP Plan?
YES [ ] NO [ ]
ANALYSIS & INTERPRETATION
6.
OPTION RESPONSES PERCENTAGE
In
ULIP 19 19%
MUTUAL FUND 21 21%
INVESTMENT 33 33%
TRADITIONAL PLAN 27 27%
TOTAL 100 100%
which you will prefer to invest next time if you have options?
INTERPRETATION:- This Pie-Chart show that people are more
interested in investment in banks and Nsc than in Ulip and mutual fund.
10. What is the kind of services that you look for in an insurance co.?
-
INTERPRETATION: In this figure I found that people are more
concerned about the service of customer centricity than other services.
1. Are you satisfied with different services provided by Insurance Company?
FINDINGS,CONCLUSIONS
AND SUGGESTIONS
CONCLUSION
• Only 35% of respondents are aware about all the feature and terms & condition of ULIP
• 50% of respondents want to purchase ULIP product for tax saving & 30% for high return &
20% for risk cover
• 55% of the respondents prefer to invest in public sector & 45% in private sector
• 46% of the respondents prefer to one time, 13% half yearly, &27% monthly payment &14%
quarterly premium payment.
• 33% of the respondents prefer to invest in investment, 27% in traditional plan, 21% wants in
mutual fund &19% in ULIP.
LIMITATIONS
• When I used to make any call people generally makes false promises
• Some respondents were not at time after called them so had to be re-contacted
• The company should make more product on the basis of tax benefit
POTENTIAL
• Largely untapped market: about 0.6% of the global market for 17% of the world’s population
➢ Nearly 70% of the Indian population is without Life, Health and Non-Life Insurance.
➢ Insurance penetration is low at 2.9% as compared to the world average of over 8%.
➢ Non-Life penetration is even lower-less than 1% in 2004
➢ Per capita life insurance premium in india in 2004 was $16 as compared to the world average
of $292.
➢ Strong economic growth with increase in affluence and risk awareness leading to rapid
growth in the Insurance sector.
• Many more international players including AXA have announced plans to enter India.
• Investment opportunities exist in both life and Non-Life segments.
➢ Total estimated investment opportunity of $4-5 billion.
Source: IRDA.
BIBLIOGRAPHY
➢ WWW.GOOGLE.COM
➢ WWW.IRDA.ORG
➢ WWW.AEGONRELIGARE.COM
➢ WIKIPEDIA
BOOKS
➢ M.N.MISHRA
➢ MOTIHAR
➢ IC-33