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A project report on a study of investment decisions of individual investor with regard to uli ps

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A project report on a study of investment decisions of individual investor with regard to uli ps

A project report on a study of investment decisions of individual investor with regard to uli ps

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  • 1. A study of investment decisions of individual investor with regard to ULIPs ContentsSl. No. Titles Page No.I Chapter 1  Executive summary 1  Statement of the problem & objectives 2  Purpose of the Study 3  Scope of the study  Limitations of the studyII Chapter 2  Purpose & need of insurance 4 6  Industry profile 11  IRDA 29 38  Organization Profile 44  Board of directors 51  Work flow 54  Organization Chart 56  Swot analysis  Research methodology  Measuring toolsIII Chapter 3  Analysis and interpretation 57  Findings 82  Suggestions 83 84  ConclusionIV Chapter 4 Annexure 85  Bibliography 89 Babasabpatilfreepptmba.com 1
  • 2. A study of investment decisions of individual investor with regard to ULIPsExecutive summaryThe main aims of the investor is to minimize the risk involved in investment & maximizereturn and today there are number of options available to investor like Post officeinvestment, bank deposit, Real estate, debentures, Government securities, stock market,insurance & gold etc. Among these, ULIP introduced by the insurance companies is theoption which require less capital & give the benefit of Professional Management &suitable for all especially to the persons who do not have time to watch the marketregularly.ICICI Prudential commenced on January 20th 2002. The Hubli branch however wasestablished in Feb 2004. The branch office has mainly 2 departments i.e.; Operations andSales. The branch office looks after the business from various serviceable locations, stillin pipeline of expansion to cover some parts of North Karnataka.ULIP came into play in the 1960s and became very popular in Western Europe andAmericas. In India also it has become popular. Today ULIP contribute 80% of thepremium collected by the insurance company. Babasabpatilfreepptmba.com 2
  • 3. A study of investment decisions of individual investor with regard to ULIPsSTATEMENT OF THE PROBLEMPROBLEM DEFINITION“To know the factors that affects the investment decisions of individual investor whileinvesting in ULIPs”RESEARCH STUDY “A study of investment decisions of individual investor with regard to ULIPs at ICICIprudential life insurance co ltd HUBLI branch”.OBJECTIVE OF THE STUDY • To study the investor perception regarding investment in ULIPs • To study the service of ICICI pru life. • To study the current ULIPs performance. • To find most considerable ULIP. • To study the investment decisions of different social class people (in terms of age group, education, income level etc. • To know the factors that influence investors while taking investment decisions. Babasabpatilfreepptmba.com 3
  • 4. A study of investment decisions of individual investor with regard to ULIPsPurpose of the StudyThe big question mark in front of every investor is where to invest money to get realincome. There are so many options available to them but it is very difficult to chooseamong them, as every option has it’s own merits & demerits. Investor has to be fullyaware of all these options & he should be in a position to choose which one is suitable forhim on the basis of his risk, investment objective and expected return etc. Option that issuitable for one person may not suit other person’s requirement. This process of choosingsuitable product take long time, the best way for the person who has no time & expertisein selecting investment avenue can go for ULIP.Scope of the study: The research was undertaken to gather information from the respondent to knowexactly how many people aware of ULIPs in Hubli city and the study is restricted withinthe city. The reasons for confining the scope of the research in Hubli were. 1) One of the fast growing city in Karnataka and represents huge market for scope with more than 90 lakhs people. 2) Hubli is one of the commercial areas. 3) It is a place where the small and large industries are located .with the more increase population and there style more people are conscious about their livesLimitations of the study: • The time was not enough to study the vast and growing life insurance sector in Hubli city. • The study and the survey were conducted in hubli city only. Babasabpatilfreepptmba.com 4
  • 5. A study of investment decisions of individual investor with regard to ULIPsLIFE INSURANCELife insurance is a contract providing for a payment of a sum of money to the personassured or failing him to the person entitled to receive the same on the happening ofcertain event. Uncertainty of death is inherent in human life. It is this risk, which givesrise to the necessity for some form of protection against the financial loss arising fromdeath. Insurance substitutes this uncertainty by certainty. The objective of insurance isnormally to provide:a. Family protection andb. Provision for old age.PURPOSE AND NEED OF INSURANCEConceptually, the mechanism of insurance is very simple, people who are exposed to thesame risks come together and agree that, if any one of the members suffers a loss, theothers will share the loss and make good to the person who lost.A human life is also an income generating asset. This asset also can be lost throughunexpectedly early death or made non-functional through sickness and disabilities causedby accidents. Accidents may or may not happen. Death will happen, but timing isuncertain. If it happens around the time of one’s retirement, when it could be expectedthat the income will normally cease, the person concerned could have made somearrangements to meet the continuing needs. But if it happens much earlier when thealternate arrangements to meet the continuing needs are not in place, insurance isnecessary to help those dependent on the income.The risk only means that there is a possibility of loss or damage. It may or may nothappen. There has to be an uncertainly about the risk. Insurance is done against thecontingency that it may happen. Insurance is relevant only if there are uncertainties. If Babasabpatilfreepptmba.com 5
  • 6. A study of investment decisions of individual investor with regard to ULIPsthere is no uncertainty about the occurrence of an event, it cannot be insured against.Insurance does not protect the asset. It does not prevent its loss due to the peril.The peril cannot be avoided through insurance. The peril can sometimes be avoidedthrough better safety and damage control management. Insurance only tries to reduce theimpact of the risk on the owner of the asset and those who depend on that asset. It maynot fully compensate the losses. Only economic or financial losses can be compensated.Satisfaction of economic need requires generation of income from some source. If theproperty, which is the source of such income, were lost fully or partially, permanently ortemporarily, the income too would stop. The purpose of insurance is to safeguard againstsuch misfortunes any, who are exposed to the same risk but saved from the misfortune.Thus the essence of insurance is to share losses and substitute certainty.There are certain basic principles, which make it possible for insurance to remainpopular, and a fair arrangement. The first is the fact that people are exposed to risks andthat the consequences of such risk are difficult for any one individual to bear. It becomesbearable when the community shares the burden.The second is that no one person should be in a position to make the risk happen. In otherwords, none in the group should set fire to his assets taking unfair advantage of anarrangement put into place to protect people from the risks they are exposed to.A thriving insurance sector is of vital importance to every modern economy. Firstbecause it encourages the savings habit, second because it provides a safety net to ruraland urban enterprises and productive individuals. And perhaps most importantly itgenerates long term inventible funds for infrastructure building. The nature of theinsurance business is such that the cash inflow of insurance companies is constant whilethe payout is deferred and contingency related.The IRDA bill provides for the establishment of an authority to protect the interest of the Babasabpatilfreepptmba.com 6
  • 7. A study of investment decisions of individual investor with regard to ULIPsholders of insurance policies, to regulate, promote and insure orderly growth of theinsurance industry and amend the insurance Act 1938, the life Insurance Act, 1956 andthe General Insurance Business (Nationalization) Act, 1972. the bill allows foreign equitystake in domestic private insurance companies to a maximum of 26 per cent of the totalpaid-up capital and seeks to provide statutory status to the insurance regulator.Why life insurance?Life Insurance cover is essential for it provides the following benefits: • A lump sum payment to the nominees at the time of the death of the policy holder. • A regular payment to the nominees in the event of the death of the policy holder. • Tax benefits, as premiums paid reduce the liability of tax. • Relieves economic hardships in the family on the uneventful death of the sole Income holder. • Inculcates the habit of saving.NEED FOR INSURANCEThe need for life insurance comes from the need to safeguard our family. If you care foryour familys needs you will definitely consider insurance. Today insurance has becomeeven more important due to the disintegration of the prevalent joint family system, asystem in which a number of generations co-existed in harmony, a system in which asense of financial security was always there as there were more earning members.INDUSTRY PROFILEInsurance is in a manner of speaking the last frontier in the financial sector to open. it isalso a sector which will lead to benefits across the full spectrum, from the individual whowill now have wider choices, to the economy which will see increased savings, to the Babasabpatilfreepptmba.com 7
  • 8. A study of investment decisions of individual investor with regard to ULIPsinfrastructure sector which can look forward to long term funding being available. varietyis the spice of life, unless you are in insurance business. Traditionally, the mostsuccessful insurance firms generally take on the least risk. However, factors such asderegulation, globalization, and the internet are shaking up the industry.THE INSURANCE CAN BE CLASSIFIED INTO TWO1). LIFE insurance2.) NON-LIFE insurance1. LIFE insurance This type of insurance covers life of individuals that is protection againstDeathDiseasesDisabilityTHERE ARE 3 TYPES OF LIFE INSURANCE POLICIES:i) Term insurance plans:Pure life covers where policy holder pays for the risk cover and do not expect to receiveanything else in return. Term insurance is now available in India. Opting for such policywill improve the efficiency of the policy premium and enable policy holder for a biggerrisk cover for the same cost. These are term insurance plans without interest.ii) Whole life insurance plans:Whole life policies require the policy holder to pay premium throughout his/her life andcover risk for the whole life. The policies without profits are cheaper.iii) Endowment insurance plan: Babasabpatilfreepptmba.com 8
  • 9. A study of investment decisions of individual investor with regard to ULIPsEndowment policies are costliest and among this group, money back policies involvepaying highest premium. They give customers maturity benefits (normally, sum assured)and additional profits by way of bonus, guaranteed additions, loyalty bonus, etc. moneyback policies also provide partial payment back to the insured person at pre-set timeperiods.2. Non-Life insurance This type of insurance covers material assets that is protection against • Theft • Fire • Loss In Transit • Accidents • Illness in case of LivestockHOW LIFE INSURANCE IS SOLD?INDIVIDUAL POLICY When we buy an individual policy, we choose the company, the plan, and thebenefits and features that are right for us and our family .We might be able to buy thepolicy from the same agent or company or company representative who sells us propertyand liability. Insurance for your home, automobile or business and although you won’t qualifyfor any discount by buying your life insurance and other insurance from the samerepresentative, working with a single advisor for all your insurance needs can make yourfinancial life simpler. Individual policies are typically sold through insurance agents or brokers .If you buypolicy through an agents or brokers .If you buy a policy through an agent or broker, youwill pay a commission, also called as “ load “ that is built into the premium rate. Babasabpatilfreepptmba.com 9
  • 10. A study of investment decisions of individual investor with regard to ULIPsBrief Review of Scenario – InsuranceInsurance in India started without any Regulation in Nineteenth century.It was story of a typical colonial era. A few British companies dominatedthe market mostly in large urban centers.Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.Second, even if they were insured, they were treated as substandard lives and extrapremium was charged. Third, there were gross irregularities in the functioning of Lifeinsurance was nationalized in the year 1956, and then general insurance was nationalizedin the year 1972. In 1999, the private insurance companies were allowed back again intoinsurance sector with maximum cap of 26 percent foreign holding. • 1818 The British introduce to India, with the establishment of the Oriental Life Insurance company in Calcutta. • 1850 Non life insurance debuts, with Triton Insurance Company. • 1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer • 1907 Indian mercantile Insurance is the first Indian non-life insurer. • 1912 The Indian life assurance companies’ act enacted to regulate the life insurance business. • 1938 The insurance act, which forms the basis for most current insurance laws, replaces earlier act. • 1956 Life insurance nationalized, government takes over 245 Indian and foreign insurers and provident societies. • 1956 Government sets up LIC • 1972 Non life insurance nationalized, GIC set up. • 1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up to draw up a blue print for insurance sector reforms. Babasabpatilfreepptmba.com 10
  • 11. A study of investment decisions of individual investor with regard to ULIPs • 1994 malhotra Committee recommends re-entry of private players, autonomy to PSU insurers. • 1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up. • 2000 IRDA starts giving licensed to private insurers • 2001 ICICI Prudential Life Insurance came into the market to sell a policy. • 2002 Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start settling non-life claims in the cashless mode.HistoryInsurance in India has its history dating back until 1818, when Oriental Life InsuranceCompany was started by Anita Bhavsar in Kolkata to cater to the needs of Europeancommunity. The pre-independent era in India saw discrimination among the life offoreigners and Indians with higher premiums being charged for the latter. In 1870,Bombay Mutual Life Assurance Society became the first Indian insurance companycovering Indian lives at normal rates.At the dawn of the twentieth century, many insurance companies were founded. In theyear 1912, the Life Insurance Companies Act and the Provident Fund Act were passed toregulate the insurance business. The Life Insurance Companies Act, 1912 made itnecessary that the premium-rate tables and periodical valuations of companies should becertified by an actuary. However, the disparage still existed as discrimination betweenIndian and foreign companies. The oldest existing insurance company in India is theNational Insurance Company Ltd., which was founded in 1906. It is in business. Beforethat, the industry consisted of only two state insurers: Life Insurers (Life InsuranceCorporation of India, LIC) and General Insurers (General Insurance Corporation of India,GIC). GIC had four subsidiary companies.With effect from December 2000, these subsidiaries have been de-linked from the parentcompany and were set up as independent insurance companies: Oriental InsuranceCompany Limited, New India Assurance Company Limited, National InsuranceCompany Limited and United India Insurance Company Limited. Babasabpatilfreepptmba.com 11
  • 12. A study of investment decisions of individual investor with regard to ULIPsCurrently, in India only two million people (0.2 % of the total population of 1 billion) arecovered under Mediclaim, whereas in developed nations like USA about 75 % of the totalpopulation is covered under some insurance scheme. With more and more privatecompanies in the sector, the situation may change soon.ActsThe insurance sector went through a full circle of phases from being unregulated tocompletely regulated and then currently being partly deregulated. It is governed by anumber of acts.The Insurance Act of 1938 was the first legislation governing all forms of insurance toprovide strict state control over insurance business.Life insurance in India was completely nationalized on January 19, 1956, through theLife Insurance Corporation Act. All 245 insurance companies operating in the countrywere merged into one entity, the Life Insurance Corporation of IndiaThe General Insurance Business Act of 1972 was enacted to nationalize the about 100general insurance companies and subsequently merging them into four companies. Allthe companies were amalgamated into National Insurance, New India Assurance,Oriental Insurance and United India Insurance, which were headquartered in each of thefour metropolitan cities.Until 1999, there were not any private insurance companies in India. The governmentthen introduced the Insurance Regulatory and Development Authority Act in 1999,thereby de-regulating the insurance sector and allowing private companies. Furthermore,foreign investment was also allowed and capped at 26% holding in the Indian insurancecompanies.The Insurance Regulatory and Development Authority (IRDA):Reforms in the Insurance sector were initiated with the passage of the IRDA Bill inParliament in December 1999. The IRDA since its incorporation as a statutory body in Babasabpatilfreepptmba.com 12
  • 13. A study of investment decisions of individual investor with regard to ULIPsApril 2000 has fastidiously stuck to its schedule of framing regulations and registeringthe private sector insurance companies.The other decisions taken simultaneously to provide the supporting systems to theinsurance sector and in particular the life insurance companies were the launch of theIRDA’s online service for issue and renewal of licenses to agents.The approval of institutions for imparting training to agents has also ensured that theinsurance companies would have a trained workforce of insurance agents in place to selltheir products, which are expected to be introduced by early next year.Since being set up as an independent statutory body the IRDA has put in a framework ofglobally compatible regulations. In the private sector 12 life insurance and 6 generalinsurance companies have been registered.MISSIONTo protect the interests of the policyholders, to regulate, promote and ensure orderlygrowth of the insurance industry and for matters connected therewith or incidentalthereto.How do you get License to sell life insurance? • Documentation Requirements • Training • Examination Process • Code & LicenseDocuments Required • Application form + IRDA form • Exam Form Babasabpatilfreepptmba.com 13
  • 14. A study of investment decisions of individual investor with regard to ULIPs • Demand Draft of Rs 1000 • 6 Passport Size Photographs • Age Proof • Latest Address proof • Education Proof • Pan Card copy (if Pan No. mentioned) • Signed AgreementTrainingIRDA mandates the individual applying for a license to sell life Insurance must gothrough training.The specifications are:100 Hours of Training in IRDA certified Institutes Manual/Online TrainingExamination • Examination scheduled will be Online. • Exam Results obtained are entered into AMS by DOPS for Licensing.LIFE INSURANCE MARKET IN INDIAIndia has an enormous middle-class that can afford to buy life, health, anddisability and pension plan products. The low level of penetration of life insurance inIndia compared to other developed nations can be judged by a comparison of per capitalife premium. Clearly, there is considerable scope to raise per capita life premium if themarket is effectively tapped.India has traditionally been a high savings oriented country - often described as being onpar with the thrifty Japan. Insurance sector in the USA is as big in size as the banking Babasabpatilfreepptmba.com 14
  • 15. A study of investment decisions of individual investor with regard to ULIPsindustry there. This gives us an idea of how important the sector is. Insurance sectorchannelises the savings of the people to long term investments. In India whereinfrastructure is said to be of critical importance, this sector will bring the nations ownmoney for the nation. This has made the sector the hottest one in India after IT. Withsocial security and security to the public at large being the agenda for opening the sector,the role of the regulator becomes all the more serious and one that would be carefullywatched at every step.The Insurance Regulatory and Development bill is now an Act. With this India is now thecynosure of all the global insurance players. Numerous players, both Indian and foreign,have announced their intention to start their insurance shops in India. IRDA, under thechairmanship of Mr. Rangachary, opened the window for applying licenses in India. Oneof the main differences between the developed economies and the emerging economies isthat insurance products are bought in the former while these are sold in latter. Focus ofinsurance industry is changing towards providing a mix of both protection/risk over andlong-term investment opportunities.Historical Perspective • Prior to 1956 -242 companies operating • 1956 -Nationalization- LIC monopoly player -Government control • 2001 -Opened up sectorContribution to Indian Economy • Life Insurance is the only sector which garners long term savings. • Spread of financial services in rural areas and amongst socially less privileged. • Long term funds for infrastructure. • Strong positive correlation between development of capital markets and insurance/pension structure. Babasabpatilfreepptmba.com 15
  • 16. A study of investment decisions of individual investor with regard to ULIPs • Employment generation.JOURNEY OF THE SECTOR IN THE POST-REFORM PERIODFiscal ReformsThere is no denying that a thriving insurance industry is critical for every moderneconomy. It is, therefore, not surprising that when the government initiated the reformsprocess in the early 90s, it decided that dismantling the physical barriers for growth thatemerged in the “License-Permit Raj” though desirable and necessary would not alonepromote growth unless accompanied by fiscal reforms and a thorough revamping of thefinancial sector. While in the early period of reforms the government removed many ofthe licensing requirements thus giving freedom to the industry to decide on when, whereand how much to invest, a process of fiscal consolidation and reforms in the tax structurewas initiated to make the Indian industry compete effectively with the externalmarkets. The tax reforms had to be carefully timed so that industry which was insulatedfrom outside competition for a long period had enough time and resources to withstandcompetition from multinationals. The reforms in the financial sector are an integral partof the whole reforms process and unless there is major break through in this area, asustained growth of the economy is not feasible.Financial Sector ReformsThe main engines of growth in any economy are (i) a thriving banking industry providingtimely and adequate credit (ii) a buoyant stock market where capital is easily accessedand (iii) a dynamic insurance industry that covers risks giving the entrepreneur the abilityto experiment and take risks without which there cannot be just rewards.The reforms in the Banking sector were primarily aimed at giving the freedom to theBanks to determine the interest rates based on the risk profile of the customer. Thefreeing of the interest rates coupled with other structural reforms were expected to build a Babasabpatilfreepptmba.com 16
  • 17. A study of investment decisions of individual investor with regard to ULIPsstrong and resilient banking system. As a result of the reforms initiated in the 90s thebanking system acquired strength, vibrancy and efficiency and the Indian Banks are nowable to effectively compete with their global counterparts. There has been a notableimprovement in the financial health of the banks in terms of capital adequacy,profitability and asset quality. As regards stock market, the controller of capital issueswas replaced by SEBI, an independent regulator and we have been witnessing for the lastfew years increased confidence in the market by the domestic as well as internationalinvestors. The flow of funds into the stock market is the greatest testimony to theconfidence the individuals and corporate repose in the Indian stock market.Insurance ReformsIt may be recalled that while the reforms in various sectors of the economy were eitherwelcomed or considered essential to overcome a crisis, there was considerable debate onthe need for reforms in insurance industry. There were many who maintained that sinceinsurance contracts between insurers and the insured involve special fiduciaryobligations, it is better if those obligations are guaranteed by the State ownership ofinsurance companies. It was argued that insurance industry was nationalized on thegrounds that (i) the State would be in a better position to apply the massive resourcesgenerated through insurance for nation building activities; (ii) the insurance companieswere urban centric and the vast majority of the population that live in the rural areas weredenied the benefit of insurance and the State would have the means and the motivation toreach out to this section of the population and (iii) the governance standards in some ofthe companies were low and that there was a threat of insolvency. The votaries of statusquo argued that these considerations were still valid and there was no need for effectingany changes.Those who favored change pointed out that there was a wide gap in terms of marketpotential and its exploitation by the nationalized industry, the consumer did not benefit inthe absence of competition in terms of wider choice and competitive pricing and that thereach of the nationalized companies was limited, the range of products offered restricted Babasabpatilfreepptmba.com 17
  • 18. A study of investment decisions of individual investor with regard to ULIPsand the service to the consumers inadequate. It was felt in 1990s that the scale ofeconomic activity attained in the mid-eighties and the momentum generated through thereforms process in other sectors of the economy cannot be sustained by state controlledinsurance industry and that insurance penetration and enlargement of the market can beaccomplished only when a large number of companies compete with each other. It wasalso realized that the objectives of nationalization of the industry could largely beaccomplished through appropriate regulatory measures and a state monopoly was nolonger necessary.The champions of change finally prevailed and the Insurance Regulatory andDevelopment Authority Act was notified in April 2000. It took a long time and a greatdeal of perseverance on the part of the government to bring about reforms in insurancesector.Entry of Private InsurersWhile the long debates in the 90s; and the twists and turns that surrounded the opening upof the sector for private participation had at times thrown up serious concerns about theimplementation of insurance reforms in this country, once the legislation was putthrough, the actual process of inducting private players into the market had gone offsmoothly. I do not think there is any other sector in this country where the transition fromstate monopoly to free market has been as hassle free as that of the insurance sector.The transition was smooth partly due to the continuity provided by the office of theinterim Regulator through those turbulent 4 years (1996 to 1999) between the creation ofthe office and the passing of the IRDA Bill by the Parliament. This office was able toappreciate the concerns of the Government, the Parliament and the private investors andharmonize these various view points while framing the Regulations. They also had timeto study the various models obtaining in the world for regulation of the industry andidentify what suited the needs of our country. Babasabpatilfreepptmba.com 18
  • 19. A study of investment decisions of individual investor with regard to ULIPsSupervision and regulation of insurance is a relatively new experience in India. It is thejob of the Regulator to ensure that the insurers have, at any point of time, sufficientresources to meet the liabilities and that all customers are treated in an equitablemanner. When the state enterprises controlled the entire industry, the safety of thepolicyholders’ funds was ensured through state guarantee while the fair dealings with thecustomers was achieved through parliamentary oversight of the state enterprises. Theopening of the sector for private participation naturally raised issues about ensuringsolvency of the companies and fair treatment to the insured. The Regulations framed bythe Authority deal with both the issues in a comprehensive way. The former is addressedby stipulating a high level of capital requirement for entry into the field and rigorousenforcement of the solvency requirements, while the latter is covered by the regulationsput in place for protection of policyholder interests.The Authority was keen that only companies with a sound financial background enterinsurance industry and, therefore, stipulated a high solvency margin in addition to highentry capital requirements. The high initial capital requirements and the 26% cap onForeign Direct Investment had, in no way, deterred the Indian enterprises and the majorforeign insurance companies from collaborating to form the Indian Insurancecompanies. The industry has so far witnessed the entry of 15 new private companies inthe life segment and 8 in the non-life segment. In addition, two insurers have beengranted license to operate exclusively in the health sector. Of the private insurers whocommenced operations in the country other than one insurer each in life and non lifesegment, all others have set up businesses in collaboration with a foreign partner. In caseof one life insurer, where both the foreign and the Indian partner quit from the Indianinsurance company in the year 2005, the entire equity stake has been picked up by anIndian entity. Thus, as on date, 21 insurance companies in the private sector are operatingin the country in collaboration with established foreign insurance companies from acrossthe globe. Babasabpatilfreepptmba.com 19
  • 20. A study of investment decisions of individual investor with regard to ULIPsThe insurance sector was opened up for private participation on the ground that in spiteof enormous contributions made by the public sector to expand the coverage and spreadawareness about insurance, the interests of the consumers would be better served if thereis competition among the insurers. It was also recognized that the country has a vastpotential waiting to be tapped and this can be done only when we have a large number ofcompanies spreading their wings across the country and offering a variety of productscatering to the demands of different sections of the population. It was also felt thatcompetition would generate a healthy attitude towards redressal of consumer grievancesand improve the quality of service. We have now seven years of experience of public andprivate sector operating together and it is, perhaps, time to see whether the expectationsare fulfilled.Growth of PremiumA remarkable feature of the post liberalization landscape is the unprecedented growth inthe premium. The growth is significant in life insurance. The first year premium collectedby the insurers in the year 2006-07 was Rs.75,400 crs compared to Rs.6560 crs in theyear 1999-2000, the year prior to the opening up of the sector for privateparticipation. This represents a compound annual growth rate of nearly 42% and anaverage annual growth rate of 131%. If we take a corresponding period of 7 years prior tothe liberation the first year premium increased from Rs.2375 crs in 1992-93 to Rs.6560crs in 1999-2000, a compound Annual growth rate of 16%. A significant feature of thisimpressive growth in the post reform period is the contribution made by the LIC to thegrowth. The compound annual growth rate in the case of LIC was 36% in the post reformperiod while it was only 16% in the period prior to reforms. What has prompted the LICto significantly increase its performance level? Obviously competition has spurred theorganization to gear itself up and exploit its vast workforce spread across the country togarner more premiums.In spite of this impressive growth by the public sector insurer, the private sectorcompanies have managed to gain a market share of 26% by the year 2006-07. That they Babasabpatilfreepptmba.com 20
  • 21. A study of investment decisions of individual investor with regard to ULIPshave been able to make such a significant inroad into the market dominated by the LIC isa great testimony to the leadership of the captains of private industry. The happy feature,however, is that their market share had not been gained at the expense of LIC but hascome out of the enlarged insurance market. The credit for the enlargement of the marketshould legitimately go to the private sector which had identified new markets that werehitherto unexplored by the LIC. That the LIC had later followed the lead of the privatesector speaks volumes about the contribution made by the liberalization process to theenlargement of the market.Insurance PenetrationThe opening of the sector has, as earlier pointed out, led to unprecedented increase incoverage, especially in the life segment and it has impacted the level of insurancepenetration which has witnessed a surge in the last two years. While insurancepenetration was 1.93% in 1999 it rose to 4.8% in the year 2006. It has thus more thandoubled in 7 years. While the increase is impressive in the case of life, where it increasedfrom 1.39% to 4.1%, it remained stagnant at nearly 0.6% in the case of non-life. Theincreased economic activity coupled with recent reforms in general insurance market,would certainly help expand the market in the years to come.Insurance DensityIn the area of insurance density, significant contribution has been made by the privatesector. We had the problem of not only absence of risk protection through insurance butalso a considerable amount of under insurance. During the pre-liberalization era, thenationalized companies were unable to target niche markets and were content to sell alarge number of low ticket items spread over the whole country. The private sector has,on the contrary, started looking at the requirements of various segments of thepopulation, and introduced need based selling through excellent counseling. It is notuncommon to see the CEOs of insurance companies personally making presentations to Babasabpatilfreepptmba.com 21
  • 22. A study of investment decisions of individual investor with regard to ULIPsthe heads of industrial and service sector companies and advising them on what productsare best suited to their employees. The product development has also benefited throughthese interactions as the insurance chiefs could profitably use their feedback to evolvenew products. Through this process they were able to minimize at least to some extent,the problem of under insurance. We see a significant increase in the size of thepolicies. While the average size of the policy before opening up was around Rs.50,000/-it has now gone up to Rs.1 lakh in the case of L.I.C. In the case of private insurers, theaverage size is Rs.2.50 lakhs. The insurance density which was $10 in the year 1999 hasgone up to $33.2 in 2006.Product DevelopmentThe opening up has augured well for the consumer who has now access to a wide rangeof new products. Particularly, unit linked products have attracted the attention of theinsured. While this is a product for the discerning public, there seems to be appetite forthis product from all sections. Availability of riders, particularly health riders, has been apositive development. In the non-life segment crop insurance based on rainfall andtemperature, experiments in health insurance, Directors and Officers liability covers havemade their entry and have come to stay. The removal of tariffs will give a further boost todevelopment of tailor made products in the years to come.Agents TrainingThe expanding market demands a large agency force. The insurers have, therefore, beenrecruiting agency force on a continuous basis. Presently there are more than 20 lakhindividual agents and nearly 5000 Corporate Agents. In order to introduce an element ofprofessionalism in the insurance intermediaries elaborate training and testingarrangements were introduced by the Authority. The demand for tied agency force hasled to a situation where the resources of the institutes providing training have beenstretched. The inspections by the Authority of these institutes have revealed a number ofareas where improvements were called for. It was noticed that some of the institutes Babasabpatilfreepptmba.com 22
  • 23. A study of investment decisions of individual investor with regard to ULIPsdid not have the infrastructure to conduct classes and the faculty was drawn on an ad hocbasis and the courses conducted in a short span as a result of which many of the agentsdid not receive adequate training. It was also noticed that the licensed training institutesallowed franchisees to conduct training on their behalf which was irregular. The insurers,in their anxiety to recruit agents, did not pay any attention to the type of trainingimparted. The Authority had, during 2004, streamlined the system of training andimpressed upon the insurers the need for greater attention being paid to the training oftheir agency force. The revised guidelines were issued after extensive consultations withthe stakeholders and it is hoped that this effort would result in improving the quality ofthe agency force. The Authority is keen that the agency force should be properlyequipped as the insurance products are no longer simple and the agent should be able toassess the requirements and advise on the appropriate policy.It would not be out of place to mention here the importance of the field force beingadequately trained. Being the person on the spot as a representative of the insurer, it isessential that the agent recognizes and understands the need of the prospect. Havingidentified the need, it is his duty to ensure a need-based selling. In the absence of a need-based selling, the contracts are not likely to last long and the policyholder looks for theearliest opportunity to quit. The large attrition rate in the contracts bears silent testimonyto this fact. In this regard, another important factor that comes to my mind is theunhealthy and illegal practice of paying rebates to solicit business. Sec. 41 of theInsurance Act, 1938 strictly prohibits rebating for procuring business. Apart from thestatutory imposition, the practice also is generally responsible for the poor retentionratios. Although the retention ratios of insurance companies have been progressivelyshowing improvement, a great deal needs to be done in this area. A well-trained agent,fulfilling his role as the primary underwriter, can contribute a great deal in theaccomplishment of this task.Corporate Agents Babasabpatilfreepptmba.com 23
  • 24. A study of investment decisions of individual investor with regard to ULIPsThe opening of the sector is accompanied by entry of new set of intermediaries in theinsurance market. The institution of corporate agents was a new experiment started by theAuthority to facilitate sale of insurance policies through existing institutions which are incontact with a large section of the population in the discharge of their normal activities.The Corporate Agent model is expected to bring down costs of procurement of businesssubstantially to the insurance company while benefiting the corporate with fee basedincome which improves its revenue stream. The insured himself, should feel comfortablewith this model as he would be dealing with an Institution that is familiar to him. In partsof Europe the Bancassurance model has worked well and the experience of the threeparties to the transaction, namely, the Bank, the insurance company and the customer hasbeen positive. You would notice in India too the insurers are keen to have workingarrangements with Banks so that they have access to their databank which is a valuableresource for the insurer to build his customer base. I am confident that in the years tocome Bancassurance would be a critical intermediary in the spread of insurance in thecountry.BrokersThe introduction of brokers in the Indian insurance industry in the liberalized scenario isanother significant development. Brokers act as representatives of the policyholdersalthough they are paid by the insurers. As a result, they are expected to bring betterservice to the clients in several areas like: • Monitoring the insurance market, the credibility of the players and the quality of services they render. • Analyzing the various products available in the market and assist the clients in choosing the products that suit their requirement. • Helping the client in the completion of the proposals, conclusion of the contract and render subsequent service, if any • Assisting the client in the settlement of claims.Insurance Education and Research Babasabpatilfreepptmba.com 24
  • 25. A study of investment decisions of individual investor with regard to ULIPsOne of the spin-offs of liberalization of the insurance sector has been rise in demand forinsurance education, training and research. The Insurance Institute of India’s role appearsto have been confined to professional examinations conducted by it. The course is arecognized qualification for professional competence in the area of insurance. What wasperhaps ignored is the need to innovate by way of introduction of new subjects in tunewith the demand and expectations of an evolving market after a thorough review of theexisting course curriculum. Examples of such subjects include Health Insurance, UnitLinked Insurance, Micro insurance, tapping of alternate channels of distribution, ALM(Asset Liability Management) related issues and re-visiting the insurance regulations inthe context of the evolving economic environment. The market realities dictate that theseareas are dealt with in greater detail. The various stakeholders need to be receptive to thechanging ground realities to be in a position to meet the challenges.Similarly research in insurance remains a neglected area and there is need for a concertedeffort to develop and define areas of focus for research in tune with the requirements ofthe industry. Without a research focus no institute can expect to make tangible gains inthe near future in terms of value addition and meeting the expectations of its membersand the industry at large. Experiences of the other economies and particularly theemerging economies are particularly relevant in this context.Rural and Social FocusDuring the debate on opening of the insurance sector, concern was expressed in somesections that the competition generated with the entry of private insurers would result inall the insurers including the public sector insurers to chase the niche markets in therelatively well off regions and their activities would, therefore, be mostly urban centricand they would ignore the rural markets and the weaker sections of the society. Babasabpatilfreepptmba.com 25
  • 26. A study of investment decisions of individual investor with regard to ULIPsIt was indicated that when the state has monopoly of the sector the public sectorcompanies were being used as instruments of state for implementing welfare schemesbenefiting the rural masses and the vulnerable sections. These companies were able tocarry out the mandate given by the government even if it meant that they had to suffersome losses, because the tariff allowed them enough margin in other segments to coverthese losses. This situation would alter with entry of private players and removal oftariffs. The cushion enjoyed by the PSUs would disappear and they have to compete withprivate sector for business and they would then be unable to take on any additional loadimposed by the government by way of obligations to the poor. It was then argued bymany academicians that all business relating to rural areas and weaker sections need notbe loss making and all insurers should have the obligation to serve the rural areas andweaker sections. The Insurance Act was, therefore, amended authorizing the Regulator tolay down certain obligations on the insurers towards rural areas and weaker sections.The Authority notified the regulations on obligations of insurers towards the rural andsocial sectors in the year 2000. The definition of rural area is in accordance with the oneprovided by the Census of India. It is mandatory for all insurers to comply with the ruraland social sector obligations which are linked to the year of commencement of operationsof the respective company.Concerns and expectations The Insurance industry has, in the last 7 years, grown enormously. Global players areinterested in the market and are anxious to come to India. There is a vast untappedpotential with a major portion of the savings parked in Banking sector. Part of thosesavings can easily migrate to insurance. While the Authority is happy about the positivedevelopments in the sector, there are still some concerns in certain areas.Advantages of investing in ULIP: Babasabpatilfreepptmba.com 26
  • 27. A study of investment decisions of individual investor with regard to ULIPsULIPs have been selling like proverbial `hot cakes in the recent past and they are likelyto continue to outsell their plain vanilla counterparts going ahead. So what is it thatmakes ULIPs so attractive to the individual is, as follows1. Insurace cover plus savings: ULIP serve the purpose of providing life insurancecombined with savings at market-linked returns. To that extent, ULIPs can be termed as atwo-in-one plan in terms of giving an individual the twin benefits of life insurance plussavings. This is unlike comparable instruments like a mutual fund for instance, whichdoes not offer a life cover.2. Multiple investment options: ULIP offer a lot more variety than traditional lifeinsurance plans. So there are multiple options at the individuals disposal. . ULIPsgenerally come in three broad variants:  Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in debt)  Balanced ULIPs (can typically invest around 40%-60% in equities)  Conservative ULIPs (can typically invest up to 20% in equities)Although this is how the ULIP options are generally designed, the exact debt/equityallocations may vary across insurance companies. Individuals can opt for a variant basedon their risk profile. For example, a 30-Yr old individual looking at buying a lifeinsurance plan that also helps him build a corpus for retirement can consider investing inthe Balanced or even the Aggressive ULIP. Likewise, a risk-averse individual who is notcomfortable with a high equity allocation can opt for the Conservative ULIP.3. Flexibility: Mutual Funds also offer hybrid/balanced schemes that allow an individualto select a plan according to his risk profile. The difference lies in the flexibility thatULIPs afford the individual. Individuals can switch between the ULIP variants outlinedabove to capitalize on investment opportunities across the equity and debt markets. Someinsurance companies allow a certain number of `free switches. This is an important Babasabpatilfreepptmba.com 27
  • 28. A study of investment decisions of individual investor with regard to ULIPsfeature that allows the informed individual/investor to benefit from the vagaries ofstock/debt markets. For instance, when stock markets were on the brink of 7,000 points(Sensex), the informed investor could have shifted his assets from an Aggressive ULIP toa low-risk Conservative ULIP.Switching also helps individuals on another front. They can shift from an Aggressive to aBalanced or a Conservative ULIP as they approach retirement. This is a reflection of thechange in their risk appetite, as they grow older.4. Works like an SIP: Rupee cost-averaging is another important benefit associated withULIPs. With an SIP, individuals invest their monies regularly over time intervals of amonth/quarter and dont have to worry about `timing the stock markets. As a matter offact, even the annual premium in a ULIP works on the rupee cost-averaging principle. Anadded benefit with ULIPs is that individuals can also invest a one-time amount in theULIP either to benefit from opportunities in the stock markets or if they have aninvestible surplus in a particular year that they wish to put aside for the future. Babasabpatilfreepptmba.com 28
  • 29. A study of investment decisions of individual investor with regard to ULIPsThe chart below shows how ULIP can meet multiple needs at different life stages.Integrated Financial Planning Starting a job, Recently married, Married, with Single individual no kids kids Your Low protection, Reasonable Higher protection, Need high asset creation protection, still still high on asset and accumulation high on asset creation but creation steadier options, increase savings for child Flexibility Choose low death Increase death Increase death benefit, choose benefit, choose benefit, choose growth/balanced growth/balanced balanced option for option for asset option for asset asset creation. creation creation Choose riders for enhanced protection. Use top- ups to increase your accumulation Babasabpatilfreepptmba.com 29
  • 30. A study of investment decisions of individual investor with regard to ULIPsKids going to Higher studies for child, Children independent, nearingschool, college marriage the golden yearsHigher Protection, Lump sum money for Safe accumulation for the goldenhigh on asset education, marriage. Facility to yrs.Considerably lower lifecreation but stop premium for 2-3 yrs for insurance as the dependenciessteadier options, these extra expenses have decreasedliquidity foreducation expensesWithdrawal from Withdrawal from the account Decrease the death benefit-the account for the for higher education/marriage reduce it to the minimumeducation expenses expenses of the child. Premium possible. Choose the incomeof the child holiday-to stop premium for a investment option. Top-ups form period without lapsing the the accumulation (with reduced policy expenses) for the golden yrs cash accumulationBecause of their flexibility to adjust to different life stage needs, ULIPs fit in very wellwith financial planning efforts. Babasabpatilfreepptmba.com 30
  • 31. A study of investment decisions of individual investor with regard to ULIPsCOMPANY PROFILEBackground and Inception of the companyICICI Prudential Life Insurance Company Limited (‘the Company’) a joint ventureBetween ICICI Bank Limited and Prudential plc of UK was incorporated on July20, 2000 as a company under the Companies Act, 1956 (‘the Act’). The Companyis licensed by the Insurance Regulatory and Development Authority (‘IRDA’) forcarrying life insurance business in India.ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, apremier financial powerhouse and Prudential plc, a leading international financialservices group headquartered in the United Kingdom (UK). The company brings togetherthe local market expertise and financial strength of ICICI Bank and Prudential’sInternational life insurance experience. The company was granted a certificate ofRegistration by the IRDA on November 24, 2000 and eighteen days later, issued its firstpolicy on December 12. ICICI Prudential was amongst the first private sector insurancecompanies to begin operations in December 2000 after receiving approval from InsuranceRegulatory Development Authority (IRDA).From its early days, ICICI Prudential seemed to have the wherewithal for a large-scalebusiness. By March 31, 2002, a little over a year since its launch, the company had issued100,000 policies translating into premium income of approximately Rs. 1,200 million ona sum assured of over Rs.23 billion. When the company began its operations, the needwas to build a brand that was relatable to, symbolized trust and was easily recognized andunderstood. It launched a corporate campaign ICICI Prudential also made using thetheme of ‘Sindoor’ to epitomize protection, trust, togetherness and all that is Indian;endearing itself to the masses. The success of the campaign, ‘the calling card of thecompany’ saw the brand awareness scores almost at par with its 40 year old competitor.The theme of protection was also extended to subsequent product and category specific Babasabpatilfreepptmba.com 31
  • 32. A study of investment decisions of individual investor with regard to ULIPsCampaigns –from child plans to retirement solutions –which highlight how the companywill be with its customers at every step of life.From day one, the company has unflinchingly focused on being mass-market player,developing products, creating a distribution network and deploying resources that wouldfurther its goal. Apart from ramping up thoroughly training its advisors, the company hastwelve ‘Bancassurance’ partners –the largest in the country. It swiftly revised and addedto its initial range of products, pioneering market-linked products and pension plans, tooffer customers the most flexible life insurance policies in the country. In February 2004,ICICI Prudential increased its capital base by Rs. 500 million, its ninth capital hike,bringing the total paid –up equity capital to Rs. 6,750 million. With the authorized capitalof the company standing at Rs. 12 billion, ICICI Prudential continues to have the highestcapital base amongst all life insurers in the country. The challenge ICICI Prudential nowfaces is to retain its top-notch position and continue to deliver the finest life insuranceand pension solutions to its ever-growing customer base.ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and Prudentialplc holding 74% and 26% stake respectively. For the year ended March 31, 2006, thecompany garnered Rs.2, 412 crore of weighted new business premium and wrote 837,963policies. The sum assured in force stands at Rs.45, 888 crore. The company has anetwork of over 72,000 advisors; as well as 9 bancasurance partners and over 200corporate agent and broker tie-ups.ICICI Prudential is also the only private life insurer in India to receive a National InsurerFinancial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the highestcredit rating, and is a clear assurance of ICICI Prudential’s ability to meet its obligationsto customers at the time of maturity or claims. For the past five years, ICICI Prudentialhas retained its position as the No.1 private insurer in the country, with a wide range offlexible products that meet the needs of the Indian customer at every step in life. Babasabpatilfreepptmba.com 32
  • 33. A study of investment decisions of individual investor with regard to ULIPsBeginning operations in December 2000, ICICI Prudential’s success has been meteoric,becoming the number one private life insurer within months of launch. Today, it has oneof the largest distribution networks amongst private life insurers in India, with branchesin 54 cities. The total number of policies issued stands at more than 780,000 with a totalsum assured in excess of Rs.160 billion.ICICI Prudential closed the financial year ended march 31, 2004 with a total receivedpremium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20billion. New business premium income shows a 106% growth at Rs. 7.5 billion, drivenmainly by the company’s range of unique unit-linked policies and pension plans. Thecompany’s retail market share amongst private companies stood at 36%, making it clearleader in the segment. To add to its achievements, in the year 2003/04 it was adjudgedMost Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by ACNielsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’award for the second year running. The company is also proud to have won Silver atEFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudentialwas also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.ICICI Prudential’s success is rooted in its philosophy to always offer the customer achoice. This has been the driving force behind its multi-channel distribution strategy,which includes advisors, banks, direct marketing and corporate agents. In fact, ICICIPrudential was the first life insurer to invest in multiple channels and offer the customerchoice and access; thus reducing dependency on any one channel, great strides in theretirement solutions and pensions market.The Company’s penetration of the retirement market was driven by the focused approachtowards creating awareness through sustained campaign; ‘Retire from work, not life’.Within six months, the campaign rewarded ICICI Prudential with an increased share of23% of the total pensions market and 78% amongst private players. Babasabpatilfreepptmba.com 33
  • 34. A study of investment decisions of individual investor with regard to ULIPsOBJECTIVE OF THE COMPANY It will be the endeavor of ICICI Prudential Life Insurance Company Ltd. topromote a safe, secure, congenial and productive work environment where staff memberswill deliver their best without any inhibition, threat or fear. The Company will nottolerate verbal or physical conduct by any staff member that harasses, disrupts, orinterferes with another’s work performance or that which creates an intimidating,offensive, or hostile environment. The Company will actively communicate its policy on WorkplaceHarassment to all staff members to spread awareness and thereby, attempt to preventincidence of such harassment. In the unlikely event of such an occurrence, the Companywill initiate prompt and strong disciplinary action in line with the stated Policy.ABOUT THE PROMOTERS:A) ICICI BANK ICICI Bank is India’s second –largest bank with total assets of about Rs 112,024 croreand a network of about 450 branches and offices and about 1750ATMs. It offers a widerange of banking products and financial services to corporate and retail customersthrough a variety of delivery channels and through its specialized subsidiaries andaffiliates in the areas of investments banking, life and non–life insurance, venture capital,asset management and information technology. ICICI bank posted a net profit of Rs1,637crore for the year ended March 31,2004 .ICICI Bank’s equity shares are listed in India onstock exchanges at Chennai, Delhi, Kolkata and vadodare, the stock Exchange, Mumbaiand the National Stock Exchange of India limited and its American DepositaryReceipts(ADRs) are listed on the New York Stock Exchange(NYSE). Babasabpatilfreepptmba.com 34
  • 35. A study of investment decisions of individual investor with regard to ULIPsB) PRUDENTIAL Established in London in 1848, Prudential plc, through its businesses in the UK andEurope, the US and Asia, Provides retail financial services products and services tomore then 16 million customers, policyholder and unit holders worldwide. As of June 30,2004, the company had over US$300 billion in funds under management. Prudential hasbrought to market an integrated range of financial services products that now includes lifeassurance, pensions, mutual funds, banking, investment management and generalinsurance, In Asia, prudential is the leading European life insurance company with a vastnetwork of 24 life and mutual fund operations in twelve countries-China, Hong Kong,India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailandand Vietnam.HISTORY AND GROWTHDISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private lifeinsures in India, having commenced operations in 69 cities and towns in India. That areAgra, Ahmedabad, Ajmer, Allahabad, Amristar, Aurangabad, Bangalore, Barely,Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore,Dehradun, Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad,Hubli, Indore, Jaipur, Jalandhar, Kota,cochin Kottayam, Lucknow, Ludhiana, Madurai,Mangalore, Meerut, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune,Raipur, Rajkot, Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy,Trivandrum, Udaipur, Vadodara, Vapi, Varanasi, Vashi, Vijayavada and Vizag.The company has seven bank assurance ties – ups, having agreements with ICICI Bank,South Indian Bank, Bank of India, Lord Krishna Bank and some co-operative Banks, aswell as 160 corporate agents and brokers. It has also tied up with organizations like Dhanfor distribution of Salaam Zindagi, a policy for the socially and economicallyunderprivileged sections of society. Babasabpatilfreepptmba.com 35
  • 36. A study of investment decisions of individual investor with regard to ULIPsICICI prudential has recruited and trained about 50,000 insurance advisors to interfacewith and advice customers. Further, It leverages its state–of-the–art IT infrastructure toprovide superior quality of service to customers.The insurance sector was monopoly of L.I.C. for the past 4 decades. So liberalization hasassured a new era of competition in this sector. Liberalization will bring about strongmarketing of policies by rival firms, which is expected to benefit the customers through awider range of products and better services. Insurance is a kind of product that is rarelybought by the customers and in most cases they are sold to them, so it is essential for theinsurance company to market their products rightly and make people aware of it. Verysoon the market will be flooded with large number of products by a large number ofinsurers operating in the Indian market. The potential for growth in the Indian market canbe gauged by the fact that the Indian Insurance Market registered the highest growth inthe Asian region even though India’s share of global insurance market is less than 0.5%(1998). The private players know that market penetration is low and the potential toexploit is high.Some of the other factors that make the Indian Market lucrative are that the Insurancepremier per capita in India is very low and the presence of a very large middle class. TheConfederation of Indian Industry (CII) has projected a growth of Life Insurance premiumfrom Rs.350 Billion to Rs.1400 billion by 2009. The existing level of awareness ofconsumers for insurance products is very low. It is so because only 62% of the Indianpopulation is educated and less than 10% are well educated. Even the educatedconsumers are ignorant about the various products of insurance. Hence it is necessary thatall the insurance company should undertake the extensive plan for educating thecustomer. Babasabpatilfreepptmba.com 36
  • 37. A study of investment decisions of individual investor with regard to ULIPsOWNERSHIP PATTERN ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, apremier financial powerhouse and prudential plc, a leading international financialservices group headquartered in the United Kingdom. ICICI Prudential was amongst thefirst private sector insurance companies to begin operations in December 2000 afterReceiving approval from IRDA.ICICI Prudential’s equity base stands at Rs.8.25 billionwith ICICI Bank and Prudential holding 74% and 26% stake respectively. In the half yearended September 30, 2004 the company garnered Rs 498 Crore of new business premiumfor a total sum assured of over Rs 23,000 Crore and had over 1 million policies. Thecompany has a network of over 40,000 advisors; as well as 7 banc assurance tie-ups.Today, ICICI Prudential has emerged as the No. 1 private life insurer in the country, witha wide range of flexible products that meet the needs of the Indian customer at every stepin life.SERVICEICICI Prudential has recruited and trained over 83,000 insurance agents to interface withand advise customers and has the highest number amongst private life insurers on theRenowned Million Dollar Round Table (MDRT). Further, it leverages its state-of-the-artIT infrastructure to provide superior quality of service to customers.Consumer EducationICICI Prudential has taken the lead in educating the market including seminars onfinancial planning and retirement planningRural awareness: Gram Sabhas, e-Choupals, Project Shakti, Speaking regional languagesFINSITE - nearly 2000 people have enrolled in the program Newsletters - claims, fundsand group.ICICI Prudential covers all types of consumers across their life stages, thus ensuringcover for their entire associated goal based savings Babasabpatilfreepptmba.com 37
  • 38. A study of investment decisions of individual investor with regard to ULIPsTransparencyOnly insurance company to include a key feature document of the policy to the policyholder • Disclosure of portfolio in the quarterly newsletter • Unit statement • Daily NAVCustomer CentricICICI Prudential was the first company in the insurance space to decrease commissionsin a bid to increase overall customer value.Senior management team visits customers to get their feedback on their policyand service experience (30 visits a month and 300 in a year).ICICI Prudential has the widest bouquet of need based products.Service DeliveryICICI Prudential has rigorous Six Sigma processes in place. Projects have beenundertaken in several customer-facing processes such as policy issuance, medicalprocess, premium ratings, etc.Policy Issuance All policies issued within 10 working days.Jet - 2003 sigma level was 1.9, currently it is 3.25.Medical Process 1.9 in 2003 to 3 sigma nowRating of Premiums Counteroffer acceptances up from 15% (Oct 2002) to 60%(current) Babasabpatilfreepptmba.com 38
  • 39. A study of investment decisions of individual investor with regard to ULIPsABOUT ICICI PRUDENTIALBOARD OF DIRECTORS The ICICI Prudential Life Insurance Company Limited Board comprises reputedpeople from the finance industry both from India and abroad.Ms.Chanda.D.Kochhar, ChairpersonMr.N.S.Kannan, DirectorMr.K.Ramkumar, DirectorMr.Barry.Stowe, DirectorMr.Adrian.O’Connor, DirectorMr.Keki.Dadiseth, Independent DirectorProf.Marti.G.Subrahmanyam, Independent DirectorMs.Rama.Bijapurkar, Independent DirectorMr.Vinod.Kumar.Dhall, Independent DirectorMr. V. Vaidyanathan, Managing Director & CEO Babasabpatilfreepptmba.com 39
  • 40. A study of investment decisions of individual investor with regard to ULIPsManagement TeamThe ICICI Prudential Life Insurance Company Limited Management team comprisesreputed people from the finance industry both from India and abroad.Mr.V.Vaidyanathan,ManagingDirector&CEOMs.AnitaPai, ExecutiveVice President - Customer Service, Technology & MarketingDr.Avijit.Chatterjee,Appointed.ActuaryMr. Puneet Nanda, Executive Vice PresidentThe company has its Registered Office at MumbaiICICI Prudential Life Insurance Company LimitedICICI Prulife Towers, 1089, Appasaheb Marathe Marg,Prabhadevi, Mumbai- 400025, India.A JOINT VENTURE BETWEEN ICICI BANK (74%) & PRUDENTIALCORPORATION (26 %)SLOGAN OF ICICI PRUDENTIAL LIFE INSURANCEWe cover you at every step in life(Suraksha Zindagi ke har kadam par, as interpreted in Hindi).ICICI Prudential was positioned as an enabler of protection relevant to the needs of thelife stage.VISION:To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service. Babasabpatilfreepptmba.com 40
  • 41. A study of investment decisions of individual investor with regard to ULIPsThis we hope to achieve by: • Understanding the needs of customers and offering them superior products and service • Leveraging technology to service customers 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 corevalues -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of thevalues describe what the company stands for, the qualities of our people and the way wework.MISSION:ICICI Prudential is committed to provide insurance solutions and services that meet orexceed the requirements of the clients. We shall strive to enhance customer satisfactionthrough continual improvement of processes and by improving the competence of ouremployees.CORE VALUESThe success of the company will be founded in its unflinching commitment to 5 • Customer First • Bounder less • Ownership Babasabpatilfreepptmba.com 41
  • 42. A study of investment decisions of individual investor with regard to ULIPs • Passion • IntegrityWe do believe that we are on the threshold of an existing new opportunity, where we canplay a significant role in redefine and reshaping the sector. Given the quality of ourparentage and the commitment of our team, there are no limits to our growth.AWARDS WON BY ICICI BANK AND PRUDENTIALThe bank has got ISO certification ISO 9001 2000“Bank of the Year Award for India” by The Banker“Best Bank in India” by Euro (2005)Best Bank in India" by Euro."Best Bank" by Business India (2004)Prudential UK awarded “Best Pension Provider”What Investment magazine (2004)“Most Competitive Annuity Provider of the Year”Money facts (2004 & 2003)The first Financial Services Company to get the status of Super BrandHalf-million policy milestone – November 2003Rs 1000 cr premium income milestone – December 20031 million-policy milestone – September 2004More than 5000 Cr. in Funds under management – Sept 20055 Years of leadership among Private Life Insurers – Dec 2005 Babasabpatilfreepptmba.com 42
  • 43. A study of investment decisions of individual investor with regard to ULIPsAWARDS ACHIEVED BY ICICI PRUDENTIALICICI Prudential was voted the No.1 Company in a list of China’s top five insurancecompanies with the greatest potential for growth and development at the 2004 WorldFinancial Laboratory Annual Awards.ICICI Prudential Life was named ‘Best Life Insurer’ at the Outlook Money Awards2003-2004. This was the second consecutive year that ICICI Pru won this award.Prudential ICICI Asset Management and ICICI Prudential Life are among the top 50most trusted services brands in India according to an independent survey by A.C. Nielsenduring 2003.For the second successive year, Prudential Vietnam was awarded the Golden DragonPrize in 2003 – an annual award honoring the strongest foreign companies in Vietnam.At the Yahoo! Emotive Brand Awards 2003-2004 Prudential was voted as one of themost appealing and emotive brands by Hong Kong Internet users, which highlights thestrong public recognition of Prudential as a caring and listening company.PCA LIFE (Korea) received the Global Marketing Grand Prix (Overseas Company)Award for the successful launch of their PCA Platinum Annuity.PCA Life (Taiwan) was named as one of the five ‘most reputable’ life insurancecompanies in Taiwan for 2003 by Commonwealth magazine.At the Investment Fund Awards 2003, the Prudential Singapore “PRUlink SingaporeManaged Fund” won the 10-year Special Award for the highest absolute return over 10years in the Singapore authorized Investment-Linked Products category.PCA Securities Investment Trust’s Hi-Tech Fund was recognized by Standard & Poor’sTaiwan Investment Funds Awards 2003 as the Best Performing Fund in the ‘Three-yearTaiwan TMT (Technology Media Telecommunication)’ category. Babasabpatilfreepptmba.com 43
  • 44. A study of investment decisions of individual investor with regard to ULIPsCOMPETITORS IN INSURANCE INDUSTRY: a) LIC -Fully owned by Government. b) Postal Life Insurance. Private Players - a) Bajaj Allianz Life Insurance Co. Ltd. b) Birla Sun Life Insurance Co. Ltd. c) HDFC Standard Life Insurance Co. Ltd. d) ICICI Prudential Life Insurance Co. Ltd. e) ING Vysya Life Insurance Co. Ltd. f) Max New York Life Insurance Co. Ltd. g) MetLife India Insurance Co. Pvt. Ltd. h) Kotak Mahindra Old Mutual Life Insurance Co. Ltd. i) SBI Life Insurance Co. Ltd. j) TATA AIG Life Insurance Co. Ltd k) AMP Sanmar Assurance Co. Ltd. l) Aviva Life Insurance Co. Ltd. m) Sahara India Life Insurance Co. Ltd. n) Shriram Sunlam. o) PNB Life Insurance. p) Reliance Life Insurance. q) Axa Bharti Enterprises. Babasabpatilfreepptmba.com 44
  • 45. A study of investment decisions of individual investor with regard to ULIPsWORK FLOWActuary Actuary is a group of mathematician who making insurance product, and these arethe people analyses customers’ requirement and also follows Government policies andregulation etc. They are well aware about what customers looking for… They arecreating initial insurance product.Under writers After making initial insurance product actuaries forward this initial product to underwriters, these people are the real risk-taking people who make initial insurance productinto final product. After under writing final insurance product move to marketingdevelopers.Market Developers These people taking care of further development of product. They will deals withdistribution and promotion activities. Then the product will move to sales people whodirectly contact with customers.Sales people Sales people are the people directly contact with customers. Its ability of salespeople to give clear idea regarding the new product to the customers. Insurance companycontact with customers through sales persons. Babasabpatilfreepptmba.com 45
  • 46. A study of investment decisions of individual investor with regard to ULIPs Work flow structure: ACTURYUDER FORM UNDERWRITERS POLICIES WRITERS GOVERNMENT MARKET ADVERTISEMENT DEVELOPERS AGENCIES SALES PEOPLE CUSTOMERS Babasabpatilfreepptmba.com 46
  • 47. A study of investment decisions of individual investor with regard to ULIPsPRODUCTSINSURANCE SOLUTIONS FOR INDIVIDUALS: ICICI Prudential Life Insurance offers a range of innovative, customer-centricproducts that meet the needs of customers at every life stage. Its products can beenhanced with up to 5 riders, to create a customized solution for each policyholder.SAVINGS SOLUTIONS  Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection.  Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.  Save ’n’ Protect is a traditional endowment savings plan that offers life protection along with adequate returns.  Cash Back 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. Babasabpatilfreepptmba.com 47
  • 48. A study of investment decisions of individual investor with regard to ULIPs  Life Time & Life Time II offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options Preserver, Protector, Balancer and Maximiser.  Life Link II is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.  Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75.  Invest Shield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest.  Invest Shield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options.  Invest Shield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.PROTECTION SOLUTIONS  Life Guard is a protection plan, which offers life cover at very low cost. It is available in 3 options? level term assurance, level term assurance with return of premium and single premium.  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 Babasabpatilfreepptmba.com 48
  • 49. A study of investment decisions of individual investor with regard to ULIPs  Smart Kid education plans provide 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  ForeverLife is a retirement product targeted at individuals in their thirties.  SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover.MARKET-LINKED RETIREMENT PRODUCTS  Lifetime Pension IIis a regular premium market-linked pension plan  Life Link Pension II is a single premium market-linked pension plan.  Invest Shield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses.  Golden Years: is a limited premium paying retirement solution that offers tax benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.ICICI Prudential also launched “Salaam Zindagi”, a social sector group insurance policytargeted at the economically underprivileged sections of the society.HEALTH SOLUTION Babasabpatilfreepptmba.com 49
  • 50. A study of investment decisions of individual investor with regard to ULIPs  Health Assure: Is a regular premium plan which provides l ong term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses.  Health Assure Plus: Is a regular premium plan which provides long term cover against 6 critical illnesses by providing financial assistance, irrespective of actual medical expenses, as well as an equivalent life insurance coverGROUP INSURANCE SOLUTIONSICICI Prudential also offers Group Insurance Solutions for companies seeking to enhancebenefits to their employees.  ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.  ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.  ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or Babasabpatilfreepptmba.com 50
  • 51. A study of investment decisions of individual investor with regard to ULIPs 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.FLEXIBLE RIDER OPTIONSICICI Prudential Life offers flexible riders, which can be added to the basic policy at amarginal 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 the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.  Accident Benefit: This rider option pays the sum assured under the rider on death due to accident.  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.  Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on Smart Kid, Secure Plus and Cash Plus  Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with Secure Plus and Cash Plus. Babasabpatilfreepptmba.com 51
  • 52. A study of investment decisions of individual investor with regard to ULIPsThe Structure The structure of the organization represents the hierarchy of the organization. Itrepresents the reporting system of the organization. Thus, organization structure is thepattern of relationships among various activities and positions. From the structure ororgan gram of the organization we can have a clear picture of the responsibility of thepersonnel working in the organization. It refers to the differentiation and integration ofactivities and authority, role and relationships in the organization. Hence organizationstructure is the basic framework within which the manager’s decision-making behaviortakes place.In ICICI Prudential Life Insurance the structure of the organization represents thehierarchy of the organization.ORGANIZATION CHART Babasabpatilfreepptmba.com 52
  • 53. A study of investment decisions of individual investor with regard to ULIPsDETAILED STUDY OF DEPARTMENTSTied AgencyTied Agency is the largest distribution channel of ICICI Prudential, comprising a largeadvisor force that targets various customer segments. The strength of tied agency lies inan aggressive strategy of expanding and procuring quality business. With focus on sales& people development, tied agency has emerged as a robust, predictable and sustainablebusiness model.Bancassurance and AlliancesICICI Prudential was a pioneer in offering life insurance solutions through banks andalliances. Within a short span of two years, and with nearly a large number of partners,B & A has emerged as a vital component of the company’s sales and distributionstrategy, contributing to approximately one third of company’s total business.The business philosophy at B&A is to leverage distribution synergies with our partnersand add value to its customers as well as the partners. Flexibility, adaptation andexperimenting with new ideas are the hallmarks of this channel.Customer Service and OperationsThe Operations department oils the work processes between the customer and thecompany to ensure consistent and quality service to the customer. To streamline theoperations, the Operations department interfaces between the clients and the agents, thebranches and the underwriters, and manages work processes.The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and QueryResolution Unit are all committed to providing effective solutions to over lakhs ofcustomers across the country. Babasabpatilfreepptmba.com 53
  • 54. A study of investment decisions of individual investor with regard to ULIPsInformation TechnologyThe Information Technology function at ICICI Prudential is committed to enablebusiness through the use of technology. It is segmented into 4 groups to enable highestlevels of delivery to the customers: Life Asia Solutions Group that provides flexibility indesigning better product offerings to end-users, the Solutions Group- Web that providesreal-time information to customers and is responsible for customer relationshipmanagement, IT Architecture & Corporate Solutions Group is in charge of developingand maintaining a blueprint for the IT architecture for the enterprise as a whole. Thisteam works as an in house R&D Solution Group, exploring new technological initiativesand also caters to information needs of corporate functions in the organization. ITInfrastructure group is responsible for providing hardware, software, network services tothe whole organization. This group runs the Digital Nervous System of the Enterprise atthe highest levels of efficiency and provide robust, scalable and highly available platformfor deployment of business application.MarketingThe Marketing function at ICICI Pru covers an array of activities - brand and mediamanagement, channel support, direct marketing and corporate communications. TheBrand and Communications team is in charge of advertising, consumer research, mediaplanning & buying and Public Relations; that helps develop and nurture ICICIPrudentials corporate identity while effectively communicating its varied productofferings to the customer. Channel marketing provides support to the sales force bystreamlining the design and development of collaterals and sales tools across distributionchannels. The Direct marketing team was set up to generate high quality leads forprofitable business. The team achieves this through target database acquisition andcommunicating customized product information through e-mailers, telemarketing andinnovative direct mailers. Babasabpatilfreepptmba.com 54
  • 55. A study of investment decisions of individual investor with regard to ULIPsFinanceFinance function in ICICI Prudential is committed to create an infrastructure that isaligned to shareholder expectations. Finance basically comprises of four functions. .Corporate Planning and MIS provide feedback on business strategies. This includesdriving the budgeting process, providing strategic inputs for decision-making andmanagement reporting and analysis. The Accounts function includes preparation andmaintenance of financial records, funds management, and expense processing andtreasury operations. Compliance ensures that every action is within the regulatoryframework. This includes reviewing compliance requirements and supporting the ethicalframework of ICICI Pru life. Internal audit provides assurance to the management overthe organizations control framework and includes process risk management, informationsecurity assessment and business continuity assessment.Human ResourceThe people strategy of ICICI Prudential is “To build a committed team with a culture ofinnovation, learning and growth. The Human Resource Function at ICICI Prudentialdrives the people strategy of the business. With its initial focus on operational excellenceto deliver benefits and services to staff members, HR is now committed to buildingcapability through state of the art processes. A robust performance management system,compensation system and a segmented training architecture enable it to deliver value tothe organization.Business ExcellenceThe Business Excellence function is committed to building a quality mindset across theorganization. ICICI Prudential is the first organization in the Insurance Industry that hasadopted the Six Sigma Methodology for process efficiency and measurement. The team Babasabpatilfreepptmba.com 55
  • 56. A study of investment decisions of individual investor with regard to ULIPsis also driving the Malcolm Baldrige framework across the organization, an interventionthat examines management of key inputs for Business Excellence.SWOT ANALYSIS OF ICICI PRUDENTIAL LIFE INSURANCEStrength • Wide variety of products offered by the company • High quality service delivered by the company • Wide spread distribution network has helped to increase its operations • Dedicated staff and advisors of the company has helped the company to issue highest numbers of policies and thereby achieve No. 1 place amongst private players. • Advertisement campaigns of the company to create awareness among people as been successful and also become one of the biggest strength of the company.Weakness • The product offered is little expensive compared to LIC and cannot be afforded by lower income group. • The operation of the company is limited to major cities and towns.Opportunities • Company can extend its operation to rural and sub-urban areas by developing products which suit their needs. • Since most of the insurable population in our country is unaware of the life insurance, therefore the company can undertake aggressive marketing and thereby tap this uninsurable segment.Threats • Stiff competition from LIC and other private players like Birla Sun life, HDFC std life etc Babasabpatilfreepptmba.com 56
  • 57. A study of investment decisions of individual investor with regard to ULIPs • Anticipated tax rates will have a direct impact on the demand of the Insurance.RESEARCH METHODOLOGYPROJECT TITLE:“A study of investment decisions of individual investor with regard to UNIT LINKEDINSURANCE PLANS at ICICI prudential life insurance co ltd HUBLI branch”TYPES OF DATA COLLECTED a. Primary Data Collection: Primary data has been collected for the study With the aid of questionnaire. b. Secondary Data Collection: Secondary data has been collected from Website and BrochuresSAMPLING Babasabpatilfreepptmba.com 57
  • 58. A study of investment decisions of individual investor with regard to ULIPs Sampling Method: Random Selection Sample Size: 100SURVEY The survey has been conducted in the Hubli city.MEASURING TOOLS:SPSS Software used for measuring the response is in terms of percentage method usinggraphical charts like Bar graphs and Pie charts.Frequencies:Frequency 1 gender Cumulative Frequency Percent Valid Percent Percent Valid male 94 94.0 94.0 94.0 female 6 6.0 6.0 100.0 Total 100 100.0 100.0 Babasabpatilfreepptmba.com 58
  • 59. A study of investment decisions of individual investor with regard to ULIPs gender female maleAnalysis:The above table indicates that among 100 respondents 94% are male respondents andonly 6% are female respondents.Interpretation:From the survey we came to know that maximum numbers of respondents are male. Veryfew respondents are female.Frequency 2 age Cumulative Frequency Percent Valid Percent Percent Valid 15-25 27 27.0 27.0 27.0 26-45 71 71.0 71.0 98.0 46-55 1 1.0 1.0 99.0 56-65 1 1.0 1.0 100.0 Total 100 100.0 100.0 Babasabpatilfreepptmba.com 59
  • 60. A study of investment decisions of individual investor with regard to ULIPs age 56-65 46-55 15-25 26-45Analysis:The above chart indicates that out of 100 respondents 27% of respondents fall under theage group of 15-25, 71% of respondents fall under the age group of 26-45, only 1% arefall under age group 46-55 and another 1% of respondent fall under the age group of56-65.Interpretation:From the survey we come to know that most of the respondents are between the agegroup of 26-45.Frequency 3 Babasabpatilfreepptmba.com 60
  • 61. A study of investment decisions of individual investor with regard to ULIPs occupation Cumulative Frequency Percent Valid Percent Percent Valid salaried govt employee 16 16.0 16.0 16.0 salaried pvt employee 57 57.0 57.0 73.0 business man 13 13.0 13.0 86.0 professional 4 4.0 4.0 90.0 retired and others 10 10.0 10.0 100.0 Total 100 100.0 100.0 occupation retired and others professional business man salaried govt employ salaried pvt employeAnalysis:The above table shows out of 100 respondents 16% of are govt employees, 57% of arepvt employees, 13% of respondents are businessmen’s, only 4% of respondents areprofessionals and 10% of respondents are retired and others.Interpretation:From the survey we came to know that most of the respondents are salaried privateemployee and the remaining are govt, professionals, and businessmen’s.Frequency 4 Babasabpatilfreepptmba.com 61
  • 62. A study of investment decisions of individual investor with regard to ULIPs income Cumulative Frequency Percent Valid Percent Percent Valid below 2,00,000 95 95.0 95.0 95.0 2,00,000-5,00,000 4 4.0 4.0 99.0 above 5,00,000 1 1.0 1.0 100.0 Total 100 100.0 100.0 income above 5,00,000 2,00,000-5,00,000 below 2,00,000Analysis:The above table indicates that out of 100 respondents 95% of respondents income levelis below 2,00,000 , 4% of respondents income level is between 2,00,000-5,00,000 andonly 1% of respondents income level is above 5,00,000.Interpretation:From the survey we came to know that most of the respondent’s income level is below200000 and only one respondent income level is greater than 500000. Babasabpatilfreepptmba.com 62
  • 63. A study of investment decisions of individual investor with regard to ULIPsFrequency 5 are you aware of unit linked insurance plans? Cumulative Frequency Percent Valid Percent Percent Valid yes 96 96.0 96.0 96.0 no 4 4.0 4.0 100.0 Total 100 100.0 100.0 are you aware of unit linked insurance plans? 120 100 80 60 40 Frequency 20 0 yes no are you aware of unit linked insurance plans?Analysis:The above table shows that out of 100 respondents 96% of respondents are aware ofULIP and 4% are not aware.Interpretation:From survey we came to know that awareness level of ULIP is more among therespondents and least respondents unaware. Babasabpatilfreepptmba.com 63
  • 64. A study of investment decisions of individual investor with regard to ULIPsFrequency 6 how are you made aware of about new ulips? Cumulative Frequency Percent Valid Percent Percent Valid 4 4.0 4.0 4.0 advertisement 38 38.0 38.0 42.0 family and friends 32 32.0 32.0 74.0 advisers 7 7.0 7.0 81.0 internet 19 19.0 19.0 100.0 Total 100 100.0 100.0 how are you made aware of about new ulips? 50 40 30 20 Frequency 10 0 advertisement advisers family and friends internet how are you made aware of about new ulips?Analysis:This above chart shows that 38% of the respondents aware of ULIP throughadvertisements. 32% of the respondents are getting awareness through family and friends,7% of the respondents are aware through advisers & 19% of the respondents are awarefrom the internet.Interpretation:From the survey we came to know that most of the respondents aware of ULIPs throughadvertisements Because of insurance co. are creating more awareness through Media’sex. Magazines, News papers & TV etc. and least percent of respondents gettingawareness through advisors. Babasabpatilfreepptmba.com 64
  • 65. A study of investment decisions of individual investor with regard to ULIPsFrequency 7 are you interested investing money on ulip? Cumulative Frequency Percent Valid Percent Percent Valid 4 4.0 4.0 4.0 yes 87 87.0 87.0 91.0 no 9 9.0 9.0 100.0 Total 100 100.0 100.0 are you interested investing money on ulip? 100 80 60 40 Frequency 20 0 yes no are you interested investing money on ulip?Analysis:This above chart shows that 87% of respondent’s interested investment in ULIP, 9% ofrespondents don’t want to invest in ULIP and 4% of the respondents not responded.Interpretation:From the survey we came to that most of the respondents are interested to invest themoney on ULIPs. And only least respondents not interested. Babasabpatilfreepptmba.com 65
  • 66. A study of investment decisions of individual investor with regard to ULIPsFrequency 8 where you want to invest your money? Cumulative Frequency Percent Valid Percent Percent Valid 4 4.0 4.0 4.0 icici pru 35 35.0 35.0 39.0 bajaj allianz 9 9.0 9.0 48.0 LIC 50 50.0 50.0 98.0 aviva life insurance 2 2.0 2.0 100.0 Total 100 100.0 100.0 where you want to invest your money? 60 50 40 30 20 Frequency 10 0 icici pru bajaj allianz LIC aviva lif e insurance where you want to invest your money?Analysis:The above table shows out of 100 respondents 50% respondents wants to invest in LIC,35% respondents wants to invest in ICICI PRU, 9 % in BAJAJ ALLIANZ, only 2% inAVIVA life and 4% are non respondents.Interpretation:From the survey we came to know that most of the respondents want to invest in LIC andrest are in the other co. Babasabpatilfreepptmba.com 66
  • 67. A study of investment decisions of individual investor with regard to ULIPsFrequency 9 what made you to go for that company? Cumulative Frequency Percent Valid Percent Percent Valid 4 4.0 4.0 4.0 brand name 37 37.0 37.0 41.0 service 18 18.0 18.0 59.0 customer relationship 30 30.0 30.0 89.0 better policy option 11 11.0 11.0 100.0 Total 100 100.0 100.0 what made you to go for that company? 40 30 20 10 Frequency 0 brand name customer relationshi service better policy option what made you to go for that company?Analysis:The above table shows that out of 100 respondents 37% of respondents wants invest inthe company for Brand name,18% respondents wants to invest for the service provided,30% wants to invest for the customer relationship the company maintains. 11% ofrespondents want to invest for the better policy options available, and 4% have notresponded.Interpretation: Babasabpatilfreepptmba.com 67
  • 68. A study of investment decisions of individual investor with regard to ULIPsFrom the survey we came to know that most of the respondents considering brand namewhile investing and least percent of respondents consider better policy option whileinvesting.Frequency 10 did you ever invested in icici pru? Cumulative Frequency Percent Valid Percent Percent Valid 4 4.0 4.0 4.0 yes 19 19.0 19.0 23.0 no 77 77.0 77.0 100.0 Total 100 100.0 100.0 did you ever invested in icici pru? 100 80 60 40 Frequency 20 0 yes no did you ever invested in icici pru?Analysis:The above table shows that out of 100 respondents 19 % of the respondents have investedin ICICI pru and 77 % respondents have not invested and 4% are not responded.Interpretation: Babasabpatilfreepptmba.com 68
  • 69. A study of investment decisions of individual investor with regard to ULIPsFrom the survey we came to know that most of the respondents have not invested ICICIpru and very least are invested in ICICI pru.Frequency 11 if yes then which policy do you own of icici pru? Cumulative Frequency Percent Valid Percent Percent Valid 81 81.0 81.0 81.0 savings solution 3 3.0 3.0 84.0 childrens solution 8 8.0 8.0 92.0 market linked solution 7 7.0 7.0 99.0 retirement solution 1 1.0 1.0 100.0 Total 100 100.0 100.0 if yes then which policy do you own of icici pru? 100 80 60 40 Frequency 20 0 savings solution market linked soluti childrens solution retirement solution if yes then which policy do you own of icici pru?Analysis:The above table shows 3% of respondent own savings solution policies, 8% ofrespondents own child solution policies, 7% of respondents own market linked solutions,only 1% of the respondent own retirement solution, and 81% not responded. Babasabpatilfreepptmba.com 69
  • 70. A study of investment decisions of individual investor with regard to ULIPsInterpretation:From the survey we came to know that most respondents own child plans and very leastare own retirement solutions.Frequency 12 how much is the premium? Cumulative Frequency Percent Valid Percent Percent Valid 81 81.0 81.0 81.0 below 12,000 4 4.0 4.0 85.0 12,000-19999 9 9.0 9.0 94.0 20,000-50,000 6 6.0 6.0 100.0 Total 100 100.0 100.0 how much is the premium? 100 80 60 40 Frequency 20 0 below 12,000 12,000-19999 20,000-50,000 how much is the premium?Analysis:In this chart we conclude that 4% of the respondents are invested below 12000. 9% haveinvested between 12000- 19999 and 6% have invested between 20000-50000. These allare high risk takers. 81% of the clients have not responded.Interpretation: Babasabpatilfreepptmba.com 70
  • 71. A study of investment decisions of individual investor with regard to ULIPsFrom the survey we came to know that most of the respondents are having the premiumsbetween 12000-19000. Least is having below 12000 premiums.Frequency 13 how would you rate the services of icici pru? Cumulative Frequency Percent Valid Percent Percent Valid 81 81.0 81.0 81.0 very good 5 5.0 5.0 86.0 good 12 12.0 12.0 98.0 average 1 1.0 1.0 99.0 very bad 1 1.0 1.0 100.0 Total 100 100.0 100.0 how would you rate the services of icici pru? 100 80 60 40 Frequency 20 0 very good good average very bad how would you rate the services of icici pru?Analysis:From the above table out of 100 respondents 5% of customer has rated ICICI PRU asvery good, 12% says good and 1% have rated as average, and only 1% rated very bad.81% not responded. Babasabpatilfreepptmba.com 71
  • 72. A study of investment decisions of individual investor with regard to ULIPsInterpretation:From the survey we came to know that most of respondents rated good for the serviceprovided by ICICI pru. And least respondents rated very bad.Frequency 14 how many members in your family have an icici pru policy? Cumulative Frequency Percent Valid Percent Percent Valid 81 81.0 81.0 81.0 everyone 7 7.0 7.0 88.0 employed individuals 5 5.0 5.0 93.0 only children 3 3.0 3.0 96.0 self 4 4.0 4.0 100.0 Total 100 100.0 100.0 how many members in your family have an icici pru policy? 100 80 60 40 Frequency 20 0 everyone only children employed individuals self how many members in your family have an icici pru policy?Analysis:From the above table 7% respondents say’s all are having the policies, 5% employedindividuals, 3% are only child policies, 4% say’s self and 81% have not responded.Interpretation: Babasabpatilfreepptmba.com 72
  • 73. A study of investment decisions of individual investor with regard to ULIPsFrom the survey we came to know that most respondents said all the family membershaving ICICI pru policies. And least is said having only child policies.Frequency 15 how would you rate the offers and promotional activities of icici pru? Cumulative Frequency Percent Valid Percent Percent Valid 81 81.0 81.0 81.0 very good 4 4.0 4.0 85.0 good 10 10.0 10.0 95.0 average 5 5.0 5.0 100.0 Total 100 100.0 100.0 how would you rate the offers and promotional activities of icici pru? 100 80 60 40 Frequency 20 0 very good good average how would you rate the offers and promotional activities of icici pru?Analysis:From the above table 4% respondents rated very good, 10% rated good, 5% as average,and 81% have not responded.Interpretation: Babasabpatilfreepptmba.com 73
  • 74. A study of investment decisions of individual investor with regard to ULIPsFrom the survey we came to know that most of the respondents rated good for the offersand promotional activities of ICICI pru.Frequency 16 how do you recognize ulip as investment avenue? Cumulative Frequency Percent Valid Percent Percent Valid 10 10.0 10.0 10.0 exelent 38 38.0 38.0 48.0 satisfactory 34 34.0 34.0 82.0 good 17 17.0 17.0 99.0 poor 1 1.0 1.0 100.0 Total 100 100.0 100.0 how do you recognize ulip as investment avenue? 50 40 30 20 Frequency 10 0 exelent satisfactory good poor how do you recognize ulip as investment avenue?Analysis:The above table shows that out of 100 respondents17% respondents recognize it as good,10% clients are not preferred, 34% satisfied and 38% clients recognize it as excellent and1% as poor.Interpretation: Babasabpatilfreepptmba.com 74
  • 75. A study of investment decisions of individual investor with regard to ULIPsIn order to know the customers, were asked how they recognize ULIP as investmentavenue. It was found that most of the respondents recognized excellent and only leasthave recognized as poor.Frequency 17 what factor do you consider while investing in ulip? Cumulative Frequency Percent Valid Percent Percent Valid 13 13.0 13.0 13.0 higher returns 28 28.0 28.0 41.0 liquidity 14 14.0 14.0 55.0 life cover 14 14.0 14.0 69.0 all the above 31 31.0 31.0 100.0 Total 100 100.0 100.0 what factor do you consider while investing in ulip? 40 30 20 10 Frequency 0 higher returns liquidity life cover all the above what factor do you consider while investing in ulip?Analysis:Here 28% of the respondents consider high returns, 14% of the respondents considerliquidity and life cover, and 31% of the respondent considers all above factor and 13%are not responded. Babasabpatilfreepptmba.com 75
  • 76. A study of investment decisions of individual investor with regard to ULIPsInterpretation:From the survey we came to know that most of the respondent considers higher returns,liquidity and life cover all together and least considers life cover factor while investing.Frequency 18 what is the reson for not investing? Cumulative Frequency Percent Valid Percent Percent Valid 19 19.0 19.0 19.0 uncertainty 26 26.0 26.0 45.0 high cost 27 27.0 27.0 72.0 not interested 21 21.0 21.0 93.0 in investment others 7 7.0 7.0 100.0 Total 100 100.0 100.0 what is the reson for not investing? 30 20 10 Frequency 0 uncertainty not interested in in high cost others what is the reson for not investing?Analysis:From the above table out of 100 respondents 26% of the respondents are uncertain toinvest. 27% of the respondents think it is high cost and 21% of them are not interested ininvestments, 7% of respondent says other and 19% are non respondents. Babasabpatilfreepptmba.com 76
  • 77. A study of investment decisions of individual investor with regard to ULIPsInterpretation:From the survey we came to know respondents thinks that ICICI charging high cost andleast are in the category of others.Frequency 19 according to you which ulip is most preferable for investing? Cumulative Frequency Percent Valid Percent Percent Valid 7 7.0 7.0 7.0 child plans 41 41.0 41.0 48.0 pension plans 47 47.0 47.0 95.0 health plans 4 4.0 4.0 99.0 ohers 1 1.0 1.0 100.0 Total 100 100.0 100.0 according to you which ulip is most preferable for investing? 50 40 30 20 Frequency 10 0 child plans health plans pension plans ohers according to you which ulip is most preferable for investing?Analysis:In this order 41% of the respondents preferred child plans, 47% preferred pension plans,4% preferred health plans, 1% say others and 7% are not responded.Interpretation: Babasabpatilfreepptmba.com 77
  • 78. A study of investment decisions of individual investor with regard to ULIPsFrom the survey we came to know that most of respondents preferred pension plans andleast have preferred others.Frequency 20 what was your experiance having investing in ulips? Cumulative Frequency Percent Valid Percent Percent Valid 81 81.0 81.0 81.0 gained profit 15 15.0 15.0 96.0 neither profit nor loss 4 4.0 4.0 100.0 Total 100 100.0 100.0 what was your experiance having investing in ulips? 100 80 60 40 Frequency 20 0 gained profit neither profit nor l what was your experiance having investing in ulips?Analysis:When customers were asked experience having invested in ULIP, it was found that 4%clients said that neither profit nor loss and 15% clients said profit. So it means that clientsare getting profit from investment. Finally it shows that ULIP is performing Good.Interpretation: Babasabpatilfreepptmba.com 78
  • 79. A study of investment decisions of individual investor with regard to ULIPsFrom survey we found that most of investors have gained profit and least of that gainedeither profit or loss.Frequency 21 what is your opinion upon current ulip performance? Cumulative Frequency Percent Valid Percent Percent Valid 11 11.0 11.0 11.0 exellent 29 29.0 29.0 40.0 good 56 56.0 56.0 96.0 better 4 4.0 4.0 100.0 Total 100 100.0 100.0 what is your opinion upon current ulip performance? 60 50 40 30 20 Frequency 10 0 exellent good better what is your opinion upon current ulip performance?Analysis:Here 4% of respondent agreed that its performing Better and 56% of respondent agreedthat its performing Good and 29% respondent said excellent respectively. And 11% arenot responded.Interpretation: Babasabpatilfreepptmba.com 79
  • 80. A study of investment decisions of individual investor with regard to ULIPsFrom the survey we came to know that most of the respondent opinion upon performanceof ULIP is good and least of that have the better opinion.Frequency 22 you allways take the help of a advisor while investing in ulips? Cumulative Frequency Percent Valid Percent Percent Valid 16 16.0 16.0 16.0 strongly agree 22 22.0 22.0 38.0 agree 43 43.0 43.0 81.0 iether agree nor disagre 10 10.0 10.0 91.0 disagree 7 7.0 7.0 98.0 strongly disagree 2 2.0 2.0 100.0 Total 100 100.0 100.0 you allways take the help of a advisor while investing in ulips? 50 40 30 20 Frequency 10 0 strongly agree iether agree nor dis strongly disagree agree disagree you allways take the help of a advisor while investing in ulips?Analysis: Babasabpatilfreepptmba.com 80
  • 81. A study of investment decisions of individual investor with regard to ULIPsFrom the above table 22% are strongly agree, 43% are agree with above, 10% says eitheragree nor disagree, 7% are disagree and only 2% are strongly disagree, 16% have notresponded.Interpretation:From survey we came to know most of the respondents agrees that they will take the helpof advisor while investing in ULIPs and least have strongly disagreed.Frequency 23 do you have any plan of investing in near future? Cumulative Frequency Percent Valid Percent Percent Valid 7 7.0 7.0 7.0 yes 60 60.0 60.0 67.0 no 33 33.0 33.0 100.0 Total 100 100.0 100.0 do you have any plan of investing in near future? 70 60 50 40 30 20 Frequency 10 0 yes no do you have any plan of investing in near future?Analysis:From the above table 60% of respondents plan to invest in ULIP and 33% do not plan toinvest, 7% have not responded. Babasabpatilfreepptmba.com 81
  • 82. A study of investment decisions of individual investor with regard to ULIPsInterpretation:From the survey we found most of the respondents planning to invest in near future andleast are not interested in investing in future.Frequency 24 when do you plan to invest? Cumulative Frequency Percent Valid Percent Percent Valid 36 36.0 36.0 36.0 right now 22 22.0 22.0 58.0 after one month 11 11.0 11.0 69.0 after six month 31 31.0 31.0 100.0 Total 100 100.0 100.0 when do you plan to invest? 40 30 20 10 Frequency 0 right now after one month after six month when do you plan to invest?Analysis:From the above table 22% of respondents plan to invest right now, 11% after a monthand 7% plan to invest after six months and 36% have not responded. Babasabpatilfreepptmba.com 82
  • 83. A study of investment decisions of individual investor with regard to ULIPsInterpretation:From the survey we found that most of the respondents investing after six months. Andleast is said after a month.Frequency 25 how likely are you to recommend investment in ulip to your friend? Cumulative Frequency Percent Valid Percent Percent Valid 6 6.0 6.0 6.0 definitely will recommend 78 78.0 78.0 84.0 might not recommend 16 16.0 16.0 100.0 Total 100 100.0 100.0 how likely are you to recommend investment in ulip to your friend? 100 80 60 40 Frequency 20 0 def initely w ill reco might not recommend how likely are you to recommend investment in ulip to your friend?Analysis: Babasabpatilfreepptmba.com 83
  • 84. A study of investment decisions of individual investor with regard to ULIPsThe above table indicates that 78 % of the respondents definitely will recommend aboutthe investment in ULIP. 16 % of the respondents might or might not recommend. 6%have not responded.Interpretation:From the survey we found that most will recommend to their friends least might notrecommend.FINDINGS • Most of the respondents are having below 2,00,000 income • Awareness level of ULIP is good among the respondents. • Most of the respondents aware of ULIP through advertisements. Because of insurance co. are creating more awareness through Media’s ex. Magazines, News papers & TV etc. rest of are getting awareness through family and friends. • Most of the respondents interested to investment in ULIP • Maximum respondents wants to invest in LIC • Most of respondents considers brand name while investing. • Maximum no of respondents have not invested in ICICI. • Most of the respondent invested in ICICI child plans. • Most of the customers have the premiums below 20,000 • Most of the respondents rated the service of ICICI as good • Most respondents say’s in there family all are having the ICICI policies • Most customers rated good for ICICI pru’s offers and promotional activities. • Maximum respondents recognize ULIP as investment Avenue • Most of the respondent considers all the factors like higher returns, liquidity and life cover. • Maximum respondents think ICICI charging high cost. • Most people preferred pension plan for investing. Babasabpatilfreepptmba.com 84
  • 85. A study of investment decisions of individual investor with regard to ULIPs • Most of customers gained profit by investing in ULIP. • Most of the respondent’s opinion upon current ULIP performance is good. • Maximum number of respondents said they take the help of advisor while investments. • Most of the respondents plan to invest in ULIP. • Maximum respondents plan to invest after six months. • Maximum respondents say’s they will definitely recommend about the investment in ULIP to his friends.SUGGESTIONS • Most of the peoples are middle class peoples so the new products have to be launched according to which that suits there income. • Most of the investors consider brand name so the ICICI should increase there service quality ex: post sale services, customer relationship. To continue as a leader in private insurance co. • Maximum number of people takes the help of advisor while investing in ULIP so the company has to provide proper training for the advisors to plan the investments according to the needs of the customers. • The insurance sector is still having the untapped market and LIC is the leader in the sector so the ICICI should have to take step forward to know what are the individual’s investment decisions, according to their perceptions, preferences and income levels. Babasabpatilfreepptmba.com 85
  • 86. A study of investment decisions of individual investor with regard to ULIPsCONCLUSIONThe study aimed at identifying investor decisions with regard to ULIPs, so I haveconcluded that majority of the respondents are satisfied with ULIPs performance and theyare having good investment decisions. Hence ICICI pru has great potential market inHUBLI to make an aware about ULIP’s.This study has basically helped to know how Unit Linked Insurance Plans are workingand how they differ. After comparing investment decisions of individuals it can beconcluded that most of investors go with the brand names and where there is low initialcharges are incurred. Babasabpatilfreepptmba.com 86
  • 87. A study of investment decisions of individual investor with regard to ULIPsANNEXURYQUESTIONNAIRESir/ Madam,Note: Please tick (√) in the appropriate box.Respondent profileNAME:ADDRESS:GENDER: Male FemaleAGE: 15-25 25-45 45-55 55-65OCCUPATION: Salaried Govt employee Salaried Pvt Employee Business man Professional Retired and others Babasabpatilfreepptmba.com 87
  • 88. A study of investment decisions of individual investor with regard to ULIPsINCOME (annual): Below Rs. 2, 00,000 Rs.200000 to Rs. 5, 00,000 Above Rs.5, 00,0001. Are you aware of unit linked insurance plan (ULIP)? a. Yes b. No2. How are you made aware of about new ULIPs? a. Advertisement b. Family & Friends c. advisors d. Internet3. Are you interested investing money on unit-linked insurance plan a. Yes b. no (if no, go to Q. 6)4. Where you want to invest your money? a. ICICI prudential b. Bajaj Allianz c. LIC d. Aviva Life insurance e. Others………………………….5. What made you to go for that company? a. Brand Name b. service c. Customer relationship d. Better policy option e. Others (specify)6. If no Give reason……………………………………………………………….7. Did you ever invested in ICICI PRUDENTIAL life Insurance? (If no go to Q.15) a. Yes b. No8. If ‘yes’, then which policy do you own of ICICI pru? a. Savings solution b. Protection solution c. Children solution d. Marked-linked solution e. Retirement solution9. How much is the premium….? Babasabpatilfreepptmba.com 88
  • 89. A study of investment decisions of individual investor with regard to ULIPs a. below 12,000 b. 12000 to 20000 c. 20000 to 50000 d. more than 5000010. How would you rate the services of ICICI prudential life insurance? Very good good average bad very bad11. How many members in your family have an ICICI Prudential life insurance policy? a. Everyone b. Employed individuals c. Only children d. Self12. How would you rate the offers and promotional activities of ICICI pru? Very good good average bad very bad13. How do you recognize ULIP as Investment Avenue? a. Excellent b. satisfactory c. Good d. Poor14. What factor do you consider while investing in ULIP? a. Higher Returns b. Liquidity c. Life covers d. All the above15. What is the reason for not investing? a. Uncertainty b. High cost c. Not interested in investment d. Others16. According to you which ULIP is most preferable for investing? a. child plans b. pension plans c. health plans d. Other specify…………………………17. What was your experience having investing in ULIPs? a. Gained profit b. Neither profit nor loss c. Gained loss18. What is your opinion upon current ULIP performance? a. Excellent b. Good c. Better d. Poor Babasabpatilfreepptmba.com 89
  • 90. A study of investment decisions of individual investor with regard to ULIPs19. You always take the help of a advisor while investing in ULIPs. Strongly agree agree either agree/nor disagree disagree strongly disagree20. Do you have any plan of investing in near future? (If no go to Q. 22) a. Yes b. No21. When do you plan to invest? a. right now b. after one month c. After six months22. How likely are you to recommend investment in ULIP to your friend? a. Definitely will recommend b. Might not recommends Babasabpatilfreepptmba.com 90
  • 91. A study of investment decisions of individual investor with regard to ULIPsBIBLIOGRAPHY ♦ WWW.iciciprulife.com ♦ WWW.google.com ♦ WWW.icicidirect.com ♦ Business magazines ♦ Product broachers. Babasabpatilfreepptmba.com 91