Your SlideShare is downloading. ×
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
A project report on comparitive study of unit linked policies and its market research
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

A project report on comparitive study of unit linked policies and its market research

2,028

Published on

A project report on comparitive study of unit linked policies and its market research

A project report on comparitive study of unit linked policies and its market research

Published in: Business, Economy & Finance
2 Comments
2 Likes
Statistics
Notes
No Downloads
Views
Total Views
2,028
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
194
Comments
2
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH CONTENTS PART I 1. Industry overview 1 2. Company profile 15 3. Comparison study 21PART II 1. Research methodology 27 Problem definition Objectives Sample profile Sample size Sampling technique Data collection procedure Data analysis technique Limitations of the survey Scope of the project 2. Findings 32 3. Analysis 39 Respondents in general Respondents whose income is more than Rs 3,00,000 Respondents who knows about Unit Linked Policy 4. Suggestions 57 5. Conclusions 60 6. Bibliography 62 7. Appendix 64BABASAB PATIL PROJECT REPORT ON MARKETING Page 1
  • 2. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHEXECUTIVE SUMMARY After privatization and liberalization in 1991,private sector is growing very fastacross wide spectrum of Indian economy. A major part of such liberalization process isfinance sector. That is also applicable to Insurance Industry. Large number of multinationalcompanies in collaboration with the Indian companies is competing with the strong LIC. At the same time bank rates are going down. So investors are going foralternatives. They are investing in market for good returns. This report titled Comparison study of unit linked policies and its market researchcontains detail study of unit-linked policies and comparison unit linked schemes ofdifferent companies and also their market potential in Bangalore city. The main object behind taking this project is to find outstanding terms andconditions of different companies who issue unit linked policies and market potential forunit linked policies. At the same time we are interested to know 1. Whether people are aware about unit linked policies or not? 2. What factor they are consider while purchasing unit linked policy? 3. What is their expectation from unit linked policy? 4. How much they want to invest in Life Insurance? 5. In which type of fund they prefer to invest.? Based on this an appropriate questionnaire was prepared. Data was collectedthrough market survey . The data is analyzed using code sheet, percentages, averages,sums and weightages .BABASAB PATIL PROJECT REPORT ON MARKETING Page 2
  • 3. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHFindings 1. 96% of the people know about life insurance and 18% know about unit linked policy 2. Responded people ranked LIC as first, ICICI as second and Allianz Bajaj as third 3. Most people want to invest in Life insurance in the range of Rs 300000 to Rs 500000 4. The Responded people mostly want to invest in balanced fund. Above study shows that awareness of Allianz Bajaj is very low.But there is a potential market for unit-linked policies. So ALBJ should come up withsome salient features to tap the market. They should come up with some special offerslike giving bonus or fixing some minimum guarantee amount.BABASAB PATIL PROJECT REPORT ON MARKETING Page 3
  • 4. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHBACKGROUNDBABASAB PATIL PROJECT REPORT ON MARKETING Page 4
  • 5. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH AN INTRODUCTION: The insurance industry in India is evolving and assuming different proportions since it was privatized. There was a time when only traditional insurance products used to dominate the arena, but with innovation coming into play, unit- linked/market-linked products have also found a place. It is worth mentioning here that world over unit-linked productsconstitute quite a substantial chunk of the total portfolio of insurance companies. The emergence of unit-linked insurance policies combines thecharacteristics of both endowment insurance policies and mutual funds. With fallinginterest rates questioning the economics of traditional products, most insurers arelaunching unit-linked policies. In the developed market, products more in common with mutualfunds have overtaken traditional life insurance products. Customers too are looking forproducts that give stability of returns in the long run and total protection. In India, Birla Sun Life, ICICI Prudential, Allianz Bajaj, LIC arethe some life insurance companies dealing in unit-linked insurance products.BABASAB PATIL PROJECT REPORT ON MARKETING Page 5
  • 6. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHHOW THE UNIT LINKED PLAN WORKS? Unit linked plans combines the protection of life insurance andbenefits of mutual fund .The main reason for increasing interest towards unit linked plansis that they allow you to earn more return on your investment in this declining interestscenario, and at the same time offer financial protection to your family in unfortunateevent of your death. They also allow you the flexibility of withdrawing or surrenderingyour unit wholly or partially to meet any contingency like your children’s educationmarriage, etc. Unit linked plans come in the form of units where the premiumpaid by you is used to buy units and an investment fund is allotted to you. Most of thecompanies offer two or more options to you with regard to the fund. The choice of thefund allows you to determine as to how much premium paid by you should be investedand in which financial instrument. The performance of the fund depends upon the currentvalue of units in the market. For e.g. if current value of unit is Rs 10/- and you pay annualpremium of Rs 10000/-, than the number of units you buy with this premium is 1000units. If the market is bullish and the value of a unit become Rs 13 /- then you cansurrender the units for a profit.BABASAB PATIL PROJECT REPORT ON MARKETING Page 6
  • 7. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH According to the IRDA, a company offering unit linked plans mustgive the investor an option to choose among debt, balanced and equity funds. If you opt for a unit-linked endowment policy, you can choose toinvest your premiums in debt, balanced or equity funds. If you choose a debt fund, themajority of your premiums will get invested in debt securities like gilts and bonds. If you choose equity, then a major portion of your premiums willbe invested in the equity market. The type of fund you choose would depend on your riskprofile and your investment need. In case of death during the premium paying term or the term of thepolicy, the sum assured, or value of policy fund, whichever is higher, is paid to thebeneficiaries. In case of survival up to maturity, the value of the fund is paid out.Therefore, the risk here is transferred to the policyholder and nothing is guaranteed. So, ifthe fund value falls below the amount invested, the policyholder will receive a loweramount. Taking a closer look at charges and feesone comes to knows that,there is an initial administrative charge deducted every month from units. This could bevery high, around 15% per annum in the first year, around 7% p a in the second andaround 2-3% p a thereafter. Suppose you buy a policy wherein the annual premium works outto Rs 10,000, in the first year, Rs 1,500 would be deducted towards administrativecharges, Rs 700 in the second year and around Rs 300 from the third year. These ratesvary from company to company but are more or less in this range.BABASAB PATIL PROJECT REPORT ON MARKETING Page 7
  • 8. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH There is an investment management charge too, which would varyaccording to the fund selected; for instance, an equity fund would attract a higherinvestment management fee of around 1% p a compared with a debt fund that mightattract a fee of 0.25%. So continuing with the same example, a sum of Rs 100 would bededucted from the annual premium if an equity fund is opted for. Next, companies chargean annual administration charge. In case of some companies this charge is a flat rate, say,Rs 20 per month. In the case of others, this charge is again a percentage of net assets foreach fund. Finally, there is a deduction for risk cover. This goes towardscontribution to the sum assured or the life insurance cover. It is based on mortality ratesas calculated by actuaries. For comprehensively summarising our example, we willassume the age of the male policyholder to be 30 years and sum assured Rs 1,00,000. Of a total premium of Rs 10,000 paid in the first year, Rs 1,500 isdeducted towards initial administration fees, Rs 100 towards investment managementfees (assuming the fund opted for is equity) and Rs 240 towards annual administrationfees. That leaves a balance of Rs 8,160 in the first year. Out of this, Rs169 would be deducted towards risk cover. Hence, finally Rs 7,991 would be invested inthe fund. In the second year, the figure would stand at Rs 8,791 and third year onwards,around Rs 9,191 for the term of the policy. So, every time you make your premiumpayment, only a part of it is actually invested in the fund of your choice.BABASAB PATIL PROJECT REPORT ON MARKETING Page 8
  • 9. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHCombination of mutual fund and insurance cover: Unit-linked plans are a combination of an investment fund and aninsurance policy. A major part of the premium amount received on such policies isinvested in the stock market by the insurer in select funds depending on the risk levelchosen by the customer. Mind you, this is after deducting administration charges andmanagement expenses that may vary from one fund to the other.Choice of Funds:The customer has the option of choosing from debt, balance and equity funds. If theindividual chooses a debt fund, a major part of his premia is invested in debt securitieslike gilts and bonds. But if it is equity, a major portion goes towards investments in thestock market. So depending on the risk profile the individual may choose his investmentoption.Survival Benefits:As regards survival benefits the fund value as on that date is paid to the individual.Death Benefits:In case of death the individual is paid higher of the sum assured or the fund valuestanding to his account.Fund Value:The fund value is the value of your investment as on a given date. This is influenced bythe ups and downs in the sensex.So Fund Value = Unit Price x Number of UnitsBABASAB PATIL PROJECT REPORT ON MARKETING Page 9
  • 10. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHSwitching between Funds:The advantage one gets in case of a unit linked fund is that the working is similar to amutual fund. One can ship out of a fund if he feels its performance is not up to the mark.Companies allow certain number of free switches in a year. For any more switches onemay have to pay.Risk Element: On the face of it investment in unit-linked plans are not entirely safe. Anelement of risk is definitely in the hands of the individual. An individual choosing to parkhis funds in equities stands to gain or lose depending on the bull run in the stock market.When the market is buoyant he stands to gain handsomely but on the other hand he maylose heavily when it tanks out. Unit-linked insurance plans are all of a sudden much talked about,publicized and sold. While these are not a recent phenomenon, since a number ofinsurance companies already had these products as a part of their portfolio, of late theseplans have seen sudden frenzy. It is perhaps the bull phase or the lure of market-linked returns thatinsurance companies have been shouting hoarse about that is responsible for theseproducts outselling others. While this is not to dissuade from purchasing unit linked covers it wouldbe once own interest to take a peek at the ‘market linked returns’ you can expect. And ifyou think that the entire premium you pay is invested in avenues chosen by you toBABASAB PATIL PROJECT REPORT ON MARKETING Page 10
  • 11. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHmaximize returns you could be wrong.Expenses during the first year: The insurance company towards various charges reducing the investableamount considerably deducts a substantial amount from your premium income. In thefirst year Allianz Bajaj through its Unit Gain SP Plus claims to allocate 100 percent ofthe single premium you invest but cancels units on a monthly basis towards variouscharges from your fund. Accordingly Kotak Safe Investment Plan allocates 86 percent andLifeTime of ICICI Pru Life allocates 80 percent for amounts less than Rs 50,000 and 82percent for those above Rs 50,000 towards investments.Administration expenses: The fund expense is the highest in the first year. ICICI Pru Life chargesadministration expenses of 20 percent of the premium for amounts below Rs 50,000 and18 percent for amounts over Rs 50,000 in the first year while it is 7 percent for amountsupto Rs 20,000 in case of Kotak Safe Investment plan. Again there are annual administrative charges that are as high as 1.25percent per annum of net assets on Life Link of ICICI Pru Life and on Unit Gain SP Plusof Allianz Bajaj Life Insurance.Mortality charges:While the annual administrative charges stand at 1.25 percent of net assets for ICICI PruLife and Allianz Bajaj Life Insurance the differences in mortality charges is quite a bit.ICICI Pru Life charges 1.48 per thousand of sum assured at age 30 while Allianz Bajajcharges 1.29 at age 31.BABASAB PATIL PROJECT REPORT ON MARKETING Page 11
  • 12. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHSwitching: Now what if you plan to switch from one fund to the other. ICICI Pru Lifeoffers only one free switch every year and charges a switching fee of 1 percent for extraswitches. In contrast Allianz Bajaj offers three switches free with subsequent switchescharged at the rate of 1% of switch amount or Rs 100 which ever is higher while withOM Kotak’s Safe Investment plan you can switch any number of times at no extra cost. Besides there are fund management charges that varies depending on thetype of fund you choose to park your funds. OM Kotak charges 0.6 percent if you chooseto invest in money market funds, on gilt funds it is 1 percent, on balanced funds it is 1.3percent and on growth funds it is 1.5 percent.Transaction costs: Also Allianz Bajaj charges transaction costs at 0.5 percent but notexceeding 0.7 percent of the equity investment while it is 0.1 percent not exceeding 0.2percent of the debt investments. Moreover, there exist underwriting charges on the basisof the age of the individual. Know that when you buy unit-linked insurance products, a major part ofthe risk is transferred to you from the insurance company. Unit linked risk products maynot be a good investment option when taken into account the high costs and the riskassociated with volatile markets. These products will entail regular monitoring since they are market linkedand may perhaps be a good bet when the market is at a peak but if the market bottoms outyou may lose heavily. So know that you are playing with your risk cover.BABASAB PATIL PROJECT REPORT ON MARKETING Page 12
  • 13. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHUnit-linked vs. traditional insurance products. While in a unit-linked insurance product part of the premium paidby the policyholder goes towards administrative and mortality charges (that provides lifecover) and the balance into an investment account, in a traditional policy (with or withoutprofit policy), the premiums are put in a common fund, part of which is invested and partgoes into paying for the risk cover. However, the entire profit from investment is not declared asbonus in a traditional policy. Some is held back by the insurance company to buildreserves to pay end bonus and other returns. Also, there is a chance of using the money to cross-subsidise otherproducts i.e. paying more returns towards single premium products. The performance ofthe investible portion of premium in a unit-linked scheme is monitored in the form ofmutual fund units. Unit-linked insurance products allow policyholders to define theirunderlying investment with choices varying from a conservative to an aggressive option. In effect, a customer can create his/her own personal investmentplan backed by an insurance policy with at least a minimum guaranteed return, in somecases. On the contrary, a traditional policyholder has to rely on the investment manager.BABASAB PATIL PROJECT REPORT ON MARKETING Page 13
  • 14. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Besides, unit-linked products offer benefits like transparency,liquidity and flexibility. The insured has the flexibility of changing the investment optionafter completing one policy year taking advantage of market movements to planinvestments and earn returns, giving him complete control of his funds. Thus, in a scenario when the equity market is not performing well,a policyholder with high exposure to equities can switch to the option, which has a highproportion of fixed income instruments. Above all, as in the case of other insurance products, the premiumsare taxing deductible and the benefits i.e. the maturity benefit, withdrawal, surrender anddeath benefits are all tax-free.Mode of premium payment: Paying single premium or regular premium in the form of yearly/half yearly, quarterly and monthly installment and premium paid by you is used to buyunits. Hence unit linked policies multiply your profits and brings you thereturn and liquidity of the stock market and the safety of the insurance at the same time.BABASAB PATIL PROJECT REPORT ON MARKETING Page 14
  • 15. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHAllianz Bajaj Life Insurance Company Limited Allianz Bajaj Life Insurance Co. Ltd. is a joint venture betweentwo leading conglomerates- Allianz AG, one of the worlds largest insurance companies,and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Allianz AG with over 110 years of experience in over 70 countriesand Bajaj Auto, trusted for over 55 years in the Indian market, together are committed tooffering you financial solutions that provide all the security needed for once family andoneself Allianz Bajaj Life Insurance • Is the fastest growing private life • Insurance company in India • Currently has over Rs 3,00,000 p.a. satisfied customers • Is backed by a network of 68 Customer Care Centers spanning 55 locations across the country • One of Indias leading private life insurance companiesBABASAB PATIL PROJECT REPORT ON MARKETING Page 15
  • 16. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH COMPANY PROFILE Allianz Group Allianz Group is one of the worlds leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich. Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of• Property and Casualty Insurance,• Life and Health Insurance,• Asset Management and Banking. ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE• Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr.• 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. - AUM of Rs.51, 96,959 cr.• 12th largest corporation in the world BABASAB PATIL PROJECT REPORT ON MARKETING Page 16
  • 17. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH• 49.8 % of global business from Life Insurance• Established in 1890, 110 yrs of Insurance expertise• 70 countries, 173,750 employees worldwideBajaj Group Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is thelargest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. A household name in India, Bajaj Auto has a strong brand image & brandloyalty synonymous with quality & customer focus.A STRONG INDIAN BRAND- HAMARA BAJAJ • One of the largest 2 & 3 wheeler manufacturer in the world • 21 million+ vehicles on the roads across the globe • Managing funds of over Rs 4000 cr. • Bajaj Auto finance one of the largest auto finance cos. in India • Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03 • It has joined hands with Allianz to provide the Indian consumers with a distinct. Option in terms of life insurance productsBABASAB PATIL PROJECT REPORT ON MARKETING Page 17
  • 18. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH • As a promoter of Allianz Bajaj Life Insurance Co. Ltd., Bajaj Auto has the following to offer - Financial strength and stability to support the Insurance Business • A strong brand-equity. • A good market reputation as a world-class organization. • An extensive distribution network. • Adequate experience of running a large organization.Shared VisionA household name in India teams up with a global conglomerate... Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajajgroup is the largest manufacturer of two-wheelers and three-wheelers in India and one ofthe largest in the world. A household name in India, Bajaj Auto has a strong brand image& brand loyalty synonymous with quality & customer focus. With over 15,000employees, the company is a Rs. 4000 crore auto giant, is the largest 2/3-wheelermanufacturer in India and the 4th largest in the world. AAA rated by Crisil, Bajaj Autohas been in operation for over 55 years. It has joined hands with Allianz to provide theIndian consumers with a distinct option in terms of life insurance products. As a promoter of Allianz Bajaj Life Insurance Co. Ltd., BajajAuto has the following to offerBABASAB PATIL PROJECT REPORT ON MARKETING Page 18
  • 19. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH• Financial strength and stability to support the Insurance Business.• A strong brand-equity.• A good market reputation as a world class organization.• An extensive distribution network.• Adequate experience of running a large organization.• A 10 million strong base of retail customers using Bajaj products.• Advanced Information Technology in extensive use.• Experience in the financial services industry through Bajaj Auto Finance LtdBOARD OF DIRECTORS OF ALLIANZ BAJAJ ARE 1. Rahul Bajaj 2. Niraj Bajaj 3. Sanjivnayan Bajaj 4. Ranjit Gupta 5. Govind Prasad Laddha 6. J.Shridhar 7. Bajaj Auto Limited 8. Dr Wemer Zedelius 9. Heinz Dollberg 10. Don Nguyen 11. Alan WilsonBABASAB PATIL PROJECT REPORT ON MARKETING Page 19
  • 20. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHAllianz Bajaj brings several innovative products, the details of which as followes ALLIANZ BAJAJ’S PRODUCTSIndividual Plans  UNITGAIN A Unit Linked Plan  UNITGAIN SP A Single Premium Unit Linked Plan  INVESTGAIN An Endowment Plan  CHILDGAIN Childrens Policy  CASHGAIN Money Back Plan  SWARNA VISHRANTI Retirement PlanBABASAB PATIL PROJECT REPORT ON MARKETING Page 20
  • 21. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH  RISK CARE Pure Term Plan  TERM CARE Term Plan with Return-of-Premium  LIFETIME CARE Whole Life Plan  SAVE CARE ECONOMY SP Single Premium Endowment Plan  LOAN PROTECTOR A Mortgage Reducing Term Insurance Plan  KEYMAN INSURANCE A Promising Business Opportunity . Group Plans  GROUP CREDIT CARE Available for Employer - Employee Groups and Non Employer-Employee Groups  GROUP TERM LIFE Available for Employer - Employee Groups and Non Employer-Employee Groups  GROUP TERM LIFE SCHEME in lieu of EDLI (Employees Deposit Linked Insurance)BABASAB PATIL PROJECT REPORT ON MARKETING Page 21
  • 22. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHBABASAB PATIL PROJECT REPORT ON MARKETING Page 22
  • 23. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHCOMPARISON STATEMENTParticulars Allianz Bajaj Birla sun life ICICI LIC1) Types of a) Unit Gain a) Flexi Save Plus a) Lifetime a) Life Timepolicy b) Unit Gain SP Endowment Plan b) Life link b) Life Time SPIssued b) Flexi cash flow money back Plan c) Flexi Life Line Plan2) From 1year to 60 From 30 days to From 0year to From 12 years toEligibility years 65 years 60 years 55 years3)Minimum Rs 10,000 regular 50,000 for minor 18,000 p.a. or 5,000regularpremium Rs 25,000 single 75,000 for adults 9,000 for half 20,000 singleamount premium yearly and 1,500( in Rs) for monthly.4) Term of Death or low balance As per policy term At the age of 10 yearsthe Plan whichever is first 5,10,15,20,25or30 100 or as per maturity age 15,20,25,30or 35years for minor & 60,65,70,80 for adult5) Premium Yearly, Half yearly, Yearly, Half Yearly, Half Yearly, Halfpayment Quarterly and Single yearly, yearly, and yearly,frequency premium Quarterly and Monthly Quarterly and [Monthly –with salary Single premium Single premium deduction scheme.] [Monthly –with salary deduction scheme.]BABASAB PATIL PROJECT REPORT ON MARKETING Page 23
  • 24. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH6) Maturity Total value of that Total value of that Total value of Bid value of thebenefit you hold in fund you hold in fund that you hold in fund along with /funds /funds fund /funds maturity bonus at 5% of sum assured.7) Death Sum assured chosen Face amount + Sum assured -Death in 1stbenefit or value of units Policy fund chosen or value 6months –30% of Whichever is higher of units S.A+fund value Whichever is -Death in 2nd half higher of 1st year –60% of S.A + fund value -1st year & above S.A + fund Value -On 10th year 5% bonus of SA + bid value of fund```8) Free Three free switches One free switch One free switch Twice during theswitches every year. every year. every year. term of plan.BABASAB PATIL PROJECT REPORT ON MARKETING Page 24
  • 25. 9)Minimum For Single Premium Amount For Singleand Min=1.01 time the SP chosen by PremCOMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHmaximum Max=Y time the SP the customer iumSum Where Y as per following table Min =RsAssured A 0- 31- 36- 41- 46- 20,000 g 30 35 40 45 60 Max =Rs e Y 45 40 25 15 5 10,00,000 For Regular Premium Min=5 time AP For Regular Max=Y time the AP Prem Where Y as per following table ium A 0- 31 36- 41- 46- 56 Min =Rs g 3 - 40 45 55 60 50,000 e 0 35 Y 1 10 75 55 30 20 Max =Rs 2 5 10,00,000 510) Cash You may withdraw money any You may You may After ‘3’withdrawal time after ‘3’ full years withdraw withdraw yearsoption money any money any time the time after after ‘3’ full polic ‘4’full years years y hold er can withdraw max of 50%.11)Investm • Equity Fund • Protector • Maximiser • Securedent option • Balanced fund • Builder • Protector fund • Debt fund • Enhancer • Balancer • Balance • Cash fund d fundBABASAB PATIL PROJECT REPORT ON MARKETING Page 25 • Risk fund
  • 26. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH The fund value is always depend upon the market condition. On the total premium the deductions are • Allocation charges • Other charges ALLOCATION RATES Allianz Bajaj Birla Sunlife ICICI Om Kotak Yearly Cumulati Comm Yearly Cumul Comm Yearly Cumul Co Yearly Cumulati Commiss Alloca ve ission Alloca ative ission Alloca ative mm Alloca ve ion tion Allocatio (%) tion Alloca (%) tion Alloca issi tion Allocatio (%) (%) n (%) (%) tion (%) tion on (%) n(%) (%) (%) (%)Year 1 30 30 40 35 35 35 80 80 8 86 86 10Year 2 98 128 5 96.5 127.5 5 92.5 172.5 5 86.5 182.5 3.50Year 3 99 227 5 95 222.5 5 96 268.5 3 86.5 279 3.50Year 4 100 327 5 95 317.5 5 96 364.5 2 86.5 375.5 3.50Year 5 100 427 5 95 412.5 5 96 460.5 2 86.5 472 3.50Year 6 100 527 5 95 507.5 5 96 556.5 2 86.5 568.5 3.50Year 7 100 627 5 95 602.5 5 96 652.5 2 86.5 665 3.50Year 8 100 727 5 95 697.5 5 96 748.5 2 86.5 761.5 3.50Year 9 100 827 5 95 792.5 5 96 844.5 2 86.5 858 3.50Year 10 100 927 5 95 887.5 5 96 940.5 2 86.5 954.5 3.50Year 11 100 1027 5 95 982.5 5 96 1036.5 2 86.5 1051 3.50Year 12 100 1127 5 95 1077.5 5 96 1132.5 2 86.5 1147.5 3.50Year 13 100 1227 5 95 1172.5 5 96 1228.5 2 86.5 1244 3.50Year 14 100 1327 5 95 1267.5 5 96 1324.5 2 86.5 1340.5 3.50Year 15 100 1427 5 95 1362.5 5 96 1420.5 2 86.5 1437 3.50Year 16 100 1527 5 95 1457.5 5 96 1516.5 2 86.5 1533.5 3.50Year 17 100 1627 5 95 1552.5 5 96 1612.5 2 86.5 1630 3.50Year 18 100 1727 5 95 1647.5 5 96 1708.5 2 86.5 1726.5 3.50Year 19 100 1827 5 95 1742.5 5 96 1804.5 2 86.5 1823 3.50Year 20 100 1927 5 95 1837.5 5 96 1900.5 2 86.5 1919.5 3.50Average 1927/20 1837.5 1900.5 1919.5/2allocati = /20 /20 0on per 96.35% =92% =95% =96%year Non allocated amount BABASAB PATIL PROJECT REPORT ON MARKETING Page 26
  • 27. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Particulars Allanz Bajaj Birla Sunlife ICICI Om Kotak Year 1 70% 65% 20% 16% Year 2 2% 7.5% 7.5% 3.5% Year3 1% 5% 4% 3.5% Year4 5% 4% 3.5% Year5 5% 4% 3.5% Year6 5% 4% 3.5% Year7 5% 4% 3.5% Year8 5% 4% 3.5% Year9 5% 4% 3.5% Year10 5% 4% 3.5% Non allocation charge(cumulative) 73% 112.5% 59.5 47.5 In the long run say 20 years, the non allocation will be Particulars Allanz Birla Sunlife ICICI Om Kotak Bajaj Non allocation 73% 162.5% 99.5% 82.5% Charges(cumulative) Average non allocation per year 3.65% 8.125% 5% 4.125% will beBABASAB PATIL PROJECT REPORT ON MARKETING Page 27
  • 28. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH The main determinant of how policy operates is allocation of fund and growth rate of the company. The growth rates are available in the newspaper. However, some insurers do guarantee a part of the return. Birla, forinstance, guarantees a minimum return of 6% in case of Protector option, 4.5% in Builderand 3% in Enhancer. Birla, as of November 2003 has declared, since inception, a returnof 13.55 % on Protector, 18.23% on Builder and 25.61% on Enhancer.BABASAB PATIL PROJECT REPORT ON MARKETING Page 28
  • 29. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH RESEARCHMETHODOLOGY RESEARCH METHODOLOGYBABASAB PATIL PROJECT REPORT ON MARKETING Page 29
  • 30. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH PROBLEM DEFINITION ` In the market, bank interest rates are coming down and peoplesprefer other investment avenues like mutual funds. The main focus of this project is toknow about unit-linked policy ( combination of mutual fund and life coverage), how thisplan works in the market and how people consider its attributes and factors. OBJECTIVE The main objective of the research is to find potential market forthe unit linked plans in Bangalore city. SUB OBJECTIVES 1. To know potential market for life insurance. 2. To know awareness of different insurance companies. 3. To know which attributes people consider most important. 4. To know what factor people consider while purchasing unit linked policy. 5. To know the investment criteria 6. To know in which range people want to invest. Keeping above objective in mind a questionnaire was designed andfield survey conducted in Bangalore city. SAMPLE PROFILEBABASAB PATIL PROJECT REPORT ON MARKETING Page 30
  • 31. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Businessmen, Employees and other are population for this project.Efforts were made to get the respondents with income of Rs 3,00,000 & more. Samplingunits are taken from the Bangalore city. SAMPLE SIZE Sample size was 100 in Bangalore city SAMPLING TECHNIQUE Samples were chosen from different areas of Bangalore i.e. Jayanagar, M GRoad, Corporation area, Electronics city and tried to maintain 1:1:1 ratio of businessman,employees and other among the respondentsDATA COLLECTION PROCEDURE Data collection for unit linked policy • Secondary data collected from following source 1. Literature from Allianz Bajaj office 2. Articles from Economictimes 3. Article from Insurance Cover • Primary data was collected through field survey by framing the questionnaire DATA ANALYSIS TECHNIQUEBABASAB PATIL PROJECT REPORT ON MARKETING Page 31
  • 32. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH The data collected was consolidated, the sum average wascalculated. Various charts were prepared which helped to analyze the data better .Dataanalysis involved converting of recorded observation in to descriptive statement. LIMITATION OF THE STUDY 1. The findings are relevant only to Bangalore city , however a generalized view can be applicable to cities with similar characteristics. 2. Since the sampling technique was random, the finding might not give an accurate picture. 3. Since the time and cost were the a constraints, result may not be accurate, as surveyor could not survey the entire customer and potential investors. 4. Some of the customers could not give an accurate response to some of the questionsSCOPE OF THE STUDYBABASAB PATIL PROJECT REPORT ON MARKETING Page 32
  • 33. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHThe project includes 1. Study of unit linked policy. 2. The eligibility criteria of the applicant 3. Brief idea about the company called Allianz Bajaj life insurance company limited. 4. Comparison study of different unit inked policies of different companies 5. Terms and conditions of different companies unit linked policies 6. Different types of policies issued by Allianz BajajBABASAB PATIL PROJECT REPORT ON MARKETING Page 33
  • 34. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHFINDINGS Findings:BABASAB PATIL PROJECT REPORT ON MARKETING Page 34
  • 35. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 1) Have you bought any Insurance policy/ know about unit linked policy? Awareness of life insurance 4% know insurance policy don’t know 96% insurance policy Awareness of unitlinked policy 18% know unit linked policy don’t know unit 82% linked policy 2) Rank the Insurance companies you are aware of?BABASAB PATIL PROJECT REPORT ON MARKETING Page 35
  • 36. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Respondents ranked life insurance companies as below Ranking of Insurance Companies based on composite score 35 30 composite score 25 20 15 10 5 0 I G C a j if e IC ja iv LI AI IC Ba nl Av ta Su nz Ta rla lia Name of companies Bi Al The ranking is 1. Life Insurance Corporation 2. ICICI 3. Allianz Bajaj Life Insurance Company Limited 4. Tata AIG Life Insurance Company Limited 5. Aviva Life Insurance Company LimitedBABASAB PATIL PROJECT REPORT ON MARKETING Page 36
  • 37. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 3) Have you bought any unit linked policy? Out of 100 samples only 2 people bought unit linked policy. Percentage of respondents who have bought unit linked policy 120 100 80 60 40 20 0 Bought unit linked Doesn’t bought policy unitlinked policyBABASAB PATIL PROJECT REPORT ON MARKETING Page 37
  • 38. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 4) Are you interested in buying unit linked policy? Percentage of respondents who are intereste to buy unit linked policy 100 90 80 70 60 50 40 30 20 10 0 Interested to buy Not interested to unit linked policy buy unit linked policyBABASAB PATIL PROJECT REPORT ON MARKETING Page 38
  • 39. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 5)Rank the below attributes do you consider while purchasing? Consideration of attributes Charges Creation of levied estate 9% 16% Saving component 15% Life coverage 16% Maturity benefits 15% Mode of Withdraw al paying benefits premium 15% 14%BABASAB PATIL PROJECT REPORT ON MARKETING Page 39
  • 40. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 6) Rank the factors do you consider while purchasing Life Insurance/Unit Linked policy? Consideration of factors while buying Life Insurance Market Brand image condition 14% 18% Relatives&frien Risk factor ds 19% 12% Age 18% Income 19% 7) How much do you want to invest?BABASAB PATIL PROJECT REPORT ON MARKETING Page 40
  • 41. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Respondents interest of investment in percentage(In Rs p.a) Above 5 Lakhs Above 1Lakh 14% 20% 3 Lakhs - 5Lakhs 1Lakh-2 Lakhs 28% 22% 2 Lakhs-3 Lakhs 16% 8) In which fund do you prefer to invest(rank them accordingly)BABASAB PATIL PROJECT REPORT ON MARKETING Page 41
  • 42. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Composite ranking of various fund 300 280 246 250 232 222 200 150 100 50 0 Equity fund Debt fund Cash fund Balance fundBABASAB PATIL PROJECT REPORT ON MARKETING Page 42
  • 43. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH ANALYSIS ANALYSIS HAS BEEN MADE IN THREE PARTS • Respondents in general • Respondents whose income is more than Rs Rs 3,00,000 p.a. • Respondents who knows about Unit Linked PolicyBABASAB PATIL PROJECT REPORT ON MARKETING Page 43
  • 44. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHRESPONDENTS IN GENERALINCOME OF THE RESPONDENTS Income of respondents In Rs 22% 28% Below 150000 150000-300000 300000-500000 Above500000 30% 20%Four types of income group has been responded, accordingly respective percentage hasbeen given. 1. Below Rs 1,50,000 28% 2. Rs 1,50,000-Rs 3,00,000 p.a. 20% 3. Rs Rs 3,00,000 p.a.-5,00,000 30% 4. Above Rs 5,00,000 22%BABASAB PATIL PROJECT REPORT ON MARKETING Page 44
  • 45. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH AWARENESS OF LIFE INSURANCE Awareness of Life Insurance 120 100 80 60 40 20 0 Know insurance policy Don’t know insurance policy Awareness of the life insurance is out of the 100 samples 2 peoplesdon’t know about the life insurance.BABASAB PATIL PROJECT REPORT ON MARKETING Page 45
  • 46. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH AWARENESS OF UNITLINKED POLICY Awareness of unitlinked policy 22% know unit linked policy don’t know unit linked policy 78% Out of 98 people 22% know about the unit linked policy. RANKING OF LIFE INSURANCE COMPANIESBABASAB PATIL PROJECT REPORT ON MARKETING Page 46
  • 47. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Respondents ranked life insurance companies as below Ranking of Insurance Companies based on composite score 35 30 25 composite score 20 15 10 5 0 C I G iva ife j IC ja LI AI Av Ba IC nl Su ta nz Ta rla lia Name of companies Bi Al The ranking is 1. Life Insurance Corporation 2. ICICI 3. Allianz Bajaj Life Insurance Company Limited 4. Tata AIG Life Insurance Company Limited 5. Aviva Life Insurance Company LimitedRespondents ranked Allianz Bajaj as 3rd among 6 life insurance companies.That meansawareness is less about the company. Therefore company should take some measure tocreate awareness.BABASAB PATIL PROJECT REPORT ON MARKETING Page 47
  • 48. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH While purchasing unit linked policy, people consider the attributeslike Creation of estate, Life coverage, Mode of paying premium, Withdrawal benefits, Savingcomponent echo much importance they give to each attribute is given below Consideration of attributes Charges levied Creation of 9% estate 16% Saving component 15% Life coverage 16% Maturity benefits 15% Mode of paying Withdraw al premium benefits 14% 15% While purchasing life insurance people considered mostimportant is life coverage than Creation of estate than saving component than otherattributes like maturity benefits, withdrawal benefits and mode of payingpremium .the least important attribute is charges levied. As people consider most important as life coverage, in thepolicy of Unit gain they should concentrate on Death benefits and life coverage period. After consideration of attributes the next step towards the purchase of lifeinsurance by the prospective buyer are following factorsBABASAB PATIL PROJECT REPORT ON MARKETING Page 48
  • 49. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 1. Brand Image 2. Risk Factor 3. Income 4. Age factor 5. Influence of relatives and friends 6. Market condition Consideration of factors while buying Life Insurance Brand image Market condition 14% 18% Relatives&friend Risk factor s 19% 12% Age 18% Income 19% Respondents considered very important as Risk factor than thefactors like Income, Age, and Market conditions. Brand image as less important andInfluence of relatives and friends as very least important. As people are tend to avoid risk and give more importance to riskfactor it shows that people are willing to take risk.BABASAB PATIL PROJECT REPORT ON MARKETING Page 49
  • 50. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHPEOPLE’S INTEREST OF INVESTING IN LIFE INSURANCE Respondents interest of investment in percentage (in Rs p.a ) Above 5 Lakhs Above 1Lakh 14% 20% 3 Lakhs - 5Lakhs 1Lakh-2 Lakhs 28% 22% 2 Lakhs-3 Lakhs 16%Respondents got a option of five categories as shown above. The response was • Below Rs 1,00,000 13% • Rs 1,00,000 –2,00,000 18% • Rs 2,00,000 – Rs 3,00,000 p.a. 27% • Rs Rs 3,00,000 p.a.- 5,00,000 29% • Above Rs 5,00,000 13% Most peoples are interested in taking the policy of Rs 3,00,000p.a. to 5,00,000.Next to it is the policy of Rs2,00,000 to Rs 3,00,000 p.a..BABASAB PATIL PROJECT REPORT ON MARKETING Page 50
  • 51. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHPEOPLE ‘S PREFERENCE OF INVESTING PREMIUM AMOUNTCustomer got several option to invest their premium .The preference according torespondents are given below Graph showing Composite ranking of various fund 300 280 246 250 232 222 200 150 100 50 0 Equity fund Debt fund Cash fund Balance fundRankings are given below 1. Balanced fund 28% 2. Equity fund 25% 3. Cash fund 24% 4. Debt fund 23%BABASAB PATIL PROJECT REPORT ON MARKETING Page 51
  • 52. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHRESPONDENTS WHOSE INCOME IS MORE THANRS Rs 3,00,000 p.a. Ranking of Life Insurance companies based on their composite score 35 30 25 20 15 10 5 0 Lic Birla ICICI Allianz Aviva Tata Sunlife Bajaj AIGRanking according to respondents whose income is more than Rs 3,00,000 p.a. 1. LIC 2. ICICI 3. Birla Sunlife 4. Allianz Bajaj 5. Tata AIG 6. AvivaBABASAB PATIL PROJECT REPORT ON MARKETING Page 52
  • 53. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Respondents whose income is more than Rs 3,00,000 p.a. considered attributes as below Consideration of Attributes Charges lavied Creation of 8% estate 16% Saving component 16% Life coverage 16% Maturity benefits 14% Mode of paying Withdraw al premium benefits 15% 15% Respondents considered very important attribute as Creation of estate,Saving components and life coverage. Next important as Mode of paying premiumand next is Withdrawal benefits next is Maturity benefits and the least important isCharges levied. Respondents even consider Saving component and creation of estate asvery important.BABASAB PATIL PROJECT REPORT ON MARKETING Page 53
  • 54. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHRespondents whose income is more than Rs 3,00,000 p.a. consideredfactors affecting to buy life insurance as below Factors considered while buying Life Insurance Market condition Brand image 19% 14% Relatives&friends Risk factor 11% 18% Age Income 19% 19% Respondent considered all the above-mentioned attributes as mostimportant In percentage most important is Age, Income, Market conditions, RiskFactor and least important is Brand image and influence of relatives and friends.BABASAB PATIL PROJECT REPORT ON MARKETING Page 54
  • 55. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHRespondents whose income is more than Rs 3,00,000 p.a. considered theinvestment criteria as follows Respondents interest of investment in percentage (in Rs p.a) Below Above 100000 100000- 500000 4% 200000 19% 23% 350000- 500000 200000- 31% 350000 23% Respondent interested to invest money more between Rs3,50,000-5,00,000 p.a.Next is Rs2,00,000-3,50,000 p.a. and same percentage of people wants to invest inRs1,00,000-2,00,000 p.a. and 19% want to invest in above Rs 5,00,000 p.a. and leastpeople want to invest in below Rs 1,00,000 p.a.BABASAB PATIL PROJECT REPORT ON MARKETING Page 55
  • 56. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHRespondents whose income is more than Rs 3,00,000 p.a. consideredinvesting their money in following fundsBABASAB PATIL PROJECT REPORT ON MARKETING Page 56
  • 57. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Preference of respondents interest of investing Premium in various funds Equity fund 22% Balance fund 31% Debt fund 22% Cash fund 25%Rankings are given below 1. Balanced fund 31% 2. Cash fund 25% 3. Equity fund 22% 4. Debt fund 22%OPINION OF THE RESPONDENTSWHO KNOW ABOUTTHE UNITLINKED POLICY.BABASAB PATIL PROJECT REPORT ON MARKETING Page 57
  • 58. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH ATTRIBUTES CONSIDERED BY RESPONDENTS WHILE PURCHSING UNIT LINKED POLICY Charges Creation of Saving lavied estate componen 10% 15% t Life 15% coverage 17% Maturity benefits Mode of 14% Withdrawa paying l benefits premium 16% 13% Respondents considered very important attribute as Life coverage nextimportant as Withdrawal benefits next is Saving components and Creation of estatenext important as Maturity benefits next important attribute is Mode of payingpremium and the least important is Charges levied. Here most important to note is every attribute is consideredimportant because all the percentage is more than 10%.BABASAB PATIL PROJECT REPORT ON MARKETING Page 58
  • 59. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH CONSIDERATION OF THE FACTORS WHILE BUYING UNIT LINKED POLICY Market condition Brand image 17% 15% Relatives&friends 10% Risk factor 20% Age 19% Income 19% Very important Risk factor Less important Income, age Important Market conditions Not important Brand image Least important Influence of relatives &friendsBABASAB PATIL PROJECT REPORT ON MARKETING Page 59
  • 60. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH GRAPH SHOWING PERCENTAGE OF PEOPLE & THEIR INTEREST OF INVESTMENT (IN RS P.A.) 60 50 40 30 20 10 0 Below 10000- 50000- 100000- Above 10000 50000 100000 200000 200000Respondents got an option of five categories as shown above. The response was • Below Rs 1,00,000 09% • Rs 1,00,000 –2,00,000 00%BABASAB PATIL PROJECT REPORT ON MARKETING Page 60
  • 61. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH • Rs 2,00,000 – Rs 3,00,000 p.a. 09% • Rs Rs 3,00,000 p.a.- 5,00,000 55% • Above Rs 5,00,000 27% PEOPLES CRETERIA TO INVEST IN VARIOUS FUNDS Equity fund Balance 25% fund 32% Debt fund 20% Cash fund 23%Rankings are given belowBABASAB PATIL PROJECT REPORT ON MARKETING Page 61
  • 62. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 1. Balanced fund 32% 2. Equity fund 25% 3. Cash fund 23% 4. Debt fund 20%SUGGESTIONS: 1. The above study showed that the awareness about Allianz Bajaj is less . People ranked it 3rd in the life insurance companies .So companies should take some measure to create awareness in the minds of customer .For that it may go for aggressive advertising campaign or sponsor for some events, go for banners or hoardings 2. The competitor companies of ALBJ is very strong in unit linked policies Birla Sunlife and LIC are going extremely well in the market.their growth rates are very high .So ALBJ should highlight their strong points like  Choosing the sum assured  Low allocation charges in the long runBABASAB PATIL PROJECT REPORT ON MARKETING Page 62
  • 63. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH  Good service  Low switching charges  Term of policy is unlimited  Salary deduction schemes 3. The unit-linked policies are suitable to those who are active investors and at the same time they want to cover their life. 4. There are various categories of people who can be differentiated like • Men and Women Men usually take the risk, where as women hesitate to take risk. So this policy is more suitable to men • Age factor Young people are more willing to take the risk, where old people are not. So it is suitable to young income people • Income group If income of the person is high than he can take risk but low-income group cant take the risk. So this policy is suitable to high-income group people. 5. Life insurance is the classical example of unsought goods. The nature of that is the consumer does know about or does not normally think of buying. It requires personal selling support. So agents should be fully informative and they should be able to tell the entire information customer needed.BABASAB PATIL PROJECT REPORT ON MARKETING Page 63
  • 64. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 6. As awareness is less , Allianz Bajaj should open some more branches so that acccess becomes easy. So that people can approach the company and take service. 7. As people consider risk factor as very important company should give minimum guarantee of money so that people may consider this policy as most secured and also giving good profit. 8. Company should come up with group unit linked plans so that people may have option to go for unit-linked policy.CONCLUSION In new economy things are moving at a nanosecond pace; that our markets arecharacterised by hyper competition; that disruptive technologies are changing everybusiness and every business must adapt to the empowered consumer. In such anenvironment ALBJ is performing on a consistence basis. It is not a result of luck, trickplays or misfortune of the competitors, but service and attractive schemes of ALBJ.Allianz Bajaj sustained efforts are yielding superior long-term result.BABASAB PATIL PROJECT REPORT ON MARKETING Page 64
  • 65. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH The above study showed that unit linked policy has attractive market. But mainproblem is awareness. So Allianz Bajaj should create awareness among the people. Theyshould explain the advantages they are getting out of unit-linked policy. They shouldcome up with some salient features like different investment criteria, group investmentplans etc.In India people are not willing to invest their money in market but they makeidle investment. So it is the work of middlemen win the willingness of people to invest inmarket. Also company should concentrate on death benefit and term of policy.BIBLIOGRAPHY 1. Donald .S.Tull & Hawkins – Marketing research measurement and method, Prentice Hall of India Private Limited,New Delhi-2001 2. Literature available at Allianz Bajaj Branch office, Bangalore. 3. www.AllianzBajaj.comBABASAB PATIL PROJECT REPORT ON MARKETING Page 65
  • 66. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH 4. www.economictimes.comBABASAB PATIL PROJECT REPORT ON MARKETING Page 66
  • 67. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHAPPENDIX MARKET SURVEY ON UNIT LINKED POLICIESSir/Madam, I am MBA student studying in. I am doing survey on unit linked plans .Please co-operate and spare a few minutes of your time to fill up the followingquestionnaire. The information provided by you will be kept confidential since this projectis for academic purpose.Name :Address :BABASAB PATIL PROJECT REPORT ON MARKETING Page 67
  • 68. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCHPh .No :Gender : Age :Profession/Occupation:Annual income: a) below 150000 b)150000-300000 c) 300000-500000 d) above 5000001. Have you bought any Insurance policy / know about unit linked policy? Yes No2. Rank the insurance companies you are aware off LIC Allianz Bajaj Birla Sunlife Aviva I CI C I Tata AIG3. Have you bought any unit linked policy? Yes No If Yes Company name : If No4. Are you interested in buying unit linked policies Yes No If yes From which company And why5 . Rank the below attributes do you consider while purchasing Life Insurance/ Unit Linked policies (For very important 5 to least important 1)BABASAB PATIL PROJECT REPORT ON MARKETING Page 68
  • 69. COMPARITIVE STUDY OF UNIT LINKED POLICIESANDITS MARKET RESEARCH Attributes 5 4 3 2 1 Creation of estate Life coverage Mode of paying premium Withdrawal benefits Maturity benefits Saving component Charges levied 6. Rank the below factors are you consider while purchasing Life Insurance/ Unit Linked policies (For very important 5 to least important 1) Factors 5 4 3 2 1 Brand image Risk factor Income Age Relatives and friends Market conditions7. How much do you want to invest? Below -10000 100000-200000 10000-50000 Above 200000 50000-1000008. In which fund do you prefer to invest (rank them accordingly) Equity fund Cash fund Debt fund Balance fund Thank youBABASAB PATIL PROJECT REPORT ON MARKETING Page 69

×