idbi fortis

SUMMER TRAINING PROJECT

COMPARITIVE ANALYSIS OF ULIP PLANS WITH REFERNCE TO IDBI FORTIS AND

HDFC STANDARD LIFE INSURANCE COMPANY

Undertaken at

“ IDBI FORTIS LIFE INSURANSE COMPANY ”

Submitted in the partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Under the Supervision Submitted and

Guidance of by

MR. ASIM SAHORE BBA 5th Semester

0442131707

SAHIL KOCHHAR

SESSION: 2009 – 2010

TECNIA INSTITUTE OF ADVANCED STUDIES

(Approved by AICTE, Ministry of HRD, Govt. of India)

Affiliated To Guru Gobind Singh Indraprastha University, Delhi

INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085

E-Mail:[email protected], Website: www.tecniaindia.org

Fax No: 27555120, Tel: 27555121-24

SUMMER TRAINING PROJECT

COMPARITIVE ANALYSIS OF ULIP PLANS WITH REFERENCE TO (IDBI FORTIS

AND HDFC STANDARD LIFE INSURANCE)

Undertaken at

IDBI FORTIS LIE INSRUANCE LTD.

Submitted in the partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Under the Supervision Submitted by and Guidance of BBA 5th Semester

…………………………… …………………

SESSION: 2009 - 2010

TECNIA INSTITUTE OF ADVANCED STUDIES

(Approved by AICTE, Ministry of HRD, Govt. of India)

Affiliated To Guru Gobind Singh Indraprastha University, Delhi

INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085

E-Mail:[email protected], Website: www.tecniaindia.org

Fax No: 27555120, Tel: 27555121-24

DECLARATION

I SAHIL KOCHHAR Enrolment No 0442131707 Class BBA 5th SEMSTER (evening) of the

Tecnia Institute of Advanced Studies, Delhi hereby declare that the Summer Training Report

entitled _________________________________________________________

___________________________________________________________________ is an original

work and the same has not been submitted to any other Institute for the award of any other

degree. A seminar presentation of the Summer Training Report was made on

_______________________ and the suggestions as approved by the faculty were duly

incorporated.

Countersigned

Signature of faculty Guide

http://www.tecniaindia.org/

PREFACE

Risk and uncertainties are part of life’s great adventure; Accidents, Illness, Theft &

Natural Calamities they all are pillars of this world. To overcome these risks and mishaps this

project describes the policies and schemes of IDBI FORTIS and HDFC STANDRAD Life

Insurance Companies. The way these companies provide different benefits to the policyholder.

Insurance is Cooperative venture where risk and uncertainties are shared by many. Now days a

lot is being done to create awareness among the Insuring Public about the Importance of

Insurance in life. In this direction IRDA has planned to create awareness through Electronic and

Print media.

A study of Life Insurance describes the meaning of various policies, comparison and analysis

and changing market scenario.

Acknowledgement

“If words are considered as symbol of Approval and Taken of

appreciation then let the words play the heralding role of expressing my

sincere gratitude and thanks”.

Any accomplishment requires the effort of many people and this work is no different. I

am indebted to MR. SATISH AND MR. RAJESH (Sales Manager,

IDBI FORTIS Life Insurance, DELHI) and collage guide MR. ASIM SAHORE but for whose

guidance and patience I would have not been able to accomplish this task.

I also have a great thanks to him for providing me an opportunity to go through summer

training, and providing me this golden opportunity to be a part of the said esteemed company and

letting me work on this project.

I also owe a great thanks to all the staff members of NETAJI SUBHASH PLACE of

IDBI FORTIS Life Insurance, who helped me in the best possible way to complete this summer

training and this report.

SAHIL KOCHHAR

TABLE OF CONTENTS

CHAPTER 1 PAGE NO.

EXECUTIVE SUMMARY 6

INTRODUCTION TO THE COMPANY 8-19

SWOT ANALYSIS OF THE COMPANY 20-21

INTRODUCTION TO THE INDUSTRY 22-28

OPERATIONALIZATION OF THE CONCEPT 29-32

OBJECTIVES 33

SCOPE AND SIGNIFICANCE OF STUDY 34

CHAPTER 2

REVIEW OF LITRATURE 35-47

CHAPTER 3

CURRENT SCENARIO AND FUTURE 48-50

CHAPTER 4

RESEARCH METHODOLOGY 51-54

LIMITATIONS OF THE STUDY 55

COMPARISON OF ULIP PLANS 56-60

DATA ANALYSIS AND INTERPRETATION 61-72

CHAPTER 5

FINDIGS OF THE STUDY 73

CONCLUSION 74

RECOMMENDATIONS 75

BIBLIOGRAPHY 76

QUESTIONNAIRE 77-80

EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum growth

and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-

80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts

me to enter in this sector and IDBI FORTIS COMPANY has given me the opportunity to work

and get experience in highly competitive and enhancing sector.

Companies now are tapping a lot of ways to capture the market and hence adopting different

ways to hold the large portion of the market.

My summer training learning helped me a lot to complete my project in order to learn a lot of

things of the corporate. As a project trainee the first task given to me was to understand the basic

behaviour of the consumer in order to manipulate the market according to our target competition.

For this I developed a questionnaire and I did my survey in DELHI city.

This job training also helped me a lot in understanding the real motive behind the customer

preference towards the life insurance policy I found that LIC company having 55% market share

is the number 1 insurance company in India. Band name of LIC plays a very important role in

the mind of customers towards the sale of the product.

The success story of good market share of different market organizations depends upon the

availability of the product and services near to the customer, which can be distributed through a

distribution channel. In Insurance sector, distribution channel includes only agents/advisors or

agency holders of the company.

IDBI Fortis Life Insurance Co Ltd, is a joint venture between three leading financial

conglomerates – India’s premier development and commercial bank, IDBI, India’s leading

private sector bank, Federal Bank and Europe’s premier Bancassurer, Fortis, each of which

enjoys a significant status in their respective business segments. In this venture, IDBI owns 48%

equity while Federal Bank and Fortis own 26% equity each. IDBI Fortis launched its first set of

products across India in March 2008, after receiving the requisite approvals from the Insurance

Regulatory Development Authority (IRDA). Today, we offer our services through a vast

nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable

network of advisors and partners. At IDBI Fortis we endeavor to deliver products that provide

value and convenience to the customer. Through a continuous process of innovation in product

and service delivery we intend to deliver world-class wealth management, protection and

retirement solutions to Indian customers.

IDBI Fortis Life Insurance Co. Ltd is a joint venture of IDBI Bank, Federal Bank (India) and

Fortis Insurance International. The Certificate of Registration has been issued by the Insurance

regulator IRDA.

Insurance Company on 19th December 2007. According to the agreement, IDBI will have a 48-

per cent stake in the venture, while Fortis and Federal Bank would have 26-per cent stake each.

While IDBI and Federal Bank are major Indian banks, Fortis has the expertise of bancasurance

across global markets. It is one of the best names in the insurance business in Europe and has

successful joint ventures in various Asian countries. IDBI Fortis Life Insurance has become 18th

life insurer in India.

Founded in 1956, IDBI Ltd. is India’s premier industrial development bank. Today, it is amongst

India’s most famous commercial banks which provide a wide range of innovative products and

services. IDBI Bank has around 490 branches and more than 600 ATMs all over India. IDBI is a

also a part of development activities, as it has been instrumental in sponsoring the development

of key institutions involved in India’s financial sector, such as, the Securities and Exchange

Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National Securities

Depository Ltd (NSDL).

About their Heritage

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development

bank. Created in 1956 to support India’s industrial backbone, IDBI Bank has since evolved into a

powerhouse of industrial and retail finance. Today, it is amongst India’s foremost commercial

banks, with a wide range of innovative products and services, serving retail and corporate

customers in all corners of the country from over 538 branches and more than 921 ATMs. The

Bank offers its customers an extensive range of diversified services including project financing,

term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate

advisory services and legal and technical advisory services to its corporate clients as well as

mortgages and personal loans to its retail clients. As part of its development activities, IDBI

Bank has been instrumental in sponsoring the development of key institutions involved in India’s

financial sector – such as the Securities and Exchange Board of India (SEBI), National Stock

Exchange of India Limited (NSE) and National Securities Depository Ltd.

Federal Bank is one of India’s leading private sector banks, with a dominant presence in the

state of Kerala. It has a strong network of over 600 branches and 600 ATMs spread across India.

The bank provides over four million retail customers with a wide variety of financial products.

Federal Bank is one of the first large Indian banks to have an entirely automated and

interconnected branch network. The Bank operates on the core banking platform and is RTGS/

NEFT enabled through which it offers state-of-the-art technology enabled products and services.

In addition to interconnected branches and ATMs, the Bank has a wide range of services like

Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online bill

payment and call centre facilities to offer round the clock banking convenience to its customers.

The Bank has been a pioneer in providing innovative technological solutions to its customers and

the Bank has won several awards and recommendations.

Federal Bank is one of India’s leading private sector banks. It has a wide spread network in

India, but its dominant presence can be seen in the state of Kerala. Federal Bank is one of the

first large Indian banks, having an entirely automated and interconnected branch network. The

Bank also provide a wide range of services, such as, internet banking, mobile banking, tele

banking, any where banking, debit cards, co-branded credit cards, online bill payment and call

centre facilities to offer complete banking convenience to its customers.

Fortis is an international insurance group composed of Insurance Belgium, a leader in life and

non-life insurance in Belgium distributing its insurance products through the network of Fortis

Bank and independent insurance brokers and Insurance International with subsidiaries in the

UK, France, Hong Kong, Luxembourg (Non-life), Germany, Turkey, Russia and Ukraine, and

joint ventures in Luxembourg (Life), Portugal, China, Malaysia, Thailand and India.

- PRODUCTS PROFILE.

1) WealthsuranceTM: Insured Wealth Plans to grow wealth under a protective cover.

Wealthsurance offers you Insured Wealth Plans. They allow you to create, build and manage

wealth by giving several choices and great flexibility so that your plan meets your specific needs.

You can decide how you wish to save so that it suits your savings habit. You can choose how

your money is invested so that you can grow wealth as per your investment preferences. What is

even better, Wealthsurance protects your wealth plans with insurance benefits so that your

wealth-building efforts remain unaffected in unforeseen events and your financial goals can still

be achieved.

What is Wealthsurance ?

Wealthsurance combines wealth creation and insurance protection into one powerful financial

solution. Unlike other investment alternatives, it allows you to ensure that your goals of wealth

creation are achieved even in the event of serious illness,

accidents, disablement or death.

Wealthsurance is for those who will live-

Life insurance is sometimes thought of as for those who might die, but Wealthsurance is for

those who will live. Usually life insurance products provide benefits upon death, but

Wealthsurance is designed to also give Living Benefits to ensure your well-being in your own

lifetime.

2) HomesuranceTM Protection Plan?

Homesurance Protection Plan* is a mortgage reducing term assurance plan, which provides

insurance cover equal to the outstanding balance of your home loan. In the unfortunate event of

death of the home loan borrower, the insurance cover enables

repayment of the home loan liability so that it does not become a burden to the family.

3) IDBI Fortis HomesuranceTM Plan?

Homesurance is a mortgage reducing term plan which offers protection to your home from your

home loan. The Plan provides a cover equal to the outstanding balance#1 of your home loan

against any unfortunate events that may occur to you.

4) IDBI Fortis bondsurance TM Plan?

BondsuranceTM: Get guaranteed return on your investment, life insurance cover and tax benefits .

Bondsurance is a single premium plan where you need to make a one-time investment. You can

choose a maturity period of 5 or 10 years. At the end of the chosen period, you will receive a

guaranteed maturity amount. In case of death before the maturity date, a Death Benefit which is

also guaranteed will be paid. Thus you can get life insurance cover while earning an assured

return on your investment. The premium you pay is eligible for deduction of tax under Sec 80C

of the Income Tax Act. Also, the Maturity Benefit and the Death Benefit are tax-free under Sec

10(10D) of the Income Tax Act.

5) IDBI Fortis Termsurance Grameen Suraksha

IDBI Fortis Termsurance Grameen Suraksha is a low-cost, simple term individual insurance plan

targeted at the rural population. It is an ideal plan to protect your family members in the event of

unfortunate demise of the major income earner.

The key features of Termsurance Grameen Suraksha:

Premium: You can choose a fixed single premium of Rs 49.08, Rs 98.17, Rs 147.25 or Rs

196.33 according to your budget.

Eligibility: This plan is available for men and women from age 18 up to age 50.

Term: This plan has a fixed term of three years.

Death Benefit: In the event of unfortunate death of the insured person during the policy term, we

will pay a death benefit of Rs 5,000, Rs 10,000, Rs 15,000 or

Rs 20,000 depending on the single premium paid.

Suicide Exclusion: We will not pay any death benefit if the insured person commits suicide

within 12 months from the commencement date of the policy.

Maturity Benefit: This is a pure term insurance plan and this plan has no maturity benefit.

Surrender Benefit: This plan has no surrender benefit.

Loan: This plan has no loan facility.

nomination At any time before the expiry of the policy, you may nominate a person to whom we

will pay the death benefit. If the nominee is a minor, you need to appoint a person to hold the

benefit until the nominee’s 18th birthday.

Free Look Period: You are entitled to a free look period for 15 days from the day you receive

this policy. If before the end of this time you do not wish to continue this policy, then you may

request us in writing to cancel the policy. We will refund the

premium paid by you after deducting a proportionate risk premium for the insurance cover we

provided to you during that time. We will also deduct any medical examination costs and stamp

duty charges incurred by us in respect of your policy.

Tax Benefits: Premiums paid are eligible for tax benefits under Section 80C and death benefit is

tax-free under Section 10(10D) of the Income Tax Act, 1956.

6) IDBI Fortis Termsurance Grameen Suraksha

Vacation to a tropical island, pursuing your hobby or flying abroad to be with your family and

friends. Whatever may be your idea of having a good time, the one thing common to all, is that it

requires money.

The earlier generations may not have had a formal retirement plan, but they had relatively fewer

consumption needs. It was rare to find people who had shifted through several jobs in the course

of an active career. As a result, pensions and gratuities issued by their employers were deemed

sufficient. Times have changed now, and in most contemporary industries, few employers

provide for a lifelong pension.

This is coupled with the high incidence of lifestyle diseases like diabetes, blood pressure and

heart problems. The improved medical technology has increased longevity, but along with it the

cost of healthcare has increased manifold. Thus managing finances during retirement would be

extremely tough, if one hasn’t planned for retirement. The best way to enjoy the good times in

your golden years would be, to build your finances in advance for retirement.

IDBI Fortis RetiresuranceTM Pension Plan is an effective instrument that will help you achieve

this objective. It not only allows you to conveniently save for the golden years but also offers

you a wide choice of investment options to grow and multiply your wealth. The Plan is

extremely flexible and offers several choices so as to suit your savings habit and investment .

7) IDBI Fortis Incomesurance TM

Immediate Annuity ne of the best financial decisions that you can take today is to

plan for adequate income after retirement. The three key concerns during your golden years will

be increasing healthcare cost, higher life expectancy and rising prices.

All you need is a steady flow of income which can take care of

all your concerns. Presenting the IDBI Fortis IncomesuranceTMImmediate Annuity which gives

you guaranteed incomethroughout your life.

Key features of IDBI Fortis IncomesuranceTM

Immediate Annuity

• Three annuity options to choose from

• Regular income commences as early as age 20 years

• Choose your annuity payment modes – monthly, quarterly, half-yearly, or yearly

• Your annuity payments are credited directly to your bank account.

IDBI Fortis InsuranceBasket is designed to offer

• Protection for wealth plans so that your wealth-building efforts are unaffected by unforeseen

events .

• Protection of loan liabilities so that debt does not become a burden when life throws surprises.

• A whole package of Living Benefits so that you are well cared for in the event of health crises,

accidents or disablement.

- FUTURE PLANS.

IDBI Fortis announces Rs 250cr capital infusion

• Continues its aggressive growth as one of India’s fastest growing life insurance companies • Network expansion to target 100 branches.

Giving a boost to its business expansion plans, IDBI Fortis Life Insurance has announced a

capital infusion of Rs 250 cr from its shareholders as per their share holding pattern. IDBI Fortis

launched its operations in March 2008 with an initial capital of Rs 200 cr leading with their

innovative product, WealthsuranceTM, which has been its flagship product helping it race to

over Rs. 2000 Cr of Sum Assured with over Rs 250 Cr of First Year Annual Premiums and over

62,000 policies issued in record time. The company is targeting a network expansion drive to set

up 100 branches across the country. In addition, IDBI Fortis also sells its products through the

more than 1100 branches of its shareholder banks, IDBI and Federal Bank. IDBI Fortis Life

Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial

bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance

International, a multinational insurance giant based out of Europe. IDBI Bank owns 48% equity

while Federal Bank and Fortis own 26% equity each. Visit www.idbifortis.com to know more.

ensuring that the customer would find all his investment requirements satisfied with this one

powerful product. The powerful insurance benefits of WealthsuranceTM ensure that a

customer’s wealth plan is not affected by unforeseen events that may strike them.

With the recent popularity for guaranteed return products, the company launched a unique

product, BondsuranceTM that offers tax-free assured returns with life cover. With the innovative

HomesuranceTM Protection Plan, customers can now cover the changing liability that comes

with a typical floating rate home loan, along with an optional cover where they can pay off the

home loan even in the unfortunate event of any major disease or other unforeseen circumstances.

“The branch expansion drive is going on in full swing and we already have over 30 branches up

and running in various states,” said Mr G.V. Nageswara Rao, MD and CEO, IDBI Fortis Life

Insurance. “IDBI Fortis is committed to providing comprehensive investment and insurance

solutions through innovative products, well-trained sales force and high standards of service.”

The fresh capital infusion will also help IDBI Fortis in meeting the solvency requirements and

expanding operations due to increased sales besides launching new products and branches.

IDBI Fortis Life Insurance Intends To Open 100 Branches Across Country.

IDBI Fortis Life Insurance has informed that the company will shortly open 24 branches,

including six in Tamil Nadu, to expand its footprints in the southern region.

The company, a joint venture of IDBI, Federal Bank and Fortis, Europe's banking and insurance

firm, has launched its operations in March, this fiscal.

SWOT ANALYSIS OF IDBI

STRENGTH

Superior customer service vs. competitors.

Products have required accreditations.

High degree of customer satisfaction.

Good place to work

Lower response time with efficient and effective service.

Dedicated workforce aiming at making a long-term career in the field.

Large pool of technically skilled manpower with in depth knowledge and under

standing of the market

WEAKNESSES

Some gaps in range for certain sectors.

Customer service staff need training.

Processes and systems, etc

Management cover insufficient.

Sectoral growth is constrained by low unemployment levels and competition for

staff.

Low customer confidence on the private players.

Opportunities

Insurable population : According to IRDA only 10% of the population is insured which

represent around 30% of the insurable population. This suggests more than 300m people,

with the potential to buy insurance, remain uninsured.

International companies will help in building world class expertise in local market by

introducing the best global practice.

Could extend to overseas broadly.

New specialist applications.

Could seek better customer deals.

Fast-track career development opportunities on an industry-wide basis.

An applied research centre to create opportunities for developing techniques to provide

added-value services.

Threats

Big public sector insurance companies like Lif e Insurance Corporation (L IC) of India,

National Insurance Company Limited, Oriental Insurance Limited, New India Assurance

Company Limited and United India Insurance Company Limited. People trust and go to

them more.

Legislation could impact and Great risk involved.

Very high competition prevailing in the industry.

Vulnerable to reactive attack by major competitors

Lack of infrastructure in rural areas could constrain investment

INDUSTRY PROFILE- INSURANCE

INTRODUCTION

Insurance may be described as a social device to reduce or eliminate risk of loss to life and property.

Under the plan of insurance, a large number of people associate themselves by sharing risks attached to

individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents

and burglary. Any risk contingent upon these may be insured against at a premium commensurate with

the risk involved. Thus collective bearing of risk is insurance.

Types Of Insurance

Insurance industry in India is broadly classified as-

Life Insurance:- policies protect individuals against the risk of life. Life 100 Insurance

policies not only protects the insured’s family against his death but also provides a good means to avail

tax benefit, avail loans from banks and acts, as a good saving tool to meet future needs.

General Insurance:- on the other hand protects the property and casualty by

covering losses from disasters and accidents thereby protecting from property damage and liability,

providing the means for victims to resume their lives and businesses and contribute to the economy.

The various types of insurance available are –

1. Auto Insurance

Two Wheeler Insurance

Car Insurance

Commercial Vehicle Insurance

2. Commercial Insurance

Agriculture Insurance

Fire Insurance

Industrial Insurance

Marine Insurance

Shop Insurance

3. Home Insurance

4. Life Insurance

Accident Insurance

a. NRI Accident Insurance

b. Personal Accident Insurance

Health Care Insurance

c. Medical Insurance

d. Critical Illness Insurance

Travel Insurance .

HISTORY OF INDIAN INSURANCE

The business of life insurance in India in its existing form started in India in the year 1818 with the

establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in

the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a

capital contribution of Rs.5crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance

Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the

British. Some of the important milestones in the general insurance business in India are:-

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of

conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins

and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act nationalized the general insurance

business in India with effect from 1st January 1973. 107 amalgamated and grouped into four

companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a

company.

Insurance companies

Some of the life insurance companies and general insurance companies including their web address is

given below:-

Life Insurers Websites

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector

Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in

Birla Sun-Life Insurance Company Limited www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com

ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com

ING Vysya Life Insurance Company Limited www.ingvysayalife.com

http://www.hdfcinsurance.com/

Max New York Life Insurance Co. Limited www.maxnewyorklife.com

MetLife Insurance Company Limited www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com

SBI Life Insurance Company Limited www.sbilife.co.in

TATA AIG Life Insurance Company Limited www.tata-aig.com

General Insurers Websites

Public Sector

National Insurance Company Limited www.nationalinsuranceindia.com

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in

Private Sector

Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation www.ecgcindia.com

Reinsurers Websites

General Insurance Corporation of India www.gicindia.com

MARKET SHARE OF LIFE INSURANCE COMPANIES

Operationalization of the concept

Unit Linked Insurance Plans

In Unit Linked Plans, the investments made are subject to risks associated with the capital

markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you

should make your investment choice after considering your risk appetite and needs.

Another factor that you need to consider is your future need for funds. IDBI Standard Life offers

you a variety of unit-linked insurance products to suit your goals – be it for your retirement

planning, for your health, for your child’s education and marriage or for investment purposes.

Which Investor Class Are They Most Suited For?

Those who wish to closely track their investments: Unit linked plans allow policy

takers to closely monitor their portfolios. They also offer the flexibility to switch your

capital between funds with varying risk-return profiles.

Individuals with a medium to long term investment horizon: Unit linked plans are

ideal for individuals who are ready to stay invested for relatively long periods of time.

Those with varying risk profiles: Across the seven funds offered, the equity component

varies from zero to a maximum of 100 per cent. Thus there is a choice of funds available

to all types of investors - from risk-averse investor to those investors who have strong

risk appetite.

Investors across all life stages: This plan category offers a variety of plans which can be

opted for depending upon the life stage you are in and your needs and financial liabilities

at that point in time.

How Is It Structured?

In a Unit Linked Plan, the premiums you pay are invested in the funds chosen by you after

deducting allocation charges and charges including those for managing funds, policy

administration and for providing insurance cover are deducted from the funds by cancelling

certain units. The value of each unit of a fund is determined by dividing the total value of the

fund’s investments by the total number of units.

Advantages Of A Unit Linked Plan?

Market linked returns: Unit linked plans give you an opportunity to earn market-linked

returns as part of the premiums are invested in market linked funds which invest in

different market instruments including debt instruments and equity in varying

proportions.

Life protection, Investment and Savings: Unit linked plans offer the twin benefits of

life insurance and savings at market-linked returns. Thus, you have the opportunity to

invest your money to earn higher returns, while taking care of your protection needs.

Investing in unit linked plans helps to inculcate a regular habit of saving and investing,

which is important for building wealth over the long term.

Flexibility: Unit Linked Plans offer you a wide range of flexible options such as

o The option to switch between investment funds to match your changing needs.

o The facility to partially withdraw from your fund, subject to charges and

conditions.

o Single premium additions to enable the policy holder to invest additional sums of

money (over and above the regular premium) as and when desired, subject to

conditions.

Servicing A Unit Linked Plan

Single Premium: The policy holder is required to pay the entire premium amount as a

lump sum at the beginning of the policy term.

Regular Premium Payment (annually, semi-annually or monthly): The policy holder

has to pay the pre-determined premium amount periodically i.e. annually, semi annually

or monthly, depending upon the premium payment term opted for.

Charges - The following charges are deducted from your policy towards the cost of benefits

and administration services provided by IDBI-

Administration charges: A fee is charged for administration of your policy every

month. Administration charges are deducted by cancelling units proportionately from

each of the funds you have chosen.

Fund management charges: These charges are towards meeting expenses related to

managing the fund. This is charged as a percentage of the fund’s value and is deducted

before arriving at the net asset value of the fund.

Switch charges: You can switch between the funds available to suit your changing needs

and goals. In a policy year, a fixed number of such switches are available free of cost.

Subsequent to this, each switch would attract a certain charge. These charges are

deducted by cancelling units proportionately from each of the funds you have chosen.

Surrender charges: These charges are levied for premature encashment of units. They

are charged as a percentage of the fund value and depend on the policy year in which the

policy has been surrendered.

Mortality Charges: Depending upon the age, and the amount of cover, these charges are

levied towards providing a death cover to the insured.

Premium Allocation Charge: This charge is deducted as a fixed percentage of the

premium received, and is usually charged at a higher rate in the initial years of a policy.

This charge varies depending upon whether the policy is a single premium or regular

premium policy, the size of the premium, premium frequency and payment mode.

Partial Withdrawal Charges: Lump sum withdrawals are allowed from the fund after

the lapse of three years of the policy term and subject to pre-specified conditions.

However, such withdrawals attract charges, as mentioned in the respective policy

brochures.

Making Withdrawals

You may also make partial withdrawals from your funds after a certain specified period, subject

to a partial withdrawal charge. The withdrawal amount should be at least the minimum

prescribed withdrawal amount and the fund must not fall below the minimum fund value after

the withdrawal.

You can make a full withdrawal of your policy before its maturity date. However, surrender

charges will be applicable in this case.

Objective of the study

To study the awareness among the people about insurance companies.

To analyze HDFC STANDARD LIFE INSURANCE and their ULIP plan.

To analyze the services being provided in the WEALTHSURANCE

scheme to the customers in IDBI fortis.

To analyze how WEALTHSURANCE will add extra benefit to the

customers by opting it.

To compare the ULIP plan of IDBI FORTIS AND HDFC STANDARD

LIFE INSURANCE on the basis of return, charges , lock in period,

surrender allowed, fund options.

To find out the customer preference and opinions about the ULIP plans.

SCOPE AND SIGNIFICANCE OF STUDY

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new

players have entered the market and are vying to gain market share in this rapidly improving

market. The study deals with studing the consumer behaviour with the focus on market

segementation. The study then goes on to evaluate and analyse the findings so as to present a

clear picture of trends in the Insurance sector and preferences of the people towards an insurance

policy.

SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the responses of 100 people. This data can

be explorated to take in the trends across the industry. The significance for the industry lies in

studying these trends that emerge from the study. It is a rapidly changing and evolving sector.

People are only beginning to wake up to it’s vast possibilities. A study like this can attempt to

guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER :

To facilitate and provide all the useful information of the study, the company, the insurance

industry and also provide marketing ways, methods of IDBI fortis Life insurance.

REVIEW

OF

LITRATURE

WealthsuranceTM: Insured Wealth Plans to grow wealth under a protective

cover.

Wealthsurance offers you Insured Wealth Plans. They allow you to create, build and manage

wealth by giving several choices and great flexibility so that your plan meets your specific needs.

You can decide how you wish to save so that it suits your savings habit. You can choose how

your money is invested so that you can grow wealth as per your investment preferences. What is

even better, Wealthsurance protects your wealth plans with insurance benefits so that your

wealth-building efforts remain unaffected in unforeseen events and your financial goals can still

be achieved.

What is Wealthsurance ?

Wealthsurance combines wealth creation and insuranceprotection into one powerful financial

solution. Unlike other investment alternatives, it allows you to ensure that your goals of wealth

creation are achieved even in the event of serious illness,accidents, disablement or death.

Wealthsurance is for those who will live-

Life insurance is sometimes thought of as for those who might die, but Wealthsurance is for

those who will live. Usually life insurance products provide benefits upon death, but

Wealthsurance is designed to also give Living Benefits to ensure your well-being in your own

lifetime.

IDBI Fortis Wealthsurance Foundation Plan

-Contribute money in a flexible way that suits your savings habit

a) Single Premium or (b) Regular Premiums. Pay premiums for a limited period and enjoy

benefits for a longer period.

Pay additional top-up premiums whenever you want. Grow wealth faster and get tax benefits.

-Choose how your money is invested from a wide choice of investment options,

based on your return expectations and risk tolerance.

Choice of (a) Assured Fixed Returns (b) Variable Returns linked to market performance,

(c) Returns linked to market but with protection of capital. Investment options available for risk-

averse as well as risk taking investors Choice of stocks, bonds and money market funds.

-Decide how you wish to manage your investments

Switch amongst investment options any time and manage your portfolio, free of charges and

taxes Leave management of your portfolio entirely to us, if you do not have the time or

inclination.

-Flexibility to choose the insurance benefits you need.

You can choose the amount of life insurance and terminal illness benefit you need Get Optional

Insurance Benefits on suffering major diseases, hospitalization, accidental death or disablement

Premiums can be waived in case of your death or disablement, so that your plans are well

protected.

-Withdraw funds in case of need, after three years

-Make your WealthsuranceTM Plan quickly and easily

Choose a Ready Plan for typical needs. Develop a Custom Plan for special needs.

-Get tax benefits on contributions and benefits

Types of Investment Options

1)Monthly Interest Account Risk: Low

Monthly Interest Account gives you fixed interest on the account balance. You can choose to

deposit any proportion or all of your premiums into it, whether regular or Top-up Premiums.

Your Account will earn interest at the declared rate on the daily outstanding balance. The

balance in your Account, consisting of premiums deposited and interest earned, is available to

switch into any other investment option and for withdrawals as permitted.

Interest Rate: At the beginning of each month, IDBI Fortis will declare a credit rate by way of

interest for this Account. The interest rate will be declared out of the estimated income from the

underlying segregated portfolio of investments after (a) appropriation of fund management

charge of 1%, and (b) transfers to/from a smoothing reserve.

Investment Pattern: The Monthly Interest Account is a segregated fund which will invest

100% of the money in fixed income investments including government securities, treasury bills,

bank deposits, certificates of deposit, corporate securities, commercial paper, securitised papers,

structured products, money market instruments, etc. The fund may use derivatives to meet its

objective to the extent permitted by the applicable guidelines.

2)Guaranteed Return Funds Risk: Low

Monthly Interest Account gives you fixed interest on the account balance. You can choose to

deposit any proportion or all of your premiums into it, whether regular or Top-up Premiums.

Your Account will earn interest at the declared rate on the daily outstanding balance. The

balance in your Account, consisting of premiums deposited and interest earned, is available to

switch into any other investment option and for withdrawals as permitted.

Interest Rate: At the beginning of each month, IDBI Fortis will declare a credit rate by way of

interest for this Account. The interest rate will be declared out of the estimated income from the

underlying segregated portfolio of investments after (a) appropriation of fund management

charge of 1%, and (b) transfers to/from a smoothing reserve. Your account balance will grow

each day at the declared interest rate. Rates declared for the Account are available at

www.idbifortis.com The purpose of Monthly Interest Account is to provide a smoothed return to

the investors from out of the investment income of the underlying portfolio. For this purpose, a

reserve for smoothing of interest rate will be maintained.

Investment Pattern: The Monthly Interest Account is a segregated fund which will invest 100%

of the money in fixed income investments including government securities, treasury bills, bank

deposits, certificates of deposit, corporate securities, commercial paper, securitised papers,

structured products, money market instruments, etc. The fund may use derivatives to meet its

objective to the extent permitted by the applicable guidelines

3)Capital Guaranteed Funds

Risk: Medium

Capital Guaranteed Funds guarantee the return of at least the face value of each unit on the

specified maturity date. Returns are, however, not guaranteed and depend upon the performance

of the equity portfolio of the fund and the stock market.

http://www.idbifortis.com/

Available Funds: Capital Guaranteed Funds are segregated closed-ended funds with specified

maturity date. Each fund is available for investment for a limited period after the opening date

during which units are allotted at the Net Asset Value. Upon maturity, you receive the Net Asset

Value as on the maturity date or the face value of each unit you hold, whichever is higher.

Investment Strategy: Capital Guaranteed Funds are managed using capital protection techniques

including portfolio insurance strategies and manage the exposure to equity and debt with a view

to obtaining equity exposure consistent with capital protection and the guaranteed maturity

value. The funds will implement ‘ratcheting’ strategy as decided by IDBI Fortis. ‘Ratcheting’

may reduce futureexposure to equity. Capital Guaranteed Funds may also use derivatives to meet

their objectives to the extent permitted by

applicable guidelines.

Investment Pattern: Capital Guaranteed Funds will manage exposure to fixed income

investments and equities as stated below:

Range of Debt exposure: 40%-100% , Range of Equity exposure: 0-60%

Liquidity: Capital Guaranteed Funds mature on the specified date. However, if you wish you can

also redeem them before maturity at the Net Asset Value, but the guarantee will not apply.

Fund Management Charge: The funds carry a fund management charge of 2.25% p.a. which is

applied before computing the Net Asset Value.

4) Market Fund Options: For investing in stocks, bonds or money market

A)Equity Growth Fund Risk: High

B)Nifty Index Fund Risk: High

C)Bond Fund Risk: Medium

D)Income Fund Risk: Low

E)Liquid Fund Risk: Low

Tax Benefits of WealthsuranceTM Plan

Wealthsurance Plan gives you attractive tax benefits. Contributions by way of premiums are

eligible for deduction under Sec 80C. Insurance charges for health benefits are eligible for

deduction under Sec 80D. Benefits are tax-free under Sec 10(10D), allowing you to earn tax-free

income and benefits.

Tax Deduction on Contributions

The premiums you contribute in your Wealthsurance Plan are eligible for tax deduction under

Sec 80C up to a limit of Rs 1 lakh per year. In effect, you do not pay tax on that portion of your

income which you save in Wealthsurance Plan. If you choose Major Diseases Benefit or Hospital

Cash Benefit, the charges payable for them are eligible for deduction under Sec 80D.

Tax-Free Benefits

Under Sec 10(10D), all the Benefits you receive under Wealthsurance Plan are tax-free without

any limit. Thus the benefits are fully available to meet the needs of financial security of your

loved ones or to take care of your expenses as in the case of medical crises

Change your Plan if your needs change - Wealthsurance is designed to meet your changing

savings, investment and insurance needs. You can make changes to ur Plan if your needs

change. Wealthsurance is thus a flexible plan which can meet your needs, without the need to

have new plans.

- INTRODUCTION

HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance

companies, which offers a range of individual and group insurance solutions. It is a joint venture

between Housing Development Finance Corporation Limited (HDFC Limited), India's leading

housing finance institution and a Group Company of the Standard Life Plc, UK. As on February

28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds

26.00% of equity in the joint venture, while the rest is held by Others.

Their Key Strengths

Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard Life has the financial

expertise required to manage your long-term investments safely and efficiently.

Range of Solutions

We have a range of individual and group solutions, which can be easily customised to specific

needs. Our group solutions have been designed to offer you complete flexibility combined with a

low charging structure.

Track Record So Far

Our gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 crores.

The company has covered over 8,33,070 lives as on March 31, 2009.

TYPES OF ULIP PLANS OF HDFC-

1)PROTECTION PLANS

2)CHILDREN’S PLANS

3)RETIREMENT PLANS

4)HEALTH PLANS

5)SAVING AND INVESTMENT PLANS

Why do I need Investment Plans?

You have always given your family the very best. And there is no reason why they shouldn’t get

the very best in the future too. As a judicious family man, your priority is to secure the well-

being of those who depend on you. Not just for today, but also in the long term. More

importantly, you have to ensure that your family’s future expenses are taken care, even if

something unfortunate were to happen to you.

A big factor that you need to consider while building your wealth is inflation. It has a dual

impact on your hard-earned savings. Inflation not only erodes your current purchasing power but

also magnifies your monetary requirements for the future. Sample this: An 35 Year individual

needs to invest Rs. 36,000/- per year with 8% returns to build a corpus of Rs. 10,00,000/- by the

age of 50 Years.

TYPES OF INVESTMENT PLANS

1) HDFC Unit Linked Enhanced Life Protection II

You have always given your family the very best. And there is no reason why they should not

get the best in future too. With our HDFC Unit Linked Enhanced Life Protection II, This Unit

Linked Plan also gives you with an outstanding investment opportunity to maximise your

savings by providing you a choice of thoroughly researched and selected investments. In this

plan, the original Sum Assured chosen by you will be automatically increased by 5% each year

giving your family benefit of enhanced protection.

Advantages

This plan provides valuable protection to your family in case you are not around. In case

of your unfortunate demise during the policy term, we will pay the greater of your Sum

Assured (less any withdrawals you have made in the two years before your claim) and

your total fund value to your family.

In the long term, the key to building great maturity values is a low Fund Management

Charge (FMC) which is 1.75%.

You can choose to pay your premium as either Annually, Half-Yearly or Monthly.

o Switching: You can move your accumulated funds from one fund to another

anytime and Premium Redirection: You can pay your future premiums into a

different selection of funds,

2) HDFC Unit Linked Wealth Maximiser Plus

Ideally, just how spending comes to you, so must saving and investing. You are able to finance

your expenses and take care of your family’s needs in present times. However, to ensure that

family is able to maintain the same standard of living in the future, you need to make the right

kind of investment today. HDFC Unit Linked Wealth Maximiser Plus, a unique Single Premium

investment cum protection plan is a tailor made plan well suited to meet your long-term

investment needs and help you maintain your family’s financial independence. This plan also

gives regular Loyalty Units to boost your fund value each year.

Advantages

This plan not only strives to maximise your investment return and providing long-term

real growth for your money but also gives you an enhanced flexibility to suit your

protection needs.

This plan gives you regular Loyalty Units to boost your fund value every year. At the end

of every policy year, we will increase the number of units (Loyalty Units) in each of your

funds by 0.10% as long as your policy is not surrendered.

In case you opt for “1.1x” Sum Assured, this plan is also available with limited

underwriting wherein you will to fill a Short Medical Questionnaire (SMQ)

We have a Fund Management Charge (FMC) of 1.75% per annum (of the fund’s value)

You can change your investment fund choices through switching where you can move

your accumulated funds from one fund to another anytime

CURRENT

SCENARIO

Indian Insurance Scenario

Not many of us are aware of the fact that the life insurance industry of India is as old as it is in

any other part of the world. Oriental Life Insurance Company was the first Indian life insurance

company, which was started in 1818 at Kolkata. And within a span of 100 to 150 years, the

number grew more than 350 (over 250 in life and about 100 in non-life), mainly with regional

focus, flourished all across the country. However, the Government of India, concerned by the

unethical standards adopted by some players against the consumers, nationalised the industry in

two phases in 1956 (life) and in 1972 (non-life). The insurance business of the country was then

brought under two public sector companies, Life Insurance Corporation of India (LIC) and

General Insurance Corporation of India (GIC). Subsequently with the economic reforms that

were ushered in India in early nineties, the Government set up a Committee on Reforms (the

Malhotra Committee) in April 1993 to suggest reforms in the insurance sector. The Committee

recommended throwing open the sector to private players to usher in competition and bring more

choice to the consumer. The objective was to improve the penetration of insurance as a

percentage of GDP, which remains low in India even compared to some developing countries in

Asia.

Reforms were initiated with the passage of Insurance Regulatory and Development Authority

(IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in

place regulations in line with global norms. So far in the private sector, 12 life insurance

companies and 9 general insurance companies have been registered. Till then insurance was kind

of privilege or necessity ought to be meant for the high salaried and riches of this country. As

also a necessity only for some in case they needed to ensure tax savings, tax manipulations etc.

But with the coming of private players, rules of the game have changed. Never were common

men so rigorously targeted. It is today an industry which is growing at the rate more than 25%.

May be this is one of the major reasons why almost all global players are too keen to be in India.

Another could be the saturation of insurance markets in many developed economies.

The changes those have been bought in by privatization in the insurance sector can be

categorized into followings;

1. New Market Development

2. New Product Development

3. Customer Centric Approach

4. New Channel Development

FUTURE OF THE SECTOR

1 Indian insurance sector is likely to register unprecedented growth of 200% and attain a

size of Rs. 2000 billion by 2009-10

2 A private sector insurance business will achieve a growth rate of 140% as a result of

aggressive marketing technique being adopted by them against 35-40% growth rate of state

owned insurance companies.

3 In rural markets, the share of private insurance players would increase substantially as these

have been able to generate a faith among their rural consumers.

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

1) Research Design

The method applied in descriptive research is cross sectional studies field work and survey. My

study concerned with the specific prediction of distribution of insurance policy.

Sample Area

My working area was some parts of Delhi. I have collected my data in these areas. As we know

that those person will invest in insurance sector who is salaries or professional. I have targeted

those person who age is equal or more than 25-50years.

NATURE OF DATA

Data collection regarding the market share, products & services offered by different life

insurance company by visiting there corporate offices. This will help in identifying the Unique

Selling Proposition (USP) of different players in the market and by collecting the information

from the companies respondents and internet.

Developing Sample Design:

Sample design refers to number of items to be included in sample It refers to the technique

or procedure the researcher would adopt In selecting items from the sample.

Type of universe:

The universe is the entire group of items the researcher wishes to study and about

which they plan to generalize. Under this project type of universe include people

residing in delhi (west delhi).

Sampling Unit:

Sampling units are the persons, who have purchased the insurance plan in delhi

(west delhi).

Size of Sample:

Number of people surveyed. Generally large Sample more reliable result than small

sample. The sample Consist of 100 respondents.

Sampling Procedure:

Sampling procedure refers to technique Used in selecting the items for the sample.

Under this project selection of respondents is on the basis of convenience sampling.

Tools and Techniques :

For this survey Convenience- Sampling technique is used.

Method of data collection

Collection of brochures and pamphlets of different products offered by different players and

study them in order to compare and contrast the different insurance products across industry. It

will to find out the best product available in the market, in its category.

Data is the significant part of the research. Your all research depends upon your data. Whatever

data is collected by me during the internship in the IDBI fortis , I can divide the method the

collection of my data into two parts which are thus:-

a. Primary data

Primary data are those which are collected fresh and for the first time and thus happen to be

original in chapters. I have collected my data through phone calling and through direct

communication with respondents in one form or another or through personal interviews.

b. Secondary data

Secondary data are those data which are being already collected by someone else and which have

already been passed through the statistical process. I have collected my published date form of

the companies and Internet and the books, magazines and newspapers.

Working Procedure

In my summer training I have targeted Some parts of west Delhi. I have collected my data from

some parts of Delhi. Here I have to approach various detail of insurance product of IDBI fortis

and the other competitor of it, suggestions, its insurance plans. As a part of insurance plans I also

have to collect data in order to find out market share of IDBI fortis from our sample space.

During the period I was in constant touch with my area sales manager and I have to submit daily

report of my work and full information about phone calls and questioners. Questioner consisting

of open ended questions was used for collection the information.

Instrument Used

I have collected my data form field survey , internet and through phone calling. As I was doing

the work of meeting the persons and explaining them about the different insurance plans of the

IDBI fortis and other companies then I tried to fulfill my questioners.

LIMITATIONS OF THE STUDY

1 The scope of the project is limited to conceptual and marketing aspects of Life Insurance

Companies and doesn’t include Claim Settlement and the underwriting part of the

operations which are equally important aspect of learning.

2 Project is limited to IDBI fortis life insurance., Priority Circle branch, delhi, which is

branch dedicated to High Net-worth Individual .It excludes the analysis of low premium

paying segment of the people.

3 The major limitation was in terms of collecting the right information from the various

insurance players, as the insurance players resist in revealing their marketing strategies,

etc.

4 Lack of knowledge about the insurance plans is a barrier during conversation with

customers of the local market.

COMPARSION OF TWO ULIP PLANS OF TWO COMPANIES

Company Name

IDBI FORTIS LIFE

INSURANCE

HDFC STD. LIFE

INSRUANCE

Plan NameGuaranteed Return Funds

Risk

HDFC LIFE PROTECTION ll

ELIGIBILITY18 to 65 18 to 45.

Sum Assured Minimum-10% of invested

amount is guaranteed on

amount invested.

Prevailing unit price in the

market and fund value.

Premium

Minimum- Rs. 10,000

Maximum- no limit

Minimum – Rs. 12,000

Maximum- no limit

Lock in period3 years 5 years

Surrender allowedOnly After 3 years: no charges

Before lock in period-30% of outstanding premium

OP= difference between regular premium expected & received in the first two years.

Before 5 years- value of fund after deduction of surrender charges will be cease to be invested and will be held by them.

After 3 years- value of fund after deduction of surrender charges will be cease to be invested will given.

Death and MaturityTerminal Illness Benefit is equal to Sum at Risk (i.e. Sum Insured minus Fund Value)

They will pay balances units

at the prevailing unit price

and take the fund value.

Fund OptionThey are declared by the company time to time.

1 Liquid fund ll

2 stable managed fund

3 secure managed fund

4 defensive managed fund ll

5 balanced fund ll

ChargesFund mgt. charge- Fund management charged will be 1.5% on the fund value

Partial Withdrawal Charge- No withdrawals are permitted in the first three years.We can make Withdrawals whenever we need and as many time and charges.

Fund switching Charges

No charges are deducted and “N” number of switches are allowed.

Policy administration charges-

Rs. 60 charged per month

ALLOCATION CHARGES

Any year = 3.5 % - 2.5%

Fund Mgt. Charges- 1.75% annually charged of the fund value.

Partial Withdrawal Charge - . No withdrawals are permitted in the first 5 years. 6 withdrawals are allowed and after that Rs.250 chagred on each withdrawal.

Fund switching Charges- 24 switches allowed every policy year free. Subsequent switches will be charged at Rs. 100 per switch premium.

Policy administration charges- Rs. 60 charged per month.

ALLOCATION CHARGES

1ST YEAR = 65%

2ndYEAR- = 65%

3nd YEAR+ = 98%

COMPARSION OF TWO ULIP PLANS

Company Name

IDBI FORTIS LIFE

INSURANCE

HDFC STD. LIFE

INSRUANCE

Plan NameMonthly Interest Account

HDFC wealth maximiser

plus

ELIGIBILITY18 to 65 “1.1x” min- 18, max- 65

“5x” min- 18, max- 55

Sum Assuredfixed interest on the

amount invested based on

daily basis.

1.1 times on single premium

5 times on single premium.

Premium

Minimum- Rs. 10,000

Maximum- no limit

Minimum- Rs. 1,00,000

Maximum- no limit

Lock in periodChange the funds plan

whenever we require.

3 years

Surrender allowedAfter 3 years: no charges

Before lock in period-30% of outstanding premium

Before three years are passed- value will be deducted with surrender charge will cease.

After three years are passed- the surrender value will be above the units in the fund after deduction of surrender charge.

Death and MaturityTerminal Illness Benefit is

equal to Sum at Risk (i.e.

Sum Insured minus Fund

Value)

They will pay greater of the

sum assured less

withdrawals made during

the past two preceding years

and fund value

Fund OptionThey are declared by the company time to time.

1 Money plus fund

2 bond opportunity fund

3 large-cap fund

4 mid-cap fund

5 manager’s fund

ChargesFund mgmt. charge

Fund management charged will be 1.5% on the fund value

Partial Withdrawal Charge -

No withdrawals are permitted in the first three years.

We can make Withdrawals whenever we need and as many

time and charges on that policy.


No charges are deducted and “N” number of switches are allowed.

Fund Mgmt. Charges

1.75% annually charged of the fund value.

Partial Withdrawal Charge-.

No withdrawals are permitted in the first six years.

4th Policy year - 6%




24 switches allowed every policy year free. Subsequent switches will be charged at Rs. 100 per switch premium.

Respondent Profile: -

Respondent profile has been analyzed: -1. Occupation-

S. No. Particulars Response

A businessman 45

B professional 35

C students 10

D Housewife 10

Total respondents 100

X axis - occupation , y axis - respondents

INTERPRETATION :- In this chart, we can see that the major respondents are from business

and professional sector of the society. About 50% respondents are from busniess sector.

2. Do you have Insurance? If yes of which company?


A Yes 88

B No 12

Total Respondents 100

X axis- response , y axis- respondents

INTERPRETATION- In this chart we can see that respondents have taken insurance policies of different companies to secured their future.

WHICH COMPANY?

X axis - companies , y axis - respondents

INTERPRETATION:- In this chart, we can see that mostly respondents have already secured

under life insurance policies of different companies and major player in the market is LIC. Nearly 50% respondents have taken insurance policies.

S.No

Particulars Response

A LIFE INSURANCE COMPANY

52

B ICICI Prudential Life Insurance Co. Limited

12

C HDFC standard life insurance Ltd

16

D Reliance General Insurance Co. Limited

8

E Non- insurance policy holders

12


3. Awareness of IDBI fortis Life Insurance Company?


A Print media 25

B Electronic media 30

C Agents 35

D Others 10


X axis - mediums , y axis - respondents

INTERPRETATION:-

In this chart, we can see that the agents play major role in exploring the new companies policy’s

for explaining their companies importance and policies. Agents create great effect on the mind of

the customers as they are more aware and understanding of plans.

4. Do you know about Unit Linked Insurance Plans (ULIP)?


A Yes 60

B No 40


X axis - response , y axis - respondents

INTERPRETATION:-

On the basis of above analysis, we can say that people are aware of the ULIP plans of the

different companies in the market. Respondents are aware of the ulip plans of the respective

companies.

5. According to you, Insurance policies are for?


INTERPRETATION:- On the basis of above analysis, we can say that people mostly treat

insurance as a protection instrument. 67 people think insurance as a necessity for protection &

security and remaining think for tax savings and imposition of a burden of expenses.


A Necessity for protection security

67

B Imposition of a burden of expenses

17

C A compulsory tool for tax saving

16

Total respondents 100

6. Main consideration that a customer looks at while purchasing an Insurance Policy?


INTERPRETATION:- On the basis of above analysis, we can say that people purchase insurance policy mostly for the protection purpose. More than half of the people takes insurance for protection of their future.

S.No Particulars Response

A TAX 10

B SAVING 29

C PROTECTION 53

D PENSION 3

E INVESTMENT 5

total Respondents 100

7. What a respondent see while purchasing Insurance from the company?


INTERPRETATION :- On the basis of above analysis, we can say that people prefer the companies those have very highly goodwill in the market. And apart from this while purchasing they also use to give more weight age to return also.

S. No. Particulars %age

A Standing and goodwill of the company

35

B Product range and services of the company

17

C Advertisement being released by the company

13

D Possession of company’s policy by his relatives and friends.

10

E Returns of bonus declared by the company

25


8. Plan that a respondent prefers to buy?


INTERPRETATION :- On the basis of above analysis, we can say that people prefer to buy protection & children plans mostly. Respondents are concerned with protection pans because they are taking the plans to secured their future.


A Protection Plan 47

B Investment Plan 19

C Pension Plan 10

D Children Plan 24


9. Customers’ expectations from Life Insurance Companies?


A Innovative Products 5

B Attractive Rider 2

C Reasonable Premium 47

D Better Customer Service 24

E High Risk Coverage 22



INTERPRETATION:-

On the basis of above analysis, we can say that people expect better customer service from the

insurance companies & reasonable premium on their investment. People mainly go for the plan which will provide him sufficient returns by giving reasonable premium.

10.How do you rate IDBI fortis’s wealthsurance policy by other company insurance Policy?.


INTERPETATION:-

On the basis of above analysis, we can say that people are satisfied with the plans they have

bought, its that they are not aware of these ulip plans of this company. But there are certain doubts in the mind of respondents about the company and whether they should invest in it or not.


A GOOD 10

B AVERAGE 25

C BAD 10

D CANT SAY 55


FINDINGGENERAL FINDINGS

Agents play major role in awaring people about the benefits of insurance.

People think insurance as a protection tool.

People purchase insurance policy mostly for protection purpose and some of people for

saving.

The goodwill of the company also attracts customers toward a insurance company.

People also take insurance policy as a security for their children.

COMPANY ‘S POINT OF VIEW FINDINGS

Most of the people are already secured under life insurance policies of different

companies and major player in the market is LIC. About 50% respondents have taken

insurance policies.

The agents play major role in exploring the new companies policy’s for explaining their

companies importance and policies. Agents create great effect on the mind of the

customers as they are more aware and understanding of plans.

Around 67% people takes insurance as a necessity for protection & security and

remaining think for tax savings and imposition of a burden of expenses.

More than half of the people takes insurance for protection of their future and prefer

protection plans.

People expect better customer service from the insurance companies & reasonable premium on their investment. People mainly go for the plan which will provide him sufficient returns by giving reasonable premium.

CONCLUSION

On the basis of my study, I conclude that, both the companies are providing very good

facilities to their customers. IDBI fortis Life Insurance is the one that is providing wavier of

premium to its customer in case of maturity and in case of death of the life assured, whereas

HDFC standard life insurance company is not providing this facility to its customers.But due to

some reasons the market share of the HDFC standard life insurance company is more then IDBI

fortis may be because of brand image and reliability.

Both the companies have same lock in period i.e.3 years. Surrender charges of these companies

are different from each other. On maturity, both the companies provide the different amount with

refernce to market conditions. Charges taken to manage the fund are different in both the

companies.

SUGGESTIONS

Advertisement should be done on television and especially Posters and Banners. This will

greatly help in raising awareness level.

IDBI Company should show more commitment with the customers.

Private companies give better services to the customers as compared to public companies.

The IDBI company should create good relations and communication.

IDBI company should collaborate to spread awareness regarding the benefits of insurance

plans provided by the other companies.

Agents have got maximum influence on customers. They are the one who introduces the

prospect to different policies. So agents should be given full-fledged training and the

training should be strict.

BIBLIOGRAPHY

WEBSITES

www.idbifortis.com

www.economictimes.com

www.irdaindia.com

www.hdfcstandardlife.com

BROUCHERS

IDBI fortis life insurance HDFC Standard Life Insurance

QUESTIONNAIRE

I, SAHIL KOCHHAR, student of tecnia institute of advanced studies , pursuing my BBA,

carrying out a project work in partial fulfillment of my live project. I am undertaking a project

“COMPARITIVE ANALYSIS OF ULIP PLANS

WITH REFERENCE TO

(IDBI FORTIS

AND

HDFC STANDARD LIFE INSURANCE)”

In view of this, I hereby request you to give your feed back on the questionnaire given below.

Please note that your response will be kept confidential. Please mark the appropriate answer-

NAME ---------------------------------------------------------------------------

AGE ----------- Nationality ----------------------- Income ---------------

Contact number --------------------------------, --------------------------------

Address-----------------------------------------------------------------------------

Q1) Occupation

a) Businessman [ ] b) Professional [ ]

C) Students [ ] d) House wife [ ]

Q.2 ) Do u have Insurance? If yes of which company?

a)Yes b) No

WHICH COMPANY?

a) LIFE INSURANCE COMPANY [ ]

b) Reliance General Insurance Co. Limited [ ]

C) HDFC standard life insurance Ltd [ ]

D) Max New York Life Insurance Co. Ltd [ ]

E) ICICI Prudential Life Insurance Co. Limited [ ]

Q.3) According to you, Insurance policies are for? A) Necessity for protection security [ ]

b) Imposition of a burden of expenses [ ]

c) A compulsory tool for tax saving [ ]

Q.3) Awareness of IDBI fortis Life Insurance Company:-

A) PRINT MEDIA [ ] b) ELECTRONIC MEDIA [ ]c) AGENTS [ ] d) OTHERS [ ]

Q.5) Do you know about Unit Linked Insurance Plans (ULIP)?

a) Yes [ ] b) No [ ]

Q.6 ) Main consideration that a customer looks at while purchasing an Insurance Policy .

A) TAX [ ] B) SAVING [ ] C) PROTECTION [ ]

D) PENSION [ ]

E) INVESTMENT [ ]

Q.7) What a respondent see while purchasing Insurance from the company?

A) Standing and goodwill of the company [ ]

B) Product range of the company [ ]

C) Advertisement being released by the company [ ]

D) Services being given by the company [ ] E) Returns of bonus declared by the company [ ]

Q.8) Plan that a respondent prefers to buy?

a) Protection plan [ ]

b) Investment plans [ ]

c) Pension plan [ ]

d) children plan [ ]

Q.9) Customers’ expectations from Life Insurance Companies?

a) Innovative Products [ ]

b) Attractive Riders [ ]

c) Reasonable Premium [ ]

d) Better Customer Service [ ]

e) High Risk Coverage [ ]

Q.10) Is the respondent satisfied with the plan which I have bought ?

A) YES [ ] B) NO [ ] C) CANT SAY [ ]

Q.11) How do you rate IDBI fortis’s wealthinsurance policy by our other company insurance Policy?

A) Good [ ]

B) Very good [ ]

C) Average [ ]

D) Bad [ ]

E) can’t say [ ]

Thank you

Date: Signature

idbi fortis

Documents

idbi fortis company

study of life insurance

insurance sector

schemes of idbi fortis

summer training report

importance of insurance

summer training learning

idbi fortis lie insruance