DEVI AHILYA VISHWAVIDYALAYA, INDORE

MAJOR RESEARCH PROJECT on

“A Comparative Study of Perception of Working Professionals towards HDFC ULIP Plans & ICICI

ULIP Plans”

A Research Dissertation Submitted in Partial Fulfillment for the Award of the Degree of

Masters of Business Administration (2009-2011)

Submitted to: Submitted by:

Prof. Sarfaraz Ansari Jagdish Bokhare MBA IV SEM.

Roll No: - 9190530

CERTIFICATE FROM INTERNAL & EXTERNAL EXAMINER

This is to certify that “Jagdish Bokhare” of MBA (Full Time) Semester IV in Sanghvi

Institute of Management and Science, Indore has carried out a Major Research Project

titled “A comparative study of perception of working professionals towards

HDFC ULIP plans & ICICI ULIP plans”. The work done by him/her is genuine

and authentic.

The work carried out by the student was found satisfactory. We wish him/her all the

success in career.

Internal Examiner External Examiner

CERTIFICATE FROM CHAIRPERSON & FACULTY GUIDE

This is to certify that “Jagdish Bokhare” of MBA (Full Time) Semester IV in Sanghvi

Institute of Management and Science, Indore has carried out a Major Research Project

titled “A comparative study of perception of working professionals towards

HDFC ULIP plans & ICICI ULIP plans”.

The work carried out by the student was found satisfactory and it is as per the

guidance of faculty guide.

Signature of Chairperson Signature of Faculty Guide

DECLARATION

I, “Jagdish Bokhare”, a student of School of Management, Sanghvi Institute of

Management & Science, Indore, hereby declare that the work done by me to do the

Major Research Project titled “A comparative study of perception of working

professionals towards HDFC ULIP plans & ICICI ULIP plans ” is genuine and

authentic.

Signature of the Student

ACKNOWLEDGEMENT

I sincerely and religiously devote this folio to all the gem of persons who have

openly or silently left an ineradicable mark on this research so that they may be

brought into consideration and given their share of credit, which they genuinely and

outstandingly deserve.

This expedition of research encountered many trials, troubles and tortures along

the way. I am essentially indebted to my guide “Prof.Sarfaraz Ansari” for this

sweating learning experience. He/She overlooked my faults and follies, constantly

inspired and mentored via his proficient direction. It was a privilege to work under

his/her sincere guidance.

I express my thanks to Dr. Prashant Gupta, Director (MBA / PGDM.), Sanghvi

Institute of Management and Science, Indore for his considerate support whenever

and wherever needed. I honestly acknowledge the support provided by the

Chairperson, Prof. Gaurav Singh. I express my indebtedness to the management of

Sanghvi Institute of Management and Science, for inspiring us to grab and utilize this

opportunity.

With profound sense of gratitude, I would like to truthfully thank a recognizable

number of individuals whom I have not mentioned here, but who have visibly or

invisibly facilitated in transforming this research into a success saga.

Above all, I would like to conscientiously thank the Omnipotent, Omnipresent and

Omniscient God for His priceless blessings!

Signature of Student

CONTENT

 

CHAPTER Page No.   

I. INTRODUCTION 1

II. ICICI PRUDENCIAL 20

III. HDFC LIFE 22

IV. LITERATURE REVIEW 24

V. RATIONALE FOR THE STUDY 26

VI. OBJECTIVES OF THE STUDY 27

VII. LIMITATIONS 28

VIII. RESEARCH METHODOLOGY 29

IX. ANALYSIS AND INTERPRETATION 30

X. CONCLUSION 54

XI. REFRENCES 55

INTRODUCTION

Insurance is defined as a cooperative device to spread the loss caused by a particular

risk over a number of persons who are exposed to it and who agree to ensure

themselves against that risk.  Risk is uncertainty of a financial loss.  The insurance is

also defined as a social device to accumulate funds to meet the uncertain losses

arising through a certain risk to a person injured against the risk.

Life insurance is a form of insurance that pays monetary proceeds upon the death of

the insured covered in the policy. Essentially, a life insurance policy is a contract

between the named insured and the insurance company wherein the insurance

company agrees to pay an agreed upon sum of money to the insured's named

beneficiary so long as the insured's premiums are current.

The business of insurance is related to the protection of the economic value of assets.

Every asset has a value. The asset would have created through the efforts of the

owner. The asset is valuable to the owner, because he expects to get some benefits

from it. It is a benefit because it meets some of his needs. The benefits may be an

income or in some other form In the case of a factory or a cow, the product generated

by it is sold and income is generated. In case of motor car, it provides comfort and

convenience in transportation. There is no direct income. Both are assets and provide

benefits.

A well-developed and evolved insurance sector is needed for economic development

as it provides long term funds for infrastructure development and at the same time

strengthens the risk taking ability. It is estimated that over the next ten years India

would require investments of the order of one trillion US dollar. The Insurance sector,

to some extent, can enable investments in infrastructure development to sustain

economic growth of the country. The growing number of wealthier as well as aging

Indian middle class is set to offer a strong business potential for the country’s

untapped life insurance market.

The growth in the insurance sector was due to this immense growth that the

regulations were introduced in the insurance sector and in continuation “Malhotra

Committee” was constituted by the government in 1993 to examine the various

aspects of the industry. The key element of the reform process was participation of

overseas insurance companies with 26% capital.

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Creating a more competitive financial system suitable for the requirements of the

economy was the main idea behind this reform. Insurance is a federal subject in India.

There are two legislations that govern the sector- The Insurance Act- 1938 and the

IRDA Act- 1999. The insurance sector in India is like a full circle from being an open

competitive market to nationalization and back to a liberalized market again. Tracing

the developments in the Indian insurance sector reveals the 360 degree turn witnessed

over a period of almost two centuries. As the twentieth century has come to a close

and we have move into the third millennium, we can see many developments and

changes taking place around us with all the industries and firms within each industry

trying to keep pace with the changes and diverse needs of the people. Though for

decade together, marketers have regarded ‘customer’ as the king and evolved all

activities to satisfy him or her, giving this concept a momentum it is necessary to

understand the Perception and Expectations of the customer in respect various aspects

& attributes so as to design a successful and an acceptable product or service.

This can largely be attributed to the prevailing market situation. Not only has

competition become intense but over and above with the market being flooded with

many me-too products, the challenge before the marketer is to understand the

diversity of consumer expectations and offer goods/services accordingly. Today the

company image is built and made known by its customers.

Thus the success of the firm will be determined by how effective it has been in

meeting the diverse consumer needs and wants by treating each customer as unique

and offering products and services to suit his or her needs. Therefore today all the

firms are engaged in a process of creating a lifetime value and relationship with their

customers, a step towards developing knowledge regarding its customers’ needs is the

utmost important. The current study is an attempt to measure the various parameters

as perceived by the customers and to help the company in serving its customers in a

much better and efficient manner.

History of Insurance

Insurance has been known to exist in some form or other since 3000BC. The Chinese

traders, traveling treacherous river rapids would distribute their goods among several

vessels, so that the loss from any one vessel being lost, would be partial and shared,

and not total the Babylonial traders would agree to pay additional sums to lenders, as

the price for writing off the loans , in case of the shipment being stolen.

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The inhabitants of Rhodes adopted the principle of “general average”, whereby, if

goods are shipped together, the owners would bear the losses in proportion, loss

occurs, due to jettisoning during distress. (Captains of ship caught in storms, would

throw away some of the cargo to reduce the weight and restore balance. Such

throwing is called jettisoning) the Greeks had started benevolent societies in the late

7th century AD, to take care of the funeral and families of the member who died. The

friendly societies of England were similarly constituted. The Great Fire of London in

1666, in which more than 13000 house were lost, gave a boost to insurance and the

first fire insurance company, called the Fire Office, was started in 1680.

The origins of insurance business as in vogue at present, is traced to the Lloyds

Coffee House in London. Traders, who used to gather in the Lloyds coffee house in

London, agreed to share the losses to their goods while being carried by ship. The

losses used to occur because of pirates who robbed on the high seas or because of bad

weather spoiling the goods or sinking the ship. In India insurance 1818 with life

insurance being transacted by English company the oriental Life Insurance Co. Ltd.

The 1st Indian insurance company was the Bombay Mutual Assurance Society Ltd,

formed in 1870 in Mumbai.

Later, were establishing the Cooperative assurance in Lahore, the Bombay life

(originally called the swadeshi life), the Indian Mercantile, the new India and the

jupoter in Mumbai, and the Lakshmy in New Delhi. These were all Indian companies

started as a result of the swadeshi movement in the early 1900s.By the year 1956,

when the life insurance business was nationalized and the Life Insurance Corporation

of India (LIC) was formed on 1st September 1956, there were 170 companies and 75

provident fund societies transacting life insurance business in India. After the

amendments to the relevant law in 1999, the L.I.C. did not have the exclusive

privilege of doing life.

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Laws and Regulations

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.

(1) Subject to the provisions of this Act and any other law for the time being in force,

the Authority shall have the duty to regulate, promote and ensure orderly growth

of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1),

the powers and functions of the Authority shall include, -

(a) Issue to the applicant a certificate of registration, renews, modify, withdraw,

suspend or cancel such registration;

(b) Protection of the interests of the policy holders in matters concerning assigning of

policy, nomination by policy holders, insurable interest,

Settlement of insurance claim, surrender value of policy and other terms and

conditions of contracts of insurance;

(c) Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the insurance

and re-insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;

(h) calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organizations connected with the insurance business;

(i)control and regulation of the rates, advantages, terms and conditions that may be

offered by insurers in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act, 1938 (4 of 1938);

(j) Specifying the form and manner in which books of account shall be maintained

and statement of accounts shall be rendered by insurers and other insurance

intermediaries;

(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

(m) Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

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(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurer to finance schemes

for promoting and regulating professional organizations referred to in clause (f);

(p) Specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector.

Insurance

In low and economics, insurance is a form of risk management primarily used to

hedge against the risk of contingent loss.

“Insurance is the equitable transfer of the risk of a loss from one entity to another in

exchange for a premium and can be thought of a granted small loss to prevent a large

possibly devastating loss”.

Insurer: - An insurer is a company selling the insurance.

Premium: - Insurance is a factor used to determine the amount called the premium to

be charged for a certain amount of coverage.

Insurer’s business model: -

Profit = Earned premium + Investment – Incurred loss – underwriting

Expenses

Insurer makes money in two ways –

(1) Through underwriting, the process by which insurer select the risk to Insure and

decide how much in premium to change for accepting those risk.

(2) By investing the premiums that collect from insured parties.

Life Insurance

Life insurance or life assurance is a contract between the policy owner and the

insurer, where the insurer agrees to pay a sum of money upon the occurrence of the

insured individual's or individuals' death or other event, such as terminal illness or

critical illness. In return, the policy owner agrees to pay a stipulated amount called a

premium at regular intervals or in lump sums. There may be designs in some

countries where bills and death expenses plus catering for after funeral expenses

should be included in Policy Premium. In the United States, the predominant form

simply specifies a lump sum to be paid on the insured's demise. As with most

insurance policies, life insurance is a contract between the insurer and the policy

owner whereby a benefit is paid to the designated beneficiaries if an insured event

occurs which is covered by the policy

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The value for the policyholder is derived, not from an actual claim event, rather it is

the value derived from the 'peace of mind' experienced by the policyholder, due to the

negating of adverse financial consequences caused by the death of the Life Assured.

To be a life policy the insured event must be based upon the lives of the people named

in the policy.

Need of life insurance

Today, there is no shortage of investment options for a person to choose from.

Modern day investments include gold, property, fixed income instruments, mutual

funds and of course, life insurance. Given the plethora of choices, it becomes

imperative to make the right choice when investing your hard-earned money. Life

insurance is a unique investment that helps you to meet your dual needs - saving for

life's important goals, and protecting your assets.

Let us look at these unique benefits of life insurance in detail.

Protection

You need life insurance to be there and protect the people you love, making sure that

your family has a means to look after itself after you are gone. It is a thoughtful

business concept designed to protect the economic value of a human life for the

benefit of those financially dependent on him.

Retirement

Life insurance makes sure that you have regular income after you retire and helps you

maintain your standard of living. It can ensure that your post-retirement years are

spent in peace and comfort.

Savings and Investments

Insurance is a means to Save and Invest. Your periodic premiums are like Savings

and you are assured of a lump sum amount on maturity. A policy can come in

handy at the time of your child’s education or marriage! Besides, it can be used as

supplemental retirement income.

Tax Benefits

Life insurance is one of the best tax saving options today. Your tax can be saved twice

on a life insurance policy-once when you pay your premiums and once when you

receive maturity benefits.

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Myths of Insurance :

i) Insurance is just meant for saving tax.

ii) Insurance does not give good returns.

iii) Insurance products are not flexible.

Analysis of Investment in life insurance policies as per different

life stages

AGE STATUS INSURANCE

NEEDS

SUGGESTED

PRODUCTS

18yrs - 25yrs Unmarried 1.Go on a holiday

2.Buy a new Car

3.Set up a new house

4.Set up Interiors

5.Buy jeweler

Short Term

Endowment

Product

25yrs -30yrs Married

1.High Debt, high expenditure

Phase

2.Family dependency on your

income

3.Low accumulated wealth

4.Need for Planning Requirement

Temporary term or

whole life Product

30yrs - 45yrs Matured

couple

1.Retirement Planning

2.Wealth transfer or saving vehicles

3.Returns on investment

4.Opting for guaranteed Product

Profits or Unit

Linked Endowment

/

Deferred annuities

60yrs and

above

Post

Retirement

1.Protection in case you live long

2.Protection for spouse in case of

death

3.Wealth accumulation for children

1.Single Premium

annuities

2.Long term care

products

3.Whole life

products

18-25 (Unmarried)

30-45 years Couples with children

45 yrs and above Matured couple Retired

25-30 Married couples with no kids

No dependents/ liabilities therefore need for insurance

is less

Introduction of dependents. Start of financial planning – balance between asset creation &

protection

Peak earning age range. High asset

creation & build up of liabilities. Critical stage

for dependents Asset base build up & liabilities reduced/ taken care of. Need

for retirement planning more than

protection.

Need for protection low.

Greater need for regular income

flow.

Endowment / ULIP’s Endowment / ULIP’s + Term Annuities

At each stage, requirements, responsibilities and Financial needs differ

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Life Stage in Life Insurance

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Principles of life insurance

Indemnity

A contract of insurance contained in a fire, marine, burglary or any other policy

(excepting life assurance and personal accident and sickness insurance) is a contract

of indemnity. This means that the insured, in case of loss against which the policy has

been issued, shall be paid the actual amount of loss not exceeding the amount of the

policy, i.e. he shall be fully indemnified. The object of every contract of insurance is

to place the insured in the same financial position, as nearly as possible, after the loss,

as if he loses had not taken place at all. It would be against public policy to allow an

insured to make a profit out of his loss or damage.

Utmost Good Faith

Since insurance shifts risk from one party to another, it is essential that there must be

utmost good faith and mutual confidence between the insured and the insurer. In a

contract of insurance the insured knows more about the subject matter of the contract

than the insurer. Consequently, he is duty bound to disclose accurately all material

facts and nothing should be withheld or concealed. Any fact is material, which goes to

the root of the contract of insurance and has a bearing on the risk involved. It is only

when the insurer knows the whole truth that he is in a position to judge (a) whether he

should accept the risk and (b) what premium he should charge. If that were so, the

insured might be tempted to bring about the event insured against in order to get

money.

Insurable Interest

A contract of insurance affected without insurable interest is void. It means that the

insured must have an actual pecuniary interest and not a mere anxiety or sentimental

interest in the subject matter of the insurance. The insured must be so situated with

regard to the thing insured that he would have benefit by its existence and loss from

its destruction. The owner of a ship run a risk of losing his ship, the charter of the ship

runs a risk of losing his freight and the owner of the cargo incurs the risk of losing his

goods and profit. So, all these persons have something at stake and all of them have

insurable interest. It is the existence of insurable interest in a contract of insurance,

which distinguishes it from a mere watering agreement.

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Causa Proxima

The rule of causa proxima means that the cause of the loss must be proximate or

immediate and not remote. If the proximate cause of the loss is a peril insured against,

the insured can recover. When a loss has been brought about by two or more causes,

the question arises as to which is the causa proxima, although the result could not

have happened without the remote cause. But if the loss is brought about by any cause

attributable to the misconduct of the insured, the insurer is not liable.

Risk

In a contract of insurance the insurer undertakes to protect the insured from a

specified loss and the insurer receive a premium for running the risk of such loss.

Thus, risk must attach to a policy.

Mitigation Of Loss

In the event of some mishap to the insured property, the insured must take all

necessary steps to mitigate or minimize the loss, just as any prudent person would do

in those circumstances. If he does not do so, the insurer can avoid the payment of loss

attributable to his negligence. But it must be remembered that though the insured is

bound to do his best for his insurer, he is, not bound to do so at the risk of his life.

Subrogation

The doctrine of subrogation is a corollary to the principle of indemnity and applies

only to fire and marine insurance. According to it, when an insured has received full

indemnity in respect of his loss, all rights and remedies which he has against third

person will pass on to the insurer and will be exercised for his benefit until he (the

insurer) recoups the amount he has paid under the policy. It must be clarified here that

the insurer's right of subrogation arises only when he has paid for the loss for which

he is liable under the policy and this right extend only to the rights and remedies

available to the insured in respect of the thing to which the contract of insurance

relates.

Contribution

Where there are two or more insurance on one risk, the principle of contribution

comes into play. The aim of contribution is to distribute the actual amount of loss

among the different insurers who are liable for the same risk under different policies

in respect of the same subject matter. Any one insurer may pay to the insured the full

amount of the loss covered by the policy and then become entitled to contribution

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from his co-insurers in proportion to the amount which each has undertaken to pay in

case of loss of the same subject-matter. In other words, the right of contribution arises

when (I) there are different policies which relate to the same subject-matter (ii) the

policies cover the same peril which caused the loss, and (iii) all the policies are in

force at the time of the loss, and (iv) one of the insurers has paid to the insured more

than his share of the loss.

Products of life insurance

Most Insurance policies are a combination of Savings & Protection.

Products are formulated by either increasing or decreasing either one of these

components.

These combinations can be broadly divided into 4 groups

- Annuities & Pension

- Endowment Policies : Whole Life; Unit Linked etc

- ULIPs

- Term Insurance

A pension plan

A pension plan or an annuity is an investment that is made either in a single lump sum

payment or through installments paid over a certain number of years, in return for a

specific sum that is received every year, every half-year or every month, either for life

or for a fixed number of years.

Annuities differ from all the other forms of life insurance in that an annuity does not

provide any life insurance cover but, instead, offers a guaranteed income either for

life or a certain period.

Typically annuities are bought to generate income during one's retired life, which is

why they are also called pension plans. By buying an annuity or a pension plan the

annuitant receives guaranteed income throughout his life. He also receives lump sum

benefits for the annuitant's estate in addition to the payments during the annuitant's

lifetime.

Pension plans are perfect investment instrument for a person who after retiring from

service has received a large sum as superannuation benefit. He can invest the proceeds

in a pension plan as it is safest way of secured income for the rest of his life.

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One can pay for a pension plan either through an annuity or through installments that

are annual in most cases.

Types of Annuities / Pension Plans

Life Annuity:

Guarantees you a specified amount of income for your life. After death, the

amount invested is refunded to your nominee.

Guaranteed Period Annuity:

Provides specified income for your lifetime and guarantees that your nominee will

receive payments for a certain minimum number of years, even if you should die

earlier. In case you live longer than the specified minimum number of years, you

are entitled to receive annuity payments for your lifetime.

Annuity Certain:

Under this plan, the stipulated annuity is paid for a fixed number of years. The

annuity payments stop at the end of that period, irrespective of how much longer

you may live.

Deferred Annuities:

The premiums paid into such plans may be deducted from one’s taxable income at

the time of payment. In addition, the interest earned on the annuities is not taxed

immediately. But the proceeds of the annuity will be taxable when they are paid to

you.

A whole life policy

As the name suggests, a Whole Life Policy is an insurance cover against death,

irrespective of when it happens.

Under this plan, the policyholder pays regular premiums until his death, following

which the money is handed over to his family.

This policy, however, fails to address the additional needs of the insured during his

post-retirement years. It doesn't take into account a person's increasing needs either.

While the insured buys the policy at a young age, his requirements increase over time.

By the time he dies, the value of the sum assured is too low to meet his family's

needs. As a result of these drawbacks, insurance firms now offer either a modified

Whole Life Policy or combine in with another type of policy a whole life policy runs

as long as the policyholder is alive. As risk is covered for the entire life of the

policyholder, therefore, such policies are known as whole life policies.

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A simple whole life policy requires the insurer to pay regular premiums throughout

the life. In a whole life policy, the insured amount and the bonus is payable only to

the nominee of the beneficiary upon the death of the policyholder. There is no

survival benefit as the policyholder is not entitled to any money during his / her own

lifetime.

Whole life policies have a major drawback in the sense that the policyholder is not

entitled to any money during his or her own lifetime. Hence such a policy is suitable

only in a few, very specific cases. Suppose a person buys a whole life policy for say

25 years at the age of thirty when his children are young and the family needs

protection. By the time he is 55 his children may be well settled, no longer truly

needing the protection the whole life policy provides. On the other hand, he would

probably require the money for himself and his wife for the retired life but this would

not be possible since the sum assured is payable only when the policy holder dies.

An endowment policy

An endowment policy covers risk for a specified period, at the end of which the sum

assured is paid back to the policyholder, along with the bonus accumulated during the

term of the policy. An endowment life insurance policy is designed primarily to

provide a living benefit and only secondarily to provide life insurance protection.

Therefore, it is more of an investment than a whole life policy.

Endowment life insurance pays the face value of the policy either at the insured's

death or at a certain age or after a number of years of premium payment. Endowment

policy is an instrument of accumulating capital for a specific purpose and protecting

this savings program against the saver's premature death.

Premium on endowment policies is payable for the full term of the endowment policy

unless, the insurer dies earlier. When compared to whole life policies, the premium

rates for endowment policies are higher and the bonus rates lower. But one of the

major attractions of endowment policies is that they provide a return on premium

payments, when the policy comes to an end. The endowment received at the maturity

of the policy can be used for buying an annuity policy to generate a monthly pension

for the whole life. Endowment policies are one of the most popular insurance plans.

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Apart from providing financial risk cover in case the insurer's-who is usually a

family's breadwinner-premature death, the insurance amount is also repaid once this

risk is over. The endowment amount paid at the maturity of the policy can be used for

meeting major expenditures such as children's education and marriage, etc.

Types of endowment plan:-

Pure endowment: - Where the sum assured is payable to policyholders either

on survival or death within endowment period.

Joint endowment: - where the policy covers the risk on two or more lives

under the single policy.

Marriage endowment: - where the policy is designed to meet the marriage

financing needs of the family member of the policy holder

Unit Linked Insurance Plan (ULIP)

Unit linked insurance plan (ULIP) is life insurance solution that provides for the

benefits of risk protection and flexibility in investment. The investment is denoted as

units and is represented by the value that it has attained called as Net Asset Value

(NAV). The policy value at any time varies according to the value of the underlying

assets at the time.

In a ULIP, the invested amount of the premiums after deducting for all the charges

and premium for risk cover under all policies in a particular fund as chosen by the

policy holders are pooled together to form a Unit fund. A Unit is the component of the

Fund in a Unit Linked Insurance Policy.

The returns in a ULIP depend upon the performance of the fund in the capital market.

ULIP investors have the option of investing across various schemes, i.e., diversified

equity funds, balanced funds, debt funds etc. It is important to remember that in a

ULIP, the investment risk is generally borne by the investor.

In a ULIP, investors have the choice of investing in a lump sum (single premium) or

making premium payments on an annual, half-yearly, quarterly or monthly basis.

Investors also have the flexibility to alter the premium amounts during the policy's

tenure. For example, if an individual has surplus funds, he can enhance the

contribution in ULIP. Conversely an individual faced with a liquidity crunch has the

option of paying a lower amount (the difference being adjusted in the accumulated

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value of his ULIP). ULIP investors can shift their investments across various

plans/asset classes (diversified equity funds, balanced funds, debt funds) either at a

nominal or no cost.

Expenses Charged in a ULIP

Premium Allocation Charge-

A percentage of the premium is appropriated towards charges initial and renewal

expenses apart from commission expenses before allocating the units under the

policy.

Mortality Charges-

These are charges for the cost of insurance coverage and depend on number of

factors such as age, amount of coverage, state of health etc.

Administration Charges-

This is the charge for administration of the plan and is levied by cancellation of

units.

Term life insurance policy

Term life insurance policy covers risk only during the selected term period. If the

policyholder survives the term, the risk cover comes to an end. Term life policies are

primarily designed to meet the needs of those people who are initially unable to pay

the larger premium required for a whole life or an endowment assurance policy.

No surrender, loan or paid-up values are granted under term life policies because

reserves are not accumulated. If the premium is not paid within the grace period, the

policy lapses without acquiring any paid-up value. A lapsed policy can be revived

during the lifetime of the life assured but before the expiry of the period of two years

from the due date of the first unpaid premium on the usual terms. Accident and / or

Disability benefits are not granted on policies under the Term plan.

Term life policies are the cheapest form of insurance. Premiums in a term policy pay

for the insurance and no part of the premium in a term life insurance policy is used for

investment purposes. Term life policies are the cheapest form of insurance. Premiums

in a term policy pay for the insurance and no part of the premium in a term life

insurance policy is used for investment purposes. The length of a term life insurance

policy varies from 5 to 30 years.

Many people prefer term insurance to provide their families with the security cover,

and then use the additional funds they would have paid into an endowment or other

15

life insurance policy to make investments of their own choosing. Term life policies

are suitable for those who need to provide financial security to their family but are

unable to pay the larger premium required for a Whole Life or Endowment policy

Claim settlement procedure

Under Life insurance, claims can arise on maturity of policy or death of the

policyholder.

The companies send intimation at least 2 months before the maturity date. If the

notice of maturity is not received and the date of maturity is known to the

policyholder, then the policyholder can take the necessary steps to get the due

Maturity amount

Claims Procedure on Death (accidental or natural)

Intimation about death of policyholder should be given to LIC by any relative/

nominee/ assignee of the deceased policyholder which should contain the information

Death certificate

Date, reason & place of death

Policy Number/s

Claims Procedure on Maturity

On maturity of policy, the policyholder has to submit certain requirements on

maturity of the policy

Submit the policy document (if not in the custody of LIC as security for loan)

to the concerned branch office as mentioned on the policy

Collect discharge form no. 3825, put a revenue stamp & sign it, also get your

signature attested by a witness and submit it to LIC

Submit a proof of age document (if age has not been admitted earlier)

Submit Assignment/ Re-assignment Deed if any

Existence certificates in case of Children's Deferred Assurance and Pure

Endowment policies

On Death (accidental or natural)

If the policyholder or Life Assured dies during the term of the policy, a death claim

arises. Death claims are of two types

Early Death Claim - Claims arising within 2 years after date of risk/ revival/

reinstatement are termed as Early Claims or "Premature Claims".

16

They can be classified into two groups

1. Those having arisen within 2 years from the date of acceptance or risk or

revival

2. Those having arisen after 2 years but within 3 years of acceptance of risk or

revival

Non Early Claim - Claims arising more than 2 years after the date of risk/ revival are

called as Non-Early Claims. However, the policy should be in force for at least 3

years at the time of death of Life Assured.

For claiming the benefit, the nominee or any person related may apply to Insurance

Company and the following requirements are required further for settlement of claim:

Policy Document

If death has occurred due to an accident, then Police Panchnama & Senior

Divisional Manger's verdict are required

Medical attendants' report (In proforma given by the insurance company)

Claimants' statement (in proforma given by the insurance company)

Death certificate

If the Life assured has been working before his or her death then the

employer's certificate for last 5 years relating to leave record along with

details of medical leave taken and reasons supported with photocopies of

certificates issued by medical practitioner.

The following documents should be submitted if death occurs after 3 years from the

date of risk covered

Policy Document

Death Certificate

Documentary evidence of age if the age was not admitted at the time of

issuing the policy

Claimant's statement (Claim Form 'A')

Evidence of Title to the deceased estate if policy is not nominated, assigned or

issued under MWP Act.

If death is due to an accident the Police Panchnama, Senior Divisional

Manager's verdict for claiming Double Accident Benefit

Ex-gratia Settlement of Death Claims-

Ex-gratia Settlement of Death Claims are not a right claim but on grounds of

17

Humanity presently LIC is giving such claim amount for the policies which are not in

force but

If Death occurred after the expiry of grace period of premium due date then

Full Sum Assured along with the bonus will be payable as Ex-gratia settlement

If Death occurred after three months but less than six months after the expiry

of first unpaid premium date half of the Sum Assured without bonus will be

paid as Ex-gratia

If the death occurred between six months and one year from the due date of

the first unpaid premium date, claim may be considered to the extent of the

proportionate notional paid-up value on the basis of actual premium paid.

Double Accident Benefit

The Insurance Company is not liable for any loss or damage after the expiry of 12

months from the date of loss unless the claim itself is the subject of pending action or

arbitration.

If the insurance company disclaims liability then such claims have to be made the

subject matter of a suit in a court of law within 12 calendar months from the date of

the disclaimer. In case the dispute refers only to the amount of payment claimed then

the matter has to be compulsorily referred to arbitration as per the provisions of the

Indian Arbitration Act.

Advantages of Life Insurance

It is a general belief that life insurance is meant only for those with families. It is true

that Life Insurance Policies like whole-life insurance, joint-life-insurance, pension-

life-insurance etc are essential for family's financial security, but they are equally

important for individuals. Term Insurance policies protect your financial resources

against the uncertainties of life so you can protect your family's future.

Some of the life insurance advantages are:

If an estate owner has not accumulated enough assets for his family,

Insurance quote helps create an instant estate for the sake of the Family’s

security.

Life Insurance provides the option to pass equal assets to the children who are

not active in the Family business at the time the family business is passed on.

Life Insurance policies can help secure the future of children for

college/educational purposes as the amount of life Insurance Policy increases

on a minor’s or parent’s life.

18

The growth of a cash-value policy is tax-deferred - you do not pay taxes on the

cash value accumulation until you withdraw funds from the policy.

Life Insurance can be useful in paying estate taxes, along with other estate

settlement amounts. Federal Estate Taxes are due nine months after death.

If there’s a Business Transfer, life insurance can provide ready cash to finance

a transaction between business owners who are ready to buy the deceased

owner’s share from his or her estate after death.

If there’s a home mortgage, one can pass the family residence to their

spouse/children to free them of any mortgage if one has a Life Insurance

Policy for the same. It is preferred to have a decreasing term policy that

decreases in face amount as the mortgage balance is paid down.

Life Insurance helps retain your Business from the loss of a key employee.

Untimely death of a key employee can pose severe financial loss to the

business.

The right insurance proceeds can provide liquidity to pay off personal loans or

business loans.

Charitable Remainder Trusts provide tax benefits. Life Insurance helps replace

a charitable gift.

A lot of Insurance products presently provide good returns, which could be a

beneficial way for saving necessary funds for retirement years.

Benefits are available immediately and may be used to help pay expenses such as

final illness and funeral costs, eliminating the need to sell estate assets to cover these

costs.

19

ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, one

of the foremost financial services companies of India and Prudential plc, one of the

leading international financial services group headquartered in the United Kingdom.

ICICI Prudential was amongst the first private sector life insurance companies to

begin operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September 30, 2010)

with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the

period April 1, 2010 to September 30, 2010, the company garnered Rs 7,267 crores of

total premiums and has underwritten over 10 million policies since inception. The

company has a network of over 1,500 offices and over 1, 60,000 advisors, as on

September 30, 2010. The company has assets held over Rs. 65,000 crores as on

September 30, 2010.

For the past nine years, ICICI Prudential Life has maintained a wide range of Life

Insurance products that meet the needs of the Indian customer at every step in life.

ICICI Prudential Life recently completed 10 years on the Indian Insurance space on

12th December 2010.

ICICI Prudential

Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance

has been one of the earliest private players. Since the time, ICICI Pru Life has been

the leader in terms of market share as indicated by the IRDA (Insurance Regulatory

and Development Authority, the regulator for Indian Insurance Industry) at its

website.

During 2007-08, the organization's focus on rural business has proved its complex

project execution capability and strong partnerships for customer servicing.

In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK

Healthcare to settle insurance claims of its users.

ICICI Prudential's life insurance products may be loosely categorized under four

forms- Life Plans (further categorized into Term Plans and Wealth Plans), Child

Plans, Retirement Plans and Health Plans.

20

Under Life Insurance Plan category it offers term plans like i-Protect online term plan,

ICICI Pru Pure-Protect and ICICI Pru Life Guard, and ULIP wealth plans like ICICI

Pru Life Stage Wealth II, ICICI Pru Life Link Wealth SP, ICICI Pru Pinnacle Super

etc.

Under the Child / Education Plan category it offers products like ICICI Pru Smart Kid

regular premium and ICICI Pru Smart Kid Premier

Under the Retirement Insurance Plan category it offers products like ICICI Pru

Forever Life & ICICI Pru Life Link Pension SP.

Under the Health Insurance Plan category it offers products like ICICI Pru Health

Saver & ICICI Pru Hospital Care II.

Life Insurance Plan

ICICI Pru i-Protect Term Plan is a term insurance plan available online only.

ICICI Pru Pure-Protect is a term plan without Return of Premium.

Retirement Insurance Plan

ICICI Pru Life Link Pension SP is a single premium pension policy that

provides you the opportunity to enjoy regular income as pension post

retirement by paying just a single premium.

ICICI Pru Forever Life is a regular premium deferred pension plan that

provides the security of life cover during the Accumulation Phase and offers

five ways to get your pension, after retirement.

Child / Education Plan

ICICI Pru Smart Kid Regular Premium is a regular premium, traditional plan

with two options to receive guaranteed educational benefits, no matter what

the uncertainties in your life.

ICICI Pru Smart Kid Premier is a ULIP plan which ensures your child’s

education continues even if you are not around.

Health Insurance

ICICI Pru Health Saver is a comprehensive whole of life health insurance plan

that takes care of hospitalization costs as well as all your health care needs.

ICICI Pru Hospital Care II is a fixed benefit hospitalization and surgical plan

that offers you and your family, fixed payouts at various stages of

hospitalization in addition to benefit received from other medical insurance

plans.

21

HDFC LIFE

HDFC Life, one of India's leading private life insurance companies, offers a range of

individual and group insurance solutions. It is a joint venture between Housing

Development Finance Corporation Limited (HDFC), India's leading housing finance

institution and Standard Life plc, the leading provider of financial services in the

United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding)

Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others.

HDFC Life's product portfolio comprises solutions, which meet various customer

needs such as Protection, Pension, Savings, Investment and Health. Customers have

the added advantage of customizing the plans, by adding optional benefits called

riders, at a nominal price. The company currently has 29 retail and 5 group products

in its portfolio, along with five optional rider benefits catering to the savings,

investment, protection and retirement needs of customers.

HDFC Life continues to have one of the widest reaches among new insurance

companies with more than 500branches servicing customer needs in over 700 cities

and towns. The company has a strong base of Financial Consultants.

HDFC Limited

HDFC Limited, India's premier housing finance institution has assisted more than 3.8

million families own a home, since its inception in 1977 across 2400 cities and towns

through its network of over 289 offices. It has international offices in Dubai, London

and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to

assist NRI's and PIO's to own a home back in India. As of March 2011, the total asset

size has crossed more than Rs. 1, 32,727crores including the mortgage loan assets of

more than Rs.1, 17,126 crores. The corporation has a deposit base of over Rs. 24,625

crores, earning the trust of nearly one million depositors. Customer Service and

satisfaction has been the mainstay of the organization. HDFC has set benchmarks for

the Indian housing finance industry. Recognition for the service to the sector has

come from several national and international entities including the World Bank that

has lauded HDFC as a model housing finance company for the developing countries.

HDFC has undertaken a lot of consultancies abroad assisting different countries

including Egypt, Maldives, Mauritius, and Bangladesh in the setting up of housing

finance companies.

22

Standard Life Plc.

Established in 1825, Standard Life Plc. is a leading provider of long term savings and

investments to around 6 million customers worldwide. A Headquartered in

Edinburgh, Standard Life has around 9,000 employees across the UK, Canada,

Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. The

Standard Life group includes savings and investments businesses, which operate

across its UK, Canadian and European markets; corporate pensions and benefits

businesses in the UK and Canada; Standard Life Investments, a global investment

manager, which manages assets of over £157bn globally; and its Chinese and Indian

Joint Venture businesses. A At the end of April 2011 the Group had total assets under

administration of a £198.4bn. Standard Life plc is listed on the London Stock

Exchange and has approximately 1.5 million individual shareholders in over 50

countries around the world.

23

LITERATURE REVIEW

Ashok Khurana & Kanika Goyal (2010), “Exploration and Analysis of Structure and

Growth Performance of Selected ULIPs” In this research paper it is found that

Insurance in India has been emerging as an important and profitable business. Every

insurer wants to capture the maximum share in the market and is offering both Unit

Linked Insurance Plans (ULIP) and traditional plans.

C. John Williams (2009) “A Comparative Study and Analysis of Unit Linked

Insurance Plans (ULIPs)-An IDBI FORTIS Perspective” In this research it was found

that age plays a major role in deciding the investment patterns of people as generally

the younger class of people tend to take more risk and invest in various instruments

more frequently in a year (2.10 times a year) when compared with the older class of

people (1.46 times a year).

Prof (Dr) Roshan Lal & Ashok Khurana (2010), “children insurance plans: a

collective and analytical study of selection life insurance” In this research various

alternatives were found to secure the financial future of child. The study observed that

child insurance plan can be started with annual premium as low as Rs10000 for Smart

kid new ULRP of ICICI Pru; it is followed by Young Star Plus II of HDFC SL with

annual premium of Rs12000. The minimum annual premium is on the higher side,

i.e., Rs20000 for Smart Steps plus of Max New York Life.

Siddiqui S. (2009) conducted a research on the topic, “Indian Life Insurance Sector: A

Overview.” This paper produced an overview of present position of Life Insurance

Sector in India and study various economic indicators related to all Life Insurance

Companies operating in India. He revealed that the history of life insurance in India

dates back to the year 1818, with the Oriental Lie Insurance Company in Calcutta.

Thipathi Deva Sena et al (2007) conducted research on, “A Study on Consumer

Preference and Comparative Analysis of All Life Insurance Companies”. The study

observed that the insurance industry in India has seen an array of changes in the past

one decade. The year saw an up rise in the Indian insurance sector as major structural

changes took place with the ending of the government monopoly and the route of the

24

Insurance Regulatory and Development Authority (IRDA) Bill lifting all entry

restrictions for private players and allowing foreign players with some entry

restriction and limits on direct investment ownership.

Preeti Kakar & Rajesh Shukla,” The Determinants of Demand for Life Insurance in an

Emerging Economy—India” Based on primary data generated through the National

Council of Applied Economic Research’s (NCAER) National Survey of Household

Income and Expenditure (NSHIE), this article attempts to identify determinants of life

insurance ownership in the country. An analysis using logistic regression has

corroborated that insured households tend to be more prosperous, more educated and

more optimistic about future security than non-insured households.

Dr.Ram Pratap Sinha & biswajit chatterjee (2006), “Are Indian life insurance

companies cost efficient?” The present paper estimated cost efficiency of the Life

insurance companies operating in India for the period 2002-03 to 2006-07 using the

new cost efficiency approach suggested by Tone (2002). The results suggest an

upward trend in cost efficiency of the observed life insurers between 2002-03 and

2004-05. However, the trend was reversed for the next two years i.e. 2005-06 and

2006-07.This has been so because of the fact that during the initial years of

observation mean cost efficiency of the private life insurers was rising but the trend

was reversed in 2005-06 and 2006-07.

25

RATIONALE

The study is being conducted to evaluate the perception of professionals towards Ulip

plan of HDFC and ICICI and to analyze their preference over the plans.

26OBJECTIVE

To a comparative study of perception of working professionals towards HDFC

ULIP plans &ICICI ULIP plans.

27LIMITATIONS

In spite of every care taken on the part of the researcher there are certain limitations

which could not be overcome:

Sample size is limited to 100 customers and may not adequately represent the

whole market.

The research is confined to a certain part of Indore.

The above are some of the aspects which posed real problems in the way of

completion of the research work but the majority of respondents were cooperative.

28RESEARCH METHODOLOGY

The study

A comparative study of perception of working professionals towards HDFC Ulip plans & ICICI ulip plans .study based on quantitative research

The sample

The sample size is 100 and the respondents are from Indore city only.

The tools for data collection

Data will be collected using self designed questionnaire. The study is based on

primary and secondary data and primary data on the working professnal preference

are to be collected directly from the people through self designed questionnaire.

Tools for data analysis

The data analysis of the above study would be based on the appropriate statistical

tools.

29

ANALYSIS AND INTERPRETATION

Q.2. Gender

Gender No. of Respondent 100Male 55Female 45

Male Female0

20

40

60

80

100

Gender

MaleFemale

Interpretation: - Out of 100 respondents 55% are male and 45% are female. It

shows that male candidate is more than female.

30Q.3. Age (In Yrs)

Age (In Yrs) Below 30 4030-45 3045-60 20Above 60 10

Below 30 30-45 45-60 above 600

20

40

60

80

100

Age

Below 3030-4545-60Above 60

Interpretation:

Out of 100 respondents 40% are below 30 years age, 30% are between 30-45

years, 20% are between 45-60 Years and 10% are Above 60 Years old.

It shows that maximum people are from below 45 years old.

31

Q4. Occupation

Occupation Govt. Ser. 15Pvt. Ser. 38Business 37Agriculture 10

Govt S. Pvt. S Business Agriculture05

10152025303540

Occupation

Govt. S.

Pvt. S.

Business

Agricul-ture

Interpretation:-

Out of 100 respondents 15% are Govt. Employee, 38% are Pvt. Servant, 37% are

Businessman and 10% are Agriculture.

So, people from Pvt. Sector and business larger than other occupation.

32Q.5. Annual Income

Annual Income 150000-250000 40250000-350000 35350000-450000 15450000-above 10

1.5-2.5 2.5-3.5 3.5-4.5 4.5-above0

5

10

15

20

25

30

35

40

Anual Income (in lacs)

1.5-2.5

2.5-3.5

3.5-4.5

4.5-above

Interpretation:-

Out of 100 respondents 40% are between 1.5 – 2.5 lacs annual income,

35% are between 2.5-3.5 lacs annual income, 15% are between 3.5-4.5 lacs annual

income and 10% are above 4.5 lacs annual income. It is clear that people who have

below 3.5 lacs annual income invest more in ULIP.

33

Q.6. Do you have any insurance policy?

Have Insurance Policy Persons Yes 80NO 20

Yes No0

1020304050607080

Have Insurance Policy ?

Yes

No

Interpretation:-

Out of 100 respondents 80% are have insurance policy and 20% are

haven’t insurance policy persons. Maximum number of people have insurance policy.

34

Q.7. Why has you invested in ULIP?

Invested in ULIP Insurance 70Investments 30

Insurance Investment0

10

20

30

40

50

60

70

Why have you invested in ULIP?

Insurance

Invesments

Interpretation:-

Out of 100 respondents 70% people are invest for insurance and 30%

people are invest for investments in ULIP. Maximum people invest for insurance

purpose.

35Q.8. How long do you plan to stay invested in ULIP?

Plan to stay invested in ULIP 3-5 Year 405-7 Year 307-10 Year 2010-20 Year 10

3-5Yr 5-7Yr 7-10Yr 10-20Yr05

10152025303540

How long do you plan to stay invested in ULIP?

3-5Yr

5-7Yr

7-10Yr

10-20Yr

Interpretation:-

Out of 100 respondents 40% people are invest for 3-5 years, 30% people

are invest for 5-7 years, 20% people are invest for 7-10 years and 10% people are

invest 10-20 years in ULIP.

Maximum people want to stay below 7 years in ULIP.

36Q.9 Most Preferred from of investment?

Most preferred from of investment ULIP 35M.F 25Equity trading 25Bank saving 15

ULIP M.F. Equity Trad-ing

Bank Saving05

101520253035

Most preferred form of investment

ULIP

M.F.

Equity Trading

Bank Saving

Interpretation:-

Out of 100 respondents 35% people are invest in ULIP, 25% people are

invest in M.F., 25% people are invest in Equity Trading. Most people prefer ULIP for

investment.

37

Q.10 which companies policy owned by you?

Companies policy owned by you ICICI 35HDFC 50KOTAK Mahindra 10Max Newyork 5

ICICI HDFC Kotak M. Max N.05

101520253035404550

Company's policy owned by you?

ICICI

HDFC

Kotak M.

Max N.

Interpretation:-

Out of 100 respondents 35% people are own ICICI Policies, 50% people

are own HDFC Policies, 10% people are own KOTAK Mahindra Policies and 5%

people are own Max Newyork Policies. Maximum numbers of people have HDFC

policy.

38Q. 11. Comparison of various policies is important before selecting one.

Various policies is important before selecting one Strongly agree 20Agree 40Disagree 25Neutral 15

Interpretation:-

Out of 100 respondents 20% people are Strongly agree, 40% people are only

agree, 25% people are Disagree and 15% people are Neutral about Comparison of

various policies is important before selecting one.

Maximum numbers of people are agreeing for comparison before investment.

39Q. 12. Which plan you will prefer in ULIP for investment?

Plan you will prefer in ULIP for investment Child 30

pension 28 Health 32 No Idea 10

Child Pension Health No. Idea05

101520253035

which plan you will prefer in ULIP for investment?

Child

Pension

Health

No. Idea

Strongly Agree

Agree Disagree Neutral0

10

20

30

40

Comparison of various policies is important before selecting one.

Strong AgreeAgreeDisagreeNeutral

Interpretation:-

Out of 100 respondents 30% prefer for child, 28% prefer for

pension, 32% prefer for Health and 10% People have No Idea in ULIP for investment.

Most of the people prefer health and child plan in ULIP.

40Q. 13. Which company you will prefer for ULIP Policy?

Company you will prefer for ULIP policy ICICI 32 HDFC 40 KOTAK Mahindra 20 Max Newyork 8

ICICI HDFC KOTAK M. MAX N.0

5

10

15

20

25

30

35

40

Company you will prefer for ULIP Policy

ICICI

HDFC

KOTAK M.

MAX N.

Interpretation:-

Out of 100 respondents 32% prefer for ICICI, 40% prefer for

HDFC, 20% prefer for KOTAK Mahindra and 8% people are prefer for Max

Newyork for ULIP Policy. Most of the people prefer HDFC for ULIP policy.

41Q. 14. How much percent of your income you invest yearly?

Income invest yearly in % 0-20% 40 20-35% 38 35-50% 14 50%&above 8

0-20 20-35 35-50 50-ABOVE0

5

10

15

20

25

30

35

40

INCOME INVEST YEARLY IN %

0-20

20-35

35-50

50- ABOVE

Interpretation:-

Out of 100 respondents 40% people are income invest yearly in

between 0-20, 38% people are income invest yearly in between 20-35, 14% people

are income invest yearly in between 35-50 and 8% people are income invest yearly in

above 50. Most of the people prefer below 35% of their income for investment.

42Q. 15. What is your normal preferred size of investment?

Normal preferred size of investment < 50000 45 50000 - 1Lakh 30 1Lakh - 2.5Lakh 15 2.5 & Above 10

< 50 50-100 100-250 250 - Above05

1015202530354045

Size of Investment in '000

<50

50-100

100-250

250- Above

Interpretation:-

Out of 100 respondents 45% prefer for less than 50,000, 30% prefer

for between 50,000- 1 Lacs, 15% prefer for between 1 lacs to 2.5 lacs and 10% prefer

for above 2.5 lacs in size of investment. Most of the people prefer less than 5 lacs as

size of investment.

43Q. 16. What is the purpose behind investment?

Purpose behind investment Returns 40 Liquidity 25 Wealth 25 Tax Savings 10

Return Liquidity Wealth Tax Savings05

10152025303540

Pupose behind Investment

Return

Liquidity

Wealth

Tax Saving

Interpretation:-

Out of 100 respondents 40% people are invest for returns purpose, 25% people

are invest for liquidity and Wealth purpose and only 10% people are invest for tax

saving purpose.

Most of the people have return as main purpose for investment.

44Q. 17. What kind of investment you prefer?

Kind of investment prefer High risk high return 25 Medium Risk Medium Return 40 Low Risk Low return 25 I do not Like any risks 10

H.Risk H Return

M.Risk M Return

L Risk L Return

Don't like Risk

05

10152025303540

Kind of Investment Prefer

High Risk High Return

Medium Risk Midium Return

Low risk Low Return

Do not like Risk

Interpretation:-

Out of 100 respondents 25% prefer High risk High return, 40%

prefer Medium Risk Medium Return, 25% prefer Low Risk Low Return and 10%

prefer no risk for investment.

Maximum people prefer medium risk and medium return type investment.

45Q. 18. Among ICICI and HDFC which company has better market image for ULIP?

Among ICICI&HDFC company have better market image ICICI 30

HDFC 40 Both 20 No Idea 10

ICICI HDFC Both No Idea05

10152025303540

Which company have better market image

ICICI

HDFC

Both

No Idea

Interpretation:-

Out of 100 respondents 40% people believe that HDFC have better market

image while 30% people believe that ICICI have better market image.

Maximum people agree with HDFC have better market image.

46Q. 19. Among ICICI and HDFC which company provides good return?

Among ICICI and HDFC company provides good return ICICI 35 HDFC 40 Both 20 No Idea 5

ICICI HDFC Both No Idea05

10152025303540

which company provide good return

ICICI

HDFC

Both

No Idea

Interpretation:-

Out of 100 respondents 40% people think that HDFC provide good return

against ULIP while 35% people think that ICICI provide good return against ULIP.

Maximum number of people agreed that HDFC provide better return.

47Q. 20. Among ICICI and HDFC which has maximum ULIP option.

Among ICICI & HDFC has maximum ULIP Option ICICI 30 HDFC 40 Both 20

No Idea 10

ICICI HDFC Both No Idea05

10152025303540

which company has maximum ULIP option

ICICI

HDFC

Both

No Idea

Interpretation:-

Out of 100 respondents 40% people are think that HDFC has maximum ULIP

option and 30% people are think that ICICI has maximum ULIP option. Graph shows

that HDFC has maximum number of ULIP plans.

48Q. 21. Among ICICI and HDFC which company ULIP provides better benefits.

Among ICICI & HDFC company ULIP Provide Better benefits ICICI 25 HDFC 40 Both 25 No Idea 10

ICICI HDFC Both No Idea05

10152025303540

which company's ULIP provide better benefits

ICICI

HDFC

Both

No Idea

Interpretation:-

Out of 100 respondents 40% people believe that HDFC ULIP provide better

benefits while 25% people believe that ICICI ULIP provide better benefits. Maximum

people agree with HDFC in better benefits.

49Q. 22. Among ICICI and HDFC which company has better for claim settlement.

Among ICICI&HDFC company has better for claim settlement ICICI 38 HDFC 27 Both 20

No Idea 15

ICICI HDFC Both No Idea05

10152025303540

which company is better for claim settlement

ICICI

HDFC

Both

No Idea

Interpretation:-

Out of 100 respondents 38% people think that ICICI is better for claim

settlement while 27% people think that HDFC has better claim settlement.

In this, maximum people are agreeing that ICICI is better for claim settlement.

50

Questionnaire

This questionnaire is conducting for a major research project on the topic ‘A

comparative study of perception of working professionals towards HDFC ULIP

plans & ICICI ULIP plans ‘for fulfillment of MBA degree from

DAVV,Indore .please fill the questions so that I can frame our research by your

valuable opinion and time.

Q1 .Name ______________________________________________

Q2.Gender (a) Male (b) Female

Q3. Age (In Yrs):

(a) Below 30 (b) 30-45 (c) 45-60 (d) Above 60

Q4. Occupation

(a)Govt. Ser. (b). Pvt. Ser. (c). Business (d). Agriculture

Q5.Annual Income

(a) 150000-250000

(b) 250000-350000

(c) 350000-450000

(d) 450000 – above

Q.6. Do you have any insurance policy?

(a) Yes (b) No

Q.7. Why have you invested in ULIP?

(a) Insurance (b) Investments

Q.8. How long do you plan to stay invested in ULIP?

(a) 3-5 year (b) 5-7 year (c) 7-10 year (d)10-20

Q9. Most preferred form of investment?

(a)ULIP (b) M.F (c) Equity trading (d) Bank saving

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Q.10. which companies policy owned by you?

(a) ICICI (b) HDFC (c) KOTAK Mahindra (d) Max Newyork

Q.11. Comparison of various policies is important before selecting one.

(a) Strongly agree (b) agree (c) Disagree (d) Neutral

Q.12. which plan you will prefer in ULIP for investment?

(a) Child (b) Pension (d) Health (d) No Idea

Q.13. which company you will prefer for ULIP policy?

(a) ICICI (b) HDFC (c) KOTAK Mahindra (d) Max New York.

Q.14.How much % of your income you invest yearly?

(a) 0-20% (b) 20-35% (c) 35-50% (d) 50% & above

Q15.What is your normal preferred size of investment?

(a) < 50000 (b) 50000 - 1 Lakh (c) 1 Lakh-2.5 lakh (d) 2.5& above

Q16.What is the purpose behind investment?

(a)Returns (b) Liquidity (c) Wealth (d) Tax savings

Q17.What Kind of investment you prefer?

(a) High risk High Return (b) Medium Risk Medium Return

(c) Low Risk Low return (d) I do not like any risks

Q.18. Among ICICI and HDFC which company has better market image for ULIP?

(a) ICICI (b) HDFC (c) Both (d) No Idea

Q.19. Among ICICI and HDFC which company provides good return?

(a) ICICI (b) HDFC (c) Both (d) No Idea

Q.20. Among ICICI and HDFC which has maximum ULIP options?

(a) ICICI (b) HDFC (c) Both (d) No Idea

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Q.21. Among ICICI and HDFC which company ULIP provides better benefits?

(a) ICICI (b) HDFC (c) Both (d) No Idea

Q.22. Among ICICI and HDFC which company has better for claim settlement?

(a) ICICI (b) HDFC (c) Both (d) No Idea

53 CONCLUSION

The entry of private sector insurance companies into the Indian insurance sector

triggered off a series of changes in the industry. Even with the stiff competition in the

market place.

A general impression as immense awareness and knowledge among people about

various companies and their insurance products gathered during Data collection.

Generally the mass is inclined towards HDFC.

An interesting result found from the research that the respondents having less income

are more concern about their safe future and had invested their savings for their

future.

Out of 100 respondent, more than 50% are male and about 70% candidate having age

below 45 years, which shows that young people shows more attraction towards

investment and insurance rather than old people.

More than 50% respondents are engaged in service i.e. pvt. & govt. sector and among

them more than 70% falls below 3.5 lacs as their annual income.

When we compare result between ICICI and HDFC ULIP plans we conclude that

HDFC has good market image among the respondents and also many respondents

believe that HDFC ULIPs provide better return as compare to ICICI.

54 REFERENCE

Books:

Kakar P. and Shukla R. (2010), “The Determinants of Demand for Life

Insurance in an Emerging Economy—India”, The Journal of Applied Economic

Research, 4: 49- 77

Siddiqui, S. (2009), “Indian Life Insurance Sector: An Overview.” Available

at SSRN: http://ssrn.com/abstract=1339447

Sinha, Ram Pratap (2007), Productivity and Efficiency of Indian General

Insurance Industry. ICFAI Journal of Risk & Insurance, Vol. 4, No. 2, pp. 33-43.

Sinha, T. (2006), “An Analysis of the Evolution of Insurance in India”.

Available at SSRN: http://ssrn.com/abstract=706141

Thipathi, Deva Sena, Saleendran, P. T. and Shanmugasundaram, A. (2007),

“A Study on Consumer Preference and Comparative Analysis of All Life Insurance

Companies”, Icfai Journal of Consumer Behavior, Vol. 2, No. 4, pp. 7-16.

Annual Report of the Ministry of Finance (Section 3, Insurance Division,

http://finmin.nic.in/the_ministry/dept_eco_affairs/budget/annual_report/

9596ea3.PDF).

Websites:

http://www.bimadeals.com/ulips-plan.php

http://www.indg.in/financial-literacy/ulip-irda-faqs.pdf

http://www.iciciprulife.com/

http://www.hdfclife.com/

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