cresit risk

2010

Summer Internship Project

“PERCEPTION STUDY ON MONEY BACK POLICY”
&
“COMPARISON STUDY ON PRODUCT OF RELIANCE
LIFE INSURANCE WITH OTHER PRIVATE
INSURANCE COMPANY”
A PROJECT REPORT

Submitted by

Mr. Anubhav Bhushan
Reg. No. – S0906
in partial fulfillment for the award of the degree

of

POST GRADUATE DIPLOMA IN MANAGEMENT

IN

MARKETING
Centurion School of Rural Enterprise Management,
Paralakahemundi, Odisha
May – June 2010

“PERCEPTION STUDY ON MONEY BACK POLICY”
&
“COMPARISON STUDY ON PRODUCT OF RELIANCE
LIFE INSURANCE WITH OTHER PRIVATE
INSURANCE COMPANY”
A PROJECT REPORT

Submitted to:
PROFESSOR K. V. RAMANA

Submitted by

Mr. Anubhav Bhushan
Reg. No. – S0906

Centurion School of Rural Enterprise Management,
Paralakahemundi, Odisha

APRIL – JUNE 2010

BONAFIDE CERTIFICATE

Certified that this project report “PROJECT REPORT ON

COMPARATIVE ANALYSIS OF INSURANCE PRODUCT WITH

DIFFERENT LIFE INSURANCE COMPANIES.” is the bonafide work

of “ANUBHAV BHUSHAN” who carried out the project work under my

supervision.

SIGNATURE

K. V. RAMANA

Assistant Professor

Centurion School of Rural Enterprise Management, Paralakhemundi, Odisha

DECLARATION

I hereby declare that this project work entitled “Perception study on Money Back

policy” & “Comparison study on product of Reliance Life Insurance

with other private insurance company” is my work, carried out under the

guidance of my faculty guides PROF. K.V. RAMNA and company guide Mr.

VIKASH KUMAR, Branch Manager, Reliance Life insurance Company Limited,

Ranchi. This report neither full nor in part has ever been submitted for award of

any other degree of either this management college or any other management

college.

SIGNATURE

Mr. ANUBHAV BHUSHAN

REGD. NO. S0906

P.G.D.M.

C.S.R.E.M. , PARALAKHEMUNDI

ACKNOWLEDGEMENT

First of all I would like to acknowledge our indebted to our Director Dr. (Prof.)

G.C.Patro, for his valuable guidance and consistent supervision throughout the

course.

I am also thankful to Mr. VIKASH KUMAR, Company Guide of Reliance Life

Insurance company LTD, Ranchi, for his valuable guidance for preparing the Final

Report and also for providing the necessary facilities.

I am extremely thankful to PROF. K.V. RAMANA , Faculty Guide of CSREM,

Paralakhemundi for their timely guidance and support throughout the project

work.

Finally I am indebted to our other faculty members, my friends and my parents

who gave their full-fledged co-operation for successful completion of my project.

It was an indeed learning experience for me.

ANUBHAV BHUSHAN

Regd. No. - S0906

Content Page No.

Project B

A : Perception Study on Money Back policy

Chapter No. 1

1.1. Abstract …………………………...01
1.2. Introduction …………………………...02
1.3. Detail Study about Money back policy …………………………...02
1.3.1 Salient Feature …………………………..03
1.3.2 Benefit …………………………...04
1.4 Research Problem …………………………...05
1.5 Purpose of the Study …………………………..05

Chapter No. 2

2.1. Research Methodology …………………………...06

2.1.1. Research Strategy …………………………...06

2.1.1.1. Primary source …………………………...06

2.1.1.1.1. Sampling Design …………………………...06

2.1.1.1.1.1 Population….…………………….06

2.1.1.1.1.2 Sample Frame……………………06

2.1.1.1.2. Sampling Element ………………………...06

2.1.1.1.3. Sample Technique ………………………..07

2.1.1.1.4. Sample Size ………………………...07

2.1.1.2. Secondary Sources …………………………07

Chapter No. 3

3.1. Analysis and Data Interpretation ………………………08

Chapter No. 4

4.1. Results ……………………….21

4.2. Conclusion ………………………..23

4.3. Suggestion ………………………..24

PROJECT - B

B. Comparison study on product on Reliance Life Insurance

With other private insurance companies

Chapter No. 5

5.1. Objective ………………………...27

5.2. Introduction ………………………..27

5.2.1. ULIP Plan of Reliance Life Insurance ……………………….27

Chapter No. 6

6.2. Compare ULIP product of Reliance Life with

Mutual Fund ………………………28

6.2.1. Mode of Investment ………………………28

6.2.2. Expenses ………………………29

6.2.3. Portfolio Disclosure ………………………30

6.2.4. Flexibility in altering the assets allocation ………………………31

6.2.5. Tax Benefit ………………………32

Suggestion

Bibliography

Annexure

List of Table and Figure

List of Table Particular Page No.

1. Table No. 1……….Money Back Policy plan feature…………………..04
2. Table No. 2………....Awareness of Life Insurance……….…………....08
3. Table No. 3……………….Decision Influence…………………...…….09
4. Table No. 4……………..Attraction of Insurance………………………10
5. Table No. 5…………….Purpose of buy Insurance……………………..11
6. Table No. 6………..........Investment for Insurance……………………..12
7. Table No. 7…………………Premium payment………………………...13
8. Table No. 8………………....Mode of Premium………………………...14
9. Table No. 9……………….Believable Company………………………..15
10. Table No.10………..........Types of Insurance plan…...…………………16
11. Table No.11……………Aware with Money Back………………………17
12. Table No.12………..…………No. of Policy…………………………….18
13. Table No.13…...........Interest to take Money Back policy……………….19
14. Table No.14………………….Satisfaction………………………………20

List of Figure Particular Page No.

1. Figure No. 1………....Awareness of Life Insurance……….…………....08
2. Figure No. 2……………….Decision Influence…………………...…….09
3. Figure No. 3……………..Attraction of Insurance………………………10
4. Figure No. 4…………….Purpose of buy Insurance……………………..11
5. Figure No. 5………..........Investment for Insurance……………………..12
6. Figure No. 6…………………Premium payment………………………...13
7. Figure No. 7………………....Mode of Premium………………………...14
8. Figure No. 8……………….Believable Company………………………..15
9. Figure No. 9………..........Types of Insurance plan…...…………………16
10. Figure No. 10……………Aware with Money Back………………………17
11. Figure No. 12………..…………No. of Policy…………………………….18
12. Figure No. 13…...........Interest to take Money Back policy……………….19
13. Figure No. 14………………….Satisfaction………………………………20

Chapter No. 1
1.1. Abstract
India is a country where the average selling of life insurance policies is still lower

than many western and asian countries, with the second largest population in world

the Indian insurance market is looking very prospective to many multinational and

Indian insurance companies for expanding their business and market share. Before

the opening of indian market for Multinational Insurance Companies, Life

Insurance Corporation (LIC) was the only company which dealt in Life Insurance

and after opening of this sector to other private companies, all the world leaders of

life insurance have started their operation in India. With their world market

experience and network, these companies have offered many good schemes to lure

all type of Indian consumers but unfortunately failed to get the major share of

market. Still the LIC is the biggest player in the life insurance market with approx

65% market share. But why Indian consumers do not trust on many companies and

why the major population of India does not have any life insurance policy or what

are the factors plays major role in buying behavior of consumers towards life

insurance policies.

1.2. Introduction

Life is full of risk and uncertainties. Since we are the social human being we have

certain responsibilities too. Indian consumers have big influence of emotions and

rationality on their buying decisions. They believe in future rather than the present

and desire to have a better and secured future, in this direction life insurance

services have its own value in terms of minimizing risk and uncertainties. Indian

economy is developing and having huge middle class societal status and salaried

persons. Their money value for current needs and future desires here the pendulum

moves to another side which generate the reasons behind holding a policy. Here

the attempt has been made in this research paper to study the buying behavior of

consumers towards life insurance services.

Life insurance is one of the best known insurance products today. People buy these

products as investment tools and also as protection for themselves and their

families. All the insurance companies the world over are looking at attracting the

eye balls of customer and positioning their solutions innovatively to cater to niche

and specific markets. One of the most critical aspects both from the view point of

the customer and the insurer is getting important and relevant leads that can be

beneficial for both.

1.3. Detail study about Money back Policy –

'MONEY BACK plan is an excellent plan with good return on reinvestment, best

suited for businessmen and professionals. Money is available at regular intervals in

future to meet the specific expenses such as children's education or marriage. At

the same time, the provides insurance protection for the family as well as old age

provision.

1.3.1 .Salient Features

• where lump sum amounts are paid to the life assured at periodic intervals on

survival.

• In case of death of the life assured within the term, the total sum insured is

paid to the nominee, irrespective of earlier survival benefits.

• Bonus is payable under this scheme.

• Premiums are to be paid regularly to get survival benefits.

• Premiums cease at death or on expiry of term whichever is earlier.

• This plan can be availed of for terms 20 or 25 years.

1.3.2 . Benefits

• On Death:

o Full sum assured is payable at death of the life assured within the

term, without any deduction of earlier survival benefits. (e.g. for

example, suppose a person takes a Rs.1,00,000/- for 20 years. At the

end of the 5th and 10th year he receives Rs.20,000/- each as survival

benefit. If he happens to die in the 12h year, the nominee of the life

assured will receive full Rs.1,00,000/-, irrespective of the earlier

benefits of Rs.40,000/-)

• On Survival:

For Example, on a Rs.
Term At the end of Amount of money back
1,00,000

5thyear 20% of sum assured Rs.20,000/-

20 10thyear 20% of sum assured Rs.20,000/-

years 15thyear 20% of sum assured Rs.20,000/-


25 5thyear 15% of sum assured Rs.15,000/-

years 10thyear 15% of sum assured Rs.15,000/-




Table No. 1

1.4. Research Problem

The problem of the my research is to know perception of the customer about

Monet Back policy in Varanasi, U.P.

1.5. Purpose of the study

The purpose of the study is know that

1. To evaluate the factors underlying consumer perception towards investment

in life insurance policies.

2. To develop and standardize a measure to evaluate investment pattern in life

insurance services.

Research Question

Perception study about Money back policy

Chapter No. 2

2.1. RESEARCH METHODOLOGY

2.1.1. .Research Strategy

For my research study first of all this is very important that I have to

know what is money back policy and how it works. I’ll visit Reliance

Life Insurance Company in Varanasi to know more about Money Back

policy.

Collection of data

2.1.1.1. Primary Source –

2.1.1.1.1. Sampling Design

a) Population:

Population included investors in Varanasi region.

b) Sample frame:

Since the data was collected through personal contacts, the

sample frame was the individuals who are investing in life insurance policies.

2.1.1.1.2. Sampling elements:

Individual respondents were the sampling elements.

2.1.1.1.4 Sampling Techniques:

Purposive sampling technique was used to select the samples.

2.1.1.1.5 Sample Size:

Sample size was 104 respondents

2.1.1.2 .Secondary Source

The common source for secondary data includes different websites & books and
Reliance life insurance office in Varanasi.

Chapter 3

3.1. Analysis and data interpretation

3.1. Awareness of life insurance in consumer.

Fig. 1

No. of
respondants Percentage of respondents
Yes 104 100%
No 0 0%
Table No.2

According to the data Maximum people are aware with Life insurance policy; here

100% people are aware with life insurance. This time in india most of the people

aware with this investment because now a day’s people are not interested to invest

their money in bank and post office etc. but if we see in rural area , where most of

the people is not aware with life insurance.

3.2. In buying insurance policy, your decision is influenced by

Figure No. 2

No. of % of
respondents Respondents
Family 38 37%
Friends 31 30%
Professional and trade union
group 16 15%
Brand and Advertisement 19 18%
Table No. 3

Insurance is now basic investment for consumers. But this is tradition of india that

we are not believe in unknown people So when any one buy insurance policy then

his or her decision is depend on family friends etc. here if we see 37% respondents

believe his family to buy insurance policy but only 18% respondent’s decision

depend on brand and advertisement of company. so here we see that family and

friends play a big role to buy insurance policy.

3.3. What will you more attract in insurance?

Figure No. 3

No. of % of
respondents respondents
Bonus 69 66%
Generated Income 31 30%
Return Depend on
Market 13 4%
Table No. 4

Mostly people invest money in insurance for his life security but now they also

think about profit. Today people are only asking about profit that after 3 or 4 year

how much Money Company give me. Most of the people buy insurance for Bonus,

here 66% people attract by bonus and only 4% people attract by return depend on

market.

3.4.What is your purpose for buying insurance policy?

Figure No. 4

No of % of
Respondents respondents
For old age saving 53 51%
Family saving 14 14%
Time to time needs 22 21%
Opposite circumstances 15 14%
Table No. 5

Most of the people buy insurance policy for his old days saving because they want

to save money for old age and only 21% people buy insurance for time to time

needs.

3.5.How much money you want to invest in insurance?

Figure No. 5

Premium No. of
Amount respondents
10000 to 15000 15
15001 to 20000 29
20001 to 25000 31
25001 to 30000 21
30001 to 35000 5
Table No. 6

Mostly people invest in insurance his saving amount and according to their

saving they purchase life insurance policy. Here most of the people invest

20001 Rs. To 25000 Rs. And very less number of people invest huge amount in

insurance.

3.6.How do you want to pay your premium?

Figure No.6

No. Of
Mode Respondents
Cash 36
Cheque 41
Demand
Draft 27
Table No. 7

Most of the respondent pay their premium through cheque there 41 respondent pay

their premium through cheque and 36 respondent pay their premium through cash

and 27 respondent pay their premium through demand draft..

3.7In what mode you want to give premium?

Figure No. 7

No. of % of
Mode Respondents respondent
Monthly 27 26%
Half-
Yearly 41 39%
Yearly 36 35%
Table No. 8

Insurance company give a lots of facility to his loyal costumer for pay his

premium. Coustmer also pay the premium in three mode monthly, half

yearly and yearly. Here 39 % respondent pay in half yearly mode and

35% respondent pay yearly mode premium.

3.8.In which company you believe most ?

Figure No.8

No. of
Company respondent
Private
Company 38
Public Company 62
Table No. 9

Most of the people want to invest his money in public insurance company and in

private insurance company only 38 respondent want to invest their money. Most of

the people buy insurance from LIC and there are 24 private insurance company in

India.

3.9.Do you want which type of insurance plan?

Figure No. 9

No. of % of
PLAN Respondents respondents
ULIP Plan 22 21%
Traditinol
Plan 41 40%
Health Plan 24 23%
Term plan 17 16%
Table no. 10

In insurance plan respondent want mostly traditional plan. 40% respondent use

traditional plan and 21% respondent want to buy ULIP Plan.

3. 10. Do you aware with Money Back Policy of any life insurance company?

Figure No.10

No. of % of
Yes 87 84%
No 17 16%
Table No. 11

There are 84% respondents who aware about money back policy and 16%

respondent have no idea about money back policy.

3.11.How much Money Back policy you have?

Figure No.11

No. of % of
No. of policy Respondents respondents
0 17 16%
1 37 36%
2 27 26%
3 20 19%
4 and above 3 3%
Table No.12

There are 84% aware with Money back policy in this 84% respondent 37

people have 1 money back policy and 27 people have 2 money back policy.

There are 16% respondent they haven’t any money back policy.

3.12.Do you interested to take Money Back policy?

Figure No.12

No. of % of
Yes 57 71%
No 28 13%
Can't say 19 16%
Table No. 13

There are 55% respondent interested to take money back policy again but 27%

respondent have no interest to take this policy again and 18% respondent don’t

know what to do.

3.13.Are you satisfied with the return on investment, which you are getting

from your policy?

Figure No. 13

No. of % of
Very satisfied 22 21%
Satisfied 62 60%
Can't say 4 4%
Not Much
satisfies 4 4%
dissatisfied 12 11%
Table No.14

Here we see very positive result of my respondent about money back policy

product. In that 84% respondent 60 % respondent satisfied with return on this

money back policy and 21% respondent very satisfied with money back

policy.and 11% respondent not satisfied with return on this money back policy.

Chapter No. 4

4.1. Results

In present Indian market, the investment habits of Indian consumers are changing

very frequently. The individuals have their own perception towards various types

of investment plans. The study of this research work was focused over consumer’s

perception on investment towards money back policy of Life Insurance Services.

The objectives of the study were to evaluate the factors underlying consumer

perception towards investment in life insurance policies; and to compare the

differences in consumer perception of male and female consumers.

In india LIC have a 25 years monopoly and costumers were bound to buy

insurance from LIC but in 2000 maximum private insurance companies enter

in the Indian insurance market and that time very less number of people want

to buy insurance from this private companies and today also if see this survey

then according to survey 62% people believe in LIC and remaining 38%

people go with private companies like Reliance Life Insurance, ICICI

Prudential. But today the face of insurance market is totally changed now

people move to private sector insurance companies. because this private

companies gives more bonus and return to his costumer .and costumer also

buy that policy where he got more bonus and return. Now a day’s controversy

is going on between SEBI and IRDA about ULIP policies. In ULIP policies

companies charged a huge money in first premium of his policy and that

policy return also depend on market if market is on peak then costumer have

good profit with good return. and insurance market is affected by this

controversy now people are scared to buy ULIP policy only 22% people

interested to buy this plan but people more attracted in traditional plan

because in this costumer have a certain return guarantee and charges also less

in comparison than ULIP policy and Money Back policy is a traditional plan

where more number of people attracted.According to survey 71% people

interested to buy this Money Back policy and they are satisfied with this

policy. In 61 respondent out of 104 respondent are satisfied with Money Back

policy.

4.2. Conclusion

The perception of the Money back plan of reliance life insurance is good

towards the costumer. In RLI Reliance Cash Flow Plan is the cash back plan.

Necessarily customer need that type of plan where they get any benefit and

safety for his money and this plan is safe as well as benefitted also because

there is a lots of benefit with this plan so this is the reason this plan is more

popular in Indian market. Savings and Investment Plan gives the double

benefit of easy liquidity through lump sum cash along with life insurance.

During the time of need this policy provides the money at times. This policy

gives the freedom to the insured to live to the full at present and at the same

time assures the safety of the future by giving the flexibility of being paid a

specific percentage of the Sum Assured at particular intervals. But Indian

customer perception basically this –

1. Easy liquidity of periodic cash flow at the end of the 4th year and

thereafter at the end of every 3 years.

2. Savings with Investment Plan

3. Safety for the money

The consumer’s perception towards Life Insurance Policies is positive. It

developed a positive mind sets for their investment pattern, in insurance policies.

Still some actions are needed for developing insurance market. The major factors

playing the role in developing consumer’s perception towards Life Insurance

Policies are Consumer Loyalty, Service Quality, Ease of Procedures, Satisfaction

Level, Company Image, and Company-Client Relationship. Insurance industry has

to go ahead. A lot of opportunities are still waiting. This research will help in

developing the market share, loyalty and further development in insurance sector.

4.3. Suggestions

1. Insurance companies should try to adopt different strategies to market

their products or plan. Companies should not primarily focus on the

agents for their business.

2. Insurance company should try to decrease its charge.

3. Agents should not be cheat with his client .they should be give clear

information about insurance product.

Project B – 2

“Comparison study on Reliance Life

Insurance with other private insurance

company”

Chapter No. 5

5.1. Abstract

Today total Investment scenario is changing, in past people were not interested in

investment because there were no good options available for investment. Now

there are many options available for investment like life Insurance, Mutual fund,

Equity market, Real estate, etc. Today people want more services and more return

on their investment. So, most of the insurance companies are providing more value

– added services with the basic insurance operation. Another option for investment

available is Mutual Fund. Mutual Funds are providing good returns. So while

investing people tend more to words mutual fund as they are providing more

returns than Insurance also, with a good investment portfolio. Mutual fund

companies are providing more liquidity. The project topic was taken to know

about, compare study of Reliance life Insurance product with other private

insurance company’s product.

5.2. Objective

• To compare investment option of costumer in ULIPs and Mutual Fund

• To understand the reason for which costumer prefer ULIP as one of the best

insurance investment rather than mutual fund.

5.3. Introduction

5.3.1. ULIP Plan of Reliance Life Insurance

ULIPs have been the darling of insurance companies, intermediaries and

the insured population alike over the last five years. The main reason for this

popularity is the twin advantage of a pure life cover (insurance component) and a

range of investment funds or options (savings component) to match your risk

profile. While the pure life cover provides the much needed financial security to

your dependents in the event of your untimely death, the savings component allows

you to participate in the capital markets and build wealth over the long-term tenure

of the policy. Unit Linked Insurance Policies (ULIPs) as an investment avenue are

closest to mutual funds in terms of their structure and functioning. As is the cases

with mutual funds, investors in ULIPs are allotted units by the insurance company

and a net asset value (NAV) is declared for the same on a daily basis. Similarly

ULIP investors have the option of investing across various schemes similar to the

ones found in the mutual funds domain, i.e. diversified equity funds, balanced

funds and debt funds to name a few. Generally speaking, ULIPs can be termed as

mutual fund schemes with an insurance component. However it should not be

construed that barring the insurance element there is nothing

Chapter No. 06

6.1. Differentiating mutual funds from ULIPs

6.1.2. Mode of investment/ investment amounts

Mutual fund investors have the option of either making lump sum investments or

investing usingthe systematic investment plan (SIP) route which entails

commitments over longer timehorizons. The minimum investment amounts are

laid out by the fund house. ULIP investors also have the choice of investing in a

lump sum (single premium) or using the Conventional route, i.e. making premium

payments on an annual, half-yearly, quarterly or monthly basis. In ULIPs,

determining the premium paid is often the starting point for the investment activity.

This is in stark contrast to conventional insurance plans where the sum assured is

the starting point and premiums to be paid are determined there after ULIP

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

tenure. For example an individual with access to surplus funds can enhance the

contribution there by ensuring that his surplus funds are gainfully invested;

conversely an individual faced with a liquidity crunch has the option of paying a

lower amount (the difference being adjusted in the accumulated value of his

ULIP). The freedom to modify premium payments at one's Convenience clearly

gives ULIP investors an edge over their mutual fund counterparts.

6.1.2. Expenses

In mutual fund investments, expenses charged for various activities like fund

management, sales and marketing, administration among others are subject to pre-

determined upper limits as prescribed by the Securities and Exchange Board of

India. For example equity-oriented funds can charge their investors a maximum of

2.5% per annum on a recurring basis for all their expenses; any expense above the

prescribed limit is borne by the fund house and not the investors. Similarly funds

also charge their investors entry and exit loads (in most cases, either is applicable).

Entry loads are charged at the timing of making an investment while the exit load

is charged at the time of sale.

Insurance companies have a free hand in levying expenses on their ULIP products

with no upper limits being prescribed by the regulator, i.e. the Insurance

Regulatory and Development Authority. This explains the complex and at times

'unwieldy' expense structures on ULIP offerings. The only restraint placed is that

insurers are required to notify the regulator of all the expenses that will be charged

on their ULIP offerings. Expenses can have far-reaching consequences on

investors since higher expenses translate into lower amounts being invested and a

smaller corpus being accumulated.

6.1.3. Portfolio disclosure

Mutual fund houses are required to statutorily declare their portfolios on a

quarterly basis, albe it most fund houses do so on a monthly basis. Investors get the

opportunity to see where their monies are being invested and how they have been

managed by studying the portfolio. There is lack of consensus on whether ULIPs

are required to disclose their portfolios. During our interactions with leading

insurers we came across divergent views on this issue. While one school of thought

believes that disclosing portfolios on a quarterly basis is mandatory, the other

believes that there is no legal obligation to do so and that insurers are required to

disclose their portfolios only on demand. Some insurance companies do declare

their portfolios on a monthly/quarterly basis. However the lack of transparency in

ULIP investments could be a cause for concern considering that the amount

invested in insurance policies is essentially meant to provide for contingencies and

for long-term needs like retirement; regular portfolio disclosures on the other hand

can enable investors to make timely investment decisions.

6.1.4. Flexibility in altering the asset allocation

As was stated earlier, offerings in both the mutual funds segment and ULIPs

segment are largely comparable. For example plans that invest their entire corpus

in equities (diversified equity funds), a 60:40 allotment in equity and debt

instruments (balanced funds) and those investing only in debt instruments (debt

funds) can be found in both ULIPs and mutual funds. If a mutual fund investor in a

diversified equity fund wishes to shift his corpus into a debt from the same fund

house, he could have to bear an exit load and/or entry load. On the other hand most

insurance companies permit their ULIP inventors to shift investment across various

plans/asset classes either at a nominal or no cost (usually, a couple of switches

areallowed free of charge every year and a cost has to be borne for additional

switches) Effectively the ULIP investor is given the option to invest across asset

classes as per his convenience in a cost-effective manner. This can prove to be very

useful for investors, for example in a bull market when the ULIP investor's equity

component has appreciated, he can book profits by simply transferring there

quested amount to a debt-oriented plan.

6.1.5. Tax benefits

ULIP investments qualify for deductions under Section 80C of the Income Tax

Act. This holds good, irrespective of the nature of the plan chosen by the investor.

On the other hand in the mutual funds domain, only investments in tax-saving

funds (also referred to as equity-linked savings schemes) are eligible for Section

80C benefits. Maturity proceeds from ULIPs are tax free. In case of equity-

oriented funds (for example diversified equity funds, balanced funds), if the

investments are held for a period over 12months, the gains are tax free; conversely

investments sold within a 12-month period attract short-term capital gains tax @

10%. Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%,

while a short-term capital gain is taxed at the investor's marginal tax rate. Despite

the seemingly similar structures evidently both mutual funds and ULIPs have their

unique set of advantages to offer. As always, it is vital for investors to be aware of

the nuances in both offerings and make informed decisions

Suggestion

✔ As insurance sector is growing rapidly so most of the life insurance players

are selling ULIP plans. And the awareness about ULIP is growing most of the

people knows the ULIP of life insurance. Since last 4-5 years the returns provided

by ULIP were very good so people tend more towards ULIP

✔ Middle class people who are interested in investment but they are not aware

of such options so more awareness should be there, as main target customer are the

middle class peoples.

✔ While investing any insurance company customer prefers for good branded

company is India’s one of the most famous and richest family. And second

preference is given to SBI life as many people perceive that SBI Life is a govt.

owned company so people want security for their investment.

✔ As now till date people in India don’t wanted to invest in share market

because then were thinking that it is a bad thing but as the awareness about Mutual

fund is increasing as more and more private players are entering in the market. So

awareness about MF is not very good and it can be improved.

✔ While survey I found that many all customers had already invested in ULIP

and Mutual Fund some people had invested in both options. 12% of people had

invested in Mutual Fund and 26% people had invested in ULIP and 4% people had

invested in both the options.

✔ While investing in mutual fund 44% of the customers looks their return,42%

customers observe the scheme’s performance in past years.

✔ First reason or preference that why an investor is interested in ULIP is

Investment Purpose, and second is to its returns and after that they investing

because they are getting the tax benefit. Then again there are some people who are

investing for pension planning and security.

✔ In future people will be more preferring to the security of their money means

they want a secured option which should provide good returns. As ULIP are the

option in which you can have the security also and good returns. The second

choice of the investors is return of their money.

✔ 54% of people given Best rating to the Reliance Life Insurance ULIP, so

from this we can analyze that Reliance Life Insurance is doing good but it is

having good potential in Market. To improve its market share they should improve

the awareness level of the common people.

✔ Innovative Products and good brand name are the main success factor for

Reliance Life Insurance. 6% customers are attracted due to the high reputation of

the company. So if BALIC wants to penetrate its market share they should improve

the marketing strategy, improving the distribution channel etc.

Conclusion

✔ Awareness of ULIP is increasing as more number of private players is

entering in life insurance industry.

✔ Mutual Fund is also getting more and more famous in Indian market as many

private companies innovating new funds as the investors demand ULIP

differentiate from Mutual fund in respect of Insurance cover.

✔ Investors in Reliance Life ULIP will be getting the advantage of life

insurance cover.

✔ People are turning towards the ULIP as a good investment option but as

ULIP is in its starting phase so customers are preferring only big brands.

✔ Mutual fund is having good growth but many customers from rural areas

don’t have any knowledge about Mutual fund. They think it is very risky.

✔ Even investors from cities like Varanasi don’t have that much of Knowledge

about fund selection they all are depend on Brokers.

✔ People in Varanasi are investing in only good branded companies as they

don’t believe on other financial companies for taking ULIP.

✔ There is a need for insurers to undertake a demand audit in order to

understand what the policy holder wants and needs.

✔ Deriving the right feedback from customers and bringing out innovative

products which cater to customer demands will go a long way in tapping the

market potential of the insurance and Mutual fund sector.

✔ For Reliance Life Insurance They should go for creating more awareness

about its ULIP as now also people are just investing because Reliance is India’s

most Known and Favorite brand in past.

✔ Reliance life should go for innovating more and more products and

improving the distribution channels as per the area of sales

Bibliography

Book-

1. India Today Magazine ( May,2010; Page No. 24 )

2. Dainik Jagran News paper ( 20th june,2010; Page No.04)

Websites

1. www.reliancelife.com

2. www.wikipedia.com

3. www.comparelifeinsurence.co.in

4. www.apnainsurance.com

5. www.moneycontrol.com

6. www.irdaindia.gov

7. www.bajajallianzlife.com

8. www.yahooanswer.com

Annexure –

1. QUESTIONNAIRES

2. Data Sheet of data collection In Varanasi

QUESTIONNAIRES

Declaration: It is purely for academic purposes and the data given will not be
passed to anyone. I request you to kindly fill up the form. Thank you.
NAME: _____________________________SURNAME____________________
DATE OF BIRTH: ___________________
PRESENTADDRESS___________________________________________________________
______________________________________________________________________________
LANDMARK: ______________________PIN ______________
PHONE NO _____________ MOBILE____________________
PERMANENT ADDRESS:
__________________________________________________________________
__________________________________________________________________
EDUCATION: ________________________
OCCUPATION: _______________________
MONTHLY INCOME:

a) <Rs—15,000 b) Rs15000-Rs-30,000 c)> Rs30, 000

1. Do you aware with life Insurance? a) Yes b) No

2. Are you interested in investing your money?

i) Yes ii) No iii) Not now

3. Where you want to invest your money?

i) Shares ii) Mutual funds iii) Insurance iv) Fixed deposits

4. What is your purpose for buying insurance policy?

a) For old age saving
b) Family needs
c) Time to time needs
d) Opposite circumstances

5. In buying insurance policy, your decision is influenced by
a) Family
b) Friends
c) Professional and trade union group
d) Brand and Advertisement

6. What is your savings as a percentage of annual income?

a).15 to 20 b) 20 to 40 c) 40 to 50 d) 50 to 60

7. How much money you want to invest in insurance?
a) 10,000 to 15,000
b) 15,001 to 20,000
c) 20,001 to 25,000
d) 25,001 to 30,000
e) 30,001 to 35,000

7. In which company you believe most ?
a) Private insurance company
b) Public insurance company

8. Do you know how many insurance companies prevailing in India?

a) 1 b) 8 c) 16 d) More than 20 d) No idea

9. What will you more attract in insurance?
a) Bonus
b) Generated Bonus
c) Return depend on market

10. How do you want to give your premium?
a) Cash
b) Cheque
c) Demand Draft

11. Do you think that insurance is necessary in today’s life?

a) Yes b) No

12. In what mode you want to give premium?
a. Monthly
b. Half-yearly
c. Yearly

13. Do you want which type of insurance plan?
a) ULIP
b) Traditional
c) Health
d) Term Plan

14. Do you aware with Money Back Policy of any life insurance company ?
a) Yes
b) No

15. How much Money Back policy you have ?
a) 0
b) 1
c) 2
d) 3
e) 4 and above

16. Do you interested to take Money Back policy ?
a) Yes
b) No
c) Can’t say

17. Do you interested to take Money Back policy?
a. Yes
b. No
c. Can’t say

18. Are you satisfied with the return on investment, which you are getting from your
policy?
a. Very satisfied
b. Satisfied
c. Can’t say
d. Not much satisfied
e. Dissatisfied

Any Suggestion………………………………………………………………………….

Signature: Date:

Thank you for Your Cooperation

S. insurance aware with money
No. Name Awareness Company plan back Satisfaction
Public Insurance Health Not much
1 ashsih seth Yes Company Plan Yes satisfied
Private Insurance
2 sandeep verma Yes Company Traditinol Yes Very satisfied
Public Insurance
3 shiren saher Yes Company ULIP No Satisfied
Public Insurance
4 piya rastogi Yes Company Traditinol No Very satisfied
Public Insurance
5 Aanand tiwari Yes Company Traditinol Yes Satisfied
Dr. jitendra Private Insurance Health
6 Gupta Yes Company Plan Yes Satisfied
Private Insurance
7 satish Jiasawal Yes Company Term Plan Yes Can't say
ramakant Private Insurance
8 jaisawal Yes Company Traditinol Yes Satisfied
Private Insurance Health
9 sachin dewadi Yes Company Plan Yes Satisfied
Private Insurance
10 anil gupta Yes Company ULIP Yes Very satisfied
Private Insurance
11 rehmaan khan Yes Company ULIP Yes Satisfied
ramapati Private Insurance
12 pradhan Yes Company Traditinol Yes Satisfied
Public Insurance
13 sanjay gupta Yes Company Traditinol Yes Satisfied
Public Insurance
14 satish sarma Yes Company Traditinol Yes Satisfied
Public Insurance
15 rakesh dubey Yes Company Traditinol Yes Satisfied
Public Insurance
16 deepak kumar Yes Comp Traditinol Yes Satisfied

Public Insurance
17 wakil ahmed Yes Company Traditinol No Very satisfied
Public Insurance
18 kanhaiya lal Yes Company Traditinol Yes Satisfied
Public Insurance Health
19 santosh kumar Yes Company Plan Yes Satisfied
gajendra prasad Public Insurance Health
20 gupta Yes Company Plan No Satisfied
Public Insurance
21 rahul sharma Yes Company Traditinol Yes Very satisfied

Public Insurance
22 mukta gupta Yes Company Traditinol Yes Satisfied
Public Insurance
23 dhirendra gupta Yes Company Term Plan Yes Satisfied
24 ramesh jaisawal Yes Company Plan No Satisfied
25 Jyotish Prasad Yes Company Plan Yes Satisfied
Private Insurance
26 Rakesh Prasad Yes Company ULIP Yes Very satisfied
Private Insurance
27 Gurpreet singh Yes Company ULIP Yes Satisfied
Jagdish Private Insurance
28 Baranwal Yes Company Traditinol Yes Satisfied
Narsinghdas Public Insurance
29 gupta Yes Company Traditinol Yes Satisfied
Ramakant Public Insurance
30 Jaiswal Yes Company Traditinol Yes Satisfied
Santosh Kr. Public Insurance
31 Jaiswal Yes Company Traditinol Yes Satisfied
Public Insurance
32 pradeep Jaiswal Yes Company Traditinol Yes Satisfied
S. insurance aware with money
No. Name Awarness Company plan back Satisfaction
Public Insurance
33 Shireen Saher Yes Company Traditinol No Very satisfied
Public Insurance
34 Amit Jaiswal Yes Company Traditinol Yes Satisfied
35 Navin gupta Yes Company Plan Yes Satisfied
36 Pramod Gupta Yes Company Plan No Satisfied
Public Insurance
37 Naresh Sharma Yes Company Traditinol Yes Very satisfied
Public Insurance
38 Sunjay singh Yes Company Traditinol Yes Satisfied
Koushal Public Insurance
39 baranwal Yes Company Term Plan Yes Satisfied
40 Ravi bhushan Yes Company Plan No Satisfied
Public Insurance Health Not much
41 aalisha Yes Company Plan Yes satisfied
Private Insurance
42 Manish Gupta Yes Company Traditinol Yes Very satisfied
Public Insurance
43 ashish seth Yes Company ULIP No Satisfied

priyesh Public Insurance
44 chourasia Yes Company Traditinol No Very satisfied
Public Insurance
45 pintu shrma Yes Company Traditinol Yes Satisfied
46 Kailash Gupta Yes Company Plan Yes Satisfied
Private Insurance
47 Priya rastgi Yes Company Term Plan Yes Can't say
48 abhishek Gupta Yes Company Plan Yes Satisfied
Private Insurance
49 prahlad yadav Yes Company ULIP Yes Very satisfied
Private Insurance
50 Anupam seth Yes Company ULIP Yes Satisfied
Ved prakash Private Insurance Health
51 gupta Yes Company Plan No Satisfied
Private Insurance
52 Raju gupta Yes Company Traditinol Yes Very satisfied
Public Insurance
53 Puttul Gupta Yes Company Traditinol Yes Satisfied
Public Insurance
54 sunil pandey Yes Company Term Plan Yes Satisfied
55 lakhan prasad Yes Company Plan No Satisfied
56 Chanderiwal Yes Company Plan Yes Satisfied
Public Insurance
57 gita seth Yes Company ULIP Yes Very satisfied
Public Insurance
58 niki jaiswal Yes Company ULIP Yes Satisfied
Public Insurance
59 madan galgotia Yes Company Traditinol Yes Satisfied
Public Insurance
60 aanchal kumari Yes Company Traditinol Yes Satisfied
Public Insurance
61 Ravi kishan Yes Company Traditinol Yes Satisfied
Public Insurance
62 lalu yaday Yes Company Traditinol Yes Satisfied
Public Insurance
63 vivek chourasia Yes Company Traditinol Yes Satisfied
Public Insurance
64 munna jaiswal Yes Company Traditinol No Very satisfied
Private Insurance
65 sanjay gupta Yes Company Traditinol Yes Satisfied
66 deepak jaisal Yes Company Plan Yes Satisfied

67 sneha keshari Yes Company Plan No Satisfied
Private Insurance
68 PK Srivastawa Yes Company Traditinol Yes Very satisfied
Public Insurance
69 RK Singh Yes Company Traditinol Yes Satisfied
Public Insurance
70 Ashok Singh Yes Company Term Plan Yes Satisfied
71 AK tripathi Yes Company Plan No Satisfied
Public Insurance
72 LC Rai Yes Company Traditinol Yes Satisfied
73 DK singh Yes Company Plan Yes Satisfied
Public Insurance
74 JP gaur Yes Company Term Plan Yes Can't say
Madholika Public Insurance Health
75 Agrawal Yes Company Plan Yes Satisfied
Public Insurance
76 Hema Singh Yes Company ULIP Yes Very satisfied
Public Insurance
77 Bharat Rai Yes Company ULIP Yes Satisfied
Ram Lakhan Private Insurance
78 Gupta Yes Company Traditinol Yes Very satisfied
Private Insurance
79 S k Sen Gupta Yes Company Traditinol No Satisfied
Raj bhushan Private Insurance
80 Gupta Yes Company Traditinol Yes Satisfied
Private Insurance
81 TN Rao Yes Company Traditinol Yes Very satisfied
82 Baccha Singh Yes Company Plan No Satisfied
Mushtaq Private Insurance Health
83 Ahamed Yes Company Plan Yes Satisfied
Private Insurance
84 S D Khatri Yes Company Traditinol Yes Satisfied
Private Insurance
85 BB Prasad Yes Company Traditinol Yes Satisfied
Private Insurance
86 R Venketesh Yes Company Term Plan No Very satisfied
Ranjanna S Private Insurance Health
87 Khanna Yes Company Plan Yes Satisfied
88 Rajesh Kumar Yes Company Plan Yes Satisfied
Ashish Kr. Private Insurance
89 Tiwari Yes Company ULIP No Satisfied

Vinod Kr. Private Insurance
90 Agrwal Yes Company ULIP No Satisfied
Private Insurance
91 P K Srivastawa Yes Company Traditinol Yes Satisfied
Private Insurance
92 S P Mishra Yes Company Traditinol Yes Satisfied
Private Insurance
93 Ram Bilas Yes Company Traditinol Yes Very satisfied
Ravi shanker Private Insurance
94 Mishra Yes Company Traditinol Yes Satisfied
Public Insurance
95 AP Mishra Yes Company Traditinol Yes Satisfied
Public Insurance
96 HB Srivastava Yes Company Traditinol Yes Satisfied
Bandana Public Insurance
97 Samant Yes Company Traditinol No Very satisfied
Amiya Shanker Public Insurance Health
98 Nayak Yes Company Plan Yes Satisfied
99 Nandlal Jaiswal Yes Company Plan Yes Very satisfied
Public Insurance
100 Manas Benerjee Yes Company Traditinol Yes Satisfied
Public Insurance
101 K K gupta Yes Company Traditinol No Satisfied
Public Insurance
102 Awadh Sharama Yes Company Term Plan Yes Satisfied
103 SN pandey Yes Company Plan Yes Satisfied
Private Insurance
104 Neha jaiswal Yes Company Traditinol Yes Satisfied

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