A

SUMMER TRAINING REPORT

ON
“A Study of Ulips Plans in Context of New Unit
Gain Plus and Unit Gain Plus Gold on the Basis of
NAV, RISK and their Impact on Profitability of
the Company for the year (2007-2009)”
SUBMITTED TO
SUBMITTED BY
MS. RICHA GOYAL
RAJESH KUMAR
LECTURER
ROLL NO:1166/09
T.I.M.T
M.B.A (F) SEC. 2
TILAK RAJ CHADHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY (TIMT)
(AFFILIATED TO KURUKSHETRA UNIVERSITY, KURUKSHETRA & APPROVED BY
AICTE)
 CONTENTS
 Introduction

 Company Profile
 Topic Introduction
 Theoretical Framework

 Research objectives
 Research Methodology

 Hypothesis Development and Testing

 Data Collection
 Analytical Tools
 Statistical Tools
 Limitations of the Study

 Results and Findings

 Suggestions &Recommendations
 ABOUT AVIVA
 Aviva is UK’s largest and the world’s fifth largest
insurance Group. It is one of the leading providers
of life and pensions products to Europe and has
substantial businesses elsewhere around the world.
 Aviva was also the first foreign insurance
company in India to set up its representative office
in 1995.
 CONT…
 In India, Aviva has a joint venture with Dabur, one of
India's oldest, and largest Group of companies. A
professionally managed company, Dabur is the
country's leading producer of traditional healthcare
products.
 In accordance with the government regulations Aviva
holds a 26 per cent stake in the joint venture and the
Dabur group holds the balance 74 per cent share.
 TOPIC INTRODUCTION
 Unit Gain Plus - Host of features to allow customers to have the
best of all worlds –Protection and Investment with flexibility like
never before.
 Key features of this plan are:

• Guaranteed death benefit

• Choice of 5 investment funds with flexible investment management:
you can change funds at any time.
• Attractive investment alternative to fixed-interest securities
• Provision for full/partial withdrawals any time after three years from
commencement .
 Unit Gain Plus ‘Gold’- Unit Gain Plus ‘Gold’ is Unit Linked
Insurance Plan (ULIP). Investment in ULIPs is subject to risks
associated with the capital markets. The policyholder is sole
responsible for his/her decisions while investing in ULIPs.
 THEORETICAL FRAMEWORK
Construct :

Impact of NAV, Risk on the return of the plans

 
Variables :
 
 Independent variable:
 
NAV
RISK
 
 Dependent variable :

Return of New unit gain plus

Return of Unit gain plus gold
 RESEARCH OBJECTIVES
 To know the relationship between NAV and
RETURN associated with products of Aviva Life
Insurance.
 To study the impact of NAV, RISK on the return
of the Aviva life Insurance 
 To compare the New unit gain plus and Unit gain
plus gold plan’s on the basis of their risk and
return.
 RESEARCH METHODOLOGY

 Type Of Research Design - Descriptive

Research

 Time Horizon - Cross

Sectional
HYPOTHESIS DEVELOPMENT AND TESTING

T- Test
 H0-THERE IS NO SIGNIFICANCE IMPACT OF EXPECTED NAV ON
PROFITABILITY
H1-THERE IS SIGNIFICANCE IMPACT OF EXPECTED NAV ON PROFITABILITY
 DATA COLLECTION
 Secondary data
1. Magazines
2. Journals
3. Websites
4. Annual reports
ANALYTICAL TOOLS
 Treynor ratio

Treynor ratio

So the Treynor Ratio of new unit gain plus is higher as compared to the gold plan
Interpretation:
Sharpe index for new Unit gain Plus is higher as compared to the gold Plan.
STATISTICAL TOOLS
 Co-relation

Interpretation: Applied tool states that there is

negative relationship between the two variables. The
relationship is 0.569 which lies between 0.25 to 0.75
and indicates a moderate degree of positive
relationship between NAV and Profitability.
 LIMITATION OF THE STUDY
 The study was conducted in Aviva life in Gurgaon city, which has
60 to 100 insurance prospects only.
 The study is based on the information gathered from the internet.
Therefore in such case it is possible that the information supplied
might be biased.
 As time and tide waits for none so is the case with this research. A
much more detailed analysis could be done had three been more
time spent for data collection. Due to lack of time data from the all
places could not be collected.
 Management of all the activities from one place limited the
research with in it self as appropriate data, which was required, was
not available.
 The result figure may be biased since the subjects/investors may
provide wrong information.
 RESULTS & FINDINGS
 Most of investors not fully aware about Life insurance policies
and their advantage.
 Some of the people, who were related to rural area, did not know
about facility for investment of money in Life Insurance Policy
schemes.
 The proportion of investor and non-investor 20% & 80%.
 The investors were interested more in Policies of LIC because it is
a Government body.
 There is significance difference between Profitability and
expected NAV in both the policies.
 THE UNIT GAIN PLUS is showing the better results as compare
to the UNIT GAIN PLUS GOLD.
 The risk and the profitability in the new unit gain plus is high.
 SUGGESTIONS &
RECOMMENDATIONS
 Tapping the up coming market - Semi Urban Market as there is a
lot of opportunity. Most of the Life Insurance companies are
operating in the metros and big cities as per their present branch
office locations. If they have to increase their market size they have
to open more distribution centers at the various urban and semi-
urban markets.
 The company always should have proper communication with its
front office as well as back office workers to increase the morale
and productivity.
 Premium and economical class of services should be launched by
the company to serve the varied nature of customers.
 The company has to increase the sales force and minimize the
criterion of financial advisors so that the sales of the company will
increase in future and they have applied it in some skilled advisors
cases.
THANK YOU
QUERIES IF ANY…