Summer training project report on

“ Customers-Perspective of ULIP
”

AEGON RELIGARE
LIFE INSURANCE COMPANY

SUBMITTED IN PARTIAL FULFILLMENT OF THE DEGREE OF

MASTERS OF RISK & INSURANCE MANAGEMENT (2008-10)

FACULTY OF COMMERCE,
BANARES HINDU UNIVERSITY.

Submitted by:
Khushboo Jain
Roll no. 09
MRIM
 PREFACE
It gives me immense pleasure to present this research report on
“CUSTOMER-PERSPECTIVE ON ULIP”. The research incorporates analysis
of the features of various unit linked plans, its demand in the market and
after sales service.

The report addresses various issues, which would help in identifying the
needs of individuals and suggesting for the right unit linked plan.

It is submitted as a part of the course curriculum of Faculty of Commerce,

BHU, Varanasi.

The report is written in an easy language using systematic methodology.

I have given my best efforts to cover all the aspects related to the topic and
to make the report purposeful.
 Acknowledgement
It is said that bidding thanks to the well-wisher lessens the weightage of its contribution.
However mentioning the words of thanks is the only way to express the gratitude. At the outset,
I would like to thank AEGON Religare Life Insurance (ARLC) for having given me an
opportunity to do a project on market research on customer perspectives.

My special gratitude to my project guide, Mr. Mohammed Azam (Agency Development

Manager) for imparting me with clear direction and providing me with practical insights at
various stages of the project.

I would also like to thank Mr. Anil Chaturvedi (Branch Manager) for providing me with
valuable inputs throughout the course of the project.

My sincere thanks to Miss Shradha Gupta (Trainer) and Mr. Prakash (Business Manager)
for helping me out immensely with the execution of the project plan.

I owe a lot to the entire marketing team of ARLC for having provided me with a lot of help and
encouragement at every stage of the project.

I also sincerely thank all the clients of ARLC for having provided me with critical insights into
the operations of ARLC.

Last but not the least, I wish to express my sincere thanks to FACULTY OF COMMERCE
for providing me an opportunity for conducting this training.
 INDEX

S. No. Content

1 Objective
2 Industry profile
3 All About ULIPs
4 Profile of the Company
5 Products
6 SWOT Analysis
7 Competitors
8 Research Methodology
9 Customers
10 Data Interpretation
11 Recommendation & Suggestions
12 Questionnaire
13 Bibliography
PRIMARY OBJECTIVE
To know about customer perspective of Unit Linked Insurance Plans.

SECONDRY OBJECTIVE

• Assessment of customer satisfaction

• Assessment of corporate culture

• To identify whether the customers are aware of the ULIPs of ARLF

• To analyze the factor(s) to increase the sales f ULIPs of ARLF.

• To know the pattern of investment in insurance sector in context of

Varanasi

• To know what they think about investment

• To know perception of consumers about different sector of insurance

company

• To know perception of consumers of their mode of premium payment.

Limitations
Every Research work suffers from certain limitations .The survey undertaken is
also not free from all defects .The purpose of presenting the limitations is to
help the reader in forming opinion about the reliability and validity of the
present result.

1. The universe selected for the survey comprised of only Varanasi. So the
result should not be generalized for the entire bulk.
2. Sample size is too small which may affect the reliability of the result

3. Because of lack interest in such activities, the respondents were not

benefited in any way and therefore there are chances of incorrect or biased
replies.

4. The survey is one sided i.e., I studied the topic from customer’s & company.
Competitors’ viewpoint has not been covered.
INDUSTRY PROFILE
Many may not be aware that the life insurance industry of India is as old as
it is in any other part of the world. The first Indian life insurance company
was the Oriental Life Insurance Company, which was started in India in
1818 at Kolkata.

A number of players (over 250 in life and about 100 in non-life) mainly with
regional focus flourished all across the country. However the government of
India, concerned by the unethical standard adopted by some player against
the consumers, nationalized the industry in two phases in 1956(life) and in
1972(non-life).The insurance business of the country was then brought
under two public sector companies, Life Insurance Corporation of India (LIC)
and General insurance Corporation of India (GIC).

In line with the economic reforms that were ushered in India in early
nineties, the Government set up a committee on reforms (popularly called
the Malhotra Committee) in April 1993 to suggest reforms in the insurance
sector. The Committee recommended throwing open the sector to private
player to usher in competition and bring more choice of the consumers. The
objective of the insurance to penetration of insurance as a percentage of
GDP, which remains low in India even compared to Insurance Regulatory
and Development Authority (IRDA) Bill in 1999. IRDA was set up as an
independent regulatory, which has put in place regulations in line with
global norms. So far it is not made public.

THE INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY
Reforms in the Insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a
statutory body in April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance companies
The other decision taken simultaneously to provide the supporting systems
to the insurance sector and in particular the insurance companies was the
launch of the IRDA’s online services for issue and renewal of licenses to
agents.

The approval of institutions for imparting training to agents has also

ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell their products, which are expected to be
introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
insurance and 6 general insurance companies have been registered.

PURPOSE & NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through
accidental occurrences. Such possible occurrences are called perils. Fire,
flood, breakdown, lightening, earthquake, etc. are perils. If such perils can
cause damage to the assets, we say that the asset is exposed to that risk.
Perils are the events. Risks are the consequential losses or damages.

The risk to an owner of a building, because of the peril of earthquake, may

be a few crores of rupees, depending on the cost of the building and the
contents in it.

Insurance does not protect the asset. It does not prevent its loss due to the
peril. The peril cannot be avoided through insurance. The peril can
sometimes be avoided, through better safety and damage control
management. Insurance only tries to reduce the impact of risk on the owner
of the asset and those who depend on that asset. It only compensates the
losses- and that too, not fully. Only economic consequences can be insured.
If the loss is not financial, insurance may not be possible. Examples of non-
economic losses are love and affection of parents, leadership of managers,
sentimental attachments to family heirlooms, innovative and creative
abilities, etc.

ROLE OF LIFE INSURANCE

1. Life insurance as “Investment”

 Insurance is an attractive option for investment. Which most

people recognize the risk hedging and tax saving potential of
insurance, many are not aware of its advantages as an
investment option as well. Insurance products yield more
compared to regular investment options.
 You cannot compare an insurance product with other
investment schemes for the simple reason that it offers
financial protection from risks, something that is missing in
non-insurance products. In fact, the premium you pay for an
insurance policy is an investment against risk. Thus before
comparing with other schemes, you must accept that a part
of the total amount invested in life insurance goes towards
providing for the risk cover, while the rest is used for
savings.
2. Life insurance as “Risk cover”
o First and foremost, insurance is about risk cover and protection
–financial protection, to be more precise – to help outlast life’s
unpredictable losses. By buying life insurance, you buy peace of
mind and are prepared to face any financial demand that would
hit the family in case of an untimely demise.
o To provide such protection, insurance firms collect contributions
from many people who face the same risk. A loss claim is paid
out of the total premium collected by the insurance companies,
who act as trustees to the monies.
o Insurance also provides a safeguard in the case of accidents or
a drop in income after retirement.

3. Life insurance as “Tax planning”

• Insurance serves as an excellent tax saving mechanism too. The

Government of India has offered tax incentives to life insurance
products in order to facilitate the flow of funds into productive assets.
Under section 80(c) of Income Tax Act 1961,an individual is entitled
to a rebate of Rs.1Lakh on the annual premium payable on his/her
life and life of his/her children or adult children. The rebate is
deductible from tax payable by the individual or a Hindu Undivided
Family (HUF), the rebate is deductible from the tax liability of an
individual or a Hindu Undivided Family.
 ADVANTAGES OF LIFE INSURANCE
Life insurance has no competition from any other business. Many people
think that life insurance is an investment or a means of saving. This is not a
correct view. When a person saves, the amount of funds available at any
time is equal to the amount of money set aside in the past, plus interest. If
the money is invested in buying shares and stocks, there is the risk of the
money being lost in fluctuation of the stock market even if there is no loss,
the available money at any time is the amount invested plus appreciation.
In life insurance, however the fund available is not the total of the savings
already made (premium paid),but the amount one wished to have at the
end of the saving period (which is the next 20 or 30 years).the final fund is
secure from the very beginning. One has to pay for it only as long as one
life or for a lesser period if so chosen.

There is no other scheme which provides this kind of benefit therefore life
insurance has no substitute. Even so, a comparison with other form of
saving will show that life insurance has the following advantages:-

• In the event of death, the settlement is easy. The heirs can collect the
moneys quicker, because of the facility of nomination and
assignment.
• The facility of nomination is now available for some bank accounts.
• There is a certain amount of compulsion to go through the plan of
savings.
• In other forms, if one changes the original plan of savings, there is no
loss.
 • Creditor can not claim life insurances moneys. They can be protected
against attachment by courts.
• There are text benefits, both in income tax and capital gains.
Marketability and liquidity are better. A life insurance policy is
property and can be transferred or mortgaged. Loan can be raised
against the policy.

SIGNIFICANCE FOR AGENT

The following tenets help agent to believe in benefit of life insurance. Such
faith will enhance there determination to sell and their perseverance.

• Life insurance is not only the best possible way for family protection.
There is no other way.
• Insurance is the only way to safeguard against the unpredictable risks
of the future. It is unavoidable.
• The value of human life is far greater than the value of property only
insurance can preserve it.
• Life insurance is not surpassed by many other savings or investment
instruments, in terms of security, marketability, stability of value or
liquidity.
• Insurance, including life insurance, is essential for the conservation of
many businesses, just as it is in the preservation of homes.
• Life insurance enhances the existing standards of living.
• Life insurances help people live financially solvent lives.
• Life insurance perpetuates life, liberty and the pursuit of happiness.
 Unit Linked Insurance Plans (ULIPs)
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life
insurance policy which provides a combination of risk cover and
investment. The dynamics of the capital market have a direct bearing on
the performance of the ULIPs.
Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest
to mutual funds in terms of their structure and functioning. ULIPs is 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
,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 differentiating mutual funds from ULIPs.

ULIPs are a category of goal-based financial solutions that combine the

safety of insurance protection with wealth creation opportunities. In ULIPs, a
part of the investment goes towards providing you life cover. The residual
portion of the ULIP is invested in a fund which in turn invests in stocks or
bonds; the value of investments alters with the performance of the
underlying fund opted by you.

Simply put, ULIPs are structured in such that the protection element and
the savings element are distinguishable, and hence managed according to
your specific needs. In this way, the ULIP plan offers unprecedented
flexibility and transparency.

REMEMBER THAT IN A UNIT LINKED POLICY, THE INVESTMENT RISK

IS GENERALLY BORNE BY THE INVESTOR

Working of ULIPs
It is critical that you understand how your money gets invested once you
purchase a ULIP:

When you decide the amount of premium to be paid and the amount of life
cover you want from the ULIP, the insurer deducts some portion of the ULIP
premium upfront. This portion is known as the Premium Allocation charge,
and varies from product to product. The rest of the premium is invested in
the fund or mixture of funds chosen by you. Mortality charges and ULIP
administration charges are thereafter deducted on a periodic (mostly
monthly) basis by cancellation of units, whereas the ULIP fund management
charges are adjusted from NAV on a daily basis.

Since the fund of your choice has an underlying investment – either in

equity or debt or a combination of the two – your fund value will reflect the
performance of the underlying asset classes. At the time of maturity of your
plan, you are entitled to receive the fund value as at the time of maturity.
The pie-chart below illustrates the split of your ULIP premium:

One of the big advantages that a ULIP offers is that whatever be your
specific financial objective, chances are that there is a ULIP which is just
right for you. The figure below gives a general guide to the different goals
that people have at various age-groups and thus, various life-stages.

Flexibility of ULIPs
Most unit linked policy holders opt for ULIPs because of the flexibility they
offer. There is an option of making lump sum investment or paying regular
premiums using the systematic investment plans (SIP). In ULIPs also one
can choose from annual, half-yearly, quarterly or monthly premium
payment options to suit your financial needs.

Additionally, as a unit linked policy holder, you have the option of investing
your units across various fund options such as equity fund, balanced fund,
debt fund and secure fund. During the tenure of your policy depending on
your risk appetite you can also switch investments from one fund to
another. This gives you the flexibility of customizing your investment plan.

Payment of premiums is discontinued

a) Discontinuance within three years of commencement – If all the
premiums have not been paid for at least three consecutive years from
inception, the insurance cover shall cease immediately. Insurers may give
an opportunity for revival within the period allowed; if the policy is not
revived within that period, surrender value shall be paid at the end of third
policy anniversary or at the end of the period allowed for revival, whichever
is later.

b) Discontinuance after three years of commencement -- At the end

of the period allowed for revival, the contract shall be terminated by paying
the surrender value. The insurer may offer to continue the insurance cover,
if so opted for by the policy holder, levying appropriate charges until the
fund value is not less than one full year’s premium. When the fund value
reaches an amount equivalent to one full year’s premium, the contract shall
be terminated by paying the fund value.

Charges, fees and deductions in a ULIP

1. Premium Allocation Charge This is a percentage of the premium
appropriated towards charges before allocating the units under the
policy. This charge normally includes initial and renewal expenses apart
from commission expenses.

2. Mortality Charges These are charges to provide for the cost of

insurance coverage under the plan. Mortality charges depend on
number of factors such as age, amount of coverage, state of health etc

3. Fund Management Fees These are fees levied for management

of the fund(s) and are deducted before arriving at the Net Asset Value
(NAV).

4. Policy/ Administration Charges These are the fees for

administration of the plan and levied by cancellation of units. This could
be flat throughout the policy term or vary at a pre-determined rate.

5. Surrender Charges Surrender charge may be deducted for

premature partial or full encashment of units wherever applicable as
mentioned in the policy conditions.
 6. Fund Switching Charge Generally a limited number of fund
switches may be allowed each year without charge, with subsequent
switches, subject to a charge.

7. Service Tax Deductions Before allotment of the units the applicable

service tax is deducted from the risk portion of the premium.

Investors may note, that the portion of the premium after

deducting for all charges and premium for risk cover is utilized for
purchasing units

Unit Fund
The allocated (invested) portions 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.

Net Asset Value (NAV)

NAV is the value of each unit of the fund on a given day. The NAV of each
fund is displayed on the website of the respective insurers.

Types of Funds ULIP Offer

Most insurers offer a wide range of funds to suit one’s investment
objectives, risk profile and time horizons. The following are some of the
common types of funds available along with an indication of their risk
characteristics.

1. Equity Funds Primarily invested in company stocks with the

general aim of capital appreciation, risk is Medium to High.

2. Income, Fixed Interest and Bond Funds Invested in

corporate bonds, government securities and other fixed income
instruments, risk is Medium.

3. Cash Funds Sometimes known as Money Market Funds — invested

in cash, bank deposits and money market instruments, risk is Low
 5. Balanced Funds Combining equity investment with fixed
interest instruments risk is generally Medium

BENEFITS OF ULIP
ULIPs provide an opportunity for the discerning investor to benefit from the
return available in their capital market without going for direct investments.

CUSTOMER SATISFACTION:

Market to your own Customer:

Giving a lot of thoughts to your marketing program aimed at current
customer is one aspect of building customers royalty.

Use Complaints to build Business:

When customers aren’t happy with your business they usually won’t
complain to you-instead, they’ll probably complain to just about everyone
else them – and take their business to your competition. That’s why
increasing number of business are making follow-up calls of mailing
satisfaction questionnaires after the sale is made. They find that if they
promptly follow up resolve a customer’s complaint, the customer might be
even more likely to do business then the average customer who didn’t have
a complaint.

REACH OUT TO YOUR CUSTOMER:

Contact with current customer is a good way to Build their loyalty. The
more the customer sees someone from your firm, the more likely you’ll get
the next order. The more they know about you, the more they see you as
someone out to help them, the more they know about your
accomplishments-the more loyal a customer they will be.

Building customer loyalty will be a lot easier if you have a royal workforce-
not at all a given these days. It is especially important for you to retain
those employees such as sales peoples, technical support, and the
customer-service people. Many companies give an attention to retaining
sales people but little to support people.

ULIPs ARE SAFE

Security of Investments
• AEGON Religare ULIPs invest across different asset classes-Equity
debt & money market.
• Stringent investment norms mandated and monitored regularly by
IRDA.

Advantages over financial Instruments

• ULIPs are long-term protection-cum investment vehicles.
• Offer long- term financial solutions for multiple needs.

Flexibilities offered
• Choice of 4 funds with investment in diversified asset classes.
• Choice of switching investment a cross funds.
• Co. manages your hard earned money (you need not be an Expert
financial investor)

Existing trends
• Longer the time spent in financial markets; higher are the Chances of
reaping benefits.

Returns have out performed other investment options, such as Gold, silver,
& government bonds*

“it takes a lot less money to increase your retention of current

customers then to find new ones-but to know I don’t give it as
much effort as I should because it does take a lots of energy and
effort!”

“LIFE INSURANCE IS A WAY TO LIFE”

 Company profile
AEGON, one of the world’s largest life insurance and pension groups,
Religare, one of India’s leading integrated financial services groups and
Bennett, Coleman & Company, India’s largest media house, have come
together to launch AEGON Religare Life Insurance Company Limited.
This venture is dedicated to build a firm future, both for customers and
employees and will continue to balance a local approach with the power of
expanding global operation.

We launched our pan-India multi-channel operations in July, 2008 with over

30 branches spread across India. Our business philosophy is to help people
plan their life better. We provide high quality advice to our customers and
offer superior customer.

In an industry first, AEGON Religare Life Insurance offers policy servicing on

the phone via Interactive Voice Response System (IVR) by issuing the
customer a T-Pin for authentication. It is also the first company to include
the customer’s medical report in the policy kit.

.
The Parent Company
AEGON, Religare and Bennett, Coleman & Company

About AEGON
AEGON’s businesses serve over 40 million customers in over 20 markets
throughout the Americas, Europe and Asia, with major operations in the
United States, the Netherlands and the United Kingdom. With headquarters
in The Hague, the Netherlands, AEGON companies employ almost 32,000
people worldwide. The company’s common shares are listed on four stock
exchanges: Amsterdam, London, New York and Tokyo. It manages EUR 351
billion in revenue generating investments. AEGON has more than 160 years
of experience with its roots going back to 1844. It holds 26% equity in our
company.

• Over 160 years of experience in the insurance business.

• Ranked the 5th largest insurance company in the world on revenues*
• One of India’s leading integrated financial services group
• Presenting 20 countries throughout the Americas, Europe, and Asia
• 4 crore customers worldwide.
• Track record of finding beneficiaries of policies &settling claims.
• Even in the wake of crisis in the financial world rated AA# by rating
agency.
• Services in retail, wealth & institutional spectrums.
• Presence in more them 460 cities &towns &more than 1550
locations

About Religare Enterprises Limited

Religare is a diversified financial services group of India offering a multitude
of investment options. Financial services which Religare offers can be
broadly clubbed across three key verticals - Retail, Institutional and Wealth
spectrums. Religare has also ventured into the alternative investments
sphere through its holistic arts initiative and Film fund. With a view to
expand, diversify and introduce offerings benchmarked against global best
practices, Religare operates in the wealth management space under the
brand name 'Religare Macquarie Private Wealth'. Religare has a pan India
presence, 1837 locations across 498 cities and towns. It also currently
operates from nine international locations following its acquisition of
London’s brokerage & investment firm, Hichens, Harrison & Co. plc. (Now
Religare Hichens, Harrison Plc). REL holds 44% equity in our company

• One of India’s leading integrated financial service group with a pan

India and global presence
• Has an active presence in more than 460 cities and towns with more
than 1550 locations across India
• Made an IPO in Oct-Nov 2007 and was over subscribed by 160 times
• It launched India’s first holistic arts initiative including an Art Fund
• Inked India’s first wealth management joint venture with Macquarie
Bank for its wealth advisory business
• Also launched India’s first Film Fund with Vistaar called Vistaar
Religare Film Fund

About Bennett, Coleman & Co. Ltd. (BCCL)

Bennett, Coleman & Co. Ltd. (BCCL), part of the mammoth Times Group, is
India’s largest media house. It reaches out to 2468 cities and towns all over
India. The group owns and manages powerful media brands like The Times
of India, The Economic Times, Maharashtra Times, Navbharat Times,
Femina, Filmfare, Grazia, Top Gear, Radio Mirchi, Zoom, Times Now, Times
Music, Times OOH, Private Treaties and indiatimes.com. All of its brands are
multinational in outlook, traditional at heart and national in spirit. From the
very first edition on November 3, 1838 the mammoth BCCL Group has
come a long way. By way of the innovative venture of Times Private
Treaties. By way of the innovative venture of Times Private Treaties the
BCCL Group holds 30% equity in our company.

• Owner of The Times of India Group

• One of the Largest media groups in the world
• Some of the prominent brands owned are Times of India, Economic
Times, Times Now, Zoom TV, Radio Mirchi and Femina
• Turnover in excess of Rs.3360 crores
Launched with Impact
Launched in July 2008 AEGON Religare Life Insurance Company is one of
the fastest growing life insurance companies in India. Some of the key
achievements are:

• One of the few life insurance companies to successfully win the trust
of 10,000 customers within first 6 months
• Launched operations with 38 branches across 32 cities in India, the
highest by any insurance player in India
• First life insurance company in India to offer customers a convenient
option of managing their accounts via the phone
• Launched the hugely successful K.I.L.B.(Kam Insurance Lene ki
Bimari) advertising Campaign, which educated customers on the
concept of Under-Insurance
Our Vision
“To help people to plan their life better”
AEGON Religare helps people to plan their life in a better way by providing
better life insurance plan to its customers. Being a new player in life
insurance market it has to be innovative and make promotional programs.

Our Values
 To delight our customers through fresh approach innovative solutions
and seamless delivery
 Better understanding our customers’ needs
 To provide refreshingly different ways of service

New Initiatives
• India’s first holistic arts initiative including an art fund
• India’s first Film Fund
• India’s first 360 degree content rich online investment portal

Launched the Corporate Services Group-a centralized advisory-led

Referral group

• Launched Banc invest Channel, a co-managed distribution channel

offering3-in-1 product (bank, trading and demat account)
• Inked India’s first wealth management joint venture with global
major Macquire Bank
• The latest feather in the Religare hat is their foray into the Life
Insurance market in partnership with AEGON

CHIEF EXECUTIVE OFFICER

Rajiv Jamkhedkar

Mr. Rajiv Jamkhedkar joined AEGON Religare Life Insurance Company

Limited as its Chief Executive Officer in July 2007.
Rajiv Jamkhedkar has two decades of experience in Retail Financial Services
in India. He has worked in all parts of the country – the North, South and
Western India. Mr. Jamkhedkar started his career as a Management
Associate at Citibank N.A. During the course of more than a decade, he
worked in Service, Sales and Product management roles in a variety of
businesses in Consumer Banking.

During his last assignment at Citi, Mr. Jamkhedkar was head of Personal
lending & SME segment, Citibusiness. His main achievement was that he
quadrupled the balance-sheet in 5 years and made these as two of the
most profitable businesses for the bank.

Mr. Jamkhedkar has been involved in start-ups including a three year stint
in HSBC, where he started up the Retail Assets division of HSBC in India. Mr.
Jamkhedkar has a B.Tech Degree in Electronics Engineering from IT - BHU
and an M.B.A. degree from Faculty of Management Studies, Delhi
University.

BOARD OF DIRECTORS

• CHIEF EXECUTIVE OFFICER

RAJEEV JAMKHEDKAR

• CHIEF FINANCIAL OFFICER & APPOINTED

ACTUARY
 K.S GOPALAKRISHNAN

• CHIEF INVESTMENT OFFICER

SAIBAL GHOSH

• CHIEF MARKETING OFFICER

YATEESH SRIVASTAVA

• AUDIT RISK & COMPLAINCE OFFICER

DEBMALYA MAITRA
MAJOR COMPETETORS OF AEGON RELIGARE LIFE
INSURANCE COMPANY

1. LIFE INSURANCE COMPANY LIMITED (LIC)

2. BIRLA SUN LIFE INSURANCE COMPANY LIMITED

3. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

4. HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

5. TATA AIG LIFE INSURANCE COMPANY LIMITED

6. MAX NEW YORK LIFE INSURANCE COMPANY LIMITED

7. OM KOTAK MAHINDRA LIFE INSURANCE COMPANY LIMITED

8. AVIVA LIFE INSURANCE COMPANY LIMITED

9. ING Vysya LIFE INSURANCE COMPANY LIMITED

10. SBI LIFE INSURANCE COMPANY LIMITED

11. METLIFE INDIA LIFE INSURANCE COMPANY LIMITED

12. BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED
STAR CHILD PLAN PROTECT GAIN PLAN

PREMIUM GAIN PLAN WEALTH PROTECT PLAN

PREMIUM GAIN PLUS PLAN INVEST MAXIMISER PLAN

PENSION PLAN

Star Child
AEGON Religare Star Child Plan
To be able to meet your children’s needs and aspirations is what you
always strive towards. AEGON Religare Star Child Plan aims to help you in
doing just that. It not only makes provisions for your children’s future but
also ensures that their future remains secured.

This plan not only make provisions for your child’s future but also ensures
that their future is remains secures in the event of your unfortunate
demise, we assure a lump sum premium and waive off of future premium
till maturity.

Features

Waiver of Premium In the event of your unfortunate demise we assure a

lump sum payment and waive off all future premiums till maturity.

Invest Protect Option If you opt for Invest Protect option, it will not only
help you gain from your investment but also minimize the risk of returns as
your policy nears maturity. It aims to protect your money by systematically
shifting the Fund from the Enhanced Equity Fund to the Secure Fund during
the last 3 policy years.

Auto-rebalancing At the end of every policy year, this feature

automatically rebalances the allocation of your investments in various funds
to the original proportions you had chosen.
Switch This feature helps you shift your investments from one fund to
another. Four switches are free in a policy year.

Maturity On maturity, you receive the fund value existing on maturity. If

you do not wish to take the entire maturity amount at one go, you can avail
of the Settlement Option.

4 Fund Options You have the option of choosing from 4 funds – Secure,
Debt, Balanced and Enhanced Equity Fund.

Partial Withdrawal You or the nominee after death of the Life Assured
can partially withdraw your money after first 3 policy years. The maximum
amount of partial withdrawal in any policy year is 50% of the fund value at
the beginning of that policy year. You can also avail of AEGON Religare Star
Child Plan’s Systematic Partial Withdrawal facility by which we redeem units
periodically from your unit account and credit the money to your bank
account. You can opt for systematic partial withdrawal frequency, say
monthly or quarterly for the duration you choose.

Benefits

• Choice of investment fund.

• Option of withdrawals.
• Option of transfer fund
• Option to top-up investments
• Liquidity as per requirements
• Tax benefit

Get the dual benefit of securing your family financially as well as saving for
a brighter future with our ULIP plans

AEGON Religare Protect Gain Plan

Your life has many phases and it changes with time. But it doesn't have to
be a financial roller coaster ride for you. Life, if systematically managed,
can constantly keep changing for better, leading only to a more secured
tomorrow. AEGON Religare Protect Gain plan aims to do just that for
you. Protection plans are Term Plans which provide only life cover. These
plans can help you get adequately covered and secure your family
financially in case of unfortunate event. These are low cost life insurance
plans.

If you opt for Invest Protect option, it will not only help you gain from your
investment but also minimize the risk of returns as your policy nears
maturity. It aims to protect your money by systematically shifting the Fund
from the Enhanced Equity Fund to the Secure Fund during the last 3 policy
years.

Features and Benefits

Auto-rebalancing feature, at the end of every policy year, automatically

rebalances the allocation of your investments in various funds to the
allocation proportions chosen by you.

Special Units

You will earn additional special units if your policy term is 15 years or more.
The special units will be added to your account at the end of 10th year and
every 3rd year thereafter. The value of special unit would be equal to
1.50% of the average fund value of the last 36 months before the allotment
of special units.

AEGON Religare Wealth Protect Plan

A plan that ensures, that you never miss an opportunity to maximise the
gains and shields it during down turn. AEGON Religare Wealth Protect Plan
guarantees that the returns will not dip below 80% of highest NAV during
the policy term.

Key Features
NAV Protector Fund - The NAV Protector Fund aims to maximise gains
from your investments and at the same time protect such gains from
eroding. The premiums allocated to the NAV Protector Fund will be invested
in a mix of equity and money market instruments. The proportion of equity
will be dynamically managed according to a predefined rule.

Reset Days - Every Friday will be the reset day for the Wealth Protect Plan.

Special NAV - Special NAV is 80% (Eighty percent) of the highest NAV
declared on any reset day. Refer to the Terms & Conditions to understand
how a special NAV is calculated for Regular Premium and Top-Up Premium.

Special fund value - Special Fund Value is calculated as, higher of the
NAV as on date or the Special NAV multiplied by the number of units in your
unit account i.e. (Higher of NAV as on date or Special NAV) x Number of Units.

Key Benefits

On Maturity - On maturity, you receive the Special Fund Value (as

explained above) as on maturity date plus Special Addition.

Partial withdrawal - You can partly withdraw your money after the first 3
policy years. The minimum amount of partial withdrawal is Rs. 5,000 and
the maximum amount of partial withdrawal allowed in any policy year is
20% of the fund value at the beginning of that policy year.
Surrender - You can surrender the policy any time after the first 3 policy
years. Surrender Value is Special Fund Value minus the surrender charges.

Death - In case of your unfortunate demise during the policy term, your
nominee will receive the Sum Assured or the Special Fund Value, whichever
is higher. For further details, refer to Terms and Conditions.

AEGON Religare Premium Gain Plan

You've always worked hard to give your family nothing but the best. But
growing expenses, never-ending price hikes and inflation make most of
your plans difficult. Which is why, it becomes all the more important to
invest and set aside that little something for whatever may come your way.
AEGON Religare Premium Gain Plan helps maximise your investments and
gives you the best possible returns.

Advantage
It will not only help you gain from your investments but will also minimize
the risk on your returns as your policy nears maturity.
It aims to protect your money by systematically shifting the units from
Enhanced Equity Fund to the Secured Fund during the last three policy
years.

BENEFITS
• Choice of investment funds
• Option of withdrawals
• Option to transfer Funds
• Option to top-up investments
• Tax benefit

Have money but no time to spend it? Ensure that it is not the other way
round tomorrow. Know how much pension you would require when you
retire and start saving for your retirement today.

AEGON Religare Premium Gain Plus Plan

You've always worked hard to give your family nothing but the best. But
growing expenses, never-ending price hikes and inflation make most of
your plans difficult. Which is why, it becomes all the more important to
invest and set aside that little something for whatever may come your way.
AEGON Religare Premium Gain Plus Plan helps maximize your investments
and gives you the best possible returns.

AEGON Religare Invest Maximiser Plan

AEGON Religare Invest Maximiser Plan aims to maximize your investment
with the lowest possible premium allocation charges. AEGON Religare
Invest maximiser not only maximizes investment but also provides you
necessary protection.

AEGON Religare Pension Plan

Today, you are living comfortably. There is a regular inflow of income and
your bills are paid on time. However, the future will be different. Rising
inflation will affect the price of the smallest of items. AEGON Religare
Pension Plan provides you with a regular pension that will help you take
care of the much needed basic necessities, post-retirement.

AEGON Religare Intra Pension Plan

All your life, you strive hard and make sure you earn enough and more to
ensure that you and your family get the best of everything. Why should
your post-retirement life be any less?

It will not only help you gain from your investments but will also minimize
the risk on your returns as your policy nears maturity. It aims to protect
your money by systematically shifting the units from Enhanced Equity Fund
to the Secured Fund during the last three policy years. Critical Illness
Rider, Accidental Death, Disability, Dismemberment Rider

BENEFITS
• Choice of investment funds
• Option of withdrawals and to transfer Funds
• Tax benefit
• Option to top-up investments
 SWOT analysis of the Company

STRENGTHS:
• AEGON has over 160 years of experience in the insurance business
• Religare is one of India’s leading integrated financial services
group in India
• Highly successful ad campaign K.I.L.B.
• Advance information technology in extensive use
• Has strong commands &popularity in pension plan.
• Joint venture with Bennett & Coleman gives prestige to popularity of co.
• Worldwide distribution network
• Provides a good range of unit linked products(ULIP) to its
customers

WEAKNESSES:
• Loose departmental Structure
• Being a new entrant in India the awareness is low about co
• No decentralization of AEGON Life Insurance Co.
• Less number of offices in the country

OPPORTUNITIES:
 • Wide geographical reach
• Still large numbers of people are required to be insured in India.
• Since India is a developing country, it can be seen as a high potential
area

THREATS:
• Close competition in premium and commission charged
• Large Competition
• Being a late entrant in India, the life insurance market has been
already exhausted by others
• The brand is yet to gain popularity
 METHODOLOGY

Data Collection Method

In the present research data was collected mainly through Questionnaire
method. However being a qualitative research, it demanded face-to-face
information to some extent. So the data was collected partly through the
interview method. A questionnaire relevant to the research problem was
developed .The questionnaire included questions on investment objective, type
of plan, duration of investment, preferred area of investment, considerations
while choosing a fund etc. The finalized questionnaire was personally explained
to each customer through personal visit to them. Thus the structured
questionnaire and unstructured interview were used as the instruments of data
collection.
Sampling
Convenience Sampling Method has been used in the research, at hand. Firstly I
selected the UNIVERSE which comprised of the surrounding areas of the
location of AEGON Religare Life Insurance Co.-Maldahiya Varanasi.
The sample units (customers) were selected randomly from the whole
universe. The sample unit was selected individually by me in order to impart
maximum accuracy in the research work.

Sample size
The size of the sample (random) was 100. The sample comprised of 100
individuals comprising in the income group of more than or equal to Rs.3 lakh
p.a. and has crossed the age of 25 years. This characteristic was purposely
selected, because of following reasons:
• A person falling in such income group has the ability to save and
invest
• A person of 25 years or more has specified objectives to pursue in his
life

Fieldwork
The fieldwork was performed in the form of data collection. The exercise
involved, filling up of the questionnaires by the customers, detailed face-to-
face conversation, on the spot interviewing and simultaneously reading the
reactions of the respondents.
All the details were recorded objectively. On the whole, the fieldwork was done
unto maximum accuracy from my side but some discrepancy might have crept
in which has already been mentioned under the heading - limitations.

Analysis
After the completion of data collection, the analysis of data took place. Under
this section in-depth and elaborate analysis of the data as well as of the
gathered information was done which was followed by the interpretation and
recommendations.
The interpretation of data has been presented in report in the form of case
studies of individual clients. Most of the items of the questionnaire are related
to the attitude measurement of customers towards Unit Linked Insurance Plans
(ULIPs).
 HOW MANY INVEST

no
34%

yes
66%

Analysis
After analyzing the information, of data collected from visited customers, it
was found that out of 100 people only 66 invest their savings, while 34 do
not invest and keep cash idle in their lockers.

Those who are investing do not have complete information about various
financial products available in the market.
 PREFERENCE OF INSURANCE
FOR INVESTMENT PURPOSE

yes
no 48%
52%

Analysis
After analyzing the information, of data collected from visited customers, it
was found that out of 100 around 48 preferred insurance for making
investments.
Whereas the others, viz., 52 did not liked insurance as the area of their
investments.

AWARENESS ABOUT AEGON

RELIGARE LIFE INSURANCE
COMPANY

yes
22%

no
78%

Analysis
After analyzing the information, of data collected from visited people, it
was found that out of 100 people, 22 were aware about AEGON Religare
while others have hardly heard about the company,

OBJECTIVE OF INVESTMENT IN
ULIP

Dream
Home
Retirement 13%
28%

Tax
Planning
Child
39%
Education/
Marriage
20%

Analysis
After analyzing the information, of data collected from visited people, it
was found that the major objective for investments in ULIPs is tax
planning, while retirement and child education/marriage are secondary.

TIME HORIZON FOR MAKING

INVESTMENT

35

30 29

25 24
22
under 2 years
20 2-5 years
16 6-10 years
15 11-15 years
over 15 years
10 9

0
1

Analysis
After analyzing the information, of data collected from visited people, it
was found that most people either chose 2-5 years or 6-10 years or 11-15
years time period for investing their funds.
While hardly 25% chose the extreme less than 2 years or over 15 years
time period for investing their funds.

OPINION WHILE MAKING

INVESTMENT

consultant 37

family 18

friends 11

own 34

Analysis
After analyzing the information, of data collected from visited people, it
was found that out of 100 people 37 take the opinion of financial
consultants, while 34 do not take opinions from anyone. Only 29 consult
their family and friends.

PREFERRED FORM OF MAKING

INVESTMENT

30
27

25 24

20
20
16
15 14

10

0
Traditional Mutual FDs Shares ULIP
Plans Funds

Analysis
After analyzing the information, of data collected from visited people, it
was found that still FDs are popular in Varanasi followed by traditional
plans and shares, while mutual funds and ULIPs are new for them.

FACTORS CONSIDERED WHILE

SELECTING A FUND

Fund
Fund's Manager
Objective 16%
27%

Fund House
24%

Past Returns
33%

Analysis
After analyzing the information, of data collected from visited people, it
was found that past returns is the important factor while selecting a fund.

Whereas the objective of the Fund and the reputation of Fund house are
also the relevant considerations while selecting a fund.

FACTORS CONSIDERED WHILE

MAKING INVESTMENT
IN ULIP

Returns
Tax Saving 28%
32%

Risk Cover Safety

16% 24%

Analysis
After analyzing the information, of data collected from visited people, it
was found that tax saving and returns on investment are major
considerations while making investment.
 Conclusions and Recommendations
Conclusions
1. There are still large numbers of people who do not invest their
savings and keep them idle.
2. Around half of the people consider insurance as a good area for
investing their funds.
3. Even being a late entrant in a highly competitive insurance market
AEGON Religare is well aware among customers.
4. Tax Planning is the major objective for the purchase of ULIPs
followed by Retirement and Child education/marriage.
5. In India people prefer to invest their funds for long terms especially
for period above 5 years.
6. The survey has shown that customers are quite concerned about
their funds and thus take financial consultant’s advice before
making investment.
7. Indian investors are conservative and invest in FDs and traditional
plans.
8. But there are a majority of investors who are switching towards
Mutual Funds and ULIPs.
9. Today’s investor is educated and invests in ULIP after considering
a number of factors like Fund’s objective, reputation of the Fund,
past returns, etc.
10. Safety returns and tax saving ability of a ULIP influence the
decision making ability of customers.
 RECOMMENDATIONS
Awareness about the Company
AEGON Religare is quite a late entrant in the life insurance industry, but due
to its extensive promotional programs it is gaining awareness.

Pre-Purchase Queries
For a life insurance company it is useful to allow their prospective
customers to remove all their queries before any sale of policies.

Customer-Service
ULIPs are prone to market changes. Thus, the customer needs to be
informed about it regularly through annual report, covering the fund
performance market developments etc. which should include fund
performance analysis, investment portfolio of the fund, investment
strategies and risk control measures adopted.

Level of Satisfaction
As per the findings of the survey undertaken, the level of satisfaction for
AEGON Religare ULIPs is neither too high nor too low. So a great deal of
effort is needed to garner the goodwill of the client.

Customer Service
1) ARLC should try to maintain more close and convincing relationship
with its customers. It is a very essential element in industrial
marketing.
 2) The customer should be provided all information in details as well as
should be acquainted with the facilities and schemes available such
as Annual Reports, Fund’s performance Analysis, etc.
3) The concerned authorities should strictly follow the time schedule
regarding the issue of policy.
4) After sales service should be made more regular and sharp.
5) Customer support department should be expanded in terms of
expertise and personnel. Simultaneously it should be furnished with
new technology in order to make the customer support system more
active and improved.

Comments

 Unit Linked Insurance Plans (ULIPs) have emerged as a hybrid

insurance product which combines the features both of an insurance
plan and a mutual fund. It has provided customers the insurance cover
and an opportunity to participate in the gains of capital market.
 ULIPs also provide the tax incentive to its customers. They can be
provided through various product lines viz. child plans, retirement plans,
pension plans, etc. to satisfy the different needs of customers.
 Although AEGON has 160 years of experience in pension it is yet to
gain popularity in India. In the present scenario the competitors of
AEGON Religare Life Insurance Company (ARLC) are coming out as
mushrooms.
 In such a highly competitive market ARLC must find a way to get itself
noticed out of the bunch. As far as Retirement Plans and Child Plans are
concerned these are well known among customers. The Protect Gain
Plan is high return oriented plan and businessmen prefer this plan.
 QUESTIONNAIRE
1. Do you invest?

Yes No
2. Will you prefer insurance for investment purpose?

Yes No

3. Do you have any insurance plan?

Yes No

4. If yes, then name the company?

-----------------------------------------------------------------

5. Are you aware about AEGON Religare Life Insurance Company?

Yes No

6. What is your Investment objective in ULIP?

Dream Home
Tax Planning
Child Education/ Marriage
Retirement

7. Time horizon in which you have to achieve your financial goal?/how long do you
plan to invest your money?
Under 2 years
2-5 years
6-10 years
Over 15 years

8. Whose opinions do you take while making your investments?

Own
Friends
Family
Investment Consultants

9. Most preferred form of investment?

Traditional Plans
Mutual Funds
FDs
 Shares
ULIP

10. And why?

-------------------------------------------------------------------------------------------------------

11. What factors you consider before choosing a Fund?

Fund Manager
Reputation of Fund House
Past Returns
Investment objective of the Fund

12. Rank the following factors while making investment in ULIP?

Returns
Safety
Risk Cover
Tax Saving

BIBLIOGRAPHY

Websites
  www.AEGONReligare.com

 www.IRDA.com

 www.insurancemagic.com

BOOKS

 Research methods and methodologies-C.R Kothari

 Marketing management-Philip Kotler
 Insurance Principles and Practices-M.N. Mishra
 Principles of Insurance-Motihar
 IC-33