“PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPs) IN THE DISTRICTS OF WEST BENGAL AND FUND ANALYSIS UNDER ULIPs”

FINAL REPORT

1|Page

Srikanta Kundu k_srikanthin@yahoomail.com

A REPORT ON

“PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPs) IN THE DISTRICTS OF WEST BENGAL AND FUND ANALYSIS UNDER ULIPs

Submitted by Srikanta Kundu 08BS0002818

ICICI Prudential Life Insurance Company Ltd.
(Priority Circle)

2|Page

Srikanta Kundu k_srikanthin@yahoomail.com

A REPORT ON

“PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPs) IN THE DISTRICTS OF WEST BENGAL AND FUND ANALYSIS UNDER ULIPs

“THE REPORT IS SUBMITTED AS PARTIAL FULFILLMENT OF THE REQUIREMENT OF MBA PROGRAM OF IBS”

Submitted by Srikanta Kundu 08BS0002818

ICICI Prudential Life Insurance Company Ltd.
(Priority Circle) DATE OF SUBMISSION: 19TH MAY, 2009.

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Srikanta Kundu k_srikanthin@yahoomail.com

RAJIV DAS. PINAKI RANJAN BHATTACHARYYA who has been my constant source of inspiration throughout. I express my sincere thanks to ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED (PRIORITY CIRCLE) for giving me an opportunity to work with them through this summer project. advisors and the customers who helped and cooperated with me during the survey. constant encouragement and practical suggestions based on the experience to focus my efforts to which this work has come to the presentable form. for their invaluable guidance.com . RATNADEEP MAJUMDAR and my company guide MR. I would like to extend my sincere thanks to my faculty guide DR.ACKNOWLEGEMENT Surpassing milestones towards a mission sometimes gives us such degree of satisfaction that we tend to forget the precious guidance and help extended by the people to whom the success of mission is solely dedicated. Lastly I would also like to thank the insurance companies. I take this opportunity to express my profound sense of gratitude to the Head of the Organization MR. SRIKANTA KUNDU 4|Page Srikanta Kundu k_srikanthin@yahoomail.

ABSTRACT 6 INTRODUCTION: 8 LIFE INSURANCE: 9 HISTORY: 9 NEED FOR LIFE INSURANCE: 10 INSURANCE SECTOR IN INDIA: 11 COMPANY PROFILE: 12 UNIT LINKED INSURANCE PLANs (ULIPs) 26 WORKING OF AN ULIP PLAN: 31 OBJECTIVE 32 RESEARCH METHODOLOGY 32 LIMITATION 33 SURVEY ANALYSIS 34 INVESTORS’ REPORT 35 ADVISORS’ REPORT 40 COMPANIES’ REPORT 40 FUND ANALYSIS 41 FUNDS AVAILABLE UNDER ULIPs. 42 PORTFOLIO DETAILS AND NAV PERFORMANCE 43 SUMMARY AND FINDINGS 58 ANNEX – TABLE 1 59 ANNEX – TABLE 2 60 ANNEX – TABLE 3 60 ANNEX –TABLE 4 60 COMPARISON OF INVESTMENT SCHEMES 61 RECOMMENDATION 63 ANNEXTURE 64 REFERENCES: 71 5|Page Srikanta Kundu k_srikanthin@yahoomail.com .

This project is related to analyze the financial literacy of ULIP investors in West Bengal and to determine consumer perception towards investment in ULIPs. government securities. Unit-linked life insurance products are those where the benefits are expressed in terms of number of units and unit price. buyers were staying away from ULIPs. bonds.S. Investors welcome these products as they provide capital appreciation even as the yields on government securities have fallen below 6 per cent. 6|Page Srikanta Kundu k_srikanthin@yahoomail. clear. Unit-linked products are exempted from tax and they provide life insurance. Most insurers in the year 2004 have started offering at least a few unitlinked plans. et cetera) and computed from the net asset value.ABSTRACT ―The rapid growth of the ULIP market in India should be seen as quite ‗natural and expected‘ and the accelerated movement is in pace with the global scenario‖ -Mr. The overwhelming shift in the insurance market in the last 5 years has been driven by a combination of the various factors and has been witnessed in most parts of the world also. The number of units that a customer would get would depend on the unit price when he pays his premium. unitlinked plans also lead to an efficient utilization of capital. C. Being transparent the policyholder gets the entire upside on the performance of his fund. The daily unit price is based on the market value of the underlying assets (equities. according to the insurance company executives. which are insurance cum investment policies with 90-95 percent corpus invested in stock markets and volatility in the stock market is taking a toll on the sales of Unit Linked Insurance Plans (ULIPs) that account for over 80 percent of the industry‘s total sales. IRDA Chief.Rao. They can be viewed as a combination of insurance and investments.com . But presently. which has made the insurers slash payouts. The project I undertook is ―Prospect of Unit Linked Insurance Plans (ULIPs) in the districts of West Bengal and Fund analysis under ULIPs‖. and easy to understand. The advantage of unitlinked plans is that they are simple. Besides all the advantages they offer to the customers.

advisors and companies) containing open ended. tax exemption criterion.com . income and marital status. I had to gain knowledge about the current insurance market situation. 7|Page Srikanta Kundu k_srikanthin@yahoomail. news papers and various related sites I have put in my best efforts to know about these things.For this first of all. sex. close ended and multiple choice questions. Though it is vast area but in this short period of time. To accomplish my project objectives I prepared three questionnaires (for investors. tax deduction act and various financial products. its rules. books. Through these questionnaires I have tried to create difference according to age. Along with this the updates of the funds available under ULIPs are being analyzed just to check the performance and compare it with its benchmark. magazines. with the help of my company guide.

INTRODUCTION 8|Page Srikanta Kundu k_srikanthin@yahoomail.com .

the Tontine Annuity system was introduced where association of individuals was formed without any references to age. even in your absence. which empowers you to accumulate wealth-to buy a new car. making insurance a popular tool for investment coupled with protection. get your children married and even retire comfortably. The first organized life insurance company was founded in 1759 in Philadelphia. life insurance acts as a flexible money-saving scheme. The last remaining survivor received both the year‘s interest and the entire amount of the capital. life insurance provides your family with a sum of money should something happen to you. over the past three centuries numerous other insurance companies sprung up. Put simply. It thus permanently protects your family from financial crises. and a fund was created by equal contribution from each member. In addition to serving as a protective cover. In the 17th century. All surviving members following one member‘s death made contributions and this was done on a post assessment basis. Subsequently. The sum was invested and at the end of each year the interest was divided among the survivors. In North America. HISTORY: The Greek and Romans started the earliest known type of life insurance.com .LIFE INSURANCE: Life insurance is a guarantee that your family will receive financial support. 9|Page Srikanta Kundu k_srikanthin@yahoomail.

Life insurance is the only investment option that offers specific products tailor-made for different life stages. newly married couple. Once. and protecting your assets. While most financial instruments have the underlying benefit of asset appreciation. it becomes imperative to make the right choice when investing your hard-earned money. planning for one's retirement will begin to take precedence. ASSET PROTECTION: From an investor's point of view. fixed income instruments. it could be buying a house. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer. insurance products also have a strong inbuilt wealth creation proposition. and hence ensures that the financial goals of that life stage are met. Life insurance is a unique investment that helps you to meet your dual needs saving for life's important goals. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage. For a young. an investment can play two roles asset appreciation or asset protection. property. GOAL BASED SAVING: Each of us has some goals in life for which we need to save. they decide to start a family. as your life stage and therefore your financial goals change. Let us look at these unique benefits of life insurance in detail. Given the plethora of choices.com . the goal changes to planning for the education or marriage of their children. Clearly. along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of one‘s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Modern day investments include gold.NEED FOR LIFE INSURANCE: Today. the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. As one grows older. Simultaneously. life insurance. 10 | P a g e Srikanta Kundu k_srikanthin@yahoomail. life insurance is unique in that it gives the customer the reassurance of asset protection. mutual funds and of course. there is no shortage of investment options for a person to choose form.

In 1993. But a number of frauds during 1920s and 1930s tainted the image of insurance industry in India. Insurance sector in India grew at a faster pace after independence. it contributes to about 7 per cent to the country's GDP. there were 176 insurance companies in India. The committee was formed to evaluate the Indian insurance industry and recommend its future direction with the objective of complementing the reforms initiated in the financial sector. headed by former Finance Secretary and RBI Governor R.INSURANCE SECTOR IN INDIA: Insurance sector in India is one of the booming sectors of the economy and is growing at the rate of 15-20 per cent annum. with a capital contribution of Rs. Government of India brought together 245 Indian and foreign insurers and provident societies under one nationalized monopoly corporation and formed Life Insurance Corporation (LIC) by an Act of Parliament. In 1938. 1956. 1973. Together with banking services. the first step towards insurance sector reforms was initiated with the formation of Malhotra Committee.N.com . 1956 and General Insurance Business (Nationalization) Act. the Life Insurance Corporation Act.5 crore. The General Insurance Business (Nationalization) Act. LIC Act. 1938. Insurance Regulatory and Development Authority (IRDA) Act. In 1956. viz. Malhotra. Insurance is a federal subject in India and Insurance industry in India is governed by Insurance Act. the first comprehensive legislation regarding insurance was introduced with the passing of Insurance Act of 1938 that provided strict State Control over insurance business. In 1912. The Bombay Mutual Life Insurance Society that started its business in 1870 was the first company to charge same premium for both Indian and non-Indian lives. 1972. insurance regulation formally began with the passing of Life Insurance Companies Act and the Provident Fund Act. 1999 and other related Acts. 11 | P a g e Srikanta Kundu k_srikanthin@yahoomail. The origin of life insurance in India can be traced back to 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. By 1938. 1972 nationalized the general insurance business in India with effect from January 1.

2000. Prudential is the largest life insurance company in the United Kingdom. ICICI had disbursed a total of Rs. Since inception. way back in 1923 to establish Life and General Branch agencies. The Company is a joint venture of ICICI (74%) and prudential plc UK (26%). by the Insurance Regulatory and Development Authority on November 24.2300 Million. As of March 31.851 projects. It commenced commercial operations on December 19.13. Since then it has grown to become one of the largest providers of a wide range of savings products for the individual including life insurance. since inception. The Company was granted Certificate of Registration for carrying out Life Insurance business. becoming one of the first few private sector players to enter the liberalized arena. unit trusts and personal banking. pensions. annuities. was established in 1955 by the World Bank. THE JOINT VENTURE: ICICI Prudential Life Insurance Company Limited was incorporated on July 20. 1. 1900 Million. 2000.848 companies and 16.com . 39. In fact Prudential's first overseas operation was in India. the Government of India and the Indian Industry. covering 6. and caters to the financial needs of over 10 million customers. The authorized capital of the company is Rs. 12 | P a g e Srikanta Kundu k_srikanthin@yahoomail. to promote industrial development of India by providing project and corporate finance to Indian industry. It has a presence in over 15 countries.600 crores approx. The paid up capital is Rs.) as of December 31. 1999. 2000. Asia has always been an important region for Prudential and it has had a presence in Asia for over 75 years. ICICI has thus far financed all the major sectors of the economy.. 2000. ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India.COMPANY PROFILE: ICICI prudential LIFE INSURANCE COMPANY LIMITED ICICI Ltd. PRUDENTIAL PLC: Prudential plc was founded in 1848.070 crores. It manages assets of over US$ 259 billion (Rupees 11.

Icici prudential life insurance company limited: Vision: To be the dominant Life. Pursue goals relentlessly. deliver it to finish.  Understand and value contributions from colleagues.  Promise what you can. Learn from failure. VALUES: Customer first: (Own the customer.  Challenge status quo & do things differently.  Seek and share ideas freely. Integrity: (Be honest and fair in what you say and do)  Practice what you preach. Health and pension player built on trust by world class people and service.  Proactively seek voice of customer and act on it. Own mistake.  Act in a consistent and equitable manner. take ownership for team performance. 13 | P a g e Srikanta Kundu k_srikanthin@yahoomail. Be a team player. PASSION: (Boundless energy and enthusiasm)  Exhibit ‘winning Instinct’. deliver the promise)  Keep customer interest in the centre of all decisions. OWNERSHIP: (If it is to be.com .  Think and act for long term impact.  Recognize and respect internal customers.  Demonstrate speed and urgency for achieving results.  Stand up honestly and fearlessly for what is right. BOUNDARYLESS: (Never say ‘It’s not my job’)  Offer help and support across functions to ensure business success. it is up to me)     Take responsibility and see tasks through to completion. never give up.

Today. B & A has emerged as a vital component of the company's sales and distribution strategy. predictable and sustainable business model.com . The Vision at Customer Service is to deliver 'World Class Service' at every opportunity. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. we are the Number 1 player among private life insurance companies in Group Business excluding Mortgage Reducing Term Assurance (MRTA) with a market share of 26 %( FY 2004-2005). CUSTOMER SERVICE AND OPERATION: The Operations department oils the work processes between the customers and the company to ensure consistent and quality service to the customer. Leave Encashment.FUNCTIONS: ICICI Prudential offers exciting career opportunities for people from a variety of streams. With focus on sales & people development. contributing to approximately one third of company's total business. We offer the entire gamut of products including Gratuity. the Operations department interfaces between the clients and the agents. and manages work processes. Sales Distribution Tied Agency BANC ASSURANCE AND ALLIANCES: ICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. tied agency has emerged as a robust. the branches and the underwriters. 14 | P a g e Srikanta Kundu k_srikanthin@yahoomail. Within a short span of two years. GROUP: The Group Business of ICICI Prudential has been in existence for over 2 years. Mortgage Reducing Term Assurance (MRTA) & Informal Group Term covers. Tied Agency is the largest distribution channel of ICICI Prudential. Superannuation Term Insurance. and with nearly a large number of partners. Employee Deposit Linked Insurance (EDLI). To streamline the operations. comprising a large advisor force that targets various customer segments.

IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. Corporate Planning and MIS provide feedback on business strategies. MARKETING: The Marketing function at ICICI Prudential covers an array of activities . providing strategic inputs for decision-making and management reporting and analysis. The team achieves this through target database acquisition and communicating customized product information through e-mailers. the Solutions Group. This team works as an in house R&D Solution Group. channel support. Finance basically comprises of four functions.brand and media management. The Brand and Communications team is in charge of advertising. that helps develop and nurture ICICI Prudential's corporate identity while effectively communicating its varied product offerings to the customer. This includes driving the budgeting process. The Accounts function 15 | P a g e Srikanta Kundu k_srikanthin@yahoomail. telemarketing and innovative direct mailers. media planning & buying and Public Relations. .INFORMATION TECHNOLOGY: The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. FINANCE: Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations.Web that provides real-time information to customers and is responsible for customer relationship management.com . The Direct marketing team was set up to generate high quality leads for profitable business. consumer research. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution channels. direct marketing and corporate communications.

funds management. Compliance ensures that every action is within the regulatory framework. an intervention that examines management of key inputs for Business Excellence. HR is now committed to building capability through state of the art processes. With its initial focus on operational excellence to deliver benefits and services to staff members. 16 | P a g e Srikanta Kundu k_srikanthin@yahoomail. BUSINESS: Excellence the Business Excellence function is committed to building a quality mindset across the organization. A robust performance management system. compensation system and a segmented training architecture enable it to deliver value to the organization. and expense processing and treasury operations. The Human Resource Function at ICICI Prudential drives the people strategy of the business. information security assessment and business continuity assessment. Internal audit provides assurance to the management over the organizations' control framework and includes process risk management. The team is also driving the Malcolm Baldrige framework across the organization. learning and growth. HUMAN RESOURCE: The people strategy of ICICI Prudential is "To build a committed team with a culture of innovation.com . This includes reviewing compliance requirements and supporting the ethical framework of ICICI Prudential life. ICICI Prudential is the first organization in the Insurance Industry that has adopted the Six Sigma Methodology for process efficiency and measurement.includes preparation and maintenance of financial records.

put simply. We make calls after carefully studying all the factors that influence interest rate direction. With this in mind. Stability and Profitability of our customers‘ funds. Our investment management team that has a cumulative experience of more than 50 years in various aspects of market like research. fiscal deficit. We clearly define an asset allocation strategy that matches the risk characteristics of the corresponding liability. and thereby institutionalize decision-making. inflation. each of which has varying degrees of discretion and considers detailed research in order to decide the best portfolio composition. growth of money supply. our investment focus is to ensure long term Safety. and hope to use these funds to protect and achieve the dreams and aspirations of their families. risk management etc. or. global interest 17 | P a g e Srikanta Kundu k_srikanthin@yahoomail.STRATEGIES TAKEN BY ICICI: As a life insurance company. retirement solutions or other endowmentrelated funds. be it for child plans. The emphasis is to segregate the decision to buy scrip from the process of actually buying it. INVESTMENT DECISIONS: Debt investments target a mix of government and corporate bonds. The investment process is backed by intense research and analysis and comprises qualitative as well as quantitative measures. The top management teams at ICICI Bank and Prudential Corporation Asia ably guide the investment team in making the strategic asset allocation and continuously monitor the performance of the investment team.com . Our aim is to achieve superior returns for a given level of risk. such as RBI policy and stance. trading. INVESTMENT PROCESS: Our investment management process relies on analytics & research to achieve positive risk-adjusted returns in each product category. The investment decision-making process has three tiers. we know that our customers trust their monies with us for the long-term. – we ensure that the promise we have made to the customer will be met. credit off-take. In order to meet this objective. we have developed an investment framework that is based on a sound investment process coupled with a rigorous and sophisticated risk management strategy.

performance track record (in relation to the sector). BENCHMARKS: To ensure that we maintain a strict discipline in managing policyholders‘ funds. transparency in disclosures. niche player. However we do invest in mid-caps provided they satisfy at least one of the criteria viz. The investments in equity are targeted at long-term capital appreciation. In summary. In addition. We have a clearly articulated benchmark for each of our funds and have welldefined deviation limits vis-à-vis benchmark at both the sector and stock level. We are not bound by traditional pure value or growth driven strategy and continuously look where both co-exist. we have clearly articulated benchmarks for various unit-linked funds. presence in high growth industry. industry health. one of the industry segment leaders. would enable us to deliver to our customers safety. as we believe that they offer higher risk adjusted returns. we believe. considering several factors like management quality. our investment process is a function of extensive research and is based on data and reasoning. stability and returns on their investments with us. It is our endeavor to give better returns than the benchmark to policyholders for all the funds that we manage. its perception of management quality and demand and supply situation in stock of a particular entity influences the investment decision. Thus the focus is on ensuring consistent. the team‘s assessment of economic cycle. Portfolio diversification lies at the core of our investment strategy. Detailed research reports obtained from credit rating agencies form the primary basis for investment decisions. backed by superior risk control measures. W e combine a top-down and bottom-up approach while choosing stocks for our investment. In addition we also have strict deviation limits vis-à-vis benchmarks that ensure that we do not take undue exposure in any particular sector or stock. offer a play on outsourcing opportunity or structural turnaround in performance. Our equity portfolio has a large cap bias. dividend track record. 18 | P a g e Srikanta Kundu k_srikanthin@yahoomail. stable and better risk adjusted performance over long term for our policyholders.com .rate scenario and market sentiment. This. execution capabilities etc.

The core value is the customer the confidence protecting your loved ones. Child plans. Market-linked plans. the company attached a creative number has changed to one of a bitten apple to Mumbai‘s ubiquitous where ‗customer preference‘ lunchboxes. It is a powerful proposition. ICICI Prudential‘s product range has been developed on the understanding that different people have their own sets of needs at various stages of their lives. A strong brand certainly boosts sales. innovative products. indeed.Savings plans.Product: ICICI Prudential‘s ultimate promise is financial security. those communications task was to that the company hopes to project: lifelong build credibility. and thus ensure protection in every step of life. Promotion: ICICI Prudential is a case study in how advertising and marketing can play a vital role Forbes Six Sigma rated Dabbawalla organizational re-shaping an industry. It worked wonderfully with Mumbai‘s rules the roost. Demonstrated how an industry.com . complete range of products . the associate with ICICI Prudential are. but without customer-friendly. Brand-building in a complex category like life insurance is Brand Values an uphill and multi-faceted task. that would meet this need. which could be trusted to invest funds ICICI Prudential. even the best brand would not last long. and work closely with them to customize a product secure life and in the process. It has thus built a flexible portfolio of products that can be customized to cater to varying needs of people at each life stage. The aim was to encourage people to view insurance not as a compulsory tax saving instrument. throughout life‘s ups that it was ‗a company that and downs. so as to give protection and value for money. 19 | P a g e Srikanta Kundu k_srikanthin@yahoomail. At the time of launching Market research reveals that the values people operations. where the customer was In a unique effort to create awareness about a taxnothing more than a policy saving product. one. Advisors can offer a create the differentiator for brand ICICI Prudential. It has in Mumbai for a direct marketing exercise. but as a means to lead a worryfree. office-goers and one that translated into substantial business for the company. The company‘s philosophy has been to help customers understand their financial needs. is taking into the marketplace.

ICICI Prudential has embraced the ‗Six Sigma‘ approach to quality. This campaign contributed extensively to raising brand Recent Developments awareness and creating a distinctive identity for the company. not life‘ campaign succeeded in bringing retirement planning into the consideration set of a younger target audience. the sound financial In fact. In keeping with its belief that a happy customer is At the same time the theme of protection was the best endorsement. The refreshingly different ‗Retire from work. Investment plans and group reflected in the line: ‗Suraksha: Zindagi ke har plans – and tailor a flexible solution to meet the kadam par‘. an carried forward with ICICI Prudential‘s ‗Safe Puja‘ contest where Puja Pandals contested to be the exercise that begins and ends with the customer – ‗Safest‘ Puja Pandal.com . ICICI Prudential was the first to un-bundle backing and credentials of ICICI and Prudential. the company launched a new corporate campaign – an extension of the ‗Sindoor‘ communication – which aims at Things you didn't know about ICICI Prudential The logo is the combination of ICICI Bank‘s I-man and Prudential‘s lady prudence. ICICI Prudential is the only Indian life insurance company to have an equity base of more than Rs. 5 billion. ICICI Prudential is the only life insurance company to implement a Six Sigma quality program. pioneering the concept of ‗riders‘ and showcased products from different segments. while Prudence epitomizes wise conduct. Very recently. less than 5% have prior experience in the life insurance industry.Protection plans. This initiative is concept of protection with the popular local event of Durga Puja. The media campaign was complemented by seminars to spread awareness about the need for retirement planning. 20 | P a g e Srikanta Kundu k_srikanthin@yahoomail. Of the company‘s 2. product benefits. and won a Silver Effie for its efforts. The I-man signifies the dynamic individual with drive and conviction. The campaign featured a significant customer‘ changing needs at every stage of life. This beautifully tied in the from capturing his voice to measuring and responding to his experiences.000 plus employees. The average age of its employees is 29 years. And soon after introduce comprehensive market-The advertising idea was encapsulated in the linked and retirement plans. competitive advantage. The brand proposition for all the campaigns was Retirement plans. symbol of protection — the ‗Sindoor‘. Every three minutes ICICI Prudential protects one more Indian life.

and employee services. Accessible. Mediclaim. Compensation.  HR Policies & Procedures: The Policies and procedures laid down here promote the philosophy of the Company with regard to standards of excellence. 21 | P a g e Srikanta Kundu k_srikanthin@yahoomail. We drive the same by linking individual performance objectives to business objectives and evaluating performance consistently and fairly. Goal setting. We recommend that you make yourself aware of the entitlements.A. is an enabler for our People Processes. PACE: The PeopleSoft initiative P. Transfers etc.Performance Management: We are committed to creating a performance driven culture through effective management of performance of all staff members in a way that is mutually beneficial. Convenient and Easy and a key stepping-stone in providing a platform for HR processes that are truly world standard. Appraisal Process.C.com . The objective of this section is to inform you of the Policies related to Travel. It is Personalized.E.  Capability Development Programs (S&D): The focus of our Capability Development Programs is to create a robust design for assessment of high performing employees in sourcing roles and provide a framework for their career progression. terms of employment. Job Descriptions etc. the philosophy. To know more about the Performance Management system. click on the Performance Management Link..  Training & Capability Development Programs: The focus of our Training is to develop key competencies & skills among staff members so as to facilitate attainment of full people potential. employee development.

and quality. but indiscriminately moving customer traffic to a company's Web site or haphazardly outsourcing call centers can make them less rather than more effective. so they experienced less pressure than manufacturers did to overhaul every aspect of their operations. But when the boom in equity markets cooled off. Manufacturing lessons for service industries: Insurance companies are in the thick of this transformation. revenues generated. 22 | P a g e Srikanta Kundu k_srikanthin@yahoomail. A few. No one can argue with the need to keep a firm grip on costs. are adopting tools and practices pioneered by manufacturers to help them improve the way they deliver value to customers. Only then can companies transform their call centers into strategic assets that provide a competitive advantage and promote growth. Companies that get the most from their call centers act on three imperatives. by running their businesses more effectively.Direct marketing: 1. Getting more from call centers: Call centers have become essential to the marketing and customer care strategies of many businesses over the past 30 years. And they ensure the best possible execution by their agents in all interactions with customers by investing time and money in coaching and in performancemanagement systems. including Paris-based AXA. The key is to develop a customer service strategy that successfully balances costs. They define a customer service strategy that goes beyond merely providing good service at low cost. insurers had to earn their profits by selling products and serving customers—in other words. To be sure. These companies can reap big benefits: increasing revenue from call centers by 20 to 35 percent. To deliver their strategy. and improving the quality of service. they put in place an infrastructure that uses outsourcing and technology in a judicious way. cutting costs by 15 to 25 percent. A number of global insurance giants are thus overhauling their service and operating strategies. 2. for many years their investments generated revenues that shored up their profits.com . But our experience shows that most of these facilities don't maximize their usefulness.

3. 80D. subject to norms prescribed in that section.  Our Pension plans are eligible for a deduction under Sec.  The tax breaks that are available under our various insurance and pension policies are described below:  Our life insurance plans are eligible for deduction under Sec. 80CCC. 80C.com . pricing appropriately. TAX BENEFITS INSURANCE AND PENSION:  Life insurance and retirement plans are effective ways of saving taxes.  Our health insurance plans/riders are eligible for deduction under Sec. Organizing for crm: Companies should treat a customer-relationship-management solution as a product or service and its users as internal customers—by making it valuable.  The proceeds or withdrawals of our life insurance policies are exempt under Sec 10(10D). Yet most incumbents have been slow to meet the on-line needs of their customers. 4. advertising. On-line banking: The indifferent performance of virtual banks in converting the public to on-line banking would seem to hand the advantage to their traditional competitors. 23 | P a g e Srikanta Kundu k_srikanthin@yahoomail. and providing after-sales support.

Lakshmikanth has worked with leading foreign financial institutions. Lucknow. He has 15 years of experience in the area of fund management. Manish is an engineer with a PGDM from IIM Kolkata. FUND MANAGEMENT & RESEARCH TEAM: MANISH KUMAR (SVP & Head – Equity) Mr. Prior to joining ICICI Prudential.Fixed Income) Mr. He has 11 years of experience in the area of equity analysis and fund management. Prior to ICICI Prudential. LAKSHMIKANTH REDDY (SVP & Fund Manager – Equity) Mr. He has 14 years of experience in the areas of treasury. actuarial and fund management. Jitendra is a commerce graduate and has a PGDM from IIM Bangalore. ARUN SRINIVASAM (VP & Fund Manager . Arun has done Masters in Management Studies from Mumbai University. Arun worked with a leading Indian fund house. 24 | P a g e Srikanta Kundu k_srikanthin@yahoomail. trading and fund management. Manish has been with a leading Indian asset management company. Prior to ICICI Prudential. JITENDRA ARORA (VP & Fund Manager – Fixed Income) Mr. he has worked in leading foreign and Indian financial institutions. He has been with ICICI Prudential since the inception of the company and has overall responsibility for managing the entire investment portfolio of the company. Prior to joining ICICI Prudential.ICICI PRUDENTIAL INVESTMENTS: Investments Team: PUNEET NANDA (EVP & Chief Investment Officer) Mr. Puneet is an engineer with a PGDM from IIM.com . He has been with ICICI Prudential since 2001 in the areas of financial risk management. He has 11 years of experience in the areas of treasury and trading. Lakshmikanth is an engineer with a PGDM from IIM Ahmadabad.

Shiladitya is an engineer with post graduation from IIITM Gwalior. Prior to ICICI Prudential. He has 8 years of experience as a research analyst. he has worked with both Indian and foreign financial institutions. Sumanta is an engineer with PGDM from IIM Indore. Sumanta has 2 years of experience as an equity analyst. Fatema is an engineer with PGDM from SP Jain Institute (Mumbai). SHILADITYA DASGUPTA (Associate Vice President & Equity Analyst) Mr.com . Meghana is a Chartered Accountant with a PGDM from IIM Bangalore. She has 10 years of experience in the areas of treasury. He has 5 year of experience as an equity analyst. FATEMA PACHA (Manager & Equity Analyst) Mrs. Prior to ICICI Prudential. Prior to ICICI Prudential. Prior to ICICI Prudential. fund management and asset liability management. 25 | P a g e Srikanta Kundu k_srikanthin@yahoomail. she has worked with a leading domestic fund house. he has worked with a leading foreign financial institution.MEGHANA BAJI (VP – Investment & Risk Management) Mrs. Meghana worked with a leading private bank in India. She has 2 year of experience as an equity analyst. SUMANTA KHAN (Manager & Equity Analyst) Mrs. Akalp is an engineer with a PGDM from IIM Kozhikode. Prior to ICICI Prudential. Shiladitya worked both in a leading foreign financial institutions and a domestic broking house. AKALP GUPTA (Senior Manager – Equity Dealing & Analysis) Mr.

All unit linked plans have a term or duration for which the policy is taken. Premium options in ULIP: Single or Regular 26 | P a g e Srikanta Kundu k_srikanthin@yahoomail.5*Term*Annual Premium 5*Annual Premium Minimum Policy Term Minimum term of 5 years for all unit linked plans.com .UNIT LINKED INSURANCE PLANs (ULIPs) Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of protection and flexibility in investment. Remember The minimum sum assured also depends on the term for which the policy has been taken Premium Customer gets to decide the premium to be paid as per his investment capacity. This needs to be specified on the start or onset of the policy. The policy value at any time varies according to the value of the underlying assets at the time. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). BENEFITS Life protection Investment and Savings Flexibility Adjustable Life Cover Investment Options Transparency Options to take additional cover against Death due to accident Disability Critical Illness Surgeries Liquidity Tax planning CONCEPTS Policy Fundamentals Sum Assured Implications Highest of the either of the two: 0.

then the sum assured is applicable for a period of 2 years from the last unpaid premium post which the policy will be foreclosed and the applicable surrender value will be paid. It ensures that the life cover continues even if the policyholder discontinues paying future premiums. If the policy is not reinstated it gets terminated and the surrender value is paid. 27 | P a g e Srikanta Kundu k_srikanthin@yahoomail.Policy Fundamentals Cover Continuance Implications In case the policy holder is unable to pay premiums anytime after payment of 3 years premium and the completion of 3 policy years the policyholder can avail cover continuance option. If policyholder wants to restart premium payment. the payment needs to be made within 24 months from the last unpaid premium. This period is called the re-instatement period. The option will be available as long as the fund value remains over 110% of one year premium. Revival There is an option to revive the insurance policy within 2 years from the date of lapsation.com . Remember All the applicable charges will be automatically deducted from the units available in the fund. In case the policyholder has not opted for cover continuance.

half-yearly. Settlement options The policyholder has an option to withdraw his/her money systematically over a period of 5 years on maturity of the policy. then the sum assured paid on death is reduced to the extent of partial withdrawal made in the preceding two years. If the partial withdrawal is made before 60 years of age.LIQUDITY OPTIONS Policy Fundamentals Surrender value Partial withdrawal Implications Surrender value can be paid only after the end of fifth year and after the 3 completed policy years.com . then the sum assured paid on death is reduced to the extent of all partial withdrawal made from the age of 58 onwards. 28 | P a g e Srikanta Kundu k_srikanthin@yahoomail. Payment modes available yearly. Switch and ATP option are not allowed during settlement period.There is no life cover during the settlement period. Policy holder can withdraw the full amount any time without any penalty. Partial withdrawals not applicable in pension plans Remember Minimum surrender value has to be equal to 1 year full premium. monthly (through ECS). Can be made after the third policy anniversary Effect of death benefit on partial withdrawal. It can be exercised for a period of 1/2/3/4/5 years from maturity. If the partial withdrawal is made after 60 years of age. Provides you the flexibility to receive a structured payment of fund value depending on the period and payment mode selected.

These charges are popularly known as Admin. These charges account for the initial expenses incurred by the company in issuing the policy like cost of underwriting. loading levied by cancellation of units. ADMINISTRATIVE CHARGES: These charges are deducted on a monthly basis to recover the expenses incurred by the insurer on servicing and maintaining the life insurance policy. They are exclusive of any expenses. These charges vary from plan to plan. Mortality Age 29 | P a g e Srikanta Kundu k_srikanthin@yahoomail.CHARGES IN ULIP PREMIUM ALLOCATION CHARGES: These charges are deducted upfront from the premium paid by the client. Charges. These charges vary from plan to plan. MORTALITY CHARGES: These are the costs of life insurance cover. cost of medicals (if applicable). Only after these charges have been deducted that the other charges are charged or money diverted towards funds for investment.com . advisors commissions and other incidental expenses.

Premium This option redirection allows the policyholders to change the allocation of the renewable premiums. Details Switch Features 4 switches are completely free per policy year. ATP will cease if the funds in the protector are insufficient. 2000. This option provides the customer with the benefit of reallocating fresh premiums as per the prevailing market condition. Premium redirection is free. his risk appetite changes. The funds would get transferred automatically on a fixed date every month as a fixed amount or percentage. Subsequent switches will be charged a nominal fee of Rs.com . Automatic Transfer Plan (ATP) The policyholder is relieved of the burden of keeping a constant track of the market fluctuations. 100. As the policyholders age progresses. Allocation of previous premiums remains unchanged. Minimum ATP is Rs. Benefits The policyholder retains control of his/her investments.FUND ALLOCATION OPTIONS AVAILABLE Objective It is an option which allows the policyholders to shift the funds from one fund to another as per the financial goals and market condition. therefore these options are applicable to only future premiums. Policyholder can choose either a fixed amount or a fixed percentage transferred periodically. 30 | P a g e Srikanta Kundu k_srikanthin@yahoomail. Policyholders can keep reallocating his investments across the various funds. Since the reallocation happens every month he gets the benefit of rupee cost averaging.

750 The mortality charges levied in the initial years subsequently come down. 20. equity or balanced options in any proportion he wants.250 invested in chosen options ASSET ALLOCATION Debt Equity Balancer UNITS ALLOCATED The policyholder can allocate the corpus to the debt. He can also change this allocation based on his reading of market conditions.WORKING OF AN ULIP PLAN: PREMIUM Rs.000 LESS CHARGES Rs. INVESTMENT Corpus of Rs. Up to 4 switches in a year are free.000 Allocation Charges Admin Charges Riders Charges REMAINING AMOUNT Rs.000 LIFE COVER MORTALITY CHARGES Rs. VALUE OF INVESTMENT SHOWN AS NAV 31 | P a g e Srikanta Kundu k_srikanthin@yahoomail. only 12% of the annual Dedt premium paid is deducted while the rest flows into the investment corpus. 15. 4.com . From 3rd year onwards. 16.

OBJECTIVE The main objectives of my project are:  To study the awareness of ULIP in the market place  To analyze the financial literacy of ULIP investors in West Bengal  To determine consumer perception towards investment in ULIPs.  The geographical sampling unit under study has covered the area of Bankura. Purulia. advisors and companies) have been designed. It is the non probability sampling. RESEARCH METHODOLOGY  The research design adopted in this study is Descriptive Research Design. sex and marital status. The required data collected through questionnaire.  To study investors satisfaction level. This sampling procedure does not have any basis for estimating the probability that each item in the population has included in the sample.. Midnapore and Kolkata of West Bengal.e. Burdwan. 45 (Advisor) and 5 (company) have been taken for the survey. Total three questionnaires (for investors. 32 | P a g e Srikanta Kundu k_srikanthin@yahoomail. A descriptive research design is the one which is description of the state of affairs as it exists at present.com .  To study the latest trends in the market which helps in its repositioning and decision-making?  To Draft Questionnaire and collect feedback from the Investors. It includes survey and fact finding enquiries of different kinds. Here the sampling is based on three demographic factors of the investors i.  The sampling adopted here is Stratified Random Sampling. Advisors and Companies.  A sample of 100 (Investor). age.

We have taken a sample of 100 investors.  Firstly sample testing is done on 10 samples and on the basis of the feedback and responses of these respondents. Frequent changes in the market trend and consumer preferences. The information required for our project was collected mainly from the primary sources and even from secondary sources. LIMITATION  The data which will be collected from customers and dealers is through questionnaires and is subject to response errors. various modifications done in the questionnaire and then final survey is done by questionnaire schedule method.  The data that will be collected is primary and secondary and have chances of discrepancy.com . Internet and magazines are used as secondary source. The primary source consists of the data analyzed from questionnaires and interaction with the users at that time only. This sample is not very large for analysis and the major population in the sample group will be middle class group that will make deviation in the results and the inaccuracy of the results because of respondent‘s response  33 | P a g e Srikanta Kundu k_srikanthin@yahoomail.   Our observation is confined to some parts of West Bengal only. 45 advisors and 5 companies only.

com .SURVEY ANALYSIS 34 | P a g e Srikanta Kundu k_srikanthin@yahoomail.

com .INVESTORS’ REPORT DISTRIBUTION OF INVESTORS BY DEMOGRAPHIC FACTORS PROFILE PARTICULAR NO OF RESPONDENTS PERCENTAGE SEX MALE FEMALE 82 18 82% 18% AGE 15 to 30 31 to 45 46 to 60 61 & above 35 40 20 5 35% 40% 20% 5% MARITAL STATUS MARRIED UNMARRIED DIVORCED WIDOW(ER) 56 28 2 14 56% 28% 2% 14% 35 | P a g e Srikanta Kundu k_srikanthin@yahoomail.

5 lacs. 21% people save 15% to 30% of their annual income and the rest 3% save more than 30% of their annual income. 76% people save less than 15% of their annual income.5 Lacs to 3 Lacs 3 Lacs to 5 Lacs 5 Lacs & above 32% In my sample size.com .5 lacs and 3 lacs. 32% are in between 1. 12% within 3 lacs and 5 lacs and the rest 10% people is above 5 lacs.5 Lacs 1. ANNUAL INCOME 10% 12% 46% < 1.According to my survey report out of 100 investors 46% have an annual income of less than 1. SAVINGS 3% 21% < 15% 15% to 30% 30% & above 76% 36 | P a g e Srikanta Kundu k_srikanthin@yahoomail.

PLAN TAKEN SO FAR 33% NON-ULIP ULIP 67% 37 | P a g e Srikanta Kundu k_srikanthin@yahoomail. 67% people have taken ULIP and the rest 33% have taken NON-ULIP. total 57% of the Life Insurance market has been tapped so far and the rest 43% are yet to be covered.com .In my survey report. LIFE INSURANCE POLICY HOLDERS 43% 57% YES NO Out of the 57% market tapped so far.

Bajaj Allianz (11%).com . 42% people choose LICI for the NON-ULIP plans followed by ICICI (21%). Kotak Mahindra (3%) and others (3%). PREFERED PLAN 39% NON-ULIP ULIP 61% Out of the 100 sample. COMPANIES FOR NON-ULIP 3% 21% ICICI BAJAJ ALLIANZ KOTAK MAHINDRA 11% LICI HDFC 42% 3% OTHERS 20% 38 | P a g e Srikanta Kundu k_srikanthin@yahoomail. HDFC (20%).Out of the rest 43% people which remain untapped 61% prefer to take ULIP and the rest 39% NON-ULIP.

when question arises for ULIP 39% people choose ICICI followed by LICI (30%). COMPANIES FOR ULIP 3% ICICI 21% 39% BAJAJ ALLIANZ KOTAK MAHINDRA LICI 30% 2% 5% HDFC OTHERS According to my survey report. 69% people are aware of the features of ULIP and the rest 31% are not aware of these. AWARENESS OF FEATURES OF ULIP 31% YES NO 69% 39 | P a g e Srikanta Kundu k_srikanthin@yahoomail. HDFC (21%).com .On the other hand. Others (3%) and Kotak Mahindra (2%). Bajaj Allianz (5%).

ADVISORS’ REPORT As per the 45 advisors wherein 71% are there in this job for more than 5 years. Advisors are the main way which they follow to communicate with their customers. 33% sold only ULIPs and the rest 27% sold only NON-ULIPs. 40% are from LICI followed by ICICI (35%). As per all the 5 companies they provide all the training to all their advisors before they start their job.com . All the 5 services (mentioned in the questionnaire) are provided by all of them. COMPANIES’ REPORT As per the interviews conducted with 5 insurance companies (ICICI Prudential. 60% of them think that ULIP is more demanding than NON-ULIP. 40 | P a g e Srikanta Kundu k_srikanthin@yahoomail. Bajaj Allianz. 60% of them use telephone followed by direct (24%). Bajaj Allianz (21%) and Other (4%). Total 87% of them take more than 10 days to issue a policy. As far as the growth is concerned. As far as the factors are concerned which make ULIP more demanding. SBI Life. 40% of them have sold both the plans. high risk (20%). Out of the advisors who sold both the plans. 91% of the advisors have underwent all the training provided by their respective companies. transparency (4%) and other (2%). 67% have sold ULIP the most and the rest 33% have sold NON-ULIP the most. all the companies think that they have moderate to high growth rate in the districts of West Bengal. others (11%) and through net (5%). All of them think that the ULIPs have been affected by the current market scenario due to market volatility. As far as their approach to the customers are concerned. All the 5 companies go for need analysis of the customers before giving them the right choice. out of the 60% advisors high return (52%) followed by. all of them deal in both the plans – ULIP as well as NON-ULIP and their maximum market coverage is there with ULIP. Birla Sun Life and TATA AIG). fund options (22%).

FUND ANALYSIS 41 | P a g e Srikanta Kundu k_srikanthin@yahoomail.com .

investments.  MAXIMIZER: To generate long term capital appreciation through investment primarily in equity and equity related instruments.  PROTECTOR: To generate a steady stream of income through investment in various fixed income securities. consumption and human capital equity & equity related securities max 100%. Debt. money market & cash max 20%. Fund composition: 60% in large caps stocks and max 20% in debt. safety and liquidity.  RICH: Invests in resources. mid and small cap companies and debt and debt related instruments.FUNDS AVAILABLE UNDER ULIPs.  FLEXI BALANCE: To achieve a balance between capital appreciation and stable returns by investing in a mix of equity and equity related instruments of large.  PRESERVER: To provide suitable returns through low risk investments in debt and money market instruments while attempting to protect capital deployed in the fund. In addition to protecting the capital.com . the fund seeks to provide capital appreciation while maintaining suitable balance between returns. mid and small cap companies. safety and liquidity.  MULTIPLIER: Term capital appreciation from an equity portfolio.  FLEXI GROWTH: To generate superior long term returns from a diversified portfolio of equity and equity related instruments of large. We would seek to generate adequate capital appreciation as well while maintaining suitable balance between returns.  BALANCER: To generate a good mix of long term capital appreciation along with current income through investment in equity as well as fixed income instruments in appropriate proportions depending on market conditions prevalent from time to time. 42 | P a g e Srikanta Kundu k_srikanthin@yahoomail.  CASH PLUS: The investment objective of this fund is to provide accumulation of income through investment in various fixed income securities.

 SECURE PLUS: The investment objective of this fund is to provide accumulation of income through investment in various fixed income securities.28% 8. PORTFOLIO DETAILS AND NAV PERFORMANCE (AS ON 31ST MARCH. The rate of return is very marginal and varies from tranche to tranche. 2009) BALANCER Company 1. Investment will be in fixed income instruments as well as equity in appropriate proportions depending on market conditions prevalent from time to time.48% Government securities / T Bills Fixed deposits with banks 43 | P a g e Srikanta Kundu k_srikanthin@yahoomail. 13.39 has been guaranteed.17% 11.  INVEST SHIELD: The investment objective of this plan is to provide a balanced investment between long term capital appreciation and current income while protecting the capital. 10.  RGF: RGF stands for Return Guaranteed Fund which has been created in order to guarantee the return on the first year premium. In the current tranche (RGF-5) on NAV of Rs.74% Balancer (Balanced) Fund 30 25 Corporate securities NAV 20 15 10 5 0 20-Jan-09 20-May-08 20-Mar-09 20-Jul-08 20-Sep-08 20-Nov-08 Other current assets and equivalent NAV 28.com .33% 50.

35% 5.88% 13.MULTIPLIER 10 9 8 13.32% 44 | P a g e Srikanta Kundu k_srikanthin@yahoomail.56% Other current assets and equivalent Company NAV 7 6 5 4 3 2 1 0 Multiplier Fund NAV 20-May-08 20-Jul-08 20-Sep-08 20-Nov-08 20-Jan-09 MAXIMISER Company 5.com 20-Mar-09 .09% Corporate securities 81.41% Corporate securities Government securities / T Bills Fixed deposits with banks Other current assets and equivalent NAV Maximiser (Growth) Fund 70 60 50 40 30 20 10 0 20-May-08 20-Mar-09 20-Nov-08 20-Sep-08 20-Jan-09 20-Jul-08 NAV 0.99% 3.40% 76.

55% RICH 12 Company 10 1.42% Corporate securities NAV Government securities / T Bills Fixed deposits with banks Other current assets and equivalent 8 6 4 2 0 RICH Fund NAV 80.61% 10.5 13 12.88% 6.88% 16.com 20-Mar-09 20-Nov-08 20-Jul-08 20-Sep-08 .5 12 20-May-08 20-Mar-09 20-Nov-08 20-Sep-08 20-Jan-09 20-Jul-08 NAV 10.5 14 NAV Fixed deposits with banks Other current assets and equivalent 13.PRESERVER Preserver (Short Term) Fund 15 Corporate securities 14.27% 20-Jan-09 20-May-08 45 | P a g e Srikanta Kundu k_srikanthin@yahoomail.57% 72.82% 0.

94% Fixed deposits with banks Other current assets and equivalent Protector (Income) Fund 19 18.com 20-Mar-09 .5 16 15.44% 13.14% 16.5 18 17.36% Corporate securities NAV 38.80% Government securities / T Bills Fixed deposits with banks Other current assets and equivalent Flexi Balanced 14 12 10 8 6 4 2 0 20-May-08 20-Jul-08 20-Sep-08 NAV 8.5 15 20-Jan-09 20-May-08 20-Mar-09 20-Jul-08 20-Sep-08 20-Nov-08 NAV 14.86% 8.5 NAV 17 16.76% FLEXI BALANCE Company 2.56% 34.13% 20-Nov-08 20-Jan-09 46 | P a g e Srikanta Kundu k_srikanthin@yahoomail.PROTECTOR Corporate securities Government securities / T Bills 62.

54% Fixed deposits with banks Other current assets and equivalent NAV 14.5 14 13.50% 11.62% 6.5 13 12.5 12 Cash Plus Fund 10.com 20-Mar-09 .73% 20-May-08 20-Jul-08 20-Sep-08 20-Nov-08 20-Jan-09 47 | P a g e Srikanta Kundu k_srikanthin@yahoomail.36% 20-Mar-09 NAV 13.62% Corporate securities NAV Government securities / T Bills Fixed deposits with banks 0.60% Other current assets and equivalent 14 12 10 8 6 4 2 0 20-May-08 Flexi Growth NAV 80.66% 20-Jul-08 20-Sep-08 20-Nov-08 20-Jan-09 CASH PLUS 15 Corporate securities Government securities / T Bills 63.FLEXI GROWTH Company 0.37% 12.

SECURE PLUS Company 0.17% 7.70% Corporate securities NAV Government securities / T Bills Fixed deposits with banks Other current assets and equivalent 15 14.13% 13.5 14 13.5 NAV 13 12.com .15% 14.66% 20-May-08 20-Nov-08 20-Jul-08 20-Sep-08 INVEST SHEILD 14.36% 5.5 Secure Plus Fund NAV 66.5 11 20-Jan-09 20-May-08 20-Mar-09 20-Nov-08 20-Jul-08 20-Sep-08 49.22% Corporate securities Government securities / T Bills Fixed deposits with banks Other current assets and equivalent 20-Mar-09 20-Jan-09 NAV 12 11.5 13 12.5 12 11.5 Invest Shield 12.44% 48 | P a g e Srikanta Kundu k_srikanthin@yahoomail.83% 19.5 Company 14 13.34% 11.

RGF
Company

Return Guarantee Fund
11.1 11 10.9

10.52%

3.26%

Corporate securities NAV Government securities / T Bills Fixed deposits with banks Other current assets and equivalent

10.8 10.7 10.6 10.5 10.4 10.3 10.2 10.1 NAV

86.22%

PENSION BALANCER
Company 30 25 Corporate securities NAV 26.56% 11.00% 50.04% Government securities / T Bills Fixed deposits with banks Other current assets and equivalent 20 15 10 5 0

Pension Balancer (Balanced) Plan

11.48% 0.92%

NAV

20-Jan-09

20-May-08

49 | P a g e

Srikanta Kundu k_srikanthin@yahoomail.com

20-Mar-09

20-Jul-08

20-Sep-08

20-Nov-08

PENSION MULTIPLIER
Company 12 10 14.23% 1.29% 3.67% 0.64% 80.17% Corporate securities NAV Government securities / T Bills Fixed deposits with banks Other current assets and equivalent 8 6 4 2 0

Pension Multiplier Fund

NAV

20-May-08

20-Nov-08

20-Jul-08

20-Sep-08

20-Jan-09

PENSION MAXIMISER
Company

Pension Maximiser (Growth) Plan
70 60

13.55% 1.12% 5.98%

Corporate securities Government securities / T Bills Fixed deposits with banks Other current assets and equivalent NAV

50 40 30 20 10 0 20-May-08 20-Nov-08 20-Jul-08 20-Sep-08 20-Mar-09 20-Jan-09 NAV

76.97% 2.38%

50 | P a g e

Srikanta Kundu k_srikanthin@yahoomail.com

20-Mar-09

PENSION PRESERVER

Pension Preserver (Short Term) Fund
14.5 14 13.5 13 NAV 12.5 12 20-Jan-09

13.26%

Corporate securities Fixed deposits with banks NAV

17.26%

69.48% Other current assets and equivalent

20-May-08

PENSION PROTECTOR

Pension Protector (Income) Fund
17 16.5 16

11.76% 17.50%

Corporate securities Government securities / T Bills 56.78% Fixed deposits with banks Other current assets and equivalent

NAV

15.5 15 14.5 14 13.5 20-May-08 20-Jul-08 20-Sep-08 20-Nov-08 20-Jan-09 20-Mar-09 NAV

13.96%

51 | P a g e

Srikanta Kundu k_srikanthin@yahoomail.com

20-Mar-09

20-Jul-08

20-Sep-08

20-Nov-08

01% 10.com .77% 11.58% NAV Corporate securities 39.84% 52 | P a g e Srikanta Kundu k_srikanthin@yahoomail.67% 19.67% PENSION FLEXI BALANCE Company Pension Flexi Balanced 14 12 10 1.89% Government securities / T Bills Fixed deposits with banks Other current assets and equivalent 8 6 NAV 4 2 0 20-May-08 20-Jul-08 20-Sep-08 20-Nov-08 20-Jan-09 20-Mar-09 28.50% Corporate securities NAV Government securities / T Bills Fixed deposits with banks Other current assets and equivalent Pension RICH Fund 12 10 8 6 4 2 0 20-May-08 20-Mar-09 20-Nov-08 20-Sep-08 20-Jan-09 20-Jul-08 NAV 3.98% 1.PENSION RICH Company 1.08% 81.

PENSION FLEXI GROWTH Company 11.88% 5.5 13 12.10% Fixed deposits with banks Other current assets and equivalent Secure Plus Pension Fund 14.com 20-Mar-09 20-Jan-09 .50% 13.23% 2 0 20-Jan-09 20-May-08 20-Mar-09 20-Jul-08 20-Sep-08 20-Nov-08 SECURE PLUS PENSION Corporate securities Government securities / T Bills 61.09% 15.5 20-May-08 NAV 10.59% Corporate securities Government securities / T Bills Other current assets and equivalent NAV Pension Flexi Growth 14 12 10 8 6 4 NAV 82.5 12 11.30% 0.31% 20-Nov-08 20-Jul-08 20-Sep-08 53 | P a g e Srikanta Kundu k_srikanthin@yahoomail.5 14 NAV 13.

4200 1.8600 31.8700 0.2900 6.NAME OF THE FUNDS BALANCER PRESERVER PROTECTOR MULTIPLIER MAXIMIZER RICH FLEXI GROWTH FLEXI BALANCE CASH PLUS SECURE PLUS INVEST SHIELD RGF 52 WEEK HIGH 28.3100 10.0900 6.2400 0.3500 14.2500 8.9800 13.0000 14.5100 10.4500 0.1800 1.7200 0.1400 59.7300 13.2400 25.1500 8.6600 17.6868 14.8500 8.3700 13.5000 13.5504 9.5900 0.5900 0.4700 10.1441 52 WEEK LOW 22.6400 12.1300 13.0346 16.9000 14.5500 11.5100 54 | P a g e Srikanta Kundu k_srikanthin@yahoomail.3000 13.3081 4.0932 MEAN STANDARD DEVIATION 1.com .5000 7.4900 15.0800 11.5500 9.4196 18.6100 42.8793 12.3600 11.4100 0.7400 1.

6600 30.3900 0.7084 15.4800 13.0500 1.4200 SECURE PLUS PENSION 14.6500 0.9100 9.4300 PENSION MULTIPLIER 10.6500 PENSION FLEXI BALANCE 12.2000 5.4200 PENSION PROTECTOR 16.4000 8.2525 12.2100 1.6400 24.1200 0.3600 21.3300 6.6100 8.0800 PENSION MAXIMIZER 59.8800 PENSION FLEXI GROWTH 12.9200 6.3400 1.7200 PENSION RICH 11.6696 14.6000 55 | P a g e Srikanta Kundu k_srikanthin@yahoomail.PENSION BALANCER 26.7800 42.com .4000 7.3582 12.1100 10.4300 1.4200 PENSION PRESERVER 14.5000 9.9664 13.6000 0.

65% 8.73% 6.89% -43.00% N/A -1.NAME OF THE FUNDS PERFORMANCE (3 YEARS ANNUALIZED) 5.65% 20.09% N/A -43.97% 6.60% -26.43% 9.01% N/A ANNUALIZED RETURN (1 YEAR) -13.54% N/A ANNUALIZED RETURN (SINCE INCEPTION) 13.com .90% -14.16% 9.66% 9.20% 8.97% -39.51% 8.26% -4.74% 9.95% 9.51% N/A N/A N/A 9.02% 1.42% -7.91% 10.11% -23.26% N/A BALANCER PRESERVER PROTECTOR MULTIPLIER MAXIMIZER RICH FLEXI GROWTH FLEXI BALANCE CASH PLUS SECURE PLUS INVEST SHIELD RGF 56 | P a g e Srikanta Kundu k_srikanthin@yahoomail.96% 7.73% 10.

06% 9.02% 4.62% PENSION FLEXI BALANCE N/A -23.43% PENSION MULTIPLIER N/A N/A -25.47% -11.82% PENSION PRESERVER 9.12% 14.com .03% PENSION FLEXI GROWTH N/A -44.16% 10.17% 6.17% 7.78% -5.12% 7.99% SECURE PLUS PENSION 9.28% PENSION MAXIMIZER -1.43% 22.57% PENSION RICH N/A N/A -14.74% 10.83% -44.72% 57 | P a g e Srikanta Kundu k_srikanthin@yahoomail.PENSION BALANCER 6.55% PENSION PROTECTOR 9.

SUMMARY AND FINDINGS 58 | P a g e Srikanta Kundu k_srikanthin@yahoomail.com .

93 2.06 3. Now as far as the ULIP market is concerned. the 1st preference for ULIP features is for switching option followed by choice of investment and cover continuance (Annex – Table 3). liquidity etc (Annex – Table 4). ANNEX – TABLE 1 Savings Avenue Preference among Respondents Savings Avenue Bonds Mutual Fund Fixed Deposit Stocks Life Insurance WMV 3.38 2.61 Rank 3 4 1 5 2 59 | P a g e Srikanta Kundu k_srikanthin@yahoomail.02 3. the 1st preference goes for market condition followed by profitability. Now when the question of factors which lead the investors to invest in ULIP arises. Although the market is inflated with ULIP but only 31% investors are aware of the features of ULIP. which is a matter of concern. That means 43% markets are still to cover. with Life Insurance ranking 2nd in the order among 5 choices (Annex – Table 1). In the current market only 57% people are with their Life Insurance Policies.The survey reveals that the most preferred investment vehicle in West Bengal is Fixed Deposits. Based on the opinion of the 31% respondents.com . 67% insurance investors are with Unit Linked Insurance Plans (ULIPs) and 61% of the untapped market prefers to take it (Annex – Table 2).

16 2.83 2.16 1.68 Rank 5 3 2 4 1 60 | P a g e Srikanta Kundu k_srikanthin@yahoomail.55 3.16 3.com .27 2 1 ANNEX – TABLE 3 Features Preference among ULIP Investors Features WMV Choice of Investment Switching Options Settlement Options Cover Continuance Riders 3.12 Rank 2 1 4 3 5 ANNEX –TABLE 4 Importance of Factors in ULIP Selection Factors Risk Liquidity Profitability Company‘s Name Market Condition WMV 1.73 3.4 3.8 3.ANNEX – TABLE 2 Plan Preference among Life Insurance Investors Plan WMV Rank Non – ULIP ULIP 1.57 2.

com .COMPARISON OF INVESTMENT SCHEMES SCHEME BALANCER MAXIMIZER MULTIPLIER PRESERVER PROTECTOR FLEXI GROWTH FLEXI BALANCE CASH PLUS INVEST SHIELD SECURE PLUS RICH RETURN MODERATE LOW HIGH MODERATE HIGH MODERATE MODERATE LOW MODERATE LOW HIGH MODERATE MODERATE LOW MODERATE LOW MODERATE LOW MODERATE LOW HIGH MODERATE MODERATE LOW SAFETY CONVENIENCE MODERATE LOW LOW HIGH HIGH LOW MODERATE VOLATILITY LOW HIGH HIGH LOW MODERATE HIGH MODERATE HIGH HIGH HIGH LOW MODERATE MODERATE MODERATE HIGH RGF HIGH LOW 61 | P a g e Srikanta Kundu k_srikanthin@yahoomail.

PENSION BALANCER MODERATE LOW HIGH MODERATE PENSION MAXIMIZER HIGH MODERATE LOW HIGH PENSION MULTIPLIER HIGH MODERATE LOW HIGH PENSION PRESERVER MODERATE LOW HIGH LOW PENSION PROTECTOR MODERATE LOW HIGH MODERATE PENSION FLEXI BALANCE MODERATE LOW MODERATE MODERATE PENSION FLEXI GROWTH HIGH MODERATE LOW HIGH PENSION RICH HIGH MODERATE MODERATE LOW LOW HIGH SECURE PLUS PENSION HIGH MODERATE 62 | P a g e Srikanta Kundu k_srikanthin@yahoomail.com .

Preserver. 6. The research has shown that married people are more open towards policies. they need good knowledgeable advisors who can look after their fund properly. The research has shown that people are not willing to save. However. or Return Guaranteed Fund (where the first premium is guaranteed with nominal rate of interest) 63 | P a g e Srikanta Kundu k_srikanthin@yahoomail. as the ULIP market has been highly influenced by the current market situation the investors should invest their first premium in funds with moderate return and low volatility like Balancer. This particular segment therefore has to be targeted and tapped accordingly. Less participation of women is seen in getting a policy is it traditional or unit linked. Protector etc. 5. 2. Less people are aware of the features of ULIP which is a matter of concern. It means that they are not aware about the benefits of savings. So the company needs to make efforts to initiate women into policies. So. 4.RECOMMENDATION 1. 3.com . So. During the course of the research it was found that the respondents are more inclined towards unit-linked plan because they are becoming more aware of the market condition. the company must take initiative to motivate people towards saving. the advisors should be supplied with better materials by which they can convey them the right and required message. As per the company‘s report.

ANNEXTURE 64 | P a g e Srikanta Kundu k_srikanthin@yahoomail.com .

Rate the following investment options in order of your preference in the scale of 1 – 5 (1-lowest. Marital Status: Married < 1. Age: 15-30 Years 31-45 Years 45-60 Years Above 60 Years 2. Do you have any life insurance policy? Yes No 9.com . 5-highest). Bonds Mutual Fund Fixed Deposit Stocks Life Insurance 7. 2-less minimum. 4-less maximum. 4-high.30 % Divorced Widow(er) > 5 lacs 4. Your approximate annual income: 3 lacs – 5 lacs > 30 % 5. Gender: Male Female 3. Risk Liquidity Profitability Company’s name Market condition 8.(FOR INVESTORS) PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPS) IN THE DISTRICTS OF WEST BENGAL Name: Address: 1.5 lacs – 3 lacs 15 % .5 lacs < 15 % Unmarried 1. What proportion of your annual income do you save? 6. 2-low. Rank the factors that you consider while making an investment in the scale of 1 – 5 (1-minimum. 5-maximum). Which plan have you taken so far? Non-ULIPs ULIPs 65 | P a g e Srikanta Kundu k_srikanthin@yahoomail. 3-average. 3-moderate.

com . What factors lead you to prefer ULIPs to Non-ULIPs? Transparency High return Fund options High risk others (please specify):__________________________ Date: ________________________ Signature Thank you for your kind cooperation. Rank the features available under ULIPs in the scale of 1-5 (1-least likely. 4-more likely. If you are choosing non-ulips. 3-moderate. If you are choosing ULIPs which company comes in your mind? ICICI Kotak Mahindra HDFC Bajaj Allianz LICI Others (please specify): __________ 13. If you do not have any insurance plan. Are you aware of all the features available under ULIPs? Yes No 14. 2-less likely. 66 | P a g e Srikanta Kundu k_srikanthin@yahoomail. which plan would you prefer to take? Non-ULIPs ICICI Kotak Mahindra HDFC ULIPs Bajaj Allianz LICI Others (please specify): ___________ 11. which company comes in your mind? 12. 5-most likely) Choice of investment Cover Continuance Option Switching options Settlement option Additional Protection with Riders 15.10.

Have you under went all the training provided by your company? Yes No If no then please specify the reason:______________________________________ 5. How do you approach your customers? Direct Through Telephone Through Internet Others (please specify):_______________________________________ 67 | P a g e Srikanta Kundu k_srikanthin@yahoomail.(FOR ADVISORS) PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPS) IN THE DISTRICTS OF WEST BENGAL Name: Address: Advisor Code: 1. Total years in job <5years 5years-10years >10years 2. Which plan have you sold the most?(For those whose answer in Q no.com . 5 = Both) Non-ULIPs ULIPs 7. What plan(s) have you sold so far? Non-ULIPs ULIPs Both 6. Which company are you working for? ICICI HDFC LICI Bajaj Allianz Kotak Mahindra Others (please specify):___________ 3. Did you work for any other company? Yes No If yes then please specify the name of the company:________________ 4.

68 | P a g e Srikanta Kundu k_srikanthin@yahoomail. Rank the factors that you consider while making an investment in ULIPs in the scale of 1-5 (1-minimum.com .8. Do you think ULIPs are more demanding than Non-ULIPs? Yes No 10. 5-maximum) Risk Market condition Liquidity Profitability Company’s name Date: _____________________ Signature Thank you for your kind cooperation. 3-average. 2-less minimum. What according to you lead the ULIP investors to prefer ULIPs to NonULIPs? Transparency Fund options High risk High return Others (please specify):_________________________________ 11. 4-less maximum. How long do you take to issue a policy after meeting a customer? <5 days 5-10 days >10 days 9.

How do you communicate with your customers? Direct Advisors Others (Please specify :_________________) 7.com . Do you think that the ULIPs have been affected by the current market scenario? Yes No If yes then please specify the reason: ____________________________________ 5. Which plan has the maximum market coverage under your organization? ULIPs Non-ULIPs 4. How long is your organization in the business of insurance? < 10 years 10 – 20 years > 20 years 2. 3-moderate. (1-least likely. 5 most likely) Choice of investment Switching options Settlement options Cover continuance options Additional protection with riders 6. 2-less likely. 4-more likely. Rank the features available under ULIPs in the scale of 1-5. What plan(s) of insurance do you deal in? ULIPs Non-ULIPs Both 3.(FOR COMPANIES) PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPs) IN THE DISTRICTS OF WEST BENGAL AND FUND ANALYSIS UNDER ULIPs NAME OF THE ORGANIZATION: OFFICIAL ADDRESS: 1. Do you provide all the training to your advisors in regular intervals? Yes No If No please specify the reason :________________________________________ 69 | P a g e Srikanta Kundu k_srikanthin@yahoomail.

Immediate settlement of claims Only A All A.D 9. What services do you provide to your customers? A.10000 Others: ______________ Rs.C A.C. What is the growth of your organization in the districts of west Bengal in terms of ULIPs? Least Highest Low Moderate High Date: _____________________ Signature Thank you for your kind cooperation 70 | P a g e Srikanta Kundu k_srikanthin@yahoomail.8. What is the minimum annual premium available under ULIP in your organization? Rs.12000 Rs. Collection of premium E. Do you have any product under ULIP which has 100% allocation? Yes No If yes then please specify the name of the product: _______________________ 12. 8000 Rs. Do you do the need analysis of the customers before giving them the right choice? Yes No 10.B A. Updates of NAV C.B.B. Periodic statement B. Updates of growth funds D.com .15000 11.

Ensure.outlook.google.com www.com www.REFERENCES: Annual Report .com www.rediff.iciciprulife.irdaindia. Product manual of different company‘s product Different Companies‘ Brochures.com .com www.com www.wikipedia.com 71 | P a g e Srikanta Kundu k_srikanthin@yahoomail.com www.an ICICI Prudential life insurance co publication. JOURNALS Insurance Watch Insurance Chronicle Websites www.iciciprupartner.ICICI Prudential life insurance co ltd.

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