A Comparative Study and Analysis of Unit Linked: Insurance Plans (Ulips) - An Idbi Fortis Perspective

A REPORT ON
“A Comparative Study and Analysis of Unit Linked

Insurance Plans (ULIPs)-An IDBI FORTIS Perspective”
BY
C. JOHN WILLIAMS
(08BSHYD0323)
IDBI FORTIS LIFE INSURANCE COMPANY
Submitted to: Prof.S.Subramanian

th
Date of Submission: 16 May 2009
AUTHORISATION
This report “A Comparative Analysis of Unit Linked Insurance Plans (ULIPs) – An IDBI FORTIS
Perspective” done during my Summer Internship Program (SIP) is submitted as a partial

fulfillment of the requirement of MBA program of ICFAI Business School (IBS), Hyderabad.
16th May 2009
C.JOHN WILLIAMS
ICFAI BUSINESS SCHOOL-HYDERABAD Page 2

ACKNOWLEDGEMENTS
I would like to express my sincere gratitude to my company guide Ms.Shanthi

Yagyanath, Agency Manager -IDBI Fortis Life Insurance Company, Coimbatore for
guiding me throughout my summer internship and research project. Her
encouragement, time and effort are greatly appreciated.
I would then like to thank my faculty guide, Prof. S Subramanian, for all his valuable inputs
and constant support towards me throughout my project and providing me an opportunity
to learn outside the class room. It was a truly wonderful learning experience.
I would like to thank the training heads Mr.Anand, Ms Sudha and Sales executive Ms Priya for
helping me with the training and other activities and constantly motivating me to give my best.
I would like to dedicate this project to my parents. Without their help and constant
support this project would not have been possible.
I would like to thank all my friends who did their SIP from IDBI FORTIS for their
valuable suggestions and support.
Last but not the least I would like to thank all the respondents who offered their
opinions and suggestions and sometimes critical views throughout the survey which
made me constantly update myself come out with a successful project.

TABLE OF CONTENTS
AUTHORISATION .......................................................................................................................................... 2
ACKNOWLEDGEMENTS ........................................................................................................................... 3
ABSRACT........................................................................................................................................................... 6
LIST OF ILLUSTRATIONS .......................................................................................... 8
INTRODUCTION .......................................................................................................................................... 10
PURPOSE ........................................................................................................................................................ 12
SCOPE OF THE STUDY ........................................................................................... 12
OBJECTIVES OF THE PROJECT ............................................................................. 12
LIMITATIONS OF THE STUDY ................................................................................. 12
METHODOLOGY ......................................................................................................................................... 13
SOURCES OF DATA ................................................................................................ 14
LITERATURE STUDY ............................................................................................... 14
INSURANCE ................................................................................................................................................... 15
CHARACTERISTICS OF INSURANCE ..................................................................... 15
HISTORY OF INDIAN INSURANCE .......................................................................... 15
INSURANCE MARKET - PRESENT .......................................................................... 16
CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION ................................ 17
LIFE INSURANCE ..................................................................................................... 18
COMPANY PROFILE ................................................................................................ 21
ABOUT IDBI FORTIS ................................................................................................ 21
PRODUCT RANGE OF IDBI FORTIS ....................................................................... 23
UNIT LINKED INSURANCE PLANS .......................................................................... 24
STRUCTURE OF ULIPs ............................................................................................ 24
TYPES OF FUNDS UNDER ULIPs ........................................................................... 27
ADVANTAGES OF ULIPS ......................................................................................... 28
FACTORS INFLUENCING THE BUYING OF UNIT LINKEDINSURANCE PLAN (ULIPs)
........................................................................................................................................ 29
UNIT LINKED INSURANCE PLANS (ULIPs) OF DIFFERENT COMPANIES ........... 30
IDBI FORTIS LIFE INSURANCE COMPANY ............................................................ 30
COMPARITIVE SECONDARY DATA ANALYISIS .................................................... 31

TATA AIG LIFE INSURANCE COMPANY ................................................................. 31
BAJAJ ALLIANZ LIFE INSURANCE COMPANY ....................................................... 33
LIFE INSURANCE CORPORTAION (LIC) OF INDIA ................................................ 35
HDFC STANDARD LIFE INSURANCE COMPANY .................................................. 37
ICICI PRUDENTIAL LIFE INSURANCE COMPANY ................................................. 39
PERFORMANCE OF ULIPs OF THE SELECTED COMPANIES .............................. 44
PRIMARY DATA ANALYSIS ..................................................................................... 48
MERITS AND DE-MERITS OF IDBI FORTIS LIFE INSURANCE COMPANY .......... 57
MERITS ............................................................................................................................................................. 57
DEMERITS ...................................................................................................................................................... 57
POSITIONING ................................................................................................................................................ 59
POSITIONING STRATEGIES.................................................................................... 59
POSITIONING STRATEGIES OF IDBI FORTIS ........................................................ 60
FINDINGS ........................................................................................................................................................ 63
RECOMMENDATIONS.............................................................................................................................. 64
MY EXPERINECES AND LEARNINGS ..................................................................... 66
CONCLUSION ............................................................................................................................................... 66
ANNEXURE - I (QUESTIONNAIRE) .......................................................................... 69
ANNEXURE - II (FACTOR ANALYSIS OUTPUT [SPSS]) ......................................... 73
ANNEXURE - III (SCHEDULE OF THE PROJECT) .................................................. 79
REFERENCES .............................................................................................................................................. 80

ABSRACT
The project aims to make a detailed study of Unit Linked Insurance Plans (ULIPs) in
the Indian context, a comparative analysis of ULIPs of some well known selected
companies and in the process identify the strengths and weaknesses of IDBI FORTIS.
The different selected companies apart from IDBI FORTIS on which the project is
entirely focused are namely:
a. ICICI PRUDENTIAL
b. BAJAJ ALLIANZ
c. TATA AIG LIFE
d. LIFE INSURANCE CORPORATION OF INDIA
e. HDFC STANDARD LIFE
The comparative study is primarily based in terms of the various benefits offered viz.
Death Benefits, Health benefits, Maturity Benefits, financial benefits & other benefits.
The various parameters taken into consideration were flexibility, transparency, liquidity
and the number of funds options available.
The project consists of a detailed analysis of the comparison of various ULIPs of IDBI FORTIS
with that of the selected major players in the market. The results of the project have been an
outcome of a detailed analysis of collected secondary data and well supported by analysis of
primary data collected through a survey in the Hyderabad city. The project required me to
design a questionnaire and conduct a primary survey. The survey was mainly conducted to
study the consumer perception, opinion and awareness of various insurance products. The
number of respondents targeted was 133.The sample of respondents included was carefully
selected targeting respondents from all age groups. Also the preferences of the respondents
towards these selected insurance companies have been noted and the reasons analyzed. The
data gathered from the primary survey was coded in a statistical tool called as Statistical
Package for Social Science (SPSS) for analysis and to find various factors that affect an
investor decisions while choosing an investment option in this vast market.
Finally we interpreted the results of the project by combining both the primary and the
secondary data analyses then identified the areas where the company is really strong
and the areas where it needs to have a second look.
We have also found out the amount to which each of the selected companies was
affected due to the market slow down in the last one year
The project also involved a complete study of the positioning strategies adopted by IBDI
FORTIS in general. This includes a detailed study of the various advertising strategies as well.

The sole objective of this study was to understand the strategies being adopted by the company to
counter the highly efficient stronger players in the market and survive with success.
Finally after a detailed study we have found out the merits and demerits of the IDBI
FORTIS and based on those we have given some recommendations to the company in
areas where the company to has to really work on.
The Project helped me enhance my knowledge on various technicalities of the Indian

insurance industry and gave me a broader prospective of various investment
opportunities available in the market. Marketing concepts learnt in the classroom were
implemented in a real life environment.

LIST OF ILLUSTRATIONS
Figure 1: The trend of the Indian insurance industry ($Bn) 2000-2011 ...................... 17
Table 1 : The list of life insurance companies in India ............................................... 18
Figure 2 : The market share of the Indian Life Insurance industry ....................................... 19
Figure 3 : Premium break -up under ULIPs ................................................................24
Table 2 : Types of funds under ULIPs ........................................................................26
Figure 4 : Advantages of Unit Linked Insurance Plans .............................................. 31
Table 3 : NAVs of HDFC Standard Life ......................................................................43
Figure 5 : NAVs of HDFC Standard Life .....................................................................43
Table 4 : NAVs of Bajaj Allianz ...................................................................................44
Figure 6 : NAVs of Bajaj Allianz ..................................................................................44
Table 5 : NAVs of ICICI Prudential .............................................................................44
Figure 7 : NAVs of ICICI Prudential ............................................................................44
Table 6 : NAVs of LIC .................................................................................................45
Figure 8 : NAVs of LIC ................................................................................................45
Table 7 : NAVs of IDBI FORTIS ..................................................................................45
Figure 9 : NAVs of IDBI FORTIS ................................................................................45
Table 8 : NAVs of Tata-AIG ........................................................................................46
Figure 10 : NAVs of Tata-AIG .....................................................................................46
Table 9 : Percentage change in NAVs of various companies due to recession ..........46
Figure 11 : Percentage change in NAVs of various companies due to recession .......46
Figure 12 : Break-up of respondents between different age groups ...........................47
Figure 13 : Break-up of respondents by their occupations ..........................................48
Figure 14 : Break-up of respondents based on their preferences for various savings
instruments ...................................................................................................................................................... 48
Figure 15 : Break-up of respondents based on factors influencing their decision .......49
Figure 16 : Break-up of respondents based on preferences for various forms of investment . 49
Figure 17 : Break-down of respondents based on their frequencies of investment.... 50
Figure 18 : Break-down of respondents who own/do not own an insurance policy .....50

Figure 19 : Break-down of respondents who rated risk involved in ULIPs ..................50
Figure 20 : Break-down of respondents who own insurance policies in various life insurance
companies ........................................................................................................................................................ 51
Figure 21 : Rating scale of selected insurance companies .........................................52
Figure 22 : Break-down of respondents with different perceptions about the term
“WEALTHSURANCE” ................................................................................................................................. 52
Figure 23 : Break-down respondents with various responses about the future of
IDBI Fortis .................................................................................................................. 53
Table 10 : Average frequency of investments among different age groups ............. 353
Figure 24 : Average frequency of investments among different age groups .............. 54
Table 11 : Age and Frequency of investment (Chi-Square table) .............................. 54
Table 12 : KMO and Bartlett’s test of sphericity ......................................................... 55
Table 13 : The prominent factors influencing the consumer’s investment decision ..... 55
Table 14 : List of the cities with IDBI Fortis presence ................................................ 59

INTRODUCTION
In the commercial arena, the choice of an effective strategy is perhaps the most important and
the toughest decision to take. The decision to select among the grand strategies and deciding
upon which strategy will best meet the enterprise’s objectives is rendered complex by multiple
considerations. The same is also true with the insurance companies in India who are constantly
revamping their strategies and coming out with innovative options to stay in the competition.
There were days when Life Insurance Corporation of India (LIC) was the only insurance
company available to people in India and where people synonymised Insurance to LIC. Also
since it was a Public Sector Undertaking (PSU) it has a great support from people. But now
times have changed a lot of private players have entered into the fray. There have been a lot of
Indian companies collaborating with foreign insurance giants like ICICI Prudential, Bajaj Allianz
etc who have already made their presence felt in the Indian Insurance industry.
Even though LIC is still the market leader with more than over 60% of the market
share, the private players are giving it a tough time. Since the last decade the market
share of LIC had fallen down by about more than 20%.
The new private players have started offering a variety of unlimited schemes right from
insurance plans for a 30 day old baby to that of a 70 year old senior citizen. Also the
private companies have started creating the importance and need of insurance in
today’s life. They have started positioning their brands and are marketing their products
in such a way the people have started feeling the need of security in their lives.
Taking into account the huge population and growing per capita income besides several other
driving factors, a huge opportunity is in store for the insurance companies in India. According to
the latest research findings, nearly 80% of Indian population are without life insurance cover
while health insurance and non-life insurance continues to be below international standards.
And this part of the population is also subjected to weak social security and pension systems
with hardly any old age income security. As per our findings, insurance in India is primarily
used as a means to improve personal finances and for income tax planning; Indians have a
tendency to invest in properties and gold followed by bank deposits. They selectively invest in
shares also but the percentage is very small (4-5%). This in itself is an indicator that growth
potential for the insurance sector is immense. It's a business growing at the rate of 15-20% per
annum and presently is of the order of around more than $55 billion.
India is a vast market for life insurance that is directly proportional to the growth in
premiums and an increase in life density. With the entry of private sector players
backed by foreign expertise, Indian insurance market has become more vibrant.

Competition in this market is increasing with companys’ continuous effort to lure the
customers with new product offerings. However, the market share of private insurance
companies remains low in the 25-35% range. Even to this day, Life Insurance Corporation
(LIC) of India dominates Indian insurance sector. The heavy hand of government still
dominates the market, with price controls, limits on ownership, and other restraints. They
private players are still in their initial days and would take some more time to capture a
good market share. At present they are coming up with new and innovative ideas.
Since the last decade the life insurance industry in India has been growing very fast
and many new companies have entered this business insurance. The Indian life
insurance industry has recorded a robust growth of more than 16 per cent for the nine-
month period which ended on December 31, 2008.It is expected to grow at an amazing
rate of 20 per cent this year Also in the present scenario the most sought after
insurance plans are the Unit Linked insurance Plans (ULIPs).
A ULIP is a life insurance policy which provides a combination of risk cover and investment.
ULIPs have gained high acceptance due to attractive features they offer like flexibility,
transparency, liquidity and a vast variety of fund option. Unit linked plans are suitable for all
customer profiles; however as a general belief the risk averse investors tend to choose
traditional plans and an informed customer prefers a ULIP. ULIPs offer the kind of flexibility that
no insurance product can. ULIPs essentially combine the benefits of an insurance policy and a
market-linked investment. Investors can select a ULIP with an equity-debt combination that is
in line with their risk profile. A risk-taking investor would typically select one with a high equity
component, while a risk-averse investor would opt for a debt-heavy one. Simply put, ULIPs are
structured in such a way 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.
So with many players around for a company to really be successful it has to really be
very efficient on all fronts. It has to constantly adapt to the changing consumer
preferences with a lot of new innovations and implementing new technology try to
different from the lot. Especially if it is a new player in the market the company has to
really work very hard to get into the completion and stay afloat.

PURPOSE
The project is being done as a part of summer internship program of ICFAI Business
School-Hyderabad. The completion of the project is a partial fulfillment requirement for
being awarded the Masters in Business Administration (MBA) degree from the university.
SCOPE OF THE STUDY
This study aims to make a comparative study of the Unit Linked Insurance Plans
(ULIPs) of IDBI FORTIS Life Insurance Company with that of some major selected
players in the Indian insurance market and study the consumer perception towards
various insurance products. The comparative analysis is based on the empirical data
collected from the Hyderabad city. The study also aims to discuss in detail the various
positioning strategies adopted by IDBI FORTIS in general.
OBJECTIVES OF THE PROJECT
a. To compare the Unit Linked Insurance Plans (ULIPs) of IDBI FORTIS with
that of some other selected companies.
b. To identify the strengths and weaknesses of IDBI FORTIS and suggest areas
where it could focus more and improve upon.
c. To study the consumer perception towards various insurance products.
d. To study in detail the positioning strategies of brand IDBI FORTIS in general.
LIMITATIONS OF THE STUDY
a. The study is confined only to a small segment of the entire population due to
monetary and time constraints and hence the results are applicable only to
the city of Hyderabad.
b. The scope of the project is limited to conceptual and marketing aspects of Life
Insurance Companies and doesn’t include Claim Settlement and the underwriting
part of the operations which are equally important aspect of learning.
c. It is not always possible to evaluate companies under similar parameters
since many companies deal with various businesses thus clubbing all the
companies on the same parameters is not always possible.

METHODOLOGY
The techniques used for data collection are:
A. Internet surveys and

B. Questionnaire method
The following methodology has been followed to achieve the objectives of the project.
Step: 1
Developing a right research design and timeline for the project.
Step: 2
Collecting Secondary data of the insurance Industry
Step: 3
Designing of the Questionnaire
Step: 4
Analysis of secondary data
Step: 5
Pilot Study
Step: 6
Collection of primary data-Questionnaires and internet surveys
Step: 7
Analysis of primary data
Step: 8
Study of positioning strategies of IDBI FORTIS
Step: 9
Interpretation of the results
Step: 10
Preparation of the final report

SOURCES OF DATA
In the data collection method, we have collected both primary and secondary data to
meet our objectives
Primary Data
The primary data was collected by a survey based on the questionnaire. It was formulated
on the basis of information carefully gathered by me about the various mindsets of the
people. This questionnaire was mainly formulated to target the common man to see his
perception and awareness of various investment options available. The number of
respondents targeted was around 150 and the survey was confined to Hyderabad city.
Secondary Data
The secondary data was collected directly from the companies and their websites and
internet surveys. Also a lot of similar research studies and journals have been referred to.
LITERATURE STUDY
Till today a lot of research has been done on the Indian insurance industry especially the life
insurance sector. The material for this study was collected from various internet sites, journals
and books by various authors. Similar research has been carried out by Sathak Mohanty who
worked on the risk profile of ULIPs and analyzed insurance as an investment option. He says
that Life Insurance Corporation of India (LIC) is still the undisputed leader in the Indian context.
According to Anita Gupta-director, marketing and communication, ING Vysa Life insurance
ULIPs are suitable for all types of customers, right from the lower class to the premium class.
Also according to the Financial express (Dated 12th April, 2009) ULIPs are flexible to the core.
During the course of the project some official studies on the products of Tata-AIG and HDFC
standard Life have been referred to. Also the books on Marketing Management by Philip Kotler
and that of Marketing Research by Naresh Malhotra were referred to gain a deeper insight on
positioning strategies and marketing research techniques. A lot of groundwork has also been
done by studying the vast range insurance products before taking up this research.

INSURANCE
Insurance may be described as a social device to reduce or eliminate risk of loss to life
and property. Under the plan of insurance, a large number of people associate
themselves by sharing risks attached to individuals. The risks which can be insured
against include fire, the perils of sea, death and accidents and burglary. Any risk
contingent upon these, may be insured against at a premium commensurate with the
risk involved. Thus collective bearing of risk is insurance.
CHARACTERISTICS OF INSURANCE
1. Sharing of risks
2. Cooperative device
3. Evaluation of risk
4. Payment on happening of a special event
5. The amount of payment depends on the nature of losses incurred.
HISTORY OF INDIAN INSURANCE
Insurance has a long history in India. Life Insurance in its current form was introduced
in 1818 when Oriental Life Insurance Company began its operations in India. General
Insurance was however a comparatively late entrant in 1850 when Triton Insurance
company set up its base in Kolkata.
History of Insurance in India can be broadly bifurcated into three eras:
a. Pre Nationalization
b. Nationalization and
c. Post Nationalization
Life Insurance was the first to be nationalized in 1956. Consolidating the operations of
various insurance companies formed Life Insurance Corporation of India. General
Insurance followed suit and was nationalized in 1973. General Insurance Corporation of
India was set up as the controlling body with New India, United India, National and Oriental
as its subsidiaries. The process of opening up the insurance sector was initiated against
the background of Economic Reform process, which commenced from 1991. For this
purpose Malhotra Committee was formed during this year who submitted their report in
1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly
Indian Insurance was opened for private companies and Private Insurance Company
effectively started operations from 2001. (Source: www.irdaindia.org)

INSURANCE MARKET - PRESENT
The insurance sector was opened up for private participation a decade back. For years
now, the private players are active in the liberalized environment. The insurance market
has witnessed dynamic changes, which include presence of a fairly large number of
insurers both life, and non-life segment. Most of the private insurance companies have
formed joint venture partnering well-recognized foreign players across the globe.
The Indian life insurance market generated total revenues of $41.36 billion in 2007, thus
Representing a compound annual growth rate (CAGR) of 11.84% for the period spanning
2000-2007. Life insurance market had a growth of $22.46 billion within a period of 7 years with
a growth rate of 118.24%. Estimated life premiums rose to INR 1,470,800 million ($36.77
billion) in 2006 from INR 1,301,540 million ($32.54billion) in 2005. We envisage that life
premiums in 2011 will be $65.96 billion, a growth larger than they were in 2007. The
performance of the market is forecast to accelerate, with an anticipated CAGR of 9.78% for the
four-year period 2007-2011 expected to drive the market to a value of $65.96 billion by the end
of 2011. There would be a growth of $24.6 billion i.e. 59.48% in the next 4 years.
Non-life premiums in India were $6.53 billion in 2007. Gross written premium (GWP) in the
Indian non-life insurance market reached a value of $5.75 billion in 2006, this representing an
annual growth of 13.55% for the period spanning 2006-2007. Estimated non-life premiums rose
from INR230 billion ($5.75 billion) in 2006 to INR261 billion ($6.53 billion) in 2007.
We anticipate that non-life premiums will grow by a CAGR of 9.40% between 2007-2011. We are
looking for non-life premiums to rise by $405 million over the five years to the end of 2011 with a
growth rate of 62.02%. (Source: http://www.scribd.com/doc/4996143/OVERVIEW-OF-INSURANCE-
SECTOR-INDIA,http://www.indiaprwire.com/pdf/pressrelease/200805079347.pdf)
With a huge population base and large untapped market, insurance industry is a big
opportunity area in India for national as well as foreign investors. India is the fifth
largest life insurance market in the emerging insurance economies globally and is
growing at 32-34% annually. This impressive growth in the market has been driven by
liberalization, with new players significantly enhancing product awareness and
promoting consumer education and information. The strong growth potential of the
country has also made international players to look at the Indian insurance market.
Moreover, saturation of insurance markets in many developed economies has made

the Indian market more attractive for international insurance players, according to
"Booming Insurance Market in India (2008-2011)”.


Total life
insurance premium in India is projected to grow Rs 1,230,000 crore by
 2010-11.


 to increase at a CAGR of 25% for the
Total non-life insurance premium is expected
 period spanning from 2008-09 to 2010-11.



With the entry of several low-cost airlines, along with fleet expansion by existing
ones and increasing corporate aircraft ownership, the Indian aviation insurance
 market is all set to boom in a big way in coming years.



Home insurance segment is set to achieve a 100% growth as financial institutions
 have made home insurance obligatory for housing loan approvals.



Health insurance is poised to become the second  largest business for non-life
 insurers after motor insurance in next three years.
  
A booming life insurance market has propelled the Indian life insurance agents into the
 ‘top 10 country list’ in terms of membership to the Million Dollar Round Table (MDRT)
— an exclusive club for the highest performing life insurance agents.
(Source: http://www.marketsmonitor.com/Report/IM588_related.htm)
CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION
Minimum capital requirement for direct life and Non-life Insurance company is INR1000
million and that for reinsurance company is INR2000 million. A maximum 26% foreign
equity stake is allowed in direct insurance and reinsurance companies. In the 2004-05
budget, the Government proposed for increasing the foreign equity stake to 49%.
(Source: www.irdaindia.org)

LIFE INSURANCE
As is evident from its very name, it deals with insurance of human life. “Life insurance
corporation of India”- a public sector undertaking has the monopoly in this sector since
its nationalization.
In our wordily life, whenever there is uncertainty, there is an involvement of risk. The instinct for
security against such risk is one of the basic motivating forces determining human attitudes. As
a squeal to this quest for Security, the concept of insurance must have been born. The urge to
provide insurance or protection against the loss of life & property must have prompted people
to make some sort of sacrifice willingly in order to achieve security through
“COLLECTIVE CO-OPERATION”, in this sense; story of insurance is probably as old
as the story of mankind.
All life insurance companies in India have to comply with the strict regulations laid out
by Insurance Regulatory and Development Authority of India (IRDA). Therefore there is
no risk in going in for private insurance players. In terms of being rated for financial
strength like international players, only ICICI Prudential is rated by Fitch India at
National Insurer Financial Strength Rating of AAA (Ind) with stable outlook indicating
the highest claims paying ability rating.
90.00
80.00
70.00
60.00
50.00
Life
40.00
Non-life
30.00
20.00
10.00
0.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Figure 1: The trend of the Indian insurance industry ($Bn)

2000-2011 (Source: The knowledge Centre)
Life Insurance Corporation of India (LIC), the state owned behemoth, remains by far
the largest player in the market. Among the private sector players, ICICI Prudential Life
Insurance(JV between ICICI Bank and Prudential PLC)is the largest followed by Bajaj
Allianz Life Insurance Company Limited (JV between Bajaj Group and Allianz).

The private companies are coming out with better products which are more beneficial to the
customer. Among such products are the ULIPs or the Unit Linked Insurance Plans which offer
both life cover as well as scope for savings or investment options as the customer desires.
Further, these types of plans are subject to a minimum lock-in period of three years to prevent
misuse of the significant tax benefits offered to such plans under the Income Tax Act.
Unlike the mutual fund product that has a very simple cost structure, ULIPs carry a
greater number of costs (administration and mortality), in addition to the others. So
comparing ULIPs with mutual funds is erroneous.
(Source: http://www.scribd.com/doc/136703/Indian-Insurance-Changing-Trends-and-a-
Fresh-Perspective)
Right now there are a total twenty two life insurance companies operating in India, of
which one (Life Insurance Corporation) is a Public Sector Undertaking and the
remaining twenty are all private sector enterprises. (Source: www.irdaindia.org)
List of life insurance companies in India

1. AEGON RELIGARE
2. AVIVA
3. BAJAJ ALLIAZ
4. BHARATHI AXA
5. BIRLA SUN LIFE
6. FUTURE GENERALI
7. HDFC STANDARD LIFE
8. HSBC
9. ICICI PRUDENTIAL
10. IDBI FORTIS
11. ING VYSYA
12. KOTAK LIFE INSURANCE
13. LIC
14. MAX NEWYORK LIFE
15. MET LIFE
16. RELIANCE LIFE
17. SAHARA INDIA
18. SBI LIFE
19. SHRIRAM LIFE
20. TATA AIG LIFE
21. DLF PRAMERICA
22. CANARA HSBC OBC
Table 1: The list of life insurance companies in India

MARKET SHARE
2% LIC
1%
3% 2% ICICI Prudential
6%
3% Bajaj Allianz
SBI Life
3%
Reliance
7% HDFC Standard Life
Birla Sun Life
9% 64% Max Newyork
Kotak Mahindra
Others
Figure 2: The market share of the Indian Life Insurance industry (figures are approximate)
(Source: As per a report published in 2008 by Ms Pinky Walia-Financial Advisor)

COMPANY PROFILE
ABOUT IDBI FORTIS

IDBI Fortis Life Insurance Co Ltd is a joint venture
between three leading financial conglomerates – India’s premier development and
commercial bank, IDBI Bank, one of India’s leading private sector banks, Federal Bank
and Europe’s banking and insurance giant, Fortis, each of which enjoys a significant
status in their respective business segments. In this venture, IDBI Bank owns 48%
equity while Federal Bank and Fortis own 26% equity each.
IDBI Fortis launched its first set of products across India in March 2008, after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA). The
company offers its services through a vast nationwide network across the branches of IDBI
Bank and Federal Bank in addition to a sizeable network of advisors and partners.
At IDBI Fortis, people endeavor to deliver products that provide value and convenience
to the customer. Through a continuous process of innovation in product and service
delivery the company intends to deliver world-class wealth management, protection
and retirement solutions to Indian customers
IDBI Ltd. continues to be, since its inception, India’s premier industrial development bank.
Created in 1956 to support India’s industrial backbone, IDBI has since evolved into a
powerhouse of industrial and retail finance. Today, it is amongst India’s foremost commercial
banks, with a wide range of innovative products and services, serving retail and corporate
customers in all corners of the country from over 490 branches and more than 600 ATMs. The
Bank offers its customers an extensive range of diversified services including project financing,
term lending, working capital facilities, lease finance, venture capital, loan syndication,
corporate advisory services and legal and technical advisory services to its corporate clients as
well as mortgages and personal loans to its retail clients. As part of its development activities,
IDBI has been instrumental in sponsoring the development of key institutions involved in
India’s financial sector – such as the Securities and Exchange Board of India (SEBI),
National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd.
Federal Bank is one of India’s leading private sector banks, with a national network and
dominant presence in the state of Kerala. It has a strong network of over 550 branches
and 450 ATMs spread across India. The bank provides over four million retail
customers with a wide variety of financial products. Federal Bank is one of the first
large Indian banks to have an entirely automated and interconnected branch network.
They operate on the core banking platform and are RTGS/ NEFT enabled through
which the Bank offers state-of-the-art technology enabled products and services.

In addition to interconnected branches and ATMs, the Bank has a wide range of
services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking,
debit cards, co-branded credit cards, online bill payment and call centre facilities to
offer round the clock banking convenience to its customers. The Bank has been a
pioneer in providing innovative technological solutions to its customers and the Bank
has won several awards and recommendations.
Fortis, a European financial services provider engaged in banking and insurance with a
presence in over 50 countries, offers its personal, business and institutional customers
a comprehensive package of products and services through its own channels, in
collaboration with intermediaries and through other distribution partners. With a market
capitalization of over EUR 40 billion, Fortis ranks among the 20 largest financial
institutions in Europe. Fortis’ sound solvency position and dedicated, professional
workforce of over 80,000, enables it to combine global strength with local flexibility to
provide its clients with optimum support and service.
VISION
To be the leading provider of wealth management, protection and retirement solutions

that meets the needs of our customers and adds value to their lives.
MISSION
To continually strive to enhance customer experience through innovative product offerings,

dedicated relationship management and superior service delivery while striving to interact
with our customers in the most convenient and cost effective manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve the mission.
VALUES
Transparency: Crystal Clear communication to our partners and stakeholders
Value to Customers: A product and service offering in which customers
perceive value Rock Solid and Delivery on Promise: This translates into being
financially strong, operationally robust and having clarity in claims.
Customer-friendly: Advice and support in working with customers and partners.
Profit to Stakeholders: Balance the interests of customers, partners,
employees, shareholder sand the community at large

PRODUCT RANGE OF IDBI FORTIS
IDBI Fortis offers a variety of products targeting every customer right from a 3 month child to a
70 year senior citizen. All the products have been classified majorly under four plans namely
Wealthsurance
Homesurance
Bondsurance
Retiresurance
WEALTHSURANCE
The Wealthsurance Foundation Plan enables the customer to save and build wealth to
meet your financial goals. However, unlike other investment alternatives, it also enables
him to achieve his wealth goals even in the event of unexpected death, accidents,
disablement or serious illness. The Wealthsurance Foundation Plan can ensure that his
plans for wealth creation are achieved by protecting that plan with insurance benefits.
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan, which provides insurance cover
equal to the outstanding balance of your home loan. In the unfortunate event of death of
the home loan borrower, the insurance cover enables repayment of the home loan liability.
BONDSURANCE
Bondsurance is a single premium plan which allows you to make a one-time investment and get a
guaranteed amount on maturity. You can choose a maturity period of 5 or 10 years for your
investment. At the end of the chosen period, you will receive a guaranteed maturity amount.
Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover. In case
of death before the maturity date, a Death Benefit which is also guaranteed will be paid. Thus you
can get life insurance cover, while earning an assured return on your investment.
RETIRESURANCE
Retiresurance is a pension plan without life cover that allows a longer policy term so that the
customer’s investments can get the benefit of compounding. The customer has to choose any
vesting age between 40-75 yrs. The vesting age chosen can also be postponed or preponed
within the above range by informing the company 30 days in advance. It is especially for
people who wish to lead a happy and prosperous life even after their retirement.
(Source:www.idbifortis.com)

UNIT LINKED INSURANCE PLANS
Unit linked insurance plan (ULIP) is a life insurance solution that provides the client
with the benefits of protection and flexibility in investment. It is a solution which
provides for life insurance where the policy value at any time varies according to the
value of the underlying assets at the time. The investment is denoted as unit and is
represented by the value that it has attained called as Net Asset Value (NAV).
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 a 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 the customer.
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.
ULIPs came into play in 1960s and became very popular in Western Europe and
America. The reason that is attributed to the wide spread popularity of ULIP is because
of the transparency and the flexibility which it offers to the clients.
As time progressed the plans were also successfully mapped along with life insurance needs
to retirement planning .In today’s times ULIP provides solution for all the needs of a client like
insurance planning, financial needs, financial planning for children’s future and retirement
planning.( Source:http://www.scribd.com/doc/7216240/Understand-ULIP-Insurance)
STRUCTURE OF ULIPs
ULIPs offered by different insurers have varying charge structures. Broadly the
different types of fees and charges are given below. However the insurers have the
right to revise or cancel the fees and charges over a period of time
( Source: http://www.scribd.com/doc/7044410/ULIPs)
Premium Allocation charges
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.

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.
Fund Management Charges
These are fees levied for management of the fund(s) and are deducted before arriving
at the Net Asset Value (NAV) .
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
PREMIUM
LESS CHARGES
INVESTMENT LIFE COVER

REPRESENTED AS UNITS
Fund
ULIPs Structure Management
Mortality Charges
Administration Charges
Charges
Premium
Allocation
Charges
Invested
Amount
Figure 3 : Premium break -up under ULIPs

Surrender Charges
A surrender charge may be deducted for premature partial or full encashment of units
wherever applicable, as mentioned in the policy conditions.
Fund Switching Charge
Generally a limited number of fund switches may be allowed each year without charge,
with subsequent switches, subject to a charge. But now a days many insurers offer
fund switching free of cost.
Service Tax Deductions
Before allotment of the units the applicable service tax is deducted from the risk
portion of the premium.

TYPES OF FUNDS UNDER ULIPs
Most insurers offer a wide range of funds to suit one’s investment objectives, risk
profile and time horizons. Different funds have different risk profiles. The potential for
returns also varies from fund to fund. The following are some of the common types of
funds available along with an indication of their risk characteristics.
(Source: www.irdaindia.org)
General description Nature of investments Risk category

Equity Funds Primarily invested in company Medium to High
stocks with the general aim of
capital appreciation.
Income, Fixed Interest and Invested in corporate bonds, Medium

Bond Funds government securities and other
fixed income instruments.
Cash Funds Sometimes known as Money Low

Market Funds — invested in
cash, bank deposits and money
market instruments
Balanced Funds Combining equity investment Medium

with fixed interest instruments
Table 2: Types of funds under ULIPs

ADVANTAGES OF ULIPS
ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The plan
is a one stop solution for everything the customers want. Unit Linked Insurance Plans (ULIPs)
are different from traditional plans purely because, they are much more transparent, various
charges are shared with the customer before the sale of the product, so as to enable the
customer to make an informed decision. (Source:www.scribd.com/doc/7044410/ULIPs)
Customers have the flexibility to choose their life cover. Also the customers have the
choice of multiple fund options based on their risk appetite, thereby enabling an
investor to make the desired returns from the investment.
The following are some of the advantages of Unit linked plans:
a. Life protection
b. Investment and Savings
 
 Market linked fund based on risk profile
 
 Switch option
 
 Premium redirection
 
 Automatic Transfer Plan(ATP)
c. Tax Planning
d. Flexibility of cover continuance
e. Transparency
f. Extra protection with riders
 
 Death due to accident
 
 Disability
 
 Critical illness
g. Liquidity
 
 Partial withdrawals during the term
 
 At maturity
h. Variable investment options

i. Premium holiday
j. Allow Top-ups

Insurance +
Investment
Long Term
Allow Top Ups
Wealth Creation
Tax Benefits Riders

ADVANTAGES OF
ULIPS
Guaranteed Transparency
Capital Returns
Flexibility Invest as per

your risk appetite
Premium
Holiday
Figure 4: Advantages of Unit Linked Insurance Plans
FACTORS INFLUENCING THE BUYING OF UNIT LINKEDINSURANCE PLAN (ULIPs)
The degree of buying of ULIPs insurance varies from person to person. It depends upon many
factors. The factors can be classified into personal, social, economic, psychological and
company related variables. Age and experience of policyholder are personal factors, while the
co- education is a social factor. Economic factors include occupation, income and wealth, and
the psychological factors consist of perception, satisfaction about the services rendered by
insurance companies, the impact of advertisement and personal selling made by insurance
companies on policyholders. The company related variables are the promotional efforts to sell
the policies to prospective buyers. These include advertisement and personal selling too.

UNIT LINKED INSURANCE PLANS (ULIPs) OF DIFFERENT COMPANIES
IDBI FORTIS LIFE INSURANCE COMPANY
IDBI FORTIS different variety of schemes and a good

range of ULIPs under the flagship banner Wealthsurance. There are a lot of other ULIPs under
Bondsurance, Homesurance and Retiresurance but as our study is only confined to the study
and comparative analysis of ULIPs under Wealthsurance we would just be discussing about
the various plans under Wealthsurance. As discussed earlier the Wealthsurance Foundation
Plan enables the customer to save and build wealth to meet your financial goals. However,
unlike other investment alternatives, it also enables him to achieve his wealth goals even in the
event of unexpected death, accidents, disablement or serious illness.
The Wealthsurance Foundation Plan can ensure that his plans for wealth creation are
achieved by protecting that plan with insurance benefits. Wealthsurance is one of its
kind in India. The company offer 11 investment options and 8 protection benefits under
the plan apart from tax benefits (Source: www.idbifortis.com)
Under Wealthsurance there are a lot of different funds available which are explained below:
WEALTHSURANCE
Min entry age 30 dys
Max entry age 65 yrs
Min premium 10000
Max maturity age 75 yrs
Riders ADBR,ADB,WOPR,MAJOR DISEASES BENIFIT,HOSPITAL CASH
BENEFIT,TERMINAL ILLNESS BENEFIT
Min premium payment term 3 yrs
Types of funds EQUITY,NIFTY,Capital Guarantee, Asset Allocator,
GRF,MONTHLY INT A/C,INCOME,LIQUID
As discussed earlier we would be comparing the Unit Linked Insurance Plans (ULIPs)
of the companies selected initially with those of IDBI FORTIS and then make a detailed
analysis. This analysis would be well supported by the primary data analysis and then
the final results would be interpreted .So here first we would be listing out various
ULIPs of the selected companies and their details. After that we make a detailed
comparison with that of the plans under Wealthsurance of IDBI FORTIS and explain it.
So following are the details of ULIPs of various companies and the comparative analyses.

COMPARITIVE SECONDARY DATA ANALYISIS
TATA AIG LIFE INSURANCE COMPANY
TATA AIG OFFERS FOUR DIFFERENT TYES OF ULIPs
a. INVEST ASSURE CARE

b. INVEST ASSURE FLEXI
c. INVEST ASSURE II
d. INVEST ASSURE EXTRA
INVEST ASSURE CARE INVEST ASSURE FLEXI

Min entry age 30 dys Min entry age 30 dys
Max entry age 45 yrs Max entry age 70 yrs
Max Maturity age 65 Max Maturity age 80
Min premium 12000 Min premium 15000
No of funds 5 No of funds 7
Riders ADBR,CIBR Riders ADBR,CIBR
Min premium payment term NM Min premium payment term NM
INVEST ASSURE II INVEST ASSURE EXTRA

Min entry age 15,20,30 Min entry age 15,20,30
yrs yrs
Riders ADBR,CIBR, Riders ADBR,CIBR
WOP
Min premium payment term NM Min premium payment term NM
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider, NM-Not Mentioned
(Source: www.tata-aig-life.com)

COMPARITIVE ANALYSIS
I. Through Wealthsurance a customer can even invest

at the age of 65 where as in this product if the
customer is beyond 45 years he will not be allowed to
invest.
INVEST ASSURE CARE II. Customer can keep his money invested till the age of
75 years and take benefit of the market performance
whereas here the plan matures at the age of 65.
III. In Wealthsurance Free partial withdrawal starts after
completion of 3 years where as in this product the
customer needs to wait for 5 completed years before
he can do a withdrawal
IV. Wealthsurance has a Premium allocation charge of
only 4% as against 50% allocation in this product
V. Through Wealthsurance a customer can even invest
INVEST ASSURE II customer is beyond 45 years he will not be allowed to
invest.
VI. Customer can keep his money invested till the age of
I. Wealthsurance has a Premium allocation charge of

only 4% as against 40% allocation in this product
II. Through Wealthsurance a customer can even invest
INVEST ASSURE EXTRA customer is beyond 45 years he will not be allowed to
invest.
III. Customer can keep his money invested till the age of
IV. Min Entry age in Wealthsurance as 0 Years as
against the Min Entry age of 15 Years
I. In Wealthsurance the Min Premium amount is only
Ten Thousand Rupees in comparison to Fifteen
Thousand Rupees in this Product.
II. Wealthsurance has a 4% allocation charge where as
INVEST ASSURE FLEXI in this product the allocation charge is 16%
III. Wealthsurance has different riders/protection Basket
to choose from including Hospital cash benefit which
gives money on a daily basis if hospitalized.
I C F A I B U S I N E S SS C H O O L - H Y D E R A B A D Page 32
BAJAJ ALLIANZ LIFE INSURANCE COMPANY
BAJAJ ALLAINZ OFFERS FIVE TYES OF ULIPs
a. UNIT GAIN PLUS GOLD

b. UNIT GAIN PREMIER c.
CENTURY PLUS
d. NEW UNIT GAIN PLUS
e. PENSION GUARANTEE
UNIT GAIN PLUS GOLD UNIT GAIN PREMIER

Min entry age 0 yrs Min entry age 0 yrs
Max Maturity age 70 yrs Max Maturity age 70 yrs
Riders 6(after 18) Riders NM
Min premium payment term 3 yrs Min premium payment term 3 yrs
CENTURY PLUS NEW UNIT GAIN PLUS

Max Maturity age 70 yrs Max Maturity age 70 yrs
Riders ADBR Riders ADBR,WOP
CIBR,FIB,HCB
PDB
PENSION GUARANTEE ADBR-Accidental Death Benefit Rider,

Min entry age 45 yrs CIBR-Critical Illness Benefit Rider,
Max entry age 80 yrs NM-Not Mentioned,
Max Maturity age NA WOP-Waiver of Premium,
Min premium 25000- FIB-Family Income Benefit,
purchase HCB-Hospital Cash Benefit,
price PDB-Permanent Disability Benefit
No of funds NM
Riders NM (Source: www.bajajallianz.com)
Min premium payment term NM

I. Wealthsurance only has a allocation charge of only

4% in comparison to 15% in this product
UNIT GAIN PLUS GOLD II. Max Entry age in Wealthsurance is 65 as against 60
of Unit Gain Gold Plus
III. Wealthsurance has an Min Entry Age of 0 Years

against this product where the entry age is 8 Years.
IV. Min Premium in Wealthsurance is only Ten Thousand
CENTURY PLUS Rupees in comparison to Twenty Five Thousand
Rupees of this product.
V. In Wealthsurance there is a choice of 5 riders where
as in this product only one rider is available
I. Wealthsurance only has a allocation charge of only

NEW UNIT GAIN PLUS 4% in comparison to 55% in this product
II. Max Entry age in Wealthsurance is 65 as against 60
of Unit Gain Gold Plus
I. Min Premium in Wealthsurance is only Ten Thousand

Rupees in comparison to Fifty Thousand Rupees of
UNIT GAIN PREMIUM this product.
II. Max Entry age in Wealthsurance is 65 as against this
product which has a cut of 60 years.
I. Wealthsurance can be customized for retirement

planning.
II. Customers can opt for a partial withdrawal without
PENSION GUARANTEE any charges post 3 years from his fund value and use
the money as pension. There is no Tax/Charges on the
money withdrawn/taken as pension

LIFE INSURANCE CORPORTAION (LIC) OF INDIA
LIC OFFERS THREE DIFFERENT TYPES OF ULIPS
a. MARKET PLUS
b. PROFIT PLUS (RP & SP)
c. FORTUNE PLUS
MARKET PLUS PROFIT PLUS(RP&SP)

Max Maturity age 75 yrs Max Maturity age 70,75 yrs
Min premium 5000 RP Min premium 1000 RP
10000 SP 20000 SP
Riders ADBR Riders ADBR,CIBR
FORTUNE PLUS
Min entry age 12 yrs
Max entry age 60 yrs
Max Maturity age 65 yrs
Min premium 20000
No of funds 4
Riders ADBR
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider
(Source: www.licindia.com)

I. Premium allocation charge is 16.5% in this product

where as Wealthsurance has a charge of Max 4%.
II. In Wealthsurance there is unlimited switching
redirection and partial withdrawal allowed absolutely
MARKET PLUS free of charge.
III. There are no riders available in this product as
against Wealthsurance has a host of riders to choose
from.
IV. After 3 years we can go for unlimited partial
withdrawals as against in this product there are no
partial withdrawal available
I. Premium allocation charge is 15% min in this product
PROFIT PLUS (RP & SP) II. In Wealthsurance there is unlimited switching
free of charge.
III. There are no riders available in this product as
from.
I. Min Entry age in Wealthsurance is 0 years as against

in this product it is 12 years
FORTUNE PLUS II. Max entry age in Wealthsurance is 65 years as
against in this product it is 60 years only.

HDFC STANDARD LIFE INSURANCE COMPANY
HDFC STANDARD LIFE OFEERS FOUR DIFFERENT TYPES OF ULIPs
a. ENDOWMENT PLUS II
b. ENHANCED LIFE PROTECTION II
c. UNIT LINKED PENSION RP
d. UNIT LINKED PENSION SP
ENDOWMENT PLUS II ENHANCED LIFE

PROTECTION II
Min entry age 18 Min entry age 18
Max entry age 65 Max entry age 45
Riders ADBR,CIBR Riders NO
Min premium payment term TERM Min premium payment term TERM
UNIT LINKED PENSION RP UNIT LINKED PENSION SP

Min premium 12000 Min premium NM
Riders NO Riders NO
Min premium payment term TERM Min premium payment term TERM
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider
(www.hdfcstandardlife.com)

COMPARATIVE ANALYSIS
I. Min Entry age in Wealthsurance is 0 years as

against in this product it is 18 years
II. Premium allocation charge is 40% in this product
ENOWMENT PLUS II where as Wealthsurance has a charge of Max 4%.
III. Min Premium in Wealthsurance is 10000 as
against this product.
IV. Min Entry age in Wealthsurance is 0 years as
against in this product it is 18 years
V. Premium allocation charge is 40% in this product
ENHANCED LIFE PROTECTION VI. Min Premium in Wealthsurance is 10000 as
II against this product. Max entry age in this
product is only 45 years where as in
Wealthsurance it is 65 years
VII. In Wealthsurance after 3 years unlimited partial
withdrawals are allowed where as in this product
the customer needs to wait till the 5th year.
I. There are no rider available in this product as
against Wealthsurance has a host of riders to
choose from.
II. Allocation charge of 25% on this product and
Wealthsurance has a 4% charge.
UNIT LINKED PENSION RP III. Annuity is taxable where as all the funds in
Wealthsurance is tax free. Wealthsurance can be
customized to be a tax free retirement plan.
IV. Post 3 years customers can also do unlimited
partial withdrawal whenever there is a need for
money without being charged or taxed.
V. Min Premium in Wealthsurance is 10000 as
I. There is no rider available in this product as
against Wealthsurance has a host of riders to
UNIT LINKED PENSION SP choose from.
II. Allocation charge of 6% on this product and
Wealthsurance has a 4% charge.
III. Post 3 years customers can also do unlimited
partial withdrawal whenever there is a need for
money without being charged or taxed.
IV. Min Premium in Wealthsurance is 10000 as

ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI PRUDENTIAL OFFERS ELEVEN DIFFERENT TYPES OF ULIPs
a. LIFE TIME GOLD

b. LIFE LINK SUPER
c. PREMIER LIFE GOLD
d. LIFE TIME PLUS
e. LIFE STAGE
f. SMART KID CHILD PLAN
g. LIFE TIME SUPER PENSION
h. LIFE STAGE RP PRNSION
i. LIFE STAGE RP
j. LIFE STAGE ASSURE
k. INVEST SHEILD LIFE NEW
LIFE TIME GOLD LIFE LINK SUPER

Riders ADBR,CIBR, Riders NO
WOP
Min premium payment term 3 yrs Min premium payment term SP
PREMIER LIFE GOLD LIFE TIME PLUS

Max entry age 65,69 Max entry age 65
WORP
Min premium payment term 3,5 yrs Min premium payment term 3 yrs

LIFE STAGE SMART KID CHILD PLAN
WOP
Min premium payment term LIFE BASED Min premium payment term 3 yrs
LIFE TIME SUPER PENSION LIFE STAGE RP PENSION

Max Maturity age 45 yrs Max Maturity age 50-80 yrs
vesting age Vesting age
Riders ADBR,CIBR Riders NO
LIFE STAGE RP LIFE STAGE ASSURE

Max entry age MAX TERM Max entry age 65
75
INVEST SHIELD LIFE NEW

ADBR-Accidental Death Benefit Rider,
Min entry age 0 CIBR-Critical Illness Benefit Rider,
Max entry age 65 NM-Not Mentioned,
Max Maturity age 75 WOP-Waiver of Premium
Min premium 12000 SP-Single Premium
No of funds 6
Riders NM (Source: www.iciciprulife.com)

COMPARATIVE ANALYSIS
I. Premium allocation charge is premium based in this

product where as Wealthsurance has a charge of Max
4% and with higher premium the allocation charge
LIFE TIME GOLD decreases.
II. Min Premium in Wealthsurance is only Rs.10000 as
against in this product it is 20000
III. In Wealthsurance there is unlimited switching
free of charge.
I. Premium allocation charge is 20% in this product
LIFE LINK SUPER against in this product it is 20000
free of charge.
where as Wealthsurance has a charge of Max 4%
II. There are no riders available in this product as
PREMIER LIFE GOLD against Wealthsurance has a host of riders to choose
from.
free of charge
LIFE TIME PLUS against in this product it is 20000
free of charge.
LIFE STAGE RP redirection and partial withdrawal allowed absolutely
free of charge.
IV. There are only 2 riders available in this product as
from.
LIFE STAGE III. In Wealthsurance there is unlimited switching
free of charge.
IV. There are only 2 riders available in this product as
from.
SMART KID CHILD PLAN
III. Wealthsurance can be beautifully customized to be a
child plan by just adding wavier of premium.
I. Premium payable in this product is Rs.75000 as

against in Wealthsurance it is only Rs.10000
II. There are only two rider available in this product as
from.
III. Allocation charge of 20% on this product and
LIFE TIME SUPER Wealthsurance has a 4% charge.
PENSION IV. Annuity is taxable where as all the funds in
customized to be a tax free retirement plan. 4. Post 3
years customers can also do unlimited partial
withdrawal whenever there is a need for money
without being charged or taxed.
I. Premium payable in this product is Rs.15000 as

against in Wealthsurance it is only Rs.10000
II. There are only two rider available in this product as
from.
LIFE STAGE PR PENSION III. Annuity is taxable where as all the funds in
customized to be a tax free retirement plan.
IV. Post 3 years customers can also do unlimited partial
withdrawal whenever there is a need for money with
being charged or taxed, absolutely free.
I. In Wealthsurance partial withdrawals are allowed
right after 3 years where as in this product the
customer cannot touch his funds till 7th year.
II. First year premium is utilized towards Guaranteed
additions and returned on maturity as a Guarantee.
LIFE STAGE ASSURE III. If you surrender the policy the GA component is not
given to the customer and only the FV which gets
accumulated from 2nd premium is returned after
deducting surrender charges, where as in
Wealthsurance there will not be any other charges
apart from surrender charges that too if applicable
IV. Premium allocation charge is 20% in this product

V. Min Premium in Wealthsurance is only Rs.10000 as
VI. In Wealthsurance there is unlimited switching
INVEST SHEILD LIFE redirection and partial withdrawal allowed absolutely
NEW free of charge.
VII. There are only 2 riders available in this product as
from.
VIII. This product has no top up facility where as in
Wealthsurance tops are allowed any time.
IDBI FORTIS is a new company with over just over one year of operations and so we
have very less information about its past performance. Therefore not many negatives
can be found with the company in regard to the Unit Linked Insurance Plans. Some
general demerits with regard to the distribution network and marketing strategies have
been mentioned after the analysis of the primary data.
As a part of this comparative analysis we have also compared the performance of

ULIPs of a selected fund since the last one year (as the data of IDBI FORTIS is limited
only to the last one year). The comparison has been carried out in the next page.

PERFORMANCE OF ULIPs OF THE SELECTED COMPANIES
Here in order to compare the performances of the ULIPs of the selected five companies
with that of IDBI FORTIS we have selected a particular type of fund called equity growth
funds. The reason for selecting equity growth fund is that we would be very clearly able to
understand the effect of market slowdown on these companies. Here we have considered
the Net asset Values (NAV) of the equity growth funds from April 1st 2008 to April
30th2009.We have then compared the compared the maximum and minimum NAVs during
the period and found out the percentage change for the NAVs observed for the equity
funds of the respective selected companies selected companies.
We have calculated the average NAV for every month (from April 1 st 2008 to April
30th2009) for all the companies and then plotted them on graphs. We have then found
out the extent to which each company was affected due to the market slowdown. We
have also taken into consideration the latest NAVs of these companies to see the
pattern of growth of these funds post recession. The percentage change (negative) in
the Net Asset value for all the companies has been calculated below and we observe
that LIC was the least affected among the selected companies with only a percentage
change of only -23.38% which is quite low compared to -43.84% of that of Bajaj Allianz.
IDBI Fortis has shown a percentage change of -38.95%.But since IDBI Fortis is a new
company which was started just a year back we can say that it has managed quite well and
right now it is showing a quite good and positive growth as we can see from its present NAV.
Month NAV
Apr-08 8.4099
May-08 7.7124 HDFC STANDARD LIFE
Jun-08 7.5374 9
8
Jul-08 8.1797 7
Aug-08 7.9632 6
5
NAV
Sep-08 5.9740
4
Oct-08 5.7968 3
Nov-08 5.6706 2
1
Dec-08 5.5100 0
O
N
S
e
p
0
8
0
8
0
8
c
v
-
-
t
May-08
Mar-09
Aug-08
Feb-09
Dec-08
Jun-08
Jan-09 5.4479
Jan-09
Apr-09
Jul-08
Apr-08
Feb-09 5.1516
Mar-09 6.1597
MONTH
Apr-09 6.4646
Table 3 & Figure 5: NAVs of HDFC Standard Life

(Source: wwww.hdfcstandardlife.com)

Month NAV
Apr-08 8.4099
May-08 7.7124 BAJAJ ALLIANZ
Jun-08 7.5374 30
Jul-08 8.1797 25
Aug-08 7.9632 20
Sep-08 5.9740
NAV
15
Oct-08 5.7968 10
Nov-08 5.6706 5
Dec-08 5.5100 0
N
S
e
p
0
8
0
8
0
8
c
v
-
-
t
May-08
Jan-09 5.4479
Mar-09
Aug-08
Feb-09
Dec-08
Jun-08
Jan-09
Jul-08
Apr-09
Apr-08
Feb-09 5.1516
Mar-09 6.1597
MONTH
Apr-09 6.4646
Table 4 & Figure 6: NAVs of Bajaj Allianz

(Source: www.bajajallianz.com)
Month NAV
Apr-08 56.3500
May-08 56.6050 ICICI PRUDENTIAL
Jun-08 48.9250 60
Jul-08 48.8700 50
Aug-08 51.4450 40
NAV
Sep-08 49.1450 30
Oct-08 39.4450 20
Nov-08 35.6850 10
Dec-08 36.4000 0
O
N
S
e
p
0
8
0
8
0
8
c
v
-
-
t
Mar-09
Jan-09 34.8450
Aug-08
Feb-09
Dec-08
Jun-08
Jan-09
Apr-09
Jul-08
Apr-08
May-
Feb-09 34.2650
08
Mar-09 33.4050
MONTH
Apr-09 39.9150
Table 5 & Figure 7: NAVs of Bajaj Allianz

(Source: www.iciciprulife.com)

Month NAV
Apr-08 12.2400
May-08 12.1735 LIC
14
Jun-08 11.0585 12
Jul-08 11.0290
10
Aug-08 11.4950 8
NAV
Sep-08 11.1155 6
Oct-08 9.5505 4
Nov-08 9.3775 2
Dec-08 9.6165 0
Mar-09
Sep-08
Jan-09 9.6130
Nov-08
Dec-08
Feb-09
Aug-08
Jun-08
Jan-09
Jul-08
Apr-09
Apr-08
Oct-08
May-
08
Feb-09 9.5395
Mar-09 9.4765
MONTH
Apr-09 10.5715
Table 6 & Figure 8: NAVs of LIC

(Source: www.licindia.com)
Month NAV
Apr-08 10.5838
May-08 10.4991 IDBI FORTIS
Jun-08 9.1765 12
Jul-08 9.3448 10
Aug-08 9.8183 8
NAV
Sep-08 9.0915 6
Oct-08 7.0785 4
Nov-08 6.9028 2
Dec-08 6.9151 0
O
N
S
e
p
0
8
0
8
0
8
c
v
-
-
t
Mar-09
Aug-08
Feb-09
Dec-08
Jun-08
Jan-09 6.6861
Jan-09
Jul-08
Apr-08
Apr-09
May-
08
Feb-09 6.5328
Mar-09 6.4605
MONTH
Apr-09 7.7746
Table 7 & Figure 9: NAVs of IDBI FORTIS

(Source: www.idbifortis.com)

Month NAV
Apr-08 13.4790
TATA-AIG
May-08 13.3460 16
Jun-08 11.9805 14
Jul-08 11.9125 12
10
Aug-08 12.3240
NAV
8
Sep-08 11.7975
6
Oct-08 10.1290 4
Nov-08 9.8400 2
Dec-08 9.9140 0
N
S
e
p
0
8
0
8
0
8
c
v
-
-
t
May-08
Mar-09
Aug-08
Feb-09
Dec-08
Jun-08
Jan-09
Jan-09 9.8000
Jul-08
Apr-08
Apr-09
Feb-09 9.6675
Mar-09 9.4175
MONTH
Apr-09 10.7340
Table 8 & Figure 10: NAVs of TATA AIG

(Source: www.tata-aig-life.com )
COMPANY % CHANGE
BAJAJ ALLIANZ -43.84%
HDFC STANDARD LIFE -38.74%
ICICI PRUDENTIAL -40.98%
IDBI FORTIS -38.95%
LIC -23.38%
TATA AIG -30.13%
PERCENTAGE (% ) CHANGE
TATA AIG -30.13%
LIC -23.38%
IDBI FORTIS -38.95%
ICICI PRUDENTIAL -40.98%
HDFC STANDARD LIFE -38.74%
BAJAJ ALLIANZ -43.84%
Table 9 & Figure 11: Percentage changes in NAVs of various companies due to recession

PRIMARY DATA ANALYSIS
We have done a detailed survey in Hyderabad city to understand and study the consumer’s
responses. The primary data was collected through questionnaires. This questionnaire was
mainly formulated to target the common man to see his perception and awareness of various
investment options available. The sample size of the survey was 133.Out of these 89 were
male and 45 were female. The sample of respondents was carefully selected covering people
in all age groups and with different backgrounds and occupations. The analysis of these
questionnaires gives us an insight about the mindset of people regarding various investments.
We have also used factor analysis in SPSS to extract the prominent factors influencing the
investments decisions of the customers .Customer preferences as to where they would like to
invest have been studied . Also we come to know about the preferences given by customers
towards various top life insurance companies and their reasons for it. Here we see that most of
the customers invest regularly from quite some time but since the last few months their
investments have come down due to recession and market slowdown. Following is the analysis
of the primary data collected through questionnaires. (Please refer to annexure I)
The sample included respondents from all the age groups out of which people in the
age group 18-40 constituted around 70%.
50
45
NO. OF REPONDENTS
40
35
30
25
20
15
10
5
0
18-30 31-40 41-50 >50
AGE GROUP
Figure 12: Break-up of respondents between different age groups
The sample of respondents was heterogeneous with people of various occupations

right from government service to ones who were self employed. Out of these people
who were working in private companies constituted round 65%.

80%
PERCENTAGE OF RESPONDENTS
60%
40%
20%
0%
OCCUPATION
Figure 13: Break-up of respondents by their occupations
Also the customers’ preferences for different forms of savings have been carefully studied.
The main savings instruments generally preferred by customers are bank deposits, fixed
deposits, investments and post office schemes. Out of these Investments has been
preferred by around 43% respondents and fixed deposits by around 27%.
PREFERENCE OF SAVINGS
6% 12%
Bank Deposits
12%
Fixed Deposits
Investments
27%
Post Office Schemes
Others
43%
Figure 14: Break-up of respondents based on their preferences for various savings instruments

When we talk about making investment decisions around 45% respondents considered
their own decision and another 40% respondents considered their family’s opinion
before making any important investment decision.
50%
PERCENTAGE OF RESPONDENTS
40%
30%
20%
10%
0%
Family's Friend's Broker's Own Any
Opinion Advice Advice Decision Others
DECISION MAKING
Figure 15: Break-up of respondents based on factors influencing their decision
The various forms of investments generally preferred by customers have been identified as
mutual funds, stocks and shares, insurance products and government bonds. Out of these
around 35% preferred stocks and shares and around 20% preferred insurance products.
FORMS OF INVESTMENT
35%
29%
20%
13%
5%
Mutual Stocks and Insurance Govt Bonds Others

funds Shares Products
Figure 16: Break-up of respondents based on preferences for various forms of investment

The main reason for people to invest in the insurance products was that they had the
advantage of both life cover and tax benefits apart from other normal benefits.
Talking about the frequency of investment around 45 respondents preferred investing

once a year and another 25% preferred investing 2-3 times a year. It was also noticed
that greater majority of respondents owned an insurance policy. Only 11% of the
respondents did not own an insurance policy.
FREQUENCY OF INVESTMNET
1% Once a year
14%
2-3 Times a year
15% 45%
More than 3 Times a year
25% Not Investing (No Idea)
Not Interested
Figure 17: Break-down of respondents based on their frequencies of investment
OWN AN INSURANCE POLICY
89%
11%
Yes No
Figure 18: Break-down of respondents who own/do not own an insurance policy

Unit Linked Insurance Plans
39%
28%
23%
6%
4%
High risk Moderate Low risk They are No idea

risk safe
Figure 19: Break-down of respondents who rated risk involved in ULIPs
LIC
1%
1% ICICI Prudential
2% 3%
2% IDBI Fortis
3% 5% Bajaj Allianz
7%
HDFC Standard Life
63% SBI Life
13%
Max New York
Birla Sunlife
Kotak Mahindra
Others
Figure 20: Break-down of respondents who own insurance policies in various life insurance companies
Around 63% respondents felt that there was an amount of moderate to high risk involved with
ULIPs. Around 63% of the respondents owned an insurance policy in LIC which clearly shows
that LIC still continues to be the market leader in as it has been since the last 50 years or so in
spite of the presence various powerful private players which are still finding hard to capture a
major market share. Around 13%b respondents chose ICICI Prudential.

Following is the rating (from 1-5, 1-bad, 5-best) given by respondents to the five
selected life insurance companies. Here we can clearly see that LIC has the best
rating. The reasons given by the respondents were that LIC was a public sector
company which is well established and has got loads of experience
1 2 3 4 5
BAJAJ ALLIANZ
HDFC STANDARD LIFE
ICICI PRUDENTIAL
IDBI FORTIS
LIC
TATA-AIG
Figure 21: Rating scale selected insurance companies
w WEALTHSURANCE
No idea 29%
All the above 42%
A finacial security and risk coverage 16%
A savings plan with good returns 10%
Tax saving plan 3%
0% 20% 40% 60%
Figure 22: Break-down of respondents with different perceptions about the term “WEALTHSURANCE”

71%
26%
3%
IDBI Fortis is one of It has a long way to Don't know

the best go
Figure 23: Break-down respondents with various responses about the future of IDBI Fortis
Many people responded that they have no idea about IDBI Fortis or its various
products under the umbrella “wealthsurance”.That is true as it is a new company it has
a long way to go as responded by around 26% of the respondents.
This could be due to the fact that IDBI FORTIS has a limited presence and it has just
started its operations just more than a year ago.
We also have found out the age played an important role in deciding the investing
patterns of the respondents .It was found out that people who were generally in
between 18-30 had a higher tendency to invest quite frequently in a year. The following
table and the figure below show us the results.
Age No of % Average Frequency of investments per

Respondents year
18-30 49 36.84% 2.105263158

30-50 70 52.63% 1.537313433
>50 14 10.52% 1.461538462
133 100%
Table 10: Average frequency of investments among different age groups

2.5
2.10
2
1.53
FREQUENCY 1.5
1.46 Average
1 Frequency of
investments per
year
0.5
0
18-30(young) 30-50(middle) >50(old)
AGE
Figure 24: Average frequency of investments among different age groups
In order to find the relationship between the age of the respondents and their
investment patterns, a chi-square test for independence of attributes was used and
results of the test is shown in the following table:
Factor Calculated χ2 Tabulated χ2 DF Significance

value value
AGE 2.801856 7.814728 3 Significant at 5% level
of significance
Table 11: Age and Frequency of investment (Chi-Square table)
It is noted from the above table that the calculated Chi-square value is less than the table value
and the result is significant at 5% level. Hence, the null hypothesis “the age of the respondents
and frequency of investment” holds good. From the above analysis it is concluded that there is
a close relationship between the age of the respondents and their investment patterns
We have also used factor analysis in SPSS (Statistical Package in Social Sciences)
extract most prominent factors that considered by a consumer before making an
investment decision. We had initially considered 28 factors which can influence a
consumer’s investment decision and we have asked the customers to rate them
according to their importance in the questionnaire (Refer to annexure I).

So through the factor analysis the number of factors extracted was 9.KMO (Kaiser-Meyer-
Olkin Measure of Sampling Adequacy) and Bartlett’s test of sphericity were used and for
extraction principle component method had been used. About 75.68% of the information
has been extracted through this test which shows that the results are reliable. The output
of the factor analysis has been included in the annexure. (Refer to annexure II).
Also we can see from below that the KMO coefficient is 0.702. The coefficient always
lies between 0 and 1 and the requirement is that it should not be less than 0.50. So
here we can say this is a good test.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .702
Bartlett’s test of Sphericity :
Approx Chi-Square 1363.096
DF 378
Sig .000
Table 12: KMO and Bartlett’s test of sphericity
So following are the nine extracted prominent factors that influence the consumer while
making an investment decision:
1. Rate of return
2 .Death benefits and lock in period
3. Present market scenario and tax benefits
4. Past performance of the company
5. Flexible investment options and the risk involved
6. Amount payable and the after investment service
7. Opinion of media, friends and acquaintances
8. Level of knowledge about investment
9 .Commercials associated with investments
Table 13: The prominent factors influencing the consumer’s investment decision

MERITS AND DE-MERITS OF IDBI FORTIS LIFE INSURANCE COMPANY
We have already discussed the advantages of Wealthsurance products compared to

the products of the other companies. There the advantages were specific to individual
products. So here after the complete analysis of primary and secondary data we have
the following merits and demerits of IDBI Fortis Life Insurance Company in general.
Since IDBI Fortis is a new company not many demerits can be pointed out right now at
this stage but we have tried our best here to point out some major ones.
MERITS
1. When compared to the other selected insurance companies IDBI Fortis gives a min
fixed Interest rate for monthly interest account and a min fixed NAV (Net Asset
Value) for funds under Unit Linked Insurance Plans (ULIPs) at the time of maturity.
So here in terms of market slowdown and recession the fund value will not come
down below a specified limit which is not the case with the other companies.
2. The Fund allocation charges and fund management charges are very low when
compared to most of the other companies in the market.
3. The growth of the company has been tremendous in terms of the premiums
collected and the variety of funds introduced. All this has been done in a very
short span of time which indicates that there is a great future for IDBI Fortis.
4. IDBI Fortis offers funds almost to everyone right from a 3 month child to a 70
year old elderly person. The variety of funds offered is very vast.
5. The tie-up of the well known IDBI bank with Fortis International and Federal
bank both of which are well established and good rated gives the company a
greater scope for good growth in the future.
6. All the plans offered by the company especially under ULIPs are really flexible as there
are no charges charged for switching and a customer can make use of the switching
facility any number of times he wants to free of charge. Also the premiums payable can
be decided by the customers themselves according to their feasibility and capacity.
DEMERITS
1. IDBI Fortis has a limited presence right now so most of the people know nothing
about the company.
2. With already around more than 20 private companies in the market it is really a
mammoth task for IDBI Fortis to establish itself and move forward successfully
as it is always difficult for any new company to capture the market very early.

3. Also with LIC still at the helm as the market leader it is really difficult for the company to
move anywhere closer to it because LIC is the only public sector life insurance company
and generally people would prefer a public company rather than a private company.
4. The company has to improve its distribution network as its reach to a common
man is very limited .Also the number of agents working for the company is very
less right now when compared to the other companies.
5. It is very difficult to convince the customers first because this is a new unknown
company and secondly there are no part records which normally the customers
consider seriously to show the company’s performance.
6. Also the company has no funds like SBI Smart ULIPs of SBI, Tata-AIG life invest
assure of Tata-AIG and Birla Sun life insurance platinum plans of Birla Sun life
which offer the highest NAV observed during the entire policy term at the time of
maturity of the fund which are really a great hit among the customers.
7. The variety of funds under IDBI FORTIS has to increase as competitors like
ICICI Prudential have a larger and better variety of the same.

POSITIONING
Positioning is the process by which marketers try to create an image or identity in the
minds of their target market for its product, brand, or organization. A product's position is
the way the product is defined by consumers on important attributes - the place the product
occupies in consumers' minds relative to competing products. Positioning is the difference
the company creates for its products relative to the products of the other companies
Not all brand differences are meaningful or worthwhile. Not every difference makes a
good differentiator. Each difference has the potential to create company costs as well
as customer benefits. Therefore, the company must carefully select the ways in which it
will distinguish itself from competitors. A difference is worth establishing insofar as it
satisfies the following criteria: (source: http://www.determan.net/Michele/mposition.htm)
IMPORTANT The difference delivers a highly valued benefit to target buyers

DISTINCTIVE Competitors do not offer the difference, or the company can offer it in a more
distinctive way.
SUPERIOR The difference is superior to other ways that customers might obtain the
same benefit.
COMMUNICABLE The difference is communicable and visible to buyers
PRE-EMPTIVE Competitors cannot easily copy the difference
AFFORDABLE Buyers can afford to pay for the difference
PROFITABLE The Company can introduce the difference profitably
POSITIONING STRATEGIES
There are seven positioning strategies that can be pursued:

 
 Product Attributes: What are the specific product attributes?
 
Benefits: What are the benefits to the customers?

 
Usage Occasions: When / how can the product be used?

 
Users: Identify a class of users.

 
Against a Competitor: Positioned directly against a competitor.

 
Away from a Competitor: Positioned away from competitor.

 
Product Classes: Compared to different classes of products.

POSITIONING STRATEGIES OF IDBI FORTIS
At present IDBI Fortis has its presence in 29 cities across India and it has 31 branches
overall. Mumbai has got three branches. Following is the list of all the cities where the
company is operating right now:
AHMEDABAD MANGALORE
BENGALURU MUMBAI
CALICUT NAGPUR
CHANDIGARH NASHIK
CHENNAI NEW DELHI
COIMBATORE NOIDA
DEHRADUN PUNE
GOA RAJKOT
GURGAON SURAT
HYDERABAD THIRUVUNATHAPURAM
INDORE UDAIPUR
JAIPUR VARNASI
KOCHI VIJAYAWADA
LUCKNOW VISAKHAPATNAM
LUDHIANA
Table 14: List of the cities with IDBI Fortis presence
IDBI Fortis has positioned itself quite nicely by offering all the products under one single
umbrella “WEALTHSURANCE”. The Wealthsurance Foundation Plan enables the customer to
save and build wealth to meet his financial goals. However, unlike other investment
alternatives, it also enables him to achieve his wealth goals even in the event of unexpected
death, accidents, disablement or serious illness. Here under WEALTHSURANCE the company
offers all various varieties of plans right from plans for a 3 month baby to plans for elderly
people. Also in all its advertisement campaigns the company has been using the term
“WEALTHSURANCE” extensively. The company has positioned itself in such way the
customers started feeling that Wealthsurance is the solution for all problems.
Some major strategies used by the company

The name “Wealthsurance” is being marketed very effectively that too with the tag line
“investment chalta jaye, chahe kuchh ho jaye” which means that the wealth creation
continues no matter whatever happens. This concept is being well supported
 by a new
commercial released by the company being aired on all major channels.

The company has already created sensation by introducing the term
Wealthsurance and now it wants to project Wealthsurance is the solution for any
kind of problem in life insurance.

The company has also been promoting itself well especially since the past few
months. It created ripples across India when it became the first insurance
company ever to sponsor a major cricket tournament singlehandedly when it
sponsored the Wealthsurance cup between India and Srilanka in Jan-Feb
2009.It made a right decision to do so because India is a cricket crazy country
 and there is nothing better than reaching to the people through cricket.


Also the logo and pictures IDBI Fortis has been using in its advertisement campaigns
through commercials and printed media have been really good. For example let us talk
about the most common picture used i.e. that of a peeled orange with its peel by its
side. The orange wouldn’t grow if the peel hadn’t protected it fruits from all sorts of
dangers like birds worms etc. The same is with all fruits, nuts and grains or for the
matter a human embryo. With this the company wants to say the best growth happens
under a protective cover that just as nature has provided a protective shield for every
fruit which projects the actual fruit and helps it grow IDBI Fortis acts as a protective
shield for the investments the customers make and helps the best growth to happen. So
with new innovative advertising strategies the company has been able to position itself
as a new company with innovative products. All the punch lines used by the company
easily attract the customers. Some of the advertising pictures used by the company are

illustrated below with their taglines:
Protection Guaranteed
Your dreams and aspirations need money to fulfill.

Make a promise to build wealth.

A wealth building plan protected by insurance.
Unlimited flexibility and choice

IDBI Fortis positions itself as one of the top insurance companies in India. It aspires
to be in
 the top four in the next five years and in the top 3 in the next seven years from now.


Although the company has other products like Bondsurance, Homesurance and
Retiresurance right now it is just focusing on Wealthsurance as it feels that the
company needs  to first capitalize on one particular product initially and latter on
 can diversify.


IDBI Fortis aims to position itself as an insurance company for all classes. As the
premiums payable and the plans are flexible according to the customers choices every
person right from a worker to a high class businessman can purchase a policy. The
minimum premium payable per month is Rs.1000 which is very affordable by anyone.

FINDINGS

There is a great future of the life insurance sector in India as 80% of the Indian
population is still without life cover and people are just now coming in response to
 the awareness campaigns being carried out by almost all the insurance companies.


We have found out that age plays a major role in deciding the investment
patterns of people as generally the younger class of people tend to take more
risk and invest in various instruments more frequently in a year( 2.10times a
 year) when compared with the older class of people(1.46 times a year).


Life insurance Corporation (LIC) of India is the company to be least affected
during this market slowdown as NAV of its equity growth funds came down just
 by 23% during this major recession.


Life Insurance Corporation (LIC) of India is still the undisputed market leader as
63% of the respondents surveyed owned a policy in it  and it has also got a
 tremendous rating of 4.2 out of 5 in the survey conducted.


A good positive growth is being shown by IDBI FORTIS and even though it is
 already started working
still over one year old and has a long way to go it has
 hard and is trying to make competition much tougher.


All the products of IDBI FORTIS under Wealthsurance are really very good and

have an edge over most of the products of other major life insurance companies
as the plans offered by the company are really very flexible.

RECOMMENDATIONS

IDBI FORTIS has to improve its distribution network as its reach to a common
 company is
man is very limited .Also the number of agents working for the
 very less right now when compared to the other companies


 is
The company should constantly come out with innovative products as the competition
very tough with around 22 companies fighting hard for the market share. Some new
 innovative ideas have been suggested below.
An insurance plan for the unborn babies. The premium payment term
could be for 6 months and it could start once the fetus is 3 months old
inside the mother’s womb. There could be various benefits under this
plan for the customers like in case of a premature or a complicated
birth the company would bear the expenses till the baby is healthy
again through the insurance policy. Also there could be death benefits
in case of the death of the baby inside the womb or at the time of
delivery. This plan could really be successful as in India there are lot
of premature child deaths and if the company comes out with a plan
like this very tactfully with some implied conditions it would be the first
Indian company to offer insurance to unborn babies.
An insurance plan for mentally retarded and physically

handicapped people. This might be hard to digest but if at all plans
like these are possible and really come out then a good amount of
Indian population would really be interested.
The company could also come out with a plan for both the husband
and wife where automatically the wife gets insured along with her
husband when her husband purchases the policy. This could also be
the other way round. This could be called the combo family plan. In
simple words it means buy one policy and get another free. No other
company has done something like this till now.

As the company is a new company it has to really work hard to get itself promoted.
The company could start sponsoring major events and conduct talk shows and
seminars to get noticed. It could also take the help of NGOs. There are many
people in India who still do not know about the concept of insurance.The
 company
could take this as an opportunity by trying to create awareness.


The company could start using star personalities for their endorsements especially

cricket stars and film stars as India is a nation of crazy cricket and film followers
 and there is nothing better than reaching to the hearts of people through cricket.


The company should come out with some really outstanding and out of the
world advertisements like the ones  Vodafone has released recently which
 people find it hard to forget soon.


The company should first promote the brand IDBI FORTIS and create a positive
impression in the minds of the people. In today’s world it is really tough for the
customer to choose from among a vast list of insurance companies as almost
all of them offer the same plans .So the company has to be a bit different from
others in order to stand apart.

MY EXPERIENCES AND LEARNINGS
My SIP at IDBI FORTIS Life Insurance Company has been an extremely enriching one. My SIP
was divided into two main parts. One was the project work and the other was the promotion of
the company. Since the company is a new company we the students doing our SIP were given
the major job of promoting the company through sales. So apart from the project work I had to
generate sales for the company. Initially we found it very difficult to sell policies as the company
was a new company and no one was willing to buy moreover as we were basically located at
Hyderabad for our SIP it was even more difficult for us as we knew no-one out there. We faced
a lot of hurdles but at the end we took it as a challenge and moved forward. The first twenty
days were really terrifying as I could not sell even a single policy and it was really very de-
motivating but latter on I moved ahead with the experience gained in the first few days tackling
different customers in different ways. Finally when I sold my first policy in the second week of
March I gained confidence and after that I did not look back At the end of my SIP I generated a
sales of over 1.5 lakhs for the company and ended up being one among the students with the
highest sales generated. Though I did not have the opportunity of sitting in the office and have
much corporate exposure I don’t regret it as I got full hands-on on-the field experience. I got to
interact with a lot of customers and in the process learnt of their different mindsets and the way
to deal with each of them differently. Once I was also thrown out of the house by an angry
house-wife when I tried to sell insurance early in the morning to her. It was a harrowing
experience but after that incident I learnt that marketing is all about dealing with right people at
the right time. To summarize my experience in one line I would say that my experience At IDBI
FORTIS was a really great learning experience with a lot of new things learnt and as I also
wish to specialize in marketing this experience is really a big bonus for me.
The Learnings I gained during my SIP are mentioned below:

I gained a broaderperspective about various investment opportunities and the risk
 involved in them.
 
 I came to know about the various technicalities about the Indian insurance industry.


Interactions withcustomers during surveys and sales helped me enhance my
 marketing skills.


My on- hands on- the- field sales experience was an enriching one teaching me
the different facets a marketing personnel should posses and the way to deal
differently in different situations.


Through this research I enriched my knowledge on various competitive marketing
 strategies adopted b different companies y to survive in a highly competitive market.


I learnt in a more detailed way about the nature of work existing in the insurance
industry, the kind of deadlines they have to meet, the kind of pressure and levels
of stress which they work under and the kind of recognitions given to them after
 they meet or exceed their targets.


Segmentation, Positioning, Diffrencaition, Communication Mix, Direct selling
were all the concepts learnt by be in the classroom before  but this summer
internship really helped me practically experience all these.

CONCLUSION
Here I conclude that the summer internship program, done in IDBI FORTIS Life
Insurance company , for partial fulfillment of the MBA program in ICFAI Business
School (IBS)-Hyderabad. has been completed successfully.
Following are the achievements done during the summer internship from 23th February
2008 to 23th May 2008:
a. Survey done with interest of IDBI FORTIS has been conducted

successfully and results are discussed above.
b. Sales done by me during the time have done great business to the company.
c. I was one of the Sales toppers with a generated sales of more than 1.5 lakh.
d. The experience gained during the internship has sharpened my marketing

and negotiable skills and given me a great on the field experience.

ANNEXURE - I (QUESTIONNAIRE)
QUESTIONNAIRE
(This questionnaire is only of the sake of some research work being done on
insurance companies. Confidentiality would be maintained.)
Name : _________________________________________________________________
Gender : Male Female Contact no : _______________________________
Age Group:
18-30 31-40 41-50 >50
Qualification:
Post Graduate Graduate 12th < 12th

Occupation:
Government Service Businessman Private Company
Self Employed Any Other (Please specify) ____________________
Your income range (per annum):
Below 150000 150000-250000 250000-350000
350000-450000 More than 450000
Your savings per year:
Below 10000 10000-25000 25000-50000
50000-100000 More than 100000
You would prefer savings in which form?
Bank deposits Fixed deposits Investments
Post Office schemes Any other (please specify) _________________________
What do you consider while making an investment decision?
Family’s opinion Friends advice Broker’s advice
Your own decision Any other (please specify) _________________________

Your opinion about investment:
Tax Saving Good returns Better future after retirement
Wealth creation Any other (please specify) _________________________
Preferably you would like to invest in:
Mutual funds Stocks and shares Insurance products
Govt. Bonds & securities Any other (please specify) _____________________
How frequently do you invest?
Once a year 2-3 times a year More than 3 times a year
Not investing (no idea) Not interested
Do you agree that Insurance products are susceptible to very low risk when compared to
the other options for investment?
Yes No Don’t know
What do you understand by the term “Wealthsurance”?
A tax savings plan A savings plan with good returns
A financial security and risk coverage for your family All the above
I have no idea
Name three insurance companies that come to your mind:
1. ___________________________________
2. ___________________________________
3. ___________________________________
Do you own an insurance policy?
Yes No
If yes in which company? ______________________
According to you what is the amount of risk involved in (ULIPs) Unit Linked Investment Plans?
High risk Moderate risk Low risk
They are Safe No Idea

Rate the following insurance companies (on a scale of 1-5):
Company Rating
IDBI FORTIS
ICICI Prudential
Life Insurance Corporation of India
Bajaj Allianz
Max NewYork Life Insurance
Tata AIG Life
According to you which is the best insurance company and why?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
With the different variety of schemes and unbelievable plans offered by IDBI FORTIS Do you
think IDBI FORTIS is one of the best?
Yes No
Why?_______________________________________________
Please rate between 1-5 for all the following factors depending on thier effectiveness
in influencing you to make an investment decision.
1- If the factor has no effect on your preference for the investment option
2- If the factor has only a slight affect on your preference for investment option
3- If the factor affects your preference for an investment option
4- If the factor will strongly affect your preference for the investment option
5- If the factor will be decisive in your preference for the investment option
Particulars Rating
Rate of return( The amount which you get in return)
Extra returns for extra investments
Returns constant in all conditions (No opportunity for multiple returns)
Can give huge returns but high risk ( no guarantee of even min returns)

Tax benefits
Lock in period (Money cannot be withdrawn before a specific period)
Death benefits( Benefits upon your inadvertent death)
Compulsory investment (Mandatory for you to save a specific amount every

year making you get greater amount at maturity date, e.g. Regular premium in
insurance )
Transmission ( The investment option gets transferred to your nominee in case

of any eventuality for example death)
Amount payable can be adjusted later
Amount payable ( Amount that you have to pay for investing)
Amount of charges( Amount deducted for maintenance of your investment etc)
Level of knowledge about an investment option in particular
General level of knowledge about investment options
Level of knowledge to be developed once you start investing
After investment service( Level of advice you get when needed)
Renewal procedure( in case of any discontinuity in payment)
Time to be spent in future
Regulatory authority
Past history& performance of that investment option
Market scenario
Opinion of friends & acquaintances
Opinion of Media
Commercials associated with an investment option
Your past experience in investments.
Political factors( Government policies)
Investment option caters to my group (Retired employees, etc)
Other factors( Known person working in that sector etc)
--------------THANK YOU SO MUCH FOR YOUR VALUABLE TIME------------------

ANNEXURE - II (FACTOR ANALYSIS OUTPUT [SPSS])
Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling

Adequacy. .702
Bartlett's Test of Approx. Chi-Square 1363.096

Sphericity
df 378
Sig. .000
Communalities
Initial Extraction
ROR 1.000 .768
ER 1.000 .530
RC 1.000 .735
HRHR 1.000 .554
TB 1.000 .715
LIP 1.000 .661
DB 1.000 .781
CI 1.000 .673
T 1.000 .665
APA 1.000 .750
AP 1.000 .789
AC 1.000 .744
LK 1.000 .707
GK 1.000 .701
LKS 1.000 .620
AIS 1.000 .727
RP 1.000 .689
TS 1.000 .755
RA 1.000 .689
PP 1.000 .623
MS 1.000 .612
OPNF 1.000 .561
OPNM 1.000 .707
COM 1.000 .704
PE 1.000 .738
PF 1.000 .747
IO 1.000 .669
OF 1.000 .616
Extraction Method: Principal Component Analysis.

Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared

Initial Eigenvalues Loadings Loadings
% of Cumulative % of Cumulative % of Cumulative
Component Total Variance % Total Variance % Total Variance %
1 4.467 15.955 15.955 4.467 15.955 15.955 2.925 10.447 10.447
2 3.481 12.433 28.389 3.481 12.433 28.389 2.908 10.385 20.831
3 2.612 9.328 37.716 2.612 9.328 37.716 2.499 8.926 29.757
4 1.882 6.722 44.438 1.882 6.722 44.438 2.412 8.614 38.371
5 1.799 6.424 50.863 1.799 6.424 50.863 2.167 7.741 46.112
6 1.547 5.525 56.387 1.547 5.525 56.387 2.076 7.413 53.526
7 1.290 4.607 60.994 1.290 4.607 60.994 1.462 5.223 58.749
8 1.137 4.059 65.053 1.137 4.059 65.053 1.407 5.023 63.772
9 1.016 3.629 68.683 1.016 3.629 68.683 1.375 4.911 75.683
10 .868 3.100 71.783
11 .835 2.982 74.765
12 .713 2.545 77.310
13 .701 2.503 79.813
14 .681 2.433 82.246
15 .602 2.150 84.396
16 .543 1.939 86.334
17 .515 1.838 88.173
18 .476 1.699 89.872
19 .421 1.504 91.376
20 .395 1.410 92.786
21 .347 1.239 94.025
22 .310 1.106 95.131
23 .284 1.014 96.145
24 .266 .950 97.095
25 .246 .878 97.973
26 .211 .754 98.727
27 .191 .682 99.409
28 .165 .591 100.000

Scree Plot
4
Eigenvalue
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Component Number

Component Matrix(a)
Component
1 2 3 4 5 6 7 8 9
ROR .058 -.043 .127 -.162 .123 -.100 .729 -.264 .307
ER .052 .365 .002 -.014 -.182 -.261 .416 .094 -.332
RC -.324 -.577 .077 .267 -.079 .217 .086 -.374 -.137
HRHR .261 -.303 .193 .297 .291 .423 -.046 .041 .037
TB .455 -.674 .088 .158 .105 .076 -.066 -.005 -.026
LIP .618 -.086 .077 -.085 -.003 -.496 -.066 .083 .019
DB .622 -.480 .161 .051 -.138 -.316 -.053 -.094 -.071
CI .682 .044 -.404 .180 .048 -.004 .057 -.048 -.046
T -.573 -.084 -.176 .234 -.382 -.046 .122 -.178 .221
APA -.726 -.249 .010 .098 .143 .281 .170 .153 -.013
AP -.429 .166 .567 -.314 .068 -.005 -.086 .081 -.371
AC .297 .388 .432 -.027 .543 -.125 -.085 .021 .000
LK .439 -.243 -.072 -.087 -.588 .233 .050 -.076 .183
GK .675 -.187 -.330 -.066 .121 .242 .080 .122 -.040
LKS .349 -.087 -.453 -.465 -.120 -.013 .092 -.197 -.083
AIS .082 .216 .618 -.146 -.413 -.032 -.033 .038 .309
RP .272 .435 -.262 -.169 -.179 .437 -.323 .021 .025
TS .337 .489 .338 .462 -.049 -.150 -.037 -.096 .197
RA -.162 .092 -.647 -.012 .467 -.060 .070 -.089 -.031
PP -.186 -.277 .117 -.540 .366 -.010 .192 -.126 .139
MS .273 -.190 .431 -.323 .127 .274 .137 .216 .235
OPNF .131 .447 .174 .328 .022 .114 .161 -.359 -.194
OPNM -.200 .194 -.288 .369 .276 -.079 -.018 .293 .491
COM .353 .192 -.166 -.029 -.155 .103 .414 .544 -.114
PE -.384 -.403 -.180 .251 -.135 -.494 .022 .263 -.044
PF -.354 .677 -.200 -.152 -.242 .184 .072 .052 .009
IO .400 .562 .035 .284 .161 .098 .179 -.201 -.055
OF .067 -.268 .305 .407 -.097 .265 .287 .268 -.217
a 9 components extracted.

Rotated Component Matrix(a)
Component
1 2 3 4 5 6 7 8 9
ROR .047 .036 .132 -.056 -.008 .053 .119 .852 .025
ER -.116 -.001 .263 -.061 -.220 -.020 .600 .082 -.165
RC -.122 .001 -.080 -.523 .462 -.105 -.348 .124 -.281
HRHR .118 .088 .074 .207 .658 -.019 -.212 -.014 .073
TB .235 .561 -.166 .037 .527 -.026 -.179 .016 -.077
LIP .143 .710 .042 .244 -.193 .109 .157 -.004 .039
DB .213 .812 -.013 -.005 .143 .153 -.016 .011 -.177
CI .583 .347 .288 .118 .035 -.268 .165 -.089 .091
T -.113 -.273 -.063 -.723 -.096 .061 -.107 .071 .147
APA -.388 -.483 -.344 -.278 .345 -.166 -.063 .126 .070
AP -.650 -.265 -.104 .245 -.055 .216 .037 -.043 -.415
AC -.283 .144 .378 .692 -.032 .033 -.046 .081 .103
LK .651 .158 -.072 -.218 .097 .413 .032 -.002 -.155
GK .649 .255 -.039 .293 .242 -.212 .150 -.003 -.013
LKS .563 .127 -.164 .048 -.310 -.211 .069 .144 -.304
AIS -.096 -.008 .111 .085 -.126 .823 .005 .071 -.012
RP .527 -.358 .140 .275 -.179 .087 -.036 -.381 -.042
TS -.062 .167 .707 .108 -.036 .331 .030 -.100 .300
RA .089 -.161 -.037 .018 -.198 -.750 -.043 .094 .202
PP -.137 -.045 -.393 .236 -.056 -.098 -.214 .555 -.160
MS .105 .037 -.225 .453 .305 .392 -.003 .312 -.029
OPNF -.047 -.123 .721 .005 .052 -.008 .035 .015 -.140
OPNM -.060 -.165 .021 -.039 -.024 -.185 -.015 -.022 .799
COM .311 -.042 -.017 .164 .115 .042 .743 -.005 .111
PE -.351 .284 -.378 -.523 -.018 -.167 .162 -.107 .227
PF .022 -.692 .159 -.053 -.412 .063 .232 -.108 .031
IO .160 -.048 .741 .247 -.002 -.068 .144 .034 .072
OF -.103 .053 .065 -.131 .685 .149 .294 -.031 -.050
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 13 iterations.

Component Transformation Matrix
Component 1 2 3 4 5 6 7 8 9
1 .607 .567 .293 .418 .104 .110 .152 -.034 -.045
2 -.055 -.456 .592 .296 -.486 .082 .252 -.150 .148
3 -.535 .120 .175 .272 .281 .666 -.099 .145 -.202
4 -.146 .142 .527 -.417 .474 -.116 .002 -.297 .425
5 -.291 .031 .044 .592 .183 -.593 -.242 .257 .229
6 .406 -.647 .011 .159 .568 .077 -.172 -.074 -.164
7 .038 -.099 .146 -.200 .184 -.076 .569 .750 -.034
8 -.112 -.046 -.471 .270 .204 .128 .603 -.313 .413
9 .240 -.058 -.102 -.030 -.133 .380 -.357 .367 .709
Rotation Method: Varimax with Kaiser Normalization.

ANNEXURE - III (SCHEDULE OF THE PROJECT)

REFERENCES
www.idbifortis.com
www.hdfcstandardlife.com
www.licindia.com
www.bajajallianz.com
www.iciciprulife.com
www.tata-aig-life.com
www.irdaindia.org
http://www.scribd.com/doc/11005006/Insurance-Industry-Growth-Chart-Under-
Drive-of-Demand-and-Value-Recommended20090121
http://www.scribd.com/doc/4996143/OVERVIEW-OF-INSURANCE-
SECTOR-INDIA http://www.scribd.com/doc/7044410/ULIPs
http://www.indiaprwire.com/pdf/pressrelease/200805079347.pdf
http://www.scribd.com/doc/136703/Indian-Insurance-Changing-Trends-and-a-
Fresh-Perspective
http://www.scribd.com/doc/7216240/Understand-ULIP-
Insurance The knowledge times
http://www.financialexpress.com/search/news/ulips+flexible+to+the+core/
http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan002873.pdf
http://wealth.moneycontrol.com/yourstartupkit/ulip/why-invest-in-ulips-/9051/0
http://economictimes.indiatimes.com/Personal-Finance/Insurance/Life-insurance-
industry-targeting-20-pc-growth-in-FY-09/rssarticleshow/4095144.cms
http://www.marketsmonitor.com/Report/IM588_related.htm
http://www.marketsmonitor.com/Report/IM126.htm
http://www.marketsmonitor.com/Report/IM126.htm

Principles of Marketing-Philip Kotler
Marketing Research-Naresh Malhotra
http://www.determan.net/Michele/mposition.htm
http://www.quickmba.com/marketing/ries-trout/positioning
http://tutor2u.net/business/marketing/brands_positioning.asp
www.ducttapemarketing.com/strategies_for_positioning.htm
http://www.quickmba.com/marketing/research/
http://www.ats.ucla.edu/stat/Spss/output/factor1.htm
http://www.moneycontrol.com/planning_desk/fininvoption.php

A Comparative Study and Analysis of Unit Linked: Insurance Plans (Ulips) - An Idbi Fortis Perspective

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A Comparative Study and Analysis of Unit Linked: Insurance Plans (Ulips) - An Idbi Fortis Perspective

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A REPORT ON

“A Comparative Study and Analysis of Unit Linked

IDBI FORTIS LIFE INSURANCE COMPANY

Submitted to: Prof.S.Subramanian

Perspective” done during my Summer Internship Program (SIP) is submitted as a partial

16th May 2009

ICFAI BUSINESS SCHOOL-HYDERABAD Page 2

I would like to express my sincere gratitude to my company guide Ms.Shanthi

ICFAI BUSINESS SCHOOL-HYDERABAD Page 3

ICFAI BUSINESS SCHOOL-HYDERABAD Page 4

ICFAI BUSINESS SCHOOL-HYDERABAD Page 5

ICFAI BUSINESS SCHOOL-HYDERABAD Page 6

The Project helped me enhance my knowledge on various technicalities of the Indian

ICFAI BUSINESS SCHOOL-HYDERABAD Page 7

ICFAI BUSINESS SCHOOL-HYDERABAD Page 8

ICFAI BUSINESS SCHOOL-HYDERABAD Page 9

ICFAI BUSINESS SCHOOL-HYDERABAD Page 10

ICFAI BUSINESS SCHOOL-HYDERABAD Page 11

SCOPE OF THE STUDY

OBJECTIVES OF THE PROJECT

LIMITATIONS OF THE STUDY

ICFAI BUSINESS SCHOOL-HYDERABAD Page 12

The techniques used for data collection are:

A. Internet surveys and

ICFAI BUSINESS SCHOOL-HYDERABAD Page 13

ICFAI BUSINESS SCHOOL-HYDERABAD Page 14

HISTORY OF INDIAN INSURANCE

History of Insurance in India can be broadly bifurcated into three eras:

ICFAI BUSINESS SCHOOL-HYDERABAD Page 15

Moreover, saturation of insurance markets in many developed economies has made

ICFAI BUSINESS SCHOOL-HYDERABAD Page 16

CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION

ICFAI BUSINESS SCHOOL-HYDERABAD Page 17

Figure 1: The trend of the Indian insurance industry ($Bn)

ICFAI BUSINESS SCHOOL-HYDERABAD Page 18

List of life insurance companies in India

Table 1: The list of life insurance companies in India

ICFAI BUSINESS SCHOOL-HYDERABAD Page 19

ICFAI BUSINESS SCHOOL-HYDERABAD Page 20

ABOUT IDBI FORTIS

ICFAI BUSINESS SCHOOL-HYDERABAD Page 21

To be the leading provider of wealth management, protection and retirement solutions

To continually strive to enhance customer experience through innovative product offerings,

ICFAI BUSINESS SCHOOL-HYDERABAD Page 22

ICFAI BUSINESS SCHOOL-HYDERABAD Page 23

Premium Allocation charges

This is a percentage of the premium appropriated towards charges before allocating

ICFAI BUSINESS SCHOOL-HYDERABAD Page 24

Fund Management Charges

INVESTMENT LIFE COVER

Figure 3 : Premium break -up under ULIPs

ICFAI BUSINESS SCHOOL-HYDERABAD Page 25

ICFAI BUSINESS SCHOOL-HYDERABAD Page 26

General description Nature of investments Risk category

Income, Fixed Interest and Invested in corporate bonds, Medium

Cash Funds Sometimes known as Money Low

Balanced Funds Combining equity investment Medium

Table 2: Types of funds under ULIPs

ICFAI BUSINESS SCHOOL-HYDERABAD Page 27

The following are some of the advantages of Unit linked plans:

h. Variable investment options

ICFAI BUSINESS SCHOOL-HYDERABAD Page 28

Tax Benefits Riders