INTRODUCTION

Insurance is defined as a cooperative device to spread the loss caused by a particular

risk over a number of persons who are exposed to it and who agree to ensure
themselves against that risk.  Risk is uncertainty of a financial loss.  The insurance is
also defined as a social device to accumulate funds to meet the uncertain losses
arising through a certain risk to a person injured against the risk.
Life insurance is a form of insurance that pays monetary proceeds upon the death of
the insured covered in the policy. Essentially, a life insurance policy is a contract
between the named insured and the insurance company wherein the insurance
company agrees to pay an agreed upon sum of money to the insured's named
beneficiary so long as the insured's premiums are current.
The business of insurance is related to the protection of the economic value of assets.
Every asset has a value. The asset would have created through the efforts of the
owner. The asset is valuable to the owner, because he expects to get some benefits
from it. It is a benefit because it meets some of his needs. The benefits may be an
income or in some other form In the case of a factory or a cow, the product generated
by it is sold and income is generated. In case of motor car, it provides comfort and
convenience in transportation. There is no direct income. Both are assets and provide
benefits.
A well-developed and evolved insurance sector is needed for economic development
as it provides long term funds for infrastructure development and at the same time
strengthens the risk taking ability. It is estimated that over the next ten years India
would require investments of the order of one trillion US dollar. The Insurance sector,
to some extent, can enable investments in infrastructure development to sustain
economic growth of the country. The growing number of wealthier as well as aging
Indian middle class is set to offer a strong business potential for the country’s
untapped life insurance market.
The growth in the insurance sector was due to this immense growth that the
regulations were introduced in the insurance sector and in continuation “Malhotra
Committee” was constituted by the government in 1993 to examine the various
aspects of the industry. The key element of the reform process was participation of
overseas insurance companies with 26% capital.

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Creating a more competitive financial system suitable for the requirements of the
economy was the main idea behind this reform. Insurance is a federal subject in India.
There are two legislations that govern the sector- The Insurance Act- 1938 and the
IRDA Act- 1999. The insurance sector in India is like a full circle from being an open
competitive market to nationalization and back to a liberalized market again. Tracing
the developments in the Indian insurance sector reveals the 360 degree turn witnessed
over a period of almost two centuries. As the twentieth century has come to a close
and we have move into the third millennium, we can see many developments and
changes taking place around us with all the industries and firms within each industry
trying to keep pace with the changes and diverse needs of the people. Though for
decade together, marketers have regarded ‘customer’ as the king and evolved all
activities to satisfy him or her, giving this concept a momentum it is necessary to
understand the Perception and Expectations of the customer in respect various aspects
& attributes so as to design a successful and an acceptable product or service.
This can largely be attributed to the prevailing market situation. Not only has
competition become intense but over and above with the market being flooded with
many me-too products, the challenge before the marketer is to understand the
diversity of consumer expectations and offer goods/services accordingly. Today the
company image is built and made known by its customers.
Thus the success of the firm will be determined by how effective it has been in
meeting the diverse consumer needs and wants by treating each customer as unique
and offering products and services to suit his or her needs. Therefore today all the
firms are engaged in a process of creating a lifetime value and relationship with their
customers, a step towards developing knowledge regarding its customers’ needs is the
utmost important. The current study is an attempt to measure the various parameters
as perceived by the customers and to help the company in serving its customers in a
much better and efficient manner.
 History of Insurance
Insurance has been known to exist in some form or other since 3000BC. The Chinese
traders, traveling treacherous river rapids would distribute their goods among several
vessels, so that the loss from any one vessel being lost, would be partial and shared,
and not total the Babylonial traders would agree to pay additional sums to lenders, as
the price for writing off the loans , in case of the shipment being stolen.

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The inhabitants of Rhodes adopted the principle of “general average”, whereby, if
goods are shipped together, the owners would bear the losses in proportion, loss
occurs, due to jettisoning during distress. (Captains of ship caught in storms, would
throw away some of the cargo to reduce the weight and restore balance. Such
throwing is called jettisoning) the Greeks had started benevolent societies in the late
7th century AD, to take care of the funeral and families of the member who died. The
friendly societies of England were similarly constituted. The Great Fire of London in
1666, in which more than 13000 house were lost, gave a boost to insurance and the
first fire insurance company, called the Fire Office, was started in 1680.
The origins of insurance business as in vogue at present, is traced to the Lloyds
Coffee House in London. Traders, who used to gather in the Lloyds coffee house in
London, agreed to share the losses to their goods while being carried by ship. The
losses used to occur because of pirates who robbed on the high seas or because of bad
weather spoiling the goods or sinking the ship. In India insurance 1818 with life
insurance being transacted by English company the oriental Life Insurance Co. Ltd.
The 1st Indian insurance company was the Bombay Mutual Assurance Society Ltd,
formed in 1870 in Mumbai.
Later, were establishing the Cooperative assurance in Lahore, the Bombay life
(originally called the swadeshi life), the Indian Mercantile, the new India and the
jupoter in Mumbai, and the Lakshmy in New Delhi. These were all Indian companies
started as a result of the swadeshi movement in the early 1900s.By the year 1956,
when the life insurance business was nationalized and the Life Insurance Corporation
of India (LIC) was formed on 1 st September 1956, there were 170 companies and 75
provident fund societies transacting life insurance business in India. After the
amendments to the relevant law in 1999, the L.I.C. did not have the exclusive
privilege of doing life.

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Laws and Regulations
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
(1) Subject to the provisions of this Act and any other law for the time being in force,
the Authority shall have the duty to regulate, promote and ensure orderly growth
of the insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1),
the powers and functions of the Authority shall include, -
(a) Issue to the applicant a certificate of registration, renews, modify, withdraw,
suspend or cancel such registration;
(b) Protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest,
Settlement of insurance claim, surrender value of policy and other terms and
conditions of contracts of insurance;
(c) Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
(d) Specifying the code of conduct for surveyors and loss assessors;
(e) Promoting efficiency in the conduct of insurance business;
(f) Promoting and regulating professional organizations connected with the insurance
and re-insurance business;
(g) Levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business;
(i)control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the Tariff Advisory Committee under section 64U of the Insurance
Act, 1938 (4 of 1938);
(j) Specifying the form and manner in which books of account shall be maintained
and statement of accounts shall be rendered by insurers and other insurance
intermediaries;
(k) Regulating investment of funds by insurance companies;
(l) Regulating maintenance of margin of solvency;

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(m) Adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
(n) Supervising the functioning of the Tariff Advisory Committee;
(o) Specifying the percentage of premium income of the insurer to finance schemes
for promoting and regulating professional organizations referred to in clause (f);
(p) Specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector.
 Insurance
In low and economics, insurance is a form of risk management primarily used to
hedge against the risk of contingent loss.
“Insurance is the equitable transfer of the risk of a loss from one entity to another in
exchange for a premium and can be thought of a granted small loss to prevent a large
possibly devastating loss”.
Insurer: - An insurer is a company selling the insurance.
Premium: - Insurance is a factor used to determine the amount called the premium to
be charged for a certain amount of coverage.
Insurer’s business model: -
Profit = Earned premium + Investment – Incurred loss – underwriting
Expenses
Insurer makes money in two ways –
(1) Through underwriting, the process by which insurer select the risk to Insure and
decide how much in premium to change for accepting those risk.
(2) By investing the premiums that collect from insured parties.
 Life Insurance
Life insurance or life assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay a sum of money upon the occurrence of the
insured individual's or individuals' death or other event, such as terminal illness or
critical illness. In return, the policy owner agrees to pay a stipulated amount called a
premium at regular intervals or in lump sums. There may be designs in some
countries where bills and death expenses plus catering for after funeral expenses
should be included in Policy Premium. In the United States, the predominant form
simply specifies a lump sum to be paid on the insured's demise. As with most
insurance policies, life insurance is a contract between the insurer and the policy

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owner whereby a benefit is paid to the designated beneficiaries if an insured event
occurs which is covered by the policy

The value for the policyholder is derived, not from an actual claim event, rather it is
the value derived from the 'peace of mind' experienced by the policyholder, due to the
negating of adverse financial consequences caused by the death of the Life Assured.
To be a life policy the insured event must be based upon the lives of the people named
in the policy.
 Need of life insurance
Today, there is no shortage of investment options for a person to choose from.
Modern day investments include gold, property, fixed income instruments, mutual
funds and of course, life insurance. Given the plethora of choices, it becomes
imperative to make the right choice when investing your hard-earned money. Life
insurance is a unique investment that helps you to meet your dual needs - saving for
life's important goals, and protecting your assets.
Let us look at these unique benefits of life insurance in detail.
 Protection
You need life insurance to be there and protect the people you love, making sure that
your family has a means to look after itself after you are gone. It is a thoughtful
business concept designed to protect the economic value of a human life for the
benefit of those financially dependent on him.
 Retirement
Life insurance makes sure that you have regular income after you retire and helps you
maintain your standard of living. It can ensure that your post-retirement years are
spent in peace and comfort.
 Savings and Investments
 Insurance is a means to Save and Invest. Your periodic premiums are like Savings
and you are assured of a lump sum amount on maturity. A policy can come in
handy at the time of your child’s education or marriage! Besides, it can be used as
supplemental retirement income.
 Tax Benefits

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Life insurance is one of the best tax saving options today. Your tax can be saved twice
on a life insurance policy-once when you pay your premiums and once when you
receive maturity benefits.

 Myths of Insurance :
i) Insurance is just meant for saving tax.
ii) Insurance does not give good returns.
iii) Insurance products are not flexible.
 Analysis of Investment in life insurance policies as per different
life stages

AGE STATUS INSURANCE SUGGESTED

NEEDS PRODUCTS

18yrs - 25yrs Unmarried 1.Go on a holiday Short Term

2.Buy a new Car Endowment
3.Set up a new house Product
4.Set up Interiors
5.Buy jeweler

1.High Debt, high expenditure

25yrs -30yrs Married Phase Temporary term or
2.Family dependency on your whole life Product
income
3.Low accumulated wealth
4.Need for Planning Requirement
1.Retirement Planning
30yrs - 45yrs Matured 2.Wealth transfer or saving vehicles Profits or Unit
couple 3.Returns on investment Linked Endowment
4.Opting for guaranteed Product /
Deferred annuities
1.Protection in case you live long 1.Single Premium
60yrs and Post 2.Protection for spouse in case of annuities
above Retirement death 2.Long term care
3.Wealth accumulation for children products

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 3.Whole life
products

 Life Stage in Life Insurance

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 Peak earning age range. High asset creation & build up of liabilities. Critical stage for dep

Asset base build up & liabilities reduced/ taken care of. Ne

Introduction of dependents. Start of financial planning – balance between asset creation & protection

No dependents/ liabilities therefore need for insurance is less Need for protection low. Grea

25-30
Married
45 yrs and above
30-45 years Couples with children
couples
with no Matured couple
18-25 (Unmarried) kids Reti

Endowment / ULIP’s Endowment / ULIP’s + Term

Annuities

At each stage, requirements, responsibilities and Financial needs diff

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  Principles of life insurance
 Indemnity

A contract of insurance contained in a fire, marine, burglary or any other policy

(excepting life assurance and personal accident and sickness insurance) is a contract
of indemnity. This means that the insured, in case of loss against which the policy has
been issued, shall be paid the actual amount of loss not exceeding the amount of the
policy, i.e. he shall be fully indemnified. The object of every contract of insurance is
to place the insured in the same financial position, as nearly as possible, after the loss,
as if he loses had not taken place at all. It would be against public policy to allow an
insured to make a profit out of his loss or damage.
 Utmost Good Faith
Since insurance shifts risk from one party to another, it is essential that there must be
utmost good faith and mutual confidence between the insured and the insurer. In a
contract of insurance the insured knows more about the subject matter of the contract
than the insurer. Consequently, he is duty bound to disclose accurately all material
facts and nothing should be withheld or concealed. Any fact is material, which goes to
the root of the contract of insurance and has a bearing on the risk involved. It is only
when the insurer knows the whole truth that he is in a position to judge (a) whether he
should accept the risk and (b) what premium he should charge. If that were so, the
insured might be tempted to bring about the event insured against in order to get
money.
 Insurable Interest
A contract of insurance affected without insurable interest is void. It means that the
insured must have an actual pecuniary interest and not a mere anxiety or sentimental
interest in the subject matter of the insurance. The insured must be so situated with
regard to the thing insured that he would have benefit by its existence and loss from
its destruction. The owner of a ship run a risk of losing his ship, the charter of the ship
runs a risk of losing his freight and the owner of the cargo incurs the risk of losing his
goods and profit. So, all these persons have something at stake and all of them have
insurable interest. It is the existence of insurable interest in a contract of insurance,
which distinguishes it from a mere watering agreement.

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 Causa Proxima
The rule of causa proxima means that the cause of the loss must be proximate or
immediate and not remote. If the proximate cause of the loss is a peril insured against,
the insured can recover. When a loss has been brought about by two or more causes,
the question arises as to which is the causa proxima, although the result could not
have happened without the remote cause. But if the loss is brought about by any cause
attributable to the misconduct of the insured, the insurer is not liable.
 Risk
In a contract of insurance the insurer undertakes to protect the insured from a
specified loss and the insurer receive a premium for running the risk of such loss.
Thus, risk must attach to a policy.
 Mitigation Of Loss
In the event of some mishap to the insured property, the insured must take all
necessary steps to mitigate or minimize the loss, just as any prudent person would do
in those circumstances. If he does not do so, the insurer can avoid the payment of loss
attributable to his negligence. But it must be remembered that though the insured is
bound to do his best for his insurer, he is, not bound to do so at the risk of his life.
 Subrogation
The doctrine of subrogation is a corollary to the principle of indemnity and applies
only to fire and marine insurance. According to it, when an insured has received full
indemnity in respect of his loss, all rights and remedies which he has against third
person will pass on to the insurer and will be exercised for his benefit until he (the
insurer) recoups the amount he has paid under the policy. It must be clarified here that
the insurer's right of subrogation arises only when he has paid for the loss for which
he is liable under the policy and this right extend only to the rights and remedies
available to the insured in respect of the thing to which the contract of insurance
relates.
 Contribution
Where there are two or more insurance on one risk, the principle of contribution
comes into play. The aim of contribution is to distribute the actual amount of loss
among the different insurers who are liable for the same risk under different policies

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in respect of the same subject matter. Any one insurer may pay to the insured the full
amount of the loss covered by the policy and then become entitled to contribution

from his co-insurers in proportion to the amount which each has undertaken to pay in
case of loss of the same subject-matter. In other words, the right of contribution arises
when (I) there are different policies which relate to the same subject-matter (ii) the
policies cover the same peril which caused the loss, and (iii) all the policies are in
force at the time of the loss, and (iv) one of the insurers has paid to the insured more
than his share of the loss.
Products of life insurance
 Most Insurance policies are a combination of Savings & Protection.
 Products are formulated by either increasing or decreasing either one of these
components.
 These combinations can be broadly divided into 4 groups
- Annuities & Pension
- Endowment Policies : Whole Life; Unit Linked etc
- ULIPs
- Term Insurance

 A pension plan
A pension plan or an annuity is an investment that is made either in a single lump sum
payment or through installments paid over a certain number of years, in return for a
specific sum that is received every year, every half-year or every month, either for life
or for a fixed number of years.
Annuities differ from all the other forms of life insurance in that an annuity does not
provide any life insurance cover but, instead, offers a guaranteed income either for
life or a certain period.
Typically annuities are bought to generate income during one's retired life, which is
why they are also called pension plans. By buying an annuity or a pension plan the
annuitant receives guaranteed income throughout his life. He also receives lump sum
benefits for the annuitant's estate in addition to the payments during the annuitant's
lifetime.

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Pension plans are perfect investment instrument for a person who after retiring from
service has received a large sum as superannuation benefit. He can invest the proceeds
in a pension plan as it is safest way of secured income for the rest of his life.
One can pay for a pension plan either through an annuity or through installments that
are annual in most cases.
Types of Annuities / Pension Plans
 Life Annuity:
Guarantees you a specified amount of income for your life. After death, the
amount invested is refunded to your nominee.
 Guaranteed Period Annuity:
Provides specified income for your lifetime and guarantees that your nominee will
receive payments for a certain minimum number of years, even if you should die
earlier. In case you live longer than the specified minimum number of years, you
are entitled to receive annuity payments for your lifetime.
 Annuity Certain:
Under this plan, the stipulated annuity is paid for a fixed number of years. The
annuity payments stop at the end of that period, irrespective of how much longer
you may live.
 Deferred Annuities:
The premiums paid into such plans may be deducted from one’s taxable income at
the time of payment. In addition, the interest earned on the annuities is not taxed
immediately. But the proceeds of the annuity will be taxable when they are paid to
you.
 A whole life policy
As the name suggests, a Whole Life Policy is an insurance cover against death,
irrespective of when it happens.
Under this plan, the policyholder pays regular premiums until his death, following
which the money is handed over to his family.
This policy, however, fails to address the additional needs of the insured during his
post-retirement years. It doesn't take into account a person's increasing needs either.
While the insured buys the policy at a young age, his requirements increase over time.
By the time he dies, the value of the sum assured is too low to meet his family's
needs. As a result of these drawbacks, insurance firms now offer either a modified

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Whole Life Policy or combine in with another type of policy a whole life policy runs
as long as the policyholder is alive. As risk is covered for the entire life of the
policyholder, therefore, such policies are known as whole life policies.A simple whole
life policy requires the insurer to pay regular premiums throughout the life. In a whole
life policy, the insured amount and the bonus is payable only to the nominee of the
beneficiary upon the death of the policyholder. There is no survival benefit as the
policyholder is not entitled to any money during his / her own lifetime.
Whole life policies have a major drawback in the sense that the policyholder is not
entitled to any money during his or her own lifetime. Hence such a policy is suitable
only in a few, very specific cases. Suppose a person buys a whole life policy for say
25 years at the age of thirty when his children are young and the family needs
protection. By the time he is 55 his children may be well settled, no longer truly
needing the protection the whole life policy provides. On the other hand, he would
probably require the money for himself and his wife for the retired life but this would
not be possible since the sum assured is payable only when the policy holder dies.

 An endowment policy

An endowment policy covers risk for a specified period, at the end of which the sum
assured is paid back to the policyholder, along with the bonus accumulated during the
term of the policy. An endowment life insurance policy is designed primarily to
provide a living benefit and only secondarily to provide life insurance protection.
Therefore, it is more of an investment than a whole life policy.
Endowment life insurance pays the face value of the policy either at the insured's
death or at a certain age or after a number of years of premium payment. Endowment
policy is an instrument of accumulating capital for a specific purpose and protecting
this savings program against the saver's premature death.
Premium on endowment policies is payable for the full term of the endowment policy
unless, the insurer dies earlier. When compared to whole life policies, the premium
rates for endowment policies are higher and the bonus rates lower. But one of the
major attractions of endowment policies is that they provide a return on premium
payments, when the policy comes to an end. The endowment received at the maturity

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of the policy can be used for buying an annuity policy to generate a monthly pension
for the whole life. Endowment policies are one of the most popular insurance plans.

Apart from providing financial risk cover in case the insurer's-who is usually a
family's breadwinner-premature death, the insurance amount is also repaid once this
risk is over. The endowment amount paid at the maturity of the policy can be used for
meeting major expenditures such as children's education and marriage, etc.
Types of endowment plan:-
 Pure endowment: - Where the sum assured is payable to policyholders either
on survival or death within endowment period.
 Joint endowment: - where the policy covers the risk on two or more lives
under the single policy.
 Marriage endowment: - where the policy is designed to meet the marriage
financing needs of the family member of the policy holder

Unit Linked Insurance Plan (ULIP)

Unit linked insurance plan (ULIP) is life insurance solution that provides for the
benefits of risk protection and flexibility in investment. The investment is denoted as
units and is represented by the value that it has attained called as Net Asset Value
(NAV). The policy value at any time varies according to the value of the underlying
assets at the time.
In a ULIP, the invested amount of the premiums after deducting for all the charges
and premium for risk cover under all policies in a particular fund as chosen by the
policy holders are pooled together to form a Unit fund. A Unit is the component of the
Fund in a Unit Linked Insurance Policy.
The returns in a ULIP depend upon the performance of the fund in the capital market.
ULIP investors have the option of investing across various schemes, i.e., diversified
equity funds, balanced funds, debt funds etc. It is important to remember that in a
ULIP, the investment risk is generally borne by the investor.
In a ULIP, investors have the choice of investing in a lump sum (single premium) or
making premium payments on an annual, half-yearly, quarterly or monthly basis.
Investors also have the flexibility to alter the premium amounts during the policy's

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tenure. For example, if an individual has surplus funds, he can enhance the
contribution in ULIP. Conversely an individual faced with a liquidity crunch has the
option of paying a lower amount (the difference being adjusted in the accumulated
value of his ULIP). ULIP investors can shift their investments across various
plans/asset classes (diversified equity funds, balanced funds, debt funds) either at a
nominal or no cost.
Expenses Charged in a ULIP
 Premium Allocation Charge-
A percentage of the premium is appropriated towards charges initial and renewal
expenses apart from commission expenses before allocating the units under the
policy.
 Mortality Charges-
These are charges for the cost of insurance coverage and depend on number of
factors such as age, amount of coverage, state of health etc.

 Administration Charges-
This is the charge for administration of the plan and is levied by cancellation of
units.
Term life insurance policy
Term life insurance policy covers risk only during the selected term period. If the
policyholder survives the term, the risk cover comes to an end. Term life policies are
primarily designed to meet the needs of those people who are initially unable to pay
the larger premium required for a whole life or an endowment assurance policy.
No surrender, loan or paid-up values are granted under term life policies because
reserves are not accumulated. If the premium is not paid within the grace period, the
policy lapses without acquiring any paid-up value. A lapsed policy can be revived
during the lifetime of the life assured but before the expiry of the period of two years
from the due date of the first unpaid premium on the usual terms. Accident and / or
Disability benefits are not granted on policies under the Term plan.
Term life policies are the cheapest form of insurance. Premiums in a term policy pay
for the insurance and no part of the premium in a term life insurance policy is used for
investment purposes. Term life policies are the cheapest form of insurance. Premiums
in a term policy pay for the insurance and no part of the premium in a term life

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insurance policy is used for investment purposes. The length of a term life insurance
policy varies from 5 to 30 years.
Many people prefer term insurance to provide their families with the security cover,
and then use the additional funds they would have paid into an endowment or other

life insurance policy to make investments of their own choosing. Term life policies
are suitable for those who need to provide financial security to their family but are
unable to pay the larger premium required for a Whole Life or Endowment policy
Claim settlement procedure
Under Life insurance, claims can arise on maturity of policy or death of the
policyholder.
The companies send intimation at least 2 months before the maturity date. If the
notice of maturity is not received and the date of maturity is known to the
policyholder, then the policyholder can take the necessary steps to get the due
Maturity amount
Claims Procedure on Death (accidental or natural)
Intimation about death of policyholder should be given to LIC by any relative/
nominee/ assignee of the deceased policyholder which should contain the information
 Death certificate
 Date, reason & place of death
 Policy Number/s

Claims Procedure on Maturity

On maturity of policy, the policyholder has to submit certain requirements on
maturity of the policy
 Submit the policy document (if not in the custody of LIC as security for loan)
to the concerned branch office as mentioned on the policy
 Collect discharge form no. 3825, put a revenue stamp & sign it, also get your
signature attested by a witness and submit it to LIC
 Submit a proof of age document (if age has not been admitted earlier)
 Submit Assignment/ Re-assignment Deed if any
 Existence certificates in case of Children's Deferred Assurance and Pure
Endowment policies

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On Death (accidental or natural)
If the policyholder or Life Assured dies during the term of the policy, a death claim
arises. Death claims are of two types
Early Death Claim - Claims arising within 2 years after date of risk/ revival/
reinstatement are termed as Early Claims or "Premature Claims".

They can be classified into two groups

1. Those having arisen within 2 years from the date of acceptance or risk or
revival
2. Those having arisen after 2 years but within 3 years of acceptance of risk or
revival
Non Early Claim - Claims arising more than 2 years after the date of risk/ revival are
called as Non-Early Claims. However, the policy should be in force for at least 3
years at the time of death of Life Assured.
For claiming the benefit, the nominee or any person related may apply to Insurance
Company and the following requirements are required further for settlement of claim:
 Policy Document
 If death has occurred due to an accident, then Police Panchnama & Senior
Divisional Manger's verdict are required
 Medical attendants' report (In proforma given by the insurance company)
 Claimants' statement (in proforma given by the insurance company)
 Death certificate
 If the Life assured has been working before his or her death then the
employer's certificate for last 5 years relating to leave record along with
details of medical leave taken and reasons supported with photocopies of
certificates issued by medical practitioner.
The following documents should be submitted if death occurs after 3 years from the
date of risk covered
 Policy Document
 Death Certificate
 Documentary evidence of age if the age was not admitted at the time of
issuing the policy
 Claimant's statement (Claim Form 'A')
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  Evidence of Title to the deceased estate if policy is not nominated, assigned or
issued under MWP Act.
 If death is due to an accident the Police Panchnama, Senior Divisional
Manager's verdict for claiming Double Accident Benefit
Ex-gratia Settlement of Death Claims-
Ex-gratia Settlement of Death Claims are not a right claim but on grounds of
Humanity presently LIC is giving such claim amount for the policies which are not in
force but
 If Death occurred after the expiry of grace period of premium due date then
Full Sum Assured along with the bonus will be payable as Ex-gratia settlement
 If Death occurred after three months but less than six months after the expiry
of first unpaid premium date half of the Sum Assured without bonus will be
paid as Ex-gratia
 If the death occurred between six months and one year from the due date of
the first unpaid premium date, claim may be considered to the extent of the
proportionate notional paid-up value on the basis of actual premium paid.
Double Accident Benefit
The Insurance Company is not liable for any loss or damage after the expiry of 12
months from the date of loss unless the claim itself is the subject of pending action or
arbitration.
If the insurance company disclaims liability then such claims have to be made the
subject matter of a suit in a court of law within 12 calendar months from the date of
the disclaimer. In case the dispute refers only to the amount of payment claimed then
the matter has to be compulsorily referred to arbitration as per the provisions of the
Indian Arbitration Act.
Advantages of Life Insurance
It is a general belief that life insurance is meant only for those with families. It is true
that Life Insurance Policies like whole-life insurance, joint-life-insurance, pension-
life-insurance etc are essential for family's financial security, but they are equally
important for individuals. Term Insurance policies protect your financial resources
against the uncertainties of life so you can protect your family's future.
Some of the life insurance advantages are:
 If an estate owner has not accumulated enough assets for his family,

19
  Insurance quote helps create an instant estate for the sake of the Family’s
security.
 Life Insurance provides the option to pass equal assets to the children who are
not active in the Family business at the time the family business is passed on.
 Life Insurance policies can help secure the future of children for
college/educational purposes as the amount of life Insurance Policy increases
on a minor’s or parent’s life.

 The growth of a cash-value policy is tax-deferred - you do not pay taxes on the
cash value accumulation until you withdraw funds from the policy.
 Life Insurance can be useful in paying estate taxes, along with other estate
settlement amounts. Federal Estate Taxes are due nine months after death.
 If there’s a Business Transfer, life insurance can provide ready cash to finance
a transaction between business owners who are ready to buy the deceased
owner’s share from his or her estate after death.
 If there’s a home mortgage, one can pass the family residence to their
spouse/children to free them of any mortgage if one has a Life Insurance
Policy for the same. It is preferred to have a decreasing term policy that
decreases in face amount as the mortgage balance is paid down.
 Life Insurance helps retain your Business from the loss of a key employee.
Untimely death of a key employee can pose severe financial loss to the
business.
 The right insurance proceeds can provide liquidity to pay off personal loans or
business loans.
 Charitable Remainder Trusts provide tax benefits. Life Insurance helps replace
a charitable gift.
 A lot of Insurance products presently provide good returns, which could be a
beneficial way for saving necessary funds for retirement years.
Benefits are available immediately and may be used to help pay expenses such as
final illness and funeral costs, eliminating the need to sell estate assets to cover these
costs.

20
 ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, one
of the foremost financial services companies of India and Prudential plc, one of the
leading international financial services group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector life insurance companies to
begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September 30, 2010)
with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the
period April 1, 2010 to September 30, 2010, the company garnered Rs 7,267 crores of
total premiums and has underwritten over 10 million policies since inception. The
company has a network of over 1,500 offices and over 1, 60,000 advisors, as on
September 30, 2010. The company has assets held over Rs. 65,000 crores as on
September 30, 2010.
For the past nine years, ICICI Prudential Life has maintained a wide range of Life
Insurance products that meet the needs of the Indian customer at every step in life.
ICICI Prudential Life recently completed 10 years on the Indian Insurance space on
12th December 2010.
ICICI Prudential
Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance
has been one of the earliest private players. Since the time, ICICI Pru Life has been
the leader in terms of market share as indicated by the IRDA (Insurance Regulatory
and Development Authority, the regulator for Indian Insurance Industry) at its
website.
During 2007-08, the organization's focus on rural business has proved its complex
project execution capability and strong partnerships for customer servicing.
In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK
Healthcare to settle insurance claims of its users.
ICICI Prudential's life insurance products may be loosely categorized under four
forms- Life Plans (further categorized into Term Plans and Wealth Plans), Child
Plans, Retirement Plans and Health Plans.

21
Under Life Insurance Plan category it offers term plans like i-Protect online term plan,
ICICI Pru Pure-Protect and ICICI Pru Life Guard, and ULIP wealth plans like ICICI
Pru Life Stage Wealth II, ICICI Pru Life Link Wealth SP, ICICI Pru Pinnacle Super
etc.
Under the Child / Education Plan category it offers products like ICICI Pru Smart Kid
regular premium and ICICI Pru Smart Kid Premier
Under the Retirement Insurance Plan category it offers products like ICICI Pru
Forever Life & ICICI Pru Life Link Pension SP.
Under the Health Insurance Plan category it offers products like ICICI Pru Health
Saver & ICICI Pru Hospital Care II.
Life Insurance Plan
 ICICI Pru i-Protect Term Plan is a term insurance plan available online only.
 ICICI Pru Pure-Protect is a term plan without Return of Premium.
Retirement Insurance Plan
 ICICI Pru Life Link Pension SP is a single premium pension policy that
provides you the opportunity to enjoy regular income as pension post
retirement by paying just a single premium.
 ICICI Pru Forever Life is a regular premium deferred pension plan that
provides the security of life cover during the Accumulation Phase and offers
five ways to get your pension, after retirement.
Child / Education Plan
 ICICI Pru Smart Kid Regular Premium is a regular premium, traditional plan
with two options to receive guaranteed educational benefits, no matter what
the uncertainties in your life.
 ICICI Pru Smart Kid Premier is a ULIP plan which ensures your child’s
education continues even if you are not around.
Health Insurance
 ICICI Pru Health Saver is a comprehensive whole of life health insurance plan
that takes care of hospitalization costs as well as all your health care needs.
 ICICI Pru Hospital Care II is a fixed benefit hospitalization and surgical plan
that offers you and your family, fixed payouts at various stages of
hospitalization in addition to benefit received from other medical insurance
plans.
22
 HDFC LIFE
HDFC Life, one of India's leading private life insurance companies, offers a range of
individual and group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC), India's leading housing finance
institution and Standard Life plc, the leading provider of financial services in the
United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding)
Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others.
HDFC Life's product portfolio comprises solutions, which meet various customer
needs such as Protection, Pension, Savings, Investment and Health. Customers have
the added advantage of customizing the plans, by adding optional benefits called
riders, at a nominal price. The company currently has 29 retail and 5 group products
in its portfolio, along with five optional rider benefits catering to the savings,
investment, protection and retirement needs of customers.
HDFC Life continues to have one of the widest reaches among new insurance
companies with more than 500branches servicing customer needs in over 700 cities
and towns. The company has a strong base of Financial Consultants.

HDFC Limited
HDFC Limited, India's premier housing finance institution has assisted more than 3.8
million families own a home, since its inception in 1977 across 2400 cities and towns
through its network of over 289 offices. It has international offices in Dubai, London
and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to
assist NRI's and PIO's to own a home back in India. As of March 2011, the total asset
size has crossed more than Rs. 1, 32,727crores including the mortgage loan assets of
more than Rs.1, 17,126 crores. The corporation has a deposit base of over Rs. 24,625
crores, earning the trust of nearly one million depositors. Customer Service and
satisfaction has been the mainstay of the organization. HDFC has set benchmarks for
the Indian housing finance industry. Recognition for the service to the sector has
come from several national and international entities including the World Bank that
has lauded HDFC as a model housing finance company for the developing countries.
HDFC has undertaken a lot of consultancies abroad assisting different countries
including Egypt, Maldives, Mauritius, and Bangladesh in the setting up of housing
finance companies.

23
Standard Life Plc.

Established in 1825, Standard Life Plc. is a leading provider of long term savings and
investments to around 6 million customers worldwide. A Headquartered in
Edinburgh, Standard Life has around 9,000 employees across the UK, Canada,
Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. The
Standard Life group includes savings and investments businesses, which operate
across its UK, Canadian and European markets; corporate pensions and benefits
businesses in the UK and Canada; Standard Life Investments, a global investment
manager, which manages assets of over £157bn globally; and its Chinese and Indian
Joint Venture businesses. A At the end of April 2011 the Group had total assets under
administration of a £198.4bn. Standard Life plc is listed on the London Stock
Exchange and has approximately 1.5 million individual shareholders in over 50
countries around the world.

24
 LITERATURE REVIEW

Ashok Khurana & Kanika Goyal (2010), “Exploration and Analysis of Structure and
Growth Performance of Selected ULIPs” In this research paper it is found that
Insurance in India has been emerging as an important and profitable business. Every
insurer wants to capture the maximum share in the market and is offering both Unit
Linked Insurance Plans (ULIP) and traditional plans.

C. John Williams (2009) “A Comparative Study and Analysis of Unit Linked

Insurance Plans (ULIPs)-An IDBI FORTIS Perspective” In this research it was found
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).

Prof (Dr) Roshan Lal & Ashok Khurana (2010), “children insurance plans: a
collective and analytical study of selection life insurance” In this research various
alternatives were found to secure the financial future of child. The study observed that
child insurance plan can be started with annual premium as low as Rs10000 for Smart
kid new ULRP of ICICI Pru; it is followed by Young Star Plus II of HDFC SL with
annual premium of Rs12000. The minimum annual premium is on the higher side,
i.e., Rs20000 for Smart Steps plus of Max New York Life.

Siddiqui S. (2009) conducted a research on the topic, “Indian Life Insurance Sector: A
Overview.” This paper produced an overview of present position of Life Insurance
Sector in India and study various economic indicators related to all Life Insurance
Companies operating in India. He revealed that the history of life insurance in India
dates back to the year 1818, with the Oriental Lie Insurance Company in Calcutta.

Thipathi Deva Sena et al (2007) conducted research on, “A Study on Consumer

Preference and Comparative Analysis of All Life Insurance Companies”. The study
observed that the insurance industry in India has seen an array of changes in the past
one decade. The year saw an up rise in the Indian insurance sector as major structural

25
changes took place with the ending of the government monopoly and the route of the

Insurance Regulatory and Development Authority (IRDA) Bill lifting all entry
restrictions for private players and allowing foreign players with some entry
restriction and limits on direct investment ownership.

Preeti Kakar & Rajesh Shukla,” The Determinants of Demand for Life Insurance in an
Emerging Economy—India” Based on primary data generated through the National
Council of Applied Economic Research’s (NCAER) National Survey of Household
Income and Expenditure (NSHIE), this article attempts to identify determinants of life
insurance ownership in the country. An analysis using logistic regression has
corroborated that insured households tend to be more prosperous, more educated and
more optimistic about future security than non-insured households.

Dr.Ram Pratap Sinha & biswajit chatterjee (2006), “Are Indian life insurance
companies cost efficient?” The present paper estimated cost efficiency of the Life
insurance companies operating in India for the period 2002-03 to 2006-07 using the
new cost efficiency approach suggested by Tone (2002). The results suggest an
upward trend in cost efficiency of the observed life insurers between 2002-03 and
2004-05. However, the trend was reversed for the next two years i.e. 2005-06 and
2006-07.This has been so because of the fact that during the initial years of
observation mean cost efficiency of the private life insurers was rising but the trend
was reversed in 2005-06 and 2006-07.

26
 RATIONALE
The study is being conducted to evaluate the perception of professionals towards Ulip
plan of HDFC and ICICI and to analyze their preference over the plans.

27
 OBJECTIVE

 To a comparative study of perception of working professionals towards HDFC

ULIP plans &ICICI ULIP plans.

28
 LIMITATIONS

In spite of every care taken on the part of the researcher there are certain limitations
which could not be overcome:
 Sample size is limited to 100 customers and may not adequately represent the
whole market.
 The research is confined to a certain part of Indore.
The above are some of the aspects which posed real problems in the way of
completion of the research work but the majority of respondents were cooperative.

29
 RESEARCH METHODOLOGY

The study
A comparative study of perception of working professionals towards HDFC Ulip
plans & ICICI ulip plans .study based on quantitative research

The sample
The sample size is 100 and the respondents are from Indore city only.

The tools for data collection

Data will be collected using self designed questionnaire. The study is based on
primary and secondary data and primary data on the working professnal preference
are to be collected directly from the people through self designed questionnaire.

Tools for data analysis

The data analysis of the above study would be based on the appropriate statistical
tools.

30
 ANALYSIS AND INTERPRETATION

Q.2. Gender

Gender No. of Respondent 100

Male 55
Female 45

Gender

100
80
60
Male
40 Female

20
0
Male Female

Interpretation: - Out of 100 respondents 55% are male and 45% are female. It
shows that male candidate is more than female.

31
Q.3. Age (In Yrs)

Age (In Yrs) Below 30 40

30-45 30
45-60 20
Above 60 10

Age
100
80
60 Below 30
30-45
40
45-60
20 Above 60
0
Below 30 30-45 45-60 above 60

Interpretation:

Out of 100 respondents 40% are below 30 years age, 30% are between 30-45
years, 20% are between 45-60 Years and 10% are Above 60 Years old.
It shows that maximum people are from below 45 years old.

32
Q4. Occupation

Occupation Govt. Ser. 15

Pvt. Ser. 38
Business 37
Agriculture 10

Occupation

40
35
30 Govt. S.
25 Pvt. S.
20
Business
15
Agricult
10 ure
5
0
Govt S. Pvt. S Business Agriculture

Interpretation:-
Out of 100 respondents 15% are Govt. Employee, 38% are Pvt. Servant, 37% are
Businessman and 10% are Agriculture.
So, people from Pvt. Sector and business larger than other occupation.

33
Q.5. Annual Income

Annual Income 150000-250000 40

250000-350000 35
350000-450000 15
450000-above 10

Anual Income (in lacs)

40
35
30
25 1.5-2.5

20 2.5-3.5
3.5-4.5
15
4.5-above
10
5
0
1.5-2.5 2.5-3.5 3.5-4.5 4.5-above

Interpretation:-
Out of 100 respondents 40% are between 1.5 – 2.5 lacs annual income,
35% are between 2.5-3.5 lacs annual income, 15% are between 3.5-4.5 lacs annual
income and 10% are above 4.5 lacs annual income. It is clear that people who have
below 3.5 lacs annual income invest more in ULIP.

34
Q.6. Do you have any insurance policy?

Have Insurance Policy Persons Yes 80

NO 20

Have Insurance Policy ?

80
70
60
50 Yes
40 No
30
20
10
0
Yes No

Interpretation:-

Out of 100 respondents 80% are have insurance policy and 20% are
haven’t insurance policy persons. Maximum number of people have insurance policy.

35
Q.7. Why has you invested in ULIP?

Invested in ULIP Insurance 70

Investments 30

Why have you invested in ULIP?

70
60
50
40 Insurance
30 Invesments
20
10
0
Insurance Investment

Interpretation:-
Out of 100 respondents 70% people are invest for insurance and 30%
people are invest for investments in ULIP. Maximum people invest for insurance
purpose.

36
Q.8. How long do you plan to stay invested in ULIP?

Plan to stay invested in ULIP 3-5 Year 40

5-7 Year 30
7-10 Year 20
10-20 Year 10

How long do you plan to stay invested in ULIP?

40
35
30 3-5Yr
25
20 5-7Yr
15 7-10Yr
10
10-20Yr
5
0
3-5Yr 5-7Yr 7-10Yr 10-20Yr

Interpretation:-

Out of 100 respondents 40% people are invest for 3-5 years, 30% people
are invest for 5-7 years, 20% people are invest for 7-10 years and 10% people are
invest 10-20 years in ULIP.
Maximum people want to stay below 7 years in ULIP.

37
Q.9 Most Preferred from of investment?

Most preferred from of investment ULIP 35

M.F 25
Equity trading 25
Bank saving 15

Most preferred form of investment

35
30
25
ULIP
20
15 M.F.
10 Equity Trading
5 Bank Saving
0
ULIP M.F. Equity Bank Saving
Trading

Interpretation:-

Out of 100 respondents 35% people are invest in ULIP, 25% people are
invest in M.F., 25% people are invest in Equity Trading. Most people prefer ULIP for
investment.

38
Q.10 which companies policy owned by you?

Companies policy owned by you ICICI 35

HDFC 50
KOTAK Mahindra 10
Max Newyork 5

Company's policy owned by you?

50
45
40
35
ICICI
30
25 HDFC
20 Kotak M.
15 Max N.
10
5
0
ICICI HDFC Kotak M. Max N.

Interpretation:-

Out of 100 respondents 35% people are own ICICI Policies, 50% people
are own HDFC Policies, 10% people are own KOTAK Mahindra Policies and 5%
people are own Max Newyork Policies. Maximum numbers of people have HDFC
policy.

Q. 11. Comparison of various policies is important before selecting one.

39
 Various policies is important before selecting one Strongly agree 20
Agree 40
Disagree 25
Neutral 15

Comparison of various policies is important before

selecting one.

40
Strong
30 Agree
20 Agree
Disagree
10
Neutral
0
Strongly Agree Disagree Neutral
Agree

Interpretation:-

Out of 100 respondents 20% people are Strongly agree, 40% people are only
agree, 25% people are Disagree and 15% people are Neutral about Comparison of
various policies is important before selecting one.
Maximum numbers of people are agreeing for comparison before investment.

40
Q. 12. Which plan you will prefer in ULIP for investment?

Plan you will prefer in ULIP

for investment Child 30
pension 28
Health 32
No Idea 10

which plan you will prefer in ULIP for investment?

35
30
25 Child
20
Pension
15
Health
10
No. Idea
5
0
Child Pension Health No. Idea

Interpretation:-

Out of 100 respondents 30% prefer for child, 28% prefer for
pension, 32% prefer for Health and 10% People have No Idea in ULIP for investment.
Most of the people prefer health and child plan in ULIP.

Q. 13. Which company you will prefer for ULIP Policy?

41
 Company you will prefer for ULIP policy ICICI 32
HDFC 40
KOTAK Mahindra 20
Max Newyork 8

Company you will prefer for ULIP Policy

40
35
30
ICICI
25
20 HDFC

15 KOTAK M.
10 MAX N.
5
0
ICICI HDFC KOTAK M. MAX N.

Interpretation:-

Out of 100 respondents 32% prefer for ICICI, 40% prefer for
HDFC, 20% prefer for KOTAK Mahindra and 8% people are prefer for Max
Newyork for ULIP Policy. Most of the people prefer HDFC for ULIP policy.

Q. 14. How much percent of your income you invest yearly?

42
 Income invest yearly in % 0-20% 40
20-35% 38
35-50% 14
50%&above 8

INCOME INVEST YEARLY IN %

40
35
30
25 0-20

20 20-35

15 35-50

10 50- ABOVE
5
0
0-20 20-35 35-50 50-ABOVE

Interpretation:-

Out of 100 respondents 40% people are income invest yearly in

between 0-20, 38% people are income invest yearly in between 20-35, 14% people
are income invest yearly in between 35-50 and 8% people are income invest yearly in
above 50. Most of the people prefer below 35% of their income for investment.

43
Q. 15. What is your normal preferred size of investment?

Normal preferred size of investment < 50000 45

50000 - 1Lakh 30
1Lakh - 2.5Lakh 15
2.5 & Above 10

Size of Investment in '000

45
40
35
30 <50
25 50-100
20 100-250
15
250- Above
10
5
0
< 50 50-100 100-250 250 - Above

Interpretation:-

Out of 100 respondents 45% prefer for less than 50,000, 30% prefer
for between 50,000- 1 Lacs, 15% prefer for between 1 lacs to 2.5 lacs and 10% prefer
for above 2.5 lacs in size of investment. Most of the people prefer less than 5 lacs as
size of investment.

Q. 16. What is the purpose behind investment?

44
 Purpose behind investment Returns 40
Liquidity 25
Wealth 25
Tax Savings 10

Pupose behind Investment

40
35
30
25 Return
20 Liquidity
15
10 Wealth
5 Tax Saving
0
Return Liquidity Wealth Tax Savings

Interpretation:-

Out of 100 respondents 40% people are invest for returns purpose, 25% people
are invest for liquidity and Wealth purpose and only 10% people are invest for tax
saving purpose.
Most of the people have return as main purpose for investment.

Q. 17. What kind of investment you prefer?

45
 Kind of investment prefer High risk high return 25
Medium Risk Medium Return 40
Low Risk Low return 25
I do not Like any risks 10

Kind of Investment Prefer

40
35
30 High Risk High Return
25
Medium Risk Midium
20 Return
15
10 Low risk Low Return
5
Do not like Risk
0
H.Risk H M.Risk M L Risk L Don't like
Return Return Return Risk

Interpretation:-

Out of 100 respondents 25% prefer High risk High return, 40%
prefer Medium Risk Medium Return, 25% prefer Low Risk Low Return and 10%
prefer no risk for investment.
Maximum people prefer medium risk and medium return type investment.

Q. 18. Among ICICI and HDFC which company has better market image for ULIP?

Among ICICI&HDFC company have better ICICI 30

46
 market image
HDFC 40
Both 20
No Idea 10

Which company have better market image

40
35
30 ICICI
25
20 HDFC
15 Both
10 No Idea
5
0
ICICI HDFC Both No Idea

Interpretation:-

Out of 100 respondents 40% people believe that HDFC have better market
image while 30% people believe that ICICI have better market image.
Maximum people agree with HDFC have better market image.

Q. 19. Among ICICI and HDFC which company provides good return?

Among ICICI and HDFC company provides good return ICICI 35

47
 HDFC 40
Both 20
No Idea 5

which company provide good return

40
35
30
25 ICICI
20 HDFC
15 Both
10 No Idea
5
0
ICICI HDFC Both No Idea

Interpretation:-

Out of 100 respondents 40% people think that HDFC provide good return
against ULIP while 35% people think that ICICI provide good return against ULIP.
Maximum number of people agreed that HDFC provide better return.

Q. 20. Among ICICI and HDFC which has maximum ULIP option.

48
 Among ICICI & HDFC has maximum ULIP Option ICICI 30
HDFC 40
Both 20
No Idea 10

which company has maximum ULIP option

40
35
30 ICICI
25
20 HDFC
15 Both
10 No Idea
5
0
ICICI HDFC Both No Idea

Interpretation:-

Out of 100 respondents 40% people are think that HDFC has maximum ULIP
option and 30% people are think that ICICI has maximum ULIP option. Graph shows
that HDFC has maximum number of ULIP plans.

Q. 21. Among ICICI and HDFC which company ULIP provides better benefits.

Among ICICI & HDFC company ULIP Provide Better benefits ICICI 25
HDFC 40

49
 Both 25
No Idea 10

which company's ULIP provide better benefits

40
35
30 ICICI
25
20 HDFC
15 Both
10 No Idea
5
0
ICICI HDFC Both No Idea

Interpretation:-

Out of 100 respondents 40% people believe that HDFC ULIP provide better
benefits while 25% people believe that ICICI ULIP provide better benefits. Maximum
people agree with HDFC in better benefits.

Q. 22. Among ICICI and HDFC which company has better for claim settlement.

Among ICICI&HDFC company has better for claim settlement ICICI 38

50
 HDFC 27
Both 20
No Idea 15

which company is better for claim settlement

40
35
30 ICICI
25
20 HDFC
15 Both
10 No Idea
5
0
ICICI HDFC Both No Idea

Interpretation:-

Out of 100 respondents 38% people think that ICICI is better for claim
settlement while 27% people think that HDFC has better claim settlement.
In this, maximum people are agreeing that ICICI is better for claim settlement.

CONCLUSION

51
The entry of private sector insurance companies into the Indian insurance sector
triggered off a series of changes in the industry. Even with the stiff competition in the
market place.
A general impression as immense awareness and knowledge among people about
various companies and their insurance products gathered during Data collection.
Generally the mass is inclined towards HDFC.
An interesting result found from the research that the respondents having less income
are more concern about their safe future and had invested their savings for their
future.
Out of 100 respondent, more than 50% are male and about 70% candidate having age
below 45 years, which shows that young people shows more attraction towards
investment and insurance rather than old people.
More than 50% respondents are engaged in service i.e. pvt. & govt. sector and among
them more than 70% falls below 3.5 lacs as their annual income.
When we compare result between ICICI and HDFC ULIP plans we conclude that
HDFC has good market image among the respondents and also many respondents
believe that HDFC ULIPs provide better return as compare to ICICI.

REFERENCE

Books:

52
  Kakar P. and Shukla R. (2010), “The Determinants of Demand for Life
Insurance in an Emerging Economy—India”, The Journal of Applied
Economic Research, 4: 49- 77
 Siddiqui, S. (2009), “Indian Life Insurance Sector: An Overview.” Available
at SSRN: http://ssrn.com/abstract=1339447
 Sinha, Ram Pratap (2007), Productivity and Efficiency of Indian General
Insurance Industry. ICFAI Journal of Risk & Insurance, Vol. 4, No. 2, pp. 33-
43.
 Sinha, T. (2006), “An Analysis of the Evolution of Insurance in India”.
Available at SSRN: http://ssrn.com/abstract=706141
 Thipathi, Deva Sena, Saleendran, P. T. and Shanmugasundaram, A. (2007),
“A Study on Consumer Preference and Comparative Analysis of All Life
Insurance Companies”, Icfai Journal of Consumer Behavior, Vol. 2, No. 4, pp.
7-16.
 Annual Report of the Ministry of Finance (Section 3, Insurance Division,
http://finmin.nic.in/the_ministry/dept_eco_affairs/budget/annual_report/9596e
a3.PDF).

Websites:

 http://www.bimadeals.com/ulips-plan.php
 http://www.indg.in/financial-literacy/ulip-irda-faqs.pdf
 http://www.iciciprulife.com/
 http://www.hdfclife.com/

QUESTIONNAIRE

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This questionnaire is conducting for a major research project on the topic ‘A
comparative study of perception of working professionals towards HDFC ULIP
plans & ICICI ULIP plans ‘for fulfillment of MBA degree from DAVV,Indore
.please fill the questions so that I can frame our research by your valuable opinion and
time.
Q1 .Name ______________________________________________

Q2.Gender (a) Male (b) Female

Q3. Age (In Yrs):

(a) Below 30 (b) 30-45 (c) 45-60 (d) Above 60

Q4. Occupation
(a)Govt. Ser. (b). Pvt. Ser. (c). Business (d). Agriculture

Q5.Annual Income
(a) 150000-250000

(b) 250000-350000
(c) 350000-450000
(d) 450000 – above
Q.6. Do you have any insurance policy?
(a) Yes (b) No
Q.7. Why have you invested in ULIP?
(a) Insurance (b) Investments
Q.8. How long do you plan to stay invested in ULIP?
(a) 3-5 year (b) 5-7 year (c) 7-10 year (d)10-20
Q9. Most preferred form of investment?
(a)ULIP (b) M.F (c) Equity trading (d) Bank saving

Q.10. which companies policy owned by you?

(a) ICICI (b) HDFC (c) KOTAK Mahindra (d) Max Newyork

Q.11. Comparison of various policies is important before selecting one.

(a) Strongly agree (b) agree (c) Disagree (d) Neutral
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Q.12. which plan you will prefer in ULIP for investment?
(a) Child (b) Pension (d) Health (d) No Idea
Q.13. which company you will prefer for ULIP policy?
(a) ICICI (b) HDFC (c) KOTAK Mahindra (d) Max New York.
Q.14.How much % of your income you invest yearly?
(a) 0-20% (b) 20-35% (c) 35-50% (d) 50% & above
Q15.What is your normal preferred size of investment?
(a) < 50000 (b) 50000 - 1 Lakh (c) 1 Lakh-2.5 lakh (d) 2.5& above
Q16.What is the purpose behind investment?
(a)Returns (b) Liquidity (c) Wealth (d) Tax savings
Q17.What Kind of investment you prefer?
(a) High risk High Return (b) Medium Risk Medium Return
(c) Low Risk Low return (d) I do not like any risks
Q.18. Among ICICI and HDFC which company has better market image for ULIP?
(a) ICICI (b) HDFC (c) Both (d) No Idea
Q.19. Among ICICI and HDFC which company provides good return?
(a) ICICI (b) HDFC (c) Both (d) No Idea
Q.20. Among ICICI and HDFC which has maximum ULIP options?
(a) ICICI (b) HDFC (c) Both (d) No Idea

Q.21. Among ICICI and HDFC which company ULIP provides better benefits?
(a) ICICI (b) HDFC (c) Both (d) No Idea

Q.22. Among ICICI and HDFC which company has better for claim settlement?
(a) ICICI (b) HDFC (c) Both (d) No Idea

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