Conducted at



This is to certify that the summer training report, “A comparative study on ULIPs in

India” is an authentic work carried out by me under guidance and supervision of MR.
Gurmej Singh (BRANCH MANAGER) at Bharti-AXA Life Insurance (Chd.).

The report is being submitted in partial fulfillment of the requirements for the award of the degree of MASTER DEGREE IN BUSINESS ADMINISTRATION from MM INSTITUTE OF MANAGEMENT, MAHARISHI MARKANDESHWAR UNIVERSITY MULLANA, HARYANA.

Ram Parkash


“Live as if you were to die tomorrow. Learn as if you were to live forever.” – Gandhi The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without mentioning the people who made it possible, whose consistent guidance and encouragement crowned the efforts with success. I would consider it my privilege to express my gratitude and respect to Mr. GURMEJ SINGH for having accorded me the opportunity to learn in their organization. I cannot forget the contribution of the staff of Bharti-Axa Life Insurance Co., as I troubled them through my queries at every stage of their work and I really appreciate the patience with which they resolved my doubts amidst their busy schedule, I express my sincere thanks to all of them. I would express my thanks and gratitude to the senior most person of the branch Mr. P. K. Thakur & Dr. Amit Mittal (Principal of MMIM) for his able guidance and support throughout the tenure of summer training.



Training plays an important role in future building of an individual so that he/she can better understand the real world in which he has to work in future. The topic which I have taken for project is COMPARATIVE ANALYSIS OF UNIT LINKED INSURANCE POLICIES (ULIPs) VIS-A-VIS OTHER INVESTMENT OPTIONS AVAILABLE IN THE MARKET that has been suggested to me by Mr. Gurmej Singh (ASSTT. MM INSTITUTE OF MANAGEMENT MMU. which covers the concept of mutual fund and insurance. MULLANA.PREFACE Practical training is an important part of the theoretical studies. BRANCH MANAGER) ULIP‘S plays an important role in insurance policies. The theory greatly enhances our knowledge and provides opportunities to blend theoretical with the practical knowledge where trainees get familiar with certain aspects of industries. It is of an immense importance in the field of management. The recent development in the financial innovation is Unit Linked Insurance Policies (ULIPs). It offers the students to explore the valuable treasure of experience and an exposure to real work culture followed by the industries and thereby helping the students to bridge the gap between the theories explained in the books and their practical implementations. AMBALA .

Page No.CONTENTS CERTIFICATE ACKNOWLEDGEMENT PREFACE Chapter No. Ch-1 Ch-2 Ch-3 Ch-4 Ch-5 Introduction Company Profile Research Methodology Data Analysis and Interpretation Findings & Suggestions Bibliography/References Annexure 1 23 39 42 54 59 60 Questionnaire MM INSTITUTE OF MANAGEMENT MMU. AMBALA . Particulars. MULLANA.


Chapter-1 Introduction INSURANCE
Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as the premium. Insurance allows individuals, businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate. We say "significant" because if the potential loss is small, then it doesn't make sense to pay a premium to protect against the loss. After all, you would not pay a monthly premium to protect against a $50 loss because this would not be considered a financial hardship for most.

Insurance is appropriate when you want to protect against a significant monetary loss. Take life insurance as an example. If you are the primary breadwinner in your home, the loss of income that your family would experience as a result of our premature death is considered a significant loss and hardship that you should protect them against. It would be very difficult for your family to replace your income, so the monthly premiums ensure that if you die, your income will be replaced by the insured amount. The same principle applies to many other forms of insurance. If the potential loss will have a detrimental effect on the person or entity, insurance makes sense.

Everyone that wants to protect themselves or someone else against financial hardship should consider insurance. This may include:
       

Protecting family after one's death from loss of income Ensuring debt repayment after death Covering contingent liabilities Protecting against the death of a key employee or person in your business Buying out a partner or co-shareholder after his or her death Protecting your business from business interruption and loss of income Protecting yourself against unforeseeable health expenses Protecting your home against theft, fire, flood and other hazards


   

Protecting yourself against lawsuits Protecting yourself in the event of disability Protecting your car against theft or losses incurred because of accidents And many more

History of insurance
History of insurance refers to the development of a modern business in insurance against risks, especially regarding ships, cargo, and buildings ("property" and "fire"), death ("life" insurance), automobile accidents ("auto"), and the cost of medical treatment (health insurance). The industry has been profitable and has provided attractive employment opportunities for white collar workers. It helps eliminate risks (as when fire insurance companies demand safe practices and the availability of fire stations and hydrants), spreads risks from the individual or single company to the larger community, and provides an important source of long-term finance for both the public and private sectors.

Ancient world
The first methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen. Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Nowruz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented


gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices. The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: "[Whenever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much.‖] A thousand years later, the inhabitants of Rhodes created the 'general average', which allowed groups of merchants to pay to insure their goods being shipped together. The collected premiums would be used to reimburse any merchant whose goods were jettisoned during transport, whether to storm or sink age. The ancient Athenian "maritime loan" advanced money for voyages with repayment being cancelled if the ship was lost. In the 4th century BC, rates for the loans differed according to safe or dangerous times of year, implying an intuitive pricing of risk with an effect similar to insurance. The Greeks and Romans introduced the origins of health and life insurance c. 600 BCE when they created guilds called "benevolent societies" which cared for the families of deceased members, as well as paying funeral expenses of members. Guilds in the middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.

Medieval and Early modern
Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. The first known insurance contract dates

London's growing importance as a centre for trade increased demand for marine insurance." to insure brick and frame homes. written in 1628. Lloyd's of London remains the leading market (note that it is not an insurance company) for marine and other specialist types of insurance. which operated much like modern disability insurance. but it works rather differently than the more familiar kinds of insurance. and those willing to underwrite such ventures. merchants. a separation of roles that first proved useful in marine insurance. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston). MULLANA. Today.200 houses. In 1680. Toward the end of the 17th century. "accident insurance" began to be available. and specialized varieties developed.from Genoa in 1347. In the late 1680s. The will of Robert Hayman. Insurance as we know it today can be traced to the Great Fire of London. and ships‘ captains. In the aftermath of this disaster. "The Fire Office. Mr. South Carolina in 1732. and in the next century maritime insurance developed widely and premiums were intuitively varied with risks. The first printed book on insurance was the legal treatise On Insurance and Merchants' Bets by Pedro de Santarém (Santerna). refers to two policies he has taken out with a wealthy Londoner: one of life insurance and one of marine insurance. AMBALA . It became the meeting place for parties wishing to insure cargoes and ships. he established England's first fire insurance company. Nicholas Barbon opened an office to insure buildings. and thereby a reliable source of the latest shipping news. Insurance became far more sophisticated in post-Renaissance Europe. where all laws regulating health insurance actually referred to disability insurance. Edward Lloyd opened a coffee house that became a popular haunt of ship owners. In the late 19th century. which in 1666 devoured 13. but it provided only fire insurance. written in 1488 and published in 1552. This payment model continued until the start of the 20th century in some jurisdictions (like California). These new insurance contracts allowed insurance to be separated from investment. MM INSTITUTE OF MANAGEMENT MMU.

accident insurance. the British introduced a system of social insurance as well. Not only did his company warn against certain fire hazards. he founded the Philadelphia Contribution ship for the Insurance of Houses from Loss by Fire. The Presbyterian Synods in Philadelphia and New York founded the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759. MULLANA. led by the Liberal Party. it refused to insure certain buildings where the risk of fire was too great. AMBALA . Episcopalian priests created a comparable relief fund in 1769. in the form of perpetual insurance. where wages were higher but welfare did not exist. In the 1880s Chancellor Otto von Bismarck introduced old age pensions. medical care and unemployment insurance that formed the basis of the modern European welfare state. such as all wooden houses. After 1905.S. MM INSTITUTE OF MANAGEMENT MMU. In 1752. Between 1787 and 1837 more than two dozen life insurance companies were started. His paternalistic programs won the support of German industry because its goals were to win the support of the working classes for the Empire and reduce the outflow of immigrants to America. began in the late 1760s. Franklin's company was the first to make contributions toward fire prevention. The sale of life insurance in the U. American history Colonial Benjamin Franklin helped to popularize and make standard the practice of insurance.Modern Europe German and British government programs Germany built on a tradition of welfare programs in Prussia and Saxony that began as early as in the 1840s. but fewer than half a dozen survived. It was greatly expanded after 1944. particularly Property insurance to spread the risk of loss from fire.

. who sought out clients. spring 2010. The ambitious ones expanded geographically in the 1830s. . From the opposite angle." The company had to judge the reliability of agents. . The agents were not medical men. Is he of a sedentary turn. or had the small pox? . . such as the New York Life Insurance and Trust Company in upstate New York. palsy. Moral hazards An important concern for insurance companies was the moral hazard--people might set fires to collect property insurance--or even commit suicide or murder when life insurance was involved. "How to Make a Dead Man: Murder. and the Baltimore Life Insurance Company in the Mid-Atlantic and Upper South. without hereditary disease. pp 2839 MM INSTITUTE OF MANAGEMENT MMU. They built a network of agents to develop markets in different cities. AMBALA . and judged the health of potential customers. . MULLANA. but they were instructed to ask applicants some standard questions: "Is he now in good health. . canceled dubious policies. ." Financial History. Has he at any time been afflicted with gout. or accustomed too much exercise? . or falsified their own deaths so their family could collect. The goal was to only insure people "of sound health. and of sober habits. Do you know of any circumstance which renders insurance on his life more than usually hazardous?" A better solution came late in the 19th century when the companies employed doctors who used standardized criteria. Fraud and Life Insurance in 19th-century America. Sharon Murphy. or how otherwise? .19th century Most insurance companies operated locally. asthma. broke policy restrictions. and not belonging to families remarked for short lives. convulsions. consumption. Fraud was also a problem. . Issue 97. religious people refused to consider insurance against God's decisions. Has he been vaccinated. scrofula. and does he usually enjoy good health. or any other disease likely to impair his constitution? . as people lied on applications.

During the 1970s and 1980s there was a growth in support for the requirement for drivers to have insurance as a means of proving financial responsibility since it was recognized that the automobile. they added that their trustees voted to end the sale of such policies 15 years before the Emancipation Proclamation of 1863. could cause significant collateral damage. That expansion experienced its first boom market immediately after the Second World War with the original VA Home Loan programs that greatly expanded the idea that affordable housing for veterans was a benefit of having served. The mortgages that were underwritten by the federal government during this time included an insurance clause as a means of protecting the banks and lending institutions involved against avoidable losses. MULLANA. some insurance companies in the South insured the lives of slaves for their owners. AMBALA . the companies have been required to search their records for such policies. but this program expanded the concept and acceptance of insurance as a means to achieve individual financial security that might not otherwise be available. 20th century Social Security Until the passage of the Social Security Act in 1935.Slaves Prior to the Civil War (1861-65). It soon followed that car insurance became a mandatory requirement for all drivers Brief history of insurance sector Insurance sector in India has completed all the facets of competition –from being an open competitive market to being nationalized and then getting back to the form of a MM INSTITUTE OF MANAGEMENT MMU. In response to bills passed in California in 2001 and in Illinois in 2003. the federal government had never mandated any form of insurance upon the nation as a whole. New York Life for example reported that Nautilus sold 485 slaveholder life insurance policies during a two-year period in the 1840s. in the case of an accident. During the 1940s there was also the GI life insurance policy program that was designed to ease the burden of military losses on the civilian population and survivors.

Important milestones in the Indian general insurance business  1907: The Indian Mercantile Insurance Ltd. AMBALA . With the establishment of the Oriental Life Insurance Company in Kolkata. an arm of the Insurance Association of India.  1957: General Insurance Council. Important milestones in the Indian life insurance business  1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business. viz. the business of Indian life insurance started in the year 1818. LIC Act. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. was set up which was the first company of its type to transact all general insurance business.liberalized market once again. It started off with a capital of ` 5 crore and that too from the Government of India. The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. MULLANA. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British. LIC was formed by an Act of Parliament.  1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. 1956. framed a code of conduct for guaranteeing fair conduct and sound business MM INSTITUTE OF MANAGEMENT MMU.  1938: The earlier legislation consolidated the Insurance Act with the aim of safe guarding the interests of the insuring public.  1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses.

AMBALA .patterns.  1972: The General Insurance Business (Nationalization) Act. the Oriental Insurance Company Ltd. If the existing public sector insurance companies are considered then there are presently 13 insurance companies in the life side and 13 companies functioning in general insurance business. the New India Assurance Company Ltd. General Insurance Corporation has been sanctioned as the "Indian reinsurer" for underwriting only reinsurance business. GIC was incorporated as a company.  1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up. and the United India Insurance Company Ltd. 1972 nationalized the general insurance business in India. MM INSTITUTE OF MANAGEMENT MMU. 107 insurers integrated and grouped into four companies‘ viz. Insurance companies in India IRDA has till now provided registration to 12 private life insurance companies and 9 general insurance companies. It was with effect from 1st January 1973.. MULLANA.. the National Insurance Company Ltd.

in case of death. following him to the person entitled to receive the same. MULLANA. on the happening of a certain event.TYPES OF INSURANCE (A) LIFE INSURANCE: Term Life Insurance Permanent Life Insurance ULIPS (B) GENERAL INSURANCE Fire Insurance Marine Insurance Accident Insurance (A)Life Insurance Life Insurance is a contract providing for payment of a sum of money to the person assured or. MM INSTITUTE OF MANAGEMENT MMU. It is a good method to protect your family financially. AMBALA . by providing funds for the loss of income.

MULLANA. 2.Child's Deferred Assurance: Under this policy. 4. payable in installments over the schooling period. Endowment In case of endowment assurance. claim by Children insurance company is paid on the option date which is calculated to coincide with the child's eighteenth or twenty first birthday. Term assurance policies are only for a limited Assurance Assurance MM INSTITUTE OF MANAGEMENT MMU. Insurance against risk to one's life is covered under ordinary life assurance. Ordinary life assurance can be further clasified into following types: Types of Ordinary Meaning Life Assurance 1. insurance company collects premium from the insured for whole life or till the time of his retirement and pays claim to the family of the insured only after his death. However. In case the parent survives till option date. The insurance company pays the claim to the family of assured in an event of his death within the policy's term or in an event of the assured surviving the policy's term. ii). Whole Life In whole life assurance. the term of policy is defined for a specified period say 15. policy may either be continued or payment may be claimed on the same date. Term Assurance The basic feature of term assurance plans is that they provide death risk-cover. Long-term insurance covers all life insurance policies. if the parent dies before the option date. If the child dies before the option date. the parent receives back all premiums paid to the insurance company. School fee policy: School fee policy can be availed by effecting an endowment policy. 3. 25 or 30 years. AMBALA . Assurances for i). the policy remains continued until the option date without any need for payment of premiums. on the life of the parent with the sum assured.Life Insurance or Long-Term Insurance Long term insurance is so called because it is meant for a long-term period which may stretch to several years or whole life-time of the insured. 20.

In case of death of the insured within the term of the policy. 5. namely: Immediate Annuity: In an immediate annuity. Annuities Annuities are just opposite to life insurance. no claim is paid to the assured. Generally. the insured pays a lump sum amount (known as purchase price) and in return the insurer promises to pay him in installments a specified sum on a monthly/quarterly/half-yearly/yearly basis. and the sum assured is paid through periodical payments to the insured. full sum assured along with bonus accruing on it is payable by hte insurance company to the nominee of the deceased. Deferred Annuity: A deferred annuity can be purchased by paying a single premium or by way of installments. AMBALA . MULLANA. MM INSTITUTE OF MANAGEMENT MMU. A money back policy is generally issued for a particular period.time. Money Back Money back policy is a policy opted by people who want Policy periodical payments. The insurer in return promises to pay the insured a series of payments until insured's death. life annuity is opted by a person having surplus wealth and wants to use this money after his retirement. A person entering into an annuity contract agrees to pay a specified sum of capital (lump sum or by installments) to the insurer. In case the assured survives the term of policy. 6. There are two types of annuities. The insured starts receiving annuity payment after a lapse of a selected period (also known as Deferment period). spread over this time period. claim for which is paid to the family of the assured only when he dies.

Marine Cargo: Marine cargo policy provides protection to the goods loaded on a ship against all perils between the departure and arrival warehouse. Marine hull policy covers three-fourth of the liability of the hull owner (ship-owner) against loss due to collisions at sea. cargo and freight. riot. health insurance. AMBALA . Some of the examples of general insurance are motor insurance. aircraft. hull. general insurance is normally meant for a shortterm period of twelve months or less.General Insurance Also known as non-life insurance. theft insurance. marine cargo covers carriage of goods by sea as well as transportation of goods by land. explosion. General insurance can be classified as follows: Fire Insurance Fire insurance provides protection against damage to property caused by accidents due to fire. engineering insurance etc. Fire insurance also includes damage caused due to other perils like storm tempest or flood. fire. Marine Insurance Marine insurance basically covers three risk areas. whereby the explosion is caused by boilers not being used for industrial purposes. impact. These perils include theft. collision etc. personal accident insurance. Miscellaneous As per the Insurance Act. The risks which these areas are exposed to are collectively known as "Perils of the Sea". Marine Hull: Marine hull policy provides protection against damage to ship caused due to the perils of the sea. MM INSTITUTE OF MANAGEMENT MMU. Recently. malicious damage. burst pipes. Therefore. The remaining 1/4th of the liability is looked after by associations formed by ship-owners for the purpose (P and I clubs). money insurance. lightening or explosion. namely. MULLANA. civil commotion. longer-term insurance agreements have made an entry into the business of general insurance but their term does not exceed five years. all types of general insurance other than fire and marine insurance are covered under miscellaneous insurance. earthquake.

the opposite holds true for MM INSTITUTE OF MANAGEMENT MMU.UNIT LINKED INSURANCE POLICIES Mutual funds is the 'safety of the principal' guaranteed. Traditionally. Insurance is a provision against risk and it is a device with which man tries to protect himself from risk in life. his nominees would normally receive an amount that is the higher of the sum assured or the value of the units (investments). A Unit Linked Insurance Policies (ULIPs) is one in which the customer is provided with a life insurance cover and the premium paid is invested in either debt or equity products or a combination of the two. The softening of interest rates introduced a degree of much-needed rationality to endowment plans. This also coincided with an upturn in equity markets and the emergence of a new breed of market-linked insurance products like ULIPs. attractive returns at low risk became a thing of the past. Insurance policies then were symbolic of the times when high interest rates and the absence of a rational risk-return trade-off were the norms. MULLANA. To put it simply. which covers the concept of mutual fund and insurance. it enables the buyer to secure some protection for his family in the event of his untimely death and at the same time provides him an opportunity to earn a return on his premium paid. While in conventional insurance products the insurance component takes precedence over the savings component. ULIP attempts to fulfill investment needs of an investor with protection/insurance needs of an insurance seeker. In the event of the insured person's untimely death. The recent development in the financial innovation is Unit Linked Insurance Policies (ULIPs). In other words. The returns were often so compelling that insurance products competed with investment products for a place in the investor‘s portfolio. It saves the investor/insurance-seeker the hassles of managing and tracking a portfolio or products. insurance products have been associated with attractive returns coupled with tax benefits. AMBALA . plus the added advantage of capital appreciation together with the income earned in the form of interest or dividend.

also if an eventuality were to occur. the insurance seeker‘s role was a passive one restricted to making premium payments. Aggressive/Growth funds. the same is not without its flipside. modifying premium payments and even opting for a distinct asset allocation than the one they originally opted for. As is the case with most evolved investment avenues. ULIPs are remarkably similar to mutual funds in terms of structure and functioning. the sum assured is the cornerstone. In traditional insurance products. Traditionally. understanding the functioning of ULIPs can be quite a handful! The presence of what seems to be relatively higher expenses. conversely in ULIPs . the sum assured is paid along with accumulated bonuses . More importantly ULIPs (powered by the presence of a large number of variants) offer investors the opportunity to select a product which matches their risk profile. The various aspects of ULIPs dealt with in this publication will certainly further the ULIP investor‘s cause. premium payments are the key component. for example an individual with a high risk appetite can shun traditional endowment plans (which invest about 85% of their funds in the debt instruments) in favor of a ULIP which invests largely in equities. the insured is paid either the sum assured or investment corpus whichever is higher. Investors have the choice of enhancing their insurance cover. While few would dispute the value-add that ULIPs can provide to one ‘s insurance portfolio and financial planning. AMBALA .ULIPs. For the uninitiated. MULLANA. ULIPs require greater participation from both the insured and the insurance advisor. making informed decisions is the key if investors in ULIPs wish to truly gain from their investments. balanced funds. Debt funds and MM INSTITUTE OF MANAGEMENT MMU. in ULIPs. premium payments made are converted into units and a net asset value (NAV) is declared. most life insurance companies offer individuals 4 options to choose from. HOW ULIP‟s MANAGE MONIES: Broadly speaking. in case of traditional products. rigidly defined insurance and investment components and the impact of markets on the corpus clearly make ULIPs a complex proposition.

Debt funds act as a good avenue for individuals to park their corpus in case they feel that the stock markets are overheated and could be headed for a correction. if stock markets look attractive from a long -term perspective. tend to be lower and steadier than the equity/ balanced fund. AMBALA . bonds and AAA-rated securities. may differ slightly across various life insurance companies. MULLANA. while most companies have a mandate to invest upto 100% of the aggressive/growth fund corpus in stocks.Money market funds. considered to be high on the risk parameter. The investment mandate. 80% of their investments in equities. They are therefore. a few cannot exceed say. They also add value for individuals who feel that they have attained their ‗targeted‘ returns and would now like to book profits by shifting a part/whole of their corpus into debt instruments. They differ primarily in the nature of their investments as well as their risk profiles which is shown in the graph below: Aggressive/Growth fund Such funds invest a major portion of the premiums in the equity markets. Besides. an individual can take advantage of the same by investing in the aggressive/growth fund option so long as his risk profile coincides with the higher risk levels associated with such an investment. MM INSTITUTE OF MANAGEMENT MMU. if one considers the tax benefits which life insurance offers to individuals. Such funds are 'low risk' in nature when compared to their equity/balanced counterparts. For example. The returns though. For example. Debt fund These types of funds invest the premium money in debt instruments like gsecs. The above mandate has the potential to make a difference to the returns generated by the ULIP portfolio. though largely the same. then debt investments offer a good opportunity when compared to avenues such as bank fixed deposits.

MULLANA. The allocation to equities varies across insurance companies. kotak flexi plan and the retirement plan offers the guaranteed maturity value (GMV). The safety of the „capital guarantee‟ stems from the fact that 70% of the premium money is MM INSTITUTE OF MANAGEMENT MMU. This fund is considered to be very safe on the risk parameter and stable on the returns front. At kotak life insurance kotak safe investment plan. Investments in balanced funds are ideal for individuals who are apprehensive of taking the 100% equity route but would still like to add a dash of equity to their portfolio to spruce up returns. Such ULIPs are primarily balanced funds in nature with a difference. which is net of expenses and the applicable bonus. which consists of both equities as well as debt instruments in varying proportions. Capital guarantee products A few insurance companies also offer ULIPs with a capital guarantee.Balanced fund A balanced fund invests the premium money in a portfolio. Balanced funds can also add value to individual portfolios when the stock markets are running high and individuals would like to moderate their risks with the help of an equity component. Individuals can use such funds to park their money for the short term. is applicable usually on the premium. we mean instruments. By short. This product guarantees the return of at least the premiums that have been paid over the policy‘s tenure should the fund value fall lower than the premiums paid.e.i. Money market fund/Liquid fund Such a fund invests the premium money it receives in short -term liquid instruments like bank deposits and money market instruments.term. The balance is struck by investing predominantly (generally upto 60% of the portfolio) in equities. the capital guarantee.. Capital guarantee . which have a maturity of one year or less. if any. they invest upto 30% of their portfolio in stocks and the remaining 70% in debt instruments. Balanced funds are considered to be medium risk investments vis -à -vis aggressive / growth funds which have a higher portion of assets in equities. for most insurance companies. AMBALA .

Mr. CEO. Chief Distribution and Marketing Officer of Bharti AXA Life said. which moderates the risks of investing in stocks but might lower potential returns.5% for each financial year). ―Such flexibility in product design allows the policyholder to manage investments effectively in any market condition. which is a first-of-its-kind benefit offered to Indian customers. 19:56 IST Bharti AXA Life Insurance Company Limited. Bharti AXA Life Insurance launches ULIP with increasing guarantee Announcement / Banking June 03. While our other ULIPs partner with customers in their financial planning for long-term needs. today announced the launch of an innovative premium guarantee product . the private life insurance joint venture between Bharti Enterprises and AXA. Guarantee Builder provides the flexibility to move out of the guarantee by switching out of Build n Protect Fund and investing in non-guaranteed funds.‖ GMV is the sum of the investment premiums payable over the term of the policy. Nitin Chopra. ―The launch of Guarantee Builder is in line with our objective to provide best-in-class products to suit the needs of different customer profiles. provides customers the confidence to manage a financial crisis situation. Bharti AXA Life said. Aligned to our focus on providing innovation that is packaged for longterm customer benefit. Guarantee Builder provides customers the comfort of the GMV increasing by 1% each year till it reaches 115% of GMV at maturity (if the Reference Rate* is at least 3. the customer is not just insulated from the impact of the market fall. This. As the name suggests. which provides customers the assurance of not foregoing the Guarantee even if premium MM INSTITUTE OF MANAGEMENT MMU. ―At maturity. Build n Protect provides customers the option to remain invested in equity up to 40% over the long-term. Guarantee Builder provides the perfect balance of growth and protection.as is the case currently . Guarantee Builder is also not just a premium guarantee product. the customer gets the fund value or 115% of the GMV. 2009. we believe.‗Guarantee Builder‘. while allowing them to shift to high yield funds in a stable market environment. Mr. MULLANA. AMBALA . whichever is higher. Thus.‖ In addition. In the event of the customer wanting to shift to larger equity allocation. but is also provided an opportunity to enjoy the benefits of long-term investing with a higher GMV. Speaking at the launch. our premium guarantee product addresses the needs of those traditional and new investors who are wary of market volatility .but would still like to participate in the Indian growth story. It provides customers the benefit of increasing Guaranteed Maturity Value (GMV). Shyamal Saxena.invested in relatively safe debt instruments. Another significant flexibility for customers is the policy reinstatement facility. world leader in financial protection. the new Guarantee Fund.

The protection is comprehensive as Guarantee Builder provides Death Benefit of Sum Assured PLUS Fund Value. General Insurance and Asset Management. Bharti has joint ventures with AXA. Bharti has retail business under a company called Bharti Retail. Bharti Airtel has been voted as India's most innovative company. being powerful in every one of its markets and developing synergies across the Group. retail and manufacturing.5% of average policy fund value at the end of the 10th and 15th year respectively provides customers the benefit of wealth creation over the long-term. Saxena adds. and 4. MULLANA. business. 135. AXA is focused on the world's major markets. Bharti Airtel. Bharti Enterprises Bharti Enterprises is one of India‘s leading business groups with interests in telecom. Tele-media services and Enterprise services. The special addition of 2. AXA had over 80 million clients worldwide.payments have been missed inadvertently. with Sum Assured being ten times the annual investment premium. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. to offer fresh and processed fruits and vegetables in the domestic as well as international markets. It also has a joint venture . the Group's growing international presence and wide range of quality products and services have established AXA as one of the few successful global brands in the financial services industry. 816 billion Euros in assets under management. savings and estate planning. AXA GROUP (AXA SA) Since the AXA name was created in 1985. *Reference Rate = Interest Rate (Yield) on the 10 year Government of India Bond declared by RBI on 31st March every financial year. for Life Insurance.Bharti Wal-Mart . The AXA Group is committed to international expansion and sees commitment to the Asia-Pacific Region as offering many opportunities for future growth.044 million Euros in underlying earnings. Bharti Teletech is the country‘s largest manufacturer and exporter of telephone terminals. in a survey conducted by The Wall Street Journal. 91.‖ Mr.000 employees. The GMV has a reinstatement period of 2 years from lapse. both individuals and businesses. the Group supports its clients. at every stage in their lives by providing products and services to meet their needs.with Wal-Mart for wholesale cash-and-carry and back-end supply chain management operations in India. a group company. AXA's strategic focus is global. North America and selected countries in Asia Pacific. AMBALA . aimed at developing a single worldwide brand. Headquartered in Paris and active across all five continents in 55 countries. agri.2 billion Euros in consolidated revenues. financial services. MM INSTITUTE OF MANAGEMENT MMU. world leader in financial protection and wealth management. provided all due premiums are paid along with interest. personal protection. Bharti has a joint venture – Bharti Del Monte (formerly Field Fresh Foods) – with Del Monte Foods India. As of 31 December 2008. in particular Europe. A global leader in Financial Protection. is one of Asia‘s leading providers of telecommunications services with operations in India and Sri Lanka spanning Mobile services. including insurance.

6 million and ended 2008 with assets of A$779 million in excess of the regulatory requirements. India and China serving approximately 2. Singapore. Malaysia. A number of Group companies are also listed in their local markets: Australia. About AXA Asia Life and AXA Asia Pacific Holdings AXA Asia Life is part of AXA Asia Pacific Holdings Limited. 55 in Inter-brand‘s list of ―Top Global Brands‖ in the Business Week magazine published in September 2008. In 2008 AXA Asia Pacific Holdings Limited reported a 2 percent increase in operating earnings at A$555. AXA Asia Pacific Holdings Ltd is listed on the Australian Stock Exchange and is approximately 53 percent owned by AXA SA. AXA was also ranked 15th in 2008‘s FORTUNE GLOBAL 500 survey of ―The World‘s Largest Corporations‖. Thailand. attentive and reliable to the needs of AXA customers. Frankfurt and New York. AXA was ranked no. It is available. the Philippines. Indonesia. AXA is committed to become the preferred company in financial protection and wealth management by 2012. MULLANA.AXA is listed on most of the world's major stock markets. health (stock)‖. Paris. and ranked top under the category ―Insurance: Life.5 million customers. and has operations in Hong Kong. AMBALA . The Group enjoys AA-range ratings with the three leading global rating agencies. London. MAJOR COMPETITORS INSURER ICICI PRUDENTIAL LIFE INDIAN PARTNER ICICI INSURANCE SBI LIFE INSURANCE LIFE CORPORATION Reliance Life Insurance MAX NEW YORK LIFE Reliance MAX INDIA INSURANCE STATE BANK OF INDIA LIC INSURANCE BIRLA SUNLIFE ADITYA BIRLA GROUP MM INSTITUTE OF MANAGEMENT MMU.



Nigeria. the group has diversified into emerging business areas in the fast expanding Indian economy. real estate. Uganda. Madagascar. Bangladesh. Guernsey.as well establishing large scale cash & carry stores to serve institutional customers and other retailers. the group‘s flagship company. and distribution of telecom/IT products. Tanzania. training and capacity building. Over the years some of biggest names in international business have partnered Bharti. Burkina Faso. Nokia Siemens and Alcatel-Lucent are key MM INSTITUTE OF MANAGEMENT MMU. and Zambia. The group offers a complete portfolio of financial services – life insurance. In addition. AMBALA . With its entrepreneurial spirit and passion to undertake business projects that are transformational in nature. Congo Brazzaville. Through its global telecom operations Bharti group operates under the ‗Airtel‘ brand in 19 countries across Asia and Africa– India. IBM. Over the past few years. has emerged as one of top telecom companies in the world and is amongst the top five wireless operators in the world. Seychelles. With a vision to build India‘s finest conglomerate by 2020 the group has forayed into the retail sector by opening retail stores in multiple formats – small and medium .Chapter:. financial services. Currently. What sets Bharti apart from the rest is its ability to forge strong partnerships. SingTel. Bharti started its telecom services business by launching mobile services in Delhi (India) in 1995. Sierra Leone. Ericsson. retail. Kenya. Sri Lanka. Gabon. The group has growing interests in other areas such as telecom software. Ghana. general insurance and asset management – to customers across India. and foods. Bharti has created world-class businesses in telecom. Since then there has been no looking back and Bharti Airtel. Chad. Malawi. Niger. Bharti has grown from being a manufacturer of bicycle parts to one of the largest and most respected business groups in India. Bharti also serves customers through its fresh and processed foods business. MULLANA. by Sunil Bharti Mittal. Democratic Republic of Congo.2 Company Profile Bharti Group Overview Founded in 1976. the group also has mobile operations in Jersey.

We innovate with new ideas and energise with a strong passion and entrepreneurial spirit. MM INSTITUTE OF MANAGEMENT MMU. Wal-Mart is Bharti‘s partner for its cash & carry venture. MULLANA.partners in telecom. Axa Group is the partner for the financial service business and Del Monte Pacific for the processed foods division. Being loved and admired by our customers and respected by our partners. Being brave and unbounded in realizing our dreams. AMBALA . Vision and Values Vision By 2020 we will build India‟s finest conglomerate by:     Always empowering and backing our people. Transforming millions of lives and making a positive impact on society. Transparency We believe we must work with honesty. We encourage and back people to do their best. Bharti strongly believes in giving back to the society and through its philanthropic arm the Bharti Foundation it is reaching out to over 30.000 underprivileged children and youth in India. Values Empowerment We respect the opinions and decisions of others. trust and the innate desire to do good. Entrepreneurship We always strive to change the status quo.

Flexibility We are ever willing to learn and adapt to the environment. MULLANA.2010)* 4.2010) *Prepared in accordance with IFRS (International Financial Reporting Standards) MM INSTITUTE OF MANAGEMENT MMU. AMBALA . our partners and the customers‘ evolving needs. 2010)    400.000 individual shareholders 91 billion euros in revenues (at December 31.3 billion euros in adjusted earnings (at December 31. Key figures:   95 million clients worldwide 214 391 employees (including exclusive sales associates) worldwide (at December 31.Impact We are driven by the desire to create a meaningful difference in society. AXA Group profile In the financial markets. AXA is positioned as a global leader in Financial Protection.

716 4.977 57.780 (1) APE (Annual Premium Equivalent): represents 100% of new business regular premiums + 10% of new business single premiums.952 59. AMBALA .AXA in figures Revenues Indicators IFRS. in Euro million Life & Savings* P&C International Insurance Asset Management Banks TOTAL 2005 2006 2007 2008 2009 2010 45.671 77. MULLANA.863 3.510 25.123 90.440 428 3.860 3.413 3.631 91.074 395 2. APE is group share.016 26.847 3.961 93.841 4.845 57.789 6.694 6.972 *Life & Savings New Business Volume (APE(1)) 5.923 18.216 90.568 2.874 19.813 3.174 27. in line with EEV methodology.328 459 71.039 26.947 339 412 2.406 377 3. Geographic breakdown of 2009 insurance revenues France North America Northern Central and Eastern Europe UK & Ireland Asia-Pacific (including Japan) Mediterranean region International insurance* *excluding AXA RE 23% 13% 26% 7% 11% 16% 3% MM INSTITUTE OF MANAGEMENT MMU.186 7.620 56.188 5.116 49.463 6.

2 point reaching 99. Underlying earnings Underlying earnings of Euro 3.317 billion.315 1.070 1. Underlying earnings are adjusted earnings. and profit or loss on financial assets (under the fair value option) and derivatives.Assets under management 2005 2006 2007 2008 2009 2010 Total (in Euro billion) By company Alliance Bernstein AXA Investment Managers Other AXA companies Breakdown of Asset under Management Managed on behalf of third party Own account Life insurance separate accounts 54% 51% 51% 33% 35% 34% 13% 14% 14% 42% 41% 44% 43% 13% 15% 42% 45% 13% 46% 43% 42% 40% 38% 43% 14% 19% 15% 34% 34% 49% 49% 17% 17% 33% 47% 20% 1. Adjusted earnings represent net income before the impact of exceptional operations.014 1.281 981 1. excluding net capital gains attributable to shareholders.88 billion.104 Adjusted earnings Adjusted earnings of Euro 4.1%. MULLANA. P&C combined ratio The combined ratio for property-casualty operations slightly deteriorated by 0. MM INSTITUTE OF MANAGEMENT MMU. goodwill and related intangibles amortization/impairments. AMBALA .

6% 3. 2010 Mutual AXA Treasury shares Individual shareholders Employees Other shareholders Institutional Shareholders: France Institutional Shareholders: North America Institutional Shareholders: United Kingdom and Ireland Institutional Shareholders: Germany Institutional Shareholders: Benelux Institutional Shareholders: other Europe Institutional Shareholders: rest of World BNP Paribas 13.1% 7.6% 3.5% 4. MM INSTITUTE OF MANAGEMENT MMU. MULLANA. founded by Dhirubhai H. Group's annual revenues are in excess of US$ 58 billion. with businesses in the energy and materials value chain.9% 1.Capital Ownership Capital Ownership at December 31.5% 16.5% 18.4% Reliance Group The Reliance Group.3% 6.4% 5.5% 3. is India's largest private sector enterprise.8% 11. The flagship company. Ambani (1932-2002). is a Fortune Global 500 company and is the largest private sector company in India.0% 4. AMBALA . Reliance Industries Limited.

fibre intermediates. plastics and chemicals). there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary. Reliance enjoys global leadership in its businesses. fibre intermediates. the architect of India‘s capital markets. Shri. including its subsidiaries and Reliance Industrial Infrastructure Limited . Reliance pursued a strategy of backward vertical integration . the leader of men. textiles. being the largest polyester yarn and fiber producer in the world and among the top five to ten producers in the world in major petrochemical products. In one lifetime. plastics.in polyester. Major Group Companies are Reliance Industries Limited. petroleum refining and oil and gas exploration and production . AMBALA . petroleum refining and marketing. But the role Dhirubhai cherished most was perhaps that of India‘s greatest wealth creator. retail. Reliance Life Insurance Our Founder Few men in history have made as dramatic a contribution to their country‘s economic fortunes as did the founder of Reliance. starting from the proverbial scratch. the proud patriot. MM INSTITUTE OF MANAGEMENT MMU. petrochemicals (polyester.to be fully integrated along the materials and energy value chain. and special economic zones.Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. The Group's activities span exploration and production of oil and gas. the champion of shareholder interest. Fewer still have left behind a legacy that is more enduring and timeless. India‘s largest private sector enterprise. he built. Dhirubhai H Ambani. Starting with textiles in the late seventies. As with all great pioneers. the unmatched strategist. MULLANA. petrochemicals.

and creating one of the world‘s largest shareholder familie About Reliance Life Insurance Reliance Life Insurance offers you products that fulfill your savings and protection needs. Reliance Life Insurance is an associate company of Reliance Capital Ltd. substantial return on their investments.000 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list. stock broking. Dhirubhai is widely regarded as the father of India‘s capital markets. Reliance Capital is one of India‘s leading private sector financial services companies. Over the next three and a half decades. Under Dhirubhai‘s extraordinary vision and leadership. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. In 1977. a part of Reliance Group. when Reliance Textile Industries Limited first went public. and ranks among the top 3 private sector financial services and banking companies. he converted this fledgling enterprise into a ` 60. AMBALA . MM INSTITUTE OF MANAGEMENT MMU. proprietary investments. private equity and other activities in financial services.000). in terms of net worth. Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO. Reliance scripted one of the greatest growth stories in corporate history anywhere in the world. in exchange for their trust. Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind. life and general insurance. MULLANA.. Throughout this amazing journey. the first ever Indian private company to do so. Reliance Capital has interests in asset management and mutual funds. in the process making millionaires out of many of the initial investors in the Reliance stock. Undaunted. Our aim is to emerge as a transnational Life Insurer of global scale and standard. and went on to become India‘s largest private sector enterprise. he had a seed capital of barely US$ 300 (around ` 14.When Dhirubhai embarked on his first business venture. promising them. the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks.

95.Certificate of Merit in the Financial Services category by Council for Fair Business Practices (CFBP).Reliance Group also has presence in Communications.000 Advisors and over 16. Media.  Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007. Natural Resources.26% in 2009 -10  RLIC has achieved a growth rate of 21% while the private industry has grown at 13%     Fastest to reach the 5 million policy mark Largest private insurer in terms of policy count in 2009-10 1145 branches 1. from 1. Healthcare and Infrastructure Achievements  3rd largest private player in a span of just 4 years. Energy.9% in 2005-06 to 10. moved from 11th position to 3rd   Amongst the fastest growing Companies for 4 years in a row Continuous increase in market share over 4 years.000 employees RLIC continues to be amongst the foremost Life Insurance companies in India to be certified ISO 9001:2000 for all the processes. MULLANA. Entertainment. AMBALA .  The Company has also won the DL Shah Quality Council of India Commendation Award in the services category in feb 2008 for its work on promoting 'self help channels for service' MM INSTITUTE OF MANAGEMENT MMU.

In the recently concluded India Insurance Awards organized by Indian Insurance Review in conjunction with Celent.Reliance Industries Limited to acquire Bharti‟s stake in the Insurance Joint-Ventures with AXA in India Mumbai. 1 Insurance Regulatory and Development Authority 2 Foreign Direct Investment 3 April 2010 – March 2011. In fiscal year 20113. RIL and RIIL would effectively own respectively 57% and 17% in both insurance companies and would become AXA‘s joint ventures partners in India. RIIL will effectively own 5% and AXA the balance 50% in both the insurance companies. the General Insurance entity was rewarded with Personal Lines Growth Leadership Award for 2011. Euro 132 million) and Bharti AXA GI collected gross direct premiums of INR 5. Bharti Enterprises (―Bharti‖) and Reliance Industries Limited (―RIL‖) announced today having reached an understanding on the acquisition by RIL and its associate Reliance Industrial Infrastructure Limited (―RIIL‖) of Bharti‘s shareholding of 74% in Bharti AXA Life Insurance Co. On completion of the proposed transaction. Bharti AXA Life collected premiums of INR 7. Euro 92 million). June 10. This transaction is subject to negotiation and entering into legally binding agreements between RIL. Ltd (―Bharti AXA Life‖) and Bharti AXA General Insurance Co. RIL will effectively own 45%. Upon exercise of such option. MULLANA. Premiums are expressed in Indian GAAP MM INSTITUTE OF MANAGEMENT MMU.9 billion (or ca. RIL and AXA will join forces to create market leading Life and General Insurance businesses in India by leveraging their respective strengths and expertise. (―Bharti AXA GI‖). 2011 AXA.5 billion (or ca. AMBALA . RIIL and AXA and obtaining necessary approvals from IRDA1 and other relevant/applicable approvals. The proposed agreement contemplates an option by which AXA would acquire from RIL and RIIL upto 24% shareholding in both the insurance companies in accordance with the applicable regulations as and when the FDI2 regulations permit such holding by AXA. AXA would retain its current 26% shareholding and would continue to manage the day to day operations of the JVs. Ltd.

high speed broadband.0 billion) as of March 31.5 billion) and net worth of INR 1.286 crore (US$ 4. cash profit of INR 34. turnkey telecom solutions for enterprises and national & international long distance services to MM INSTITUTE OF MANAGEMENT MMU. DTH. RIL is the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 100th amongst the world's Top 200 companies in terms of profits. AMBALA . The company offers mobile voice & data services. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit.58. IPTV. Bharti Airtel.Business Week in Collaboration with the Boston Consulting Group (BCG).530 crore (US$ 7. RIL and RIIL key contacts: Manoj Warrier: +91 98214 14954 Tushar Pania: +91 98200 88536 About Bharti Enterprises: Bharti Enterprises is one of India‘s leading business groups with interests in telecom. a group company.2010' in the World in a survey conducted by the US financial publication . RIL ranks 68th in the Financial ‗Times FT Global 500‘ list of the world's largest companies.Mumbai. In 2010. is a leading global telecommunications company with operations in 19 countries across Asia and Africa. RIL is ranked amongst the ‘50 Most Innovative Company . net profit of INR 20.7 billion). MULLANA.51. agri business.540 crore (US$ 34. 2011 About RIL Reliance Industries Limited (RIL) is India‘s largest private sector company on all major financial parameters with a turnover of INR 2. 2011. retail and manufacturing. BCG also ranked RIL as the second highest ‗Sustainable Value Creators‘ for creating the most shareholder value over the decade in the world.651 crore (US$ 58. fixed line. June 10.0 billion).

Bharti key contacts: Raza Khan: +91 9871391881 Prem Subedi: +98 10868873 About AXA The AXA Group is a worldwide leader in insurance and asset management. Undue reliance should not be placed on such statements because. The AXA Group is included in the main international SRI indexes. statements that are predictions of or indicate future events.1. to offer fresh and processed fruits and vegetables in the domestic as well as international markets.46.with Wal-Mart for wholesale cashandcarry and back-end supply chain management operations in India. by their nature. 2010. Bharti has a joint venture – FieldFresh Foods – with Del Monte Pacific Ltd.75. plans or objectives. MULLANA. The AXA ordinary share is listed on compartment A of Euronext Paris under the ticker symbol CS (ISN FR 0000120628 – Bloomberg: CS FP – Reuters: AXAF.40. but not limited to.1. It also has a joint venture .carriers. they are subject to known and unknown risks and uncertainties.PA).000 employees serving 95 million clients. with 214. AXA had Euro 1.axa.48.43 IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS Certain statements contained herein are forward-looking statements including. AMBALA .75. In 2010.Bharti Wal-Mart . Bharti has forayed into retail business under a company called Bharti Retail.75.9 billion. Beetel Teletech is the country‘s largest manufacturer and exporter of telephone terminals.40.46.85 Armelle Vercken : +33.40. such as Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.1. IFRS revenues amounted to Euro 91 billion and IFRS underlying earnings to Euro 3. This press release is available on the AXA Group website: www. AXA‘s American Depository Shares are also quoted on the OTC QX platform under the ticker symbol AXAHY.104 billion in assets under management as of December 31.com AXA Investor Relations: AXA Media Relations: Mattieu Rouot: +33. trends.42 AXA Individual shareholders Relations: +33. Please refer to MM INSTITUTE OF MANAGEMENT MMU.

revealed his interest in Life Insurance. Companies that have tied up together. Company is already very famous in India for its numerous avenues. Ltd. where the Bharti Telecom Owner. Even the success graph of Bharti AXA Life Insurance Company is commendable. Moreover. Bharti Pvt. Benefits of Bharti AXA Life Insurance Plans Bharti AXA Life Insurance is an Indian company. and invented Bharti AXA Life Insurance along with Bharti Retail Pvt. Bharti AXA Life Insurance Company is gaining more popularity. however. Ltd. the further tie up of both these PVT. for a description of certain important factors. risks and uncertainties that may affect AXA‘s business. future events or circumstances or otherwise. but AXA is an International Company who mainly focuses upon the financial protection of the people. which are two different Pvt. Companies have come with new growth prospects of the people. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements. Both the Companies are doing well in India. which came into limelight in November 2006.the section ―Cautionary statements‖ in page 2 of AXA‘s Document de Reference for the year ended December 31. MULLANA. Bharti AXA is not a single venture but it is a joint business venture of AXA and Bharti. 2010. Ltd. whether to reflect new information. AMBALA . where in a short period of time this life MM INSTITUTE OF MANAGEMENT MMU.

Bharti AXA Life Shield – again this plan gives you the security against natural/accidental calamities. day by day. AMBALA . that later suppose to converted in a particular subtotal at the time of maturity of the plan. MULLANA. Bharti AXA Spot Suraksha – under this plan. MM INSTITUTE OF MANAGEMENT MMU. Bharti AXA Future Confident II – this plan is similar with Future Confident I but its term. And because of its reliable polices more people are connecting to Bharti AXA Life Insurance. acts as whole life coverage from any natural calamity. Bharti AXA Aspire Life – this plan is beneficial for those people who want to save their money for future prospects. Bharti AXA Secure Confident – this plan gives you the confident security for your future with higher return on low premium. Bharti AXA Wealth Confident – this plan assures the financial help during health ailment. Bharti AXA Save Confident – under this product you can save some amount monthly by paying a regular premium. Bharti AXA Future Confident – with the less premium and higher returns.insurance company have spread its name not in the Indian Market but also globally it have approximately 4000 main branches which showcases its fast growth. while opting numerous life insurance plans according to their need. So let us tell you about some products of Bharti AXA Life Insurance: Bharti AXA Sanjeevani – this product of life insurance plan. the main coverage is during accidental calamity. conditions and duration of the policy may differentiate. this plan promises a strong financial stability.

Bharti AXA Invest Confident – this plan focuses upon market investment and give returns accordingly. AMBALA . Bharti AXA Swasthya Sanjeevani – this product is similar with wealth confident plan. MM INSTITUTE OF MANAGEMENT MMU. however the age limit may differentiate in each of them.Bharti AXA Bright Stars – this product is beneficial for child‘s future financial security. Bharti AXA Dream Life Pension – with less premium and higher returns this product promises a regular return in old age. Bharti AXA Mortgage Credit Shield – after natural death of the nominee this plan provides the financial security to the family of nominee. MULLANA.


product brochures.3 RESEARCH METHODOLOGY TYPE OF DATA COLLECTED There are two types of data used. This method is often used during preliminary research efforts to get a gross estimate of the results.Chapter:. newspaper articles etc. A sample is a representative of the universe selected for study. Secondary data is data collected from indirect sources. They are primary and secondary data. MULLANA. competitor‘s websites etc. AMBALA . telephonic interview as well as the personal interview methods of data collection. Sample technique MM INSTITUTE OF MANAGEMENT MMU. SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. the company website. As the name implies. Primary data is defined as data that is collected from original sources for a specific purpose. company brochures. Sample size The sample size for the survey conducted was 150 respondents. (Source: Marketing Research. Convenience sampling is used in the research where the researcher is interested in getting an inexpensive approximation of the truth. the internet. Secondary Sources These include books. Sumathi and Saranavel) Primary Sources These include the survey or questionnaire method. without incurring the cost or time required to select a random sample. the sample is selected because they are convenient.

 To analyze the need and expectation of present and potential customers through survey. But while preparing the report I have undergone certain problems relating:  Could not able to collect data for many years for performance because ULIPs are new to the market. MULLANA. MM INSTITUTE OF MANAGEMENT MMU. management in detail in short span is not an easy Some of the respondents were totally unresponsive and unaware. Limitations of study While doing the project on Fund Management of ULIPs of Kotak Mahindra Life Insurance I collected the relevant material of ULIPs. AMBALA .Convenience sampling technique was used in the survey conducted.   To analyze the fund performance over the period. Objectives of the study To know about the Fund Management of Bharti Axa Life Insurance To understand about ULIP‘s o o o o Concept Features Working Comparison with other companies ULIP. To analyze market share of total industry and ULIP market.  Time boundedness being one of the limitation being to analyze fund job.


Hly. 5 Times of 5 Times of 5 Times of Annual Premium Annual Premium Times.4 Data Analysis and Interpretation COMPETITIVE ANALYSIS Comparing ulips Birla Sunlife Platinum Premier Allianz Bajaj Max Gain 8-60 Yrs 10 Yrs 7 70 Yrs ICICI Pru Insurer LIC SBI Life Smart ULIP Bharti Axa ULIP Entry Age Term PPT Maturity Age Wealth Plus 10-65 Yrs 8 Yrs Single or 3 73 Yrs Single.25Risk Cover 5 Times. ECS ECS Qly. MULLANA. Hly. Hly. Qly.1-6 Annual Annual ECS Monthly Monthly Monthly SP 1. AMBALA . True Wealth Pinnacle 8-44 10 Yrs 5 64 Yrs 8-65 Yrs 10 Yrs 3 75 Yrs 8-60 Yrs 8-70 Yrs 10 Yrs 3 or 5 70 Yrs 10 Yrs 10 80 Yrs Yly. ECS Mode Yly. Yly. ECS Monthly SP 1.Chapter:. Annual 5 – 30 Times SA + 5 Times of Annual Premium Annual 5-10 Annual Times Premium Death Cover SA + Fund Value SA or Bid Value SA or Bid SA or Fund Value Value Fund Value Or Higher of sum assured SA or Fund Value Extended Cover DAB Yes Yes No - No No No - No Riders No No MM INSTITUTE OF MANAGEMENT MMU. Yly. Hly. QLY. QLY.

40% of annual premium (3 1.60% of Annual Premium PM for 3 Yrs 1st Yr 60 Policy Admn Charge PM.4% PM of annual premium starting from 6th policy yr MM INSTITUTE OF MANAGEMENT MMU.400.00% Ten – only Two 1 is guaranteed 7 Yr 2 Dates 7Y3M.00% 5.00-6. Yly 20000 Premium Hly 10000 Qly 5000 ECS 2000 50000 Yly 25000 Hly 25000 Qly 15000 ECS Fund Type NAV Guarantee Allocation Charges [1st Year] Allocation Charges One – Wealth Plus Fund 7 Yr. 2nd Yr 25 PM Escalation @ 3% Flat 60 0.Yly SP 40000.00% 8% 14% 2.5% (2-5) 0%(6+) 4% (2) 2% (3) Partial Withdraw Surrender 3 Yrs 3 Yrs 5 Yrs 3 Yrs 3rd Yr 9% 3 Yrs 3 Yrs 3 Yrs 3 Yrs 5 Yrs 5 Yrs 3 Yrs 3 Yrs 3rd Yr Within 3 Yr 40% 4 Yr 20% 5 Yr 10% Surrender Charges NIL 4th Yr 2% 5th Yr Nil Within 3 Yr 20% 4 Yr 10% Applicable.50% for PPT 5% for PPT 5% for PPT 3. Term End Full Full 7 Yrs One One One Hly 15000 ECS. MULLANA. AMBALA .0020. Qly 7500 Mly 5000 Yly 25000 Hly 15000 Qly 8000 ECS 3000 25000 PA 50000 PA 15% 10% 15.26% of First Year SA 0. No mention in brochure 4% 4th Yr 2% 5th Yr NIL 0. Term End 11.2512.24% PM PM + INR 5 per thousand SA (3 Yr) of first 25000 and 0.

35% 0.35% 1.10% MM INSTITUTE OF MANAGEMENT MMU.35% 1% 0.5% Included in FMC 1.5% 1. MULLANA.Yr) FMC Guarantee Charges 1% 0.35% 0. AMBALA .25% 1.25% 0.







. MULLANA.Expected Time For Returns The above data is analyzed as follows: Following investment options appears to be the most sought after investment options: MM INSTITUTE OF MANAGEMENT MMU.TABLE 7 EXPECTED TIME FOR RETURNS PARTICULARS(YEARS) WITHIN 1 1–3 3–5 5 & ABOVE NUMBER OF RESPONDENTS 50 30 40 30 NUMBER OF RESPONDENTS 30 50 WITHIN 1 1–3 40 30 3–5 5 & ABOVE Fig. AMBALA .

30-40 –number of people from this age group investing in these plans is also very low. MUTUAL FUNDS – People in the age group 20-30 and 30-40 mainly go for this investment option because they appeared to be risk takers since safety appeared to be hardly influencing them at the time of taking investment decisions. Returns usually come up within 3-5 years so liquidity part of an investment is missing.Also less returns is another reason for less investment from this age group in these plans. 40-50 –large amount of people from this age group invest in these plans. Safety is there because of GMV(guaranteed maturity value). Actually it covers all investment attributes except liquidity. 3. 2. Main reasons being tax benefits and to take the advantage of lap.1. Also they expect higher returns from their investment.Safety and life cover are their main investment objectives of people from this age group. MM INSTITUTE OF MANAGEMENT MMU. AMBALA . Their main investment objective appeared to be higher expected returns ranging more than 30% although the returns are based on the growth of share market hence the safety part of an investment option is missing. UNIT LINKED INSURANCE POLICIES (ULIPs) – People from all groups invest in these plans because of high returns along with tax benefits.Time of returns is more than 3 years. As far as returns are concerned people who want returns less than 10% from their investments and that too after a certain amount of time invest in these plans. MULLANA. Returns also ranges more than 30%.In addition to tax benefits life cover and safety are other investment objectives considered while investing.TRADITIONAL INSURANCE PLANS – Age 20-30 –very few people from this age group invest in these plans. Main reason being it is a safe investment option and tax benefits. 50-60 –major chunk of people from this age group as well invest in these plans.


Normally an Insurance agent or a broker or a sales person earn between 2% to 80% of the first year MM INSTITUTE OF MANAGEMENT MMU. AMBALA . there is so many type of ulip plans in one company itself with varying features that it becomes really difficult to compare ulip plans. Also. MULLANA. I advice all my readers to have an eye on all these parameters based on the information provided on the company printed brochure only. There are plans of few companies where they project that the premium allocation charge is nil. as the chances of agents or sales people printing their own sales support promotional materials which normally talks only about the benefits but not the demerits of the product. Premium allocation charges are levied on an insurance product primarily to cover the cost involved in paying the commission to agents or sales people and the huge marketing expenses involved in acquiring every insurance policy. There are some Basic Parameters to Compare: 1.Chapter:. The plans are very complex. but the fact is they would be charging equal amount or more than that through policy administration charges or initial management charges or surrender charges.5 FIINDINGS & SUGGESTIONS The world of ulip insurance plans is very cruel. Also. comparison of various ulip products in itself is very tedious and complex job as various companies have come up with various features for various ulip plans. Therefore you should be more cautious about such products where sales people claim that the premium allocation charges are nil. This makes comparing ulip plans of different companies as comparing apples with guava. the agents are deceptive and sales men more than friendly advisers as touted by insurance companies and there are not many authoritative and impartial sites comparing various ulip products. Premium Allocation Charges: This is the very basic thing to be considered as the premium allocation charges in different plans vary from 2% to 100% of the first premium. Infect. The parameters needs to be considered while choosing a ULIP are explained below so that you should not be miss-leaded or cheated by any insurance agent or sales person.

MULLANA. The reason for any insurance company to take out so much of money from the hardearned investment of an innocent customer is ―Competition‖. But in few plans it goes up to 40-50% of the first year premium. up to 35% of the second and third premium and up to 10% of the premium paid thereafter. Yes the competition in Insurance industry is completely pushing away the ethical side of the insurance business and today almost 60-80% of the insurance business is been done in unethical way. Normally these charges are higher during the first few years and can come down to zero latter. AMBALA . MM INSTITUTE OF MANAGEMENT MMU. This charge is not covered under premium allocation charges or the fund management expenses. Normally this charge is levied at the beginning of each policy month from the policy fund by canceling units for equivalent amount. Policy administration charges in most of the products ranges from Rs 30/month to Rs 200/month.premium as his/her part of commission apart from the regular renewal commission he receives thereafter. Therefore. I advice all my readers to be very cautious while comparing the premium allocation charges levied on different products of different companies and As I mentioned earlier the premium allocation of ULIPs starts from as low as 2%. Even after 10 years of privatization of insurance industry there is very little effort been put forth to promote term insurance plans as the profit to a insurance company by selling term insurance plans is very less more than that selling a term insurance plan is certainly an uncertain commitment for the insurance companies. Indian Insurance market is completely driven by sales people as buying insurance still remain as a luxury than a very basic need for Indians. 2. This charge is been deducted normally on a monthly basis. Most of the time this charge is been deducted as a percentage of the fund value or a fixed amount or a percentage of the premium or a percentage of sum-assured. This could be flat throughout the term of the policy or vary at a pre-determined rate. Policy administration charges: Policy administration charges are those charges that the company takes out from the fund value available in customers account to meet various administrative expenses incurred while managing the policy during the whole tenure of the policy.

3. depend on different products. The surrender charges levied on a ULIP plan normally varies from 0% to 70% depends on the product and the tenure chosen by the customer. If the fund management charge in a particular fund is 2% pa then the average fund management charge per day would be 2/total number trading days in a year. Now. insurance companies normally makes money from the fund management charges if a customer stays with the fund for long time and from the surrender charges if he withdraw from the fund before the maturity date. In this case. This charge is usually expressed either as a percentage of the fund or as a percentage of the annualized premiums. But few insurance companies have designed such plans where the premium allocation and policy administration charges are very nominal as they take a bigger chunk of the fund value during the time of surrender.25% to 2. AMBALA . This is a charge levied at the time of computation of NAV. IRDA has made it compulsory for every ULIP plan to have 5 year minimum lock in and a customer can take out money from his ULIP account only after completion of the 5th policy year. Some companies do not charge anything after first three years but some companies charge till the end of 10th year or before till the date which is any time before the maturity. MM INSTITUTE OF MANAGEMENT MMU. The charge will be usually a flat amount per each switch and it is always nominal in almost all the companies. 4. MULLANA. Surrender Charges Surrender Charges are levied on the total fund value available at the time of surrender of insurance contract or at the time of partial withdrawal before the planned maturity date. Fund Management Charges (FMC) Fund Management Charge is levied as a percentage of the value of assets and shall be appropriated by adjusting the Net Asset Value. 5. and depend on different funds. which is usually done on daily basis.5% as it depends on different companies. Fund management charges vary from 0. Switching Charges These charges are levied when you shift your investment from one fund to another during the time of market crash or economic imbalance to protect your fund value. Normally fund management charges in ULIPs are comparatively lesser than the fund management charges levied by mutual funds.

6. MULLANA. The method of computation will be explicitly specified in the policy document. This will be levied either by cancellation of units or by debiting the premium but not both. MM INSTITUTE OF MANAGEMENT MMU. However you have IndianMoney. I am sure that all of you will be able to choose the best ULIP plan for yourself if you cautiously compare all the above mentioned parameters. without cost anytime to choose the best financial product.com to advice you. Mortality charges Mortality charge is the cost of life insurance cover. AMBALA . Mortality charge may be levied at the beginning of every policy month.

Money Simplified 2. Reliance Life & LIC. 3. AMBALA .appuonline.com www.bharti. K. Consumer Voice. D. Business standard C. MULLANA.mapsofindia. Times Of India 3. Insurance Fundamentals.com www.Mathew RBSA Publications. nivesh manthan.Misra S Chand Publications.axa. Insurance Principles & Practices -----M.com www. Singh Deep & Deep Publications of 2003 B.irda.com F.ril. NEWSPAPERS 1. BOOKS 1. MM INSTITUTE OF MANAGEMENT MMU.J.in www. ICICI Prudential.com www. Environment & Procedures -------B.BIBLIOGRAPHY A. Economic Times 2. Garg.C. 2.P. Policy Brochures of Tata AIG.com www.investopedia.reliancelife. M.gov.allbankingsolutions.M. 3.N.Bodla. Insurance -----. INTERNET www.com http://business.com www. MAGAZINES 1.S.

III.Job Profile : (please tick) I.Age: _______________________________________________________________ 3Address :______________________________________________________ _______________________________________________________________ 4. AMBALA .Telephone: _______________________________________________________________ Ques.Annual Income : (please tick) I. II. Less than RS 2 lac Rs 2 lac – Rs 5 lac Rs 5 lac –Rs 10 lac Rs 10 lac & above __________ __________ __________ __________ Ques. IV.Name: _______________________________________________________________ 2.Approximately what percentage (%) of your annual income do you save or invest? I. III. 0–5 __________ MM INSTITUTE OF MANAGEMENT MMU.7. Housewife Workingprofessional Self employed Private Service employed __________ __________ __________ __________ Ques.ANNEXURE QUESTIONNAIRE:1.5. MULLANA. IV.6. II.

II.Typically what kind of returns would you expect from your investment [in %]? (Please note: higher returns includes higher risk) I) LESS THAN 10 II) 10 – 20 __________ __________ MM INSTITUTE OF MANAGEMENT MMU. 5 – 10 10 -15 15 -20 __________ __________ __________ Ques.In which of the following investment options have u invested or intended to invest in the coming years? I. IV. III.10.II.8. VI.9-Which among the following attributes is most important to u while investing? I) Safety II) Liquidity III) Tax IV) Returns V) Transparency VI) Life cover __________ __________ __________ __________ __________ __________ Ques. MULLANA. IV. AMBALA . Traditional insurance plans Unit linked insurance policies(ULIPs) Fixed Deposits Gold Real estate Mutual fund State the reason for investing in the above investment option___________________________________________________ _________________________________________________________ _________________________________________________________ __________________________________ _________ _________ _________ _________ _________ _________ Ques. V. III.

MULLANA.11.III) 20 – 30 IV) 30 AND above __________ __________ Ques.Which policies the client opts for? I) .Are ULIP schemes popular? I) yes II) no III) can‘t say _________ _________ _________ _________ _________ _________ _________ _________ _________ MM INSTITUTE OF MANAGEMENT MMU. Traditional II) ULIPS Q13). AMBALA .After how much time would you expect the returns from your investment? I) within 1 year II) 1 – 3 years III) 3 – 5 years IV) 5 years & above Q12.