SUMMER TRAINING PROJECT

COMPARITIVE ANALYSIS OF ULIP PLANS WITH REFERNCE TO IDBI FORTIS AND

HDFC STANDARD LIFE INSURANCE COMPANY

Undertaken at

“ IDBI FORTIS LIFE INSURANSE COMPANY ”

Submitted in the partial fulfillment for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION

Under the Supervision Submitted and

Guidance of
by

MR. ASIM SAHORE BBA 5th Semester

0442131707

SAHIL KOCHHAR

SESSION: 2009 – 2010

TECNIA INSTITUTE OF ADVANCED STUDIES
(Approved by AICTE, Ministry of HRD, Govt. of India)

Affiliated To Guru Gobind Singh Indraprastha University, Delhi

INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085

E-Mail:director@tecniaindia.org, Website: www.tecniaindia.org

 Fax No: 27555120, Tel: 27555121-24

SUMMER TRAINING PROJECT

COMPARITIVE ANALYSIS OF ULIP PLANS WITH REFERENCE TO (IDBI FORTIS

AND HDFC STANDARD LIFE INSURANCE)

Undertaken at

IDBI FORTIS LIE INSRUANCE LTD.

Submitted in the partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Under the Supervision Submitted by and Guidance of BBA 5th Semester

…………………………… …………………

SESSION: 2009 - 2010

TECNIA INSTITUTE OF ADVANCED STUDIES
(Approved by AICTE, Ministry of HRD, Govt. of India)
Affiliated To Guru Gobind Singh Indraprastha University, Delhi
INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085
E-Mail:director@tecniaindia.org, Website: www.tecniaindia.org
Fax No: 27555120, Tel: 27555121-24

DECLARATION

I SAHIL KOCHHAR Enrolment No 0442131707 Class BBA 5th SEMSTER (evening) of the
Tecnia Institute of Advanced Studies, Delhi hereby declare that the Summer Training Report
entitled _________________________________________________________
___________________________________________________________________ is an original
work and the same has not been submitted to any other Institute for the award of any other
degree. A seminar presentation of the Summer Training Report was made on
_______________________ and the suggestions as approved by the faculty were duly
incorporated.

Countersigned
Signature of faculty Guide
 PREFACE

Risk and uncertainties are part of life’s great adventure; Accidents, Illness, Theft &
Natural Calamities they all are pillars of this world. To overcome these risks and mishaps this
project describes the policies and schemes of IDBI FORTIS and HDFC STANDRAD Life
Insurance Companies. The way these companies provide different benefits to the policyholder.
Insurance is Cooperative venture where risk and uncertainties are shared by many. Now days a
lot is being done to create awareness among the Insuring Public about the Importance of
Insurance in life. In this direction IRDA has planned to create awareness through Electronic and
Print media.

A study of Life Insurance describes the meaning of various policies, comparison and analysis
and changing market scenario.
 Acknowledgement

“If words are considered as symbol of Approval and Taken of

appreciation then let the words play the heralding role of expressing my
sincere gratitude and thanks”.

Any accomplishment requires the effort of many people and this work is no different. I
am indebted to MR. SATISH AND MR. RAJESH (Sales Manager,
IDBI FORTIS Life Insurance, DELHI) and collage guide MR. ASIM SAHORE but for whose
guidance and patience I would have not been able to accomplish this task.

I also have a great thanks to him for providing me an opportunity to go through summer
training, and providing me this golden opportunity to be a part of the said esteemed company and
letting me work on this project.

I also owe a great thanks to all the staff members of NETAJI SUBHASH PLACE of
IDBI FORTIS Life Insurance, who helped me in the best possible way to complete this summer
training and this report.

SAHIL KOCHHAR
 TABLE OF CONTENTS
CHAPTER 1 PAGE NO.

 EXECUTIVE SUMMARY 6

 INTRODUCTION TO THE COMPANY 8-19

 SWOT ANALYSIS OF THE COMPANY 20-21

 INTRODUCTION TO THE INDUSTRY 22-28

 OPERATIONALIZATION OF THE CONCEPT 29-32

 OBJECTIVES 33

 SCOPE AND SIGNIFICANCE OF STUDY 34

CHAPTER 2

 REVIEW OF LITRATURE 35-47

CHAPTER 3

 CURRENT SCENARIO AND FUTURE 48-50

CHAPTER 4

 RESEARCH METHODOLOGY 51-54

 LIMITATIONS OF THE STUDY 55

 COMPARISON OF ULIP PLANS 56-60

 DATA ANALYSIS AND INTERPRETATION 61-72

CHAPTER 5

 FINDIGS OF THE STUDY 73

 CONCLUSION 74
  RECOMMENDATIONS 75

 BIBLIOGRAPHY 76

 QUESTIONNAIRE 77-80

EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum growth
and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-
80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts
me to enter in this sector and IDBI FORTIS COMPANY has given me the opportunity to work
and get experience in highly competitive and enhancing sector.

Companies now are tapping a lot of ways to capture the market and hence adopting different
ways to hold the large portion of the market.

My summer training learning helped me a lot to complete my project in order to learn a lot of
things of the corporate. As a project trainee the first task given to me was to understand the basic
behaviour of the consumer in order to manipulate the market according to our target competition.
For this I developed a questionnaire and I did my survey in DELHI city.

This job training also helped me a lot in understanding the real motive behind the customer
preference towards the life insurance policy I found that LIC company having 55% market share
is the number 1 insurance company in India. Band name of LIC plays a very important role in
the mind of customers towards the sale of the product.

The success story of good market share of different market organizations depends upon the
availability of the product and services near to the customer, which can be distributed through a
distribution channel. In Insurance sector, distribution channel includes only agents/advisors or
agency holders of the company.
IDBI Fortis Life Insurance Co Ltd, is a joint venture between three leading financial
conglomerates – India’s premier development and commercial bank, IDBI, India’s leading
private sector bank, Federal Bank and Europe’s premier Bancassurer, Fortis, each of which
enjoys a significant status in their respective business segments. In this venture, IDBI owns 48%
equity while Federal Bank and Fortis own 26% equity each. IDBI Fortis launched its first set of
products across India in March 2008, after receiving the requisite approvals from the Insurance
Regulatory Development Authority (IRDA). Today, we offer our services through a vast
nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable
network of advisors and partners. At IDBI Fortis we endeavor to deliver products that provide
value and convenience to the customer. Through a continuous process of innovation in product
and service delivery we intend to deliver world-class wealth management, protection and
retirement solutions to Indian customers.

IDBI Fortis Life Insurance Co. Ltd is a joint venture of IDBI Bank, Federal Bank (India) and
Fortis Insurance International. The Certificate of Registration has been issued by the Insurance
regulator IRDA.

Insurance Company on 19th December 2007. According to the agreement, IDBI will have a 48-
per cent stake in the venture, while Fortis and Federal Bank would have 26-per cent stake each.
While IDBI and Federal Bank are major Indian banks, Fortis has the expertise of bancasurance
across global markets. It is one of the best names in the insurance business in Europe and has
successful joint ventures in various Asian countries. IDBI Fortis Life Insurance has become 18th
life insurer in India.

Founded in 1956, IDBI Ltd. is India’s premier industrial development bank. Today, it is amongst
India’s most famous commercial banks which provide a wide range of innovative products and
services. IDBI Bank has around 490 branches and more than 600 ATMs all over India. IDBI is a
also a part of development activities, as it has been instrumental in sponsoring the development
of key institutions involved in India’s financial sector, such as, the Securities and Exchange
Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National Securities
Depository Ltd (NSDL).
About their Heritage

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development
bank. Created in 1956 to support India’s industrial backbone, IDBI Bank has since evolved into a
powerhouse of industrial and retail finance. Today, it is amongst India’s foremost commercial
banks, with a wide range of innovative products and services, serving retail and corporate
customers in all corners of the country from over 538 branches and more than 921 ATMs. The
Bank offers its customers an extensive range of diversified services including project financing,
term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate
advisory services and legal and technical advisory services to its corporate clients as well as
mortgages and personal loans to its retail clients. As part of its development activities, IDBI
Bank has been instrumental in sponsoring the development of key institutions involved in India’s
financial sector – such as the Securities and Exchange Board of India (SEBI), National Stock
Exchange of India Limited (NSE) and National Securities Depository Ltd.

Federal Bank is one of India’s leading private sector banks, with a dominant presence in the
state of Kerala. It has a strong network of over 600 branches and 600 ATMs spread across India.
The bank provides over four million retail customers with a wide variety of financial products.
Federal Bank is one of the first large Indian banks to have an entirely automated and
interconnected branch network. The Bank operates on the core banking platform and is RTGS/
NEFT enabled through which it offers state-of-the-art technology enabled products and services.
In addition to interconnected branches and ATMs, the Bank has a wide range of services like
Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online bill
payment and call centre facilities to offer round the clock banking convenience to its customers.
The Bank has been a pioneer in providing innovative technological solutions to its customers and
the Bank has won several awards and recommendations.

Federal Bank is one of India’s leading private sector banks. It has a wide spread network in
India, but its dominant presence can be seen in the state of Kerala. Federal Bank is one of the
first large Indian banks, having an entirely automated and interconnected branch network. The
Bank also provide a wide range of services, such as, internet banking, mobile banking, tele
banking, any where banking, debit cards, co-branded credit cards, online bill payment and call
centre facilities to offer complete banking convenience to its customers.

Fortis is an international insurance group composed of Insurance Belgium, a leader in life and
non-life insurance in Belgium distributing its insurance products through the network of Fortis
Bank and independent insurance brokers and Insurance International with subsidiaries in the
UK, France, Hong Kong, Luxembourg (Non-life), Germany, Turkey, Russia and Ukraine, and
joint ventures in Luxembourg (Life), Portugal, China, Malaysia, Thailand and India.
 - PRODUCTS PROFILE.

1) WealthsuranceTM: Insured Wealth Plans to grow wealth under a protective cover.

Wealthsurance offers you Insured Wealth Plans. They allow you to create, build and manage
wealth by giving several choices and great flexibility so that your plan meets your specific needs.
You can decide how you wish to save so that it suits your savings habit. You can choose how
your money is invested so that you can grow wealth as per your investment preferences. What is
even better, Wealthsurance protects your wealth plans with insurance benefits so that your
wealth-building efforts remain unaffected in unforeseen events and your financial goals can still
be achieved.

What is Wealthsurance ?

Wealthsurance combines wealth creation and insurance protection into one powerful financial
solution. Unlike other investment alternatives, it allows you to ensure that your goals of wealth
creation are achieved even in the event of serious illness,

accidents, disablement or death.

Wealthsurance is for those who will live-

Life insurance is sometimes thought of as for those who might die, but Wealthsurance is for
those who will live. Usually life insurance products provide benefits upon death, but
Wealthsurance is designed to also give Living Benefits to ensure your well-being in your own
lifetime.

2) HomesuranceTM Protection Plan?

Homesurance Protection Plan* is a mortgage reducing term assurance plan, which provides
insurance cover equal to the outstanding balance of your home loan. In the unfortunate event of
death of the home loan borrower, the insurance cover enables

repayment of the home loan liability so that it does not become a burden to the family.

3) IDBI Fortis HomesuranceTM Plan?

Homesurance is a mortgage reducing term plan which offers protection to your home from your
home loan. The Plan provides a cover equal to the outstanding balance#1 of your home loan
against any unfortunate events that may occur to you.

4) IDBI Fortis bondsurance TM Plan?

BondsuranceTM: Get guaranteed return on your investment, life insurance cover and tax benefits .
Bondsurance is a single premium plan where you need to make a one-time investment. You can
choose a maturity period of 5 or 10 years. At the end of the chosen period, you will receive a
guaranteed maturity amount. In case of death before the maturity date, a Death Benefit which is
also guaranteed will be paid. Thus you can get life insurance cover while earning an assured
return on your investment. The premium you pay is eligible for deduction of tax under Sec 80C
of the Income Tax Act. Also, the Maturity Benefit and the Death Benefit are tax-free under Sec
10(10D) of the Income Tax Act.

5) IDBI Fortis Termsurance Grameen Suraksha

IDBI Fortis Termsurance Grameen Suraksha is a low-cost, simple term individual insurance plan
targeted at the rural population. It is an ideal plan to protect your family members in the event of
unfortunate demise of the major income earner.

The key features of Termsurance Grameen Suraksha:

Premium: You can choose a fixed single premium of Rs 49.08, Rs 98.17, Rs 147.25 or Rs
196.33 according to your budget.

Eligibility: This plan is available for men and women from age 18 up to age 50.

Term: This plan has a fixed term of three years.

Death Benefit: In the event of unfortunate death of the insured person during the policy term, we
will pay a death benefit of Rs 5,000, Rs 10,000, Rs 15,000 or

Rs 20,000 depending on the single premium paid.

Suicide Exclusion: We will not pay any death benefit if the insured person commits suicide
within 12 months from the commencement date of the policy.

Maturity Benefit: This is a pure term insurance plan and this plan has no maturity benefit.

Surrender Benefit: This plan has no surrender benefit.

Loan: This plan has no loan facility.

nomination At any time before the expiry of the policy, you may nominate a person to whom we
will pay the death benefit. If the nominee is a minor, you need to appoint a person to hold the
benefit until the nominee’s 18th birthday.

Free Look Period: You are entitled to a free look period for 15 days from the day you receive
this policy. If before the end of this time you do not wish to continue this policy, then you may
request us in writing to cancel the policy. We will refund the

premium paid by you after deducting a proportionate risk premium for the insurance cover we
provided to you during that time. We will also deduct any medical examination costs and stamp
duty charges incurred by us in respect of your policy.

Tax Benefits: Premiums paid are eligible for tax benefits under Section 80C and death benefit is
tax-free under Section 10(10D) of the Income Tax Act, 1956.

6) IDBI Fortis Termsurance Grameen Suraksha

Vacation to a tropical island, pursuing your hobby or flying abroad to be with your family and
friends. Whatever may be your idea of having a good time, the one thing common to all, is that it
requires money.
The earlier generations may not have had a formal retirement plan, but they had relatively fewer
consumption needs. It was rare to find people who had shifted through several jobs in the course
of an active career. As a result, pensions and gratuities issued by their employers were deemed
sufficient. Times have changed now, and in most contemporary industries, few employers
provide for a lifelong pension.
This is coupled with the high incidence of lifestyle diseases like diabetes, blood pressure and
heart problems. The improved medical technology has increased longevity, but along with it the
cost of healthcare has increased manifold. Thus managing finances during retirement would be
extremely tough, if one hasn’t planned for retirement. The best way to enjoy the good times in
your golden years would be, to build your finances in advance for retirement.
IDBI Fortis RetiresuranceTM Pension Plan is an effective instrument that will help you achieve
this objective. It not only allows you to conveniently save for the golden years but also offers
you a wide choice of investment options to grow and multiply your wealth. The Plan is
extremely flexible and offers several choices so as to suit your savings habit and investment .
7) IDBI Fortis IncomesuranceTM

Immediate Annuity ne of the best financial decisions that you can take today is to
plan for adequate income after retirement. The three key concerns during your golden years will
be increasing healthcare cost, higher life expectancy and rising prices.
All you need is a steady flow of income which can take care of
all your concerns. Presenting the IDBI Fortis IncomesuranceTMImmediate Annuity which gives
you guaranteed incomethroughout your life.

Key features of IDBI Fortis IncomesuranceTM

Immediate Annuity

• Three annuity options to choose from

• Regular income commences as early as age 20 years
• Choose your annuity payment modes – monthly, quarterly, half-yearly, or yearly
• Your annuity payments are credited directly to your bank account.

IDBI Fortis InsuranceBasket is designed to offer

• Protection for wealth plans so that your wealth-building efforts are unaffected by unforeseen
events .

• Protection of loan liabilities so that debt does not become a burden when life throws surprises.
• A whole package of Living Benefits so that you are well cared for in the event of health crises,
accidents or disablement.

- FUTURE PLANS.

IDBI Fortis announces Rs 250cr capital infusion

• Continues its aggressive growth as one of India’s fastest growing life insurance companies
• Network expansion to target 100 branches.

Giving a boost to its business expansion plans, IDBI Fortis Life Insurance has announced a
capital infusion of Rs 250 cr from its shareholders as per their share holding pattern. IDBI Fortis
launched its operations in March 2008 with an initial capital of Rs 200 cr leading with their
innovative product, WealthsuranceTM, which has been its flagship product helping it race to
over Rs. 2000 Cr of Sum Assured with over Rs 250 Cr of First Year Annual Premiums and over
62,000 policies issued in record time. The company is targeting a network expansion drive to set
up 100 branches across the country. In addition, IDBI Fortis also sells its products through the
more than 1100 branches of its shareholder banks, IDBI and Federal Bank. IDBI Fortis Life
Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial
bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance
International, a multinational insurance giant based out of Europe. IDBI Bank owns 48% equity
while Federal Bank and Fortis own 26% equity each. Visit www.idbifortis.com to know more.

ensuring that the customer would find all his investment requirements satisfied with this one
powerful product. The powerful insurance benefits of WealthsuranceTM ensure that a
customer’s wealth plan is not affected by unforeseen events that may strike them.
With the recent popularity for guaranteed return products, the company launched a unique
product, BondsuranceTM that offers tax-free assured returns with life cover. With the innovative
HomesuranceTM Protection Plan, customers can now cover the changing liability that comes
with a typical floating rate home loan, along with an optional cover where they can pay off the
home loan even in the unfortunate event of any major disease or other unforeseen circumstances.
“The branch expansion drive is going on in full swing and we already have over 30 branches up
and running in various states,” said Mr G.V. Nageswara Rao, MD and CEO, IDBI Fortis Life
Insurance. “IDBI Fortis is committed to providing comprehensive investment and insurance
solutions through innovative products, well-trained sales force and high standards of service.”
The fresh capital infusion will also help IDBI Fortis in meeting the solvency requirements and
expanding operations due to increased sales besides launching new products and branches.

IDBI Fortis Life Insurance Intends To Open 100 Branches Across Country.

IDBI Fortis Life Insurance has informed that the company will shortly open 24 branches,
including six in Tamil Nadu, to expand its footprints in the southern region.

The company, a joint venture of IDBI, Federal Bank and Fortis, Europe's banking and insurance
firm, has launched its operations in March, this fiscal.
 SWOT ANALYSIS OF IDBI

STRENGTH

• Superior customer service vs. competitors.

• Products have required accreditations.

• High degree of customer satisfaction.

• Good place to work

• Lower response time with efficient and effective service.

• Dedicated workforce aiming at making a long-term career in the field.

• Large pool of technically skilled manpower with in depth knowledge and under
standing of the market

WEAKNESSES

• Some gaps in range for certain sectors.

• Customer service staff need training.

• Processes and systems, etc

• Management cover insufficient.

• Sectoral growth is constrained by low unemployment levels and competition for

staff.
• Low customer confidence on the private players.
 Opportunities

• Insurable population : According to IRDA only 10% of the population is insured which
represent around 30% of the insurable population. This suggests more than 300m people,
with the potential to buy insurance, remain uninsured.

• International companies will help in building world class expertise in local market by
introducing the best global practice.

• Could extend to overseas broadly.

• New specialist applications.

• Could seek better customer deals.

• Fast-track career development opportunities on an industry-wide basis.

• An applied research centre to create opportunities for developing techniques to provide

added-value services.

Threats
• Big public sector insurance companies like Lif e Insurance Corporation (L IC) of India,
National Insurance Company Limited, Oriental Insurance Limited, New India Assurance
Company Limited and United India Insurance Company Limited. People trust and go to
them more.

• Legislation could impact and Great risk involved.

• Very high competition prevailing in the industry.

• Vulnerable to reactive attack by major competitors

• Lack of infrastructure in rural areas could constrain investment

 INDUSTRY PROFILE- INSURANCE

INTRODUCTION
Insurance may be described as a social device to reduce or eliminate risk of loss to life and property.
Under the plan of insurance, a large number of people associate themselves by sharing risks attached to
individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents
and burglary. Any risk contingent upon these may be insured against at a premium commensurate with
the risk involved. Thus collective bearing of risk is insurance.

Types Of Insurance

Insurance industry in India is broadly classified as-

 Life Insurance:- policies protect individuals against the risk of life. Life 100 Insurance
policies not only protects the insured’s family against his death but also provides a good means to avail
tax benefit, avail loans from banks and acts, as a good saving tool to meet future needs.

 General Insurance:- on the other hand protects the property and casualty by
covering losses from disasters and accidents thereby protecting from property damage and liability,
providing the means for victims to resume their lives and businesses and contribute to the economy.
 The various types of insurance available are –

1. Auto Insurance
 Two Wheeler Insurance
 Car Insurance
 Commercial Vehicle Insurance

2. Commercial Insurance
 Agriculture Insurance
 Fire Insurance
 Industrial Insurance
 Marine Insurance
 Shop Insurance

3. Home Insurance
4. Life Insurance
 Accident Insurance

a. NRI Accident Insurance

b. Personal Accident Insurance
 Health Care Insurance
c. Medical Insurance
 d. Critical Illness Insurance

 Travel Insurance .

HISTORY OF INDIAN INSURANCE

The business of life insurance in India in its existing form started in India in the year 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in
the life insurance business in India are:

 1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

 1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

 1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.

 1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs.5crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance
Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the
British. Some of the important milestones in the general insurance business in India are:-

 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.

 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.

 1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.

 1972: The General Insurance Business (Nationalization) Act nationalized the general insurance
business in India with effect from 1st January 1973. 107 amalgamated and grouped into four
companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a
company.
 Insurance companies

Some of the life insurance companies and general insurance companies including their web address is
given below:-

Life Insurers Websites

Public Sector
Life Insurance Corporation of India www.licindia.com

Private Sector
Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in

Birla Sun-Life Insurance Company Limited www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com

ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com

ING Vysya Life Insurance Company Limited www.ingvysayalife.com

Max New York Life Insurance Co. Limited www.maxnewyorklife.com

MetLife Insurance Company Limited www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com

SBI Life Insurance Company Limited www.sbilife.co.in

TATA AIG Life Insurance Company Limited www.tata-aig.com

General Insurers Websites

Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in

Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation www.ecgcindia.com

Reinsurers Websites

General Insurance Corporation of India www.gicindia.com

MARKET SHARE OF LIFE INSURANCE COMPANIES
 Operationalization of the concept

Unit Linked Insurance Plans

In Unit Linked Plans, the investments made are subject to risks associated with the capital
markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you
should make your investment choice after considering your risk appetite and needs.

Another factor that you need to consider is your future need for funds. IDBI Standard Life offers
you a variety of unit-linked insurance products to suit your goals – be it for your retirement
planning, for your health, for your child’s education and marriage or for investment purposes.

Which Investor Class Are They Most Suited For?

• Those who wish to closely track their investments: Unit linked plans allow policy
takers to closely monitor their portfolios. They also offer the flexibility to switch your
capital between funds with varying risk-return profiles.
• Individuals with a medium to long term investment horizon: Unit linked plans are
ideal for individuals who are ready to stay invested for relatively long periods of time.
• Those with varying risk profiles: Across the seven funds offered, the equity component
varies from zero to a maximum of 100 per cent. Thus there is a choice of funds available
to all types of investors - from risk-averse investor to those investors who have strong
risk appetite.
• Investors across all life stages: This plan category offers a variety of plans which can be
opted for depending upon the life stage you are in and your needs and financial liabilities
at that point in time.
 • How Is It Structured?

In a Unit Linked Plan, the premiums you pay are invested in the funds chosen by you after
deducting allocation charges and charges including those for managing funds, policy
administration and for providing insurance cover are deducted from the funds by cancelling
certain units. The value of each unit of a fund is determined by dividing the total value of the
fund’s investments by the total number of units.

Advantages Of A Unit Linked Plan?

• Market linked returns: Unit linked plans give you an opportunity to earn market-linked
returns as part of the premiums are invested in market linked funds which invest in
different market instruments including debt instruments and equity in varying
proportions.
• Life protection, Investment and Savings: Unit linked plans offer the twin benefits of
life insurance and savings at market-linked returns. Thus, you have the opportunity to
invest your money to earn higher returns, while taking care of your protection needs.
Investing in unit linked plans helps to inculcate a regular habit of saving and investing,
which is important for building wealth over the long term.
• Flexibility: Unit Linked Plans offer you a wide range of flexible options such as
o The option to switch between investment funds to match your changing needs.
o The facility to partially withdraw from your fund, subject to charges and
conditions.
o Single premium additions to enable the policy holder to invest additional sums of
money (over and above the regular premium) as and when desired, subject to
conditions.
Servicing A Unit Linked Plan

• Single Premium: The policy holder is required to pay the entire premium amount as a
lump sum at the beginning of the policy term.
• Regular Premium Payment (annually, semi-annually or monthly): The policy holder
has to pay the pre-determined premium amount periodically i.e. annually, semi annually
or monthly, depending upon the premium payment term opted for.

Charges - The following charges are deducted from your policy towards the cost of benefits
and administration services provided by IDBI-

• Administration charges: A fee is charged for administration of your policy every

month. Administration charges are deducted by cancelling units proportionately from
each of the funds you have chosen.

• Fund management charges: These charges are towards meeting expenses related to
managing the fund. This is charged as a percentage of the fund’s value and is deducted
before arriving at the net asset value of the fund.

• Switch charges: You can switch between the funds available to suit your changing needs
and goals. In a policy year, a fixed number of such switches are available free of cost.
Subsequent to this, each switch would attract a certain charge. These charges are
deducted by cancelling units proportionately from each of the funds you have chosen.
 • Surrender charges: These charges are levied for premature encashment of units. They
are charged as a percentage of the fund value and depend on the policy year in which the
policy has been surrendered.

• Mortality Charges: Depending upon the age, and the amount of cover, these charges are
levied towards providing a death cover to the insured.

• Premium Allocation Charge: This charge is deducted as a fixed percentage of the

premium received, and is usually charged at a higher rate in the initial years of a policy.
This charge varies depending upon whether the policy is a single premium or regular
premium policy, the size of the premium, premium frequency and payment mode.
• Partial Withdrawal Charges: Lump sum withdrawals are allowed from the fund after
the lapse of three years of the policy term and subject to pre-specified conditions.
However, such withdrawals attract charges, as mentioned in the respective policy
brochures.

Making Withdrawals

You may also make partial withdrawals from your funds after a certain specified period, subject
to a partial withdrawal charge. The withdrawal amount should be at least the minimum
prescribed withdrawal amount and the fund must not fall below the minimum fund value after
the withdrawal.

You can make a full withdrawal of your policy before its maturity date. However, surrender
charges will be applicable in this case.
 Objective of the study

 To study the awareness among the people about insurance companies.

 To analyze HDFC STANDARD LIFE INSURANCE and their ULIP plan.

 To analyze the services being provided in the WEALTHSURANCE

scheme to the customers in IDBI fortis.

 To analyze how WEALTHSURANCE will add extra benefit to the

customers by opting it.

 To compare the ULIP plan of IDBI FORTIS AND HDFC STANDARD

LIFE INSURANCE on the basis of return, charges , lock in period,

surrender allowed, fund options.

 To find out the customer preference and opinions about the ULIP plans.

SCOPE AND SIGNIFICANCE OF STUDY

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new
players have entered the market and are vying to gain market share in this rapidly improving
market. The study deals with studing the consumer behaviour with the focus on market
segementation. The study then goes on to evaluate and analyse the findings so as to present a
clear picture of trends in the Insurance sector and preferences of the people towards an insurance
policy.

SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the responses of 100 people. This data can
be explorated to take in the trends across the industry. The significance for the industry lies in
studying these trends that emerge from the study. It is a rapidly changing and evolving sector.
People are only beginning to wake up to it’s vast possibilities. A study like this can attempt to
guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER :

To facilitate and provide all the useful information of the study, the company, the insurance
industry and also provide marketing ways, methods of IDBI fortis Life insurance.
 REVIEW

OF

LITRATURE
WealthsuranceTM: Insured Wealth Plans to grow wealth under a protective
cover.
Wealthsurance offers you Insured Wealth Plans. They allow you to create, build and manage
wealth by giving several choices and great flexibility so that your plan meets your specific needs.
You can decide how you wish to save so that it suits your savings habit. You can choose how
your money is invested so that you can grow wealth as per your investment preferences. What is
even better, Wealthsurance protects your wealth plans with insurance benefits so that your
wealth-building efforts remain unaffected in unforeseen events and your financial goals can still
be achieved.

What is Wealthsurance ?

Wealthsurance combines wealth creation and insuranceprotection into one powerful financial
solution. Unlike other investment alternatives, it allows you to ensure that your goals of wealth
creation are achieved even in the event of serious illness,accidents, disablement or death.

Wealthsurance is for those who will live-

Life insurance is sometimes thought of as for those who might die, but Wealthsurance is for
those who will live. Usually life insurance products provide benefits upon death, but
Wealthsurance is designed to also give Living Benefits to ensure your well-being in your own
lifetime.

IDBI Fortis Wealthsurance Foundation Plan

-Contribute money in a flexible way that suits your savings habit

a) Single Premium or (b) Regular Premiums. Pay premiums for a limited period and enjoy
benefits for a longer period.
Pay additional top-up premiums whenever you want. Grow wealth faster and get tax benefits.

-Choose how your money is invested from a wide choice of investment options,
based on your return expectations and risk tolerance.
Choice of (a) Assured Fixed Returns (b) Variable Returns linked to market performance,
(c) Returns linked to market but with protection of capital. Investment options available for risk-
averse as well as risk taking investors Choice of stocks, bonds and money market funds.

-Decide how you wish to manage your investments

Switch amongst investment options any time and manage your portfolio, free of charges and
taxes Leave management of your portfolio entirely to us, if you do not have the time or
inclination.
-Flexibility to choose the insurance benefits you need.
You can choose the amount of life insurance and terminal illness benefit you need Get Optional
Insurance Benefits on suffering major diseases, hospitalization, accidental death or disablement
Premiums can be waived in case of your death or disablement, so that your plans are well
protected.
-Withdraw funds in case of need, after three years
-Make your WealthsuranceTM Plan quickly and easily

Choose a Ready Plan for typical needs. Develop a Custom Plan for special needs.

-Get tax benefits on contributions and benefits

Types of Investment Options

1)Monthly Interest Account Risk: Low
Monthly Interest Account gives you fixed interest on the account balance. You can choose to
deposit any proportion or all of your premiums into it, whether regular or Top-up Premiums.
Your Account will earn interest at the declared rate on the daily outstanding balance. The
balance in your Account, consisting of premiums deposited and interest earned, is available to
switch into any other investment option and for withdrawals as permitted.

Interest Rate: At the beginning of each month, IDBI Fortis will declare a credit rate by way of
interest for this Account. The interest rate will be declared out of the estimated income from the
underlying segregated portfolio of investments after (a) appropriation of fund management
charge of 1%, and (b) transfers to/from a smoothing reserve.
Investment Pattern: The Monthly Interest Account is a segregated fund which will invest
100% of the money in fixed income investments including government securities, treasury bills,
bank deposits, certificates of deposit, corporate securities, commercial paper, securitised papers,
structured products, money market instruments, etc. The fund may use derivatives to meet its
objective to the extent permitted by the applicable guidelines.

2)Guaranteed Return Funds Risk: Low

Monthly Interest Account gives you fixed interest on the account balance. You can choose to
deposit any proportion or all of your premiums into it, whether regular or Top-up Premiums.
Your Account will earn interest at the declared rate on the daily outstanding balance. The
balance in your Account, consisting of premiums deposited and interest earned, is available to
switch into any other investment option and for withdrawals as permitted.

Interest Rate: At the beginning of each month, IDBI Fortis will declare a credit rate by way of
interest for this Account. The interest rate will be declared out of the estimated income from the
underlying segregated portfolio of investments after (a) appropriation of fund management
charge of 1%, and (b) transfers to/from a smoothing reserve. Your account balance will grow
each day at the declared interest rate. Rates declared for the Account are available at
www.idbifortis.com The purpose of Monthly Interest Account is to provide a smoothed return to
the investors from out of the investment income of the underlying portfolio. For this purpose, a
reserve for smoothing of interest rate will be maintained.

Investment Pattern: The Monthly Interest Account is a segregated fund which will invest 100%
of the money in fixed income investments including government securities, treasury bills, bank
deposits, certificates of deposit, corporate securities, commercial paper, securitised papers,
structured products, money market instruments, etc. The fund may use derivatives to meet its
objective to the extent permitted by the applicable guidelines

3)Capital Guaranteed Funds

Risk: Medium
Capital Guaranteed Funds guarantee the return of at least the face value of each unit on the
specified maturity date. Returns are, however, not guaranteed and depend upon the performance
of the equity portfolio of the fund and the stock market.

Available Funds: Capital Guaranteed Funds are segregated closed-ended funds with specified
maturity date. Each fund is available for investment for a limited period after the opening date
during which units are allotted at the Net Asset Value. Upon maturity, you receive the Net Asset
Value as on the maturity date or the face value of each unit you hold, whichever is higher.

Investment Strategy: Capital Guaranteed Funds are managed using capital protection techniques
including portfolio insurance strategies and manage the exposure to equity and debt with a view
to obtaining equity exposure consistent with capital protection and the guaranteed maturity
value. The funds will implement ‘ratcheting’ strategy as decided by IDBI Fortis. ‘Ratcheting’
may reduce futureexposure to equity. Capital Guaranteed Funds may also use derivatives to meet
their objectives to the extent permitted by
applicable guidelines.
Investment Pattern: Capital Guaranteed Funds will manage exposure to fixed income
investments and equities as stated below:
Range of Debt exposure: 40%-100% , Range of Equity exposure: 0-60%

Liquidity: Capital Guaranteed Funds mature on the specified date. However, if you wish you can
also redeem them before maturity at the Net Asset Value, but the guarantee will not apply.

Fund Management Charge: The funds carry a fund management charge of 2.25% p.a. which is
applied before computing the Net Asset Value.

4) Market Fund Options: For investing in stocks, bonds or money market

A)Equity Growth Fund Risk: High
B)Nifty Index Fund Risk: High
C)Bond Fund Risk: Medium
D)Income Fund Risk: Low
E)Liquid Fund Risk: Low

Tax Benefits of WealthsuranceTM Plan

Wealthsurance Plan gives you attractive tax benefits. Contributions by way of premiums are
eligible for deduction under Sec 80C. Insurance charges for health benefits are eligible for
deduction under Sec 80D. Benefits are tax-free under Sec 10(10D), allowing you to earn tax-free
income and benefits.

Tax Deduction on Contributions

The premiums you contribute in your Wealthsurance Plan are eligible for tax deduction under
Sec 80C up to a limit of Rs 1 lakh per year. In effect, you do not pay tax on that portion of your
income which you save in Wealthsurance Plan. If you choose Major Diseases Benefit or Hospital
Cash Benefit, the charges payable for them are eligible for deduction under Sec 80D.
Tax-Free Benefits
Under Sec 10(10D), all the Benefits you receive under Wealthsurance Plan are tax-free without
any limit. Thus the benefits are fully available to meet the needs of financial security of your
loved ones or to take care of your expenses as in the case of medical crises
Change your Plan if your needs change- Wealthsurance is designed to meet your changing
savings, investment and insurance needs. You can make changes to ur Plan if your needs
change. Wealthsurance is thus a flexible plan which can meet your needs, without the need to
have new plans.
 - INTRODUCTION

HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Limited), India's leading
housing finance institution and a Group Company of the Standard Life Plc, UK. As on February
28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds
26.00% of equity in the joint venture, while the rest is held by Others.

Their Key Strengths

Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard Life has the financial
expertise required to manage your long-term investments safely and efficiently.

Range of Solutions

We have a range of individual and group solutions, which can be easily customised to specific
needs. Our group solutions have been designed to offer you complete flexibility combined with a
low charging structure.

Track Record So Far

Our gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 crores.
The company has covered over 8,33,070 lives as on March 31, 2009.
TYPES OF ULIP PLANS OF HDFC-

1)PROTECTION PLANS

2)CHILDREN’S PLANS

3)RETIREMENT PLANS

4)HEALTH PLANS

5)SAVING AND INVESTMENT PLANS

Why do I need Investment Plans?

You have always given your family the very best. And there is no reason why they shouldn’t get
the very best in the future too. As a judicious family man, your priority is to secure the well-
being of those who depend on you. Not just for today, but also in the long term. More
importantly, you have to ensure that your family’s future expenses are taken care, even if
something unfortunate were to happen to you.

A big factor that you need to consider while building your wealth is inflation. It has a dual
impact on your hard-earned savings. Inflation not only erodes your current purchasing power but
also magnifies your monetary requirements for the future. Sample this: An 35 Year individual
needs to invest Rs. 36,000/- per year with 8% returns to build a corpus of Rs. 10,00,000/- by the
age of 50 Years.
TYPES OF INVESTMENT PLANS

1) HDFC Unit Linked Enhanced Life Protection II

You have always given your family the very best. And there is no reason why they should not
get the best in future too. With our HDFC Unit Linked Enhanced Life Protection II, This Unit
Linked Plan also gives you with an outstanding investment opportunity to maximise your
savings by providing you a choice of thoroughly researched and selected investments. In this
plan, the original Sum Assured chosen by you will be automatically increased by 5% each year
giving your family benefit of enhanced protection.

Advantages

• This plan provides valuable protection to your family in case you are
not around. In case of your unfortunate demise during the policy term,
we will pay the greater of your Sum Assured (less any withdrawals you
have made in the two years before your claim) and your total fund
value to your family.
• In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC) which is 1.75%.
• You can choose to pay your premium as either Annually, Half-Yearly or
Monthly.
o Switching: You can move your accumulated funds from one
fund to another anytime and Premium Redirection: You can
pay your future premiums into a different selection of funds,
2) HDFC Unit Linked Wealth Maximiser Plus

Ideally, just how spending comes to you, so must saving and investing. You are able to finance
your expenses and take care of your family’s needs in present times. However, to ensure that
family is able to maintain the same standard of living in the future, you need to make the right
kind of investment today. HDFC Unit Linked Wealth Maximiser Plus, a unique Single Premium
investment cum protection plan is a tailor made plan well suited to meet your long-term
investment needs and help you maintain your family’s financial independence. This plan also
gives regular Loyalty Units to boost your fund value each year.

Advantages

• This plan not only strives to maximise your investment return and
providing long-term real growth for your money but also gives you an
enhanced flexibility to suit your protection needs.
• This plan gives you regular Loyalty Units to boost your fund value
every year. At the end of every policy year, we will increase the
number of units (Loyalty Units) in each of your funds by 0.10% as long
as your policy is not surrendered.
• In case you opt for “1.1x” Sum Assured, this plan is also available with
limited underwriting wherein you will to fill a Short Medical
Questionnaire (SMQ)
• We have a Fund Management Charge (FMC) of 1.75% per annum (of
the fund’s value)
• You can change your investment fund choices through switching where
you can move your accumulated funds from one fund to another
anytime
CURRENT
SCENARIO
 Indian Insurance Scenario

Not many of us are aware of the fact that the life insurance industry of India is as old as it is in
any other part of the world. Oriental Life Insurance Company was the first Indian life insurance
company, which was started in 1818 at Kolkata. And within a span of 100 to 150 years, the
number grew more than 350 (over 250 in life and about 100 in non-life), mainly with regional
focus, flourished all across the country. However, the Government of India, concerned by the
unethical standards adopted by some players against the consumers, nationalised the industry in
two phases in 1956 (life) and in 1972 (non-life). The insurance business of the country was then
brought under two public sector companies, Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC). Subsequently with the economic reforms that
were ushered in India in early nineties, the Government set up a Committee on Reforms (the
Malhotra Committee) in April 1993 to suggest reforms in the insurance sector. The Committee
recommended throwing open the sector to private players to usher in competition and bring more
choice to the consumer. The objective was to improve the penetration of insurance as a
percentage of GDP, which remains low in India even compared to some developing countries in
Asia.

Reforms were initiated with the passage of Insurance Regulatory and Development Authority
(IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in
place regulations in line with global norms. So far in the private sector, 12 life insurance
companies and 9 general insurance companies have been registered. Till then insurance was kind
of privilege or necessity ought to be meant for the high salaried and riches of this country. As
also a necessity only for some in case they needed to ensure tax savings, tax manipulations etc.

But with the coming of private players, rules of the game have changed. Never were common
men so rigorously targeted. It is today an industry which is growing at the rate more than 25%.
May be this is one of the major reasons why almost all global players are too keen to be in India.
Another could be the saturation of insurance markets in many developed economies.

The changes those have been bought in by privatization in the insurance sector can be
categorized into followings;

1. New Market Development

2. New Product Development
3. Customer Centric Approach
4. New Channel Development

FUTURE OF THE SECTOR

1 Indian insurance sector is likely to register unprecedented growth of 200% and attain a
size of Rs. 2000 billion by 2009-10

2 A private sector insurance business will achieve a growth rate of 140% as a result of
aggressive marketing technique being adopted by them against 35-40% growth rate of state
owned insurance companies.
3 In rural markets, the share of private insurance players would increase substantially as these
have been able to generate a faith among their rural consumers.

RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY

1) Research Design
The method applied in descriptive research is cross sectional studies field work and survey. My
study concerned with the specific prediction of distribution of insurance policy.

Sample Area

My working area was some parts of Delhi. I have collected my data in these areas. As we know
that those person will invest in insurance sector who is salaries or professional. I have targeted
those person who age is equal or more than 25-50years.

NATURE OF DATA

Data collection regarding the market share, products & services offered by different life
insurance company by visiting there corporate offices. This will help in identifying the Unique
Selling Proposition (USP) of different players in the market and by collecting the information
from the companies respondents and internet.
Developing Sample Design:

Sample design refers to number of items to be included in sample It refers to the technique
or procedure the researcher would adopt In selecting items from the sample.

 Type of universe:
The universe is the entire group of items the researcher wishes to study and about
which they plan to generalize. Under this project type of universe include people
residing in delhi (west delhi).

 Sampling Unit:
Sampling units are the persons, who have purchased the insurance plan in delhi
(west delhi).

 Size of Sample:
Number of people surveyed. Generally large Sample more reliable result than small
sample. The sample Consist of 100 respondents.

 Sampling Procedure:
Sampling procedure refers to technique Used in selecting the items for the sample.
Under this project selection of respondents is on the basis of convenience sampling.

 Tools and Techniques:

For this survey Convenience- Sampling technique is used.

Method of data collection

Collection of brochures and pamphlets of different products offered by different players and
study them in order to compare and contrast the different insurance products across industry. It
will to find out the best product available in the market, in its category.

Data is the significant part of the research. Your all research depends upon your data. Whatever
data is collected by me during the internship in the IDBI fortis , I can divide the method the
collection of my data into two parts which are thus:-
 a. Primary data
Primary data are those which are collected fresh and for the first time and thus happen to be
original in chapters. I have collected my data through phone calling and through direct
communication with respondents in one form or another or through personal interviews.

b. Secondary data
Secondary data are those data which are being already collected by someone else and which have
already been passed through the statistical process. I have collected my published date form of
the companies and Internet and the books, magazines and newspapers.

Working Procedure

In my summer training I have targeted Some parts of west Delhi. I have collected my data from
some parts of Delhi. Here I have to approach various detail of insurance product of IDBI fortis
and the other competitor of it, suggestions, its insurance plans. As a part of insurance plans I also
have to collect data in order to find out market share of IDBI fortis from our sample space.
During the period I was in constant touch with my area sales manager and I have to submit daily
report of my work and full information about phone calls and questioners. Questioner consisting
of open ended questions was used for collection the information.

Instrument Used

I have collected my data form field survey , internet and through phone calling. As I was doing
the work of meeting the persons and explaining them about the different insurance plans of the
IDBI fortis and other companies then I tried to fulfill my questioners.
 LIMITATIONS OF THE STUDY

1 The scope of the project is limited to conceptual and marketing aspects of Life Insurance
Companies and doesn’t include Claim Settlement and the underwriting part of the
operations which are equally important aspect of learning.

2 Project is limited to IDBI fortis life insurance., Priority Circle branch, delhi, which is
branch dedicated to High Net-worth Individual .It excludes the analysis of low premium
paying segment of the people.

3 The major limitation was in terms of collecting the right information from the various
insurance players, as the insurance players resist in revealing their marketing strategies,
etc.

4 Lack of knowledge about the insurance plans is a barrier during conversation with
customers of the local market.
COMPARSION OF TWO ULIP PLANS OF TWO COMPANIES
 Only After 3 years: no
Surrender allowed charges
Before lock in period-30%
of outstanding premium
IDBI FORTIS LIFE
OP= difference between
Company Name regular premium
INSURANCE
expected & received in
the first two years.
Guaranteed Return
Plan Name Funds
Risk
18 to 65 Illness Benefit is
Terminal
ELIGIBILITY
Death and Maturity equal to Sum at Risk (i.e.
Sum Insured minus Fund
Minimum-10% of invested
Sum Assured Value)
amount is guaranteed
on amount invested.
Minimum- Rs. 10,000
Before 5 years- value of
fund after deduction
of surrender charges
will be cease to be
HDFC STD.
invested andLIFE
will be
held by them.
INSRUANCE
After 3 years- value of fund
after deduction of
HDFC LIFE charges
surrender
will
PROTECTION be cease
ll to be
invested will given.
18 to will
They 45. pay balances
units at the prevailing
Prevailing unit price in
unit price and take the
the market and fund
fund value.
value.
Minimum – Rs. 12,000

Premium Maximum- no limit Maximum- no limit

3 years 5 years
Lock in period
 They are declared by the
Fund Option company time to time.
Fund mgt. charge- Fund
Charges management charged will be 1.5%
on the fund value
Partial Withdrawal Charge- No
withdrawals are permitted in the first
three years.We can make
Withdrawals whenever we need and
as many time and charges.
Fund switching Charges
No charges are deducted
and “N” number of switches
are allowed.
Policy administration charges-
Rs. 60 charged per month
ALLOCATION CHARGES
Any year = 3.5 % - 2.5%
1 Liquid fund ll
2 stable managed fund
3 secure managed fund
4 defensive managed fund
ll
5 balanced fund ll
Fund Mgt. Charges- 1.75%
annually charged of the fund
value.
Partial Withdrawal Charge-.
No withdrawals are permitted in
the first 5 years. 6 withdrawals are
allowed and after that Rs.250
chagred on each withdrawal.
Fund switching Charges- 24
switches allowed every
policy year free.
Subsequent switches will
be charged at Rs. 100 per
switch premium.
Policy administration charges-
Rs. 60 charged per month.
ALLOCATION CHARGES
1ST YEAR = 65%
2ndYEAR- = 65%
3nd YEAR+ = 98%
 COMPARSION OF TWO ULIP PLANS
IDBI FORTIS LIFE
Company Name INSURANCE
Monthly Interest
Plan Name Account
18 to 65
ELIGIBILITY
fixed interest on the
Sum Assured
amount invested based on
daily basis.
Minimum- Rs. 10,000
Premium Maximum- no limit
Change the funds plan
Lock in period
whenever we require.
After 3 years: no charges
Surrender allowed
Before lock in period-30%
of outstanding premium
Terminal Illness Benefit is
Death and Maturity
equal to Sum at Risk (i.e.
Sum Insured minus Fund
Value)
HDFC STD. LIFE
INSRUANCE
HDFC wealth
maximiser plus
“1.1x” min- 18, max-
65
“5x” min- 18, max-
55
1.1 times on single premium
5 times on single
premium.
Minimum- Rs. 1,00,000
Maximum- no limit
3 years
Before three years are
passed- value will be
deducted with surrender
charge will cease.
After three years are
passed- the surrender value
will be above the units in the
fund after deduction of
surrender charge.
They will pay greater of the
sum assured less
withdrawals made during
the past two preceding years
and fund value
 They are declared by the 1 Money plus fund
Fund Option company time to time.
2 bond opportunity fund

3 large-cap fund

4 mid-cap fund

5 manager’s fund

Fund mgmt. charge Fund Mgmt. Charges

Charges
Fund management charged 1.75% annually charged of
will be 1.5% on the fund the fund value.
value
Partial Withdrawal
Partial Withdrawal Charge-.
Charge-
No withdrawals are permitted
No withdrawals are in the first six years.
permitted in the first three
4th Policy year - 6%
years.
5th Policy year - 4%
We can make Withdrawals
whenever we need and as 6th Policy year - 2%
many

time and charges on that

policy. Fund switching Charges

Fund switching Charges 24 switches allowed every

policy year free. Subsequent
No charges are deducted switches will be charged at
and “N” number of Rs. 100 per switch premium.
switches are allowed.
Respondent Profile: -

Respondent profile has been analyzed: -

1. Occupation-

S. No. Particulars Respons

 e

A businessman 45

B professional 35

C students 10

D Housewife 10

Total respondents 100

X axis - occupation , y axis - respondents

INTERPRETATION:- In this chart, we can see that the major respondents are from
business and professional sector of the society. About 50% respondents are from busniess sector.

2. Do you have Insurance? If yes of which company?

S. No. Particulars Respons

e
 A Yes 88

B No 12

Total Respondents 100

X axis- response , y axis- respondents

INTERPRETATION- In this chart we can see that respondents have taken insurance
policies of different companies to secured their future.
WHICH COMPANY?

Particulars Response

S.No

A LIFE INSURANCE 52
COMPANY

B ICICI Prudential Life 12

Insurance Co. Limited

C HDFC standard life 16

insurance Ltd

D Reliance General Insurance 8

Co. Limited

E Non- insurance policy 12

holders

Total Respondents 100

X axis - companies , y axis - respondents

INTERPRETATION:- In this chart, we can see that mostly respondents have already
secured under life insurance policies of different companies and major player in the market is
LIC. Nearly 50% respondents have taken insurance policies.

3. Awareness of IDBI fortis Life Insurance Company?

S. No. Particulars Response

A Print media 25

B Electronic 30
media

C Agents 35

D Others 10

Total Respondents 100

X axis - mediums , y axis - respondents

INTERPRETATION:-
In this chart, we can see that the agents play major role in exploring the new companies policy’s
for explaining their companies importance and policies. Agents create great effect on the mind of
the customers as they are more aware and understanding of plans.

4. Do you know about Unit Linked Insurance Plans (ULIP)?

S. No. Particulars Respons

e

A Yes 60

B No 40

Total Respondents 100

X axis - response , y axis - respondents

INTERPRETATION:-
On the basis of above analysis, we can say that people are aware of the ULIP plans of the
different companies in the market. Respondents are aware of the ulip plans of the respective
companies.

5. According to you, Insurance policies are for?

S. Particulars Respo
No. nse

A Necessity for protection 67

security

B Imposition of a burden 17
of expenses

C A compulsory tool for 16

tax saving

Total respondents 100

X axis - response , y axis - respondents

INTERPRETATION:- On the basis of above analysis, we can say that people mostly
treat insurance as a protection instrument. 67 people think insurance as a necessity for protection
& security and remaining think for tax savings and imposition of a burden of expenses.

6. Main consideration that a customer looks at while purchasing an

Insurance Policy?
S.No Particulars Respons
e

A TAX 10

B SAVING 29

C PROTECTION 53

D PENSION 3

E INVESTMENT 5

total Respondents 100

X axis - response , y axis - respondents

INTERPRETATION:- On the basis of above analysis, we can say that

people purchase insurance policy mostly for the protection purpose. More
than half of the people takes insurance for protection of their future.

7. What a respondent see while purchasing Insurance from the company?

S. No. Particulars %age

A Standing and goodwill of 35

the company

B Product range and 17

services of the company

C Advertisement being 13
released by the
company

D Possession of company’s 10
policy by his relatives
and friends.

E Returns of bonus 25
declared by the
company

Total Respondents 100

 S. No. Particulars %age

A Protection 47
Plan

B Investment 19
Plan

C Pension Plan 10

D Children Plan 24

Total Respondents 100

X axis - response , y axis - respondents

INTERPRETATION:- On the basis of above analysis, we can say that people prefer
the companies those have very highly goodwill in the market. And apart from this while
purchasing
they also use to give more weight age to return also.
8. Plan that a respondent prefers to buy?
X axis - response , y axis - respondents

INTERPRETATION:- On the basis of above analysis, we can say that people prefer to
buy protection & children plans mostly. Respondents are concerned with protection pans because
they are taking the plans to secured their future.
9. Customers’ expectations from Life Insurance Companies?

S. No. Particulars %age

A Innovative Products 5
 B Attractive Rider 2

C Reasonable Premium 47

D Better Customer Service 24

E High Risk Coverage 22

Total Respondents 100

X axis - response , y axis - respondents

INTERPRETATION:-

On the basis of above analysis, we can say that people expect better customer service from the
insurance companies & reasonable premium on their investment. People mainly go for the plan
which will provide him sufficient returns by giving reasonable premium.

10. How do you rate IDBI fortis’s wealthsurance policy by other

company insurance Policy?.

S. No. Particulars %age

A GOOD 10

B AVERAGE 25

C BAD 10

D CANT SAY 55

Total Respondents 100

X axis - response , y axis - respondents

INTERPETATION:-
On the basis of above analysis, we can say that people are satisfied with the plans they have
bought, its that they are not aware of these ulip plans of this company . But there are certain
doubts in the mind of respondents about the company and whether they should invest in it or not.

FINDING
GENERAL FINDINGS

 Agents play major role in awaring people about the benefits of insurance.
 People think insurance as a protection tool.
  People purchase insurance policy mostly for protection purpose and some of people for
saving.
 The goodwill of the company also attracts customers toward a insurance company.
 People also take insurance policy as a security for their children.

COMPANY ‘S POINT OF VIEW FINDINGS

 Most of the people are already secured under life insurance policies of different
companies and major player in the market is LIC. About 50% respondents have taken
insurance policies.

 The agents play major role in exploring the new companies policy’s for explaining their
companies importance and policies. Agents create great effect on the mind of the
customers as they are more aware and understanding of plans.

 Around 67% people takes insurance as a necessity for protection & security and
remaining think for tax savings and imposition of a burden of expenses.

 More than half of the people takes insurance for protection of their future and prefer
protection plans.

 People expect better customer service from the insurance companies & reasonable
premium on their investment. People mainly go for the plan which will provide him
sufficient returns by giving reasonable premium.
CONCLUSION

On the basis of my study, I conclude that, both the companies are providing very good
facilities to their customers. IDBI fortis Life Insurance is the one that is providing wavier of
premium to its customer in case of maturity and in case of death of the life assured, whereas
HDFC standard life insurance company is not providing this facility to its customers.But due to
some reasons the market share of the HDFC standard life insurance company is more then IDBI
fortis may be because of brand image and reliability.

Both the companies have same lock in period i.e.3 years. Surrender charges of these companies
are different from each other. On maturity, both the companies provide the different amount with
refernce to market conditions. Charges taken to manage the fund are different in both the
companies.

SUGGESTIONS

 Advertisement should be done on television and especially Posters and Banners. This will
greatly help in raising awareness level.
 IDBI Company should show more commitment with the customers.
  Private companies give better services to the customers as compared to public companies.
 The IDBI company should create good relations and communication.
 IDBI company should collaborate to spread awareness regarding the benefits of insurance
plans provided by the other companies.
 Agents have got maximum influence on customers. They are the one who introduces the
prospect to different policies. So agents should be given full-fledged training and the
training should be strict.

BIBLIOGRAPHY

WEBSITES
• www.idbifortis.com
• www.economictimes.com
• www.irdaindia.com
• www.hdfcstandardlife.com

BROUCHERS

• IDBI fortis life insurance

• HDFC Standard Life Insurance

QUESTIONNAIRE

I, SAHIL KOCHHAR, student of tecnia institute of advanced studies , pursuing my BBA,

carrying out a project work in partial fulfillment of my live project. I am undertaking a project

“COMPARITIVE ANALYSIS OF ULIP PLANS

 WITH REFERENCE TO

(IDBI FORTIS

AND

HDFC STANDARD LIFE INSURANCE)”

In view of this, I hereby request you to give your feed back on the questionnaire given below.
Please note that your response will be kept confidential. Please mark the appropriate answer-

NAME ---------------------------------------------------------------------------

AGE ----------- Nationality ----------------------- Income ---------------

Contact number --------------------------------, --------------------------------

Address-----------------------------------------------------------------------------

Q1) Occupation

a) Businessman [ ] b) Professional [ ]

C) Students [ ] d) House wife [ ]

Q.2) Do u have Insurance? If yes of which company?

a)Yes b) No

WHICH COMPANY?

a) LIFE INSURANCE COMPANY [ ]

b) Reliance General Insurance Co. Limited [ ]
C) HDFC standard life insurance Ltd [ ]
D) Max New York Life Insurance Co. Ltd [ ]
E) ICICI Prudential Life Insurance Co. Limited [ ]

Q.3) According to you, Insurance policies are for?

A) Necessity for protection security [ ]

b) Imposition of a burden of expenses [ ]

c) A compulsory tool for tax saving [ ]

Q.3) Awareness of IDBI fortis Life Insurance Company:-

A) PRINT MEDIA [ ] b) ELECTRONIC MEDIA [ ]

c) AGENTS [ ] d) OTHERS [ ]

Q.5) Do you know about Unit Linked Insurance Plans (ULIP)?

a) Yes [ ] b) No [ ]
Q.6) Main consideration that a customer looks at while purchasing an
Insurance Policy.

A) TAX [ ]
B) SAVING [ ]
C) PROTECTION [ ]

D) PENSION [ ]

E) INVESTMENT [ ]

Q.7) What a respondent see while purchasing Insurance from the company?

A) Standing and goodwill of the company [ ]

B) Product range of the company [ ]

C) Advertisement being released by the company [ ]

D) Services being given by the company [ ]

E) Returns of bonus declared by the company [ ]

Q.8) Plan that a respondent prefers to buy?

a) Protection plan [ ]

b) Investment plans [ ]

c) Pension plan [ ]

d) children plan [ ]

Q.9) Customers’ expectations from Life Insurance Companies?

a) Innovative Products [ ]
b) Attractive Riders [ ]

c) Reasonable Premium [ ]

d) Better Customer Service [ ]

e) High Risk Coverage [ ]

Q.10) Is the respondent satisfied with the plan which I have bought?
A) YES [ ]
B) NO [ ]
C) CANT SAY [ ]

Q.11) How do you rate IDBI fortis’s wealthinsurance policy by our other
company insurance Policy?

A) Good [ ]

B) Very good [ ]

C) Average [ ]

D) Bad [ ]

E) can’t say [ ]

Thank you

Date: Signature