!

SUMMER TRAINING REPORT ON

ANALYSIS OF ULIP

Undertaken at

“ IDBI FEDERAL LIFE INSURANCE CO. ”

Submitted in partial fulfillment of the

requirements for the
award of the degree of

BACHELOR OF BUSINESS
ADMINISTRATION
By
SHUBHANGI ARORA
Enrollment no.

14917701716

Vivekananda School of Business Studies

Vivekananda Institute of Professional studies
Guru Gobind Singh Indraprastha University
Delhi
December - 2018
 To Whom It May Concern

I S H U B H A N G I A R O R A , Enrolment No. 1 4 9 1 7 7 0 1 7 1 6 from

BBA-V Semester of the Vivekananda Institute of Professional Studies,
Delhi hereby declare that the Summer Training Report
(BBA 311) entitled “Analysis of ULIP” at IDBI Federal Life Insurance
Company is an original work and the same has not been submitted to any
other Institute for the award of any other degree. A presentation of the
Summer Training Report was made on june-july 2018 and the suggestions
as approved by the faculty were duly incorporated.

Date:
Signature of the Student:

Certified that the Summer Training Report submitted in partial

fulfillment of Bachelor of Business Administration (BBA) to be
a w a r d e d b y G . G . S . I . P. U n i v e r s i t y , D e l h i b y
Shubhangi Arora, Enrolment No. 14917701716 has been completed
under my guidance and is Satisfactory.

Date:
Signature of the Guide:
Name of the Guide:
Designation:
 ON COMPANY’S
LETTER HEAD

CERTIFICATE

This is to certify that………………(Full Name of the Student), a student of Bachelor of

Business Administration (BBA), a class of 2013, Vivekananda Institute of Professional
Studies, Affiliated to GGS.IP. University bearing Enrolment No.………………., has
undertaken the Summer Internship Training at ………………………………… (Name of the
Company) during…………… to ………………under my supervision & guidance. He / She
has conducted a study
& completed the Project on
……………………………………………………………………………….
…………

Seal of Organization
Signature of the Guide:
Date: Name of the Guide:
Designation:
Address:
Chapter I: Introduction
INTRODUCTION TO INSURANCE

Insurance is a means of protection from financial loss. It is a form of risk

management, primarily used to hedge against the risk of a contingent or
uncertain loss.

An entity which provides insurance is known as an insurer, insurance

company, insurance carrier or underwriter. A person or entity who buys
insurance is known as an insured or as a policyholder. The insurance
transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurer's
promise to compensate the insured in the event of a covered loss. The loss
may or may not be financial, but it must be reducible to financial terms, and
usually involves something in which the insured has an insurable interest
established by ownership, possession, or preexisting relationship.

The insured receives a contract, called the insurance policy, which details the
conditions and circumstances under which the insurer will compensate the
insured. The amount of money charged by the insurer to the insured for the
coverage set forth in the insurance policy is called the premium. If the insured
experiences a loss which is potentially covered by the insurance policy, the
insured submits a claim to the insurer for processing by a claims adjuster.

The insurer may hedge its own risk by taking out reinsurance, whereby
another insurance company agrees to carry some of the risk, especially if the
primary insurer deems the risk too large for it to carry.

As the first step is helping you to gain knowledge you need to become a
professional and successful life insurance agent , we are going to first take
an overview of ULIP - what it is and why it is needed.

In seeing how ULIP works we will need to make reference to the insurance
market as a whole - insurance is available for many other things , not just for
human life - but our focus will remain firmly on the life insurance part of it.
HOW DOES INSURANCE WORK

An insurance policy is a financial contract between a policyholder and an

insurer, which is almost always an insurance company. The insurer agrees to
pay in the event that the person or property insured suffers a type of loss
named in the policy. For example, an auto liability policy will pay for the
damage sustained by another vehicle and any injuries to its occupants in an
accident where you are at fault. A renters policy may pay for damage to your
stereo as a result of a water leak in your apartment. The protection remains in
force for a specified "policy term," typically six months or a year, after which
you´ll need to renew the policy in order to continue the coverage.

Whatever the policy type, it will generally only pay for losses that are
specifically named in the policy. Therefore, you should always read any
insurance policy carefully before you purchase it.

In return for coverage, you pay the insurer a specified amount, called the
"premium." Premiums are typically paid in monthly installments , but may also
be paid all at once or in other intervals. Insurance companies use a process
called "underwriting" to evaluate your risk factors and estimate the statistical
likelihood that you´ll suffer a covered loss and file a claim. The higher a
company determines your risk factors to be, the more it will charge in
premium (as the company believes it is more likely that it will have to pay
you). If your risk factors are too high, a company may decline to sell you a
policy. Each insurance company uses its own underwriting formula for
assessing risk factors. If one company turns you down, keep shopping;
another company may be willing to cover you.

For some types of insurance, the insurer will pay a percentage of the cost of
a claim, and you must pay the remaining amount. For instance, if you have
surgery, an insurer might pay 80 percent of the cost of the surgery, leaving
you to pay the remaining 20 percent. This cost sharing is called
"coinsurance." Many health plans also have "copays." These are amounts
you pay each time you receive a covered health service. You might have to
pay a $20 copay each time you go to the doctor, for example.

Almost all insurance policies will have a "coverage limit." This is the
maximum amount it will pay toward any covered loss, regardless of the actual
costs you incur.

Many people pay insurance premiums for years and never file a claim. This
can lead some people to think they´re wasting money and cause them to
cancel their coverage. In the event they suffer a loss, however, they must pay
the full cost themselves.
When you buy an insurance policy, you´re buying protection. You´re protected
against unexpected financial losses, whether you ever actually use the
coverage or not.

1.2 OBJECTIVES OF STUDY

(a) To identify the strengths and weaknesses of IDBI Federal Life Insurance
Company and suggest areas where it could focus more.
(b) To compare the different Unit Linked Insurance Plans (ULIP) of IDBI
Federal Life Insurance Company.
(c) To study the features of ULIP and consumer perception towards various
insurance products.
(d) To study in detail the positioning strategies of brand IDBI Federal Life
Insurance in General.

1.3 SCOPE OF STUDY

This study aims to make a comparative study of various Unit Linked

Insurance Plans (ULIP) of IDBI Federal Life Insurance Company and study
the consumer perception towards various insurance products. The
comparative study is based upon the secondary data.

The study also aims to discuss various positioning strategies adopted by IDBI
Federal Life Insurance Company in general.

1.4 COMPANY PROFILE

IDBI Federal Life Insurance Company Limited 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 Ageas, a multinational insurance
giant based out of Europe. In this venture, IDBI Bank owns 48% equity while
Federal Bank and Ageas own 26% equity each.

Having started in 2008, in just five months of inception, IDBI Federal became
one of the fastest growing new insurance companies by garnering Rs.100 Cr
in premiums.

Through a continuous process of innovation in product and service delivery

IDBI Federal aims to deliver world-class wealth management, protection and
retirement solutions that provide value and convenience to the Indian
customer. The company offers its services through a vast nation-wide
network. As on , the company has issued nearly policies ……… with a sum
assured over……...

IDBI Federal has Bancassurance partnership with IDBI Bank and the Federal
Bank and also distributes its products through its own network. To further
diversify its distribution base, it has set up an Alternate & Direct Distribution
channel.

ABOUT THE SPONSORS OF IDBI FEDERAL LIFE INSURANCE CO LTD:

IDBI BANK LTD.

IDBI continues to be, since its inception, India’s premier industrial
development bank. It came into being as on July 01,1964 (under the
Companies Act, 1956) to support India’s industrial backbone. 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 1082 branches and 1715 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 the 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 the financial sector
- National Stock Exchange of India Limited (NSE) and National Securities
Depository Ltd, SHCIL (Stock Holding Corporation of India Ltd) , CARE
(Credit Analysis and Research Ltd)

FEDERAL BANK
It 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 1252 branches and 1680
ATMs spread across India. The bank provides over four million retail
customers with a variety of financial products. Federal Bank is one of the first
large Indian banks to have an entirely automated and interconnected branch
network. In addition to interconnected branches and ATMs, the bank has a
wide of services like Internet Banking, Mobile Banking, Tele Banking, and 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.

AGEAS
It is an international insurance group with a heritage spanning more than 180
years. Ranked among the top 20 insurance companies in Europe, Ageas has
chosen to concentrate its business activities in Europe and Asia, which
together make up the largest share of the global insurance market.
These are grouped under 4 segments:

1. Belgium
2. United Kingdom
3. Continental Europe
4. Asia

And served through a combination of wholly owned subsidiaries and

partnerships with strong financial institutions and key distributors around the
world. Ageas operates successful partnerships in Belgium, UK, Luxembourg,
Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has
subsidiaries in France, Hong Kong and UK. Ageas is the market leader in
Belgium for individual life and employee benefits, as well as a leading non-life
player through AG Insurance. In the UK, Ageas has a strong presence as the
fourth largest player in private car insurance and the over 50’s market. Ageas
employs more than 13,000 people as on 2013 with a customer base of more
than 39 million and has annual inflows of more than EUR 21 billion.

VISION:
To be the leading provider of wealth management, protection and retirement
solutions that meets the needs of our customers and adds value to their lives.

MISSION:
To continually strive to enhance customer experience through innovative
product offerings, dedicated relationship management and superior service
delivery while striving to interact with our customers in the most convenient
and cost effective manner.
To be transparent in the way we deal with our customers and to act with
integrity.
To invest in and build quality human capital in order to achieve our mission.
VALUES:
(a) Transparency: Crystal clear communication to our partners and
stakeholders
(b) Value to customers: A product and service offering in which customers
perceive value
(c) Rock solid and delivery on promise: This translates into being financially
strong, operationally robust and having clarity in claims
(d) Customer-friendly: Advice and support in working with customers and
partners
(e) Profit to stakeholders: Balance the interests of customers, partners,
employees, shareholders and the community at large.

EXCELLENCE:
“In every aspect of work ranging from the in-house training institute to the
detailed Personal Insurance Plan. IDBI Federal is focused on achieving the
highest standards of quantity invert aspect of their business.”

HONESTY:
“Is the heart of the Life Insurance business? IDBI Federal believes that above
all, Life Insurance is based on trust. Transparency, Dependability and
Integrity will form the cornerstones of the IDBI Federal experience.”

KNOWLEDGE:
“Is what makes experts. IDBI Federal is focused on the Life Insurance
business. Perfectly combining global experience with local knowledge, IDBI
Federal is the Indian Life Insurance specialist.”

CARING:
“For the customer IDBI is refining the Life Insurance paradigm to focus on the
needs of the customers. The IDBI Federal service process is responsive,
personalised, humane and empathetic.

CULTURE:
Our “in house culture recipe” has some of the finest ingredients going into its
making. Some of the more prominent aspects of our culture are stated below:
(i) Customer comes first
(ii) Do it right the first time
(iii) Bias for result oriented action
(iv) Financial strength and discipline
(v) Clarity of purpose
(vi) International quality standards
(vii) Learning opportunities
(viii)Fun at work
(ix) Commitment to published value system
(x) Inclusive Meritocracy

TECHNOLOGY:
To monitor and manage its network equipment across 34 sites, IDBI Federal
uses Tulip Proactive Managed CE Solution. The solution includes device
management, proactive troubleshooting and notification support. With the
implementation of the solution, IDBI has reported improvement of network
performance and availability, with a faster, more effective change and
configuration management.
 Industry Profile:

INTRODUCTION TO INSURANCE INDUSTRY

The insurance industry of India consists of 57 insurance companies of which

24 are in life insurance business and 33 are non-life insurers. Among the life
insurers, Life Insurance Corporation (LIC) is the sole public sector company.
Apart from that, among the non-life insurers there are six public sector
insurers. In addition to these, there is sole national re-insurer, namely,
General Insurance Corporation of India (GIC Re). Other stakeholders in
Indian Insurance market include agents (individual and corporate), brokers,
surveyors and third party administrators servicing health insurance claims.
Out of 33 non-life insurance companies, five private sector insurers are
registered to underwrite policies exclusively in health, personal accident and
travel insurance segments. They are Star Health and Allied Insurance
Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa
Health Insurance Company Ltd, Religare Health Insurance Company Ltd and
Cigna TTK Health Insurance Company Ltd. There are two more specialised
insurers belonging to public sector, namely, Export Credit Guarantee
Corporation of India for Credit Insurance and Agriculture Insurance Company
Ltd for crop insurance.
Market Size
Government's policy of insuring the uninsured has gradually
pushed  insurance penetration  in the country and proliferation
of insurance schemes.
The domestic life insurance industry registered 10.99 per cent y-o-y growth
for new business premium in 2017-18, generating a revenue of Rs 1.94
trillion (US$ 30.1 billion).
Gross direct premiums for non-life insurance industry increased by 17.54 per
cent y-o-y in FY18.
Investments
The following are some of the major investments and developments in the
Indian insurance sector.
• Insurance sector companies in India raised around Rs 434.3 billion
(US$ 6.7 billion) through public issues in 2017.
• In 2017, insurance sector in India saw 10 merger and acquisition (M&A)
deals worth US$ 903 million.
• India's leading bourse Bombay Stock Exchange (BSE) will set up a joint
venture with Ebix Inc to build a robust insurance distribution network in
the country through a new distribution exchange platform.

Government Initiatives
The Government of India has taken a number of initiatives to boost the
insurance industry. Some of them are as follows:
• National Health Protection Scheme will be launched under Ayushman
Bharat to provide coverage of up to Rs 500,000 (US$ 7,723) to more
than 100 million vulnerable families.
• Over 47.9 million famers were benefitted under Pradhan Mantri Fasal
Bima Yojana (PMFBY) in 2017-18.
• The Insurance Regulatory and Development Authority of India (IRDAI)
plans to issue redesigned initial public offering (IPO) guidelines for
insurance companies in India, which are to looking to divest equity
through the IPO route.
• IRDAI has allowed insurers to invest up to 10 per cent in additional tier
1 (AT1) bonds that are issued by banks to augment their tier 1 capital,
in order to expand the pool of eligible investors for the banks.
Road Ahead
The future looks promising for the life insurance industry with several
changes in regulatory framework which will lead to further change in the way
the industry conducts its business and engages with its customers.
The overall insurance industry is expected to reach US$ 280 billion by 2020.
Demographic factors such as growing middle class, young insurable
population and growing awareness of the need for protection and retirement
planning will support the growth of Indian life insurance.

THE GROWTH HISTORY OF INSURANCE INDUSTRY IN INDIA

The Indian insurance industry started in the early 19th century. Oriental Life
Insurance Company, the first insurance company in India was incorporated
in 1818 by Europeans in Kolkata to exclusively serve their community. The
company charged premium to Indians unfairly high categorizing their age
unevenly. Indian policyholders of similar profile compelled to pay reasonably
high premium than their European counterparts. Due to this colonial
disparity, the absence of an Indian insurance company was being realized
by Indian policy seekers. Finally, in 1870, Bombay Mutual Life Assurance
Society, the first Indian insurance company was established to cover Indian
lives. And, in 1850, Triton Insurance Company Ltd was formed to provide
general insurance solutions. Slowly but steadily, the Indian insurance sector
fledged into a huge sector contributing remarkable contribution to the Indian
economy.

In early years of the 20th century new companies started mushrooming in

India. In order to regulate these insurance companies, Life Insurance
Companies Act and Provident Fund Act were passed in 1912. Evolution of
insurance industry has undergone three phases, Pre-Nationalisation,
Nationalisation and Privatisation. Nationalisation of insurance industry was
happened after the passing of Life Insurance Corporation Act – 1956.
There were over 2,000 Indian and European insurance companies.

Public sector insurance companies, even after the nationalization, were loss
making ventures; and the need of privatization were being felt as an
effective solution for distribution issues and implementation of marketing
strategies. Since the Indian insurance market was opened for private
players in 2000, the industry almost changed overnight. In order to tap the
market potentially, a competition among the companies started that forced
providers to do campaign and organize different insurance awareness
programmes. As a result, policyholders are being offered varieties of
insurance products at competitive premium rates.
The privatization of Indian insurance sector has helped to increase
efficiency of insurance business. Many new private companies came up
with attractive products. Some of the big names in the Indian private
insurance players are ICICI Prudential, HDFC Life, Bajaj Allainz Life
Insurance, Tata AIG life, Kotak Life Insurance, Reliance Life, Aviva Life,
Apollo Munich, Religare etc.

With the advent of computers and growing reach of internet via different
appliances such as laptops, smartphones, tablet etc. insurance business
getting a boost along with the other e-commerce businesses. The internet
has brought the insurance comparison, buying at a fingertip.  It has enabled
the insurance business to become more accessible and user- friendly. It
helps you buy an insurance product on the go without any hassle. By using
insurance comparison engine, you can compare prices and features of
variety of insurance products offered by different insurance companies.
Online option of buying insurance products is also economical. Premium
charged for an online insurance policy is much lesser than the premium
charged for an offline policy of similar features and sum assured.

Although, the Indian insurance sector is still under penetrated, the scenario
has totally changed after the private players entered the sector. Now, as the
Insurance (Amendment) Bill that approves FDI (foreign direct investment)
limit in the Indian insurance sector up to 49 per cent, got Parliamentary nod,
a huge capital inflows is expected in the sector.
Chapter-II: Review of Literature
Till today a lot of research has been done on the Indian Insurance industry
especially the life insurance sector. The material for this site was collected
from various internet sites , journals and books by various authors. Similar
research is carried by Sathak Mohanty who worked on the risk profiles of
ULIPs and analysed insurance as an investment option. He says life
insurance corporation of India (LIC) is still undisputed leader in the Indian
context.
According to Anita Gupta- Director , marketing and communication , ING
Vysa Life Insurance ULIPS are suitable for all types of customers , right
from the lower class to the premium class. Also according to the Financial
Express (Dated 12th April, 2009 ) ULIPS are flexible to the core.

During the course of the age some officials studies on the products of TATA-
AIG and HDFC Standard Life have been referred to also the books on
Marketing Management by Philip Kotler and that of Marketing Research by
Naresh Malhotra were referred to gain a deeper insight on positioning
strategy and marketing research techniques. A lot of ground work has also
been done by studying the vast range insurance products before taking up
this research.
Akula, R. and Kanchu, T.,(2011), conducted a study on growth of ULIP
Policies in life insurance sector of India by comparing traditional (Life Fund
+ Pension & General Annuity + Group Fund) and ULIP Policies. The
objective of the study was to observe the evolution of ULIPs in India, the
growth of ULIPs over traditional Policies, risk factors involved in ULIPs over
traditional policies and to suggest various measures to develop and stabilize
the growth of ULIPs. The period from 2007 to 2009 was covered in the
study. The study considered 5 companies to compare growth, namely, LICI,
HDFC Standard Life, ICICI Prudential Life, SBI Life and Bazaz Allianz Life.
It was revealed from the study that there was remarkable growth in ULIP
compared to traditional policies as the new private entrants targeted ULIPs
for market penetration.

Venugopalan, K.,V.(2011), conducted a study on global financial crisis and

Life insurance sector in India by undertaking a comparative study of LIC
with Private Sector. The impact of the Global Financial Crisis of 2007 to the
Indian Life Insurance Sector is measured by using the following variables
insurance penetration, insurance density, number of insurance policies
issued, number of insurance premiums collected, total premium collected,
profit obtained.The period covered in the study was from 2004-05 to
2010-11. The study suggested insurance sector to be an emerging and
untapped sector in our country.
SIT Journal of Management Vol.2. No. 2. December 2012. Pp.42-56
with good growth potentials. A mixture of traditional and ULIP Policies was
also suggested in the study.

Sinha, R.P.(2009) compared the public and private sector life insurance
companies on the basis of investment funds. The period covered in the
study was from 2002-03 to 2006-07. The study revealed that the private
sector insurance companies collected more funds from unit-linked plans that
LICI and therefore, were more exposed to stock market. During the years
2005-06 and 2006-07 the return on investment was found to be higher for
the private players compared to LICI owing to buoyant stock market
conditions. The study also suggested that the private players might not
repeat this in later years due to stock market meltdown.
Nair, K.K.(2009), conducted a study on Unit Linked insurance plans (ULIP)
based on secondary data available on its emergence, concepts,
parameters, benefit, current position and future outlook. The study
suggested that India has a plethora of opportunities for insurance
companies because three-fourth of the population was uninsured also
majority of the investing population were small and medium investors and
majority of the investors lacked the expertise to directly enter the stock
market and earn good returns. The Study emphasized the about facts to be
the reasons for increased importance of ULIP. The study observed that
ULIP will continue to be a good investment option for the investors as it
combines the multi aspects of insurance, investment and tax benefit.

Rao,T. and Samuel, S.(2009), studied the reforms in the insurance industry
and suggested that the reforms would create the potential for further growth
in the industry, it might totally transform the industry and also that the future
of insurance industry according to them was a blend of opportunities and
challenges.
Ramana, B.V.(2009), studied the impact of global financial crisis on
insurance and reinsurance industry using a meta-analytical analysis. The
study suggested that the insurance industry (barring AIG, the insurance
giant) escaped largely unscathed from the first round effects of the
subprime disaster but the prolonged credit and liquidity crisis, as well as, the
consequent regression in the financial services sector had its direct and
indirect impact on both primary and reinsurance markets the world over
which was quite evident from the increase in the number of claims, decline
in investment return and reduced access to finding.

SIT Journal of Management Vol.2. No. 2. December 2012. Pp.42-56

James J. Schiro(2006) suggested that insurance industry must be proactive
to deal with changes in
external forces and technological developments. Regulations can play a key
role here. The regulators have

to be in pace with the world. The regulations should be principle based

rather than rule based.
Stefan Engelander and Joachim Kolschbach(2006) opined that in insurance
sector the risk is retransferred to the policy holder by a refund of premiums
not required. The performance linked feature has a significant role in the
insurance business. They stressed upon reducing the liquidity risk by
speeding up the settlement process. Traditionally, the relationship between
a policy holder and insurer depends on mutual trust.
 Chapter-III: Research Methodology

Research Design:
Research designs are categorized broadly into two categories exploratory research design and
conclusive research design. Conclusive research design is further divided into descriptive and
causal/ experimental research design. The suitability of a research design for a specific research
depends on nature of the problem, method of data collection and analysis.

• Conclusive Research Design

Conclusive research design, as the name implies, is applied to generate findings that are practically
useful in reaching conclusions or decision-making. In this type of studies research objectives and
data requirements need to be clearly defined. Findings of conclusive studies usually have specific
uses. Conclusive research design provides a way to verify and quantify findings of exploratory
studies. It usually involves application of quantitative methods of data collection and data analysis.
Moreover, conclusive studies tend to be deductive in nature and research objectives in these types
of studies are achieved by testing hypotheses. Conclusive research design is further categorized into
descriptive research design and Causal or Experimental Research Design.
Descriptive Research Design

Descriptive research design is typically concerned with describing problem and its solution.
It is more specific and purposive study. Before rigorous attempts are made for descriptive
study, the well-defined problem must be on hand. Descriptive study rests on one or more
hypotheses. Descriptive research requires clear specification of who, why, what, when,
where, and how of the research. Descriptive design is directed to answer these problems.
 Causal or Experimental Research Design
Causal research design deals with determining cause and effect relationship. It is typically in
form of experiment. In causal research design, attempt is made to measure impact of
manipulation on independent variables (like price, products, advertising and selling efforts
or marketing strategies in general) on dependent variables (like sales volume, profits, and
brand image and brand loyalty). It has more practical value in resolving marketing
problems.
Test marketing is the most suitable example of experimental marketing in which the
independent variable like price, product, promotional efforts, etc., are manipulated
(changed) to measure its impact on the dependent variables, such as sales, profits, brand
loyalty, competitive strengths product differentiation and so on.
Data Collection Tools:

There are two types of data – primary and secondary. Primary data is a type of data which never
existed before; hence it was not previously published. Primary data is collected for a specific
purpose, i.e. they are critically analyzed to find answers to research question(s). Secondary data, on
the other hand, refers to a type of data that has been previously published in journals, magazines,
newspapers, books, online portals and other sources.

Studies can be based solely on the secondary data, without a need for the primary data. However,
the opposite is not true i.e. no research can be completed only using primary data and secondary
data collection and analysis is compulsory for all dissertations.

I have chosen PRIMARY DATA in my project.

Sampling Procedure

The theory of sampling is as follows:

1. Researchers want to gather information about a whole group of people (the population).

2. Researchers can only observe a part of the population (the sample).

3. The findings from the sample are generalized, or extended, back to the population.

Sampling is a principle that specifies the conditions and guides the process of selecting the
members of population to participate in the study and to contribute as sources for primary data. The
choice of sampling method determines the accuracy of research findings, reliability and validity of
the study and has immense implications on the overall quality of the study.

Sampling Method:

Non-probability Sampling: Sample does not have known probability of being selected as in
convenience or voluntary response surveys.

Sample Frame:
The sample frame basically contains those people who earns money at regular interval of time such
as:
• Employed in a job
• Self employed
• Earning from business
• Commission earners etc.
Sample size:
The sample size would be 50 people staying in Delhi NCR. The responses would be derived from
questionnaire.
 Chapter-IV: Data Analysis and Interpretation

WEALTH GAIN PLAN

Eligibility Criteria:
!

Criteria Minimum Maximum

! ! !

Age at entry 5 years 60 years (as on last birthday)

Age at maturity of plan 18 years 74 years (as on last birthday)
Policy Term (PT) 10 / 15 / 20 years
Premium Payment Term For ages below 50 years : 5 / 10 / 15/ 20 years For age 50
(PPT) years and above : 10 / 15/ 20 years
Premium Payment Frequency
Monthly and Annually
(PPF)
Monthly – Rs. 2,500 Yearly
Premium Amount
Yearly – Rs. 30,000 Monthly

Premium
Max Premium
Payment Term
5, 10 10,00,000 p.a.
15, 20 6,00,000 p.a.

Premium Payment
Max Premium
Term
5, 10 83,000 p.m.
15, 20 50,000 p.m.
Key benefits of wealth gain plan
Waiver of Premium on Disability:
In case of total and permanent disability of the Life Assured during the premium paying
term provided the policy is in force

i. Future premiums will be paid by the company on their respective due dates

ii. The life cover continues till end of policy term

iii. Guaranteed Loyalty Additions will continue to be added as scheduled. All applicable
charges excluding disability charge will continue to be deducted.

iv.Applicable fund value including guaranteed loyalty additions will be paid on maturity

The benefit shall be payable if the disability occurs within 180 days of the occurrence of
accident or sickness.

In case of the Life Assured is a child, this benefit will cover child post Life Assured
attaining age 18. The disability charges will be deducted thereafter only.

In case of death of insured person while the waiver of premium on disability is activated,
the Death Benefit will be paid to the beneficiary and the policy will terminate.

Flexibility to manage investments:

You stay in complete control of your investments with the flexibility to align them as per
your needs and priorities; and also re-align them if and when you wish to do so. You have
choice of 8 investment fund offerings that allow you to invest your money as per your
risk-return appetite. Plus you can also switch between funds any number of times free of
charge or redirect premiums to maximize returns as per your changing financial needs.

Guaranteed loyalty additions:

Get rewarded for staying invested in the long term with guaranteed loyalty additions at
the end of the 10th policy year and every 5 years thereafter. This is 1% of the average
fund value in your investment account, in the last 36 months preceding the guaranteed
loyalty addition date. In case you have invested in multiple funds the guaranteed loyalty
additions will be added to each fund in the same proportion as the fund value in each fund
bears to the total fund value.

Maturity benefit:
Maturity benefit is equal to the fund value including total guaranteed loyalty additions in
your investment account on the date of maturity provided the policy is in force. Once the
maturity benefit is paid out, the plan terminates

Death benefit:
In case of death of insured person during the policy term provided the policy is in force,
the Death Benefit will be paid to the beneficiary. Death Benefit payable shall be higher
of:

Death Sum Assured,


Fund Value or

105% of the Total Premiums Paid

Death Sum Assured is higher of:

10 times the Annualized Premium or

0.5 x Policy Term x Annualized Premium, where, Annualized Premium is premium

payable in one year selected by the Policyholder at the inception of the policy.

Total Premiums Paid for this purpose shall be (Annualized Premium X Number of years
for which premiums have been paid)

On payment of Death Benefit, the policy will terminate and all rights, benefits and
interests under the policy will stand extinguished.

Tax benefits:
You also enjoy 2 tax benefits when you invest in this plan:

Under Section 80C of the Income Tax Act, 1961, the premiums that you pay are eligible
for deduction. For the Financial year FY 2017 – 18 deduction can be claimed under
Section 80CCE up to Rs. 1,50,000 for the total payments, contributions made under
Sections 80C, 80CCC and 80CCD.

Under Section 10(10D) of the Income Tax Act, 1961,

the benefits you will receive under your policy will qualify for tax exemption.

Please note that tax laws change from time to time. Hence you are advised to consult your
tax advisor for determination of tax benefits applicable to you.

1.Equity Growth Fund :

Investment Objective and Strategy Asset Category Allocation

! ! !
Equity Growth Fund invests in listed stocks Cash and Money
0 – 50%
and aims to generate high returns by picking Market
stocks that have growth prospects. It aims to Equities and Equity-
diversify risk by investing in large-cap as 50 – 100%
linked instruments
well as mid-cap stocks and across multiple Returns and Risk
sectors.

The fund will usually have a high proportion

of investments in equities and equity-linked
instruments other than in market conditions The returns are likely to be high but the
that warrant diversification into cash and risk is also high.
money market.

Fund Management Charge: 1.35% p.a.

2. Midcap Fund:

Investment Objective and Strategy Asset Category Allocation

! ! !
Cash and Money
Midcap Fund invests in midcap stocks with 0 – 50%
Market
attractive growth prospects. It aims to
diversify risk by investing in large cap as Mid-cap Stocks 50 – 100%
well as in cash and money market Large-cap Stocks 0 – 50%
investments when required. Returns and Risk
The returns are likely to be high but the
Fund Management Charge: 1.35% p.a.
risk is also high.

3. Bond Fund:

Investment Objective and Strategy Asset Category Allocation

! ! !
Bond Fund invests in fixed income and Fixed Income
money market investments and aims to Investments Cash 20 – 100% 0 – 80%
generate returns from interest coupons and and Money Market
opportunities offered by changing yield Returns and Risk
curve. The duration of the underlying
 curve. The duration of the underlying
portfolio may be high or low depending upon
the market conditions.

The fund may use derivatives to meet its The returns are likely to be moderate and
objective to the extent permitted by the the risk is also moderate
applicable guidelines.

Fund Management Charge: 1.35% p.a.

4. Income Fund :

Investment Objective and Strategy Asset Category Allocation

! ! !
Income Fund invests in fixed income and Fixed Income
money market investments that carry low or Investments Cash 25 – 100% 0 – 75%
medium market risk with the duration of the and Money Market
underlying portfolio being medium. Returns and Risk
The fund may use derivatives to meet its
objective to the extent permitted by the The returns are likely to be related to
applicable guidelines. short-term interest rates and the risk is
low.
Fund Management Charge: 1.35% p.a.

5. Pure Fund :

Investment Objective and Strategy Asset Category Allocation

! ! !
Pure Fund invests in Money Market and Cash and Money
0 – 20%
Equity and Equity linked instruments. The Market
investments are made in those companies that Equities and Equity-
do not belong to certain sectors engaged in 80 – 100%
linked instruments
activities which are considered harmful for Returns and Risk
society at large and aims to generate high
returns by picking stocks with medium to
long term growth prospects.

Examples of activities considered harmful to The returns from the Pure Fund are likely
society include gambling, speculative to be high but the risk is also high.
investments, tobacco and alcohol.

Fund Management Charge: 1.35% p.a.

6. Aggressive Asset Allocator Fund :

Investment Objective and Strategy Asset Category Allocation

! ! !
Aggressive Asset Allocator fund aims to Fixed Income 0 – 50%
generate returns by taking asset allocation Money Market 0 – 50%
decisions between money market, fixed
Equity 50 – 100%
income and equity within the specified range.
Equity investments would be made with aim Returns and Risk
to generate high returns by picking stocks
that have growth prospects. The possible returns are high but the risk
is also high.
Fund Management Charge: 1.35% p.a.

7. Moderate Asset Allocator Fund:

Investment Objective and Strategy Asset Category Allocation

! ! !
Fixed Income 50 – 100%
Moderate Asset Allocator fund aims to
generate returns by taking asset allocation Money Market 0 – 50%
decisions between money market, fixed Equity 0 – 50%
income and equity within the specified range. Returns and Risk
Equity investments would be made with aim The possible returns are high but the risk
to generate high returns by picking stocks is also the high. However, the returns and
that have growth prospects. risks may be lower than Aggressive Asset
Fund Management Charge: 1.35% p.a. Allocator fund in view of lower exposure
to equity assets.

8. Cautious Asset Allocator Fund:

Investment Objective and Strategy Asset Category Allocation

! ! !
Cautious Asset Allocator fund aims to Fixed Income 75 – 100%
generate returns by taking asset allocation Money Market 0 – 25%
decisions between money market, fixed
Equity 0 – 25%
income and equity within the specified range.
Equity investments would be made with aim Returns and Risk
to generate high returns by picking stocks The possible returns are moderate but the
that have growth prospects. risk is also moderate in view of lower
Fund Management Charge: 1.35% p.a. exposure to equity assets.

Note: Fixed Income Investments include Dated Central Government Securities, State
Development Loans, Miscellaneous GOI Paper like Oil Bonds, UTI bonds, Term Deposit
with Banks, Bonds, Debentures, Infrastructure Debt Funds and Asset Backed Securities
or any other instrument as notified by IRDAI from time to time.

Equity linked investments are investments in securities which are in the nature of equity
instruments out of instruments listed under Section 27 A (1) of Insurance Act 1938 or in
Schedule I of IRDAI (Investment) Regulation, 2016 or as amended from time to time.
Currently such instruments are Preference shares, Equity Shares with differential voting
rights (DVRs) and convertible debentures of less than 1 year maturity.

Systematic Allocator facility: This tool is specially

designed to cater to the key needs of balancing growth and safety on investments. As your
Wealth Gain nears maturity, it becomes essential to ensure the wealth accumulated over
the years is not risked by some sudden drop due to the unfortunate market fluctuations.

Systematic Allocator is a programmed investment solution in which the fund mix

becomes more conservative (i.e. more debt-oriented with an attempt to reduce the risk of
loss) as the investment goal comes closer to fulfillment.

As per this strategy, your funds will be proportionately invested in Equity Growth Fund
(a high risk fund) and Income Fund (a low risk fund) based on the balance time to
maturity of your plan (end of your policy term). As your plan approaches maturity, funds
will be proportionately allocated to the Income Fund from the Equity Growth Fund. By
reducing the investment in Equity Growth Fund, the risk of a sudden drop in the equity
market affecting your accumulated fund value reduces.

Balance time to maturity (in years, rounded up to the nearest integer) of your plan is used
to determine the proportion of allocation to the Equity Growth Fund and the Income
Fund. This proportion is pre-defined by the Systemic Allocator "Glide Path". It is the
proportion allocated to the Equity Growth Fund and Income Fund based on the time
remaining for the plan to attain maturity as shown in the table below, the premiums will
be allocated and the Fund Value will be rebalanced at each policy anniversary as per
Glide Path:

Balance time for the plan to Proportion allocated to the Proportion allocated to the
attain maturity(in years) Equity Growth Fund Income Fund
1 5.00% 95.00%
2 10.00% 90.00%
3 15.00% 85.00%
4 20.00% 80.00%
5 25.00% 75.00%
6 30.00% 70.00%
7 35.00% 65.00%
8 45.00% 55.00%
9 50.00% 50.00%
 10 55.00% 45.00%
11 60.00% 40.00%
12 65.00% 35.00%
13 70.00% 30.00%
14 75.00% 25.00%
15 and above 80.00% 20.00%

Charges associated with the plan:

Premium Allocation Charge:

The premium allocation charge is deducted from the premium paid and the balance is
invested in investment options chosen by the policy holder.

Premium allocation charges as a percentage of premiums are given below:

term. The charge will be subject to a maximum of `6,000 p.a. It will be deducted on a
monthly basis of 1/12th of the annual charge by cancellation of units.

If you buy this plan Online, Policy administration charge as a % of annual premium will
be 1.75% p.a. throughout the policy term. The charge will be subject to a maximum of
Rs. 6,000 p.a.

Mortality Charges:
At the beginning of each policy month we will calculate the mortality charges for the
policy. The mortality charge is 1/12th of the mortality rates for the age as on last birthday,
at the time of deduction of the mortality charge, multiplied by the sum at risk divided by
one thousand. The sum at risk, if any, is the amount by which the death benefit exceeds
the fund value.

If the total fund value including guaranteed loyalty addition is higher than the death
benefit then the sum at risk will be nil and we will not deduct any mortality charge.

We will deduct the mortality charge from the fund value by cancelling units.

Mortality charges (excluding Goods & Services tax and cess as applicable) for sample
ages of a healthy male are as tabulated below:
Allocation Charge ( % of Premium)
Policy Year Charge (Per annum)
1 3.00%
2-5 1.50%
6+ 1.00%

You get discount on Premium allocation charge if you buy this plan Online

Allocation Charge for Online ( % of Premium)

Policy Year Charge (Per annum)
1-5 1.50%
6+ 1.00%

Policy Administration Charge:

Policy administration charge as percentage of annual premium is 3.5% p.a. throughout the
policy
16

Age Rate Age Rate Age Rate

20 0.94 30 1.11 40 1.96

Advantage Women: A woman life insured gets additional discount on mortality charges

Waiver of Premium on Disability Charge:

At the beginning of each policy month we will calculate the disability charges for the
policy. The monthly disability charge is 1/12th of the disability rates for the age as on last
birthday, at the time of deduction of the charge, multiplied by the sum at risk divided by
one thousand. The sum at risk, if any, is equivalent to the amount of outstanding future
premiums payable in the plan. We will also deduct Goods & Services tax and cess as
applicable to the Disability Charge from the fund. After the end of PPT, no Disability
charge will be levied. If the Disability is triggered and premiums are being paid by the
company, no further disability charge will be deducted from the policy.

The sample disability rates for a health male are as under.

Fund Management Charges:

Fund management charges are 1.35% p.a. for all the investment funds available. Fund
management
charges are deducted on a daily basis of 1/365th of the annual charge while determining
the unit price.

Policy Discontinuance Charge:

Criteria Minimum Maximum
Age at Entry

Insured Person(s)

18 years 54 years
Parent, Guardian, Grand
parent
A ained age at Maturity of
28 years 64 years
Insured Person(s)
Policy term 10 years 25 years
Premium Payment Term 5 years Up to the policy term
Premium Payment Mode Annual
Premium Amount ` 25,000 annually ` 95,000 annually

Sum Assured is fixed as per the below criteria

For insured person of age below 45 years:

Higher of

• 10 mes the Annual Premium 


• 0.5 x Policy Term x Annual Premium 


For insured person of age 45 years and above: 

Sum Assured Premium Payment Term less than 8: • Higher of 7
mes Annual Premium 


• (0.25 x Policy Term x Annual Premium)

Premium Payment Term equal or greater than 8:

• Higher of 10 mes Annual Premium 


• (0.25 x Policy Term x Annual Premium)

This charge is applicable only when the policy is discontinued and is based on the policy
year in which the policy is discontinued.

Policy year in which the

Premium discontinuance charge for premium above `25,000/-
policy is discontinued
Lower of: 6.0% of

1
(AP or FV/ policy account value) subject to maximum of `6,000/-
Lower of: 4.0% of

2
(AP or FV/ policy account value) subject to maximum of `5,000/-
Lower of: 3.0% of

3
(AP or FV/ policy account value) subject to maximum of `4,000/-
Lower of: 2.0% of

4
(AP or FV/ policy account value) subject to maximum of `2,000/-
5 onwards Nil

Age Rate Age Rate Age Rate

20 0.21 30 0.19 40 0.26

AP – annualized premium

FV – fund value on date of discontinuance

In addition to the above listed charges, Goods & Services tax and cess as applicable to all
charges as per extant tax laws, will be applicable.

Wealthsurance Future Star Plan

A Unit-linked Plan designed to help you build a corpus for your child’s future

Life Cover benefit with immediate lump sum payout upon death of the insured parent,
plus policy con nuance with waiver of

the due future premiums

Investment choice of 9 Fund offerings designed to appease different risk-return appetites

Tax Benefits- on the premiums paid and the benefits received

Life Cover for the parent

Choice of 2 investment management options to grow and manage the corpus

Guaranteed Loyalty Additions for long-term investments

Fund Name Investment Pattern Allocation Risk - return Profile

Equity Growth Equities and Equity-

50%-100%
Fund: linked Instruments

Invests in listed stocks

and aims to generate
high returns by
picking stocks that
have growth prospects.
It aims to diversify the
risk involved by
investing in large cap
as well as the mid cap The returns from the
stocks, and across Equity Growth Fund
multiple sectors. The are likely to be high
fund will usually have Cash and Money 0%-50% but the risk is also
a high proportion of Market high
investments in equities
and equity-linked
instruments other than
in market conditions
that warrant
diversification into
cash and money
market.

Fund Management
Charge: 1.35%

Large Cap Stocks 0%-50%

Midcap Fund:
Mid Cap Stocks 50%-100%
Invests in mid cap
stocks with attractive
growth prospects. It
aims to diversify risk The returns from the
by investing in large Midcap Fund are
cap as well as in cash likely to be high but
Cash and Money
and money market 0%-50% the risk is also high.
Market
investments when
required.

Fund Management
Charge: 1.35%
Fund Name Investment Pattern Allocation Risk - return Profile
Bond Fund : Cash and Money
0%-80%
Market
Invests in fixed income
investments and money
market. It aims to
generate returns from
interest coupons and the
opportunities in a
changing yield curve.
The duration of the
underlying portfolio The returns from the bond fund
may be high or low are likely to be moderate and the
Fixed Income risk is also moderate.
depending on the 20%- 00%
Investments
market conditions.

The fund may use

derivatives to meet its
objective to the extent
permitted by the
applicable guidelines.

Fund Management
Charge: 1.35%
Income Fund: Cash and Money
0%-75%
Market
Aims to generate
returns by investing in
fixed income
investments and money The returns from the income
market that carry low or fund are likely to be related to
medium market risk Fixed Income short term interest rates and the
with the duration of the Investments 25%-100% risk is also low.
underlying portfolio
being medium.

Fund Management
Charge: 1.35%
Liquid Fund:

Invests in overnight The returns from the liquid fund

money and other money Money Market, Cash are likely to be related to money
100%
market instruments. and Short-term Debt market rates and the risk is also
low.
Fund Management
Charge: 1.35%
What is the Eligibility for the plan?

The Eligibility criteria for investing in Wealthsurance Future Star are tabulated below for
easy reference:

All ages are as per their last birthday

What are the key benefits of Wealthsurance Future Star ?

Wealthsurance Future Star is a high-power investment vehicle that comes with a host of
dynamic features designed to give you an enjoyable drive along the financial route of life.
Drive it slow and steady or race it – you are at its steering wheel all through.

Plan as per your Needs

You get the flexibility to choose:

Premium Amount: Starting from a minimum of `25,000 per annum, you decide the annual
investment for your child.

Premium Payment Term: Choose to pay your premiums for a limited period or for the en
re policy term.

Invest your money your way

You are spoilt for choice with 9 investment fund offerings that allow you to invest your
money as per your priorities and risk appetite.

Choose from our Investment Management options

You may self manage your investments if you like or leave it completely to our team of
experts. An additional op on is the Systematic Allocator facility which balances your fund
alloca on neatly between the aggressive and conservative funds for the twin benefits of
growth and safety.

Stay invested and gain

Receive Guaranteed Loyalty Additions as a reward for being a long term investor.

Life Cover op on to secure your child’s dreams

With Wealthsurance Future Star, you secure your child’s dreams financially. This plan
comes with a life cover which ensures that in the unfortunate scenario of the insured
parent not being alive, the child will get financial support with an immediate death
benefit and the policy continuation with complete waiver on the due future premiums.

Tax Benefits

Tax benefits under section 80 C and 10 (10D) are applicable as per provisions of the
Income Tax Act, 1961.

The investment funds available under this option are as tabulated

CHAPTER 5 FINDINGS

BCG MATRIX OF THE PRODUCTS:

The BCG (Boston Consulting Group) matrix is a portfolio planning model in which
company’s business unit is classified into four categories based on the combinations of
market growth and market share. So, considering IDBI Federal, in the agency model,
there are five products which can be classified into four categories in BCG matrix:

Question Mark - The company has recently launched 7 pay Guaranteed Income Plan.
This product is currently in the introduction stage as the performance of this product is
still unpredictable in the market.

Star Product - The maximum revenue generating product are GWP (Guaranteed Wealth
Plan) and childsurance. The overall sale volume is increasing at an increasing growth
rate. Compared to other insurance companies’ guaranteed plans, IDBI provides better
return on survival.

Cash Cow - Here, Endowment Plan or Lifesurance Savings Plan exists. It is the all-time
saleable product of the company. This product is mostly preferred by the majority of
customers.

Dog - ULIP (Unit Linked Insurance Plan) is currently exists in declining stage. But it
has the capacity to provide highest return to the customer and this product is linked
with the share market and other debt instruments. The company needs to make either,
aggressive selling or some modification or both in the product.
SWOT ANALYSIS OF THE COMPANY

• Brand Name

• Backed by two major banks i.e.,IDBI bank and

Federal bank.

• 1st company to reach its BEP within a short

period of time of 5 years.

• Saves advertisement costs which provide the

STRENGTHS company to offer products at a lower cost
than other life insurance companies of similar
plans.

• Low awareness due to no advertisement

• New entrants in the sector

• Small employee base

WEAKNESSES • Less number of products

• Growing economy

• New products and services

• Uncovered rural areas

OPPORTUNITIES • Around 15% of the population is insured

• Tough competition from the market leader LIC.

• Growing competition.

THREATS • Tax change

From the above chart it can be determined that majority of the people involves into
investment for obtaining returns. Along with returns, people also seek to make Savings to
meet their future needs.

From the above chart it can be determined that people who save 0 to 10% of their annual
income is for starting up of a new business.
From the above chart it can be determined that maximum people prefer balanced
structure while making any investment. Moreover, graduates obtain high risk appetite.

People mainly go for monthly payment mode which maintains a balance in expenditure
and savings.
 Products of insurance preferred by people
20
20

17
15
15
No. Of people

10

5
5

0
Life Insurance Child Insurance Term Plan Guaranteed Plan ULIP

It is clear that people prefer ULIP more than other products.

CHAPTER 6 CONCLUSIONS AND SUGGESTIONS

Conclusion

1. While there is a competition in every sector, economy brings in major changes in

customer expectations, the insurance industry has experienced a few unique aspects,
such as regulation-inspired efforts to educate insurance buyers and a vast change of
skills and capabilities of the intermediaries involved in the distribution.

2. With respect to ULIP, potential buyers are drivers of buying a policy for one or more
of these 3 major reasons: security of money invested, saving for one or more specific
purposes and the availability of tax benefit but at the end customers realise that in
year 1 more than 50% of their money is utilised in the charges.

3. The challenge for the company is to address the motivating factors of the customers
and come up with the genuine solutions.

4. The potential buyer primarily expects that the saving should be a painless process and
that the money saved should be absolutely safe. The challenge is to provide not only
convenient payment option, but also mechanisms that could offer some measure of
protection and relief to the customer if he is forced to disrupt the payment
arrangement for unforeseen reason.

5. On the issue of customers’ perception of security of the money invested, there are 2
important aspects. One is, how the features of the insurance contract are put across
the buyer (whether traditional or ULIP) and second is, how to address effectively, the
question about dependability of the new generation companies but potential new
insurance buyers raise during sales calls. But the insurance company and the
regulator needs to address this behavioural challenge very actively.

6. Instances of customer requiring agents to arrange for loans against their policies or
change nominations etc. are rare. Therefore companies need to gear themselves to
provide high service standards directly.

7. One aspect of customer service is claim payment record.

8. The threat of new entrants into insurance sector have expanded the product segment
to meet different level of requirements of customers. It has brought greater choice to
customers.

9. IRDA is also playing a very comprehensive role by regulating norms, mandatory to

private players, which increases confidence of customers in the private companies.
Suggestions

1. The first and foremost task of every insurance company should be to tap the young
crowd of age 18-30 and convince them that buying an insurance policy is necessary
to secure them from future financial crises.

2. More flexibility should be allotted in plans and most benefit should be in favour of
the customer.

3. IDBI Federal life insurance company Ltd. should opt for advertisements as it plays a
major role in creating awareness among the customers. Moreover, as friends and
family members are major influencers of the customers, the advertisement should be
family and friend centred.

4. A policy which offers benefits to the whole family should be made in order to cater
the needs of the customers.

5. The company needs to reach out masses through social media (Facebook, Twitter,
youtube campaigns), television, radio, newspaper etc.

6. The common problem that every customer has is the premium range, every customer
has different income level thus asks for different premium ranges therefore, the
company should cater needs of every customer in order to tap wide range of
customers.

7. In terms of distribution, theres should be increased number of marketers along with

more channels pf distribution and more intermediaries including agents.

8. The advertisement should cover the benefits of the company’s policy and how the
policies differentiate from that of the other companies products in brief.

9. It should also try to tap rural areas or small town people with lower premium ranges.

10. The company should create an app for mobile store which will provide the customer
with appropriate plan as per their need other than the website.

11. IDBI Federal Life Insurance Company Ltd. has some non performing assets, it should
try utilising those assets even if it is the first ever company to reach its BEP in 5
years.
BIBLIOGRAPHY

I. Books

Khan,M.Y., Indian Financial System, Tata McGraw-Hill Publishing Company Limited,

New Delhi,2007, print

Kothari C.R.,Research Methodology, New Age International (P) Ltd., New Delhi, 2009,
Print

Machiraju, H.R., Indian Financial System, Vikas Publishing House Pvt. Ltd., New Delhi,
2007, print

Mitra, Debabrata, Amlan Ghosh, Life Insurance in India, Abhijeet Publications, Delhi,
2010, print

Sondhi, N.K., Shruti Sondhi, Management of Banking and Insurance, Vrinda Publications
(P) Ltd., New Delhi,2011,print

Gupta, Insurance and Risk Management, Himalaya Publishing House, Mumbai, 2008
Gupta, Legal Aspects of Insurance, Himalaya Publishing House, Mumbai, 2006 Gupta,
Fundamentals of Insurance, Himalaya Publishing House, Mumbai, 2004

II. Articles

Schiro J. James,(2006), “External Forces Impacting the Insurance Industry: Threats from
Regulation”, The Geneva Papers,2006, 31, pp 25-30

Engelander Stefan and Joachim Kolsbach, (2006), “A reliable fair value for insurance
contracts, Geneva papers, 2006, 31,pp 512-527

Nair, K.K. (2009), ”Relavance of ULIPs as a good Investment Tool”, Insurance

Chronicle, Vol-IX (V), pp-43-46.

Ramana, B.V. (2009), ”Global Financial Crisis Impact on Insurance and Reinsurance
Industry”, Insurance Chronicle , Vol-IX (VI), pp-27-31.

Rao, T. and S. Samuel, (2009), “The Indian Insurance Industry Inching Forward”,
Insurance Chronicle, Vol-IX, (I), pp-23-30.

Sinha, R. P. (2009), ”Investments of Indian life Insurance Companies‟, Insurance

Chronicle, Vol-IX (III), pp-48-53.

SIT Journal of Management Vol.2. No. 2. December 2012. Pp.42-56

SIT Journal of Management Vol.2. No. 2. December 2012. Pp.42-56

Venugopalan, K.,V., (2011), “Global Financial Crisis and Life Insurance Sector in India –
A Comparative Study of LIC with Private Sector”, Indian Journal of Commerce and
Management Studies, Vol-II (06), pp-56-61.

Akula, R. and T. Kanchu, (2011), Growth of ULIP Policies in Life Insurance Sector – A
Comparative Study of Traditional and ULIP Policies, Indian Journal of Commerce and
Management Studies, Vol-II, Issue-02, pp-190-200.

III. Websites

http://wikipedia.org

http://irdaindia.org

http://lifeinsurancecouncil.org

http:// licindia.com

http://bimadeals.com

http://www.insurancetimes.in

https://www.idbifederal.com

https://en.wikipedia.org/wiki/IDBI_Federal_Life_Insurance

ANNEXURE:

QUESTIONNAIRE

Name:______________________

Age:________________________

Gender:

Male

Female

Marital Status:

Single

Married

Educational Qualification:

10th Pass

12th Pass

Graduation

Post graduation

Annual Income:

Less than 2.5 lakhs

2.5-5 lakhs

5-7.5 lakhs

7.5-10 lakhs

More than 10 lakhs

How much do you save every year ?

No savings

0-10%

10-20%

20-30%

30-40%

More than 40%

What is your preferred type of investment ?

Fixed deposit

Recurring deposit

PPF

Shares

Mutual funds

Bonds and debentures

Insurance

SIP

Others, please specify__________________

What is your expected return of investment ?

Upto 4%

4 to 8%

8 to 12%

12 to 20%

20 to 30%

More than 30%

How much is your risk appetite regarding investment ?

Low risk high risk

1 2 3 4 5

Do you prefer life insurance policy to reduce your future financial risk ?

Yes

No

Do you have any existing life insurance policy ?

Yes

No

With which company you are currently engaged with ?

 IDBI Federal Life Insurance Company Ltd.

LIC

ICICI Prudential

SBI Life Insurance

Max Life Insurance

Tata AIG

None

others, please specify_____________________

Have you heard about IDBI Federal Life Insurance Company Ltd. ?

Yes

No

If yes, then how do you know about IDBI Federal Life Insurance company Ltd. ?

Advertisement

Reference

Company

Hoarding

Pamphlets

None

Which mode of payment is preferred by you making investment ?

Monthly

Quarterly

Half-yearly

Annually

One-time investment

According to you what is the right time to plan for future finances ?

At the age of 18 years

After getting job

At the age of 25 to 45 years

After retirement

Do you think of life insurance while planning for tax ?

Yes

No

How do you buy an insurance ?

On recommendation of friends and relatives

On recommendation of a professional

Company office

Agents

Bank

Company websites

Policy bazar

Others, please specify_______________________

Which insurance product do you prefer ?

Life Insurance

Child Insurance

Term Plan

Guaranteed Plan

ULIP (Unit Linked Insurance Plan)

After 15 years how much money would you have saved ?

_______________________

Have you thought of starting up your own business coming 15 years ?

Yes

No

If yes, then what will be the capital requirement ?

2-5 lakhs

5-10 lakhs

10-20 lakhs

20-40 lakhs

More than 40 lakhs