A PROJECT STUDY REPORT

ON

FUTURE GENERALI LIFE INSURANCE COMPANY LIMITED

TITLED

ANALYSIS THE KNOWLEDGE OF ULIPS AMONG CUSTOMERS OF FUTURE GENERALI LIFE INSURANCE CO. LTD. IN UDAIPUR.

Submitted in partial fulfillment for the award of degree of Master of Business Administration

PACIFC INSTITUTE OF MANAGEMENT UDAIPUR 2008-10

Guided By: Amit Surana. Sales Manager,

Submitted By: JATIN SHARMA MBA-III Semester

PREFACE For a management student theoretical knowledge as well as practical orientation exposes one self to experiences, one can again be mastering it is best possible time. MBA curriculum has been fine tuned in such away that a student not apply the theoretical knowledge but also gain it in a practical sense. Thus objectives can be attained through application of theory tools concepts and techniques of management. Balanced theoretical and practical knowledge are essential for every student and MBA curriculum is conceived in such away so as to facilities practical purpose. To procure this objective the research undertook the project ANALYSIS THE KNOWLEDGE OF ULIPS AMONG CUSTOMERS OF FUTURE GENERALI LIFE INSURANCE CO. LTD. IN UDAIPUR. Secondary data were collected from websites, and journal of Future Generali life Insurance Co. Ltd. Researcher has tried to satisfy the topic of report of help of facts and findings.

ACKNOWLEDGEMENT I express my sincere thanks to my project guide, Mr. AMIT SURANA , Designation _SALES MANAGER , Deptt FINANCE ., for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge him/her/them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he/she/they had provided to me with all stages of this project. I would also like to thank the supporting staff of Future Generali, for their help and cooperation throughout our project.

JATIN SHARMA Name of the Students

EXECUTIVE SUMMARY

Future Generali is a joint venture company, formed by the Future Group and The Generali Group. Future Generali Life combines the Future Groups pre-eminent leadership position in India and The Generali Group has been a leading provider of insurance and financial services in the global market for nearly two centuries. As a part of my MBA course curriculum, I joined my summer training at Future Generali regarding the concept of insurance, especially in respect to ULIP. With the varieties of products being offered by all insurance companies, now a days Unit Linked Insurance Plans (ULlP) are more and more getting popularized among the investors in the stock market as well as in the individuals. Reason being in a very short span of time ULIP has given very good returns with insurance cover benefit from the market as compared to other investment options. After having a detailed study of the various types of funds of ULIP offered by company in the market, I came to know about the knowledge of the customers of Future Generali Lifes Unit Linked Insurance Plan. Later the stage, company assigned me the project on Analysis the knowledge of ULIP among the customers of Future Generali Life Insurance Co. Ltd. in Udaipur. The objective of the study was:To find out the Knowledge of ULIPs Among the Customers of Future Generali Life Insurance Co. Ltd. In Udaipur. Observation was the basic approach that I used in my study. My research was divided into types of data1. Primary data 2. Secondary data The primary data was collected using questionnaire and the sample size being of 80. While the secondary data was obtained from Brochures, Fact Sheet, companys site. Analysis of collected data was made to achieve the pre-determined objective. During the survey, it was found that most of customers had the knowledge regarding unit linked insurance plans but they have not enough knowledge about ULIPs investment portfolio. As the technology is advancing, the lifestyle of people has changed and the need to save the future has been felt mostly by the persons. The survey reflects that all the respondents do invest their money in Unit Linked Insurance plans for future safety. 4

It was a learning experience for me. I came in the close touch with the market trend and learned about the various competitive advantages to be achieved in the market. Finally, I submitted my report and it was really a great corporate exposure through this summer training into the organization named Future Generali Life Insurance Co. Ltd.

CONTENT

Chapter 1. 2. 3. 4. 5. 6.

Particular OVERVIEW OF INSURANCE INTRODUCTION OF THE COMPANY INTRODUCTION OF ULIP RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION CONCLUSION SUGGESTION LIMITATION 7

Page No, 19 28 38 41 51 52 52 53 58

7. 8.

APPENDIX BIBLIOGRAPHY

CHAPTER - 1 OVERVIEW OF INSURANCE

DEFINITION OF INSURANCE Insurance is a contract between two parties - the insurer (the insurance company) and the insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of "premium". INTRODUCTION TO INSURANCE Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, is exchange for a premium. The Act, system or business of insuring property, life, ones person etc against loss or harm arising in specified contingencies as fire, accident, death ,disablement ,or the like in consideration of a payment proportionate to the risk involved. The business of insurance is related to the protection of the economic value of assets. Every asset has a value. The asset would have been created through the efforts of the owner, because he expects to get some benefits from it. It is a benefit because it meets some of his needs. The benefit may be an income or in some other form. In the case of a factory or a cow, the product generated by it is sold and income is generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Both are assets and provide benefits. BRIEF HISTORY OF INSURANCE Insurance has been known to exist in some form or other since 3000 BC.The Greeks had started benevolent societies in the late 7th century AD,to take care of the funeral and families of members who died.The friendly societies of England were similarly constituted. The Great fire of London in 1666,in which more than 13000 houses were lost, gave a boost to insurance and the first fire insurance company,called the Fire Office , was started in 1680. The origin of insurance business as in vogue at present,is traced to the Lloyds Coffee House in London. Traders who used to gather in the Lloyds coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. In India ,insurance began in 1818 with life insurance being transacted by an English company, the Oriental Life Insurance Co. Ltd.. The first Indian insurance company was the Bombay Mutual Assurance Society Ltd,formed in 1870 in Mumbai. This was followed by the Bharat Insurance Co. in 1896 in Delhi, the Empire of India in 1897 in Mumbai , the United India in Chennai, the National Indian and the Hindusthan Cooperative in Kolkata. 8

Later, were established the Cooperative Assurance in Lahore, the Bombay Life, the Indian Mercantile, the New India and the Jupiter in Mumbai and the Lakshmi in New Delhi. These were all Indian companies started as a result of the swadeshi movement in the early1900s. By the year 1956, when the life insurance business was nationalished and the life insurance corporation of India was formed on 1st September 1956, there were 170 companies and 75 provident fund societies transacting life insurance business in India. After the amendments to the relevant laws in 1999, the L.I.C did not have the exclusive privilege of doing life insurance business in India. 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 was consolidated and amended by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies were 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. 5 crores from the Government of India. BEGINNING OF INSURANCE IN INDIA Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers andprovident societies under one nationalized monopoly corporation and LIC was born. Nationalization was justified on the grounds that it would create much-needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State led planning and development. The (non-life) insurance business, however, continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance 9

Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC). HOW INSURANCE WORKS There are certain principles, which make it possible for insurance to remain a preferred and fair arrangement. The first is that it is difficult for any one individual to bear the consequences of the risks that he is exposed to. It will become bearable when the community shares the burden. The second is that the peril should occur in an accidental manner. Nobody should be in a position to make the risk happen. In other words none in the group should set fire to his assets and ask others to share the loss. This would be taking unfair advantage of an arrangement put into place to protect people from the accident risks they are exposed to. The occurrence has to be random, accidental and not the deliberate creation of the insured person. example : In a village ,there are 400 houses ,each valued at Rs.20000.every year, on an average ,4 houses get burnt ,resulting into a total loss of Rs. 80000. if all the 400 owners come together and contribute Rs.200 each, the common fund would be Rs.80000. this would be enough to pay Rs.20000 to each of the 4 owners whose houses got burnt. Thus the loss of Rs. 20000 each of 4 owners is shared by 400 house owners of the village,bearing Rs.200each. This works out to 1% of the value of the house which is the same as the probability of risks(4 out of 400 houses). ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT
For economic development investments are necessary. Investments are made out of savings. A

life insurance company is major investments for economic growth.

instruments for the mobilization of savings of people ,

particularly from the middle and lower income groups. These savings are channeled into
All good life insurance companies have huge funds, accumulated through the payments of small

amounts of premia of individuals. These funds are invested in ways that contribute substantially for the economic development of the countries in which they do business.
Apart from investments ,business and trade benefit through insurance. Without insurance trade &

commerce will find it difficult to face the impact of major perils like fire, earthquake, floods, etc. financiers ,like banks,would collapse if the factory ,financed by it is reduced to ashes by a terrible fire. Insurers cover also the loss to financiers if their debtors default. ADVANTAGE OF LIFE INSURANCE 1. SUPERIOR TO ANY OTHER SAVINGS PLAN 10

Unlike any other savings plan, a life insurance policy affords full protection against risk of death. In the event of death of a policyholder, the insurance company makes available the full sum assured to the policyholders' near and dear ones. In comparison, any other savings plan would amount to the total savings accumulated till date. If the death occurs prematurely, such savings can be much lesser than the sum assured. Evidently, the potential financial loss to the family of the policyholder is sizable. 2. ENCOURAGES AND FORCES THRIFT A savings deposit can easily be withdrawn. The payment of life insurance

premiums, however, is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. 3. EASY SETTLEMENT AND PROTECTION AGAINST CREDITOR A life insurance policy is the only financial instrument the proceeds of which can be protected against the claims of a creditor of the assured by effecting a valid assignment of the policy. 4. ADMINISTERING THE LEGACY FOR BENEFICIARIES Speculative or unwise expenses can quickly cause the proceeds to be squandered. Several policies have foreseen this possibility and provide for payments over a period of years or in a combination of installments and lump sum amounts. 5. READY MARKETABILITY AND SUITABILITY FOR QUICK BORROWING A life insurance policy can, after a certain time period (generally three years), be surrendered for a cash value. The policy is also acceptable as a security for a commercial loan, for example, a student loan. It is particularly advisable for housing loans when an acceptable LIC policy may also cause the lending institution to give loan at lower interest rates. 6. DISABILITY BENEFITS Death is not the only hazard that is insured; many polices also include disability benefits. Typically, these provide for waiver of future premiums and payment of monthly installments spread over certain time period. 7. ACCIDENTAL DEATH BENEFITS Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident. 8. TAX RELIEF Under the Indian Income Tax Act, the following tax relief is available a) 20 % of the premium paid can be deducted from your total income tax liability. 11

b) 100 % of the premium paid is deductible from your total taxable income. When these benefits are factored in, it is found that most polices offer returns that are comparable or even better than other saving modes such as PPF, NSC etc. Moreover, the cost of insurance is a very negligible. Assets are insured, because they are likely to be destroyed, through accidental occurrences. Such possible occurrences are called perils. Fire, floods, breakdowns, lightning, earthquakes, etc, are perils. If such perils cab case damage it the asset, we say that the asset is exposed to that risk. Perils are the events. Risks are the consequential losses or damages. The risk to an owner of a building, because of the peril of an earthquake, may be a few lakhs or a few crores of rupees, depending on the cost of the building and the contents in it. The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is done against the contingence that it may happen. There has to be an uncertainty about the risk. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human being, death is certain, but the time of death is uncertain. In the case of a person who is terminally ill, the time of earth is not uncertain, though not exactly known. He cannot be insured. Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. It only compensates the losses- and that too, not fully. Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non-economic losses are love and affection of parents, leadership of managers, sentimental attachments to family heirlooms, innovative and creative abilities, etc. The mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and make good to the person who lost. All people who send goods by ship are exposed to these risks, which are related to water damage, ship sinking, piracy, etc. Those owning factors are not exposed to these risks, but they are exposed to different kinds of risks like, fire, hailstorms, earthquakes, lightning, burglary, etc. Like this, different kinds of risks can be identified and separate groups made, including those exposed to such risks. By this method, the heavy loss that any one of them may suffer (all of them may such losses at the same time) is divided into bearable small losses by all. In other words, the risk is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all. If a Jumbo 12

Jet with more than 350 passenger's crashes, the loss would run into crores of rupees. No airline would be able to bear such a loss. It is unlikely that many Jumbo Jets will crash at the same time. If 100 airline companies flying Jumbo Jets, come together into an insurance pool, whenever one of the Jumbo Jets in the pool crashes, the loss to be borne by each airline would come down to a few lakhs of rupees. Thus, insurance is a business of "haring". There are certain principles, which make it possible for insurance to remain a fair arrangement. The first is that it is difficult for any one individual to bear the consequences of the risks that he is exposed to. It will become bearable when the community shares the burden. The second is that the peril should occur in an accidental manner. Nobody should be in a position to make the risk happen. In other words, none in the group should set fire to his assets and ask others to share the costs of damage. This would be taking unfair advantage of an arrangement put into place to protect people from the risks they are exposed to. The occurrence has to be random, accidental, and not the deliberate creation of the insured person. The manner in which the loss is to be shared can be determined before-hand. It may be proportional to the risk that each person is exposed to. This would be indicative of the benefit he would receive if he the peril befell him. The share could be collected from the members after the loss has occurred or the likely shares may be collected in advance, at the time of admission to the group. Insurance companies collect in advance and create a fund from which the losses are paid. The collection to be made from each person in advance is determined on assumption. While it may not be possible to tell beforehand, which person will suffer, it may be possible to tell, on the basis of past experiences, how many person, on an average, may suffer losses. INSURANCE AS A SECURITY TOOLS The United Nations Declaration of human Rights 1948 provides that "Everyone has a right to a standard of living adequate for the health and wellbeing of himself and his family, including food, clothing, housing and medical care and necessary social services and the right to security the event of unemployment, sickness, disability, widowhood or other lack of livelihood in circumstances beyond the control." When the bread winner dies, to that extent, the family's income dies. The economic condition of the family is affected, unless other arrangements come into being to restore the situation. Life insurance provides if this did not happen, another family would be pushed into the lower strata creates a cost on society. The lower strata create a cost on society. Poor people cost the nation by way of subsidies and doles and so on. Poor people also cost by way of larger growth in population, poor education and 13

vagaries in behavior of children. Life insurance tends to reduce such costs. In this sense life insurance business is complementary to the state's efforts in social management. Under a socialistic system the responsibility of full security would be placed upon the state to find resources for providing social security. In the capitalistic society, provisions of security are largely left to the individuals. The society provides instruments, which can be used in security this aim. Insurance is one of them. In a capitalistic society too, there is a tendency to provide some social security by the state under some schemes, where members are required to contribute e.g. Social Security Schemes in U.K. In India, social security finds a place in our constitution. Article 41 requires state, within the limits of its economic capacity and development, to make effective provisions for security right to work, to education and to provide public assistance in case of unemployment, old age, sickness, and disablement and in other cases of undeserved want. Part of the state's obligations to the poorer sections is met through the mechanism of life insurance. LIFE INSURANCE VERSUS OTHER NVESTMENTS Most investment options make your money work harder, but there are no substitutes to life insurance. Because only a life insurance policy gives you both - risk cover against your life, as well as returns on your money invested. Life insurance allows long tem savings to be made in a relatively painless manner because of the low and convenient investments made through premiums. Moreover, it encourages 'forced thrift' which means the insured is made to pay premiums and save money, which he/she may not do in the regular course of life. Life insurance cannot be compared with any other form of investment as life insurance gives you a life long benefit and returns on your money when it is most required. Insurance premiums are linked to age of the life insured and the earlier you buy, the lower are the premium requirements. Besides, the money stays invested for a longer time and thereby maximizing your returns through the power of rupee compounding. So, a life insurance policy is an ideal tool to gain security and ensure savings. Most importantly it provides you with that unique sense of security and peace of mind that no other form of investment provides. In the event of death,the settlement is easy. There is a certain amount of compulsion to go though the plan of savings. 14

Creditors cannot claim the life insurance moneys. They can be protected against attachments by courts. There are tax benefits,both in income tax and in capital gains. Marketability and liquidity are better. A life insurance policy is property and can be transferred or mortgaged. Loans can be raised against the policy It is possible to protect a life insurance policy from being attached by debtors. It enhances the existing standards of living. It helps people live financially solvent lives.

LAWS AND REGULATIONS 1. The Insurance Act 1938, which came into effect from 1st july 1939 and was amended in 1950 and latter in 1999, is the principal enactment relating to the business of insurance in India. 2. The constitution of the IRDA by the IRDA Act in 1999,the Controller of Insurance was responsible for the administration of the insurance Act . since 1999 the IRDA has replaced the Controller of Insurance .The Insurance Act vests the IRDA with powers to 3. register insurance companies and also cancel their registrations. Monitor & certify the soundness of the term of life insurance business. Inspect documents of insurers. Appoint additional directors. Issue directions Take over the management of an insurer and appoint administratiors By the end of December 2006,the IRDA had issued more than 25 regulations and also issued several guidelines to insurers on a variety of matters. 4. This Act was the basis for the establishment of the L.I.C as a body corporate consisting of not more than 16 member appointed by the Central Government,one of them being Chairman. 5. This Act passed in December 1999,provided for the establishment of the IRDA to protect the interest of holder of insurance policies to regulate promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. It also sought to amend the insurance Act,1938 the life insurance corporation act,1956 & the general insurance business act,1972. 15

6.

The IRDA is a corporate body. It is advised by an Insurance Advisory Committee consisting of not more than 25 members to represent the interests of commerce, industry, transport, agriculture, agents, intermediaries etc. It replaces the Controller Of Insurance to administer the provisions of the Insurance Act.

7. 8.

The Regulation framed by the IRDA in so far as they affect the working of the agents. Under this act, a consumer as an individual or along with other individual or through a consumer organization can approach the various forums prescribed under the Act for redress in case he is not satisfied with goods or service provided.

9.

The tax laws in India \have always encouraged people to save through life insurance or other instrument by providing relief from tax liabilities.The details provided herein are as on August 2007 when the course was being written. These could change at any time through budget provision or otherwise. The agent should keep himself up-to-date with changes.

10.

Any sum received under a life insurance policy including the bonus addition is exempt from income tax. That means that income tax does not have to be paid on policy claim and surrender amounts. This is subject to the premium being not more than 20% of the SA on any policy during any year.

11.

The income of an assessee is reduced by the aggregate of amounts paid towards insurance premiums contribution to Provident Fund or approved Superannuation Fund,National Savings Certificates etc. up to a maximum of Rs.1 lakh. If premium during any year under any policy exceeds 20% of SA only 20% will be taken into account for this rebate.

12.. 13.

Commuted values of pensions are exempt from income tax. The wealth tax act exempts life insurance policies totally provided premiums are payable for a period of 10 years or more. If the policy term is less than 10 years, proportionate value of the right or interest of the assesse in the policy will be exempted.

14. 15.

Insurance premiums paid under partnership or keyman insurances are allowed as expenses. Section 6 of the Married Women Property Act provides that a policy of insurance effected by any married man on his own life and expressed on the face of it for the benefit of his wife & children , shall be deemed to be a trust for the benefit of his wife & children and shall not be subject to the control if the life assired or his creditors or form part of his estate.

16

16.

The Government of India ever since nationalization of the life insurance business in 1956 has been concerned with the question of providing life insurance cover for people in the rural areas and in the weaker sections of society.

17.

People below the poverty line are included in the expression economically vulnerable or backward classes. The expression other categories of person includes person with disability as defined in the persons and disability act,1995 and who may not be gainfully employed and also includes guardian who need insurance to protect spastic persons with disability.

18.

The IRDA Regulations 2005 provide for the transaction of both general and life micro insurance products for the benefit of small families comprising of husband, wife, dependant parents and a maximum of 3 children. A general micro insurance product is defined as a contract covering health insurance , hut, livestock or tools or any personal accident either on individual or group basis. An agreement that guarantees the payment of a stated amount of monetary benefits upon the

death of the insured. Risk insurance intended as protection against the financial consequences of the death of the insured person, which takes the form of payment of a previously agreed lump sum or pension to a beneficiary, if the insured person dies during the term of insurance. In the case of pure life insurance, without any endowment insurance component, no payments are due if the insured person survives the term of insurance. Insurance is that which provides protection against the economic loss caused by the death of the person insured.

17

CHAPTER 2

INTRODUCTION OF THE COMPANY

COMPANY PROFILE 18

Future Generali is a joint venture between the India-based Future Group and the Italy-based Generali Group. Future Generali is present in India in both the Life and Non-Life businesses as Future Generali India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd. Future Group Future Group, led by Mr. Kishore Biyani, is positioned to cater to the entire Indian consumption space. The Future Group operates through six verticals: Future Retail (encompassing all lines of retail business), Future Capital (financial products and services), Future Brands (all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media spaces). The groups flagship enterprise, Pantaloon Retail, is Indias leading retail company with presence in food, fashion and footwear, home solutions and consumer electronics, books and music, health, wellness and beauty, general merchandise, communication products, E-tailing and leisure and entertainment. The company owns and manages multiple retail formats catering to a wide cross-section of the Indian society and its width and depth of merchandise helps it capture almost the entire consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the company operates through 4 million square feet of retail space, has over 150 stores across 35 cities in India and employs over 15,000 people. The companys revenues for FY 05-06 were Rs. 2017 crore Founded in 1987, as a garment manufacturing company, Pantaloon Retail forayed into modern retail in 1997 with the opening up of a chain of department stores, Pantaloons. In 2001, it launched Big Bazaar, a hypermarket chain, followed by Food Bazaar, a supermarket chain and went on to launch Central, a first of its kind, seamless mall located in the heart of major Indian cities. Some of its other formats include, Collection I (home improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and stationaries), aLL (fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently launched its etailing venture, futurebazaar.com. Some of the groups subsidiaries include Home Solutions Retail India Ltd, Future Bazaar India Ltd and ConvergeM Retail India Ltd, which leads the groups foray into home improvement, etailing and communication products, respectively. Other group companies include, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing. It has also entered joint venture agreements with a number of companies including ETAM group, Gini & Jony, Liberty Shoes, Staples and Planet Sports, a company that owns the franchisee of international brands like Marks & Spencer, Debenhams, Guess and The Body Shop in India. 19

Future Capital Holdings, the groups financial arm, focuses on asset management through real estate investment funds (Horizon and Kshitij) and consumer-related private equity fund, Indivision. It also plans to get into insurance, consumer credit and offer other financial products and services. Future Groups vision is to, "deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner." One of the core values at Future Group is, Indianess and its corporate credo is Rewrite rules, Retain values. GENERALI GROUP Established in Trieste on December 26, 1831, Generali is an international group present in more than 40 countries with insurance companies and companies mostly operating in the financial and real estate sectors. Over the years, the Generali Group has reconstructed a significant presence in Central Eastern Europe and has started to develop business in the principal markets of the Far East, including China and India. Identity Card

Generali Group ranks among the top three insurance groups in Europe and the 30th largest company in the Fortune 500 international ranking, with a 2007 premium income of over 66 billions

High rating assigned by the international rating agencies:

o o o o

A.M. BEST A+ Standard & Poors AA Fitch AA Moodys Aa3

It is present in more than 40 countries It has over 50 millions clients worldwide It has 80,555 employees It has over 398 billions of total assets under management

Vision & Values Vision Statement : "Pledged to provide financial security to all people & enterprises through total insurance solutions" Values :

Respect : for all our stakeholders- employees, customers, for all rules and regulations both internal and external. 20

Indianess : We understand India in all its diversity and different facets and will use for our local understanding to respond to our specific markets, design our products and craft our processes.

Nimbleness : A combination of speed and quality, and ability to overcome all obstacles which come in the way of the achievement of our vision.

"Can Do" : An attitude which demonstrates our passion, entrepreneurship, and positive thinking.

Mallassurance Store

Big Baar e zone Food Bazaar Furniture Bazaar Home Town KB Fair Price Pantaloons

Positioning & Objective Positioning

Knowledge Organization with Leadership Approach One Stop Total Insurance Solutions & Services Provider Customer Centric Model embracing Passion, Convenience and Service Excellence

Objective To provide superior customer service through our knowledge-based business partners and employees supported by innovative products and services. PEOPLE THAT MAKE THE DIFFERENCE 1. MR. G.N. BAJPAI- Chairman-Future Generali Vast experience in capital markets and insurance industry; Ex chairman SEBI, LIC, recipient of many awards including Outstanding contribution to the development of finance from PM Manmohan Singh. 2. Dr. Kim Chai Ooi-Country Manager-Future Generali He is the Country Manager of Future Generali. His previous assignments and important career events include setting up Generali China Joint Venture operations in 2001 and leading it towards achieving the status of Chinas No. 1 Foreign Insurer in 2005. 21

3. MR. JAYANT KHOSLA-MD & CEO Future Generali Life An IIM Ahmedabad alumnus having diverse experience of more than 23 years in MNCs both in India and abroad, held leadership positions at India DHL, Cadbury Schweppes, Coca Cola and Bharti Airtel 4. MR. G.N. AGARWAL-Chief Actuary-Future Generali Life 35 years experience in Life Insurance & Investment. Earlier Executive Director(Actuarial) at LIC, currently President of Institute of Actuaries of India since last 2 years. 5. DR. NIRAKAR PRADHAN,CIO-Future Generali Life PHD and FRM certified, he has over 25 years experience in Banking and Investment management both in India and abroad with SBI group

S.No. Registration Date Number 1 133 Reg.

of Name of the Company

04.09.2007 Future Generali India Life Insurance Company Limited

Products 2008-09 2008-09 2008-09 2008-09 2008-09 2008-09 2008-09 Future Generali India Life Insurance Co. Ltd. Insurance Co. Ltd. Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Insurance Co. Ltd. Insurance Co. Ltd. Group Credit Suraksha 133N005V01 3-Jun-08 Generali 133N006V01 16-Jun-08 133N007V01 16-Jun-08 133L008V01 30-Jun-08 133N009V01 22-Aug-08 133L010V01 25-Sep-08

Future Generali India Life Futute

Immediate annuiy Plan Gratuity Plan Future Sanjeevani Future Pension Plan Pension

Future Generali India Life Future Generali Group

Future Generali India Life Future Advantage Plan Gratuity Unit

Future Generali India Life Future Generali Group 133L011V01 5-Nov-08 Linked 22

Plan 2008-09 2008-09 2008-09 2008-09 Future Generali India Life Insurance Co. Ltd. Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Future Easy ULIP Child Benefit 133L012V01 7-Nov-08 133N013V01 7-Nov-08

Future Generali India Life Future Plan

Future Guarantee ULIP 133L014V01 25-Nov-08 Future Freedom ULIP Future Generali Group Traditional Superannuation Plan Future Generali Group Traditional Encashment Plan Future Anand Plan 133N018V01 1-Jun-09 Leave 133N017V01 13-Mar-09 133N016V01 13-Mar-09 133L015V01 28-Nov-08 1-Apr-09 withdrawn

2008-09

2008-09

2009-10 2009-10 Riders

Future Saral Anand Plan 133N019V01 28-Jul-09

In operation Financial Year Name of Insurer Name of the Rider Rider UIN From (opening date) 2007-08 2009-10 Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Accidental Death Rider 133B001V01 10-Oct-07 Accidental Death Rider 133C001V01 15-Apr-09 Accidental Permanent rider Total & 15-May09 To (closing date) 15-Apr-09

Remarks, if any, IRDA by

2007-08

Disability 133B002V01 10-Oct-07

23

2009-10

Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd. Insurance Co. Ltd. Insurance Co. Ltd. Insurance Co. Ltd. Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd.

Accidental Permanent rider

Total

& 15-May-09 133C002V01 133B003V01 10-Oct-07 133B004V01 10-Oct-07 133B005V01 10-Oct-07 Core 133B006V01 10-Oct-07 133B007V01 10-Oct-07 133B008V01 15-Dec-08 133B009V01 27-Nov-07 Group

Disability

2007-08 2007-08 2007-08 2007-08 2007-08 2008-09 2007-08

Term Assurance Rider

Future Generali India Life Waiver of premium on disability rider Life Guardian rider Illness

Future Generali India Life Critical rider

Future Generali India Life Accelerated Future Generali India Life Group

Critical Accelerated

Illness Rider (Extended) Terminal Illness Rider Rider Group Accidental Partial Permanent Rider Group Accident & Total Disability

Future Generali India Life Group Accidental Death

2007-08

Disability 133B010V01 27-Nov-07

Group

2007-08

Future Generali India Life Sickness Insurance Co. Ltd. Permanent Rider

133B011V01 27-Nov-07

Group

2007-08

Future Generali India Life Insurance Co. Ltd. Future Generali India Life Insurance Co. Ltd.

Group Accidental Total Permanent Rider Group Illness Rider Core Critical Illness Rider 24 133B014V01 27-Nov-07 Group Core Critical Group Accelerated 133B013V01 27-Nov-07 Disability 133B012V01 27-Nov-07 Group

2007-08

2007-08

Future Generali India Life Group Insurance Co. Ltd.

2007-08

Future Generali India Life Insurance Co. Ltd.

Group Extended Critical Illness Rider Illness Rider Linked Linked Linked Critical Life Term Illness (Core) Rider Guardian Rider Assurance Rider 133B016V01 27-Nov-07 133A017V01 6-Jul-09 133A018V01 6-Jul-09 133A019V01 7-Jul-09 Group Accelerated 133B015V01 27-Nov-07 Group

2007-08 2009-10 2009-10 2009-10

Future Generali India Life Group Extended Critical Insurance Co. Ltd. Insurance Co. Ltd. Insurance Co. Ltd. Insurance Co. Ltd. Future Generali India Life Unit Future Generali India Life Unit Future Generali India Life Unit

25

CHAPTER 3

INTRODUCTION OF ULIP

UNIT LINK INSURANCE PLAN A ULIP is a life insurance policy which provides a combination of life insurance protection and investment. ULIPs contribute nearly 50% of the premium for some insurers and more than 85% of the premium for some others. 26

When people see how investments in the capital market have grown over the last few years, they prefer to use their funds in ways that help them to participate in the boom in the capital market. Insurers have developed plans that combine the benefits of life insurance as well as giving various options of participating in the growth of the capital market. Such plans are called linked Insurance plans or ULIPs. In linked policies the SA may be expressed as an integrated benefit, which means that on the happening of the event ,the SA or the value of units in the fund, whichever is higher, is payable. In this case the life cover will reduce as the value of the units increases. As the risk cover decreases the premium adjusted towards the cover will decrease and the amount allocated to investment will increases. FEATURES OF ULIP The policyholder can pay additional premium for investment at any time. Partial or total withdrawal is allowed. Sometimes there are conditions attached. Some insurers, not all, charge a redemption fee in such cases. These policies will not be entitled to any bonus There is no annual bonus, but there may be a loyalty bonus paid at the end

OPTION OF FUNDS Insurers offer policyholders a choice of funds in which their moneys may be invested like Equity Funds: In this type funds, sometimes also called growth funds, there would be more investments in equities which are shares/stocks traded in the stock market. Debt Funds: In this type of funds, also called bond fund, the investments are primarily in Government and Government guaranteed securities and such safe debts and other high investment grade corporate bonds. Money Market Funds: In this type of fund , sometimes also called liquid fund, the investment may be more in short-term money market instruments such as treasury bills, commercial papers , etc. Balanced funds: In this type of funds, the investments are in both equity as well as debts.

All these funds will remain invested in a mix of instruments,the differences being mainly in the proportions in various kind of instruments. One fund may have more of debt instruments, which guarantee a certain fixed return, while another fund will have a larger proportion of equity shares, which may appreciate in value more than debt instruments. Insurers use different names to differentiate between the funds. 27

Insurers allow policyholders to switch their moneys from one fund to another during the term of the policy. Some insurers charge a fee for every such switch. Some others allow a certain numbers of switches free and then charge a fee for every switch thereafter. FLEXIBILITY ULIPs provide a lot of flexibility to the policyholder. The option of switching is one provision that gives the flexibility. Policyholders are also allowed to make a lump sum additional contribution at any time. The risk cover will remain the same, but the amount going into the fund for investment will change. Policyholders may also be allowed to redirect the current premium into any fund, in any proportion ,irrespective of the fund in which the earlier premiums have been invested. This facility allows the policyholder to take advantage of the market conditions, without exercising the switching option. Policyholders may not pay the premium in a year subject to certain conditions. If that happens no new units will be addede to his fund but some units will be reduced to pay for the annual charges for cover, for administration, for fund management, etc. this called premium holiday. The arrangement can also be terminated at any time and the amount in the fund withdrawn. The loss will only be a nominal fee. IRDA GUIDELINE The IRDA has issued guidelines on various matters relating to ULIPs. Some of these are

The limits on SA, and top-up condition Surrender benefit only after 3rd policy anniversary First partial withdrawal only after 3rd policy anniversary SA can be reduced up to the extent of partial withdrawals during 2 years prior to death and after age 60

Lock-in period for each top-up amount, for partial withdrawal, except during last 3 years of contract Death benefits to be guaranteed Maturity benefits may be guaranteed, at levels reasonable in relation to current and long term interest rates scenario Policy to become paid up, if there is default in premium after 3 years 28

No auto cover facility if at least 3 years premium not paid If policy is not revived,surrender value to be paid at the end of 3rd policy anniversary or end of revival period, whichever is later

Net Asset Value (NAV) Value of a fund share = Total value of the fund's assets Number of outstanding Shares This value is calculated daily by the fund. The Net Asset Value (NAV) is applicable at the time of valuation/purchase. Fund Value The fund value is the value of your investment as on a given date. This is influenced by the ups and downs in the Sensex. So Fund Value = Unit Price x Number of Units.

A ULIP STRUCTURE IS AS FOLLOWS:-

29

BENEFITS Of ULIP

ULIP distinguishes itself through multiple benefits that it provides to the consumer. The plan is a one stop solution providing

1. Life protection 2. Investment and saving 3. Flexibility of cover continuance 4. Transparency 5. Extra protection with riders 6. Liquidity 7. Tax planning

1] LIFE PROTECTION:The need for life insurance keeps on changing as shown When we start working When we start a family When our children start a career 30

When we retire Therefore as our responsibilities grow our need for life insurance grows and as these responsibilities are successfully executed the need (insurance) reduces.

2] INVESTMENT AND SAVINGS Each and every one of us wants to create value for himself by proper investment. ULIP provides the client with a option of investing as per personal risk profile and get returns accordingly. There are options of funds where the client can put money in 1.equity market 2.debt market 3.balanced funds with a mix of above two 4.short-term debt market

3) FLEXIBILITY OF COVER CONTINUENCE OPTION Since the insurance is a long-term contract so there are possibilities that a person may not pay the premiums regularly so this option ensures that the life insurance cover continues even if the person is not capable of paying the premiums due to any other commitment. He/she can resume the payment when he feels comfortable.

4] TRANSPARENCY In a unit linked plan the investment, which is denoted through NAV is the real time indicator of the value of the fund. Therefore a policyholder can easily find out the value that a policy has accrued on a certain date. Also the customer is well aware of the charges that he is paying. These charges may be 1.Contribution charges 2.Administrative charges 3.Fund Management Fees 4.Mortality Charges 5.Rider Charges 6.Surrender Charges 31

5] EXTRA PROTECTION Riders provide more protection to the policyholder and ULIP allows addition of riders at nominal cost. The cover may be offered against 1.death due to an accident 2.disability 3.critical illness

6] LIQUIDITY a) During the term partial withdrawals b) This facility makes the ULIP a very practical insurance in current times. Most life insurance products do not provide the policyholder the facility of withdrawing money in case the need arises. Unit linked plans provide you easy access to your money as and when you require. One can redeem the units after a particular period of time as defined by the planas per the need. ULIP allows either partial or full withdrawal without panelizing the policy ho

7] TAX PLANNING 1.Premium payment up to 20% of the sum assured is eligible for tax benefit under section 80C 2.Any amount paid to you will be eligible for tax benefit under section 10(10) D if premium paid in any year does not exceed 20% of the sum assured. With so many tax-planning tools in one plan ULIP turns out to be an intelligent tax-planning tool.

FINANCIAL PLANNING WITH ULIPS

32

In the context of financial planning with ULIP we can see the above cycle where there are four stages namely
1. Define and prioritize goals:- This strategies necessary in determining that what are your goals

1.1. 1.2.

RETIREMENT PLANNING:- taking care of your long retirement years. FAMILY PROTECTION:-to ensure that financial loss to the family is minimized if something happens.

1.3. 1.4.

ASSET CREATION:-creation of physical and financial asset. CHILDRENS HIGHER EDUCATION:- matching the increasing educational expenses.

2 Project income, expenses and investments:- If you are planning for insurance than you should keep in mind the future years inflows that may be lost if something happens to you and if you are planning for retirements then you should make calculations for the annuities that you will require. 3. Risk appetite and Protection needs:- Also the present premiums have to invested according to your risk appetite. Like a young professional can go for a very aggressive approach (above 80% in equities.) whereas a person in his fifties may want regular income even at a lower rate so he may choose debt instruments. 4. Changing lifestyle, changing financial goals:- The goals once defined may or may not last forever so our financial planning should be flexible enough to meet the sudden changes in our requirements. 33

SAVE:This is an activity that helps in asset accumulation. it has both short term and long term perspective. The short-term perspective is putting aside the extra money after expenses into one place like a bank. The long-term perspective is when savings is done while keeping some goals in mind. INVEST:This is an activity that focuses asset creation it involves making money from money. The focus here is on capital growth. This has a long term perspective for example the money which we save after having met our expenses we put in various long term securities to gain returns and thereby creating financial/physical asset. SPEND:This is an activity of using the money for our expenses. This can be done to meet our day-to-day expenses or to meet any exigencies. A part of income goes in spending, which is nothing but protecting our life styles. so the act of spending which is nothing but protecting our life styles. FACTORS TO BE CONSIDERED BEFORE INVESTING IN ULIP: 1. High returns and sustainability The high-decibel advertising campaigns may lead investors to believe that the returns generated over the past few months are sustainable. Nothing could be farther from the truth. To draw a parallel, similar advertisements were put out by mutual funds during the heady days of the market in the mid-1990s. For instance, campaigns with such punch lines as "100 per cent return in 10 months" were common. Investors who entered such funds were left high and dry when the market tanked. 2. Suitability of options ULIP usually offer three schemes: one oriented towards debt and money market instruments, another with a equities, and a third that seeks to achieve a mix of investing in both equities and debt. 3. Fund management style Considering that ULIP are relatively new launches, their short history does not permit an assessment of how they will perform in different phases of the stock market. Even if one views insurance as a long term, commitment, investment, based on performance over such a short time span may not be appropriate. 4. Market timing To maximize returns even during such bullish phases, it is imperative that investors time their entry and exit from the markets. As far as stocks go, returns tends to be compressed over a short timeframe. 34

Staying put too long in a ULIP that focuses on equity may deplete returns if market mood turns negative. This implies that investors should switch between schemes within a plan to get the biggest bang for their buck. 5. Charges plenty Various charges are levied o such plans. Their either lead to a deduction from the investment amount that is brought in or are adjusted by liquidation of units. In both cases, return are affected. Typically charges are high in the initial two years before they taper of and stabilize for the rest of the plans terms. 6. Course of action Providing life cover is the most important function of insurance, providing returns is just an added advantage of such plans, which gets magnified given the tax rebates. Investors can considers the following options: Steer clear of opting of life cover under the unit-linked plans, settle for a pure term plan instead which will offer you a high amount of cover for a relatively lower premium outgo. Investors can look at the debt based plans as the tax breaks could magnify returns.

CHAPTER 4

RESEARCH METHODOLOGY 35

36

Research methodology Research is common parlance refer to a search of knowledge. One can also define research as a scientific and systematic search for pertinent knowledge or information on specific topic. According to Redman and Mary Research is a systematic effort to gain new knowledge. Methodology forms a core of all research study. It refers to the procedure for the collection of data & its analysis. This chapter deals with the various methodological details in the present study. The methodology of the present investigation includes the following steps 1) OBJECTIVE OF THE STUDY To find out the knowledge of ULIPS among the customers of Future Generali Life Insurance Co. Ltd. in Udaipur. 2) RESEARCH DESIGN A research design is the arrangement of the conditions for collection & analysis of data. Actually it is the blue print of research project. The research design is as follows Exploratory Research 3) SOURCES OF DATA Sound marketing research depends upon the existence of facts or directly related to problem studied. To fulfill aforesaid objectives of the study, the information gathered from the primary as well as secondary sources & the same is also used. A. Primary Sources: I have used Primary Sources for finding out customers knowledge. The following sources are used. Method of obtaining data: Questionnaire B. Secondary Sources: I have used Secondary Sources for making People aware about unit linked insurance plans. The following sources are used for gathering information. 1) Fact Sheet 2) Website 3) Broachers 4) SAMPLE DESIGN Sample design refers to the technique as the procedure that a researcher would adopt in selective item for the sample. 37

Sample Size: In my study I have taken a sample of 80 respondents 5) DATA COLLECTION TECHNIQUE The data was collected through close-ended questionnaire. 1. Questionnaires: The data was collected through questionnaire, in which different questions were asked. 2. Telephone Calling: By making telephonic calls to the respondents appointment with them is being taken first and then I meet them personally at the appointment time and then I give them the questionnaire and after filling the questionnaire they give me the filled questionnaire. 6) AREA OF THE STUDY The study had been conducted in UDAIPUR CITY 7) SAMPLING TECHNIQUE For the purpose of my study I had used: Convenient Sampling

38

CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

Q:1 INCOME LEVEL (ANNUALLY)

39

INCOME LEVEL Below 2 lakh 2-5 lakh 5 lakh & above

NO. OF CUSTOMERS 24 48 8

PERCENTAGE 30 60 10

INCOME LEVEL(ANNUALLY)
60 NO. OF CUSTOMERS 50 40 30 20 10 0 Below 2 lakh 2-5 lakh INCOME 5 lakh & above NO. OF CUSTOMERS

Interpretation: It shows that 30% customers are with in the income group of below 2 lakh, 60% are in the income group of 2-5 lakh, 10% in 5 lakh. This graph shows about income level of the people and most of the people earn between 2-5 lakh annually.

Q:2 How did you come to know about of future generali life insurance company limited? PARTICULAR Advertisement Agent NO. OF CUSTOMERS 8 64 40 PERCENTAGE 10 80

Friend

10

70 60 NO. OF CUSTOMERS 50 40 Series1 30 20 10 0 Advertisement Agent Friend

Interpretation: It shows that 80 % customers were come to know about ULIPs through agents and 10% through advertisement and friends. Company does not invested in promotional activity. They sell their product through agents.

Q:3 Which ULIP product of the company have you taken? Please provide name of the plan? ULIP PRODUCT Future secure Future income Future balance Future maximize NO. OF CUSTOMERS 8 10 48 14 41 PERCENTAGE 10 12 60 18

60 NO. OF CUSTOMERS 50 40 30 20 10 0 Future secure Future income Future balance ULIP PRODUCT Future maximise Series1

Interpretation: It shows that 60% of customers prefer future balance because it gives better return in the future and another fund prefer by customers is future maximize because in the more risk more return.

Q:4 Do you know about the key features of ULIP which you have taken?

PARTICULAR YES NO

NO. OF CUSTOMERS 52 28

PERCENTAGE 65 35

42

NO. OF CUSTOMERS

60 50 40 30 20 10 0 YES NO Series1

Interpretation: It shows that only 65% customers are know about the key features of ULIP which they have taken and 35% customers are dont know about key features.

Q:5 Do you know about the administrative charges & other charges in ULIP? PARTICULAR YES NO NO. OF CUSTOMERS 60 20 PERCENTAGE 75 25

43

70 60 50 40 30 20 10 0 YES NO

NO. OF CUSTOMERS

Series1

\ Interpretation: It shows that only 75% customers are know about the administrative charges and other charges in ULIP which they have taken and 25% customers are dont know about it.

Q:6 How long do you intend to remain invested in ULIP? PARTICULAR 3 years Between 3-5 years Between 5-10 years Above 10 years NO. OF CUSTOMERS 20 40 15 5 44 PERCENTAGE 25 50 19 6

no. of customers

50 40 30 20 10 0 3 years between 3-5 between 5years 10 years years above 10 years

Series1

Interpretation: It shows that 50% people are interested to invest their money between 3-5 years for the better return , according IRDA people can withdraw there money 3 years so 25% customers are interested to invest money in this duration.

Q:7 Rate the factor that you consider before investing in ULIP ?

PARTICULAR Flexibility Return Tax Saving Risk Cover

NO. OF CUSTOMERS 8 48 16 8 45

PERCENTAGE 10 48 20 10

no. of customers

60 50 40 30 20 10 0
Re tu rn ng Fl ex ib Co ve r ilit y av i

Series1

Ta x

Interpretation: It shows that 48% customers interested in ULIP because of the return ,20% people invest money because of the tax saving, and 10% people invest money because of the flexibility and risk cover.

Q:8 After sales service? PARTICULAR Yes No NO. OF CUSTOMERS 68 12 PERCENTAGE 85 15

Ri s

46

80 no. of customers 60 40 20 0 Yes No Series1

Interpretation: It shows that 85% customers satisfy after sales service company switch the fund according to the customers preference, and solve the problem time to time, and give details to customers on the maturity date.

47

CHAPTER 6 CONCLUSIONS, SUGGESTIONS & LIMITATION

CONCLUSIONS

1. From income analysis we can conclude that most of customers are belong to high income group which is beneficial for the company. 2. 80% customers were come to know about the company through agents which shows that most of customers were get attracted through agents. 3. Return objective analysis says that most of customers give very importance to return. 4. Tax Saving is also very important for customers. 48

5. From the ULIPs analysis we can conclude that most of customers have Future Balance and Future Maximise which shows that these products are more demandable and popular among customers. 6. From the analysis of key features of ULIP we can conclude that 35 percentage customers dont know about the key features of ULIP which they have taken, which shows customers carelessness about their own product. 7. Fund analysis says that approx 75% customers know the different kinds of funds available in their plan, it so because investment is always made by customers own choice for the funds. 8. Many customers have knowledge about administrative charges and other charges. 9. A few customers know about the investment portfolio of the company under the fund chosen by them. Basically customers dont know what an investment portfolio is so they dont take interest for knowledge of it.

SUGGESTIONS

1. Company should give effective training to their agent so that more customers get attracted towards ULIP products. 2. Company should try for giving the knowledge to its customers that investments are subject to market risks and past performance is not a guide to future results. 3. Company should promote the promotional activity of the product in the market. 4. Company decrease the allocation charges and other charges after that company increases in the selling the product.

49

LIMITATIONS

1. The time period in which the project had to be completed was two months. 2. The sample size was small 3. Some of the people interviewed were not clear about their opinion. 4. Since the forms were filled by the interviewer there is a fair chance of lack of understanding, in some cases views were not communicate properly.

Questionnaire

Name : ____________________________ Age : ____________________________ Occupation : Private________ Business________ Public___________ Others___________

Q:1 Income level (annually) Below 2 lakh______ Between 2-5 lakh______ 5 lakh & above_________ 50

Q:2 How did you come to know about of FUTURE GENERALI LIFE CO. LTD.? Advertisement__________ Agent_________ Friend__________

INSURANCE

Q:3 Which ULIP product of the company have you taken? Please provide name of the plan? Future Secure__________ Future Balance__________ Future Income_____________ Future Maximise____________

Q:4 Do you know about the key features of ULIP which you have taken? Yes______ No____________

Q:5 Do you know about the administrative charges & other charges in ULIP? Yes______ No_____________

Q:6 How long do you intend to remain invested in ULIP? 3 years_______ Between 5-10 years______ Between 3-5 years________ Above 10 years_________

Q:7 Rate the factor that you consider before investing in ULIP? Flexibility__________ Tax Saving_________ Returns______________ Risk cover___________

Q:8 After sales service? Yes________ No___________________

51

CHAPTER 8 BIBLIOGRAPHY

52

Bibliography

BOOKS Life Insurance (Insurance Institute of India) Insurance Industry (ICFAI publications) Study Guide- Principles and Practices of Life/ General Insurance by AIMA

WEBSITES www.futuregenerali.in www.insurance.ind.com www.irda.org www.insuranceworld.com www.findarticles.com

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