TABLE OF CONTENTS

Sl. No Topic
Page No.
1
Company Profile
1
2
EXCUTIVE SUMMARY
4
3
INTRODUCTION TO INSURANCE
8
4
INTRODUCTION TO ULIP
14
5
Research Methodology
18
6
PRODUCT POFILE
20
TRADITIONAL VS ULIP
42
DATA ANALYSIS & INTERPRATION
44
7
RESULTS AND FINDINGS
64
8
CONCLUSIONS
66
9
LIMITATIONS OF THE STUDY
67
10
SUGGESTIONS AND RECOMMENDATIONS
68
11
BIBLIOGRAPHY
70
12
APPENDIX
ICICI Prudential is a joint venture between ICICI Bank and PRUDENTIAL PLC engaged in
the
business of life insurance in India. ICICI Prudential is the largest private insurance company and
second
largest insurance in India after LIC. ICICI Prudential Life Insurance Company is a joint venture
between
ICICI BANK, a premier financial powerhouse, and PRUDENTIAL PLC, a leading
international
financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first
private sector insurance companies to begin operations in December 2000 after receiving
approval from
Insurance Regulatory Development Authority (IRDA).ICICI Prudential Life's capital stands at Rs.
37.72
billion (as on March, 2008) with ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. For the year ended March 31, 2008, the company garnered Retail New Business
Weighted
premium of Rs. 6,684 crores, registering a growth of 68% over the last year and has underwritten
nearly
3 million retail policies during the period. The company has assets held over Rs. 30,000 crore as
on
April 30; 2008.ICICI Prudential Life is also the only private life insurer in India to receive a
National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the
highest
rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at
the
time of maturity or claims. For the past seven years, ICICI Prudential Life has retained its
leadership
position in the life insurance industry with a wide range of flexible products that meet the needs of
the
Indian customer at every step in life.
Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has been one
of the earliest private players. Since the time, ICICI Pru Life has been the leader in terms of
market share as indicated by the IRDA (Insurance Regulatory and Development Authority, the
regulator for Indian Insurance Industry) at its website.
Arguably the most innovative Indian Life insurer in terms of customer services and products,
ICICI
Prudential has one of the largest distribution and servicing network with over 2,000 proprietary
offices
& customer touch points across India. The 30,000 employee strong organization has one of the
largest
agency distributions in the industry.
With a growing product range to match the complex needs of the demanding customers in a
growing
economy, the organization also has a history of successful.
During 2007-08, the organization's focus on rural business has proved its complex project
execution
capability and strong partnerships for customer servicing.
In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK Healthcare
to
settle insurance claims of its users.

VISION & VALUES

VISION
To be the dominant Life, Health and Pensions player built on trust by world-class people and
service.
This we hope to achieve by:
y

Understanding the needs of customers and offering them superior products and service
y

Leveraging technology to service customers quickly, efficiently and conveniently

y

Developing and implementing superior risk management and investment strategies to offer
sustainable and stable returns to our policyholders
y

Providing an enabling environment to foster growth and learning for our employees
y

And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core values --
Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe
what the company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can play a
significant role in redefining and reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth
VALUES
Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer
First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have
become the keystones of our success.

EXECUTIVE SUMMARY
Title of the project: Study ULIP in current market scenario/ study customer
response
towards ULIP.
Objectives:
y

Working of the unit linked insurance plans

y

Study tax planning solutions available in the market

y

SWOT analysis of the product

Organization to be studied:
y

Life insurance corporation

y

Bajaj Allianz
y

HDFC Stan Life

y

ICICI Prudential Life Insurance

Research methodology: Primary data collected by personally visiting these
leading
insurance players. Example: LIC, Max New York Life Insurance, HDFC Standard life.
Data Collection:
y

Primary data collected through Survey

y

Sample size 50
y

Secondary data collected through literature study

OBJECTIVE OF THE STUDY

The project undertaken by me as a part of my MASTER OF BUSINESS ADMINISTRATION

course is an effort made to study the ULIP policies and activities in BAJAJ ALLIANZ with

special emphasis on unit linked products of the company.

The main objectives of this study are:

1. Working of Unit linked Insurance Plans

2. Study tax planning solutions available in the market

3. SWOT analysis of the product sold

4. To get an exposure in the real working environment in the insurance and corporate
sector.
5. To have a better understanding of the investment options available.
6. Meet the various life insurance needs of the community that would arise in the changing
social and economic environment.

SCOPEOF THE STUDY

1 The main scope is to aware the investors about the various Bajaj Allianz ULIPs and help
them to select the best plan as per their requirement
2 To study the consumer need according his portfolio and to analyze the need of ULIPs

consumer.

3 To find out the best selling insurance products of this company.

4 To find out which product (if any) is not getting good response from clients and why?

5 To find out the risks in investing a unit link insurance plan.

INSURANCE
Meaning of Insurance:-

Insurance in which the risk insured against is the death of a particular person, the insured,

upon whose death while the policy is in force, the insurance company agrees to pay a stated

sum or income to the beneficiary.

Insurance on human lives including endowment benefits, additional benefits in event of

death or dismemberment by accident or accidental means, additional benefits for disability,

and annuities.
Why Life Insurance?

Buying Insurance cannot be compared with any other form of investment. Insurance gives

one a life long benefit and the returns will definitely come but only when one needs it the

most i.e. at the right time.

Insurance is not about how much more it can offer you when the stock market is at its peak.

It may not be an attractive investment option. But weigh the pros and cons and consider how

much more it offers at a small price.

Most important of all it provides you with that unique sense of security that no other form of

investment provides. It gives you a sense of financial support especially during that time of

crisis irrespective of the fluctuations in the stock market. Insurance provides for career goals

right from childhood years.

If the earning member of the family is no more children¶s educational needs will not suffer. In

fact his higher education too will be provided for. One need not spend sleepless nights

thinking about how to save for his child's marriage. Life Insurance will take care of that

typical once-in- a-life-time spending on marriages.

An accident or a disability may be devastating but an insurance policy can be of utmost

support for the family during such times too. Besides it provides for additional benefits such

as bonuses. One need not worry about your retirement years. The rising prices, taxes, and

your lifestyle will be taken care of easily. And you can relax and spend your old age in

comfort and peace.

People invest in life insurance owing to a few key reasons, mainly
y

Insurance creates financial provisions for the deceased's dependants.

y

Insurance provides for the policyholder's old age after his earning power diminishes. After all,

interest rates may fall and invested holdings may lose value and stop gaining dividends, but

the value of an insurance policy once set, never reduces.

y

Insurance also provide a legally authorized way to reduce the incidence of Income Tax.
Insurance as an Investment

Agreed, insurance may not be the best place to invest your hard-earned money. But there

are sufficient reasons for one to believe that it can be a highly lucrative avenue to facilitate

savings. People often talk about yield on investment and tend to compare their values with
those available on various insurance schemes. This is particularly typical within the Indian
sub-
continent where one conveniently forgets the element of risk covered by life insurance.

It is extremely unfair to compare the performance of insurance against other investments

without considering the core features of insurance. The very essence of insurance is to
protect your family from the uncertainty of your life. Hence it proves very logical to evaluate

the costs involved towards this feature.

One must accept that out of the total amount paid by one for his life insurance, a certain

amount is used for providing the risk cover and only the balance can be utilized as savings.

In other words, the total premium one pays minus the amount evaluated, as the cost of

insurance must be considered as the amount invested to get the maturity amount.
What does life insurance have to offer?

Life insurance is many different things to many different people. For some, it is a premium to

be paid on time. For others it offers liquidity since cash can be borrowed when needed. For

the investment-minded, it denotes a constantly growing capital account and numerous other

benefits.
Life insurance is nothing but the creation of capital funds on an installment basis. Only here,

the results are guaranteed. Life insurance is basically a property that is bought under a

contract, accompanied by contractual guarantees that ensure large sums of money at the

death of the insured.

The contractual guarantee is the promise to pay, backed by one of the oldest and most
stably
regulated financial industry operating in the Indian sub-continent today.
Insurance Buys Time and Money: People like to refer to life insurance as time
insurance, the

reason being that life insurance proceeds are paid to the insured's beneficiaries in case of

death. The money proffered by life insurance helps buy time to adjust to the change of

circumstances. Insurance provides large amounts of cash that will keep the lifestyle for the

survivors the way it was before the insured's death.

InsuranceOffersPeace of Mind: For the person who buys an insurance policy, it offers
absolute and complete peace of mind. He or she knows that the decision made by him will

provide sound benefits in the future, whether or not the individual may live to see it. The life

insurance policy will subsequently prove this in the future if and when funds are needed. This

is the guarantee of the insurance contract.

Multiple Applications: The future is uncertain for each and every one. No one knows
how

long he or she will live. The investment benefit is paid to the insured's beneficiaries after his

death or it can be used during the life as well. Life insurance policy owners can turn to the

cash value of the policy in case of a financial emergency when all avenues are either

blocked or denied. They know that they can avail of loans based on their insurance policies.

Insurance policy owners can use the cash value of their policies to meet their long-term

financial needs as well. They may have purposefully invested in insurance to use the cash in

the policy for their children's future marriage expenses or higher education fees.

Enduring Elasticity:Since life insurance is flexible enough to serve several needs,

the

insured can keep several long-term goals in mind once he or she invests in the insurance

plan. The cash value of the policy can be allocated towards augmenting the monthly income

during the retirement years. Leisure years should be turned into pleasure years. Permanent

life insurance is designed on the concepts of long-term flexibility.

Financial Security: The insurance policy offers contractual guarantees to people
looking for
peace of mind when they buy life insurance. Life insurance offers complete financial security.
The purchase of life insurance demonstrates concern for a family's future financial well
being.
Regard forFamily: The purchase of life insurance clearly displays care and concern
for the
people the policy owner loves.
Insurance is Safer: No financial institution can do what life insurance does. No
industry can
back its products with reserves and surplus as sound as those of the insurance industry.

The proof of strength and safety that insurance companies have ensured even under the

most adverse of conditions is a matter of pride for the entire insurance industry. For

generation after generation, life insurance has been acclaimed as the very benchmark of

security against which the other industries are measured.

INTRODUCTION OF UNIT LINKED INSURANCE PLAN

The introduction of unit-linked insurance plans (ULIPs) has been, possibly, the single-largest
innovation in the field of life insurance in the past several decades.
MEANING

A policy, which provides for life insurance where the policy value at any time varies

according to the value of the underlying assets at the time. ULIP is life insurance solution

that provides for the benefits of protection and flexibility in investment. The investment is

denoted as units and is represented by the value that it has attained called as Net Asset

Value (NAV).

ULIP came into play in the 1960s and became very popular in Western Europe and

Americas. The reason that is attributed to the wide spread popularity of ULIP is because of

the transparency and the flexibility which it offers.

As times progressed the plans were also successfully mapped along with life insurance need

to retirement planning. In today¶s times, ULIP provides solutions for insurance planning,

financial needs, financial planning for children¶s future and retirement planning.
FEATURES OFUL IP:
ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The
plan is a one-stop solution providing:
y

Life protection
y

Investment and Savings

y

Flexibility
y
Adjustable Life Cover
Investment Options
y

Transparency
y

Liquidity
y

Tax planning
y

Options to take additional cover against death due to accident

y

Critical Illness
y

Surgeries
Options to take additional cover against:
1. Death due to accident
2. Disability
3. Critical Illness
Fund of ULIP
Equity based funds

Money Market based funds

Debt Funds

Balanced Funds

Special Funds
UNIT-LINKED LIFE INSURANCE PRODUCTS

Unit-linked life insurance products are those where the benefits are expressed in terms of

number of units and unit price. They can be viewed as a combination of insurance and

mutual funds. The number of units, which the customer would get, would depend on the unit

price when he pays his premium. The daily unit price is based on the market value of the

underlying assets (equities, bonds, government securities etc.) and computed from the net

asset value
MERITS
1) Flexibility to choose your own level of protection (the sum assured) 2) Option to choose

from a wide variety of investment fund to invest in (from high risk to low risk fund depending

on your risk profile). The investment part of Traditional Insurance is control by insurer
DEMERITS
 The premium is not guaranteed. In Malaysia, the annual premium we pay for

investment-linked insurance is call 'annual targeted premium'. For example, if you pay an

annual premium Ringgit Malaysia 1,800 over the last few years, it does not mean you
are
paying
the
same
amount
from
next
year

nwards. b) The insurance charges is not guaranteed, for example, insurance charges for

death benefit, total & permanent disability benefit, etc. The insurance company has the right

to increase the insurance charges