a study into ulip plans reliance capital

8/9/2019 a study into ulip plans reliance capital

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RESEARCH REPORT

ON

A STUDY INTO ULIP SCHEMES OF

RELIANCE CAPITAL

SUBMITTED TO U.P. TECHNICAL UNIVERSITY, LUCKNOW FOR THE PARTIALFULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSSNESS ADMINISTRATION

UNDER THE GUIDANCE OF: - SUBMITTED BY:

MISS. DEEPTI KUMAR AMIT KUMAR

FACULTY ROLL No: 0827870002.

ARYAN INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES,

SIKANDRA, AGRA


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PREFACE

The liberalization of the Indian insurance sector has been the subject of much

heated debate for some years. The policy makers where in the catch 22 situation

wherein for one they wanted competition, development and growth of this

insurance sector which is extremely essential for channeling the investments in to

the infrastructure sector. At the other end the policy makers had the fears that the

insurance premium, which are substantial, would seep out of the country; and

wanted to have a cautious approach of opening for foreign participation in the

sector.

As one of the rare occurrences the entire debate was put on the back burner and

the IRDA saw the day of the light thanks to the maturing polity emerging

consensus among factions of different political parties. Though some changes and

some restrictive clauses as regards to the foreign participation were included the

IRDA has opened the doors for the private entry into insurance.

Whether the insurer is old or new, private or public, expanding the market will

present multitude of challenges and opportunities. But the key issues, possible

trends, opportunities and challenges that insurance sector will have still remains

under the realms of the possibilities and speculation.

AMIT KUMAR

MBA 4TH SEM


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ACKNOWLEDGEMENT

I would like to thank Dr. R.C.GUPTA (Director) to give me guidelines and

my worthy thanks to my teacher MISS.DEEPTI KUMAR and all FACULTY

MEMBER of ARYAN INSTITUTE OF MANAGEMENT & COMPUTER

STUDIES for their valuable contribution during the academic session and

guidance in preparation of this research report.

I would like to dedicate this project to my parents. Without their help and constant

support this project would not have been possible.

Lastly I would like to thank all the respondents who offered their opinions and

suggestions through the survey that was conducted by me.

Once again my gratitude to the Life insurance Policy. For their kind co-

operation.

AMIT KUMAR

MBA 4th SEM


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DECLARATION

I Amit Kumar of MBA 4 th sem of ARYAN INSTITUTE OF MANAGEMENT

& COMPUTER STUDIES hereby declare that the research report entitled in

UNIT LINK INSURACNE PLANS is an original word and the same has not

been submitted to any other institute for the award of any other degree.

AMIT KUMAR

MBA 4th SEM


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TABLE OF CONTENTS

Preface

Acknowledgement

Declaration

CHAPTER 1:-

An Introduction to Ulip plans

CHAPTER 2:-

A FROFILE OF RELIANCE CAPITAL AND

RELIANCE MUTUL FUND

CHAPTER 3:-

Project profile and unit linked plans of reliance

capital

Research methodology

o Importance of the study

o Objective And Scope Of The Study

o Hypothesis

o

Sample size and typeo Statistical tool

CHAPTER 4:-

Data interpretation and analysis

CHAPTER 5:-

findings & suggestion

CHAPTER 6:-

Conclusion

Anexxure

Questionnaire

Bibliography


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CHAPTER 1:-

An Introduction to Ulip plans


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ULIPS

what is ULIP?ULIP stands for Unit Linked Insurance Plans. As we know that

insurance is for protecting our life from the any uncertain events

like death or accident. The purpose of the normal insurance planis just protecting the life but not ensuring any savings for the

future. Many people wanted plan which gives protection alsogives the returns for their investment. So, insurance companies

come up with the ULIP plan where the premium about isinvested in the share market and returns better income on the

maturity period.

PLATFORMS OF LIFE INSURANCE- UNIT LINKED

INSURANCE PLANS

World over , insurance come in different forms and shapes . although the

generic names may find similar , the difference in product features makes

one wonder about the basis on which these products are designed .With

insurance market opened up , Indian customer has suddenly found

himself in a market place where he is bombarded with a lot of jargon as

well as marketing gimmicks with a very little knowledge of what is

happening . This module is aimed at clarifying these underlying concepts

and simplifying the different products available in the market.

We have many products like Endowment , Whole life , Money back etc. All

these products are based on following basic platforms or structures viz.

Traditional Life

Universal Life or Unit Linked Policies


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3.1 TRADITIONAL LIFE AN OVERVIEW

The basic and widely used form of design is known as Traditional Life

Platform. It is based on the concept of sharing . Each of the policy holder

contributes his contribution (premium) into the common large fund is

managed by the company on behalf of the policy holders.

Administration of that common fund in the interest of everybody was

entrusted to the insurance company .It was the responsibility of the

company to administer schemes for benefit of the policyholders.

Policyholders played a very passive roll . In the course of time , the same

concept of sharing and a common fund was extended to different areas

like saving , investment etc.

A Unit Link Insurance Policy (ULIP) is one in which the customer is

provided with a life insurance cover and the premium paid is invested in

either debt or equity products or a combination of the two. In other words,

it enables the buyer to secure some protection for his family in the event of

his untimely death and at the same time provides him an opportunity to

earn a return on his premium paid. In the event of the insured person's

untimely death, his nominees would normally receive an amount that is

the higher of the sum assured or the value of the units (investments).

To put it simply, ULIP attempts to fulfill investment needs of an investor

with protection/insurance needs of an insurance seeker. It saves the

investor/insurance-seeker the hassles of managing and tracking a portfolio

or products. More importantly ULIPs offer investors the opportunity to

select a product which matches their risk profile.

Unit Linked Insurance Plans came into play in the 1960s and became very

popular in Western Europe and Americas. In India The first unit linked

Insurance Plan , popularly known as ULIP Unit Linked Insurance Plan in

India was brought out by Unit Trust Of India in the year 1971 by entering


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into a group insurance arrangement with LIC o provide for life cover to the

investors , while UTI , as a mutual was taking care of investing the unit

holders money in the capital market and giving them a fair return .

Subsequently in the year 1989 , another Unit Linked Product waslaunched by the LIC Mutual Fund called by the name of

DHANARAKSHA which was more or less on the line of ULIP of UTI .

Thereafter LIC itself came out with a Unit Linked Insurance Product known

by name BIMA PLUS in the year 2001-02 .

Presently a number of private life insurance companies have launched

Unit Linked Insurance Products with a variety of new features.

TYPES OF ULIP

There are various unit linked insurance plans available in the market.

However, the key ones are pension, children, group and capital

guarantee plans.

The pension plans come with two variations with and without life cover

and are meant for people who want to generate returns for their sunset

years.

The children plans, on the other hand, are aimed at taking care of their

educational and other needs..

Apart from unit-linked plans for individuals, group unit linked plans are also

available in the market. The Group linked plans are basically designed for

employers who want to offer certain benefits for their employees such as

gratuity, superannuation and leave encashment.


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The other important category of ULIPs is capital guarantee plans. The

plan promises the policyholder that at least the premium paid will be

returned at maturity. But the guaranteed amount is payable only when the

policy's maturity value is below the total premium paid by the individual till

maturity. However, the guarantee is not provided on the actual premiumpaid but only on that portion of the premium that is net of expenses

(mortality, sales and marketing, administration).

How ULIPs work

ULIPs work on the lines of mutual funds. The premium paid by the client

(less any charge) is used to buy units in various funds (aggressive,

balanced or conservative) floated by the insurance companies. Units are

bought according to the plan chosen by the policyholder. On every

additional premium, more units are allotted to his fund. The policyholder

can also switch among the funds as and when he desires. While some

companies allow any number of free switches to the policyholder, some

restrict the number to just three or four. If the number is exceeded, a

certain charge is levied.

Individuals can also make additional investments (besides premium) fromtime to time to increase the savings component in their plan. This facility is

termed "top-up". The money parked in a ULIP plan is returned either on

the insured's death or in the event of maturity of the policy. In case of the

insured person's untimely death, the amount that the beneficiary is paid is

the higher of the sum assured (insurance cover) or the value of the units

(investments). However, some schemes pay the sum assured plus the

prevailing value of the investments.


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ULIP - KEY FEATURES

Premiums paid can be single, regular or variable. The payment

period too can be regular or variable. The risk cover can be

increased or decreased.

As in all insurance policies, the risk charge (mortality rate) varies

with age.

The maturity benefit is not typically a fixed amount and the maturity

period can be advanced or extended.

Investments can be made in gilt funds, balanced funds, money

market funds, growth funds or bonds.

The policyholder can switch between schemes, for instance,

balanced to debt or gilt to equity, etc.

The maturity benefit is the net asset value of the units.

The costs in ULIP are higher because there is a life insurance

component in it as well, in addition to the investment component.

Insurance companies have the discretion to decide on their

investment portfolios.

Being transparent the policyholder gets the entire episode on the

performance of his fund.

ULIP products are exempted from tax and they provide life

insurance.


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Provides capital appreciation.

Investor gets an option to choose among debt, balanced and equity

funds.

USP of ULIPS

Insurance cover plus savings

ULIPs serve the purpose of providing life insurance combined with savings

at market-linked returns. To that extent, ULIPS can be termed as a two-in-

one plan in terms of giving an individual the twin benefits of life insurance

plus savings.

Multiple investment options

ULIPS offer a lot more variety than traditional life insurance plans. So

there are multiple options at the individuals disposal. ULIPS generally

come in three broad variants:

Aggressive ULIPS (which can typically invest 80%-100% inequities, balance in debt)

Balanced ULIPS (can typically invest around 40%-60% in equities)

Conservative ULIPS (can typically invest upto 20% in equities)

Although this is how the ULIP options are generally designed, the exact

debt/equity allocations may vary across insurance companies. Individuals

can opt for a variant based on their risk profile.

Flexibility

The flexibility with which individuals can switch between the ULIP variants

to capitalise on investment opportunities across the equity and debt

markets is what distinguishes it from other instruments. Some insurance


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companies allow a certain number of free switches. Switching also helps

individuals on another front. They can shift from an Aggressive to a

Balanced or a Conservative ULIP as they approach retirement. This is a

reflection of the change in their risk appetite as they grow older.

Works like an SIP

Rupee cost-averaging is another important benefit associated with ULIPS.

With an SIP, individuals invest their monies regularly over time intervals of

a month/quarter and dont have to worry about timing the stock markets.

HURDLES OF ULIP

NOSTANDARDIZATION

All the costs are levied in ways that do not lend to standardisation. If one

company calculates administration cost by a formula, another levies a flat

rate. If one company allows a range of the sum assured (SA), another

allows only a multiple of the premium. There was also the problem of a

varying cost structure with age


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CHAPTER 2:-

A profile of reliance capital and

reliance mutual fund


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THE INSURANCE INDUSTRY IN INDIA

AN OVERVIEW

With the largest number of life insurance policies in force in the world, Insurance

happens to be a mega opportunity in India. Its a business growing at the rate of

15-20 per cent annually and presently is of the order of Rs 1560.41 billion (for the

financial year 2006 2007). Together with banking services, it adds about 7% to

the countrys Gross Domestic Product (GDP). The gross premium collection is

nearly 2% of GDP and funds available with LIC for investments are 8% of the

GDP.

Even so nearly 65% of the Indian population is without life insurance cover whilehealth insurance and non-life insurance continues to be below international

standards. A large part of our population is also subject to weak social security

and pension systems with hardly any old age income security

A well-developed and evolved insurance sector is needed for economic

development as it provides long term funds for infrastructure development and

strengthens the risk taking ability of individuals. It is estimated that over the next

ten years India would require investments of the order of one trillion US dollars.

HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818 when it was conceived as

a means to provide for English Widows. Interestingly in those days a higher

premium was charged for Indian lives than the non - Indian lives, as Indian lives

were considered more risky to cover. The Bombay Mutual Life Insurance Society

started its business in 1870. It was the first company to charge the same premium

for both Indian and non-Indian lives.

The Oriental Assurance Company was established in 1880. The General insurance

business in India, on the other hand, can trace its roots to Triton Insurance

Company Limited, the first general insurance company established in the year


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1850 in Calcutta by the British. Till the end of the nineteenth century insurance

business was almost entirely in the hands of overseas companies.

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 the 1920's and 1930'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 the 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

and provident societies under one nationalized monopoly corporation and Life

Insurance Corporation (LIC) was born. Nationalization was justified on the

grounds that it would create the 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 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 Company, New India Assurance Company, Oriental Insurance

Company and United India Insurance Company. These were subsidiaries of the

General Insurance Company (GIC).


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Company Profile

Reliance money is a part of the reliance Anil Dhirubai Ambani Group and is

promoted by Reliance capital, the fastest growing private sector financial services

company in India, ranked amongst the top 3 private sector financial companies in

terms of net worth.

Reliance money is a comprehensive financial solution provider that enables you

to carry out trading and investment activities in a secure, cost-effective and

convenient manner. Through reliance money, you can invest in a wide range of

asset classes from Equity, Equity and commodity Derivatives, Mutual Funds,

insurance products, IPOs to availing services of Money Transfer & Money

changing.

Reliance Money offers the convenience of on-line and offline transactions

through a variety of means, including its Portal, Call & Transact, Transaction

Kiosks and at its network of affiliates.

Some key steps of the company that are as..

Success is a journey, not a destination. If we look for examples to

prove this quote then we can find many but there is none like that of Reliance

Money. The company which is today known as the largest financial service

provider of India.

Reliance Capital

RelianceLife Insurance

RelianceGeneral Insurance

Unit linknsurance

plans

RelianceConsumer

Finance

RelianceMutual fundMutual Fund


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Success sutras of Reliance Money:The success story of the company is driven by 8 success sutras adopted by it

namelytrust, integrity, dedication, commitment, enterprise, hard work

and team play, learning and innovation, empathy and humility.

These are the values that bind success with Reliance Money.

Vision of Reliance MoneyTo achieve & sustain market leadership, Reliance Money shall aim for complete

customer satisfaction, by combining its human and technological resources, to

provide world class quality services. In the process Reliance Money shall strive to

meet and exceed customer's satisfaction and set industry standards.

Mission statement:

Our mission is to be a leading and preferred service provider to our

customers, and we aim to achieve this leadership position by

building an innovative, enterprising , and technology driven

organization which will set the highest standards of service and

business ethics.

BUSINESS OVERVIEW

Reliance Capital has interests in asset management and mutual funds, life and

general insurance, private equity and proprietary investments, stock broking,

depository services, distribution of financial products, consumer finance and other

activities in financial services.

Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is

India's fastest growing life insurance company and among the top 4 private sector

insurers. Reliance General Insurance is India's fastest growing general insurance

company and the top 3 private sector insurers. Reliance Money is the largest

brokerage and distributor of financial products in India with more than 2.5 million

customers and the largest distribution network. Reliance Consumer finance has a

loan book of over Rs. 8,000 crores at the end of June 2008.

Reliance Capital has a net worth of Rs.6, 862 crores (US$ 1.6 billion) and total


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assets of Rs. 19,940 crores (US$ 4.6 billion) as of June 30, 2008 and over 26,000

employees.

Money has increased its market share among private financial companies to

nearly Convenient & effective Anytime & anywhere financial transaction

capability. Launched in April 2007. It provides the Flat fees system. It has 2.2million customers in 1 year of official launch. It has over 5,000 outlets across 700

towns/cities. Average daily turnover in excess of Rs 2,000 crores.

Considering the entire life market, including the Rs. 12,890 crores booked by life

insurance Corporation, Reliance life insurance market share works out to around

6.25%.

The life insurance market continuous to be dominated by LIC which has about

67% share this only a marginal dip from its 73% share in end-July. These

comparisons are only for first year or new business premium.

The gap between Reliance life insurance and the second-in-line private insurer is

vast. In fact, this scenario has led some analysts to wonder if the company is not a

trifle too aggressive. But others say this has more to do with the companies

customer-centric focus, its pan-India presence and superior risk management and

investment strategies. Reliance Money is not, however, resting on its laurels.

Companys customer centric approach will be studied during the training period

and the finding of the research work will definitely focus on the present condition

& future requirement (if any) relating to products of company.


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Reliance Life Insurance

Demat Account Services

Reliance Mutual Funds

Reliance General Insurance


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Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group is

India's fastest growing life insurance company and among the top 4 private sectorlife insurers.

Reliance Life Insurance has a pan India presence and a range of products catering

to individual as well as corporate needs. Reliance Life Insurance has over 700

branches and 1, 80,000 agents. It offers 26 products covering savings, protection

& investment requirements. Reliance Life Insurance will endeavor to attain a

leadership position in the market over the next few years, by further expanding

and strengthening its distribution network and offering a diverse array of products

to suit the varied and specific needs of individual customers.

Basics of Life Insurance

What is Life Insurance?

An amount of money paid to someone (called beneficiary) when the LifeAssured (in whose name the insurance policy is taken) dies. This amount

can be used to pay the expenses related to Life assureds death or can be

invested to generate income that will replace your salary. Life Insurance is

an important tool in any investors portfolio & can be used for - wealth

creation, asset building, provide for contingencies and retirement planning.


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Types of Life Insurance Policies

Most Insurance policies are a combination of Savings & Protection.

Products are formulated by either increasing or decreasing either one ofthese components.

These combinations can be broadly divided into 4 groups- ULIPs

- Term Insurance

- Endowment Policies : Whole Life; Unit Linked etc

- Annuities & Pension

The main reason to buy Life Insurance is toprovide income replacement for your loved ones


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Life Stage in Life Insurance


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Need Analysis in life Stages

18-25(Unmarried)

30-45 yearsCouples withchildren

45 yrs andaboveMaturedcouple Retire

d

25-30Marriedcoupleswith nokids

No dependents/liabilities

therefore needfor insurance is

less

Introduction ofdependents. Start

of financialplanning balance

between assetcreation &protection

Peak earning agerange. High asset

creation & build upof liabilities. Critical

stage for

dependents Asset base buildup & liabilitiesreduced/ taken

care of. Need forretirement

planning morethan protection.

Need forprotection low.

Greater need forregular income

flow.

Endowment / ULIPs Endowment / ULIPs +Term Annuities

At each stage, requirements, responsibilities and Financialneeds differ


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AGE STATUS INSURANCE

NEEDS

SUGGESTED

PRODUCTS

18yrs - 25yrs Unmarried1.Go on a holiday

2.Buy a new Car3.Set up a newhouse4.Set up Interiors5.Buy jewellery

Short Term Endowment

Product

25yrs -30yrs Married

1.High Debt, highexpenditure Phase2.Familydependency on

your income3.Low accumulatedwealth4.Need for PlanningRequirement

Temporary term orwhole life Product

30yrs - 45yrs Matured couple1.RetirementPlanning2.Wealth transfer or

saving vehicles3.Returns oninvestment4.Opting forguaranteed Product

Profits or Unit LinkedEndowment/Deferred annuities

Life Stage Example


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Products of Life Insurance

Hello, I am Philip, sailor.Hello, I am Philip, sailor.

Have seen the world.Have seen the world. Always on cruise and keep Always on cruise and keepworrying about family andworrying about family andthe loans. I need financialthe loans. I need financialProtection if I do not returnProtection if I do not returnfrom one voyagefrom one voyage

Savera has justSavera has justcome to our lives. Ascome to our lives. As

proud parents, We proud parents, Weneed to protect herneed to protect heras well as create heras well as create herown financialown financialstandingstanding

Worked for almostWorked for almost25 years, now want25 years, now wantto liveto live. I want. I wantsomething that willsomething that willmake my life Chinta-make my life Chinta-free afterfree afterretirementretirement..

Endowment

Term

Annuities


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Life Insurance products are usually referred to as plans of insurance. These

plans have two basic elements; one is the Death Cover providing for the

benefits being paid on the death of the insured person within a specified period.

The other is the Survival Benefit providing for the benefit being paid on

survival of a specified period. Plans of insurance that provide only death cover are called Term

Assurance Plans.

Plans of insurance that provide only survival benefits are called Pure

Endowment Plans.

Term Life Insurance

Term Life Insurance provides protection for a specified period of time. A deathbenefit is paid to the beneficiary if the insured dies within a specified period of

time while the policy is still in force.

Whole Life Insurance

Whole Life insurance is a permanent life insurance and provides protection for

life. As long as premiums are paid, a death benefit is paid to the beneficiary.

ULIPs

A ULIP is a life insurance which provides a combination of Life Insurance

protection and investment. Money can be invested in the following fund:- Equity

Fund, Debt Fund, Money Market Fund (Liquid Fund) and Balance Fund.

Annuities

Annuities are practically the same as pension. Pension provides periodical payments to the employees, who have retired. They are paid as long as the

recipient is alive.Annuities are called the reverse of Life Insurance.


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Protection Plans

Protect your family even when youre not around by investing in Reliance

Protection Plans. Choose a limited period plan or a lifetime protection plan

depending on your needs. The latest Protection Plans are as below

1. Reliance Term plan

2. Reliance Simple Term plan

3. Reliance Special Term plan

4. Reliance Credit Guardian plan

5. Reliance Special Credit Guardian plan

6. Reliance Endowment plan

7. Reliance Special Endowment plan

8. Rel iance Connect 2 Life plan

9. Reliance Whole Life plan

10. Reliance Wealth + Health plan

11. Reliance Cash Flow plan

Savings & Investment Plans

Reliance Savings & Investment Plans help you to set aside some money to

achieve specific goals in life, which means that you can enjoy life and provide for

your familys daily needs. The savings and investment Plans are as below

1. Reliance Total Investment Plan Series I - Insurance


3. Reliance Automatic Investment plan

4. Reliance Money Guarantee plan

5. Reliance Cash Flow plan

6. Reliance Market Return plan

7. Reliance Endowment plan

8. Reliance Special Endowment plan

9. Reliance Whole Life plan

10. Reliance Golden Years Plan
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11. Reliance Golden Years Plan Value

12. Reliance Golden Years Plan Plus

13. Reliance Connect 2 Life plan

Retirement PlansInvest today in Reliance Retirement Plans and save money to enjoy life even after

retirement. You will never have to depend on another person or make any

compromises to maintain your current lifestyle. The latest Retirement Plans are as

below

1. Reliance Total Investment Plan Series II Pension

2. Reliance Golden Years Plan

3. Reliance Golden Years Plan Value

4. Reliance Golden Years Plan Plus


6. Reliance Automatic Investment Plan

7. Reliance Money Guarantee Plan

Child Plans

Save systematically and secure your childs future needs by investing in Reliance

Child Plans. You can always be there for your child when he or she needs you.

The Childs plans are as below

1. Reliance Child plan

2. Reliance Secure Child plan


Market Return Plan
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Under This plan the investment risk in the investment portfolio is borne by the

policyholder.

key features

Twin benefit of market linked return and insurance protection

A unit linked plan, different from traditional life insurance products with

maximum maturity age of 80 years.

Option to create your own portfolio depending on your risk appetite.

Choose from four different investment funds

Flexibility to switch between funds

Option to pay regular as well as single premium & top- ups

Option to package your policy with accidental rider

Flexibility to increase the sum assured

Liquidity through partial withdrawals

How does this plan work

The premium paid by the client net of premium allocation charges is invested

in fund/funds of your choice and units are allocated depending on the price of

units for the fund/funds. The fund value is the total value of units that you

hold in the fund/funds. The mortality charges and policy administration

charges are ducted through cancellation of units whereas the fund

management charge is priced in the unit value.

Benefits

Life cover Assured: in case of unfortunate loss of life, the beneficiary will get

sum assured or fund value, whichever is higher. The client can choose the

basic sum assured within the minimum and maximum levels mentioned

below.

Minimum sum Assured:

Regular premium: annualized premium for 5 years or annualized

premium for half the policy term, whichever is higher.


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Single premium: 125% of the single premium.

Maximum sum Assured

No limit (50000 for age up to 12 years)

Maturity Benefits

On survival to maturity the fund value on maturity will be paid out.

Rider Benefits

The Client can add the Accidental Death & Total and Permanent Disablement

Benefit Rider (available only with the regular premium option).

This benefit doubles the life coverage in case of accidental death or accidental

total and permanent disablement at a very nominal additional cost. The maximum

cover is Rs. 50, 00,000 per life.

In case of accidental death of the life assured during the policy term, the accident

benefit sum assured will be paid immediately in a lump sum.

In case of accidental total and permanent disablement, 1/10th of the accident

benefit sum assured will be paid at the end of each year for ten years. If the total

and permanent disablement has commenced, the accidental death benefit cover

ceases.

In case of maturity or on death of the life assured before payment of all

installments of accidental total and permanent disablement benefits, the remaining

unpaid installments of any will be paid in one lump sum along with death or

maturity benefit.

Accidental total and permanent disablement means disability caused by bodily

injury, which causes permanent inability to perform any occupation or to engage

in any activities for remuneration or profits. This disability should last for at least

6 months before being eligible for accidental total and permanent disablement

benefits.

Accidental total and permanent disablement includes loss of both arms and both

legs or one arm and one leg or of both eyes. Loss of arms or legs means

dismemberment by amputation of the entire hand or foot. Loss of eyes means

entire and irrecoverable loss of sight.


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Investment would be at least 60% in fixed interest securities and maximum 40%

in equities.

4. Equity Fund:

The investment objective of this fund is to provide policyholders with high

exposure to equities and the possibility of investment returns, which generate a

high real rate of return in the long term while recognizing that there is a

significant probability of negative investment returns in the short term. This fund

offers a totally equity based investment option. Your returns depend entirely upon

the performance of the equity market. The risk profile of this fund is high. The

higher risk of this portfolio means that expected returns would also be higher.

Investment would not exceed 30% in bank deposits and may be up to 100% inequities.

Value of Units:

The market value of assets plus/less expenses

incurred

In the purchase/sale of assets plus current assets

plus

Any accrued income net of fund management

charges

Less current liabilities less provision

Unit Value =

Total number of units on issue (before any new

units

are allocated/redeemed.)


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Who can Buy the product

What is the policy term

Minimum policy term 5 years

Maximum policy term 40 years

Flexible premium payment modes:

Choose from five premium payment modes.

a) Annual minimum premium is Rs. 10,000.

b) Half yearly minimum premium is Rs. 5,000.

c) Quarterly minimum premium is Rs. 2,500.

d) Monthly minimum premium is Rs. 1,000.

e) Single premium minimum premium is Rs. 25,000.

Charges under the plan:

1. Premium allocation charge

For regular premium policies:

Term of the policy as below

Years 5-9 10 - 14 15+

First year 10% 15% 20%

Thereafter 5% 5% 5%

(The premium allocation charge for single premium & top ups is 2%.)

2. Policy Administration charges:

Minimum age at entry 30 days

Maximum age at entry 65 years

Maximum age at maturity 80 years


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Rs. 40 will be deducted from your unit account each month.

3. Fund Management Charges:

(The fund management charges will be deducted on a daily basis.)

Revision of charges:

The fund management charges are subject to revision at any time, but hey will not

exceed 2% p.a. for the capital secure fund and 2.5% p.a. for the other funds.

Any changes made to the charges under this policy will be subject to IRDA

approval.

4. Partial Withdrawal Charges:

Rs. 100 per withdrawal will be deducted from your unit account.

5. Switching Charge:

1% of the amount switched, with a maximum of Rs. 1,000/- per switch.

6. Mortality Charges:

The Mortality charges, based on your attained age, are determined using 1/12 th of

the charges are different.

7. Surrender Charge:

This charge is levied on the unit fund at the time of surrender of the policy as

under:

Unit Linked Funds Annual Rate

Capital Secure 1.50%

Balanced Fund 1.50%

Growth Fund 1.75%

Equity Fund 1.75%


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8. Service Tax Charge

This charge will be levied on mortality, accident & disability benefit charges. The

level of this charge will be as per the rate of service tax on risk premium levied by

the government from time to time the correct rate of service tax is 12.36% this

charge shall be collected along with charges.

How safe is your investment

The investments made in the unit funds are subject to investment risks

associated with capital markets and the NAVs of the units may go up or

down based on the performance of the fund and the factors influencing the

capital market, and the insured is responsible for his/her decisions.

The unit price is a reflection of the financial and equity/debt market

conditions and can increase or decrease at any time due to this.

Benefits payable under the policy will be made according o the tax laws

and other regulations in force at that time.

There are no guarantees for any fund of any kind under this policy. The

benefit payable on maturity will be equal to the value of your units.

The name in the funds in n way indicates the returns derived from them.

Number of years premiums paid Surrender charge as percentage of

fund value

Less than 1 100%

1 50%

2 20%

3 and more NIL


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Please note that Reliance life Insurance company limited is only the name

of the insurance company and Reliance market return plan is only the

name of the unit linked life insurance policy and does not in anyway

indicate the quality of the policy or its future prospects or returns

Free Look Period.

In case the policyholder disagrees with any of the terms and conditions of the

policy, he may return the policy to the company within 15 days of its receipt for

cancellation, stating his/her objections in which case the company will refund an

amount equal to the non allocated premium plus the charges levied by

cancellation of units plus fund value as on the date of receipt of the request in

writing for cancellation, less the proportionate premium for the period the

company has been on risk and the expenses incurred by the company medical

examination and stamp duty charges. If the risk acceptance date falls within

cooling off period, then on cancellation RLIC shall pay fund value less of

charges.


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The Concept of Mutual FundA mutual fund is a common pool of money into which investors place their

contributions that are to be invested in accordance with a stated objective. The

ownership of the fund is thus joint and mutual; the fund belongs to all

investors

Reliance Mutual Fund

Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai

Ambani Group, is India's leading Mutual Fund, with average Assets under

Management of Rs. 90,813 crores for the month of June 2008, and an

investor base of over 6.7 million. Reliance Mutual Fund offers investors a

well rounded portfolio of products to meet varying investor requirements.

Reliance Mutual Fund has a presence in 300 cities across the country and

constantly endeavors to launch innovative products and customer service

initiatives to increase value to investors. Reliance Mutual Fund schemes

are managed by Reliance Capital Asset Management Ltd., a wholly

owned subsidiary of Reliance Capital Ltd.


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Types of Mutual Funds on the Basis of Risk Vs Returns

Frequently used term in Mutual Funds

Net Asset Value (NAV)

Sector Funds

Risk

Money Market Funds

Floaters

Income Funds

Gilt Funds

MIPs

Balanced Funds

Diversified EquityFunds

Re

turns


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Net Asset Value is the market value of the assets of the scheme minus its

liabilities. The per unit NAV is the net asset value of the scheme divided by the

number of units outstanding on the Valuation Date.

Sale Price

Is the price you pay when you invest in a scheme. Also called Offer Price. It may

include a sales load.

Repurchase Price

Is the price at which a close-ended scheme repurchases its units and it may

include a back-end load. This is also called Bid Price

Redemption Price

Is the price at which open-ended schemes repurchase their units and close-ended

schemes redeem their units on maturity? Such prices are NAV related.

Sales Load

Is a charge collected by a scheme when it sells the units. Also called, Front-end

load. Schemes that do not charge a load are called No Load schemes

Repurchase or Back-end Load

Is a charge collected by a scheme when it buys back the units from the unit

holders.

Types of Reliance Mutual Funds

1. Reliance Growth Fund

2. Reliance Vision Fund

3. Reliance Banking Fund

4. Reliance Diversified Power Sector Fund

5. Reliance Pharma Fund

6. Reliance Media & Entertainment Fund


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7. Reliance NRI Equity Fund

8. Reliance Equity opportunities Fund

9. Reliance Index Fund

10. Reliance Tax Saver (ELSS) Fund

11. Reliance Equity Fund12. Reliance Long Term Equity Fund

13. Reliance Regular Saving Fund

The key term in mutual funds

Dividend Policy: Dividend will be distributed from the available distributable

surplus after the deduction of the divided distribution surplus after the deduction

of the dividend distribution tax and the applicable surcharge, if any. The mutual

fund is not guaranteeing or assuring any dividend. Pease read the offer document

for details. Further payment of all the dividends shall be in compliance with SEBI

circular No. SEBI/IMD/CIR No. 1/64057/06 dated 4/4/06.

Applicable NAV: Sale of units by reliance mutual fund: in respect of valid

applications received up to 3 p.m. by the mutual fund alongwith a local cheque or

a demand draft payable at par at the place where the application is

received, the closing NAV of the day on which application is received shall be

applicable.

Repurchase including Switch-out: in respect of valid applications received upto

3 pm by the mutual fund, same days closing NAV shall be applicable. In respect

of valid applications received after 3 p.m. by the mutual fund, the closing NAV of

the next business day shall be applicable.

Daily net Asset Value(NAV) publication: the NAV will be declared on all

working days and will be published in 2 newspaper. NAV can also be viewed on

www.reliancemutualfund.com and www.amfiindia.com .Tax Benefits to the mutual fund: Reliance Mutual Fund is a Mutual fund

registered with the securities & exchange board of India and hence the entire

income of the mutual fund will be exempt from income tax in accordance with the

provisions of section 10(23D) of the income tax act, 1961. The mutual fund will
http://www.reliancemutualfund.com/http://www.amfiindia.com/http://www.reliancemutualfund.com/http://www.amfiindia.com/


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receive all income without any deduction of tax at source under the provisions of

section 196(iv) of the act.

An exemption has been granted under the finance (No.2) act, 2004 to open ended

equity oriented mutual funds from paying distribution tax on income distributed

without any time limit, effective from 1 April 2004.

Securities transaction Tax:

Name of Transaction Payable by Rate of Tax

Purchase and sale ofequity shares or units ofequity oriented mutualfunds on a recognizedstock exchange ondelivery basis

Both purchaser as well asseller

0.125%

Sale on stock exchange ofequity shares or units ofequity oriented mutualfunds on non- deliverybasis

Seller 0.025%

sale of derivativesreorganized stock exchange

Seller 0.017%

Sale of units of equityoriented mutual funds tothe mutual fund

Seller 0.25%

There are two types of investment in Mutual Funds.

Lump Sum

Systematic Investment Plan(SIP)

.

Lump sum: In Lump sum the investment is only one times that

is of Rs. 5,000. and if the investment is monthly then the investment will be

6,000/-.

Systematic Investment Plan(SIP) :

We have already mentioned about SIPs in brief in the previous pages but now

going into details, we will see how the power of compounding could benefit us. In

such case, every small amounts invested regularly can grow substantially. SIP


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gives a clear picture of how an early and regular investment can help the investor

in wealth creation. Due to its unlimited advantages SIP could be redefined as a

methodology of fund investing regularly to benefit regularly from the stock

market volatility. In the later sections we will see how returns generated from

some of the SIPs have outperformed their benchmark. But before moving on tothat lets have a look at some of the top performing SIPs and their return for 1

year:

SchemeAmount NAV

NAVDate

TotalAmount

Reliance diversifiedpower sector retail 1000 62.74

30/5/2008 14524.07

Reliance regular

savings equity 1000

22.20

8

30/5/20

08

13584.94

4principal global

opportunities fund 1000 18.8630/5/2008

14247.728

DWS investment

opportunities fund 1000 35.3130/5/2008

13791.157

BOB growth fund 1000 42.1430/5/2008

13769.152

In the above chart, we can see how if we start investing Rs.1000 per month then

what return well get for the total investment of Rs. 12000. There is reliance

diversified power sector retail giving the maximum returns of Rs. 2524.07 per

year which comes to 21% roughly. Next we can see if anybody would have

undertaken the SIP in Principal would have got returns of app. 18%. We can see

reliance regular savings equity, DWS investment opportunities and BOB growth

fund giving returns of 13.20%, 14.92%, and 14.74% respectively which is greater

than any other monthly investment options. Thus we can easily make out how

SIP is beneficial for us. Its hassle free, it forces the investors to save and get theminto the habit of saving. Also paying a small amount of Rs. 1000 is easy and

convenient for them, thus putting no pressure on their pockets.

Now we will analyze some of the equity fund SIP s of Birla Sunlife with BSE 200

and bank fixed deposits In a tabular format as well as graphical.


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Exposure of Mutual Funds Companies in India

The concept of mutual funds in India dates back to the year 1963. The era

between 1963 and 1987 marked the existence of only one mutual fund

company in India with Rs. 67bn assets under management (AUM), by the

end of its monopoly era, the Unit Trust of India (UTI). By the end of the

80s decade, few other mutual fund companies in India took their position

in mutual fund market.

The new entries of mutual fund companies in India were SBI Mutual Fund,

Canbank Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank

Mutual Fund, Bank of India Mutual Fund.

The succeeding decade showed a new horizon in Indian mutual fund

industry. By the end of 1993, the total AUM of the industry was Rs. 470.04

bn. The private sector funds started penetrating the fund families. In the

same year the first Mutual Fund Regulations came into existence with re-

registering all mutual funds except UTI. The regulations were further given

a revised shape in 1996.

Kothari Pioneer was the first private sector mutual fund company in India

which has now merged with Franklin Templeton. Just after ten years with

private sector players penetration, the total assets rose up to Rs. 1218.05bn. Today there are 33 mutual fund companies in India in which some are

as below.

ABN AMRO Mutual Funds

Birla Sun life mutual Funds

Bank of Baroda Mutual Fund

HDFC Mutual Fund

HSBC Mutual Fund

ING Vysya Mutual Fund

Prudential ICICI Mutual Fund

Sahara Mutual Fund

State Bank of India Mutual Fund


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Tata Mutual Fund (TMF)

Kotak Mahindra Asset Management Company (KMAMC)

UTI Asset Management Company Private Limited

Reliance Mutual Fund (RMF)

Standard Chartered Mutual Fund

Escorts Mutual Fund

Alliance Capital Mutual Fund

Benchmark Mutual Fund

Canbank Mutual Fund

Chola Mutual Fund

LIC Mutual Fund

GIC Mutual Fund

Working of a Mutual Fund

Terms and conditions

This facility offered only to the investors having bank accounts in selected

cities which are specific in the form of the SIP.

Submit the following document at least 21 working days before the first

SIP date for ECS (Electronic clearing Service).


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Regulatory oversight: Mutual funds are subject to many government

regulations that protect investors from fraud.

Liquidity: It's easy to get your money out of a mutual fund. Write a check,

make a call, and you've got the cash.

Convenience: You can usually buy mutual fund shares by mail, phone, or

over the Internet.

Low cost: Mutual fund expenses are often no more than 1.5 percent of

your investment. Expenses for Index Funds are less than that, because

index funds are not actively managed. Instead, they automatically buy

stock in companies that are listed on a specific index

Transparency

Flexibility

Choice of schemes

Tax benefits

Well regulated

Drawbacks of Mutual Funds

Mutual funds have their drawbacks and may not be for everyone:

No Guarantees: No investment is risk free. If the entire stock market

declines in value, the value of mutual fund shares will go down as well, no

matter how balanced the portfolio. Investors encounter fewer risks when

they invest in mutual funds than when they buy and sell stocks on their

own. However, anyone who invests through a mutual fund runs the risk of

losing money.

Fees and commissions: All funds charge administrative fees to cover their

day-to-day expenses. Some funds also charge sales commissions or


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"loads" to compensate brokers, financial consultants, or financial planners.

Even if you don't use a broker or other financial adviser, you will pay a

sales commission if you buy shares in a Load Fund.

Taxes: During a typical year, most actively managed mutual funds sell

anywhere from 20 to 70 percent of the securities in their portfolios. If your

fund makes a profit on its sales, you will pay taxes on the income you

receive, even if you reinvest the money you made.

Management risk: When you invest in a mutual fund, you depend on the

fund's manager to make the right decisions regarding the fund's portfolio.

If the manager does not perform as well as you had hoped, you might not

make as much money on your investment as you expected. Of course, if

you invest in Index Funds, you forego management risk, because these

funds do not employ managers


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CHAPTER 3:-Project Profile And Unit Linked

Plans Of Reliance Capital

RESEARCH MEATHODOLOGY

o significancce of the study

o Objective And Scope Of The

Study

o Hypothesis

o Sample size and type

o Questionnaire

o

Statistical tool

ULIP PLANS


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1-RELIANCE AUTOMATIC INVESTMENT PLAN:-

Key Features Reliance Automatic Investment Plan

Two plan option to choose from readymade and tailor- made.

Freedom to decide your own fund mix based on your riskProfile under the tailor-made plane

Regular ,limited , single premium paying option

Unmatched flexibility through our exchange option

Liquidity in the form of partial withdrawal

The Key Benifits Of Reliance Automatic Investment Plan

Are As Follows

A smart plan which adapts to your changing risk profile withincreasing age.

Option to lower the average cost of unit through systematic transferof your fund.

Flexibility to switch between fund and plan.

Option for additional insurance cover available through riders.

How Does This Plan Work

As a customer you have the liberty to choose between the readymade and tailor-made plan option . The premium contributionsmade by you, net of premium allocation charges and sum assuredrelated charges are invested in fund of your choose and unit areallocated depending on the price of unit for the fund

The fund value is the total value of units that you hold in the fund.The mortality charges and policy administration charges arededucted through cancellation of units, whereas the fundmanagement charge is priced in the units value.

TAX BENIFITE


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As per current tax rules premium paid are eligible for taxdeduction under sec.80c of the income tax act,1961. Provided thepremium in any years during the term of the policy does not exceed20% of the sum assured, maturity and withdrawals are eligible fortax benefit under sec.10(10d). Death benefits are tax free undersec.10(10)d of the income tax act,1961. Under sec 80c premiums

up to rs.100,000 are allowanced as deduction from your taxableincome.

who can buy this product ?

reliance automatic investment plan

Minimum age at entry: 18 years last birthday

Maximum age at entry: 59 years last birthday

Minimum age at vesting : 45 years last birthday

Maximum age at vesting : 64 years last birthday

Minimum policy term: 5 years or up to age 45years, if later

minimum sum assured : 5 times of theannualised premium

Maximum sum assured : 50times of the annualisedpremium

2- RELIANCE SUPER INVESTASSURE PLAN


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KEY FETURE RELIANCE INVESTASSURE PLAN

Twin benefits of marke linked return and insurance protection

Investment opportunity with flexibility choose from 8 pureinvestment fund option

Option to pay top up premium's

Liquidity in the form of partial withdrawals A host of optional rider benefits to enhance protection cover

How does the reliance super investassure plan ?

As a customer you have the liberty to choose between 8 fund optionsthe premium contribution made by you, net of premium allocationcharges ae invested in fund of your choice. The units are allocateddepending on the price of units of the funds.The fund value is the total value of units that u hold across all the unit-linked funds.

Minimum Sun Assured: Annualized Premium Payable For 5 Years.Maximum Sum Assured : Depends On The Age At Entry

age at entry (last birthday) maximum sum assured

0 to 40 20 times of annualized premium




BENEFITS

LIFE COVER BENEFITS


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if death of the life assured occur before commencementof risk cover#, total fund value as on the date ofintimation of death will be paid.

if death of the life assured occurs on or after 60th

birthday, the higher of 1or 2 will be paid1. sum assure( less all partial withdrawals made from the

policy fund during the 24 months before attaining60th birthday withdrawals made from the basic policyfund after attaining 60th birthday)

2. total fund value as the date of intimation of death.

MATURITY BENIFIT

on survival of the life assured to maturity, the total fund value will bepaid. the policy terminates on payment of maturity benefits .

RIDER BENEFITSyou can add following optional rider benefits

reliance major surgical benefit rider

reliance critical conditions(25) rider

reliance term life insurance term benefits

reliance accidental death and total and permanent disablementrider

RESEARCH METHODOLOGY


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Research Methodology deals with, the procedure adopted to carry out the study.

According to green and Tull:

A research design is the specification of methods and procedures acquiring the

information needed It is the overall operational pattern or framework of the

project that stipulates which information is to be collected from which sources bywhat procedures. For conducting the study, the researcher has adopted both

primary as secondary method of data collection.

Data sources:

Research is totally based on primary data. Secondary data can be

used only for the reference. Research has been done by primary

data collection, and primary data has been collected by interacting

with various people.

SIGNIFICANCE


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The purpose of research is to discover answer to questions through the

application of scientific procedures. The main aim of research is to find out truth

which is hidden and which has not been discovered as yet. Though each research

study has its own specific purpose, we may think of research objectives as falling

into a number of following broad grouping: To check the awareness level of people about ulip schemes.

To know the reasons for increasing trend of unit linked insurance plan.

To know how ULIP are differ from Traditional plans means how they

give better returns than traditional plan.

Comparison of investment plan with other tax saving instruments.

Comparison of ULIP with other investment instrument available in

the market.

OBJECTIVE

To determine reasons behind opting for an insurance.

To provide the company with information of customer's Insurance policy if

they have any and reasons for opting for that particular policies.

To know the most preferred policy.

To determine customers perception towards private insurance companies and

their expectation form private insurance companies.

To determine the feedback on services provided by any other

insurance agent.

To study the types of benefits provided by insurance services.


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To determine the use of Internet for valuable information and

decision-making process.

RESEARCH DESIGN

NON-PROBABILITY

DISCRIPTIVE RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The

sources of information are both primary & secondary. A well-structured

questionnaire was prepared and personal interviews were conducted to collect the

customers perception and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

SamplingTechnique:

Initially, a rough draft was prepared keeping in mind the objective of the research.

A pilot study was done in order to know the accuracy of the Questionnaire. The

final Questionnaire was arrived only after certain important changes were done.

Thus my sampling came out to be judemental and convinent

Sampling Unit:

The respondants who were asked to fill out questionnaires are the sampling units.

These comprise of customer of life insurance..


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Sample size:

The sample size was restricted to only 30, which comprised of mainly peoples

from different regions of Agra due to time constraints.

Sampling Area :

The area of the research was AGRA, India.

LIMITATIONS OF THE RESEARCH


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1. The research is confined to a certain parts of AGRA and does not

necessarily shows a pattern applicable to all of Country.

2. Some respondents were reluctant to divulge personal information which can

affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can

change very quickly. The environmental changes are vital to be considered in

order to assimilate the findings.


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CHAPTER 5

DATA INTERPRETATION AND

ANALYSIS

DATA ANALYSIS & INTERPRETATION


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Q 1. Do you make investments?

CATEGORY NO.OF PEOPLES %

YES 22 73

NO 8 27

Q 2. What are the reasons to make investments?

OPTION PEOPLE %

0%

73%

27%CATEGO

YES

NO


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TAX SAVING 7 23.33333SECURE

INVESTMENT

6

20

LIFE COVER 9 30RETURN 5 16.66667OTHER 3 10

3. Which companys policy you are having?

COMPANIES PEOPLE %

LIC 18 61

Reliance 4 8

23%

20%30%

17%10%

PEOPLE

TAX SAVING

SECURE INVESTME

LIFE COVER

RETURN

OTHER


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Q.4 Are you satisfied with your Investment?

CATEGORIES NO. OF PEPOLE %

YES 16 58NO 14 42

NO. OF PEPOLE

58%

42%

Q5. Have you heard about private insurance company reliance

capital?


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YES 16 58

NO 14 42

NO. OF PEPOLE

58%

42%

Q6. How did you come to know about the company.



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ADVERTISEMENT 12 40

WORD OF MOUTH 8 29

YOUR BANK 3 7

INSURANCE AGENT 7 24

NO. OF PEPOLE

40%

29%

7%

24%

ADVERTISEMEN

WORD OF MOUT

YOUR BANK

INSURANCE AGE

Q7.what kind of plan do you have?

CATEGORIES NO.OF PEPOLE TOTAL%

ENDOWNMENT 6 19

TERM 4 11

ULIP 15 57


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NO POLICY HOLDER 5 13

NO.OF PEPOLE

19%

11%

57%

13%

ENDOWNMENT

TERM

ULIP

NO POLICY HOLD

Q8 Are you satisfied with your Investment?

CATEGORIES NO. OF PEOPLE %

SATISFIED 16 56

UNSATISFIED 9 31

NO POLICY

HOLDER

5 13


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NO. OF PEOPLE

56%31%

13%

SATISFIED

UNSATISFIED

NO POLICY HOLD


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Q9.Are you aware about the benefit and the condition about

your plan?


COMPLETE AWARE 8 23

ADEQUATE AWARE 5 17

CONFUSE 2 13

LESS KNOWLEDGE 7 19

COMPLETE

UNAWARE

4 15

NO POLICY HOLDER 2 13

NO. OF PEPOLE

23%

17%

13%19%

15%

13% COMPLETE AWARE

ADEQUATE AWARE

CONFUSE

LESS KNOWLEDGE

COMPLETE UNAWA

NO POLICY HOLDER


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YES 17 59

NO 13 41

NO.OF PEPOLE

59%

41%

Y

N

Q12. Do you think reliance automatic investment plan

of reliance capital is better other plans?

CATEGORIES NO.OF PEPOLE %


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YES 10 33

NO 7 26

DONT KNOW 13 41

NO.OF PEPOLE

33%

26%

41%YES

NO

DONT KN

Q13. why did you purchase insurance plan?


FOR PROTECTION 4 15


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VERY SAFE 6 20

NON POLICY HOLDER 7 15

NO.OF PEPOLE

13%

18%

34%

20%

15%VERY RISKY

MODERATE

SAFE

VERY SAFE

NON POLICY HOLD


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CHAPTER 5FINDING / SUGGESTION

FINDINGS

Now people mainly prefer ULIP for saving, then

bank then Post-Office and after that prefer P.P.F. and other.

The main reason behind the insurance plan or ULIP preference

is switching facility or option to choose fund.


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Mainly people prefer low growth safe return as

compare to high growth some risky return.

People mainly purchase life insurance policy for

investment and then for tax-saving they give 2nd preference to

protection.

Approximately 20% people do not know what is

insurance.

I also find that people mainly prefer L.I.C. as

compare to private insurance company.

In my survey, I also find that only 56% people are

satisfied with current policy.

In also find that only 58% people know about theICICI Prudential Life Insurance.

SUGGESTION

Brand awarness about the reliance capitals ulip plans.

Company preferences should be considered.


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After sales service should also be provided by the agents.

Different promotin schemes should be adopte by the company.

Ex- banners, holdings , road shows etc.

They should target rural market as well.


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CHAPTER 6

CONCLUSION

CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some interesting

trends which can be seen in the above analysis. A general impression that we

gathered during Data collection was the immense awareness and knowledge

among people about various companies and their insurance products. People are


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beginning to look beyond LIC for their insurance needs and are willing to trust

private players with their hard earned money.

People in general have been impression by the marketing and advertising

campaigns of insurance companies. A high penetration of print , radio and

Television ad campaigns over the years is beginning to have its impact now.

The general satisfaction levels among public with regards to policy and agents

still requires improvement. But therein lays the opportunity for a relative new

comer like ING. LIC has never been known for prompt service or customer

oriented methods and Reliance can build on these factors.


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Capital Appreciation ( )

secure investment ( )

Life cover ( )

Other ( )

Q 3 If Yes, which company's policy you are having?Reliance ( ) Lic ( )

icici ( ) other ( )

Q4. Are you satisfied with your Investment?

YES ( ) NO ( )

Q 5. Is private life insurance companies reliable for Investment?

Yes ( ) No ( )

Q 6. Have you heard about private insurance company reliance

capital?

Yes ( ) No ( )

Q 7. From where did you come to know about reliance capital?

Electronic media ( ) print media ( )

Seminar ( ) Work shops ( )

Advisor ( ) others ( )

Q8 Are you aware about the benefit and the condition about

your plan?

COMPLETE AWARE ( )

ADEQUATE AWARE ( )

CONFUSE ( )

LESS KNOWLEDGE ( )


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COMPLETE UN

Documents

a study into ulip plans reliance capital