MANAGEMENT THESIS REPORT ON

“A COMPARATIVE STUDY ON ‘ULIP’ POLICES OFFERD BY ICICI AND COMPARISON TO HDFC CUSTEMER SATISFACTION.

SUBMITTED BY

         ----------------------------------

 FACULTY SUPERVISOR

                              CONTENTS        

CHAPTER -1       INTRODUCTION                          

• Elements of Insurance
• Types of Insurance
• Advantages of Insurance
• Disadvantages                          

CHAPTER -2        INDUSTRY PROFILE        

• Insurance Sector in India
• Different players in Life Insurance Industry
• Private insurers share over two years
• Structure of an Insurance Company

        CHAPTER -3    COMPANY PROFILE                                           

• HDFC
• OLD MUTUAL
• PRODUCTS
• HDFC BANK
• ICICI PRUDENTIAL
• PRODUCTS                                                 

CHAPTER-4 MANAGEMENT

• OBJECTIVES

• METHODOLOGY

• METHOD OF DATA COLLECTION
• DATA ANALYSIS                                

CHAPTER 5      DATA ANALYIS & INTERPRETATION                

• Table: Presentation of Data
• Graphical Representation of Data
• Interpretations

CHAPTER 6     SUMMARY

• Findings                                                                
• Suggestions                                                                 
• Conclusion                                                        

CHAPTER-1

            INTRODUCTION

Risk and uncertainty are incidental to life. Man may meet an ultimately death. He may suffer from accident, destruction of property, fire, sea perils, floods, earthquakes and other natural calamities. Whenever there is uncertainty, there is a risk as well as insecurity. It is to provide against risk and insecurity that insurance.

 Came into being. Insurance does not avert or eliminate loss arising from uncertain events; it only spreads the loss over a large number of people who insure themselves against that risk, the main principle underlying insurance is pooling the risks. It is thus a co-operative device to spread the loss caused by a risk over a large number of persons who are also exposed to the same risk and insure themselves against the risk.

Elements of Insurance

a)  Contract of Insurance

A contact of insurance is a contract by which a person in consideration of a sum of money    undertakes to make good the loss of another against a specified risk.

b) Insurer and Insured.

The person undertaking the risk is called the insurer, assurer or underwriter and the person whose loss is to be made good is called insured or assured.

c) Policy

The instrument in which the contract of insurance is generally embodied is called policy. The policy is not a contract; it is the evidence of contract.

 d) Premium

e) Subject Matter of Insurance

The thing or property insured is called Subject Ma The consideration for which the insurer undertakes to indemnify the assured against the risk is called premium.

f) Perils Insured Against

That which is insured is the loss arising from uncertain events or causalities.

Types of Insurance

There are two major categories in the insurance.

I. Life Insurance

   In this case a certain fixed amount becomes payable on the death of the assured or on the expiry of a certain period, whichever is earlier.

II. General Insurance

   This is insurance for which other than life risk.

   General Insurance Includes Fire Insurance, Marine Insurance, And Other Insurance.

Advantages of Insurance

• It is the best way of covering the risk than any other instrument.
• Now a day’s investment in insurance is also possible and it is gaining smart amount of return.
• It can be used as tax saving tool.

Disadvantages  

• It can be affordable only to whom who have enough saving.
• As mortality risk is less, the insured will not always benefited.
• The insurance company will charge some amount as a mortality risk which is a expenses to the insured.  

 Terms and conditions are the major issues in the time of settlement. So it is very important know all the above matters before dealing with any insurance.

CHAPTER-2

INDUSTRY PROFILE

  This part consists of the details about the Industry profile and company profile, Function of various departments of the company are explained in the section which gives a brief idea about the overall functioning of the company. This part also consists of the organization structure and the organization study of the company with respect to 7-s model of McKinney.    

 The company should included the special features in the policy like money back, unit linked plans, benefits on critical illness, Major

Surgical benefits.

Effective promotional measures should be taking to expand the market share, in order over come competitors. More numbers of branches should be opened and more no of customers are not aware of HDFC pru life insurance polices

  HDFC is carrying out less adverstiments as compared to the other insurance companies as buyer show buying inertia resistances to buy insurance, hence heavy advertisements expenses is required. The above mentions are including in the recommendation.

Insurance Sector in India:

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

A brief history of the Insurance sector:

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

Some of the important milestones in the life insurance business in India are:

• 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.
• 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.
• 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
• 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

• 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
• 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
• 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.
• 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.
• 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

Insurance sector reforms 1993:

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…"

In 1994, the committee submitted the report and some of the key recommendations included:

Structure

• Government stake in the insurance Companies to be brought down to 50%.
• Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations
• All the insurance companies should be given greater freedom to operate

Competition

• Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry
• No Company should deal in both Life and General Insurance through a single entity
• Foreign companies may be allowed to enter the industry in collaboration with the domestic companies
• Postal Life Insurance should be allowed to operate in the rural market.

Regulatory Body

• The Insurance Act should be changed
• An Insurance Regulatory body should be set up
• Controller of Insurance (Currently a part from the Finance Ministry) should be made independent

Investments

• Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%
• GIC and its subsidiaries are not to hold more than 5% in any company (Their current holdings to be brought down to this level over a period of time)

Customer Service

Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

Figures in the sector

             The Insurance Regulatory and Development bill is now an Act. With this India is now the cynosure of all the global insurance players. Numerous players, both Indian and foreign, have announced their intention to start their insurance shops in India. IRDA, under the chairmanship of Mr. Rang chary, opened the window for applying licenses in India on the 16th of August. Dabur-Allstate and Prudential-HDFC were the first of the block to apply on the very first day. But before any one start to talk about the insurance sector in India, it is important to know the figures that entice each and every body in the sector.

Table No: 1

India has an enormous middle-class that can afford to buy life, health, and disability and pension plan products. The low level of penetration of life insurance in India compared to other developed nations can be judged by a comparison of per capita life premium.

Table No: 2

Country wise Insurance data

Source: Various Newspapers

Clearly, there is considerable scope to raise per capita life premium if the market is effectively tapped. India has traditionally been high savings oriented country - often described as being on par with the thrifty Japan. Insurance sector in the US of A is as big in size as the banking industry there. This gives us an idea of how important the sector is. Insurance sector channelizes the savings of the people to long-term investments. In India where infrastructure is said to be of critical importance, this sector will bring the nations own money for the nation.

Different players in Life Insurance Industry:

Life Insurance Corporation of India:

After independence LIC had enjoyed the monopoly position in the insurance industry. It was established in 1956 as a Government of India enterprise, till today it is the largest provider of Life Insurance service in the country.

                                                            Table No: 3

Life Insurance Corporation of India

CHAPTER 3

COMPANY PROFILE:

HDFC Bank:

HDFC Bank is India’s second largest bank with an asset base of Rs. 106812 crore. HDFC Bank provides a broad spectrum of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The Bank services a growing customer base of more than 7 million customer accounts and 5 million bondholders’ accounts through a multi-channel access network. This includes about 450 branches and extension counters, 1675 ATMs, call centers and Internet banking. HDFC Bank posted a net profit of Rs.1, 206 crore for the year ended March 31, 2003. HDFC Bank is the only Indian company to be rated above the country rating by the international rating agency Moody's   and the only Indian company to be awarded an investment grade international credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies.

ICICI Prudential:

Established in 1848, prudential plc is a leading international financial services company in the UK, with around US$250 billion funds under management and more than 16 million customers worldwide. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is

UK''s largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923,

Prudential has championed customer-centric products and services, supported by over 60,000 staff and agents across the region.

HDFC and Prudential came together in 1993 to form Prudential HDFC Asset Management Company, which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to customer. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form HDFC Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions.

HDFC PRUDENTIAL LIFE INSURANCE COMPANY LTD

HDFC Prudential Life Insurance Company is a joint venture between HDFC Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. HDFC Prudential was amongst the first private sector insurance company to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

HDFC Prudential's equity base stands at Rs. 675 crore with HDFC Bank and Prudential plc holding 74% and 26% stake respectively. In the year ended March 31, 2004, the company had issued over 430,000 policies, for a total sum assured of over Rs 8,000 crore and premium income in excess of Rs. 980 crore. Today the company is the #1 private life insurers in the country

                                                                          PRODUCT PROFILE

PRODUCTS
Insurance Solutions for Individuals:

HDFC Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its 17 products can be enhanced with up to 6 riders, to create a customized solution for each policyholder.

a) Savings Solutions

• Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection.

• Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.
• Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection.
• Save n Protect is a traditional endowment savings plan that offers life protection along with adequate returns.

• Cash back is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage, expenses for a child’s higher education or purchase of an asset.
  b) Protection Solutions

Lifeguard It is a protection plan, which offers life cover at very low cost. It is available in 3 options - level term assurance, level term assurance with return of premium and single premium.

c) Child Solutions
 Smart Kid child plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to

Provide money at important milestones in the child’s life. Smart Kid child planes are also available within unit-linked form - both single premium and regular premium.

d) Market-linked Solutions

• Life link II is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.
• Lifetime II offers customers the flexibility and control to customize the policy to meet the changing needs at different life stages. It offers 3 investment options - Growth Plan, Income Plan and Balanced Plan.

e) Retirement Solutions

     Forever Life is a retirement product targeted at individuals in their thirties.

• Secure plus Pension is a flexible pension plan that allows one to select between 3 levels of cover.
  Market-linked retirement products

• Lifetime Pension II is a regular premium market-linked pension plan.
• Life Link Pension II is a single premium market-linked pension plan.
  HDFC Prudential also launched ''Salaam Zindagi'', a social sector group insurance policy targeted at the economically underprivileged sections of the society.

Group Insurance Solutions

HDFC Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

• Group Gratuity Plan: HDFC Prudential group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.
• Group Superannuation Plan: HDFC Prudential offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group.
• Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirem.
• Group Term Plan: HDFC Prudential flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
• Flexible   Rider Optic

HDFC Prudential offers flexible riders, which can be added to the basic policy at a marginal cost.
1.  Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.
2.  Accident benefit: This rider option pays the sum assured under the rider on death due to accident.
3.  Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.
4. Major Surgical Assistance Benefit provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against 43 different surgical procedures.
5.  Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on Smart Kid, Secure Plus and
6.  Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with Secure Plus and Cash Plus.HDFC Prudential Life Insurance Company has reported an accelerated migration to equity-linked schemes despite the meltdown in the stock markets.

As opposed to traditional plans in which the corpus appreciation happens by virtue of the bonus amount declared by the insurance company, ULIPs give the customer the possibility of earning returns earned by market linked instruments. In ULIPs, a part of the premiums is deducted as charges.

The residual premium is invested in a fund that in turn invests in stocks or bonds. The value of investments alters with the performance of the underlying investments in the fund opted by the customer. The corpus on retirement is therefore a function of the performance of the underlying investment fund

HDFC Prudential ULIPs have four investment options that have been designed to match the investment objectives of the customer. Click here to know more about our Fund Options.

The five types of pension, specified with the traditional plans, are available to the customer with ULIP retirement solutions as well

Plan Unit Value (Rs. /unit)

Protector (Income) Plan 15.686  

Balancer (Balanced) Plan 26.87  

Maximize (Growth) Plan 58  

Pension Maximize (Growth) Plan 58.34  

Pension Balancer (Balanced) Plan 25.18  

Pension Protector (Income) Plan 14.0872  

Group Balanced Fund 17  

Group Debt Fund 12.9126  

Group Short Term debt fund 12.873  

Group Growth Fund 23.62  

Group Capital Guarantee Short Term Debt Fund 12.2962  

Maximize (Growth) Fund II 31.4  

Preserver (Short Term) Fund 12.3705  

Balancer (Balanced) Fund II 17.43

Protector (Income) Fund II 11.7193  

Pension Preserver (Short Term) Fund  12.3228  

Pension Maximize (Growth) Fund II 32.84  

Pension Protector (Income) Fund II 11.6896  

Pension Balancer (Balanced) Fund II 17.83  

Invest Shield Cash 11.7528  

Invest Shield Life 14.65  

Invest Shield Pension 14.8  

HDFC Prudential Life Maximize III 14.69  

HDFC Prudential Life Balancer III 12.48  

HDFC Prudential Life Protector III 11.0677  

HDFC Prudential Life Preserver III 11.2015  

HDFC Standard Life Insurance Company Limited

The Partnership: 

HDFC Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship.

The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture.

In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a handpicked team from HDFC to form the core project team, based in Mumbai. 

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank.

In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited.

Their ambition from the beginning was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the first life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured.

Their Mission ( as stated in the Company's website ):

To be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like-

•  Customer service of the highest order 
•  Value for money for customers 
•  Professionalism in carrying out business 
•  Innovative products to cater to different needs of different customers 
•  Use of technology to improve service standards 
•  Increasing market share 

Their Values:

•  SECURITY: Providing long term financial security to our policy holders will be our constant Endeavour. We will be do this by offering life insurance and pension products. 
•  TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust. 
•  INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. 

Their mission is to be the best new life insurance company in India and these are the values that will guide them in this. 

This bonus declaration is applicable only to policies under the following 'With Profits' plans:

 HDFC Endowment Assurance Plan

 HDFC Children’s Plan

 HDFC Money Back Plan

 HDFC Single Premium Whole of Life Plan

 HDFC Personal Pension Plan

 HDFC Savings Assurance Plan

 HDFC Assurance Plan

How does a 'With Profits' policy work?

Over the term of your policy, we invest the premiums that we receive from you and from other similar 'With Profits' policyholders in a 'With Profits' fund. We invest in a variety of assets to achieve an investment return on your policy. Benefits and expenses of your policy are paid out of this fund.

We use bonuses to give you a maturity value, which fairly reflects the performance of the fund (invest

tment or otherwise) over the term of the policy. The level of bonuses we allocate aims to deliver a fair share of the fund when the policy matures or on a death claim. Note: Additional benefits taken by you such as critical illness or accidental death benefits, offer protection for different circumstances and have no investment-related benefits. Hence they do not attract bonuses.

CHAPTER-4

MANAGEMENT THESIS TITLE:

 A COMPARATIVE STUDY ON ULIP POLICES OFFERED BY ICICI LIFE INSURANCE IN COMPARISON TO HDFC                  CUSTEMER SATISFACTION.

OBJECTIVES

1.  To study the  ULIP polices  of ICICI and HDFC life insurance

2. To know the uniqueness of ULIP plans    .

3. To study the existing business of insurance industry.

4. To study the awareness level towards ULIP among the people.

5. To study the Difference between two companies plans

6. To know the exact market share of both the company

METHODOLOGY

The study is conducting from AUGUST to July OCTOBER Population of the study consists existing customers and also potential customers in HASSAN With the use of “sampling” method 100 respondents were selected. The required data has been collected from primary and secondary sources. Primary data collected from respondents through structured questionnaire and the secondary data has been collected from journals, annual reports, and websites. Data has been analyzed using percentages and interpreted for meaningful inferences.

Sampling Technique:

           Sample Size                : 100 Customers

        Sample Method                : Random sampling method.

METHOD OF DATA COLLECTION:

When a survey is conducting to expand the market share and market growth, data gathering involve usage of both primary and secondary data.

1. Primary Data

1. Data is collected through questionnaire method from the Customers.
2. Direct interview with the Employees of HDFC Life Insurance.

2. Secondary Data

The study is mainly based on the data provided by fact sheets, broachers, official internet sites and advertising media. This is supplemented by information gathered during discussions with the company official

DATA ANALYSIS

Statistical tools used for analysis of data.

 After collecting data using various research instruments, it is to be classified and tabulated. Then only further analysis can be made. Classification of Data is the process of arranging data in to sequences and groups according to their common characteristics. The collected data regarding the market share of HDFC as well as its competitors can be represented graphically with the help of Graphs and charts such as lines charts, bar diagram, pie charts etc.

LIMITATIONS

• Getting accurate responses from the respondents is difficult due to their inherent problems
• The survey is time consuming and it is difficult to locate the clients
• Sample size is limited due to the limited period.

• Data will also be collected through secondary media so accuracy of the project depends on information provided by the secondary media

CHAPTER-5

ANALISIS &INTERPRETATION OF DATA

THIS SELECTION IS DEAL WITH COMPARATIVE STUDY ON ‘ULIP’ POLICES OFFERD BY ICICI   AND COMPARISON TO HDFC CUSTEMER SATISFACTION

• savings of respondents

• investment preference of the respondents

• different types policies there are taken

• different reasons for taking a policy

• Short    term or long term plan

• Respondents regarding the necessity of insurance. With good returns and with in short period

• customer prefers ULIP and traditional plans

• satisfaction levels of the respondents of ULIP Plans

• respondents would like to have Life Insurance

    Policies by ICICI life insurance and HDFC

TABLE-1

Table showing the monthly income of the respondents

From the above table it can be inferred that:

• 12% of the 90 respondents have a monthly income of not less than 10000
• 24% of the respondents have a monthly income of 10000 – 20000
• 27% of the respondents have a monthly income of 20000 – 30000
• 20% of the respondents have a monthly income of 30000 – 40000
• 17% of the respondents have a monthly income of more than 40000

TABLE-2

Table showing the monthly savings of respondents

From the above table it can be inferred that:

• 17% of the 90 respondents have a monthly savings of less than 2000
• 24% of the respondents have a monthly savings of 2000 – 4000
• 23% of the respondents have a monthly savings of 4000 – 6000
• 21% of the respondents have a monthly savings of 6000 – 8000
• 15% of the respondents have a monthly savings of more than 8000

TABLE-3

Table showing the investment preference of the respondents

From the above table it can be inferred that:

• 24% of the 90 respondents preferred to make investments in bank deposits
• 20% of the respondents preferred to make investments in insurance
• 14% of the respondents preferred to make investments in shares
• 10% of the respondents preferred to make investments in debentures
• 13% of the respondents preferred to make investments in real estate
• 05% of the respondents preferred to make investments in gold
• 08% of the respondents preferred to make investments in mutual funds
• 06% of the respondents preferred to make investments in chit funds

Table showing the different types policies there are taken

INFERENCE: From the above table, it is noticed 15% of the respondents are taken endowment policy, 21.25% of them are taken money back policy and 6.25% of them are taken term insurance policy.15% whole life, 10

6.25% of them are taken term insurance policy.15% whole life, 10% Retirement and 20% ULIP.

TABLE-5

Table showing the different reasons for taking a policy?

Graph No 9   :

INFERENCE: From the above table, it is noticed that 60% of the respondents are self employed 10% of them are salaried, 30% of them are farmers

Table showing the Customer preferences of Long term and 

TABLE-6

                   Short    term or long term

(Source: Field Survey)

Chart : 3 - Customer preferring Long term or Short term

INFERENCE: -Above figure shows 58% customers prefer Long term plan and

42%customers prefer Short term plan.

From the above data, it is Table showing the respondents regarding the necessity of insurance. With good returns and with in short period

TABLE-7

Noticed that 100% of the respondents are found to say that insurance is needed for everybody in India.

From the above analysis it is inferred that insurance is needed for everybody in India, as complete security can be give to the family and savings habit can be cultivated by investing money in insurance. Everybody can be kept safe by taking insurance policy. With good returns

TABLE-8

Table showing customer prefers ULIP and traditional plans

INFERENCE: From the above table, it is observed that 65% of the respondents are prefers ULIP Plan, and 35% of them are not Prefers.

Table showing the satisfaction levels of the respondents of ULIP Plans

TABLE-9

Graph No. 13

INFERENCE: From the above table, it is depicted that 76.92% of the respondents are satisfied with their Plan 13.38% and 7.69% of them are somewhat satisfied and not at all satisfied by their plan.

TABLE-10

Table showing the respondents would like to have Life Insurance Policies by icici life insurance and HDFC pru

INFERENCE: - Above diagram shows 40% respondents towards ICICI life insurance and other 60% respondents are HDFC pru.

CHAPTER-

            FINDINGS & SUGGESTION

FINDINGS

1. From the study it is found that majority of the respondents i.e. 22 respondents prefer bank deposits for investment purpose, 18 prefer insurance, 13 prefer shares and 12 prefer real estate. So there is a more scope insurance sector as people feel it is secured and profitable mode investment and this trend can capitalized upon by ICICI life insurance.
2. Most of the respondents give enough care to tax implication while planning their investments, only a few respondents do give any importance for tax implication while planning their investments.
3. In an absurd contrast to the information and awareness of life insurance among the younger earning generation respondents seems careless to take up insurance. ICICI life insurance can take up the initiative to create awareness of its insurance policies right from the college level by conducting workshops there.
4. ICICI and HDFC PRUDENTIAL’s main competitor for the higher income group and competitors include Max New York, and SBI Life etc.
5. Most of the respondents prefer ULIP policies; followed by endowment policies. 16 respondents like to invest in money back policies and only 11 respondents prefer term.
6. Potential for ICICI exists in the category of respondents’ aged 25 – 45 years old earning more than 10000 per month. As awareness of life insurance is gaining ground here and tomorrow respondents from here will be growing upwardly mobile and will invest larger amounts in life insurance.
7. Contrary to popular belief life insurance is not being bought for future security (even though buying an insurance policy automatically implies future security) but for tax exemption purpose under Sec. 88 of the Income Tax Act, 1961. This is quite risky for insurance companies because if this tax exemption is withdrawn by the government later then with this prevailing attitude towards insurance, not many people will be attractive towards life insurance. Hence ICICI must educate the public towards the core benefit of life insurance through innovative promotional campaigns.
8. Life policies have not at all been bought for marriage purpose.
9. Most of the respondents are well informed about the products of HDFC PRUDENTIAL, as well as ICICI life insurance some of them have poor knowledge about it.
10. The ICICI life insurance net work of advisors should be increased and their targeting tactics should be strengthened.
11. Among   ICICI policyholder’s majority prefers ULIP policies, and a few give preferences to money back and term.
12. Majority of ICICI policyholders rates its service as good. .
13.  Premium in ULIP polices is not affordable  
14. Most of the respondent would like to withdraw as and when they require

SUGGESTIONS

1. Affordable schemes must be launched for the 20 – 30 year olds drawing less than 5000 rupees per month. This category will rise in the future and ICICI old mutual life insurance must concentrate on catching them young so that the company can generate more income from the longer service lives of the younger potential policyholders. ICICI must not limit itself to serve only the affluent, as it will be ignoring a large chunk of aspiration Indians. It would be wise for the company to target young people in the above category and grow along with them as they and the nation prospers.
2. Many respondents in the 20 – 40 year old category are saving to buy a house / site. ICICI can capitalize on this yearning by offering house loans with low interest if customers take up its insurance policies.  
3. Most of the respondent would like to withdraw as and when they require so that withdraw facilities should be there to customer.
4. Premium in ULIP polices should be affordable to potential.
5. ICICI has to concentrate on rural area. They have to extend their branch towards semi urban area.
6. company has to provide correct information about unit value and fund option in ULIP plan      

CONCLUSIONS

A comparative study on ULIP polices offered by ICICI life insurance and HDFC pru to customer satisfaction.. under this analyzing the competition, Scanning the marketing environment ,gathering market information and measuring market share towards the ICICI life insurance company ltd and to know the changes in private insurance companies since last two years by offering ULIP polices also to collect  the information about the insurance taker and not insurance taker which becomes one of the marketing opportunities  to suggest  to the company and also we can advice the people to take the policies and also analyzing the services which is required in the field of the insurance sector

              To understand services which they prefer and why they prefer excepting in order to overcome competition in the field of the insurance sector .and also to analysis the attributes, to create awareness about the insurance.

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Acknowledgments

If words are considered as symbol of approval of acknowledgement then the following words play the heralding role of expressing my gratitude. A great deal of time and much effort have gone in to developing and researching this project. Many people have participated directly or indirectly in the completion of this project.

I owe special debt to ----------------- Faculty guide, -------------, ----------- for his overwhelming support and direction, valuable guidance and suggestion.

Words are inadequate to express my sincere thanks to Company Guide ----------------------------------------------------------- for their kind co-operation and guidance.

Questionnaire

I am  --------------------------------- MBA Student of -------------------------------. Doing a project work titled as “A COMPARATIVE STUDY ON ‘ULIP’ POLICES OFFERD ICICI  IN  COMPARISON TO HDFC CUSTEMER SATISFACTION.

”. Your feed back will be of immense benefit to me. This information will be of immense benefit to me. This information will be used only for academic purpose. Kindly co-operate.

1.        Name                        :

2.        Age                        :

3.        Gender                :                Male                                Female

4.        Marital Status        :                Married                        Unmarried

5.        Address                :

6.        Telephone Number        :

7.        E-mail ID                :

8.        Qualification        :

9.        Occupation                :                Employed                        Refried

                                                Business                        Other

Part – B

1. Monthly Income

Less than 10,000                10,000 – 20,000                   20,000 – 30,000

30,000 – 40,000                More than 40,000

2. Approximate monthly saving

Less than 2,000                2,000 – 4,000                        4,000 – 6,000

6,000 – 8,000                        More than 8,000

3. Purpose of Savings

Medical Expenses                To withdraw as and when                To get more reterns

To buy house or site                Education                        Others, Specify

4. Where do you invest yours savings?

Bank Deposit                        Insurance                        Shares

Debentures                        Real Estate                        Gold

Mutual Funds                Chit Funds                        Others

5. Do you actively plan your investments taking care of tax implications?

Yes                                No

6.         What is your level of information on ULIP  products?

Good                                Moderate                        Poor

7) Are you taken any policy from ICICI&HDFC?

a)  Yes        b)no

8) How did u come to know about the insurance policy?

a) Advertisement

b) Word of mouth

c) Others

9) Have u faced any problem in icici policy &HDFC?

a) Yes        b) no

10) Have you recommended others to buy the products of  ICICI & HDFC ?

a) Yes         b) no

11) How to maintain the relationship with insurance company?

a) Very good

b) Good

c) Average

d) Poor

12) How will you incur the expenditure if you want to buy a car, house or flat?

a)FD  b)loan   c)savings

“””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””