A SUMMER TRAINING PROJECT REPORT

ON

“A COMPARITIVE STUDY OF ULIP PLAN IN RESPECT TO

IDBI FEDERAL”

Submitted to Dr. A.P.J Abdul Kalam Technical University, Lucknow

For the partial fulfillment for the Degree
MASTER IN BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF:

Mr. Jitendra Kumar Dr. Shuchita Singh

Branch Manager Prof.(Management)

SUBMITTED BY:

VARUN ARORA

ROLL NO. 1703870177 BATCH NO. 2017-19

INSTITUTE OF TECHNOLOGY AND SCIENCE

MOHAN NAGAR, GHAZIABAD

 INSTITUTE OF TECHNOLOGY AND SCIENCE
(Approved by AICTE & Affiliated to Dr. A.P.J. Abdul Kalam University, Lucknow)
Grand Trunk Road Mohan Nagar, Ghaziabad
www.its.edu.in

CERTIFICATE

This is to certify that “Varun Arora” a student of Master of Business

Administration, Batch (2014-16) of INSTITUTE OF TECHNOLOGY AND
SCIENCE, Roll No. 1703870177 has undertaken the Summer Internship Project
under my guidance for the Project Title “A COMPARITIVE STUDY OF ULIP PLAN
IN RESPECT TO IDBI FEDERAL LIFE INSURANCE PVT. LTD.”. This Project
Report is prepared in partial fulfillment for the Degree of Master of Business
Administration by A.P.J. Abdul Kalam Technical University, Lucknow.

To the best of my knowledge, this research work is original and no part of this report
has been submitted by the student earlier to any other institution / university.

Mr. Jitendra Kuma Dr. Shuchita Singh

Branch Manager Prof. (Management)
 DECLARATION
(FROM STUDENT)

I, Varun Arora, hereby declare that the project work entitled “A Comparitive study of

ULIP Plan in respect to IDBI Federal Life Insurance Pvt. Ltd.” submitted towards partial

fulfillment of requirements for the award of Masters in Business Administration is my

original work and the dissertation has not formed the basis for award of any degree, associate

ship, fellowship or any similar title to the best of my knowledge.

Place: (Signature of Student)

Date: Rohini Saini

 ACKNOWLEDGEMENT

Initially, let me thank the Almighty God for guiding me all through theproject work.

Thereafter I would like to thank the management of IDBI Federal Life Insurance Ltd. For

giving me the opportunity to do training in their esteemed organization.

I express my deep and sincere gratitude to Branch ManagerMr. Sanjeev Malik (company

guide) of IDBI Federal Life Insurance Limited for giving me an opportunity to do this

project.

Also I express my Thanks to Ms. Bhavna Malik (Faculty guide for) providing the necessary

assistance for the project under her guidance & direction I was able to give shape to my

training.
 PREFACE

Insurance plays a very important role in everyone’s life. Insurance not only provides

protection for an individual and industry through risk coverage but also mobilizes funds for

economic activities, and encourages savings. Thus, an insurance cover is considered to be an

important tool for economic stability and is a key sector in the economy of any country.

This project gives a background of the sector (taking the case study of IDBI Federal Life

Insurance) and proceeds to highlight the shortcomings of the existing setup and players.Also

in this project report I highlighted they key differences between IDBI Federal and those with

others out there in the market in respect to ULIP Plans.

ULIP stands for “Unique Linked Insurance plan” It provides for Life Insurance where the

policy value at any time varies according to the value of the underlying assets at the time .

ULIP came into play in 1960 & is popular in many countries in the world. The reason

attributed to the wide spread popularity is because of Transparency & Flexibility which it

offers.
 TABLE OF CONTENTS
Chapter1 Introduction
1.1 What is Insurance?

1.2 Meaning of ULI

1.3 Features of ULIP

1.4Structure of ULIP

1.5 USP of ULIP

1.6 Advantage of ULIP

1.7 Points to remember about ULIP

1.8 How ULIP work

2 Company Overview

2.1 About IDBI Federal

2.2 ULIP of IDBI Federal

2.3ULIP’s of Competitors

2.4 SWOT Analysis of IDBI Federal

Chapter 2 Research objectives

1 Title of the Study

2 Scope of the study

Chapter 3 Literature Review

Chapter 4 Research Methodology

1. Purpose of the study

2. Research objective of the study
3. Research Methodology
4. Research Design
5. Data Collection Technique

Chapter 5 Data Interpretation & Analysis

Chapter 6 Findings & suggestions

1 Over all findings

2 Suggestions

Chapter 7 Conclusion

1 Conclusion

Chapter 8 Bibliography
 CHAPTER 1

INTRODUCTION
WHAT IS INSURANCE ?

Insurance is a form of risk management primarily used to hedge against the risk of a

contingent loss. Insurance is defined as the equitable Transfer of the risk of a potential loss,

from one entity to another, in exchange for a premium. Insurer in economics is the company

that sells the insurance. Insurance rate is a factor used to determine the amount, called the

premium, to be charged for a certain amount of insurance coverage.

Insurance companies may be classified as:

Life Insurance Companies, which sells life insurance, annuities & pension Products

Non- life or general Insurance Companies, which sells other types of Insurance

Life Insurance or life assurance is a contract between the policy owner and the insurer, where

the insurer agrees to pay a sum of money upon the occurrence of the policy owner’s death. In

return, the policy owner agrees to pay a stipulated amount called a premium at regular

Intervals.

Insured events that may be covered include:

Death

Accidental death
Life based contracts tend to fall into two major categories:

Protection policies – designed to provide a benefit in the event of specified event, typically a

lump sum payment.

Investment Policies – where the main objective is to facilitate the growth of capital by regular

or single premiums.

With the largest number of Life Insurance policies in force in the world, Insurance happens to

be a mega opportunity in India. It’s 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 country’s 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 while health

insurance and non-Life Insurance continues to be below international standards. A large part

of ourpopulation 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.

KEY MILESTONES

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 by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers along with provident societies were taken over by the

central government and nationalized. LIC was formed by an Act of Parliament- LIC Act

1956- with a capital contribution of Rs. 5 crore from the Government of India.

WHY DO PEOPLE INVEST?

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

 Insurance creates financial provisions for the deceased's dependants.

  Insurance also provide a legally authorized way to reduce the incidence of Income

Tax.

 Insurance provide for the policyholder’s old age after his earning power diminishes.

After all, interest rate may fall and invested holdings may lose value of an insurance

policy once set never reduces

With a view to promote saving and increase awareness regarding insurance, the

government has provided certain benefits through the Income Tax Act for

Taxpayers if they choose to opt for life insurance policies prudent manner, you can

maximize the returns on your insurance portfolio.

Under section 10(10D), any sum received Under a Life insurance policy is exempted from

taxation but it is wise to remember the pensions received from annuity plans are not

exempted from Income Tax.

Section 80 CCC provides a deduction of up to Rs. 10,000/- to an individual assessee for any

amount paid or deposited to effect or keeping in force any annuity plan for receiving pension

from the fund referred in section 10 (23AAB)

 MEANING OF ULIP

Unit-linked insurance plans, popularly known as Ulips are life insurance policies which offer

a mix of investment and insurance similar to traditional life insurance policies such as

endowment, money-back and whole-life, but with one major difference. Unlike traditional

policies, in Ulips investment risk lies with the insured (i.e., policy holder) and not with the

insurance company. Put another way, in case of adverse market conditions, you can even lose

your capital invested.

The returns in a ULIP depend upon the performance of the fund in the capital market. ULIP

respondents have the option of investing across various schemes, i.e. diversified equity funds,

balanced funds, debt funds etc. It is important to remember that in a ULIP, the investment

risk is generally borne by the investor.

In a ULIP, respondents have the choice of investing in a lump sum (single premium) or

making premium payments on an annual, half-yearly, quarterly or monthly basis.

Respondents also have the flexibility to alter the premium amounts during the policy's tenure.

For example, if an individual has surplus funds, he can enhance the contribution in ULIP.

Conversely an individual faced with a liquidity crunch has the option of paying a lower

amount (the difference being adjusted in the accumulated value of his ULIP). ULIP

respondents can shift their investments across various plans/asset classes (diversified equity

funds, balanced funds, debt funds) either at a nominal or no cost.

ULIP is a policy, which provides for life insurance where the policy value at any time varies

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

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

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

(NAV).

Unit linked Units in Underlying

insurance investment
plans funds

FEATURES OF ULIP

ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The

plan is a one-stop solution providing:

· Life protection

· Investment and Savings

· Flexibility

- Adjustable Life Cover

- Investment Options

· Transparency

· Options to take additional cover against

- Death due to accident

- Disability

- Critical Illness

- Surgeries

· Liquidity

· Tax planning

The two strong arguments in favour of unit-linked plans are:

 Firstly, the investor knows exactly what is happening to his money

 Secondly it allows the investor to choose the assets into which he wants his funds

invested.

An investor in a ULIP knows how much he is paying towards mortality, management and

administration charges. He also knows where the insurance company has invested his money.

The investor gets exactly the same returns that the fund earns but he also bears the investment

risk. The transparency makes the product more competitive. So if you are willing to bear the

investment risks in order to generate a higher return on your retirement funds ULIPs are for

you. Traditional ‘with profits’ policies to invest in the market andgenerate the same returns

prevailing in the market. But here the insurance company evens out returns to ensure that

policyholders do not hold money in a bad year. In that sense they are safer. ULIPs also offer

flexibility.
For instance a policyholder can ask the insurance company to liquidate units in his account to

meet to mortality charges if he is unable to pay any premium installment. This eats into

savings but ensures that the policy will continue to cover his life.

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

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

transparency and the flexibility which it offers. Unit- linked plans are a contemporary

product: transparent and flexible. Individuals have greater control over their investments. The

popularity of ULIPS stems from the fact that they offer customers “integrated financial

solutions with a transparent charge structure”. In today’s times, ULIP provides solutions for

insurance planning, financial needs, financial planning for children’s future and retirement

planning. Unit-linked insurance plans (ULIPs) have become something of a rage with their

'promise' of market-linked returns combined with the dual benefit of insuring your life from

eventualities

STRUCTURE OF ULIPS

ULIPs offered by different insurers have varying charge structures. However the insurers

have the right to revise or cancel the fees and charges over a period of time

Broadly the different types of fees and charges are given below:

1. Premium Allocation Charge: This is a percentage of the premium appropriated towards

charges from the premium received. The balance known as allocation rate constitutes that

part of premium which is utilized to purchase (investment) units for the policy. The

percentage shall be explicitly stated and could vary by the policy year in which the premium

is paid, the premium size, premium payment frequency and the premium type (regular, single
or top-up premium). This is a charge levied at the time of receipt of premium. This charge

may also include an initial management charge, which is levied on the units created from the

first years’ premium, for a specified period.

Example: If premium = Rs.1000 & Premium Allocation Charge: 10% of the premium; then

the charge is: Rs.100 and Balance amount of premium is Rs.900 and is utilized to purchase

units.

2. Fund Management Charge (FMC): This charge shall represent the expenses other than

those covered by premium allocation charges and the fund management expenses. This is a

charge which may be expressed as a fixed amount or a percentage of the premium or a

percentage of sum assured. This is a charge levied at the beginning of each policy month

from the policy fund by cancelling units for equivalent amount. This charge could be flat

throughout the policy term or vary at a pre-determined rate.

Example: Rs.40/- per month increased by 2% p.a. on every policy anniversary.

3. Surrender Charge: This is a charge levied on the unit fund at the time of surrender of the

contract. This charge is usually expressed either as a percentage of the fund or as a

percentage of the annualized premiums (for regular premium contracts).

5. Switching Charge: This a charge levied on switching of money from one fund to another

available within the product.

Example: Rs.100 per switch.

6. Mortality charge: This is the cost of life insurance cover. It is exclusive of any expense

loadings levied either by cancellation of units or by debiting the premium but not both. This

charge may be levied at the beginning of each policy month from the fund. The method of

computation shall be explicitly specified in the policy document. The mortality charge table

shall invariably form part of the policy document.

7. Rider premium charge: This is the premium exclusive of expense loadings levied

separately to cover the cost of rider cover levied either by cancellation of units or by debiting

the premium but not both. This charge is levied at the beginning of each policy month from

the fund.

8. Partial withdrawal charge: This is a charge levied on the unit fund at the time of part

withdrawal of the fund during the contract period.

9.Miscellaneous charge: This is a charge levied for any alterations within the contract, such

as, increase in sum assured, premium redirection, change in policy term etc. The charge is

expressed as a flat amount levied by cancellation of units. This charge is levied only at the

time of alteration.

Example: Rs.100/- for any alteration such as increase in sum assured, change in premium

mode etc
WHY DO INSURERS PREFER ULIPS?

Insurers love ULIPs for several reasons. Most important of all, insurers can sell these policies

with lesser capital of their own than what would be required if they sold traditional policies.

In traditional ‘with profits’ policies the insurance company bears the investment risk to the

extent of insured amount. In ULIPs the policyholder bears most of the investment risk. Since

ULIPs are designed to mobilize savings, they give insurance companies an opportunity to get

a large chunk of asset management business which has been traditionally dominated by

mutual funds. ULIPs are suitable for individuals who are already adequately insured and are

reasonably well-informed and savvy to take active investment decisions by using the `switch

option' that is provided to a ULIP policyholder. Also policyholders with regular endowment

plans who are not satisfied with the 4-6% returns can consider taking a ULIP with a lower

equity component. It is best if insurance-seekers tread the middle path and choose balanced

plans.They need to avoid taking the aggressive 100% equity ULIP, which could needlessly

expose their assets to market volatility. So if insurances-seekers/investors play their cards

right, they can make this marriage work.

 ULIPS vs. Traditional Life Insurance Plans:-

S. No Features ULIP’S Traditional Plan

1 Premium Invested by Policy Holder. Invested by Insurer’s.

2 Return Depends Upon Market moments Fixed

3 Loans Not Provided Provided

4 Bonus No bonuses, except loyalty Bonuses are payable

addition in some cases.

5 Loss Likely Unlikely

6 Benefits Variable Pre- Determined

7 Gains Gains likely depending on Gains unlikely except through

market movements bonuses

8 Potential for better 100% investment in Debt or At least 85% investment in

returns Equity acc. to wish. debt which result low return

9 Greater transparency Here we know were over money Not known where money is to

is invested. be invested.

10 Flexibility in investment Flexibility provided to customer. No Flexibility provided to

customer.

11 Flexibility in insurance Option to choose coverage & to No option to choose coverage

coverage increase risk cover

12 Higher Liquidity Exit option available. No exit option

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 thereare multiple

options at the individual’s disposal. ULIPS generally come inthree broad variants.

Aggressive ULIPS

(Which can typically invest 80%-100% in equity, balance in debt?)

Balanced ULIPS

(Can typically invest around 40%-60% in equities)

Conservative ULIPS

(Can typically invest up to 20% in equities)

Although this is how the ULIP option are 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 capitalize on

investment opportunities across the equity and debt markets iswhat distinguishes it from

other instruments. Some insurance 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

reflectionof 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 don’t have

to worry about ‘timing’ the stock markets

Fund Switching Option

There is nil or negligible cost involved. Besides, there is no tax involved. And most of all, it

is hassle free.

ADVANTAGES OF UNIT-LINKED POLICIES:

 A combination of protection and tax advantage, unit – linked policies dominate a huge

chunk of the portfolio of the private insurers. The annual premium contributes over

70% to the premium.

 In the event of death during the life of the policy, the sum assured or value of the

policy fund whichever is higher is paid to the nominee.

 There is a lot of flexibility in these plans with falling interest rates. So an investor can

adjust his risk profile according to his choice. The risk element is transferred to the

investor and the insurance company enjoys the capital and solvency.

 The client is aware of the “no guarantee” so he plans his investment judiciously.

 The client enjoys transparency, by way of returns on the equity markets

simultaneously enjoying the benefit of life cover.

 It’s a tax- free, unlike a mutual fund or any other investment, where the gains are

taxed

 The client also has an option of restructuring his investment pattern which is a value

addition to the original policy

 Contrary to the traditional policies, the unit linked policies are more transparency
POINTS TO REMEMBER ABOUT ULIP

First-year charges

Usually, a minimum of 15 per cent. However, high premiums attract lower charges and vice

versa. Charges can be as high as 70 per cent if the scheme affords a lot of flexibility.

Subsequent charges: Usually lower than first-year charges. However, some insurers charge

higher fees in the initial years and lower them significantly in the subsequent years.

Administration charges

This ranges between Rs 15 per month to Rs 60 per month and is levied by cancellation of

units and also depends on the nature of the scheme.

Risk charges

The charges are broadly comparable across insurers.

Asset management fees

Fund management charges vary from 0.6 per cent to 0.75 per cent for a money market fund,

and around 1.5 per cent for an equity-oriented scheme. Fund management expenses and the

brokerage are built into the daily net asset value.

Switching charges

Some insurers allow four free switches in every year but link it to a minimum amount. Others

allow just one free switch in each year and charge Rs 100 for every subsequent switch. Some

insurers don't charge anything.

Top-ups

Usually attracts 1 per cent of the top-up amount. Top-up normally goes directly into your

investment account (units) unless you specifically ask for an increase in the risk cover.

Surrender value of units

Insurers levy certain charges if the policy is surrendered prematurely. This levy varies

between insurers and could be around 75 per cent in the first year, 60 per cent in the second

year, and 40 per cent in the third year and nil after the fourth year.

Fund performance

You could check out the performance of similar schemes (balanced with balanced; equity

with equity) across insurance companies Look at NAV performance over a period of at least

two to three years. This can only give you some indication about the credibility of the fund

manager because past performance is no guarantee to future returns, especially in insurance

products where the emphasis is on long-term performance (10 years or more).

Since insurance is a product, which entails a long-term commitment on the part of the insurer,

it is important not to go only by the features or the cost advantages of schemes but by the

parentage of the insurer as well.

Comparing schemes based on costs is a fairly complex exercise. As a rule, the higher the

initial years' expenses the longer it takes for the policy to outperform its peers with low initial

years' costs and slightly higher subsequent year expenses.

Retire unhurt

Pension plans are essentially tailored to meet old age financial requirements. But there are

certain advantages in joining a pension plan.

First of all, contribution to pension funds uptoRs 10,000 is eligible for tax deduction under

section 80CCC. In other words, your pension contribution will get deducted from your

taxable income.

So if you are in the top tax bracket, liable to pay to a 30.6 per cent tax, then your tax savings

will be that much.

All life insurance companies offer pension products - both conventional and unit-linked. In

both cases you pay a certain premium amount for a specified length of time.

Usually, the minimum entry age is 18 years and the maximum age is 60 years. You can

choose to pay the premium for five to 30 years. When the policy matures, you receive one-

third of the value of the accumulated amount as a lump-sum payment.

For the remaining, you can buy annuities either from the existing insurer or any other insurer.

While in a conventional scheme, your money is managed through the insurer's pooled

investment account and you are entitled to bonuses every year, in a ULIP you receive the

value of the investment in your individual account.

In a ULIP you have the flexibility to choose between a conservative scheme or an aggressive

scheme with high allocation to equities. Pension policy imposes huge penalties for early

termination.

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 orconservative) floated by the

insurance companies. Units are bought accordingto the plan chosen by the policyholder. On

every additional premium, moreunits are allotted to his fund. The policyholder can also switch

among thefunds as and when he desires. While some companies allow any number offree

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 istermed "top-up". The money

parked in a ULIP plan is returned either on theinsured's death or in the event of maturity of the

policy. In case of the insuredperson'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

investment
EXAMPLE

Sara is a thirty-year old who wants a product that will give him market-linked returns as well

as a life cover. He wants to invest Rs 50,000 a year for 10 years in an equity-based scheme.

Based on this premium, the sum assured works out to Rs 532,000, the exact amount of

premium being Rs 50,032.

Based on the current NAV of the plan that Sara chooses to invest in, he is allotted units in the

scheme. Then, units equivalent to the charges are deducted from his portfolio.

The charges in the first year include a 14 per cent sales charge, an administration charge (7

per cent for the first Rs 20,000 and 3 per cent for the remaining Rs 30,000) and underwriting

charges, which are deducted monthly.

Besides, mortality charges or the charges for the life cover are also deducted. For the

remaining nine years a 3.5 per cent sales charge and an administrative charge charge of 4 per

cent (for the first Rs 20,000 and 2 per cent for the remaining Rs 30,000) are levied in addition

to mortality charges fund management fee of 1.5 per cent (equity) and brokerage are also

charged. This cost is built into the calculation of net asset value.

On maturity - that is, after 10 years - Sara would receive the sum assured of Rs 532,000 or

the market value of the units whichever is higher.

Assuming the growth rate in the market value of the units to be 6 per cent per annum Sara

would receive Rs 581,500; assuming the growth rate in the market value of the units to be 10

per cent, Sara would receive Rs 7,24,400.

In case of Sara's untimely death at the end of the ninth year, his beneficiaries would receive

the sum assured of Rs 532,000 or the market value of the units whichever is higher.

Assuming the growth rate in the market value of units is 6 per cent per annum, the value of

investment would be Rs 510,200.

However, his family will get Rs 532,000 as it is the sum assuming. Assuming a growth rate

of 10 per cent per annum, the value of units at the end of the ninth year would be Rs 621,900.

Hence, the beneficiaries would get Rs 621,900

INTRODUCTION TO THE COMPANY

IDBI Federal Life Insurance Co. Ltd.,(formerly IDBI Fortis Life Insurance) is a joint

venture between three financial companies – development and commercial bank, IDBI Bank,

India’s private sector bank, Federal Bank and European insurer Ageas (formerly Fortis),

which was formed on March 2008.[3] In this venture, IDBI Bank owns 48% equity while

Federal Bank and Ageas own 26% equity each.

ABOUT IDBI FEDERAL LIFE INSURANCE

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier

development and commercial bank, Federal Bank, one of India’s leading private sector banks

and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank

owns 48% equity while Federal Bank and Ageas own 26% equity each. . Having started in

March 2008, in just five months of inception, IDBI Federal became one of the fastest

growing new insurance companies to garner Rs 100 Cr in premiums. Through a continuous

process of innovation in product and service delivery IDBI Federal aims to deliver world-

class wealth management, protection and retirement solutions that provide value and

convenience to the Indian customer. The company offers its services through a vast

nationwide network of 2,186 partner bank branches of IDBI Bank and Federal Bank in

addition to a sizeable network of advisors and partners. As on 31st March 2013, the company

has issued over 4.99 lakh policies with a sum assured of over Rs. 28,580 Cr.
IDBI Federal today is recognized as a customer-centric brand, with an array of awards to

their credit. They have been awarded the PMAA Awards (2009) for best Dealer/Sales force

Activity, EFFIE Award (2011) for effective advertising, and conferred with the status of

‘Master Brand 2012-13’ by the CMO Council USA and CMO Asia.

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development

bank. It came into being as on July 01, 1964 (under the Companies Act, 1956) to support

India’s industrial backbone. Today, it is amongst India’s foremost commercial banks, with a

wide range of innovative products and services, serving retail and corporate customers in all

corners of the country from 1082 branches and 1715 ATMs. The Bank offers its customers an

extensive range of diversified services including project financing, term lending, working

capital facilities, lease finance, venture capital, loan syndication, corporate advisory services

and legal and technical advisory services to its corporate clients as well as mortgages and

personal loans to its retail clients. As part of its development activities, IDBI Bank has been

instrumental in sponsoring the development of key institutions involved in India’s financial

sector –National Stock Exchange of India Limited (NSE) and National Securities Depository

Ltd, SHCIL (Stock Holding Corporation of India Ltd), CARE (Credit Analysis and Research

Ltd).
Federal Bank is one of India’s leading private sector banks, with a dominant presence in the

state of Kerala. It has a strong network of over 1104 branches and 1195 ATMs spread across

India. The bank provides over four million retail customers with a wide variety of financial

products. Federal Bank is one of the first large Indian banks to have an entirely automated

and interconnected branch network. In addition to interconnected branches and ATMs, the

Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any

Where Banking, debit cards, online bill payment and call centre facilities to offer round the

clock banking convenience to its customers. The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations.

Ageas is an international insurance group with a heritage spanning more than 180 years.

Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate

its business activities in Europe and Asia, which together make up the largest share of the

global insurance market. These are grouped around four segments: Belgium, United

Kingdom, Continental Europe and Asia and served through a combination of wholly owned

subsidiaries and partnerships with strong financial institutions and key distributors around the

world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal,

Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and

UK. Ageas is the market leader in Belgium for individual life and employee benefits, as well

as a leading non-life player through AG Insurance. In the UK, Ageas has a strong presence as

the fourth largest player in private car insurance and the over 50’s market. Ageas employs

more than 13,000 people and has annual inflows of more than EUR 21 billion.
COMPANY VISION

To be the leading provider of wealth management, protection and retirement solutions that

meets the needs of our customers and adds value to their lives.

COMPANY MISSION

To continually strive to enhance customer experience through innovative product offerings,

dedicated relationship management and superior service delivery while striving to interact

with our customers in the most convenient and cost effective manner.

To be transparent in the way we deal with our customers and to act with integrity.

To invest in and build quality human capital in order to achieve our mission.

VALUES

Transparency: Crystal Clear communication to our partners and stakeholders

Value to Customers: A product and service offering in which customers perceive value

Rock Solid and Delivery on Promise: This translates into being financially strong,

operationally robust and having clarity in claims

Customer-friendly: Advice and support in working with customers and partners

Profit to Stakeholders: Balance the interests of customers, partners, employees,

shareholders and the community at large

Products

IDBI Federal launched its first set of products across India in March 2008, after receiving the

requisite approvals from the Insurance Regulatory and Development Authority (IRDA). IDBI

Federal offers services through a nationwide network across the branches of IDBI Bank and

Federal Bank in addition to a network of advisors and partners. IDBI Federal has 60 branches

across the country.

 UNIT LIKED INSURANCE PLAN OF IDBI FEDERAL

“WEALTHSURANCE SUVIDHA GROWTH INSURANCE PLAN”

IDBI Federal Wealthsurance Suvidha Growth Insurance Plan is a simple unit linked plan

that helps you take your first step towards wealth creation and that too, with ease. What’s

more, the life cover with this plan provides financial protection to your loved ones.

Eligibility Criteria Minimum/ Maximum

Minimum • 1 month (subject to

minimum maturity age)
Age at entry

Maximum • 65 years (subject to

maximum maturity age)

Maturity age Minimum • 18 years

Maximum • 75 years

Policy term Fixed option • 10 years, 15 years and

20 years

Premium payment term Fixed option 10 years and in

multiples of 5 thereafter

Premium Minimum • Rs. 15,000 p.a.

Maximum • Rs. 25,000 p.a.

Premium payment Fixed • Annual

mode

Sum assured Fixed 10 times the annual

premium
WHY WEALTHSURANCE SUVIDHA?

SYSTEMATIC ALLOCATOR TO HELP YOU BUILD WEALTH WITH EASE

You have two options of managing funds in Wealthsurance Suvidha. You can either manage

the funds yourself or opt for Systematic Allocator. If you opt for Systematic Allocator, you

will enjoy a balance between growth and safety. In the early policy years, your investment will

have a higher exposure to equity. This will help your investments have the potential to earn

you higher returns. As the policy approaches maturity, your investment will be automatically

rebalanced to reduce the exposure to equity. This ensures that your investment is protected

from the ups and downs of the equity market.

OPTION TO CHOOSE HOW LONG YOU WANT TO STAY INVESTED

With Wealthsurance Suvidha, you can choose the policy term (PT) which is the duration for

which you want to stay invested. In addition, you can also choose how long you want to pay

your premiums by choosing the premium payment term (PPT) most suited to your needs.

Please refer to the product brochure for combinations of PT and PPT available.

GUARANTEED LOYALTY ADDITIONS TO BOOST YOUR WEALTH

At the end of the 10th policy year and every 5 years thereafter, you get guaranteed loyalty

additions to boost your wealth.

FUTURE PREMIUMS WAIVED OFF IN CASE OF AN UNFORTUNATE EVENT

In case of an unfortunate event of you not being around, all future premiums of the policy will

be waived off.

FINANCIAL PROTECTION AGAINST UNCERTAINTY

In case of an unfortunate death during the policy term, your nominee gets the death benefit

which is the sum assured or the fund value at that time, whichever is higher. At any time

during the policy term, the death benefit will be more than 105% of all premiums paid.

PARTIAL WITHDRAWALS FOR EMERGENCY FUND REQUIREMENTS

In case of a financial emergency, you can make partial withdrawals from your funds any time

after the 5th policy year. For more information on partial withdrawals, please refer to the

product brochure.

TWO TAX BENEFITS

The premiums you pay under Wealthsurance Suvidha are eligible for tax benefit under Sec

80C of the Income Tax Act, 1961. The maturity benefit and death benefit are also tax free

under Sec 10(10D).

FLEXIBILITY TO SWITCH FUNDS AND INVESTMENT OPTIONS

You can switch your investment option between Systematic Allocator and managing your

funds by yourself. Also, if you are managing your funds yourself, you can also switch from
one fund to the other.

OPTION TO SURRENDER

Wealthsurance Suvidha also provides the feature of surrendering the policy free of charge after

the 5th policy year. A surrender amount equal to the fund value as on date will be paid out.

Discontinuance charge will be applicable for policies surrendered within the first 5 years of the

term.

EXCLUSIVE FUNDS FOR LOVED ONES

By endorsing your Wealthsurance Suvidha policy under the Married Women’s Property Act,

1874, you can create an exclusive fund for your loved ones which is legally protected from

creditors and claimants.

HOW WEALTHSURANCE SUVIDHA WORK?

 Choose your premium amount: You can select any amount, from as low as Rs.15,000

to Rs.25,000 as your annual premium.

 Choose how you would like to manage your investments:You can benefit by opting

for the Systematic Allocator or you can choose to manage your investments by

yourself. Please refer to the graph below for working of Systematic Allocator
  Choose your policy term (PT): Choose the duration for which you would like to stay

invested in the plan as per the available options.

 Choose your premium payment term (PPT): Choose the duration for which you

would like to pay premiums. There are 6 combinations of PPT and PT available in this

plan as below.

Limited Pay Regular Pay

PT PPT PT PPT

15 10 10 10

20 10 15 15

20 15 20 20

HOW DOES SYSTEMATIC ALLOCATOR WORK?

Systematic Allocator helps you achieve a balance between growth and safety on your

investments. As your policy comes closer to maturity, Systematic Allocator automatically

rebalances your investment to reduce the level of your investment risk.

At the commencement of your policy, a significant portion of your funds is invested in the

Equity Growth Fund (high risk fund) in order to increase the probability of higher returns.

When your policy approaches maturity, Systematic Allocator gradually reduces the exposure

to Equity Growth Fund and shifts funds to Income Fund (low risk fund). This helps reduce

your investment risk related to equities. The graph below represents the change in proportion

of investment in Equity Growth Fund and Income Fund with respect to the residual time to

maturity. Please refer product brochure for complete details regarding Systematic Allocator.

Fig 1
FUNDS AVILABLE FOR WEALTHSURANCE PLAN

“EquityGrowth Fund” & “Equity Growth Fund- Pension Plan”

The investment objective of this fund is to invest in listed stocks and aim to generate high

returns by picking stocks that have growth prospects. It aims to diversify risk by investing in

Large-cap as well as Mid-cap stocks and across multiple sectors.

Fixed Income (Cash & Money Market) : 0 - 50%

Equity-linked Instruments : 50 - 100%

“Nifty Index Fund” & “Nifty Index Fund- Pension Plan”

The objective of this fund is to replicate the returns generated by the Nifty Index. The

composition of the portfolio of securities invested in this scheme will be nearly similar to the

Nifty Index, subject to IRDA Regulations.

Fixed Income (Cash & Money Market) : 0 - 20%

Equity-linked Instruments : 80 - 100%

“Midcap Fund” & “Midcap Fund- Pension Plan”

The objective of this fund is to invest in mid cap stocks with attractive growth

prospects. It aims to diversify risk by investing in large cap as well as fixed income

investments when required.

Fixed Income (Cash & Money Market) : 0 - 50%

Mid cap Stocks : 50 - 100%

Large cap Stocks : 0-50%

“Pure Fund”

The objective of this fund is to to invest in listed stocks and aims to generate high

returns with medium to long term perspective by picking stocks that do not belong to

certain sectors engaged in activities which are considered harmful for society at large.

Examples of these activities include gambling, speculative investments, tobacco and alcohol.

Fixed Income (Cash & Money Market) : 0 - 20%

Equity-linked Instruments : 80 - 100%

OTHER ULIP’S OF COMPETITORS

1. SBI LIFE INSURANCE

SBI LIFE - SMART WEALTH ASSURE

SBI Life - Smart Wealth Assure is a Unit Linked non-participating Life Insurance

Plan. It is a single premium plan, wherein you have to pay premiums once and you

can continue to enjoy the benefits throughout the policy term.

The plan helps you to enjoy market related returns along with insurance cover, with

just a single premium

Key Features:

• Option to choose a mix of funds providing Market Linked Returns

• Market Linked Returns provided through 2 funds – Bond Fund & Equity Fund

to give you the best possible returns

• Pay only once and get the benefits throughout the Policy Term
 • Liquidity through Partial Withdrawal(s)

• Option to customize the product with Accidental Death Benefit Option

Product Snapshot

Age* at Entry Min: 8 years Max: 65 years

Age* at Maturity 75 years

Policy Term 10 to 30 Years (both inclusive)

Premium Payment Term Single Premium (SP)

Single Premium Amount (X Min: Rs 50,000

100) Max: No limit

 Sum Assured Min:

For Ages below 45 yrs : 1.25 x SP

For Ages 45yrs & above: 1.10 x SP

Max:

For Ages below 45 yrs : 5 x SP

For Ages 45yrs & above: 3 x SP

2. HDFC LIFE INSURANCE

HDFC LIFE INVEST WISE PLAN

FEATURES:

HDFC Life Invest Wise Plan, a single premium unit-linked plan that is tailor-made to
build a corpus for your financial goals.

 Plan offers a fixed policy term of 15 years

 Flexibility to select a fund depending on your risk and return appetite

  Sum assured fixed at 110% of Single Premium

 No limit on maximum single premium

ELIGIBILITY:

The Premium Age and Term Limits are mentioned below:

Min-Max Single Premium Rs. 25,000-No limit

Min-Max entry age 45-70 years

Min-Max age maturity age 60-85 years

BENEFITS:

 Flexibility to invest in any of the available funds.

 You will receive the fund value on maturity

 On unfortunate death of the life assured, greater of the Fund value or Sum Assured

(less withdrawals as applicable) or minimum death benefit (at least 105% of premiums

paid) will be payable to the nominee

 Tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961

 Paying premiums is convenient with access to multiple modes – credit card, internet

banking, cheque, auto debit facility.

3. BAJAJ ALLIANZ LIFE INSURANCE

I GAIN III - INVESTMENT PLAN

FEATURES:

 Tax Exemption u/s 80(C) & 10(10)D

 High allocation of 98% from the start of the policy.

 100% allocation from 6th policy year onwards.

 Inbuilt accidental death cover.

 Option to select policy term of 10/15 or 20 years and premium paying term of 5 years

to policy term.

 Automatic annual increase in sum assured from 6th policy anniversary to suit your

needs.

 Choice of 7 investment funds to invest in as per your risk appetite.

 Two investment portfolio strategies to manage your investments better; including the

Wheel of Life portfolio strategy, which will help you to balance and safeguard your

investment.

BENEFITS

 Death benefit
  Maturity benefit

 Surrender benefit

4. KOTAK LIFE INSURANCE

KOTAK PLATINUM

FEATURES:

 Minimum charges

 maximum earnings

 Keep earning with additional

 Flexible payment period

BENEFITS:

Benefits earned under this plan are in accordance with the Income Tax Act, 1961. You can

avail tax benefits on:

 Your premiums under Section 80C.

  Maturity or death claim proceeds under Section 10 (10D)

SWOT ANALYSIS

SWOT Analysis is a strategic planning tool used to evaluate the strengths, weaknesses,

opportunities, and threats for a business entity. It involves specifying the objective of the

business venture or project and identifying the internal and external factors that are favorable

and unfavorable to achieving that objective. The technique is credited to Albert Humphrey,

who led a research project at Stanford University in the 1960s and 1970s using data from

fortune 500companies

Strengths

Attributes of the organization which are helpful to achieving the objective.

Weaknesses

Attributes of the organization which are harmful to achieving the objective.

Opportunities

External conditions which are helpful to achieving the objective.

Threats

External conditions which could damage the business’s performance.

SWOT ANALYSIS OF IDBI FEDERAL

Strengths

 Customization: It understands the dreams, needs, aspirations, concerns and

resources are unique and this is reflected in every move they do for the sake of

individual customer. This is the greatest value it provide online trading products

like Smart Invest and Smart Trade.

 Expertise: IIL brings within the customers reach their institutional expertise and the

ability to effectively combine an invaluable understanding of the financial markets,

with an intention of building a long-term partnership.

 One-stop-shop for all the investment needs: IIL gives all the types of services and

products an individual investor can dream and think off. All the financial products

and services are under one-roof.

 Unbiased and objective advice: The teams of expert investment advisors

customize plans to suit the needs of investors.

 Extensive reach: IIL make sure that they are always accessible to customers

through a host of mediums. A customer can contact them either through website or

through their branches and channel partners of more than 300 offices across India.

 Brand image: IIL as such is a well known brand in industry.

 Competitive pricing: It charges less brokerage compared to its competitors.

Weaknesses

 Tedious procedures: Tedious procedures and delays in processing the data and
 documents of new customers.

 Fundtransfer: It has tie-ups with only 5 banks for online fund transfer, where as

other competitors have more tie-ups.

 Attrition: High attrition rates in trainees’ category.

Opportunities

 Indian economy seems to be out of recession. This is the right time for inventers to re-

enter the market. The company should adopt some strategies to increase the business

through existing clients.

 The increasing number of management graduates helps to get sales force at trainee

levels at less salaries or commission basis. It reduces the salaries and commissions

expenses of the company. The company can tie up with reputed B Schools for trainees.

 Huge untapped market in rural areas, Tier2 and Tier 3 cities and towns of India can be

concentrated to increase the business.

 Many a banks are offering fund transfer services. The company can increase the tie-ups

for fund transfers at attract customers of different banks.

Threats

 Stiff competition from existing players in the market and there is also a threat of new

entrants. It has lead to cut throat competition in terms of brokerage charges and

exposure.

 Increasing awareness of mutual funds and ULIPs created by Domestic Institutional

 Investors has reduced the direct investment in to stock market to some extent. This

automatically reduces the business of stock brokers.

 Changing economic scenario in India and changes in government policies will have

great impact on the revenue of this company

 Many a investors burnt their figures during the bearish market conditions. It has turned

many a trading accounts inoperative.

CHAPTER-2
 OBJECTIVES

TITLE OF THE STUDY

“Comparison of ULIP plan in respect to IDBI Federal”

SCOPE OF THE STUDY

The following study was done to find the perception of people regarding the insurance
industry and their awareness regarding the same.
The study helps us to know the state of mind of people regarding the investment ULIP in
Insurance Industry.

RESEARCH OBJECTIVE

 To study the different marketing strategies opt by IDBI Federal Life Insurance for the
products.

 To analyze the customer satisfaction and response to the products.

 To know the customers awareness about ULIPS.

 To compare the investment in ULIPS plan with other competitors.

 To study the degree of risk involved.

 To analyze the future prospective of these investment

CHAPTER-3
LITERATURE REVIEW
 LITERATURE REVIEW

 While earlier studies on life insurance sector mainly focused upon LIC, it was only
after reforms in this sector that certain studies covering private players have taken
place. Among early studies

 Sloan A., Conover J. (1998) examined the functional status of Insurance Companies
from 1995 to 1997 in Japan. The result showed that functional status of insurer does
not affect the profitability but public coverage has significant impact on profitability
of insurance companies.

 Arora (2002) highlighted that LIC was likely to face tough competition from private
insurers having large established network and their trained intermediaries throughout
India.

 Verma (2003) analyzed the various type of products offered by public sector giant and
the new global players in the private sector.
  Kumar and Taneja (2004) highlighted the opportunities and challenges before the
insurance industry in India due to liberalization, globalization and privatization.

 Bhattacharya (2005) advocated that bancassuranceprovided the best opportunities to

tap the large potential in rural and semi urban areas as banks have a strong network of
more than 40000 branches in these areas. He suggested that the insurers should focus
on Single Premium policies, Unit Linked Insurance, Pension Market and Health
Insurance.

 Kumar (2005) highlighted that private insurance players introduced a wider range of
insurance products and set up brand promotion as part of their new strategy. These
new covers had flexibility and added benefits to suit the needs of customers who were
unsatisfied with the traditional and rigid plans.

 Kulshrestha and Kulshrestha (2006) highlighted that demand for life insurance in
rural India was expanding at the annual rate of 18 per cent as compared to 3.9 per cent
in urban areas which provided good opportunity for life insurers to perform

The KPMG report, titled insurance: IRDA chairman N Ranngachari released trends and
issues, in New Delhi on 9 Nov. Mr. Ranngachari said the government planned to bring out
separate pieces of legislation to regulate insurance surveyors and actuaries, after the passages
of IRDA bill.

According to ORG –MARG LIC retained top insurance player but it has lost its share to
private sector players compared to previous round of the study. LIC witnessed a drop of 12%
to finish at 15%. While ICICI Prudential, HDFC Std life and Kotak Life Insurance managed
an increase in share by 8% 3% and 2% respectively. HDFC fought back to regain its position
among top five, lost earlier to OM Kotak Mahindra.

The KPMG report makes the following observation with regards to insurance sector in India:

The threat of new players taking over the market has been overplayed.

 Nationalized players will continue to hold strong market share position, but there will
be enough business for new entrants to be profitable.
 Opening up the sector will certainly mean new product, better packaging and
improved customer’s services.

 A middle market approach tapping segments and niches that are currently
underserved will prove profitable for new entrants.

 New companies often overestimate the need for insurance expertise, assuming that a
joint venture is most appropriate type of alliance, when in fact many forms are
possible.

 Both new entrants and exiting players must explore new distribution and marketing
channels.

CHAPTER-4
R E S E A R C H ME T HOD OL O GY
RESEARCH METHODOLOGY

 5 years of WEALTH TREND data of IDBI Federal.

 RESEARCH DESIGN: Descriptive research is used to ensure the

minimization of bias and maximization of reliability of data collected.

 TYPE OF RESEARCH :-Convenience under non probability sampling

is applied in this project where subjects are selected because of their
convenient accessibility and proximity to the researcher.

SECONDARY DATA:-

When an investigator uses the data that has been already collected by others it is known as
Secondary data. The secondary data could be collected from Newspaper, Journals, Internet,
Reports and various publications. The advantages of secondary data can be in terms of money
and time spent.
 CHAPTER-5
DATA INTERPRETATION
AND
ANALYSIS
Table shows different features of these four insurance co.

FEATURES IDBI Federal SBI Life Bajaj Allianz HDFC Life

Life Insurance Life Insurance
Insurance Insurance

Name of the wealthsurance Smart Capital unit Capital unit

policy wealthassure Gain Gain

Entry Age

Minimum 1 month 8 years 0 45 years

Maximum 65 years 65 years 60 years 70 years

Max. policy 30 years 30 years 60 years 15 years

term

PREMIUM

Minimum 15000 50000 10000 25000

premium

Maximum 95000 No limit 25000 No limit

premium

SUM ASSURED

Minimum 150000 55000 100000 27500

Maximum Unlimited 1500000 Unlimited Unlimited

TABLE 1:-
a)Table showing minimum and maximum entry age.

PARTICULAR IDBI FEDERAL SBI LIFE BAJAJ HDFC LIFE

LIFE INSURANCE ALLIANZ INSURANCE
INSURANCE

MIN. AGE 1 month 8 years 0 45 years

MAX. AGE 65 years 65 years 60 years 70 years

Interpretation: In the above table its shows that SBI provide much lesser age
than the other insurance co. and idbi federal is the second insurance co. who
provide minimum age of 3 months in ULIP Plan.
TABLE 2:-
b) Table showing Maximum policy term.

PARTICULAR IDBI FEDERAL SBI LIFE BAJAJ HDFC LIFE

LIFE INSURANCE ALLIANZ INSURANCE
INSURANCE

MAXIMUM 30 Years 30 Years 60 Years 15 Years

POLICY TERM

Interpretation: In the above figure we see that maximum policy term is given
by the Bajaj Allianz and then after IDBI federal, SBI Life, then HDFC Life.
TABLE 3:-
c) Table showing Minimum and Maximum Premium.

PARTICULAR IDBI FEDERAL SBI LIFE BAJAJ HDFC LIFE

LIFE INSURANCE ALLIANZ INSURANCE
INSURANCE

MIN. 15000 50000 10000 25000

PREMIUM

MAX. 95000 NO LIMIT 25000 NO LIMIT

PREMIUM

Interpretation: Above figure shows that maximum premium is of IDBI Federal

and minimum is of Bajaj Allianz.
TABLE 4:-
c) Table showing Minimum and Maximum Sum Assured.

PARTICULAR IDBI FEDERAL SBI LIFE BAJAJ HDFC LIFE

LIFE INSURANCE ALLIANZ INSURANCE
INSURANCE

MINIMUM 150000 55000 100000 27500

MAXIMUM Unlimited 1500000 Unlimited Unlimited

Interpretation: Above figure shows that maximum sumassured is given by SBI

Life insurance company. And the minimum sum assured is presented by HDFC
life..
TABLE 5:-
e) Table showing Return for the Year 2011

FUND NAME ABSOLUTE RETURN OF 1 YEAR

Equity growth fund 6.56%

Debts (Bond fund) 5.43%

Interpretation: above figure shows that the return for the year 2011 of IDBI
Federal life insurance co. is 5.43% in debt and 6.56% in equity.
TABLE 6:-
f) Table showing Return for the Year 2012

FUND NAME ABSOLUTE RETURN OF 1 YEAR

Equity growth fund 15.35%

Debts (Bond fund) 9.32%

Interpretation: The highest return of IDBI Federal of the year 2012 is got in equity by
15.35% in compare to its debts.
TABLE 7:-
g) Table showing Return for the Year 2013

FUND NAME ABSOLUTE RETURN OF 1 YEAR

Equity growth fund 6.01%

Debts (Bond fund) 4.10%

Interpretation: The highest return of IDBI Federal of the year 2013 is got in equity by
6.01% in compare to its debts.
TABLE 8 :-
h) Table showing Return for the Year 2014

FUND NAME ABSOLUTE RETURN OF 1 YEAR

Equity growth fund 18.61%

Debts (Bond fund) -1.61%

Interpretation: The highest return of IDBI Federal of the year 2014 is got in equity by
18.61% in compare to its debts.
TABLE 9:-
i) Table showing Return for the Year 2015

FUND NAME ABSOLUTE RETURN OF 1

YEAR

Equity growth fund 43.25%

Debts (Bond fund) 18.37%

Interpretation: The highest return of IDBI Federal of the year 2015 is got in equity by
43.25% in compare to its debts.
 CHAPTER-6
FINDINGS AND SUGGESTION
FINDINGS AND SUGGESTIONS

There are some findings and suggestions as follows.

 As insurance sector is growing rapidly so most of the life insurance players are selling
ULIP plans. And the awareness about ULIP is growing most of the people knows the
ULIP of life insurance. Since last 4-5 years the returns provided by ULIP were very
good so people tend more towards ULIP
 While investing any insurance company customer prefers for good branded company.
IDBI Federal is India’s one of the most famous in insurance industry as it has
achieved it’s Breakeven in 5 years. And second preference is given to SBI life
Insurance.
 As now till date people in India don’t wanted to invest in share market because they
were thinking that it is a bad thing but as the awareness about ULIP is increasing as
more and more private players are entering in the market. So awareness about ULIP
has led to huge competition.
 First reason or preference that why an investor is interested in ULIP is Investment
Purpose, and second is to its returns and after that they investing because they are
getting the tax benefit. Then again there are some people who are investing for
pension planning and security.
 In future people will be more preferring to the security of their money means they
want a secured option which should provide good returns. As ULIP are the option in
which you can have the security also and good returns. The second choice of the
investors is return of their money.
 From this we can analyze that IDBI Federal Life Insurance is doing good but it is
having good potential in Market. To improve its market share they should improve the
awareness level of the common people.
 Innovative Products and good brand name are the main success factor for IDBI
Federal Life Insurance. 6% customers are attracted due to the high reputation of the
company. So if IDBI wants to penetrate its market share they should improve the
marketing strategy, improving the distribution channel etc.
CHAPTER-7
CONCLUSION
CONCLUSION

From above analysis and survey we can conclude as follows:

 Awareness of ULIP is increasing as more number of private players are entering in

lifeinsurance industry.
 ULIP differentiate from Mutual fund in respect of Insurance cover.
 Investors in IDBI Federal ULIP will be getting the advantage of life insurance cover.
 People are turning towards the ULIP as a good investment option but as ULIP is in its
Starting phase so customers are preferring only big brands.

 ULIP is having good growth but many customers from rural areas don’t have any
Knowledge about ULIP.Theythink it is very risky.

 Even investors from cities like Delhi don’t have that much of Knowledge about fund
selection they all are depend on Brokers.
 People in Delhi are investing in only good branded companies as they don’t believe
on other financial companies for taking ULIP.
 There is a need for insurers to undertake a demand audit in order to understand what
thepolicyholder wants and needs.
 Deriving the right feedback from customers and bringing out innovative products
whichcater to customer demands will go a long way in tapping the market potential of
the insurance and sector.
 For IDBI Federal Life Insurance they should go for creating more awareness about its
ULIP as now also people are just investing because IDBI is India’s most Known Bank
of India.
 IDBI Federal should go for innovating more and more products and improving the
distribution channels as per the area of sales.
 CHAPTER-8
BIBLIOGRAPHY
 BIBLIOGRAPHY

www.idbifederal.com

www.bajajallianz.com

www.hdfclife.com

www.sbilife.com

www.wikipedia.com

Wealth trends