TATA AIG LIFE INSURANCE

SUBJECT : INSURANCE BUSINESS SUBMITTED TO : RUPA MA AM NAME : ANSARI NAEEM MD. AZIM ROLL NO. : 21 CLASS : S.Y.BBA {INSURANCE & BANKING} COLLEGE : SYDENHAM COLLEGE OF COMMERCE & ECONOMICS {31211}

Sr. No. 1 2 3 4 5 6 7 8 ULIP

Particulars Introduction Research Methodology Data Collection Scope Research Design ULIP vs. Mutual Fund Conclusion

TATA AIG LIFE INSURANCE CO.

(TATA)

(AIG)

Tata AIG Life Insurance Company Limited (Tata AIG life) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Groups pre-eminent leadership position in India and AIGs global presence as the worlds leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.

A mutual fund is a trust that pools the savings of a number of investors who shares a Common financial goal. The money thus collected is then invested in capital market Instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. ADVANTAGES OF MUTUAL FUNDS The advantages of investing in a Mutual Fund are: Professional Management Diversification Low Costs Liquidity Transparency Flexibility Tax benefits

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.

Mission
To be transparent in the way Co. deal with customers and to act with integrity. To invest in and build quality human capital in order to achieve mission.

Unit link insurance Pan (ULIP) is a policy in which premium paid are invested as per the choice of policy holder either in debt or equity product or in combination of both. Unit link insurance plan has both the benefit of insurance as well as choice to choose the return on investment. ULIP's have the flexibility of choosing premium amount and the choice of funds in which money to be invested. At present all Insurance companies have 4-5 Unit link insurance plan. In case of untimely death of the policy holder his nominee would get either the sum assured or the value of units whichever is higher. Unit link insurance policy which is also known as "ULIP" is one of the most popular insurance plan today because of following benefits:

Flexibility to choose premium amount. It can be single, regular or variable. Various choices of funds in which in which money to be invested. It has liquidity. As per the terms of policy, money invested in ULIP's can be withdrawn in case of need and urgency of funds. Normally ULIP's has 3 years lock-in period. The amount can be withdrawn in units Choice of returns. Since premiums are invested in equity related market or debt market. So a policy holder who want high returns can opt investment in equity and the person who don't like risks of equity market can opt for debt funds. Tax benefit. Proceeds from investment in ULIP get tax rebate under section 88 (in India) whereas proceeds from investment

RESEARCH OBJECTIVES Main objective: To find out the preference of people towards ULIP or Mutual fund. Sub-objective

To compare the perception of the people about ULIP of different insurance companies. To know about the customer awareness about of TATA AIG LIFE INSURANCE CO. LTD.

QUESTIONNAIRE METHOD: In this study questionnaire was sent to the persons concerned with a request to answer the questions and return the questionnaire. A questionnaire consisted of a number of questions typed in a definite order on a set of forms. The respondents had to answer the question on their own. PRIMARY DATA: The primary data are those which are collected afresh and for the first time; and thus happen to be original in character. In this study data is collected through observation, guidance of the supervisor & data is collected through questionnaire. SECONDARY DATA: In this study secondary sources of data were the various websites and insurance manuals. This mainly provided information about the insurance sector and the companys profile. These helped in gaining knowledge about the industry.

SAMPLING: It is the process of obtaining information about an entire population by examining only a part of it. SAMPLING UNIT INDIVIDUALS SAMPLE SIZE 150 UNITS SAMPLING TECHNIQUE RANDOM CONVENIENCE Survey period was six weeks. (15 JUNE to 27 JULY 2009)

This project includes following areas:

In this project, the study related to the comparative analysis of ULIP with mutual fund. Survey of PANIPAT is included. Survey of 150 individuals is also included

DESCRIPTIVE RESEARCH DESIGN:

Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group. In this study like, observation, questionnaires, examination of records, etc are used for such studies.

Unit Links Insurance Plan (ULIP) and Mutual Fund (MF) are the two most preferred options for a part time investor to invest into equity. But how do we decide which one should we go for. Though it is very easy to decide, people tend to confuse themselves most of the time. Need to consider while deciding which option we want to take. Mutual Fund are pure investments. ULIP are combination of Insurance and Investment. Now let us compare ULIP and MF based on certain well known facts: 1) Insurance ULIPs provide you with insurance cover. MFs don't provide you with insurance cover.

2) Entry Load ULIPs generally come with a huge entry load. For different schemes, this can vary between 1.5% to 40% of the first years premium. MFs have a small entry load of a maximum of 2.5% which can also be waved off if you apply directly (i.e. not through a agent).Here MFs have a huge advantage. If we consider a conservative market return of about 10-15% you may get a zero percent return in the first year. 3) Maturity ULIPs generally come with a maturity of 5 to 20 years. That what ever money you put in, most of it will be locked-in till the maturity. Tax saving MF ( Popularly called as Equity Linked Saving Scheme or ELSS) come with a lock-in period of 3 years. Other MFs don't have a lock-in period. Again MFs have advantage over ULIPs. ULIPs do allow you to take money out prematurely but they also put penalties on you for doing that.

4) Compulsion of Investing ULIPs would generally make you pay at least first three premiums. MFs don't have any compulsion on future investments. 5) Tax Saving Both the MF and ULIP come under 80C and can save you tax. Returns in the both form of investments are tax free.

TATA AIG is one of the worlds largest life insurance companies. It has businesses spread out across the globe. It came to India in the year 2001. It currently ranks Top amongst the insurers in India (Source: annual premium provided by the company) The company faces a large amount of competition. To sustain itself it must promote its products through advertising and improve its selling techniques. Consumers must be aware of the new plans available at TATA AIG. The medium of advertising used could be internet since most of its competitors use this tool to promote their products. The company must be promoted as an Indian company since consumers seem to have more trust in investing in Indian firms.

The unit linked concept must be specifically promoted. The general perception of life insurance has to change in India before progress is made in this field. People should not be afraid to invest money in insurance and must use it as an effective tool for tax planning and long term savings. TATA AIG could tap the rural markets with cheaper products and smaller policy terms. There are individuals who are willing to pay small amounts as premium but the plans do not accept premiums below a certain amount. It was usually found that a large number of males were insured compared to females. Individuals below the age of 30 (mostly male) were interested in investment plans. This was a general conclusion drawn during prospecting clients.