2818

“PROSPECT OF UNIT LINKED
INSURANCE PLANS (ULIPs)
IN THE DISTRICTS OF WEST
BENGAL AND FUND ANALYSIS
UNDER ULIPs”
FINAL REPORT
1|Page Srikanta Kundu

k_srikanthin@yahoomail.com
A REPORT
ON
“PROSPECT OF UNIT LINKED INSURANCE PLANS
(ULIPs) IN THE DISTRICTS OF WEST BENGAL AND
FUND ANALYSIS UNDER ULIPs
Submitted by
Srikanta Kundu
08BS0002818
ICICI Prudential Life Insurance Company Ltd.

(Priority Circle)

A REPORT
ON
“PROSPECT OF UNIT LINKED INSURANCE PLANS

(ULIPs) IN THE DISTRICTS OF WEST BENGAL AND
FUND ANALYSIS UNDER ULIPs
“THE REPORT IS SUBMITTED AS PARTIAL

FULFILLMENT OF THE REQUIREMENT OF MBA
PROGRAM OF IBS”
Submitted by
Srikanta Kundu
08BS0002818
ICICI Prudential Life Insurance Company Ltd.

(Priority Circle)
DATE OF SUBMISSION: 19TH MAY, 2009.

ACKNOWLEGEMENT
Surpassing milestones towards a mission sometimes gives us such degree

of satisfaction that we tend to forget the precious guidance and help
extended by the people to whom the success of mission is solely
dedicated.
I express my sincere thanks to ICICI PRUDENTIAL LIFE INSURANCE
COMPANY LIMITED (PRIORITY CIRCLE) for giving me an opportunity
to work with them through this summer project.
I take this opportunity to express my profound sense of gratitude to the
Head of the Organization MR. RATNADEEP MAJUMDAR and my
company guide MR. RAJIV DAS, for their invaluable guidance, constant
encouragement and practical suggestions based on the experience to
focus my efforts to which this work has come to the presentable form.
I would like to extend my sincere thanks to my faculty guide DR. PINAKI
RANJAN BHATTACHARYYA who has been my constant source of
inspiration throughout.
Lastly I would also like to thank the insurance companies, advisors and
the customers who helped and cooperated with me during the survey.
SRIKANTA KUNDU

ABSTRACT 6
INTRODUCTION: 8
LIFE INSURANCE: 9
HISTORY: 9
NEED FOR LIFE INSURANCE: 10
INSURANCE SECTOR IN INDIA: 11
COMPANY PROFILE: 12
UNIT LINKED INSURANCE PLANs (ULIPs) 26
WORKING OF AN ULIP PLAN: 31
OBJECTIVE 32
RESEARCH METHODOLOGY 32
LIMITATION 33
SURVEY ANALYSIS 34
INVESTORS’ REPORT 35
ADVISORS’ REPORT 40
COMPANIES’ REPORT 40
FUND ANALYSIS 41
FUNDS AVAILABLE UNDER ULIPs. 42
PORTFOLIO DETAILS AND NAV PERFORMANCE 43
SUMMARY AND FINDINGS 58

ANNEX – TABLE 1 59
ANNEX –TABLE 4 60
COMPARISON OF INVESTMENT SCHEMES 61
RECOMMENDATION 63
ANNEXTURE 64
REFERENCES: 71

ABSTRACT
―The rapid growth of the ULIP market in India should be seen as quite
‗natural and expected‘ and the accelerated movement is in pace with the
global scenario‖
-Mr. C.S.Rao, IRDA Chief.
The project I undertook is ―Prospect of Unit Linked Insurance Plans
(ULIPs) in the districts of West Bengal and Fund analysis under ULIPs‖.
Most insurers in the year 2004 have started offering at least a few unit-
linked plans. Unit-linked life insurance products are those where the
benefits are expressed in terms of number of units and unit price. They
can be viewed as a combination of insurance and investments. The
number of units that a customer would get would depend on the unit price
when he pays his premium. The daily unit price is based on the market
value of the underlying assets (equities, bonds, government securities, et
cetera) and computed from the net asset value. The advantage of unit-
linked plans is that they are simple, clear, and easy to understand. Being
transparent the policyholder gets the entire upside on the performance of
his fund. Besides all the advantages they offer to the customers, unit-
linked plans also lead to an efficient utilization of capital. Unit-linked
products are exempted from tax and they provide life insurance. Investors
welcome these products as they provide capital appreciation even as the
yields on government securities have fallen below 6 per cent, which has
made the insurers slash payouts.
The overwhelming shift in the insurance market in the last 5 years has
been driven by a combination of the various factors and has been
witnessed in most parts of the world also.
But presently, according to the insurance company executives, buyers

were staying away from ULIPs, which are insurance cum investment
policies with 90-95 percent corpus invested in stock markets and volatility
in the stock market is taking a toll on the sales of Unit Linked Insurance
Plans (ULIPs) that account for over 80 percent of the industry‘s total
sales.
This project is related to analyze the financial literacy of ULIP investors

in West Bengal and to determine consumer perception towards investment
in ULIPs.

For this first of all, I had to gain knowledge about the current insurance
market situation, its rules, tax exemption criterion, tax deduction act and
various financial products. Though it is vast area but in this short period of
time, with the help of my company guide, books, magazines, news papers
and various related sites I have put in my best efforts to know about
these things.
To accomplish my project objectives I prepared three questionnaires

(for investors, advisors and companies) containing open ended, close
ended and multiple choice questions. Through these questionnaires I have
tried to create difference according to age, sex, income and marital
status.
Along with this the updates of the funds available under ULIPs are
being analyzed just to check the performance and compare it with its
benchmark.

INTRODUCTION

LIFE INSURANCE:
Life insurance is a guarantee that your family will receive financial

support, even in your absence. Put simply, life insurance provides
your family with a sum of money should something happen to you.
It thus permanently protects your family from financial crises.
In addition to serving as a protective cover, life insurance acts as a

flexible money-saving scheme, which empowers you to accumulate
wealth-to buy a new car, get your children married and even retire
comfortably.
HISTORY:
The Greek and Romans started the earliest known type of life
insurance. All surviving members following one member‘s death
made contributions and this was done on a post assessment basis.
In the 17th century, the Tontine Annuity system was introduced
where association of individuals was formed without any references
to age, and a fund was created by equal contribution from each
member. The sum was invested and at the end of each year the
interest was divided among the survivors. The last remaining
survivor received both the year‘s interest and the entire amount of
the capital.
The first organized life insurance company was founded in 1759 in
Philadelphia, In North America. Subsequently, over the past three
centuries numerous other insurance companies sprung up, making
insurance a popular tool for investment coupled with protection.

NEED FOR LIFE INSURANCE:
Today, there is no shortage of investment options for a person to

choose form. Modern day investments include gold, property, fixed
income instruments, mutual funds and of course, life insurance.
Given the plethora of choices, it becomes imperative to make the
right choice when investing your hard-earned money. Life insurance
is a unique investment that helps you to meet your dual needs -
saving for life's important goals, and protecting your assets.
Let us look at these unique benefits of life insurance in detail.
ASSET PROTECTION:
From an investor's point of view, an investment can play two roles -
asset appreciation or asset protection. While most financial
instruments have the underlying benefit of asset appreciation, life
insurance is unique in that it gives the customer the reassurance of
asset protection, along with a strong element of asset appreciation.
The core benefit of life insurance is that the financial interests of
one‘s family remain protected from circumstances such as loss of
income due to critical illness or death of the policyholder.
Simultaneously, insurance products also have a strong inbuilt wealth
creation proposition. The customer therefore benefits on two counts
and life insurance occupies a unique space in the landscape of
investment options available to a customer.
GOAL BASED SAVING:
Each of us has some goals in life for which we need to save. For a
young, newly married couple, it could be buying a house. Once, they
decide to start a family, the goal changes to planning for the
education or marriage of their children. As one grows older, planning
for one's retirement will begin to take precedence.
Clearly, as your life stage and therefore your financial goals change,
the instrument in which you invest should offer corresponding
benefits pertinent to the new life stage.
Life insurance is the only investment option that offers specific
products tailor-made for different life stages. It thus ensures that
the benefits offered to the customer reflect the needs of the
customer at that particular life stage, and hence ensures that the
financial goals of that life stage are met.
10 | P a g e Srikanta Kundu
INSURANCE SECTOR IN INDIA:
Insurance sector in India is one of the booming sectors of the

economy and is growing at the rate of 15-20 per cent annum.
Together with banking services, it contributes to about 7 per cent to
the country's GDP. Insurance is a federal subject in India and
Insurance industry in India is governed by Insurance Act, 1938, the
Life Insurance Corporation Act, 1956 and General Insurance
Business (Nationalization) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts.
The origin of life insurance in India can be traced back to 1818 with
the establishment of the Oriental Life Insurance Company in
Calcutta. The Bombay Mutual Life Insurance Society that started its
business in 1870 was the first company to charge same premium for
both Indian and non-Indian lives. In 1912, insurance regulation
formally began with the passing of Life Insurance Companies Act
and the Provident Fund Act.
By 1938, there were 176 insurance companies in India. But a
number of frauds during 1920s and 1930s tainted the image of
insurance industry in India. In 1938, the first comprehensive
legislation regarding insurance was introduced with the passing of
Insurance Act of 1938 that provided strict State Control over
insurance business.
Insurance sector in India grew at a faster pace after independence.
In 1956, Government of India brought together 245 Indian and
foreign insurers and provident societies under one nationalized
monopoly corporation and formed Life Insurance Corporation (LIC)
by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs.5 crore.
The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from
January 1, 1973.
In 1993, the first step towards insurance sector reforms was
initiated with the formation of Malhotra Committee, headed by
former Finance Secretary and RBI Governor R.N. Malhotra. The
committee was formed to evaluate the Indian insurance industry
and recommend its future direction with the objective of
complementing the reforms initiated in the financial sector.
COMPANY PROFILE:
ICICI prudential LIFE INSURANCE COMPANY LIMITED
ICICI Ltd., was established in 1955 by the World Bank, the

Government of India and the Indian Industry, to promote industrial
development of India by providing project and corporate finance to
Indian industry.
Since inception, ICICI has grown from a development bank to a
financial conglomerate and has become one of the largest public
financial institutions in India. ICICI has thus far financed all the
major sectors of the economy, covering 6,848 companies and
16,851 projects. As of March 31, 2000, ICICI had disbursed a total
of Rs. 1,13,070 crores, since inception.
PRUDENTIAL PLC:
Prudential plc was founded in 1848. Since then it has grown to

become one of the largest providers of a wide range of savings
products for the individual including life insurance, pensions,
annuities, unit trusts and personal banking. It has a presence in
over 15 countries, and caters to the financial needs of over 10
million customers. It manages assets of over US$ 259 billion
(Rupees 11, 39,600 crores approx.) as of December 31, 1999.
Prudential is the largest life insurance company in the United
Kingdom. Asia has always been an important region for Prudential
and it has had a presence in Asia for over 75 years. In fact
Prudential's first overseas operation was in India, way back in 1923
to establish Life and General Branch agencies.
THE JOINT VENTURE:
ICICI Prudential Life Insurance Company Limited was incorporated

on July 20, 2000. The authorized capital of the company is Rs.2300
Million. The paid up capital is Rs. 1900 Million. The Company is a
joint venture of ICICI (74%) and prudential plc UK (26%).
The Company was granted Certificate of Registration for carrying
out Life Insurance business, by the Insurance Regulatory and
Development Authority on November 24, 2000. It commenced
commercial operations on December 19, 2000, becoming one of the
first few private sector players to enter the liberalized arena.
Icici prudential life insurance company limited:
Vision:
To be the dominant Life, Health and pension player built on
trust by world class people and service.
VALUES:
Customer first:
(Own the customer; deliver the promise)
 Keep customer interest in the centre of all decisions.
 Promise what you can, deliver it to finish.
 Proactively seek voice of customer and act on it.
BOUNDARYLESS:
(Never say ‘It’s not my job’)
 Offer help and support across functions to ensure
business success.
 Seek and share ideas freely.
 Recognize and respect internal customers.
 Understand and value contributions from colleagues.
Integrity:
(Be honest and fair in what you say and do)
 Practice what you preach.
 Stand up honestly and fearlessly for what is right.
 Act in a consistent and equitable manner.
 Think and act for long term impact.
OWNERSHIP:
(If it is to be, it is up to me)
 Take responsibility and see tasks through to completion.
 Own mistake, Learn from failure.
 Pursue goals relentlessly, never give up.
 Be a team player, take ownership for team performance.
PASSION:
(Boundless energy and enthusiasm)
 Exhibit ‘winning Instinct’.
 Demonstrate speed and urgency for achieving results.
 Challenge status quo & do things differently.
FUNCTIONS:
ICICI Prudential offers exciting career opportunities for people from

a variety of streams.
Sales Distribution
Tied Agency
Tied Agency is the largest distribution channel of ICICI Prudential,
comprising a large advisor force that targets various customer
segments. The strength of tied agency lies in an aggressive strategy
of expanding and procuring quality business. With focus on sales &
people development, tied agency has emerged as a robust,
predictable and sustainable business model.
BANC ASSURANCE AND ALLIANCES:
ICICI Prudential was a pioneer in offering life insurance solutions

through banks and alliances. Within a short span of two years, and
with nearly a large number of partners, B & A has emerged as a
vital component of the company's sales and distribution strategy,
contributing to approximately one third of company's total business.
GROUP:
The Group Business of ICICI Prudential has been in existence for

over 2 years. Today, we are the Number 1 player among private life
insurance companies in Group Business excluding Mortgage
Reducing Term Assurance (MRTA) with a market share of 26 %( FY
2004-2005). We offer the entire gamut of products including
Gratuity, Superannuation Term Insurance, Leave Encashment,
Employee Deposit Linked Insurance (EDLI), Mortgage Reducing
Term Assurance (MRTA) & Informal Group Term covers.
CUSTOMER SERVICE AND OPERATION:
The Operations department oils the work processes between the

customers and the company to ensure consistent and quality service
to the customer. To streamline the operations, the Operations
department interfaces between the clients and the agents, the
branches and the underwriters, and manages work processes.
The Vision at Customer Service is to deliver 'World Class Service' at
every opportunity.
INFORMATION TECHNOLOGY:
The Information Technology function at ICICI Prudential is

committed to enable business through the use of technology. It is
segmented into 4 groups to enable highest levels of delivery to the
customers: Life Asia Solutions Group that provides flexibility in
designing better product offerings to end-users, the Solutions
Group- Web that provides real-time information to customers and is
responsible for customer relationship management, IT Architecture
& Corporate Solutions Group is in charge of developing and
maintaining a blueprint for the IT architecture for the enterprise as a
whole. This team works as an in house R&D Solution Group.
MARKETING:
The Marketing function at ICICI Prudential covers an array of

activities - brand and media management, channel support, direct
marketing and corporate communications. The Brand and
Communications team is in charge of advertising, consumer
research, media planning & buying and Public Relations; that helps
develop and nurture ICICI Prudential's corporate identity while
effectively communicating its varied product offerings to the
customer. Channel marketing provides support to the sales force by
streamlining the design and development of collaterals and sales
tools across distribution channels. The Direct marketing team was
set up to generate high quality leads for profitable business. The
team achieves this through target database acquisition and
communicating customized product information through e-mailers,
telemarketing and innovative direct mailers.
FINANCE:
Finance function in ICICI Prudential is committed to create an

infrastructure that is aligned to shareholder expectations. Finance
basically comprises of four functions. . Corporate Planning and MIS
provide feedback on business strategies. This includes driving the
budgeting process, providing strategic inputs for decision-making
and management reporting and analysis. The Accounts function
includes preparation and maintenance of financial records, funds
management, and expense processing and treasury operations.
Compliance ensures that every action is within the regulatory
framework. This includes reviewing compliance requirements and
supporting the ethical framework of ICICI Prudential life. Internal
audit provides assurance to the management over the organizations'
control framework and includes process risk management,
information security assessment and business continuity
assessment.
HUMAN RESOURCE:
The people strategy of ICICI Prudential is "To build a committed

team with a culture of innovation, learning and growth. The Human
Resource Function at ICICI Prudential drives the people strategy of
the business. With its initial focus on operational excellence to
deliver benefits and services to staff members, HR is now committed
to building capability through state of the art processes. A robust
performance management system, compensation system and a
segmented training architecture enable it to deliver value to the
organization.
BUSINESS:
Excellence the Business Excellence function is committed to building

a quality mindset across the organization. ICICI Prudential is the
first organization in the Insurance Industry that has adopted the Six
Sigma Methodology for process efficiency and measurement. The
team is also driving the Malcolm Baldrige framework across the
organization, an intervention that examines management of key
inputs for Business Excellence.
STRATEGIES TAKEN BY ICICI:
As a life insurance company, we know that our customers trust their

monies with us for the long-term, and hope to use these funds to
protect and achieve the dreams and aspirations of their families.
With this in mind, our investment focus is to ensure long term
Safety, Stability and Profitability of our customers‘ funds. Our aim is
to achieve superior returns for a given level of risk. In order to meet
this objective, we have developed an investment framework that is
based on a sound investment process coupled with a rigorous and
sophisticated risk management strategy.
INVESTMENT PROCESS:
Our investment management process relies on analytics & research

to achieve positive risk-adjusted returns in each product category,
be it for child plans, retirement solutions or other endowment-
related funds. We clearly define an asset allocation strategy that
matches the risk characteristics of the corresponding liability, or, put
simply, – we ensure that the promise we have made to the
customer will be met.
The investment decision-making process has three tiers, each of
which has varying degrees of discretion and considers detailed
research in order to decide the best portfolio composition. The
emphasis is to segregate the decision to buy scrip from the process
of actually buying it, and thereby institutionalize decision-making.
Our investment management team that has a cumulative experience
of more than 50 years in various aspects of market like research,
trading, risk management etc. The top management teams at ICICI
Bank and Prudential Corporation Asia ably guide the investment
team in making the strategic asset allocation and continuously
monitor the performance of the investment team.
INVESTMENT DECISIONS:
Debt investments target a mix of government and corporate bonds.

The investment process is backed by intense research and analysis
and comprises qualitative as well as quantitative measures. We
make calls after carefully studying all the factors that influence
interest rate direction, such as RBI policy and stance, inflation,
growth of money supply, credit off-take, fiscal deficit, global interest
rate scenario and market sentiment. Detailed research reports
obtained from credit rating agencies form the primary basis for
investment decisions. In addition, the team‘s assessment of
economic cycle, industry health, its perception of management
quality and demand and supply situation in stock of a particular
entity influences the investment decision.
The investments in equity are targeted at long-term capital
appreciation. We are not bound by traditional pure value or growth
driven strategy and continuously look where both co-exist. Portfolio
diversification lies at the core of our investment strategy. We have a
clearly articulated benchmark for each of our funds and have well-
defined deviation limits vis-à-vis benchmark at both the sector and
stock level. W e combine a top-down and bottom-up approach while
choosing stocks for our investment, considering several factors like
management quality, performance track record (in relation to the
sector), dividend track record, transparency in disclosures,
execution capabilities etc. Our equity portfolio has a large cap bias,
as we believe that they offer higher risk adjusted returns. However
we do invest in mid-caps provided they satisfy at least one of the
criteria viz. presence in high growth industry, one of the industry
segment leaders, niche player, offer a play on outsourcing
opportunity or structural turnaround in performance. Thus the focus
is on ensuring consistent, stable and better risk adjusted
performance over long term for our policyholders.
BENCHMARKS:
To ensure that we maintain a strict discipline in managing

policyholders‘ funds, we have clearly articulated benchmarks for
various unit-linked funds. In addition we also have strict deviation
limits vis-à-vis benchmarks that ensure that we do not take undue
exposure in any particular sector or stock. It is our endeavor to give
better returns than the benchmark to policyholders for all the funds
that we manage.
In summary, our investment process is a function of extensive
research and is based on data and reasoning, backed by superior
risk control measures. This, we believe, would enable us to deliver
to our customers safety, stability and returns on their investments
with us.
Product:
ICICI Prudential‘s ultimate promise is financial security. A strong

brand certainly boosts sales, but without customer-friendly,
innovative products, even the best brand would not last long.
ICICI Prudential‘s product range has been developed on the
understanding that different people have their own sets of needs at
various stages of their lives. It has thus built a flexible portfolio of
products that can be customized to cater to varying needs of people
at each life stage, and thus ensure protection in every step of life.
The company‘s philosophy has been to help customers understand
their financial needs.
Promotion:
ICICI Prudential is a case study in how advertising and marketing

can play a vital role Forbes Six Sigma rated Dabbawalla
organizational re-shaping an industry. It has in Mumbai for a direct
marketing exercise. Demonstrated how an industry, where the
customer was In a unique effort to create awareness about a tax-
nothing more than a policy saving product, the company attached a
creative number has changed to one of a bitten apple to Mumbai‘s
ubiquitous where ‗customer preference‘ lunchboxes. It worked
wonderfully with Mumbai‘s rules the roost. office-goers and one that
translated into substantial business for the company. Brand-building
in a complex category like life insurance is Brand Values an uphill
and multi-faceted task. At the time of launching Market research
reveals that the values people operations, the associate with ICICI
Prudential are, indeed, those communications task was to that the
company hopes to project: lifelong build credibility, so as to give
protection and value for money. The core value is the customer the
confidence protecting your loved ones, throughout life‘s ups that it
was ‗a company that and downs. It is a powerful proposition; one,
which could be trusted to invest funds ICICI Prudential, is taking
into the marketplace.
The aim was to encourage people to view insurance not as a
compulsory tax saving instrument, but as a means to lead a worry-
free, and work closely with them to customize a product secure life
and in the process, that would meet this need. Advisors can offer a
create the differentiator for brand ICICI Prudential. complete range
of products - Savings plans, Child plans, Market-linked plans,
Protection plans, The brand proposition for all the campaigns was
Retirement plans, Investment plans and group reflected in the line:
‗Suraksha: Zindagi ke har plans – and tailor a flexible solution to
meet the kadam par‘. The campaign featured a significant customer‘
changing needs at every stage of life. competitive advantage, the
sound financial In fact, ICICI Prudential was the first to un-bundle
backing and credentials of ICICI and Prudential, product benefits,
pioneering the concept of ‗riders‘ and showcased products from
different segments. And soon after introduce comprehensive
market-The advertising idea was encapsulated in the linked and
retirement plans. symbol of protection — the ‗Sindoor‘. This
campaign contributed extensively to raising brand Recent
Developments awareness and creating a distinctive identity for the
company.
In keeping with its belief that a happy customer is At the same time
the theme of protection was the best endorsement, ICICI Prudential
has embraced the ‗Six Sigma‘ approach to quality, an carried
forward with ICICI Prudential‘s ‗Safe Puja‘ contest where Puja
Pandals contested to be the exercise that begins and ends with the
customer – ‗Safest‘ Puja Pandal. This beautifully tied in the from
capturing his voice to measuring and responding to his experiences.
This initiative is concept of protection with the popular local event of
Durga Puja. The refreshingly different ‗Retire from work, not life‘
campaign succeeded in bringing retirement planning into the
consideration set of a younger target audience, and won a Silver
Effie for its efforts. The media campaign was complemented by
seminars to spread awareness about the need for retirement
planning. Very recently, the company launched a new corporate
campaign – an extension of the ‗Sindoor‘ communication – which
aims at Things you didn't know about ICICI Prudential The logo is
the combination of ICICI Bank‘s I-man and Prudential‘s lady
prudence. The I-man signifies the dynamic individual with drive and
conviction, while Prudence epitomizes wise conduct. Every three
minutes ICICI Prudential protects one more Indian life. ICICI
Prudential is the only Indian life insurance company to have an
equity base of more than Rs. 5 billion. ICICI Prudential is the only
life insurance company to implement a Six Sigma quality program.
Of the company‘s 2,000 plus employees, less than 5% have prior
experience in the life insurance industry. The average age of its
employees is 29 years.
Performance Management:
We are committed to creating a performance driven culture through

effective management of performance of all staff members in a way
that is mutually beneficial. We drive the same by linking individual
performance objectives to business objectives and evaluating
performance consistently and fairly. To know more about the
Performance Management system, the philosophy, Goal setting,
Appraisal Process, Job Descriptions etc. click on the Performance
Management Link.
 Training & Capability Development Programs:
The focus of our Training is to develop key competencies & skills

among staff members so as to facilitate attainment of full people
potential.
 Capability Development Programs (S&D):
The focus of our Capability Development Programs is to create a

robust design for assessment of high performing employees in
sourcing roles and provide a framework for their career progression.
 HR Policies & Procedures:
The Policies and procedures laid down here promote the philosophy
of the Company with regard to standards of excellence; terms of
employment; employee development; and employee services. The
objective of this section is to inform you of the Policies related to
Travel, Compensation, Mediclaim, Transfers etc.. We recommend
that you make yourself aware of the entitlements.
PACE:
The PeopleSoft initiative P.A.C.E. is an enabler for our People

Processes. It is Personalized, Accessible, Convenient and Easy and a
key stepping-stone in providing a platform for HR processes that are
truly world standard.
Direct marketing:
1. Getting more from call centers:
Call centers have become essential to the marketing and

customer care strategies of many businesses over the past 30
years. But our experience shows that most of these facilities don't
maximize their usefulness. No one can argue with the need to keep
a firm grip on costs, but indiscriminately moving customer traffic to
a company's Web site or haphazardly outsourcing call centers can
make them less rather than more effective. The key is to develop a
customer service strategy that successfully balances costs, revenues
generated, and quality. Only then can companies transform their call
centers into strategic assets that provide a competitive advantage
and promote growth.
Companies that get the most from their call centers act on three
imperatives. They define a customer service strategy that goes
beyond merely providing good service at low cost. To deliver their
strategy, they put in place an infrastructure that uses outsourcing
and technology in a judicious way. And they ensure the best
possible execution by their agents in all interactions with customers
by investing time and money in coaching and in performance-
management systems. These companies can reap big benefits:
increasing revenue from call centers by 20 to 35 percent, cutting
costs by 15 to 25 percent, and improving the quality of service.
2. Manufacturing lessons for service industries:
Insurance companies are in the thick of this transformation. To

be sure, for many years their investments generated revenues that
shored up their profits, so they experienced less pressure than
manufacturers did to overhaul every aspect of their operations. But
when the boom in equity markets cooled off, insurers had to earn
their profits by selling products and serving customers—in other
words, by running their businesses more effectively. A number of
global insurance giants are thus overhauling their service and
operating strategies. A few, including Paris-based AXA, are adopting
tools and practices pioneered by manufacturers to help them
improve the way they deliver value to customers.
3. Organizing for crm:
Companies should treat a customer-relationship-management

solution as a product or service and its users as internal
customers—by making it valuable, pricing appropriately, advertising,
and providing after-sales support.
4. On-line banking:
The indifferent performance of virtual banks in converting the public

to on-line banking would seem to hand the advantage to their
traditional competitors. Yet most incumbents have been slow to
meet the on-line needs of their customers.
TAX BENEFITS INSURANCE AND PENSION:
 Life insurance and retirement plans are effective ways of saving

taxes.
 The tax breaks that are available under our various insurance and
pension policies are described below:
 Our life insurance plans are eligible for deduction under Sec. 80C.
 Our Pension plans are eligible for a deduction under Sec. 80CCC.
 Our health insurance plans/riders are eligible for deduction under

Sec. 80D.
 The proceeds or withdrawals of our life insurance policies are

exempt under Sec 10(10D), subject to norms prescribed in that
section.
ICICI PRUDENTIAL INVESTMENTS:
Investments Team:
PUNEET NANDA (EVP & Chief Investment Officer)
Mr. Puneet is an engineer with a PGDM from IIM, Lucknow. He has

14 years of experience in the areas of treasury, trading and fund
management. He has been with ICICI Prudential since the inception
of the company and has overall responsibility for managing the
entire investment portfolio of the company. Prior to joining ICICI
Prudential, he has worked in leading foreign and Indian financial
institutions.
FUND MANAGEMENT & RESEARCH TEAM:
MANISH KUMAR (SVP & Head – Equity)
Mr. Manish is an engineer with a PGDM from IIM Kolkata. He has 15

years of experience in the area of fund management. Prior to ICICI
Prudential, Manish has been with a leading Indian asset
management company.
LAKSHMIKANTH REDDY (SVP & Fund Manager – Equity)
Mr. Lakshmikanth is an engineer with a PGDM from IIM Ahmadabad.

He has 11 years of experience in the area of equity analysis and
fund management. Prior to joining ICICI Prudential, Lakshmikanth
has worked with leading foreign financial institutions.
JITENDRA ARORA (VP & Fund Manager – Fixed Income)
Mr. Jitendra is a commerce graduate and has a PGDM from IIM

Bangalore. He has been with ICICI Prudential since 2001 in the
areas of financial risk management, actuarial and fund
management.
ARUN SRINIVASAM (VP & Fund Manager - Fixed Income)
Mr. Arun has done Masters in Management Studies from Mumbai

University. He has 11 years of experience in the areas of treasury
and trading. Prior to ICICI Prudential, Arun worked with a leading
Indian fund house.
MEGHANA BAJI (VP – Investment & Risk Management)
Mrs. Meghana is a Chartered Accountant with a PGDM from IIM

Bangalore. She has 10 years of experience in the areas of treasury,
fund management and asset liability management. Prior to ICICI
Prudential, Meghana worked with a leading private bank in India.
SHILADITYA DASGUPTA (Associate Vice President & Equity Analyst)
Mr. Shiladitya is an engineer with post graduation from IIITM

Gwalior. He has 8 years of experience as a research analyst. Prior to
ICICI Prudential, Shiladitya worked both in a leading foreign
financial institutions and a domestic broking house.
AKALP GUPTA (Senior Manager – Equity Dealing & Analysis)
Mr. Akalp is an engineer with a PGDM from IIM Kozhikode. He has 5

year of experience as an equity analyst. Prior to ICICI Prudential, he
has worked with both Indian and foreign financial institutions.
FATEMA PACHA (Manager & Equity Analyst)
Mrs. Fatema is an engineer with PGDM from SP Jain Institute

(Mumbai). She has 2 year of experience as an equity analyst. Prior
to ICICI Prudential, she has worked with a leading domestic fund
house.
SUMANTA KHAN (Manager & Equity Analyst)
Mrs. Sumanta is an engineer with PGDM from IIM Indore. Sumanta

has 2 years of experience as an equity analyst. Prior to ICICI
Prudential, he has worked with a leading foreign financial institution.
UNIT LINKED INSURANCE PLANs (ULIPs)
Unit linked insurance plan (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). The policy value at any time varies
according to the value of the underlying assets at the time.
BENEFITS
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
CONCEPTS
Policy Implications Remember

Fundamentals
Sum Highest of the either of The minimum sum
Assured the two: assured also depends on the
term for which the policy has
0.5*Term*Annual been taken
Premium
5*Annual Premium
Minimum Minimum term of 5 years All unit linked plans have

Policy Term for all unit linked plans. a term or duration for which
the policy is taken. This
needs to be specified on the
start or onset of the policy.
Premium Customer gets to decide Premium options in ULIP:
the premium to be paid as Single or Regular
per his investment capacity.
Fundamentals
Cover In case the policy holder is All the applicable charges will
Continuance unable to pay premiums be automatically deducted
anytime after payment of 3 from the units available in the
years premium and the fund.
completion of 3 policy years If policyholder wants to
the policyholder can avail restart premium payment; the
cover continuance option. It payment needs to be made
ensures that the life cover within 24 months from the
continues even if the last unpaid premium. The
policyholder discontinues option will be available as long
paying future premiums. as the fund value remains
over 110% of one year
premium.
In case the policyholder has
not opted for cover
continuance, then the sum
assured is applicable for a
period of 2 years from the last
unpaid premium post which
the policy will be foreclosed
and the applicable surrender
value will be paid.
Revival There is an option to If the policy is not

revive the insurance policy reinstated it gets terminated
within 2 years from the date and the surrender value is
of lapsation. This period is paid.
called the re-instatement
period.
LIQUDITY OPTIONS
Fundamentals
Surrender Surrender value can be Minimum surrender value
value paid only after the end of has to be equal to 1 year full
fifth year and after the 3 premium.
completed policy years.
Partial Can be made after the If the partial withdrawal is
withdrawal third policy anniversary made before 60 years of age,
then the sum assured paid on
Effect of death benefit on death is reduced to the
partial withdrawal. extent of partial withdrawal
made in the preceding two
Partial withdrawals not years. If the partial
applicable in pension plans withdrawal is made after 60
years of age, then the sum
assured paid on death is
reduced to the extent of all
partial withdrawal made from
the age of 58 onwards.
Settlement The policyholder has an Provides you the flexibility
options option to withdraw his/her to receive a structured
money systematically over a payment of fund value
period of 5 years on depending on the period and
maturity of the policy. payment mode selected. It
can be exercised for a period
of 1/2/3/4/5 years from
maturity.
Payment modes available

yearly, half-yearly, monthly
(through ECS).There is no life
cover during the settlement
period. Policy holder can
withdraw the full amount any
time without any penalty.
Switch and ATP option are
not allowed during settlement
period.
CHARGES IN ULIP
PREMIUM ALLOCATION CHARGES:
These charges are deducted upfront from the premium paid by the
client.
These charges account for the initial expenses incurred by the
company in issuing the policy like cost of underwriting, cost of
medicals (if applicable), advisors commissions and other incidental
expenses.
These charges vary from plan to plan.
Only after these charges have been deducted that the other charges
are charged or money diverted towards funds for investment.
ADMINISTRATIVE CHARGES:
These charges are deducted on a monthly basis to recover the

expenses incurred by the insurer on servicing and maintaining the
life insurance policy.
These charges vary from plan to plan.
These charges are popularly known as Admin. Charges.
MORTALITY CHARGES:
These are the costs of life insurance cover. They are exclusive of
any expenses, loading levied by cancellation of units.
Mortality
Age
FUND ALLOCATION OPTIONS AVAILABLE
Objective Features Benefits
Details
Switch It is an 4 switches are The policyholder
option which completely free per retains control of
allows the policy year. his/her investments.
policyholders to
shift the funds Subsequent Policyholders can
from one fund to switches will be keep reallocating his
another as per charged a nominal investments across
the financial fee of Rs. 100. the various funds.
goals and
market
condition.
Premium This option Allocation of This option
redirection allows the previous premiums provides the
policyholders to remains customer with the
change the unchanged; benefit of
allocation of the therefore these reallocating fresh
renewable options are premiums as per the
premiums. applicable to only prevailing market
future premiums. condition.
As the
policyholders Premium
age progresses, redirection is free.
his risk appetite
changes.
Automatic The funds Policyholder can The policyholder
Transfer would get choose either a is relieved of the
Plan (ATP) transferred fixed amount or a burden of keeping a
automatically on fixed percentage constant track of the
a fixed date transferred market fluctuations.
every month as periodically.
a fixed amount Since the
or percentage. Minimum ATP is reallocation happens
Rs. 2000. ATP will every month he gets
cease if the funds the benefit of rupee
in the protector are cost averaging.
insufficient.
WORKING OF AN ULIP PLAN:
PREMIUM Rs. 20,000
Allocation Charges
LESS CHARGES Rs. Admin Charges
4,000 Riders Charges
REMAINING
AMOUNT Rs. 16,000
LIFE COVER
INVESTMENT The policyholder can
MORTALITY
Corpus of Rs. allocate the corpus to the
CHARGES Rs. 750
15,250 invested in debt, equity or balanced
chosen options options in any proportion The mortality charges
he wants. He can also levied in the initial
change this allocation years subsequently
ASSET based on his reading of come down. From 3rd
ALLOCATION market conditions. Up to year onwards, only 1-
UNITS 4 switches in a year are 2%Dedt
of the annual
ALLOCATED free. premium paid is
Debt deducted while the rest
Equity flows into the
Balancer investment corpus.
VALUE OF INVESTMENT
SHOWN AS NAV
OBJECTIVE
The main objectives of my project are:
 To study the awareness of ULIP in the market place
 To analyze the financial literacy of ULIP investors in West Bengal
 To determine consumer perception towards investment in ULIPs.
 To study investors satisfaction level.
 To study the latest trends in the market which helps in its
repositioning and decision-making?
 To Draft Questionnaire and collect feedback from the Investors,
Advisors and Companies.
RESEARCH METHODOLOGY
 The research design adopted in this study is Descriptive Research

Design. A descriptive research design is the one which is
description of the state of affairs as it exists at present. It includes
survey and fact finding enquiries of different kinds.
 The sampling adopted here is Stratified Random Sampling. It is

the non probability sampling. This sampling procedure does not
have any basis for estimating the probability that each item in the
population has included in the sample. Here the sampling is based
on three demographic factors of the investors i.e., age, sex and
marital status.
 A sample of 100 (Investor), 45 (Advisor) and 5 (company) have

been taken for the survey. The required data collected through
questionnaire. Total three questionnaires (for investors, advisors
and companies) have been designed.
 The geographical sampling unit under study has covered the area of
Bankura, Purulia, Burdwan, Midnapore and Kolkata of West Bengal.
 The information required for our project was collected mainly from
the primary sources and even from secondary sources. The primary
source consists of the data analyzed from questionnaires and
interaction with the users at that time only. Internet and magazines
are used as secondary source.
 Firstly sample testing is done on 10 samples and on the basis of the

feedback and responses of these respondents, various modifications
done in the questionnaire and then final survey is done by
questionnaire schedule method.
LIMITATION
 The data which will be collected from customers and dealers is

through questionnaires and is subject to response errors.
 The data that will be collected is primary and secondary and have
chances of discrepancy.
 Our observation is confined to some parts of West Bengal only.
 Frequent changes in the market trend and consumer

preferences.
 We have taken a sample of 100 investors, 45 advisors and 5

companies only. This sample is not very large for analysis and the
major population in the sample group will be middle class group that
will make deviation in the results and the inaccuracy of the results
because of respondent‘s response
SURVEY ANALYSIS
INVESTORS’ REPORT
DISTRIBUTION OF INVESTORS BY DEMOGRAPHIC FACTORS
PROFILE PARTICULAR NO OF RESPONDENTS PERCENTAGE
SEX
MALE 82 82%
FEMALE 18 18%
AGE
15 to 30 35 35%
31 to 45 40 40%
46 to 60 20 20%
61 & above 5 5%
MARITAL STATUS
MARRIED 56 56%
UNMARRIED 28 28%
DIVORCED 2 2%
WIDOW(ER) 14 14%
According to my survey report out of 100 investors 46% have an annual
income of less than 1.5 lacs, 32% are in between 1.5 lacs and 3 lacs, 12%
within 3 lacs and 5 lacs and the rest 10% people is above 5 lacs.
ANNUAL INCOME
10%
12% < 1.5 Lacs

46% 1.5 Lacs to 3 Lacs
3 Lacs to 5 Lacs
5 Lacs & above
32%
In my sample size, 76% people save less than 15% of their annual
income, 21% people save 15% to 30% of their annual income and the
rest 3% save more than 30% of their annual income.
SAVINGS
3%
21%
< 15%
15% to 30%
30% & above
76%
In my survey report, total 57% of the Life Insurance market has been
tapped so far and the rest 43% are yet to be covered.
LIFE INSURANCE POLICY HOLDERS
43% YES
NO
57%
Out of the 57% market tapped so far, 67% people have taken ULIP and
the rest 33% have taken NON-ULIP.
PLAN TAKEN SO FAR
33%
NON-ULIP
ULIP
67%
Out of the rest 43% people which remain untapped 61% prefer to take
ULIP and the rest 39% NON-ULIP.
PREFERED PLAN
39%
NON-ULIP
ULIP
61%
Out of the 100 sample, 42% people choose LICI for the NON-ULIP plans
followed by ICICI (21%), HDFC (20%), Bajaj Allianz (11%), Kotak
Mahindra (3%) and others (3%).
COMPANIES FOR NON-ULIP

3%
ICICI
21%
20% BAJAJ ALLIANZ
KOTAK MAHINDRA
11% LICI
HDFC
42% 3% OTHERS
On the other hand, when question arises for ULIP 39% people choose
ICICI followed by LICI (30%), HDFC (21%), Bajaj Allianz (5%), Others
(3%) and Kotak Mahindra (2%).
COMPANIES FOR ULIP

3%
ICICI
21% BAJAJ ALLIANZ
39%
KOTAK MAHINDRA
LICI
HDFC
30%
OTHERS
5%
2%
According to my survey report, 69% people are aware of the features of

ULIP and the rest 31% are not aware of these.
AWARENESS OF FEATURES OF ULIP
31%
YES
NO
69%
ADVISORS’ REPORT
As per the 45 advisors wherein 71% are there in this job for more than 5
years, 40% are from LICI followed by ICICI (35%), Bajaj Allianz (21%)
and Other (4%), 91% of the advisors have underwent all the training
provided by their respective companies. 40% of them have sold both the
plans, 33% sold only ULIPs and the rest 27% sold only NON-ULIPs. Out of
the advisors who sold both the plans, 67% have sold ULIP the most and
the rest 33% have sold NON-ULIP the most. As far as their approach to
the customers are concerned, 60% of them use telephone followed by
direct (24%), others (11%) and through net (5%). Total 87% of them
take more than 10 days to issue a policy. 60% of them think that ULIP is
more demanding than NON-ULIP. As far as the factors are concerned
which make ULIP more demanding, out of the 60% advisors high return
(52%) followed by, fund options (22%), high risk (20%), transparency
(4%) and other (2%).
COMPANIES’ REPORT
As per the interviews conducted with 5 insurance companies (ICICI
Prudential, SBI Life, Bajaj Allianz, Birla Sun Life and TATA AIG), all of
them deal in both the plans – ULIP as well as NON-ULIP and their
maximum market coverage is there with ULIP. All of them think that the
ULIPs have been affected by the current market scenario due to market
volatility. Advisors are the main way which they follow to communicate
with their customers. As per all the 5 companies they provide all the
training to all their advisors before they start their job. All the 5 services
(mentioned in the questionnaire) are provided by all of them. All the 5
companies go for need analysis of the customers before giving them the
right choice. As far as the growth is concerned, all the companies think
that they have moderate to high growth rate in the districts of West
Bengal.
FUND ANALYSIS
FUNDS AVAILABLE UNDER ULIPs.
 BALANCER: To generate a good mix of long term capital appreciation
along with current income through investment in equity as well as fixed
income instruments in appropriate proportions depending on market
conditions prevalent from time to time.
 MULTIPLIER: Term capital appreciation from an equity portfolio. Fund

composition: 60% in large caps stocks and max 20% in debt.
 MAXIMIZER: To generate long term capital appreciation through

investment primarily in equity and equity related instruments.
 PRESERVER: To provide suitable returns through low risk investments in

debt and money market instruments while attempting to protect capital
deployed in the fund.
 PROTECTOR: To generate a steady stream of income through investment

in various fixed income securities. We would seek to generate adequate
capital appreciation as well while maintaining suitable balance between
returns, safety and liquidity.
 RICH: Invests in resources, investments, consumption and human capital

equity & equity related securities max 100%. Debt, money market & cash
max 20%.
 FLEXI BALANCE: To achieve a balance between capital appreciation and

stable returns by investing in a mix of equity and equity related
instruments of large, mid and small cap companies and debt and debt
related instruments.
 FLEXI GROWTH: To generate superior long term returns from a diversified

portfolio of equity and equity related instruments of large, mid and small
cap companies.
 CASH PLUS: The investment objective of this fund is to provide

accumulation of income through investment in various fixed income
securities. In addition to protecting the capital, the fund seeks to provide
capital appreciation while maintaining suitable balance between returns,
safety and liquidity.
 SECURE PLUS: The investment objective of this fund is to provide
accumulation of income through investment in various fixed income
securities.
 INVEST SHIELD: The investment objective of this plan is to provide a

balanced investment between long term capital appreciation and current
income while protecting the capital. Investment will be in fixed income
instruments as well as equity in appropriate proportions depending on
market conditions prevalent from time to time.
 RGF: RGF stands for Return Guaranteed Fund which has been created in
order to guarantee the return on the first year premium. The rate of return
is very marginal and varies from tranche to tranche. In the current
tranche (RGF-5) on NAV of Rs. 10, 13.39 has been guaranteed.
PORTFOLIO DETAILS AND NAV PERFORMANCE

(AS ON 31ST MARCH, 2009)
BALANCER Balancer (Balanced)

Fund
Company
30
1.17%
11.28% 25
8.74% Corporate
securities 20
NAV
28.33% Government 15
securities / T
Bills 10 NAV
50.48%
Fixed deposits 5
with banks
0
Other current
20-Jan-09
20-Mar-09
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
assets and
equivalent
MULTIPLIER Multiplier Fund
10
9
8
13.35% 7
Company
6
5.09%
NAV
5
Corporate 4
securities NAV
3
81.56% 2
Other current
assets and 1
equivalent
0
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
20-Jan-09
20-Mar-09
MAXIMISER Maximiser (Growth)
Fund
Company 70
5.41% 60
0.88%
Corporate
50
13.40% securities
40
NAV
Government
securities / T 30
Bills NAV
76.99% 20
Fixed deposits
3.32% 10
with banks
0
Other current
20-Mar-09
20-Jan-09
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
assets and
equivalent
PRESERVER Preserver (Short
Term) Fund
15
Corporate 14.5
securities
10.88%
14
NAV
Fixed 13.5
deposits
16.57% 72.55% with banks 13 NAV
Other 12.5
current
assets and 12
equivalent
20-Mar-09
20-Jan-09
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
RICH RICH Fund

12
Company
10
1.61%
10.82% Corporate 8
0.42% securities
NAV
6
Government
securities / T 4 NAV
80.88% Bills
6.27% Fixed 2
deposits with
banks 0
20-Jan-09
20-Mar-09
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
Other current
assets and
equivalent
PROTECTOR Protector (Income)
Fund
19
Corporate
18.5
securities
14.86% 18
8.76% Government 17.5
securities / T
NAV
17
Bills
16.5
62.44% Fixed deposits NAV
with banks 16
13.94% 15.5
Other current
15
assets and
20-Jan-09
20-Mar-09
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
equivalent
Flexi Balanced
FLEXI BALANCE
14
Company
12
2.14%
10
16.36% Corporate
securities 8
NAV
38.80% Government 6
securities / T NAV
Bills 4
34.13% Fixed deposits
8.56% 2
with banks
0
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
20-Jan-09
20-Mar-09
Other current
assets and
equivalent
FLEXI GROWTH Flexi Growth
14
Company
12
0.50%
10
11.62% Corporate
securities 8
6.62%
NAV
Government 6
securities / T NAV
4
80.66% Bills
Fixed deposits 2
with banks
0.60% 0
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
20-Jan-09
20-Mar-09
Other current
assets and
equivalent
CASH PLUS Cash Plus Fund

15
Corporate 14.5
securities
10.37% 14
12.36%
Government
NAV
13.5
securities / T
Bills
13 NAV
with banks 12.5
13.73% Other current 12

assets and
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
20-Jan-09
20-Mar-09
equivalent
SECURE PLUS Secure Plus Fund
15
Company
14.5
0.15%
14
14.36% Corporate
5.70% securities 13.5
NAV
Government 13
securities / T NAV
66.13% 12.5
Bills
Fixed deposits 12
13.66% with banks
11.5
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
20-Mar-09
20-Jan-09
Other current
assets and
equivalent
INVEST SHEILD Invest Shield

14.5
Company
14
13.5
12.17% Corporate
19.22%
securities 13
7.83%
NAV
Government 12.5
securities / T NAV
Bills 12
49.34%
Fixed deposits 11.5
11.44% with banks
11
Other current
20-Jan-09
20-Mar-09
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
assets and
equivalent
RGF Return Guarantee Fund
11.1
Company 11
10.9
3.26% 10.8
Corporate
10.52%
securities 10.7
NAV
10.6
Government
10.5
securities / T NAV
Bills 10.4
86.22%
Fixed deposits 10.3
with banks 10.2
10.1
Other current
assets and
equivalent
PENSION BALANCER Pension Balancer

(Balanced) Plan
Company
30
25
11.48% Corporate
0.92% securities 20
NAV
26.56% Government 15
11.00% securities / T
Bills 10 NAV
50.04%
Fixed deposits 5
with banks
0
Other current
20-Jan-09
20-Mar-09
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
assets and
equivalent
PENSION MULTIPLIER Pension Multiplier
Fund
Company
12
10
14.23% Corporate
1.29% securities 8
NAV
Government 6
3.67%
securities / T
Bills 4 NAV
0.64%
80.17%
Fixed deposits 2
with banks
0
Other current
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
20-Jan-09
20-Mar-09
assets and
equivalent
PENSION MAXIMISER Pension Maximiser

(Growth) Plan
Company
70
60
13.55% Corporate
50
1.12% securities
40
NAV
5.98%
Government
30
securities / T
76.97% Bills NAV
20
with banks 10
0
Other current
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
20-Mar-09
20-Jan-09
assets and
equivalent
PENSION PRESERVER Pension Preserver
(Short Term) Fund
14.5
13.26% Corporate 14
securities
13.5
NAV
Fixed deposits
with banks 13
69.48% NAV
17.26% 12.5
Other current
assets and
equivalent 12
20-Jan-09
20-Mar-09
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
PENSION PROTECTOR Pension Protector
(Income) Fund
17
Corporate 16.5
securities
11.76%
16
17.50%
Government
15.5
securities / T
NAV
Bills 15
56.78% Fixed deposits NAV
with banks 14.5
13.96% 14
Other current
assets and 13.5
equivalent
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
20-Jan-09
20-Mar-09
PENSION RICH Pension RICH Fund
12
Company
10
1.77%
11.98% Corporate 8
1.50% securities
NAV
6
Government
3.08% securities / T 4 NAV
Bills
81.67%
Fixed deposits 2
with banks
0
20-Mar-09
20-Jan-09
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
Other current
assets and
equivalent
PENSION FLEXI Pension Flexi Balanced

BALANCE 14
12
Company
10
1.67% 10.58%
Corporate 8
19.01%
NAV
securities
6
39.89% Government NAV
securities / T 4
Bills
28.84% Fixed deposits 2

with banks
0
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
20-Jan-09
20-Mar-09
Other current
assets and
equivalent
PENSION FLEXI Pension Flexi Growth
GROWTH 14
12
Company
10
11.88%
8
NAV
5.59%
Corporate
6
securities
NAV
4
Government
82.30% 2
securities / T
0.23% Bills 0
Other current
20-Jan-09
20-Mar-09
20-May-08
20-Jul-08
20-Sep-08
20-Nov-08
assets and
equivalent
SECURE PLUS Secure Plus Pension

PENSION Fund
14.5
14
Corporate
NAV
securities
10.09% 13.5
15.50%
Government
13
securities / T
Bills
12.5 NAV
with banks
12
13.31% Other current 11.5

assets and
20-May-08
20-Nov-08
20-Jul-08
20-Sep-08
20-Mar-09
20-Jan-09
equivalent
NAME OF 52 WEEK 52 WEEK MEAN STANDARD
THE FUNDS HIGH LOW DEVIATION
BALANCER 28.0000 22.9800 25.3000 1.2400
PRESERVER 14.4196 13.0346 13.6600 0.4100
PROTECTOR 18.5504 16.3081 17.0900 0.7400
MULTIPLIER 9.1400 4.8600 6.6100 1.2500
MAXIMIZER 59.5500 31.2900 42.8500 8.1800
RICH 11.3700 6.5000 8.5500 1.4200
FLEXI GROWTH 13.0800 7.1500 9.5100 1.7200
FLEXI BALANCE 11.9000 8.6400 10.1300 0.8700
CASH PLUS 14.6868 12.8793 13.5000 0.5900
SECURE PLUS 14.4900 12.7300 13.3500 0.5900
INVEST SHIELD 15.3600 13.3100 14.4700 0.4500
RGF 11.1441 10.0932 10.5100 0.2400
PENSION 26.3600 21.6400 24.0500 1.0800
BALANCER
PENSION 59.6600 30.7800 42.6100 8.4300

MAXIMIZER
PENSION 10.2000 5.4000 7.3400 1.4200

MULTIPLIER
PENSION 14.3582 12.9664 13.6000 0.4200

PRESERVER
PENSION 16.6696 14.7084 15.3900 0.6500

PROTECTOR
PENSION FLEXI 12.5000 9.1100 10.6500 0.8800

BALANCE
PENSION FLEXI 12.9200 6.9100 9.2100 1.7200

GROWTH
PENSION 11.3300 6.4000 8.4300 1.4200

RICH
SECURE PLUS 14.2525 12.4800 13.1200 0.6000

PENSION
NAME OF PERFORMANCE ANNUALIZED ANNUALIZED
THE FUNDS (3 YEARS RETURN RETURN
ANNUALIZED) (1 YEAR) (SINCE
INCEPTION)
BALANCER 5.95% -13.91% 13.96%
PRESERVER 9.16% 10.20% 7.65%
PROTECTOR 9.00% 8.97% 8.60%
MULTIPLIER N/A -39.89% -26.65%
MAXIMIZER -1.51% -43.09% 20.90%
RICH N/A N/A -14.26%
FLEXI GROWTH N/A -43.11% -4.02%
FLEXI BALANCE N/A -23.43% 1.73%
CASH PLUS 9.74% 9.66% 6.97%
SECURE PLUS 9.51% 9.42% 6.73%
INVEST SHIELD 8.01% -7.54% 10.26%
RGF N/A N/A N/A
PENSION 6.47% -11.12% 14.28%
BALANCER
PENSION -1.83% -44.43% 22.43%

MAXIMIZER
PENSION N/A N/A -25.82%

MULTIPLIER
PENSION 9.16% 10.17% 7.55%

PRESERVER
PENSION 9.06% 9.12% 7.62%

PROTECTOR
PENSION N/A -23.02% 4.03%

FLEXI BALANCE
PENSION N/A -44.78% -5.57%

FLEXI GROWTH
PENSION N/A N/A -14.99%

RICH
SECURE PLUS 9.74% 10.17% 6.72%

PENSION
SUMMARY AND FINDINGS
The survey reveals that the most preferred investment vehicle in West
Bengal is Fixed Deposits, with Life Insurance ranking 2nd in the order
among 5 choices (Annex – Table 1). In the current market only 57%
people are with their Life Insurance Policies. That means 43% markets are
still to cover. Now as far as the ULIP market is concerned, 67% insurance
investors are with Unit Linked Insurance Plans (ULIPs) and 61% of the
untapped market prefers to take it (Annex – Table 2). Although the
market is inflated with ULIP but only 31% investors are aware of the
features of ULIP, which is a matter of concern. Based on the opinion of the
31% respondents, the 1st preference for ULIP features is for switching
option followed by choice of investment and cover continuance (Annex –
Table 3). Now when the question of factors which lead the investors to
invest in ULIP arises, the 1st preference goes for market condition followed
by profitability, liquidity etc (Annex – Table 4).
ANNEX – TABLE 1
Savings Avenue Preference among Respondents
Savings Avenue WMV Rank
Bonds 3.38 3
Mutual Fund 2.06 4
Fixed Deposit 3.93 1
Stocks 2.02 5
Life Insurance 3.61 2
ANNEX – TABLE 2
Plan Preference among Life Insurance Investors

Plan WMV Rank
Non – ULIP 1.16 2
ULIP 1.27 1
ANNEX – TABLE 3
Features Preference among ULIP Investors

Features WMV Rank
Choice of Investment 3.73 2
Switching Options 3.83 1
Settlement Options 2.16 4
Cover Continuance 3.16 3
Riders 2.12 5
ANNEX –TABLE 4
Importance of Factors in ULIP Selection
Factors WMV Rank
Risk 1.8 5
Liquidity 3.55 3
Profitability 3.57 2
Company‘s Name 2.4 4
Market Condition 3.68 1
COMPARISON OF INVESTMENT SCHEMES
SCHEME RETURN SAFETY VOLATILITY
CONVENIENCE
BALANCER MODERATE MODERATE LOW

LOW
MAXIMIZER HIGH LOW HIGH

MODERATE
MULTIPLIER HIGH LOW HIGH

MODERATE
PRESERVER MODERATE HIGH LOW

LOW
PROTECTOR MODERATE HIGH MODERATE

LOW
FLEXI GROWTH HIGH LOW HIGH

MODERATE
FLEXI MODERATE MODERATE MODERATE

BALANCE LOW
CASH PLUS MODERATE HIGH MODERATE

LOW
INVEST SHIELD MODERATE HIGH MODERATE

LOW
SECURE PLUS MODERATE HIGH MODERATE

LOW
RICH HIGH LOW HIGH

MODERATE
RGF MODERATE HIGH LOW

LOW
PENSION MODERATE HIGH MODERATE
BALANCER LOW
PENSION HIGH LOW HIGH

MAXIMIZER MODERATE
PENSION HIGH LOW HIGH

MULTIPLIER MODERATE
PENSION MODERATE HIGH LOW

PRESERVER LOW
PENSION MODERATE HIGH MODERATE

PROTECTOR LOW
PENSION FLEXI MODERATE MODERATE MODERATE

BALANCE LOW
PENSION FLEXI HIGH LOW HIGH

GROWTH MODERATE
PENSION RICH HIGH LOW HIGH

MODERATE
SECURE PLUS MODERATE HIGH MODERATE

PENSION LOW
RECOMMENDATION
1. During the course of the research it was found that the

respondents are more inclined towards unit-linked plan
because they are becoming more aware of the market
condition. However, they need good knowledgeable advisors
who can look after their fund properly.
2. Less participation of women is seen in getting a policy is it

traditional or unit linked. So the company needs to make
efforts to initiate women into policies.
3. The research has shown that married people are more open
towards policies. This particular segment therefore has to be
targeted and tapped accordingly.
4. The research has shown that people are not willing to save. It
means that they are not aware about the benefits of savings.
So, the company must take initiative to motivate people
towards saving.
5. Less people are aware of the features of ULIP which is a

matter of concern. So, the advisors should be supplied with
better materials by which they can convey them the right and
required message.
6. As per the company‘s report, as the ULIP market has been

highly influenced by the current market situation the investors
should invest their first premium in funds with moderate
return and low volatility like Balancer, Preserver, Protector etc,
or Return Guaranteed Fund (where the first premium is
guaranteed with nominal rate of interest)
ANNEXTURE
(FOR INVESTORS)
PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPS) IN THE DISTRICTS
OF WEST BENGAL
Name:
Address:
1. Age:
15-30 Years 31-45 Years 45-60 Years
Above 60 Years
2. Gender:
Male Female
3. Marital Status:
Married Unmarried Divorced Widow(er)

4. Your approximate annual income:
< 1.5 lacs 1.5 lacs – 3 lacs 3 lacs – 5 lacs > 5 lacs
5. What proportion of your annual income do you save?
< 15 % 15 % - 30 % > 30 %
6. Rate the following investment options in order of your preference in the
scale of 1 – 5
(1-lowest, 2-low, 3-moderate, 4-high, 5-highest).
Bonds Mutual Fund Fixed Deposit
Stocks Life Insurance
7. Rank the factors that you consider while making an investment in the
scale of 1 – 5
(1-minimum, 2-less minimum, 3-average, 4-less maximum, 5-maximum).
Risk Liquidity Profitability
Company’s name Market condition
8. Do you have any life insurance policy?
Yes No
9. Which plan have you taken so far?
Non-ULIPs ULIPs
10. If you do not have any insurance plan, which plan would you prefer to
take?
Non-ULIPs ULIPs
11. If you are choosing non-ulips, which company comes in your mind?
ICICI Bajaj Allianz
Kotak Mahindra LICI
HDFC Others (please specify): ___________
12. If you are choosing ULIPs which company comes in your mind?
ICICI Bajaj Allianz
Kotak Mahindra LICI
HDFC Others (please specify): __________
13. Are you aware of all the features available under ULIPs?
Yes No
14. Rank the features available under ULIPs in the scale of 1-5
(1-least likely, 2-less likely, 3-moderate, 4-more likely, 5-most

likely)
Choice of investment Switching options Settlement option
Cover Continuance Option Additional Protection with Riders
15. What factors lead you to prefer ULIPs to Non-ULIPs?
Transparency Fund options High risk
High return others (please specify):__________________________
Date: ________________________
Signature
Thank you for your kind cooperation.
(FOR ADVISORS)
PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPS) IN THE DISTRICTS
OF WEST BENGAL
Name:
Address:
Advisor Code:
1. Total years in job
<5years 5years-10years >10years
2. Which company are you working for?
ICICI Bajaj Allianz

HDFC Kotak Mahindra
LICI Others (please specify):___________
3. Did you work for any other company?
Yes No
If yes then please specify the name of the company:________________
4. Have you under went all the training provided by your company?
Yes No
If no then please specify the reason:______________________________________
5. What plan(s) have you sold so far?
Non-ULIPs ULIPs Both
6. Which plan have you sold the most?(For those whose answer in Q no. 5 =
Both)
Non-ULIPs ULIPs
7. How do you approach your customers?
Direct Through Telephone Through Internet

Others (please specify):_______________________________________
8. How long do you take to issue a policy after meeting a customer?
<5 days 5-10 days >10 days
9. Do you think ULIPs are more demanding than Non-ULIPs?
Yes No
10. What according to you lead the ULIP investors to prefer ULIPs to Non-
ULIPs?
Transparency Fund options

High risk High return
Others (please specify):_________________________________
11. Rank the factors that you consider while making an investment in ULIPs
in the scale of 1-5 (1-minimum, 2-less minimum, 3-average, 4-less
maximum, 5-maximum)
Risk Market condition Liquidity Profitability
Company’s name
Date: _____________________
Signature
Thank you for your kind cooperation.
(FOR COMPANIES)
PROSPECT OF UNIT LINKED INSURANCE PLANS (ULIPs) IN THE DISTRICTS
OF WEST BENGAL AND FUND ANALYSIS UNDER ULIPs
NAME OF THE ORGANIZATION:
OFFICIAL ADDRESS:
1. How long is your organization in the business of insurance?
< 10 years 10 – 20 years > 20 years
2. What plan(s) of insurance do you deal in?
ULIPs Non-ULIPs Both
3. Which plan has the maximum market coverage under your organization?
ULIPs Non-ULIPs
4. Do you think that the ULIPs have been affected by the current market
scenario?
Yes No
If yes then please specify the reason: ____________________________________
5. Rank the features available under ULIPs in the scale of 1-5.

(1-least likely, 2-less likely, 3-moderate, 4-more likely, 5 most likely)
Choice of investment Switching options Settlement options
Cover continuance options Additional protection with riders
6. How do you communicate with your customers?
Direct Advisors
Others (Please specify :_________________)
7. Do you provide all the training to your advisors in regular intervals?
Yes No
If No please specify the reason :________________________________________
8. What services do you provide to your customers?
A. Periodic statement
B. Updates of NAV
C. Updates of growth funds
D. Collection of premium
E. Immediate settlement of claims
Only A A,B A,B,C A,B,C,D

All
9. Do you do the need analysis of the customers before giving them the right
choice?
Yes No
10. What is the minimum annual premium available under ULIP in your
organization?
Rs. 8000 Rs.10000 Rs.12000 Rs.15000

Others: ______________
11. Do you have any product under ULIP which has 100% allocation?
Yes No
If yes then please specify the name of the product: _______________________
12. What is the growth of your organization in the districts of west Bengal in
terms of ULIPs?
Least Low Moderate High

Highest
Date: _____________________
Signature
Thank you for your kind cooperation
REFERENCES:
Annual Report - ICICI Prudential life insurance co ltd.
Ensure- an ICICI Prudential life insurance co publication.
Product manual of different company‘s product
Different Companies‘ Brochures.
JOURNALS
Insurance Watch
Insurance Chronicle
Websites
www.iciciprulife.com
www.iciciprupartner.com
www.google.com
www.irdaindia.com
www.wikipedia.com
www.outlook.com
www.rediff.com

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“PROSPECT OF UNIT LINKED

INSURANCE PLANS (ULIPs)

IN THE DISTRICTS OF WEST

BENGAL AND FUND ANALYSIS

1|Page Srikanta Kundu

“PROSPECT OF UNIT LINKED INSURANCE PLANS

(ULIPs) IN THE DISTRICTS OF WEST BENGAL AND

FUND ANALYSIS UNDER ULIPs

ICICI Prudential Life Insurance Company Ltd.

2|Page Srikanta Kundu

“PROSPECT OF UNIT LINKED INSURANCE PLANS

“THE REPORT IS SUBMITTED AS PARTIAL

ICICI Prudential Life Insurance Company Ltd.

DATE OF SUBMISSION: 19TH MAY, 2009.

3|Page Srikanta Kundu

Surpassing milestones towards a mission sometimes gives us such degree

4|Page Srikanta Kundu

NEED FOR LIFE INSURANCE: 10

INSURANCE SECTOR IN INDIA: 11

UNIT LINKED INSURANCE PLANs (ULIPs) 26

WORKING OF AN ULIP PLAN: 31

PORTFOLIO DETAILS AND NAV PERFORMANCE 43

SUMMARY AND FINDINGS 58

COMPARISON OF INVESTMENT SCHEMES 61

5|Page Srikanta Kundu

But presently, according to the insurance company executives, buyers

This project is related to analyze the financial literacy of ULIP investors

6|Page Srikanta Kundu

To accomplish my project objectives I prepared three questionnaires

7|Page Srikanta Kundu

8|Page Srikanta Kundu

Life insurance is a guarantee that your family will receive financial

In addition to serving as a protective cover, life insurance acts as a

9|Page Srikanta Kundu

Today, there is no shortage of investment options for a person to

Insurance sector in India is one of the booming sectors of the

ICICI Ltd., was established in 1955 by the World Bank, the

Prudential plc was founded in 1848. Since then it has grown to

ICICI Prudential Life Insurance Company Limited was incorporated

ICICI Prudential offers exciting career opportunities for people from

ICICI Prudential was a pioneer in offering life insurance solutions

The Group Business of ICICI Prudential has been in existence for

The Operations department oils the work processes between the

The Information Technology function at ICICI Prudential is

The Marketing function at ICICI Prudential covers an array of

Finance function in ICICI Prudential is committed to create an

The people strategy of ICICI Prudential is "To build a committed

Excellence the Business Excellence function is committed to building

As a life insurance company, we know that our customers trust their

Our investment management process relies on analytics & research

Debt investments target a mix of government and corporate bonds.

To ensure that we maintain a strict discipline in managing

ICICI Prudential‘s ultimate promise is financial security. A strong

ICICI Prudential is a case study in how advertising and marketing

We are committed to creating a performance driven culture through

 Training & Capability Development Programs:

The focus of our Training is to develop key competencies & skills

 Capability Development Programs (S&D):

The focus of our Capability Development Programs is to create a

 HR Policies & Procedures:

The PeopleSoft initiative P.A.C.E. is an enabler for our People

1. Getting more from call centers:

Call centers have become essential to the marketing and