IMT Nagpur PGDM 2009-2011 PROJECT REPORT On Customer Perception on Unit Linked Insurance Policies in India (BUSINESS RESEARCH METHODS) Submitted to PROF. P. BHARADWAJ Submitted by Section C Group 2 Nitin Sharma 2009147 Parth Agnihotri 2009138 Mukul Mathur 2009166 Padam Nabham Suresham Tiwari 2009173 Prashant Sharma 2009187 Submitted on
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IMT NagpurPGDM 2009-2011
PROJECT REPORTOn
Customer Perception on Unit Linked Insurance Policies in India
Customer Perception on Unit Linked Insurance Policies in Indiaii
Business Research Methods Project
TABLE OF CONTENTSAcknowledgement....................................................................................................................................... ii
List of Figures...............................................................................................................................................v
List of Tables................................................................................................................................................v
Research objectives.....................................................................................................................................1
Current status in india.................................................................................................................................2
What is “ULIP”?...........................................................................................................................................2
Working of ULIP...........................................................................................................................................2
Charges Under ULIP.....................................................................................................................................3
Top Up charges........................................................................................................................................4
Types of ULIP...............................................................................................................................................4
Benefits of ULIP...........................................................................................................................................5
Relevance of the study................................................................................................................................6
Possible assumptions/ Hypotheses that can be tested through the proposed research.............................6
Targeted Group For Research Study............................................................................................................7
Research Methodology................................................................................................................................7
Secondary Data collection.....................................................................................................................10
Primary data collection..........................................................................................................................10
Data analysis..............................................................................................................................................11
Conclusion and summary..........................................................................................................................11
Customer Perception on Unit Linked Insurance Policies in Indiaiii
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Limitation of Study....................................................................................................................................11
Scope for future.........................................................................................................................................11
Top Up...................................................................................................................................................13
RIDERS Riders are additional or supplementary benefits that are bought along with a main life insurance
plan. Some of the commonly offered riders are critical illness benefit rider, accident & disability
benefit rider, waiver of premium rider etc. For example, in case you opt for a Critical illness rider
you get additional protection from 9 critical illnesses.
SWITCHING FUNDS ULIPs not only allow you to invest your money in fund options with various debts – equity
exposure but also give you the option to switch between different funds. For example, you can
switch money from a fund with 100% equity to a balanced portfolio, which has 60 per
cent equity and 40 per cent debt.
TOP UP It is additional investment over & above the regular premium by an individual.
SALES BENEFIT ILLUSTRATION A sales benefit illustration illustrates various charges, year by year, for the term of the plan so
that you know exactly how much money is deducted as charges & what is invested.
IRDA The Insurance Regulatory and Development Authority (IRDA) is a national agency of the
Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known
as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements.
Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate,
promote and ensure orderly growth of the insurance industry and for matters connected therewith
or incidental thereto."
SPSS
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SPSS (originally, Statistical Package for the Social Sciences) was released in its first version in
1968 after being developed by Norman H. Nie and C. Hadlai Hull. SPSS is a computer program
used for statistical analysis. It is used by market researchers, health researchers, survey
companies, government, education researchers, marketing organizations and others. It contains
measures for descriptive and bivariate statistics, prediction for numerical outcomes, prediction
for identifying groups and various other operations.
IDIIDI stands for In Depth Interview. An in-depth interview is an open-ended, discovery-oriented
method that is well suited for describing both program processes and outcomes from the
perspective of the target audience or key stakeholder.
FGDFGD stands for Focused Group Discussion. A focus group is a form of qualitative research in
which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards
a product, service, concept, advertisement, idea, or packaging.[1] Questions are asked in an
interactive group setting where participants are free to talk with other group members.
GDPGross domestic product (GDP) or gross domestic income (GDI) is a basic measure of a country's
overall economic output. It is the market value of all final goods and services made within the
borders of a country in a year. It is often positively correlated with the standard of living, though
its use as a stand-in for measuring the standard of living has come under increasing criticism and
many countries are actively exploring alternative measures to GDP for that purpose.
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APPENDIX 3
Following is the Questionnaire used for collecting the Primary data for Project analysis. The survey has been conducted online and hosted on the Google survey.
QUESTIONNAIRE
1) Have you ever invested in ULIP (please choose one)?
a) Yesb) No
Note: - If No, please move to Q3.
2) For how many years are you investing in ULIP (please choose one)
a) Doesn’t invest anymore, invested in past.b) Investing for last 5 years.c) Investing for last 10 years.d) Investing for last 15 years.e) Investing for more than 15 years.
3) What are your perception regarding the ULIP (please choose one)
a) ULIPs are waste of money, too risky for investment. b) ULIPs are for good option for Tax saving purpose.c) ULIPs are good option for Health insurance.d) ULIPs are safe and good option for wealth management.e) Both (b) and (c).f) Both (b) and (d).g) Both (c) and (d).h) Options (b), (c), (d) and (e).i) Other _______________________________________________________________
4) Please tick the purpose with which you might/you have selected ULIP as investment option (multiple options can be selected).
a) Tax saving Purposeb) Health insurance Purposec) Both (a) and (b)d) Retirement Planning Purpose e) Wealth growth Purposef) Children Educationg) Options (a), (b) and (e)
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5) Please rate the factors according to your choice (0-100) which you have/ might consider while choosing the ULIP as investment option.
a) Transparency of processes.b) Liquidity of funds.c) Flexibility of fund switching.d) Tax benefits from investment.e) Low risk in comparison to mutual fund.f) Returned earned.g) Performance of past schemes.h) Rating of ULIP by agencies.i) Recommendations of friends and relatives.j) Company brand value.k) Recommendation of agents.l) Others _______________________________________________________________
6) Please rate the knowledge level with respect to ULIP services provided by Insurance companies in India.
Very Low-----------------------------------------------------------------------------------Very High 0 10 20 30 40 50 60 70 80 90 100
7) Please mark the what types of ULIPs you are aware of (multiple options can be selected)
a) Type I b) Type IIc) Single premiumd) Regular premium plane) Guarantee plansf) Non guarantee plansg) Life Stage basedh) Non-life Stage based
8) Please tick against the type of charges charged by companies associated with the ULIP that you are aware of (multiple options can be selected)
a) Policy administration chargesb) Premium allocation chargesc) Mortality charges d) Fund management chargese) Rider chargesf) Switching chargesg) Top Up chargesh) Surrender charges
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If Q1 answer is no, please ignore Q9, Q10, Q11, Q12 and Q13 and continue with Q14
9) Please rate the frequency of premium payment (0 – 100) of currently available ULIP which suits you.
a) One timeb) Monthlyc) Quarterlyd) Half yearlye) Yearlyf) Once in 2 yearg) Once in 3 yearh) More than 3 year
10) Please rate the mode of payment( 0 - 100 ) according to your use
a) Insurance offices.b) Credit card.c) Net banking.d) Cheques deposits.e) Office collection.f) Banks.g) Auto pay facility.h) Authorized agents.i) Authorized internet sites.
11) Please rate your satisfaction level with the current ULIP
12) Please rate your satisfaction level with the ULIP plans based on following services provided by the insurance companies.(alerts and updates are through SMS, email and phone calls)
Very dissatisfactory
dissatisfactory
Neither satisfactory nor dissatisfactory
Satisfactory
Very satisfactory
Flexibility of fund switchingProviding fund switching alerts Portfolio managementFlexibility in modes of premium payment
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Providing premium payment alertsCustomer service at insurance officesCustomer call center servicesFund value updates
13) Please rate the reasons for satisfaction/dissatisfaction with ULIP (Please make sure the total of rating comes out to be 100)
a) Rate of return.b) Flexibility of fund switching.c) Proper guidance for management of funds.d) Various modes for payments of premium.e) Customer service.f) Transparency in various processes.
14) Please rate the following services (0 - 100) which you would like to see in future ULIPs
a) Flexible premium amount payment option.b) E-mobile payment option.c) Daily funds value alerts.d) Flexibility in deciding fund allocation to equity and debt.e) Allow more number of fund switching.f) 24x7 customer support.g) 15 days premium option.
15) Please mark the probable time period in future when you would like to go for the ULIP as investment option (please choose one).
a) Not decided.b) Within 1 month.c) 1 - 6 months.d) 6 - 12 months.e) 12 - 18 months.f) More than 18 months.g) Won’t invest in future.
If (a) or (g) is chosen, Please ignore Q16 and Q17, proceed with Q18.
16) Please mark the tenure (in years) for which you would like to invest in ULIPs.
a) 3b) 3 - 6c) 6 - 9.d) 9 - 12
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e) 12 - 15f) 15 – 20
17) Please mark the probable amount you would like to investment in ULIP in coming future (all figures are in INR and annually) (Please choose one)
a) 20,000 b) 20,000-50,000c) 50,000-100,000d) 100,000-200,000e) 200,000-500,000f) More than 500,000
Please let us know a little more about you.
18) Your age group (please choose one)
a) Less than 20 yearsb) 21-25 c) 26-30d) 30-35e) 36-40f) 41-45g) 45-50h) Over 51
19) Your monthly household income (rupees/month) (please choose one)
a) Less than 10,000 b) 10,001 to 20,000 c) 20,001 to 30,000 d) 30,001 to 40,000 e) 40,001 to 50,000f) 50,001 to 60,000g) 60,001 to 70,000h) 70,001 to 80,000i) 80,001 to 90,000j) 90,001 to 100,000 k) Over 100,000
20) Your Gender (please choose one)
a) Maleb) Female
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