Damodar Das

A PROJECT REPORT

ONCOMPARATIVE ANALYSIS OF VARIOUS

PRODUCTS OFFERED BY ING LIFE INSURANCE

SUBMITTED IN PARTIAL FULLFILMENT FOR THE AWARD OF DEGREE OF MASTERS OF BUSINESS

ADMINISTRATION

SubmittedTto:- Submitted by:- Dr.Pankaj Gupta Damodar Das MBA Part-II

APEX INSTITUTE OF MANAGEMENT & SCIENCEJAIPUR

( 2012-2013)

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ACKNOWLEDGEMENT

Completion of project report is a milestone in the life of every management

student. It reflects the success of management education and enhances the self

confidence. Definitely, it is the outcome of invaluable aggregate contribution of

multiple efforts from all the directions-implicitly or explicitly.

The completion of this project has left me indebted to many people and I have the

opportunity to express my deep sense of gratitude to those people without whose

help my project report would have been incomplete.

I am sincerely thankful to my college H.O.D. Mrs. Jyotsana Khandelwal for giving

me chance to get such an experience and an industrial experience.

I feel personally thankful to my project guide and our MBA coordinator for his

guidance during my project.

I would also like to thank Mr. Shatrughan Singh, designated as G.S.M. at ING life

insurance, for his help and cooperation throughout my project.

I sincerely acknowledge them for extending their valuable guidance, support for

literature, critical reviews of project and the report and above all the moral support

they had provided to me with all stages of this project.

Damodar Das

PREFACE2

It is well evident that work experience is an indispensable part of every

professional course. In the same manner practical training in any organization is

a must for every individual who is undergoing course.

Without practical experience one cannot oneself as qualified potential, capable

manager.

Hence to fulfill requirement, I undertook 20 days Research training in “ING LIFE INSURANCE” at Jaipur.

I sincerely believe that there is no better place to learn the practical size of

management studies than the industry itself.

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INDEX

Contents Pg No.

Executive Summary1.1 Objective of the study

1.2 Research Methodology

1.3 Expected Contribution from the Study

1.4 Limitation of the Research

1.5 Conclusion

Introduction 2.1 General introduction about the Industry.

2.2 Background the Study

2.3 Statement of the Problem

2.4 Need and Importance of the Study

2.5 Objectives of the Research

Company Profile3.1 Company Objectives

3.2 Vision and Mission

3.3 Company Hierarchy

3.4 Product Portfolio

3.5 Operational policy of KYC at ING

Review of Literature4.1 Purpose

4.2 Methodology

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Research Methodology5.1 Statement of the problem

5.2 Objective of the study

5.3 Types of Research

5.4 Sampling Techniques

5.5 Sample Size

5.6 Instrumentation Techniques

5.7 Actual collection of Data

5.8 Other Software & Tools used for Data Analysis

5.9 Chapter Scheme

Data Analysis and InterpretationComparative Analysis with different insurance products of different

companies

Data Analysis and Interpretation

Summary of Findings7.1 Based on Analysis

7.2 SWOT Analysis

Suggestions and Recommendations

Conclusion

Annexure

Bibliography

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EXECUTIVE SUMMARY:

The project titled "Comparative analysis of various products offered by ING” is a

study of the project undertaken in the ING Life Insurance Pvt. Ltd. The report

covers a detailed study of the ING group, its history, the businesses it has

ventured into and its organizational structure. The report also deals with an in-

depth study of the Insurance industry in India. The industry profile helps to gain

an insight into the evolution of the industry and competitive dynamics prevalent in

the market. It discusses the significant developments in the industry and analyzes

the key trends and issues. The profile provides inputs in strategic business

planning of industry professionals. The various sections of industry profile have

been discussed below:

Industry Snapshot: This section gives a holistic overview of the industry. It starts with defining the

market and goes on to give historical and current market size figures. It also

clearly illustrates the major segments of the market which would be discussed

later on in the detailed report.

Industry Analysis:It involves a comprehensive analysis of the industry and its market segments.

This section discusses the key developments that have taken place in the

industry. It also identifies and analyzes the driving factors and challenges of the

industry. A description of the regulatory structure tells us about the major

regulatory bodies, laws and government policies.

Competitor Assessment:This section compares the major competitors in the industry. The Competitors At-

a-Glance is aimed at giving an overview of the competitive landscape in the

industry. Investment sector in India has seen a lot of changes in past few years

with multinational companies coming into the country, bringing in their

professional expertise in managing funds worldwide. In the past few years there

has been a paradigm shift going on in the investment industry in India. Now

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investors have a wide range of Schemes to choose from depending on their

individual profiles.

This study gives an overview of ING & their products – types, benefits, risks,

limitations, history, latest trends, global scenarios and various operational and

marketing policies relating to the customer which includes-KYC,IRDA norms of

KYC, customer identification, KYC policy: important points, policy taken &

operations at ING, future plans for KYC and conclusion.

Project covers the analysis of various types of products offered in the field of

Insurance sector by ING. Through the report it can also be studied how the

Customer Identification Process is being performed. The KYC policy includes the

following things:

1. KYC Process

2. Guidelines on KYC Norms and Cash Transaction by RBI

3. Guidelines for New Account

4. Procedures for existing customers

5. ING policy on Know your customer

The analysis of various products include responses from various clients under

different income slabs and comparison on the basis of risk, return and time

preference of customers, for these purpose charts and tables has drawn with the

data collected through questionnaire.

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1.1 OBJECTIVE OF THE STUDY:The core objectives of this project is to highlight the importance of an

investment in financial products-

1. To provide an insight about the profits of investing in various schemes,

2. To help an investor balance his risk and return by investing in these schemes.

3. To present a comparative analysis of various products available at ING for the

purpose of investment and the operational policy of KYC in ING.

1.2 RESEARCH METHODOLOGY:In this project report two types of data used are as follows:

1. Primary data

2. Secondary data

This study depends on the secondary data collected through the ING and the

feedback collected through meeting with clients. Analysis has been done with the

help of following:

1. A table has been drawn with relevant statistics.

2. Each table has been analyzed with a bar chart or a pie chart.

3. Finding has been reported at the end of project.

4. Data has been presented in both qualitative as well as quantitative form.

1.3 EXPECTED CONTRIBUTION FROM THE STUDY:

A basic need of planning investments sounds quite simple, but does an investor

really plan as how he is going to manage his funds as investments that maximize

their value that he holds today. The amount invested by him should first remain

safe. Investments is not speculation or gambling rather it is an intelligent move of

postponement of present consumption of funds with an objective of having an

increased amount in hand available on a future date for consumption.

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The core purpose of this project is to assess the various financial products

offered by ING its functioning, relative worth of each scheme and the risk & return

associated with it.

1.4 LIMITATION OF THE RESEARCH: The study was restricted to Jaipur city.

The sample size is limited to 100.

Time is one of the constraints since the time frame of the study lasted for one and

a half months.

1.5 CONCLUSION:The project undertaken in the ING Life Insurance was a good learning

experience and it has imparted to researcher a useful insight into the insurance

sector. It enhanced his knowledge to a great extent and it really helped

researcher in gaining information about the functioning of the various Department

of the ING Vesya Life Insurance.

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2.1 GENERAL INTRODUCTION ABOUT THE INDUSTRY:

INTRODUCTIONThe Insurance sector in India 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. With such a large population and the

untapped market area of this population Insurance happens to be a very big

opportunity in India. Today it stands as a business growing at the rate of 15-20

per cent annually. Together with banking services, it adds about 7 per cent to the

country’s GDP .In spite of all this growth the statistics of the penetration of the

insurance in the country is very poor. Nearly 80% of Indian populations are

without Life insurance cover and the Health insurance. This is an indicator that

growth potential for the insurance sector is immense in India. It was due to this

immense growth that the regulations were introduced in the insurance sector and

in continuation “Malhotra Committee” was constituted by the government in 1993

to examine the various aspects of the industry. The key element of the reform

process was Participation of overseas insurance companies with 26% capital.

Creating a more efficient and competitive financial system suitable for the

requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The

competition LIC started facing from these companies were threatening to the

existence of LIC .since the liberalization of the industry the insurance industry has

never looked back and today stand as the one of the most competitive and

exploring industry in India. The entry of the private players and the increased use

of the new distribution are in the limelight today. The use of new distribution

techniques and the IT tools has increased the scope of the industry in the longer

run.

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HISTORY OF INSURANCE SECTOR:The business of life insurance in India in its existing form started in the year 1818

with the establishment of the Oriental Life Insurance Company in Calcutta. Some

of the important milestones in the life insurance business in India are given in the

table 1

Table 1: milestone’s in the life insurance business in India

Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business

1928 The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses

1938 Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz.

LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of

India.

The General insurance business in India, on the other hand, can trace its roots to

the Triton Insurance Company Ltd., the first general insurance company

established in the year 1850 in Calcutta by the British.

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

given below in Table 1

Year Milestones in the general insurance business in India

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1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business

1957 General Insurance Council, a wing of the Insurance Association of India, frames

a code of conduct for ensuring fair conduct and sound business practices

1968 The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies’ viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.

Insurance Market- Present: [Since 2001]The insurance sector was opened up for private participation four years ago. For

years now, the private players are active in the liberalized environment. The

insurance market have witnessed dynamic changes which includes presence of a

fairly large number of insurers both life and non-life segment. Most of the private

insurance companies have formed joint venture partnering well recognized

foreign players across the globe.

There are now 29 insurance companies operating in the Indian market – 14

private life insurers, nine private non-life insurers and six public sector

companies. With many more joint ventures in the offing, the insurance industry in

India today stands at a crossroads as competition intensifies and companies

prepare survival strategies in a detariffed scenario.

There is pressure from both within the country and outside on the Government to

increase the foreign direct investment (FDI) limit from the current 26% to 49%,

which would help JV partners to bring in funds for expansion.

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There are opportunities in the pensions sector where regulations are being

framed. Less than 10 % of Indians above the age of 60 receive pensions. The

IRDA has issued the first license for a standalone health company in the country

as many more players wait to enter. The health insurance sector has tremendous

growth potential, and as it matures and new players enter, product innovation and

enhancement will increase. The deepening of the health database over time will

also allow players to develop and price products for larger segments of society.

State Insurers Continue to Dominate There may be room for many more players

in a large underinsured market like India with a population of over one billion. But

the reality is that the intense competition in the last five years has made it difficult

for new entrants to keep pace with the leaders and thereby failing to make any

impact in the market.

Also as the private sector controls over 26.18% of the life insurance market and

over 26.53% of the non-life market, the public sector companies still call the

shots.

The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a

share of 74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers – New India Assurance, National

Insurance, Oriental Insurance and United India Insurance – had a combined

market share of 73.47% as of October 2005. ICICI Prudential Life Insurance

Company continues to lead the private sector with a 7.26% market share in terms

of fresh premium, whereas ICICI Lombard General Insurance Company is the

leader among the private non-life players with a 8.11% market share. ICICI

Lombard has focused on growing the market for general insurance products and

increasing penetration within existing customers through product innovation and

distribution.

The industry now deals with customers who know what they want and when, and

are more demanding in terms of better service and speedier responses. With the

industry all set to move to a detariffed regime by 2007, there has been a

considerable improvement in customer service levels, product innovation and

newer standards of underwriting.

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Intense Competition in a de-tariffed environment, competition will manifest itself in

prices, products, underwriting criteria, innovative sales methods and

creditworthiness. Insurance companies will vie with each other to capture market

share through better pricing and client segmentation.

The battle has so far been fought in the big urban cities, but in the next few years,

increased competition will drive insurers to rural and semi-urban markets.

Global Standards While the world is eyeing India for growth and expansion;

Indian companies are becoming increasingly world class. Take the case of LIC,

which has set its sight on becoming a major global player following an Rs280-

crore investment from the Indian government. The company now operates in

Mauritius, Fiji, the UK, Sri Lanka, and Nepal and will soon start operations in

Saudi Arabia. It also plans to venture into the African and Asia-Pacific regions in

2006.

The year 2005 was a testing phase for the general insurance industry with a

series of catastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have

successfully managed to tide over the crisis without any adverse impact on their

balance sheets.

Some Areas of Future Growth:

Life Insurance

The traditional life insurance business for the LIC has been a little more than a

savings policy. Term life (where the insurance company pays a predetermined

amount if the policyholder dies within a given time but it pays nothing if the

policyholder does not die) has accounted for less than 2% of the insurance

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premium of the LIC (Mitra and Nayak, 2001). For the new life insurance

companies, term life policies would be the main line of business.

Health Insurance

Health insurance expenditure in India is roughly 6% of GDP, much higher than

most other countries with the same level of economic development. Of that, 4.7%

is private and the rest is public. What is even more striking is that 4.5% are out of

pocket expenditure (Berman, 1996). There has been an almost total failure of the

public health care system in India. This creates an opportunity for the new

insurance companies.

Thus, private insurance companies will be able to sell health insurance to a vast

number of families who would like to have health care cover but do not have it.

Pension

The pension system in India is in its infancy. There are generally three forms of

plans: provident funds, gratuities and pension funds. Most of the pension

schemes are confined to government employees (and some large companies).

The vast majority of workers are in the informal sector. As a result, most workers

do not have any retirement benefits to fall back on after retirement. Total assets

of all the pension plans in India amount to less than USD 40 billion.

Therefore, there is a huge scope for the development of pension funds in India.

The finance minister of India has repeatedly asserted that a Latin American style

reform of the privatized pension system in India would be welcome (Roy, 1997).

Given all the pros and cons, it is not clear whether such a wholesale privatization

would really benefit India or not (Sinha, 2000).

MARKET SHARE OF INDIAN INSURANCE INDUSTRY

The introduction of private players in the industry has added value to the industry.

The initiatives taken by the private players are very competitive and have given

immense competition to the on time monopoly of the market LIC. Since the

advent of the private players in the market the industry has seen new and

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innovative steps taken by the players in this sector. The new players have

improved the service quality of the insurance. As a result LIC down the years

have seen the declining phase in its career. The market share was distributed

among the private players. Though LIC still holds the 75% of the insurance sector

but the upcoming natures of these private players are enough to give more

competition to LIC in the near future. LIC market share has creased from 95%

(2002-03) to 81 %( 2004-05).

TABLE NO: 3 NAME OF THE LIFE INSURANCE COMPANY AND THE SHARE HOLDING PATTEN Name of the company Nature of Holding

Allianz Bajaj Life Insurance Co Private

Aviva Life Insurance Private

Birla Sun Life Insurance Co Private

HDFC Standard Life Insurance Co Private

ICICI Prudential Life Insurance Co Private

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ING Vysya Life Insurance Co. Private

Life Insurance Corporation of India Public

Max New York Life Insurance Co. Private

MetLife Insurance Co. Private

Om Kotak Mahindra Life Insurance Private

Reliance insurance Private

SBI Life Insurance Co Private

TATA- AIG Life Insurance Company Private

Indian Insurance Market

The Indian insurance market in spite of having a history covering almost two

centuries took a turn after the establishment of the Life insurance Corporation in

India in 1956. From being an open competitive market to being nationalized and

then back to a liberalized market again, the insurance sector has witnessed all

aspects of contest.

The Indian insurance market conventionally focused around life insurance until

recently, a various range of other insurance policies covering sectors like

medical, automobile, health and other classes falling under general insurance

came up, generally provided by the private companies. The life insurance of India

added 7% to the GDP of the economy in 2009, an immense growth since 1999,

when the gates were opened for the private company in the market.

Policy Change in the Indian Insurance market

The Insurance Regulatory Development Act, 1999 (IRDA Act) allowed the entry

of private companies in the insurance sector, which was so far the sole

prerogative of the public sector insurance companies. The act was passed to

protect the concerns of holders of insurance policy and also to govern and check

the growth of the insurance sector. This new act allowed the private insurance

companies to function in India under the following circumstances:

The company should be established and registered under the 1956 company Act

The company should only the serve the purpose of life or general insurance or

reinsurance business The minimum paid up equity capital for serving the purpose

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of reinsurance business has been decreed at Rs 200 crores The minimum paid

up equity capital for serving the purpose of reinsurance business has been

decreed at Rs 100 crores The average holdings of equity shares by a foreign

company or its subsidiaries or nominees should not go above 26% paid up equity

capital of the Indian Insurance company.

List of Life Insurance companies in India till 2012:

1. Life Insurance Corporation of India

2. MetLife India Life Insurance

3. ICICI Prudential

4. Bajaj Allianz Life Insurance

5. Max New York Life Insurance

6. Sahara Life Insurance

7. TATA AIG Life Insurance

8. HDFC Standard Life

9. Birla Sunlife

10. SBI Life Insurance Company Limited

11. Kotak Life Insurance

12. Aviva Life Insurance

13. Reliance Life Insurance Company Limited – Formerly known as AMP Sanmar

LIC

14. ING Life Insurance

15. Shriram Life Insurance

16. Bharti AXA Life Insurance Co Ltd

17. Future Generali Life Insurance Co Ltd

18. IDBI Fortis Life Insurance

19. AEGON Religare Life Insurance 1

20. DLF Pramerica Life Insurance

21. Canara HSBC Oriental Bank of Commerce Life Insurance

22. Star Union Dai-ichi Life Insurance Co. Ltd.

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23. India First Life Insurance Company

24. Edelweiss Tokio Life Insurance

2.2 BACKGROUND OF THE STUDY:

InvestmentConcept of Investment: Investment is the employment of funds with the aim of generating additional

income or growth in value. It involves the commitment of resources which have

been saved or put away from current consumption in the hope that some benefit

will occur in the future.

Investment is putting money into something with the expectation of profit. More

specifically, investment is the commitment of money or capital to the purchase of

financial instruments or other assets so as to gain profitable returns in the form of

interest, dividends, or appreciation of the value of the instrument capital gains. It

is related to saving or deferring consumption. Investment is involved in many

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areas of the economy, such as business management and finance no matter for

households, firms, or governments. An investment involves the choice by an

individual or an organization, such as a pension fund, after some analysis or

thought, to place or lend money in a vehicle, instrument or asset, such as

property, commodity, stock, bond, financial derivatives (e.g. futures or options), or

the foreign asset denominated in foreign currency, that has certain level of risk

and provides the possibility of generating returns over a period of time.

Investment comes with the risk of the loss of the principal sum. The investment

that has not been thoroughly analyzed can be highly risky with respect to the

investment owner because the possibility of losing money is not within the

owner's control. The difference between speculation and investment can be

subtle. It depends on the investment owner's mind whether the purpose is for

lending the resource to someone else for economic purpose or not.

In the case of investment, rather than store the good produced or its money

equivalent, the investor chooses to use that good either to create a durable

consumer or producer good, or to lend the original saved good to another in

exchange for either interest or a share of the profits. In terms of financial assets,

these are often marketable securities such as a company stock (an equity

investment) or bonds (a debt investment). At times, the goal of the investment is

to produce future cash flows, while at others it may be for the purpose of gaining

access to more assets by establishing control or influence over the operation of a

second company (the investee).

Business firms or organizations raise funds from investors in the form of equities

and debts (collectively known as the capital structure) and further reinvest it into

various investment schemes by carefully analyzing the returns in order to meet

out their obligations relating to purchase of assets which provides them long term

benefits.

In finance

In finance, investment is the commitment of funds by buying securities or other

monetary or paper (financial) assets in the money markets or capital markets, or

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in fairly liquid real assets, such as gold or collectibles. Valuation is the method for

assessing whether a potential investment is worth its price. Returns on

investments will follow the risk-return spectrum.

Types of financial investments include shares, other equity investment, and

bonds (including bonds denominated in foreign currencies). These financial

assets are then expected to provide income or positive future cash flows, and

may increase or decrease in value yielding the investor capital gains or losses.

Investments are often made indirectly through intermediaries, such as banks,

mutual funds, pension funds, insurance companies, collective investment

schemes, and investment clubs. Though their legal and procedural details differ,

an intermediary generally makes an investment using money from many

individuals, each of whom receives a claim on the intermediary.

Within personal finance, money used to purchase shares, put in a collective

investment scheme or used to buy any asset where there is an element of capital

risk is deemed an investment. Saving within personal finance refers to money put

aside, normally on a regular basis. This distinction is important, as investment risk

can cause a capital loss when an investment is sold, unlike saving(s) where the

more limited risk is cash devaluing due to inflation.

In many instances the terms saving and investment are used interchangeably,

which confuses this distinction. For example many deposit accounts are labeled

as investment accounts by banks for marketing purposes. Whether an asset is a

saving(s) or an investment depends on where the money is invested: if it is cash

then it is savings, if its value can fluctuate then it is investment. So people invest

in various financial products as well as saving schemes and in insurance sector

according to their needs,time horizon, level of risk and the return potential of the

particular product.

Concept of InsuranceInsurance is a type of financial arrangement that helps individuals, businesses

and other organizations protect themselves against unexpected or unpredictable

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losses or expenses. Insurance can protect against a variety of losses or damage

such as personal injury and property damage.

It is related to the protection of economic value of assets.

Mechanism of insurance business is based on people with similar risk coming

together and sharing the loss.

It protects the economic value of an Asset thereby helping the individual to

overcome an unexpected loss of income or drain of saving.

Function:Insurance companies sell insurance policies that protect people from losses

associated with specific unplanned events. If the unplanned events covered by

the insurance policy occur, the insurance company will pay the person with the

insurance policy a certain amount of money as set out in the rules of the plan. For

instance, If one could purchase an insurance policy for damages to his home and

the insurance company pay for damages if the home was affected by a fire or

other events covered by the plan.

Types:Based on Today’s life style the list of types of insurance is increasing day by day.

The main types of insurance policies available in the market are:

1) Life Insurance: In this policy, the insurance company pays in case of the

demise of the policy holder or at the time of the maturity of the policy. Now a day

a new policy has been launched by LIC in which you will be covered under the

insurance policy even after the maturity of the policy

2) Property Insurance: This insurance helps you to prevent the losses against

theft, fire, burglary or any natural calamity like Earthquake, Floods etc. based on

the points mentioned in the policy.

3) Health Insurance: Health Insurance consists of a package of various types of

insurance related to health. For example Medical Insurance is one the major part

of health insurance however in most of the cases, dental issues are not covered

in this policy so there is another Dental Insurance policy which covers dental

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problems and is also a part of health insurance. The subcategory of health

insurance also involves the injuries or accident at workplace insurance benefits.

4) Auto Insurance: Any financial loss due to accident of a vehicle is covered

under the auto insurance policy. Sometimes the expenses on the medicines for

treating injuries and all other medical expenditure are also covered under this

policy.

5) Travel Insurance: Loss of personal belongings while traveling, medical

coverage, delays in the travel are all part of the travel insurance policy.

6) Insurance at Amusement Points: This is a one of the new kinds of insurance

policy (not very popular in India) where in you are insured against the equipments

that you are using at the amusement joints. For example: if you are using boats

for an independent boat ride , then they will charge you with some extra money

for an property loss(say $5) and in case of any property damage you will not be

liable to pay any amount required to repair the damaged property.

7) Credit Insurance: This type of insurance pays the loans of the policy holder in

case of any accident of the policy holder or job loss or death.

Third Party Insurance: This type of insurance covers damages caused by you

(first party) to others (third party). For more details visit third party insurance.

Apart from these above mentioned insurance policies there are many other types

of insurance policies in the market (and the list keeps on increasing) that are

more or less related to these policies however providing benefits to the policy

holders in a different and unique way.

Insurance is basically divided into two categories as:

TYPES OF INSURANCE(A) Life Insurance

Term Life Insurance

Permanent Life Insurance

(B) General Insurance

Fire Insurance

Marine Insurance

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Accident Insurance

(A)Life InsuranceLife Insurance is a contract providing for payment of a sum of money to the

person assured or, following him to the person entitled to receive the same, on

the happening of a certain event. It is a good method to protect your family

financially, in case of death, by providing funds for the loss of income.

A1. Term Life Insurance: Under a Term Life contract, the insurance company

pays a specific lump sum to the designated beneficiary in case of the death of the

insured. These policies are usually for 5, 10, 15, 20 or 30 years.

Term life insurance are the most popular in advance countries but were not so

popular in India. However, after the entry of the private operators and

aggressive marketing by few players this kind of policies are becoming popular.

The premium on such type of policies is comparatively quite low when compared

with other types of life insurance policies, mainly due to the fact that these

policies do not carry cash value.

Plus of Term Life Insurance- The premium payable on these policies is low as they do not carry any cash

value.

- One can afford for quite high value insurance policies

Minus of Term Life Insurance - If one survives the period of the policy, he / she does not get any money at the

end of the policy.

The premium on such policies keeps on increasing with age mainly because the

risk of death of older people is more. Over the page of 60, these policies become

difficult to afford.

A2. Permanent Life Insurance: In a Permanent Life contract, a portion of the money paid as premiums is

invested in a fund that earns interest on a tax-deferred basis. Thus, over a period

of time, this policy will accumulate certain "cash value" which you will be able to

get back either during the period of the policy or at the end of the policy.

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Your need for life insurance can change over a lifetime. At any age, you should

consider your individual circumstances and the standard of living you wish to

maintain for your dependents. In most cases, you need life insurance only if

someone depends on you for support. Your life insurance premium is based on

the type of insurance you buy, the amount you buy and your chance of death

while the policy is in effect. This type of policy not only provides protection for

your dependents by paying a death benefit to your designated beneficiary upon

your death, but it also allows you to use some part of the money while you are

alive or at the end of the policy. Some examples of such policies are: - Whole

Life, Universal Life and Variable-Universal Life.

Endowment Policy:These policies provide for period payment of premiums and a lump sum amount

either in the event of death of the insured or on the date of expiry of the policy,

whichever occurs earlier.

Money Back Policy:These policies provide for periodic payments of partial survival benefits during the

term of the policy itself. A unique feature associated with this type of policies is

that in the event of death of the insured during the policy term, the designated

beneficiary will get the full sum assured without deducting any of the survival

benefit amounts, which have already been paid as money-back components.

Moreover, the bonus on such policies is also calculated on the full sum assured.

Annuity/Pension Policy/Funds:This policies / funds require the insured to pay the premium as a single lump sum

or through installments paid over a certain number of years. The insured in

return will receive back a specific sum periodically from a specified date onwards

(the returns can be monthly, half yearly or annually), either for life or for a fixed

number of years. In case of the death of the insured, or after the fixed annuity

25

period expires for annuity payments, the invested annuity fund is refunded,

usually with some additional amounts as per the terms of the policy.

Annuities / Pension funds are different from all other forms of life insurance as an

annuity policy / fund does not provide any life insurance cover but merely offers a

guaranteed income either for life or a certain period. Therefore, this type of

insurance is taken so as to get income after the retirement.

(B) General Insurance:

General Insurance includes those insurance policies which are not covered under

life insurance. General insurance provides protection against risk of loss to assets

like home, motor vehicle, etc. Common general insurance plans include motor

insurance, fire insurance, personal accident insurance, health insurance, marine

insurance etc. The most popular general insurance plans are mentioned

hereunder:

B1. Fire Insurance:Fire insurance provides protection against damage to property caused by

accidents due to fire, lightening or explosion, whereby the explosion is caused by

boilers not being used for industrial purposes. Fire insurance also includes

damage caused due to other perils like strom tempest or flood; burst pipes;

earthquake; aircraft; riot, civil commotion; malicious damage; explosion; impact.

B2.Marine Insurance:Marine insurance basically covers three risk areas, namely, hull, cargo and

freight. The risks which these areas are exposed to are collectively known as

"Perils of the Sea". These perils include theft, fire, collision etc. Marine insurance

further includes:

Marine Cargo Marine cargo policy provides protection to the goods loaded on a

ship against all perils between the departure and arrival warehouse. Therefore,

26

marine cargo covers carriage of goods by sea as well as transportation of goods

by land.

Marine Hull Marine hull policy provides protection against damage to ship caused

due to the perils of the sea. Marine hull policy covers three-fourth of the liability of

the hull owner (ship-owner) against loss due to collisions at sea. The remaining

1/4th of the liability is looked after by associations formed by ship-owners for the

purpose (P and I clubs).

B3.Miscellenous:As per the Insurance Act, all types of general insurance other than fire and

marine insurance are covered under miscellaneous insurance. Some of the

examples of general insurance are motor insurance, theft insurance, health

insurance, personal accident insurance, money insurance, engineering insurance

etc.

2.3 STATEMENT OF THE PROBLEM: Investment sector in India has seen a lot of changes in past few years with

multinational companies coming into the country, bringing in their professional

expertise in managing funds worldwide. In the past few years there has been a

paradigm shift going on in the investment industry in India. Now investors have a

wide range of Schemes to choose from depending on their individual profiles.

Since Investment alternatives are many in number it is very difficult for the

investors to choose the right type of investment. It is also difficult for them to

choose the investment which gives more returns with low risk. Investment

alternatives are negotiable financial securities & non-negotiable financial

investments and insurance products. The market plans offers high returns with

high risk whereas guaranteed return plans or traditional plans offers the fixed

return with assurance.

2.4 NEED & IMPORTANCE OF THE STUDY:The basic need for the study is to understand the basic concepts of insurance

sector and the perception and investment pattern of respondents. Their

perception towards ING in Jaipur and its performance in the market. This is done

27

to know consumers preference and needs and try to bring about the product

which may give satisfaction to the consumers. It is done to know the overall merit

and demerit of the product to give suggestions to improve the product. This study

gives an overview of ING & there products – types, benefits, risks, history, latest

trends, global scenarios and various operational policies relating to the customer

which includes-Products of ING,KYC,IRDA norms of KYC, customer

identification, KYC policy: important points, policy taken & operations at ING,

future plans for KYC and customers perception about the various plans available

in the market.

2.5 OBJECTIVE OF THE RESEARCH:i.To identify various investment alternatives in insurance sector.

ii.To compare the strength & weakness of different investment opportunity

iii.To understand investors Preference in investment alternatives.

iv.What characteristics of the investment product had influenced investors to make the

investment in particular investment

v.To assess the various products of ING.

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COMPANY PROFILE : ING- Company Profile:

ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB

Postbank Group. During the past years ING has become a multinational with

diverse international activities.

The roots of ING can be traced to the insurers De Nationale Levensverzekering

Bank and De Nederlanden van 1845 and to the public bank services such as De

Rijkspostspaarbank and De Postcheque- and Girodienst, as well as to the

Nederlandsche Middenstands Bank. These are the legal predecessors of the

29

‘founding fathers’ of ING: Nationale-Nederlanden and NMB Post bank Group.

The founding of ING as one company was started in 1990 when the legal

restrictions on mergers between insurers and banks were lifted in the

Netherlands. This prompted insurance company Nationale-Nederlanden and

banking company NMB Post bank Group to enter into negotiations. The merger

into Internationale Nederlanden Group took place in 1991. The market soon

abbreviated the name to I-N-G. The company followed suit by changing the

statutory name to ING Groep N.V. Since 1991, ING has developed from a Dutch

company with some international business to a multinational with Dutch roots.

This was achieved through a mixture of organic growth, such as the creation of

ING Direct from scratch, as well as various large acquisitions.

The first large acquisition took place in 1995, when ING took over Barings Bank.

This acquisition increased the brand recognition of ING around the world and

strengthened its wholesale banking presence in the emerging markets. And then

there was Life of Georgia. This insurance company was acquired by Nationale-

Nederlanden in 1979, resulting in a significant increase in activities in the US. Via

Life of Georgia, the activities in Asia expanded considerably. However in 2004,

ING as a group had become well-established in both regions and Life of Geogeria

was sold. Other acquisitions, such as the Belgian Bank Brussels Lambert,

strengthened the Group’s presence in the Benelux. In addition, the activities in de

United States were doubled as a result of organic growth and the acquisition of

Equitable of Iowa, ReliaStar, Aetna

financial services and merchant bank furman Selz.

Profile:ING has gained recognition for its integrated approach of banking, insurance and

asset management. Furthermore, the company differentiates itself from other

financial service providers by successfully establishing life insurance companies

in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland,

Mexico and Chile. Another specialization is ING Direct, an Internet and direct

marketing concept with which ING is rapidly winning retail market share in mature

30

markets. Finally, ING distinguishes itself internationally as a provider of

‘employee benefits’, i.e. arrangements of nonwage benefits, such as pension

plans for companies and their employees.

About ING Group:ING is a global financial institution of Dutch origin offering banking, insurance and

asset management to over 85 million private, corporate and institutional clients in

over 40 countries. With a diverse workforce of approximately 130,000 people,

ING is dedicated to setting the standard in helping their clients manage their

financial future.

About ING in India: ING operates through three businesses in India, ING Vysya Life Insurance, ING

Vysya Bank and ING Investment Management. ING Vysya Bank is a premier

private sector bank with over 76-year heritage and 1.5 million satisfied customers.

ING Investment Management believes in providing investors with the knowledge

& opportunity to manage their future easily.

ING Life India, in its 10th year of operations, is a part of the ING Group. ING Life

entered the private life insurance industry in India in September 2001. The

company has issued over 1 million policies and is staffed by over 6500

employees.

Headquartered in Bangalore, ING Life India is currently present in 229 cities

across 251 branch offices. In addition, the company distributes its products in

several parts of the country through its partner's presence.

ING Life India distributes its products through two channels, the Tied Agency

Force and the Alternate Channel. The Tied Agency force comprises over 50,000

ING Life Advisors, spread across the country. The Alternate Channels business

within ING Life India is a fast growing distribution channel, and includes the Banc

assurance partner (ING Vysya Bank), Referral Partners, Corporate Agents and

Brokers.

ING was established as a Naamloze Vennootschap (public limited liability

company) on March 4, 1991, through the merger of Nationale-Nederlanden,

which was the largest insurer in the Netherlands, and NMB Postbank Group,

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which was one of the largest banks in the Netherlands. ING Group N.V. is

incorporated under the laws of the Netherlands.

History of the ING Lion: ING’s orange lion goes way back to ING’s Dutch roots. Orange is the national

color of the Netherlands, and the lion the country’s national symbol. Several

founding ING companies, banks and insurers, had or still have the lion in their

logos.

Logos from our insurance history The original insurance companies, De

Nederlanden van 1845 and the Nationale Levensverzekering-Bank, both had

lions in their logos. For a long time De Nederlanden van 1845 used the Dutch

coat of arms. The Nationale had a logo depicting a virgin with a lion at her feet,

symbolizing the company’s courage in looking after its customers’ savings

deposits. The two companies merged and became Nationale-Nederlanden

The logo was very much a negotiating issue when NMB and Postbank merged,

and later on when NMB Postbank Group and Nationale-Nederlanden joined

forces but the lion has survived all mergers.

ING current logoThe orange lion adorns their global ING logo.

Business Divisions:

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ING is serving its services in three fields of areas which are as follows:

3.1 COMPANY OBJECTIVE: ING aims to deliver financial products and services in the way that their

customers want them delivered: with exemplary service and maximum

convenience at competitive prices.

.

3.2 ING – MISSION

Mission statement: To set the standard in helping their customers manage their

financial future.

ING- Tag Line:

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BANKINGINSURANCE

Shaping our future

ING LIFE INDIA-CURRENT SHAREHOLDING:

26% 50%

11.53% 12.47%ING PARTENERS IN INDIA:

1. Exide Industries Limited-is the market leader in both automotive and industrial

segments. ‘EXIDE’ and ‘SF’ (Standard Furukawa), the flagship brands of the

Company, which are the leading battery brands in the country.

2. Rajan Raheja the promoter of the group is ranked 30 th by Forbes among Indians

by New worth... His Net worth stands at: $2.15 billion.

3. Gujarat Abuja Cements Ltd.-the third largest cement company in India.

4. Enam Group-Enam Group is one of India’s leading financial service providers

reputed for its ability to perceive the true potential of businesses and enhance

34

their value. The culture at Enam Group is deeply rooted in ethics, innovation and

financial sobriety.

3.3 COMPANY HIERARCHY:ING -ORGANIZATION STRUCTURE IN INDIA

35

Kshitij Jain MD & CEO

Rahul AgarwalChief Distribution

B.AshwinChief Operating Officer

John BoersChief Financial

Uco VegterChief Marketing

Priya GDirector Human Resource

Organization Structure-Regional Level:

36

Rahul AgarwalChief Distribution

B.AshwinChief Operating Officer

John BoersChief Financial

Uco VegterChief Marketing

Priya GDirector Human Resource

Regional Vice President

Area Training Manager Area Managers

Branch Manager Agency Manager

Training Manager

3.4 PRODUCT PORTFOLIO:

Insurance Products of ING:ING Life Insurance aims to make customers look at life insurance afresh, not just

as a tax saving device but as a means to live life to the fullest. It believes in

enhancing the very quality of life, in addition to safeguarding an individual's

security.

37

Branch Coordinator

Customer Service Manager

BDE

Advisors

Advisors

The Company follows a “customer centric approach” while designing its life

insurance products. The ING Life product portfolio offers products that cater to

every financial requirement, at all life stages.

The various insurance plans of ING are as follows:

i.Children Plansa.ING Aashirvad

b.Creating Life Child Protection Plan

c.Creating Life Money Back Plan

ii.Protection Plansa.ING Term Life

b. ING Term Life Plus

iii.Savings Plansa.ING Secured Income Insurance Plans

- ING Secured Income Insurance Plus

- ING Secured Income Insurance RP

b.Reassuring Life Endowment Plan (Reversionary Bonus)

c.Safal Jeevan Endowment Plan

d. ING Creating Star Guaranteed Future

iv.Retirement Plansa. ING Immediate Annuity

v.Investment Plansa. ING Star Life

b. ING Prospering Life SP

c. ING Market Shield

d. ING Prospering Life

e. ING Uttam Jeevan - Regular Premium

f. ING Uttam Jeevan - Single Premium

g. Powering Life

h. New Fulfilling Life

vi.Riders

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a. Accidental Death Rider

b. Accidental Death, Disability and Dismemberment Rider

c. ING Term Life Rider

d. ING Critical Illness Rider

e. ING Critical Illness Limited Pay Rider

i.CHILDREN PLANS: ING Life launches its new design amongst child plans that will help revolutionize

their customers approach towards planning for their child's future.

The various children plans of ING are as follows:

a. ING Aashirvad: ING Aashirvad is a guaranteed child life insurance plan that

pays out monies and helps an investor to plan for the career and marriage of their

children. In this plan the parent and child are the life insured/s during the policy

term and once their child's future is adequately secured through the education

and marriage payouts, the benefit of long term insurance protection shifts to the

child during the extended policy term.

b. Creating Life Child Protection Plan: Creating Life Child Protection Plan ensures future of an investor’s child in case of

their untimely death. It also creates a financial asset for their child. It provides the

sum assured to their child immediately after their untimely death. On maturity, an

additional sum assured is paid with an accumulated compounded revisionary

bonus and a final additional bonus.

c. Creating Life Money Back Plan:The creating life child protection money back plan is a unique plan that fulfills

investors’ need for protection, saving, retirement and investment. It gives a

double benefit of a life cover along with periodic cash returns during the term of

the policy.

ii.PROTECTION PLAN: Protection Plans ensures that investors’ family continues to enjoy a comfortable

lifestyle even in their absence. It makes available a variety of plans to provide

39

them with the flexibility of choosing one that fits their needs the best. It recognizes

protection as the basic insurance need and has therefore kept its products

comprehensive and economical. The various protection plans of ING are as

follows:

a. ING Term Life Simplest and most economical form of term life insurance.Large sum assured at

highly affordable premium rates.

b. ING Term Life Plus Term insurance product with return of premium.Large sum assured at affordable

premium rates.

iii.SAVINGS PLAN: Saving Plans helps investors to achieve their life goals making cherished

moments for them and their family. They provide them with the flexibility to save

for their future requirements while continues improvement in their current lifestyle.

a. ING Secured Income Insurance Plans

ING Life Insurance brings to you a new class of endowment plans under the

bouquet “ING Secured Income Insurance Plans”. These plans are designed to

offer security to you and your family in the form of long term benefits, while

assuring your family a regular income if anything unfortunate were to happen.

Under this bouquet, you can choose from two plans:

- ING Secured Income Insurance Plus : A limited pay plan that offers life cover not only in lump sum but also as

income for family for 60 months. On maturity you get sum assured with 10%

guaranteed addition along with accrued bonuses, if any.

- ING Secured Income Insurance RP : A regular pay plan that offers life cover in lump sum and as income for family

40

for 60 months. It is available in two variants – base and economy.

b. Reassuring Life Endowment Plan (Reversionary Bonus): Savings plan with a

highly reliable safety net for investors’ family in case something happens to them.

c. Safal Jeevan Endowment Plan: Comprehensive protection and savings plan

with an in-built accident cover. Option to choose from a pre-packaged range of

fixed terms and premiums.

d. ING Creating Star Guaranteed Future: ING Assured Returns are possible from

this plan.

- The Guaranteed Interest Rate declared for the 2nd Policy year is 9%,

- The rate for a Delayed Payment Interest rate is 5.5%*.

* (including Account Administration Fees of 1.25%)

iv.RETIREMENT PLANS: Retirement Plans ensure that investors’ lead their life after retirement on their

own terms; doing things that they have always dreamt of. Company also believes

that it is important to be in control of retirement planning. Company’s innovative

features help them to choose their retirement age and also control the way their

investments are managed keeping in mind their retirement needs.

a. ING Immediate Annuity :A plan that gives investors’ guaranteed income throughout their retired life.

v.INVESTMENT PLANS: Investment Plans are created keeping investors’ need in mind. ING appreciates

the flexibility required to suit risk appetite and the commitments the investor may

want to make. ING’s global expertise in managing wealth for individuals at all

stages in their life ensure that the company has products to suit customers’

objective of investment.

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a. ING Star LifeING STAR Life, a unique life insurance plan that helps you enjoy assured tax free

returns on your hard earned savings. All you have to do is pay premium for 3

years and enjoy benefits in a 12 year period. ING STAR Life has unique

advantages: Get 9-10% Guaranteed Addition rate for 12 years. Pay for just 3 years Life Cover (5 or 10 times the annual premium) Assured tax free returns

b. ING Prospering Life SPING Prospering Life SP is a Single Premium Unit Linked Insurance Plan which

maximizes returns over the long term (10-years) by providing choice of 6

investment funds with just a single contribution.

c. ING Market ShieldING Market Shield not only provides life cover but also balances risk and reward

in a transparent manner and provides investors’ an opportunity to enjoy growth

while retaining protection. It is a Unit linked life insurance plan that ensures them

an opportunity to maximize gains and at the same time limits losses.

d. ING Prospering LifeAn excellent Unit Linked Life Insurance plan for wealth creation while enjoying

control over assets at all times.

e. ING Uttam Jeevan - Regular PremiumA long term investment tool with market linked returns and increasing Life Cover

to secure financial protection for the customer's family at every stage of life.

f. ING Uttam Jeevan - Single PremiumING Uttam Jeevan SP is a simple, easy to understand plan which fulfills

customer’s needs of investment and protection. It is a unique Single Premium unit

linked plan which can help them to strike their future worries in one shot.

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g. Powering Life Investment plan with high reversionary bonus. Premium payments for a short

period of time, life cover for a longer period and high maturity benefits

.

h. New fulfilling Life Plan Investment plan with double benefit of periodic cash returns during policy term

and maturity or death benefit.

vi.RIDERS:a. Accidental Death Rider

In case of death of the life assured, due to accident during the term of the

policy, the Sum Assured under this Rider is paid along with the Sum Assured

under the basic policy.

Definition of Accident: An event or series of events of violent, external and

visible nature causing bodily injury is defined as accident.

Accidental Death : Death, which results from bodily injury, occurs within 180

days from the date of injury resulting from an accident.

b. Accidental Death, Disability and Dismemberment Rider

Death Benefit: In case of death due to accident, the Sum Assured under this

Rider is payable along with the Sum Assured of the basic policy.

Definition of Accident: An event or series of events of violent, external and

visible nature causing bodily injury is defined as accident.

Total Permanent Disability: Resulting from an accident and occurring within

180 days of the date of accident and lasting for at least 180 consecutive

days. Completely and continuously preventing the Life Assured from

engaging in any occupation to earn any wages.

43

Definition of Loss: Physical severance or total irrevocable loss of use which

results from accident and occurs within 180 days from the date of the

accident.

Dismemberment of limbs occurring within 180 days of accident:

Physical severance of arm at or above wrist

Physical severance of leg at or above ankle

Physical severance of a thumb, an index finger, and at or above

metacarpophenageal joint

c. ING term Life RiderING Term Life Rider is an option to increase your life protection at a nominal

cost. In case of death of the life assured during the term of the policy, the

Sum Assured under this Rider is paid along with the Sum Assured under the

basic policy. It ensures that your family enjoys enhanced security and a

comfortable lifestyle – at a fraction of a cost.

d. ING Critical Illness Rider

ING Critical illness Rider is an add-on protection benefit that policy

holders can add to their new or existing traditional ING Life Insurance

policies. It pays a lump sum benefit in case the life assured is diagnosed

with major illness like Heart Attack, Cancer, Paralysis, Kidney failure,

Coma etc. This benefit payout ensures that family is not burdened with high

medical expenses, thereby allowing them to maintain their standard of

living

e. ING Critical Illness Limited Pay OrderING Critical illness Limited Pay Rider is an add-on protection benefit that

policy holders can add to their new or existing traditional ING Life Insurance

policies. It pays a lump sum benefit in case the life assured is diagnosed with

major illness like Heart Attack, Cancer, Paralysis, Kidney failure, Coma etc.

This benefit payout ensures that family is not burdened with high medical

expenses, thereby allowing them to maintain their standard of living. In this,

44

premium is to be paid for 5 years, while protection is ensured for 10 years.

Operational policy of KYC at ING:Know Your Customer (KYC)KYC is an acronym for “Know your Customer”, a term commonly used for

Customer Identification Process. The Prevention of Money Laundering Act, 2002

(“PMLA”) forms the core of the legal framework put in place by the Indian

Regulators to combat money Laundering to be followed by banking companies,

financial institutions and intermediaries by administering KYC process and other

reporting requirements such as suspicious transactions reporting, etc. SEBI has

prescribed certain requirements relating to KYC norms for Financial Institutions

and Financial Intermediaries (such as Mutual Funds) to ‘know’ their customers.

This would be in the form of verification of identity and address, providing

information of financial status, occupation and such other demographic

information. Applicant must be KYC compliant while investing with any SEBI

registered Mutual Fund.

Thus, with effect from February 01, 2008, all investors (Individuals or Non

Individuals) who wish to make an investment of Rs. 50,000 or above in a mutual

fund scheme will be required to complete the KYC process. This would also apply

to new Systematic Investment Plan (SIP) registrations on or after 01 February

2008, if each SIP installment is of value greater than or equal to Rs. 50,000. This

one-time verification is valid for transactions across all mutual funds.

45

The process for KYC is as follows:

1. A completed KYC application form along with the documents/information as

mentioned in point (3) below should be submitted to any point of service (POS).

2. A KYC application form is available at the investor service centers of the Fund

and CAMS or any designated ‘Points of Service’ (POS) of CSDL Ventures Ltd.

3. The documents required to be submitted along with the KYC application form are:

a) Recent Passport size photograph,

b) PAN card copy,

c) Address proof and

d) Detail of occupation and income. (The detailed list of documents/information

required and instructions to fill the form can be found in the KYC application

form).

4. After verification of the KYC application form and accompanying documents,

investors will receive a letter certifying their KYC compliance. There is no charge

for this verification.

5. When investing with the Fund, a copy of this letter should be attached to the

scheme’s application form to avoid rejection.

6. If you already have a Mutual Fund Identification Number (“MIN”) (not valid

anymore) and you have not provided PAN at the time of obtaining MIN, you are

requested to complete the PAN formalities mentioned above to be KYC –

compliant.

Guidelines on “Know Your Customer” norms and “Cash transactions” by RBI:As part of ‘Know Your Customer’ (KYC) principle, RBI has issued several

guidelines relating to identification of depositors and advised the banks and

companies to put in place systems and procedures to help control financial

frauds, identify money laundering and suspicious activities, and for

scrutiny/monitoring of large value cash transactions. Instructions have also been

issued by the RBI from time to time advising banks to be vigilant while opening

accounts for new customers’ it prevent misuse of the banking system for

46

perpetration of frauds. Taking into account recent developments, both domestic

and international, it has been decided to reiterate and consolidate the extent

instruction on KYC norms and cash transactions. The following guidelines

reinforce our earlier instructions on the subject with a view a to safeguarding

banks from being unwittingly used for the transfer or deposit of funds derived

from criminal activity (both in respect of deposit and borrower account) , or for

financing of terrorism. The guidelines are also applicable to foreign currency

accounts/transactions.

‘Know Your Customer’ (KYC) guidelines for New accounts:The following KYC guidelines will be applicable to all new accounts with

immediate effect.

1. KYC Policy:i. “Know Your Customer” (KYC) procedure should be the key principle for identification

of an individual/corporate opening an account. The customer identification should

entail verification through an introductory reference from an existing account

holder/a person knows to the bank or on the basis of documents provided by the

customer.

ii.The Board of Directors of the banks should have in place adequate policies that

establish procedures to verify the bona fide identification of individual/corporate

opening an account. The Board should also have in place policies that establish

processes and procedures to monitor transactions of suspicious nature in

accounts and have systems of conducting due diligence and reporting of such

transactions.

2. Customer Identification:The objectives of the KYC framework should be two fold,

a. To ensure appropriate customer identification and

b. To monitor transactions of a suspicious nature. Banks should obtain all

information necessary to establish the identity/legal existence of each new

customer, based preferably on disclosures by customers themselves. Typically

easy means of establishing identity would be documents such as passport,

47

driving license etc. However where such documents are not available verification

by existing account holders or introduction by a person known to the bank may

suffice. It should be ensured that the procedure adopted does not lad to denial of

access to the general public for banking services.

In this connection, company also invite a reference to Report on Anti Money

Laundering Guidelines for Banks in India prepared by a Working Group has made

several recommendations for strengthening KYC norms with anti money

laundering focus and has also suggested formats for customer profile, account

opening procedures, establishing relationship with specific categories of

customers, as well as an illustrative list of suspicious activities.

“Know Your Customer” procedures for existing customers:Banks and Companies are expected to have adopted due diligence and

appropriate KYC norms at the time of opening of accounts in respect of existing

customers in terms of our extant Instructions referred to in the Annexure.

However, in case of any omission, the requisite KYC procedures for customer

identification should be got completed at the earliest.

ING’S Policy on Know Your Customer:INTRODUCTION: “Know your Customer” (KYC) is a set of guidelines aimed at preventing banks

from being used intentionally or unintentionally by criminal elements for

committing financial frauds, transferring or deposits of funds derived from criminal

activity or for financing terrorism. This policy document is a consolidation of

various guidelines issued by Reserve Bank as also our Bank for proper

identification of an account holder/customer and for scrutiny/ monitoring of large

value cash transaction or transaction of a suspicious nature. This KYC policy is

48

applied to the whole group of ING (with minor required changes) which includes

its three business divisions of Banking, Insurance and Asset management.

OBJECTIVES OF KYC POLICY1. To lay down explicit criteria for acceptance of customers.

2. To establish procedures to verify the bona-fide identification of individuals/non

individuals for opening of account.

3. To establish processes and procedures to monitor high value transactions and /

or transactions of suspicious nature in accounts.

4. To develop measures for conducting due diligence in respect of customers and

reporting of such transactions.

DEFINITION OF CUSTOMERFor the purpose of KYC policy, a “customer” will be defined as:

A person or entity or entity that maintains an account and/ or has a business

relationship with the Bank,

One on whose behalf the account is maintained (i.e. the beneficial owner),

Beneficiaries of transactions conducted by professional intermediaries such as

Stock as Brokers, Chartered Accountants, Solicitors etc. as permitted under the

law, and

Any person or entity connected with a financial transaction which can pose

significant reputation or other risks to the Bank, say a wire transfer or issue of a

high value demand drafts as a single transaction.

CUSTOMER ACCEPTANCEa. The bank will have an elaborate standard for

i.Obtaining comprehensive information regarding new customers at the initial stage

and that of existing customers over a predetermined period, thereby establishing

the bona fides of customers opening accounts with the Bank.

ii.For identifying high value transactions and transactions of a suspicious nature and

keeping a watch on such transactions as well as for reporting them to law

enforcing Regulatory authorities.

b. The Bank will lay down/ spell clearly the document requirements and other

information to be collected in respect of different categories of customers

49

depending on perceived risk and keeping in mind the guidelines issued by

Reserve Bank of India from time to time;

c. The Bank will ensure that a new account is not opened or an existing one is not

closed where the Bank is unable to apply due diligence measures i.e. unable to

verily the identity and/or obtain documents required as per the risk categorization

due to non cooperation of the customer or non-reliability of the data/information

furnished to the Bank. It will, however, have suitable built-in safeguards to avoid

harassment of the customer. For example, decision to close an account will be

taken at the level of controlling office after giving due notice to the customer

explaining the reasons for such a decision;

The Bank will ensure that circumstance in which a customer is permitted to act or

behalf of another person/ entity will be clearly spelt out in conformity with

established law and practice of banking as there could be occasions when an

account is operated by a mandate holder or where an account is opened by an

intermediary in the fiduciary capacity;

d. The bank will ensure that before opening an account there are adequate checks

to ensure that the identity of the customer does not match with any person with

known criminal back ground or with banned entities like individual terrorist or

terrorist organizations.

1. CUSTOMER IDENTIFICATIONIdentification is an act of establishing who a person is in the context of KYC it

means establishing who a person purports to be and will involve identifying the

customer and verifying his/ her identities by using reliable and independent

source documents, data or information. For this purpose the Bank will obtain

sufficient information necessary to establish to is satisfaction the identity of each

new customer, whether regular or occasional and the purpose of the intended

nature of banking relationship.

Accounts of IndividualsIn case of customers that are natural person the Bank will obtain sufficient

identification data to verify

a. The identity of customer

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b. His/her address/location and(c) his/her recent photograph. The true identity and

bona fides of the existing customers and new potential customers opening

accounts with the Bank and obtaining basic background information would be

paramount importance.

Other than individual accountsFor customers that are legal person or entities the Bank will….

a. Verify the legal status of the legal person/ entity through proper and relevant

documents,

b. Verify that any person purporting to act on behalf of the legal person/ entity is so

authorized and identify and verify the identity of that person.

2. VERIFICATION OF GENUINENESS OF ADDRESS:In all instances of opening of new accounts a letter of thanks will be sent by the

Bank by registered post at the recorded addresses to all customers and

introducers with dual purpose, thanking them for opening the account with the

Bank and for verification of genuineness of address furnished by the account

holder. Undelivered envelopes in this regard will be followed up closely at the

branch level. The Branch may also contact the customer at the telephone number

provided in the account opening form or other documents to verify the address

and other details.

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3. CUSTOMER PROFILE:For the purpose of exercising due diligence on individual transactions in

accounts, a ‘Customer Profile’ of individual account holders will be included in the

account opening forms. The customer profile will contain information relating to

the customers identity, social / financial status, nature of the business activity,

information about the customers clients’ business and their location etc. While

preparing the customer profile the Bank will take care to seek only such

information from the customer which is relevant for the purpose of risk

categorization and is not intrusive. The customer profile will be a confidential

document and the details contained therein will not be divulged for cross selling

or any other purpose.

The information will be of two types namely mandatory and optional as stated

below:

A. Mandatory Information:Occupation, Source of funds, Monthly Income, Annual turnover, Date of Birth Any

relative settled abroad, Dealings with other banks, Existing credit facilities ,

Assets (Approximate value)., Expected turnover.

B. Optional Information:Marital Status; Education Qualification; Educational Qualification of spouse;

Details regarding children; Information like- Owns a car/two wheeler, have credit

card etc.

4. OBTAINING INTRODUCTION:The Bank generally insists on introduction by a known person. Introduction is a

process of ascertaining the identity of a person and is acceptability for

establishing business relationship and verifying the true identity of the intending

customer before opening an account. When the Bank opens an account in the

name of a customer, it has to render a number of services, including collection of

cheques, in the ordinary course of business. It is, therefore, essential that the

Bank is aware of the credentials of the prospective customer such as his

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profession, business address etc. through proper introduction and verification of

antecedents of the account holder in each and every account.

5. IDENTIFICATION OF HIGH VALUE/SUSPICIOUS TRANSACTIONS/TERRORISM FINANCEOngoing monitoring is an essential element of effective KYC procedure. Bank can

effectively control and reduce its risk only if it has an understanding of the normal

and reasonable activity of the customer so that it has the means of identifying

transactions that fall outside the regular Pattern of activity.

6. MONITORING OF CASH TRANSACTION:The cash transactions will be monitored in the following manner:

a. The issuance of travelers cheques, demand drafts, mail transfers, and telegraphic

transfer for Rs.50000/- and above will be permitted only by debit to customers’

accounts or against cheques and not against cash. Further, the applicants

(whether customers or not) for the above transactions for amount exceeding Rs.

50000/-will be required to mention permanent (income tax) account number on

applications.

b. The transactions involving cash withdrawals and/ or cash deposits for Rs.10

laces and above in deposit, cash credit or overdraft accounts will be monitored

closely by the braches and record of details of such transactions will be kept in

Separate register.

Customer Identification ProcedureFeatures to be verified and documents that may be obtained from customers

Features DocumentsI. Accounts of individuals--Legal name and any other name used

-Correct permanent address

i. Passport ii. PAN/GIR number or Form 60 or 61(wherever applicable) iii. Voter’s

Identity Card iv. Driving License v. Identity card (subject to the bank’s

satisfaction) vi. Letter from recognized public authority or public servant verifying.

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The identity and residence of the customer to the satisfaction of bank

A. Telephone bill

B. Bank account statement

C. Letter from any recognized public authority

D. Electricity bill

E. Ration card

F. Letter of employer (subject to satisfaction of the bank any one document which

provides customer information to the satisfaction of the bank will suffice)

II. Accounts of Partnership FirmsLegal name, Address, Name of all partners and their addresses, Telephone

numbers of the firm and partners, Registration certificate, if required, Certificate

copy of Partnership Deed or Partnership Letter (Ca-1(iii)).

CONCLUSION:“Know Your Customer” (KYC) is a set of guidelines aimed at preventing banks

and other service companies from being used intentionally or unintentionally by

criminal elements for committing financial frauds, transferring or deposits of funds

derived from criminal activity or for financing terrorism.KYC norms are a very

important part for any banking companies, financial institutions and

intermediaries. ING VYASYA GROUP strictly follows the KYC guidelines for

account opening, or any kind of investment to prevent frauds and cheating by

their customers.ING use best of their efforts for the present money laundering.

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REVIEW OF LITERATURE:

Review of literature means the researcher presenting the view of all the previous

studies, articles published, book published, etc. The researcher would classify

this section into purpose, methodology and conclusion.

4.1 PURPOSE:The core purpose for the study is to understand the basic concepts of insurance

sector and the perception and investment pattern of respondents. Their

perception towards ING and its performance in the market. This project is done to

know consumers preference and needs and try to bring about the product which

may give satisfaction to the consumers. It is done to know the overall merit and

demerit of the product and to give suggestions to improve the product. Following

are the purpose to do a project in insurance sector:

To identify various investment alternatives in insurance sector.

To compare the strength & weakness of different investment opportunity

To understand investors Preference in investment alternatives.

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What characteristics of the investment product had influenced investors to make

the investment in particular investment?

4.2 METHODOLOGY: Methodology includes the various methods of data collection and interpretation

which are as follows:

Data SourcesIn this research the researcher have two kinds of data sources given below:

1) Primary Data: Questionnaire and Interview

2) Secondary Data: Web pages, Company Journal’s & Brochure

Data Collection Instruments:The instruments used for data collection is a Questionnaire which is been filled by

me through communication and interactive session with the customers during my

project period. Each questionnaire represents essence information about a

customer. So, a combination of Interview and Questionnaire as a data collection

is employed.

Non – Probability Sampling:Non Probability sampling is that sampling procedure which does not afford any

basis for estimating the probability that each item in the population has of being

included in the sample. It is also known as deliberate sampling, purposive

sampling and judgment sampling.

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RESEARCH METHODOLOGY:5.1 STATEMENT OF THE PROBLEM:This survey is conducted because company wants to analyze the data obtained

through personal meetings and questionnaire for the benefit of customers. This

project is done to know consumers preference & needs and try to bring about the

product which may give satisfaction to the consumers. It is done to know the

overall merit and demerit of the product and to give suggestions to improve the

product.

5.2 OBJECTIVE OF THE STUDY:The objective of the study is to identify various investment alternatives in

insurance sector and compare the strength & weakness of different investment

opportunity. To understand investors Preference in investment alternatives as

what characteristics of the investment product had influenced investors to make

the investment in particular investment and at last to present a comparative

analysis of various products available at ING for the purpose of investment.

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5.3 TYPES OF RESEARCH:

Primary Research Data:“Primary data may be described as those data that have been observed and

recorded by the researcher for the first time for their knowledge.”

Secondary Research Data:Secondary data are statistics not gathered for immediate study at hand what for

some other purposes.

5.4 SAMPLING TECHNIQUE:Non Probability sampling is that sampling procedure which does not afford any

basis for estimating the probability that each item in the population has of being

included in the sample. For this study convenience sampling method was

adopted.

5.5 SAMPLE SIZE:The sample size of the respondent consists of people with every field and in

different age group with different level of income and education background.

Sample Size: 100

5.6 INSTRUMENTATION TECHNIQUES:The instrument used for data collection is an interview schedule which was filled

by the researcher through communication and interactive session with the

customers during the project period. Each questionnaire solicits information about

a customer.

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5.7 ACTUAL COLLECTION OF DATA:1) Primary Data: Questionnaire and Interview

2) Secondary Data: Web pages, Company Journal’s & Brochures

5.8 OTHER SOFTWARE & TOOLS USED FOR DATA ANALYSIS:Tools used for analysis are as follows:

Tables

Charts

Bar diagrams

5.9CHAPTER SCHEME:1.1 Executive Summary: It explains the various aspects related to the project report. It summarizes the

industry snapshot, industry analysis competitor’s assessment, and objectives of

the study, research methodology, and expected contribution from the study,

limitation, and conclusion.

1.2 Introduction:This section deals with the various aspects related to the industry and

Background the Study, statement of the Problem, need and Importance of the

Study and objectives of the Research.

1.3 Company Profile:This section explains the various aspects related to the company and its

objectives, vision and mission, company hierarchy and product portfolio of

company.

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1.4 Review of Literature:The literature consists of the concepts and terms used as a background for the

purpose of preparing the project report i.e. concepts of investment, concepts of

insurance, Types of insurance

1.5 Research Methodology:This chapter explains the various tools & techniques used by the researcher

which are as follows:

Type of research, sampling techniques,sample size, instrumentation techniques,

actual collection of data, other software used for data Analysis.

1.6 Data analysis and interpretation:Data analysis and interpretation has been done with the help of various tables

with relevant statistics and questions were analyzed with the help of bar graphs

and pie charts.

1.7Summary of findings:This chapter is an abstract of the findings based on the analysis of the data &

feedback collected from the respondents during the project period. It also

consists of the SWOT analysis of the concerned firm.

1.8 Suggestions and Recommendations:This chapter deals with the suggestions and recommendations proposed by the

researcher to improve the products and enhance the level of customer

satisfaction.

1.9 Conclusion:

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The chapter conclusion deals with the basic knowledge which the researcher has

gained about the ING Vysya group, their marketing strategies and their expertise

in the insurance sector

DATA ANALYSIS & INTERPRETATION:The analysis of ING’s products consists of two types which are as follows:

1. Comparative analysis of various products of ING with products of different private

insurance companies.

2. Responses through questionnaire filled during the time of project in ING.

Comparative analysis of various products of ING with other Companies:ING has various insurance investment plans in their portfolio but for the purpose

of analysis researcher has selected only three plans of ING which consists of

Whole life plan, Pension plan and Unit Link Insurance Plan.

The comparison is based on the basis of benefits and risk associated with the

particular product of different insurance companies. The comparative analysis of

product is as follows:

Comparative Analysis of various products of ING:A) ING New Fulfilling Life: The New Fulfilling Life of ING Vysya Life Insurance plan

is a double benefit plan. It provides periodic cash return during the policy and

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maturity or death benefit after the policy. It assures full security of the family of

the insured person even after the death of the insured. It gives the family regular

cash returns during the life time

The features of New Fulfilling Life of ING Vysya Life Insurance plan are:The minimum entry age for this policy is 14 years.

The maximum entry age for this policy is 54 years.

The maximum maturity age for this policy is fixed at 85 years.

The premium payment terms can be chosen from 16, 20 and 24 years.

The premium payment options are annual, half yearly, quarterly or monthly.

The minimum premium payment amount for annual option is Rs 8,000.

The minimum premium payment amount for half yearly option is Rs 4,000.

The minimum premium payment amount for quarterly option is Rs 2,000.

The minimum premium payment amount for monthly option is Rs 750.

The special feature of this plan is that it gives 100% of the sum assured as

money back over the payment term.

The key benefits of New Fulfilling Life of ING Vysya Life Insurance plan are:This policy has regular cash back benefit, it also gives flexible premium payment

benefit, and it also has guaranteed maturity benefit.

Other benefits:Survival benefits: A certain percent of money is paid back on survival every

quarter of the premium paying term. The money can be reinvested elsewhere or

used to meet large expenses during one’s life time.

Maturity benefit: On survival to maturity i.e. after attaining 85 year of age investor

will receive100% of the sum assured plus bonus.

Death benefits:Investor pay premium for a limited period of their choice while they get risk

coverage up to the age of 85 years. In the event of unfortunate death their family

would receive 100% of the sum assured over and above the survival benefits

they would have receive till then plus bonus.

Risk

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a. The benefits under this plan will not be payable if death of life assured occurs due

to suicide within one year from the date of commencement of risk own within one

year from the date of reinstatement of a lapsed polices.

b. If investor is unable to pay their premium for some reason, then after 30 days of

due date the policy will lapse.

B) ING Market Shield: ING Market Shield not only provides life cover but also

balances risk and reward in a transparent manner and provides investors’ an

opportunity to enjoy growth while retaining protection. It is a Unit linked life

insurance plan which ensures that investors’ never miss an opportunity to

maximize their gains and at the same time limits their losses. Eligibility CriteriaAge at Entry Min 8 years - Max 55 years

Age at Maturity Min 23 years - Max 70 years

Policy Term 15 to 20 years

Premium Paying Term Limited Pay (5, 10 years) or Regular Pay (equal to Policy

Term)

Premium Payment Modes Annual

Minimum Premium for Limited Pay (5 years) the minimum yearly premium is`

48,000

For Limited Pay (10 years) or Regular Pay: ` 36,000

Maximum Premium No Limit

Top-up Premium Minimum of ` 5,000, Maximum of ` 800,000

Basic Sum assured 10 to 20 times the Annual Premium

Additional Sum Assured Fixed at 1.25 times of the Top-up premium paid (if any

Benefits:1. Optimizing upside potential due to Equity Participation

This plan provides investors’ with the growth potential that comes from investing

in shares that comprise Nifty 50 (NSE CNX S&P Nifty Index). ING Life on every

day basis will monitor the equity market development and increase allocation to

the equity market (up to a maximum of 60%) when times are good and will

reduce (up to 0%) allocation to equities when markets are volatile. This active

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daily asset allocation ensures that investors’ gains are maximized and at the

same time protecting such gains from eroding.

2. Anytime guarantee - Protection that is available to investors at all times and not

just at maturity Not only will this plan invest in equity and bring them gains from

the markets, it will also ensure that gains that are made are locked in with a

minimum 80% assurance. Every time the NAV of the Guaranteed NAV Fund hits

a new high, 80% of that NAV per unit is guaranteed (referred as Guaranteed NAV

or G-NAV). From there on, irrespective of the volatility in the market they are

assured of the G-NAV per unit at all times and not just at maturity. ING will reset

this G-NAV on a daily basis and once the G-NAV is set it can go up and never go

down. The below graph explains that in a rising market when the Daily NAV is

higher the customer gets the maturity benefits at the Daily NAV.

For example, if the Daily NAV on maturity is at 38 and the G-NAV is 30.4,

investors are still assured of receiving the maturity benefits at the Daily NAV of

38. ING manages the Guaranteed NAV fund through a dynamic asset allocation

process which ensures that guarantee is available to them at all times and all

benefits paid to them are at higher of the prevailing NAV (referred to as Daily

NAV) or the last Guaranteed NAV.

Comparative analysis of Reliance’s products:a. Reliance Market Return Plan: Investors always aspire for the best in life. And

company helps them to achieve just that. With Reliance Market Return plan they

can have the twin advantage of insurance protection as well as reaping the

benefits of investment growth. It is a flexible plan which works all through their life

and meets the changing requirements like additional protection, liquidity through

cash, option to invest in different asset class, steady golden years and many

more.

Key Features – Reliance Market Return Plan:

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· Twin benefit of market linked return and insurance protection

· A Unit Linked Plan, different form traditional Life Insurance products, with

maximum maturity age of 80 years

· Option to create customers’ own portfolio depending on their risk appetite

· Choose from 4 different investment funds

· Flexibility to switch between funds

· Option to pay regular as well as single premium & Top-ups

· Option to package with Accidental riders

· Flexibility to increase the Sum Assured

· Liquidity through partial withdrawals

Benefits:Life Cover Benefit: Customer can choose the basic Sum Assured within the

minimum and maximum levels mentioned below

Minimum Sum Assured: · Regular Premium: Annualized Premium for 5 years or for half the Policy term

· Single Premium: 125% of the single premium

Maximum Sum Assured: No Limit (Rs 500,000 for age up to 12 years)

In case of unfortunate loss of life, the beneficiary will get sum Assured or Unit

Account Value whichever is higher.

Maturity Benefit: On survival, at maturity the value of investors’ Unit Account will

be paid out.

Risk:Reliance Life Insurance will not be liable to pay any Accidental Death Benefit

Claim or Total and Permanent Disablement Claim which results directly or

indirectly from certain events.

Comparative analysis of HDFC’s products:

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a. HDFC- Unit Linked Wealth Maximiser: Unit linked Wealth Maximiser is a single

premium unit linked plan. The plan offers an investment and protection benefit.

This plan helps investors to meet their family needs in the future. It also offers

Loyalty Units which increases their fund value yearly.

Eligibility Age at Entry:Minimum 18 years Maximum 65 years

Minimum 18 years Maximum 55 years

Minimum Premium Payment: Rs1, 00,000/-

Term Limit: Is calculated 99 years less the entry age.

Benefits1. It invests in market funds and which provides a long term growth and is a

flexible to suit their needs.

2. Loyalty Units- An investor gets additional units every policy year end by 0.10%

as long as the policy is still active.

3. There are choices of 5 unit linked funds. Managers Fund, Mid-Cap Fund,

Large-Cap Fund, Bond Opportunities Fund and Money Plus Fund.

4. This plan has a cover till the age of 99 years.

5. There is a onetime premium payment when investors start the policy.

b. HDFC Unit Linked Pension Maximizer II: During the post retirement day’s

investors can earn a lot. It should be in the mind of every working individual that

spending is something that takes place throughout one’s life but earning is only

when one has the age and strength to do so. Hence while earning and spending

one should also know to save for the future after retirement when earning stops

and spending continues.

The best investment that one could ever think of is the unit linked pension

maximiser II plan. This plan offers the investors a chance to maximize their

investment returns and gives an addition of 10% of the initial premium at the time

of death or vesting.

The regular features of this plan include:

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A. A minimum term value of 10 years and a maximum of 40 years are allowed to the

policy holder. One can choose one’s own retirement date with this plan. There is

a wide range of choice of funds approximately seven choices to choose from.

B. The premium investment in a single payment initially is fifty thousand or more.

Eligibility age is 18 years for this plan and the maturity age is 65. On retirement

the minimum age is 50 and maximum 75 years.

Benefits:a. The benefits of the pension maximiser plan are unique

b. It is the best plan to choose to have a peaceful post retirement income even after

retirement.

c. At the end of the policy one can receive not only the value of the matured funds

but also bumper additions that can be used as pension income as long as

investors live.

d. Bumper additions for policies whose term are equal or greater than 15 years will

be paid on vesting or at the time of death. These additions will be given

according to the government regulations

e. One can avail 1/3 of the total benefit at vesting as a tax free lump sum and get

the rest converted to annuity either with HDFC or any insurance company of

one’s choice.

f. One can change the choice of investment funds by switching and moving the

accumulated funds from one plan to the other anytime.

g. One should be wise in making plans for the future. There should be no delay in

selecting the perfect golden years of retirement now while the going is good.

Earn and save today and enjoy tomorrow.

Comparative analysis of LIC’s products:A. Market Plus 1: is a unit linked pension scheme (ULIP). Policy holder can choose

the plan with or without risk cover. This investment plan is divided in four types of

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investment Funds namely Bond, Secured, Balanced and Growth Fund. Market

plus 1 is primarily a Pension policy and the plan has many attractive features and

options that make it an ideal Retirement solution for investors’ future.

Eligibility Conditions and Restrictions:For Basic Plan without Life Cover (Investment plan)a) Minimum Sum Assured: Nil

b) Maximum Sum Assured: Nil

c) Minimum Premium: Rs.5, 000 p.a. for Regular premium, thereafter in multiples

of Rs. 1,000

Rs. 1,000 p.m. for monthly (ECS), increasing thereafter in multiples of Rs. 250.

d) Maximum Premium: No Limit.

e) Minimum Entry Age: 18 years last birthday.

f) Maximum Entry Age: 74 years nearest birthday.

g) Minimum Deferment Team: 5 years.

Features:1. Option to pay one time premium

2. Critical illness benefit minimum Rs 50,000 and the maximum Rs 10 lakh

3. Accident benefits from Rs 25,000 up to a maximum of Rs 50 lakh.

4. Switch from one type of fund to another up to four times a year.

5. Premium top up.

6. Policy can be taken with or without risk cover.

7. Net Asset Value (NAV) declared on a daily basis.

Benefits:A) - On Vesting:

On vesting of the policy, the Fund Value will be utilized to provide a pension

based on the then prevailing Annuity rates. An option to commute up to one third

of the payable benefit in a lump sum is available.

B) On Death:

In event of the unfortunate death of the policy holder the Fund Value along with

the Riders, if any, will be payable in a lump sum or as a pension.

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B. LIC’s Pension Plus: is a unit linked deferred pension plan, which provides

investors a minimum guarantee on the gross premiums paid. The plan is without

any life cover. They have a choice of investing their premiums in one of the two

types of investment funds available. Premiums paid after deduction of allocation

charge will purchase units of the Fund type chosen. The Unit Fund is subject to

various charges and value of units may increase or decrease, depending on the

Net Asset Value (NAV).

1. Payment of Premiums: Investors may pay premiums regularly at yearly, half-

yearly or quarterly or monthly (through ECS mode only) intervals over the term

of the policy. Alternatively, a Single premium can be paid.

A grace period of 30 days will be allowed for payment of yearly or half-yearly or

quarterly premiums and 15 days for monthly (through ECS) premiums.

2. Eligibility Conditions and Other Restrictions:

a) Minimum Entry Age - 18 years (last birthday)

b) Maximum Entry Age - 75 years (nearest birthday)

c) Minimum Vesting Age - 40 years (completed)

d) Maximum Vesting Age - 85 years (nearest birthday)

e) Minimum Deferment Term - 10 years

f) Sum Assured - NIL

g) Minimum Premium -

Regular premium (other than monthly (ECS) mode): Rs. [15,000] p.a.

Regular premium (for monthly (ECS) mode): Rs. [1,500] p.m.

Single premium: Rs. [30,000]

h) Maximum Premium -

Regular premium: Rs. [1, 00,000] p.a.

Single premium: No Limit

Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than

ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.

3. Other Features:

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i) Guaranteed Maturity Proceeds: If all due premiums are paid till maturity, a

guaranteed interest shall accrue on the gross premium, including Top-up

premiums if any, at the end of each financial year. The guaranteed interest rate

shall be 50 basis points above the average of the reverse repo rate prevailing as

on the last working day of June, September, December and March of the

preceding year. However, the guaranteed interest rate shall be subject to a

maximum of 6% and a minimum of 3%. This guaranteed interest rate is not

applicable to a discontinued policy. The minimum guaranteed rate of 4.5% p.a. is

applicable to all premiums received up to 31st March, 2011, including any Top-up

premiums paid.

ii) Guarantee of interest rate on Discontinued Policy Fund: A guaranteed

minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy

Fund constituted by the fund value of all discontinued policies.

iii) Top-up (Additional Premium): Investors can pay additional premium in

multiples of Rs.1, 000 without any limit at anytime during the term of policy. Top-

up shall not be allowed during the last 5 years of the contract. In case of yearly,

half-yearly, quarterly or monthly (ECS) mode of premium payment such Top-up

can be paid only if all premiums have been paid under the policy.

iv)Switching: Investor can switch between the two fund types during the policy

term subject to switching charges, if any.

v) Partial Withdrawal: No partial withdrawal of units will be allowed under this

plan.

vi) Revival: If due premium is not paid within the days of grace, a notice shall be

sent to them within a period of fifteen days from the date of expiry of grace period

to exercise the option for revival within a period of thirty days of receipt of such

notice. If they exercise the option to revive the policy, then the arrears of premium

without interest shall be required to be paid.

4. Risk: Risks borne by the Policyholder: LIC’s Pension Plus is a Unit Linked Life

Insurance product which is different from the traditional insurance products and is

subject to the risk factors.

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The premium paid in Unit Linked Life Insurance policies are subject to investment

risks associated with capital markets and the NAVs of the units may go up or

down based on the performance of fund and factors influencing the capital market

and the insured is responsible for his/her decisions.

Comparative analysis of ICICI’s products:a. ICICI Pru Lifetime Pension Maxima is a regular premium, unit-linked pension

plan which offers investors the flexibility to invest in unit-linked funds that

generate potentially better returns over long term. This pension planning product

also offers investors a unique strategy that allows them to protect gains made

through their funds invested in the equity markets from any future equity market

volatility.

Features:Min PremiumRs.10, 000 p.a. for yearly mode

Rs.15, 000 p.a. for half yearly & monthly mode

Min / Max Age at Entry18 / 70 years

Min / Max Policy Term10 / 60 years, allowed only in multiple of 5 years

Min / Max Sum Assured0 / As per the Sustainability Matrix

Max Cover Ceasing Age80 years

Modes of Premium PaymentYearly / half yearly / Monthly

Benefits:Trigger Portfolio Strategy: A unique portfolio strategy to protect gains made in

equity markets from any future equity market volatility while maintaining a pre-

defined asset allocation

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Additional allocation of units: More than 100% allocation to funds on premium

payment from the sixth policy year onwards of this unit-linked pension plan.

Five pension planning options: Flexibility to choose a pension plan as per

investors needs

Tax benefits: Avail tax benefits on premiums paid and receive tax free

commutation up to one-third of the accumulated value on vesting (retirement)

date, as per the prevailing Income Tax laws

Comparative analysis of Bajaj Allianz’s products:a. Wealth Insurance Plan: Bajaj Allianz Wealth Insurance Plan is a hassle-free

way of investing their money and at the same time taking care of their insurance

needs. The plan gives them the benefits of paying a single premium, so they don't

have to worry about due dates, repetitive paperwork and renewals or constantly

make phone calls to financial advisor. Apart from this, the high allocation offered

by the plan allows them to meet their financial goals.

Key Highlights Wealth Insurance Plan offers the following key benefits:-

Loyalty addition up to 7% of single premium at the end of the fifth year.

Option to receive the maturity benefits as settlement option.

Maximum flexibility to pay unlimited top-up premium and make partial

withdrawals.

Option to decrease the sum assured.

Systematic switching option to manage investments better.

Optional additional rider benefits to enhance protection.

The allocation rate is 98% for Single premium and Top up Premium.

If policy has not been terminated at the end of the 5th policy year the company

will allocate loyalty addition at the then prevailing unit price of an amount

equivalent to 3.00% for Single Premium of Rs. 50000 to 99999, 5.00% for single

premium of Rs. 100,000 to 249,999 and 7.00% for single premium of Rs. 250,000

and above. No loyalty addition is payable on any top-up premium paid.

b. Pension Guarantee Plan: Pension Guarantee Plan ensures regular Income

after Retirement. for life. With Bajaj Allianz Pension Guarantee Plan, investor can

72

ensure a regular income after retirement. The plan offers them a range of

immediate annuities to choose from. All they have to do is pay a lump sum

amount to Bajaj Allianz Life Insurance Company, and the annuity payments will

start after expiry of monthly/quarterly/half-yearly/yearly interval corresponding to

the payment mode selected by them. Under all options, annuity is payable for life,

so you don't have to worry about your income stopping at any age.

Features:Minimum Age at Entry 40

Maximum Age at Entry 80

Minimum Purchase Price Rs.25, 000

Minimum Annuity Installment Rs.1, 000

The Pension Guarantee plan offers a 15 day free look period and tax benefits

under section 80C.

Comparative analysis of MAX New York Life Insurance’s products:

1. Fortune Builder Max New York Life Fortune Builder is a unit linked endowment plan that provides

a unique combination of protection with potentially higher returns to fulfill goals.

Features: Guaranteed Loyalty Bonus which can be as high as 290% of ATP

Comprehensive protection through high sum assured multiples and inbuilt Family

Income

Benefits: Increasing premium option to counter inflation along with increasing sum assured

benefit

Choice of Seven funds for investors of different risk profiles

Life Stage based Asset Allocation – Dynamic Fund Allocation

Flexibility to make partial withdrawals to meet unplanned expenses

Flexibility to opt for Personal Accidental Benefit and Dread Disease riders

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2. Unit Builder Plus Max New York Life Unit Builder Plus, is a limited pay ULIP, which is designed to

not only give investors guaranteed returns but, also has an annual income plan

for that little extra income to enjoy life to the fullest.

FeaturesGuaranteed Loyalty Additions which injects 100% of Annual Target Premium to

the Fund Value on the 10th Policy Anniversary, and Annual Income through

which 25% of the Annual Target Premium returned back to them from 11th Policy

Anniversary till the Maturity Date in form of addition to the fund value.

Added Protection and inflation cover with increasing Sum Assured @ 5% with

Increasing Premium Payment Option and in case of Level Premium Payment

Option with Progressive Auto Cover Enhancement (PACE)

Limited premium payment option for only 10 years to get covered for 20 years

Life Stage based Asset Allocation – Dynamic Fund Allocation.

Analysis and Interpretation

Table 1:

Showing Age Group among respondents:

74

AGE RANGE NO. OF RESPONDENTS

< 25 24

25 – 30 22

31 – 40 38

>50 16

Graph 1:

Showing Age Group among respondents:

INFERENCE: The graph shows the different age distribution of respondents. In

this graph the majority of the investors belonged to the group 31to 40 years. This

group is most likely to think of investment, especially from a perspective of

savings for the future, including education of children, self –sustenance after

retirement etc.

75

Table 2:

Showing income level distribution of respondents:

INCOME RANGE NO. OF RESPONDENTS % OF RESPONDENTS

< 1 LAKH 8 8%

1 LAKH-2.5 LAKH 12 12%

2.5 LAKH-5 LAKH 40 40%

>5 LAKHS 40 40%

Graph 2:

Showing income level of distribution of respondents:

76

INFERENCE: The graph shows the various income levels of respondents. In this

graph the majority of the respondents were in income bracket of Rs.2 lakh-2.5

lakh per annum.

Table 3:

Showing marital status of respondents:

MARITAL STATUS MARRIED SINGLE

NO.OF RESPONDENTS

58 42

Graph 3:

Showing marital status of respondents:

77

<1 LAKH 1-2.5 LAKH 2.5-5 LAKH >5 LAKHS0

10

20

30

40

50

60

812

40

40

58

42

MARITAL STATUS OF INVESTOR

MARRIEDSINGLE

INFERENCE: As according to the graph the number of married persons is more

than single this group is most likely to think of investment especially from a

perspective of saving and retirement plans.

Table 4:

Showing educational background of respondents:

EDUCATION NO. OF RESPONDENTS

HIGH SECONDARY

[10+2]

6

GRADUATE 69

POST GRADUATE 25

Graph 4:

78

Showing educational background of respondents:

6

69

25

Educational Background of respondents

HIGH SECONDRY[10+2]GRADUATEPOST GRADUATE

INFERENCE: As according to the graph the number of graduates are more

amongst all respondents.

Table 5:

Showing employment status of the respondents:

OCCUPTION NO.OF RESPONDENTS

SELF EMPLOYED 29

PROFESSIONAL 25

SALARIED 46

Graph 5:

Showing employment status of the respondents:

79

SELF EMPLOYED PROFESSIONAL SALARIED0

5

10

15

20

25

30

35

40

45

50

29

25

46

INFERENCE: As shown in the table there is more salaried persons than self

employed and professional.

Table 6:

Showing no. of respondents having life insurance policy:

Graph 6:

Showing percentage of respondents having a life insurance policy:

80

HAVING A LIFE POLICY NOT HAVING

57 43

HAVING A LIFE POLICY NOT HAVING0

10

20

30

40

50

60 57

43

INFERENCE: As according to the graph there are 57% people having life

insurance policy of different companies and 43% are not having.

Table 7:

Showing percentage of respondents currently having life plans of different

insurance companies:

INSURANCE COMPANIES % OF PREFERENCE OF INVESTORS

LIC 61%

ING life 21%

Max New York life 8%

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Others 10%

Graph 7:

Showing percentage of respondents currently having life plans of different

insurance companies:

61%21%

8% 10%

PERCENTAGE OF INVESTOR PREFERANCE FOR DIFFERENT CO. LIFE PLAN

LIC ING life

Max New York Life insurance Others

INFERENCE: As according to the graph most of the investors prefer LIC life

plans followed by other companies so LIC is still the leader in Indian insurance

sector and amongst the private companies ING is one of the leading company

with 21% of respondents having its life plan.

Table 8:

Showing percentage of preference of respondents having different kinds of life

plan.

LIFE PLANS INVESTORS PREFERENCE

TERM PLAN 10%

ENDOWMENT PLAN 21%

UNIT LINK INSURACE PLAN 29%

RETIREMENT PLAN 14%

CHILDREN PLAN 26%

Graph 8:

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Showing percentage of preference of respondents having different kinds of life

plan:

TERM PLAN ENDOWMENT PLAN

ULIP RETIREMENT PLAN

CHILDREN PLAN0%

5%

10%

15%

20%

25%

30%

35%

10%

21%

29%

14%

26%

INFERENCE: As according to the responses most investors preferred ULIP for

investment purpose because of high return and less premium paying term instead

of that most investor preferred plan which gave them guaranteed return with

safety.

Table 9:

Showing percentage of investor’s preference for children plan for investment:

CUSTOMER PREFERRED CHILDREN

PLAN

CUSTOMER WHO DON’T PREFERRED

CHILDREN PLAN

41% 59%

Graph 9:

Showing percentage of investor’s preference for children plan for investment:

83

CUSTOMERS PRE-FERRED CHILDREN

PLAN

CUSTOMERS WHO DON'T PREFERRED

CHILDREN PLAN

0%

10%

20%

30%

40%

50%

60%

41%

59%

INFERENCE: As according to the responses, customers mostly don’t prefer the

children plans because they are already having it or they are in different age

group.

Table 10:

Showing percentage of time preference of respondents while selecting an

investment:

Graph 10:

84

TIME SCALE INVESTOR’S PREFERENCE

SHORT TERM 44%

MEDIUM TERM 41%

LONG TERM 15%

Showing percentage of time preference of respondents while selecting an

investment:

44%

41%

15%

TIME PREFERENCE OF INVESTOR FOR INVESTMENT

SHORT TERMMEDIUM TERMLONG TERM

INFERENCE: As according to the feedback of respondents it is clear that most

people are interested in short term and medium term plans with good returns

while those who want secured returns can wait for long period of time.

Table 11:

Showing factors preferred first by respondents while selecting an investment

plan:

Graph 11:

85

FACTORS RESPONDENTS PREFERENCE

RETURN 49%

RISK 37%

TIME PERIOD 14%

Showing factors preferred first by respondents while selecting an investment

plan:

RETURN RISK TIME PERIOD0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%49%

37%

14%

FACTORS PREFERRED WHILE SELECTING AN INVESTMENT PLAN

INFERENCE: As from the feedback, it is clear that most people prefer return

while going for an investment followed by risk and time preference.

Table 12:

Showing the percentage of respondents aware about the available insurance

products in the market:

PERCENTAGE OF RESPONDENTS

AWARE ABOUT THE OTHER PRODUCT

PERCENTAGE OF RESPONDENTS NOT

AWARE ABOUT THE PRODUCT

38% 62%

Graph 12:

Showing the percentage of respondents aware about the available insurance

products in the market:

86

38%

62%

PERCENTAGE OF RESPONDENTS AWARE ABOUT VARI-OUS INSURANCE PRODUCT AVILALABLE IN THE MARKET

RESPONDENTS AWARE ABOUT THE PRODUCTRESPONDENTS NOT AWARE ABOUT THE PRODUCT

INFERENCE: The table of response shows that most people are not aware about

the plans currently available in the market (this section consists of the various

people of young age and self employed people).

Table 13:

Showing Percentage of respondent’s rating their current insurance plan on the

basis of risk, return and time duration:

LEVEL OF RISK LEVEL OF RETURN TIME DURATION

L

O

W

MODE

RATE

H

I

G

H

L

O

W

MODE

RATE

H

I

G

H

SH

OR

T

TE

RM

L

O

N

G

T

E

R

87

M

4

1

%

15% 4

4

%

1

4

%

32% 5

4

%

59

%

41

%

Graph 13: Percentage of respondent’s rating their current insurance plan on the

basis of risk, return and time duration:

LOW MODRATE HIGH SHORT TERM LONG TERM0%

10%

20%

30%

40%

50%

60%

70%

41%

15%

44%

14%

32%

54%0.59

0.41

RISKRETURNTIME DURATION

INFERENCE:As the total number of respondents having a life policy is 57 so out

of that the different ratings given by them are shown above which shows that on

the basis of risk most people think that their current plan is more risky as they

have invested in ULIP and other market related plans. On the basis of return

most respondents feels that their product is of high return opportunity and at last

on the basis of time duration most respondents are having short term high risk

and high return based insurance plan.

Table 14:

Percentage of respondents visited to the company to know about the

performance of their products:

88

FREQUENCY OF VISIT RESPONDENT’S RESPONSE

ONCE IN A YEAR 29%

ONCE IN A QUARTER 24%

NEVER 47%

Graph 14:

Percentage of respondents visited to the company to know about the

performance of their products:

29%

24%

47%

FREQUENCY OF CUSTOMER'S VISIT TO COMPANY TO KNOW THE PERFORMANCE

ONCE IN A YEARONCE IN A QUARTERNEVER

INFERENCE: As the feedback received from respondents, it can be said that

most of them never visit to know the performance of their product because in

ULIP products they can get information through websites and internet and other

customers visit to the branches on a periodical basis.

Table 15:

Showing the level of satisfaction of current customers of ING as ranking given by

them: LEVEL OF RANKING GIVEN BY CUSTOMERS

89

SATISFACTION

EXCELLENT 35

GOOD 40

AVERAGE 20

POOR 5

Graph 15:

Showing the level of satisfaction of current customers of ING as ranking given by

them:

35

40

20 5

Level of satisfaction amongst the customers of ING

Excellent Good

Average Poor

INFERENCE: As according to the graph it is clear that most of the customers of

ING are satisfied with the services provided by the company both in Insurance as

well as banking sector.

FINDINGS:7.1 BASED ON ANALYSIS:The summary of survey conducted in ING Life insurance, can be listed down in

conjunction with the data analysis presented. The functioning and responses from

90

the respondents were authentic leading to a better view of the market scenario.

The findings are listed below:

o The contribution of insurance industry to the GDP of nation is 4.7%

o ING is the world’s largest financial services company.

o Ranked 17th in Fortune Global 500.

o With 150+ years of financial expertise and 8.5 crore customers in 40+ countries.

o Core services: banking, investments, life insurance & retirement services.

o Revenue amount to 226,577.00 Million USD.

o In India, ING has a experience of over 11 years.

o The company is targeting on emerging financial market in India with great

potential.

o 46% of the respondents are from salaried class.

o Literacy level of the respondents is high, 69% of them are educated.

o 58% respondents are married.

o 57% respondents are having a life insurance.

o Average annual income of respondents is between 2.5-5 laces as 50% are under

this category.

o 44% of respondents prefer short term and 41% prefers medium term time scale

for investment.

o 54%s of the respondents prefer short term high return Unit link insurance plan for

investment.

o ING three products: ING Market Shield, ING Ace Pension Plan and ING Fulfilling

Life are the top 3 rated products in the first quarter of the current financial year

and ranked A+ by various business magazines.

o 87% of the customer is highly satisfied with the services provided by ING.

o 62% of the respondents are not aware about the available insurance products in

the market.

7.2 SWOT ANALYSIS:

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STRENGTH:1) A strong brand name with a high degree of financial support which is the back

bone of the company.

2) Brand leaders in bringing latest financial services for the common man.

3) An innovator, pre problem seeker and risk taking capabilities.

4) Systematic, planned and quick actions taken up lead to quick reactions by the

company ultimately providing a competitive edge to ING.

5) ING is the world’s largest financial services company.

6) Ranked 17th in Fortune Global 500.

7) With 150+ years of financial expertise and 8.5 crore customers in 40+

countries.

WEAKNESS:1) The plans of company are beneficial but the premium rates are very high.

OPPORTUNITIES:1) A huge untapped market.

2) Emerging middle class, a good potential market.

3) Increasing employment rate and income.

4) Increasing financial investments in market.

THREATS:1) Neck to Neck competition with ICICI and HDFC with respect to services and

policies.

2) Threats from growing competitors like Bajaj Allianz and Aviva in Insurance

sector.

3) New entrants in the market, Sahara India Life, Om Kotak Mahindra etc. are an

area of concern.

SUGGESTIONS & RECOMMENDATIONS:

92

Most of the investors are return oriented with a minimum level of risk. Risk is

fundamental to the process of investment. Every investor should understand the

various pitfalls of investment and while going for an investment in insurance

sector they should assess each and every aspect of the plan they are going to

purchase. For the convenience of investor analyst measure risk and make plan

according to the need of the investor which can combine the risk of loss.

The various schemes of insurance discussed earlier are mainly meant to help

people at all level of income with different motive of investment and tax benefit for

those who are on high tax bracket.

The investment in traditional guaranteed return plan are the safest mode of

investment while those who wants high return can go for ULIP’s and other

available products of different companies.

Life Insurance is one of the best ways of investment as it fulfills the needs of both

return and safety to the customers and ensures security for the future.

In present scenario where market is highly sensitive everyone should have

insurance plans to secure their future. There are various plans available in the

market people can choose plans which best suits their requirements. The

researcher’s opinion is that people with an age of 25-30 should have a term plan

which guarantees benefits on unfortunate events. Newly married couple should

have saving plan and children plans for their secured future. The people with an

age of more than 40 can invest in retirement plans and ULIP can be affordable by

those who can take risk in short term and have a permanent source of income.

Company should focus on short term guaranteed benefits plans as a number of

people are interested in short term payment and high return products with

comparatively moderate premium rates.

CONCLUSION:

93

ING is an expert in financial sector having a 150+ years of experience in

insurance sector worldwide. In India, currently present in 229 cities across 265

branch offices withover 366 sales teams.

ING Life Insurance is a well known brand in India (Bangalore). The company has

a keen interest in the development and enhancement of its products in India. The

company focuses in providing quality products to all the areas of our country.

Company does not prefer marketing strategies and advertisement expenditure at

core, it invest the advertisement funds for the benefits of the customer and

provides them the highest return possible. Currently ING’s three products

providing maximum guaranteed bonus rate of 7.5% and are the top rankers

among all insurance products available in the market.

Company is facing stiff competition in the market with other private companies. In

India, It has been completed its 11 successful years of operation which shows its

reliability.

ING product quality is good but the premium rates they are taking are bit high

because they are in establishing phase in India so they are charging more money

as their establishment expenses but now ING has completed its 10 years in India

and is a well known brand so its future is quite promising. Company is launching

new products with very high benefits to the customers. The growing demand in

the market for ING Life Insurance products indicates the prospect of new

customers for the company.

Finally it is concluded that ING Life Insurance has built up a brand name,which

needs to be sustained through continuous feedback, improvement and proactive

actions. The company has already sensed the market potential and now it should

focus on introducing new schemes and product plans to offer the market what

they want from ING Life Insurance.

ANNEXURE

94

QUESTIONNAIREComparative analysis of various products offered by ING lifeGeneral Information:- Name: ……………………………………………………

1. Age: <25 25-30

31-40 >41

2. Annual Income/Salary:

Less than 1 lakhs Between 1 – 2.5 lakhs

Between2.5 – 5 lakhs More than 5 lakhs

3. Marital Status: Single Married

4. Educational Background: High School Graduate Post

Graduate

5. Employment Category: Self Employed/Professional Business

Salaried

Questions:-

6. Do you have a Life Insurance?

Yes No

7. From which company you have taken a Life Insurance?

LIC ING Vysya

Max New York Life Others

8. Which type of Life Insurance you are having?

Endowment Plan ULIP Plan Retirement Plan

Child plan Term Plan

95

9. Are you interested in Children Plans for Protection & Saving for your child?

Yes No

10. What is your time preference while selecting an investment plan?

Short Term Medium Term Long Term

11. Which factors do you prefer most while selecting an Investment Plan?

Return Risk Time Period

12. Are you aware about the available Life Insurance Products in the market?

Yes No

13. Please rate your current insurance plan on the basis of risk, return and time

duration.

(Please tick one from each factor)

LEVEL OF RISK LEVEL OF RETURN TIME

DURATION

L

O

W

MODE

RATE

H

I

G

H

L

O

W

MODE

RATE

H

I

G

H

SH

OR

T

TE

RM

L

O

N

G

T

E

R

M

14. How often you visit to the company to know about your product & other

information?

o Once in a year

o Once in a quarter

o Never

96

15. Rank the services of ING Vysya Life Insurance?

Excellent Good

Average Poor

BIBLIOGRAPHY

BOOKS:

97

Prasanna Chandra, Investment Analysis and Portfolio Management ,TMH-2/e

2005

Dr.H.Sadhak, Life Insurance in India-opportunities, challenges and strategic

perspective , Response books publications, New Delhi April 2009

Life Insurance guide for agents, Life Insurance IC 33, Published by-Govt. of India

Ben.G.Baldwin, New Life Insurance Investment Advisor, McGraw Hill Companies-

Second revised edition, July 2001

WEBSITES: www.inglife.com

www.reliancelife.co.in

www.hdfcinsurance.com

www.iciciprulife.com

98