1|Page

A PROJECT REPORT ON

COMPARATIVE

STUDY OF MUTUAL FUNDS AND MARKET LINKED INSURANCE PLANS

FOR THE PARTIAL FULFILLMENT OF MASTERES IN BUSINESS ADMINISTRATION 2009-2011 At Tata Aig Life Insurance company Bhopal, (M.P.)

2|Page

SUBMITTED TO: SUBMITTED BY: AKSHAY KUMBHARE MR. PRAVEEN CHOUDHARY

3|Page

BONAFIDE CERTIFICATE

This is to certify that the Project Report titled Comparative study of MUTUAL FUNDS and MARKET LINKED INSURANCE PLANS for TATA AIG LIFE insurance company is a bonafide work carried out by Akshay kumbhare of MBA (second semester) of M.K.PONDA.COLLEGE OF MGMT.for the fulfillment of MBA course of M.K.PONDA.COLLEGE OF
MGMT BHOPAL(M.P).

Director
MR. SHRINIVASAN

Guide
MR. PRAVEEN CHOUDHARY

Date: Place: BHOPAL

4|Page

ACKNOWLEDGEMENT

I take this opportunity to place on record my grateful thanks and sincere gratitude to all those who gave me valuable advice and inputs for my study. My study could not have been completed if I had not been able to get the reference materials from the company.

I sincerely thank my esteemed guide Miss. Shradha Tiwari (unit manager) for her valuable guidance and co-operation rendered to me throughout the project report.It would not have been possible for me to complete this project without there meticulous guidance and suggestions.

I express my sincere regards to MR. SHRINIVASAN (DEAN) and my guide Mr. PRAVEEN CHOUDHARY (FACULTY) for constant Support and valuable guidance from time to time for completion of this project.

Last but not least, I would also like to express my thanks to my family members who inspired me to put in my best efforts for the research project report.

5|Page

AKSHAY KUMBHARE

PREFACE
The research provides an opportunity to a student to demonstrate knowledge, skill and competencies required during the project. The training project helps to know the problems in the organization and to suggest them how to get rid of those problems.

Although I have tried my level best to prepare this report an error free report every effort has been made to offer the most authenticate position with accuracy.

The report is divided in to five chapters. The first part consists of Introduction to the topic; Second part gives a brief overview about the Industry and Organization. The middle part contains the Research methodology used in the project. Fourth Chapter is the most important part as it contains the Analysis of data. Last Part contains the Conclusion .

AKSHAY KUMBHARE

6|Page

DECLARATION

I hereby declare that, this project title COMPARATIVE STUDY OF MUTUAL

FUNDS AND MARKET LINKED INSURANCE PLANS is a genuine & bonafide

project prepared by me in partial fulfillment of Master Degree in Business Administration.

The project work is original & conclusions drawn herein are based on the data collected & analyzed by myself.

To best of my knowledge, this project work has not been submitted by anyone else in any other institute or university.

Date : Place : Bhopal

AKSHAY KUMBHARE MBA (2nd SEM)

7|Page

TABLE OF CONTENTS

1.COVER AND TITLE PAGE

PAGE NUMBER

a)Certificate of the company Front page b)Bonafide certificate c)Acknowledgement. d)Preface e)Declaration given by student........ f)Table of contents g)Executive summary... 1 2 3 4 5 7

2.INTRODUCTION TO PROJECT
a) Introduction . b) Scope of the study.

9-19 20 21

c) Objective of the study

3.ORGANISATION AND INDUSTRY PROFILE

a)Industry PROFILE. b)Company profile....................................................................................... 23-26 27-41

8|Page

4.RESEARCH METHODOLOGY
a)Conceptual and theoretical review...... 43-44 b)Research review 45

5.DATA ANALYSIS AND INTERPRETATION

a)Analysis part 1. 47-54 b)Analysis part 2. 55-66

6.CONCLUSIONS
a)Facts and findings .. 68 b)Limitations of the study.. 69 c)Suggestions/ Recommendations......................... 70-73

d) Conclusion . 74-75

..Bibliography . 77 .. Annexure.79-85

9|Page

EXECUTIVE SUMMARY
Insurance in India is booming ,But not to level comparative with the developed economics such as Japan,Singapore etc.Also liberization of the Insurance sector has provided huge self employment opportunity. Insurance is a federal subject in India. The insurance sector has gone through a number of phases and changes. Since 1999, when the government opened up the insurance sector by allowing private companies to solicit insurance and also allowing foreign direct investment of up to 26%, the insurance sector has been a booming market. However, the largest life-insurance company in India is still owned by the government. While doing project at TATA AIG LIFE MP NAGAR BHOPAL branch,I observed that unit managers were facing some serious problem regarding the awareness of people about MUTUAL FUNDS AND ULIPS .The TATA AIG LIFE and other insurance players are facing problem the same problem.to find out the reason the main objective of the study is kept as COMPARATIVE ANALYSIS OF
MUTUAL FUNDS AND ULIPS

Inadequate information regarding the work of agents/financial consultant/agent advisors is the main reason of attrition in Insurance industry. The study is proposed to find out the difference difference mutual funds and ulips and to compare them.so that a clear picture is depict before Investor.After analysis I came to the conclusion that mostly people are unaware of ulips and mutual funds which includes the executive of the company and investors too. The project work is a sincere attempt to collect the information stating the various reasons for attrition and suggests the useful measure for retention ..

10 | P a g e

INTRODUCTION TO PROJECT

11 | P a g e

INTRODUCTION TO TOPIC
ULIPS (UNIT LINKED INSURANCE PLANS):The introduction of Unit Linked Insurance Plans has possibly been the single largest innovation in the field of life insurance .It has addressed and overcome many difficulties and concern s that customers had about life insurance liquidity, flexibility, and transparency. These benefits are possible because ULIPs are differently structured products and leave many choices to the policyholder. They are structured such that the protection (insurance) element and the savings element (investment) can be distinguish and hence managed according to ones specific needs, offering flexibility and transparency. Thus we can say it is such a product that takes care of multiple needs. There were some factors which gave entry for ULIPs in the insurance market: Firstly was the arrival of private of private players, and ULIPs were the most significant innovation done by them, and secondly was the decline of assured returns in endowment plans. Besides this as the stock markets were booming which now has become the primary factor. As mentioned earlier enhanced flexibility and merging of investment and insurance in a single entity that have really endeared them to individuals. ULIPs are also called as Bundled Policies. According to Vijay Sinha (Assistant Director Agency, Tata-AIG Life Insurance,) ULIP is ideal for someone who is looking for a long term investment product, is under-insured and is averse to taking a traditional life insurance product. Ulip should be looked at from an investment as well as insurance point of view and not isolation
UNIT LINKED INSURANCE PLANS:-

Early the market of ULIPs was taken up Birla Sun; they were the first to capture the market in this field. These are the insurance plans which are attached to Units Mutual Funds. The premium amount received in this policy, some part is used in investment of funds and remaining is used for insurance cover. ULIPs are remarkably similar to, mutual fund in terms of structure and functioning: premium payments are converted into units and net asset value (NAV) is declared regularly. Investors have an option of choosing their fund

12 | P a g e

according to their risk taking ability. They disclose all the material facts most frequent and consistent (often quarterly or half-yearly) .Also investor has a fairly good idea about expenses. The expenses which are considered are as follows:1) Mortality Rate: - These are charged by the life insurance company to cover the risk of an eventuality to the individual. 2) Administration, sales/marketing Charges: - All life insurance companies incur certain expenses on regular basis. Agents commission, sales & marketing expenses and overhead costs incurred to run the day to day basis are some examples. 3) Fund Management Charges: - These charges are levied by the insurance company to cover the expenses incurred by them on managing Ulip monies. 4) Ulip-fund Switch Charges: - These charges are borne by the individuals when they decide to switch their, money from one type of fund to another. 5) Top-up Charges: A certain percentage is deducted from the top-up amount to recover the expenses incurred on managing the same. ULIPs are very different from the traditional policies because they are based on some fundamentals of Mutual funds as different types of funds which are created wherein the premiums which are received on the policy these are invested in these funds basically these funds are of following types:a) Aggressive/Growth Fund:-Such funds invest a major portion in equity markets. They are therefore considered to be high on risk parameter. b) Debt Funds: - These types of funds invest the premium money in debt instruments like gsecs, bonds and AAA rated securities. Such funds are low risk in nature. c) Balanced Funds: - This fund is combination of growth & debt fund. This means its portfolio consists of both equities and debt instruments. The risk for this fund is moderate. d) Money Market/Liquid Funds:- Such a fund invests the premium money in short term liquid instruments like bank deposits and money market instruments.

13 | P a g e

MUTUAL FUND
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests typically in investment securities (stocks, bonds, short-term money market instruments, other mutual funds, other securities, and/or commodities such as precious metals). The mutual fund will have a fund manager that trades (buys and sells) the fund's investments in accordance with the fund's investment objective. In the U.S., a fund registered with the Securities and Exchange Commission (SEC) under both SEC and Internal Revenue Service (IRS) rules must distribute nearly all of its net income and net realized gains from the sale of securities (if any) to its investors at least annually. Most funds are overseen by a board of directors or trustees (if the U.S. fund is organized as a trust as they commonly are) which is charged with ensuring the fund is managed appropriately by its investment adviser and other service organizations and vendors, all in the best interests of the fund's investor

A mutual fund is a trust that pools the savings of a number of investors who share a common financial goal.The money thus collected is then invested in capital market instruments such as share.debentures and other securities.The income earned through these investments and the capital appreciations realized

14 | P a g e

are shared by its unitholders in proportion to the number of units owned by them.

Advantages of mutual fund Professional management Diversification Low costs Liquidity Transparency Flexibility Tax benefits

WHAT ARE VARIOUS TYPES OF MUTUAL FUNDS A common man is so much confused about the various kinds of Mutual Funds that he is afraid of investing in these funds as he can not differentiate between various types of Mutual Funds with fancy names. Mutual Funds can be classified into various categories under the following heads:(A) ACCORDING TO TYPE OF INVESTMENTS :- While launching a new scheme, every Mutual Fund is supposed to declare in the prospectus the kind of instruments in which it will make investments of the funds collected under that scheme. Thus, the various kinds of Mutual Fund schemes as categorized according to the type of investments are as follows :(a) Equity funds / schemes (b) Debt funds / schemes (also called income funds) (c ) Diversified funds / schemes (also called balanced funds) (d) Gilt funds / schemes (e) Money market funds / schemes

15 | P a g e

(f) Sector specific funds (g) Index funds

(B) ACCORDING TO THE TIME OF CLOSURE OF THE SCHEME :- While launching a new schemes, Mutual Funds also declare whether this will be an open ended scheme (i.e. there is no specific date when the scheme will be closed) or there is a closing date when finally the scheme will be wind up. Thus, according to the time of closure schemes are classified as follows :(a) Open ended schemes (b) Close ended schemes

(C) ACCORDING TO TAX INCENTIVE SCHEMES :- Mutual Funds are also allowed to float some tax saving schemes. Therefore, sometimes the schemes are classified according to this also:(a) Tax saving funds (b) Not tax saving funds / other funds

(D) ACCORDING TO THE TIME OF PAYOUT :- Sometimes Mutual Fund schemes are classified according to the periodicity of the pay outs (i.e. dividend etc.). The categories are as follows :(A) Dividend paying schemes (b) Reinvestment schemes

The mutual fund schemes come with various combinations of the above categories. Therefore, we can have an Equity Fund which is open ended and is dividend paying plan. Before you invest, you must find out what kind of the scheme you are being asked to invest. You should choose a scheme as per your risk capacity and the regularity at which you wish to have the dividends from such schemes.

16 | P a g e

SOME OF THE TERMS USED IN MUTUAL FUNDS

Net Asset Value (NAV) Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date. Sale Price:It is the price you pay when you invest in a scheme and is also called "Offer Price". It may include a sales load. Repurchase Price : - It is the price at which a Mutual Funds repurchases its units and it may include a back-end load. This is also called Bid Price. Redemption Price : It is the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity. Such prices are NAV related. Sales Load / Front End Load : It is a charge collected by a scheme when it sells the units. Also called, Front-end load. Schemes which do not charge a load at the time of entry are called No Load schemes. Repurchase / Back-end Load : It is a charge collected by a Mutual Funds when it buys back / Repurchases the units from the unit holders.

17 | P a g e

ULIPS VS MUTUAL FUNDS ULIPs are all set to pose serious competition to mutual funds. Though ulips as an investment avenue are closest to mutual funds in terms of their structure and functioning like disclosing their NAVs daily etc. ULIPs are essentially a long term commitment between the policyholder and the insurance company and mutual funds are built to cater to the relatively short term need of the investor. The investments are made with a shorter- term duration profile when compared to ulips. The seemingly similar structure of both of them makes it vital for investors to be aware of the fine distinctions in both the offering and make informed decisions. Following are some insurance companies who offer ULIPs:-Tata Aig ,Bajaj Allianz, ING Vysya, HDFC Standard, HDFC Standard, HDFC Standard, -Birla Sun life,Aviva Life Insurance, Kotak Mahindra, Max New York Life, Met Life, Sahara Life, etc Sahara Life, etc Following are Difference between ULIPs & Mutual Fund:-

18 | P a g e

DIFFERENCE BETWEEN MUTUAL FUND AND ULIPS

Points of Difference

ULIPS(Unit Linked Insurance Plans) These are the Insurance policies which are linked to units of Mutual Fund.

MFs(Mutual Funds)

1) Meaning :-

It is an investment organization with a main objective of collecting funds from various segments of people and investing the same in a variety of securities.

2) Primary Objective :-

Its main objective is investment & protection It works out for long term investment only .

Its objective is only investments. It works out to medium term, long term, & short term. Risky for short term investors.

3) Investment Duration:

4) Insurance Cover :-

ULIPs provide insurance cover (except annuity products which may be issued with/ without risk cover) and from the amount invested in ULIPs after netting out the risk premium for life risk cover and administrative expenses, the insurer invests the

MF schemes do not cover the life risk and the amount invested, net of expenses, gets invested as per the investment objective of the scheme

19 | P a g e

balance as per the objective of the specific ULIP product. 5) Expenses :Insurance companies have a relatively free hand in levying expenses on their ULIP products with no upper In MFs, expenses charged for various activities like sales/marketing, administration and fund

limits being prescribed by the management are capped (for example in equity oriented regulator, the Insurance Regulatory and Development Authority (IRDA) mutual funds, expenses are capped at 2.5% per annum) as per the guidelines of the Securities and Exchange Board of India (SEBI). Similarly funds usually charge their investors entry (at the timing of making an investment) and exit (at the time of sale) loads. 6) Flexibility :Flexibility is limited to moving across different funds offered with policy. Correcting mistakes can turn out to be expensive. Moving funds from one ULIP to another ULIP of a different fund house can be expensive. 7) Liquidity :Limited liquidity .It need to stay invested for minimum years before redeeming Very liquid. MF units can be sold any time(except ELSS). Very flexible. Plenty of scope to correct mistakes if any wrong investment decisions are made. Portfolios can be easily shuffled in MFs.

20 | P a g e

8) Investment Objective

ULIPs can be used for achieving only long term objectives (Children education, marriage, Retirement planning).

MFs can be used as vehicle for investments to achieve different objectives.(E.g.: Buying a car three years from now. Down payment for a home five years from now. Childrens education 10 years from now. Childrens marriage 15 years from now. Retirement planning 25 years from now. Medical expenses after retirement 25 years from now).

9) Flexibility of Switchovers Insurance companies permit their ULIP investors :usually 3-4 switch overs free of charge and thereafter every additional switch over beyond the permissible limit is permitted at some cost. 10) Minimum Lock- in Period ULIPs currently are with a minimum lock-in of three years.

In MFs an investor usually is subjected to exit load and/or entry load when he/she exercises a switch over option.

MF schemes (except ELSS which has a lock-in of three years) do not have any such lock in.

11) Investment styles and Portfolio Disclosures :-

Insurance companies declare their portfolios once in a quarter and their investment style are less aggressive and they resort to less churning.

Most MFs usually declare their portfolios on monthly basis and MFs are generally known to be more active in fund management

21 | P a g e

12) Tax benefits and implications :-

Irrespective of the nature of the plan chosen by the investor, all ULIP investments qualify for deductions up to one lakh under Section 80C of the Income Tax Act. In the case of ULIPs the maturity proceeds are taxfree.

In the case of mutual funds, only investments in taxsaving funds i.e Equity-linked savings schemes (ELSS) are eligible for Section 80C benefits On the other hand, in the case of equity-oriented mutual funds, if the investments are held for a period over 12 months, the gains are tax free and if sold within a 12-month period they attract short-term capital gains tax @ 10 percent. Similarly, debt-oriented funds attract long-term capital gains tax @ 10 percent while short-term capital gain is taxed at the investors marginal tax rate.

22 | P a g e

SCOPE OF THE STUDY

THE PROJECT INCLUDES THE FOLLOWING AREAS:

(1)IN THIS PROJECT ,THE STUDY RELATED TO THE COMPARITIVE STUDY OF MARKET LINKED INSRANCE PLANS WITH MUTUAL FUND

(2)SURVEY OF BHOPAL IS INCLUDED

(3)SURVEY OF 150 INDIVIDUALS IS ALSO INCLUDED

23 | P a g e

OBJECTIVES OF STUDY
PROJECT STUDY
Comparative Study of Unit Linked Insurance plans and Mutual Funds

MAIN OBJECTIVE:
To study and compare the Unit Linked Insurance Plans and Mutual Fund. To know the difference in investing in ULIP & Mutual Fund. To know whether these two options are substitute for each other or not.

SUB OBJECTIVES
(1) To know the factors that influence investors while taking investment decisions. (2) To know the merits & demerits of mutual funds. (3) To know investing in Mutual Fund is worthy or not . (4) To know advantages & disadvantages of investing in ULIP. (5) To know the suitability of ULIP & Mutual Fund to different investors. (6) To know Customer awareness and preferences

24 | P a g e

ORGANISATION AND INDUSTRY PROFILE

25 | P a g e

INDUSTRY PROFILE
INSURANCE

Is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance. An insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a large, possibly devastating loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated.

26 | P a g e

INSURANCE IS A FEDERAL SUBJECT IN INDIA.

The insurance sector has gone through a number of phases and changes. Since 1999, when the government opened up the insurance sector by allowing private companies to solicit insurance and also allowing foreign direct investment of up to 26%, the insurance sector has been a booming market. However, the largest life-insurance company in India is still owned by the government.

IRDA controls all the Insurance business in India. They are setting structure and boundaries for the insurance companies to act upon. Starting from licensing to approving the products, IRDA directs the companies in India. They also protect customer interests in the country.

27 | P a g e

INSURANCE COMPANIES IN INDIA APPROVED BY IRDA

Tata AIG Life Insurance Company Limited

Bajaj Allianz Life Insurance Company Limited Birla Sun Life Insurance Co. Ltd HDFC Standard life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance Company Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd Met Life India Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd Tata AIG Life Insurance Company Limited Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Shriram Life Insurance Co, Ltd. Sahara India Life Insurance Bharti AXA Life Insurance Future Generali Life Insurance IDBI Fortis Life Insurance Canara HSBC Oriental Bank of Commerce Life Insurance Religare Life Insurance DLF Pramerica Life Insurance Star Union Dai-ichi Life Insurance Agriculture Insurance Company of India Apollo DKV Insurance Cholamandalam MS General Insurance HDFC Ergo General Insurance Company ICICI Lombard General Insurance IFFCO Tokio General Insurance

28 | P a g e

National Insurance Company Ltd New India Assurance Oriental Insurance Company Reliance General Insurance Royal Sundaram Alliance Insurance Shriram General Insurance Company Limited Tata AIG General Insurance United India Insurance Universal Sompo General Insurance Co. Ltd

29 | P a g e

ORGANISATION PROFILE

TATA AIG PROFILE

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

THE TATA GROUP Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are USD 62.5 billion (around Rs. 251,543 crores), of which 61% was from business outside India. The Groups Net Profit for 2007-08 is USD 5.4 billion (around Rs. 21,578 crores). The Group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of the Tata Group currently encompass seven business sectors - Communications and Information Technology, Engineering, Materials, Services, Energy, Consumer Products and Chemicals. The Group's 28 publicly listed enterprises have a combined market capitalisation of around

30 | P a g e

$60 billion, among the highest among Indian business houses, and a shareholder base of 2.9 million. The major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels, Tata Teleservices and Tata Communications.

AMERICAN INTERNATIONAL GROUP, INC. (AIG) American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. Tata AIG Life Insurance Company Ltd. "Tata AIG Life" offers a broad array of life insurance products to individuals, associations and businesses of all sizes, with a wide variety of additional coverage to ensure our customers can find an insurance product to meet their needs.

31 | P a g e

HISTORY
TATA AIG LIFE INSURANCE COMPANY LIMITED

TATA GROUP
Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over years that it is a value driven company and has pioneering contributions in various fields including insurance, aviation, iron and steel. Tata companies have forged a number of global alliances with eminent international partners in several fields. In terms of capital market performance as many as 40 listed Tata companies account for nearly 5% of the total market capitalization of all listed companies. The Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalisation of insurance.

TATA Group in Insurance The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd, a group company incorporated way back in 1919. Government of India took over the management of this company as a part of nationalization of general insurance companies in 1972. Not deterred by the move, Tata group have ventured into risk management services having tied up with AIG group, back in 1977, with the incorporation of Tata AIG Risk Management Services Pvt. Ltd.

32 | P a g e

AIG American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in over 130 countries and jurisdictions throughout the world. AIG's Life Insurance operations comprise of the most extensive worldwide network of any life insurer. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. The Joint Venture Tata AIG Life Insurance Co. Ltd. is capitalised at Rs. 185 crores of which 74 per cent has been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Mr. George Oommen has been named managing director of Tata AIG Life Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and groups. The company is headquartered in Mumbai, with branch operations in Delhi, Chennai, Hyderabad, Bangalore ,Calcutta, Pune and Chandigarh.

Contact Address Tata AIG Life Insurance Company Limited 82, Ahura Centre 4th floor, Mahakali Caves Road Andheri (East) Mumbai - 400 093. India Tel: 1600-119966 Fax: 91-022-6938265 URL: www.tata-aig.com

33 | P a g e

TATA AIG LIFE INSURANCE

Headquarters Mumbai Area, India Industry Insurance Type Public Company Status Operating Company Size 10,000 employees Founded 2001 Website http://www.tata-aig.com Common Job Titles Manager Training Manager Sales Manager Business Development Manager Location Head Gender Male Female 17% 7% 5% 5%

4% 79% 21%

34 | P a g e

SOME MORE INFORMATION

The non-life insurance arm, Tata AIG General Insurance Company, which started its operation in India on Jan 22, 2001, offers the complete range of insurance for automobile, home personal, accident, travel, energy, marine, property and casualty, as well as several specialized financial lines.

BUSINESS DIVISIONS
WSM

Agency Agency

Alternate Channels GMD Pensions Direct Marketing

FINANCIAL RESULTS FOR THE FISCAL 03-04

Total Premium : Rs 254 cr (253 % growth) First year Premium Income: Rs 180 cr Agent strength : 18,000 Life cover sold : 1,62,000

35 | P a g e

VISION AND MISSON

Our Vision
To be the leading provider of wealth management,protection and retirement solutions that meets the needs of our customers and adds value to their lives..

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

Our Values
Our values represent the core, shared beliefs that guide how we act and work together to achieve our goals. We share a set of 6 core values: Customer First, People, Passion, Performance, Integrity and Empathy.

Customer First: Anticipate their priorities. Exceed their expectations. Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. People: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. Strive to develop diverse talent and reward excellence. Performance: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide. Passion: We must be excited about what we do. We must have a strong internalized drive to meet goals. Relentless determination to solve customer problems. Respect: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve

36 | P a g e

KEY PERSONS

F.K. KAVARANA TATA AIG CHAIRMAN

M SURESH MANAGING DIRECTOR

ASHOK S. GANGULY DIRECTOR .

H.R.KHUSRO KHAN DIRECTOR

37 | P a g e

KEY PERSONS

MR. ADITYA KANADE - Head internal audit MR. VIVEK SOOD MR. RAJEEV DEWAL

- Chief financial officer - Head legal and compliance

MR.SARAVAN KUMAR - Chief investment officer MR.HEERAK BASU

- Appointed actuary

38 | P a g e

TATA AIG PRODUCTS

Tata AIG offers a range of flexible insurance products for children. Policies dedicated to children and their key features are as given under.

FOR CHILDREN
Life Assure Career Builder Life Assure Educare Life Assure 21 years Money Saver Life InvestAssure II financial assistance at key stages of childs life funding childs education cash payments in the form of survival benefits at regular intervals full life cover high returns flexibility of deciding the length of life cover term unit linked endowment investment plan flexibility to suite your needs single-premium paying term security of life insurance policy potentially higher returns steady income and life-long insurance coverage for child endowment policy dedicated for childs career and marriage unit linked endowment plan arranging finance for childs future

Life InvestAssure Flexi Life InvestAssure Plus

Life MahaLife Gold Life Starkid Life United Ujjwal Bhavishya

FOR ADULTS
The company has a slew of life insurance of plans for adults. Life Assure Lifeline Plans Life Assure Growth Plans Life Assure 21 years Money Saver Life Assure Golden Years Plan Life Easy Retire Life InvestAssure Health High coverage at an affordable cost Endowment policy Keep your money safe and have it grow Cash payments at the end of every 3 years Life insurance coverage plus the flexibility of periodic payments Endowment policy Safety as well as returns Annuity plan with Return of Purchase Price Single premium payment Unit linked investment plan Helps achieve financial goals along with a comprehensive health

39 | P a g e

policy Life Hospi CashBack Life Health Investor Multiple claims against unforeseen hospitalization expenses Money back Benefit on diagnosis of 12 critical illnesses Cover in case of unfortunate death 100% return of premium in case of no claims Life cover plus high returns Unit-linked life insurance plan Guaranteed Maturity Unit Price Investment linked insurance plan Designed for customers of premier banks Non-participating unit linked insurance plan Inbuilt Critical Illness benefit Unit linked endowment plan Helps one achieve financial goals flexibility to invest more money takes care of emergency cash requirements Unit linked plan Dual benefits of insurance coverage and wealth creation Fllexible insurance plan Single-premium paying term Higher returns on premiums Unit-linked insurance solution Optimise investment returns If you outlive the term get premium back In case of death by natural causes get sum assured Good for retirement planning Provides for steady income and insurance coverage large cover at a small premium life insurance protection and high returns Covers health contingencies Covers cost of major surgery or treatment

Life InvestAssure II Life InvestAssure Apex Life InvestAssure Extra Life InvestAssure Care Life InvestAssure Flexi Life InvestAssure Gold Life InvestAssure Insta Life InvestAssure Plus

Life InvestAssure Optima Life LifePlus Life MahaLife Gold Life Raksha Life ShubhLife Life Health First Life Health Protector

40 | P a g e

FOR RETIREMENT PLANNING

If you plan to retire at the age of 60 or 65, you could need to fund your lifestyle for several years without any regular salary. But if you have invested in a right plan, you can rest assured. Life Assure Golden Years Plan Endowment policy If you live past the term you get sum assured along with a host of bonuses Immediate annuity plan Single premium payment Flexible plan Life cover plus high returns Provides for emergency cash requirements or a steady postretirement income Custom-made retirement solution Steady income and insurance coverage Freedom to choose retirement age Guaranteed addition of 10 percent of sum assured every 5 years Unit linked non participating pension plan

Life Easy Retire Life InvestAssure II Life InvestAssure Gold Life InvestAssure Future Life MahaLife Gold Life Nirvana Life Nirvana Plus Life InvestAssure Swarna Jeevan

41 | P a g e

ACHIEVEMENTS

(1)TATA AIG LIFE PARTNERS WITH THE INDIAN MEDICAL ASSOCIATION (MUMBAI BRANCH) TO CREATE INDIAS FIRST HEALTH QUOTIENT

Feb 01, 2007: Tata AIG Life Insurance Company Ltd (Tata AIG Life) in association with the Indian Medical Association

(2)TATA AIG LIFE EXPANDS DISTRIBUTION NETWORK: OPENS OFFICE IN SIKAR

Establishes state-of-the-art training center for advisors and corporate agents Sikar, July 16, 2004

(3)TATA AIG LIFE INSURANCE COMPANY TIES-UP WITH INDIATIMES SMS 8888
Mumbai, March 30, 2004.

\ (4)TATA AIG LIFE - FIRST INSURANCE COMPANY TO LAUNCH MICRO INSURANCE ~Full Range of Products and dedicated Offices ~ First major Micro Insurance initiatives venture by an Indian insurance company Launches three new Micro Insurance products and five Micro Insurance branches Adopts a tailor made rural communication strategy to reach out to the rural community Mumbai, August 8, 2006

42 | P a g e

ACHIEVEMENTS

Health Insurance Solutions from Tata AIG Life for United Bank of India Customers Kolkata, March 13, 2008: United Bank of India (UBI) and Tata AIG Life Insurance (Tata AIG Life) today announced the launch of United Health Solutions a customised health insurance package for customers of UBI. United Health Solutions has two powerful plans Health Investor and Health Protector. These products provide effective cover against critical diseases, accident and death.

TATA AIG LIFE INSURANCE COMPANY LIMITED TIES UP WITH DBS BANK

Mumbai, March 27, 2006: Tata AIG Life Insurance Company Limited (Tata AIG Life) today announced its strategic tie-up with DBS Bank, Singapores largest bank and the fifth largest banking group in Hong Kong. Under this alliance DBS Bank will make the entire range of Tata AIG Lifes insurance products and services available to its customers at bank branches across India

43 | P a g e

ACHIEVEMENTS
Tata AIG Life Insurance total annual premium up 77 % to Rs 880 Crores
FYP income up 48% to Rs 432 crores Agency Total Premium Income up by 61% with persistency rate of 85% Total Premium Income from Alternate Channels up 132 %; Bancassurance growing at 179 %. Geographical network expanded to cover 45 cities with 85 offices Lives covered under Rural sector - 21% versus Regulatory obligation of 16%. Lives covered under Social sector 101,873 versus Regulatory obligation of 20,000 lives. Mumbai, June 20, 2006: Tata AIG Life Insurance Company Limited (Tata AIG Life) today announced an increase of 77 percent in total premium income to Rs 880 crores for the annual period ending March 31, 2006, compared to Rs 497 crores for the corresponding period last year. The First Year Premium income increased by 48 percent to Rs 432 crores for the year ended March 31, 2006, compared to Rs 292 crores for the same period last year. Through its wide array of Group life insurance, pensions, gratuity and superannuation products, Tata AIG Life has covered over 7,16,016 lives during the period April 2005March 2006, an increase of 43 percent over the last fiscal year. Additionally 3, 17,430 individual life business policies were issued from April 2005 to March 2006, an increase of 34.4 percent over the last fiscal year.

MR. FARROKH KAVARANA, Chairman, Tata AIG Life said, We continue to focus on
creating a world class life insurance entity that anticipates the needs of both customers and our stakeholders and provides innovative solutions to address their needs. We look forward to the opportunities and challenges that lie ahead and remain confident of creating increasing value for our policyholders and stakeholders through our customer centric approach and the high quality of our products and services

MR. TREVOR BULL, MANAGING DIRECTOR, Tata AIG Life added, We are pleased
to announce that the company has made significant strides in enhancing our position within India both through corporate and individual customers while continuing to increase the scale of our operations to better serve our customers. Our wide range of distribution channels and strategic alliances have all contributed to this result by offering customers and partners choices which address their growing protection and asset accumulation needs. We will consistently expand our product offerings by delivering innovative products to complement our commitment to offer quality advice and service that sets us apart as the company of choice.

44 | P a g e

RESEARCH METHODOLOGY

45 | P a g e

RESEARCH METHODOLOGY
CONCEPTUAL AND THEORETICAL REVIEW

RESEARCH DESIGN Descriptive research design Descriptive research design are those studies which are concerned with describing the characteristics of a particular individual,or of a group.in this study like ,observation,questionnaires,examination of records etc are used for such studies. DATA SOURCES- Primary data and secondary data RESEARCH APPROACH Face to face interview, observation, individual depth interview RESEARCH INSTRUMENT Questionnaire. Questionnaire method : In the study questionnaire was send to the person concerned with a request to answer the questions and return the questionnaire.a questionnaire consists of a number of questions typed in definite order on a set of forms.the respondents had to answer the question on their own.

46 | P a g e

DATA COLLECTION:
PRIMARY DATA: The primary data are those which are collected afresh and for the first time; and thus happen to be original in character.In this study data is collected through observation,guidance of the supervisor and data is collected through questionnaire.
1) Use of a Questionnaire for carrying out a survey 2) Presentation given by the Advisors of Tata AIG life. 3) Data explaining the working of the ULIPs and mutual funds.

SECONDARY DATA: In this study secondary sources of data were the various websites and insurances manuals .The mainly provided information about the insurance sector and the companys profile.These help in gaining knowledge about industry.
1) Books 2) Newspapers 3) Magazines 4) Newsletter 5) Internet 6) Television 7) Booklet 8) Policy Brochures

47 | P a g e

RESEARCH REVIEW

SAMPLING

It is the process of obtaining information about an entire population by examining only a part of it.

SAMPLING UNIT-Individuals

SAMPLE SIZE-150 units

SAMPLING TECHNIQUE-Random convenience

SURVEY PERIOD WAS 6 WEEKS STARTED FROM 4th JULY TO 15th AUGUST 2010

48 | P a g e

DATA ANALYSIS AND INTERPRETATION

49 | P a g e

FINDINGS (CUSTOMERS SURVEY)

ANALYSIS PART 1

MUTUAL FUND

1.Which of the following investment options would you prefer?

50 45 Bank fixed deposit Postal savings Shares and bonds Mutual funds Insurance policies Others Options Bank FD & Postal savings

respondents

40 35 30 25 20 15 10 5 0

Analysis: 44% of respondents have invested in bank deposits,12% in postal savings,4% of respondents in shares and bonds and2% in mutual funds ,3% in Insurance Policy and 34% have invested in both fixed deposit and postal savings.

50 | P a g e

2. Have you invested in the following? (Please tick)(if yes, go to Q no.4)

70 60
respondents

50 40 30 20 10 0 Options

Mutual funds Insurance policies Mutual fund and Insurance policies (Both)

Analysis:

According to the above table 6 % of the respondents have

invested in Mutual Funds and58 % respondents have invested in Insurance Policies,36% have invested in both the Mutual Fund and Insurance Policies.

51 | P a g e

3.What is the reason for not investing?

100 90
Respondents

Uncertainty High cost Not interested in investment Others Non respondents

80 70 60 50 40 30 20 10 0 Options

Analysis: According to the above table 5 %of the respondents are uncertain to invest in Mutual Funds. 1% of the respondents think it is high cost and 3 % of them are not interested in investments, 90% of respondents have invested in either investment.

52 | P a g e

4. Do you think investing in Mutual Fund is worthy?

60 50
Respondents

40 30 20 10 0 Options

Yes No No response

Analysis:

According to the above table 55% of the respondents think

that investing in Mutual Funds is worthy and 43% of the respondents think it is not , 2 % have not responded.

53 | P a g e

5.

According to you why an individual should invest in Mutual Fund?

50 45
Respondents

To multiply money Moderate return with minimum risk To have faster rate of growth Others Non respondents

40 35 30 25 20 15 10 5 0 Options

Analysis: According to the above table 5% of the respondents say that they have invested to multiply their money, 43 % of the respondents have invested for moderate returns with moderate risk, 16 % of the respondents have invested to have a faster rate of growth , 1 % of the respondents have invested as other reason and 35% have invested so ,not responded for question.

54 | P a g e

6. Do you have any plan of investing in near future? (if no go to Q no.8)

100 90
Respondents

80 70 60 50 40 30 20 10 0 Options Yes No Non respondents

Analysis: According to the table 8 % of respondents plan to invest in a Mutual Fund and 90 % do not plan to invest ,2% have not responded.

55 | P a g e

7.

When do you plan to invest?

3.5 3
respondents

2.5 2 1.5 1 0.5 0 Options

A month 1month 1 year After 1 year Non respondents

Analysis: According to the table 25% of respondents plan to invest in a month, 12.5% during a month to a year and 37.5% plan to invest after a year and 25% have not responded.

56 | P a g e

8. How likely are you to recommend investment in Mutual fund to your friend?

60 50
Respondents

Definitely recommend 40 30 20 10 0 Options Might not recommend Non respondents

Analysis: According to the above table 54 % of the respondents definitely will recommend about the investment of Mutual Funds. 44 % of the respondents might or might not recommend and 2% have not responded.

57 | P a g e

ANALYSIS PART 2
ULIPS

1. Are you aware of ULIP concepts in Life Insurance?

50.2 50 49.8
Respondents

49.6 49.4 49.2 49 48.8 48.6 48.4 Options Yes No

Analysis: According to the table 51% of respondents are aware of ULIP concepts and 49 % are not aware . This shows investors are still not aware of Unit Linked Insurance Plan .

58 | P a g e

2. In which companies have you invested?

70 60
Respondents

50 40 30 20 10 0 Options

LIC ICICI Pru Bajaj Allianz Aviva Life Insurance Reliance others

Analysis: According to the table 66% respondents have invested in LIC, 3 % have invested in ICICI PRU, 23 % in BAJAJ ALLIANZ, 9% in AVIVA and 1 % in others which include TATA AIG .

59 | P a g e

3.What made you to go for that company?

45 40 35
Respondents

Brand Name service customer relationship better policy option others Non respondents

30 25 20 15 10 5 0 Options

Analysis: According to the table 27% of respondents have invested in the company for the Brand name,15% have invested for the service provided, 39% have invested for the customer relationship the company maintains. 14% of respondents have invested for the better policy options available, 1% have invested for other reason and 4% have not responded.

60 | P a g e

4. What extra benefits would you like to have along with life cover?

60 50
respondents

Family income benefit Critical illness benefit Riders

40 30 20 10 0 Options Return Others Family income benefit & Critical illness benefit

Analysis: According to table the extra benefit customer would like to have is 53 % Want a family income benefit , 15% would like to have critical illness Benefit,1% would like to have riders ,8% would like to have more return and 2% would like other benefit and 21% would like to have family income benefit and critical illness benefit along with life cover.

61 | P a g e

5. What is your expectation from investment plan?

70 60 50
respondents

Security High return Minimum premium Easy claim

40 30 20 10 0 Options

Maximum sum assured Others Security and easy claim (Both)

Analysis: According to table 59% of respondents expect security, 3% expect high return and 1% expect minimum premium,28% expect easy claim and 2% expect maximum sum assured ,7% expect security and easy claim.

62 | P a g e

6. Are you aware of ULIP of TATA AIG? (If no go to question no 10)

100 90
Respondents

80 70 60 50 40 30 20 10 0 Options

Traditional insurance plan Retirement plan Life time plan Life link super Non respondents

Analysis: According to table 1% of customers are aware of traditional plan, 3% are aware of Retirement plans, 5% are aware of Life time and 2% are aware of Life Link Super, 89% have not responded.

63 | P a g e

7. Do you hold Unit linked insurance plan?

9 8 7
respondents

6 5 4 3 2 1 0 Options Yes No

Analysis: According to table 27.27% of customers hold Unit Linked Insurance Plan and 72.72 % do not hold Unit Linked Insurance Plan.

64 | P a g e

8.What did you like about Unit Linked Insurance Plan?

9 8 7
respondents

6 5 4 3 2 1 0 Options

Liquidity Withdrawal Flexibility Others Non respondents

Analysis: According to table 18.18% of customers liked liquidity and 9.09% others and 72.72 % have not responded.

65 | P a g e

9. How do you rank Unit linked plan of TATA AIG as compared to Mutual Fund?

9 8 7
respondents

6 5 4 3 2 1 0 Options

Good Satisfactory Non respondents

Analysis: According to table 18.18% of customer have ranked TATA AIG as good and 9.09% have ranked as satisfactory, 72.72% have not responded.

66 | P a g e

10. Do you have any plan of investing in ULIP in near future? (if no go to Q no.12)

100 90
Respondents

80 70 60 50 40 30 20 10 0 Options Yes No Non respondents

Analysis: According to the table 6 % of respondents plan to invest in a ULIP and 91 % do not plan to invest in near future, 3% have not responded .

67 | P a g e

11. When do you plan to invest?

4.5 4 3.5
respondents

3 2.5 2 1.5 1 0.5 0 Options

A month 1month 1 year After 1 year Non respondents

Analysis: According to the table 16.66% of respondents plan to invest in a month, 66.66% plan to invest after a year,16.66 % have not responded .

68 | P a g e

12. How likely are you to recommend investment in ULIP to your friends?
60 50
Respondents

40 30 20 10 0 Options

Definitely recommend Might not recommend Non respondents

Analysis: According to the above table 53 % of the respondents definitely will recommend about the investment of ULIP. 42 % of the respondents might or might not recommend and 5% have not responded.

69 | P a g e

CONCLUSION

70 | P a g e

OVER ALL FACTS AND FINDINGS

Mutual funds are essentially short to medium term products. The liquidity that these products offer is valuable for investors. ULIPs, in contrast, are now positioned as long-term products and going ahead, there will be separate playing fields for ULIPS and MFs, with the product differentiation between them becoming more pronounced. ULIPs now do not seek to replace mutual funds, they offer protection against the risk of dying too early, and also help people save for retirement. Insurance has to be an integral part of ones wealth management portfolio. ULIPs and mutual funds are, therefore, not likely to cannibalise each other in the long run. While ULIPs as an investment avenue is closest to mutual funds in terms of their functioning and structure, the first and foremost purpose of insurance is and will always be protection. The value that it provides cannot be downplayed or underestimated. As an instrument of protection, insurance provides benefits that no investment can offer. It is important for an investor to understand his financial goals and horizon of investment in order to make an informed investment decision. The decision to invest in either a mutual fund or a ULIP should depend on the time period of investment, individual financial goals as well as risk taking appetite, and its about time the industry and customer realize it.

Thus we can say that ULIPs are different from Mutual funds, and the basic difference between the two is the Insurance cover i.e. protection. Also the ULIPs are for long term investments and Mutual Funds long as well as short term.

71 | P a g e

LIMITATIONS

The time constraint was one of the major problems. The study is limited to the different schemes available under the mutual funds and ulips selected. The study is limited to selected mutual fund schemes and ulips The lack of information sources for the analysis part.

72 | P a g e

SUGGESTIONS AND RECOMMENDATIONS

SUGGESTIONS FOR MUTUAL FUNDS

funds advertisement and logo concept plays major role in awareness about the product. So mutual funds should also do aggressive ad campaign with the celebrity endorsement and innovative and creative logo should be there which matches the product and signifies the strength of the type.

foreign brands, mutual funds should focus on product awareness and product preference advertising.

actually not aware about mutual funds because of the lack of awareness of mutual funds, so the company should conduct such a awareness programs that the people should come to know about the schemes of mutual funds.

investors get to know about the schemes performing well.

brokers investors and corporate.

preferred scheme.

73 | P a g e

SUGGESTIONS FOR ULIPS

Most of the respondents are not aware of Unit Linked Insurance Plan; the awareness programme for non-investors should be increased by different medias like TV, Magazines, & News Paper.

The company has to provide proper training to advisors or marketing skills to improve the marketability of products.

Educate people by arranging a meeting or fair for investors and explaining about how ULIP works because investors are not aware of ULIP as an investment option and investors do not have the sufficient knowledge of the basic concepts of ULIP & about the operating of ULIP.

Complete information should be provided regularly to the advisors as well as to the investors to keep them updated about the developments.

Many of the investors say that they are ready to recommend about investment to friends, so the company should approach the investors through the distributors and explain about the Insurance schemes.

74 | P a g e

RECOMMENDATIONS TO THE COMPANY:-

to the pockets of the lower and middle income groups.

can invest in such policy

Value) amount but also the SA (sum Assured) i.e. guaranteed SA.

ced.

Additional

Support Required by the Agents from the Company:-

- Field support i.e. the company should provide a staff wherein they will get a field work done from them.
- The company should provide proper database to their agents. For the database the company can also have some tie-ups with some of the companies. - There should be monthly meetings held by the company for the agents wherein they can solve their problems and suggest the new ways for the marketing of products. - There should be separates Claim Settlement Cell so that the company as well as the agents do not face any problem while settlement of claims. - Also the company can support the agents by having some kind of publicity.

75 | P a g e

ANALYSIS:- Thus from this survey I would say that the company should not
only target the middle age and lower class group but also retired and pensioners.

Also the ULIPs are gaining lot of popularity but while taking these ULIPs one should take few measures as in:

1) To know to the ULIP plan, which of the insurance type is adjoined term or endowment. 2) While choosing of fund there should be balanced of equity and debt or if equity some small percentage of debt should be taken so that some returns are fixed. 3) And consult to the investment advisor.

76 | P a g e

CONCLUSION OF THE SURVEY

Life insurance sector is one of the key areas where enormous business potential exists. Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. The basic urge in man to secure himself against any form of risk and uncertainty .

After comparing Unit Linked life insurance plans and Mutual Fund it can be concluded that most of respondents are not aware of ULIP products of tata aig life.

There is the difference between expenses of a ULIP as compared with the expenses of a mutual fund. If investor are looking for a long-term investment avenue with an insurance cover , then ULIP is the product for them and if they are looking at a product that helps investor to focus purely on investment and returns over a medium term, then mutual fund is suitable.

77 | P a g e

CONCLUSION FOR COMPANY

Tata Aig is one of the worlds largest life insurance company.it has businesses spread out across the globe.it came to india 2001.it currently ranks top amongst the insurer in india. (source:annual premium provided by the company) The company faces a large amount of competition .To sustain itself it must promote its products through advertisement and improve its selling techniques.consumer must be aware of the new plans available at Tata Aig. The medium of advertising use could be internet since most of its competitiors use this tool to promote their products.the company must be promoted as an Indian company since consumer seem to have more trust in investing in Indian firms. The unit linked concept must be specifically promoted.the general perception of life insurance has to change in india before progress is made in this field.people should not be afraid to invest money in insurance and must use it as an effective tool for tax planning and long term savings.

Tata Aig could trap the rural markets with cheaper products and smaller policy terms.There are individual who are willing to pay small amounts as premium but the plans do not accept premium below a certain amount .it was usually found that a large number of males were insured compared to females.individuals below the age of 30 were interested in investment plans.this was a general conclusion drawn during prospecting clients.

78 | P a g e

BIBLIOGRAPHY

79 | P a g e

BIBLIOGRAPHY
A. BOOKS 1. Insurance Principles & Practices M.N.Misra S Chand Publications. 2. Insurance M.J.Mathew RBSA Publications. 3. Insurance Fundamentals, Environment & Procedures B.S.Bodla, M.C. Garg, K.P. Singh Deep & Deep Publications of 2003 4. Insurance Institute of India IC 33------S.J. Gidwani 5. Taxmann Life Insurance agent ---- P.R. Khanna , Taxmann Allied service pvt ltd B. NEWSPAPERS 1. Economic Times 2. Times Of India 3. ESCOLIFE PAPER on Insurance by Ritu Nanda Vol 2, Issue viii June, 2007. C. MAGAZINES 1. Money Simplified --Vol xxx ,Feb 2007 ULIPs how they fit in 2. Consumer Voice ---Vol 7, Issue 3 D. NEWSLETTER 1. Tata AIG Life Agency Newsletter Vol 1, Edition 6 , March ,2007. E. INTERNET www.tata-aig.com www.licofindia.com www.iciciprulife.com www.reliancelife.com www.moneycontrol.com www.personalfn.com www.et.com www.google.com F. CNBC TV 18 G. BOOKLET on the Orientation Programme of Employees at Tata AIG H. Policy Brochures of Tata AIG, ICICI Prudential, Reliance Life & LIC.

80 | P a g e

ANNEXURE

81 | P a g e

QUESTIONNAIRE
This information is for our internal use only,will not be disclose to any other organization/department
COMPARATIVE ANALYSIS OF MUTUAL FUND AND MARKET LINKED INSURANCE PLANS

Name Telephone Occupation Marital status single or married

Address Age Annual income (age of child if applicable)

SECTION A 1.Which of the following investment options would you prefer?

a)Bank fixed deposit b)Postal savings c)Shares and bonds d)Mutual funds e)Insurances policies f)Others g)Bank FD and postal savings

82 | P a g e

2. Have you invested in the following? (Please tick)(if yes, go to Q no.4) a)Mutual funds b)Insurance policies c)Mutual funds and insurance policies both

3.What is the reason for not investing? a)Uncertainty b)High cost c)Not interested in investment d)Others e)Non respondents

4. Do you think investing in Mutual Fund is worthy? a) Yes b)No c) No response

5.

According to you why an individual should invest in Mutual Fund?

a) To multiply money b) Moderate return with minimum risk c)To have a faster rate of growth d)Others e)Non respondent

83 | P a g e

6. Do you have any plan of investing in near future? (if no go to Q no.8) a)Yes b)No c)Non respondent

7. When do you plan to invest? a) A month b)1 month - 1 year c)After 1 year d)Non-respondent

8. How likely are you to recommend investment in Mutual fund to your friend? a)Definitely recommend b)Might not recommend c)Non respondent

84 | P a g e

SECTION B 1. Are you aware of ULIP concepts in Life Insurance? a)Yes b) No 2. In which companies have you invested? a)LIC b)ICICI PRU c)BAJAJ ALLIANZ d)AVIVA LIFE e)Others

3.What made you to go for that company? a)Brand Name b)Service c)Customer Relationship d)Better Policy Option e)Others f)Non Respondent

85 | P a g e

4. What extra benefits would you like to have along with life cover? a)Family Income Benefit b)Critical Illness Benefit c)Riders d)Returns e)Others f)Family Income Benefits And Critical Illness Benefits Both

5. What is your expectation from investment plan? a)Security b)High Return c)Minimum Premium d)Easy Claim e)Maximum Sum Assured f)Others g)Security And Easy Claim

86 | P a g e

6. Are you aware of ULIP of TATA AIG ? (If no go to question no 10) a)Traditional Insurance Plan b)Retirement Plan c)Life Time Plan d)Life Link Super e)Non-Respondent

7. Do you hold Unit linked insurance plan? a)Yes b)No

8.What did you like about Unit Linked Insurance Plan? a)Liquidity b)Withdrawal c)Flexibility d)Others e)Non-Respondent

87 | P a g e

9. How do you rank Unit linked plan of TATA AIG LIFE as compared to Mutual Fund? a)Good b)Satisfactory c)Non-Respondents

10. Do you have any plan of investing in ULIP in near future? (if no go to Q no.12) a)Yes b)No c)Non Respondents

11. When do you plan to invest? a)A Month b)1 Month- 1year c)After 1 Year d)Non-Respondents

12. How likely are you to recommend investment in ULIP to your friends? a) Definitely Recommend b)Might Not Recommend c)Non-Respondents

88 | P a g e