SUMMER TRAINING PROJECT

COMPARITIVE ANALYSIS OF ULIP PLANS WITH REFERNCE TO IDBI

FORTIS AND BIRLA SUNLIFE

Undertaken at

“ IDBI FORTIS LIFE INSURANSE COMPANY ”

Submitted in the partial fulfillment for the award of the degree

of
BACHELOR OF BUSINESS ADMINISTRATION

Under the Supervision

Submitted by

and Guidance of SNEHASHIS

GANGULI

PROF ASIM SAHORE

(0502131707) BBA (E)

SESSION: 2009 - 2010

TECNIA INSTITUTE OF ADVANCED STUDIES

(Approved by AICTE, Ministry of HRD, Govt. of India)

 Affiliated To Guru Gobind Singh Indraprastha University, Delhi
INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI-
110085
E-Mail:director@tecniaindia.org, Website: www.tecniaindia.org
Fax No: 27555120, Tel: 27555121-24
PREFACE

Risk and uncertainties are part of life’s great adventure; Accidents, Illness,
Theft & Natural Calamities they all are pillars of this world. To overcome these
risks and mishaps this project describes the policies and schemes of IDBI FORTIS
and BIRLA SUNLIFE Insurance Companies. The way these companies provide
different benefits to the policyholder. Insurance is Cooperative venture where risk
and uncertainties are shared by many. Now days a lot is being done to create
awareness among the Insuring Public about the Importance of Insurance in life. In
this direction IRDA has planned to create awareness through Electronic and Print
media.

A study of Life Insurance describes the meaning of various policies, comparison and
analysis and changing market scenario..
 ACKNOWLEDGEMENT

This report has been made possible through direct and indirect support
of various people from whom I wish to express my appreciation and
gratitude.

I would like to thank Dr.A.K SRIVASTAV (Director,TIAS) for giving me an

opportunity to work on a valuable project and for his kind support.

Mankind cannot survive in solitude. I owe my sincere and whole

hearted thanks to MR. ASIM SAHORE for constantly guiding me and
tackling variety of hurdles with implicit patience throughout my
research project and whose deep involvment and interest in project
infused in me great inspiration and confidence in taking up this study
in right direction without their overall guidance and help the project
may not have seen to be completed.
 CHAPTER 1 - RESEARCH PROBLEM AND
PURPOSE

IDBI Fortis Life Insurance Co Ltd, is a joint venture between three

leading financial conglomerates – India’s premier development and
commercial bank, IDBI, India’s leading private sector bank, Federal
Bank and Europe’s premier Bancassurer, Fortis, each of which enjoys a
significant status in their respective business segments. In this
venture, IDBI owns 48% equity while Federal Bank and Fortis own 26%
equity each. IDBI Fortis launched its first set of products across India in
March 2008, after receiving the requisite approvals from the Insurance
Regulatory Development Authority (IRDA). Today, we offer our services
through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and
partners. At IDBI Fortis we endeavor to deliver products that provide
value and convenience to the customer. Through a continuous process
of innovation in product and service delivery we intend to deliver
world-class wealth management, protection and retirement solutions to
Indian customers.

IDBI Fortis Life Insurance Co. Ltd is a joint venture of IDBI Bank, Federal
Bank (India) and Fortis Insurance International. The Certificate of
Registration has been issued by the Insurance regulator IRDA.

Insurance Company on 19th December 2007. According to the

agreement, IDBI will have a 48-per cent stake in the venture, while
Fortis and Federal Bank would have 26-per cent stake each. While IDBI
and Federal Bank are major Indian banks, Fortis has the expertise of
bancasurance across global markets. It is one of the best names in the
insurance business in Europe and has successful joint ventures in
various Asian countries. IDBI Fortis Life Insurance has become 18th life
insurer in India.

Founded in 1956, IDBI Ltd. is India’s premier industrial development

bank. Today, it is amongst India’s most famous commercial banks
which provide a wide range of innovative products and services. IDBI
Bank has around 490 branches and more than 600 ATMs all over India.
IDBI is a also a part of development activities, as it has been
instrumental in sponsoring the development of key institutions
involved in India’s financial sector, such as, the Securities and
Exchange Board of India (SEBI), National Stock Exchange of India
Limited (NSE) and National Securities Depository Ltd (NSDL).

About their Heritage

IDBI Bank Ltd. continues to be, since its inception, India’s premier
industrial development bank. Created in 1956 to support India’s
industrial backbone, IDBI Bank has since evolved into a powerhouse of
industrial and retail finance. Today, it is amongst India’s foremost
commercial banks, with a wide range of innovative products and
services, serving retail and corporate customers in all corners of the
country from over 538 branches and more than 921 ATMs. The Bank
offers its customers an extensive range of diversified services including
project financing, term lending, working capital facilities, lease finance,
venture capital, loan syndication, corporate advisory services and legal
and technical advisory services to its corporate clients as well as
mortgages and personal loans to its retail clients. As part of its
development activities, IDBI Bank has been instrumental in sponsoring
the development of key institutions involved in India’s financial sector –
such as the Securities and Exchange Board of India (SEBI), National
Stock Exchange of India Limited (NSE) and National Securities
Depository Ltd.

Federal Bank is one of India’s leading private sector banks, with a

dominant presence in the state of Kerala. It has a strong network of
over 600 branches and 600 ATMs spread across India. The bank
provides over four million retail customers with a wide variety of
financial products. Federal Bank is one of the first large Indian banks to
have an entirely automated and interconnected branch network. The
Bank operates on the core banking platform and is RTGS/ NEFT enabled
through which it offers state-of-the-art technology enabled products
and services. In addition to interconnected branches and ATMs, the
Bank has a wide range of services like Internet Banking, Mobile
Banking, Tele Banking, Any Where Banking, debit cards, online bill
payment and call centre facilities to offer round the clock banking
convenience to its customers. The Bank has been a pioneer in
providing innovative technological solutions to its customers and the
Bank has won several awards and recommendations.

Federal Bank is one of India’s leading private sector banks. It has a

wide spread network in India, but its dominant presence can be seen in
the state of Kerala. Federal Bank is one of the first large Indian banks,
having an entirely automated and interconnected branch network. The
Bank also provide a wide range of services, such as, internet banking,
mobile banking, tele banking, any where banking, debit cards, co-
branded credit cards, online bill payment and call centre facilities to
offer complete banking convenience to its customers.
Fortis is a European financial services provider which is engaged in
banking and insurance. It has its presence in over 50 countries. Fortis
offers a comprehensive package of products and services in
collaboration with intermediaries and through other distribution
partners. Fortis is counted among the 20 largest financial institutions in
Europe. IDBI Bank, Federal Bank and Fortis Insurance International with
their expertise, now came together to provide the insurance benefits to
the customers in India. Below are the few insurance policies which are
provided by IDBI Fortis Life Insurance Co. Ltd.

Fortis is an international insurance group composed of Insurance

Belgium, a leader in life and non-life insurance in Belgium distributing
its insurance products through the network of Fortis Bank and
independent insurance brokers and Insurance International with
subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-life),
Germany, Turkey, Russia and Ukraine, and joint ventures in
Luxembourg (Life), Portugal, China, Malaysia, Thailand and India.

HIERARCHY AND VARIOUS DEPARTMENTS

IDBI has various departments in following states and cities of India
like DELHI (NCR), MUMBAI, CHANDIGARH , RAJASTHAN , KERALA ETC.

The various departments are having various sub sections and

managers working under each departments starting from branch
manager – agency manager , assistant manager , sale manager, sr.
sale manager , sr. executive manager, relationship manager who is
working with all the functional managers of the branches. The
recruitment of the managers of the right position is depends upon the
work experience gain by the them while working in the position and on
the basis of this they are recruited. The work experience gain helped
them to be recruited in higher positions.

FOR EXAMPLE- A person having work experience of 1-4 years is eligible

for post of sale manager similarly on the basis of tenure of work
experience the different posts are available to the applicants.

- PRODUCTS PROFILE.
1) WealthsuranceTM: Insured Wealth Plans to grow wealth
under a protective cover.

Wealthsurance offers you Insured Wealth Plans. They allow you to

create, build and manage wealth by giving several choices and great
flexibility so that your plan meets your specific needs. You can decide
how you wish to save so that it suits your savings habit. You can
choose how your money is invested so that you can grow wealth as per
your investment preferences. What is even better, Wealthsurance
protects your wealth plans with insurance benefits so that your wealth-
building efforts remain unaffected in unforeseen events and your
financial goals can still be achieved.

What is Wealthsurance ?

Wealthsurance combines wealth creation and insurance

protection into one powerful financial solution. Unlike other
investment alternatives, it allows you to ensure that your goals of
wealth creation are achieved even in the event of serious illness,
accidents, disablement or death.

Wealthsurance is for those who will live-

Life insurance is sometimes thought of as for those who might

die, but Wealthsurance is for those who will live. Usually
life insurance products provide benefits upon death, but
Wealthsurance is designed to also give Living Benefits to ensure
your well-being in your own lifetime.

Set up Wealthsurance Plan for your loved ones

You can ask for endorsement of your Wealthsurance Plan for
the benefit of your wife or children or any combination of
them under the Married Women’s Property Act. You can also
indicate the percentage share of each of them in the Plan. Once
endorsed, the Plan will be exclusively for the benefit of the
named beneficiaries.

2) What is the HomesuranceTM Protection Plan?

Homesurance Protection Plan* is a mortgage reducing term

assurance plan, which provides insurance cover equal to the
outstanding balance of your home loan. In the unfortunate event
of death of the home loan borrower, the insurance cover enables
repayment of the home loan liability so that it does not become
a burden to the family.

3) What is the IDBI Fortis HomesuranceTM Plan?

Homesurance is a mortgage reducing term plan which

offers protection to your home from your home loan. The Plan
provides a cover equal to the outstanding balance#1 of your
home loan against any unfortunate events that may occurto
you
4) What is the IDBI Fortis bondsurance TM Plan?

BondsuranceTM: Get guaranteed return on your investment, life

insurance cover and tax benefits . Bondsurance is a single premium
plan where you need to make a one-time investment. You can choose a
maturity period of 5 or 10 years. At the end of the chosen period, you
will receive a guaranteed maturity amount. In case of death before the
maturity date, a Death Benefit which is also guaranteed will be paid.
Thus you can get life insurance cover while earning an assured return
on your investment. The premium you pay is eligible for deduction of
tax under Sec 80C of the Income Tax Act. Also, the Maturity Benefit and
the Death Benefit are tax-free under Sec 10(10D) of the Income Tax
Act.

5) IDBI Fortis Termsurance Grameen Suraksha

IDBI Fortis Termsurance Grameen Suraksha is a low-cost, simple term

individual insurance plan targeted at the rural population.
It is an ideal plan to protect your family members in the event of
unfortunate demise of the major income earner.

The key features of Termsurance Grameen Suraksha:

Premium: You can choose a fixed single premium of Rs 49.08, Rs 98.17,

Rs 147.25 or Rs 196.33 according to your budget.

Eligibility: This plan is available for men and women from age 18 up to
age 50.

Term: This plan has a fixed term of three years.

Death Benefit: In the event of unfortunate death of the insured person
during the policy term, we will pay a death benefit of Rs 5,000, Rs
10,000, Rs 15,000 or
Rs 20,000 depending on the single premium paid.

Suicide Exclusion: We will not pay any death benefit if the insured
person commits suicide within 12 months from the commencement
date of the policy.
Maturity Benefit: This is a pure term insurance plan and this plan has
no maturity benefit.

Surrender Benefit: This plan has no surrender benefit.

Loan: This plan has no loan facility nomination At any time before the
expiry of the policy, you may nominate a person to whom we will pay
the death benefit. If the nominee is a minor, you need to appoint a
person to hold the benefit until the nominee’s 18th birthday.

Free Look Period: You are entitled to a free look period for 15 days from
the day you receive this policy. If before the end of this time you do not
wish to continue this policy, then you may request us in writing to
cancel the policy. We will refund the premium paid by you after
deducting a proportionate risk premium for the insurance cover we
provided to you during that time. We will also deduct any medical
examination costs and stamp duty charges incurred by us in respect of
your policy.

Tax Benefits: Premiums paid are eligible for tax benefits under Section
80C and death benefit is tax-free under Section 10(10D) of the Income
Tax Act, 1956.
6)IDBI Fortis Termsurance Grameen Suraksha

Vacation to a tropical island, pursuing your hobby or flying abroad to

be with your family and friends. Whatever may be your idea of having
a good time, the one thing common to all, is that it requires money.
The earlier generations may not have had a formal retirement plan, but
they had relatively fewer consumption needs. It was rare to find people
who had shifted through several jobs in the course of an active career.
As a result, pensions and gratuities issued by their employers were
deemed sufficient. Times have changed now, and in most
contemporary industries, few employers provide for a lifelong pension.
This is coupled with the high incidence of lifestyle diseases like
diabetes, blood pressure and heart problems. The improved medical
technology has increased longevity, but along with it the cost of
healthcare has increased manifold.
Thus managing finances during retirement would be extremely tough,
if one hasn’t planned for retirement. The best way to enjoy the good
times in your golden years would be, to build your finances in advance
for retirement.
IDBI Fortis RetiresuranceTM Pension Plan is an effective instrument that
will help you achieve this objective. It not only allows you to
conveniently save for the golden years but also offers you a wide
choice of investment options to grow and multiply your wealth. The
Plan is extremely flexible and offers several choices so as to suit your
savings habit and investment risk preferences.
The IDBI Fortis RetiresuranceTM Pension Plan can thus be your ideal
investment partner in ensuring a happy retirement.
7) IDBI Fortis IncomesuranceTM

Immediate Annuity ne of the best financial decisions that you can take
today is to
plan for adequate income after retirement. The three key concerns
during your golden years will be increasing healthcare cost, higher life
expectancy and rising prices.
All you need is a steady flow of income which can take care of
all your concerns. Presenting the IDBI Fortis
IncomesuranceTMImmediate Annuity which gives you guaranteed
incomethroughout your life.

Key features of IDBI Fortis IncomesuranceTM

Immediate Annuity
• Three annuity options to choose from
• Regular income commences as early as age 20 years
• Choose your annuity payment modes – monthly, quarterly, half-
yearly, or yearly
• Your annuity payments are credited directly to your bank account.

8) IDBI Fortis InsuranceBasketTM

Protection is useful in many ways. The insurance benefits we offer

under IDBI Fortis InsuranceBasket can protect you in the event of
death, terminal illness, diagnosis of major diseases, sickness requiring
hospitalisation, accidental death and serious accidental injuries and
disablement from engaging in any occupation to earn income. When
you make a wealth plan, protecting the plan with insurance benefits
ensures that the plan can still be achieved if life throws surprises.
When you take a loan, protecting the loan with insurance benefits
ensures that the loan does not become a burden if the unforeseen
happens. Our package of benefits is designed to also offer Living
Benefits. Living Benefits help you to overcome crises during your
lifetime so that you are financially well taken care of in the case of any
health crises.
We offer life, terminal illness, health, accident and disablement
insurance benefits as part of IDBI Fortis InsuranceBasket. You can
choose what you need and pay for only those benefits. With these
benefits, you can ensure that:
• your family is not affected financially and your financial goals are still
met in the event of death or accident
• you are protected against high medical expenses and loss of earning
capacity in the event you suffer a serious illness, undergo
hospitalisation or become disabled.

IDBI Fortis InsuranceBasket is designed to offer

• Protection for wealth plans so that your wealth-building efforts are

unaffected by unforeseen events
• Protection of loan liabilities so that debt does not become a burden
when life throws surprises
• A whole package of Living Benefits so that you are well cared for in
the event of health crises, accidents or disablement.
 - FUTURE PLANS.

IDBI Fortis announces Rs 250cr capital infusion

• Continues its aggressive growth as one of India’s fastest growing life

insurance companies • Network
expansion to target 100 branches
Giving a boost to its business expansion plans, IDBI Fortis Life
Insurance has announced a capital infusion of Rs 250 cr from its
shareholders as per their share holding pattern. IDBI Fortis launched its
operations in March 2008 with an initial capital of Rs 200 cr leading
with their innovative product, WealthsuranceTM, which has been its
flagship product helping it race to over Rs. 2000 Cr of Sum Assured
with over Rs 250 Cr of First Year Annual Premiums and over 62,000
policies issued in record time. The company is targeting a network
expansion drive to set up 100 branches across the country. In addition,
IDBI Fortis also sells its products through the more than 1100 branches
of its shareholder banks, IDBI and Federal Bank. IDBI Fortis Life
Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier
development and commercial bank, Federal Bank, one of India’s
leading private sector banks and Fortis Insurance International, a
multinational insurance giant based out of Europe. IDBI Bank owns
48% equity while Federal Bank and Fortis own 26% equity each. Visit
www.idbifortis.com to know more. IDBI Fortis has managed to launch
an array of innovative products from its stable. Its flagship product,
WealthsuranceTM Foundation Plan is a unique combination that is
termed as an Insured Wealth Plan that aims to provide people a
growing wealth plan protected by the benefits of insurance. With
comprehensive investment choices, protected by powerful insurance
options, all presented with a reasonable charge structure,
Wealthsurance is a one-stop solution to a customer’s wealth
buildingplans. The product is designed to ensure that the hard-earned
money that is invested is not susceptible to unforeseen circumstances.
WealthsuranceTM offers investment choices such as Guaranteed
Return Fund, Capital Guaranteed Fund, Monthly Interest Account,
Equity Funds, Debt Funds, Asset Allocator Funds etc.
ensuring that the customer would find all his investment requirements
satisfied with this one powerful product. The powerful insurance
benefits of WealthsuranceTM ensure that a customer’s wealth plan is
not affected by unforeseen events that may strike them.
With the recent popularity for guaranteed return products, the
company launched a unique product, BondsuranceTM that offers tax-
free assured returns with life cover. With the innovative
HomesuranceTM Protection Plan, customers can now cover the
changing liability that comes with a typical floating rate home loan,
along with an optional cover where they can pay off the home loan
even in the unfortunate event of any major disease or other
unforeseen circumstances. “The branch expansion drive is going on in
full swing and we already have over 30 branches up and running in
various states,” said Mr G.V. Nageswara Rao, MD and CEO, IDBI Fortis
Life Insurance. “IDBI Fortis is committed to providing comprehensive
investment and insurance solutions through innovative products, well-
trained sales force and high standards of service.” The fresh capital
infusion will also help IDBI Fortis in meeting the solvency requirements
and expanding operations due to increased sales besides launching
new products and branches.

INDUSTRY PROFILE
Some of theThe insurance sector in India has come a full circle from
being an open competitive market to nationalization and back to a
liberalized market again.

Tracing the developments in the Indian insurance sector reveals the

360-degree turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in

India in the year 1818 with the establishment of the Oriental Life
Insurance Company in Calcutta.

Important milestones in the life insurance business in India

are:

• 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:

• 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

In India, insurance has a deep-rooted history. It finds mention in the

writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and
Kautilya ( Arthasastra ). The writings talk in terms of pooling of
resources that could be re-distributed in times of calamities such as
fire, floods, epidemics and famine. This was probably a pre-cursor to
modern day insurance. Ancient Indian history has preserved the
earliest traces of insurance in the form of marine trade loans and
carriers’ contracts. Insurance in India has evolved over time heavily
drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the
establishment of the Oriental Life Insurance Company in Calcutta. This
Company however failed in 1834. In 1829, the Madras Equitable had
begun transacting life insurance business in the Madras Presidency.
1870 saw the enactment of the British Insurance Act and in the last
three decades of the nineteenth century, the Bombay Mutual (1871),
Oriental (1874) and Empire of India (1897) were started in the Bombay
Residency. This era, however, was dominated by foreign insurance
offices which did good business in India, namely Albert Life Assurance,
Royal Insurance, Liverpool and London Globe Insurance and the Indian
offices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of

Insurance Companies in India. The Indian Life Assurance Companies
Act, 1912 was the first statutory measure to regulate life business. In
1928, the Indian Insurance Companies Act was enacted to enable the
Government to collect statistical information about both life and non-
life business transacted in India by Indian and foreign insurers
including provident insurance societies. In 1938, with a view to
protecting the interest of the Insurance public, the earlier legislation
was consolidated and amended by the Insurance Act, 1938 with
comprehensive provisions for effective control over the activities of
insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies.

However, there were a large number of insurance companies and the
level of competition was high. There were also allegations of unfair
trade practices. The Government of India, therefore, decided to
nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising the

Life Insurance sector and Life Insurance Corporation came into
existence in the same year. The LIC absorbed 154 Indian, 16 non-
Indian insurers as also 75 provident societies—245 Indian and foreign
insurers in all. The LIC had monopoly till the late 90s when the
Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial

Revolution in the west and the consequent growth of sea-faring trade
and commerce in the 17th century. It came to India as a legacy of
British occupation. General Insurance in India has its roots in the
establishment of Triton Insurance Company Ltd., in the year 1850 in
Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd,
was set up. This was the first company to transact all classes of
general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the
Insurance Associaton of India. The General Insurance Council framed a
code of conduct for ensuring fair conduct and sound business
practices.

In 1968, the Insurance Act was amended to regulate investments

and set minimum solvency margins. The Tariff Advisory Committee was
also set up then.
 In 1972 with the passing of the General Insurance Business
(Nationalisation) Act, general insurance business was nationalized with
effect from 1st January, 1973. 107 insurers were amalgamated and
grouped into four companies, namely National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance
Company Ltd and the United India Insurance Company Ltd. The
General Insurance Corporation of India was incorporated as a company
in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey

extending to nearly 200 years. The process of re-opening of the
sector had begun in the early 1990s and the last decade and more
has seen it been opened up substantially. In 1993, the Government set
up a committee under the chairmanship of RN Malhotra, former
Governor of RBI, to propose recommendations for reforms in the
insurance sector.The objective was to complement the reforms
initiated in the financial sector. The committee submitted its report in
1994 wherein , among other things, it recommended that the private
sector be permitted to enter the insurance industry. They stated that
foreign companies be allowed to enter by floating Indian companies,
preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report,

in 1999, the Insurance Regulatory and Development Authority (IRDA)
was constituted as an autonomous body to regulate and develop the
insurance industry. The IRDA was incorporated as a statutory body in
April, 2000. The key objectives of the IRDA include promotion of
competition so as to enhance customer satisfaction through increased
consumer choice and lower premiums, while ensuring the financial
security of the insurance market.
 The IRDA opened up the market in August 2000 with the invitation
for application for registrations. Foreign companies were allowed
ownership of up to 26%. The Authority has the power to frame
regulations under Section 114A of the Insurance Act, 1938 and has
from 2000 onwards framed various regulations ranging from
registration of companies for carrying on insurance business to
protection of policyholders’ interests.

In December, 2000, the subsidiaries of the General Insurance

Corporation of India were restructured as independent companies and
at the same time GIC was converted into a national re-insurer.
Parliament passed a bill de-linking the four subsidiaries from GIC in
July, 2002.

Today there are 14 general insurance companies including the ECGC

and Agriculture Insurance Corporation of India and 14 life insurance
companies operating in the country.

The insurance sector is a colossal one and is growing at a

speedy rate of 15-20%. Together with banking services, insurance
services add about 7% to the country’s GDP. A well-developed and
evolved insurance sector is a boon for economic development as it
provides long- term funds for infrastructure development at the same
time strengthening the risk taking ability of the country

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

and is growing at
the rate of 15-20 per cent annum. Together with banking services, it
contributes to about 7 per cent to the country's GDP. Insurance is a
federal subject in India and Insurance industry in India is governed by
Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and
General Insurance Business (Nationalisation) Act, 1972, Insurance
Regulatory and Development Authority (IRDA) Act, 1999 and other
related Acts.

The origin of life insurance in India can be traced back to 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. It
was conceived as a means to provide for English Widows. In those days
a higher premium was charged for Indian lives than the non-Indian
lives as Indian lives were considered riskier for coverage. The Bombay
Mutual Life Insurance Society that started its business in 1870 was the
first company to charge same premium for both Indian and non-Indian
lives. In 1912, insurance regulation formally began with the passing of
Life Insurance Companies Act and the Provident Fund Act.

By 1938, there were 176 insurance companies in India. But a number

of frauds during 1920s and 1930s tainted the image of insurance
industry in India. In 1938, the first comprehensive legislation regarding
insurance was introduced with the passing of Insurance Act of 1938
that provided strict State Control over insurance business.

Insurance sector in India grew at a faster pace after independence. In

1956, Government of India brought together 245 Indian and foreign
insurers and provident societies under one nationalised monopoly
corporation and formed Life Insurance Corporation (LIC) by an Act of
Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore.

The (non-life) insurance business/general insurance remained with the

private sector till 1972. There were 107 private companies involved in
the business of general operations and their operations were restricted
to organised trade and industry in large cities. The General Insurance
Business (Nationalisation) Act, 1972 nationalised the general insurance
business in India with effect from January 1, 1973. The 107 private
insurance companies were amalgamated and grouped into four
companies: National Insurance Company, New India Assurance
Company, Oriental Insurance Company and United India Insurance
Company. These were subsidiaries of the General Insurance Company
(GIC).

In 1993, the first step towards insurance sector reforms was initiated
with the formation of Malhotra Committee, headed by former Finance
Secretary and RBI Governor R.N. Malhotra. The committee was formed
to evaluate the Indian insurance industry and recommend its future
direction with the objective of complementing the reforms initiated in
the financial sector.

Structure

• Government stake in the insurance Companies to be brought

down to 50%.
• Government should take over the holdings of GIC and its
subsidiaries so that these subsidiaries can act as independent
corporations.
• All the insurance companies should be given greater freedom to
operate.

Competition

• Private Companies with a minimum paid up capital of Rs.1billion

should be allowed to enter the industry.
• No Company should deal in both Life and General Insurance
through a single Entity.
 • Foreign companies may be allowed to enter the industry in
collaboration with the domestic companies.
• Postal Life Insurance should be allowed to operate in the rural
market.
• Only one State Level Life Insurance Company should be allowed
to operate in each state.

Regulatory Body

• The Insurance Act should be changed.

• An Insurance Regulatory body should be set up.
• Controller of Insurance should be made independent.

Investments

• Mandatory Investments of LIC Life Fund in government securities

to be reduced from 75% to 50%.
• GIC and its subsidiaries are not to hold more than 5% in any
company.

Customer Service

• LIC should pay interest on delays in payments beyond 30 days

• Insurance companies must be encouraged to set up unit linked
pension plans.
• Computerisation of operations and updating of technology to be
carried out in the insurance industry.

Insurance sector in India was liberalized in March 2000 with the

passage of the Insurance Regulatory and Development Authority
(IRDA) Bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign
ownership. There is a 26 percent equity cap for foreign partners in an
insurance company. There is a proposal to increase this limit to 49
percent. The opening up of the insurance sector has led to rapid
growth of the sector. Presently, there are 16 life insurance companies
and 15 non-life insurance companies in the market. The potential for
growth of insurance industry in India is immense as nearly 80 per cent
of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be well below
international standard

Objective of the study

..To analyze IDBI FORTIS and there product(wealthassuranse).

.. To analyze BIRLA SUNLIFE and their ULIP plan.

..To analyze the services being provided in the WEALTHSURANCE

scheme to the customers in IDBI fortis.
..To analyze how WEALTHSURANCE will add extra benefit to the
customers by opting it.
.. To find out the customer preference and opinions about the ULIP
plans.
..To compare between ULIP plan of IDBI FORTIS AND
BIRLA SUNLIFE on the basis of return, charges etc.

SIGNIFICANCE OF STUDY

Most of us might have heard of ULIP

Rather most of we might have heard your parents talking about an
insurance cover?
If your answer is yes, you are at the RIGHT place!
With 90% of t he insurance policies being sold as unit linked insurance
Policies, it becomes even more important to study them.

What are Unit-Linked Insurance Plans (U LI Ps)?

Unit-linked insurance plans, ULIP, are distinct from the more familiar
‘with profits’
policies sold for decades by the Life Insurance Corporation.‘With
profits’ policies are called so because investment gains (profits) are
distributed to policyholders in the form of a bonus announced every
year. ULIP also serve the same function of providing insurance
protection against death and provision of long-term savings, but they
are structured differently. In ‘with profits’ policies, the insurance
company credits the premium to a common pool called the ‘life fund,’
after setting aside funds for the risk premium on life insurance and
management expenses. Every year, the insurer calculates how much
has to be paid to settle death and maturity claims. The surplus in the
life fund left after meeting these liabilities is credited to policyholders’
accounts in the form of a bonus.

In a ULIP too, the insurer deducts charges towards life insurance

(mortality charges), administration charges and fund management
charges. The rest of the premium is used to invest in a fund that
invests money in stocks or bonds. The policyholder’s share in the fund
is represented by the number of units. The value of the unit is
determined by the total value of all the investments made by the fund
divided by the number of units. If the insurance company offers a
range of funds, the insured can direct the company to invest in the
fund of his choice. Insurers usually offer three choices — an equity
(growth) fund, balanced fund and a fund which invests in bonds.
In both ‘with profits’ policies as well as unit-linked policies, a large part
of the first year premium goes towards paying the agents’
commissions.

Risks associated with ULIP

ULIPS as the name suggests are directly linked with the investments
made by the insured. Though he does not have a direct say in this but
he does offer his choice in the form of investment. With stock markets
soaring high a few months back, ULIP were offering a good rate of
return, but now with a sudden downfall of the stocks, ULIP are bound to
become negative investments.
At present, a policy-holder cannot understand the growth of his
investments vis-à-vis other funds in the market, since there is no
benchmark to measure one fund against the other. Usually a policy-
holder could ask his investment in a ULIP to be, for example, 55 per
cent in equity and 45 per cent in debt. These components can be
mixed according to his risk-taking ability. An investor, therefore, would
have to look at quarterly statements, where the fund would be
compared with benchmarks.
However, this may not be a true representation of the NAV, as the ULIP
could be a mix of debt, liquid and equity investments. The reality is
that most of the ULIP take more than 5 years to break even. Policies
where the costs are 65 percent and up wards have not even recovered
the principal despite t he strongest bull market we have ever
witnessed.

Why do insurers p refer ULIP ?

Insurers love ULIP for several reasons. Most important of all, insurers
can sell these policies with less capital of their own than what would be
required if they sold traditional policies. In traditional ‘with profits’
policies, the insurance company bears the investment risk to the
extent of the assured amount .In ULIP, the policyholder bears most of
the investment risk. Since ULIP are devised to mobilize savings, they
give insurance companies an opportunity to get a large chunk of the
asset management business, which has been traditionally dominated
by mutual funds.
Which is better, unit-linked or ‘with profits ’?

The two strong arguments in favor of unit-linked plans are that — the
investor
Knows exactly what is happening to his money and second, it allows
the investor to Choose the assets into which he wants his funds
invested. A traditional ‘with profits,’ on the other hand, is a black box
and a policyholder has little knowledge of what is happening. An
investor in a ULIP knows how much he is paying towards mortality,
management and administration charges.
He also knows where the insurance company has invested the money.
The investor gets exactly the same returns that the fund earns, but he
also bears the investment risk. The transparency makes the product
more competitive. So if you are willing to bear the investment risks in
order to generate a higher return on your retirement funds,
ULIP are for you.
Traditional ‘with profits’ policies too invest in the market and generate
the same returns prevailing in the market. But here the insurance
company evens out returns to ensure that policyholders do not lose
money in a bad year. In that sense they are safer.
ULIP also offer flexibility. For instance, a policyholder can ask the
insurance company to liquidate units in his account to meet the
mortality charges if he is unable to pay any premium installment. This
eats into his savings, but ensures that the policy will continue to cover
his life. ULIP investment perspective
In the short run, when market exuberance carries everyone on the
money train, fund managers are its primary drivers “Funds are
invested in stocks wit h a long -term perspective. Since the investor
decides h is risk appetite in a policy, we manage funds based on a
conservative basis,” says Sushi Krishnan, chief investment officer Bajaj
Aliens Life in Pine. He says that a fund manager would invest in stocks
that give a compounded growth rate of 20-25 per cent return over a
period of 15-20 years.
Scope of the Study

Each and every project study along with its certain objectives also has
scope for future. And this scope in future gives to new researches a
new need to research a new project with a new scope. Scope of the
study not only consist one or two future business plan but sometime it
also gives idea about a new business which becomes much more
profitable for the researches then the older one. Scope of the study
could give the projected scenario for a new Successful strategy with a
proper implementation plan. Whatever scope I observed in my project
are not exactly having all the features of the scope which I described
above but also not lacking all the features.

- Research study could give an idea of network expansion for

Capturing more market and customer with better services
And lower cost, with out compromising with customer benefit.

- In future customer requirements could be added with the Product and

services for getting an edge over competitors.

- Consumer behavior could also be used for the purpose of Launching a

new product with extra benefits which are required by customers for
their investments.
- Factors which are responsible for the performance for IDBI
Can also be used for the modification of the strategy and Product for
being more profitable.
 REVIEW OF LITERATURE

Insurance industry(ULIP)

It’s often hard to take a decision, especially when it includes forking

out large sums of money towards investing in a market, which could
take a Downward turn any day. After all, you do not want to end up
digging your own grave. So a couple of months ago, when financial
experts began saying that people should look at buying stock at good
valuations, you may have pushed the thought to the back of your
mind.

But now, with the semblance of stability returning to the government

and the markets slowly inching their way up, the desire to invest has
begun to set in. However, with many still wary of direct exposure to the
market, investors have begun showing an interest in Unit Linked
insurance Plan (ULIP), which combines the benefits of a life insurance
policy with possibility of reaping the best out of upward movement in
the markets. But is this a good time for the retail investor to buy a
ULIP? Sunday ET has the answers.

The right time

if you’re wondering whether you’ve missed up on the right opportunity
to invest in ULIP, rest assured that your fears are unfounded. According
to most financial planners, every time is a good time to invest in a
ULIP, including the current scenario where markets are in recovery
mode.

In fact, Veer Sardesai, CEO of Sardesai Finance, says that on a

psychological level, it is easier for an investor to park his funds now
than earlier. “It is difficult for the lay investor to muster the courage to
invest in equity at the bottom of the bear cycle (although that is the
best time). Hence, today is a good enough time to commit to long-term
equity investments,” he points out to a large extent, however, the
choice of whether you want to invest in a ULIP or not, actually depends
on your expectation from the product. Most financial planners reiterate
that a ULIP is predominantly an insurance product with linkages to the
market and should not be used to time the market.

If your priority is to make short-term profits, then you are more likely to
realize this goal by investing in a mutual fund or fixed deposits than a
ULIP. According to Manik Nangia, corporate vice-president and head of
product management at Max New York Life Insurance, “The sure shot
way to get good returns from the ULIP, is to remain invested in the
market for about 10-20 years, if not more.” The rationale is simple and
works on the basis of averaging. The longer you remain invested, you
have the benefit of leveraging the losses of bear runs against the gains
made during the bull runs.

However, if you are comparing investing in a ULIP with investing

directly in the market or in mutual funds, Sardesai warns that the initial
charges of investing in a ULIP are fairly higher and may not be the
most efficient way to invest in stock market
For instance, up to 30% of your premium in the first year could go
towards premium allocation charge and administration charges but this
decreases in the subsequent years. In a mutual fund, however, the
charges are extremely low in the initial phases. “Also, if you were
looking purely at insurance, then it would make more sense to invest in
a term insurance plan than a ULIP,” adds Zankhana Shah, founder and
owner of Money Care, financial planning

IDBI FORTIS

IDBI Fortis Life Insurance Co. Ltd is a joint venture of IDBI Bank, Federal
Bank (India) and Fortis Insurance International. The Certificate of
Registration has been issued by the Insurance regulator IRDA to this
Insurance Company on 19th December 2007. According to the
agreement, IDBI will have a 48-per cent stake in the venture, while
Fortis and Federal Bank would have 26-per cent stake each. While IDBI
and Federal Bank are major Indian banks, Fortis has the expertise of
bancasurance across global markets. It is one of the best names in the
insurance business in Europe and has successful joint ventures in
various Asian countries. IDBI Fortis Life Insurance has become 18th life
insurer in India.

Founded in 1956, IDBI Ltd. is India’s premier industrial development

bank. Today, it is amongst India’s most famous commercial banks
which provide a wide range of innovative products and services. IDBI
Bank has around 490 branches and more than 600 ATMs all over India.
IDBI is a also a part of development activities, as it has been
instrumental in sponsoring the development of key institutions
involved in India’s financial sector, such as, the Securities and
Exchange Board of India (SEBI), National Stock Exchange of India
Limited (NSE) and National Securities Depository Ltd (NSDL).

Federal Bank is one of India’s leading private sector banks. It has a

wide spread network in India, but its dominant presence can be seen in
the state of Kerala. It has around 550 branches and 450 ATMs spread
across the country. Federal Bank is one of the first large Indian banks,
having an entirely automated and interconnected branch network. The
Bank also provide a wide range of services, such as, internet banking,
mobile banking, tele banking, any where banking, debit cards, co-
branded credit cards, online bill payment and call centre facilities to
offer complete banking convenience to its customers.

Fortis is a European financial services provider which is engaged in

banking and insurance. It has its presence in over 50 countries. Fortis
offers a comprehensive package of products and services in
collaboration with intermediaries and through other distribution
partners. Fortis is counted among the 20 largest financial institutions in
Europe. IDBI Bank, Federal Bank and Fortis Insurance International with
their expertise, now came together to provide the insurance benefits to
the customers in India. Below are the few insurance policies which are
provided by IDBI Fortis Life Insurance Co. Ltd.
Homesurance

• Homesurance Protection Plan

• Homesurance Plan

Wealthsurance
Bondsurance
Birla Sun Life Insurance Company Limited

Birla Sun Life Insurance pioneered the unique Unit Linked Life
Insurance Solutions in India.

Within 4 years of its launch, BSLI has cemented itsposition as a

leading player in the Private Life Insurance Industry.

There has been focus on Investment Linked Insurance Products,

supported with protection products to maintain leadership in product
innovation.

Multi Distribution Channels- Direct Sales Force, Alternate Channels

and Group offering convenient channels of purchase to customers.

Web-enabled IT systems for superior customer services. First to

have issued policies over the Internet.

Corporate governance and a high degree of transparency in all

business practices and procedures.
 First to have an operational Business Continuity Plan. Strong
fundamentals based on the Aditya Birla group's local insight and Sun
Life financials's global expertise

Vision
To create long term value along with market leadership

Mission
To help people mitigate risks of life, accident, health and money at all
stages and under all circumstances

Enhance the financial future of our customers, including enterprises.

Insuranse plans
Protection

Birla Sun Life Insurance High Networth Plan Birla Sun Life
Insurance Term Plan Birla Sun Life Insurance Premium Back Term
Plan

Saving

Birla Sun Life Insurance Platinum Plus Birla Sun Life Insurance
Guaranteed Bachat Plan Birla Sun Life Insurance Money Back Plus
Plan Birla Sun Life Insurance Gold-Plus II Birla Sun Life
Insurance Saral Jeevan Plan Birla Sun Life Insurance Supreme-Life
Birla Sun Life Insurance Dream Plan Birla Sun Life Insurance
ClassicLife Premier Birla Sun Life Insurance SimplyLife Birla Sun
Life Insurance PrimeLife Premier Birla Sun Life Insurance PrimeLife
 Birla Sun Life Insurance Flexi Cash Flow Birla Sun Life Insurance
Flexi Save Plus Birla Sun Life Insurance Flexi Life Line Birla Sun
Life Insurance Single Premium Bond

Health Solution

BSLI Health Plan BSLI Universal Health Plan

Retirement

Birla Sun Life Insurance Secure 58 Plan Birla Sun Life

Insurance Freedom 58 Birla Sun Life Insurance Flexi SecureLife
Retirement Plan

Children

Birla Sun Life Insurance Children's Dream Plan

Rural

Birla Sun Life Insurance Bima Suraksha Super Birla Sun Life
Insurance Bima Dhan Sanchay Birla Sun Life Insurance Bima
Kavach Yojana
 CURRENT SCENARIO

IDBI Fortis Wealthsurance Foundation Plan**

Contribute money in a flexible way that suits your savings habit

Choose (a) Single Premium or (b) Regular Premiums. Pay premiums for
a limited period and enjoy benefits for a longer period.
Pay additional top-up premiums whenever you want. Grow wealth
faster and get tax benefits.

Choose how your money is invested from a wide choice of investment

options, based on your return expectations and risk tolerance
Choice of (a) Assured Fixed Returns, (b) Variable Returns linked to
market performance, (c) Returns linked to market but with protection
of capital.
Investment options available for risk-averse as well as risk taking
investors
Choice of stocks, bonds and money market funds

Decide how you wish to manage your investments

Switch amongst investment options any time and manage your
portfolio, free of charges and taxes
Leave management of your portfolio entirely to us, if you do not have
the time or inclination

Flexibility to choose the insurance benefits you need

You can choose the amount of life insurance and terminal\ illness
benefit you need
Get Optional Insurance Benefits on suffering major diseases,
hospitalization, accidental death or disablement
Premiums can be waived in case of your death or disablement, so that
your plans are well protected

Withdraw funds in case of need, after three years

Make your Wealthsurance TM Plan quickly and easily

Choose a Ready Plan for typical needs
Develop a Custom Plan for special needs

Get tax benefits on contributions and benefits

Tax-free income helps grow wealth faster

Option to create exclusive funds for loved ones

Change your Plan as your needs change

Flexibility to change premiums and benefits to suit your changing
needs
**hereinafter referred to as Wealthsurance

Single Premium and Top-up Premiums

Pay premiums in a flexible manner: Build wealth easily with convenient

savings
Wealthsurance allows you to save in a manner that best suits your
savings habit. It is very flexible in premium contributions. You can save
in a disciplined manner and also get flexibility to contribute additional
amounts wheneveryou have extra money. Wealthsurance allows you to
pay premiums just one time or for a limited period and yet
enjoyinsurance benefits for a long period. Flexible premiums allow you
to build wealth in a convenient manner and also get tax benefits.

Flexible Payment options

Eligibility Conditions
Any person over the age of 18 years can apply to us to take a
Wealthsurance Plan. You can designate yourself or any other person (in
whom you have insurable interest) as the Insured Person. The Insured
Person should be at least one month old but not more than 65 years
old. Age of the Insured Person cannot exceed 75 years at the end of
Plan Term. Wealthsurance allows you to pay premiums and get tax
benefits for yourself, while the insurance benefits can cover your
spouse or child.
Where the Insured Person is a minor, the policy will vest in the minor
upon attaining majority at the age of 18 years.

IDBI Fortis InvestmentBasketTM: Tools for building your wealth

The power of Wealthsurance is provided by the wide choice of
investment options it offers. They give you great flexibility
in how you build and manage wealth. The full range of investments we
offer is called the IDBI Fortis InvestmentBasket.
You can choose one or more options from the basket based on your
return expectations and risk tolerance. You can also
switch and change your investment options from time to time, as you
wish.

The powerful InvestmentBasketTM

Amount of
Regular Premium
(per year)

Eligibility Conditions

Any person over the age of 18 years can apply to us to take a

Wealthsurance Plan. You can designate yourself or any other person (in
whom you have insurable interest) as the Insured Person. The Insured
Person should be at least one month old but not more than 65 years
old. Age of the Insured Person cannot exceed 75 years at the end of
Plan Term. Wealthsurance allows you to pay premiums and get tax
benefits for yourself, while the insurance benefits can cover your
spouse or child.
Where the Insured Person is a minor, the policy will vest in the minor
upon attaining majority at the age of 18 years.

Regular Premium
The investment options we offer are designed to meet the needs of all
types of investors. You can choose the options that best suit your
needs of safety, liquidity and returns.

Fixed Return Options

We offer investment options that give fixed assured returns for those
who prefer to get fixed or floating rate of return on their investment.

Capital Guaranteed Options

We also offer options where we guarantee the face value of each unit
on the specified maturity date. A part of the money is invested in stock
markets and your returns depend upon the market performance. These
are suitable for those who want to invest in equity markets, without
fear of loss of principal.

Market Fund Options

We offer a range of funds that invest in stocks, bonds and money
market. The returns on these funds are dependent upon the market
performance. Returns and risk vary by the type of fund.

Manage yourself or leave it to us

We offer two ways in which you can manage your investments:

Do-it-yourself: You can decide to invest in the various options and

change them from time to time, as you wish. This is suitable when you
have a specific idea where you wish to invest or you have the time and
inclination to manage your investments from time to time.
Leave-it-to-us: Alternatively, you can leave it entirely to us to manage
your investment strategy from time to time by simply indicating how
much risk you are prepared to take. We give you a choice of three risk
levels: Cautious, Moderate and Aggressive.
Equity exposure is restricted, based on the risk level you choose
Fixed Return Options: When you want fixed, assured returns

Types of Investment Options

We offer five types of Investment Options: (a) Monthly Interest Account
which gives interest at a declared rate on your account balance, (b)
Guaranteed Return Funds which give a fixed,assured returns for a
specified period, (c) Capital
Guaranteed Funds which ensure that your principal is protected even
while investing in stocks, (d) Market Linked Funds where you can
choose to invest in stocks, bonds or money market and get market
returns, (e) Asset Allocator Funds where you can leave the
management of your funds entirely to us, by simply indicating the level
of risk you are prepared to take.
Investment Option How does it work?
A. Monthly Interest Account
Risk: Low
Monthly Interest Account gives you fixed interest on the account
balance. You can choose to deposit any proportion or all of your
premiums into it, whether regular or Top-up Premiums.
Your Account will earn interest at the declared rate on the daily
outstanding balance. The balance in your Account, consisting of
premiums deposited and interest earned, is available to switch into any
other investment option and for withdrawals as permitted.
Interest Rate: At the beginning of each month, IDBI Fortis will declare a
credit rate by way of interest for this Account. The interest rate will be
declared out of the estimated income from the underlying segregated
portfolio of investments after (a) appropriation of fund management
charge of 1%, and
(b)transfers to/from a smoothing reserve. Your account balance will
grow each day at the declared interest rate. Rates declared for the
Account are available at www.idbifortis.com
The purpose of Monthly Interest Account is to provide a smoothed
return to the investors from out of the investment income of the
underlying portfolio. For this purpose, a reserve for smoothing of
interest rate will be maintained.

Investment Pattern: The Monthly Interest Account is a segregated fund

which will invest 100% of the money in fixed income investments
including government securities, treasury bills, bank deposits,
certificates of deposit, corporate securities, commercial paper,
securitised papers, structured products, money market instruments,
etc. The fund may use derivatives to meet its objective to the extent
permitted by the applicable guidelines.

A. Monthly Interest Account

Risk: Low
Monthly Interest Account gives you fixed interest on the account
balance. You can choose to deposit any proportion or all of your
premiums into it, whether regular or Top-up Premiums.
Your Account will earn interest at the declared rate on the daily
outstanding balance. The balance in your Account, consisting of
premiums deposited and interest earned, is available to switch into any
other investment option and for withdrawals as permitted.
Interest Rate: At the beginning of each month, IDBI Fortis will declare a
credit rate by way of interest for this Account. The interest rate will be
declared out of the estimated income from the underlying segregated
portfolio of investments after (a) appropriation of fund management
charge of 1%, and (b) transfers to/from a smoothing reserve. Your
account balance will grow each day at the declared interest rate. Rates
declared for the Account are available at www.idbifortis.com
The purpose of Monthly Interest Account is to provide a smoothed
return to the investors from out of the investment income of the
underlying portfolio. For this purpose, a reserve for smoothing of
interest rate will be maintained.
Investment Pattern: The Monthly Interest Account is a segregated fund
which will invest 100 of the money in fixed income investments
including government securities, treasury bills, bank deposits,
certificates of deposit, corporate securities, commercial paper,
securitised papers, structured products, money market instruments,
etc. The fund may use derivatives to meet its objective to the extent
permitted by the applicable guidelines

B. Guaranteed Return Funds

Risk: Low
Guaranteed Return Funds give you an assured, fixed return for a
specified period. Each fund matures on a specified date and carries a
minimum Guaranteed Maturity Value for each unit. Each fund is
available for investment for a limited period after the opening date
during which units are allotted at the Net Asset Value. Upon maturity of
the fund, you will receive the Net Asset Value as on the maturity date
or the Guaranteed Maturity Value for the units you hold, whichever is
higher.

Available Funds: The available funds and the guaranteed maturity

value for each unit that they carry are declared by us from time to
time. You can select a fund from those available at the time you pay
the premium. You can also switch into them when they are available.
The available funds are given at
www.idbifortis.com

Liquidity: Guaranteed Return Funds mature on the specified date.

However, if you wish, you can redeem them before maturity at the Net
Asset Value and the guarantee will not apply.
Investment Objective: Guaranteed Return Funds are segregated
closed-ended funds with specific maturity date and a minimum
guaranteed maturity value per unit. They aim to generate a fixed
return by investing in fixed income instruments with maturities close to
the maturity date of the fund and follow a buy-and-hold strategy.

Investment Pattern: These funds invest up to 100% of the moneys in

fixed income investments including government securities, treasury
bills, bank deposits, certificates of deposit, corporate securities,
commercial paper, securitised papers, structured products and money
market instruments.
The fund may use derivatives to meet its objective to the extent
permitted by the applicable guidelines.

Fund Management Charge: A fund management charge of 1.5% p.a.

will be appropriated while computing the Net Asset Value of the
Guaranteed Return Funds
Capital Guaranteed Options: You can invest in stocks without losing the
principal

C. Capital Guaranteed Funds

Risk: Medium
Capital Guaranteed Funds guarantee the return of at least the face
value of each unit on the specified maturity date. Returns are,
however, not guaranteed and depend upon the performance of the
equity portfolio of the fund and the stock market.
Available Funds: Capital Guaranteed Funds are segregated closed-
ended funds with specified maturity date. Each fund is available for
investment for a limited period after the opening date during which
units are allotted at the Net Asset Value. Upon maturity, you receive
the Net Asset Value as on the maturity date or the face value of each
unit you hold, whichever is higher.
The available funds are declared by IDBI Fortis from time to time. You
can select a Capital Guaranteed
Fund from those available at the time you pay the premium. You can
also switch into them when they are available. The available funds are
given at www.idbifortis.com
Investment Strategy: Capital Guaranteed Funds are managed using
capital protection techniques including portfolio insurance strategies
and manage the exposure to equity and debt with a view to obtaining
equity exposure consistent with capital protection and the guaranteed
maturity value.
The funds will implement ‘ratcheting’ strategy as decided by IDBI
Fortis. Under ‘ratcheting’, when the Capital Guaranteed Funds have
made returns over and above the amount needed to provide for
guaranteed value, the returns may be ‘locked-in’ by investing in debt
so that you are assured of those returns even if the market moves
adversely in the future. ‘Ratcheting’ may reduce future exposure to
equity.
Capital Guaranteed Funds may also use derivatives to meet their
objectives to the extent permitted by applicable guidelines.

Investment Pattern: Capital Guaranteed Funds will manage exposure to

fixed income investments and equities as stated below:
Range of Debt exposure: 40%-100%
Range of Equity exposure: 0-60%

Liquidity: Capital Guaranteed Funds mature on the specified date.

However, if you wish you can also redeem them before maturity at the
Net Asset Value, but the guarantee will not apply.
Fund Management Charge: The funds carry a fund management
charge of 2.25% p.a. which is applied before computing the Net Asset
Value.

Market Fund Options: For investing in stocks, bonds or money market

Market Linked Funds are similar to mutual funds. They are open-ended
funds which invest in equity, debt or money market as per their
investment objectives. The Net Asset Value (NAV) of each fund is
published on a daily basis.
You can invest your premiums into, switch into or switch out of any
fund at any time at the NAV. Your gain or loss is the difference between
the value at which you invested and the value at which you exited. In
Market Linked Funds, the
NAV depends on the market value of the underlying investments. The
expected return and risk vary by the Fund.
We offer the following funds:

D.Market Linked Funds

The powerful InvestmentBasketTM

FUND Investment Objective Investment Pattern Allocation

Investment option How does it work?
E. Asset Allocator
Funds In Asset Allocator Funds, our fund managers choose how much
to invest in stocks, bonds or money market, depending upon their view
on the markets.
Leave-it-all-to-us: Asset Allocator Funds are suited to those who wish to
leave the management of their Investment strategy entirely to us.

Risk Profile: We manage the funds based upon your risk preference.
You can choose amongst three risk levels: Cautious, Moderate and
Aggressive. The equity component is restricted, based on the risk
profile chosen by you.

Structure: Asset Allocator Funds are funds of funds which invest in the
other investment options within
IDBI Fortis InvestmentBasket including the Market Linked Funds. Equity
component may go up to 25% in Cautious, 50% in Moderate and 100%
in Aggressive.

Liquidity through Withdrawals and Surrender

Wealthsurance allows you to build wealth over the long term. At the
same time, we recognise that you might have need for funds before
maturity of the Plan. We offer liquidity with (a) Partial Withdrawals, (b)
Surrender

Partial Withdrawals

From out of the Fund Value in your Investment Account, you can
withdraw money for any purpose by making Partial Withdrawals,
subject to the following restrictions:
• No withdrawals are permitted in the first three years.
• After three years, you can make Withdrawals as follows:
(a) You can make Withdrawals whenever you need and as many times
as you desire.
(b) Each Partial Withdrawal should be for a minimum of
Rs10,000 When you withdraw, you should always leave as minimum
balance the higher of (a) Top-up Premiums paid in the past three years
or (b) Annual Regular Premium Amount in the case of a Regular
Premium Plan or Rs20,000 in the case of a Single Premium Plan.

No withdrawals are permitted if the Insured Person

below 18 years.

Charges
There are no charges for Partial Withdrawals. However,
IDBI Fortis reserves the right to introduce a Partial Withdrawal charge
not exceeding 7.5% of the amount withdrawn, with the prior approval
of the IRDA.

Reduction in Death and Terminal Illness Benefits

If the Insured dies or is diagnosed for terminal illness before the age of
60, the Sum Insured will be reduced by any Partial
Withdrawals made in the preceding two years.
After age 60 of the Insured Person, the Sum Insured will be reduced by
the total amount of all Partial Withdrawals made after age 58 onwards.
Surrender
When you wish to terminate your Wealthsurance Plan before maturity,
you can surrender your Plan. However, you cannot surrender your
policy in the first three years of the Plan.
Upon surrender, we will pay you the Fund Value less Surrender Charge.
The Surrender Charge is a percentage of the Single
Premium or Annual Regular Premium that you have chosen in is the
Plan according to the table alongside

Surrender Charge as a percentage of Single Premium or

Annual Regular Premium

BIRLA SUNLIFE
FLEXI CASH FLOW PLAN

Highlights
Lump sum payment at regular intervals

Tax free payment at important milestones in life

Guaranteed return of 3% net of policy charges

Choice of 3 investment fund options

Entry Age 13 to 65 years of age

Maturity Age 75 years

Minimum Sum Assured Rs.1,00,000

Durations 10, 15, 20 or 25 years

Premium Paying Period 10, 15, 20 years or Regular Premium

Payment Period. In case of 25 years term, the premium payment
period will be 20 years or regular or 15 years.
Premium Payment Frequency Annually, Semi-annually, Quarterly (for
annual premium more than Rs.20,000 only), Monthly(through ECS only)
.
Premium Payment Mode Cash (upto Rs. 20,000), Cheque, Credit Card,
Salary Deduction, ECS, Direct debit

Top up Premium You can top up$ the fund whenever you have
additional savings during the tenure of the policy. The minimum
amount of top ups will be Rs. 5,000. The maximum amount of top up in
any Policy Year will be Rs. 50,000 or the Annual Premium whichever is
higher.

The Sum Assured in the plan will increase if the cumulative top up
amount exceeds 25% of the Annual premium paid till date. The
additional Sum Assured will be 125% of the excess top up premium
and is subject to the administrative and underwriting rules of the
company.
Guaranteed Returns / A minimum guaranteed return of 3% p.a. applies
on premiums and top-up premium, net of policy charges and survival
benefits. This total will constitute the Guaranteed Fund Value. The
guaranteed returns are applicable in case of all exits

Survival benefits / Regular Pay-outs These benefits are payable at

the end of every 5 policy years.
The amount that will be available is the minimum of the 'Guaranteed
Fund' at the time or the 'Percentage of the Sum Assured' applicable for
your policy. The percentages are as under:
• 30% for policy with duration of 10 years
•25% for policy with duration of 15 years
•20% for policy with duration of 20 years
•15% for policy with duration of 25 years

Maturity Benefits The higher of the ‘Fund Value’ or the ‘Guaranteed

Fund Value’ (based on 3% net returns)

Amount due to nominee in event Of death of the life insured Higher of

‘Fund Value’ or ‘Guaranteed Fund Value’ or Sum Assured less all
applicable Partial Withdrawals in the 24 months preceding the death of
the life insured.

Where the policy is bought on or prior to the 1st birthday of the life
insured, higher of the Fund Value or the Guaranteed Fund Value is
payable to the policy owner in the event of death of life insured within
the first policy year.

In case of death at the age of 60 years or above then the Sum Assured
will be reduced by the applicable Partial Withdrawals made since the
life insured attained the age of 58.
Partial Withdrawals

In a year two Partial Withdrawals are free of charge.

Partial Withdrawals are allowed after three policy years or on attaining

the age of 18 years (in case of minors) whichever is later.

The Partial Withdrawal is subject to the condition that the minimum

balance in the Fund Value after the Partial Withdrawal is equal to the
'Guaranteed Fund' or 'One Annual Policy Premium plus Surrender
Charges' applicable in that year, whichever is higher

Surrender Benefits The policy can be surrendered any time during

the tenure of the policy. The surrender charges will be zero after the
4th policy year. In case of surrender in the first 3 policy years the
benefits will be paid out only after the 3rd policy year

Free Look Period You will have the right to return your policy to us
within 15 days from the date of receipt of the policy. We will pay the
Fund Value plus all charges levied till date (excluding the Fund
Management Charge) once we receive your written notice of
cancellation (along with reasons thereof) together with the original
policy documents

Tax Benefits Under Section 80C and 10(10D) of the Income Tax Act,
1961**
ALLOCATON CHARGES

Pay period
Policy Year 10 Pay 15-pay or greater
1 54.6% 65%
2 7.5% 7.5%
3 7.5% 7.5%
4+ 5.0% 5.0%
The Premium Allocation Charge for top up and on Underwriting Extra (if
any) will be 2.0 percent. The Premium Allocation Charge is guaranteed
for the duration of the contract. There is no Premium Allocation Charge
on Rider Coverage Premium.
POLICY ADMINISTRATION CHARGES

Policy Administration Charge

Life Insurance Coverage Sum Assured
Policy For First Rs. On Amount in excess of
Year 1,00,000 Rs 1,00,000
1 5.52 2.88
2 17.88 15.24
3+ 5.52 2.88

Birla Sun Life Insurance PrimeLife

In this policy, the investment risk in investment portfolio is borne by
the policyholder
Highlights
1. Hassle free one time investment with top up option
2. Guaranteed additions at regular intervals
3. Choice of 8 Investment Fund Options

Prime Life

Life is full of surprises. Which is why the PrimeLife Single Premium Plan
is the best way to prepare for any unforeseen eventualities you may
face in the future.

PrimeLife Single Premium Plan gives you dual benefits: the security of
life insurance and investment returns. Moreover you're saved the
hassle of regular investments and your returns on investment are
maximized. Birla Sun Life Insurance PrimeLife is thus tailormade to suit
any of your financial needs

Unique Benefits

-The plan is a unit linked non participating plan

-The plan offers a choice of nine Investment Fund Options to choose

from depending on your risk profile and the flexibility to switch
between Funds twice a year without any additional cost.
-A one-time premium payment with the option to top up your Fund
Value whenever you have additional savings.

-Guaranteed Addition in the form of additional units added to the Fund

Value at the end of 10 years and every 5 years thereafter.

-High liquidity in the form of partial withdrawals and surrender

benefits.

-Death benefits which are favorable at all times to the customer

(higher of Sum Assured or Fund Value

The plan

Particulars Detailed Benefits of BSLI PrimeLife

Entry Age 30 days - 60 years
Max. Maturity Age 100 yrs
Minimum Duration 40 years
Premium Term Single Pay
Minimum Premium Rs.20,000
150% of the single premium amount,
Sum Assured
minimum Sum Assured will be Rs.30,000
Top-ups Whenever you have additional savings
during the tenure of the policy, you can top
up the Investment Fund. The minimum
 amount of top ups will be Rs. 10,000. The
maximum amount of Top Up Premium in
any Policy Year will be the Policy Premium or
Rs. 5,00, 000 whichever is lower. The life
insurance coverage will increase if the
cumulative top up paid till date exceeds
25% of the single premium amount. The
additional Sum Assured will be 125% of the
excess top up premium and is subject to the
prevailing administrative and underwriting
rules of the company. Any top up premium
made during the period of the contract
cannot be withdrawn for three years from
the date of payment of that top up premium
except the top up premiums paid in the last
three years of the policy tenure.
Investment Fund Assure, Protector, Builder, Enhancer,
Options Creator and Magnifier, Maximiser, Multiplier.
Higher of 'Fund Value' or 'Sum Assured' less
all applicable Partial Withdrawals in the 24
months preceding the death of the life
Amount due to
insured. In the event of death of the
nominee in event of
Insured, till the age of five only Fund value
death of the life
is paid. In case of death at the age of 60 yrs
insured
or above, the Sum assured will be reduced
by the applicable Partial Withdrawals made
since the life insured attained the age of 58.
On Maturity Fund Value
Surrender Benefits The policy can be surrendered any time
during the tenure of the policy. The
surrender charges will be zero after the 4th
 policy year. In case of surrender in the first
3 policy years the benefits will be paid out
only after the 3rd policy year.
Guaranteed Benefits Guaranteed additions in the form of
additional units will be added to the Fund
Value at the end of 10th Policy year and
every 5 years thereafter while your policy is
in effect.

The guaranteed additional units will be

equivalent to 2% of the average Fund Value
at the preceding sixty monthly policy dates.
Partial Withdrawal Partial withdrawals can be made anytime
after three Policy Years or when the Life
Insured attains 18 years of age , whichever
is later. The minimum Partial Withdrawal
amount is Rs.10,000. The maximum
amount of Partial Withdrawal is any amount
subject to the condition that the minimum
Fund Value is Rs.25,000 and Surrender
Charges applicable in the year of Partial
Withdrawal or the sum of Top Up Premiums
made, if any, in the preceding 3 years,
whichever is higher.
You can switch between Investment Funds
Switch between
anytime during the Policy term. In a year
Investment Funds
two switches are free*
 The Administration Charges will vary as per the premium
bands and are given below:
Premium Band Charges per month
Rs.20,000 - Rs. 49,999 Rs. 35
Rs.50,000 - Rs. 99,999 Rs 25
Rs.1,00,000 & above Rs 20
This Charge cannot exceed Rs. 100 per month.
 Birla Sun Life Insurance Platinum Plus Plan

This plan is a unit linked, non-participating, insurance plan with

A policy term of 10 years.

A premium paying term of 3 years.
An innovative investment fund - Platinum Plus Fund III.
Full liquidity after three policy years to meet any cash needs.

Eligibility

Entry Age of Life Insured: 18 to 70 years.

Minimum Annual Premium: Rs. 50,000.
Minimum Sum Assured: 5 x Annual Premium.

Premiums & Sum Assured

Rs. 50,000 per annu

Rs. 25,000 half-yearly m
Rs. 15,000 quarterly; or
Rs. 10,000 per month (3 monthly installments required at issue)
The risk profile of the fund is high and the asset allocation will be

0-40% in Money Market & Cash;

0-100% in Debt Instruments & Derivatives; and
0-100% in Equities & Equity Related Securities

Your Guaranteed Maturity Unit Price

The Guaranteed Maturity Unit Price starts at 10 on the first business

day, which is 15th May, 2009. Until 16th August, 2016 the Guaranteed
Maturity Unit Price is increased on subsequent business days to the
then prevailing unit price of Platinum Plus Fund III, if higher.

As a result, the Guaranteed Maturity Unit Price at maturity will equal

the highest unit price of Platinum Plus Fund III recorded on all the
business days between 15th May, 2009 and 16th August, 2016.

Policy Charges

Premium Allocation Charge

Premium allocation charge is deducted from your premium when

received and before invested in the investment fund. It is guaranteed
to never increase.
The charge is 10% of premium in the 1st year and 4% of premium in
subsequent years.

Fund Management Charge

The daily unit price of the investment fund is adjusted to reflect the
fund management charge of 1.50% p.a.. We may increase this charge
at any time subject to a maximum of 2.00%.

Policy Administration Charge

The policy administration charge will be deducted monthly by

canceling units from the investment fund. This charge is per 1000 of
Sum Assured and is guaranteed to never increase for the first three
years, after which it can be increased by no more than 5% per annum
since inception.

The annual charge is Rs. 720 on the first 1000 Sum Assured in all years
plus Rs. 6 per 1000 Sum Assured in years 1 to 3 only.
Mortality Charge

The mortality charge will be deducted monthly by canceling units from

the investment fund. This charge is per 1000 of Sum at Risk (Sum
Assured less Fund Value) and is guaranteed to never increase.

The annual charge for sample ages of the life insured is provided below
for your reference. Please visit our website or ask your financial advisor
for the rates applicable to us
Attained Age 25 35 45 55 65
Female 1.023 1.162 2.385 6.441 15.920
Male 1.083 1.363 3.110 8.571 21.060

Surrender Charge

The surrender charge is applied if and when you surrender your policy
in the first 3 policy years. The surrender charge as a percentage of the
annual premium is 16%, 13% and 10% for policy year 1, 2 and 3
respectively. This charge is guaranteed to never increase

Revival Charge

The charge for policy revival is Rs. 100. We may increase this charge at
any time in the future up to Rs. 1,000 per revival.

Partial Withdrawals
Partial withdrawals can be made after three complete policy years. The
minimum withdrawal amount is Rs. 5,000. The maximum partial
withdrawal you can make is the excess, if any, of the Fund Value over
Rs. 30,000. All partial withdrawals are free of charge
 COMPARISION

1. FLEXIBILITY WEALTHSURANC OFFERS FLEXIBILTY IN CHOISE OF

INVESTMENT OPTION AS COMPAIRED TO FLEXI CASH FLOW, PLANTIUM
PLUS,PRIME LIFE

2. CHARGES:
WEALTHSURANCE (ALLOCATION CHARGES) 3% TO 4% IN CASE OF
REGULAR PREMIUM & 1.5% IN CASE OF REGULAR ONE
FLEXI CASH FLOW (ALLOCATION CHARGES) 5%TO 65%
PRIME LIFE 20 TO 35 Rs PER MONTH
PLANTIUM PLUS (ALLOCATION CHARGES) 4 % TO 10%

3. RETURNE
IN ARENTEE RETURNE FUND OF WEALTHSUARANCE PROVIDE A
GURANTEE RETURNE OF 9% TO 10%, FLEXI CASH FLOW PROVIDE 3%,
PRIME LIFE PROVIDE 150% OF SINGLE PEMIUM, PLANTIUM PLUS
PROVIDE 5X OF ANNUAL PREMIUM

4. PARTIAL WITHDRAWL
IN WEALT HSURANSE EXEPT THE FIRST PREMIUM ANY ONE CAN IYH
DRAL THE REST AMOUNT
FLEXI CASH FLOW (The Partial Withdrawal is subject to the condition
that the minimum balance in the Fund Value after the Partial
Withdrawal is equal to the 'Guaranteed Fund' or 'One Annual Policy
Premium plus Surrender Charges' applicable in that year, whichever is
higher)
PLANTIUM PLUS (Partial withdrawals can be made after three complete
policy years. The minimum withdrawal amount is Rs. 5,000. The
maximum partial withdrawal you can make is the excess, if any, of the
Fund Value over Rs. 30,000. All partial withdrawals are free of charge)
PRIME LIFE (The minimum Partial Withdrawal amount is Rs.10,000. The
maximum amount of Partial Withdrawal is any amount subject to the
condition that the minimum Fund Value is Rs.25,000 and Surrender
Charges applicable in the year of Partial Withdrawal or the sum of Top
Up Premiums made, if any, in the preceding 3 years, whichever is
higher).
 RESEARCH METHEDOLOGY

TYPE OF RESEARCH

The result of the project is completely based upon the research of the
facts and figures collected through the different ways of research..
Exploratory or Formulative research: Exploratory research is
conducted to clarify the ambiguous problems.

SOURCE OF DATA

In the data collection method, we have collected both

primary and secondary data to meet our objective.
Primary data:
The primary data was collected by a survey based on the
questionnaire. It was formulated on the basis of information gathered
by me with the help of Mr. SATISH and Mr. RAJESH JHA who provide
useful guidelines and objective of my study.

Secondary data:
The secondary data was collected from books, publications and
internet.
Research Approach:
The required information in the form of data is collected through
different method, with the help of personal interview through
questionnaire method and with the information provided by company
and internet.

Sampling plan:
There is a stage where the planning is done about the sample
units, sample size, sampling procedures, etc.

Sampling units:
This means, which is to be surveyed. So as mention earlier that
the sample units is potential peoples...

Sample size:
The sample size means how many peoples should be surveyed.
So that total sample size is 100, which cover from different area of
Delhi

Data collection method:

Personal interview method is used for collection of primary data in

the form of questionnaire from respondents. And through web
 DATA ANALYSIS & INTERPRETATION

Q.1what is your Occupation ?

SI. NO OCCUPATION NO OF RESPONDENTS
1 BUSINESS 30
2 AGRICULTURE 5
3 EMPLOYEE 25
4 PROFESSIONAL 40

40

30

20
RESPONDENTS

10

0
business agriculture emloyee professional

INTERPRETETION:
The professionals are higher as compared to others business man and
employees

Q.2 To which sector you will give preference while investing at present?
SI NO SECTORS NO OF RESPONDENTS
1 INSURANSE 20
INVESTMENT PLAN
2 STOCK MARKET 30
3 GOVT. DEPOSIT 10
4 BANK DEPOSIT 15
5 MUTUAL FUND 25

30
25
20
15
10 RESPONDENTS

5
0
insuranse stock market gavt. Deposit bank deposit mutual fund
investment
INTERPRETATION:
Still the people consider stock market as there 1st investment option
out of 100 respondents 30 were in the favor of stock market.

Q.3 Have you ever taken a Life Insurance Policy from any Company?
SI NO RESPONSE NO OF RESPONDENTS
1 YES 97
2 NO 3

100

80

60
respondents
40

20

0
yes no
INTERPRETATION:
97% of the total population are already having insurance policies as to
save guard there family.

Q.4 From which company you have got insured?

SI NO INSURANCE NO OF RESPONDENTS
COMAPANIES
1 LIC 45
2 ICICI 25
3 HDFC 20
4 IDBI FORTIS 5
5 BIRLA SUNLIFE 5

50

40

30
respondents
20

10

0
lic icici hdfc idbi fortis birlasunlife
INTERPRETATION:
Still people prefer to have insurance policy from LIC and ICICI which are
the leading insurance companies

Q.5 Which of the following factors will influence you the most while
purchasing the Insurance plan?
SI NO FACTORS NO OF RESPONDENTS
1 NAME AND 45
REPUTATION OF THE
COMNPANY
2 RETURNE 20
3 TAX SAVING 10
4 RISK COVERED 25

50

40

30

20 RESPONDENTS

10

0
name andreputation returne taxsavings riskcovered

INTERPRETATION:
Name and reputation still effects the customers to choose the
insurance company from which they will have there policy done.

Q.6 What is your source of information for taking a insurance plan?

SI NO SOURCE NO OF RESPONDENTS
1 AGENTS 50
2 FRENDS 25
3 FAMILY 15
4 OWN RESEARCH 10

50

40

30

20 RESPONDENTS

10

0
agents frends family ownresearch

INTERPRETATION:
The source of information are mostly agents who advertise about the
policies and various plans offered by the companies.
Q.7) Which type of insurance plan have you taken?
SI NO TYPE OF PLANS NO OF RESPONDENTS
1 PROTECTION 35
2 CHILDREN 25
3 INVESTMENT (ULIP) 10
4 RETIREMENT 30

35
30
25
20
15 RESPONDENTS
10
5
0
protection children investment(ulip) retirement

INTERPRETATION:
The PROTECTION plan holders are still more as compared to others ulip
plans are not yet popular among the mases
Q.8) are you aware of ULIP plans of the different companies.
SI NO RESPONSE NO OF RESPONDENTS
1 YES 35
2 NO 65

70
60
50
40
RESPONDENTS
30
20
10
0
YES NO

INTERPRETATION:
Still most of the people are not aware of ULIP plans being offered by
various companies
Q.9 According to you, Insurance policies are for?

SI NO REASONS NO OF RESPONDENTS
1 NECESSITY FOR 55
PROTECTION &
SEQURITY
2 IMPOSITION OF 10
BURDEN ON EXPENSE
3 A COMPULSORY TOOL 35
FOR TAX SAVING

60
50
40
30
20 respondents

10
0
protection & sequrity impositionofburdenon tool for taxsaving
expense

INTERPRETATION:
Necessity for protection security is the main reason for having an
insurance policy by the policy holders
Q.10. Are you aware of the charge FMC & other charges ?
SI NO RESPONSE NO OF RESPONDENTS
1 YES 45
2 NO 55

60
50
40
30 RESPONDENTS
20
10
0
YES NO

INTERPRETATION:
Mainly the policy holders are un awaire of the charges that are being
charged by the companies.
Q11.Do you agree that Insurance products are susceptible to very low
risk when compared to the other options for investment?

SI NO RESPONSE NO OF RESPONDENTS
1 YES 65
2 NO 15
3 CAT SAY 20

70
60
50
40
30 RESPONDENTS
20
10
0
YES NO CANTSAY

INTERPRETATION:
65 % of the total population consider insurance as a low risk
investment option.
Q.12 According to you what is the amount of risk involved in (ULIPs)
Unit Linked Investment Plans?

SI NO RESPONSE NO OF
RESPONDENTS
1 HIGH 20
2 MODERATE 5
3 LOW 10
4 NO IDEA 65

70
60
50
40
30 RESPONDENTS
20
10
0
HIGH MODERATE LOW CANTSAY

INTERPRETATION:
Most of the people don’t know about the risk factor that is
included in the ulip plans..
Q.13 With the different variety of schemes and unbelievable plans
offered by IDBI FORTIS Do you think IDBI FORTIS is one of the best?

SI NO RESPONSE NO OF
RESPONDENTS
1 YES 45
2 NO 15
3 CANT SAY 40

50

40

30
RESPONDETS
20

10

0
YES NO CANTSAY

INTERPRETATION:
45% of the total population considers this policy the best.. but
40% are still in confusion.
 FINDINGS

1) The professionals are higher as compared to others business

man and employees
Still the people consider stock market as there 1st investment
option out of 100 respondents 30 were in the favor of stock
market
3) 97% of the total population are already having insurance policies
as to save guard there family.
4) Still people prefer to have insurance policy from LIC and ICICI
which are the leading insurance companies
5) Name and reputation still effects the customers to choose the
insurance company from which they will have there policy done.
6) The source of information are mostly agents who advertise
about the policies and various plans offered by the companies
7) The PROTECTION plan holders are still more as compared to
others ulip plans are not yet popular among the mases
8) Necessity for protection security is the main reason for having an
insurance policy by the policy holders
9) Still most of the people are not aware of ULIP plans being offered
by various companies
10)Mainly the policy holders are un awaire of the charges that are
being charged by the companies
11) 65 % of the total population consider insurance as a low risk
investment option.
12)Most of the people don’t know about the risk factor that is
included in the ulip plans..
13)45% of the total population considers this policy the best.. but
40% are still in confusion
 CONCLUSION

1. Wealthsurance is designed to be an investment solution. It offers a

full range of investment choices similar in features to those you are
already familiar with such as bank deposits, bonds, post office
schemes or mutual funds. The investment options are designed to
meet the needs of all types of investors, whether cautious or risk-
taking.

2. Wealthsurance is indeed a wealth-management solution. You can

make a single investment or regular contributions. You can even
manage most of your financial savings in it by choosing an appropriate
mix of investment options. Think about the convenience of managing
your entire portfolio in a single account and watch your wealth grow
over time.

3. Life insurance is sometimes thought of as for those who might die,

but Wealthsurance is for those who will live. While it provides benefits
upon death, Wealthsurance is also designed to offer a whole package
of living benefits. You can get benefits on terminal illness, major
diseases, hospitalisation and disablement so you are well cared for in
the event of a health crisis or accident.

4.Wealthsurance gives you multiple options because we want to meet

your specific needs. At the same time we have made it easy for you to
choose by developing Ready Plans to meet the typical needs of
customers.
5.During my project this fact become clear that the customer are not
well aware about the product item of IDBI FORTIS WEATHSURANSE so
through the strong advertisement company should try to increase the
awareness of the WAELTHSURANSE

6. The company should start promotion campaign at the micro-level by

increasing the visit of company’s representatives to the agents and
policy holders

7. The company should work collaboratively with the agents and

management in effective manner towards focusing on the area where
there is a potential market for IDBI FORTIS

8. IDBI FORTIS is a new launched company and the masses are also
not aware about it
so the company need to adopt new promotional strategies and
branches so it can easily access to the consumers as there are already
22 players in the market and the competition level is already very high.
 RECOMMENDATIONS

IDBI FORTIS has to improve its distribution network as its reach to a

common man is very limited .Also the number of agents working for
the company is very less right now when compared to the other
companies

The company should constantly come out with innovative products as

the competition is very tough with around 22 companies fighting hard
for the market share. Some new innovative ideas have been suggested
below.

An insurance plan for the unborn babies. The premium payment term
could be for 6 months and it could start once the fetus is 3 months old
inside the mother’s womb. There could be various benefits under this
plan for the customers like in case of a premature or a complicated
birth the company would bear the expenses till the baby is healthy
again through the insurance policy. Also there could be death benefits
in case of the death of the baby inside the womb or at the time of
delivery. This plan could really be successful as in India there are lot of
premature child deaths and if the company comes out with a plan like
this very tactfully with some implied conditions it would be the first
Indian company to offer insurance to unborn babies.

An insurance plan for mentally retarded and physically handicapped

people. This might be hard to digest but if at all plans like these are
possible and really come out then a good amount of Indian population
would really be interested.

The company could also come out with a plan for both the husband
and wife where automatically the wife gets insured along with her
husband when her husband purchases the policy. This could also be
the other way round. This could be called the combo family plan. In
simple words it means buy one policy and get another free. No other
company has done something like this till now.

As the company is a new company it has to really work hard to get
itself promoted. The company could start sponsoring major events and
conduct talk shows and seminars to get noticed. It could also take the
help of NGOs. There are many people in India who still do not know
about the concept of insurance.The company could take this as an
opportunity by trying to create awareness.

The company could start using star personalities for their

endorsements especially cricket stars and film stars as India is a nation
of crazy cricket and film followers and there is nothing better than
reaching to the hearts of people through cricket.
 The company should come out with some really outstanding and out
of the world advertisements like the ones Vodafone has released
recently which people find it hard to forget soon.

The company should first promote the brand IDBI FORTIS and create a
positive impression in the minds of the people. In today’s world it is
really tough for the customer to choose from among a vast list of
insurance companies as almost all of them offer the same plans .So
the company has to be a bit different from others in order to stand
apart.

MERITS AND DE-MERITS OF IDBI FORTIS LIFE INSURANCE

COMPANY
We have already discussed the advantages of Wealthsurance products
compared to the products of the other companies. There the
advantages were specific to individual products. So here after the
complete analysis of primary and secondary data we have the
following merits and demerits of IDBI Fortis Life Insurance Company in
general. Since IDBI Fortis is a new company not many demerits can be
pointed out right now at this stage but we have tried our best here to
point out some major ones.
MERITS
1. When compared to the other selected insurance companies IDBI
Fortis gives a min fixed Interest rate for monthly interest account and a
min fixed NAV (Net Asset Value) for funds under Unit Linked Insurance
Plans (ULIPs) at the time of maturity. So here in terms of market
slowdown and recession the fund value will not come down below a
specified limit which is not the case with the other companies.

2. The Fund allocation charges and fund management charges are very
low when compared to most of the other companies in the market.

3. The growth of the company has been tremendous in terms of the

premiums collected and the variety of funds introduced. All this has
been done in a very short span of time which indicates that there is a
great future for IDBI Fortis.

4. IDBI Fortis offers funds almost to everyone right from a 3 month

child to a 70 year old elderly person. The variety of funds offered is
very vast.

5. The tie-up of the well known IDBI bank with Fortis International and
Federal bank both of which are well established and good rated gives
the company a greater scope for good growth in the future.

6. All the plans offered by the company especially under ULIPs are
really flexible as there are no charges charged for switching and a
customer can make use of the switching facility any number of times
he wants to free of charge. Also the premiums payable can be decided
by the customers themselves according to their feasibility and
capacity.

DEMERITS
1. IDBI Fortis has a limited presence right now so most of the people
know nothing about the company.

2. With already around more than 20 private companies in the market

it is really a mammoth task for IDBI Fortis to establish itself and move
forward successfully as it is always difficult for any new company to
capture the market very earl

3. Also with LIC still at the helm as the market leader it is really difficult
for the company to move anywhere closer to it because LIC is the only
public sector life insurance company and generally people would prefer
a public company rather than a private company.

4. The company has to improve its distribution network as its reach to

a common man is very limited .Also the number of agents working for
the company is very less right now when compared to the other
companies.

5. It is very difficult to convince the customers first because this is a

new unknown company and secondly there are no part records which
normally the customers consider seriously to show the company’s
performance.

6. Also the company has no funds like SBI Smart ULIPs of SBI, Tata-AIG
life invest assure of Tata-AIG and Birla Sun life insurance platinum
plans of Birla Sun life which offer the highest NAV observed during the
entire policy term at the time of maturity of the fund which are really a
great hit among the customers.
7. The variety of funds under IDBI FORTIS has to increase as
competitors like ICICI Prudential have a larger and better variety of the
same.
Dear Respondent,
The questionnaire is designed to seek information for the execution of
the research study. I shall be grateful if you kindly spare some of your
valuable time to response to following:-
General information:
Respondent Name ______________________________
Address ______________________________

Specific Information :

Q.1what is your Occupation ?

1) Business 2) Agriculture
3) Employee 4) Professional

Q.2 To which sector you will give preference while investing at present?
a) Insurance Investment Plan
b) Stock market
c) Govt. Deposits
d) Bank Deposits
e) Mutual Fund
Q.3 Have you ever taken a Life Insurance Policy from any Company?
a) Yes
b) No

Q.4 From which company you have got insured?

a) Life Insurance Corporation of India
b) Reliance Life Insurance
c) HDFC Standard Life Insurance
d) IDBI fortis Life Insurance
e) birla sunlife life insurance

Q.5 Which of the following factors will influence you the most while
purchasing the Insurance plan?

a) Name and reputation of the company

b) RETURNE
c) Tax Savings
d) Risk covered

Q.6 What is your source of information for taking a insurance plan?

a) agents
b) Friends
c) Family
d) Own research
Q.7) Which type of insurance plan have you taken?
a) protection plan
b) children plans
c) investment plan
d) retirement plan

Q.8) are you aware of ULIP plans of the different companies.

a) YES
b) NO

Q.9 According to you, Insurance policies are for?

a) Necessity for protection security

b) Imposition of a burden of expenses

c) A compulsory tool for tax saving

Q.10. Are you aware of the charge FMC?

a) yes

b) no

Q11.Do you agree that Insurance products are susceptible to very low
risk when compared to the other options for investment?

a) Yes

b) No
c) Don’t know

Q.12 According to you what is the amount of risk involved in (ULIPs)

Unit Linked Investment Plans?

a)High risk

b)Moderate risk

c)Low risk

d)They are Safe No Idea

Q.13 With the different variety of schemes and unbelievable plans

offered by IDBI FORTIS Do you think IDBI FORTIS is one of the best?

a)Yes b)No

Why?_______________________________________________
 BIBLOGRAPHY

WWW.IDBIFORTIS .COM
WWW.BIRLA SUNLIFELIFEINSURANSE.COM

GOOGLE HELP VIA,

www.americanterm.com
www.irdaindia.org
www.iloveindia.com/finance/insurance/companies/index.html