Summer Training Project Report: Master of Business Administration (Mba)
Summer Training Project Report: Master of Business Administration (Mba)
Summer Training Project Report: Master of Business Administration (Mba)
On
Future Generali India Life Insurance Company Ltd.
At
Gurgaon
SUBMITTED IN THE PARTIAL FULFILLMENT TOWARDS THE AWARD
OF
MASTER OF BUSINESS ADMINISTRATION (MBA)
2016-2017
I express my thanks to all sales managers under whose able guidance and
direction, I was able to give shape to my training. Their constant review and
excellent suggestions throughout the project are highly commendable.
My heartfelt thanks go to all the executive who helped me gain knowledge about
the actual working and the process involved in various department.
PREFACE
The liberalization of the insurance sector has been the subject of much heated
Debate for some years. The policy makers where in the 22 situation where in for
one they wanted competition, development And growth of this insurance sector
which is extremely essential for Channelling the investment into the
infrastructure sector. At the other end policy makers had the fares that the
insurance premier, which are substantial, would seep out the country; and
wanted to have cautious approach opening for foreign participation in the
sector. As one of the rare occurrence the entire debate was put on the back
burner and the IRDA saw the day of the light thanks to the maturity polity
emerging Consensus among faction of different political parties. Thought
changes of some restrictive clauses as regards to the foreign participation were
included The IRDA has open the doors for the private entry into insurance.
Whether the insurer is old or new. Private or public, expanding the market will
present multitude of challenges and opportunity. But the of issue, possible
Trends opportunities and challenges that insurance sector will have still remain
Under the realms of the possibility and speculation what is the likely impact of
Opening the Indias insurance sector?
The large scale of operations, public sector bureaucracies and cumber some
Procedures hampers nationalized insurers. Therefore, potential private Entrants
expect to score in the area of customer services, speed and flexibility.
EXECUTIVE SUMMARY
In todays corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sector. Insurance has
the maximum growth rate of 70-80 % while as FMCG sector has maximum 12-15%
of growth rate. This growth potential attracts me to enter in the sector and
FUTURE GENERALI LIFE INSURANCE Company Ltd has given me the opportunity
to work and get experience in highly and enhancing sector.
ACKNOWLEDGEMENT 1
PREFACE
EXECUTIVE SUMMARY
About nestkeys company
Industry Profile
Introduction of the company
Product of the company
Comparison of Ulips with Traditional plan
Research Methodology
Data analysis and Interpretation
SWOT analysis
Conclusion
About Nestkeys Infratech Private Limited
Nestkeys Infratech Private Limited is a Private incorporated on 16 January 2014.
It is classified as Non-govt. Company and is registered at Registrar of Companies,
Delhi. Its authorized share capital is Rs. 100,000 and its paid up capital is Rs.
100,000.It is involved in Real estate activities with own or leased property. [This
class includes buying, selling, renting and operating of self-owned or leased real
estate such as apartment building and dwellings, non-residential buildings,
developing and subdividing real estate into lots etc. Also included are
development and sale of land and cemetery lots, operating of apartment hotels
and residential mobile home sites. (Development on own account involving
construction is classified in class 4520).]
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.
8. TAX RELIEF
Under the Indian Income Tax Act, the following tax relief is
available
a) 20 % of the premium paid can be deducted from your total
income tax liability.
b) 100 % of the premium paid is deductible from your total taxable
income. When these benefits are factored in, it is found that most
polices offer returns that are comparable or even better than other
saving modes such as PPF, NSC etc. Moreover, the cost of
insurance is a very negligible.
Insurance does not protect the asset. It does not prevent its loss
due to the peril. The peril cannot be avoided through insurance.
The peril can sometimes be avoided, through better safety and
damage control management. Insurance only tries to reduce the
impact of the risk on the owner of the asset and those who depend
on that asset. It only compensates the losses- and that too, not
fully. Only economic consequences can be insured. If the loss is
not financial, insurance may not be possible. Examples of non-
economic losses are love and affection of parents, leadership of
managers, sentimental attachments to family heirlooms,
innovative and creative abilities, etc.
When the bread winner dies, to that extent, the family's income
dies. The economic condition of the family is affected, unless
other arrangements come into being to restore the situation. Life
insurance provides if this did not happen, another family would be
pushed into the lower strata creates a cost on society. The lower
strata create a cost on society. Poor people cost the nation by way
of subsidies and doles and so on. Poor people also cost by way
of larger growth in population, poor education and 13
Vagaries in behaviour of children. Life insurance tends to reduce
such costs. In this sense life insurance business is
complementary to the state's efforts in social management.
Under a socialistic system the responsibility of full security would
be placed upon the state to find resources for providing social
security. In the capitalistic society, provisions of security are
largely left to the individuals. The society provides instruments,
which can be used in security this aim. Insurance is one of them.
In a capitalistic society too, there is a tendency to provide some
social security by the state under some schemes, where members
are required to contribute e.g. Social Security Schemes in U.K.
In India, social security finds a place in our constitution. Article 41
requires state, within the limits of its economic capacity and
development, to make effective provisions for security right to
work, to education and to provide public assistance in case of
unemployment, old age, sickness, and disablement and in other
cases of undeserved want. Part of the state's obligations to the
poorer sections is met through the mechanism of life insurance.
There are tax benefits, both in income tax and in capital gains.
1. The Insurance Act 1938, which came into effect from 1st July
1939 and was amended in 1950 and later in 1999, is the principal
enactment relating to the business of insurance in India.
4. This Act was the basis for the establishment of the L.I.C as a
body corporate consisting of not more than 16 member appointed
by the Central Government, one of them being Chairman.
10. Any sum received under a life insurance policy including the
bonus addition is exempt from income tax. That means that
income tax does not have to be paid on policy claim and surrender
amounts. This is subject to the premium being not more than 20%
of the SA on any policy during any year.
11. The income of an assessed is reduced by the aggregate of
amounts paid towards insurance premiums contribution to
Provident Fund or approved Superannuation Fund, National
Savings Certificates etc. up to a maximum of Rs.1 lakh. If
premium during any year under any policy exceeds 20% of SA
only 20% will be taken into account for this rebate.
13. The wealth tax act exempts life insurance policies totally
provided premiums are payable for a period of 10 years or more.
If the policy term is less than 10 years, proportionate value of the
right or interest of the assesse in the policy will be exempted.
17. People below the poverty line are included in the expression
economically vulnerable or backward classes. The expression
other categories of person includes person with disability as
defined in the persons and disability act,1995 and who may not
be gainfully employed and also includes guardian who need
insurance to protect spastic persons with disability.
18. The IRDA Regulations 2005 provide for the transaction of both
general and life micro insurance products for the benefit of small
families comprising of husband, wife, dependant parents and a
maximum of 3 children. A general micro insurance product is
defined as a contract covering health insurance, hut, livestock or
tools or any personal accident either on individual or group basis.
Future Group
Future Group, led by Mr. Kishore Biyani, is positioned to cater to the
entire Indian consumption space. The Future Group operates through
six verticals: Future Retail (encompassing all lines of retail business),
Future Capital (financial products and services), Future Brands (all
brands owned or managed by group companies), Future Space
(management of retail real estate), Future Logistics (management of
supply chain and distribution) and Future Media (development and
management of retail media spaces). The groups flagship enterprise,
Pantaloon Retail, is Indias leading retail company with presence in
food, fashion and footwear, home solutions and consumer electronics,
books and music, health, wellness and beauty, general merchandise,
communication products, E-tailing and leisure and entertainment. The
company owns and manages multiple retail formats catering to a wide
cross-section of the Indian society and its width and depth of
merchandise helps it capture almost the entire consumption basket of
the Indian consumer. Headquartered in Mumbai (Bombay), the
company operates through 4 million square feet of retail space, has
over 150 stores across 35 cities in India and employs over 15,000
people. The companys revenues for FY 05-06 were Rs. 2017 crore
Founded in 1987, as a garment manufacturing company, Pantaloon
Retail forayed into modern retail in 1997 with the opening up of a chain
of department stores, Pantaloons. In 2001, it launched Big Bazaar, a
hypermarket chain, followed by Food Bazaar, a supermarket chain and
went on to launch Central, a first of its kind, seamless mall located in
the heart of major Indian cities. Some of its other formats include,
Collection I (home improvement products), E-Zone (consumer
electronics), Depot (books, music, gifts and stationaries), all (fashion
apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky
(fashion accessories). It has recently launched its entailing venture,
futurebazaar.com.
Some of the groups subsidiaries include Home Solutions Retail India
Ltd, Future Bazaar India Ltd and Converge Retail India Ltd, which leads
the groups foray into home improvement, entailing and
communication products, respectively. Other group companies include,
Pantaloon Industries Ltd, Galaxy Entertainment and Indus League
Clothing. It has also entered joint venture agreements with a number
of companies including ETAM group, Gini & Jony, Liberty Shoes, Staples
and Planet Sports, a company that owns the franchisee of international
brands like Marks & Spencer, Debenhams, Guess and The Body Shop in
India.
Future Capital Holdings, the groups financial arm, focuses on asset
management through real estate investment funds (Horizon and
Kshitij) and consumer-related private equity fund, Indivision. It also
plans to get into insurance, consumer credit and offer other financial
products and services. Future Groups vision is to, "deliver Everything,
Everywhere, Every time to Every Indian Consumer in the most
profitable manner." One of the core values at Future Group is,
Indianess and its corporate credo is Rewrite rules, Retain values.
GENERALI GROUP
Established in Trieste on December 26, 1831, Generali is an
international group present in more than 40 countries with insurance
companies and companies mostly operating in the financial and real
estate sectors. Over the years, the Generali Group has reconstructed a
significant presence in Central Eastern Europe and has started to
develop business in the principal markets of the Far East, including
China and India.
Identity Card
Generali Group ranks among the top three insurance groups in Europe
and the 30th largest company in the Fortune 500 international ranking,
with a 2007 premium income of over 66 billions
High rating assigned by the international rating agencies: o A.M. BEST
A+ o Standard & Poors AA o Fitch AA o Moodys Aa3
It is present in more than 40 countries
It has over 50 million clients worldwide
It has 80,555 employees
It has over 398 billion of total assets under management
Vision Statement:
"Pledged to provide financial security to all people & enterprises
through total insurance solutions"
Actively: We play a proactive and leading role in improving people's
lives through insurance.
Protect: We are dedicated towards managing and mitigating risks of
individuals and institutions.
Enhance: Future Generali is also committed to creating value.
People: We deeply care about our customer and our employee lives
and their future.
Lives: Ultimately, we have an impact on the quality of people's lives -
wealth, safety, advice and service are instrumental in improving a
person's chosen way of life in the long term.
Values:
Respect: for all our stakeholders- employees, customers, for all rules
and regulations both internal and external.
Indianess: We understand India in all its diversity and different facets
and will use for our local understanding to respond to our specific
markets, design our products and craft our processes.
Deliver on the promise: we tie a long-term contract of mutual trust
with our people, customers and stakeholders; all of our work is about
improving the lives of our customers.
We commit with discipline and integrity to bringing this promise to life
and making an impact within a long-lasting relationship.
Value our people: We value our people, encourage diversity and
invest in continuous learning and growth by creating a transparent,
cohesive and accessible working environment. Developing our people
will ensure our Company's long-term future.
Live the community: We are proud to belong to a global Group with
strong, sustainable and long-lasting relationships in every market in
which we operate. Our markets are our homes.
Be open: We are curious, approachable and empowered people with
open and diverse mind-sets who want to look at things from a different
perspective.
Mission
First choice: Logical and natural action that acknowledges the best
offer in the market, based on clear advantages and benefits.
Delivering: We ensure achievement striving towards better
performance.
Relevant: Anticipating or fulfilling a real-life need or opportunity,
tailored to local and personal needs and habits, perceived as valuable.
Accessible: Simple and easy to find, understand and use; always
available, at a competitive value for money.
Insurance solutions: We aim to offer and tailor a combination of
protection, advice and service.
Big Bazaar
E zone
Food Bazaar
Furniture Bazaar
Home Town
KB Fair Price
Pantaloons
Objective
To provide superior customer service through our knowledge-based
business partners and employees supported by innovative products
and services.
11 years
Policy term
15 years
Premium payment
Annual payment
frequency
Tax gains Policyholders are eligible for tax exemptions under Section
80C of the Income Tax Act.
Assured income Policyholders are entitled to an assured pay out after
premiums have been paid.
Maturity benefit A maturity benefit will be paid after the policy
matures. This benefit will be paid in annual instalments, for a period
equivalent to the policy term.
Your Benefits 11-year Term 15-year Term
Maturity Benefits A:11 annual instalments of 1.5 times A:15 annual instalments of 2
your annualised premium from the times your annualised premium
end of the 12th year to the end of from the end of the 16th year to
22nd year the end of 30th year
+ +
B:Additional Benefits at the end
B:Additional Benefits at the end of of the 30th year (based on age
the 22nd year (based on age at entry) at entry)
Total Benefits 17.5 to 21 times of annualised 31 to 34.5 times of annualised
premium (depending upon the age premium (depending upon the
when you purchased the policy ) age when you purchased the
policy)
Option To Receive Available Available
Maturity Benefits In
Monthly Instalments
Death benefit The nominee will receive a death benefit in the event of
demise of policyholder. The Death Sum Assured shall be highest of the
following:
10 times annualised premium (excluding taxes and extra premiums, if any), or
105% of total premiums paid (excluding taxes and extra premiums, if any) as
on date of death, or
Maturity Sum Assured
In case of your unfortunate demise any time during the Policy Term, the Death
Sum Assured will be payable to your nominee as under:
Your Benefits 11-year Term 15-year Term
+ +
B: Additional Benefits shall be
payable along with the last B: Additional Benefits shall be
annual instalment. payable along with the last
annual instalment.
Total Benefits 17.5 to 21 times of annualised 31 to 34.5 times of annualised
premium (depending upon the premium (depending upon the
age when you purchased the age when you purchased the
policy) policy)
Eligible individuals need to follow a few simple steps to activate this plan,
which is explained through the example of Mr.Ravi, an animation artist.
Jacob decides to buy this policy for himself on his 40th birthday. He chooses
a policy term of 15 years, paying an annual premium during this period. The
sum assured opted by him is Rs 10 lakhs.
Scenario 1: Ravi pays the premium regularly, with the policy maturing after
15 years. In this case, he will receive 15 annual instalments equivalent to
two times the annualised premium paid by him. These instalments will be
paid from the 16th year onwards. In addition to this, he will also receive an
additional benefit after these instalments have been paid.
Scenario 2: Ravi passes away 5 years after purchasing the plan. In this case,
his nominee will receive an immediate death benefit equivalent to two times
the annual premium paid. In addition to this, the nominee will also receive
annual payments for 14 years after his death.
Premium Payment
Policy term Premium payment Premium payment
term frequency
Riders
GST of 18% is applicable on life insurance effective from the 1st of July,
2017
15 years
Policy term 20 years
25 years
Minimum Rs 1 lakh
Sum assured
Maximum Rs 5 crore
Some of the benefits of Future Generali Assure Plus are listed below.
Flexibility Individuals can choose a policy term which matches their needs,
having additional flexibility in terms of premium payment modes, premium
payment terms and the amount they wish to invest every year.
High sum assured One can avail cover to the tune of Rs 5 crore under this
policy.
Tax benefits Policyholders are entitled to tax benefits under Section 80C of
the Income Tax Act.
Maturity benefits A maturity benefit equivalent to the sum assured plus all
accrued bonuses will be paid once the policy completes its term.
- In case the Life Assured survives till the end of the Policy Term, provided all due
premiums have been paid, the Sum Assured plus accrued bonus and Terminal
Bonus, (if any) will be payable. The policy terminates on the payment of Maturity
Benefit.
Death benefit In the event of unfortunate demise of a policyholder during the
policy term, his/her nominee will receive a death benefit comprising the death
sum assured and all bonuses accrued.
In case of an unfortunate demise of the Life Assured during the Policy Term,
provided all due premiums have been paid till the date of death, the benefit
payable to the nominee is the higher of:
- Death Sum Assured plus vested bonus plus Terminal Bonus, if any.
- 105% of total premiums paid (excluding Goods & Services Tax, extra
premiums, if any).
Where Death Sum Assured is higher of:
- Sum Assured, or
- 10 times the annualized premium if age of the Life Assured is less than 45
years or 7 times the annualized premium if age of the Life Assured is greater
than or equal to 45 years
Discounts Individuals who opt for a high sum assured are entitled to discounts
on their premiums.
Bonus Each policy is eligible to earn a bonus, thereby offering higher returns.
Working of Future Generali Assure Plus
Let us consider the example of Mr. Rakesh to understand the working of this plan.
Rakesh is a software engineer working for a reputed firm. He is married and has
two children aged 4 and 5 year. He decides to opt for this plan on his 40th
birthday, choosing a 20 year policy, with the sum assured being Rs 25 lakhs. He
pays an annual premium for 10 years towards this policy.
Let us consider the following scenarios to understand how this Future Generali
life plan works.
Scenario 1: Rakesh passes away 15 years after buying the policy. All premiums
were paid by him before his death. In this case, his nominee will receive a death
benefit which is equal to the death sum assured plus all bonuses accrued until
death.
Scenario 2: The policy matures after 20 years, with Rakesh and his family leading
an eventful life. In this case, he will receive a maturity benefit which includes the
sum assured and bonuses accrued over the policy term.
Premium Payment
Premium Payment
Policy Term Premium Payment Frequency
Terms
Riders
No riders available with this plan.
Maturity benefit:-
On maturity of the policy, the Fund Value (market value of the investment) is paid
Note:
Settlement Option is an option to receive the proceeds of Maturity Benefit in
periodical payments, instead of Lump Sum.
Target Group
For customers looking for a tax saving systematic investment solution which
helps to get market linked returns along with benefits of insurance
Death benefit:-
Higher of:
Sum Assured less deductible Partial Withdrawals, if any, OR
Note: Deductible Partial Withdrawals are Partial Withdrawals made 2 years prior
to the date of death of the Life Assured, in case of death before 60 years. In case
of death after attaining 60 years, Partial Withdrawals made under the policy two
years before attaining 60 years as well as all Partial Withdrawals after attaining
60 years will be considered as deductible Partial Withdrawal.
Target Group
For customers looking for a tax saving systematic investment solution which
helps to get market linked returns along with benefits of insurance
Loyalty Addition:-
Staying invested throughout the Policy Term will help you get Loyalty Additions
as a percentage of average Fund Value. All you need to do is to ensure that you
have paid all your due premiums on time and your policy is active on the date of
payment of Loyalty Additions. Loyalty Additions shall be added to the Fund Value
on the applicable Policy Anniversary. However, the last (nal) Loyalty Addtion
shall be payable on date of maturity.
Policy Term
Loyalty Additions as % of average Fund value payable on the last 5 Policy Anniversaries.
For the purpose of calculation of Loyalty Additions, except the last Loyalty
Addition, the average Fund Value shall be simple average of Fund Values on the
last day of previous eight calendar quarters, prior to the Policy Anniversary in
which the Loyalty Additions are payable.
For the purpose of calculation of last loyalty addition, the average fund value
shall be simple average of fund values on the last day of previous eight calendar
quarters, prior to the date of Maturity.
Target Group
For customers looking for a tax saving systematic investment solution which
helps to get market linked returns along with benefits of insurance
ELIGIBILITY:-
PARAMETER CRITERION
Entry Age (as on last Minimum: 0 years
birthday) Maximum: 50 years
Maturity Age Minimum: 18 years
Maximum: 70 years
Premium to be paid Minimum:
Annual Mode - 40,000
Monthly Mode - 4,000
Maximum: No Limit
Policy Term 10 to 20 years
Premium Payment Term Same as Policy Term
Sum Assured Sum Assured = 10 x Annual Premium
Premium Payment Annual/Monthly. Monthly premiums can only be paid by
Frequency Auto Pay System. Auto Pay methods of payment are
available in all premium modes.
OPTION OF FUNDS
Insurers offer policyholders a choice of funds in which their moneys may be invested
like
Equity Funds: In this type funds, sometimes also called growth funds, there would
be more investments in equities which are shares/stocks traded in the stock market.
Debt Funds: In this type of funds, also called bond fund, the investments are
primarily in Government and Government guaranteed securities and such safe debts
and other high investment grade corporate bonds.
Money Market Funds: In this type of fund, sometimes also called liquid fund, the
investment may be more in short-term money market instruments such as treasury
bills, commercial papers, etc.
Balanced funds: In this type of funds, the investments are in both equity as well as
debts.
All these funds will remain invested in a mix of instruments, the differences being
mainly in the proportions in various kind of instruments. One fund may have more of
debt instruments, which guarantee a certain fixed return, while another fund will
have a larger proportion of equity shares, which may appreciate in value more than
debt instruments. Insurers use different names to differentiate between the funds.
Insurers allow policyholders to switch their moneys from one fund to another during
the term of the policy. Some insurers charge a fee for every such switch. Some others
allow a certain numbers of switches free and then charge a fee for every switch
thereafter.
- Charges of ULIPs:
Flexibility
o Flexibility to choose Sum Assured.
o Flexibility to choose premium amount.
o Option to change level of Premium /Sum Assured even after the plan has
started.
o Flexibility to change asset allocation by switching between funds
Transparency
o Charges in the plan & net amount invested are known to the customer
o Convenience of tracking ones investment performance on a daily basis.
Liquidity
o Option to withdraw money after few years (comfort required in caseof
exigency)
o Low minimum tenure.
o Partial / Systematic withdrawal allowed
Fund Options
o A choice of funds (ranging from equity, debt, cash or a combination)
o Option to choose your fund mix based on desired asset allocation
Traditional Plans:
Steady Investment
o Major chunk of investible funds are in debt instruments
o Steady and almost assured returns over the long term
Features
o Death benefit is Sum Assured + guaranteed & vested bonus
o Helps in asset creation as they are for a long tenure
o Premium to Sum Assured ratios are fixed for each plan and age.
o Generally withdrawals are not allowed before maturity.
Until a couple of years ago, when ULIPs were a rare commodity, nobody knew
how life insurance companies charged policyholders for expenses. And nobody
seemed to want to know either, and then came the ULIPs with good intentions
to make policyholders aware of how much they would pay as expenses. But that
move backfired. Policyholders were taken aback by the high amount of fees that
ULIPs charged.
While the charge structure on ULIPs is something that is open to debate, the
issue is that ULIPs alone cannot be isolated. Traditional policies too charge high
administrative and management expenses. In ULIPs, the first year charges range
from 20-70%, one does not know how much traditional policies charge.
This can have a bearing on returns as well. A ULIP may charge you upfront but
thereafter, all the returns on the fund are yours while a traditional policy may
charge less but share a smaller portion of returns with you.
RESEARCH METHODOLOGY
Research methodology
Research is common parlance refer to a search of knowledge. One can also
define research as a scientific and systematic search for pertinent knowledge or
information on specific topic.
Methodology forms a core of all research study. It refers to the procedure for
the collection of data & its analysis. This chapter deals with the various
methodological details in the present study. The methodology of the present
investigation includes the following steps
2) RESEARCH DESIGN
A research design is the arrangement of the conditions for collection & analysis
of data. Actually it is the blue print of research project. The research design is as
follows Exploratory Research
3) SOURCES OF DATA
Sound marketing research depends upon the existence of facts or directly
related to problem studied. To fulfil aforesaid objectives of the study, the
information gathered from the primary as well as secondary sources & the same
is also used.
A. Primary Sources: I have used Primary Sources for finding out customers
knowledge. The following sources are used.
Method of obtaining data: Questionnaire
B. Secondary Sources: I have used Secondary Sources for making People aware
about unit linked insurance plans. The following sources are used for gathering
information.
1) Website
2) Broachers
4) SAMPLE DESIGN
Sample design refers to the technique as the procedure that a researcher would
adopt in selective item for the sample.
7) SAMPLING TECHNIQUE
For the purpose of my study I had used: Convenient Sampling.
DATA ANALYSIS AND INTERPRETATION
Interpretation: It shows that 30% customers are within the income group of
below 2 lakh, 60% are in the income group of 2-5 lakh, 10% in 5 lakh. This graph
shows about income level of the people and most of the people earn between
2-5 lakh annually.
2. How did you come to know about of future generali life insurance Company limited?
PARTICULAR NO. OF CUSTOMERS PERCENTAGE
Advertisement 8 10
Agent 64 80
Friend 8 10
NO. OF CUSTOMERS PERCENTAGE
90
80
70
60
50
40
30
20
10
0
Advertisement Agent Friend
ULIP Product
70
60
50
40
30
20
10
0
Future secure Future income Future balance Future maximize
70
60
50
Yes
40
30
No
20
10
0
NO. OF CUSTOMERS PERCENTAGE
Interpretation: It shows that only 65% customers are know about the key
features of ULIP which they have taken and 35% customers are dont know
about key features.
5. Do you know about the administrative charges & other charges in ULIP?
PARTICULAR NO. OF CUSTOMERS PERCENTAGE
YES 60 70
No 20 25
80
70
60
50 YES
40
No
30
20
10
0
NO. OF CUSTOMERS PERCENTAGE
Interpretation: It shows that only 75% customers are know about the
administrative charges and other charges in ULIP which they have taken and
25% customers are dont know about it.
6. How long do you intend to remain invested in ULIP?
50
40
NO. OF CUSTOMERS
30
20 PERCENTAGE
10
0
3 years Between 3-5 Between 5-10 Above 10 years
years years
Interpretation: It shows that 50% people are interested to invest their money
between 3-5 years for the better return, according IRDA people can withdraw
their money 3 years so 25% customers are interested to invest money in this
duration.
7. Rate the factor that you consider before investing in ULIP?
PARTICULAR NO. OF CUSTOMERS PERCENTAGE
Flexibility 8 10
Return 48 48
Tax Saving 16 20
Risk Cover 8 10
60
50
40
NO. OF CUSTOMERS
30
20
PERCENTAGE
10
0
Flexibility Return Tax Saving Risk Cover
90
80
70
60
50
40 Yes
30
No
20
10
0
NO. OF CUSTOMERS PERCENTAGE
Interpretation: It shows that 85% customers satisfy after sales Service Company
switch the fund according to the customers preference, and solve the problem
time to time, and give details to customers on the maturity date.
SWOT ANALYSIS
STRENGTHS:
The strengths are:
Future Generali is the third largest player in the insurance industry in India
Generali is a 176 years old company (founded in Italy)
The Future Group operates through five verticals:
1. Future Retail
2. Future Capital
3. Future Brands
4. Future Space
5. Future Logistics
6. Future Media
WEAKNESSES:
The weaknesses are:
Some customers are not satisfied with the service of Future Generali
Only 24 branches all over India
High insurance-period duration
High premium
Low awareness of Future Generali in rural areas
OPPORTUNITY:
The opportunities are:
Huge opportunity in insurance market.
Better products as compared to other industries.
Due to increase in literacy rates, literate people prefer Future Generali.
Future Generali gives opportunity to other businesses to grow in the market.
THREATS
The threats are:
Tough competition from LIC, ICICI, BAJAJ ALLIANCE, HDFC SLIC and BIRLA
SUNLIFE
Due to low premium, rural markets prefer LIC
Threat for Future Generali because over 12 new companies are entering the
market Currently, HDFC SLIC is the 7th player in the market, and the major
threat is to sustain that position in the face of competition
CONCLUSIONS
1. From income analysis we can conclude that most of customers are belong to high income
group which is beneficial for the company.
2. 80% customers were come to know about the company through agents which shows
that most of customers were get attracted through agents.
3. Return objective analysis says that most of customers give very importance to return.
4. Tax Saving is also very important for customers.
5. From the ULIPs analysis we can conclude that most of customers have Future Balance and
Future Maximise which shows that these products are more demandable and popular
among customers.
6. From the analysis of key features of ULIP we can conclude that 35 percentage customers
dont know about the key features of ULIP which they have taken, which shows customers
carelessness about their own product.
7. Fund analysis says that approx. 75% customers know the different kinds of funds available
in their plan, it so because investment is always made by customers own choice for the
funds.
8. Many customers have knowledge about administrative charges and other charges.
SAMPLE QUESTIONNAIRE
Yes No
7. What do you expect in terms of benefit from your insurance policy?
Questionnaire
Name: __________________________
Age: ____________________________
Occupation: Private________ Public___________
Business________ Others___________
1. Income level (annually)
Below 2 lakh______
Between 2-5 lakh______
5 lakh & above_________
2. How Did You Come To Know About Of FUTURE GENERALI LIFE
INSURANCE CO. LTD.?
Advertisement_________ Agent________ Friend__________
3. Which ULIP Product Of The Company Have You Taken? Please Provide Name
Of The Plan?
Future Secure__________ Future Income_____________
Future Balance__________ Future Maximise____________
4. Do You Know About The Key Features Of ULIP Which You Have Taken?
Yes____________ No____________
5. Do You Know About The Administrative Charges & Other Charges In ULIP?
Yes_____________ No_____________
6. How Long Do You Intend To Remain Invested In ULIP?
3 years______________ between 3-5 years________
Between 5-10 years________ Above 10 years_________
7. Rate The Factor That You Consider Before Investing In ULIP?
Flexibility__________ Returns______________
Tax Saving_________ Risk cover___________
8. After Sales Service?
Yes______________ No___________________
Insurance Glossary
Insurable Interest:An insurance term referring to the relationship between apolicyh
older and the potential beneficiary
Insurance: Guarding against property loss or damage making payments in the form of
premiums to an insurance company, which pays an agreed-upon sum to the insured in
the event of loss.
Insurance Claim: A claim for reimbursement from the insurance company when the
insured event is occurred.
Deferred Annuity:An annuity plan where the first annuity payment becomesp
ayable after a chosen period that exceeds one year.
Liquidity: The quality of assets that can be easily and quickly converted into cash
without any loss, or significant loss in value.
Lock-in-period: The period of time for which investment made in as
investment option cannot be withdrawn.
Market Value: The monetary value an asset will fetch if sold in the market today.
Riders: Additional covers that can be added to a life policy, for a cost.
Net Asset Value (NAV): The price or value of one unit of a fund. It is calculated
by summing the current market values of all securities held by the fund, adding
in cash an any accrued income, then subtracting liabilities and dividing the result
by the number of units outstanding.
Policy term: The period for which an insurance policy provides cover.
Premium: The amount paid by the insured to the insurer to buy cover.
Sum assured: The amount of cover taken under a life insurance policy,
it is the minimum that will be paid on death of the policyholder during the policy term.
Surrender value: The amount payable by the insurer to the owner of an investment-
based plan in case he opts to terminate the policy after three years (the mandatory lock-in-
period).
Risk: Often defined as the standard deviation of the return on total investment.
Degree of uncertainty of return on an asset.
Returns: The change in the value of portfolio over an evaluation period, including any
distributions made from the portfolio during that period.
GDP: The market value of goods and services produced over time, generally one year, in the
country.
Top-Ups: One time investment made above and over regular premium.
Fund value: Net Assets Value on particular date and multiplied by number of
units available in the fund.
WEBSITE:
www.futuregenerali.in
www.insurance.ind.com
www.irda.org
www.insuranceworld.com