AEGON RELIGARE LIFE INSURANCE COMPANY

                  

                                                    AEGON RELIGARE                      

                                                LIFE INSURANCE COMPANY

 

INDEX

S. No.	Content
1	Objective
2	Industry profile
3	Profile of the Company
4	Products
5	SWOT Analysis
6	Competitors
7	Research Methodology
8	Customers
9	Data Interpretation
10	Recommendation & Suggestions
11	Questionnaire
12	Bibliography

methodology

Data Collection Method

In the present research data was collected mainly through Questionnaire method. However being a qualitative research, it demanded face-to-face information to some extent. So the data was collected partly through the interview method. A questionnaire relevant to the research problem was developed .The questionnaire included questions on investment objective, type of plan, duration of investment, preferred area of investment, considerations while choosing a fund etc. The finalized questionnaire was personally explained to each customer through personal visit to them. Thus the structured questionnaire and unstructured interview were used as the instruments of data collection.

Sampling

Convenience Sampling Method has been used in the research, at hand. Firstly I selected the UNIVERSE which comprised of the surrounding areas of the location of AEGON Religare Life Insurance Co.-Maldahiya  Varanasi.

The sample units (customers) were selected randomly from the whole universe. The sample unit was selected individually by me in order to impart maximum accuracy in the research work.

Sample size

The size of the sample (random) was 100. The sample comprised of 100 individuals comprising in the income group of more than or equal to Rs.3 lakh p.a. and has crossed the age of 25 years. This characteristic was purposely selected, because of following reasons:

·         A person falling in such income group has the ability to save and invest

·         A person of 25 years or more has specified objectives to pursue in his life

Fieldwork

The fieldwork was performed in the form of data collection.  The exercise involved, filling up of the questionnaires by the customers, detailed face-to-face conversation, on the spot interviewing and simultaneously reading the reactions of the respondents.

All the details were recorded objectively. On the whole, the fieldwork was done unto maximum accuracy from my side but some discrepancy might have crept in which has already been mentioned under the heading - limitations.

 

Analysis

After the completion of data collection, the analysis of data took place. Under this section in-depth and elaborate analysis of the data as well as of the gathered information was done which was followed by the interpretation and recommendations. 

The interpretation of data has been presented in report in the form of case studies of individual clients. Most of the items of the questionnaire are related to the attitude measurement of customers towards Unit Linked Insurance Plans (ULIPs).

PRIMARY OBJECTIVE

To know about customer perspective of Unit Linked Insurance Plans.

SECONDRY OBJECTIVE

·       Assessment of customer satisfaction

·       Assessment of corporate culture

·       To identify whether the customers are aware of the ULIPs of ARLF

·       To analyze the factor(s) to increase the sales f ULIPs of ARLF.

·       To know the pattern of investment in insurance sector in context  of Varanasi

·       To know what they think about investment

• To know perception of consumers about different sector of insurance company

   

• To know perception of consumers of their mode of premium payment.

 

Limitations

Every Research work suffers from certain limitations .The survey undertaken is also not free from all defects .The purpose of presenting the limitations is to help the reader in forming opinion about the reliability and validity of the present result.

1.    The universe selected for the survey comprised of only Varanasi. So the result should not be generalized for the entire bulk.

2.    Sample size is too small which may affect the reliability of the result

3.    Because of lack interest in such activities, the respondents were not benefited in any way and therefore there are chances of incorrect or biased replies.

4.    The survey is one sided i.e., I studied the topic from customer’s & company. Competitors’ viewpoint has not been covered.

INDUSTRY PROFILE

Many may not be aware that the life insurance industry of India is as old as it is in any other part of the world. The first Indian life insurance company was the Oriental Life Insurance Company, which was started in India in 1818 at Kolkata.

A number of players (over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country. However the government of India, concerned by the unethical standard adopted by some player against the consumers, nationalized the industry in two phases in 1956(life) and in 1972(non-life).The insurance business of the country was then brought under two public sector companies, Life Insurance Corporation of India (LIC) and General insurance Corporation of India (GIC).

In line with the economic reforms that were ushered in India in early nineties, the Government set up a committee on reforms (popularly called the Malhotra Committee) in April 1993 to suggest reforms in the insurance sector. The Committee recommended throwing open the sector to private player to usher in competition and bring more choice of the consumers. The objective of the insurance to penetration of insurance as a percentage of GDP, which remains low in India even compared to Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory, which has put in place regulations in line with global norms. So far it is not made public.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies

The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the insurance companies was the launch of the IRDA’s online services for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered. 

PURPOSE & NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental occurrences. Such possible occurrences are called perils. Fire, flood, breakdown, lightening, earthquake, etc. are perils. If such perils can cause damage to the assets, we say that the asset is exposed to that risk. Perils are the events. Risks are the consequential losses or damages.

The risk to an owner of a building, because of the peril of earthquake, may be a few crores of rupees, depending on the cost of the building and the contents in it.

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 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. 

ROLE OF LIFE INSURANCE  

1.    Life insurance as “Investment”

§  Insurance is an attractive option for investment. Which most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options.

§  You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings.

2.    Life insurance as “Risk cover”

o    First and foremost, insurance is about risk cover and protection –financial protection, to be more precise – to help outlast life’s unpredictable losses. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.

o    To provide such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies.

o    Insurance also provides a safeguard in the case of accidents or a drop in income after retirement.

3.  Life insurance as “Tax planning”

• Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. Under section 80(c) of Income Tax Act 1961,an individual is entitled to a rebate of  Rs.1Lakh on the annual premium payable on his/her life and life of his/her children or adult children. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family (HUF), the rebate is deductible from the tax liability of an individual or a Hindu Undivided Family.

ADVANTAGES OF LIFE INSURANCE

Life insurance has no competition from any other business. Many people think that life insurance is an investment or a means of saving. This is not a correct view. When a person saves, the amount of funds available at any time is equal to the amount of money set aside in the past, plus interest. If the money is invested in buying shares and stocks, there is the risk of the money being lost in fluctuation of the stock market even if there is no loss, the available money at any time is the amount invested plus appreciation. In life insurance, however the fund available is not the total of the savings already made (premium paid),but the amount one wished to have at the end of the saving period (which is the next 20 or 30 years).the final fund is secure from the very beginning. One has to pay for it only as long as one life or for a lesser period if so chosen.

There is no other scheme which provides this kind of benefit therefore life insurance has no substitute. Even so, a comparison with other form of saving will show that life insurance has the following advantages:-  

• In the event of death, the settlement is easy. The heirs can collect the moneys quicker, because of the facility of nomination and assignment.
• The facility of nomination is now available for some bank accounts.
• There is a certain amount of compulsion to go through the plan of savings.
• In other forms, if one changes the original plan of savings, there is no loss.
• Creditor can not claim life insurances moneys. They can be protected against attachment by courts.
• There are text benefits, both in income tax and capital gains. Marketability and liquidity are better. A life insurance policy is property and can be transferred or mortgaged. Loan can be raised against the policy.

SIGNIFICANCE FOR AGENT

The following tenets help agent to believe in benefit of life insurance. Such faith will enhance there determination to sell and their perseverance.

• Life insurance is not only the best possible way for family protection. There is no other way.
• Insurance is the only way to safeguard against the unpredictable risks of the future. It is unavoidable.
• The value of human life is far greater than the value of property only insurance can preserve it.
• Life insurance is not surpassed by many other savings or investment instruments, in terms of security, marketability, stability of value or liquidity.
• Insurance, including life insurance, is essential for the conservation of many businesses, just as it is in the preservation of homes.
• Life insurance enhances the existing standards of living.
• Life insurances help people live financially solvent lives.
• Life insurance perpetuates life, liberty and the pursuit of happiness.

Company profile

AEGON, one of the world’s largest life insurance and pension groups, Religare, one of India’s leading integrated financial services groups and Bennett, Coleman & Company, India’s largest media house, have come together to launch AEGON Religare Life Insurance Company Limited. This venture is dedicated to build a firm future, both for customers and employees and will continue to balance a local approach with the power of expanding global operation.

We launched our pan-India multi-channel operations in July, 2008 with over 30 branches spread across India. Our business philosophy is to help people plan their life better. We provide high quality advice to our customers and offer superior customer.

In an industry first, AEGON Religare Life Insurance offers policy servicing on the phone via Interactive Voice Response System (IVR) by issuing the customer a T-Pin for authentication. It is also the first company to include the customer’s medical report in the policy kit.

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The Parent Company

AEGON, Religare and Bennett, Coleman & Company

About AEGON

AEGON’s businesses serve over 40 million customers in over 20 markets throughout the Americas, Europe and Asia, with major operations in the United States, the Netherlands and the United Kingdom. With headquarters in The Hague, the Netherlands, AEGON companies employ almost 32,000 people worldwide. The company’s common shares are listed on four stock exchanges: Amsterdam, London, New York and Tokyo. It manages EUR 351 billion in revenue generating investments. AEGON has more than 160 years of experience with its roots going back to 1844. It holds 26% equity in our company.

·       Over 160 years of experience in the insurance business.

·       Ranked the 5^th largest insurance company in the world on revenues*

·       One of India’s leading integrated financial services group

·       Presenting 20 countries throughout the Americas, Europe, and Asia

·       4 crore customers worldwide.

·       Track record of finding beneficiaries of policies &settling claims.

·       Even in the wake of crisis in the financial world rated AA# by rating agency.

·       Services in retail, wealth & institutional spectrums.

·       Presence in more them 460 cities &towns &more than 1550 locations

 About Religare Enterprises Limited

Religare is a diversified financial services group of India offering a multitude of investment options. Financial services which Religare offers can be broadly clubbed across three key verticals - Retail, Institutional and Wealth spectrums. Religare has also ventured into the alternative investments sphere through its holistic arts initiative and Film fund. With a view to expand, diversify and introduce offerings benchmarked against global best practices, Religare operates in the wealth management space under the brand name 'Religare Macquarie Private Wealth'. Religare has a pan India presence, 1837 locations across 498 cities and towns. It also currently operates from nine international locations following its acquisition of London’s brokerage & investment firm, Hichens, Harrison & Co. plc. (Now Religare Hichens, Harrison Plc). REL holds 44% equity in our company

·       One of India’s leading integrated financial service group with a pan India and global presence

·       Has an active presence in more than 460 cities and towns with more than 1550 locations across India

·       Made an IPO in Oct-Nov 2007 and was over subscribed by 160 times

·       It launched India’s first holistic arts initiative including an Art Fund

·       Inked India’s first wealth management joint venture with Macquarie  Bank for its wealth advisory business

·       Also launched India’s first Film Fund with Vistaar called Vistaar Religare Film Fund

About Bennett, Coleman & Co. Ltd. (BCCL)

Bennett, Coleman & Co. Ltd. (BCCL), part of the mammoth Times Group, is India’s largest media house. It reaches out to 2468 cities and towns all over India. The group owns and manages powerful media brands like The Times of India, The Economic Times, Maharashtra Times, Navbharat Times, Femina, Filmfare, Grazia, Top Gear, Radio Mirchi, Zoom, Times Now, Times Music, Times OOH, Private Treaties and indiatimes.com. All of its brands are multinational in outlook, traditional at heart and national in spirit. From the very first edition on November 3, 1838 the mammoth BCCL Group has come a long way. By way of the innovative venture of Times Private Treaties. By way of the innovative venture of Times Private Treaties the BCCL Group holds 30% equity in our company. 

·       Owner of The Times of India Group

·       One of the Largest media groups in the world

·       Some of the prominent brands owned are Times of India,  Economic Times, Times Now, Zoom TV, Radio Mirchi and Femina

·       Turnover in excess of Rs.3360 crores

Launched with Impact

Launched in July 2008 AEGON Religare Life Insurance Company is one of the fastest growing life insurance companies in India. Some of the key achievements are:

·       One of the few life insurance companies to successfully win the trust of 10,000 customers within first 6 months

·       Launched operations with 38 branches across 32 cities in India, the highest by any insurance player in India

·       First life insurance company in India to offer customers a  convenient option of managing their accounts via the phone

·       Launched the hugely successful K.I.L.B.(Kam Insurance Lene ki Bimari) advertising Campaign, which educated customers on the concept of Under-Insurance

Our Vision

“To help people to plan their life better”

AEGON Religare helps people to plan their life in a better way by providing better life insurance plan to its customers. Being a new player in life insurance market it has to be innovative and make promotional programs.

Our Values

§  To delight our customers through fresh approach innovative solutions and seamless delivery

§  Better understanding our customers’ needs

§  To provide refreshingly different ways of service

New Initiatives

·       India’s first holistic arts initiative including an art fund

·       India’s first Film Fund

·       India’s first 360 degree content rich online investment portal

Launched the Corporate Services Group-a centralized advisory-led Referral group 

·       Launched Banc invest Channel, a co-managed distribution channel offering3-in-1 product (bank, trading and demat account)

·       Inked India’s first wealth management joint venture with global major Macquire Bank

·       The latest feather in the Religare hat is their foray into the Life Insurance market in partnership with AEGON

CHIEF EXECUTIVE OFFICER

Rajiv Jamkhedkar

Mr. Rajiv Jamkhedkar joined AEGON Religare Life Insurance Company Limited as its Chief Executive Officer in July 2007.

Rajiv Jamkhedkar has two decades of experience in Retail Financial Services in India. He has worked in all parts of the country – the North, South and Western India. Mr. Jamkhedkar started his career as a Management Associate at Citibank N.A. During the course of more than a decade, he worked in Service, Sales and Product management roles in a variety of businesses in Consumer Banking.

During his last assignment at Citi, Mr. Jamkhedkar was head of Personal lending & SME segment, Citibusiness. His main achievement was that he quadrupled the balance-sheet in 5 years and made these as two of the most profitable businesses for the bank.

Mr. Jamkhedkar has been involved in start-ups including a three year stint in HSBC, where he started up the Retail Assets division of HSBC in India. Mr. Jamkhedkar has a B.Tech Degree in Electronics Engineering from IT - BHU and an M.B.A. degree from Faculty of Management Studies, Delhi University. 

BOARD OF DIRECTORS

·       CHIEF EXECUTIVE OFFICER    

RAJEEV JAMKHEDKAR

·       CHIEF FINANCIAL OFFICER & APPOINTED ACTUARY                           

K.S GOPALAKRISHNAN

·       CHIEF INVESTMENT OFFICER

SAIBAL GHOSH

·       CHIEF MARKETING OFFICER                            

YATEESH SRIVASTAVA         

·       AUDIT RISK & COMPLAINCE OFFICER                                                     

 DEBMALYA MAITRA

MAJOR COMPETETORS OF AEGON RELIGARE LIFE INSURANCE COMPANY

1.      LIFE INSURANCE COMPANY LIMITED (LIC)

2.      BIRLA SUN LIFE INSURANCE COMPANY LIMITED

3.      ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

   

   4.  HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

 

5.  TATA AIG LIFE INSURANCE COMPANY LIMITED

   

6. MAX NEW YORK LIFE INSURANCE COMPANY LIMITED

 

7.   OM KOTAK MAHINDRA LIFE INSURANCE COMPANY LIMITED

   

8.  AVIVA LIFE INSURANCE COMPANY LIMITED

9. ING Vysya LIFE INSURANCE COMPANY LIMITED

 

 10.  SBI LIFE INSURANCE COMPANY LIMITED

 

 11. METLIFE INDIA LIFE INSURANCE COMPANY LIMITED

                                                      

STAR CHILD PLAN                                                PROTECT GAIN PLAN                                   

                                                                                                                   PREMIUM GAIN PLAN                                                               WEALTH PROTECT PLAN

                                                                                                                    

                                                         

PREMIUM GAIN PLUS PLAN                  INVEST MAXIMISER PLAN

PENSION PLAN

   

Star Child                                                                                                            

 AEGON Religare Star Child Plan

To be able to meet your children’s needs and aspirations is what you always strive towards. AEGON Religare Star Child Plan aims to help you in doing just that. It not only makes provisions for your children’s future but also ensures that their future remains secured.

This plan not only make provisions for your child’s future but also ensures that their future is remains secures in the event of your unfortunate demise, we assure a lump sum premium and waive off of future premium till maturity.  

Features

Waiver of Premium In the event of your unfortunate demise we assure a lump sum payment and waive off all future premiums till maturity.

Invest Protect Option If you opt for Invest Protect option, it will not only help you gain from your investment but also minimize the risk of returns as your policy nears maturity. It aims to protect your money by systematically shifting the Fund from the Enhanced Equity Fund to the Secure Fund during the last 3 policy years.

Auto-rebalancing At the end of every policy year, this feature automatically rebalances the allocation of your investments in various funds to the original proportions you had chosen.

                                                  

                                                                                                                                                 

Switch This feature helps you shift your investments from one fund to another. Four switches are free in a policy year.

Maturity On maturity, you receive the fund value existing on maturity. If you do not wish to take the entire maturity amount at one go, you can avail of the Settlement Option.

4 Fund Options You have the option of choosing from 4 funds – Secure, Debt, Balanced and Enhanced Equity Fund.

Partial Withdrawal You or the nominee after death of the Life Assured can partially withdraw your money after first 3 policy years. The maximum amount of partial withdrawal in any policy year is 50% of the fund value at the beginning of that policy year. You can also avail of AEGON Religare Star Child Plan’s Systematic Partial Withdrawal facility by which we redeem units periodically from your unit account and credit the money to your bank account. You can opt for systematic partial withdrawal frequency, say monthly or quarterly for the duration you choose.

Benefits

• Choice of investment fund.
• Option of withdrawals.
• Option of transfer fund
• Option to top-up investments
• Liquidity as per requirements
• Tax benefit

AEGON Religare Protect Gain Plan                        

Your life has many phases and it changes with time. But it doesn't have to be a financial roller coaster ride for you. Life, if systematically managed, can constantly keep changing for better, leading only to a more secured tomorrow. AEGON Religare Protect Gain plan aims to do just that for you.    Protection plans are Term Plans which provide only life cover. These plans can help you get adequately covered and secure your family financially in case of unfortunate event. These are low cost life insurance plans.

If you opt for Invest Protect option, it will not only help you gain from your investment but also minimize the risk of returns as your policy nears maturity. It aims to protect your money by systematically shifting the Fund from the Enhanced Equity Fund to the Secure Fund during the last 3 policy years.

Features and Benefits

Auto-rebalancing feature, at the end of every policy year, automatically rebalances the allocation of your investments in various funds to the allocation proportions chosen by you.

Special Units

You will earn additional special units if your policy term is 15 years or more. The special units will be added to your account at the end of 10th year and every 3rd year thereafter. The value of special unit would be equal to 1.50% of the average fund value of the last 36 months before the allotment of special units.

AEGON Religare Wealth Protect Plan                         

                                                                        

A plan that ensures, that you never miss an opportunity to maximise the gains and shields it during down turn. AEGON Religare Wealth Protect Plan guarantees that the returns will not dip below 80% of highest NAV during the policy term.

Key Features

NAV Protector Fund - The NAV Protector Fund aims to maximise gains from your investments and at the same time protect such gains from eroding. The premiums allocated to the NAV Protector Fund will be invested in a mix of equity and money market instruments. The proportion of equity will be dynamically managed according to a predefined rule.

Reset Days - Every Friday will be the reset day for the Wealth Protect Plan.

Special NAV - Special NAV is 80% (Eighty percent) of the highest NAV declared on any reset day. Refer to the Terms & Conditions to understand how a special NAV is calculated for Regular Premium and Top-Up Premium.

 Special fund value - Special Fund Value is calculated as, higher of the NAV as on date or the Special NAV multiplied by the number of units in your unit account i.e. (Higher of NAV as on date or Special NAV) x Number of Units.

Key Benefits

On Maturity - On maturity, you receive the Special Fund Value (as explained above) as on maturity date plus Special Addition.

Partial withdrawal - You can partly withdraw your money after the first 3 policy years. The minimum amount of partial withdrawal is Rs. 5,000 and the maximum amount of partial withdrawal allowed in any policy year is 20% of the fund value at the beginning of that policy year.

Surrender - You can surrender the policy any time after the first 3 policy years. Surrender Value is Special Fund Value minus the surrender charges.

Death - In case of your unfortunate demise during the policy term, your nominee will receive the Sum Assured or the Special Fund Value, whichever is higher. For further details, refer to Terms and Conditions.

AEGON Religare Premium Gain Plan                                                      

You've always worked hard to give your family nothing but the best. But growing expenses, never-ending price hikes and inflation make most of your plans difficult. Which is why, it becomes all the more important to invest and set aside that little something for whatever may come your way. AEGON Religare Premium Gain Plan helps maximise your investments and gives you the best possible returns.

Advantage  

It will not only help you gain from your investments but will also minimize the risk on your returns as your policy nears maturity.

It aims to protect your money by systematically shifting the units from Enhanced Equity Fund to the Secured Fund during the last three policy years. 

BENEFITS 

• Choice of investment funds
• Option of withdrawals
• Option to transfer Funds
• Option to top-up investments
• Tax benefit

Have money but no time to spend it? Ensure that it is not the other way round tomorrow. Know how much pension you would require when you retire and start saving for your retirement today.

                                                                           

AEGON Religare Premium Gain Plus Plan                     

You've always worked hard to give your family nothing but the best. But growing expenses, never-ending price hikes and inflation make most of your plans difficult. Which is why, it becomes all the more important to invest and set aside that little something for whatever may come your way. AEGON Religare Premium Gain Plus Plan helps maximize your investments and gives you the best possible returns.

AEGON Religare Invest Maximiser Plan                    

AEGON Religare Invest Maximiser Plan aims to maximize your investment with the lowest possible premium allocation charges. AEGON Religare Invest maximiser not only maximizes investment but also provides you necessary protection.

                                                                        

AEGON Religare Pension Plan                         

Today, you are living comfortably. There is a regular inflow of income and your bills are paid on time. However, the future will be different. Rising inflation will affect the price of the smallest of items. AEGON Religare Pension Plan provides you with a regular pension that will help you take care of the much needed basic necessities, post-retirement.

AEGON Religare Intra Pension Plan               

All your life, you strive hard and make sure you earn enough and more to ensure that you and your family get the best of everything. Why should your post-retirement life be any less?  

It will not only help you gain from your investments but will also minimize the risk on your returns as your policy nears maturity. It aims to protect your money by systematically shifting the units from Enhanced Equity Fund to the Secured Fund during the last three policy years.  Critical Illness Rider, Accidental Death, Disability, Dismemberment Rider

BENEFITS 

• Choice of investment funds
• Option of withdrawals and to transfer Funds
• Tax benefit
• Option to top-up investments

SWOT analysis of the Company

STRENGTHS:

·         AEGON has over 160 years of experience in the insurance business

·         Religare is one of India’s leading integrated financial services group in India

·         Highly successful ad campaign K.I.L.B.

·         Advance information technology in extensive use

·         Has strong commands &popularity in pension plan.

·         Joint venture with Bennett & Coleman gives prestige to popularity of co.    

·         Worldwide distribution network

·         Provides a good range of unit linked products(ULIP) to its customers

WEAKNESSES:

·       Loose departmental Structure

·       Being a new entrant in India the awareness is low about co

·       No decentralization of AEGON Life Insurance Co.

·       Less number of offices in the country

OPPORTUNITIES:

• Wide geographical reach
• Still large numbers of people are required to be insured in India.
• Since India is a developing country, it can be seen as a high potential area

THREATS:

• Close competition in premium and commission charged
• Large Competition
• Being a late entrant  in India, the life insurance market has been already exhausted by others
• The brand is yet to gain popularity

HOW MANY INVEST

 

Analysis

After analyzing the information, of data collected from visited customers, it was found that out of 100 people only 66 invest their savings, while 34 do not invest and keep cash idle in their lockers.

Those who are investing do not have complete information about various financial products available in the market.

PREFERENCE OF INSURANCE FOR INVESTMENT PURPOSE

Analysis

After analyzing the information, of data collected from visited customers, it was found that out of 100 around 48 preferred insurance for making investments.

Whereas the others, viz., 52 did not liked insurance as the area of their investments.

AWARENESS ABOUT AEGON RELIGARE LIFE INSURANCE COMPANY

Analysis

After analyzing the information, of data collected from visited people, it was found that out of 100 people, 22 were aware about AEGON Religare while others have hardly heard about the company,

OBJECTIVE OF INVESTMENT IN ULIP

Analysis

After analyzing the information, of data collected from visited people, it was found that the major objective for investments in ULIPs is tax planning, while retirement and child education/marriage are secondary.

TIME HORIZON FOR MAKING INVESTMENT

Analysis

After analyzing the information, of data collected from visited people, it was found that most people either chose 2-5 years or 6-10 years or 11-15 years time period for investing their funds.

While hardly 25% chose the extreme less than 2 years or over 15 years time period for investing their funds.

OPINION WHILE MAKING INVESTMENT

Analysis

After analyzing the information, of data collected from visited people, it was found that out of 100 people 37 take the opinion of financial consultants, while 34 do not take opinions from anyone.  Only 29 consult their family and friends.  

PREFERRED FORM OF MAKING INVESTMENT

Analysis

After analyzing the information, of data collected from visited people, it was found that still FDs are popular in Varanasi followed by traditional plans and shares, while mutual funds and ULIPs are new for them.

FACTORS CONSIDERED WHILE

SELECTING A FUND

Analysis

After analyzing the information, of data collected from visited people, it was found that past returns is the important factor while selecting a fund.

Whereas the objective of the Fund and the reputation of Fund house are also the relevant considerations while selecting a fund.

FACTORS CONSIDERED WHILE MAKING INVESTMENT

 IN ULIP

Analysis

After analyzing the information, of data collected from visited people, it was found that tax saving and returns on investment are major considerations while making investment.

Conclusions and Recommendations

Conclusions

1.    There are still large numbers of people who do not invest their savings and keep them idle.

2.    Around half of the people consider insurance as a good area for investing their funds.

3.    Even being a late entrant in a highly competitive insurance market AEGON Religare is well aware among customers.

4.    Tax Planning is the major objective for the purchase of ULIPs followed by Retirement and Child education/marriage.

5.    In India people prefer to invest their funds for long terms especially for period above 5 years.

6.    The survey has shown that customers are quite concerned about their funds and thus take financial consultant’s advice before making investment.

7.    Indian investors are conservative and invest in FDs and traditional plans.

8.    But there are a majority of investors who are switching towards Mutual Funds and ULIPs.

9.    Today’s investor is educated and invests in ULIP after considering a number of factors like Fund’s objective, reputation of the Fund, past returns, etc.

10.     Safety returns and tax saving ability of a ULIP influence the decision making ability of customers.

 

RECOMMENDATIONS

Awareness about the Company

AEGON Religare is quite a late entrant in the life insurance industry, but due to its extensive promotional programs it is gaining awareness.

Pre-Purchase Queries

For a life insurance company it is useful to allow their prospective customers to remove all their queries before any sale of policies.

Customer-Service

ULIPs are prone to market changes. Thus, the customer needs to be informed about it regularly through annual report, covering the fund performance market developments etc. which should include fund performance analysis, investment portfolio of the fund, investment strategies and risk control measures adopted.

Level of Satisfaction

As per the findings of the survey undertaken, the level of satisfaction for AEGON Religare ULIPs is neither too high nor too low. So a great deal of effort is needed to garner the goodwill of the client.

Customer Service

1)   ARLC should try to maintain more close and convincing relationship with its customers. It is a very essential element in industrial marketing.

2)   The customer should be provided all information in details as well as should be acquainted with the facilities and schemes available such as Annual Reports, Fund’s performance Analysis, etc.

3)   The concerned authorities should strictly follow the time schedule regarding the issue of policy.

4)   After sales service should be made more regular and sharp.

5)   Customer support department should be expanded in terms of expertise and personnel. Simultaneously it should be furnished with new technology in order to make the customer support system more active and improved.

Comments

§  Unit Linked Insurance Plans (ULIPs) have emerged as a hybrid insurance product which combines the features both of an insurance plan and a mutual fund. It has provided customers the insurance cover and an opportunity to participate in the gains of capital market.

§  ULIPs also provide the tax incentive to its customers. They can be provided through various product lines viz. child plans, retirement plans, pension plans, etc. to satisfy the different needs of customers.

§  Although AEGON has 160 years of experience in pension it is yet to gain popularity in India.  In the present scenario the competitors of AEGON Religare Life Insurance Company (ARLC) are coming out as mushrooms.

§  In such a highly competitive market ARLC must find a way to get itself noticed out of the bunch. As far as Retirement Plans and Child Plans are concerned these are well known among customers. The Protect Gain Plan is high return oriented plan and businessmen prefer this plan.

                                                                             

                            QUESTIONNAIRE

1.    Do you invest?

          

— Yes                     — No

2.    Will you prefer insurance for investment purpose?

— Yes                     — No

3.    Do you have any insurance plan?

— Yes                     — No

4.    If yes, then name the company?

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5.    Are you aware about AEGON Religare Life Insurance Company?

— Yes                     — No

6.    What is your Investment objective in ULIP?

      — Dream Home

      — Tax Planning

      — Child Education/ Marriage

      — Retirement

7.    Time horizon in which you have to achieve your financial goal?/how long do you plan to invest your money?

      — Under 2 years

      — 2-5 years

      — 6-10 years

      — Over 15 years

8.    Whose opinions do you take while making your investments?

      — Own

      — Friends

      — Family

      — Investment Consultants

9.    Most preferred form of investment?

      — Traditional Plans

      — Mutual Funds

      — FDs

      — Shares

      — ULIP

10.                        And why?

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11.                       What factors you consider before choosing a Fund?

      — Fund Manager

      — Reputation of Fund House

      — Past Returns

      — Investment objective of the Fund

12.                        Rank the following factors while making investment in ULIP?

      — Returns

      — Safety

      — Risk Cover

      — Tax Saving

BIBLIOGRAPHY

Websites

• www.AEGONReligare.com

                 

• www.IRDA.com

             

• www.insurancemagic.com

BOOKS

§  Research methods and methodologies-C.R Kothari

§  Marketing management-Philip Kotler

§  Insurance Principles and Practices-M.N. Mishra

§  Principles of Insurance-Motihar

§  IC-33