MARKET ACCEPTANCE OF UNIT LINKED INSURANCE PLANS IN COMPARISON TO TRADITIONAL PLANS AVIVA LIFE INSURANCE COMPANY INDIA LTD.

Bachelor of Business Administration (BBA) Guru Gobind Singh Indraprastha University, Delhi Guide: Prof. R.C Garg NISHAT AHTESHAM 1072131708 Tecnia Institute of Advanced Studies New Delhi 110085 Batch (2008-2011) Submitted by:

COMPANY PROFILE: AVIVA

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Joint venture between Aviva Group and Dabur. Aviva LIC India licenced on 12 Feb 2001, began operating from 1 Apr 2001. Widespread business in 130 countries around the world. Wide area of business. Insurance coverage to individual as well as groups.

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PRODUCT RANGE
The products of Aviva insurance group of India are:
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LifeLong LifeSaver or EasyLife Plus Young Scholar LifeBond and LifeBond Plus PensionPlus LifeShield Freedom LifePlan LifeBond5 Dhan Vriddhi Dhan Sanchay

FACT SHEET
y Foreign partner:

Aviva plc (26% stake). One of the world's top Insurance groups and the biggest in the UK. It is one of the leading providers of life and pensions products to Europe. Aviva has a 50 million-customer base worldwide with 352 billion assets under management.
y Managing Director & Chief Executive Officer:

Mr. TR Ramachandran
y Paid up Capital: Rs 1,888 crores y Locations: 195 branches, close to 3,000 locations

SWOT ANALYSIS
STRENGTHS: y Support sales activities by understanding your customers businesses better y Qualify prospective partners and suppliers y Keep fully up to date on your competitors business structure, strategy and prospects y Obtain the most up to date company information available WEAKNESS: y Private company, lack of trust. y U.K based company y Lack of awareness among customers.

OPPORTUNITIES:
y Huge population of India (not insured). y Wide market.

THREATS:
y Heavy competition among various insurance companies. y More trust upon Govt co.s like LIC.

TRADITIONAL INSURANCE VS. UNIT LINKED INSURANCE

TRADITIONAL INSURANCE UNIT LINKED INSURANCE

Choice of with profit or without Choice of investment in various profit products funds under unit-linked plans. Assured benefit after the end of the contract. Liquidity in the form of surrender value available only after three years of policy commencement. Option to raise loan available Guaranteed addition offered, as per contract. Returns based on contractual terms/actuarial valuation/insurance companies experience Benefit based on capital market performance. Liquidity in the form of surrender value available after year one of policy commencement with or without a levy. No option to raise loan Returns directly proportional to the capital market Returns based on funds underlying assets NAV as on maturity/withdrawal date.

PERCENTAGE BREAK-UP OF ULIP AND TRADITIONAL PLANS OF RESPONDENTS WHO ARE POLICYHOLDERS OF AVIVA.

FINDINGS WITH RESPECT TO AVIVA

y 52% of the respondents were insured with AVIVA. y Out of the respondents who were insured with AVIVA, a major portion

i.e., 84% had taken Unit Linked Products and only 16% had taken Traditional Products.

y As AVIVA DABUR is one of the major private players in the insurance

market of Delhi therefore the awareness about the company amongst the respondents was found to be 100%. called Dhan Vriddhi, sells the most, which comes with Yearly cash dividends, A guaranteed coupon of 20% of the sum assured every 5th year for the rest of the insured s term and complete Tax rebate on the Sum Assured .

y It was observed during the period of training that a Traditional plan

CONCLUSION
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More of the customers opt for Unit Linked product because it gives the flexibility to withdraw their money whenever they want after the completion of 3 years. Unit Linked Plans are sold more than the traditional plans also because it is beneficial for the agents as they get comparatively higher commissions on selling ULI plans(from 35%-40%),as is the case in AVIVA DABUR. ULIPs are also sold more than traditional because it gives a combined benefit of insurance cover with growth in investments depending upon risk-return profile of the customers.

THANK YOU !!