Pnb Met Life New

CONTENT OBJECTIVE METHODOLOGY INTRODUCTION ORGANIZATIONAL PROFILE CONCEPTUAL FRAMEWORK ANALYSIS FINDINGS AND SUGGESTION BIBLIOGRAPHY

PROJECT ON PNB METLIFE

OBJECTIVE

 TO KNOW ABOUT THE UNIT LINKED INVESTMENT PLAN  TO KNOW ABOUT THE EVALUATION OF ULIP  TO STUDY ABOUT THE FEATURES AND CRITERIA OF PNB METLIFE TOWARDS ULIP

PROJECT ON PNB METLIFE

METHODOLOGY

SECONDARY DATA

A large amount of secondary data has been collected from secondary sources. Some of the sources are: Reports of PNB METLIFE.  Articles from Newspapers and magazines. Various web sites of the Company and related sites.

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INTRODUCTION

Unit Trust of India The Unit Trust of India largely deals with the mutual fund schemes and thereby popularly known as UTI Mutual Fund all over India. It is managed by UTI Asset Management Company Private Limited which was established on January 14, 2003. UTI Asset Management Company Private Limited has been constituted by the UTI Trustee Company Private Limited for dealing with various schemes developed by UTI mutual fund and also the schemes that are transferred by the UTI mutual fund as well.

The business services of UTI mutual fund that does not include fund management services get a good deal of professional back office support from the UTI Tower, the registered office of UTI Asset Management Company Private Limited which is located at Mumbai (India). This will correspond with the provisions of Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives that are being adopted by various schemes.

Unit Trust of India came into effect from 1st February, 2003. The UTI PROJECT ON PNB METLIFE

Mutual Fund has gained fame for designing a set of schemes applicable to every class of citizens in India. The Unit Trust of India has a number of service centers all across the globe that comprise of 70 UTI Financial Centers and UTI International offices in Dubai, London, and Bahrain. The Bank of Baroda, Punjab National Bank, and Life Insurance Corporation of India are the major sponsors of UTI Mutual Fund. The establishment of Unit trust of India actually heralded the scheme of mutual fund schemes in India. In 1964, UTI Mutual Fund introduced a flagship scheme US-64 and became the conventional term for mutual fund services in India.

Unit Trust of India was about to face a major collapse in 2001 just before the government of India removed it and reconstituted the mutual fund scheme. However, through professional management, UTI Mutual Fund redeemed its tempo once again and achieved a booming market thereafter. UTI Mutual Fund is the largest mutual fund service provider in India and possess assets of around ` 35,028 crore as has been calculated in 2006. Unit Trust of India was initially segregated into two broad divisions namely UTI Mutual Fund and a nominal project of the same. But later on UTI Mutual Fund was taken over by SEBI Regulations while the other division was kept under direct government.

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At present, Unit Trust of India is governed by Mr. U.K Sinha who is also the chairman and managing director of the company

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Evaluation of ULIP A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that unlike a pure insurance policy gives investors the benefits of both insurance and investment under a single integrated plan.

The first ULIP was launched in India in 1971 by Unit Trust of India (UTI). With the Government of India opening up the insurance sector to foreign investors in 2001 and the subsequent issue of major guidelines for ULIPs by the Insurance Regulatory and Development Authority (IRDA) in 2005 several insurance companies forayed into the ULIP business leading to a plethora of ULIP schemes being launched to serve the investment needs of those looking to invest in an investment cum insurance product.

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Working Principle A ULIP is basically a combination of insurance as well as investment. A part of the premium paid is utilized to provide insurance cover to the policy holder while the remaining portion is invested in various equity and debt schemes. The money collected by the insurance provider is utilized to form a pool of fund that is used to invest in various markets instruments (debt and equity) in varying proportions just the way it is done for mutual funds. Policy holders have the option of selecting the type of funds (debt or equity) or a mix of both based on their investment need and appetite. Just the way it is for mutual funds, ULIP policy holders are also allotted units and each unit has a net asset value (NAV) that is declared on a daily basis. The NAV is the value based on which the net rate of returns on ULIPs are determined. The NAV varies from one ULIP to another based on market conditions and the fund’s performance.

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Features ULIP policy holders can make use of features such as top-up facilities, switching between various funds during the tenure of the policy, reduce or increase the level of protection, options to surrender, additional riders to enhance coverage and returns as well as tax benefits. Types There are a variety of ULIP plans to choose from based on the investment objectives of the investor, his risk appetite as well as the investment horizon. Some ULIPs play it safe by allocating a larger portion of the invested capital in debt instruments while others purely invest in equity. Again, all this is totally based on the type of ULIP chosen for investment and the investor preference and risk appetite. Charges Unlike traditional insurance policies, ULIP schemes have a list of applicable charges that are deducted from the payable premium.[4]The

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notable ones include policy administration charges, premium allocation charges, fund switching charges, mortality charges, and a policy surrender or withdrawal charge. Some Insurer also charge "Guarantee Charge" as a percentage of Fund Value for built in minimum guarantee under the policy. Risks Since ULIP returns are directly linked to market performance and the investment risk in investment portfolio is borne entirely by the policy holder, one needs to thoroughly understand the risks involved and one’s own risk absorption capacity before deciding to invest in ULIPs. Providers There are several public and private sector insurance providers that either operate solo or have partnered with foreign insurance companies to sell unit linked insurance plans in India. The public insurance providers include LIC of India, SBI Life and Canara while some of the

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private insurance providers include ICICI Prudential, HDFC Life, Bajaj Allianz, Aviva Life Insurance and Kotak Mahindra Life.

Unit linked insurance plan (ULIP) is a life insurance solution that provides the client with the benefits of protection and flexibility in investment. It is a solution which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. The investment is denoted as unit and is represented by the value that it has attained called as Net Asset Value (NAV). ULIPs are a category of goal-based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards providing a life cover. The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund opted by the customer. Simply put, ULIPs are structured in such that the protection PROJECT ON PNB METLIFE

element and the savings element are distinguishable, and hence managed according to your specific needs. In this way, the ULIP plan offers unprecedented flexibility and transparency. ULIPs came into play in 1960s and became very popular in Western Europe and America. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers to the clients. As time progressed the plans were also successfully mapped along with life insurance needs to retirement planning .In today’s times ULIP provides solution for all the needs of a client like insurance planning, financial needs, financial planning for children’s future and retirement planning.

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ULIP . Competition in this market is increasing with companys’ continuous effort to lure the customers with new product offerings. However, the market share of private insurance companies remains low in the 25-35% range. Even to this day, Life Insurance Corporation (LIC) of India dominates Indian insurance sector. The heavy hand of government still dominates the market, with price controls, limits on ownership, and other restraints. They private players are still in their initial days and would take some more time to capture a good market share. At present they are coming up with new and innovative ideas. Since the last decade the life insurance industry in India has been growing very fast and many new companies have entered this business insurance. The Indian life insurance industry has recorded a robust growth of more than 16 per cent for the nine-month period which ended on December 31, 2008.It is expected to grow at an amazing rate of 20 per cent this year Also in the present scenario the most sought after insurance plans PROJECT ON PNB METLIFE

are the Unit Linked insurance Plans (ULIPs). A ULIP is a life insurance policy which provides a combination of risk cover and investment. ULIPs have gained high acceptance due to attractive features they offer like flexibility, transparency, liquidity and a vast variety of fund option. Unit linked plans are suitable for all customer profiles; however as a general belief the risk averse investors tend to choose traditional plans and an informed customer prefers a ULIP. ULIPs offer the kind of flexibility that no insurance product can. ULIPs essentially combine the benefits of an insurance policy and a market-linked investment. Investors can select a ULIP with an equity-debt combination that is in line with their risk profile. A risk-taking investor would typically select one with a high equity component, while a risk-averse investor would opt for a debtheavy one. Simply put, ULIPs are structured in such a way that the protection element and the savings element are distinguishable, and hence managed according to your specific needs. In this way, the ULIP plan offers unprecedented flexibility and transparency. So with many players around for a company to really be successful it has to really be PROJECT ON PNB METLIFE

very efficient on all fronts. It has to constantly adapt to the changing consumer preferences with a lot of new innovations and implementing new technology try to different from the lot. Especially if it is a new player in the market the company has to really work very hard to get into the completion and stay afloat

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INDUSTRY PROFILE

“Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed amount of money on the happening of a certain event.” Insurance is a protection against financial loss arising on the happening of an unexpected event. The primary purpose of Life Insurance is the protection of the family. Insurance in it's various forms protects against such misfortunes by having the losses of the unfortunate few paid by the contribution of the many who are exposed to the same risk. This is the essence of insurance- the sharing of losses and substitution of certainty for uncertainty. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the insurance companies act as trustees of the amount collected. In is a system by which the losses suffered by a few are spread over many, exposed to similar risks. PROJECT ON PNB METLIFE

In the western world, life insurance evolved mainly from the maritime industry. Started by private financiers who used to gamble on the lives of seafarers by offering five times the money deposited with them in case of certain contingencies?

In its present form, life insurance has its origin in England and made its debut in India in the year 1818.Initially, Indians were not considered on par with Europeans as far as their insurability was concerned. There were also many other failures. It was in the early part of the 20th century that some kind of legislation was made to regulate the industry. From then on life insurance made great strides in the country.

At the time of independence and thereafter, there were more than 200 companies operating in India and not all of them on sound ethical

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principles. Many factors combined together to prompt the then government to nationalize the life insurance industry in 1956 to form the Life Insurance Corporation of India.

The years from 1956 to 1999 saw the life insurance corporation of India emerge as a giant financial institution and the lone organization purveying life insurance, if we ignore the minimal presence of postal life insurance. The institution succeeded in penetrating in many areas and segments of the population and in garnering public money for public welfare. It was in the 1990’s that the winds of change started sweeping over India and brought in their wake many changes in the economy. Liberalization ensured competition in many fields and there was a clamor that the insurance industry too is opened up to Private Indian and foreign players to provide the customer with a choice.

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The Malhotra committee, appointed in 1993 was given the mandate to study the industry and to suggest the changes that were necessary to make it modern and in tune with people’s aspirations. The report submitted by the committee was the precursor of the IRDA Bill.

By the passing of the IRDA Bill, the Insurance sector has been opened up for the private companies to carry on insurance business. Now the life insurance industry in India is rapidly evolving and growing. It has witnessed a big growth as many Indian and foreign were entered in to the Indian insurance sector. The life insurance industry in India has become fiercely competitive with the entry of several new players including major multinational insurers after the deregulation of the sector. It has opened up a range of untapped opportunities for new entrants into the industry, as the potential market for buyers is high since the emerging market in India has a low insurance penetration and high growth rates. PROJECT ON PNB METLIFE

COMPANY PROFILE

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PNB MetLife India Insurance Company Limited (PNB MetLife) is a joint venture where MetLife, Inc. and Punjab National Bank (PNB) are the majority shareholders. PNB MetLife was previously known as MetLife India Insurance Company Limited (MetLife India). MetLife India has been present in India since 2001. PNB MetLife brings together the financial strength of one of the world’s leading life insurance providers, MetLife, Inc., and the credibility and reliability of Punjab National Bank, one of India's oldest and leading nationalised banks. The vast distribution reach of PNB together with the global insurance expertise and product range of MetLife makes PNB MetLife a strong and trusted insurance provider.

PROJECT ON PNB METLIFE

The Company is present in over 150 locations across the country and serves customers in more than 7,000 locations through its bank partnerships with PNB, the Jammu & Kashmir Bank Limited and Karnataka Bank Limited. PNB MetLife provides a wide range of protection and retirement products through its Agency sales of over 25,000 financial advisors and bank partners, and provides access to employee benefit plans for over 800 corporate clients in India. With its headquarters in Bangalore and Corporate Office in Gurgaon, PNB MetLife is one of the fastest growing life insurance companies in the country. The Company continues to be consistently profitable and has declared profits for nine consecutive quarters as of Q2 2012-13.

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"Coming into your own",

performing

as a Leader to be really effective and successful by acting and

making

decisions independently

to

It's all about People, PNB MetLife's key resource.

PNB

MetLife

will

succeed

because

we

winning

are

from within.

get results.

Functioning productively teams

towards

common

Operating with an in a

purpose;

intense to

dedication managing

monetary resources

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realising

the

collective power of diverse

for strong business results.

work-

groups.

Conducting

all

business endeavours

with

truth, sincerity and fairness.

Continuously creating

and

introducing

new

and original ideas and ways of doing things.

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MetLife Inc.

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers.Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East.

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BOARD OF DIRECTORS Rajesh Relan Managing Director & Country Manager PNB MetLife India Insurance Company Limited MSVS Phanesh Appointed Actuary Subhashish Acharya Chief Distribution Officer Sanjay Vij Director - Bancassurance Sameer Bansal Director - New Business Development & Customer Retention Sanjay Kumar Head of Investment Balachander Sekhar Director - Marketing, Products & Strategy Gaurav Sharma Director - PNB Partnership KR Anil Kumar Director - Legal & Risk and Company Secretary PROJECT ON PNB METLIFE

KS Raghavan Chief Operating Officer Bishwajit Choudhary Deputy Director - Internal Audit Vijaya Sanjay Nene Deputy Director - Ethics & Compliance

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PROJECT ON PNB METLIFE

Met Smart Platinum "IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER"

You have always wanted the best for yourself in life. Not surprisingly, your wealth creation & protection needs, which keep changing with your Lifestage, also deserve the best. Keeping this in mind, PNB MetLife is proud to present Met Smart Platinum, a Unit-Linked Plan which can be customized to match your ever changing financial needs! This whole life plan offers you the flexibility of short premium payment commitments along with a multitude of other benefits including the unique Auto Rebalancing Portfolio Strategy.

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Plan Minimum Age at Entry(LBD)7 yearsMaximum Age at Entry(LBD)70 yearsPremium Payment Term (years)5 pay/ 10pay/ entire term of the policyMinimum Annualized Premium (in Rupees)Rs 30,000 for Annual mode Rs 60,000 for other modesMinimum and Maximum multiple for Base Sum AssuredMinimum and Maximum Sum Assured multiple table Premium Payment ModesAnnual, Semi-Annual, Monthly, Quarterly

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Death Benefit In the unfortunate event of death, while the policy is in force & before the maturity date, your nominee will get the following death benefit

i) If the death of the Person Insured occurs before the attainment of age 60: The death benefit payable will be higher of - The Base Fund Value (the value of units pertaining to Base Premium Account), or - The Base Sum Assured less all Partial Withdrawals (excluding any withdrawals made from Top-Up Premium Account), made in accordance with the Partial Withdrawal provisions in the last 24 months preceding the date of death of the Person Insured, or - 105% of the total Regular/Limited Premiums paid ii) If the death of the Person Insured occurs on or after the attainment of age 60: PROJECT ON PNB METLIFE

The death benefit payable will be higher of - The Base Fund Value (the value of units pertaining to Base Premium Account) or - Base Sum Assured less all Partial Withdrawals (excluding any withdrawals made from Top-Up Premium Account) made in accordance with the Partial Withdrawal provisions, during the last 24 months immediately preceding the date of death or all Partial Withdrawals made in accordance with the Partial Withdrawal provisions post attainment of age 60, whichever is higher or . - 105% of the total Regular/Limited Premiums paid.

In addition to any of i) or ii) above, and provided Top-Up Premiums are paid the higher of: - The Top-Up Fund Value (the value of units pertaining to Top-Up Premiums) or - Top-Up Sum Assured (less any Partial Withdrawals from Top-Up Fund Value, as per partial withdrawal provisions before and after age 60, as PROJECT ON PNB METLIFE

stated above) - 105% of the total Top-Up Premiums paid

(As on the date of receipt of written intimation of Claim with appropriate proof of death at our designated office) shall also be payable. Maturity Benefit The policy matures upon attaining age 99 years. The maturity benefit is equal to the Total Fund Value in the Unit Account determined using the Net Asset Value on the maturity date will be payable.

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Reason to buy

1. A unique plan for changing protection and investment needs. 2. Limited pay of 5 years and 10 years with 99 years of coverage. 3. Enhanced protection with riders. 4. A unique auto rebalancing option to help you capitalize on volatie market conditions. 5. *Tax Benefits as applicable.

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You generally like to invest money in.

You generally like to invest money. Cumulative Frequency Valid

Insurance

Percent

Valid Percent

Percent

13

26.0

26.0

26.0

Stock market

1

2.0

2.0

28.0

Mutual fund

6

12.0

12.0

40.0

Bank deposit

28

56.0

56.0

96.0

2

4.0

4.0

100.0

50

100.0

100.0

Both insurance and mutual fund Total

INTERPRETATION : From a sample of 50 customers, 56% of the customers invest money in bank deposit, 26% in insurance sector,12% in mutual fund, then 4% in both insurance and mutual fund,and remaining 2% in stock market. PROJECT ON PNB METLIFE

According to you who among the following life insurance company is best. According to you who among the following life insurance companies is best. Cumulative Frequency Valid

Bajaj Allianz

Percent

Valid Percent

Percent

27

54.0

54.0

54.0

HDFC Standard life

5

10.0

10.0

64.0

Tata AIG

4

8.0

8.0

72.0

Aviva Life

3

6.0

6.0

78.0

SBI Life

11

22.0

22.0

100.0

Total

50

100.0

100.0

INTERPRETATION : From a sample of 50 customers,54% customers select Bajaj Allianz is the best insurance company, and 22% customers choose SBI Life,10%

select HDFC,8% for Tata AIG and

remaining 6% stands for Aviva life insurance company. PROJECT ON PNB METLIFE

How would you rate our products. How would you rate our products. Cumulative Frequency Valid

Excellent

Percent

Valid Percent

Percent

2

4.0

4.0

4.0

37

74.0

74.0

78.0

Fair

9

18.0

18.0

96.0

Poor

2

4.0

4.0

100.0

Total

50

100.0

100.0

Good

INTERPRETATION : From a sample of 50 customers,74% customers thinks that the products offered by Bajaj Allianz Life insurance co. is good,4% thinks its excellent,18% of them select Bajaj Allianz products are fair, and remaining 4% not satisfied with our products. PROJECT ON PNB METLIFE

I would like to invest money in ULIP.

I would like to invest money in ULIP. Cumulative Frequency Valid

Strongly agree

Percent

Valid Percent

Percent

2

4.0

4.0

4.0

Agree

33

66.0

66.0

70.0

Neutral

8

16.0

16.0

86.0

Disagree

5

10.0

10.0

96.0

Strongly disagree

2

4.0

4.0

100.0

50

100.0

100.0

Total

INTERPRETATION : From a sample of 50 customers, 66% agree, 4% of them strongly supporting that fact, and 16% has no opinion about it. And 4% strongly disagreed, remaining 10% also disagree with investment in ULIP.

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Reason for choosing ULIPs because of insurance coverage.

Reason for choosing ULIPs because of insurance coverage. Cumulative Frequency Valid

Percent

Valid Percent

Percent

Strongly agree

14

28.0

28.0

28.0

Agree

32

64.0

64.0

92.0

Neutral

2

4.0

4.0

96.0

Disagree

2

4.0

4.0

100.0

50

100.0

100.0

Total

INTERPRETATION : From a sample of 50 customers, 64% of the customers agree, ,28% of them strongly support it,4% customers didn’t say anything, and remaining 4% disagree with that fact. So we can see that most of the Customers choose ULIP because of insurance coverage

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FINDINGS AND CONCLUSIONS

There is a great future of the life insurance sector in India as 80% of the Indian population is still without life cover and people are just now coming in response to the awareness campaigns being carried out by almost all the insurance companies.

We have found out that age plays a major role in deciding the investment patterns of people as generally the younger class of people tend to take more risk and invest in various instruments more frequently in a year( 2.10 times a year) when compared with the older class of people(1.46 times a year).

Life insurance Corporation (LIC) of India is the company to be least affected during this market slowdown as NAV of its equity growth funds came down just by 23% during this major recession. PROJECT ON PNB METLIFE

Life Insurance Corporation (LIC) of India is still the undisputed market leader as 63% of the respondents surveyed owned a policy in it and it has also got a tremendous rating of 4.2 out of 5 in the survey conducted.

A good positive growth is being shown LIC and even though it is still over one year old and has a long way to go it has already started working hard and is trying to make competition much tougher.

All the products of LIC under Wealthsurance are really very good and have an edge over most of the products of other major life insurance companies as the plans offered by the company are really very flexible.

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BIBLIOGRAPHY www.licindia.com www.irdaindia.org http://www.scribd.com/doc/11005006/Insurance-Industry-GrowthChart-Under-Drive-of-Demand-and-Value-Recommended20090121 http://www.scribd.com/doc/4996143/OVERVIEW-OF-INSURANCESECTOR-INDIA http://www.scribd.com/doc/7044410/ULIPs http://www.indiaprwire.com/pdf/pressrelease/200805079347.pdf http://www.scribd.com/doc/136703/Indian-Insurance-ChangingTrends-and-a-Fresh-Perspective http://www.scribd.com/doc/7216240/Understand-ULIP-Insurance

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