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A Study of Unit Linked Insurance Plans of ICICI Prudential Life Insurance
By
Divya Y. Lakhani, Assistant Professor
Dr. Vikhe Patil Foundation’s Pravara Centre for Management Research and Development, Pune
ABSTRACT
Over the past years Unit Linked Insurance Plans (ULIP) had emerged as a major player in savings mobilization. Investors had showed keen interest by subscribing to ULIP schemes anticipating higher returns. However with the global recessionary trend the performance of ULIP had been drastically affected. The BSE Sensex which had shot up to 21000 points came crashing down and stood at 8335 points on12th March 2009 and had greatly affected the Net Asset Value (NAV) across all the plans of various companies.
The objective of this paper is to study the relation between returns and Sensex, investors’ preference for ULIP and Equity, growth and penetration of ICICI Prudential and the performance of some of its ULIP schemes.
The hypotheses guiding this study are:
1) Ho = Fluctuations in stock market do not adversely affect the NAV of ULIP
2) Ho = Income of the investors does not affect the fund option selected by the investors.
3) Ho = Age does not affect the preference for type of insurance (traditional or unit – linked) selected by the investors.
The major finding of this study is that the NAV for equity based fund options moves in tandem with Sensex while for debt based fund options it is not much affected by the movement of Sensex.
Keywords: ULIP, risk-return, Net Asset Value, Sensex
A Study of Unit Linked Insurance Plans of ICICI Prudential Life Insurance
Introduction
Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is a loss of income to the household. The family is put to hardship. Sometimes, survival itself is at stake for the dependants. Risks are unpredictable. Death/disability may
A Study of Unit Linked Insurance Plans of ICICI Prudential Life Insurance
By
Divya Y. Lakhani, Assistant Professor
Dr. Vikhe Patil Foundation’s Pravara Centre for Management Research and Development, Pune
ABSTRACT
Over the past years Unit Linked Insurance Plans (ULIP) had emerged as a major player in savings mobilization. Investors had showed keen interest by subscribing to ULIP schemes anticipating higher returns. However with the global recessionary trend the performance of ULIP had been drastically affected. The BSE Sensex which had shot up to 21000 points came crashing down and stood at 8335 points on12th March 2009 and had greatly affected the Net Asset Value (NAV) across all the plans of various companies.
The objective of this paper is to study the relation between returns and Sensex, investors’ preference for ULIP and Equity, growth and penetration of ICICI Prudential and the performance of some of its ULIP schemes.
The hypotheses guiding this study are:
1) Ho = Fluctuations in stock market do not adversely affect the NAV of ULIP
2) Ho = Income of the investors does not affect the fund option selected by the investors.
3) Ho = Age does not affect the preference for type of insurance (traditional or unit – linked) selected by the investors.
The major finding of this study is that the NAV for equity based fund options moves in tandem with Sensex while for debt based fund options it is not much affected by the movement of Sensex.
Keywords: ULIP, risk-return, Net Asset Value, Sensex
A Study of Unit Linked Insurance Plans of ICICI Prudential Life Insurance
Introduction
Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is a loss of income to the household. The family is put to hardship. Sometimes, survival itself is at stake for the dependants. Risks are unpredictable. Death/disability may
References: Books: 1) Cooper Donald R., Business Research Methods, New Delhi, Tata McGraw Hill Education Private Limited, 2009 2) Gupta, S. P., Statistical Methods, New Delhi, Sultan Chand & Sons., 2008 3) Kothari, C.R., Research Methodology Methods and Techniques, New Delhi, New Age International Pvt Ltd, Publishers., 2004 4) Kulkarni, Mahesh. K., Research Methodology and Project Work, Pune, Nirali Prakashan, 2003 5) Shajahan, S., Research Methods for management, Mumbai, Jaico Publishing House., 2006 4) Kansal Pradeep, ‘Solvency Margin in Indian Insurance Companies’, The Chartered Accountant, June, 2004, p. 1352-1354 5) Lubos Pastor and Robert F