Volume : 4, Issue : 3, March - 2015

AN ATTITUDINAL STUDY OF BUYING BEHAVIOUR OF ULIP INVESTORS IN INDIA

Abdul Tayyab Khan

Abstract :

<p>&lt;div&gt;ULIP is an abeviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy which provides a combination of&amp;nbsp;&lt;/div&gt; &lt;div&gt;risk cover and investment. The dynamics of the capital market have a direct bearing on the performance of the ULIPs. For&amp;nbsp;&lt;/div&gt; &lt;div&gt;selling an ULIP not only the in&amp;ndash;depth knowledge of the product is required but also the scanning and keen observation&amp;nbsp;&lt;/div&gt; &lt;div&gt;of capital market is also required which is troublesome matter on both fronts i.e. on the front of an FPA and on the front of an investor in most of&amp;nbsp;&lt;/div&gt; &lt;div&gt;the time, because no doubt an FPA goes through the prerequisite training by IRDA for selling insurance, but there also he is only taught about the&amp;nbsp;&lt;/div&gt; &lt;div&gt;basic features of ULIPs and how they are different from traditional insurance plan but they were not given a very detailed knowledge of capital&amp;nbsp;&lt;/div&gt; &lt;div&gt;market where the units of an ULIP has to be allocated and how the dynamics of capital market has a direct impact on the different funds of that&amp;nbsp;&lt;/div&gt; &lt;div&gt;are offered in an ULIP, and in which market scenario which fund should be suggested to the investor keeping in view his needs and wants.&lt;/div&gt; &lt;div&gt;The counselling and the advice of these FPAs play a very vital role in helping the investor to get zeroed on a particular plan, because an FPA is&amp;nbsp;&lt;/div&gt; &lt;div&gt;supposed to possess all the required knowledge regarding a particular insurance plan which he is suggesting and selling and over all general&amp;nbsp;&lt;/div&gt; &lt;div&gt;awareness of insurance as he is been through all the prerequisite trainings that are required for becoming an FPA or insurance agent. But with&amp;nbsp;&lt;/div&gt; &lt;div&gt;the addition of new ULIPs every now and then in the insurance portfolio things are becoming more complex to understand both for the investors&amp;nbsp;&lt;/div&gt; &lt;div&gt;and insurance agents.&lt;/div&gt; &lt;div&gt;The present study has been undertaken to identify the association between the selling techniques and advices of FPAs and investment behaviour&amp;nbsp;&lt;/div&gt; &lt;div&gt;of the individual and also analyzing the acceptance of insurance by them. The study was conducted using the survey method (Personal&amp;nbsp;&lt;/div&gt; &lt;div&gt;interviews and Telephonic interviews). Data was collected through a close ended structured questionnaire from a sample of 150 respondents&amp;nbsp;&lt;/div&gt; &lt;div&gt;from Lucknow. Regression analysis and Cross Tabs was used to analyze the data and identify the effect of customers&amp;rsquo; perception about the quality&amp;nbsp;&lt;/div&gt; &lt;div&gt;of performance of various factors on customer satisfaction.&lt;/div&gt;</p>