Asian Journal of Management

K. Hanumantha Rao ¹, T. Gopi ²

Affiliations
1 Laqshya College of Management, JNTU, Khammam, IN
2 University PG College, Kakatiya University, Khammam, IN

Abstract

The foundation of life insurance is the recognition of the value of a human life and the possibility of indemnification for the loss of that value. Mutual fund industry has gained importance after liberalization policy of the Government, but the function of Unit Trust of India (UTI) marked the evolution of the Indian mutual fund industry in the year 1963. With the privatisation of the insurance sector, many companies emerged with unit linked insurance plans (ULIP), but long before this UTI has come into play with ULIP-1971 with an objective of returns through growth. ULIPs are such schemes that provide a combination of benefits of life insurance and diversified investment. With high competition existing among these companies and advancement of information technology, customers are able to know information from all corners and also have many choices to invest at their behest. Organisations have to move to provide innovative services to attract the customers The present study includes data collection through questionnaire and also personal interview of the customers to know how do they perceive UTI-ULIP. Chi-square has been applied to find the product validation as a better option for investment there being many avenues for investment. Concepts are described. Suggestions are made at the end for improving the perception level of the customers, and changes that may be made to make unit linked insurance plan a better alternative

Keywords

Mutual Fund, Insurance, Unit Linked Insurance Plan, Consumer Behaviour, Perception, Investors, Investment Avenues, SEBI

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K. Hanumantha Rao ¹

Affiliations
1 Manair College of Management, Khammam, Kakatiya University, Warangal, Andhra Pradesh, IN

Abstract

Financial performance is that aspect generally through which every business organization will be measured throughout its existence. The concept itself is multidimensional in its sustainability. Profits are the prime concern and objective of any business. Profits are necessary for the expansion of business and for paying the dividend to the share holders. The financial performance will be measured through various techniques among which the ratio analysis has its fundamental importance. In the present study the aspect of ratio analysis was employed through which the simplification process of understanding financial statement was done in which the aspects of capital investment and profits were branched out as variables. The techniques of ratios, correlation and t-test have been applied to find whether the relation is effective between profits and capital investment. The present study on the financial performance of public sector undertakings was made on Rashtriya Chemicals and Fertilizers Limited, a profitable public sector undertaking in India. For the purpose of the present study two hypotheses were developed to test their significance and viability. The end results suggest that there exists a strong correlation between the existing variables ie: capital investment and profits.

Keywords

Capital Investment, Profits, Ratio-Analysis, PBDIT, Financial Performance.

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S. Kamaleshwar Rao ¹, K. Hanumantha Rao ²

Affiliations
1 Professor, Department of Commerce and Business Management, Kakatiya University, Warangal, Telangana, IN
2 Research Scholar, Department of Commerce and Business Management, Kakatiya University, Warangal, IN

Abstract

The Indian life insurance sector was the tenth largest life insurance market in the world and the fifth largest in Asia in terms of total premiums in 2016. Life insurance is bought lesser in India by rural population. The tendency is to defer the purchase decision. The possibility of death is ignored by the rural people; however there is more possibility of such misfortune for people living in rural areas. The rural people never believe that they can succumb to destiny and they think they will live a long and healthy life. The rural population in India is without life insurance cover and this part of the population is also subject to weak social security and pension systems with hardly any old age income security. Every insurer has to follow the rules regarding rural and social obligations from time to time. The present study is to examine the business done in the rural sector by the life insurance companies. LIC, SBI Life Insurance Co. Ltd and ICICI Pru Life Co. Ltd and Private Sector on the whole have been taken for the study. It has been found that all the three companies and the private sector on whole have maintained the required percentage of policies to be issued in rural areas of their respective businesses during the study period. Not even two percent of the rural population has been covered in any of the years under study. The reasons might be due to lack and low awareness of the people about life insurance, low affordability and low purchasing power. These can be trounced by using social media, TV and radio, campaigns and developing trust among the rural people by providing quality service.

Keywords

Rural Sector, Population, GDP, Insurance Penetration, Micro Insurance.

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