AN ATTITUDINAL STUDY OF BUYING BEHAVIOUR OF ULIP INVESTORS IN INDIA

Volume : IV, Issue : III, March - 2015

Abdul Tayyab Khan

ULIP is an abeviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy which provides a combination of 

risk cover and investment. The dynamics of the capital market have a direct be� on the performance of the ULIPs. For 

selling an ULIP not only the in–depth knowledge of the product is required but also the scanning and keen observation 

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 

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 

basic features of ULIPs and how they are different from traditional insurance plan but they were not given a very detailed knowledge of capital 

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 

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.

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 

supposed to possess all the required knowledge regarding a particular insurance plan which he is suggesting and selling and over all general 

awareness of insurance as he is been through all the prerequisite trainings that are required for becoming an FPA or insurance agent. But with 

the addition of new ULIPs every now and then in the insurance portfolio things are becoming more complex to understand both for the investors 

and insurance agents.

The present study has been undertaken to identify the association between the selling techniques and advices of FPAs and investment behaviour 

of the individual and also analyzing the acceptance of insurance by them. The study was conducted using the survey method (Personal 

interviews and Telephonic interviews). Data was collected through a close ended structured questionnaire from a sample of 150 respondents 

from Lucknow. Regression analysis and Cross Tabs was used to analyze the data and identify the effect of customers’ perception about the quality 

of performance of various factors on customer satisfaction.