customer satisfection referance to hdfc.doc

7/29/2019 customer satisfection referance to hdfc.doc

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A

PROJECT REPORT

ONCustomer Satisfaction Level

With Reference to

HDFC STANDERD life insurance company.

Submitted to

Submitted By


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Lect.Puneet Garg

A

Avinash Bansal

MBA

3rd

94692

237610

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CONTENTS

S.NO TOPIC P.NO.

1. Acknowledgement 4

2. Executive summary 53. CHAPTER 1. Introduction 7-33

4. CHAPTER 2. Main project 34-36

5. CHAPTER 3. Research methodology & data base 37-39

6. CHAPTER 4. Theoretical framework 40-54

7. CHAPTER 5. Data analysis and interpretation 55-69

8. CHAPTER 6. Conclusion 70-719. CHAPTER 7. Findings 72-73

10. CHAPTER 8. Suggestions 74-75

11. Future possibilities 76

12. Bibliography 77

13. Annexure 79-81

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LIST OF GRAPHSLIST OF GRAPHS

S.NO. TOPICS.NO. TOPIC P.NOP.NO11. Market share of private companies 53. Market share of private companies 53

2. Awareness in life insurance 562. Awareness in life insurance 56

3. Source of awareness 573. Source of awareness 57

4. Needs of insurance 584. Needs of insurance 58

5. Opinion for insurance 595. Opinion for insurance 59

6. Whether insured 606. Whether insured 607. Insurance preference 617. Insurance preference 61

8. Customer satisfaction 628. Customer satisfaction 62

9. Customer preference 639. Customer preference 63

10. Investment area 6410. Investment area 64

11. Pension plan 6511. Pension plan 65

12. Compulsion of insurance plan 6612. Compulsion of insurance plan 66

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ACKNOWLEDGEMENT

My just and foremost thanks go to my training Supervisor Mr. Joginder

Pa l Go yal (Branch Ma na ger ) & Mr . Gurp reet Si ngh (Business

Development Manager) under whose guidance and superv is ion the

present study was conducted.

His sympathet ic and encouraging att i tude was the basis, which made

the study possible.

I am obl iged to a ll the respondents for the ir support by p roviding

valuable Information, which provides a milestone for the study.

Last but not least, I would also l ike to thanks a host of other off ic ia ls

for their Active help and cooperation at each stage of the study.

Final ly I would l ike to thanks my respected and loving parents, who

kept motivating me in completing the summer training and report, with

their valuable suggestions and guidance.

DATE: SIGNATURE:

PLACE: AVINASH BANSAL

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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

The objective of this project was to assist HDFC STANDERD LIFE INSURANCE in

positioning the important role of life insurance sector as an investment being a

leading private life insurance company. For the company to successfully achieve

this, it needs to understand the general publics priorities and feedback so as to

provide them the best solutions through use of superior and flexible products and

services.

This was achieved through a four pronged efforts.

TheFirstobjective of the study isto analyze the general lifestyle of the people (Age,

Occupation & Income scenario) in the region.

The Second objective of the project was to study the opinion of the general public

regarding various preferable investment areas and most important criteria in

investment for them.

The Thirdobjective of the project was to study the role of life insurance sector as an

important tool of investment with different criteria options in it with the help of the

present standing of different life insurance companies.

The Fourth objective was to understand the various challenges before our company

so as to increase the overall Satisfaction level with the company, hereby improving

their retention.

The research methodology consisted of a survey using simple Questionnaire with

the general public mostly based in Chandigarh, and Mohali. The questionnaire used

is given at the end of report.

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CHAPTER NO .1CHAPTER NO .1

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Profile ofProfile of

HDFC Standard LifeHDFC Standard Life

InsuranceInsurance

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HDFC Standard life Insurance

HDFC Standard Life Insurance Company is a joint venture between Indias largest

housing finance provider, HDFC, and Europes largest mutual life Assurance

Company. Standard life assurance company UK.

The partnership

Incorporation of HDFC Standard Life Insurance Company limited.

Our Mission.

Our Values.

The Partnership:

HDFC and Standard Life first came together for a possible joint venture, to enter the

Life Insurance market, in January 1995. It was clear from the Outset that both

companies shared similar values and beliefs and a strong relationship quickly

formed. In October 1995 the companies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC, further strengthening

the relationship.

The next three years were filled with uncertainty, due to changes in government and

Ongoing delays in getting the IRDA (Insurance Regulatory and Development

authority) Act passed in parliament. Despite this companies remained firmly

committed to the venture.

In October 1998, the joint venture agreement was renewed and additional resource

made available. Around this time standard Life purchased 2% of Infrastructure

Development finance Company Ltd. (IDFC). Standard Life also started to use the

Services of the HDFC Treasury department to advise them upon their investments In

India

Towards the end of 1999, the opening of the market looked very promising and both

companies agreed the time was right to move the operation to the next level.

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Therefore, in January 2000an expert team the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5%

stake in HDFC Bank. In a further development Standard Life agreed to participate in

the Asset Management Company promoted by HDFC to enter the mutual fund

market. The Mutual Fund was launched on 20th July 2000.

Incorporation of HDFC Standard Life Insurance CompanyLimited:

The company was incorporated on 14th August 2000 under the name of HDFC

Standard Life Insurance Company Limited. Our ambition from as far back as October

1995 was to be the first private company to re-enter the life insurance market in

India. On the 23rd of October 2000, this ambition was realized when HDFC Standard

Life was the only life company to be granted a certificate of Registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while

Standard Life owns 18.6%. Given Standard Lifes existing investment in the HDFC

Group, this is the maximum investment allowed under current regulations. HDFC

And Standard Life have a long and close relationship built upon shared values andTrust. The ambition of HDFC Standard Life is to mirror the success of the parent

Companies and be the yardstick by which all other insurance companys in India are

measured.

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Our Mission:

We aim to be the top new life insurance company in the market .This does not just

mean being the largest or the most productive company in the market, it is a

combination of several things like

Customer service of the highest order.

Value for money for customers.

Professionalism in carrying out business.

Innovative products to cater to different needs of different customers

Use of technology to improve service standards.

Increasing market share.

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Our Values:

SECURITY:Providing long term financial security to our policy holders will be our constant

endeavor. We will be doing this by offering life insurance and pension products.

TRUST:We appreciate the trust placed by our policy holders in us. Hence, we will aim to

manage their investments very carefully and live up to this trust.

INNOVATION:Recognizing the different needs of our customers, we will be offering a range of

innovative products to meet these needs.

Our mission is to be the best new life insurance company in India and these are the

values that will guide us in this.

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GROUP COMPANIES:

HDFC was incorporated in 1977 with the primary objective of meeting a social Need-

that of promoting home ownership by providing long-term finance to Households for

their housing needs. HDFC was promoted with an initial share Capital of RS.100

million. HDFC is a professionally managed organization with a Board of directors

consisting of eminent person who represent various fields Including finance, taxation,

construction and urban policy & development.

HDFC BANK LIMITED:

The housing development finance corporation limited (HDFC) was amongst the

first to receive an in principle approval from the reserve bank of India (RBI)

to set up bank in the private sector, as part of RBIs liberalization of The Indian

banking industry in 1994. The bank was incorporated in august 1994 in the name

of HDFC BANK LIMITED, with its registered office in Mumbai, India. Banks

aim is to build sound customer franchises across distinct businesses so as to be

the preferred provider of banking services in the segments that the bank

operates in and to achieve healthy growth in profitability, consistent with the

banks risk appetite.

HDFC ASSET MANAGEMENT COMPANY LIMITED:

A mutual fund is a common pool of money in to which investors with common

Investment objective place their contributions that are to be invested in accordance

With the stated investment objective of the scheme. The investment manager would

invest the money collected from the investor in to assets that are defined/ permitted

by the stated objectives of the scheme. For example, an equity fund would invest

Equity and equity related instruments and a debt fund would invest in bonds,

Debentures, gilts etc. The mission is to provide customers with the most useful

investment guidance and investment related service available in the country. It is a

One stop solution for all investment needs, one that will help you get the most outOf your money.

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HDFC SECURITIES LIMITED:

HDFC securities is a brand brought by HDFC Securities Ltd, which has been

Promoted by the HDFC Bank & HDFC with the objective of providing the diverse

Customer bases of the HDFC Group and other investors a capability to transact in

The stock exchanges & other financial market transactions. HDFC securities will

Equip with the necessary tools to allocate, select and manage investments wisely,

and

Support it with the highest standards of service, convenience and hassle-free trading

tools.

HDFC REALTY LIMTED:

HDFC realty.com is a real estate site that aims to bring credibility and trust to

property dealers. At HDFC realty.com one can meet Customer Relationship

Manager for any assistance one may require stages of property dealing.

HDFC CHUBB GENERAL INSURANCE COMPANY LIMITED:

Its a partnership that leverages the strengths of financial powerhouse combining the

Trust and local experience of HDFC, with the 120 years proven expertise of Chubb.

Individually, you can count on specialized products that cover not only you and

Your family (Personal Accident, Travel and Health Insurance) but also your

Possessions (Motor and Home Insurance).For businesses, theres a range of

Innovative commercial and Specialty Insurance offerings that can be custom

Designed to deliver peace of mind to your employees and superior value to

Organization.

SWOT analysis is a tool for auditing an organization and its environment. It is the

first stage of planning and helps marketers to focus on key issues. SWOT stands for

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Strengths, weaknesses, opportunities, and threats. Strengths and Weaknesses

are internal factors. Opportunities and threats are external factors.

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

In SWOT, Strengths and weaknesses are internal factors. For examples:

Strength could be:-

Your specialist marketing expertise.

A new, innovative product or service.

Location of your business.

Quality processes and procedures.

Any other aspect of your business that adds values to your product or

Service.

A weakness could be:

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Lack of marketing expertise.

Undifferentiated products or services (i.e. in relation to your competitors)

Location of your business.

Poor quality goods or services.

Damaged reputation.

In SWOT, opportunities and threats are external factors. For example:

An Opportunity could be:

A developing market such as the Internet.

Mergers, joint ventures or strategic alliances.

Moving into new market segments that offer improved profits.

A new international market

A market vacated by an ineffective competitor.

A threat could be:

A new competitor in your home market.

Price wars with competitors.

Price wars with competitors.

A competitor has a new, innovation product or service.

Competitors have superior access to channels of distribution.

Taxation is introduced on your product or service.

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Simple rules for successful SWOT analysis

Be realistic about the strengths and weaknesses of your organization when

conducting SWOT analysis.

SWOT analysis should distinguish between where your organization is today,

and where it could be in the future?

SWOT should always be specific. Avoid grey areas.

Always apply SWOT in relation to your competition i.e.Better than or worse

than your competition

Keep your SWOT short and simple. Avoid complexity and over analysis.

SWOT is subjective.

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STREANGTHS

Strong tie up.

Brand Equity.

Strong Network.

Huge customer

database.

Strong financial base.

WEAKNESSES

Low customer awareness.

Less promotion.

OPPORTUNITIES

Large uninsuredPopulation.

Network building.

Targeting the ruralSegment.

THREATS

Large uninsuredPopulation.

Network building.

Targeting the ruralSegment.

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Products and policiesProducts and policies

Standard Life Insurance (HDFC STANDARD LIFE PRODUCTS):

Saving Plans:

Endowment Assurance Plan. Life Insurance With Saving.

Childrens Plan. Financial Security For Your Child.

Money Back Plan. Life Insurance With Saving.

Investment Plan:

Single Premium Whole Of LifePlan.

Investment With LifeInsurance.

Protection Plan:

Term Assurance Plan. Life Insurance At An Affordable Price.

Loan Cover Term Assurance. Life Insurance Customized For HomeLoans.

Retirement Plans:

Personal Pension Plan. Saving For Retirement.

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Unit Linked Plan:

Unit Linked Pension Plan. Making your money work, for acomfortable retired life.

Young Star Supar Plan. Build up your investment for your childsfuture.

Unit Linked Endowment Plan. Life insurance with saving.

SAVING PLANS:

Endowment Assurance Plan:

It is a participating (with profits) insurance plan that offers the following features:

Provides financial support to the family by way of a lump sum payment in case of the

unfortunate death of the life assured within the term of policy.

Provides a lump sum payment to the life assured on survival up to maturity. The

lump sum payment to the basic sum assured plus any bonus additions. This Plan

is a wish profits saving plan and is well suited for saving money for your Long-

term financial goals. This Plan also helps provide for the needs of your family In

your absence by paying death during term of the policy.

Min.term: 10 years. Max.term: 30 years

Childrens Plan:

Childrens Plan gives you:

Invaluable financial support to your child.

Helps you customize an ideal plan for your child.

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Provides you multiple options for multiple benefits.Childrens plan is designed to secure your child future by giving your child a

guaranteed lump sum, on maturity or in case of your unfortunate demise, Early in the

policy term. The premiums, paid by you, are invested by the company to give you

good term returns. The plan receives simple reversionary bonuses, which are usually

added annual.

You will have the choice of 3 options at the start of the policy.

PLAN OPTION. DEATH BENEFIT. MATURITY BENEFIT.

Maturity BenefitsPlan.

Future premiums waivedAnd the policy continuesTill maturity.

Sum assured bonusesPaid.

Accelerated BenefitPlan.

Sum assured + Bonusespaid and the policy stops.

On the survival of theinsured parent to thematurity date,Sum assured + Bonuses

paid.Double benefitsPlan.

Sum assured paid, futurepremiums waived, and thepolicy continues till maturity.

Sum assured bonusesPaid.

The eligibility ages for the life assured under the plan are as Follows:

Minimum Age at Entry 18 years.

Maximum Age at Entry 60 years.

Maximum Age at Maturity 75 years.

Minimum Term: 10 years Maximum Term: 25 years.

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Money Back Plan:

It is a participating (with profits) insurance plan that offers the following

Features:

Payment of cash lump sums, each of which is a proportion of the basic sum

assured, at 5 year intervals during the term of policy.

On survival up to maturity, equal to the basic sum assured plus any bonus

Additions less the cash lump sum paid earlier is provided. In case of the

unfortunate death of life assured within the term of the policy, the basic sum

assured plus any bonus additions is provided. This is over and Above the earlier

Payouts.

INVESTMENT PLAN:

SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN

Single Premium Whole of life Insurance Plan is well suited to meet your long term

investment needs. This participating (with profits) Plan offers you the following

benefits:

A sound investment:

Your money will be invested in our with profits fund. The fund aims to provide secure

and stable long-term growth. Normally, we will declare a compound reversionary

bonus for your policy every year and add it to your policy on its anniversary. In

addition, on death, surrender or on the guaranteed dates, a terminal bonus might be

payable. You pay a single premium and the policy will pay you a lump sum.

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Flexibility of term:

Even after choosing your policy, you can decide on the policy Term. For 4 weeks

after may one of the 10th, 15th, 20th, and Subsequent five-year Anniversaries, you

can choose to receive the sum assured Plus any attaching Bonuses, in full. Once the

money has been received, your Policy will cease.

Surrender value:

You can terminate the policy any time, after it has been in force for at least 6 months

and receive a surrender value. In case of unfortunate Death your nominee gets the

sum assured secured by your premium, plus any attaching bonuses. No medical

requirements we do not require you to undergo any medical test for this plan.

Minimum age at entry : 18 years.

Maximum age at entry : 70 years.

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PROTECTION PLANS:

1. Term Assurance plan:

Under this plan, a sum assured is payable in case of the contact. One can choose

the lump sum that would replace the income lost to ones family in the Unfortunate

Event of ones death. Since this non-participating (without profits) Plan is a pure risk

cover plan, no benefits are payable on survival to the end of the term of the policy.

Why should you buy this product?

If you have a family that you care for, you should consider what would happen In

case of your unfortunate death. The emotional void cannot be filled, but financial

insecurity can be avoided. By taking this affordable life insurance Plan, you can

provide for the well benign of your family in case of your Unfortunate death. This plan

comes to you at a minimum cost and is well-suited for the value-conscious customer.

Minimum Age: 18 Maximum: 60

2. Loan cover Term Assurance Plan:

Loan Cover term Assurance (LCTA) Plan provides a lump sum on the Unfortunate

death of the life assured during the term of the plan. The lump sum will be a

decreasing percentage of the initial sum assured. As the outstanding Loan

decreases as per the loan schedule, the cover under the Policy decreases as per the

loan schedule. Since this is a non-participating (without profits) pure risk Cover plan,no benefits are payable on survival to the end of the term of the Policy.

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Retirement Plan :

This participating (with profits) plan is basically a savings contract, which is designed

to provide an income for life from retirement. It doses this by accumulating a notional

lump sum on retirement, comprising of sum assured plus any attaching bonus.

Subject to the prevailing regulations, part of this lump Sum can be taken in form of

cash and the rest converted to an annuity at the rate then offered. Alternatively, if it is

permitted by the prevailing regulations, the Notional lump sum can be used to buy an

annuity with any other insurance Company who will accept such business. On

earlier death after the first year, for Regular Premium policies all premiums Paid to

date will be returned with compound interest calculated at 8% per annum Subject to

a maximum of the sum assured plus bonuses declared to date. For Single

premiums, it is sum assured plus bonuses declared to date. Normally, we will

declare a reversionary bonus once a year. Once added, it cannot be reduced.

Reversionary bonus will take the form of a simple addition to your Policy benefits. In

addition, on maturity, a terminal bonus, reflecting the period since the last addition of

reversionary bonus, also be payable.

Unit Linked Plans:

1. Unit linked Pension Plan:

The Unit Linked Pension Plan is an insurance policy that is designed to providing a

retirement income for life with the freedom to maximize your investment returns by

providing a choice of thoroughly researched and selected investments. You can

choose your premium and selected investment Funds. At the end of the policy term,

you will receive the accumulated value of your funds, which will be used to provide

your pension income. In the event of your unfortunate demise during the policy term,

your spouse will receive a cash lump sum to help him or her manage their retirement

years.

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Benefits :-

Provides a post retirement income for life.

Gives you the flexibility to plan your retirement date.

Gives you the freedom to invest premiums as per your preference.

Offers you potentially higher market linked returns.

Gives you tax benefits on your premiums and on receiving the lump

Sum.

Your investment will buy in any of 6 funds designed to meet your risk Approach. All

units in a particular fund are identical. You can choose from all or any of the following

6 funds:-

a) Liquid fund:-

Extremely low capital risk.

Very stable returns.

The liquid fund invests 100% in bank deposits and high quality short-term

Money market instruments.

b) Secure Managed:-

More capital stability than equity funds.

Higher potential fund than liquid fund.

The Secure Managed fund invests 100% in Government Securities and Bonds

Issued By companies or other bodies with a high credit standing. However, a Small

Amount Of working capital may be invested in cash to facilitate the day-to-Day

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Running of The fund. This fund has a low level of risk but unit prices may still go or

down.

c) Defensive Managed:-

Access to better long-term returns through equities.

Significant bond exposure keeps risk down.

15% to 30% of the Defensive Managed fund will be invested in high quality Indian

Equities. The remainder (70% to 85%) will be invested in Government Securities and

Bonds issued by companies or other bodies with a high credit standing. In Addition,

a small amount of working capital may be invested in cash to facilitate the Day-to-

day running of the fund. The fund has a moderate level of risk with the Opportunity to

earn higher returns in the long term from some equity investment Unit price may go

up or down.

d) Balance Managed:-

Further increased exposure to equities to give a greater long-term Return.

A smaller bond holding will aid diversification and provide a little Stability.

The day-to-day running of the fund. The fund has high level of risk with the

Opportunity to earn higher returns in the long term from some equity Investment Unit

price may go up or down.

e) Equity managed fund:-

Further increased exposure to equities to give a greater long-term return.

A smaller bond holding will aid diversification and provide a little Stability.

The fund has very high level of risk 60% to 90% of the equity Managed fund will beinvested in high quality Indian equities. The remainder will be invested in

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Government Securities and Bonds issued by companies or other Bodies With a high

credit standing.

f) Growth fund:-

For those who wish to maximize returns.

100% investment in high level of risk with the opportunity to maximize the

returns.

2. Unit Linked Young Supar Star Plan:

Young Star Supar Plan Gives You:

An outstanding investment opportunity by providing a choice of Thoroughly

researched and selected investments.

Valuable protection in case of the insured parents unfortunate demise.

Very flexible benefits combinations and payment options.

Flexible additional benefits options such as critical illness cover.

You can choose your premium and the investment fund or funds. Your Premium will

then be invested, net of charges in your chosen funds in the Proportion you specify.

At the end of the policy term, you will receive the Accumulated value of your funds.In case of your unfortunate demise during the policy term, company will continue the

policy and continue to pay the original premiums you had Chosen. Your family will

receive the sum assured you had chosen plus the Fund build up by your and

companys contributions. Your investment will buy in any of 5 funds designed to

meet your risk approach. All units in a particular fund are identical. You can choose

from all or any of the Following 5 funds:-

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I. Liquid fund.

II. Secure managed fund

III. Defensive managed fund.

IV. Balance managed fund.

V. Growth fund.

Type of benefits providing by unit linked young star plan:-

Death benefits:

a) We will pay the sum assured to the beneficiary.

b) Your family need not pay any future premiums.

c) We will pay future premiums on your behalf.

d) Any critical illness cover terminates immediately.

Maturity benefits:

We will pay to the beneficiary the value of the accumulated fund.

The fund value will include all contributions paid by you and the life Insurance

company, plus all investment growth, less charges.

I. Liquid fund :

The Liquid fund invests 100% in bank deposits and high quality short-term moneyMarket instruments. The fund is designed to be cash secure and has a very low level

of risk; however, unit price may occasionally go down due to the use of short-term

Money market instruments. At inception, investments up to 20% can be allocated to

this fund.

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II. Secure Managed:-

The Secure Managed fund invests 100% in Government Securities and Bonds

Issued By companies or other bodies with a high credit standing. However, a small

amount of working capital may be invested in cash to facilitate the day-to-day

running of the fund. This fund has a low level of risk but unit prices may still go up or

down.

III. Defensive Managed:-

15% to 30% of the defensive Managed found will be invested in high quality IndianEquities. The remainder will be invested in Government Securities and Bonds issued

by companies or other bodies with a high credit standing. In addition, a small Amount

of working capital may be invested in cash to facilitate the day-to-day Running of the

fund. The fund has a moderate level of risk with the opportunity to earn higher

returns in the long term some equity investment. Unit price may go up or down.

IV. Balanced Managed:-

30% to 60% of the Balanced Managed fund will be invested in high qualities Indian

equities. The remainder will be invested in Government Securities and Bonds is

issued by companies or other bodies with a high credit standing. In addition, a small

Amount of working capital may be invested in cash to facilitate the day-to-day

Running of the fund. The fund has a high level of risk with the opportunity to earnhigher returns in the long term from some equity investment. Unit prices may go or

down.

V. Growth fund:-

The Growth fund invested 100% in high quality Indian equities. In addition, a small

Amount of working capital may be invested in cash to facilitate the day-to-day

Running of the fund. The fund has very high level of risk with the opportunity to earn

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higher returns in the long term from the investment in equities. Unit prices May go up

or down.

3. Unit Linked endowment Plan:-

Unit Linked endowment plan gives you:-

An outstanding investment opportunity by providing a choice of thoroughly

Researched and selected investments.

Valuable protection in case of the insured lifes unfortunate death.

Flexible benefits combinations and payment options.

Flexible additional benefits options such as critical illness cover.

Access to your accumulated fund before maturity.

You can choose your premium and investment fund or funds. Your premium will then

be invested, net of charges in your chosen funds in the proportion you specify. At the

end of the policy term, you will receive the accumulated value of your funds. In case

of your unfortunate demise during the policy term, company will pay the greater of

your sum assured (less any with drawls you have made) and your total fund value to

your family. Your investment will buy in any of 5 funds designed to meet your risk

approach. All Units in a particular fund are identical. You can choose from all or any

of the Following 5 funds:-

a) Liquid Fund:-

Extremely low capital risk.

Very stable returns.

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The liquid fund invests 100% in bank deposits and high quality short-term money

Market instruments.

b) Secure Managed:-

More capital stability than equity funds.

Higher potential than liquid fund.

The Secure Managed fund invests 100% in Government Security and Bonds issued

by companies or other bodies with a high credit standing. However, a small Amount

of working capital may be invested in cash to facilitate the day today running of

the fund. This fund has a low level of risk but unit price may still go up or down.

c) Defensive Managed:-

Access to better long-term returns through equities.

Significant bond exposure keeps risk down.

15% to 30% of the defensive Managed found will be invested in high quality Indian

equities. The remainder (70% to 85%) will be invested in Government Securities and

Bonds issued by companies or other bodies with a high credit standing. In Addition,

a small amount of working capital may be invested in cash to facilitate the Day-to-

day Running of the fund. The fund has a moderate level of Risk with the opportunity

to earn higher returns in the long term some equity Investment. Unit Price may go up

or down.

d) Balance Managed:-

Increased equity exposure gives better long-term return.

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Bond exposure providing some stability.

The fund has a high level of risk with opportunity to earn higher returns in the long

from some equity investment. Unit price may go up or down.

e) Growth fund:-

For those who wish to maximize their returns.

100% investment in high quality Indian equities.

The fund has very high level of risk with the opportunity to maximize the Returns.

The past performance of any of the fund is not necessarily an indication of future

performance. There are no investment guarantees on the returns of unit linked

Funds.

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CHAPTER 2CHAPTER 2

MAIN PROJECTMAIN PROJECT

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OBJECTIVE

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PROJECT OBJECTIVE

The insurance industry has never been in such lime light as it is now. It is witnessing

an unprecedented boom. The massive upheaval in insurance sector Has Opened

Gates for private insurance as well. The Indian market of life Insurance is flooded

with private companies vying with each other to create a Niche for themselves. This

Project undertaken is a market survey pertaining to Mind set and Inclination towards

the life insurance.

The project undertaken shall meet the following objectives:-

To have an overview of insurance of HDFC Standard Life Insurance.

Making an Analysis of customers of Life Insurance among customers.

Making suggestions & recommendations for Improvements.

Investment Criteria.

Most Important Investment Area.

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CHAPTER 3

Research Methodology

And

Data Base

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Research Methodology and Data

Base

Research methodology is a way to systematically solve the research problem. It Maybe understood as a science of studying how research is done scientifically. In it we

study the various steps, the research process that is generally adopted to Study the

research problem and marketing research is a systematic and objective of study

problems pertaining to the marketing of goods and services. Market research

specifies the information required to address these issues; designs the method of

collecting information; analyses the results and communicating the findings and their

implications. The basic steps in this Research are shown in the chart below:-

The Research Process:-

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Define the research problem and its

ob ectives

Review concepts and theories

Collection of data survey

Research design including sample

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Data Collection

Data has been collected both from primary as well as secondary sources as

Described below:

Primary sources:-

The primary source of data was Questionnaires conducted as part of the Survey.

This data forms the backbone of the analysis of the customers Requirements. The

survey is described in detail in the following section:

The sample size of 100 was taken and almost all questionnaires were filled andSource of Income was salaried class, Businessmen & Professional, Student and Age

group was 20 to 55 years.

Secondary sources:-

The secondary sources of data were the various websites and

insurance Manuals. This mainly provided information about the

insurance sector and the Companys profile. These helped in gaining

knowledge about the Industry. These sources are listed in References.

Statistical Method Used For Analysis:-

The data collection was done through Filling of Questionnaires mostly based in

Chandigarh and Mohali. And the questionnaire was designed in such a way that it is

self-explanatory. The questionnaire of 12 questions regarding awareness of Life

41

Analysis of data

Interpretation and report writing


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insurance and private insurance companies. And the various methods were Used to

Analyses the data as under:-

1. Percentages.

2. Bar Graphs.

3. Tables.

4. Ratios and

5. Figures.

CHAPTER 4CHAPTER 4

THEORITICALTHEORITICAL

FRAMEWORKFRAMEWORK

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EVOLUTION OF INSURANCEINDUSTRY

Insurance in India

1818 The Britishintroduction life insurance to India, with the establishment of theOriental Life Insurance Company in Calcutta.

1850 Non-life insurance debuts, with triton insurance.

1870 Bombay Mutual Life Assurance Society is the first Indian owned Life

Insurance.

1907 Indian Mercantile Insurance is the first Indian Non Life insurer.

1912 The Indian Life Assurance Companies Act enacted to regulate the life

Insurance business.

1938 Insurance Act, which forms the basis for most current insurance Laws,

replaces earlier acts.

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1956 Life insurance nationalized; Government takes over companies and

foreign insurers and provident societies.

1956 Government steps up L.I.C.

1972 Non life insurer nationalized; G.I.C. set up.

1973 Malhotra committee recommends re entry of private players, Autonomy to

PUS insurers.

1997 Insurance regulator IRDA (Insurance regulatory and development

Authority) set up.

2000 IRDA starts giving licenses to private insurers; HDFC Standard Insurance

and ICICI Prudential were first private life insurance to Sell Policy.

2001 Royal Sundaram first non life insurer to sell policy.

2002 Banks allowed selling insurance plans.

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INTRODUCTION TO INSURANCE

WHAT IS INSURANCE?

Insurance is the method of spreading and transfer of risks.

Losses of unfortunate few are shared by and spread over to many exposed to

the same risk.

Assets created by the owner in expectation of future needs or benefits have a

value.

Loss of assets for any reasons deprives the owner of the expected benefit.

Insurance in this context is a mechanism that helps to reduce the adverse

consequences due to loss of assets.

PURPOSE AND NEED FOR INSURANCE

Assets are likely to be destroyed or made non-functional due to perils like fire,

floods, breakdowns, lightning and earthquake.

Damage to assets caused by any peril is the risk that assets are exposed to.

Insurance becomes relevant only if there are uncertainties of occurrence of

event leading to loss.

We can say that human life is an income generating assets which can be lost

on early death or disabilities caused by accidents.

Insurance does not protect the assets but only compensates the economic or

financial loss.

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ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

Investments are necessary for economic development.

Life insurance plays a major role in mobilization of public savings.

Savings out of life insurance funds are utilized in investments for growth.

Looking to general insurance business, industry, trade would be seriously

handicapped in the absence of insurance cover relating to fire and

engineering risks.

CLASSIFICATION OF INSURANCE

Life is full of uncertainty. Trials and tribulations abound in each and every aspect of

life. No one can truly predict or even estimate what the future has in store for him.

Life offers no guarantees by itself, except the incidences of death and taxation.

This lack of security present throughout life can be overcome partially through

insurance. Insurance can never replace or repair a loss. But the monetary value

offered by insurance helps in adjusting to the new circumstances.

Despite offering innumerable options and immense scope, insurance can be

classified into four main categories.

Insurance of Person

Insurance of Property

Insurance of Interest

Insurance of Liability

46
http://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofPerson%23InsuranceofPersonhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofProperty%23InsuranceofPropertyhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofInterest%23InsuranceofInteresthttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofInterest%23InsuranceofInteresthttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofLiability%23InsuranceofLiabilityhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofPerson%23InsuranceofPersonhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofProperty%23InsuranceofPropertyhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofInterest%23InsuranceofInteresthttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofLiability%23InsuranceofLiability


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Insurance of Person

Under the purview of this class of insurance, the risks associated with human life in

general can be covered up to the limit specified. A person can insure his or her life

and his health against any unplanned contingencies.

In event of his death, his dependants will be reimbursed to the full amount that he

was insured for. Or if the insured person meets with an accident or suffers from an

illness that cripples him forever, he will be compensated with the complete sum

assured anyway since he may not be able to lead a normal life again.

In case, the accident is not that severe, he should be able to recover after medicaltreatment and rehabilitation. If he has opted for medical cover, then his medical

expenses, treatment and medication will be paid for by his insurance policy.

Insurance of Property

Everyone possesses material value in the form of tangible assets. Assets can be in

the form of a landed estate or a vehicle, share holdings or plain old paper money.

Since tangible property has a physical shape and consistency, it is subject to many

risks ranging from fire, allied perils to theft and robbery. An individual's lifetime of

hard work can be wiped out in a blink of an eye.

But if a person judiciously invests in insurance for his property prior to any

unexpected contingency then he will be suitably compensated for his loss as soon as

the extent of damage is ascertained.

Insurance of Interest

Every individual has to discharge certain specific duties. Everyone is expected to

maintain a standard of conduct. But then, it is an intrinsic part of human nature to err.

No one is infallible and no one will ever be.

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Owing to an occasional error or omission committed by us, our clients or customers

might suffer a loss. In turn we might have to pay those damages or compensation

out of our own personal resources.

However, if our chosen profession qualifies for insurance of interest, then our

insurance policy will more than suffice in arranging for the funds and court formalities

that might ensue in the aftermath of legal libel.

Insurance of Liability

Every person has to regulate his actions and behavior so as not to cause injury or

damage to other people and their property. Everyone is personally responsible andliable for his actions.

If due to lack of control over his actions or prejudiced behavior, a person incurs any

liability then he has to provide compensation out of his personal resources.

Liabilities: legal, civil or criminal can have severe repercussions on social standing

and prestige besides the financial status.

By investing in liability insurance, an individual can ward off any liabilities he might

incur due to his actions and behavior. Besides, the premiums payable on liability

insurance are fairly minimal when compared to the damages that have to be

compensated in the long run.

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LEGISLATIVELEGISLATIVE ANDAND REGULATORYREGULATORY

MATTERS.MATTERS.

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY (IRDA)

ACT, 1999

Explanation to the title.

The Authority replaces under this Act an authority called IRDA has been set up.

This is a corporate body established for the purpose and objects as set out in the

Controller under Insurance Act 1938.

The first schedule amends Insurance Act 1938.

It states that if Authority is superseded by Central Government, the Controller of

Insurance may be appointed till such time as Authority is reconstituted.

CONSTITUTION OF IRDA

The Insurance Regulatory and Development Authority consists of the following

members:

1. Chairperson.

2. Less than five whole time members.

3. Less than four part time members.

Members should be persons of Ability, Integrity & Standing.

They should have experience in the fields of

1. Life Insurance

2. General Insurance

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3. Actuarial Science

4. Finance

5. Economics

6. Law

7. Accountancy

8. Administration

Chairperson, members, officers and other employees of Authority shall be public

servants.

FUNCTIONS OF IRDA

1. To issue certificate of registration, renew, withdraw, suspend or cancel such

registration.

2. To protect the interest of policyholders/insured in the matter of insurance contract

with the insurance company.

3. To specify requisite qualification, code of conduct and training for insurance

intermediaries and agents.

4. To specify code of conduct for surveyors/loss assessors.

5. To promote efficiency in the conduct of insurance business.

6. To promote and regulate professional organizations connected with the insurance

and reinsurance business.

7. To undertake inspection, conduct enquiries and investigations including audit of

insurers and insurance intermediaries.

8. To control and regulate the rates, terms and conditions to be offered by the

insurer regarding general insurance business not so controlled by Tariff Advisory

Committee u/s 604 of Insurance Act, 1938.

9. To regulate investment of funds by the insurance companies.

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10.To adjudicate dispute between insurers and intermediaries of insurance.

LIFE INSURANCE CORPORATION OF INDIA ACT, 1956

Life insurance business was nationalized in India with effect from 19 th January

1956.

The life insurance business of 154 Indian life offices constituted by 16 non-Indian

insurers operation in India and 75 Provident Societies was taken over by the

Government of India.

LIC of India Act was passed by the Parliament on 18th June 1956 and it came into

effect from 1st July 1956.

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MA JOR MARKET PLAYERS:

Birla Sun life Insurance Company

Birla Sun Life Insurance Company is a 74:26 joint venture between Birla group and

Sun Life Financial. It is a private sector company. The Company was registered on

31/1/2001

HDFC-Standard Life

HDFC-Standard is a 74:26 joint venture between HDFC and Standard Life .It is a

private sector company .The company was registered on 23/10/2000.

ICICI Prudential Life Insurance

ICICI Prudential Life is a joint venture between ICICI and Prudential. It is a private

sector company. The company was registered on 24/11/2000.

Kotak Mahindra Old Mutual

Kotak Mahindra Old Mutual is a 74:26 joint venture between Kotak Mahindra bank

and Old Mutual. It is a private sector company. The Company was registered on

10/1/2001.

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India is a 100% government held Public Sector

Company. Being the first to be established LIC is the forerunner in the life insurance

sector.

Max New York Life

Max New York Life is a 74:26 joint venture between J&K Bank, Pallonji & Co. and

MetLife. It is a private sector company. The company was registered on 6/8/2001.

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Aviva Life Insurance India

Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur.It is a private

sector company. The company was registered on 14/5/2002.

ING Vysya Life Insurance

ING Vysya Life Insurance is joint venture between Exide (50%)Gujarat Cements

(14.87%),Enam (9.13%) and ING (26%).It is a Private sector Company. The

company was registered on 2/8/2001.

MetLife India

MetLife India is a 74:26 joint venture between 74:26 JV between J & K Bank, Pallonji

& Co and MetLife. It is a private sector Company. The company was registered on

6/8/2001.

Bajaj Allianz Life Insurance Co.

Bajaj Allianz Life Insurance Company is a 74:26 joint venture between Bajaj Auto

limited and Allianz AIG.The Company was registered on 3/8/2001.The market share

for FY 2006-07 was

SBI Life Insurance Company

SBI Life Insurance Company is a 74:26 joint venture between SBI And Cardiff S.A.

The company was registered on 31/3/2001.It is a Private sector Company.

TATA AIG Group

TATA AIG Group is a 74:26 between Tata Group and AIG. It belongs to the private

sector. The company was registered on 12/2/2001.

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Sahara Indian Life Insurance Company Ltd.

First Wholly Indian Owned Private Life Insurance Company. The Company

commenced operation from 30th October 2004.

Shriram Life Insurance Company Ltd.

Shriram Life is a recent entrant into the life insurance sector it is a 74:26 Joint

venture between the Shriram groups through its Shriram financial Holdings and

Sanlam Life Insurance Limited, South Africa. The Company expects to start

operations soon.

--------------

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Market Shares (%) of PrivateInsuranceCompanies:

55

M a r k e t S h a r e ( % ) o

c o m p a n i e s .

4 4

34246

42

32

5

3

6

1 2 00

L I C

I C I C I P r u d

S B I L i f eH D F C S t a

B i r l a S u n L

R e l i a n c e L

T a t a A I G

K o t a k M a h

B a j a j A l l i a

A v i v a

M e t L i f e

I N G V y s y a

M a x N e w

S a h a r a L i f

B h a r t i A x a


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COMPETITOR S

Indian Promoter Foreign Promoter

ICICI Prudential Plc UK

Aditya Birla Group Sun life Financial, Canada

Kotak Mahindra Finance Old Mutual Plc, South Africa

Max Indian New York Life, USA

Tata Group American International group,

USA

Vyasa Bank ING Group, Nether land

Bajaj Auto Allianz AG

Sanmar Group AMP, Australia

Dadur India Aviva Plc

State Bank Of Indian Cardiff , France

J&K Bank , Pallonji & Co. Metropolitan Life Insurance

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CHAPTER 5

DATA ANALYSISDATA ANALYSIS

&&

INTERPRETATIONINTERPRETATION

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Question (1)

Do you know about the term Life Insurance?

1. Yes [ ] 2. No [ ]

YES 100%

NO 0%

AWARENESS IN LIFE-INSURANCE

100%

0%0%

20%

40%

60%

80%

100%

120%

YES NO

Opinion

P

ercentage

100% of people said yes it means that all people are very well aware about Life

insurance. So life insurance companies have done well to inform general Public.

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Question (2 )

From where did you come to know?

1. Newspaper [ ] 2. Magazines [ ]

3. Electronic Media [ ] 4. Other Sources [ ]

Newspaper 28.34%

Magazines 4.17%

Electronic Media 15.87%

Other Sources 51.62%

SOURCE OF AWARENES

28.34%

4.17%

15.87%

51.62%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Newspaper Magazines Electronic Media Other Sources

Sources

Persentage

Mostof people have come to know about it from other sources which include agents,

relatives, friends etc. Newspapers are doing fairly well. Magazines have not proved a

goodsource.

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Question (3)

Life Insurance is necessity of Life?

1. Completely Agree [ ]

2. Partially Agree [ ]

3. Disagree [ ]

NEEDS OF INSURANCE

Disagree

1%

Completel

y Agree

95%

Partially

Agree

4%

Approximately all people (95%) agree with the view that it is necessity of Life,

because it has lot of uncertainties.

Completely Agree 95%

Partially Agree 49%

Disagree 1%

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Question (4)

Why would you go for Life Insurance?

1. Risk Coverage [ ] 2. Investment [ ]

3. Tax Benefits [ ] 4. All of above [ ]

Risk Coverage 36.57%

Investment 3.11%

Tax Benefits 12.81%

All of above 47.51%

36.57%

3.11%

12.81%

47.51%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%50.00%

Risk Coverage Investment Tax Benefits All of above

Opinion

Percentage

So approximatelyhalf of people (47.51%) will go for insurance for all benefits Like

risk coverage, tax benefits and investment. After that risk coverage was Main logic

for getting policy (36.57%).

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Question (5)

A) Are you insured? If yes, then with which Company?

1. Yes [ ] 2. No [ ]

Yes 85.20%

No 14.80%

85.20%

14.80%

Yes

No

Maximum people of sample area (85.20%) were ensured.

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B) Insurance Preference

Others,

13.18%

L.I.C,86.82%

L.I.C

Others

LIC is big leader in the insurance industry with share of 86.82%, other Companies

like HDFC Standard life Insurance, ICICI prudential, Max New York, Tata AIG, ING

Vyasa etc. have total of just 13.18% share.

L.I.C 86.20%

Others 13.18%

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Question (6)

Are you satisfied with the service of your insurance

Agent/company?

1. Yes [ ] 2. No [ ]

COUSTOMER SATISFACTIONS

26%

74%

0%

10%

20%

30%

40%

50%

60%

70%

80%

YES NO

Opinion

Percentage

Whole sample of people was satisfied, so no company has left any weak spot, On

which other company can take advantage.

YES 74%

NO 26%

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Question (7)

Which sector would you prefer to get insured from?

1. Govt. [ ] 2. Private. [ ]

81.89% of people are preferring to Govt. Sector for insurance i.e. LIC, because they

think that it is more safe. With other private companies there is risk.

Government 81.89%

Private 18.11%

PREFRENCE OF CUSTOMERS

81.89%

18.11%

Government

Private

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Question (8)

In what type of instruments would you prefer to Invest?

1. Property [ ] 2. Banks [ ]

3. Security [ ] 4. Insurance [ ]

5. Others [ ]

Property 41.87%

Banks 27.70%

Securities 7.21%

Insurance 18.66%

Others 4.54%

MOST PREFERABLE INVESTMENT AREA

27.70%

7.21%

18.66%

4.54%

41.87%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Property Banks Securities Insurance Others

Investment opinions

Percentage

Good proportion of people (41.87%) would like to invest in property. On Second

preferences are Banks (27.72%).Insurance got (18.66%) preference. Securities got

least preference, as people thought, they are risky & Includes lot of fluctuations in

values.

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Question ( 9)

Do you have Pension Plan?

1. Yes [ ] 2. No [ ]

94%

6%

Yes

No

It means most of people dont have any pension plan except Govt. pension-plan.

Yes 6%

No 94%

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Question ( 10)

Should life insurance be made compulsory?

1. Yes [ ] 2. No [ ]

28.40%

71.60%

0.00% 10.00

%

20.00

%

30.00

%

40.00

%

50.00

%

60.00

%

70.00

%

80.00

%

Yes

No

Opin

ion

Percentage

4/5 of people said that life insurance should be made compulsory, provided People

should be able to pay premiums. 28.40% says it should not be made compulsory; it

depends on their own wish.

Yes 71.60%

No 28.40%

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AGE COMPOSITION:-

AGE COMPOSITION NO. OF PEOPLE

LESS THAN 20YRS 1626YRS TO 35YRS 25

36YRS TO 45YRS 50

46YRS TO 55YRS 9

TOTAL 100

AGE COMPOSITION:

In this market survey most of the people are between the age group of 26-55yrs

which indicates that this report has most of the emphasis (84%) on those people who

are well established in their related field i.e. business, profession, job, etc.

INCOME SCENARIO:-

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INCOME SCENARIO:

More than half of the people have annual income below 1.5 Lakhs (52%) and rest of

the people belongs to high annual income group (48%). It indicates that this report

has balanced research and findings without focusing on any specific income group.

People of diverse income groups helped us to study the absolute picture of life

insurance as a tool of investment.

OCCUPATION SCENARIO:-

OCCUPATION NO. OF PEOPLEBUSINESS 53

ANNUAL INCOME PERCENTAGE

LESS THAN Rs.10,000 30

Rs.10,000 - Rs.20,000 22Rs. 30,000 Rs.40,000 35

Above Rs. 50,000 13

TOTAL 100

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PROFESSION 22

SERVICE 12

STUDENT 13

TOTAL 100

OCCUPATION SCENARIO:

In this market survey more than half of the people are businessman (53%) and rest

of the people belongs to profession and service. It indicates that this report has total

emphasis (98%) on those people who are well established, experienced, decision

makers.

CHAPTER 6CHAPTER 6

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ConclusionConclusion

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CONCLUSION

Over the part three years, around 40 companies have expressed interest in entering

the sector and many foreign and Indian companies have arranged Anticipatory

alliances. The threat of new players taking over the market hasbeen overplayed. Asis witnessed in other countries where liberalization took players will continue towhole strong market share positions, but there will be enough business for new

entrants to be profitable. Opening up the sector will certainty mean new products,

better packaging and improved customer service. Both new and existing players will

have to explore new distribution and marketing channels. Potential buyers for most

of this insurance lie in the middle class. New insurers must segment the Market

carefully to arrive at appropriate products and pricing. Recognizing the potential, in

the past three years, the nationalized insurers have already begun to target niches

like pensions, women or children. There should be efforts made by different

Insurance companies to efforts Made by different Investment companies to increase

awareness among general Public. This can be by doing advertising through various

Medias.

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CHAPTER 7CHAPTER 7

FindingsFindings

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Findings

1. When people of Chandigarh were asked to know about life insurance all people

Said yes this shows all people are very well aware about life insurance. It also

shows that Life Insurance Companies has done well to inform general public.

2. Most of people have come to know about it from different sources which include

Agents, relatives; friends etc. newspapers are doing fairly well. Magazines has

not Proved a good source.

3. Approximately all people (95%) agree with the view that it is necessity of life,

because it has lot of uncertainties.

4. So approximately half of people (47.51%) will go for life insurance for all benefits

and investments. After that risk coverage was main logic for getting policy

(36.57%).

5. LIC is the big leader in the life insurance industry with share of 86.82%, other

Companies like HDFC Standard Life Insurance, ICICI Prudential, and Max New

York, TATA AIG, ING Vyasa etc, have total of just 13.17% share.

6. 81.89% of people are preferring to govt. sector for insurance i.e. LIC because

they think that it is more safe. With other private companies their risk.

7. Good proportion of people would like to invest in property. On second

Preferences are banks. Insurance got third rank in order of preference to Invest.

8. Most of people dont have pension plan expect govt. pension plan.

9. 4/5 of people said that life insurance should be made compulsory, provided

People should be able to pay premiums. 28.40% says it should not be made

Compulsory; it depends on their own wish.

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CHAPTER 8

SUGGESTIONS

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SUGGESTIONS

Very few people gave suggestions. Some important one was:

Bonus offered should be increased.

Rural areas must be properly covered.

More plans for common man and lower class.

Tax benefits on life insurance premium should be increased section 88.

Premium should be less so that everybody can pay it.

Put up ATMs in different areas so that premium can be collected across Thecountry.

Organize some seminars regarding insurance sector in which one should

Come to know about insurance sector that why it is so important for individual

Life.

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FUTURE POSSIBILITIESJob opportunities are likely to increase minified. The number of people Working in

the insurance sector in India is roughly the same as in the UK With a population that

is 1/7 Indias the US with a population 1/4 the size Of India has nearly 4 times the

number. The liberalization of the insurance Sector promises several new jobs

opportunities for those employed in the Finance sector that are equipped with

degrees in finance. There will be Demand for marketing specialists, finance experts,

human resource Professionals, engineers from diverse streams like the

petrochemical and Power sectors, systems professionals, statisticians and even

medical Professionals. There could be a huge inflow of funds into the country. Given

the industrys huge requirement of start- up capital, the initial years after opening up

are bound to see a strong inflow of foreign capital. Substantial shift in the distribution

of insurance in India is likely to take Place. Initially, insurance is seen as a complex

product with a high advice and service component. Buyers prefer a face to-face

interaction and place a High premium on brand name and reliability. Finally, some

potential Indian entrants into insurance hope to ride their Existing distribution

networks and customer based. For Example, financial Organizations like ICICI,

HDFC or Kotak Mahindra intend to tap the Thousand of customers who already buy

their deposits, consumer loans or

Housing finance. Other hopeful entrants anticipate specific alliances such as with

hospitals to provide health cover.

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BibliographyBibliography

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BIBILIOGRAPHY

a) www.licindia.com

b) www.hdfcinsurance.com

c) www.irdaindia.org

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AnnexureAnnexure

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QUESTIONNA IRE

1. Do you know about the term Life Insurance?

Yes No

2. From where did you come to know?

Newspaper.

Magazines.

Electronic Media.

Other sources.

3. Life Insurance is necessity of life?

Completely Agree.

Agree.

Partially Agree.

Disagree.

4. Why would you go for life Insurance?

Risk Coverage. Investment. Tax Benefits.

All of the above.

5. Are you insured? If Yes, then with which company?

Yes No

Company Name ------------------------------------------.

6. Are you satisfied with the service of your insurance agent / corporation?

Yes No

7. Which Sector would you prefer to get insurance?

Government. Private.

8. In what type of instruments would you prefer to invest?

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Property Bank Security

Insurance Others ------------------------

9. Do you have any pension plans?

Yes No

10. Should life insurance be made compulsory?

Yes No

11.Any suggestions from your side?

-------------------------------------------------------------------------------------------------------------------------------------.

Personal Details

Name: --------------------------------------------------

Age: Less then 20 years 26-35 years

36-45 years 46-55 years

Monthly family income:

Less than 10,000 10,000 - 20,000

30,000 - 40,000 Above 50,000

Occupation: Salaried Student

Businessman Profession

Documents

customer satisfection referance to hdfc.doc