De & Sop of Hdfcsl

8/3/2019 De & Sop of Hdfcsl

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SUMMER TRAINING PROJECT

A STUDY ON DISTRIBUTION ENHANCEMENT ANDPRODUCTS OF HDFC STANDARD LIFE INSURANCE

CO. LTD.

FOR PARTIAL FULFILLMENT OF DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

(BANKING & INSURANCE)

(Batch 2009-2012)

SUBMITTED BY: SUBMITTED TO:

PRERNA BHATIA MS.VARSHA AGGARWAL

Enrollment No. 05414701809 PROJECT GUIDE

MAHARAJA AGRASEN INSTITUTE OF

MANAGEMENT STUDIES

AFFILIATED TO

GURU GOBIND SINGH INDRAPRASTHA

UNIVERSITY,DWARKA


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STUDENT DECLARATION

This is to certify that I have completed the summer training project titled

A STUDY ON DISTRIBUTION ENHANCEMENT AND

PRODUCTS OF HDFC STANDARD LIFE INSURANCE CO. LTD.

under the guidance of MS. VARSHA AGGARWAL in partial

fulfillment of the requirement for the award of degree of Bachelor of

Business Administration at Maharaja Agrasen Institute of Management

Studies, Delhi. This is an original piece of work & I have not submittedit earlier elsewhere.

Name:

Signature:

Date


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ACKNOWLEDGEMENT

First of fall I would like to thank the Management at HDFC Standard

Life Insurance Company Ltd Life Insurance co.for giving me the

opportunity to do my two-month project training in their esteemed

organization. I am highly obliged to Mr. A.GANESH PANDIAN (Sales

Development Manager) for granting me to undertake my training at

Ashok Nagar branch.

I express my thanks to all Sales Managers under whose able guidance

and direction, I was able to give shape to my training. Their constant

review and excellent suggestions throughout the project are highly

commendable.

My heartfelt thanks go to all the executives who helped me gain

knowledge about the actual

working and the processes involved in various departments

PRERNA BHATIA

BBA (B&I)

05414701809


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INDEX

CHAPTER NO. TITLE PAGE NO.

EXECUTIVE

SUMMARY

1. INTRODUCTION

2. RESEARCHMETHODOLOGY

3. DATA ANALYSIS &

INTERPRETATION

4. FINDINGS

5. CONCLUSION

BIBLIOGRAPHY


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policies are unit linked plans where a customer is benefited even if their

death does not occur during the policy term. This message should be

conveyed to potential customers so that they readily invest in insurance.

Family responsibilities and high returns are the two main reasons

peopleinvest in insurance. Optimum returns of 1620 % must be provided to

consumers to keep them interested in purchasing insurance.

On the whole HDFC standard life insurance is a good place to work at.

Every

new recruit is provided with extensive training on unit linked funds, and

the products of HDFC.

HDFC was ranked 13 in the Best

Places to Work survey. The company should try to create awarenessabout

itself in India. In the global market it is already very popular. With an

improvement in the sales techniques used, a fair bit of advertising and

modifications to the existing product portfolio, HDFC would be all set to

capture the insurance market in India as it has around the globe.


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CHAPTER I

INTRODUCTION


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HDFCSL is one of Indias leading private insurance companies.

It offers both individual and group insurance solution. It is a joint

venture

between HDFC and a group of company of Standard Life. I have choseninsurance sector as the place for summer training because in these days

this

sector is in boom and it will never go down. All people invest their

money in

insurance and get more benefited. In the sector the work of marketing is

more challenging than the other sector because there is 17 insurance

companies in the market who are giving competition to each other and

thework of convince people for investment in respective company is a

challenging work and success in the sector proves that the respective

person

is a good marketer. Today insurance sector in India is on boom because

all

people want to invest. Those who dont know about investment in share

market and dont want to invest in mutual funds they invest in insurance

sector. Insurance sector gives them investment plus risk cover. Those

who

dont want to take risk in the investment go to insurance sector. It also

gives

income tax benefits to the people. Insurance companies hav now

launched

ULIP plan and give chance to the investor to choose their investment

pattern according to their fund investment table. This fund

investment tells us that how much the investor want to take risk.

Generallyin the ULIP plan, the thesis is that The more you risk the more you

have

profit.


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HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818 when it was

conceived as a means to provide for English Widows. Interestingly inthose

days a higher premium was charged for Indian lives than the non -

Indian

lives, as Indian lives were considered more risky to cover. The Bombay

Mutual Life Insurance Society started its business in 1870. It was the

first

company to charge the same premium for both Indian and non-Indian

lives.The Oriental Assurance Company was established in 1880. The General

insurance business in India, on the other hand, can trace its roots to

Triton

Insurance Company Limited, the first general insurance company

established

in the year 1850 in Calcutta by the British. Till the end of the nineteenth

century insurance business was almost entirely in the hands of overseas

companies.

Insurance regulation formally began in India with the passing of the LifeInsurance Companies Act of 1912 and the Provident Fund Act of 1912.

Several frauds during the 1920's and 1930's sullied insurance business in

India. By 1938 there were 176 insurance companies.

The first comprehensive legislation was introduced with the Insurance

Act of

1938 that provided strict State Control over the insurance business. The

insurance business grew at a faster pace after independence. Indian

companies strengthened their hold on this business but despite thegrowth

that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life

insurers and provident societies under one nationalized monopoly

corporation and Life Insurance Corporation (LIC) were born.


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Nationalization

was justified on the grounds that it would create the much needed funds

for

rapid industrialization. This was in conformity with the Government's

chosenpath of State led planning and development.

The non-life insurance business continued to thrive with the private

sector till

1972. Their operations were restricted to organized trade and industry in

large cities. The general insurance industry was nationalized in 1972.

With

this, nearly 107 insurers were amalgamated and grouped into four

companies- National Insurance Company, New India AssuranceCompany,

Oriental Insurance Company and United India Insurance Company.

These

were subsidiaries of the General Insurance Company (GIC)

KEY MILESTONES

1912:The Indian Life Assurance Companies Act enacted as the first statute

to regulate the life insurance business.

1928:The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life

insurance businesses.

1938:Earlier legislation consolidated and amended by the Insurance Act

with the objective of protecting the interests of the insuring public.


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1956:245 Indian and foreign insurers along with provident societies were

taken over by the central government and nationalized. LIC was formed

by an

Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5crore from

the Government of India.

INDUSTRY REFORMS

Reforms in the Insurance sector were initiated with the passage of the

IRDA

Bill in Parliament in December 1999. The IRDA since its incorporation

as a

statutory body in April 2000 has fastidiously stuck to its schedule of

framing

regulations and registering the private sector insurance companies. Since

being set up as an independent statutory body the IRDA has put in a

framework of globally compatible regulations.

The other decision taken simultaneously to provide the supportingsystems to

the insurance sector and in particular the life insurance companies was

the

launch of the IRDA online service for issue and renewal of licenses to

agents.

The approval of institutions for imparting training to agents has also

ensured

that the insurance companies would have a trained workforce ofinsurance

agents in place to sell their products.


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PRESENT SCENARIO - LIFE

INSURANCE INDUSTRY IN INDIA

India with about 200 million middle class household shows a hugeuntapped potential for players in the insurance industry. Saturation

of markets in many developed economies has made the Indian

market even more attractive for global insurance majors. The

insurance sector in India has come to a position of very high

potential and competitiveness in the market. Indians, have alwaysseen life insurance as a tax saving device, are now suddenly

turning to the private sector that are providing them new products

and variety for their choice.

Consumers remain the most important centre of the insurancesector. After the entry of the foreign players the industry is seeing

a lot of competition and thus improvement of the customer service

in the industry. Computerisation of operations and updating of

technology has become imperative in the current scenario. Foreignplayers are bringing in international best practices in service

through use of latest technologies

The insurance agents still remain the main source through whichinsurance products are sold. The concept is very well established in

the country like India but still the increasing use of other sources is

imperative. At present the distribution channels that are available

in the market are listed below.

i. Direct sellingii.Corporate agentsiii.Group sellingiv.Brokers and cooperative societiesv.Bancassurance


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Customers have tremendous choice from a large variety ofproducts from pure term (risk) insurance to unit-linked investment

products. Customers are offered unbundled products with a variety

of benefits as riders from which they can choose. More customers

are buying products and services based on their true needs and notjust traditional money back policies, which is not considered very

appropriate for long-term protection and savings. There is lots of

saving and investment plans in the market. However, there are still

some key new products yet to be introduced - e.g. health products.

The rural consumer is now exhibiting an increasing propensity forinsurance products. A research conducted exhibited that the rural

consumers are willing to dole out anything between Rs 3,500 and

Rs 2,900 as premium each year. In the insurance the awarenesslevel for life insurance is the highest in rural India, but the

consumers are also aware about motor, accidents and cattle

insurance. In a study conducted by MART the results showed that

nearly one third said that they had purchased some kind of

insurance with the maximum penetration skewed in favour of life

insurance. The study also pointed out the private companies have

huge task to play in creating awareness and credibility among the

rural populace. The perceived benefits of buying a life policy rangefrom security of income bulk return in future, daughter's marriage,

children's education and good return on savings, in that order, the

study adds.

COMPANY PROFILE

When we talk about company profile then HDFC standard life insuranceCompany is targeting insurance sector. It is launching various type of

Insurance plan and product which is enticing people to buy its plan. As

an

Insurance company it focuses in the recruitment of financial consultant

because the main aim of company is to


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get business and sell lots number of policy and this work is done by

financial consultant.

HDFC GROUP COMPANIESHDFC Limited

HDFC Bank

HDFC Asset Management Co. Limited

HDFC Securities Limited

HDFC Standard Life Insurance Company

KEY PLAYERS

Mr. Deepak S Parekh is the Chairman of the Company. He is alsothe

Executive Chairman of Housing Development Finance Corporation

Limited

(HDFC Limited). He joined HDFC Limited in a senior management

position in

1978. He was inducted as a whole-time director of HDFC Limited in

1985 and

was appointed as its Executive Chairman in 1993. He is the ChiefExecutive

Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of

Chartered

Accountants (England & Wales).


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Mr. Deepak M Satwalekar is the Managing Director and CEO ofthe

Company since November, 2000. Prior to this, he was the Managing

Director

of HDFC Limited since 1993. Mr. Satwalekar obtained a BachelorsDegree in

Technology from the Indian Institute of Technology, Bombay and a

Masters

Degree in Business Administration from The American University,

Washington

DC.

KEY STRENGTHFinancial Expertise

As a joint venture of leading financial services groups. HDFC standard

Life

has the financial expertise required to manage long-term investments

safely

and efficiently.

Range of Solutions

HDFC SLIC has a range of individual and group solutions, which can be

easily

customized to specific needs. These group solutions have been designed

to

offer complete flexibility combined with a low charging structure.

Strong Ethical Values

HDFC SLIC is an ethical and Cultural Organization. False selling or

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commitment with the customers is not allowed.

Most respected Private Insurance Company

HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by

the

World Class Magazine Business World for Integrity, Innovation and

Customer

Care.

HDFC Standard Life Vision andValues

Vision of HDFCSL

The most successful and admired life insurance company, which

means that

they are the most trusted company, the easiest to deal with, offer the best

value for money, and set the standards in the industry. In short, The

most

obvious choice for all

For retention in the market and highest market share, they need the trust

of their customer. The customer should trust on their policies, services,

employees and should be friendly with them. It wants to live in the eye

and

heart of the customer. It wants to give them the easiest deal so that theycan

be understood the terms and policies.

As we know that profit is the main aim

of any business ,but it think not only about its profit but also profit of the

customer. It wants to be the choice of all people on the basis of trust of


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customer, delivering high value to the customer, and deliver

Of best value of the money.

Value1.Integrity

HDFCSL believes in honest and trustfulness in every action.

Transparency

in dealing with customers. It sticks to principles irrespective of outcome.

Integrity is the bedrock on which the company and the expectations of

the customers and employees are built. Integrity gives inner feeling toboth

customer and the employees to work with it. It establishes the credibility

of

the person, defines the character and empowers one to do justice to the

job.

It enables confidence and trust, achieving transparency and laying a

strong

foundation for a binding relationship.

2.Innovation

It is the process of building a store house of treasures through

experiences.

Lot of products are going to be launched by the competitors. So it is very

important to look every product and process through fresh eyes every

day. It

is the significant part of the business that attracts customer.

Innovation is essential to exceed customer expectation and maximize

customer retention because it is the sector of investment so you need to

fulfill the customer expectation which help you to retain customer.

Innovation helps to achieve competitive advantage. It promotes growth

and

upgrade standards in the industry.


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Customer centric

Whatever work

Is done by the organization runs around the expectations of the

customer.Customer becomes centre point of the organization and the main focus

of

the organization becomes to understand his expectations by keeping him

as

the centre point. It gives more focus on customer activity . It tries

to understand customer needs and deliver solutions.

3.People Care

It

guides the development of people through training and support. It helps

them to

develop their requisite skills so that they can reach their true potential.

It tries to know them on a personal front because it works as a

performanceappraisal. It tries to create an environment of trust and openness so that

all

people who are working here behave friendly and help each other

because team work is most important for getting success and give

respect for

the time of others.

People are the most valuable assets of the company so it tries to

motivate individual to give his/her best. It wants to establish a valuable

relationship with them to create a joyful working environment. The most

important thing is that it tries to provide job satisfaction for their people.

4.Team work One for all and all for one


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Here whole team takes the ownership of the deliverables.

There is a cooperation and support across departmental

boundaries. It identifies strengths and weaknesses and accordingly

allocate

responsibility to achieve common objectives.Team work helps everyone to achieve more. It adds joy at work place

which

adds interest in the work .It generates synergy

and provides a focused approach. When an idea or activity is performed

in a

group, it has greater acceptability.

Team work proves one for all and all for

one.

5.Joy and simplicity

It believes in joy and simplicity so that people in the organization will be

more dedicated towards work and they will give more business to the

organization. Work with joy and simplicity brings creativity and new

imagination which also brings new innovative ideas that promote

competitive advantage to the organization.

MISSION OF HDFSLIC

It aims 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, rather it is a combination of several things like-

Customer service of the highest order Value for money for customers


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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

AWARDS AND ACCOLADE OFHDFCSL

AWARDS

ADFEST 20073 Awards

Its advertising has helped create high awareness for their brand and has

bagged 2 silver and 1 bronze awards at the ADFEST 2007 National

Awards organized by Advertising Agencies Association of India (AAAI,

the premier

advertising body in India).

The 3 awards that their ads won are notable for a number of reasons.

4Ps Power Brand 2007

HDFC Standard Life was selected as '4Ps Power Brand 2007', for being

one


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of Indias 25 Best Startup Companies in an exclusive survey conducted

by

ICMR (Indian Council of Market Research) and 4Ps - Business and

Marketing (a Business and Marketing magazine published by Plan man

Media).

4Ps Power Brand 2006

HDFC Standard Life has been as '4Ps Power Brand 2006', for being one

of

India's Top 25 5'Most Innovative Companies' in an exclusive surveyconducted by ICMR (Indian Council of Market Research) and 4Ps -

Business and Marketing (a Business and Marketing magazine published

by

Plan man Media). HDFC Standard Life was the only company selected

from the

insurance domain. Besides HDCSL, the list included giants like (in no

particular

order) HLL, Microsoft, Nokia, LG, Samsung, IBM, HP, ITC Group,Hero

Honda, Bajaj Auto, Ranbaxy, ICICI Bank, Tata Group, Kingfisher

Airlines, etc.

ACCOLADE

March, 2008

The Unit Linked Savings Plan advertisement of HDFC Standard Life,

one of

the leading private insurance companies in India, has topped Mints Top

Television Advertisement survey conducted, for 2008. HDFC


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Standard Lifes Unit Linked Savings Plan advertisement was ranked 4th

in

terms of a combined score of ad awareness and brand recall and 3rd in

terms

of ad diagnostic scores (likeability, enjoyment, believability, and claim).

January2008

It

mentions HDFC Standard Life to be "....one of the first private insurers

to

break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of

'death' to convey its brand proposition, which was then, followed byothers

including ICCI Prudential, thus giving them the credit of bringing up

one such

glorious advertising and marketing moment in last 60 years!

December 2007

A survey of the best ads on television in November in which HDFCStandard Life pension plans, topped the ad diagnostics and came in

eighth.

Their pension advertising was ranked first in terms of ad diagnostic

scores

(including likeability, credibility, and enjoyment).

WHAT IVE LIKED - Straight to theheart!

I often say that nothing makes an ad work like empathy. Find a

connect and you have done it! That is exactly what the HDFC Pension


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Plans television commercial, airing on most channels, currently

achieves.

Admittedly, todays girls are far more independent and wouldnt

dream of total dependence on any one, it was not quite so just a

generationago. It was the norm rather, for a husband to be totally responsible for

his

wifes comfort and yes, statements likeDid you ask for my hand to put

me

through all this strike a chord. So even if my generation is

reminded of our parents when this ad airs, I am sure it still does its job

by

getting them to plan for a light-heated retirement depicted by the ever-soidentifiable on screen pair.

September 2007

HDFC Standard Life was ranked 6th amongst The 10 most

effective ads in September 2007.

The ranking was based

on the total effectiveness of the ad in connecting the brand with theconsumers.

december2006-January 2007

HDFC Standard Life was ranked 29th in the most trusted Indian Brands

amongst the Top 50 Service Brands of 2006. This study was conducted

by

Brand Equity (Economic Times supplement). HDFC SL moved up 16

places

to be positioned at number 29 (was earlier at 45).

PRODUCTS & SERVICES


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The right investment strategies won't just help plan for a more

comfortable

tomorrow -- they will help you get Sar Utha ke Jiyo. At HDFC SLIC,life

insurance plans are created keeping in mind the changing needs of

family. Its

life insurance plans are designed to provide us with flexible options that

meet both protection and savings needs. It offers a full range of

transparent,

flexible and value for money products. HDFC SLIC products are

modern andcontemporary unitized products that offer unique customer benefits like

flexibility to choose cover levels, indexation and partial withdrawals.

PLANS THAT ARE OFFERED BY

HDFC STANDARDS LIFE

INSURANCE

Individual ProductsProtection Plans

A person can protect his family against the loss of his income or the

burden of a loan in the event of his unfortunate demise, disability or


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sickness. These plans offer valuable peace of mind at a small price.

Protection range includes:

Term Assurance Plan:

This plan is designed to help secure our familys financial needs in case

of uncertainities. This plan does this by providing a lump sum to the

family of the life assured in case of death or critical illness of the life

assured during the term of the contract. One can choose the lump sum

dat would replace the income lost to ones family in the unfortunate

event of ones death.

ADVANTAGES:

High cover at a very nominal cost.

Flexibility to choose the Sum Assured.

Additional benefit options can be availed at marginal costs.

Premium amount remains the same over the term of the policy

in case of regular premium

Option of paying single premium or regular premium.

Tax benefits under sections 80C, 80D and 10(10D) of Income

Tax Act, 1961.

Assurance Plan.:

This plan is specially designed to help the family repay the

outstanding loan in case of unfortunate demise.

Features:

Convenience with no need to undergo any medical examinations


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Insurance cover with limited documentation. Opportunity to save and invest regularly. Very flexible optional benefits and payment options. Tax benefits on premiums paid and on the lump sum you receive.

Benefits:

In the event of policyholder's unfortunate demise before the end ofthe policy term, this plan will pay our family the Sum Assured

(together with the attached bonuses) chosen by us.

At the end of the term, the policy pays out the basic Sum Assured(together with the attached bonuses) chosen by us

Investment Plans

HDFC SLICs Single Premium Whole of Life plan is well suited to

meet

long term investment needs. This provides attractive long term returns

through regular bonuses.

Pension Plans

Pension Plans help to secure financial independence even after

retirement.Pension range includes:

Personal Pension Plan:

Personal Pension Plan is a well designed plan made to secure our future


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after retirement. Income earning days should be spent with ease and the

same peaceful days should prevail during retirement days as well.

Hence investing in a plan like the Personal Pension Plan takes care of

the needs of the retired life by providing a regular income to the policyholder.

Unit Linked Pension:

The HDFC Unit Linked Pension is an insurance policy that is designed

to provide a retirement income for life with the freedom to maximise our

investment returns.

Benefits:

In the event of policyholder's unfortunate demise before the end ofthe policy term, HDFC Standard Life will pay the unitized fund

value(and bumper additions, if any) to the nominee

On the chosen vesting date, the policyholder will get theaccumulated value of funds and bumper additions, if any. This

fund value will be used to provide pension income as per the

prevailing government regulation

Take 1/3rd of the fund value as tax-free cash lump sum andpurchase annuity with the balance amount

Purchase annuity from HDFC Standard Life or any other insurer.Features:

An outstanding investment opportunity by providing a choice ofthoroughly researched and selected investments


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Freedom from tracking the market with Asset Allocation Option Bumper Addition of 50% of original annualised premium at

vesting and on death

Provides a post retirement income for life

Savings Plans

Savings Plans offer a flexible option to build savings for future needs

such

as buying a dream home or fulfilling our childrens immediate and

future

needs.

Savings range includes:

Endowment Assurance Plus:

Endowment insurance plans provide life insurance cover for a specific

period. The insured can get the sum assured plus any bonus or

guaranteed additions that may accrue during the policy term.

Unit LinkedEndowment:

High cover at a very nominal cost.

Flexibility to choose the Sum Assured.

Additional benefit options can be availed at marginal costs.


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Premium amount remains the same over the term of the policy in

case of regular premium

Option of paying single premium or regular premium.

Tax benefits under sections 80C, 80D and 10(10D) of Income Tax

Act, 1961.

Unit Linked Endowment Plus:

As a Savings Policy, HDFC Unit Linked Endowment Plus II gives

Valuable protection to our family in case we are not around and anoutstanding investment opportunity by providing a choice of thoroughly

researched and selected investments.

Unit Linked Enhanced Life Protection II:

As a Savings policy, HDFC Unit Linked Enhanced Life Protection II

gives valuable protection to our family in case we are not around.

Children's Plan:

As a parent, our priority is our child's future and being able to meet our

child's dreams and aspirations. Today, providing a good education,

establishing a professional career or even a modest wedding is

expensive. Costs are increasing fast. Just imagine how much we'll need

when our child takes these important steps in life!

Features:

Gives valuable protection and invaluable financial support to thechild.


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Works on Beneficiary concept, where beneficiary is the soleperson to receive the benefit under the policy

Provides you multiple options for multiple benefits Helps you customize an ideal plan for your child.

Group Products

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for

progressive employers who wish to provide the best and most innovative

employee benefit solutions to their employees. It offers different

products for

different needs of employers ranging from term insurance plans for pure

protection to voluntary plans such as superannuation and leave

encashment.

Social Product

Development Insurance Plan

Development Insurance plan is an insurance plan which provides lifecover to

members of a Development Agency for a term of one year. On the death

of any

member of the group insured during the year of cover, a lump sum is

paid to those


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member beneficiaries to help meet some of the immediate financial

needs

following their loss.

HDFCSL product plan is a Life StagePlan

We can see its plan is like a LIFE STAGE Plan. According to it there are

four stage of life: young and single stage, Just Married stage, proud

parents

and Planning and Retirements.

Stage 1

Young and Single stage:-

It is an important stage where on lays down the

foundation of a successful life ahead. It helps in this

stage for taking advantage of the time and power of

compounding to ensure that you build up your dreams.


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Our needs in this stage are safe from home

and weeding, tax planning and save for golden years .

Stage 2

Just Married stage:-

Marriage brings about a significant change. New

dreams and new opportunities also bring in additional

responsibilities. In this stage our needs are planning for

home, save for vacation, and save for our child

Stage 3

Proud Parents:-

Once you have children, your need for life insurance is

even more. In this stage our need will be provide good


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education for childrens, safeguarding family against loan

liabilities, and saving for post-retirement.

Stage 4

Planning for Retirement:-

In this stage our needs becomes more like as weneed more secure, independent and comfortable life style

in our retirement years.

Life Stage Structure


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HDFCSLIC have divided our whole life into four stages and describe

above

the different needs of our different stage. Its all insurance plan are basedupon

these states and it tries to fulfill all the requirement of all the need of

each

stages of life through endowment plan, young star plan , retirement plus

plan, and pension plus plan.


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CHAPTER II

RESEARCH

METHODOLOGY


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OBJECTIVES OF THE STUDY

1.To analyse the product details of HDFC Standard life InsuranceCompany limited.2.Find out factors that influence customers to purchase insurance

policies and give suggestions for further improvement.

3.To analyze the expectations of the customers.

SCOPE OF STUDY

To gain a background knowledge of the research topic.

To identify data sources used by other reseachers.

To learn to structure reports.

To analyze the customer expectations.

LIMITATIONS OF THE STUDY

Incorrect response by the respondents in thequestionnaires would lead to wrong interpretation.


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Respondants at times dont responde to the visits madeto them.

At times the respondants are not ready to listen. Some customers hesitate to respond.

Research Design

In this project conclusive research is used. In conclusive research data

was

collected by descriptive research method . My study is

concerned with the specific prediction of distribution of insurancepolicy. It

assimilates the narration of facts and characteristics concerning

individual,

group or situation.

The objective of my research is to enhance the distribution of

insurance policy of HDFCSL in the market. Insurance industry is

playing and trying to achieve more and more market

share. For this purpose I have done a research on it.For this objective I have used telephone calling and field survey and

go to the institute area and try to find out the response of the public

about

HDFCSL and Insurance.

I have done phone calling and try to get their view about it.


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Regarding the project I

spoke about the reliability of the company, trust, its insurance plan like

are you

aware about its plan or not and some other question like if you are

investingyour money in the other insurance company, so would you please tell me

reason behind it. I had prepared 50 questioners for collecting data. My

research area was PASCHIM VIHAR .

SAMPLING TECHNIQUE

Random sampling techniquewas used in the survey conducted.

SAMPLE SIZE

The sample size used for the survey is 50.

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data.

Primary data is defined as data that is collected from original sources for

a

specific purpose. Secondary data is data collected from indirect sources.

PRIMARY SOURCESThese include the survey or questionnaire method, telephonic interview

as

well as the personal interview methods of data collection.


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SECONDARY SOURCES

These include books, the internet, company brochures, product

brochures,

the company website, competitors websites etc, newspaper articles etc.

CHAPTER III

ANALYSIS


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&

INTERPRETATION

AGE GROUP OF SURVEYED RESPONDENTS

TABLE 1:

Age group No. of Respondents

18 - 25 years 24

26 - 35 years 13

36 - 49 years 8

50 - 60 years 4

More than 60 years 1

CHART 1:


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Analysis:

From the chart above we find that 47% of the respondents fall in the age

group of 1825 years, 25% fall in the age group of 26 35 years and

17%

fall in the age group of 3649 years.

Therefore most of the respondents are relatively young (below 26 years

of

age). These individuals could be induced to purchase insurance plans onthe

basis of its tax saving nature and as an investment opportunity with high

returns.

Individuals at this age are trying to buy a house or a car. Insurance could

help


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them with this and this fact has to be conveyed to the consumer. As of

now

many consumers have a false perception that insurance is only meant for

people above the age of 50. Contrary to popular belief the younger you

arethe more insurance you need as your loss will mean a great financial loss

to

your family, spouse and children (in case the individual is married) who

are

financially dependent on you.

CUSTOMER PROFILE OF SURVEYED

RESPONDENTS

TABLE 2:

Customer profile No. of respondents

Student 12

Housewife 1

Working Professional 21


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Business 9

Self Employed 4

Government service employee 3

CHART 2:

Analysis:

From the chart above it can clearly be seen that 43% of the respondents

are

working professionals, 23% are students and 18% are into business.

Therefore the target market would be working individuals in the age

group of

1825 years having surplus income, interested in good returns on their

investment and saving income tax.


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MARKET SHARE OF LIFE INSURANCE

COMPANIES

TABLE 3:

LIFE INSURER NUMBER OF POLICIES

HDFC STANDARD LIFE 4

BIRLA SUN LIFE 3

AVIVA LIFE INSURANCE 6


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BAJAJ ALLIANZ 7

LIC 55

TATA AIG 6

ICICI PRUDENTIAL 12

ING VYSYA 6

BHARTI AXA 2

OTHERS 2

CHART 3:


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Analysis:

In India, the largest life insurance company is Life Insurance

Corporation of

India. It has been in existence in India since 1956 and is completely

owned by

the Government of India. Today the organization has grown to 2048

officesserving 18 crore policies and has a corpus of over 340000 crore INR.

ANNUAL PREMIUM PAID BY INDIVIDUALS


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FOR LIFE INSURANCE

TABLE 4:

Premium paid (p.a.) No. of respondents

Rs. 5000 - Rs. 10000 22

Rs. 10001 - Rs. 15000 12

Rs. 15001 - Rs. 24900 9

Rs. 25000 - Rs. 50000 5

Rs. 50001 - Rs. 60000 2

Rs.60001 - Rs. 80000 1

Rs. 80001 - Rs. 100000 3

CHART 4:

Analysis:


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From the chart above we find that, 39% of the respondents surveyed pay

an

annual premium less than Rs. 10001 towards life insurance. 25% of the

respondents pay an annual premium less than Rs. 15001 and 17% pay anannual premium less than Rs. 25000. Hence we can safely say that

HDFC

SLIC would be able to capture the market better if it introduced

products/plans where the minimum premium starts at Rs. 5000 per

annum.

Only 19% of the respondents pay more than Rs. 25000 as premium and

most

products sold by HDFC SLIC have Rs.12000 as the minimum annualpremium

amount. They should introduce more products like Easy Life Plus and

Safe

Guard where the minimum premium is Rs.6000 p.a. and Rs. 12000 p.a.

respectively. This would definitely increase their market share as more

individuals would be able to afford the policies/plans offered.

POPULAR LIFE INSURANCE PLANS


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TABLE 5:

Type of Plan No. of Respondents

Term Insurance Plans 19

Endowment Plans 23

Pension Plans 3

Child Plans 2

Tax Saving Plans 3

CHART 5 :

Analysis:


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From the chart given above we can clearly see that 45% of the

respondents

hold endowment plans and 39% of the respondents hold term insurance

plans. Endowment plans are very popular and serve two purposes lifecover

and savings.

If the policy holder dies during the policy term the nominee gets the

death

benefit that is, sum assured and accumulated bonus. On survival the

policy

holder receives the survival benefit with a bonus.

A term plan is a pure risk cover plan wherein the insured pays a lowerpremium for a higher sum assured. Term insurance is the cheapest form

of

insurance and helps the policy holder insure himself for a relatively low

premium. For the returns sensitive investor term plans do not find favor

as

they do not offer a return in case the individual does not die during the

policy

term.

AWARENESS OF UNIT LINKED INSURANCE


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PLANS

TABLE 6:

Awareness of Unit Linked Plans No. of Respondents

Yes 29

No 21

CHART 6:

Analysis:From the chart given above we find that 57% of the respondents are


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aware of

unit linked life insurance plans and 43% are not aware of such plans.

These

plans should be promoted through advertising. The company can

advertisethrough television, radio, newspapers, bill boards and pamphlets. This

would

increase awareness and arouse curiosity in the minds of the consumer

which

would enable the company to market its products more effectively.

Unit linked plans are those where the benefits are expressed in terms

of

number of units and unit price. They can be viewed as a combination ofinsurance and mutual funds. The number of units a customer would get

would depend on the unit price when they pay the premium.

When the policy matures the individual gets his fund value. The value of

his

fund is calculated by multiplying the net asset value and number of units

held by them on that day.

CONSUMER WILLINGNESS TO SPEND ON


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LIFE INSURANCE PREMIUM

TABLE 7:

Willingness to spend

on premium

No. of respondents Percentage

Less than Rs. 6,000 7 15%

Rs. 6,001 - Rs. 10,000 14 27%

Rs. 10,001 - Rs.

25,000

21 41%

Rs. 25,001 - Rs.

50,000

7 15%

Rs. 50,001 - Rs.

1,00,000

1 2%

CHART 7:

Analysis:


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From the graph above, we can clearly see that 41% of the respondents

would

be willing to spend between Rs. 10001Rs. 25000 for life insurance. 27

%would be willing to spend between Rs. 6001 Rs. 10000 per annum.

Only

15% would be willing to spend more than Rs. 25000 per annum as life

insurance premium.

We could say that the maximum premium payable by most consumers is

less

than Rs. 25000 p.a. This is further reduced as most customers have

alreadyinvested with LIC, ICICI Prudential, Birla Sun Life, Bajaj Allianz etc.

HDFC SLIC is faced with a large amount of competition. There are 18

insurance companies in India inclusive of LIC. Hence to capture a larger

part

of the market the company could introduce more reasonable plans with

lesser premium payable per annum.

CHART SHOWING IDEAL POLICY TERM


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TABLE 8:

Ideal policy term No. of respondents

3 - 5 years 10

6 - 9 years 8

10 - 15 years 16

16 - 20 years 7

21 - 25 years 5

26 - 30 years 1

More than 30 years 1

Whole life Policy 2

CHART 8:

Analysis:


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From the chart given above it can be seen that 35% of the respondents

prefer a policy term of 10 15 years, 19% prefer a term of 3 5 years

and

15% prefer a term of 6 9 years. This means that HDFC SLIC couldintroduce

more plans wherein the premium paying term is less than 15 years.

The outlook of insurance as a product should be changed from

something

which you pay for your whole life (whole life policy) and do not receive

any

benefit (the nominee only receives the benefit in case of your death) to

anextremely useful investment opportunity with the prospects of good

returns

on savings, tax saving opportunities as well as providing for every

milestone

in your life like marriage, education, children and retirement.

FACTORS THAT MOTIVATE


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RESPONDENTS TO PURCHASE INSURANCE

TABLE 9:

Parameter No. of Respondents

Advertisements 6

High returns 16

Advice from friends 9

Family responsibilities 17

Others 2

CHART 9:

Analysis:


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From the chart above it can be seen that 33% of the respondents

purchase

life insurance to secure their families, 33% take life insurance to get high

returns, 17% purchase insurance on the advice of their friends and 13%purchase insurance because of the influence of advertisements.

The main purpose of insurance is to cover the financial or economic loss

that

occurs to the family in case of the uncertain death of the policy holder.

But

now days this trend is changing. Along with protection (life cover), a

savings element is being added to insurance.

With the introduction of the new unit linked plans in the market, policyholders get the option to choose where their money will be invested.

They

can invest their money in the equity market, debt market, money market

or a

combination of these. The debt and money markets usually have low

risk

attached whereas the equity market is a high risk investment option.

PREFERRED COMPANY TYPE OF THE


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RESPONDENTS

TABLE 10:

Type of Company No. of Respondents Percentage

Government Owned

Company

24 47%

Public Limited

Company

12 23%

Private Company 9 18%

Foreign Company 5 12%

CHART 10:

Analysis:


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From the graph above we find that 60% of the respondents preferred to

purchase insurance from a government owned company, 29% of the

respondents preferred to purchase insurance from a public limited

company

and only 4% of the respondents preferred a foreign based company.Heavy

advertising through television, newspapers, magazines and radio is

required.


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CHAPTER IV

FINDINGS

Insurance inIndia is primarily used as a means to improve personal finances and for

income tax planning.


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With the entry of privatesector players backed by foreign expertise, Indian insurance market has

become more vibrant.

With the increasing financial literacy, volatileeconomy and uncertain future are prompting Indians to look seriously at

insurance as a means for protection rather than tax saving

instrument.

HDFC is currently focusing on The Pension Plan and the ChildPlan aiming

to cash in on the potential of these segments.


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CHAPTER V

SUGGESTIONS AND

RECOMMENDATIONS

To enhance the distribution channel in the selling of insurancepolicies.


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To find out the competitive edge of the company over thecompetitors

Generally we buy only that thing whatever we see. It means that itshould spend more on advertisement. Other insurance industry like

LIC and ICICI advertise mostly through banner on metro station, on

road and advertise in the cinema hall. Add more and more movie hall for

the advertisement

Regular canopy should be established in such areas like metroStations,

college campus, and malls, supermarket, and hypermarket for the

purpose of getting business.

It should launch new innovative insurance policy which will enticepeople for insurance in HDFCSLIC


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CHAPTER VICONCLUSION

HDFCSLIC is the renounce industry in the insurance sector. It believes

in

quality not in quantity.


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It gives priority for the

recruitment of financial consultant. It gives

priority to professionals like MBA, CA, ENGINEERS, DOCTORS,

LAWERS, AND OTHER PROFESSIONALS.

The insurance market in India is growing atan astounding rate of 30% p.a. Still the experts believe that the potential

is

largely untapped.

The insurance market is dominated by the public sector giant LIC with a

market share of around 71.4%. With the private players leading the

growth

story, this sector is witnessing more marketing actions than even the

FMCGsector.

Traditionally insurance are sold through direct selling. The reason

being purely the nature of product warrants direct communication with

the

consumer. Kilter categorizes Insurance as an "Unsought" product.

Unsought

products are those which are ranked lowest in terms of consumer

interest.

Consumers may not be even aware of either the need or existence of this

product.

Historically, Indian insurance products are sold for wrong reasons.

People buy insurance to avail the tax benefit and not to ensure protection

and LIC was happy to oblige. Hence most of the sales talks start with the

question " How much do you pay tax?" . Little money was spent on

brand

building because there was no competition for LIC.

Things have now changed. With the increasing financial literacy,volatile

economy and uncertain future are prompting Indians to look seriously at

insurance as a means for protection rather than tax saving instrument.

With


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more private players entering the domain, the issues of differentiation

and

branding became important.

Now days we are seeing a lot ofmedia action from this company.

HDFC is currently focusing on The Pension Plan and the Child Planaiming

to cash in on the potential of these segments. The pension market in

India is

estimated to be around 1000 crore with a huge potential for growth in

the

future.

The change in the demographics is going to drive the pension

market inIndia.

People earlier depend on social

security products like EPF and PPF to build a corpus for their golden

years.

It is this potential that has encouraged HDFC to promote its pension

plans.

Introduced in 2002, this product has been well received by the

consumers.

The ads are well executed and revolve around the positioning of

"Respect

Yourself" The target segment being the 30 year old family man. The

basic

theme of the campaign is to appeal to the self respect of these men who

are

in their prime of their career. "Evenafter retirement let your hands

give

rather than receive" is one of the best themes for a pension plan. Forpeople

in this category, these ads strike a chord and remind them of the need to

plan for their retirement. The same theme is carried to the Child plan

also.

Although these campaigns will help to invoke an interest, the market


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is in its nascent stage and lot of convincing has to be done to crack this

huge

market.

HDFC Standard Life has correctly identified the pulse of the target

market and is all set to reap the benefits.

A SURVEY ON INSURANCE INDUSTRY

Dear Sir/Madam,

I am a student of Maharaja Agrasen Institute Of Management Studies,

Delhi. As part of therequirements for my Graduation in Management I am required

to do a research based project. Kindly spend a few minutes of your

valuable

time and fill in this questionnaire.

Do you have a life insurance

policy/investment plan in your name?o Yes o No

If yes which companys insurance policies do

you hold?

o HDFC Standard

Life Insurance

o Birla Sun Life

Insurance

o Aviva Life

Insuranceo Bajaj Allianz Life

Insurance

o LIC

o Tata AIG Life

Insurance


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o ICICI Prudential

Life Insurance

o ING Vysya Life

Insurance

o Bharti Axa LifeInsurance

o Others (specify name)

What is the approximate premium paid by you

annually (in Rupees)?

o Rs. 5,000Rs.

10,000

o Rs. 10,001Rs.

15,000o Rs. 15,001Rs.

25,000

o Rs. 25,001Rs.

50,000

o Rs. 50,001Rs.

60,000

o Rs. 60,001Rs.

80,000

o Rs. 80,001Rs.

1,00,000

o More than Rs. 1,00,000 (specify premium)

What kind of insurance policy would suit you

best in your current stage of life?

o Life Insurance

o Life Insurance

and InvestmentPlans

o Pension Plans

o Child Plans

o Tax saving plans


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How much would you be willing to spend per

annum if you were to go for an

investment/insurance plan?o Less than Rs.

6,000

o Rs. 6,001Rs.10,000

o Rs. 10,001Rs.

25,000

o Rs. 25,001Rs.

50,000

o Rs. 50,000Rs.

1,00,000

o More than Rs.

1,00,000

Which according to you is an ideal policy?

term? (Number of years you would be willing

to pay premium)

o 3 to 5 years

o 6 to 9 years

o 10 to 15 years

o 16 to 20 yearso 21 to 25 years

o 26 to 30 years

o More than 30

years

o Whole life policy


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What motivates you to purchase

insurance/investment plans?

o Advertisements

o High Returns

o Advice from

friendso Family

responsibilities

o Others (specify)

In which kind of company would you prefer to

make a purchase of insurance?

o Government

owned

company

o Public Limited

Company

o Private

Company

o Foreign based

company

Typically what kind of returns would you lookat from your investments? (Please note:

Higher returns involve greater risk)o Less than 5%

o 6% - 10 %

o 11% - 15 %


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o 16% - 20 %

o 21% - 25%

o 26% - 30%

o 31% - 40%

o 41% - 50%o More than 50%

Are you aware ofthe advertisement of Sar Utha Ke Jiyo?

o Yes o No

Have you gotten calls for the investment in HDFC Standard Life for

insurance?

o Yes o No

Personal Details :

Name:

Address:

Age:

Contact No. :

Profile of

respondent:

Student Housewife

Working Professional

Business

SelfEmployed

Government Service Employee


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Date:

BIBLIOGRAPHY

http://www.indiacore.com/insurance.html

http://www.acadjournal.com/2008/V22/part7/p2/

http://investing.businessweek.com/research/stocks/private/people.asp?pr

ivcapId=8707653

Research Methodology, C. R. Kothari

http://www.hdfcbank.com/personal/investments/life_insurance/unit_link

ed_plans/UL_Pension_II/UL_Pension_II.htm
http://www.hdfcbank.com/personal/investments/life_insurance/unit_linked_plans/UL_Pension_II/UL_Pension_II.htmhttp://www.hdfcbank.com/personal/investments/life_insurance/unit_linked_plans/UL_Pension_II/UL_Pension_II.htmhttp://www.hdfcbank.com/personal/investments/life_insurance/unit_linked_plans/UL_Pension_II/UL_Pension_II.htmhttp://www.hdfcbank.com/personal/investments/life_insurance/unit_linked_plans/UL_Pension_II/UL_Pension_II.htmhttp://www.hdfcbank.com/personal/investments/life_insurance/unit_linked_plans/UL_Pension_II/UL_Pension_II.htm

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