Project Report-Sandesh Khillari

8/3/2019 Project Report-Sandesh Khillari

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2. COMPANY PROFILE

2.1. History about HDFC

HDFC Standard Life is one of Indias leading private life insurance

companies, which offers a range of individual and group insurance

solutions.

It is a joint venture between Housing Development Finance Corporation

Limited (HDFC), Indias leading housing finance institution, Standard

Life policy provider and a leading provider of financial services in the

United Kingdom. HDFC Standard Lifes product portfolio comprises

solutions, which meet various customer needs such as Protection,

Pension, Savings, Investment, and Health.

Customers have the added advantage of customizing their Plans, by

adding optional benefits called riders, at a nominal price. The company

currently has 25 retail and 4 group products in its portfolio, along with

five optional rider benefits catering to the savings, investment, protection

and retirement needs of customers.

HDFC Standard Life continues to have one of the widest reaches among

new insurance companies through a network of 595 offices serving over

720 cities and towns across the country. The company has also increased

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its depth in existing markets with a strong base of more than 207,000

Financial Consultants.

2.2. HDFC Limited

HDFC Limited has set benchmarks for the Indian housing finance

industry. Recognition for the service to the sector has come from several

national and international entities including the World Bank that has

lauded HDFC as a model housing finance company for the developing

countries. HDFC has undertaken a lot of consultancies abroad assisting

different countries including Egypt, Maldives, and Bangladesh in the

setting up of housing finance companies. Customer Service and

satisfaction has been the mainstay of the organization.

HDFC Limited has assisted more than 3.3 million families to own a

home, since its inception in 1977 across 2400 cities and towns through its

network of over 250 offices. It has international offices in Dubai, London

and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and

Oman to assist NRIs and PIOs to own a home back in India.

2.3. Standard Life Group

The Standard Life group has been looking after the financial needs of

customers for over 180 years. It currently has a customer base of around

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7 million people who rely on the company for their insurance, pension,

investment, Banking and health-care needs. Its investment managers are

currently administers 125 billion in assets. It is a leading pensions

provider in the UK, and is rated by Standard & Poor as strong with a

rating of A+ and as good with a Rating of A1 by Moodys

2.4. Market Share

HDFC Ltd. Holds 72.43% and Standard Life (UK Holding) Ltd. holds

26.00% of equity in the joint venture, while the rest is held by others.

2.5. HDFCs Vision

The most successful and admired life insurance company, which means

that it is the most trusted company, the easiest to deal with, offer the best

value for money, and set the standards in the Industry.

2.6. HDFCs Values

Values that they observe while working:

Integrity

Innovation

Customer centricity

People Care One for all and all for one

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Team work

Joy and Simplicity

2.7. Products

HDFC Lifes product portfolio comprises solution, which meet various

customer needs such as Protection, Pension, Savings, Investment and

Health.

2.8. Competitors

The major competitors are:

ICICI

Bajaj Alliance

2.9. Departments

A business is normally organized by its function and its aspects are

divided into smaller departments in order to operate effectively. They

have departments at HDFC Life that specialize and employ people with

expertise in their areas. They communicate well with each other and with

suppliers and customers, to operate effectively.

The departments of company are as follows:

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Actuarial , ERP , Business & service Excellence, Agency Channel ,

Finance & Accounts , Medical, Audit & Risk Management, Group Sales ,

Operations, Banc assurance & Alliances, HR & Administration , RSBD,

Business System & Technology , Investment, Strategy & product,

Channel Development, Legal & compliance, Underwriting, Claims,

Marketing and Direct Channels.

2.10. Organization Chart-

Chairperson

C.E.O

M.D.

Agency Head Operation Head

Underwriter Agency Team Operation HR Head

ZM Senior HR

AVP AVP

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TM TM TM

BM BM BM

Manager

Agent

2.11. AWARDS WON

The recent awards won by the company are:

Best companies to work for in India 2010

'Young Star Super' Voted 'Product of the Year 2010'

'The Ingenious 100 2009' Award

Diamond EDGE Award 2009.

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LITRATURE REVIEW

History

In India, insurance has a deep-rooted history. It finds mention

in the writings of Manu ( Manusmrithi ), Yagnavalkya (

Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk

in terms of pooling of resources that could be re-distributed in

times of calamities such as fire, floods, epidemics and famine.

This was probably a pre-cursor to modern day insurance.

Ancient Indian history has preserved the earliest traces of

insurance in the form of marine trade loans and carriers

contracts. Insurance in India has evolved over time heavily

drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with

the establishment of the Oriental Life Insurance Company in

Calcutta. This Company however failed in 1834. In 1829, the

Madras Equitable had begun transacting life insurance business

in the Madras Presidency. 1870 saw the enactment of the

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British Insurance Act and in the last three decades of the

nineteenth century, the Bombay Mutual (1871), Oriental

(1874) and Empire of India (1897) were started in the Bombay

Residency. This era, however, was dominated by foreign

insurance offices which did good business in India, namely

Albert Life Assurance, Royal Insurance, Liverpool and London

Globe Insurance and the Indian offices were up for hard

competition from the foreign companies.

In 1914, the Government of India started publishing returns of

Insurance Companies in India. The Indian Life Assurance

Companies Act, 1912 was the first statutory measure to

regulate life business. In 1928, the Indian Insurance Companies

Act was enacted to enable the Government to collect statistical

information about both life and non-life business transacted in

India by Indian and foreign insurers including provident

insurance societies. In 1938, with a view to protecting the

interest of the Insurance public, the earlier legislation was

consolidated and amended by the Insurance Act, 1938 with

comprehensive provisions for effective control over the

activities of insurers.

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The Insurance Amendment Act of 1950 abolished Principal

Agencies. However, there were a large number of insurance

companies and the level of competition was high. There were

also allegations of unfair trade practices. The Government of

India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalizing

the Life Insurance sector and Life Insurance Corporation came

into existence in the same year. The LIC absorbed 154 Indian,

16 non-Indian insurers as also 75 provident societies245

Indian and foreign insurers in all. The LIC had monopoly till

the late 90s when the Insurance sector was reopened to the

private sector.

The history of general insurance dates back to the Industrial

Revolution in the west and the consequent growth of sea-faring

trade and commerce in the 17th century. It came to India as a

legacy of British occupation. General Insurance in India has its

roots in the establishment of Triton Insurance Company Ltd.,

in the year 1850 in Calcutta by the British. In 1907, the Indian

Mercantile Insurance Ltd was set up. This was the first

company to transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, a

wing of the Insurance Association of India. The General

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Insurance Council framed a code of conduct for ensuring fair

conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate

investments and set minimum solvency margins. The Tariff

Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business

(Nationalization) Act, general insurance business was

nationalized with effect from 1st January, 1973. 107 insurers

were amalgamated and grouped into four companies, namely

National Insurance Company Ltd., the New India Assurance

Company Ltd., the Oriental Insurance Company Ltd and the

United India Insurance Company Ltd. The General Insurance

Corporation of India was incorporated as a company in 1971

and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a

journey extending to nearly 200 years. The process of re-

opening of the sectorhad begun in the early 1990s and the last

decade and more has seen it been opened up substantially. In

1993, the Government set up a committee under the

chairmanship of RN Malhotra, former Governor of RBI, to

propose recommendations for reforms in the insurance sector.

The objective was to complement the reforms initiated in the

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financial sector. The committee submitted its report in 1994

wherein, among other things, it recommended that the private

sector be permitted to enter the insurance industry. They stated

that foreign companies are allowed to enter by floating Indian

companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee

report, in 1999, the Insurance Regulatory and Development

Authority (IRDA) was constituted as an autonomous body to

regulate and develop the insurance industry. The IRDA was

incorporated as a statutory body in April, 2000. The key

objectives of the IRDA include promotion of competition so as

to enhance customer satisfaction through increased consumer

choice and lower premiums, while ensuring the financial

security of the insurance market.

The IRDA opened up the market in August 2000 with the

invitation for application for registrations. Foreign companies

were allowed ownership of up to 26%. The Authority has the

power to frame regulations under Section 114A of the

Insurance Act, 1938 and has from 2000 onwards framed

various regulations ranging from registration of companies for

carrying on insurance business to protection of policyholders

interests.

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In December, 2000, the subsidiaries of the General Insurance

Corporation of India were restructured as independent

companies and at the same time GIC was converted into a

national re-insurer. Parliament passed a bill de-linking the four

subsidiaries from GIC in July, 2002.

Today there are 24 general insurance companies including the

ECGC and Agriculture Insurance Corporation of India and 23

life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a

speedy rate of 15-20%. Together with banking services,

insurance services add about 7% to the countrys GDP. A well-

developed and evolved insurance sector is a boon for economic

development as it provides long- term funds for infrastructure

development at the same time strengthening the risk taking

ability of the country.

4.1.Major players in insurance of India

Insurance industry in India comprised mainly of only two state

insurers as follows

Life Insurers

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Life Insurance Corporation of India (LIC)

General Insurers

1. General Insurance Corporation of India (GIC)

GIC had four subsidiary companies, are as follows.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited

3. National Insurance Company Limited

4. United India Insurance Company Limited

In addition to above the following companies have been entered

into Insurance business.

Life Insurers

Public sector

Life Insurance Corporation Of India

Private sector

1. Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Co. Ltd

3. HDFC Standard Life Insurance Co. Limited

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General Insurers

Public Sector

1. National Insurance Company Limited

2. New India Assurance Company Limited

3. Oriental Insurance Company Limited

4. United India Insurance Company Limited

Private Sector

1. Bajaj Allianz General Insurance Co. Limited

2. ICICI Lombard General Insurance Co. Ltd.

3. IFFCO-Tokio General Insurance Co. Ltd.

4. Reliance General Insurance Co. Limited

5. Royal Sundaram Alliance Insurance Co. Ltd.

6. TATA AIG General Insurance Co. Limited

7. Cholamandalam General Insurance Co. Ltd

8. Export Credit Guarantee Corporation

9. HDFC Chubb General Insurance Co. Ltd.

Reinsurer

General Insurance Corporation of India

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Fundamental Concept

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What is insurance?

Insurance is a contract whereby, in returns for the payment of

premium by the insured, the insurers pay the financial losses

suffered by the insured as a result of the occurrence of unforeseen

events. The term risk is used describe all the accidental

happenings, which produce a monetary loss.

Insurance is the method in which large number of people exposed

to a similar risk makes contribution to a common fund out of

which the losses suffered by the unfortunate few, due to accidental

events, are made good. The sharing of risk among large groups of

people is the basic of insurance. The losses of an individual are

distributed over a group of individuals.

The risk becomes insurable if the following requirements are

complied with:

The insured must suffer financial loss if the risk operates.

The loss must be measurable in money.

The objective of the insurance contract must be legal.

The insurer should have sufficient knowledge about the risk

he accepts.

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Types of insurance

Life insurance: it covers individual only, to be more

precise their death only.

Non life insurance (general insurance): it covers

individuals as well as non-living things. Except death it

indemnifies a person for any damages to his health or to the

property belonging to him.

Benefits of life insurance

Replacement of income: life insurance products can provide

support to the family and take care of the familys financial

requirements. It provides a lump sum or periodic payments to

help replace the income stream, in case of an unfortunate event

or an untimely death of the bread earner.

Coasts of education: to support your child with a sound

educational background, and to help him/ her to achieve

his/her dreams, Life insurance products provide you with

a solution, whether you are there or not.

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Retirement expenses: retirement is an age when an

individual has fulfilled almost all his responsibilities and

looks forward to relaxing. Life insurance products can

help you lead a secure and tension free retired life by

assuring that you get guaranteed pension.

Mortgage and Debt protection: with increasing

consuming and ever rising demands, loans and debts are

now part of life. Life insurance products help you ensure

that your family is not duly burdened with their

repayments, in case of an unfortunate events or an

untimely demise of the breadwinner.

Hardships protection: life insurance provides a sense

of security to the income earner and to his/her family.

Buying life insurance frees the individual from various

unnecessary financial burdens that can otherwise make

one spend sleepless nights.

ULIP

ULIP is a market-linked life insurance plan, which invests the

premium money in various proportions in the equity and debt

markets. In effect, this ensures that the returns on such plans

are linked to the performance of the markets while also

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offering the individual an insurance cover at the same time.

This also provides a handy instrument to the investor to save

money as and when he wants.

ULIP came into play in the 1960s and became very popular in

Western Europe and Americas. The reason that is attributed to

the wide spread popularity of ULIP is because of the

transparency and the flexibility which it offers.

As time progressed the plans were also successfully mapped

along with life insurance planning, financial needs, financial

planning for childrens future and retirement planning.

Features of ULIP

ULIP is different from other insurance and investment plans as

it offers the following distinguishing features:

Investment and savings

Flexibility

Investment options

Transparency

Option to take additional cover against

Death due to accident

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Surgeries

Liquidity

Tax Planning

How Unit- Linked Insurance Plans do against?

Unit-linked insurance plans, ULIPs, are distinct from the more

families with profits policies sold for decades by the Life

Insurance Corporation. With profits policies are called so

because investment gains are distributed to policyholders in the

form of a bonus announced every year. ULIPs also serve the

same function of providing insurance protection against death

and provision of long-term savings, but they are structured

differently. In with profits policies, the insurance company

credits the premium to a common pool called the life fund

after setting aside funds for the risk premium on life insurance

and management expenses. Every year, the insurer calculates

how much has to be paid to settle death and maturity claims.

The surplus in the life fund left after meeting these liabilities is

credited to policyholder accounts in the form of a bonus.

In a ULIP too, in a fund that invests money in stocks or bonds.

The value of the unit is determined by the total value of all the

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investments made by the fund divided by the number of units.

If the insurance company offers a range of funds, the insured

can direct the company to invest in the fund of his choice.

Insurance usually offer three choices- an equity fund, balanced

fund and a fund which invests in bonds. In both with profits

policies as well as unit- linked policies, a large part of the first

year premium goes towards paying the agents commissions.

How ULIP is different from term insurance?

A term plan is a pure risk cover plan without any maturity

benefits. This is because there is no savings element in the

premium being charged to the individual; hence maturity

benefits do not accrue. The insured gets the benefits only in

case of death before maturity of policy. Also a term insurance

plan does not give any option to the person insured for saving

and earn returns as he pays the premium only sufficient for his

life cover, and he does not get any returns on it. A term

insurance plan also requires the premium to be paid for a

particular term, which is to be fixed at the time of taking

policy.

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The investor keeps getting returns on compound basis

according to the market movement along with an insurance

cover. ULIP also provides flexibility of choosing the term of

payment of premium and varying as per the requirement of the

investor.

Working of a Unit Linked insurance plan

As an ULIP earns returns for investor on the money he has paid

as premium and also provides life coverage; the premium paid

is treated in the following ways;

Mortality charges: the insurance company to cover the

risk of an eventuality to the individual incurs mortality

charges. The mortality expenses differ depending on the

age of the individual and the sum assured they are higher

for a higher age and sum assured.

Sale and administration expenses: these expenses are

incurred by the insurance company for operational

purposes and recovered from the premium that the

individual pays towards costs incurred to run the

insurance business on a daily basis are example of such

expenses.

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Savings or investment component: this portion of the

premium is invested by the life insurance company in

various investment avenues like government securities,

bonds, money market instrument and equities in varying

proportions. The savings component is what helps

generates the returns which insurance companies pay to

the policy holder by way of bonuses and the maturity

amount.

Tem plans are pure risk cover plans. The premium

charged by term plans cover only the mortality charges,

sales and administration expenses. This is no saving

element in the premium; hence no maturity amount

accrues. It is also due to this reason that term plans are

the cheapest form of life cover available.

Products of HDFC Standard Life

HDFC SL Crest

Any uncertainty should not affect your plans. Be it of life, or

of markets. You want to secure happiness for yourself and your

loved ones. We present HDFC SL Crest - Insurance cum

investment plan that provides valuable financial protection to

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your family when needed the most along with an investment

option for certainty of highest NAV along with a guarantee on

returns. So that when you reap the returns of life, they are on

crests not on lows. In this plan you can choose to invest in

either of two investments options- highest NAV guarantee fund

or free asset allocation option.

Features

;

Advantages

Choice of two investment options - highest NAV guarantee fund or

free asset allocation option.

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Benefit of minimum guaranteed NAV of Rs. 15 at maturity.

On maturity you will receive the fund value as per the investment

option selected.

This plan provides valuable protection to your family in case you are

not around. In case of your unfortunate demise during the policy

term, we will pay the amount higher of your sum assured (less partial

withdrawals) or your total fund value to your family. Please refer to

product brochure for details.

This plan can be taken by filling short medical questionnaire, which

may not require you to go for medicals. Kindly refer to the product

brochure for details.

Tax benefits are offered under section 80c and 10(10d) of the income

tax act, 1961

1. HDFC Life Sampoorn Samridhi Insurance Plan

Sukh aur Samridhi. Joy, happiness and prosperity are your

ultimate desire, not only for yourself but also for your loved

ones. Life insurance plans not only let you secure financial

future of your loved ones, they also assist you in attaining

prosperity.

With HDFC Life Sampoorn Samridhi Insurance Plan, you can

be financially prepared for the future and can fulfill your

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dreams & aspirations. This plan offers financial protection to

your loved ones when they need it the most, enabling you and

your family live life with peace of mind and sar utha ke!

Features

Advantages

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Financial protection to your loved ones by way of a lump sum

payment in case of your unfortunate demise during the policy term.

Sum assured plus attached bonuses will be paid to the nominee. In

case of death due to accident, an additional Sum Assured will be paid.

The policy will terminate and no further benefits will be payable.

Choice of Maturity Benefit Option- on survival till maturity , you

can choose maturity benefit option

Enhanced Cash Option Sum Assured + Reversionary Bonus +any

interim bonus + any terminal bonus + Enhanced Terminal Bonus.

Policy terminates and no further benefits are payable.

Enhanced Cover Option - Sum Assured + Reversionary Bonus + any

Interim bonus + any Terminal Bonus payable on maturity +

Additional Sum Assured on unfortunate death of life assured upto age

of 99 years.

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

Act, 1961 subject to the provision contained therein

For more details on risk factors, terms and conditions, please read the

Product Brochure carefully and/or consult Financial Consultant

before taking a decision.

2. HDFC SL ProGrowth Flexi

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policy term, we will pay the greater of the Sum Assured or your

total fund value to your nominee.

You can choose any of the following 2 plan options as per your

requirement.

o Life Option = Death Benefit

o Extra Life Option = Death Benefit + Accidental Death

Benefit

On maturity, you can take the Fund Value at the prevailing unit

prices as lump sum or you can opt for settlement option.

You have flexibility of

o Switching: You can move your accumulated funds

from one fund to another anytime

o Premium Redirection: You can pay your future

premiums into a different selection of funds, as per your

need

Tax benefits are offered under section 80C and 10(10D) of the

Income Tax Act, 1961

Introduction-

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We understand that creating and effectively managing our wealth is just

part of the equation. It's also important to preserve it. Through the use of

insurance strategies, it can help us to preserve our wealth during our

lifetime, and protect the value of our estate for our family and other

beneficiaries. Insurance strategies help us to maximize the wealth.

Estate Creation and Preservation-

An individual can offset costs that are incurred at death and preserve

his/her estate by having insurance proceeds pay them for him. Taxes,

liabilities, estate-related and other future costs can all be offset by his

permanent insurance coverage. By taking advantage of the preferred

status of Tax-Exempt Life Insurance, he can maximize the value of his

assets and maximize the value being transferred to the next

generation. Living Benefits insurance is also vital to estate preservation,

by ensuring funds are available which require them at a time of illness.

Tax Minimization-

Tax-exempt insurance can eliminate the annual taxes, which are payable

on investment growth, as well as those payable after death. Individuals

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tired of being punished for strong earnings may appreciate this Tax-

Protector opportunity. The long-term value of these products is that their

earnings can often greatly eclipse what would otherwise be earned

through regular investing.

Estate Maximization and Protection-

If part of an individual portfolio is held in GICs, Canada Savings Bonds

or a bank account, he has probably never given a second thought to

market fluctuations. Sticking to a conservative investment strategy can

lead to peace of mind in the short term, but it may put him at risk in the

long run. Essentially, he will risk outliving his retirement savings.

Generally speaking, one way to ensure that he has enough money to meet

his retirement needs is to diversify his portfolio. He can get the security

of a GIC and the performance potential of the stock market without

needlessly risking his hard-earned savings with Segregated Funds.

Income Enhancement-

Certain solutions using insurance products can provide a supplemental

stream of cash, thereby Enhancing Retirement Income. The net income

derived from this strategy may be significantly higher than what is

achievable with traditional fixed income vehicles, especially during times

of low interest rates.

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WEALTH CREATION IN CORPORATE-

Every day, an individual make crucial business decisions affecting the

financial health of his business organization. And every one knows how

important it is to have the best possible services and products to help

effectively to manage finances. Making the right financial decisions is a

big responsibility.

Some of the best opportunities for small corporations, including holding

companies, come from using tax-exempt life insurance. It is a tax-

efficient means of transferring wealth out of a corporation into the hands

of the next generation after the death of policy holder. An important part

of preparing our business for continued success is to prepare it for the

unexpected. And so for these purpose many business protection strategies

can be used:

Funding Buyout Agreements-

In the case of partnerships, the death or disability of one partner can have

a devastating effect on the survival of a business. Insurance can provide

an excellent method of funding buyout agreements so that the remaining

partner takes full control of the business and the surviving family is

properly compensated.

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Shared Ownership-

For companies who wish to retain top employees, the shared ownership

of a permanent insurance policy can be an attractive opportunity. It

protects the company against the death of the employee, and motivates

that person to remain with the firm through the enticement of an

attractive, low-cost retirement asset. This arrangement can create a win-

win situation for everyone.

Minimizing Corporate Taxes-

If corporate assets are invested in fixed income, then an insurance

strategy can not only reduce its taxable income but it will lower the value

of the business by the amount of the investment, thereby reducing the

inevitable capital gains tax liability.

Maximizing Corporate Assets-

By taking advantage of tax-deferred growth inside a Universal Life or

Whole Life policy, corporate assets can avoid accrual taxation and grow

to a much greater value than if they were invested in a regular account.

Not only that, but upon death, most, if not all, of the proceeds can be paid

out of the corporation tax-free. Ordinarily they would be paid out as

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taxable dividends, requiring approximately one third of the value to be

paid in taxes.

Executive Life Insurance Planning-

Executive life insurance enables you to provide managers and executives

with a supplementary benefit package. In this instance, both you and your

executive purchase a tax-exempt life insurance policy with your

executive named as the insured. Both of you will share the benefits. This

form of insurance provides protection for an executive's family, while

you benefit from an investment offering tax-deferred growth.

Business Succession Planning-

A business succession plan can help protect your business when an

owner-shareholder retires or passes away. Elements of a successful

business succession plan include buy-sell agreements, a Will and powers

of attorney.

A buy-sell provision is a shareholder agreement that allows for the

orderly transfer of shares in the event of disability, death or retirement of

a shareholder. Upon the death of a shareholder, the buy-sell agreement

generally instructs the corporation to purchase the shares of the deceased.

Insurance is a cost-effective way of providing the necessary funds to

carry out those instructions.

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Key Person Insurance-

Many companies, public or private, large or small, often rely on the skills

and contributions of a single person. Proficient with all levels of the

firm's operations, respected by staff and trusted by clients, such key

individuals play a crucial role in the company's success. The sudden

departure of a key person can create a void, difficult, if not near

impossible and costly, to fill. Taking out life insurance on the key person,

or people, in your organization can help mitigate these costs.

CONTRIBUTION IN INDIAN ECONOMY-

Insurance is of Rs. 400 billion businesses in India, and together with

banking services adds about 7% to Indias GDP.

Gross premium collection is about 2% of GDP and has been growing by

15-20% per annum. India also has the highest number of Life insurance

policies in force in the world, and total investible funds with LIC are

almost 8% of GDP.

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Research Methodology

Objective:

1) To study how does insurance helps in wealth creation.

2) To understand insurance as a saving and wealth creating

instrument

3) To examine the financial ethics of Insurance sector

4) To verify awareness of people about Insurance policy

Hypothesis:

1) Life Insurance is one of the Taxes saving device in India.

2) Life Insurance is an Investment option in India.

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Scope of the Project:

The project is related Insurance, Wherein investors can invest

their money to get the good returns. An investment has to be

planned according to their risk bearing capacity and as well as

other factors like investment objectives, returns expected,

taxation, age factor, etc.

Project consists of case studies in the form of individual

profile. Wherein the various aspects of the individuals current

status are taken into consideration and an effort is done to

provide him with the best investment solution for his current

state of finances.

Limitations:

1) Limited time

2) Lack of accurate data

Sources of data-

Sample size 50

Sampling type Exploratory

Method used Questionnaire

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Primary source-

Direct personal interview and with the help of questionnaire

framed with considering objectives.

Secondary source-

Data is taken from some published articles, papers, books and

organization website.

DATA ANALYSIS

Deduction and Exemption

Income Tax

Section

Gross

Annual

Salary

How Much Tax can You Save? HDFC Standard Life Plans

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Sec. 80c Across all

income slabs

Up to Rs. 30,900/- saved on

investment of Rs. 1,00,000/-

All our Life insurance Plans

Sec. 80CCC Across allincome slabs

Up to Rs. 30,900/- saved oninvestment of Rs. 1,00,000/-

All our Life insurance Plans

Sec. 80D Across all

income slabs

Up to Rs. 9,270/- saved on

investment of Rs. 30,000/-(inclusive of Rs. 15,000/- towards

health insurance of parents) All our

Health insurancePlans

All theHealth insurance

riders available

with ourConventional Plans

Upto Rs. 10,815/- saved on

investment of Rs. 35,000/-(inclusive of Rs. 20,000/- towards

health insurance of parents who

senior citizens)

TotalSavingsPossible

Rs. 41,715/-

Rs.30,900/- under Sec. 80C and Sec.80CCC

Rs.9,270/- or Rs.10,815/- under Sec.80D

Above figures calculated for a male with gross annual income exceeding Rs.5,00,000/-

Sec.10 Under Sec.10(10D), the benefits received by you are completely tax-free

Applicable to premium paid for all Health insurance Plans, Critical illness Benefit, accelerated sumAssured and waiver of premium Benefit.

** These calculations are illustrative and based on our understanding of current tax legislations.

Source:

http://www.hdfclife.com/KnowledgeCentre/TaxCenter.aspx

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Bibliography

Books:-

C.R. Kothari Research Methodology & Techniques

Insurance Principles and Practice

Websites:

Hdfclife.com

irda.

Annexure

SURVEY QUESTIONNAIRE INSURANCE AWARENESS

Name of person:

Age: Sex: Male /Female

Address:

Status: Married/Unmarried:

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Education:

Occupation:

1) What is your average monthly income?

Less than 5000 5000-15000 15000 30000

30000 50000 50000 & above.

2) Do you save regularly?

Yes No

3) If Yes, which of the following pattern of savings do you use?

Recurring Deposit Fixed Deposit PPF

Postal Savings Insurance

4) Do you have any Insurance on your life?

Yes No

5) What are viewpoints on life insurance?

Protection Tool Tax Savings Instrument

Saving Option Others (please specify)

6) What plan you have taken & reasons of buying them?

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7) Do you know that life insurance can protect your family against the

burden of repayment of any outstanding loans?

Yes No

8) Do you know that life insurance can help you to create wealth for

yourself & your Family?

Yes No

9) Do you know that the investment insurance can contribute in

countrys economic development, which will indirectly help in

your economic development?

Yes No

10) If you dont have any policy would you like to invest in

insurance?

Yes No

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Documents

Project Report-Sandesh Khillari