Thesis Venkatesan - 27.3.2009

7/29/2019 Thesis Venkatesan - 27.3.2009

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CHAPTER - 1

GENERAL INTRODUCTION

In todays hectic world, there is uncertainty in every move that we

make. Life is not as healthy as it should be. In the rat race to earn money and

more money in order to live better quality of life, we all have somehow

forgotten to live the present. Hence by this entire bargain, our future

remarkably seems all the more confusing and uncertain. At this juncture, the

importance of this phrase seems more obvious:

Insurance is necessity-Observe it and absorb it

Insurance may be described as a social service to reduce or eliminate

risk of loss to life and property. Under the plan of insurance, a large number of

people associate themselves by sharing risk attached to individuals. The risks,

which can be insured against, include fire, the perils of sea, death and accident

and burglary. Any risk involved. Thus college bearing of risk is insurance.

The insurance sector in India has come long way from being an open

competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree

turn witnessed over a period of almost two centuries.

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Insurance business may be divided into 4 classed. They are:

Life insurance, fire insurance, marine insurance and miscellaneous

insurance.

Life insurers transact life insurance business while general insurers

transact rest. In India, insurance is a federal subject. The legislation that

deals with insurance in India is the insurance act, 1938 and insurance

Regulatory & development Authority Act, 1999.

A lead is defined as any potential customer who as in the age group of

18-62, who indicated the amount to be invested or the sun be insured who is

ready to give an appointment.

So the main job of an advisor is to produce more lead. The successful

advisor have some certain attributes and an profile after discussing with sales

manager and with unit members and with the successful advisor is listed down

the profile and attributes.

ATTRIBUTES TO SUCCESS:

1) Mental alertness

2) Good energy level

3) Goal & achievement motivation

4) Courage & determination and self confidence

5) Nature or realistic market

6) Competitive courage

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INDUSTRY PROFILE

Equity cap for foreign partners in an insurance company. There is a

proposal to increase this limit to 49 percent. The opening up of the insurance

sector has led to rapid growth of the sector. Presently, there are 16 life

insurance companies and 15 non-life insurance companies in the market. The

potential for growth of insurance industry in India is immense as nearly 80 per

cent of Indian population is without life insurance cover while health insurance

and non-life insurance continues to be well below international standards.

Insurance sector in India is one of the booming sectors of the economy

and is growing at the rate of 15-20 percent annum. Together with banking

services, it contributes to about 7 percent to the country's GDP. Insurance

is a federal subject in India and Insurance industry in India is governed by

Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General

Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and

Development Authority (IRDA) Act, 1999 and other related Acts.

The origin of life insurance in India can be traced back to 1818 with the

establishment of the Oriental Life Insurance Company in Calcutta. It was

conceived as a means to provide for English Widows. In those days a higher

premium was charged for Indian lives than the non-Indian lives as Indian lives

were considered riskier for coverage. The Bombay Mutual Life Insurance

Society that started its business in 1870 was the first company to charge same

premium for both Indian and non-Indian lives. In 1912, insurance regulation

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formally began with the passing of Life Insurance Companies Act and the

Provident Fund Act.

By 1938, there were 176 insurance companies in India. But a number of

frauds during 1920s and 1930s tainted the image of insurance industry in India.

In 1938, the first comprehensive legislation regarding insurance was

introduced with the passing of Insurance Act of 1938 that provided strict State

Control over insurance business.

Insurance sector in India grew at a faster pace after independence. In

1956, Government of India brought together 245 Indian and foreign insurers

and provident societies under one nationalized monopoly corporation and

formed Life Insurance Corporation (LIC) by an Act of Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs.5 crore.

The (non-life) insurance business/general insurance remained with the

private sector till 1972. There were 107 private companies involved in the

business of general operations and their operations were restricted to organized

trade and industry in large cities. The General Insurance Business

(Nationalization) Act, 1972 nationalization the general insurance business in

India with effect from January 1, 1973. The 107 private insurance companies

were amalgamated and grouped into four companies: National Insurance

Company New India Assurance Company, Oriental Insurance and United India

Insurance Company. These were subsidiaries of the General Insurance

Company (GIC).

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In 1993, the first step towards insurance sector reforms was initiated

with the formation of Malhotra Committee, headed by former Finance

Secretary and RBI Governor R.N. Malhotra. The committee was formed to

evaluate the Indian insurance industry and recommend its future direction with

the objective of complementing the reforms initiated in the financial sector.

Key Recommendations of Malhotra Committee

Structure

o Government stake in the insurance Companies to be brought down to

50%

o Government should take over the holdings of GIC and its subsidiaries so

That these subsidiaries can act independent corporations.

o All the insurance companies should be given greater freedom to operate.

Competition

o Private Companies with a minimum paid up capital of Rs.1 billion

should be allowed to enter the industry.

o No Company should deal in both Life and General Insurance through a

single Entity.

o Foreign companies may be allowed to enter the industry in collaboration

with the domestic companies.

o Postal Life Insurance should be allowed to operate in the rural market

o Only one State Level Life Insurance Company should be allowed to

operate in each state.

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Regulatory Body

o The Insurance Act should be changed.

o

An Insurance Regulatory body should be set up.

o Controller of Insurance should be made independent.

Investments

o Mandatory Investments of LIC Life Fund in government securities to

be reduced from 75% to 50%.

o GIC and its subsidiaries are not to hold more than 5% in any

company

Customer Service

o LIC should pay interest on delays in payments beyond 30 days

o Insurance companies must be encouraged to set up unit linked

pension plans

o Computerization of operations and updating of technology to be

carried out in the insurance industry.

Malhotra Committee also proposed setting up an independent regulatory

body- The Insurance Regulatory and Development Authority (IRDA) to

provide greater autonomy to insurance companies in order to improve their

performance and enable them to act as independent companies with economic

motives.

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Insurance sector in India was liberalized in March 2000 with the passage

of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all

entry restrictions for private players and allowing foreign players to enter the

market with some limits on direct foreign ownership. There is a 26 percent

equity cap for foreign partners in an insurance company. There is a proposal to

increase this limit to 49 percent. The opening up of the insurance sector has led

to rapid growth of the sector. Presently, there are 16 life insurance companies

and 15 non-life insurance companies in the market. The potential for growth of

insurance industry in India is immense as nearly 80 percent of Indian

population is without life insurance cover while health insurance and non-life

insurance continues to be well below international standards.

Insurance industry has always been a growth-oriented industry globally.

On the Indian scene too, the insurance industry has always recorded noticeable

growth vis-a-vis other Indian industries.

The Indian insurance industry saw a new sun when the Insurance

Regulatory & Development Authority (IRDA) invited the applications as

insurers in August 2000. With the liberalization and opening up of the sector

to private players, the industry has presented promising prospects for the

coming future. The transition has also resulted into introduction of ample

opportunities for the professionals including Chartered Accountants.

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The Indian Insurance industry is featured by the attributes:

o Low market Penetration:

o

Ever-growing middle class component in population.

o Growth of consumer movement with an increasing demand for better

insurance products;

o Inadequate application of information technology for business.

o Adequate fillip from the Government in the form of tax incentives to the

insured, etc.,

The industry formations need to keep vigil on these characteristics of the

Indian market and formulate their strategies to entail maximum contribution

to the output of the sector.

The Indian life and non-life insurance business accounted for merely 0.42

percent of the worlds life and non-life business in 1997.

The figures of the basic parameters of the industry's performance viz.,

Insurance Density and Insurance Penetration also are evident of the hitherto

existing low yield Indian market conditions.

The term "Insurance Penetration" broadly measures the contribution of

insurance industry in relation to a nation's entire economic productivity. The

figure of premium vis-a-vis the GDP of 1999 stood at 0.54 percent for non-life

insurance business and 1.39 percent for the life insurance business. The term

"reflects the Insurance purchasing power. The premium per capita in India

mounted to US $ 2.40 for non-life insurance and US $ 6.10 for life insurance in

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1999 but with the deregulation of the sector, a sea-change in the scene is most

likely. The Life Insurance Corporation (LIC) was established on 01.09.1956

and had been the sole corporation to write the life insurance business in India.

Insurance plays several important roles in developing the national economy

like

It enables entrepreneurs to take financial risks in starting enterprises

that create wealth and jobs for its people.

Life insurance is the most dramatic example of a social security scheme

of the choice of the insured in the beneficial interest of his future and his

family.

The risk management techniques of insurers, loss occurrence data and

expertise in mitigation of losses provide a database for prevention of

future accidents and thus avoid national waste.

Invested Funds

The Life Insurance industry in India has invested funds to the tune of

Rs.4,00,000 Cr.54% of these funds are invested in Government Securities and

34% are invested in marketable securities. (The investment guidelines of

IRDA provide a permissible minimum of 50% in Government Securities and a

maximum of 35% in market securities). The annual growth of Rs.90000 is

remarkable.

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Emerging Insurance Markets

The developing markets are fast reaching a saturation point in insurance

density and market penetration. The parameters to measure the above factors

are

1. Per Capita spending on insurance

2. The share of insurance premium as a percentage of their national

GDP.

The insurance density, the per capita spending on insurance is, in India

is 16.4 US$, whereas in countries like China it is US$ 36.3, and North America

it is US$ 3000

The market penetration that is in share of premiums to GDP in India is

2.9% and for China it is 3.3%. The world average is 8.1% and Asian average is

7.5%.

Market penetration in life insurance sector is 2.46% when compared to

2.26% in 2004. It is evident that the life insurance sector has seen very

dramatic premium changes post liberalization.

In life and non-life sectors, the private players have been able to garner

more than 20% of market share in a span of 4 years, where the govt.

Expectation was only 5 to 8%.

The over all growth in the life insurance sector has been very impressive

at over 35% for new business. Private players will move faster and deeper and

continue to improve their market share, for the next 3 to 4 years at the rate of 4

to 5%.

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India as seen from the above analysis is lagging behind other emerging

markets, when judged from the point view of the level of insurance awareness

and low spending on insurance protection.

But the size of the population and the repaid economic growth, however

now makes India a market of exciting interest and opportunity to foreign and

domestic investors.

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COMPANY PROFILE

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 the 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.

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

HDFC Standard Life Insurance Company Limited.

The 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 or registration.

HDFC are the main share holders in HDFC Standard Life, with 81.4%

while Standard Life owns 18.6%. Given Standard Life's 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 and trust. 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. The company's fast moving

plans are childrens plan and unit linked plans. Children's plan was launched

in Feb.'03 and unit linked plans were launched in Nov.04.

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The four functional areas identified in the company are:-

Marketing function

Human Resource function

Finance function

Operations functions

Marketing Wing:

The marketing team of HDFCSL is divided for two major purposes,

Promotion & Advertising division and Sales Division.

Promotion & Advertising Division:

The division deals with all activities like designing of advertisements for

print and television media, designing of Sales brochures, Promotional

Campaign design etc., This division is being operated from the corporate

office of HDFCSL.

Sales Division:

This division exclusively deals with the sale of policies. The sales force

uses the promotional activities and material to generate sales.

There are two sales channels

1) Retail Sales

2) Corporate Sales

Retails Sales:

It has total strength of 10000 employees working in 104 branches of the

company. These retail sales agents are called as "Financial Consultants (FC)".

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Nearly 20000 FCs are now working for generating business all over India. In

Nellore Branch alone there are 195 FCs.

Corporate Sales:

It has total strength of 4000 employees working in four banks in various

parts of India. The total business generated by corporate agents in more, even

though the sales force is less when compared to Retail Sales Forces.

The four banks working for HDFCLSL are HDFC Bank, Union Bank of

India, Indian Bank of India of and Sarawathi Bank. These banks are known as

Corporate Agents.

Human resource wing:

Recruitment

The company prefers for Internal Recruitment as far as possible. In case

of external recruitment, they adopt referrals as first option and then adopt

Personal Interview for Recruitment of top and middle level management.

Training

Training is the integral part of any business strategy. Almost all the

employees have undergone training to enhance their technical skills.

And the soft behavioral skills to be able to deliver the service standards

that the company has set for itself.

Besides the mandatory training for the financial consultants for being

licensed the company has developed training modules like DISHA covering

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various aspects including selling skills, objection handling skills and so on and

product training sessions imparting product knowledge.

Financial wing:

This function deals with the accounting and portfolio management. But

the most important function of this wing is investment management and Cost

reduction.

Operations Wing:

This wing deals with the processing of applications and forwarding all

types of communications. A part from these functions, an additional function is

there, it is

Underwriters and actuarians wing:

UNDERWRITERS this wing function deals with the decision making

process, whether to issue the policy or not; based on various criteria.

Actuarians:

This wing function is where the mathematicians and experts decide

various figures like annual premiums and discretionary benefits.

Social Sector Obligations

Under IRDA regulations, an insurer is required to meet the prescribed

obligations pertaining to meet the rural sectors. The company has covered

10490 lives in the social sector and written polices aggregating to 12.3% in the

rural sector.

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The company has intensified its efforts to penetrate the rural and social

markets in the country through a multi-pronged approach. Besides appointing

financial consultants to service specific.

Geographical areas in the country, the company continues to work with

non governmental organizations in providing life insurance protection too

economically to weaker sections in the society. The rural product, "HDFC

Bima Bachat Yojana" also contributed to this effort.

Technology:

IT has been backbone of the companys growth and will continue to be

so in years to come. Real time data access to all the offices in the country is

one of the tremendous achievements for the company and also one of the

factors providing efficient services to the employees as well as customers.

Policies and Procedures:

Open Door Policy

Participative Management

Middle of the Road Leadership

Periodic Performance Appraisal

Annual Wage - Package Reviews

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THEORETICAL BACKGROUND

The idea that customers prefer one product or one service over another

is not new. The ability to identify and measure the elements of such preference

decisions with any accuracy and reliability has only recently become available.

Research into this area of consumer behavior has brought understanding

to some of the major issues with standard customer satisfaction research. Most

importantly, we have come to realize that high customer satisfaction does not

assure continued customer preference. Satisfaction research over the past

fifteen years demonstrates that high satisfaction scores, while a measure of

corporate performance on a set of important criteria, do not adequately explain

the composition of preference formation and therefore often serve as

insufficient predictors of sustained preference or what is normally referred to as

customer loyalty.

Loyalty as a concept has also shown itself to be difficult to define. Like

beauty, loyalty is truly in the eye of the beholder. We understand there are

different types and degrees of loyalty and some of these are not appropriate in

describing the relationship between a consumer and a company. However,

preference (defined as The power or ability to choose one thing over another

with the anticipation that the choice will result in greater satisfaction, greater

capability or improved performance) has demonstrated the ability to be

effectively measured and to provide meaningful insight into the choices

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consumers make when selecting one provider over another and when

determining to continue a relationship over time.

Have you ever wondered why your company often loses relatively

satisfied customers? Why is it that customers will often indicate they are

satisfied with how they have been treated but then leave for a competitor at the

first opportunity? Why is customer defection often unrelated to price? The

answers to these and other related questions are found in coming to an

understanding of customer preference.

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CHAPTER 2

TITLE OF THE STUDY

A STUDY ON CUSTOMER PREFERENCE TOWARDS HDFC

STANDARD LIFE INSURANCE COMPANY WITH SPECIAL

REFERENCE TO SALEM DISTRICT

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STATEMENT OF THE PROBLEM

The study is used to find out the awareness about insurance among the

rural area people. The rural area is not covered by the executives so the rural

people are not having that much awareness on their investment and savings.

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OBJECTIVES OF THE STUDY

To find out the awareness of the Customers regarding the insurance

sectors.

To find out the satisfaction of the Customers toward the HDFC

Standard Life Insurance

To find out the preference of Customers about insurance.

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SCOPE OF THE STUDY

The present study is to identify the factors which influences in

selection of insurances.

The investigator through this study is actually attempting to help the

company to identify the preference of customers.

The study can also useful for future reference

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LIMITATION OF THE STUDY

The study was conducted to only 200 individuals

The geographical area restricted to Salem district

Respondent are afraid to express their annual income level

Bias of the respondents.

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CHAPTER - 3

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the arrangement to condition for collections and an

analysis of data is manners that aims are combine relevance to the research

purpose with economy into procedure

DESCRIPTIVE RESEARCH

The research design used in this study is descriptive research.

Descriptive research included survey and fact finding enquiries of different

kinds. The major purpose of the research is description of the state of affairs as

its exists at present. It is also known as EXPOST-FACTO RESEARCH. In

this type of research, the researcher can only report what has happened or what

is happening and he has no control over variables.

METHODOLOGY

Methodology is a fancy word for strategy, which is a fancy word for

how things are done. Marketing research is a Methodology fancy phrase for

how business information is collected. Here is the main methods observation

on the spot examination of the actually happens in a particular business

operation context.

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The present study was conducted at HDFC SLIC at Salem. This depends

mainly on the secondary data. The main source of secondary data are the

annual report, directors report, prospect report, minutes of the company

information discussion were made with industries staff. During course of

discussion the staffs expressed their opinion as regards the working of the

industry they also suitable suggestion to improve the function of the HDFC

SLIC

SAMPLING DESIGN

SAMPLING METHOD : The sampling design for the study unit is

Snowball sampling.

SAMPLE UNIT : The sample unit of study is rural

Customers.

SAMPLE SIZE : The sample size of study is 200 rural

Customers in Salem district.

SAMPLING PLAN : The researcher conducted survey only in

Salem district.

STATISTICAL TOOL USED: Simple percentage

Chi Square

Correlation

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METHOD OF DATA COLLECTION

The necessary data for the research was collected from the primary and

secondary source.

PRIMARY DATA

The questionnaire schedule was prepared for collecting the data from the

teachers. The analysis of primary data obtained from respondents, compilation

and tabulation were done.

SECONDARY DATA:

The SECONDARY DATA was collected from the company profile

and websites.

TOOLS FOR ANALYSIS

Tools used for data collection

The tool used for collecting the data is through the questionnaire. The

main reason for selecting the questionnaire method for the study is:

Respondents have adequate time to give well thought out answers.

The time of the study was also a limiting factor.

QUESTIONNAIRE

The questionnaire was developed through a series of pre- tests involving

employees, Team leaders, and HR Professionals.

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The major section of the questionnaire comprises of job and behavioural

competencies. The other section consists of organizational overview.

STATISTICAL TOOL

Percentage Analysis

Anova

Chi-square test

PERCENTAGE ANALYSIS

Percentage analysis is the total number of respondents divided by the

total sample size and multiplied by 100.

CORRELATION

Correlation is the statistical analysis which measures and analyses the

degree or extent to which two variables fluctuate with reference to each other.

The correlation measures the closeness of the relationship between the

variables.

CHI-SQUARE

Chi-square is a statistical measure used in the context of sampling

analysis for comparing a variance to a theoretical variance. As a non parametric

test it can be used to determine if categorical data shows dependence or the two

classifications are inter depended. It can also be used to make comparisons

between theoretical population and actual data when categories are used

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CHAPTER 4

ANALYSIS AND INTERPRETATION

TABLE 1

GENDER OF THE RESPONDENTS

Gender No. of respondents Percentage (%)

Male 178 89.0

Female 22 11.0

Total 200 100.0Source : Primary data

INFERENCE:

From the above table it could be inferred that 89% of Customers are

male and 11% of Customers are female.

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CHART 1

GENDER OF THE RESPONDENTS

89

11

0

10

20

30

40

50

60

70

80

90

100

Male Female

Gender

Percentage

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TABLE 2

AGE OF THE RESPONDENTS

Age No.of respondents Percentage (%)

18-20 20 10.0

21-30 60 30.0

31-40 80 40.0

41-50 30 15.0

51-60 10 5.0

Total 200 100.0

Source : Primary data

INFERENCE

From the above table it could be inferred that 10% of rural Customers

are below 18-20 years of age, 30% of rural Customers are in between 21-30

years of age, 40% of rural Customers are in between 31-40 years of age,15% of

rural Customers are in between41-50 years of age,5% of rural customers are in

between 51-60 years of age,

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CHART 2

AGE OF THE RESPONDENTS

10

30

40

15

5

0

5

10

15

20

25

30

35

40

45

18-20 21-30 31-40 41-50 51-60

Age

Pe

rcentage

TABLE 3

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

Educational qualification No.of respondents Percentage (%)

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School level 70 35.0

College level 30 15.0

Pharmacy 45 22.5

No formal education 55 27.5


INFERENCE


are farmers, 15% of rural Customers are doing business, 22.5% of rural

Customers are employees, and 27.5% of rural Customers are students.

CHART 3

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

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35

15

22.5

27.5

0

5

10

15

20

25

30

35

40

School level College level Pharmacy No formal education

Educational qualification

Percentage

TABLE 4

INCREASE SIZE OF RESPONDENTS

Occupation Frequency Percent

Farmer 60 30.0

Business 46 23.0

Employee 34 17.0

Student 60 30.0Total 200 100.0

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INFERENCE


up to school level, 23% of rural Customers up to college level, 17% of rural

Customers up to pharmacy and 30% of rural Customers up to No formal

Education.

CHART 4

INCREASE SIZE OF RESPONDENTS

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30

23

17

30

0

5

10

15

20

25

30

35

Farmer Business Employee Student

Occupation

Percentage

TABLE 5

MARITALSTATUS OF RESPONDENTS

Martial status No.of respondents Percentage (%)

Married 152 76.0

Un married 48 24.0

Total 200 100.0


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INFERENCE:


are married and 24% of Rural Customers are unmarried.

CHART 5

MARITAL STATUS OF RESPONDENTS

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24

76

0

10

20

30

40

50

60

70

80

Married Un married

Marital status

Percentage

TABLE 6

SIZE OF THE FAMILY OF RESPONDENTS

Size of the family No.of respondents Percentage (%)

Upto 2 members 8 4.0

3-4 members 108 54.0

5-6 members 80 40.0

Above 6 members 4 2.0

Total 200 100.0


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INFERENCE:

From the above table it could be inferred that 4% of rural Customers are

below 2 , 54% of rural Customers have family size in between 3-4, 40% of

rural Customers have family size in between 6-5 and 2% of rural Customers

have family size in between 6 & above.

CHART 6

SIZE OF THE FAMILY OF RESPONDENTS

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54

40

24

0

10

20

30

40

50

60

Upto 2 members 3-4 members 5-6 members Above 6 members

Size of the family

Percentage

TABLE 7

ANNUAL INCOME OF THE FAMILY

Annual Income No.of respondents Percentage (%)

Less than 50000 38 19.0

50000-100000 108 54.0

Above 100000 54 27.0

Total 200 100.0


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INFERENCE


have annual income below 50000, 59% of rural Customers have annual income

in between 50000-100000, and 22% of rural Customers have annual income in

between 100000 & above.

CHART 7

ANNUAL INCOME OF THE FAMILY

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54

27

19

0

10

20

30

40

50

60

Less than 50000 50000-100000 Above 100000

Annual income

Percentage

TABLE 8

ADDITIONAL INCOME

Additional income No.of respondents Percentage (%)

Yes 74 37.0

No 126 63.0

Total 200 100.0


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INFERENCE:


have additional income and 63% of rural Customers dont have additional

income.

CHART 8

ADDITIONAL INCOME

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63

37

0

10

20

30

40

50

60

70

Yes No

Additional income

Percentage

TABLE 9

DO YOU HAVE SAVINGS

SavingsNo.of respondents Percentage (%)

Yes 135 67.5

No 65 32.5

Total 200 100.0


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INFERENCE:


have savings and 63% of rural Customers dont savings.

CHART 9

DOYOUHAVE SAVINGS

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32.5

67.5

0

10

20

30

40

50

60

70

80

Yes No

Savings

Percentage

TABLE 10

PREFER TO SAVE

Preference to save No.of respondents Percentage (%)

Bank 141 70.5

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Stock market 5 2.5

Mutual Fund 11 5.5

Postal Govt. bonds 43 21.5

Total 200 100.0


INFERENCE:

From the above table it could be inferred that 70.27% of rural

Customers prefer to bank, 2.70% of rural Customers prefer to stock market,

5.41% of rural Customers prefer to; mutual funds and 21.62% of rural

Customers prefer to postal govt.bonds.

CHART 10

PREFER TO SAVE

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32.5

67.5

0

10

20

30

40

50

60

70

80

Yes No

Savings

Percentage

TABLE 11

AWARE OF LIFE INSURANCE

AwarenessNo.of respondents Percentage (%)

Yes 66 33.0

No 134 67.0

Total 200 100.0


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INFERENCE:

From the above table it could be inferred that 33% of rural customer

knowing about life insurance, 67% of rural customer didnt know about life

insurance.

CHART 11

AWARE OF LIFE INSURANCE

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67

33

0

10

20

30

40

50

60

70

80

Yes No

Awareness

Percentage

TABLE 12

AWARENESS OF PRIVATE LIFE INSURANCE COMPANIES

Private life insurance companies No.of respondents Percentage (%)

HDFC SLIC 48 24.0

ICICI 60 30.0

Bajaj Allianz 32 16.0

Reliance 36 18.0Others 24 12.0

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Total 200 100.0


INFERENCE:


know about HDFC SLIC.

CHART 12

AWARENESS OF PRIVATE LIFE INSURANCE COMPANIES

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12

1816

30

24

0

5

10

15

20

25

30

35

HDFC SLIC ICICI Bajaj Allianz Reliance Others

Private life insurance companies

Percentage

TABLE 13

THE SPECIAL FEATURES OF LIFE INSURANCE

Special features of life insurance No.of respondents Percentage (%)

Preventive loss 26 13.0

Investment 10 5.0

Sharing of Risk 98 49.0

Tax benefit 54 27.0

Others 12 6.0

Total 200 100.0


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INFERENCE:

From the above table 49% of rural customer says insurance is sharing of

risk

CHART 13

THE SPECIAL FEATURES OF LIFE INSURANCE

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6

27

49

5

13

0

10

20

30

40

50

60

Preventive loss Investment Sharing of Risk Tax benefit Others

Special features of life insurance

Percentage

TABLE 14

AWARE OF HDFC AND SLIC

Aware of HDFC and SLICNo.of respondents Percentage (%)

Yes 74 37.0

No 126 63.0

Total 200 100.0


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INFERENCE:

From the above table it could be inferred that 37% of the customers

aware of HDFC SLIC and 63% of the customers not aware of HDFC SLIC.

CHART 14

AWAREOF HDFC AND SLIC

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63

37

0

10

20

30

40

50

60

70

Yes No

Aware of HDFC and SLIC

Percentage

TABLE 15

SOURCES OF AWARENESS

Source of Awareness No.of respondents Percentage (%)

Insurance agent 54 27.0

Advertisement 84 42.0

Friends &Relatives 32 16.0

Others 30 15.0


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INFERENCE:


are know though insurance agents, 42% of rural Customers are know though

advertisement, 16% of rural Customers are know though friends/Relatives,

15% of rural Customers are know though others.

CHART 15

SOURCES OF AWARENESS

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1516

42

27

0

5

10

15

20

25

30

35

40

45

Insurance agent Advertisement Friends &Relatives Others

Sources of Awareness

Percentage

TABLE 16

PURCHASE OF INSURANCE PRODUCT FROM HDFC & SLIC

OpinionNo.of respondents Percentage (%)

Yes 30 15.0

No 170 85.0

Total 200 100.0


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INFERENCE:


having HDFC SLIC products and 85% of rural customer dont have HDFC

SLIC products.

CHART 16

PURCHASE OF INSURANCE PRODUCT FROM HDFC & SLIC

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85

15

0

10

20

30

40

50

60

70

80

90

Yes No

Opinion

Percentage

TABLE 17

TYPE OF PLAN PREFER

Type of plan prefer No.of respondents Percentage (%)

production plan 28 14.0

Investment plan 52 26.0

Pension plan 36 18.0

Savings plan 84 42.0

Total 200 100.0


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INFERENCE:


are preferred protection plans, 26% of rural Customers are preferred investment

plans, 18% of rural Customers are preferred pension plans, and 42% of rural

Customers are preferred savings plans only.

CHART 17

TYPE OF PLAN PREFER

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42

18

26

14

0

5

10

15

20

25

30

35

40

45

production plan Investment plan Pension plan Savings plan

Type of plan prefer

Percentage

TABLE 18

DO YOU HAVE ULIP PRODUCTS

OpinionNo.of respondents Percentage (%)

Yes 50 25.0

No 150 75.0

Total 200 100.0


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INFERENCE:

From the above table it could be inferred that 24% of rural customers

are having ULIP products and 75% of rural customers are not having ULIP

products.

CHART 18

DO YOU HAVE ULIP PRODUCTS

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75

25

0

10

20

30

40

50

60

70

80

Yes No

Opinion

Percentage

TABLE 19

PREFERENCE OF ULIP PRODUCTS

Preference of ULIP products No.of respondents Percentage (%)

Endowment 32 16.0

Young star 16 8.0

Children plans 112 56.0

Money back 20 10.0Others 20 10.0

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Total 200 100.0


INFERENCE:


are preferred Endowment plans, 8% of rural Customers are preferred in Young

star plans, 56% of rural Customers are preferred childrens plans,10% of rural

Customers are preferred Money back plans,and10% of rural Customers are

preferred other plans.

CHART 19

PREFERENCE OF ULIP PRODUCTS

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1010

56

8

16

0

10

20

30

40

50

60

Endowment Young star Children plans Money back Others

Preference of ULIP products

Percentage

TABLE 20

SATISFACTION LEVEL TOWARDS SERVICES PROVIDED

BY HDFC AND SLIC

Opinion No.of respondents Percentage (%)

Highly Satisfied 48 24.0

Satisfied 124 62.0

Dissatisfied 28 14.0Total 200 100.0

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INFERENCE:

From the above table it could be inferred that 24% of rural customers

are highly satisfaction level, 62% of rural customers are satisfied, but 14% of

rural customers are dissatisfied.

CHART 20

SATISFACTION LEVEL TOWARDS SERVICES PROVIDED

BY HDFC AND SLIC

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14

62

24

0

10

20

30

40

50

60

70

Highly Satisfied Satisfied Dissatisfied

Opinion

Percentage

TABLE 21

PLANS AVAILABLE IN HDFC

Satisfaction No.of respondents Percentage (%)

Yes 86 43

No 114 57

Total 200 100.0


INFERENCE:

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43% of the customers like to suggest others to invest in HDFC SLIC.

57% of the customers are not interested to suggest others to invest in HFDC

SLIC.

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CHART 21

PLANS AVAILABLE IN HDFC

57

43

0

10

20

30

40

50

60

Yes No

Opinion

Percentage

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TABLE 22

LEVELS OF CUSTOMER SATISFACTION

Satisfaction No.of respondents Percentage (%)

Highly satisfied 54 27

Satisfied 88 44

Neither satisfied 28 14

Dissatisfied 10 5

Total 200 100.0


INFERENCE:

27% of the respondents are satisfied with HDFC SLIC. 44% of the

respondents are highly satisfied. 108% of the respondents are neither satisfied

nor dissatisfied. 5% of the respondents are dissatisfied.

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CHART 22

LEVELS OF CUSTOMER SATISFACTION

5

14

44

27

0

5

10

15

20

25

30

35

40

45

50

Highly satisfied Satisfied Neither satisfied Dissatisfied

Opinion

Perc

entage

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TABLE 23

AWARENESS ABOUT PROMOTIONAL TOOLS

Awareness No.of respondents Percentage (%)

Aware 60 30

Unaware 140 70

Total 200 100.0


INFERENCE:

70% of the respondents are aware of unit link insurance plan plus

offered by the insurance company. 30% of the respondents not aware of unit

link insurance plan plus offered by the insurance companies.

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CHART 23

AWARENESS ABOUT PROMOTIONAL TOOLS

70

30

0

10

20

30

40

50

60

70

80

Aware Unaware

Opinion

Perc

entage

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TABLE 24

RATING OF THE PROMOTIONAL TOOLS

Opinion No.of respondents Percentage (%)

Excellent 76 38

Good 36 18

Fair 84 42

Poor 4 2

Total 200 100


INFERENCE:

38% of the customers have stated that the promotional activities are

good. 18% of the customers have stated that the promotional activities are

excellent. 42% of the customers have stated that the promotional activities are

fair. 02% of customers have stated that the promotional activities are poor.

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CHART 24

RATING OF THE PROMOTIONAL TOOLS

2

42

18

38

0

5

10

15

20

25

30

35

40

45

Excellent Good Fair Poor

Opinion

Percentage

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HYPOTHESIS YESTING

CHI SQUARE TEST

Hypothesis:

Null hypothesis: Ho There is no relationship between age and variables

Alternative Hypothesis: There is relationship between age and variables

TABLE 25

AGE OF RESPONDENTS - VARIABLES

Value Df

Aware of life insurance 3.203E2 16

Private life insurance 4.290E2 16

Special life insurance 1.768E2 4

Aware of HDFC SLIC 2.866E2 12

Sources of awareness 1.346E2 4

Purchasing insurance products 3.667E2 12

Type of plan prefer 1.200E2 4

ULIP products 4.333E2 16

Satisfaction level 2.507E2 8

INFERENCE:

The null hypothesis is rejected so that alternative hypothesis is accepted.

So there is significant relationship between the age and variables.

Hypothesis:

Null hypothesis: Ho There is no relationship between savings and variables

Alternative Hypothesis: There is relationship between savings and variables

TABLE 26

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SAVINGS - VARIABLES

Value df

Aware of life insurance 47.430a 1

Private life insurance 1.808E2 4

Special life insurance 1.955E2 4

Aware of HDFC SLIC 56.555a 1

Sources of awareness 1.868E2 3

Purchasing insurance products 16.993a 1

Type of plan prefer 1.330E2 3

ULIP products 32.099a 1

Satisfaction level 81.665a 2

INFERENCE:


So there is significant relationship between the savings and variables.

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ANOVA

Sum of

Squares df

Mean

Square F

Which type of plan you

prefer

Between

Groups5.026 1 5.026 68.379

WithinGroups

14.554 198 .074

Total 19.580 199

Annual income of thefamily

BetweenGroups

54.278 1 54.278 294.906

WithinGroups

36.442 198 .184

Total 90.720 199

Are you aware of Lifeinsurance

BetweenGroups

10.487 1 10.487 61.552

WithinGroups

33.733 198 .170

Total 44.220 199

In ULIP productswhich plan you prefer

BetweenGroups

100.792 1 100.792 141.329

WithinGroups

141.208 198 .713

Total 242.000 199

What is yoursatisfaction leveltowards services

provided by HDFCSLIC

BetweenGroups

27.128 1 27.128 114.597

WithinGroups

46.872 198 .237

Total 74.000 199

INFERENCE:


So, there is significant relationship between the awareness and variables.

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CHAPTER 5

FINDINGS

33% of respondent have awareness about insurance

24% of respondent only know about HDFC SLIC.

49% of respondent have stated savings of risk as the special feature of

life insurance.

63% of respondent dont have additional income.

42% of respondent know about HDFC Standard Life Insurance through

Advertisement.

15% of respondents are having HDFC SLIC products.

Majority (43%) of respondents have stated that they are not aware of

plans available in HDFC.

Majority (44%) of respondents have stated that they are moderately

satisfied with the plans offered by HDFC.

Majority 70% of respondents are not aware of promotional strategies

adopted by HDFC.

Majority of the respondents have stated that the promotional tools used

is not upto the mark.

42% of respondents are having savings plans.

25% of respondents are having ULIP product.

56% of respondent are the customer of HDFC SLIC preferred childrens

plans only.

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24% of respondents are highly satisfied.

CHAPTER 6

SUGGESTIONS

As the customer felt that there is no adequate sales promotion so the

researchers suggest that more advertisement regarding HDFC SLIC to

the rural customers will help to reach them.

The executive are low in order to cover the entire customers around the

sales the company should focus on to the human resource

Due to the high premium the company could not able to cover the entire

rural area so the company should try to reduce the premium.

Awareness of the ULIP products is low so the company should increase

the awareness of the product to promote the sales.

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CHAPTER 7

CONCLUSION

This study is being alone for performance of HDFC SLIC products

among the rural Customers. Most of the rural Customers have not the aware

about the HDFC SLIC. So they have to advertise their product more among

rural Customers.

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REFERENCES

BOOKS

1. Bhattacharya., International marketing Management, Sultan Chand

& Sons, 2000

2. Philip kotler (2000 Millennium Edition), Marketing Management,

Printice Hall of India, New Delhi.

3. G C Beri (2nd Edition), Marketing Research, Tata McGraw Hill

Publishers Company Ltd.,

4. Kothari C.R., Research Methodology, Second Edition May 1990.

WEB SITES

1. www.chandraauto.com

2. [email protected]

3. www.marketing research.com

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ANNEXURE

QUESTIONNAIRE:

1) Gender? :

Male Female

2. Age?

Below 25 25-35

35-45 Above 45

3. Occupation:

Farmers Business

Employee Students

4. Educational Qualification?

School level College level

Pharmacy No formal education

5. Marital Status?

Married Unmarried

6. Size of your family?

Up to 2 members 3-4 members

5-6 members Above 6

7. Which income group (annual) do you belong to?

Less than Rs.50000 Rs.50000-Rs.100000

Rs.100000 & Above

8. Do you have additional income?

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Yes No

9. Do you have savings?

Yes No

If yes which one you can prefer?

Bank Stock Market

Mutual funds Postal Govt.Bonds

10. Are you aware of Life Insurance Brands?

Yes No

11. What are the private life insurance Brands you are aware of?

HDFC SLIC ICICI Bajaj Allianz

Reliance Others

12. What are the special features of life insurance that you know?

Preventive of loss Investment

Sharing of Risk Tax Benefit Others

13. Are you aware of HDFC Standard Life Insurance?

Yes No

14. If Yes sources of awareness?

Insurance agent Advertisement

Friends/Relatives Others

15. Are you purchase any insurance product from HDFC SLIC?

Yes No

16. Which type of plan you prefer?

Production plans Investment plans

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Pension plans Savings plans

17. Do you have ULIP products?

Yes No

18. In ULIP products which plan you prefer?

Endowment Young star

Children plans Money back others specify

19. What is your satisfaction level towards services provided by HDFC SLIC?

Highly Satisfied Satisfied

Dissatisfied

20. Are you satisfied with the plants available in HDFC?

Yes No

21. If you express your level of satisfaction


Highly Dissatisfied

22. Are your aware of promotional strategies adopted by HDFC?

Yes No

23. Express your level of satisfaction towards the promotional strategy adopted

by HDFC


Highly Dissatisfied

24. Any suggestions,

...

...

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Thank you for your kind cooperations.

Documents

Thesis Venkatesan - 27.3.2009