SUMMER TRAINING REPORT

ON
An analysis of Indian Insurance industry
with special reference to HDFC STANDARD
Life Insurance Company.

GURU NANAK DEV UNIVERSITY

AMRITSAR

SUBMITTED TO: SUBMITTED BY:

Mr. Abhishek Mahajan Jatin Bhargav
(S.D.M) MBA 3RD SEM.
HDFC SLIC 890817
 TABLE OF CONTENTS

I. Acknowledgement
II. Abstract
Chapter 1: Introduction
1.1 Objectives of the project
1.2 Limitations of the project
1.3 Scope of the study

Chapter 2: Introduction to insurance industry

2.1 Insurance industry in India
2.2 Evolution of Insurance in India
2.3 Insurance Regulatory Development Authority
2.4 Capital Requirements and Foreign Participation

Chapter 3: HDFC STANDARD Life Insurance Co. Ltd.

3.1 Management Team
3.2 Types of Plan
3.3 Michael Porter model

Chapter 4: Comparative study

4.1 Comparison of various company’s products
4.2 Market share of various companies
4.3 SWOT Analysis

Chapter 5: Research Methodology

Chapter6: Micro Analysis

 6.1 Finding, analysis and Interpretation

Chapter7: Macro analysis

7.1 Conclusion
7.2 Recommendation

➢ Bibliography
➢ Annexure

ACKNOWLEDGEMENT
There is always a sense of gratitude which one express to other for the helpful so needy
services they render during all phases of life. I would like to express my gratitude
towards all those who have been helpful to me in getting this mighty task of training to a
successful end.

First of all, I consider it a pleasant duty to express my heart felt appreciation, gratitude
and indebtedness to Mrs. Kaveri Sehgal(Branch Trainer) for his keen interest,
invaluable pain taking & excellent guidance, patience, endurance, encouragement &
thoughtful advice throughout the project work duration at HDFC SL INDIA.

I am also thankful to Prof. Shivali Dingra without whose keen interest this project
would not have been in existence.

I would also like to be thankful to Mr. Abhishek Mahajan (SDM) who has given me
the right way to prepare my project report.

I would take this opportunity to thank all my family members for their helps &
suggestions during the course of project work. I am also thankful to all my friends who
gave me constant & continuous inspiration to complete this project.
 (Jatin Bhargav)

ABSTRACT

M onopoly of LIC has been broken to make Indian Insurance to change its face
and pace to tap the market and to make the new challenges in it. Insurance in
MIndia is not about MIndia only; it is an open sector for the private players.
The name which you would see in Indian insurance market is something like: - HDFC
(Indian company) + Standard life (foreign player), BAJAJ (Indian company) + Allianz
(foreign player), TATA (Indian company) + Aig (foreign player) , and so many like
them. HDFC has its joint venture with standard life. It is a private sector company. The
company was registered on M23/10/2000.

Companies now are tapping a lot of ways to capture the market and hence adopting
different ways to hold the large portion of the market.
 My project was to understand the different marketing strategies adopted by the
companies to increase their market share and along with it meeting their own targets to
achieve the position of no.1 in respective field or segment of the market.

My summer training learning helped me a lot to complete my project in order to

learn a lot of things of the corporate. As a project trainee the first task given to me was to
understand the basic behavior of the consumer in order to manipulate the market
according to the target competition. For this I developed a questionnaire and I did my
survey in Chandigarh Sector 17.

From this database I was asked to do the telle calling to the prospect customers in
order to make strengthen the agency channel and I learnt how to develop this channel
and how to create the business opportunities besides grabbing them. This made me to
know issues of competitive market in a better manner and it also gave me a lot of ideas
to enhance my communication and convincing skills.

CHAPTER - 1
Insurance – An Introduction
Insurance may be described as a social device to ensure protection of economic value of
life and other assets. Under the plan of insurance, a large number of people associate
themselves by sharing risks attached to individuals. The risks, which can be insured
against, include fire, the perils of sea, death and accidents and burglary. Any risk
contingent upon these, may be insured against at a premium commensurate with the risk
involved. Thus collective bearing of risk is insurance.
Insurance is a contract whereby, in return 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 to describe the possibility of adverse results
flowing from any occurrence or the accidental happenings, which produce a monetary
loss.

Insurance is a pool in which a large number of people exposed to a similar risk make
contributions 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 basis of insurance. The losses of an individual are distributed over a group
of individuals.

Definitions:

General definition:
In the words of John Magee, “Insurance is a plan by themselves which large number of
people associate and transfer to the shoulders of all, risks that attach to individuals.”

Fundamental definition:
In the words of D.S. Hansell, “Insurance accumulated contributions of all parties
participating in the scheme.”

Contractual definition: In the words of justice Tindall, “ Insurance is a contract in

which a sum of money is paid to the assured as consideration of insurer’s incurring the
risk of paying a large sum upon a given contingency.”

Characteristics of Insurance
♦ Sharing of risks

♦ Cooperative device

♦ Evaluation of risk

♦ Payment on happening of a special event

♦ The amount of payment depends on the nature of losses incurred.

♦ The success of insurance business depends on the large number of people insured
against similar risk.

♦ Insurance is a plan, which spreads the risk and losses of few people among a large
number of people.

♦ The insurance is a plan in which the insured transfers his risk on the insurer.

♦ Insurance is a legal contract which is based upon certain principles of insurance

which includes, utmost good faith, insurable interest, contribution, indemnity,
subrogation, etc.

♦ The scope of insurance is much wider and extensive.

Functions of Insurance:
Primary functions:
1. Provide protection:- Insurance cannot check the happening of the risk, but can
provide for the losses of risk.

2. Collective bearing of risk: - Insurance is a device to share the financial losses of few
among many others.

3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk.

4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

certainty.

5. Tax benefit :- Insurance is a source which reduce tax.

Secondary functions:
1. Prevention of losses: - Insurance cautions businessman and individuals to adopt
suitable device to prevent unfortunate consequences of risk by observing safety
instructions.

2. Small capital to cover large risks: - Insurance relives the businessman from security
investment, by paying small amount of insurance against larger risks and uncertainty.

3. Contributes towards development of larger industries.

The evolution of Insurance in India can be summarized as:

Year Changes

1818 Oriental Insurance Company. The first Insurance company in India

1870 Bombay Mutual Life Assurance Company. First Indian Insurance company.

1912 The Indian Life Assurance Company enacted the first law to regulate the life

insurance business in India

1926 The Indian Assurance company act enacted to enable the government to collect

the statistical information about the insurance.

1938 The earlier legislation consolidated and amended the life insurance act with

the objective of protecting the interest of insurance in the public.

1956 245 Indian and foreign players and prudent societies are taken once by Central

govt. And nationalized

2000 FDIs are allowed to come and entered into the insurance business.

2002 There are total 16 insurance companies are available out of which two are

Government companies.

2009 There are total 22 companies are available in the market out of which 3 are wholly

Indian companies.
1.5 RELATED ACTS
The insurance sector went through a full circle of phases from being unregulated to

completely regulated and then currently being partly deregulated. It is governed by a

number of acts, with the first one being the Insurance Act, 1938.

1.5.1The Insurance Act, 1938

The Insurance Act, 1938 was the first legislation governing all forms of insurance to

provide strict state control over insurance business.

1.5.2 Life Insurance Corporation Act, 1956

In 19 January 1956, life insurance in India was completely nationalized, through a

Government ordinance; the Life Insurance Corporation Act, 1956 effective from

1.9.1956 was enacted in the same year to, inter-alia, form LIFE INSURANCE

CORPORATION after nationalization of the 245 companies (both Indian and foreign

origin) into one entity. The Life Insurance Corporation of India was created on 1st

September, 1956.
1.5.3 Insurance Regulatory and Development Authority (IRDA) Act,

1999

Till 1999, there were not any private insurance companies in Indian insurance sector.

The Govt. of India, then introduced the Insurance Regulatory and Development

Authority Act in 1999, thereby de-regulating the insurance sector and allowing private

companies into the insurance. Further, foreign investment was also allowed and capped

at 26% holding in the Indian insurance companies. In recent years many private players

entered in the Insurance sector of India. Companies with equal strength competing in the

Indian insurance market. With more and more private players in the sector this scenario

may change at a rapid pace.

INSURANCE IN INDIA:

It is a means of savings and investment apart from it its share in the GDP counts very
important. In India it is in a growing stage in compare of the other countries lets’ have a
look
on it:-

United Kingdom 8.9%

Japan 8.3%
Korea 7.3%
United States 4.1%
Malaysia 3.6%
India 3.0%
China 1.8%
Brazil 1.3%
If we talk in terms of India only then the result will be something like this:
Working of Life Insurance: - Risk has to be assessed in order to decide tithe
premium or to decide that subject is insurable or not.

Pure Risk vs. Speculative Risk:

Event representing there will be possibility of loss or no loss is called pure risk. These
risks are insurable in nature.

Speculative risk is the one which truly resembles gamble. There is the possibility of loss
or gain and wherever there is a chance of making profit there insurance cannot exist.
Therefore these risks are not insurable in nature.
Approaches to Risk Management:
Risk Management is the process of minimizing the risk due to unforeseen events. Steps
Involved in selecting the Risk Management are:

· To identify all the things that can be possibly wrong.

· To consider possibility that an event can occur.

Techniques toward the Risk Management;

1. Avoiding the Risk: - Risk can be managed by avoiding it as when the perils will come
then it will be managed.
2. Eliminate the Risk: - Risk can be managed by eliminating the cause of the loss.
3. Reducing the Risk: - Risk can be reduced by handling them in a systematic manner.
4. Transfer of Risk: - Risk can be minimized by transferring the risk of loss to any
other
Person which is a true form of the INSURANCE.
 CHAPTER 2

HOUSING DEVELOPMENT FINANCIAL CORPORATION

HOUSING DEVELOPMENT FINANCE CORPORATION ( HDFC )

Mumbai based Housing Development Finance Corporation was incorporated in 1977 by

H.T. Parekh, founder chairman of ICICI which has grown to be India's leading housing

finance company.

Its services are aimed at individuals as well as companies availing loans for housing

purposes. It also provides lease finance to companies and to development authorities for

financing infrastructure and other assets along with its property related services.
2.1 Vision and Mission of the organization

"HDFC is an organization that strives for excellence, with the twin objectives of

enhancing customer satisfaction and shareholder value"

2.1.1 Vision of HDFC

1. To enhance residential housing stock in the country through the provision of housing

finance in a systematic and professional manner, and to promote home ownership.

2. To increase the flow of resources to the housing sector by integrating the housing

finance sector with the overall domestic financial markets.

2.1.2 Mission of HDFC

a. Develop close relationships with individual households.

b. Maintain its position as the premier housing finance institution in

the country

c. Transform ideas into viable and creative solutions

d. Provide consistently high returns to shareholders

e. To grow through diversification by leveraging off the existing client

base.
HDFC HOLDINGS

74% HDFC Standard Life

60% HDFC Asset Mgt

80.5% HDFC Ventures

HDFC

23.22% HDFC Bank

100% HDFC Properties
23.27% HDFC Bank

Figure 1: Share Holding Pattern of HDFC

Figure 2: Loans Approved & Disbursed by HDFC

2.4 STANDARD LIFE INSURANCE COMPANY

Founded in 1825, Standard life has been at the forefront of the UK insurance industry for

176 years by combining sound financial judgment with integrity and reliability.

One of its successes was the launch of Standard Life Bank on 1st January, 1998. It is one

of the few insurance companies in the world to receive AAA rating from two of the

leading international credit rating agencies. Moody’s and Standard & Poor’s. The later

described Standard Life’s ability to meet its claims obligations as ‘overwhelming under a

variety of economic conditions.’

2.5 THE PARTNERSHIP

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

insurance market, in January 1995. In October 1995 the companies signed a 3 year joint

venture agreement. Around this time Standard Life purchased a 5% stake in HDFC,

further strengthening the relationship.

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

available. Standard Life also started to use the services of the HDFC Treasury

department to advise them upon their investments in India.

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

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

in January 2000, an expert team from the UK joined a hand picked team from HDFC to

form the core project team, based in Mumbai.

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

Life Insurance Company Limited. On the 23rd of October 2000, HDFC-Standard Life

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

HDFC are the main shareholders in HDFC Standard Life Insurance , with 74%, while

Standard Life owns 26%.

Figure 3: Total AUM of HDFC

\

Our Core Values

• We lead through Innovation to offer world class and competitive products to our
customers
• We build Long Term Relationships with our customers by creating a world class
service experience through operational excellence and the innovative use of
technology
• We create a Customer Centered and Result Focused Vision that inspires each one
of our Associates and has their buy-in
• We are committed to creating a High Performance Organization by creating an
environment that allows each one of our Associates to perform at their peak. As a
result we will also be recognized as an Employer of Choice
• We are committed to Partnering with our internal and external Customers for
mutual success
• We work with Integrity, Fairness and Financial Prudence in all our dealings
keeping the interests of our Shareholders, Customers and Associates paramount

OBJECTIVE

1. To study and learn about the various Insurance plans of HDFC Standard Life.
2. To study about the various insurance companies and the products offered by
them.
3. To study the customers perception about the Insurance.

LIMITATIONS

1. Difference in the opinion of the customers and the company..

2. Company is not willing to disclose full information.

3. Biased behavior of the respondents.

4. Sample size being small, may not reflect the opinion of major segment.
5. Time frame is limited.
6. Difficulty in analyzing the data because of multiple responses given by the
respondents.
 SCOPE OF STUDY

I n today’s emerging Indian economy the role and scope of Insurance

companies has increased manifold and hence this sector has seen tremendous
growth and competition over the years. Through my project I am trying to
give an in depth analysis on the same harping on the growth and emergence of
new companies in the turf which was predominated by government backed
companies. his study relates to evaluate various insurance companies in terms
of products, revenue, sales, and human resources. It also covers emergence and
growth of new insurance companies in IIndia. In this study I will go
through the products of various insurance companies and
evaluate all the products and compare those products with
HDFCSLIC products so that company can easily improve their
productivity and boost their sales. In this study a research will be
conducted by using a structured questionnaire to compare the products and
market share of various insurance companies. It also helps in knowing customers
needs which is very beneficial for company to increase productivity and boost
sales. It is also helpful to understand various marketing strategies adopted by
various insurance companies so that company can increase their market share by
modifying marketing strategies and can better serve the customers’ needs. I am
also collecting information from the company, websites, journals, magazines and
unpublished data available at company to compare various insurance companies.
I have also done a certification of IRDA to get a financial advisor license. I have
also gone through compliance sales training (CST) so that I can get better
knowledge of existing products of HDFCSLIC and it is also helpful in comparing
with other companies products. A sample of 100 people will be taken to collect
data by using structured and unbiased questionnaire and probability sampling
technique will be used to select sample of 100 people from whole population and
a random sample will be selected
 IRDA ACT 1999
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority
The Authority is a ten member team consisting of
(a) a Chairman;
(b) five whole-time members;
(c) four part-time members,
(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of
IRDA..(1) Subject to the provisions of this Act and any other law for the time being in
force, the Authority shall have the duty to regulate, promote and ensure orderly growth
of the insurance business and re-insurance business.

Without prejudice to the generality of the provisions contained in sub-section (1), the
powers and functions of the Authority shall include –

(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend
or cancel such registration;

(b) protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance claim,
surrender value of policy and other terms and conditions of contracts of insurance;
 (c) Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;

CAPITAL REQUIREMENT FOREIGN PARTICIPATION

The government of India is planning to increase the equity limit for foreign direct
investment from the current 26 per cent to 49 per cent in the insurance sector.
Liberalization of the FDI policy, including the Budget proposals for raising the sectoral
caps in insurance is one of the main factors for the higher FDI inflows during the current
year. In 2003-04 the total FDI inflows in the country touched $3.4 billion. Indian
insurance companies have been pushing for the FDI limit to be raised. The current paid-
up requirement of Rs 1 billion for general insurance and Rs 2 billion for life insurance
have become difficult targets to achieve for the companies. The companies feel that
injection of additional foreign equity would reduce their costs. The sector was liberalized
for private players towards the end of 1999. Currently, there are 14 insurance companies,
including the key public sector company Life Insurance Corporation, in the life insurance
sector and 13 general insurance companies.
1. HDFC Standard Life Insurance Co. Ltd
2. Birla Sun Life Insurance Co. Ltd
3 Bajaj Allianz Life Insurance Company Limited
4. ICICI Prudential Life Insurance Co. Ltd.
5. ING Vysya Life Insurance Company Ltd.
6. Life Insurance Corporation of India
7. Max New York Life Insurance Co. Ltd
8. Kotak Mahindra Old Mutual Life Insurance Limited
9.SBI Life Insurance Co. Ltd
10.Tata AIG Life Insurance Company Limited
11.Reliance Life Insurance Company Limited.
12.Aviva Life Insurance Co. India Pvt. Ltd.
13.Sahara India Life Insurance Co, Ltd.
14.Shriram Life Insurance Co, Ltd.
15.Bharti AXA Life Insurance Company Ltd.
16.Future General Life Insurance Company Ltd.
17.IDBI Fortis Life Insurance Company Ltd.
18.Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
19.AEGON Religare Life Insurance Company Limited.
20.DLF Pramerica Life Insurance Co. Ltd.
21.Star Union Dai-ichi Life Insurance Comp. Ltd.
22,Met life insurance co . Ltd
2.2 HDFC Board Of Directors

SNO NAME CATEGORY

1 Mr. Deepak S. Parekh Executive Chairman
2 Mr. Keshub Mahindra Independent
3 Mr. Shirish B. Patel Independent
4 Mr. B. S. Mehta Independent
5 Mr. D. M. Sukthankar Independent
6 Mr. D. N. Ghosh Independent
7 Dr. S. A. Dave Independent
8 Mr. S. Venkitaramanan Independent
9 Dr. Ram S. Tarneja Independent
10 Mr. N. M. Munjee Independent
Member of Parliament
11 Dr. Bimal Jalan
(Rajya Sabha)
12 Mr. D. M. Satwalekar Non-Executive
13 Dr. Jamshed J Irani+ Special Director++
14 Ms. Renu Sud Karnad Joint Managing Director
Vice Chairman &
15 Mr. K. M. Mistry
Managing Director

MARKETING TEAM STRUCTURE

KEY BENEFITS OF LIFE INSURANCE

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from. Modern
day investments include gold, property, fixed income instruments, mutual funds and of
course, life insurance. Given the plethora of choices, it becomes imperative to make the
right choice when investing your hard-earned money. Life insurance is a unique
investment that helps you to meet your dual needs - saving for life's important goals, and
protecting your assets.

Let us look at these unique benefits of life insurance in detail.

Asset Protection
From an investor's point of view, an investment can play two roles - asset appreciation or
asset protection. While most financial instruments have the underlying benefit of asset
appreciation, life insurance is unique in that it gives the customer the reassurance of asset
protection, along with a strong element of asset appreciation.

The core benefit of life insurance is that the financial interests of one’s family remain
protected from circumstances such as loss of income due to critical illness or death of the
policyholder. Simultaneously, insurance products also have a strong inbuilt wealth
creation proposition. The customer therefore benefits on two counts and life insurance
occupies a unique space in the landscape of investment options available to a customer.
Goal based savings
Each of us has some goals in life for which we need to save. For a young, newly married
couple, it could be buying a house. Once, they decide to start a family, the goal changes
to planning for the education or marriage of their children. As one grows older, planning
for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in
which you invest should offer corresponding benefits pertinent to the new life stage.

Life insurance is the only investment option that offers specific products tailormade for
different life stages. It thus ensures that the benefits offered to the customer reflect the
needs of the customer at that particular life stage, and hence ensures that the financial
goals of that life stage are met.
The table below gives a general guide to the plans that are appropriate for different life
stages.

Primary Life Insurance

Life Stage
Need Product
Young & Asset
Wealth creation plans
Single creation
Asset Wealth creation and
Young & Just
creation & mortgage protection
married
protection plans
Children's
education,
Education insurance,
Married with Asset
mortgage protection &
kids creation
wealth creation plans
and
protection
Planning
Middle aged for
Retirement solutions &
with grown retirement
mortgage protection
up kids & asset
protection
Across all Health
Health Insurance
life-stages plans

Life Stage Profiler

All through your life, several significant events the birth of your child, moving to a larger
home, his or her education and wedding, buying a new car, retiring from work will occur
at various stages and demand your financial commitment. If you plan in advance for
these events, you will quite naturally be prepared when they occur.

Life insurance is an effective tool that assists you to plan for your future such that you
are financially equipped to meet all your goals.

Which important goals should you plan for in advance?

1) Your family's protection - so that your loved ones are secure should an
unfortunate event happen to you. Life insurance can guarantee that your family receives
a lumpsum that safely tides them over any financial crises that might occur in your
absence.

2) Child's education: As parent, your primary responsibility is to guarantee your

children's future. Our Education Insurance plans ensure your child receives money at key
stages of his or her education even in your absence.

3) Savings: Savings plans allow you to steadily save towards a pre-decided goal in a
secure manner. These plans provide you with a host of benefits. You can choose the
premium, the underlying fund in which you want to invest your money, the ratio between
protection and investment as per your requirements.

4) Retirement: Retirement plans help you secure guaranteed income for your retired
life. During the Accumulation phase, you systematically save while you are working.
When you retire, the Payout stage of the plan begins. You then purchase an annuity,
which will serve as a steady stream of income, for the rest of your life.

5) Health: An integral part for financial planning is protecting oneself against any
medical emergencies as well. Hence, a very prudent decision would be to choose a
combination of plans that look after your finances and offer you a protective health cover
to ensure your financial planning is in track despite any major illnesses.
 PRODUCTS & SERVICES

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 you 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 and
contemporary unitized products that offer unique customer benefits like
flexibility to choose cover levels, indexation and partial withdrawals. (Source:
www.hdfcslic.com)
 Products of the company
1. Protection 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 sickness. These plans offer valuable
peace of mind at a small price. Protection range includes our
Term Assurance Plan & Loan Cover Term Assurance
Plan.

Plan Overview

HDFC OFFERS -the hdfc Term Assurance plan (TAP)', a non

participating term assurance plan which provides you life cover at a
nominal cost. To put it simply, it is a life insurance plan that gives
you complete protection to enjoy life to the fullest. You can further
customize your plan with two riders – Accidental Death Benefit
and Critical Illness.

Plan at a glance
Minimum Entry Age 18 years
Maximum Entry Age 60 years
Maximum Maturity Age 65 years
Minimum Sum Assured Rs. 50,000
Maximum Sum Assured No Limit
Policy Term 5, 10, 15, 20, 25 years and Term to age
60
Premium Paying Terms Single Pay, Limited Pay (3 years),
 Regular Pay

Riders
Accidental Death Benefit Rider
Critical Illness Rider

Products Benefits

Riders

2.Retirement Plans:

• Retirement Plans provide you with financial security so that when

your professional income starts to ebb, you can still live with pride
without compromising on your living standards. By providing you a
tool to accumulate and invest your savings, these plans give you a
lump sum on retirement, which is then used to get regular income
through an annuity plan. Given the high cost of living and rising
inflation, employer pensions alone are not sufficient. Pension
planning has therefore
•

Retirement plans
• HDFC Personal Pension Plan
• HDFC Unit Linked Pension II
• HDFC Unit Linked Pension Maximiser II
• HDFC Immediate Annuity

.
Plan at a glance

Entry Age (in completed years) Min – 20 years

Max – 55 years
Minimum Term 10 years
Minimum Vesting Age 45 years
Maximum Vesting Age 65 years
Minimum Premiums Single Pay: Rs. 1,00,000
Regular Premium: Rs. 10,000
Premium Paying Term Single Pay & Regular Pay

Products Benefits
Riders
Not Available

Death Benefit
In case of death during the accumulation period, the death benefit
payable is:
Under Option A: A guaranteed amount of 110% of the Fund Value
is payable to the nominee.
Under Option B: 100% of the Fund Value is payable to the
nominee.
 Vesting Benefit
On the vesting date, i.e. at the end of the accumulation term,you
can take one-third of your retirement kitty as a tax-free lump sum
and utilize the balance to buy annuities. Or you can use the entire
retirement kitty to buy annuities.
Annuity Options
You can choose from a wide variety of eight immediate annuity
options at the time of retirement to match your pension
requirement.
Reasons to buy

1. Advantage of six diverse market linked funds to potentially

enhance your savings for retirement.

2. Get upto 1/3 rd of your retirement kitty as a tax-free lump sum

on retirement.

3. Opportunity to get tax benefits under Sec 80C on your

contribution.

4. Choice from amongst eight annuity options at the time of

retirement.

5. Get the benefit of protection while you are saving for retirement.

3. Savings plan:

Plan over

Savings Plans offer a flexible option to build savings for future

needs such as buying a dream home or fulfilling your
children’s immediate and future needs.
Savings & Investment Plans

HDFC Unit Linked Endowment Plus II

HDFC SimpliLife

HDFC Unit Linked Endowment II

HDFC Unit Linked Enhanced Life Protection II

HDFC Unit Linked Wealth Maximiser Plus

HDFC Unit Linked Wealth Multiplier

HDFC Unit Linked Endowment Winner

HDFC Endowment Assurance Plan

HDFC Money Back Plan

HDFC Single Premium Whole of Life Insurance Plan

HDFC Assurance Plan

HDFC Savings Assurance Plan

HDFC Unit Linked Endowment Plus II

With our HDFC Unit Linked Endowment Plus II, you can start building
your savings today and ensure that your family remains financially
independent, even when you are not around. This Unit Linked plan provides
valuable protection to your family in case you are not around and gives you
with an outstanding investment opportunity to maximise your savings by
providing you a choice of thoroughly researched and selected investments.
This plan also gives regular Loyalty Units to boost your fund value each
year..

HDFC SimpliLife
With our HDFC SimpliLife Plan, you can plan now to maximise your
savings and secure your and your family’s future. It is a convenient plan,
which saves you from the need of going for Medicals. This Unit Linked Plan
gives you with an outstanding investment opportunity to maximise your
savings by providing you a choice of thoroughly researched and selected
investments.
HDFC Unit Linked Endowment I
With our HDFC Unit Linked Endowment II, you can start building
your savings today and ensure that your family remains financially
independent, even when you are not around. This Unit Linked Plan also
gives you with an outstanding investment opportunity to maximise your
savings by providing you a choice of thoroughly researched and selected
investments.
HDFC Unit Linked Enhanced Life Protection II
With our HDFC Unit Linked Enhanced Life Protection II, you can start
building your savings today and ensure that your family remains
financially independent, even when you are not around. This Unit
Linked Plan also gives you with an outstanding investment opportunity
to maximise your savings by providing you a choice of thoroughly
researched and selected investments. In this plan, the original Sum
Assured chosen by you will be automatically increased by 5% each year
giving your family benefit of enhanced protection.

HDFC Unit Linked Wealth Maximiser Plus

Ideally, just how spending comes to you, so must saving and investing.
You are able to finance your expenses and take care of your family’s
needs in present times. However, to ensure that family is able to
 maintain the same standard of living in the future, you need to make the
right kind of investment today. HDFC Unit Linked Wealth Maximiser
Plus, a uniqueSingle Premium investment cum protection plan is a tailor
made plan well suited to meet your long-term investment needs and help
you maintain your family’s financial independence. This plan also gives
regular Loyalty Units to boost your fund value each year.

HDFC Money Back Plan

With our HDFC Money Back Plan, you can plan now to ensure that you have
the necessary funds to have the necessary funds to secure your long-term as
well as short-term financial goals. This ‘With Profits’ plan gives you a proportion
of the basis Sum Assured as Cash lump sums at regular 5-year intervals within
the policy term.

Plan Overview

Hdfc money back plan - a guaranteed money back plan that pays
out funds to help you meet the education and career milestones of
your children. With this plan, the Life Insured is that of the parent.
The plan also has inbuilt guaranteed additions to add value to the
policy over its term.

There are two options to choose from and fixed term benefits,
periodic additions & terminal additions are payable based on the
option that you select. The policy is suitable for parents with
children between the ages 0-12 and parents in the age group of 20-
50 years old.
Plan at a glance
 Coverage Term
Option A Option B
Minimum Entry Age of the 0 years 0 years
Child
Maximum Entry Age of the 8 years 12 years
Child
Minimum Entry Age of the 20 years 20 years
parent
Maximum Entry Age of the 50 years
50 years
Parent
Policy Term 21 years - Age at 25 years - Age at
Entry Entry
Minimum Sum Assured Rs 1,00,000 Rs 1,00,000
Maximum Sum Assured No Limit No Limit

Riders
Accidental Death Benefit Rider
Critical Illness Rider
Waiver of Premium Rider
Term Rider

Products Benefits

Death Benefit
In the event of death of the Person Insured (the parent), the family
will receive a lump sum payment of Sum Assured. The fixed term
payment and maturity benefits will continue irrespective of the
death of the Life Insured and all future premiums on the policy
would be waived.
Maturity Benefit
On maturity of the policy, the plan offers Guaranteed Periodic
Additions and Terminal Additions:
1. Guaranteed Periodic Additions of 5% of the Sum Assured for
every completed year.
2. Terminal additions of 20% of the total Guaranteed Periodic
Additions.

Guaranteed Payouts
Option A: Policy matures at age 21 of the child.
Age of the Child Percentage of Payout Assumed Milestone
15 years 20% of Sum Assured Class X
17 years 30% of Sum Assured Class XII
20 years 50% of Sum Assured College
21 years Guaranteed Additions Higher Education
Option B: Policy matures at age 25 of the child.
Age of the Child Percentage of Payout Assumed Milestone
17 years 20% of Sum Assured Class XII
21 years 30% of Sum Assured College
23 years 50% of Sum Assured Higher Education
25 years Guaranteed Additions Wedding

Reasons to buy

1. Guaranteed payouts at critical milestones of the child’s life.

2. Guarantee of policy continuance in case of the untimely demise

of parent.

3. Guaranteed payouts of 250%* of the chosen Sum Assured.

4. Income Tax benefits.

* When the term of the plan is 25 years.
 4.Children Plan:
Children’s Plans helps you save so that you can fulfill your child’s dreams and
aspirations. These plans go a long way in securing your child’s future by
financing the key milestones in their lives even if you are no longer around to
oversee them. As a parent, you wish to provide your child with the very best that
life offers, the best possible education, marriage and life style.

Children's Plans

HDFC Children's Plan

HDFC Unit Linked Young Star II

HDFC Unit Linked Young Star Plus II

HDFC Unit Linked YoungStar Champion

Health Plans
Health plans give you the financial security to meet health related contingencies.
Due to changing lifestyles, health issues have acquired completely new
dimension overtime, becoming more complex in nature. It becomes imperative
then to have a health plan in place, which will ensure that no matter how critical
your illness is, it does not impact your financial independence

Health Plans

• HDFC Critical Care Plan

• HDFC SurgiCare Plan
Marketing strategy of all the companies is different besides the lot of
similarity in the products.
If we see the data then we will find that HDFC STANDARD LIFE Insurance has
number of branches according to the latest data in annual report of 2007-2008 by IRDA,
hdfcslic has730 branches, but the premium that they offer to Insurance Industry is 1410
cores, and the number of life advisors are much if we compare it to other companies so
from where does this Premium is amounting this much, it shows that HDFC
STANDARD Life focuses on big business houses, i.e. they are much desperate for their
business with elephant then humming birds.
If we see the things in a different fashion then we will find that the
HDFCSTANDARDLife is having the shield of Guaranteed Maturity Value. No doubt
the company is having a long list of the product with them. Variety is there as in the
range of the product varies from Child product to retirement solutions, but their focus is
in ULIP PLANS was a huge success.

Market Share of all Insurance Companies in India:

Market share of Private Players in India:

COMPARISON OF PREMIUM OF MONEY BACK POLICIES

AGE 30 POLICY TERM 20 YEARS AGE 30 YEARS POLICY TERM 15 YEARS

YEARS
 PREMIUM PREMIUM

COMPANY SUM SUM COMPANY SUM SUM

ASSURED:1 ASSURED: ASSURED:1 ASSURED:2
LAC 2 LACS LAC LACS
LIC 6280 12559 LIC 7953 15906

ICICI PRU 6592 12884 ICICI PRU 9094 17888

ALLIANZ 6158 11836 ALLIANZ 8362 16244

BAJAJ BAJAJ

TATA AIG 9099 17698 TATA AIG NA NA

HDFC 7585 15020 HDFC 9102 18054

OM KOTAK 7120 14240 OM KOTAK 8890 16480

MAX NA NA MAX NA NA
NEWYORK NEWYORK

MET LIFE 5856 11412 MET LIFE 7572 14844

AGE 35 POLICY TERM 20 YEARS AGE 35 YEARS POLICY TERM 15 YEARS
YEARS

PREMIUM PREMIUM

COMPANY SUM SUM COMPANY SUM SUM

ASSURED:1 ASSURED: ASSURED:1 ASSURED:2
LACS 2 LACS LACS LACS
LIC 6464 12928 LIC 8089 16177

ICICI PRU 6683 13067 ICICI PRU 9160 18019

ALLIANZ 6252 12024 ALLIANZ 8432 16384

BAJAJ BAJAJ

TATA AIG 9219 17938 TATA AIG NA NA

HDFC 7719 15270 HDFC 9184 18218

OM KOTAK 7330 14660 OM KOTAK 9010 16700

MAX NA NA MAX NA NA
NEWYORK NEWYORK

MET LIFE 6000 11700 MET LIFE 7668 15036

 AN ANALYSIS ON
GUARANTEES ON INSURANCE AND PENSION
PRODUCTS
AS ON MARCH 2008
IRR’S/GURANTEES

COMPANY INSURANCE PENSION

ALLIANZ BAJAJ 2.14% NA

AVIVA -1.80% NA

AMP SANMAR NA NA

BIRLA SUNLIFE 0.70-1.50% 1-1.5%

HDFC STANDARD 0.73% 1.7-1.9%

ICICI PRUDENTIAL 1.70-4.95% 3.06%

ING VYSYA 0.70% NA

LIC 4-6% 1.3-2%

MAX NEWYORK LIFE 3.05% 1.4-1.9%

MET LIFE 5.5-5.7% 2.3-2.7%

OM KOTAK -0.04% 2.10%

SBI LIFE 0.73%-4.7% 4%

TATA AIG -2-4.4% 1.30%

Comparative Premium Chart (Sum Assured: Rs 1,000,000)

Life Insurer Age Tenure (Yrs)
(Yrs) 5 10 15 20 25 30 35 40
HDFC [Get Quote] STANDARD LIFE 25 2,570 2,620 2,670 2,720 2,770 2,820 NA NA
(TERM ASSURANCE) 30 2,770 2,820 2,870 2,920 3,050 3,430 NA NA
35 3,000 3,050 3,160 3,580 4,120 4,750 NA NA
40 3,710 3,840 4,380 5,110 5,970 NA NA NA
45 5,000 5,520 6,460 7,620 NA NA NA NA
50 7,430 8,320 9,830 NA NA NA NA NA
55 10,960 12,600 NA NA NA NA NA NA
60 16,540 NA NA NA NA NA NA NA
ICICI [Get Quote] PRUDENTIAL 25 2,933 2,933 2,933 2,933 2,933 3,064 NA NA
(LIFEGUARD) 30 3,032 3,032 3,032 3,032 3,334 3,905 NA NA
35 3,172 3,172 3,248 3,798 4,067 4,564 NA NA
40 4,317 4,317 4,738 5,525 6,681 NA NA NA
45 5,267 5,807 6,875 8,258 NA NA NA NA
50 7,739 8,776 10,439 NA NA NA NA NA
55 11,423 13,258 NA NA NA NA NA NA
60 NA NA NA NA NA NA NA NA
LIC [Get Quote] 25 2,356 2,356 2,356 2,544 2,861 NA NA NA
(ANMOL JEEVAN I) 30 2,564 2,564 2,812 3,227 3,821 NA NA NA
35 3,128 3,277 3,841 4,613 5,534 NA NA NA
40 4,287 4,703 5,752 6,940 8,306 NA NA NA
45 6,247 7,247 8,860 10,623 NA NA NA NA
50 9,860 11,335 13,741 NA NA NA NA NA
55 15,068 17,384 NA NA NA NA NA NA
60 NA NA NA NA NA NA NA NA
SBI [Get Quote] LIFE 25 1,954 1,954 1,954 1,954 2,180 NA NA NA
(SHIELD) 30 2,043 2,043 2,150 2,454 2,964 NA NA NA
35 2,454 2,552 2,895 3,542 4,375 NA NA NA
40 3,189 3,542 4,346 5,384 6,649 NA NA NA
45 4,561 5,541 6,796 8,354 NA NA NA NA
50 7,344 8,814 10,657 NA NA NA NA NA
55 11,215 13,538 NA NA NA NA NA NA
 60 17,037 NA NA NA NA NA NA NA
KOTAK MAHINDRA OLD MUTUAL 25 NA 2,424 2,424 2,424 2,535 2,755 NA NA
(PREFERRED TERM PLAN)
30 NA 2,645 2,645 2,755 3,086 3,416 NA NA
35 NA 3,196 3,306 3,747 4,188 4,739 NA NA
40 NA 4,298 4,739 5,400 6,187 6,960 NA NA
45 NA 6,077 6,761 7,797 8,970 NA NA NA
50 NA 9,180 10,351 11,988 NA NA NA NA
55 NA 13,593 15,679 NA NA NA NA NA
60 NA 21,668 NA NA NA NA NA NA
MAX NEW YORK LIFE 25 2,100 2,110 2,120 2,210 2,410 NA 2,670 NA
30 2,160 2,280 2,430 2,700 3,050 3,220 NA NA
35 2,570 2,910 3,270 3,770 4,330 NA NA NA
40 3,480 4,150 4,840 5,650 NA NA NA NA
45 5,040 6,360 7,450 NA NA NA NA NA
50 7,940 9,990 NA NA NA NA NA NA
55 12,140 NA NA NA NA NA NA NA
60 NA NA NA NA NA NA NA NA
AVIVA [Get Quote] LIFE INSURANCE 25 2,580 2,580 2,600 2,690 2,880 3,190 3,610 4,100
(LIFESHIELD) 30 2,650 2,660 2,890 3,120 3,530 4,060 4,700 NA
35 3,110 3,240 3,620 4,120 4,800 5,620 NA NA
40 3,940 4,220 4,980 5,840 6,880 NA NA NA
45 5,170 6,010 7,280 8,620 NA NA NA NA
50 7,840 9,230 11,140 NA NA NA NA NA
55 11,910 14,110 NA NA NA NA NA NA
60 NA NA NA NA NA NA NA NA
TATA-AIG LIFE 25 3,100 3,160 3,340 3,640 4,080 NA 5,040 NA
(ASSURE LIFELINE)
30 3,480 3,510 3,970 4,550 5,280 6,130 NA NA
35 4,650 4,670 5,520 6,580 7,820 NA NA NA
40 6,830 6,870 8,400 10,200 NA NA NA NA
45 9,880 10,190 13,380 NA NA NA NA NA
50 15,800 16,240 NA NA NA NA NA NA
55 24,320 NA NA NA NA NA NA NA
60 NA NA NA NA NA NA NA NA
METLIFE 25 2,600 2,500 2,500 2,700 2,700 NA 3,200 NA
(SURAKSHA- TERM ASSURANCE)
30 2,700 2,600 2,800 3,100 3,300 3,600 NA NA
35 3,300 3,200 3,600 4,000 4,400 NA NA NA
40 4,500 4,300 5,000 5,700 6,300 NA NA NA
45 6,600 6,400 7,400 8,400 NA NA NA NA
50 9,900 9,700 11,200 NA NA NA NA NA
55 15,000 14,700 NA NA NA NA NA NA
60 21,000 NA NA NA NA NA NA NA
BIRLA SUN LIFE 25 2,890 2,890 2,890 2,890 2,890 NA NA NA
(TERM PLAN)
30 2,950 2,950 2,950 3,010 3,160 NA NA NA
35 3,290 3,310 3,510 3,720 4,030 NA NA NA
 40 4,080 4,310 4,690 5,150 5,860 NA NA NA
45 5,380 5,990 6,720 7,670 8,930 NA NA NA
50 7,710 8,790 10,180 11,960 NA NA NA NA
55 11,080 13,100 15,680 NA NA NA NA NA
60 NA NA NA NA NA NA NA NA
AMP SANMAR 25 2,180 2,180 2,180 2,180 2,350 2,700 NA NA
(RAKSHA SHREE)
30 2,230 2,230 2,290 2,600 3,070 3,640 NA NA
35 2,580 2,640 3,020 3,630 4,380 5,260 NA NA
40 3,350 3,650 4,420 5,400 6,540 NA NA NA
45 4,680 5,520 6,750 8,220 NA NA NA NA
50 7,200 8,550 10,400 NA NA NA NA NA
55 10,900 13,050 NA NA NA NA NA NA
60 16,580 NA NA NA NA NA NA NA
BAJAJ ALLIANZ 25 3,140 3,200 3,420 3,820 4,490 5,560 7,090 9,320
(RISK CARE)
30 3,260 3,560 4,050 4,830 6,050 7,750 10,200 NA
35 3,850 4,450 5,350 6,750 8,650 11,350 NA NA
40 5,040 6,100 7,710 9,850 12,850 NA NA NA
45 7,160 9,050 11,460 14,810 NA NA NA NA
50 10,940 13,610 17,360 NA NA NA NA NA
55 NA NA NA NA NA NA NA NA
60 NA NA NA NA NA NA NA NA

Michael Porter’s Model

The model originated from Michael.E.Porter’s book “Competitive strategy:Techniques
for analyzing Industries and competitors” in 1980. Since then, it has become a frequently
used tool for analyzing a company’s industry structure and their corporate strategy.
In his book, porter identified five competitive forces that shape every single industry and
market. These forces help us to analyze everything from the intensity of competition to
the profitability and attractiveness of an industry. The following image shows the
relationship between the different competitive forces.

Threats of new entrants-High

It is easier for new companies to enter into the industry and there will be more cut throat
competition. Factors that can limit the threat of new entrants are known as barriers to
entry.
So in an insurance industry the average entrepreneur can’t come along
and start a new large insurance company. The threat of new entrants lies within the
insurance industry itself. Some companies have carved out niche areas in which they
underwrite insurance. So HDFC is fearful of being squeezed out by the big players.
Another threat for it is other financial services companies entering into the market. What
would it take for a bank or investment bank to start offering insurance products? In some
countries, only regulations that prevent banks and other financial firms from entering the
industry. If those barriers were ever broken down, like they were in the U.S with the
Gramm-Leach-Bliley Act of 1999.

Power Of Suppliers-low
This is how much pressure suppliers can place on a business. If one supplier has a large
enough impact to affect a company’s margins and volumes, then they hold substantial
power.
So in insurance industry, the suppliers of capital might not pose a big
threat, but the threat of suppliers luring away human capital does. If a talented insurance
underwriter is working for HDFCSLIC Insurance company(or one in a niche industry),
there is a chance that person will be enticed away by larger companies looking to move
into a particular market.

Power of Buyers-low
This is how much pressure customers can place on a business. If one customer has a
large enough impact to affect a company’s margins and volumes, then they hold
substantial power.
So for Metlife, the individual doesn’t pose much of threat to the company.
Large corporate clients have a lot more bargaining power with insurance companies.
Large corporate clients like airlines and pharmaceutical companies pay millions of
dollars in premium annually. Insurance companies try extremely hard to get high margin
corporate clients.

Availability of Substitutes-High
What is the likelihood that someone will switch to a competitive product or service? If
the cost of switching is low, then this poses to be a serious threat.
This one is pretty straight forward, for there are plenty of substitutes in
the insurance industry. Most large insurance companies offer similar suites of services.
Whether it is auto, home, commercial, health or life insurance. In some areas of
insurance, however, the availability of substitutes are far and few between. Metlife
focusing on niche areas usually have a competitive advantage, but this advantage
depends entirely on the size of the niche and on whether or not there are any barriers
preventing other firms from entering.
Competitive Rivalry-High
And last but not the least, this describes the intensity of competition between existing
firms in an industry. Highly competitive industries generally earn low returns because
the cost of competition is high.
The insurance industry is becoming highly competitive. The difference
between one insurance company and another is usually not that great. As a result
insurance has become more like a commodity, an area in which the insurance company
with the low cost structure, great efficiency and better customer service will beat out
competitors. HDFCSLIC also use higher investment returns and a variety of insurance
investment products to try to lure in customers. In the long run, we’re likely to see more
consolidation in the insurance industry. Larger companies prefer to takeover or merge
with another rather than spend the money to market and advertise the people.
S.W.O.T ANALYSIS OF HDFC SLIC INDIA INSURANCE
STRENGTHS

• Brand Image , Business Experience and Innovative products..

• Large number of young workforce .The 40K agents which are very selectively
chosen .
• Service quality which is the crux of their mission.
• Has tie up with banks like HDFC BANK.
• Paidup capital of RS 1900 cr as on 2008 which shows company dependability.
• Very less charges on ULIP plans as compare to other insurance players .
• 1153.6 cr AFYP on 2008.

WEAKNESS

• Many competitors in the market of same products by the title and difference in
premium and offerings.
• Sustainable to risk associated with investments in money market.
• Very less network branches due to which its difficult for customer to make
payment easily.
• Not focusing on consumer awareness mainly concentrating on personal
selling .
 • More focusing in urban areas not touching rural area which has a very good
potential market for insurance sector.
• Lacking in advertistment due to which they are not able to cover a large
area or large no of customer.

OPPORTUNITY

• Huge market is literally untapped.out of estimated 320 millions insurable

markets only 20% of the population is insured.
• Health insurance and pension schemes, an estimated market potential of
approximately $ 15 billion.
• Nearly 70% of the Indian population is without Life , Health , and Non-Life
insurance.
• Per Capita life insurance premium in India in 2004 was $16 as compared to the
world average of $ 292.
• Strong economic growth with increase in affluence and rising risk awareness
leading to rapid growth in the Insurance sector.

THREATS

• Players like ICICI and birla sunlife offer same plans with low premiums.
• Entry of many other private companies with equally strong experience and
financial strength of foreign partners making the competition difficult and
 saturating the urban markets (example ; idbi fortis insurance , bharti axa insurance
and more.)
• Current govt. policies do not encourage gross domestic savings. if the tax
liability of the sevice class rises, the customer will have little money to invest.
• LIC has woken up from sleep and is following competitive strategies. its huge
surplus in life fund gives a capability to lodge price war.

RESEARCH METHODOLOGY

5.1 DESCRIPTIVE RESEARCH DESIGN

The research design adopted in this study is DESCRIPTIVE RESEARCH DESIGN. A
descriptive research design is the one which is description of the state of affairs as it
exists at present. It includes survey and fact finding enquiries of different kinds. The
researcher has no control over the variables. The researcher used this research design to
find out the respondents attitude and opinion about products offered.

5.2 SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It
refers to the techniques or procedures the researcher would adopt in selecting items for
the sample.
SAMPLING

The researcher adopted convenience sampling. It is the non probability sampling is that
sampling procedures does not any basis for estimating the probability that each item in
the population has of included in the sample. The researcher selects the people according
to their convenient.

SAMPLE SIZE
A sample of 150 people will be taken for the survey. The required data collected through
questionnaire.

5.3 SAMPLING AREA

The sampling unit may be a Geographical one such as state, District, Village etc., The
geographical sampling unit under study has covered the area of Chandigarh.

DATA COLLECTION
The information required for our project was collect mainly from the primary sources
and even from secondary sources. The primary source consists of the data analyzed from
questionnaire and interaction with the user at that time only. And internet is used as
secondary source.
5.4 DATA COLLECTION METHOD
Data is collected through questionnaire schedule method.

5.5 CONTACT METHOD

Face to Face

Findings , Analysis and Interpretation

Q1. How important it is to take a insurance policy?
 a. Very Important
 b. Important
 c. Not Important
 d. Don’t Know

INTERPRETATION
48 % of the total respondents suryed think that Life Insurance policy is important for
them and 28.8% respondent think that it is very important and only 16% think that Life
insurance is not impotant for them.

Q2. Sources which helps you in making the investment decisions:

 a. Financial journal / business magazines11
 b. Reference groups 21
 c. Television 45
 d. General / business newspapers 16
 e. Brokers / agents / professional consultant 23
 f. Word of mouth/ influencer 34

INTERPRETATION
Television is major source which helps in making the investment decision it’s the
perception of 30% respondent suryed and 22% respondent make there decision on word
of mouth and only 7% respondents takes the help of Finacial Journals/business
magazines.
Q3. What is the purpose of taking an insurance policy?
 a. Investment
 b. Tax Saving
 c. Old Age Saving
 d. For Your Family Needs
 e. For Certain Mishappening
 f. Security

INTERPRETATION
28% respondents think that Investment is the main purpose for taking an insurance
policy and only 14% respondent think that there purpose of insurance policy is for
Certain Mishappening which is ultimately the main purpose of the Insurance.

Q4. According to you which among the following Life insurance

companies would you?
 LIFE INSURANCE CORPORATION
 AVIVA LIFE INSURANCE
 ICICI PRUDENTIAL
 HDFCSLIC
  BIRLA SUN LIFE
 OTHERS

INTERPRETATION
40% of the respondent surveyed perception is that LIC is best among all the Insurance
players and 14% respondent think that HDFCSLIC is the best among other insurance
players .

Q5. Are you aware of the allocation charges of different insurance

companies?
 a. Yes
 b. No

INTERPRETATION
70% of the total respondents surveyed don’t aware of different charges charged by
Insurance companies and only 29% respondent surveyed aware about different charges .

Q6. Factors that influence your investment decisions in a particular

company:

Ranking 1 2 3 4 5 6 7 8
Response

Brand 39 29 29 17 14 9 8 5
Promotion 28 27 31 19 16 12 9 8
Relation with 22 31 26 21 19 15 7 9
Agent

Rate of Return 16 15 21 24 27 19 20 8
Life Insurance 13 11 15 23 25 21 24 18
Cover
Tax Benefits 9 13 14 22 18 23 25 26
Better 15 15 8 13 15 25 29 30
Services
Allocation 8 9 6 11 16 26 28 46
Charges

INTERPRETATION
26% of total people surveyed have ranked Brand as #1 for influence them for taking an
investment decision and 18% respondent ranked Promotions # 1 for there investment
decision and 14% people ranked relation with agent as #1 for their decision and 31%
respondent ranked Allocation charges as #8 for their investment decisions.

Q7. Which Company’s Insurance do you have?

 LIC
 ICICI Prudential
 Bajaj Allianz
 HDFC
 Birla Sun Life
 Others Pls Specify…..

INTERPRETATION
49% of total respondent surveyed have LIC’s Insurance Policy, 18% have ICICI
Prudential & only 5% respondents have Insurance policy of companies like Metlife,
Bharti AXA, IDBI Fortis etc.
Q8. Are you satisfied with the return, which you are getting from your
current policies?
 a. Very Satisfied
 b. Satisfied
 c. Not Much Satisfied
 d. Dissatisfied

INTERPRETATION
38% respondent surveyed are satisfied with the return they are getting from their current
policies and only 46% respondent are not much satisfied & dissatisfied from the return
they are getting from their current policies.

Q9. Which type of fund will you prefer for investment ?

 a. Whole Life Policy (5 to 6 % low risk)
 b. Endowment (9% moderate)
 c. ULIP (>15% high risk)
 d. Equity (very high risk)
INTERPRETATION
34% of the respondent surveyed are willing to invest in ULIP plans which has high risk
and 31% people surveyed are willing in Equity which has very high risk and only 12%
respondent surveyed willing to investment in whole life policy because of low rate of
return.

Q10. Where do you generally like to invest your money?

Rating response
1 2 3 4 5
Insurance 35 38 36 27 14

Stock Market 49 35 31 29 6

Mutual fund 32 29 32 31 26

Bank / Fixed Deposits / Post 24 27 29 32 38

Office savings
Others (Real estate, Gold etc.) 10 21 22 31 66

INTERPRETATION
32% of the respondent surveyed are like to invest their money in stock market , 23% of
respondent are like to invest in insurance and 21% people surveyed like to invest in
Mutual fund it shows that insurance has tough competition from other investment
instruments like stock and mutual funds.
Q11. What attracts you more to buy insurance?
 a. Lower Premium Allocation Charges
 b. Guaranteed Return
 c. Return Depend on Market
 d. Any other ( please specify)……….

INTERPRETATION
33% of respondent surveyed thinks that Return depend on market condition attracts them
more to buy an insurance policy (example- ULIPS) and 27% respondent think that
guaranteed return on an insurance policy attracts them more to buy an insurance policy
and only 19% respondents have a perception that low allocation charges attracts them
for buying an insurance policy.

Q12. Which factor will you give preference while buying an insurance
policy?
 a. Brand
 b. Policy Scheme
 c. Relationship (agent)
 d. Service

INTERPRETATION
35% respondent surveyed give preference to Brand image for buying an insurance
policy and only 13% respondent surveyed give preference to the Service provided by the
company for buying an insurance policy.

Q13. Which mode would you prefer to pay premium?

 a. Single Premium
 b. Annually
 c. Half Yearly
 d. Monthly

INTERPRETATION
51% of the respondent surveyed willing to choose the annually premium pay and
only17% respondent choose monthly mode for paying a premium.
RECOMMENDATIONS
The HDFC SLIC should now try to identify the gap between current level of customer
service and customer expectations. Some of the strategies being recommended are as
follows:

➢ Brand Building: STANDARD LIFE is a very huge Brand in UK in Insurance

but in India it is not known as a Insurance brand. So HDFC SLIC need to focus
on Brand building Activities which can be done through Advertising, Road
shows, Knops, Sponsoring Events in rural & Urban Areas.

➢ Educating the Consumers: As per the survey Conducted it is found that most
of the respondents don’t know the core function of the insurance & they are
taking it only as an investment instrument & also they are not aware of the nitty-
gritty like different allocation charges. So HDFC SLIC should take initiative to
educate the consumers regarding all these aspects & take competitive Advantage
on this front as its Allocation charges are competitive in the whole Indian
Insurance Industry.

➢ Need to Increase Market Presence: As per the survey conducted it is found

that HDFC SLIC has only 10% market share, it is because its presence in market
is very less. It should make more channel partners & do business tie ups with
more broking houses & should hire marketing agencies for aggressive marketing
purpose. It can also increase its Business Units.
➢ Concentration More On Rural Areas : HDFC SLIC need to concentrate more
towards the rural areas as 60-70% of India population is living in rural areas and
most of the people in rural areas are not insured so there is a huge potential in
the rural sector.

➢ Product Differentiation: Offering a product that is distinctly different from

other products available in the market by other insurance players.

➢ More Guaranteed Plans to be Introduced: As we know today the stock

market is giving very less return even in last year the return comes Negative so
the company need to introduce some more guaranteed plans so that customer can
invest in them and have assured return on them which ultimately is an edge in
competition in insurance sector.

➢ Need to commence Medical claim Products and General Insurance :

There are very less which are having Medical claim products and also very less
companies providing General Insurance with Life Insurance for example ICICI ,
Reliance and Bajaj Allianz so HDFC SLIC also need to come in General
Insurance business so that they can compete with these players.

➢ Flexibility: The companies should make their products flexible for the
convenience of their customer.

➢ Hassle Free Service: All bureaucracy in customer interactions should be

eliminated.

➢ Proper Policy Documentation: Wrong interpretations/ non-awareness of policy

document by the customer may have serious implications in the long term and
the possibility of the same should be alleviated by the company which leads to.
 CONCLUSION
The various conclusions drawn from the project are: -
There has been tremendous change in the insurance history. And with it there has been
continuous growth in this sector both in Indian as well as world context.
The opening up of the insurance sector has changed the whole look of the industry.
While the LIC in order to face the competition is coming with new strategies. New
players like HDFC SLIC , ICICI , Birla Sunlife are leading the sector due to their
strategic management and tailored made projects.
From our research also we conclude that though the awareness and people opting for LIC
plans are more as compare to HDFC SLIC but the later are gaining momentum in the
market day by day.
The primary reasons for buying an insurance policy, whether life or non-life is to protect
us from vagaries of life. We do not invest in insurance for returns; rather we invest in it
for regrettable necessities. Though a large proportion of policies available in the country
provide for returns, but nobody is looking for returns to the inflation rate. So what does
insurance offer, perhaps peace of mind, but even that takes time, due to poor claim
performance
The demand for insurance is likely to increase with rising per-capita incomes, rising
literacy rates and increase of the service sector, as has been seen from the example of
several other developing countries. In fact, opening up of the insurance sector is an
integral part of the liberalization process being pursued by many developing countries
Insurance is a Rs.400 billion business in India and yet its spread in the country is
relatively thin. Insurance as a concept has not been able to make headway in India. There
has been a strong fall in insurance business in recent years. Furthermore, it can be
observed that non-life business is not increasing as strongly as life business. On the other
hand, growth fluctuations have been relatively small with growth rates varying between
1% and 5%. Life insurance business by contrast achieved average growth rates of 6%,
although the actual rates ranged from 0% to 13%. This shows on the one hand the
increasing significance of life insurance as an instrument for old age provisions and on
the other hand indicates the sensitivity of life insurance to changes in the institutional
and economic environment.

References
➢ IRDA Annual Report, 2007-08
➢ Principles of Life Assurance, IC-23
➢ Business Research Method by ICFAI Center for Management and Research

➢ Business Research Method by Donald R. Cooper and Pamela S. Shchindler

➢ Websites:
➢ www.hdfcslic.co.in
➢ www.irdaindia.org
➢ www.insuranceworld.com
➢ www.findarticles.com
ANNEXURE
 QUESTIONNAIRE

Q1. How important it is to take a insurance policy?

 a. Very Important
 b. Important
 c. Not Important
 d. Don’t Know

Q2. Sources which helps you in making the investment decisions:

 a. Financial journal / business magazines11
 b. Reference groups 21
 c. Television 45
 d. General / business newspapers 16
 e. Brokers / agents / professional consultant 23
 f. Word of mouth/ influencer 34

Q3. What is the purpose of taking an insurance policy?

 a. Investment
 b. Tax Saving
 c. Old Age Saving
 d. For Your Family Needs
 e. For Certain Mishappening
 f. Security

Q4. According to you which among the following Life insurance companies would you
prefer?
 LIFE INSURANCE CORPORATION
 AVIVA LIFE INSURANCE
 ICICI PRUDENTIAL
 HDFCSLIC
 BIRLA SUN LIFE
 OTHERS
Q5. Are you aware of the allocation charges of different insurance companies?
 a. Yes
 b. No

Q6. Factors that influence your investment decisions in a particular company:

Ranking 1 2 3 4 5 6 7 8
Response

Brand
Promotion
Relation with
Agent

Rate of Return
Life Insurance
Cover
Tax Benefits
Better Services
Allocation
Charges

Q7. Which Company’s Insurance do you have?

 LIC
 ICICI Prudential
 Bajaj Allianz
 HDFC
 Birla Sun Life
 Others Pls Specify…..
Q8. Are you satisfied with the return, which you are getting from your current policies?
a. Very Satisfied
 b. Satisfied
 c. Not Much Satisfied
 d. Dissatisfied
Q9. Which type of fund will you prefer for investment ?
 a. Whole Life Policy (5 to 6 % low risk)
 b. Endowment (9% moderate)
 c. ULIP (>15% high risk)
 d. Equity (very high risk)

Q10. Where do you generally like to invest your money?

Rating response
1 2 3 4 5
Insurance

Stock Market

Mutual fund

Bank / Fixed Deposits / Post

Office savings
Others (Real estate, Gold etc.)

Q11. What attracts you more to buy insurance?

 a. Lower Premium Allocation Charges
 b. Guaranteed Return
 c. Return Depend on Market
 d. Any other ( please specify)……….

Q12. Which factor will you give preference while buying an insurance policy?
 a. Brand
 b. Policy Scheme
 c. Relationship (agent)
 d. Service

Q13. Which mode would you prefer to pay premium?

  a. Single Premium
 b. Annually
 c. Half Yearly
 d. Monthly

PERSONAL INFORMATION :

Name:

Age:

Occupation:
 a. Service
 b. Business
 c. Self employed
 d. Retired

Income Level (per annum):

 a. Below 2 Lac
 b. 2 to 3 Lac .
 c. 3 to 5 Lac
 d. 5 to 7 Lac
 e. 7 to 10 Lac
 f. Above 10 Lac