A

SUMMER TRAINING

PROJECT REPORT ON Various Insurance schemes provided by HDFC Bank & their Market Analysis
Conducted at

HDFC Bank Yamuna Nagar -135001

for the partial fulfilment of the degree of Master of Business Administration from

Kurukshetra University, Kurukshetra

Session- 2007-2008

Under the Supervision of:Mr. Aman Kumar Branch Manager HDFC Bank Yamuna Nagar

Submitted By Rahul verma Roll No- 1217 MBA - 3rd Sem MAIMT Jagadhri

Maharaja Agrasen Institute Of Management & Technology Jagadhri-135003

(Affiliated to Kurukshetra University, Kurukshetra)

PREFACE
No one can understand the importance of training as a part of ongoing process to enrich knowledge and skill and levels of oneself. Management training, however has gained rapid importance only recently. Management was previously considered as an inborn talent but in todays developing world this view has been abandoned. To develop managerial capabilities and to supplement theoretical knowledge with practical experience, the management students are required to go for training in business organisations. I undertook six-week training in HDFC BANK, Yamuna Nagar. Here, I gave a project on the topic Various Insurance schemes provided by HDFC Bank and their Market Analysis. This training report is the knowledge acquired during that practical training.

ACKNOWLEDGEMENT
Concentration, dedication, hard work and application are essential but not the only factor to achieve the desired goals. These must be supplemented by guidance of people to make it a success. Many people have given their previous ideas and invaluable time to enable me to complete this project report. I offer sincere thanks and deep gratitude to Mr. Aman Kumar, Branch Manager for their meaningful guidance encouragement and supervision. I am indeed indebted to Mr. Aman Kumar, Branch Manager for his affectionate attitude and cooperative nature which made, my work over here a memorable one. I am also grateful to Dr. Raj Kumar Goyal, Hony. Director, MAIMT, who was always there to give my spirits a boost. Last but not the least, I would like to thank the Almighty God for his blessings showered on me during the project report.

Sahil Gupta

DECLARATION
I, Sahil Gupta, here by declare that the project report, titled Various Insurance Schemes provided by HDFC BANK and their Market Analysis for the partial fulfilment of the degree of Master of Business Administration from Kurukshetra University, Kurukshetra, is an original work of mine and the data provided in the study is authentic, to the best of my knowledge. This study has not been submitted to any other instead of HDFC BANK LTD. or other university for award or any other degree.

Sahil Gupta

CONTENTS
1. 2. 3. 4. 5. 6. i. ii. iii. 7. i. ii. iii. 8. 9. 10. 11. 12. 13. 14. Company Profile Introduction to Life Insurance Project Profile Significance of the Study Objective of Study Research Methodology Research Design Scope of Study Data Collection Sources Sampling Procedure Sampling Unit Sampling Technique Sample Size Data Analysis & Interpretation Findings Suggestions Conclusion Limitation of the Study Bibliography Annexure

COMPANY PROFILE
HDFC Bank

Type Founded Headquarters

Private 1994 HDFC Bank Ltd., Mumbai, India Banking Insurance Capital Markets and allied industries Loans, Credit Cards, Savings, Investment vehicles, Insurance etc. www.hdfcbank.com

Industry

Products Website

HDFC Bank (NYSE: HDB), one amongst the firsts of the new generation, techsavvy commercial banks of India, was incorporated in August 1994, after the Reserve Bank of India allowed setting up of Banks in the private sector. The Bank was promoted by the Housing Development Finance Corporation Limited, a premier housing finance company (set up in 1977) of India. Net Profit for the year ended March 31, 2009 was Rs. 12837.34 crores. Results of the latest quarter ended June 2009, indicate that the bank continues to grow in a steady manner.

History
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

Branch network
Currently HDFC Bank has a nationwide network of 1,412 branches, 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on an online real-time basis. The bank offers many innovative products & services to individuals, corporate, trusts, governments, partnerships, financial institutions, mutual funds, insurance companies. It is a path breaker in the Indian banking sector. In 2007 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. Though, the official license was given to Centurion Bank of Punjab branches, to continue working as HDFC Bank branches, on May 23, 2008.

Recognition
Over a decade of its operations, HDFC Bank has been recognized, rated and awarded by a number of organizations.

Board Of Directors
Mr. Jagdish Capoor (Chairman) Mr. Aditya Puri (Managing Director) Mr. Keki Mistry Dr. (Mrs.) Amla Samanta Mr. Venkat Rao Gadwal Mr. Anil Ahuja Mr. Vineet Jain Mr. Ranjan Kapoor Mr. Bobby Parikh Mrs. Renu Karnal

Vice President (Legal) & Co. Secretary

Mr. Sanjay Dongre

Auditor

P.C Honsolia & Co. (Chartered Accountant)

Registered Office
HDFC Bank House Senapati Bapat Marg Loveer Parel Mumbai 400013 Tel. No. 56521000 Fax No. 24960739 Web. Site- www.HDFCbank.com Product Range Of HDFC Bank
Product Range of HDFC Bank

Accounts & Deposits

Loans

Cards

Investme nts & Insuranc e Accou-nts & Deposi ts

Forex Services

Access your Bank

Saving Accou nt

Salary Accou nt

Curren t Accou nt

Fixed Deposi ts

Demat Accou nt

Safe Deposi ts Locker s

Loans

Perso nal Loan

Home Loan

Two Wheel er Loan

Educa tion Loan

Loan Agains t Proper ty

Tract or Loan

Gold Loan

Cards

Debit cards

Credit Cards

Prepaid Card

Investm ent & Insuranc e

General Mutual Insuranc & Health Fund e Insuranc e

Bonds

Equities Knowled & ge Darivati Center ves

Mudra Gold Bar

Forex services

Product & Services

Trade Services

Forex Limited

RBI Guidelin e

Forex services Branch Locator

Access Your Bank

ATM

Mobile Banking

Phone Banking

Net Banking

Branch Network

Email Stateme-nt

Awards & Accolades

HDFC Bank began operations in 1995 with a simple mission to be a worldclass Indian Bank. We realised that only a single-minded focus on product quality and service excellence would help us to get there. Today, we are proud to say that we are well on our way towards that goal. It is extremely gratifying that our efforts towards providing customer convenience have been recognised both nationally & internationally. In 2004, HDFC Bank was named Best Overall Local/ Domestic BankIndia in the Corporate Cash Management Poll conducted by the Hong Kong based Asia money magazine.

In 2003, Forbes Global again named us in its ranking of Best Under a Billion, 200 Best Small Companies for 2003 Hong Kong- based Finance Asia Magazine rated us Best Domestic Commercial Bank in India in 1999, 2000 & 2001 respectively & Best Local Bank in India in 2002 & 2003. HDFC Bank has been named Best Domestic Bank in India Region in The Asset Triple A Country Awards 2003. Leading Indian Business Magazine Business Today in a survey rated us Best Private Sector Bank in India in 1999 & Best Bank in India in 2003 NASSCOM and economictimes.com have named us the Best IT User in Banking at the IT Users Awards 2003. Leading Personal Finance Magazine in India Outlook Money named HDFC Bank the Best Bank in the Private Sector for the year 2003. Leading Business Newspaper The Financial Express named HDFC Bank the Best New Private Sector Bank 2003 in the FE-Ernst & Young Best Banks Survey 2003. There have been some other proud moments as well:- London- based Euro money Magazine gave us the award for Best Bank- India in 1999, Best Domestic Bank in India in 2000, and Best Bank in India in 2001 & 2002.

Asia money Magazine has named us Best Commercial Bank in India 2002. The Economic Times has conferred on us The Economic Times Awards for Corporate Excellence as the Emerging Company of the Year 2000-01. For our use of information technology we have been recognized as a Computerized Honors Laureate and awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Our technology initiative has been included has been included as a case study their online global archives.

 The Economic Times has conferred on us The Economic Times Awards for Corporate Excellence as the Emerging Company of the year 2000-01. Leading Indian business magazine Business India named us Indias Best Bank in 2000. In the year 2000, leading financial magazine Forbes Global named us in its list of The 300 Best Small Companies in the world and as one of the 20 for 2001 best small company in the world. We are aware that all these awards are mere milestones in the continuing, never-ending journey of providing excellent service to our customers. We are confident, however, that with your feedback and support, we will be able to maintain and improve our services.

HDFC Future
HDFC has always been market-oriented and dynamic with respect to resource mobilisation as well as its lending programme. This renders it more than capable to meet the new challenges that have emerged. Over the years, HDFC has developed a vast client base of borrowers, depositors, shareholders and agents, and it hopes to capitalise on this loyal and satisfied client base for future growth. Internal systems have been developed to be robust and agile, to take into account changes in the volatile external environment. HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialised financial services. Each institution is being fine-tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and service.

Brief Profile of HDFC Standard Life Insurance

I. BACKGROUND
a.

Housing Finance Sector

Against the milieu of rapid urbanization & a changing socio-economic scenario, the demand for housing has grown explosively. The importance of the housing sector in the economy can be illustrated by a few key statistics. According to the National Building Organization (NBO), the total demand for housing is

estimated at 2 million units per year & the total housing shortfall is estimated to be 19.4 million units, of which 12.76 million units is from rural areas & 6.64 million units from urban areas. The housing industry is the second largest employment generator in the country. It is estimated that the budgeted 2 million units would lead to the creation of an additional 10 million man-years of direct employment & another 15 million man-years of indirect employment. Having identified housing as a priority area in the Ninth Five Year Plan(19972002), the National Housing Policy has envisaged an investment target of Rs. 1500 billion for this sector. In order to achieve this investment target, the Government needs to make low cost funds easily available & enforce legal & regulatory reforms.

b. Background
HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest housing finance institution and Standard Life Assurance Company, Europe's largest mutual life company. It was the first life insurance company to be granted a certificate of registration by the IRDA on the 23rd of October 2000. Standard Life, UK was founded in 1825 and has experience of over 180 years. Companies. The company is rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's (Aa2). HDFC Standard Life's cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-Nov 2005. So far the company has covered over 11,00,000 individuals and has declared 5th consecutive bonus in as many years for its 'with profit' policyholders.

c. Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic & professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

d. Organizational Goals
HDFCs main goals are to:1.

Develop close relationship with individual households,

2. Maintain its position as the premier housing finance institution in the country, 3. Transform ideas into viable and creative solutions, 4. Provide consistently high returns to shareholders, and 5. To grow through diversification by leveraging off the existing client base.

II.

THE PARTNERSHIP:--

HDFC Standard Life Insurance Ltd. is a joint venture between HDFC and Standard Life Assurance Company. HDFC is Indias largest Housing Finance Institution and Standard Life Assurance Company is Europes largest mutual life company.

The Partnership

Discussions commenced in January 1995 Joint Venture Agreement signed in October 1995 Joint Venture Agreement renewed in October 1998 Two Years time spent in doing Market Research Life Insurance project team established in January 2000 at Mumbai th Company officially incorporated 14 August 2000 First private sector life insurance company to be a Certificate of Registration: 23rd October, 2000 th Sales commenced on 12 December, 2000 Hold the distinction of being the only new life insurance company to have declared for all years of operation. For superlative performance in life insurance sector, HDFC SL has been rated as the best new life insurer- 2003.

Corporate Office:
2nd Floor, 'A' Wing Trade Star Building Junction of Kondivita & M.V.Road Andheri Kurla Road Andheri East Mumbai 400 093 Tel: 5551 6666, 2822 0055

Registered Office:
Ramon House H T Parekh Marg, 169, Back bay Reclamation Church gate, Mumbai - 400020 Tel: 2820282, 2836255 Visit HDFC Standard Life on: www.hdfcinsurance.com

INSURANCE COMPANIES IN INDIA

Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. These companies have come up with innovative and flexible insutrance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the Lic to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer. Major Life insurance Companies in India are:

Aviva Life Insurance Bajaj Allianz Birla S un Life Insurance HDFC Standard Life Insurance ICICI Prudential ING Vysya Kotak Mahindra LIC Max New York Life Insurance Metlife India Insurance Reliance Life Insurance SBI Life Insurance Shriram Life Insurance Tata AIG Life Insurance

III. OUR MISSION

We aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market; rather it is a combination of several things like: --i. ii. iii. iv. v. Customer service of the highest order Value for money for customer Professionalism products to cater to different needs of different customers Use of technology to improve service standards Increasing market share

Introduction To Insurance

WHAT IS INSURANCE?

Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with protection of economic value of asset. All of us are interested in the creation of assets because: 1. 2. 3. 4. All assets have value. They yield income to the owner. They meet some other needs of the owner. They may provide satisfaction of some needs and also yield income to the owner.

Under the life insurance, the insurance company guarantees to pay, in consideration of a regular premium a certain sum of money to the policy holder on his attaining a certain age, or to his nominee on his death, whichever is earlier. Life insurance is also known as Assurance because sooner or later the amount of the policy must be paid.

DEFINITION

In the words of D.S. Hansel, insurance is accumulated contributions of all parties participating in the scheme

BRIEF HISTORY OF THE INSURANCE

The Beginning
The beginning of insurance business is traced to the city of London. It started with the marine business. Marine traders, who used together at Lloyds coffee house in London, agreed to share losses to goods during transportation by ship. Marine related losses included:-i. ii. Loss of ship by sinking due to bad weather in high seas. Goods in transit by ship robbed by sea pirates.

iii. iv.

Loss of or damage to the goods in transit by ship due to bad weather in high seas. The first insurance policy was issued in England in 1583

PURPOSE AND NEED FOR INSURANCE

I. Assets are likely to be destroyed or made non-functional due to accidental occurrences called perils. Assets can, therefore, be insured. II. Possibility of damage to assets caused by a peril is the risk that asset is exposed to. III. Risk means uncertainty or unpredictability about future loss or damage, which may or may not happen. This refers to the losses, which may happen suddenly and unexpectedly. IV. This is because of uncertainty about the risk that insurance plays a role. V. Insurance becomes relevant only if there are uncertainties of occurrence of event leading to loss/es. Insurance is done against the contingency of the happening of such events. VI. No uncertainty-No Insurance.

MECHANISM OF INSURANCE
I. The concept of insurance is that-People exposed to the same risk come together and agree to share a loss collectively if any one of their members suffer from that risk. II. The insurance companies play the vital role of implementing this concept. They try bringing together people exposed to the similar risk; they collect members contribution in advance in the shape of premiums and create a fund out of which the losses are paid. III. In the event of breadwinners death, the familys income stops suddenly. IV. The familys income may also stop on retirement of the breadwinner. V. Life insurance covers the above contingencies and provides relief to the family in the event of the death of retirement of the breadwinner. VI. Variable needs for life insurance can be- Providing financial security to the family, provision for childrens education, marriage, etc. Postretirement income for self and dependents, special needs like Medical expenses, etc.

WHY LIFE INSURANCE

Life Insurance has come a long way from the earlier days when it was originally conceived as a risk covering medium for a short period of time, covering temporary risk situations, such as sea voyages. As life insurance became more established, it was realized what a useful tool it was for a number of situations, including:--

a) Temporary needs / threats:

The original purpose of life insurance remains an important element, namely providing for replacement of income on death etc
b)

Regular Savings:

Providing for ones family and oneself, as a medium to long term exercise ( through a series of regular payment of premiums ). This has become more relevant in recent times as people seek financial independent for their family.

c) Investment:
It is the building up of savings, to meet the sudden needs of the family and to cope with inflation. It is a process of saving for the future needs and to provide for risk cover.

d) Retirement:
Provision for latter years becomes increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in ones old age.

ADVANTAGES OF LIFE INSURANCE

Secured targeted saving a uniqueness
Life insurance is not merely an investment or a saving device it is much more than that. In an other investment or saving avenues, bank deposits, savings certificates or mutual funds or shares and stocks etc., amount of funds available at any time will not be more than amount saved, appreciation or interest earned till then. In life insurance, the amount available is the one

that one wished to have at the end of savings period which may range upto 30 or even more years. Life insurance has advantages over the other form of savings: Facility of nomination and assignment makes the claim settlement easy on death. Life insurance involves compulsory savings. Tax benefits- on premium paid as well as the amount received by way of claim. Loans can be against a life insurance policy.

LIFE INSURANCE IN INDIA

I) INTRODUCTION
With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 percent to the countrys GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. Since then the insurance industry has gone through many sea changes. LIC started facing competitions from many new companies which were threatening the existence of LIC. Since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.
II)

A Brief History

The origin of insurance is very old. The time when we were not even born; man has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The insurance came to India

from UK; with the establishment of the Oriental Life Insurance Corporation in 1818. The Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the central government took over these companies and as a result the LIC was formed. Since the LIC has worked towards spreading life insurance and building a wide network across the length and the breath of the country. After the liberalization the entrance of foreign players has added to the competition in the market. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. In 1957 General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. In 1972 The General Insurance Business (Nationalization ) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. It was after this that 107 insurers amalgamated and grouped into 4 companies viz, The National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd., The United India Insurance Company Ltd. GIC incorporated as a company. and

IRDA
IRDA-Insurance Regulatory Development Body
It is like Reserve Bank of India (RBI) which is the father of all banks. All the banks are regulated by RBI and have to be maintained according to it and cannot go beyond its rules and regulations. Same is the case with IRDA, it is the regulating body over all the existing insurance companies. It checks the proper working of all the

insurance companies and also checks that if the interest of the customer is secured. IRDA Act passed in 1999 to allow and control Private Insurance Business. IRDA as a Regulating Authority established by the Government of India in 2000 to protect the interest of policyholders and to regulate and promote orderly growth of Insurance Industry. IRDA registers a company only after satisfying itself with sound financial condition, general character of management, capital structure etc. of the promoters. Every insurance company is to deposit 1% of Total Gross Premium in RBI (maximum 10 Crores) every year. This sum is solely for meeting liabilities arising out of policies issued by the company. Investment of funds is regulated by IRDA Act- Investment to be made only in Central and State Government Securities (minimum 50%) and balanced in approved Investment. Actuarial variation is to be done every year to see the Financial Health of the Company. IRDA conducts surprise inspection and Audit. Central Government can appoint an administrator of the company if anything goes wrong. Submission of returns to the Central Government every year by the company. A Life Insurance Company can not be wound up voluntarily and escape policy liability.

STUDY OF VARIOUS PRODUCTS OFFERED BY HDFC STANDARD LIFE INSURANCE

INSURANCE SOLUTIONS FOR INDIVIDUALS
HDFC Standard Life Insurance offers a range of innovative, customer- centric products that meets the needs of every life stage. Its ten products can be enhanced with up to 4 riders, to create customized solutions for each policyholder. Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range of products and invites you to choose the one that suits you best

PLANS
A.
1. Endowment Assurance Plan 2. Childrens Plan 3. Unit Linked Young Star Plan 4. Money Back Plan

FEATURES
Savings Plans
Life Insurance with savings & profit. Financial support to family. In case of death of the life assured within term policy. OR Payment of lump sum on maturity. Financial security to the child. Lump sum on maturity. Flexible plan- three options to choose from. Financial security for your child with choice of investment funds. Life Insurance with Savings & Profits. Cash payment of lump sum at 5 years interval. On maturity, payment of lump sum.

B.

Investment Plans
Investment with Life Insurance with profit. With-drawl of money on any 10th , 15th 5 years term. In case of death nominee gets the lump sum and bonuses.

1. Single Premium Whole Life Insurance Plan (SPWL)

C.
1. Term Assurance Plan

Protection Plans

Life Insurance at an affordable price. No profit plan. Sum assured is payable in case of death. It is a risk cover plan. Life Insurance customized for home loans. No profit plan. Lump sum 2. Loan Cover Term Assurance amount decreases the percentage of sum assured. Risk cover plan. No Plan benefits payable on survival till the term end.

D.
1. Personal Pension Plan

Retirement Plan
25% share of private life insurance company business. Savings for retirement. With profits. A savings contract. Income for life after retirement. Lump sum plus Bonuses on retirement. Retirement Savings with a choice of investment funds..

2. Unit Linked Pension Plan

ADDITIONAL BENEFITS:-CI ADB ATB ASA WOP

--Critical Illness --Accidental Death Benefit --Additional Term Benefit --Accelerated Sum Assured --Waiver Of Premium

A. SAVING PLAN
1. ENDOWMENT ASSURANCE PLAN
a. What is an Endowment Assurance Plan?

It is participating (with profits) insurance plan that offers the following features: Provides financial support to the family by way of a lump sum payment in case of the unfortunate death of the life assured within the term of the policy. Provide a lump sum payment to the life assured on survival up to maturity. The lump sum mentioned is the basic sum assured plus any bonus additions.

b. Benefits
This plan is a with profits saving plan and is well suited for saving money for your long term financial goals. This plan also helps to provide for the needs of your family in your absence by paying out a lump sum in the event of your unfortunate death during the term of policy. What optional benefits are available with this plan? You can add the following optical benefits to customize your policy to suit your needs. Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any of the 6 common critical illnesses (1). The sum assured is payable if you survive for 30 years after the date of the claim. Once such a claim has been met, further Critical Illness benefit is payable. However, your basic policy Term Benefit (ATB) provides an additional amount equal to the sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental Death Benefit (ADA) provides an additional amount, equal to the sum assured chosen under this optical benefit, in case of your unfortunate death. Due to accident, & Within 90 days of the accident Waiver Of Premium (WOP) benefit waives the premium for you in case become totally disabled. The waiver is applicable during the period of total disability. All optional benefit must be selected at the outset of your plan. (1) Cancer, Coronary Artery Bypass Grafts Surgery, Heart Attack, Kidney / Rental Failure, Major Organ Transplant (as recipient) & Stroke. Does Endowment Assurance Plan offer you tax benefit? Tax benefits described in section 88, section 80D** & section 10 (10D) of the income tax act are applicable.
c.

Eligibility

This plan can be taken on a single life basis or a joint life (first claim) basis. This eligibility ages are as follows.

Basic Policy

Basic Policy with Optional Benefits

CI
Min. age at entry Max. age at entry Max. age at expiry 12 60 75 18 55 70

ATB
18 60 75

ADA
18 55 65

WOP
18 50 60

Min. Term: 10 years

Max. Term: 30 years

2. CHILDERNS PLAN
Childrens Plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in the future, even in case of the insured parents unfortunate death during the policy term. Childrens Plan receives simple reversionary bonuses, which are usually added annually. This is a flexible plan with 3 option for you to choose from, depending on your requirements. The details of these options are explained in the next section. The option that is available with this plan.

Option Maturity Benefit Plan Accelerated Benefit Plan

On the death of the insured parent during the policy term Future premiums waived and the policy continues till maturity Sum assured + bonuses paid and the policy stops

On Maturity Sum paid assured bonuses

On the survival of the insured parent to the maturity date, sum assured+ bonuses paid

The childrens plans offer you tax benefits. The premium you pay will be eligible for tax relief under section 88 of the Income Tax Act, 1961. The benefits received under the policy are eligible for tax relief under section 10(810D) of the Income Tax Act, 1961.

a. Eligibility

The eligibility ages for the life assured under the plan are as follows:Min. age at entry Max. age at entry Max. age at maturity Min. Term: 10years 18years 60years 75years Max. Term: 25years

b. The Payment Options

You have the choice of paying the premium either in yearly, half yearly or quarterly models, depending on your convenience.

c. Indicative Premium
Child Current Age: 1year Age of Parents(Years) 30 35 40

Maturity Benefit Plan (Rs.) 4,658 4,684 4,731

Accelerated Benefits Plan 4,835 4,929 5,098

Double Benefits Plan (Rs.) 4,937 5,078 5,321

The above quoted premiums are for a male life assured paying annual premiums for a Rs. 1 Lakh sum assured policy, with the policy maturing the child is 21 years old. The premium quoted above may vary as a result of underwriting. Age of Maturity Benefit Accelerated Double Benefits Parents(years) Plan (Rs.) Benefits Plan Plan (Rs.) 30 7,039 7,142 7,282 35 7,063 7,169 7,390 40 7,107 7,300 7,593 The above quoted premiums are for a male life assured paying annual premium for a Rs. 1Lakh sum assured policy, with the policy maturing when the child is 21 years old. The premium quoted above may vary as a result of underwriting. HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC, Indias largest housing finance institution and Standard Life Assurance Company, Europes largest mutual life company. HDFC manages Rs. 26,300 crore in assets and standard life manages over US $100 billion in assets. Both the promoters are well known for their ethical dealings, their financial

strength and their commitment to be a long term player in the life insurance industry- all important factors to consider when choosing your insurer.

3. MONEY BACK PLAN

It is a participating with profits insurance plan that offers the following features:-Payment of cash lump sum, each of which is a proportion of the basic sum assured at 5 year intervals during the term of the policy. (Please refer to the table given below). On survival up to maturity a payment equal to the basic sum assured + any bonus additions less the cash lump sums paid earlier is provided. In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured + any bonus additions is provided. This is above the earlier payouts.

a. Schedule of Cash Lump Sum

(As a basic sum assured) Total Policy Term 10 15 20 25 30 5 40% 30% 25% 20% 15%

Number of years from policy date

10 30% 25% 20% 15% 15 25% 20% 15% 20 25

20% 15%

15%

b. Benefit To Boy
This plan helps you for future anticipated expenses by paying periodic cash lump sums to you at regular intervals. This plan also helps to provide for the needs of your family in your absence by paying them the basic sum assured plus any bonus additions in the event of your unfortunate death during the term of the policy.
c.

Optional benefits are available with the plan

You can add the following optional benefits to customize your policy to suit your needs:--

 Critical Illness Benefits provide an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any of the 6 common critical illness(1). The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, no further critical illness benefit is payable. However, your basic policy continues even after we pay a claim on this benefit. Additional term benefit provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental death benefit provides an additional amount equal to the basic sum assured in case you die: Due to accident, & Within 90 days of the accident Waiver Of Premium (WOP) benefit waives the premium for you in case become totally disabled. The waiver is applicable during the period of total disability. All optional benefit must be selected at the outset of your plan. (1) Cancer, Coronary Artery Bypass Grafts Surgery, Heart Attack, Kidney / Rental Failure, Major Organ Transplant (as recipient) & Stroke.

d. Money Back Plan & Tax Benefits

Tax benefits described in section 88, section 80D** & section 10 (10D) of the income tax act are applicable. **Applicable to premiums paid for CI & WOP.

e. Eligibility
This plan can be taken on a single life basis or a joint life (first claim) basis. This eligibility ages are as follows.

Basic Policy
Min. age at entry Max. age at entry Max. age at expiry 12 60 75

Basic Policy with Optional Benefits CI

18 55 70

ATB
18 60 75

ADA
18 55 65

WOP
50 60

Min. Term: 10 years

Max. Term: 30 years

f. The Payment Options

You have the choice of paying the premium either in yearly, half yearly or quarterly models, depending on your convenience.

g. Indicative Premium
Age (Yrs.) 20 30 40 50 Basic Policy Premium(Rs.) 7491 7585 7925 8815 Additional Premium for Optional Benefits (Rs.) CI 304 442 925 1890 ATB 322 388 641 1357 ADB 136 144 156 Not Available WOP 352 443 672 Not Available

B. INVESTMENT PLAN
1. SINGLE PREMIUM WHOLE of LIFE INSURANCE PLAN
Single premium whole of life insurance plan is well suited to meet your long term investment needs. This participating (with profits) plan offers you the following benefits:--

A SOUND INVESTMENT: Your money will be invested in your with

profits funds. The fund aims to provide secure & stable long term growth. Normally, we will declare a compound reversionary bonus for your policy every year and add it to your policy on its anniversary. In addition, on death surrender or on the guaranteed dates, a terminal bonus might be payable. You pay a single premium and the policy will pay you a lump sum. FLEXIBILITY of TERM: Even after choosing your policy, you can decide on the policy term. For 4 weeks after any of the 10th, 15th, 20th & subsequent 5year anniversaries, you can choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been received, your policy will cease. SURRENDER VALUE: You can terminate the policy and time, after it has been force at least 6 months, & receive a surrender value. IN CASE OF UNFORTUNATE DEATH: Your nominee gets the sum assured secured by your premium, plus any attaching bonuses. NO MEDICAL REQURIEMENTS: We do not require you to undergo any medical test for this plan.

a. ELIGIBILITY
The eligibility ages as follows: Min. age at entry : 18years Max. age at entry : 70years You can buy the product on a single life basis.

b. PAYMENT OPTIONS
Cash, cheque or demand draft can pay a single premium.

c. INDICATIVE PREMIUM
Min. sum assured : 25,000 Max. sum assured : 5,00,000 Premium Rs. 950 per thousands of sum assured.

C. PROTECTION PLAN
1. TERM ASSURANCE PLAN
Under this plan a sum assured is payable in case of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to ones family in the unfortunate event of ones death. Since this

non-participating (without profits) plan is a pure risk cover plan, no benefits are payable on survival to the end of the term of the policy.

a. BENEFITS
If you have a family you care for, you should consider what would happened in case of your unfortunate death. The emotional void cannot be filled, but financial insecurity can be avoided. By taking this affordable life insurance plan, you can provide for the well-being of your family in case of your unfortunate death. This plan comes to you at a minimal cost & is well-suited for the value-conscious customer. The optional benefits are available with this plan? You can add the following optional benefits to customize your policy to suit your needs. Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any of the 6 common critical illnesses (1). The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, further Critical Illness benefit is payable. However, your basic policy continues even after we pay a claim on this benefit. Accidental Death Benefit (ADA) provides an additional amount, equal to the sum assured chosen under this optical benefit, in case of your unfortunate death.

b. TAX BENEFITS
Tax benefits described in section 88, section 80D** & section 10 (10D) of the income tax act are applicable. **Applicable to premiums paid for CI & ASA.

c. ELIGIBILITY
This plan can be taken on a single life basis or a joint life (first claim) basis. This eligibility ages are as follows.

Min. age at entry Max. age at entry Max. age at expiry

Basic Policy 18 60 65

Basic Policy with Optional Benefits 18 55 65

d. PAYMENT OPTIONS
You have the choice of paying the premium either in yearly, half yearly or quarterly models, depending on your convenience.

e. INDICATIVE PREMIUM
Age of Life Insured 20years 25years 30years 35years 40years Premium (Rs.) 862 914 979 1074 1473 1566 1662 1782 1956 2688 Single Premium (Rs.) 11970 13110 15726 18216 26400

2. LOAN COVER TERM ASSURANCE PLAN

This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured. As the outstanding loan decreases as per the loan scheme, the cover under the policy decreases as per the policy schedule. Since this is non-participating (without profits) pure risk cover plan, no benefits are payable on survival to the end of the term of the policy.

a. BENEFITS
If you are taking a loan to buy for your family, this plan can help you to ensure that lifes uncertainties don not effect their shelter. It is an affordable plan that has been designed to help your family repay the outstanding loan in case of your unfortunate death.

b. ELIGIBILITY
This plan can be taken on a single life basis or a joint life (first claim) basis. This eligibility ages are as follows.

Basic

Policy with any Optional Benefits

Min. age at entry Max. age at entry Max. age at expiry

Policy 18 55* 65

18 55 65

*60years for a single premium policy

c. TERM ASSURANCE PLAN TAX BENEFITS

Tax benefits described in section 88, section 80D** & section 10 (10D) of the income tax act are applicable. **Applicable to premiums paid for CI & ASA.
Age of life insured 30 years 35 years 40 years 45 years 50 years Annual Premiums** (Rs.P.A) Term of Loan (in years) 10 15 1592 1757 2114 2782 3955 1634 1799 2163 2915 4175 Single Premium (Rs.) Term of Loan (in years) 10 15 5781 6324 8515 10636 15921 7993 9152 12991 16636 25038

d. THE PAYMENT OPTION

You have the choice of paying the premium either in yearly, half yearly or quarterly models, depending on your convenience.

D. RETIREMENT PLAN
1. PERSONAL PENSION PLAN
Before you enter into any financial contract, it is important that you understand what the product is, how it works, the risk involved and what a

decision to buy could mean for you. We recommend that you read this document before you purchase a policy form HDFC Standard life Insurance Company.
a.

PURPOSE

The policy is basically a savings contract, which is designed to provide an income for life from retirement, with an option to take the lump sum elsewhere to buy annuity, provided it is permitted by the prevailing regulations. Your commitment: you agree to pay a single premium or level premiums with installment due every quarter, half- year or year throughout the deferment period of the policy, after which you will start receiving your pension.
b.

RISK FACTOR

If you cease to pay premiums we may pay a surrender value. This will determined at our discretion. If any of the information which you provide is incorrect, we reserve the right to vary the benefits which may be payable and further, if there has been non- disclosure of a material fact then we may treat your policy as void. We will not pay out if a claim arises from an excluded cause of death. Future bonuses are not guaranteed. They are dependent on our future experience. The principal elements of experience are our investment performance and expenses.
c.

PREMIUM PAYMENT

You can pay either a single premium or pay premiums in quarterly, half-yearly or annual form by cheque, in cash or by bank draft.

d. BASIC BENEFITS PAID

Your basic benefits will be paid by cheque. You cannot increase your benefits or term under the policy. To increase your benefits, you would need a new policy. You should contact your personal financial consultant. You may be able to decrease the benefits. The terms for so doing will be at our discretion.

e. ELIGIBILITY
The age and term limits for taking out a personal pension plan are;
Minimum Terms RPI 10 SP2 5 Maximum Terms RP 40 SP 15 Minimum age at entry RP 18 SP 35 Maximum Minimum Maximum age at age at age at entry retirement retirement 60 50 70

2. UNIT LINKED PENSION PLAN

Our unit linked pension policy can greatly help you to meet your financial need after retirement. It allows you build up a retirement fund for the future and during that time, give you the knowledge that your family will receive a cash lump sum to provide for them in the event of your unfortunate demise. It is important that you understand what the HDFC unit linked pension plan is, how it works, the risk involved and what a decision to buy could mean for you. We recommend that you read this document before you purchase a policy form HDFC Standard life Insurance Company. The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On vesting the value of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 1,000.

a. PREMIUMS
You agree to pay level premiums regularly, either quarterly, half yearly or annually, throughout the term of the policy or a single premium at the start of the policy. The minimum premium amount for regular mode is Rs. 10,000 each year and for single premium, it is Rs. 25,000.

b. INVESTMENT FUNDS INVESTED

The policy is fully unitized with a range of funds to match your needs and approach to risk. Each investment fund is composed of units. All the units in a fund are identical. You can choose from the following funds.

c. LIQUID FUND
The liquid funds invest 100% bank deposit and high quality short-term money market instrument. The fund is designed to be cash secure and has a very low level of risk; however unit prices may occasionally go down due to the use of short-term money market instruments.

d. SECURED MANAGED
The secure managed fund invests 100% in Government securities and Bonds issued by companies or other bodies with a high credit standing, however a small amount of working capital may be invested in cash to facilitate the dayto-day running of the fund. This fund has a low level or risk but unit prices may still go up or down.

e. DEFENSIVE MANAGED
15% to 30% of the defensive managed fund will be invested in high quality Indian equities. The remainder will be invested in Government securities and Bonds issued by companies or other bodies with a high credit standing. In addition, a small amount of working capital may be invested in cash to facilitate the day- to-day running of the fund. The fund has a moderate level of risk with the opportunity to earn higher returns in the long term from some equity investment. Unit prices may go up or down.

f. ELIGIBILITY
Regular premium version Single premium version Minimum Maximum Min. age Term Term at entry 10 40 18 5 40 18 Max. age Min. age Max. age at entry at vesting at vesting 60 50 70 65 50 70

SIGNIFICANCE OF THE STUDY

Life Insurance is universally acknowledge to be an institution which eliminates risk, substitute certainty and comes to the timely aid of the family in the unfortunate event of death of the bread wind by & large. Life Insurance is civilization partial solution to the problems caused by death. Customers are now looking at insurance as complete financial solution offering stable returns coupled with the protection. Companies will need to constantly innovate in terms of product development to meet the changing consumer needs. This will provide valuable insight to the market on the level of brand consciousness among respondents and their awareness towards various life insurance plans. This knowledge would enable the company to devise the marketing strategies based on the findings. Understanding the customer better will enable the company to design appropriate product, determine price correctly and increase profitability.

OBJECTIVES OF THE STUDY

To study the awareness of the respondents about HDFC SLI and its plans.

To study the most preferred plan of the HDFC SLI and its plans.

To study the satisfaction level of the respondents with the company plans.

RESEARCH METHODOLOGY
INRODUCTION
This chapter focuses on the methodology & the techniques used for the collection, classification & tabulation of data. It sheds light on the research problem, the objective of study & its limitations. The later part of this chapter explain the manner in which the data is collected, classified, tabulated & so as to reach on conclusive results. It is written game plan for concluding research. There for into design a research problem it is necessary to design a research methodology as the same may differ from problem to problem. To carry out this study descriptive research has been conducted to explore the hidden the fact about the insurance plans provided by the life insurance companies. Exploratory study useful to narrow the scope of the study. Under this study, survey method is employed to go inside the problems of the respondents.

1. RESEARCH DESIGN
To carry out this study sample survey method has been employed. In this method, information is gathered from a sample of people using a questionnaire. This method is very useful; in studying the relationship among different attitude and to explore the problems that can not be treated by experimental method.

2. SCOPE OF STUDY
The scope has been limited to sample size of 100 respondents due to time and cost constraints. However, the area of study with respect to geographical city of Yamuna Nagar and Jagadhri.

3. COLLECTION of DATA SOURCES

After the research problem has been defined and the research design has been chalked out, the task of data collection begins. Data can be collected from either primary or secondary source. In this study although the data was collected mainly through primary sources, it was supplemented by secondary data. For the collection of primary data, the respondents were contacted personally and the tool for gathering the data was the questionnaire and tally calling.

SAMPLING PROCEDURE
This refers to the procedure by which the respondent should be chosen. In order to obtain a representative sample, convenience-sampling method has been used in this study without nay stratification to obtain a uniform size of respondents.
1.

SAMPLING UNIT

The unit refers to the definitions of the particular person who is to be survey. In this study the unit is the respondent, which is operating in Yamuna Nagar and Jagadhri.

2. SELECTION OF SAMPLE
Sample can ideally be selected as percentage of total population of respondents to increase the accuracy and reliability of the sample. Hence a sample 100 respondents was appropriate to keep sample accurate as well as manageable.
3.

SAMPLING PLAN

The following factors have to be decided with in the scope of the sampling. SAMPLING SIZE This refers to the procedure by which we describe the total number of respondents from whom the information is to be collected. Here I have selected 100 respondents.

FORMATION OF QUESTIONNAIRE
Quite often the questionnaire is considered as the HEART of a survey operation. Hence, it should be carefully constructed. In the words of GOOD & HATT, In general, the word questionnaire refers to a device for securing answer to questions by using a form which the respondent fills in himself. All the questions in a questionnaire are framed with a specific objective in mind and are placed in logical, sequential order. The questionnaire framed for the purpose of the study consists of a limited number of questions placed in a logical order. The questions were framed keeping in mind the educational and social background of the companies dealers. The questions were both open and close ended as well as multiple choices.

CLASSIFICATION of DATA
It refers to the process of arranging data into homogenous classes. Subsequent to the collection of data, the results were sorted out and arranged in different categories.

GRAPHICAL ANALYSIS
For presently the data in an organized form graphic method has been use i.e. the data is mainly represented in the form of pie-graphs etc.

Q1 Who is your insurer?

Insurer LIC HDFC ICICI No. of Respondents 68 20 12
No. of Respondents

%age 68 20 12

12% 20%

LIC HDFC ICICI 68%

Q2 While taking insurance plan how are your rate that following?
Choice Tax Benefits Savings Risk Coverage No. of Respondents 15 60 25 %age 15 60 25

No. of Respondents

25%

15%

Tax Benefits Savings Risk Coverage

60%

Q3 Give choice you would prefer to invest in?

Choice Insurance FD NSS/NCC Post Office Shares No. of Respondents 43 33 0 24 0 %age 43 33 0 24 0

No. of Respondents

24% 0%

0% 43% Insurance FD NSS/NCC Post Office Shares

33%

Q4 Who is your financial consultant?

Option Family Agent Friend/ relative Professional No. of Respondents 10 65 25 %age 10 65 25

No. of Respondents

25%

10%

Family Agent Friend/ relative Professional

65%

Q5 Should life insurance be made compulsory?

Response Yes No No. of Respondents 57 43 %age 57 43

No. of Respondents

43% Yes No 57%

Q6 Are you aware with these plans?

Plans Personal Pension Loan Cover Assurance Plan Money Back Plan Children Plan Endowment Plan No. of Respondents 21 5 24 39 11 %age 21 5 24 39 11

No. of Respondents

11%

21% Personal Pension 5% Loan Cover Assurance Plan Money Back Plan Children Plan 24% Endowment Plan

39%

Q7 What is your occupation?

Occupation Private Job Self Employee Govt. Job No. of Respondents 32 31 37
No. of Respondents

%age 32 31 37

37%

32% Private Job Self Employee Govt. Job

31%

Q8 Are you satisfied with services of your insurance company?

Response Yes No No. of Respondents 79 21
No. of Respondents

%age 79 21

21%

Yes No

79%

Q9 Which plan you have taken?

Plan Money Back Plan Pension Plan Endowment Plan Children Plan No. of Respondents 24 19 15 42 %age 24 19 15 42

No. of Respondents

24% 42% Money Back Plan Pension Plan Endowment Plan Children Plan 19% 15%

Q10 How much of your income would you like to invest in?
Income 1000-5000 5000-10000 10000-20000 20000 above No. of Respondents 46 30 21 3
No. of Respondents

%age 46 30 21 3

3% 21% 46% 1000-5000 5000-10000 10000-20000 20000 above 30%

FINDINGS
1. As per the study we find that 68% people prefer LIC, 20% prefer HDFC Standard Life and 12% people prefer ICICI insurance. 2. By the study we come to know that maximum people are looking for savings then looking for risk coverage. 3. Where as we come to know that savings and risk coverage are the main criteria then the company should look these benefits. 4. Friends 65% are the best resource for the financial constancy then high status family are talking about professional qualified person 25% then respective family agent 10% the resource. 5. People are not as much aware about life insurance factors. So, only 57% people are agree with necessity of life insurance and 43% simply refuses the requirement of life insurance. 6. People are only crusty about Children Plan 39%, Money Back Plan 24%, Personal Plan 21%, Endowment Plan 11% and Loan Cover Assurance Plan 5% are same important. 7. People are the same worthy being a customer good that 79% people are satisfied but still rest 21% are same important which should be satisfied later on by providing them to the best services. 8. We found that maximum people preferring childrens plan, then money back plan then personal pension plan then endowment plan and then loan assurance plan.

SUGGESTIONS
Lots of potential in rural area. They have no knowledge regarding private companies. Companys motto should be to make them aware about their product. Awareness of customer is very low in India. Even educated person are ignorant about various products of insurance. Company should have make endeavour in this context like advertisement. Give assurance to people that they will go anywhere taking their money, because that is regulated by IRDA and back up by RBI. Company should provide more benefits with their products like major surgical benefits and income benefits. Companies should open customer service points in rural areas also. Company should advertise its plans in Local News Papers to attract the rural market.

CONCLUSION
HDFC Standards Life Insurance Ltd. is one of the best private insurance companies. Facilities provided by HDFC SLI all are advanced. HDFC SLI and HDFC Bank has good market image and thus attract more customers. Popular product: Children Plan People Scheme: Money Back Plan Popular Direct Banking Channel: ATM Causes of dissatisfaction for not using any of DBC unawareness and lack of knowledge. Promotional Efforts:- Canopies Tele-Calling Marketing Executives

LIMITATIONS OF THE STUDY

The first and foremost limitations was time constraints was only few days but still efforts have been made to put the picture as clear as possible. 2. The sample size is only 100 respondents, so the sample may not be truly representative of the population. 3. Samples were selected as per convenience so errors are bound to creep in the study.
1.

BIBLIOGRAPHY
1.

www.hdfcbank.com www.hdfc.com www.hdfcsli.com www.hdfcstandardlifeinsurance.com www.google.com

2.

3.

4.

5.

QUESTIONNAIRE
Name Age & Sex Occupation Contact No. : : : : ICICI

Q1 Who is your Insurer? LIC HDFC SLI

Q2 While taking insurance plan how are your rate that following? Savings Risk Coverage Tax Benefits

Q3 Give choice you would prefer to invest in? FD NSS/ NCC Insurance Shares Post Office

Q4 Who is your financial consultant? Professional Friend/ Relative Family Agent

Q5 Should life insurance be made compulsory? Yes No

Q6 Are you aware with these plans? Children Plan Personal Pension Plan Loan Cover Assurance Plan Money Back Plan Endowment Plan

Q7 What is your occupation? Govt. Job Private Job Self Employed

Q8 Are you satisfied with the service of your insurance company? Yes No

Q9 Which plan you have taken? Endowment Plan Pension Plan Children Plan Money Back Plan

Q10 How much of your income would you like to invest in? 1000-5000 = 5000-1000 = 10000-20000 = 20000 Above =