A1 ANALYSIS OF INDIAN INSURANCE COMPANY

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 (S.D.M) HDFC SLIC

Jatin Bhargav MBA 3RD SEM. 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:
2.1 2.2 2.3

2.4

Introduction to insurance industry Insurance industry in India Evolution of Insurance in India Insurance Regulatory Development Authority 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: 4.1 4.2 4.3 Chapter 5: Chapter6: Comparative study Comparison of various company’s products Market share of various companies SWOT Analysis Research Methodology Micro Analysis

6.1 Chapter7: 7.1 7.2

Finding, analysis and Interpretation Macro analysis Conclusion 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 1818 1870 1912 Changes Oriental Insurance Company. The first Insurance company in India Bombay Mutual Life Assurance Company. First Indian Insurance company. 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 2002 FDIs are allowed to come and entered into the insurance business. 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 23.27% HDFC Bank

100% HDFC Properties

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 paidup 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 1 2 3 4 5 6 7 8 9 10 11 12 13 NAME Mr. Deepak S. Parekh Mr. Keshub Mahindra Mr. Shirish B. Patel Mr. B. S. Mehta Mr. D. M. Sukthankar Mr. D. N. Ghosh Dr. S. A. Dave Mr. S. Venkitaramanan Dr. Ram S. Tarneja Mr. N. M. Munjee Dr. Bimal Jalan Mr. D. M. Satwalekar Dr. Jamshed J Irani+ (Rajya Sabha) Non-Executive Special Director++ CATEGORY Executive Chairman Independent Independent Independent Independent Independent Independent Independent Independent Independent Member of Parliament

14 15

Ms. Renu Sud Karnad Mr. K. M. Mistry

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

Retirement solutions & mortgage protection Health Insurance

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 Maximum Entry Age Maximum Maturity Age Minimum Sum Assured Maximum Sum Assured Policy Term Premium Paying Terms 18 years 60 years 65 years Rs. 50,000 No Limit 5, 10, 15, 20, 25 years and Term to age 60 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 Minimum Vesting Age Maximum Vesting Age Minimum Premiums Premium Paying Term 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. 10 years 45 years 65 years Single Pay: Rs. 1,00,000 Regular Premium: Rs. 10,000 Single Pay & Regular Pay

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 2050 years old.

Plan at a glance

Coverage Term Option A Minimum Entry Age of the 0 years Child Maximum Entry Age of the 8 years Child Minimum Entry Age of the 20 years parent Maximum Entry Age of the 50 years Parent Policy Term 21 years - Age at Entry Minimum Sum Assured Rs 1,00,000 Maximum Sum Assured No Limit

Option B 0 years 12 years 20 years 50 years 25 years - Age at Entry Rs 1,00,000 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 15 years 17 years 20 years 21 years Age of the Child 17 years 21 years 23 years 25 years Percentage of Payout 20% of Sum Assured 30% of Sum Assured 50% of Sum Assured Guaranteed Additions Percentage of Payout 20% of Sum Assured 30% of Sum Assured 50% of Sum Assured Guaranteed Additions Assumed Milestone Class X Class XII College Higher Education Assumed Milestone Class XII College Higher Education Wedding

Option B: Policy matures at age 25 of the child.

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

PREMIUM COMPANY LIC ICICI PRU ALLIANZ BAJAJ TATA AIG HDFC OM KOTAK MAX NEWYORK MET LIFE SUM ASSURED:1 LAC 6280 6592 6158 9099 7585 7120 NA 5856 SUM ASSURED: 2 LACS 12559 12884 11836 17698 15020 14240 NA 11412 COMPANY LIC ICICI PRU ALLIANZ BAJAJ TATA AIG HDFC OM KOTAK MAX NEWYORK MET LIFE

PREMIUM SUM ASSURED:1 LAC 7953 9094 8362 NA 9102 8890 NA 7572 SUM ASSURED:2 LACS 15906 17888 16244 NA 18054 16480 NA 14844

AGE 35 YEARS

POLICY TERM 20 YEARS

AGE 35 YEARS

POLICY TERM 15 YEARS

PREMIUM COMPANY LIC ICICI PRU ALLIANZ BAJAJ TATA AIG HDFC OM KOTAK MAX NEWYORK MET LIFE SUM ASSURED:1 LACS 6464 6683 6252 9219 7719 7330 NA 6000 SUM ASSURED: 2 LACS 12928 13067 12024 17938 15270 14660 NA 11700 COMPANY LIC ICICI PRU ALLIANZ BAJAJ TATA AIG HDFC OM KOTAK MAX NEWYORK MET LIFE

PREMIUM SUM ASSURED:1 LACS 8089 9160 8432 NA 9184 9010 NA 7668 SUM ASSURED:2 LACS 16177 18019 16384 NA 18218 16700 NA 15036

AN ANALYSIS ON GUARANTEES ON INSURANCE AND PENSION PRODUCTS AS ON MARCH 2008
IRR’S/GURANTEES COMPANY ALLIANZ BAJAJ AVIVA AMP SANMAR BIRLA SUNLIFE HDFC STANDARD ICICI PRUDENTIAL ING VYSYA LIC MAX NEWYORK LIFE MET LIFE INSURANCE 2.14% -1.80% NA 0.70-1.50% 0.73% 1.70-4.95% 0.70% 4-6% 3.05% 5.5-5.7% PENSION NA NA NA 1-1.5% 1.7-1.9% 3.06% NA 1.3-2% 1.4-1.9% 2.3-2.7%

OM KOTAK SBI LIFE TATA AIG

-0.04% 0.73%-4.7% -2-4.4%

2.10% 4% 1.30%

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

Life Insurer
HDFC [Get Quote] STANDARD LIFE (TERM ASSURANCE)

Age (Yrs)
25 30 35 40 45 50 55 60

5
2,570 2,770 3,000 3,710 5,000 7,430 16,540 2,933 3,032 3,172 4,317 5,267 7,739 NA 2,356 2,564 3,128 4,287 6,247

10
2,620 2,820 3,050 3,840 5,520 8,320 NA 2,933 3,032 3,172 4,317 5,807

15
2,670 2,870 3,160 4,380 6,460 9,830 NA NA 2,933 3,032 3,248 4,738 6,875 NA NA 2,356 2,812 3,841 5,752

Tenure (Yrs) 20 25
2,720 2,920 3,580 5,110 7,620 NA NA NA 2,933 3,032 3,798 5,525 8,258 NA NA NA 2,544 3,227 4,613 6,940 NA NA NA 1,954 2,454 3,542 5,384 8,354 NA NA 2,770 3,050 4,120 5,970 NA NA NA NA 2,933 3,334 4,067 6,681 NA NA NA NA 2,861 3,821 5,534 8,306 NA NA NA NA 2,180 2,964 4,375 6,649 NA NA NA

30
2,820 3,430 4,750 NA NA NA NA NA 3,064 3,905 4,564 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

35
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

40
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

10,960 12,600

ICICI [Get Quote] PRUDENTIAL (LIFEGUARD)

25 30 35 40 45 50 55 60

8,776 10,439 NA 2,356 2,564 3,277 4,703 7,247

11,423 13,258

LIC [Get Quote] (ANMOL JEEVAN I)

25 30 35 40 45 50 55 60

8,860 10,623 NA NA 1,954 2,150 2,895 4,346 6,796 NA

9,860 11,335 13,741 15,068 17,384 NA 1,954 2,043 2,454 3,189 4,561 7,344 NA 1,954 2,043 2,552 3,542 5,541

SBI [Get Quote] LIFE (SHIELD)

25 30 35 40 45 50 55

8,814 10,657

11,215 13,538

60 KOTAK MAHINDRA OLD MUTUAL (PREFERRED TERM PLAN) 25 30 35 40 45 50 55 60 MAX NEW YORK LIFE 25 30 35 40 45 50 55 60 AVIVA [Get Quote] LIFE INSURANCE (LIFESHIELD) 25 30 35 40 45 50 55 60 TATA-AIG LIFE (ASSURE LIFELINE) 25 30 35 40 45 50 55 60 METLIFE (SURAKSHA- TERM ASSURANCE) 25 30 35 40 45 50 55 60 BIRLA SUN LIFE (TERM PLAN) 25 30 35

17,037 NA NA NA NA NA NA

NA 2,424 2,645 3,196 4,298 6,077

NA 2,424 2,645 3,306 4,739 6,761

NA 2,424 2,755 3,747 5,400 7,797 NA NA 2,210 2,700 3,770 5,650 NA NA NA NA 2,690 3,120 4,120 5,840 8,620 NA NA NA 3,640 4,550 6,580 NA NA NA NA 2,700 3,100 4,000 5,700 8,400 NA NA NA 2,890 3,010 3,720

NA 2,535 3,086 4,188 6,187 8,970 NA NA NA 2,410 3,050 4,330 NA NA NA NA NA 2,880 3,530 4,800 6,880 NA NA NA NA 4,080 5,280 7,820 NA NA NA NA NA 2,700 3,300 4,400 6,300 NA NA NA NA 2,890 3,160 4,030

NA 2,755 3,416 4,739 6,960 NA NA NA NA NA 3,220 NA NA NA NA NA NA 3,190 4,060 5,620 NA NA NA NA NA NA 6,130 NA NA NA NA NA NA NA 3,600 NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA 2,670 NA NA NA NA NA NA NA 4,700 NA NA NA NA NA NA 5,040 NA NA NA NA NA NA NA 3,200 NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

9,180 10,351 11,988 NA 2,120 2,430 3,270 4,840 7,450 NA NA NA 2,600 2,890 3,620 4,980 7,280 NA NA 3,340 3,970 5,520

NA 13,593 15,679 NA 21,668 2,100 2,160 2,570 3,480 5,040 7,940 12,140 NA 2,580 2,650 3,110 3,940 5,170 7,840 NA 3,100 3,480 4,650 6,830 2,110 2,280 2,910 4,150 6,360 9,990 NA NA 2,580 2,660 3,240 4,220 6,010

3,610 4,100

9,230 11,140 NA 3,160 3,510 4,670 6,870

11,910 14,110

8,400 10,200 NA NA NA 2,500 2,800 3,600 5,000 7,400 NA NA 2,890 2,950 3,510

9,880 10,190 13,380 15,800 16,240 24,320 NA 2,600 2,700 3,300 4,500 6,600 9,900 21,000 2,890 2,950 3,290 NA NA 2,500 2,600 3,200 4,300 6,400

9,700 11,200 NA 2,890 2,950 3,310

15,000 14,700

40 45 50 55 60 AMP SANMAR (RAKSHA SHREE) 25 30 35 40 45 50 55 60 BAJAJ ALLIANZ (RISK CARE) 25 30 35 40 45 50 55 60

4,080 5,380 7,710 NA 2,180 2,230 2,580 3,350 4,680 7,200 16,580 3,140 3,260 3,850 5,040 7,160 NA NA

4,310 5,990

4,690 6,720

5,150 7,670 NA NA 2,180 2,600 3,630 5,400 8,220 NA NA NA 3,820 4,830 6,750

5,860 8,930 NA NA NA 2,350 3,070 4,380 6,540 NA NA NA NA 4,490 6,050

NA NA NA NA NA 2,700 3,640 5,260 NA NA NA NA NA 5,560

NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

8,790 10,180 11,960 NA 2,180 2,230 2,640 3,650 5,520 NA 2,180 2,290 3,020 4,420 6,750 NA NA 3,420 4,050 5,350 7,710

11,080 13,100 15,680

8,550 10,400 NA 3,200 3,560 4,450 6,100

10,900 13,050

7,090 9,320 NA NA NA NA NA NA

7,750 10,200 NA NA NA NA NA

8,650 11,350 NA NA NA NA

9,850 12,850 NA NA NA

9,050 11,460 14,810 NA NA NA NA

10,940 13,610 17,360

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 Response Brand Promotion Relation with Agent Rate of Return Life Insurance Cover Tax Benefits Better Services Allocation 1 39 28 22 16 13 9 15 8 2 29 27 31 15 11 13 15 9 3 29 31 26 21 15 14 8 6 4 17 19 21 24 23 22 13 11 5 14 16 19 27 25 18 15 16 6 9 12 15 19 21 23 25 26 7 8 9 7 20 24 25 29 28

8 5 8 9 8 18 26 30 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 35 38 49 32 24 10 35 29 27 21 3 36 31 32 29 22 4 27 29 31 32 31 5 14 6 26 38 66

Insurance Stock Market Mutual fund Bank / Fixed Deposits / Post Office savings Others (Real estate, Gold etc.)

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 nittygritty 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 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….. 1 2 3 4 5 6 7 8

Q8. Are you satisfied with the return, which you are getting from your current policies?  Very Satisfied a.  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 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? 3 4 5

 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

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