Hdfc Study of Slic

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TRAINING REPORT

IN

STUDY OF

STANDARD LIFE INSURANCE

AT HDFC

SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENT OFBACHELAR OF BUSINESS ADMINISTRATION (BBA)

YMCA, NEW DELHI

TRAINING SUPERVISOR SUBMITTED BY

MR. SUBHAS VERMA NIKHIL BARUA

(BRANCH MANAGER)

SESSION 2008-2011

YMCA


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NEW DELHI

Date: 10th July, 2011

To Whom So Ever it May Concern

This is to certify that Mr. NIKHIL BARUA student of YMCA, NewDelhi, has successfully completed his training under my supervision. Hisperformance during the training was excellent. Duration of training was 5weeks which started from 06th Dec 2010- 07th Jan, 2010.

He is blessed with a cheerful disposition and excellent interaction andwork skills. We would like to appreciate his sincerity and hard work.

We wish him best of luck for his future.

Yours sincerely,

ForHDFC STANDARD LIFE INSURNACE

SUBHAS VERMABranch Manager

CorporateOffice:

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ACKNOWLEDGEMENT

The present work is an effort to throw some light on STUDY OF HDFC SLIC.

The work would not have been possible to come to the present shape without the able

guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance

received by my organizational guide Mr. Subhas Verma (Branch Manager of

HDFC) and other faculty members.

I convey my heartful affection to all those people who helped and supported me

during the course, for completion of my Project Report.

NIKHIL BARUA

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EXECUTIVE SUMMARY

During this project I fully realized this and come to know about the present real world

of insurance. Since it include all the activities involved in selling insurance products

directly to financial customers. I am pleased to know about the customers wants and

various activities in the real world of insurance product.

The Subject of my study is A STUDY OF HDFC SLIC. I have done this by applying

various tools like Tele calling, and through direct interaction with customers.

The report contains first of all brief introduction about HDFC SLC. Then it throws

some light on the insurance policies and plans provided by HDFC SLIC.

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CHAPTER 1

INTRODUCTION

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1.1 INTRODUCTION TO INSURANCE

ORIGIN OF LIFE INSURANCE

Life Assurance was born in England when the first policy providing temporary cover

for a period of 12 months was issued as easy as 1583 A.D. The Amicable Society

started granting fluctuating sum on death since 1705 and a fix sum since 1757, with

the development of mortality tables, the life Assurance acquired a scientific character.

The Equitable Society founded in 1762 was the first Society established on scientific

basis.

ORIGIN OF LIFE INSURANCE IN INDIA

In India, after failure of to British companies, the European and the Albert in 1870,

which attempted writing business on Indian lives, first Indian Life Assurance Society

was formed in the same year called Bombay Mutual Assurance Society Limited. The

Oriental Life Assurance Company Limited in 1874, Bharat in 1896 and Empire of

India in 1897 followed it. The idea of insurance was born out of a desire of the people

to share loss of an individual by many. Originally it restricted to forms other than life

assurance. It started with Marine Insurance, where the losses on account of perils of

sea forms of insurance, is found in the codes of Hammurabi, Manu (Manav Dharma

Shastra). The word Yogakshema is used in the Rig Veda suggesting that some form

of community insurance was practiced by the Aryans in India over 3000 years ago. InIndia during Buddhist period burial societies existed which were mutual in their

character and used to help a family by building a house, protecting the widow,

marrying the girls.

The Swadeshi Movement of 1905 provided impetus to the formation of several

companies such as the Hindustan Cooperative, the United India, the Bombay

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Life, the National. Further in the wake of freedom movement number of companies

such as the New India, the Jupiter the Lakshmi emerged.

The government began to exercise a certain measure of control on Insurance business

by passing the Insurance Act in 1912. For controlling investment of funds,

expenditure and management, a comprehensive Act was passed know as the insurance

Act 1938. For controlling the affairs, the office of Controller of Insurance was

established. The act was extensively amended in 1950.

In the year 1955, approximately 170 Insurance offices and 80 Provident Fond

Societies had been registered for transacting Life Assurance business in India. The

concept of trusteeship was lacking. Many insurance companies went into liquidation.

There were malpractices in insurance business. For achieving the following purposes

it was felt necessary to nationalize the insurance business in India.

To provide security to the policy holders

To utilize the funds for nation-building activities.

To avoid cut throat competition

To abolish mal-practices

To spread the insurance message to the rural areas.

The first in this direction was taken by the Government of India by issuing the life

Insurance (the Emergency provisions) Ordinance, 1956 on 19th January, 1956. The

then Finance Minister, Shri C.D. Deshmukh mentioned the purpose of nationalization

as reaching the goal of socialistic pattern of society, rendering genuine service to the

people in the rural areas.

Insurance activity in India is going on for more than 150 years. In India, life insurance

in its modern form was brought for the first time by the Britishers. The Oriental Life7


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Interest yield sagging to the lowest lend of three percent and remaining at that

level over 1947-1949.

The rate war and cut throat competition between insurance companies.

The recommendation of the ruling political party, the Indian National

Congress, to the government that the life sector insurance be nationalized, and

The founding of the Jiwanlal Chimanlal Setawad Memorial--The Federation

of Insurance Institutes.

Source: Chartered Financial Analyst, (October 2004).

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NEED FOR LIFE INSURANCE

Risks and uncertainties are part of life's great adventure -- accident, illness, theft,

natural disaster - they're all built into the workings of the Universe, waiting to happen.

Insurance then is man's answer to the vagaries of life. If you cannot beat man-made

and natural calamities, well, at least be prepared for them and their aftermath.

Insurance is a contract between two parties - the insurer (the insurance company) and

the insured (the person or entity seeking the cover) - wherein the insurer agrees to pay

the insured for financial losses arising out of any unforeseen events in return for a

regular payment of "premium".

These unforeseen events are defined as "risk" and that is why insurance is called a

risk cover. Hence, insurance is essentially the means to financially compensate for

losses that life throws at people - corporate and otherwise.

The principle of insurance works on the concept of a large number of people exposed

to a similar risk making a contribution to a common fund. Those who suffer losses

due to the occurrence of these events are compensated for them from this fund.

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ROLE OF LIFE INSURANCE

LIFE INSURANCE AS AN INVESTMENT: -

Insurance is an attractive option for investment. While most people

Recognize the risk hedging and taxes saving potential of insurance, many are not

aware of its advantages as an investment option as well. Insurance products yield

more compared to regular investment options, and this is besides the added incentives

offered by insurers.

You cannot compare an insurance product with other investment schemes for the

simple reason that it offers financial protection from risks, something that is missing

in non-insurance products. In fact, the premium you pay for an insurance policy is an

investment against risk. Thus, before comparing with other schemes, you must accept

that a part of the total amount invested in life insurance goes towards providing for

the risk cover, while the rest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the

end of the term. In other words, if you take a life insurance policy for 20 years and

survive the term, the amount invested as premium in the policy will come back to you

with added returns. In the unfortunate event of death within the tenure of the policy,

the family of the deceased will receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs 10,000 in

PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this

case, the access to your funds will be limited. One can withdraw 50 per cent of the

initial deposit only after 4 years.

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INSURANCE SECTOR REFORMS

The government in a bid to complement the reforms initiated in the financial sector

established a committee headed by former finance secretary and Reserve Bank of

India (RBI) governor, Mr R.N. Malhotra to evaluate the insurance industry and to

recommend its future direction. This committee suggested the following changes:

Government stake in insurance companies be brought down to 50 percent.

The take over of the holding of GIC and its subsidiaries in order to facilitate their

functioning as independent corporations.

Allowing private enterprise in the sector with companies with a paid up capital of

a minimum of Rs 100 crore.

No single entity to function in both Life and General insurance segments.

Foreign companies to be allowed only in combination with an Indian partner.

Changed to be made to the insurance Act.

An independent insurance regulatory authority to be set up.

Reduction in the mandatory investments of LIC Life Fund in government

securities to be brought down from 75 percent to 50 percent.

GIC and its subsidiaries are not to hold more than 5 percent in any company.

Popularization of pension schemes in rural areas.

Allowing PLI (Postal life insurance) in rural areas.

Rapid computerization of branches.

Payment of interest on delayed claims.

Use of revised mortality tables by LIC and revision of premiums after every 10

years.

Issue of long term unit linked insurance plans.

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Transfer of LALGI and IRDP schemes to concerned government authorities.

The insurance sector began its reform process with the passage of the IRDA (the

Insurance Regulatory and development authority) bill in Parliament in December

1999. However with the setting up of IRDA, the government has once again de-

regulated the sector opening it for the private players. The entry of private players

has enabled the industry to look at alternative distribution channels. To get the

maximum pie of the premium, every insurance company is adopting new

distribution and marketing strategies. In the last two years alone, the economy has

witnessed some fundamental changes in the Indian insurance industry. The total

foreign direct investment in India in the insurance sector today stands at Rs 95,250

crore. The total premium income of the Indian insurance industry both life and

non life for the year ending March 31, 2007 stands at Rs 91,376,11 crore, out of

this, the share of life insurance premium is 78 percent, i.e. Rs 7155416 crore and

general insurance premium is 22 percent, i.e. Rs 15,638 crore. The share of private

sector in life insurance cake has increased from 0.02 to 1.99 percent in the last two

years. While the share of private sector in general insurance cake has increased

from 0.07 to 9.50 percent. The transition of the insurance industry from a public

monopoly to a competitive environment new presents very interesting challenges

both to the new players and to the customer. Not only the new players have an

opportunity to test out their various hypotheses and apply learnings from

overseas markets, the customer will have a greater choice when it comes to

choosing a provider or a solution for their needs.

Source: Roy, Dilip, Some Aspects of Insurance in the Context of Risk ManagementVision. The Journal of Business Perspective, (January-June, 2007).

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PRESENT STATUS OF INSURANCE INDUSTRY

Insurance is a Rs.400 billion business in India, and together with banking services

adds about 7% to Indias GDP. Gross premium collection is about 2% of GDP and

has been growing by 15-20% per annum. India also has the highest number of life

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

almost 8% of GDP. Yet more than three-fourths of Indias insurable population has

no life insurance or pension cover. Health insurance of any kind is negligible and

other forms of non-life insurance are much below international standards.

Some few years ago the entry of private players was banned in India but its only after

first stage of economic reforms the situation has become better with the entry of

private sector .As of now the govt insurance companies like Life Insurance

corporation of India, GIC etc. It holds the majority of market share whereas the

private players are slowly catching up the race. As of now the private players have

concentrated on urban markets more and less on the rural markets and their lies a

huge untapped potential at rural markets. Even in urban markets the penetration levels

in India in terms of life insurance is very less and thus there is a huge market potential

for the companies to grow. The problem is how the companies can untapped the

unawake Ned demand among the target market. Also the awareness levels among the

consumers about insurance product is very low and the advertisement campaigns

launched by the private players like ICICI, KOTAK MAHINDRA has increased the

level of awareness among the consumers and have arisen the need for insurance. The

consumer now thinks that insurance is important these days as the life has become

much more unstable and thus there is less level of surety.

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PRIVATE PLAYERS IN THE MARKET

The new insurance companies used all channels of advertising from newspapers and

the television to insurance agents and direct mailers. The new companies focused

their campaigns primarily on building an image of trustworthiness and reliability for

themselves. Their advertisement focused on insurance as an investment option and not

a mere tax saving tool. Most of these advertisements carried messages like the

familys happiness. It has been more than 5 years since private insurance companies

lunched operations in India, which is depicted in the Table given below.

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Company Indian partner Foreign insurer Area

Birla Sunlife Aditya Birla Group Sunlife, Canada Life

Om Kotak Kotak Mahindra

Finance

Old Mutual, South

Africa

Life

HDFC-Standard Life HDFC Standard Life UK Life

Royal Sundaram Sundaram Finance Roya Sun, UK Life & Non life

ICICI-Prudential ICICI Prudential, UK Life

Max New York Life Max India New York Life USA Life

Tata-AIG Tata group AIG USA Life & non Life

ING Vysya Vysya Bank ING Insurance,

Netherlands

Life

Aviva Dabur CGU life, UK Life

Metlife India Jammu & Kashmir

Bank

Metlife, USA Life

Bajaj Allianz Bajaj Auto Allianz Life & non Life

AMP Sanmar Sanmar Group AMP, Australia Life

SBI Life Insurance SBI Cardiff, France Life

TABLE 1: PRIVATE PLAYERS IN THE INDIAN INSURANCE MARKET

SOURCE: www.knowledgedigest.com.

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http://www.knowledgedigest.com/http://www.knowledgedigest.com/


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In the first quarter of the year 2006, insurance companies spent 70 percent of what

was spent in the year 2005, on advertising ad publicity. Across the world, insurance as

a category was one of the largest spenders on advertising. In India too substantial

expenditure was being incurred due to advertising depicted in the Table given below:

Company Expenditure

LIC 1000

Allianz Bajaj 200

Om Kotak Mahindra 150

ICICI Prudential 146

TABLE 2: Advertisement Expenditure by Insurance Companies (Rs. Million)

Source: ICMR.

LICs business increased mainly because of the increased public awareness about

insurance. During the first year of the entry of new players, while LIC reported a

growth of over 250 percent, private insurers managed to garner only about 0.5percent market share in spite of spending hefty amounts on advertising and

promotion. According to a sample survey conducted by ORG-marg on the popular

life insurance brands in 2007, awareness of LIC policies was a phenomenal 100

per cent while the private insurers lagged behind. But now private players firmly

etched in the minds of tap insurance market.

Life insurance No. of policies sold as

on June 30, 2007

Value of business

(Rs Crore)

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ICICI Prudential 12,757 14.60

Max New York Life 6996 2.75

Tata AIG 1688 1021

HDFC standard 1629 2.09

Birla Sunlife 1048 7.60

SBI Cardit 169 1.63Non-Life Insurance :

Tata AIG 6178 18.69

Royal Sundaram 1227 7.55

Reliance Genins 372 8.51

IFFCO-Tokio 174 16.30

Bajaj Allianz 10 1.26

TABLE 3: SLICING THE INSURANCE PIE

SOURCE: IRDA.

Company Premium

U/w (in

Rs Lakh)

% of

pre-

mium

No. of

policies/

schemes

% of

No. of

policies

No. of

lives

covered

under

group

scheme

% of

lives

covered

under

group

scheme

1. Bajaj Allianz 10,675.20 1.93 53.427 0.89 49,066 2.73

Individual single premium 3559.45 4247

Individual non single

premium

7,020.22 49,155

Group single premium

Group non single premium 95.52 25 49,066

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2. ING VYSYA 1921.48 0.35 26,803 0.45 5898 0.33


Individual non single

premium

1778.20 22,026

Group single premium 95.26 1 255

Group non single premium 15.57 5 5643

(TABLE CONTD.)

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TABLE: CONTD.

Company Premium

U/w (in

Rs Lakh)

% of

pre-

mium

No. of

policies/

schemes

% of

No. of

policies

No. of

lives

covered

under

group

scheme

% of

lives

covered

under

group

scheme

3. AMP Sanmar 1302.03 0.24 9616 0.16 17,956 1.00


Individual non single premium 673.57 8438

Group single premium 20.85 1 190


4. SBI Life 8460.42 1.53 26,515 0.44 17,0035 9.47


Individual non single premium 1573.69 24759

Group single premium 3257.56 2 40,165

Group non single premium 1642.74 610 1,29,870

5. TATA AIG 7551.74 1.37 64,420 1.08 11,730 6.33

Individual single premium

Individual non single premium 5704.18 64,344 29,094

Group single premium 198.62


TABLE 4: Top five Life Insurance Companies (in terms of premium, till July 2007)

SOURCE: IRDA Journal, September 2006.

1.2 INTRODUCTION TO THE COMPANY21


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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 2007.

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 2006. 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.

The most successful and admired life insurance company, which mean that we are the

most trusted company, the easiest to deal with, offer the best value for money, and set

the standards in the industry. The most obvious choice for all.

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life

insurance companies, which offers a range of individual and group insurance

solutions. It is a joint venture between Housing Development Finance Corporation

Limited (HDFC Ltd.), Indias leading housing finance institution and The Standard

Life Assurance Company, a leading provider of financial services from the United

Kingdom. Both the promoters are well known for their ethical dealings and financial

strength and are thus committed to being a long-term player in the life insurance

industry.

We attribute the success of our company to our people, who are our most important

asset. We believe they are a key fact of the company and it is their contribution that

has enabled us to achieve our current status. Since they deserve the best, our efforts

have been to provide them with the best environment, culture and development

opportunities possible.

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HDFC WORK CULTURE

HDFC Standard Life Insurance is known for its stimulating environment with high

levels of motivation, empowerment and recognition. We encourage an open and

informal culture that values integrity, commitment, teamwork and excellence in

customer service. We adopt a policy of strong learning and development initiatives,

which promotes day-to-day learning as well as decision-making. We believe our

strength is our people, so we endeavor to surpass their expectations and give them the

best possible work environment and benefits that match the best in the industry.

HDFC CORE VALUES

Integrity

Innovation

Customer centric

People Care

Teamwork One for all and all for one

Joy and Simplicity

MISSION

Customer service of highest order

Value for money for customers

Professionalism in carrying out business Innovative products to cater different needs of different customers

Use of technology to improve service standards

1.3 INTRODUCTION TO IRDA

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THE INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body

in April 2007 has fastidiously stuck to its schedule of framing regulations and

registering the private sector insurance companies.

The other decision taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies was the launch of the

IRDAs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the

insurance companies would have a trained workforce of insurance agents in place to

sell their products, which are expected to be introduced by early next year. Since

being set up as an independent statutory body the IRDA has put in a framework of

globally compatible regulations. In the private sector 12 life insurance and 6 general

insurance companies have been registered.

The study of insurance companies of that time clearly reveal that concept of trustship

which should be cornerstone of life business seemed entirely lacking and most of the

managements had no appreciation of the clear and vital distinction that exists between

trust monies and those that belong to joint stock companies owned by shareholders.

So the nationalization of life insurance business became necessary with a view to --

provide cent percent security to policy holder,

ensure the use of life insurance funds for nation building activities,

avoid wasteful efforts in competition,

save the dividends paid to shareholder of insurance companies,

avoid certain undesirable practices adopted by some of the insurance

companies management, and

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Spread the gospel of life insurance into the neglected rural areas.

245 Indian and foreign insurance and provident societies taken over by the central

Government and nationalized. In 1956, the Government of India nationalized the life

insurance business. Since then the entire life insurance business is being transacted by

the Life insurance Corporation of India for more than four decades, the LIC has been

enjoying monopoly status enjoying supernormal profits at the expense of consumers

in life business in the country. The LIC by this time has grown manifold. At present it

has a network of 7 zones, 100 divisions and over 2007 branches. The annual premium

income was US $21 million in 1956. Current business investment in LIC is over US

$29 billion. Life insurance funds constitute approximately 11 percent of gross

household saving in financial assets in India, and a little over 1 percent of gross

domestic product. Life insurance Corporation of India, despite its best efforts, has not

penetrated more than 15 percent of the insurance population, which itself is more than

300 million. Insurance penetration as a measure of percentage of GDP is very low for

India and countries like South Korea are much higher than India. With approximately

$7 billion of premium collected annually, India is the 23rd largest market in the world.

The General insurance business (Nationalization) Act, 1972 nationalized the general

insurance business in India with effect from January 1, 1973. 107 insuresamalgamated and grouped into four companies, viz the national insurance company

Ltd., the New India Assurance Company Ltd., the Oriental Fire and general insurance

company Ltd., and the United India insurance company Le., General insurance

company (GIC) was incorporated as a company. The four constituents of the GIC

were to operate on a competitive basis and be governed by the guidelines structured

by the Government of India. Recognizing the need for reforms in the financial and

insurance sector, the government appointed the Malhotra Committee to seek and

identify the measures required for the reform process in the insurance sector.

Source: Reddy, K. Rama Krishna, and Reddy, Raghunatha, Life Insurance

Corporation of India, Need for New Lessons, PIMR, 4, October, 2006.

1.4SWOT ANALYSIS OF HDFC

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Business firms undertake SWOT analysis to understand the external and internal

environment. SWOT, which is the acronym for Strength, Weakness, Opportunities

and Threats, is also known as WOT-UP Analysis. Through such an analysis strength

and weakness existing within an organization can be matched with the opportunities

and threats operating the environment so that an effective strategy can be formulated.

An effective organization strategy, therefore, is one that is capitalized on the

opportunities and through the use of strengths and neutralizes the threats maximizing

the impact of weakness.

STRENGTH:

Has sold 3 lakh policies. Brand power.

Strong assets and infrastructure.

Market share of 22.5%.

WEAKNESS:

Industry in nascent stage.

Awareness about private life insurance companies is very less.

Still not very popular in rural market.

Very few branches in the country.

Lack of operational activities.

OPPORTUNITY:

Liberalization of Indian economy.

Life Insurance sector opening up.

Very small percentage of population insured in India One of best products

in the market.

Global market opportunity.

THREAT:

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Lack of proper technical knowledge among the mass.

Apprehension towards HDFC Prudential being a private life insurance

company.

LIC: very big player.

Change in government policy may affect the growth and expansion of the

Insurance sector and the company

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CHAPTER 2

RESEARCH METHODOLOGY

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Newspaper and

Magazines.

CHAPTER 3

COMPANY PROFLE

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HIL as a Non- Banking Insurance Company (NBFC). HIL was set-up with an

intention of being the investment arm of HDFC.

HDFC Realty Limited

HDFC Holding Limited

HDFC Asset Management Company Limited

HDFC Trustee Company Limited

HDFC Finance Limited

ASSOCIATE COMPANIES

HDFC has broadened its service range by entering into strategic associations withsome of the best organizations, both Indian and international, which include:

HDFC Bank Limited: Initially promoted in strategic alliance with NatWest Group,

U.K. With NatWest diversting its holding. HDFC Bank has signed a MoU for

strategic business collaboration with The Chase Manhattan Bank. Chase Capital

Partners through their various investment funds in India have acquired 15% stake in

HDFC Bank.

The Housing Development Finance Corporation and HDFC BANK have promoted

HDFC SECURITIES LIMITED. HDFC Securities has already acquired BSE and

NSE membership.

Infrastructure Leasing and Financial Services Limited: Co promoted jointly with the

Unit Trust of India and Central Bank of India.

Maruti Countrywide Auto Financial Services Limited: IN alliance with Maruti Udyog

Limited and GE Capital India Limited.

Colliers Jardine India Property Services Limited: Co promoted jointly with

infrastructure Leasing and Financial Services Limited and Colliers Jardine Asia

Pacific Limited.

GRUH Finance Limited: Established with support from the international Finance

Corporation, the Aga khan Fund for Economic Development and Government of

Gujarat.

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SBI Home Finance Limited: Co promoted jointly with SBI Capital Markets

Limited:

Can Fin Homes Limited: Co promoted jointly with Canara Bank and Asian

development Bank.

GIC Housing Finance Limited: Co promoted jointly with the General Insurance

Corporation.

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3.2 HDFC STANDARD LIFE INSURANCE HOUSING

DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

Founded in 1977, HDFC is today the market leader in housing finance in India and

has extended financial assistance to more than 15 lakh homes. HDFC has more than

110 offices in India presently. It also one international office in Dubai and 3 Service

Associates in Kuwait, Qatar, and the Sultanate of Oman. HDFCs asset base amounts

to over Rs 28,000 cores. Its financial strength is reflected in highest safety ratings of

FAAA and MAAAA awa4rrded by CRISIL and ICRA two of Indias leading

credit rating agencies- respectively, for the last 6 years consequently. It has a

depositor base of over 1 lakh customers and a deposit agents force of over 46,000. Of

the total deposits, 73% are sourced from individual and trust depositors. Which

demonstrates the tremendous confidence that retail investors have in the company.

Being an institution that is strongly committed to the highest standards of quality and

excellence, HDFC has won several accolades in the past few years such as

Ramakrishana Bajaj National Quality Award for the year 1999. This award was

instituted to award recognition to Indian companies for business excellence and

quality achievement. HDFC is the only company so far to receive this award.

STANDARD LIFE ASSURANCE COMPANY

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

for 176 years by combining sound financial judgement with integrity and reliability.

The largest Mutual life Company in Europe, it has operations in the United Kingdom,

Ireland, Spain, Germany, Austria and Canada with representative offices in Hong

Kong and China.

One of its most recent successes was the launch of Standard Life Bank on 1 st January,

1998. The introduction of its innovative mortgage product in January 1999 has an

immediate impact on the UK market, accounting for 1% of all new lending within the

first operational year. The current loans understanding amount to Rs. 43,000 crore.

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Standard Life has total assets of Rs. 5,95,000 crore and new premium income last

year of Rs. 30,000 crore. Its UK investment portfolio accounts for approx. 2% of all

shares listed in the London Stock Exchange. It is one of the few insurance companies

in the world to receive AAA rating from two of the leading international credit rating

agencies. Moodys and Standard & Poors. The later described Standard Lifes ability

to meet its claims obligations as overwhelming under a variety of economic

conditions.

Standard life is rated as one of the strongest companies of the world, in financial

terms. The companys reputation in the UK market remains unrivalled. Besides, being

voted company of the Year for overall service, for the third consecutive year,

Standard Life was recently voted Company of the Decade by independent brokers.

Incorporation of HDFC Standard life Insurance Company Limited

The company was incorporated on 14 th August 2000 under the name of the 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, with 81.4%, while Standard

Life owns 18.6%. Given Standard Lifes existing investment in the HDFC Group, this

is the maximum investment allowed under current regulations

The Retails Sales Hierarchy of HDFC Standard Life Insurance

General Manage

Head Retail Sales

Regional Branch Manager

Business Development Mangers

Certified Financial Consultants

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3.3 PAST PERFORMANCE & FUTURE PROSPECTS

Analysis of performance of HDFC Standard life in financial year 2006-

2007

The company has achieved a total sum of Rs 1,266 crore on its individual insurance,

individual pensions and group insurance business nationally and has covered

44.311 lives. The total sum assured in the first quarter of the current financial

year is Rs 800 cr. HDFC Standard life is also the first new life insurance

company to declare a bonus on its with profits policies. The company has

declared a lower interim bonus of 7 % on single premium policies and 3.75% on

regular premium policies.

HDFC Standard life has declared a non-recurring founders bonus.

The company has earned Rs 789 crore from its individual life insurance and pension

business, of which 20% has come from the HDFC personal pension plan, which was

introduced in February 2006. Of the individual policies, endowments from 52%,

while single premium policies brought in business worth Rs 10crores

PARTICULARS FY 2004-05 FY 2006-07

Total premium Rs 298 crores Rs 687 crores

Insurance coverage Rs 5000crores Rs30000 crores

New business premium Rs 132 crores Rs 486 crores

Growth rate 260% 132%

Number of offices in India 44 104

Number of FC 10500(approx) 23000

Group business insurance coverage 2000 crores 10,000 crores

Lives insured in groups business 22,000 lives 200,000 lives

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3.4 PRODUCTS OFFERED

HDFC Standard Life Insurance offers you a range of innovative life insurance plans.

Through an appropriate combination of the basic plan and optional benefits, we cancreate the right insurance solution for you.

DIFFERENT PLANS AND THEIR BENEFITS

Benefits

Endowment Assurance Life Insurance + Savings + upto 4 optional benefits

Money Back Life Insurance + Savings + upto 4 optional benefits

Single Premium Whole Of Life Investment + Life Insurance

Term assurance Life Insurance at an affordable price + upto 2optional

Benefits

Loan Cover Term Assurance Life Insurance for loan cover protection + 1optional

benefit

Personal Pension Plan Savings + Retirement Planning

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HDFC Standard Life Insurance is presently operational in

Ban galore,

Bhopal,

Chandigarh,

Chennai,

Delhi,

Hyderabad,

Indore,

Jaipur,

Kolkata,

Kanpur,

Lucknow,

Ludhiana,

Mumbai,

Pune ,

Rajkot,

Surat,

Thane and

Vadodara ,

Panjim ,

Nasik and many more places.

3.5 INDIVIDUAL PRODUCTS

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HDFC Standard Life offers a range of products and invites you to choose the one that

suits you best.

WITH PROFITS MONEY BACK:

This policy provides a combination of savings, regular cash payments and life

insurance. Over the course of the contract, a proportion of the sum assured will be

paid at regular intervals. The sum assured plus any bonuses will be payable on death

before the end of the contract. On survival to maturity, you will get the sum assured

plus any bonuses less the regular payments already made. Your commitment is to pay

a level premium regularly throughout the life of the policy. The Money Backcan also

be customized to meet your needs by adding any combination of up to 4 rider

benefits.

SINGLE PREMIUM WHOLE OF LIFE

TERM ASSURANCE PLAN:

Under the Term Assurance plan, a sum assured is payable in case of death of the life

assured during the term of the contract. One can choose the lump sum that would

replace the income lost to one's family in the unfortunate event of one's death. The

Term Assurance Plan comes to you at a minimal cost and is well suited for the value-

conscious customer. The Term Assurance Plan can also be customized to suit your

needs by adding optional rider benefits.

LOAN COVER TERM ASSURANCE:

40
http://opt/scribd/conversion/tmp/scratch6610/MoneyBack.htmhttp://opt/scribd/conversion/tmp/scratch6610/MoneyBack.htmhttp://opt/scribd/conversion/tmp/scratch6610/MoneyBack.htm#benefitshttp://opt/scribd/conversion/tmp/scratch6610/MoneyBack.htm#benefitshttp://opt/scribd/conversion/tmp/scratch6610/FlexibleBond.htmhttp://opt/scribd/conversion/tmp/scratch6610/TermAssurance.htmhttp://opt/scribd/conversion/tmp/scratch6610/TermAssurance.htmhttp://opt/scribd/conversion/tmp/scratch6610/TermAssurance.htm#benefitshttp://opt/scribd/conversion/tmp/scratch6610/LoanCoverTerm.htmhttp://opt/scribd/conversion/tmp/scratch6610/MoneyBack.htmhttp://opt/scribd/conversion/tmp/scratch6610/MoneyBack.htmhttp://opt/scribd/conversion/tmp/scratch6610/MoneyBack.htm#benefitshttp://opt/scribd/conversion/tmp/scratch6610/MoneyBack.htm#benefitshttp://opt/scribd/conversion/tmp/scratch6610/FlexibleBond.htmhttp://opt/scribd/conversion/tmp/scratch6610/TermAssurance.htmhttp://opt/scribd/conversion/tmp/scratch6610/TermAssurance.htmhttp://opt/scribd/conversion/tmp/scratch6610/TermAssurance.htm#benefitshttp://opt/scribd/conversion/tmp/scratch6610/LoanCoverTerm.htm


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The Loan Cover Term Assurance plan provides a lump sum on death of the life

assured during the term of the plan. The lump sum will be a decreasing percentage of

the initial sum assured. It is an affordable plan that has been designed to help your

family repay the outstanding loan in case of your unfortunate death.

PERSONAL PENSION PLAN

The Personal Pension Plan 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 the annuity, provided it is permitted by the prevailing regulations.

Your commitment is to pay a single premium or level premiums with installments due

every quarter, half-year or year throughout the deferment period of the policy, after

which you will start receiving your pension.

CHILDREN'S PLAN

The future of your child is most important to you. You need to plan today to ensure a

bright future for your child, whether it is education, marriage or establishing a

professional career. To help you save for your child, we at HDFC Standard Life,

present the Children's Plan.

The plan is affordable, customized to your needs, and above all, enables you to realize

your dreams for your child. This plan is well suited for the value-conscious customer,

and above all, for every loving parent. This plan can also be chosen by grandparents,

other relatives or any adult for the benefit of a child.

ENDOWMENT ASSURANCE (EA) PLAN

41
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What is an Endowment Assurance Plan?

It is a 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.

Provides 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.

Why should you buy this product?

This plan is with profits saving plan and is well suited for saving money for your long

term financial goals. This plan also helps 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 the policy.

What 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) Benefitprovides an additional amount equal to the basic

sum assured on diagnosis of any one of the 6 common critical illnesses *. 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.

Double Sum Assured (DSA) Benefit provides an additional amount

equivalent to the basic sum assured in case of your unfortunate death.

Accidental Death Benefit (ADB) provides an additional amount equal to the

basic sum assured in case you die:

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- Due to an accident, and

- Within 90 days of the accident.

Waiver Of Premium (WOP) Benefit waives the premium for you in case

you become totally disabled. The waiver is applicable during the period of

total disability.

* (a)Cancer, (b)Coronary artery bypass graft surgery, (c) Heart attack, (d) Kidney /

Renal failure, (e)Major organ transplant (as recipient) and (f)Stroke.

Endowment Assurance Plan offers you Tax Benefits?

Tax benefits described in Section 88, Section 80D** and Section 10 (10D) of the

Income Tax Act are applicable. Applicable to premiums paid for CI and WOP.

**Applicable to premiums paid for CI and WOP.

ELIGIBILITY

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

Basic Policy Basic Policy with optional

benefits

CI DSA ADB WOP

Min. age at entry 12 18 18 18 18

Max. age at entry 60 55 60 55 50

Max. age at expiry 75 70 75 65 60

Min. term: 10 years; Max. Term: 30 years

JOINT LIFE INSURANCE POLICY, INDIA

Joint life insurance policies are similar to endowment policies as they too offer

maturity benefits to the policyholders, apart form covering risks like all life

insurance policies.

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But joint life policies are categorized separately as they cover two lives

simultaneously, thus offering a unique advantage in some cases, notably, for a

married couple or for partners in a business firm

Under a joint life policy the sum assured is payable on the first death and again on

the death of the survivor during the term of the policy. Vested bonuses would also

be paid besides the sum assured after the death of the survivor. If one or both the

lives survive to the maturity date, the sum assured as well as the vested bonuses are

payable on the maturity date. The premiums payable cease on the first death or on

the expiry of the selected term, whichever is earlier.

GROUP INSURANCE, INDIA

Group insurance offers life insurance protection under group policies to various

groups such as employers-employees, professionals, co-operatives, weaker sections

of society, etc. It also provides insurance coverage for people in certain approved

occupations at the lowest possible premium cost. Such plans are particularly

beneficial to those for whom other regular policies are a costlier proposition. Group

insurance plans extend cover to large segments of the population including those

who cannot afford individual insurance.

A number of group insurance schemes have been designed for various groups.

These include employer-employee groups, associations of professionals (such as

doctors, lawyers, chartered accountants etc.), and members of cooperative banks,

welfare funds, credit societies and weaker sections of society.

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UNIT LINKED INSURANCE PLANS (ULIP)

Unit linked insurance plan (ULIP) is life insurance solution that provides for the

benefits of protection and flexibility in investment. The investment is denoted as

units and is represented by the value that it has attained called as Net Asset Value(NAV). The policy value at any time varies according to the value of the underlying

assets at the time.

ULIP provides multiple benefits to the consumer. The benefits include:

Life protection

Investment and Savings

Flexibility

Adjustable Life Cover

Investment Options

Transparency

Options to take additional cover against

Death due to accident

Disability

Critical Illness

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MONEY BACK PLAN

To sum a wise man had said that the time to mend the roof is when the sun is shining.

This is applicable to life insurance too. Today as the breadwinner you are able tomaintain a decent standard of living for yourself and your family. If you want enough

bread for the family even after the death of the breadwinner, you should look at the

Single Premium Bond. In other cases, life insurance is an absolute necessity. Have a

look at other products.

Money Back Plan

Total Policy Number of years from policy date

Term 5 10 15 20 2510 40%

15 30% 30%

20 25% 25% 25%

25 20% 20% 20% 20%

30 15% 15% 15% 15% 15%

Endowment Assurance Plan

Age Basic Policy Additional Premium

Years Premium

(Rs.)

For Optional benefits (Rs.)

CI DSA ADB WOP

20 4771 304 322 136 236

30 4835 442 388 144 300

40 5098 925 641 156 475

50 5813 1890 1357 - -

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BENEFIT AREA CUSTOMER

SEGMENT Protection Investment Savings Pensions

Individuals term Assurance Single premium bondsEndowment / Money Back Pensions plans, annuities

Corporate Group term InsuranceGratuity Superannuation

MARKET SEGMENTS

The life insurance and pension business has two distinct customers segments -

individuals and corporate. In case of the retail business for individuals, the 4 sub-segments are - protection, investment, savings and pension. Apart from the existing

leader LIC, new companies such as HDFC Standard Life, TATA AIG, ICICI

Prudential and more will seek to be present across all the segments of the market.

Among the retail products for individuals, pure risk protection products have been

introduced by some of the new life insurance companies in the market. As these

products have no savings component to it, the premiums are very low compared to

other products. Investment products provide long term investment growth and

insurance cover. This segment is growing rapidly. Savings products like Endowments

and Money-Backs provide a combination of protection and investment benefits. The

last segment of pension includes products that are aimed at offering customers an

income during their retirement years. In case of the group business, there are three

sub-segments - protection, statutory savings and pension. Group insurance products

are taken to provide low cost life insurance cover to a group of people. Group

insurance can be taken to provide low cost life insurance cover as part of employeebenefit packages to motivate employees or to cover the housing or vehicle loan given

by employer to employee. It can also be used as a substitute for the statutory EDLI

subject to approval by the Regional Provident Fund Commissioner. The statutory

savings segment essentially comprises of the gratuity products for companies. The

pension segment will include products like group superannuation, which will enable a

company to benefit from the actuarial, investment and operational expertise of a

specialist company to manage its superannuation funds.

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FINANCIAL RESULTS

HDFC Standard Life declares results for FY 2006-07, premium from new business

more than three and a half times over last FY Insurance coverage crosses Rs. 5000

crore mark.

HDFC Standard Life participating policyholders to benefit from third successive

bonus declaration

On 8th May 2007, HDFC Standard Life Insurance Company Limited, the first private

sector life insurance company to start operations, declared its annual results for the

financial year ending March 31st, 2007. The company generated premium from new

business of Rs. 132 crore in 2006-07, as compared to Rs. 36 crore in the previous

financial period, registering a year-on-year growth of over 260%.

Another significant achievement for HDFC Standard Life was that the cumulative

insurance coverage, i.e. the sum assured for the policyholders, crossed the Rs. 5000

crore mark during the year. During this period, HDFC Standard Life extended life

insurance coverage to over 1, 50,000 lives.

According to Mr. Deepak Satwalekar, Managing Director and CEO, HDFC Standard

Life, the exceptional growth in business in the past twelve months had been driven by

the rising expectations of the consumer. This in turn had resulted in HDFC Standard

Life introducing new insurance solutions, establishing an increased presence across

locations, increasing its sales force of trained financial consultants and adding

corporate agents to its distribution mix, he added.

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The Directors of HDFC Standard Life at their Board meeting on 29th April, 2007,

also declared the companys third bonus for participating policyholders.

Commenting on the bonus declaration Mr. Deepak Parekh, Chairman, HDFC

Standard Life, said We have declared reversionary bonus rates this year equal to the

interim bonus rates we declared last year. Long term interest rates have fallen by over

1% since we declared our bonus last year, and this has had an impact on the rates of

interest that all financial institutions can pay their customers. In recognition of this fall

in long term interest rates we have reduced our interim bonus rates this year, and

unless there is a recovery in long term interest rates, reversionary bonus rates will also

have to be reduced in future years.

Details of the bonuses declared are given in the Annexure attached along with this

release.

HDFC Standard Lifes current product portfolio caters to all the needs of the

individual protection, investment, savings and pension. Mr. Satwalekar said, Our

products are in fact integrated financial solutions that can offer them stability ofreturns along with total protection. We would, going forward, continue to add to our

insurance solutions portfolio to offer increased flexibility in structuring

individualized insurance solutions.

A new addition to HDFC Standard Lifes product portfolio was the HDFC Childrens

Plan in February 2007. This customized solution has found wide acceptance amongst

policyholders towards ensuring a bright future for their children, whether it is

education, marriage or establishing a professional career. Besides the Childrens Plan,

the HDFC Personal Pension Plan also continued to gain in popularity during the year.

Amongst private insurers, HDFC Standard Life currently has a 25 percent market

share in the pension segment.

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With offices in 49 locations, HDFC Standard Life has nearly doubled its physical

presence across the country in the last twelve months. Ajmer in Rajasthan was the

latest in the companys list of cities that it operates from.

Also contributing to the growth in business were more than 10,500 financial

consultants trained to understand the needs of the consumer, provide the right advice

and maintain high service standards.

CONCLUSION OF THE FINANCIAL RESULTS

The current state of insurance distribution in India is still in flux. On one hand,

insurers are awaiting regulations to be approved for brokerages and banc assurance to be truly launched. On the other hand they are trying the corporate model of

intermediaries in addition to the traditional models in the market.

There is no right and wrong in all this. The success of marketing insurance depends

on understanding the social and cultural needs of the target population, and matching

the market segment with the suitable intermediary segment.

In addition a major segment of the Indian population has low disposable income,

meaning that every penny won will be obtained after a lot of persuasion and the

expected value for money is high.

All intermediaries can't sell all lines of business profitably in all markets. There

should be clear demarcation in the marketing strategies of the company from this

perspective. Clients should also receive price differentials for using different

channels. This is not a new concept, as the Public sector Property Casualty companies

are giving discounts in lieu of agency commission. The channel composition should

not be homogeneous but should reflect the larger society.

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EXAMPLES:

Agents from different economic, social strata and different age and gender.

Banc assurers ranging from multinational banks to micro credit lending

agencies.

Brokers stretching from corporate to NGOs to milk co-operatives

These intermediaries need to be empowered with the right learning, training and sales

tools and technology enablers. Coupled with the right product mix, this will help the

insurers to survive and flourish in this competitive market.

Let us conclude with a story of a retired postal clerk who became a success story for

selling postal savings and insurance in his village in Punjab in Northern India. The

person is the father of our colleague, who is a retired postal employee and took up

agency for postal savings and insurance to supplement his meager retirement

earnings.

Today -- 10 years later -- he is one of the top agents selling postal savings and

insurance in his village, assisted by his illiterate wife and grandson (a seven year old

computer literate) doing all the administrative work from home on a small Personal

computer using a package (developed by our friend who is a programmer) to handle

his client portfolio!

The entire village population trusts him with the investment advices that he doles out

and has no qualms in handing over small amounts of cash to him for depositing in the

post office. He is their trusted customer care or financial consultant. This we feel is

the essence of distribution of financial products in India

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CHAPTER 4

DATA ANALYSIS

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DATA ANALYSIS

Comparisons of the distribution of occupation of the respondents.

HDFC Standard Life Insurance

Emp.

(Pvt.sector)

62%

Emp.

(Pubic.sector)

18%

Self - employed

14%

others.

6%

It belonged to the employee in the private sector, 62 belong to the employee

in the private sector, 18 are self employed and 14 are in the other category.

All these 3 respondents are retired from there jobs.

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0

5

10

15

20

25

30

35

advertisements. (I) & (ii) All Three

HDFC Standard Lif

Insurance


The average score received was calculated by adding the score given by each

respondent divided by the total number of respondent.Also it was noted that

in case of LIC there were total of 13 respondents who give rating of 5 or less

than 5 but the same in case of HDFC Standard Life Insurance were only 3.

INTERPRETATION

It is inferred that though the difference between the averages score obtained

on the satisfaction of financial needs is not much, the customers of HDFC

Standard Life Insurance seemed to be satisfied

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COMPARISON OF THE EFFECTIVENESS OF MEANS OF

COMMUNICATION

0

5

10

15

20

25

30

35

40


Advt. Frends DSAs

ANALYSIS

In the above figure all the respondents marked more than one option given in

the questionnaire advertisements in print media, television, radio etc, and 11

responses went in favor of word of mouth communication through friends

and relatives. Of the total respondents of HDFC Standard Life Insurance, 34

responses went in favor of advertisements, 26 went in favor of DSAs, and

only 4 went in favor of friends and relatives.

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INTERPRETATION

Any specific inference cannot be drawn from this information, but still word

of mouth communication plays a great role in case of life insurance policies

and HDFC Standard Life Insurance life insurance is quite lagging behind in

this area.

COMPARISONS OF INCENTIVE SCHEMES

0

5

10

15

20

25

30

High

satisfied

Satisfied Moderate Unsatisfied Highly

unsatisfied

LIC HDFC Standard Life Insurance

ANALYSIS

Of the total respondents of LIC (as shown in figure 4.10), 28 responded that

they are very much satisfied with the incentive schemes associated with their

policies, 7 were only satisfied with the incentive scheme, 9 were moderate

with regards to the incentive scheme and 6 people were eitherunsatisfied or56


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highly unsatisfied with the incentive schemes. However, of the total

respondents of the HDFC Standard Life Insurance, 24 were highly satisfied

with the incentive scheme associated with their life policy while only 6

people were highly unsatisfied with regards to the same .

INTERPRETATION

The customers of both the organizations hold positive perception towards

the incentive provided by them. This is very well visible from the total

numbers of highly satisfied and satisfied category, wherein close to 70%

of the customer interviewed for both the organizations have responded inthese categories.

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DATA ANALYSIS AND INTERPRETATION

1). Are you interested in products offered by the HDFC SLC?

Yes 61%

No 22%

Will think 17%

INTERPRETATION

The good thing is that at least the corporate were quite eager to find out what HDFCSLC has to offer whereas the major 39 % of the corporate were not even interested in

the products as they are quite satisfied by the LIC and they are not in breaking their

long relationship with them. The private players will have to play a long battle in

order to ensure that they are serious player in the market.

58

61%22%

17%

Yes

No

Will think


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2). Are you satisfied with your present insurer?

YES 95%

No 5%

95% 5%5%Yes

No

INTERPRETATION

Here is where the challenge is. Inevitably most of the players are very satisfied with

their present insurer which makes it more tough for the private players to attract the

corporate. The remaining 5 % are also not very dissatisfied by the services but they

are just open to new avenues and are looking forward that private companies come

with good offers so that they may shift to them. Thus private players will have to be

very proactive and in this regard since LIC is the leader and HDFC SLC is lagging

behind its competitors in terms of competition.

3). Where would you like to insure if given chance?

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LIC - 60

ICICI - 10

BAJAJ ALLIANZ - 5HDFC - 15

SBI - 8

KOTAK MAHINDRA - 2

60

815

105 2

0

10

20

30

40

50

60

LIC HDFC BAJAJ

3-D Column 1

INTERPRETATION

Thus we see that the companies are comfortable in having business with govt. owned

companies as they feel its safe & secure to have business with them which is

followed by SBI as it is the biggest bank and then followed by

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4). what is peoples main concern while taking a insurance policy?

A) Security 70%

B) Returns 10%

C) Tax rebate 20%

INTERPRETATION:

People invest in insurance mainly because of security concern.

61

TAX REBATE

20%

SAVINGS

70%

SECURITY10%


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Q.5Are you satisfied with the for premiums paid for the different

policy?

Very High

40%

High

30%

Moderate

11%

Low

10%

Very Low

9%

INTERPRETATION:

Here we found that

40%people are very highly satisfied,

30% of people are highly satisfied,

11% are moderate,

10% of people are low satisfied,

9% are very low satisfied.

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30%

40%

15%

5%

10%

0%

5%

10%

15%20%

25%

30%

35%

40%

Highly

satisfied

Unsatisfied

6). Are you satisfied with the incentives associated with

your policy?

Highly satisfied

Satisfied

ModerateUnsatisfied

Highly Unsatisfied

INTERPRETATION:

30% people are highly satisfied,

40% satisfied,

15%are moderate,

5% are unsatisfied

10%are highly unsatisfied.

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7). What other plans or flexibility you expect

fromInsurance companies?

30%

20%

50%

More returns

Complementary

gifts

InvestmentPattern

INTERPRETATION:

50%people are satisfied with investment pattern,

30% are satisfied with more returns and

Only 20% people expect complimentary gifts.

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CHAPTER 5

CONCLUSION

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CONCLUSION

1. LIC enjoys credibility over other private players in the industry

2. People look for security over returns in market insurance plans

3. Lifetime is the most popular product among the people who are aware

about HDFC SLC products.

4. People are now showing more interest in ULIP as compared to some of the

traditional plans.

5. HDFC SLC has to counter the distribution network of LIC

6. The product profile of HDFC SLC is not very comprehensive

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CHAPTER 7

RECOMMENDATIONS

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RECOMMENDATIONS

More emphasis should be on promotional activities.

Plenty of advertisement should be done through T.V, Newspaper and Radio as

these medias are having maximum recall value.

Total financial planning and advice should be given to every customer.

More business opportunity seminars should be conducted to make people

aware of the offer given.

The company should quite frequently send their agent to the customer so thatthey should be aware of the latest offer.

The company should attempt to open more and more of its branches in the

country so as to promote their product publicity.

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CHAPTER 8

LIMITATIONS

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LIMITATION

The geographical area was very much limited to residential area & so the results are

not particularly reflection of the current behavior.

Biases and non-cooperation of the respondents.

Due to limited time period and constrained working hours for most of the

respondents, the answers at times were vague enough to be ignored.

Most of the people in India take their policies in the period preceding

March(for tax saving purposes) & so the response to initial contacts were not

all encouraging and that has been the primary reason in the inability to

quantify the results large enough so as to deduce any relevant outcomes.

People are not interested in giving personal opinion.

Hdfc Study of Slic

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