A PROJECT STUDY REPORT ON “Comparative Study Of ICICI Prudential & HDFC Standard Life Insurance Co. Ltd. ” Submitted in partial fulfillment for the award of Degree of Master of Business Administration Submitted To : Submitted By FMS, MAIET Rajat Jain Mba – IVth Sem 1 | Page
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APROJECT STUDY REPORT
ON
“Comparative Study Of ICICI Prudential & HDFC
Standard Life Insurance Co. Ltd. ”
Submitted in partial fulfillment for the award of Degree of
Master of Business Administration
Submitted To : Submitted By
FMS, MAIET Rajat Jain
Mba – IVth Sem
MAHARSHI ARVIND INSTITUTE OF ENGG. &
TECHNOLOGY
(Approved by AICTE, New Delhi & Affiliated to Rajasthan Technical University, Kota)
(2012-2013)
1 | P a g e
DECLARATION
I hereby declare that this project titled “Comparative Study
Of ICICI Prudential & HDFC Standard Life Insurance Co.
Ltd.” submitted by me in partial fulfillment of requirements of
MBA Programme of RTU, is a confide work carried out by
me. As far as my knowledge is concerned it has not been
submitted earlier to any other University or Institution for the
award of any degree diploma certificate or published any
time before.
RAJAT JAIN
MBA IV SEMESTER
2
CERTIFICATE
To Whom So Ever It May Concern
This is to certify that Ms. Rajat Jain has prepared
this report titled “Comparative Study Of ICICI Prudential &
HDFC Standard Life Insurance” under my supervision. As far
as my knowledge is concerned this is her original work and
is being submitted for the fulfillment of the MBA degree.
I wish her Good success for her future career.
Mr. Vivek Atolia
(Project Guide)
3
ACKNOWLEDGEMENT
As Per the curriculum of 4th semester of MBA, we have to undergone through a
detailed project study. I wish to express my gratitude to Rajasthan Technical
University for giving me an opportunity to be a part of such kind of learning
experience, which will surely enhance my knowledge and skills.
I am grateful to Mr. Vivek Atolia for their invaluable guidance and cooperation
during the course of the project. They provided me with their assistance and
support whenever needed that has been instrumental in completion of this
project.
The project has been a great experience, the learning and the exposure I got
through this project was immense and will surely help me in my future pursuits.
I would like to show my gratitude towards the management and staff for taking
time to help me and for their suggestion and comment, which helped me a lot
throughout the project.
.
RAJAT JAIN
4
TABLE OF CONTENTS
Introduction to the industry 6
Introduction to the Organization 55
Research Methodology 107
Title of the study
Duration of the project
Objective of the study
. Type of research
Sample size and method of selecting sample
Growth of the company
Data analysis and interpretation 111
Fact and Findings 124
Conclusion 125
Recommendations and suggestion 126
Appendix 127
Bibliography 129
.
INTRODUCTION
5
Life Insurance:
Life Insurance could be defined as a policy that will pay a specified sum to beneficiaries
upon the death of the insured. It is an agreement that guarantees the payment of a stated
amount of monetary benefits upon the death of the insured. Life Insurance could be said
as protection against the death of the insured in the form of payment to a designated
beneficiary, typically a family member or business.
It is basically risk insurance intended as protection against the financial
consequences of the death of the insured person which takes the form of payment of a
previously agreed lump sum or pension to a beneficiary, if the insured person dies during
the term of insurance. In the case of pure life insurance, without any endowment
insurance component, no payments are due if the insured person survives the term of
insurance.
In big terms Life Insurance is a contract agreement between the certificate holder
and the insurance company, providing a specified sum to beneficiaries upon the death of
the insured. It is a coverage that pays out a set amount of money to specified beneficiaries
upon the death of the individual who is insured. It is a policy that will pay a specified
sum to beneficiaries upon the death of the insured. There are many types of life
insurance, including whole life, term life, universal life, etc. It is an insurance relating to
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a risk depending on human life. This includes contracts providing payment on the insured
person's death, endowments providing payment either on survival to a specified date or
on earlier death and annuities which are paid throughout the annuitant's lifetime but cease
on death.
According to an article on site life-line.org Life insurance is the foundation of a
sound financial plan. It provides financial security for your family by protecting your
financial resources, such as your present and future income, against the uncertainties of
life.
More specifically, life insurance provides cash to the family after death. This cash
(the death benefit) replaces the income one would have provided and can meet many
important financial needs. It can help pay the mortgage, run the household, send kids to
college, and ensure that dependents are not burdened with debt. The proceeds from a life
insurance policy could mean that the family won't have to sell assets to pay outstanding
bills or taxes. And also that there is no federal income tax on life insurance benefits.
Most people with dependents need life insurance. While there's no substitute for
evaluating specific situation, one rule of thumb is to buy life insurance equivalent to five
to ten times ones annual gross income. To determine how much, if any, life insurance one
needs, then start by gathering all personal financial information and estimating what the
family will need after one is gone, including ongoing expenses (such as day care, tuition,
or retirement) and immediate expenses at the time of death (like medical bills, burial
costs, and estate taxes). The family also may need funds to help them readjust: perhaps to
finance a move, or pay expenses while job hunting. Choosing a life insurance product is
an important decision, but it can be complicated. As with any major purchase, it is
important that one should understand his or her family's needs.
Type of Insurance companies
7
Insurance companies may be classified into two groups:
Life insurance companies, which sell life insurance, annuities and pensions
products.
Non-life, General, or Property/Casualty insurance companies, which sell other
types of insurance.
General insurance companies can be further divided into these sub categories.
Standard Lines
Excess Lines
In most countries, life and non-life insurers are subject to different regulatory regimes
and different tax and accounting rules. The main reason for the distinction between the
two types of company is that life, annuity, and pension business is very long-term in
nature — coverage for life assurance or a pension can cover risks over many decades. By
contrast, non-life insurance cover usually covers a shorter period, such as one year.
In the United States, standard line insurance companies are "mainstream" insurers. These
are the companies that typically insure autos, homes or businesses. They use pattern or
"cookie-cutter" policies without variation from one person to the next. They usually have
lower premiums than excess lines and can sell directly to individuals. They are regulated
by state laws that can restrict the amount they can charge for insurance policies.
Excess line insurance companies (also known as Excess and Surplus) typically insure
risks not covered by the standard lines market. They are broadly referred as being all
insurance placed with non-admitted insurers. Non-admitted insurers are not licensed in
the states where the risks are located. These companies have more flexibility and can
react faster than standard insurance companies because they are not required to file rates
and forms as the "admitted" carriers do. However, they still have substantial regulatory
requirements placed upon them. State laws generally require insurance placed with
surplus line agents and brokers not to be available through standard licensed insurers.
Insurance companies are generally classified as either mutual or stock companies. Mutual
companies are owned by the policyholders, while stockholders (who may or may not own
policies) own stock insurance companies. Demutualization of mutual insurers to form
8
stock companies, as well as the formation of a hybrid known as a mutual holding
company, became common in some countries, such as the United States, in the late 20th
century.
Other possible forms for an insurance company include reciprocals, in which
policyholders 'reciprocate' in sharing risks, and Lloyd's organizations.
Insurance companies are rated by various agencies such as A. M. Best. The ratings
include the company's financial strength, which measures its ability to pay claims. It also
rates financial instruments issued by the insurance company, such as bonds, notes, and
securitization products.
Reinsurance companies are insurance companies that sell policies to other insurance
companies, allowing them to reduce their risks and protect themselves from very large
losses. The reinsurance market is dominated by a few very large companies, with huge
reserves. A reinsurer may also be a direct writer of insurance risks as well.
Captive insurance companies may be defined as limited-purpose insurance companies
established with the specific objective of financing risks emanating from their parent
group or groups. This definition can sometimes be extended to include some of the risks
of the parent company's customers. In short, it is an in-house self-insurance vehicle.
Captives may take the form of a "pure" entity (which is a 100% subsidiary of the self-
insured parent company); of a "mutual" captive (which insures the collective risks of
members of an industry); and of an "association" captive (which self-insures individual
risks of the members of a professional, commercial or industrial association). Captives
represent commercial, economic and tax advantages to their sponsors because of the
reductions in costs they help create and for the ease of insurance risk management and
the flexibility for cash flows they generate. Additionally, they may provide coverage of
risks which is neither available nor offered in the traditional insurance market at
reasonable prices.
The types of risk that a captive can underwrite for their parents include property damage,
public and product liability, professional indemnity, employee benefits, employers'
liability, motor and medical aid expenses. The captive's exposure to such risks may be
limited by the use of reinsurance.
9
Captives are becoming an increasingly important component of the risk management and
risk financing strategy of their parent. This can be understood against the following
background:
Heavy and increasing premium costs in almost every line of coverage;
Difficulties in insuring certain types of fortuitous risk;
Differential coverage standards in various parts of the world;
Rating structures which reflect market trends rather than individual loss
experience;
Insufficient credit for deductibles and/or loss control efforts.
There are also companies known as 'insurance consultants'. Like a mortgage broker, these
companies are paid a fee by the customer to shop around for the best insurance policy
amongst many companies. Similar to an insurance consultant, an 'insurance broker' also
shops around for the best insurance policy amongst many companies. However, with
insurance brokers, the fee is usually paid in the form of commission from the insurer that
is selected rather than directly from the client.
Neither insurance consultants nor insurance brokers are insurance companies and no risks
are transferred to them in insurance transactions. Third party administrators are
companies that perform underwriting and sometimes claim handling services for
insurance companies. These companies often have special expertise that the insurance
companies do not have.
The financial stability and strength of an insurance company should be a major
consideration when buying an insurance contract. An insurance premium paid currently
provides coverage for losses that might arise many years in the future. For that reason,
the viability of the insurance carrier is very important. In recent years, a number of
insurance companies have become insolvent, leaving their policyholders with no
coverage (or coverage only from a government-backed insurance pool or other
arrangement with less attractive payouts for losses). A number of independent rating
agencies provide information and rate the financial viability of insurance companies.
10
Global insurance industry
Global insurance premiums grew by 3.4% in 2011 to reach $4.3 trillion. For the first time
in the past three decades, premium income declined in inflation-adjusted terms, with non-
life premiums falling by 0.8% and life premiums falling by 3.5%. The insurance industry
is exposed to the global economic downturn on the assets side by the decline in returns on
investments and on the liabilities side by a rise in claims. So far the extent of losses on
both sides has been limited although investment returns fell sharply following the
bankruptcy of Lehman Brothers and bailout of AIG in September 2011. The financial
crisis has shown that the insurance sector is sufficiently capitalised. The vast majority of
insurance companies had enough capital to absorb losses and only a small number turned
to government for support.
Advanced economies account for the bulk of global insurance. With premium income of
$1,753bn, Europe was the most important region in 2008, followed by North America
$1,346bn and Asia $933bn. The top four countries generated more than a half of
premiums. The US and Japan alone accounted for 40% of world insurance, much higher
than their 7% share of the global population. Emerging markets accounted for over 85%
of the world’s population but generated only around 10% of premiums. Their markets are
however growing at a quicker pace.
PRINCIPALS OF INSURANCE
Insurance involves pooling funds from many insured entities (known as exposures) in
order to pay for relatively uncommon but severely devastating losses which can occur to
these entities. The insured entities are therefore protected from risk for a fee, with the fee
being dependent upon the frequency and severity of the event occurring. In order to be
Term Life Insurance is a type of insurance policy whereby the insured pays a fixed sum
for a period of time. This sum remains constant. The premium charged is very nominal.
The Policy holders normally survive even after its expiry unless they are affected by fatal
disease or injured in an accident. This policy does not cost much. Once the policy expires
the insured is also at liberty to renew the same but he will have to pay the revised rates of
premium. Such a change could sometimes be too high. This is one of the drawbacks of
this policy. But for this factor, it is economical and highly recommended for the salaried
youth and middle men. Whole term insurance policy is another classification in term life
insurance. In a whole term insurance the insured pays the fixed amount throughout his
life.
The different categories of term life insurance policy are as follows:-
Group Term Life Insurance
This type of insurance is taken by the employer for his employees. The employer either
pays the premiums from his kitty or by deducting the appropriate amount from the salary
of individual employees. This policy provides lot of benefits but it cannot be relied solely
to meet your insurance needs. This type of insurance is gaining significance in the
developing countries.
Level term Life Insurance
This type of insurance requires you to select a particular period and pay premiums for the
selected period. The policy automatically matures on the attainment of the selected
period. Once you select the term say 5 10 or 15 years you cannot revoke it. This type of
insurance is ideal for those people who are not able to make long term financial plans.
19
Permanent insurance
Permanent Life Insurance is an expensive Policy. This Policy cannot be stopped on any
occasion as long as the premiums are paid regularly and you don't want to end the policy.
In a permanent Life Insurance policy you pay premiums for an indefinite period
irrespective of the fact they exceed the amount to be distributed to your dependents in
case of death.
Such surplus will be deposited by the company in a separate account. They will yield
higher returns if the company performs well. A share of the profits is periodically
dispatched to you. You have the option of raising loans out of those funds or accumulate
them back in the account. In case you decide to end the policy you will paid back with
the surrender value .If the insurer decides to retain the profits made from your investment
with him then you are not required to pay income tax for that amount. There is a
possibility like, when you withdraw certain amount of money within the given limit you
need not pay income tax for that amount. But when you deposit money in the bank you
have to pay income tax irrespective of the fact you utilize it or not.
If the insurer decides to retain the profits made from your investment with him then you
are not required to pay income tax for that amount. There is a possibility like, when you
withdraw certain amount of money within the given limit you need not pay income tax
for that amount. But when you deposit money in the bank you have to pay income tax
irrespective of the fact you utilize it or not.
It is however advised not to choose permanent insurance if your motive is solely
investments and tax exemptions. In that case it is advised to invest in some form of cheap
investments and make use of other financial instruments for saving tax because the basic
objective of insurance is neither investment nor tax exemption.
20
Important features of Insurance:
State insurance departments regulate the type of investments companies are
permitted to make;
Investment profiles of companies differ depending on what type of insurance
they underwrite;
Each state enforces laws to protect consumers against unfair discrimination in
the provision of insurance;
Consumers who do not qualify for property insurance in the private market
may obtain it through insurance industry operated plans;
The insurance industry does not benefits from federal deposit
insurance .Insurance Companies pay for insolvencies in the industry through
a system of state Guaranty FUNDS.
Advantages & Disadvantages of Life Insurance
Life insurance, too many, is a necessary evil. Many policyholders swear by it to protect
their families from loss of income and hefty debt obligations in the event of their
untimely death. With several types of life insurance on the market, generally speaking,
two varieties still remain the most popular: term and whole life, or "cash value" life
insurance. Both varieties have pros and cons.
Identification
Cash value life insurance are policies where in which premiums are used to pay for the
cost of insurance, while a portion is placed into attached investment vehicles that grow
over time. Some popular cash value life insurance products include variable life, whole
life, universal life and paid-up insurance. Despite minor differences, these insurance
plans are essentially the same. All cash value life insurance policies contain a death
benefit and a cash account that's added to when a client makes a premium payment.
21
Term life insurance is significantly different than its cash value counterpart. Term life
insurance does not contain a cash value account. Premiums are used solely to pay for the
cost of coverage. These premiums maintain the level of coverage for a specific "term." At
the end of a policy's term, a new policy must be purchased.
Benefits
Both cash value life and term life insurance have their benefits. The most significant
benefit of cash value life insurance is its ability to offer coverage for the entire life of the
policyholder. Many people take advantage of buying this type of insurance when they are
young when they need it most. Cash value accounts may also be borrowed against or
drawn from during the life of the policy. Policyholders are also not required to pay taxes
on any interest or earnings attached to cash value accounts.
Individuals and corporations also benefit from term life insurance. The biggest advantage
of term life is the often very cheap premiums, especially when a person is young and
healthy. It is possible, in many situations, to purchase significantly large face value
amounts for monthly costs of $20 to $30. Term life is good for covering obligations that
will eventually end, such as mortgages, automobile loans and educational needs.
Warning
With the benefits of both cash value and term life insurance come a few disadvantages.
The most significant disadvantage of cash value life insurance is the often inconsistency
in premiums. Most cash value policies contain required premiums that can increase over
time. This can make the policy quite expensive for someone on a budget who wishes to
purchase enough coverage to benefit his family in the event of his death.
Although many policies contain riders in which dividends from cash accounts can be
used to pay premiums, such an instance almost always results in taking funds away from
the cash value or investment account. There is also never a guarantee that sufficient funds
will be available to cover missed premiums in the event a policyholder falls short.
There are also several disadvantages of term insurance, the first being that it is not
permanent. Although a policyholder may enjoy extremely cheap premiums when she is
22
young, term products expire after a certain number of years, or when the insured reaches
a certain age. When a policy expires, a new one must be purchased. This means that a
person must qualify for a new program based on her current age and health in order for
coverage to continue. This almost always results in much higher premiums or
Uninsurability. Some term insurance does, however, contain "re-up" or "renewal" options
that may not require proof of that the customer is insurable to continue coverage.
Misconceptions
When we think of life insurance, we think of a death benefit being paid to a beneficiary
upon the death of a policyholder. Although this is true, it is important to know that with
some insurance, especially many cash value policies, it's often not that simple.
With many cash value life policies, only a single payout is made upon a policyholder's
death, regardless of what the cash value account is worth when he dies. For example, if
an individual owns a whole life policy with a death benefit of $100,000 and a cash value
account worth $25,000, it is common for beneficiaries to expect a payout of $125,000.
This is commonly not the case. In this example, a beneficiary would commonly only
receive a total of $100,000. Because the cash value account is worth $25,000, the
insurance company would only pay $75,000 as a death benefit, with the other $25,000
coming from the cash value account. With some products, however, beneficiaries are, in
fact, entitled to receive death benefits in addition to cash value accounts when their loved
one dies. However, usually an amount equal to the policy's face value is paid upon death.
It is important to know this information before purchasing cash value life insurance.
Considerations
It is recommended that you consult with an experienced insurance agent before buying
life insurance. It is important to find a life product that is tailored to the specific needs of
the individual policyholder and his family. For example, an individual may only need to
protect his family from large mortgage obligations for 10 or 15 years. If an individual
wishes to be covered by a policy for the remainder of his life, then a cash value policy
may be in order.
23
Research also shows that using life insurance policies as investment vehicles is not a wise
move. Long term, it is much more profitable to buy term insurance and take advantage of
low premiums and invest in mutual funds or stocks that are not attached to insurance
policies.
Effects on Society
Insurance can have various effects on society through the way that it changes who bears
the cost of losses and damage. It can increase fraud. On the other hand, it can help
societies and individuals prepare for catastrophes and mitigate the effects of catastrophes
on both households and societies.
Insurance can influence the probability of losses through moral hazard, insurance fraud,
and preventive steps by the insurance company. Insurance scholars have typically
used morale hazard to refer to the increased loss due to unintentional carelessness and
moral hazard to refer to increased risk due to intentional carelessness or indifference.[6] Insurers attempt to address carelessness through inspections, policy provisions
requiring certain types of maintenance, and possible discounts for loss mitigation efforts.
While in theory insurers could encourage investment in loss reduction, some
commentators have argued that in practice insurers had historically not aggressively
pursued loss control measures - particularly to prevent disaster losses such as hurricanes -
because of concerns over rate reductions and legal battles. However, beginning around
1996 insurers began to take a more active role in loss mitigation through building codes.
Insurance and its Benefit to Society
A benefit society or mutual aid society is an organization or voluntary association formed
to provide mutual aid, benefit or insurance for relief from sundry difficulties. Such
organizations may be formally organized with charters and established customs, or may
arise ad hoc to meet unique needs of a particular time and place.
Benefit societies can be organized around a shared ethnic background, religion,
occupation, geographical region or other basis. Benefits may include money or assistance
for sickness, retirement, education, birth of a baby, funeral and medical expenses,
General Insurance Corporation of India www.gicindia.com
54
COMPANY
PROFILE
55
HDFC-SLIC
(HOUSING DEVELOPMENT FINANCE CORPORATION LTD.
STANDARD LIFE INSURANCE COMPANY)
HOUSING DEVELOPMENT FINANCE CORPORATION LTD.
56
Founded in 1977, HDFC is today the market leader in housing finance in India
and has extended financial assistance to more than 15 lacks homes. HDFC has more than
110 offices in Dubai and 3 more services associates’ insurance Kuwait, Qatar and
Sultanate of Oman. HDFC’s assets based amount to over 15,000 crore. Its financial
strength is reflected in highest safety rating of “FAAA” and “MAAA” awarded by
CRISIL and ICRA- two of India’s leading credit rating agency respectively, for the last 6
years consecutively, it has a depositor base of over 11 lacks customer and a deposit
agents force of over 46,000 of the total deposit, 73% are sourced from individual and
trust depositories, which demonstrates the tremendous confidence that retail investors
have insurance the company.
HDFC- Promoted companies have emerged to meet the investors and customers’
needs. HDFC bank is for commercial banking, HDFC mutual fund products, to be
followed very shortly by HDFC Standard Life Insurance Company for the life endurance
and pension products.
Being an institution that is strongly committed to the highest of quality and
excellence, HDFC has won several accolades in the past few years. One such award is the
‘Ramakrishna 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 in the service
category.
57
Helping Indians experience the joy of home ownership.
The road to success is a tough and challenging journey in the dark where only
obstacles light the path. However, success on a terrain like this is not without a solution.
As we found out nearly three decades ago, in 1977, the solution for success is
customer satisfaction. All you need is the courage to innovate, the skill to understand
your clientele and the desire to give them your best. Today, nearly three million satisfied
customers whose dream we helped realize, stand testimony to our success.
Our objective, from the beginning, has been to enhance residential housing stock
and promote home ownership. Now, our offerings range from hassle-free home loans and
deposit products, to property related services and a training facility. We also offer
specialized financial services to our customer base through partnerships with some of the
best financial institutions worldwide.
Objectives & background
Housing Finance Sector
Against the milieu of rapid urbanization and a changing socio-economic scenario,
the demand for housing has grown explosively. The importance of the housing sector in
the economy can be illustrated by a few key statistics. According to the National Building
Organization (NBO), the total demand for housing is estimated at 2 million units per year
and the total housing shortfall is estimated to be 19.4 million units, of which 12.76
million units is from rural areas and 6.64 million units from urban areas. The housing
industry is the second largest employment generator in the country. It is estimated that
the budgeted 2 million units would lead to the creation of an additional 10 million man-
years of direct employment and another 15 million man-years of indirect employment.
Having identified housing as a priority area in the Ninth Five Year Plan (1997-2002), the
National Housing Policy has envisaged an investment target of Rs. 1,500 billion for this
sector. In order to achieve this investment target, the Government needs to make low cost
funds easily available and enforce legal and regulatory reforms.
58
Background
HDFC was incorporated in 1977 with the primary objective of meeting a social
need – that of promoting home ownership by providing long-term finance to households
for their housing needs. HDFC was promoted with an initial share capital of Rs. 100
million.
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the
country through the provision of housing finance in a systematic and professional
manner, and to promote home ownership. Another objective is to increase the flow of
resources to the housing sector by integrating the housing finance sector with the overall
domestic financial markets..
Organizational Goals
HDFC’s main goals are to 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, and e) to grow through diversification by leveraging off the
existing client base.
Organization and Management
HDFC is a professionally managed organization with a board of directors
consisting of eminent persons who represent various fields including finance, taxation,
construction and urban policy & development. The board primarily focuses on strategy
formulation, policy and control, designed to deliver increasing value to shareholders.
STANDARD LIFE INSURANCE COMPANY
(SLIC)
59
The Standard Life Assurance Company ("Standard Life") was established in 1825 and the
first Standard Life Assurance Company Act was passed by Parliament in 1832. Standard
Life was reincorporated as a mutual assurance company in 1925.
The Standard Life group originally operated only through branches or agencies of the
mutual company in the United Kingdom and certain other countries.
Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largely
remained the structure of the group until 1996, when it opened a branch in Frankfurt,
Germany with the aim of exporting its UK life assurance and pensions operating model to
capitalize on the opportunities presented by EC Directive 92/96/EEC (the “Third Life
Directive”) and offer a product range in that market with features which local providers
were unable to offer.
In the 1990s, the group also sought to diversify its operations into areas which
complemented its core life assurance and pensions business, with the intention of
positioning itself as a broad range financial services provider.
Banking, Healthcare & Investments
The group set up Standard Life Bank, its UK mortgage and retail savings banking
subsidiary, in 1998 and Standard Life Investments, which had previously been the in-
house investment management unit of the group’s life assurance and pensions business,
was separated into a distinct legal entity in the same year, with the aim of establishing it
as an independent investment management business providing services to both the group
and third party retail and institutional clients. The group acquired Prime Health Limited
(subsequently renamed Standard Life Healthcare) in the United Kingdom in 2000.
Standard Life Healthcare expanded in March 2006 with the acquisition of the PMI
business of First Assist.
Standard Life Asia Limited/Joint ventures –
60
The group’s Hong Kong subsidiary, Standard Life Asia Limited (“SL Asia”), was
incorporated in 1999 as a joint venture and became a wholly-owned subsidiary of
Standard Life in 2002. The group’s operations in Hong Kong were established to give the
group a presence in the Far East from which it could expand into China. The group’s
joint ventures in India with Housing Development Finance Corporation Limited
(“HDFC”) were incorporated in 2000 (in relation to the life assurance and pensions joint
venture) and 2003 (in relation to the investment management joint venture). The group’s
joint venture in China with Tianjin Economic Development Area General Company
(“TEDA”) became operational in 2003.
Standard Life International Limited –
The group also incorporated Standard Life International Limited (“SLIL”) in 2005 for the
purposes of providing the group with an offshore vehicle, based in Ireland, through which
it could sell tax-efficient investment products into the United Kingdom. Sales of these
products commenced in 2006.
Service Company –
Following the group’s strategic review in 2004, the group established a service company
structure for the provision of central corporate services to the group’s business units.
Standard Life Employee Services Limited (“SLESL”) supplies a wide range of central
services to the rest of the group, including IT, facilities, legal and human resources
services, and employs staff working in the group’s UK and Irish operations (other than
SLI, SLB and SLH, which employ their staff directly). This service company structure
was created to enable Standard Life to comply with regulatory restrictions on the
provision of non-insurance services and to exploit group-wide synergies.
Structure of Standard Life plc
61
The following is a simplified structure diagram
Standard Life plc owns all of the businesses and companies in the group. Standard Life
plc is a holding company which is owned by its shareholders (including those Eligible
Members who received and retained shares received as a result of demutualization).
Alternative textual explanation-
62
Standard Life plc structure
Underneath Standard Life plc are Standard Life Healthcare Limited, Standard Life
Investments (Holdings) Limited (and underneath it, Standard Life Investments Limited),
Standard Life Oversea Holdings Limited, Standard Life Employee Services Limited,
Standard Life Assurance Limited and Standard Life's Joint Venture interest in China
Underneath Standard Life Oversea Holdings are Standard Life Asia Limited and
Standard Life Financial Inc (and underneath it, The Standard Life Assurance Company of
Canada).
Underneath Standard Life Assurance Limited are Standard Life Direct Limited,
Standard Life Savings Limited, Standard Life Direct Limited, Standard Life Trustee
Company Limited, Standard Life Bank Limited, Standard Life Pensions Funds Limited,
Standard Life International Limited and The Standard Life Assurance Company 2006,
which currently holds Standard Life's Joint Venture interests in India.
THE PARTNERSHIPS
HDFC and Standard Life commenced discussions about possible joint venture, to
enter the life insurance market, in Jan. 1995. It was clear from the outset that both
companies shared similar values and benefits and a strong relationship quickly formed. In
Oct.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.
A small project term was set up in UK and India and set about preparatory work.
Among other things, the team conducted market research, looked at possible information
technology, documented high level business process maps and set about preparing the
first project plan.
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The next three years were filled uncertainty, due to change in insurance Govt. and
both ongoing delays in getting the insurance bill passed in parliament. Despite this both
companies remained firmly committed to venture.
In Oct.1998, the joint venture agreement was removed and additional resources
made available. Around this time Standard Life purchased 2% Infrastructure
Development Finance Company Ltd. (IDFC). Standard Life also started to use the
services of the HDFC Treasury Department to advise them upon their investment
insurance India.
One of many success stories over the last few years has been the actuarial student
program. The program was designed to identify high caliber individuals who would be
sponsored by Standard Life to study for their actuarial qualification in the UK.
The new company has 1 Indian actuary and 5 actuarial students in the team. With
a further 2students undergoing training in the UK. Both parent companies strongly
believe the program will benefit the new company. 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 Jan.2000 and expect team form the
UK joined a hand picked team form HDFC to form the core project term based in
Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5%
stake in HDFC bank. In further development standard Life to participate insurance. The
Assets Management Company promoted by HDFC to enter the mutual fund market. The
mutual fund market was launched on 20th July 2000 and on 10th Nov.2000 assets under
the management reached Rs. 1,063 crores. The company was incorporated on 14th Aug.
2000 under the name of HDFC Standard Life Insurance Company Limited. The ambition
of the company from as far as back as Oct. 1995 was first to be private company to re-
enter in the life insurance market in India. On 23rd of Oct.2000, this ambition was realized
when HDFC Standard Life Insurance Company Limited were only life company to be
granted a certificate of registration.
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HDFC are main shareholders in HDFC Standard Life Insurance Company
Limited with 81.4% while Standard Life own 18.6% given Standard Life’s existing
investment in the HDFC Group. This is maximum investment allowed under current
regulations.
HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of India's leading private 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.),
India's leading housing finance institution and a Group Company of the Standard Life,
UK. HDFC as on March 31, 2007 holds 81.9 per cent of equity in the joint venture.
Key strengths
Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the
financial expertise required to manage long-term investments of customers safely and
efficiently.
Range of Solutions
The company have a range of individual and group solutions, which can be easily
customized to specific needs. The company’s group solutions have been designed to offer
customers complete flexibility combined with a low charging structure.
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Track Record so far
The company’s gross premium income, for the year ending March 31, 2010 stood at Rs.
2, 856 crores and new business premium income at Rs. 1,624 crores.
The company has covered over 8, 77,000 lives year ending March 31, 2010.
Company’s Parentage
HDFC Limited.
HDFC is India’s leading housing finance institution and has helped build more
than 23, 00, 000 houses since its incorporation in 1977.
In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The
depositor base now stands at around 1 million depositors.
Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
High service standards
Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
Presented the ‘Dream Home’ award for the best housing finance provider in 2004
at the third Annual Outlook Money Awards.
Standard Life Group (Standard Life plc and its subsidiaries)
The Standard Life group has been looking after the financial needs of customers
for over 180 years
It currently has a customer base of around 7 million people who rely on the
company for their insurance, pension, investment, banking and health-care needs
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Its investment manager currently administers £125 billion in assets
It is a leading pensions provider in the UK, and is rated by Standard & Poor's as
'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's
Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at
the Money Marketing Awards, and it was voted a 5 star life and pensions provider
at the Financial Adviser Service Awards for the last 10 years running. The '5
Star' accolade has also been awarded to Standard Life Investments for the last
10 years, and to Standard Life Bank since its inception in 1998. Standard Life
Bank was awarded the 'Best
Vision
'The most successful and admired life insurance company, which means 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'.
Values
Values that we observe while working :
Integrity
Innovation
Customer centric
People Care “One for all and all for one”
Team work
Joy and Simplicity
Accolades and Recognition
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Rated by 'Business world' as 'India's Most Respected Private Life Insurance
Company' in 2004
Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s
number 1 personal finance magazine
Brief Profile of The Management Team
Mr. Amitabh Chaudhry
Managing Director and Chief Executive Officer
Mr. Amitabh Chaudhry is the Managing Director and Chief Executive Officer of HDFC
Standard Life.
Before joining HDFC Standard Life in Janaury 2010, he was the Managing Director and
CEO of Infosys BPO and was also heading an Independent Validation Services unit in
Infosys Technologies. Mr. Chaudhry started his career with Bank of America delivering
diverse roles ranging from Head of Technology Investment Banking for Asia, Regional
Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of
Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore
where he headed their investment banking franchise for South East Asia and structured
finance practice for Asia before joining Infosys BPO in 2005.
Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technology and
Science, Pilani and MBA in 1987 from IIM, Ahmedabad.
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Mr. Paresh Parasnis
Executive Director and Chief Operating Officer
Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of HDFC
Standard Life.
A fellow of the Institute of Chartered Accountants of India, he has been associated with
the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was
responsible, for driving and spearheading several key initiatives. As one of the founding
members of HDFC Standard life, Mr. Parasnis has been responsible for setting up
branches, driving sales and servicing strategy, leading recruitment, contributing to
product launches and performance management system, overseeing new business and
claims settlement, customer interactions etc.
Ms. Vibha Padalkar
Chief Financial Officer
Ms.Vibha Padalkar is the Chief Financial Officer of HDFC Standard Life.
Ms. Padalkar joined HDFC Standard Life in August 2008 after a seven year stint as
Executive Vice President-Finance at WNS Global Services, a NYSE listed leading global
business process outsourcing company. Vibha’s key achievement during her tenure at
WNS was to lead a team that successfully completed the Group’s IPO on the New York
Stock Exchange in a short span of six months. Prior to WNS, Vibha was with Colgate
Palmolive India for 7 years, including a short posting to the Group's New York
headquarters.
Ms.Padalkar became a member of the Institute of Chartered Accountants in England and
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Wales in 1992, after having completed the last part of her schooling as well as college
education in London.
Mr. Sharad Gangal
General Manager, Human Resources and Administration
Mr. Sharad Gangal is the General Manager HR and heads the vertical in HDFC Standard
Life.
Mr. Gangal joined HDFC Standard Life in July 2007 with rich experience of more than
25 years in spearheading various departments of Human Resources arena in the FMCG
and pharmaceutical industry. Before HDFC Standard Life, he was associated with
Cadbury India for 11 years followed by a stint at Cadbury Australia, Asian Paints for 5
years and Boehringer Mannhein for seven years.
Mr. Gangal is a Post Graduate in Human Resources. Employee engagement and Change
Management are his areas of specialization.
Mr. Vikram Mehta
General Manager, Sales and Marketing
Mr.Vikram Mehta heads the Sales and Marketing function for HDFC Standard Life.
Mr. Mehta joined HDFC Standard Life in February 2009. Before joining HDFC Standard
Life, he was associated with Citibank for 16 years serving various responsibilities
including the Head for Direct Sales - Citibank Credit Cards division in Germany,
Regional Director East - Citibank NA, India, and Acquisitions Head – Credit Cards,
Central and Eastern Europe cluster. Mr. Mehta started his career with Reckitt and
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Colman (now Reckitt Benckiser) in 1988, and was associated with the company for 4
years. He has been a part of FMCG and banking industry for over 20 years.
Mr. Mehta has completed Chemical Engineering from the Indian Institute of Technology
(IIT) Delhi and holds a PGDM from IIM Calcutta.
Mr. Prasun Gajri
Chief Investment Officer
Mr. Prasun Gajri is the Chief Investment Officer of HDFC Standard Life.
Mr. Gajri joined HDFC Standard Life in April 2009 with a rich experience of 14 years in
investments and banking industry. He started his career in 1995 with Citibank and was
associated with it for over 6 years delivering various roles. He joined Tata AIG Life
Insurance Company in October 2001 to start the investment function and stayed there
until April 2009, the last role being that of the Chief Investment Officer.
He holds a PGDM from IIM Ahmedabad and is also a CFA Charterholder.
Products
At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every need.
We cater to both, individuals as well as to companies looking to provide benefits to their
employees. This section gives you details of all our products. We have incorporated
various downloadable forms and product details so that you can make an informed choice
about buying a policy.
For individuals, we have a range of protection, investment, pension and savings plans that
assist and nurture dreams apart from providing protection. You can choose from a range
of products to suit your life-stage and needs.
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For organizations we have a host of customized solutions that range from Group Term
Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable
plans apart from providing long term value to the employees help in enhancing goodwill
of the company.
Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping
this in mind, we have a varied range of Products that you can choose from to suit all your
needs. These will help secure your future as well as the future of your family.
Protection Plans
You can protect your family against the loss of your income or the burden of a loan in the
event of your unfortunate demise, disability or sickness. These plans offer valuable peace
of mind at a small price.
Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance
Plan.
Investment Plans
Our Single Premium Whole of Life plan is well suited to meet your long term investment
needs. We provide you with attractive long term returns through regular bonuses.
Advantages:-
This participating plan is a Whole of Life plan aimed at providing long-term real
growth for your money
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By nature, this is a whole life policy where the term extends for the life However,
you can decide on the policy term by using a feature built into it. For a period of 4
weeks, after any one of the 10th, 15th, 20th and subsequent five-year
anniversaries, you can choose to receive the Sum Assured plus any attaching
bonuses, in full. Once money has been received, your policy will cease or you
may also continue the policy for your whole life
You can terminate the policy any time, after it has been in force for at least 6
month and receive a surrender value. We will pay discretionary surrender value
based on our experience. However, after completion of 3 years there will be a
guaranteed surrender value of 50% of premium paid. In addition to the guaranteed
surrender value, we may pay additional discretionary surrender value based on
our experience. Contract ends on the payment of the same
Currently Section 80C benefit is available for the premium paid under the plan to
the extent of 20% of the Sum Assured. In the event of a death claim the money
paid is exempt as per Section 10(10D), of the Income Tax Act 1961
Pension Plans
Our Pension Plans help you secure your financial independence even after retirement.
Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked
Pension Plus.
Savings Plans
Our Savings Plans offer you flexible options to build savings for your future needs such
as buying a dream home or fulfilling your children’s immediate and future needs.
Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit
Linked Endowment Plus, Money Back Plan, Children’s Plan, Unit Linked Youngstar,
Unit Linked Young star Plus .
Group Products
One-stop shop for employee-benefit solutions
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HDFC Standard Life has the most comprehensive list of products for progressive
employers who wish to provide the best and most innovative employee benefit solutions
to their employees. We offer different products for different needs of employers ranging
from term insurance plans for pure protection to voluntary plans such as superannuation
and leave encashment.
We now offer the following group products to our esteemed corporate clients:
Group Term Insurance
Group Variable Term Insurance
Group Unit-Linked Plan
An investment solution that provides funding vehicle to manage corpuses with Gratuity,
Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes
of your company
Also suitable for other employee benefit schemes such as salary saving schemes and
wealth management schemes.
UNIT LINKED YOUNG STAR PLAN
The HDFC Unit Linked Young Star Plan gives you:
An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investment.
Valuable protection in case of the insured parent’s unfortunate demise.
Very flexible benefit combinations and payment options.
Flexible additional benefit options such as critical illness cover.
4 easy steps to your own plan
Step 1 Choose the premium you wish to invest.
Step 2 Choose the amount of protection (Sum assured) you desire.
Step 3 Choose the additional benefit options you desire.
Step 4 Choose the investment fund or funds you desire.
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Step 1: Choose your regular premiumThis is the premium you will continue to pay each year of the policy.
The minimum regular premium is Rs.10, 000 per year. You can pay quarterly, half yearly
or annually.
Step 2: Choose your level of protection
You can choose any amount of Sum Assured with:
A minimum of 5 times your chosen regular premium.
A maximum of 40 times your chosen regular premium.
You can reduce but not increase the sum assured.
Step 3: Choose additional plan benefits
In addition to maturity benefit, you can choose from these benefit options.
Life Option- Death Benefit
Life & Health Option- Death Benefit + Critical Illness Benefit
Step 4: Choose your investment funds.
Choosing your investment option is important. We have 6 funds that give you: The potential for higher but more variable returns over the term of your policy; or
More stable returns with lower long-term potential.
Your investment will buy units in any of 6 funds designed to meet your risk approach.
All units in a particular fund are identical.
You can choose from all or any of the following 6 funds.
Fund Details Asset Class
Bank
deposits &
Money
Market
Govt.
Securities
& Bonds
Equit
y
Risk
&
Retur
n
Rating Fund Composition
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Liquid
Fund
Extremely low capital
risk.
100% -- -- Low
Secure
Fund
More capital stability than
equity funds.
-- 100% -- Low
Defensive
Fund
*Access to better long-
term returns through
equities.
*Significant bond
exposure keeps risk down.
-- 70% to
85%
15% to
30%
Modera
te
Balanced
Managed
Fund
*Increased equity
exposure gives better
long-term return.
*Bond exposure provides
some stability.
-- 40% to
70%
30% to
60%
Very
high
Growth
Fund
*For those who wish to
maximize their returns.
*100% investment
insurance high Indian
equities.
-- -- 100% Very
high
Benefits From the plan:
Death Benefit:
The company will pay the Sum Assured to the beneficiary.
Your family need not pay any further premiums.
The company will pay future premiums on your behalf.
Any Critical Illness Cover terminates immediately.
Critical Illness Benefit:
The company will pay the Sum Assured to the beneficiary.
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Your family need not pay any further premiums.
The company will pay future premiums on your behalf.
The Death Cover terminates immediately.
Changes in the Payment of Premium:
You can increase or reduce*, stop* or restart your regular premiums at any time.
You must have paid 3 years regular premiums and your fund must have a value above
Rs.15, 000.
Changes in Investment Decisions:
You can change your investment fund choices in two ways.
Switching: you can move your accumulated funds from one fund to another anytime.
Premium Redirection: you can pay your future premiums into a different selection of
funds, as per your need.
Additional single premiums:
You can, very cost effectively, invest any extra money you have to enhance the long-
term return and provide the little extras your child deserves.
You can invest more than your regular premiums anytime.
The minimum additional single premium amount is only Rs.5, 000.
Surrendering the Policy:
You can choose to surrender the policy at any time.
The surrender value will be the value of the units in the fund less any surrender
charges.
If you have paid 3 years of regular premiums, there will be no surrender charges.
Tax Benefits (Based on current tax laws)
You will be eligible for tax benefits under Section 80C and Section 10 (10D) of the
Income Tax Act, 1961.
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Under Section 80C, you can save up to Rs.33, 660 from your tax each year
(calculated on the highest tax bracket) as premiums up to Rs.1,00,000 are allowed as
a deduction from your tax income.
Under Section 10 (10 D), the benefits you receive from this policy are completely
tax-free.
Accessing Money EasilyYou can make lump sum withdrawals from your funds at any time provided:
The minimum withdrawal amount is Rs.10, 000.
After the withdrawal, the fund less any due charges exceeds both Rs.15,000 and the
surrender charges in force at the time of the withdrawal.
Eligibility
The age and term limits for the insured parent for taking out a Unit Linked Young Star Plan are as shown
below.
Benefit Options Term Period (Yrs.)
Age at Entry
(Yrs.)
Maximum Age
at Maturity
(Yrs.)Min. Max. Min. Max.
Life Option10 25 18 60 75
Life & Health
Option
10 25 18 55 65
Beneficiaries
The beneficiary (your child) is the sole person to receive the benefit under the policy.
Where the beneficiary is less than 18 years of age the benefit will be paid to the
Appointee.
Charges Applicable under the PolicyThe charges under the policy are deducted to provide for the benefits and the
administration provided by the company.
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Premium Allocation Charge:
This is a premium-based charge. After deducting this charge from your premiums, the
remainder is invested to buy units.
Premium Paid During Tear (Rs.) Investment Content Rate (ICR)
1st & 2nd yrs. 3rd year onwards
Regular
Premiums
Up to 1 ,99,999 70.00% 99.00%
From 2,00,000 to 4,99,999 80.00% 99.00%
From 5,00,000 to 9,99,999 85.00% 99.00%
10,00,000 and above 90.00% 99.00%
Single Premium Top-Up(s) 97.50% 99.00%
Fund Management Charges (FMC)
The daily unit price already includes a low fund management chare of 0.80% per annum
of the fund’s value. In the long term, the key to building great maturity values is a low
FMC.
Cancellation or Surrender Charges
On cancellation or surrender of the policy before 3 years of regular premiums have been
paid, the company will make a charge of 30% of the outstanding premiums due for the
remainder of this 3-year period.
Other Charges
Administration Charge
A charge of Rs.20 per month is charged to cover regular administration costs. The
company makes the charge by canceling units in each of the funds you have chosen, in
the proportion you have chosen.
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Risk Benefit Charges
Every month the company makes a charge for providing you with the death or critical
illness cover you have selected. The amount of the charge taken each month depends on
your age. The company takes the charge by canceling units in each of the funds you have
chosen, in the proportion you have chosen.
Fund switching Charges, Premium Redirection or Alteration Charges
Premium alterations include stopping and restarting your regular premium after 3 years.
The company does not charge for any of these options currently. The company deserves
the right to introduce such charges after approval from the IRDA.
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Icici prudential
ICICI bank
Overview
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Formerly Industrial Credit and Investment Corporation of India is India's largest private
sector bank by market capitalization and second largest overall in terms of assets. Total
assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2011 and profit after tax
Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2011. The
Bank also has a network of 1,700+ branches (as on 31 March, 2011) and about 4,721
ATMs in India and presence in 18 countries, as well as some 24 million customers (at the
end of July 2011). ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and
specialized subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank
is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares
listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock
Exchange of India Limited, and it’s ADRs on the New York Stock Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international balance sheet
among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and
representatives offices in 18 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary
through which the savings brand is operated), offshore banking units in Bahrain and
Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka,
and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa,
Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI
(Non-Resident Indian) population in particular.
ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in
total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The
bank's current and savings account (CASA) ratio increased to 30% in 2008 from 25% in
2007.
ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis Bank
and HDFC Bank.
History of ICICI Bank
1955: The Industrial Credit and Investment Corporation of India Limited (ICICI)
was incorporated at the initiative of World Bank, the Government of India and
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representatives of Indian industry, with the objective of creating a development
financial institution for providing medium-term and long-term project financing
to Indian businesses.
1994: ICICI established Banking Corporation as a banking subsidiary.formerly
Industrial Credit and Investment Corporation of India. Later, ICICI Banking
Corporation was renamed as 'ICICI Bank Limited'. ICICI founded a separate legal
entity, ICICI Bank, to undertake normal banking operations - taking deposits,
credit cards, car loans etc.
2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar
bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank
(established 1904) in the 1960s.
2002: The Boards of Directors of ICICI and ICICI Bank approved the reverse
merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, into ICICI Bank. After receiving all necessary regulatory
approvals, ICICI integrated the group's financing and banking operations, both
wholesale and retail, into a single entity. At the same time, ICICI started its
international expansion by opening representative offices in New York and
London. In India, ICICI Bank bought the Shimla and Darjeeling branches that
Standard Chartered Bank had inherited when it acquired Grindlays Bank.
2003: ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in
the UK it established an alliance with Lloyds TSB. It also opened an Offshore
Banking Unit (OBU) in Singapore and representative offices in Dubai and
Shanghai.
2004: ICICI opened a representative office in Bangladesh to tap the extensive
trade between that country, India and South Africa.
2005: ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with
about US$4mn in assets, head office in Balabanovo in the Kaluga region, and
with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also,
ICICI established a branch in Dubai International Financial Centre and in Hong
Kong.
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2006: ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened
representative offices in Bangkok, Jakarta, and Kuala Lumpur.
2007: ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in
Maharashtra State, and which had 158 branches in Maharashtra and another 31 in
Karnataka State. Sangli Bank had been founded in 1916 and was particularly
strong in rural areas. With respect to the international sphere, ICICI also received
permission from the government of Qatar to open a branch in Doha. Also, ICICI
Bank Eurasia opened a second branch, this time in St. Petersburg.
2008: The US Federal Reserve permitted ICICI to convert its representative office
in New York into a branch. ICICI also established a branch in Frankfurt.
2009: ICICI made huge changes in its organistion like elimination of loss making
department and restreching outsourced staff or renegotiate their charges in
consequent to the recession. In addition to this, ICICI adopted a massive approach
aims for cost control and cost cutting. In consequent of it, compesation to staff
was not increased and no bonus declared for 2008-09.
Prudential finance
Prudential Financial, Inc. is a Fortune Global 500 and Fortune 500 company whose
subsidiaries provide insurance, investment management, and other financial products and
services to both retail and institutional customers throughout the United States and in
over 30 other countries. Principal products and services provided include life insurance,
annuities, mutual funds, pension- and retirement-related investments, administration and
asset management, securities brokerage services, and commercial and residential real
estate in many states of the U.S. It provides these products and services to individual and
institutional customers through distribution networks in the financial services industry. In
1981, the company acquired Bache & Co., a stock brokerage service now operating as a
wholly owned subsidiary. Prudential has operations in the United States, Asia, Europe
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and Latin America and has organized its principal operations into the Financial Services
Businesses and the Closed Block Business.
Prudential is composed of hundreds of subsidiaries and holds more than $2 trillion of life
insurance. Its logo is the Rock of Gibraltar.
History
Started in Newark, New Jersey in 1875, Prudential Financial, Inc. as it is known today
was originally called the "The Widows and Orphans Friendly Society" and was founded
by John F. Dryden, who later became a U.S. Senator. It sold one product in the
beginning, burial insurance. John F. Dryden was president of Prudential until 1912. He
was succeeded by his son Forrest F. Dryden, who was the president until 1922.
A history of The Prudential Insurance Company of America up to about 1975 is the topic
of the book Three Cents A Week, referring to the premium paid by early policyholders.
Prudential's logo, The Rock of Gibraltar, is one of the most recognized corporate symbols
in the world. The use of the rock began after an advertising agent passed Laurel Hill, a
volcanic neck, in Secaucus, New Jersey on a train in the 1890s. The related slogans "Get
a Piece of the Rock" and "Strength of Gibraltar" are also still quite widely associated with
Prudential, though current advertising uses neither of these.
Prudential has evolved from a mutual insurance company (owned by its policyholders) to
a joint stock company. It is now traded on the New York Stock Exchange under the
symbol PRU. The Prudential Stock was issued and started trading on the New York
Stock Exchange on December 13, 2001. On October 16, 2007 the Fox Business Channel
picked Prudential as part of its Fox50 Index.
In 1999, Prudential sold its healthcare division, Prudential HealthCare, to Aetna for $1
billion.
On May 1, 2003, Prudential formalized the acquisition of American Skandia, the largest
distributor of variable annuities through independent financial professionals in the United
States. The combination of American Skandia variable annuities and Prudential fixed
annuities was part of Prudential’s strategy to acquire complementary businesses that help
meet retirement goals.
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In April 2004, the company acquired the retirement business of CIGNA Corporation.
On August 1, 2004, the U.S. Office of Homeland Security announced the discovery of
terrorist threats against the Prudential Financial headquarters in Newark, New Jersey,
prompting large-scale security measures such as concrete barriers and internal security
changes such as X-ray machines.
On August 28, 2006, federal and state securities regulators and the Department of Justice
announced parallel settlements and a total of $600 million in monetary sanctions against
Prudential Securities, Inc. (now known as Prudential Equity Group ) for misconduct
relating to improper market timing.
On November 28, 2007, Prudential Financial board of directors elected a new CEO
"The board of directors of Prudential Financial Inc. has elected a new chief executive
officer. Vice chairman John R. Strangfeld will take the reins of the Newark-based
insurance and financial services company on Jan. 1. Strangfeld, 53, currently runs all of
Prudential's U.S. businesses. He succeeds Arthur F. Ryan, who is retiring as CEO at the
end of 2007. Strangfeld also will become chairman after Ryan retires from that job in
May 2008.
Icici prudential
Overview:
ICICI Prudential is a joint venture between ICICI Bank and Prudential plc engaged in the
business of life insurance in India. ICICI Prudential is the largest private insurance
company and second largest insurance in India after LIC. ICICI Prudential Life Insurance
Company is a joint venture between ICICI Bank, a premier financial powerhouse, and
prudential plc, a leading international financial services group headquartered in the
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United Kingdom. ICICI Prudential was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).ICICI Prudential Life's capital stands at Rs.
37.72 billion (as on March, 2008) with ICICI Bank and Prudential plc holding 74% and
26% stake respectively. For the year ended March 31, 2008, the company garnered Retail
New Business Weighted premium of Rs. 6,684 crores, registering a growth of 68% over
the last year and has underwritten nearly 3 million retail policies during the period. The
company has assets held over Rs. 30,000 crore as on April 30, 2008.ICICI Prudential Life
is also the only private life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest
rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to
customers at the time of maturity or claims. For the past seven years, ICICI Prudential
Life has retained its leadership position in the life insurance industry with a wide range of
flexible products that meet the needs of the Indian customer at every step in life.
Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has
been one of the earliest private players. Since the time, ICICI Pru Life has been the leader
in terms of market share as indicated by the IRDA (Insurance Regulatory and
Development Authority, the regulator for Indian Insurance Industry) at its website.
Arguably the most innovative Indian Life insurer in terms of customer services and
products, ICICI Prudential has one of the largest distribution and servicing network with
over 2,000 proprietary offices & customer touch points across India. The 30,000
employee strong organization has one of the largest agency distributions in the industry.
With a growing product range to match the complex needs of the demanding customers
in a growing economy, the organization also has a history of successful.
During 2007-08, the organization's focus on rural business has proved its complex project
execution capability and strong partnerships for customer servicing.
In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK
Healthcare to settle insurance claims of its users.
The ICICI Prudential Edge - What makes us No. 1
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The ICICI Prudential edge comes from our commitment to our customers, in all
that we do - be it product development, distribution, the sales process or servicing. Here's
a peek into what makes us leaders.
1. Our products have been developed after a clear and thorough understanding of
customers' needs. It is this research that helps us develop Education plans that offer the
ideal way to truly guarantee your child's education, Retirement solutions that are a hedge
against inflation and yet promise a fixed income after you retire, or Health insurance that
arms you with the funds you might need to recover from a dreaded disease.
2. Having the right products is the first step, but it's equally important to ensure that our
customers can access them easily and quickly. To this end, ICICI Prudential has an
advisor base across the length and breadth of the country, and also partners with leading
banks, corporate agents and brokers to distribute our products.
3. Robust risk management and underwriting practices form the core of our business.
With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a
smooth and hassle-free claims process.
4. Entrusted with helping our customers meet their long-term goals, we adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, our 20,000 plus strong team is given the opportunity to
learn and grow, every day in a multitude of ways. We believe this keeps them engaged
and enthusiastic, so that they can deliver on our promise to cover you, at every step in
life.
Vision & Values
Vision:
To be the dominant Life, Health and Pensions player built on trust by world-class people
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and service.
This we hope to achieve by:
Understanding the needs of customers and offering them superior products and
service
Leveraging technology service customers quickly, efficiently and conveniently
Developing and implementing super risk management and investment strategies
to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our
employees
And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5
core values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of
the values describes what the company stands for, the qualities of our people and the way
we work.
We do believe that we are on the threshold of an exciting new opportunity, where
we can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.
Values:
Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundary less, Ownership, and Passion. These values shine forth in all
we do, and have become the keystones of our success.
Promoters
ICICI Bank
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank
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with over 50 years presence in financial services and with assets of over Rs 3569.32 bn
(USD 88 billion) as on June 30, 2007. The Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries in the areas of investment banking, life
and non-life insurance, private equity and asset management. ICICI Bank is a leading
player in the retail banking market and services its large customer base through a network
of over 950 branches (including extension counters), 3469 ATMs, call centers and
internet banking (www.icicibank.com) to ensure that customers have access to its
services at all times
Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK and
Europe, the US and Asia, provides retail financial services products and services to more
than 20 million customers, policyholder and unit holders and manages over £256 billion
of funds worldwide (as on June 30,2007). In Asia, Prudential is the leading European life
insurance company with life operations in China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is
the second largest retail fund manager for Asian sourced assets ex-Japan as at June 2006.
Its fund management business has expanded into a total of ten markets : China, Hong
Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab
Emirates.
Fact Sheet
THE Company
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
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ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. For the first quarter ended June 30, 2007, the
company garnered Rs. 987 crore of weighted retail + group new business premiums and
wrote over 450,000 retail policies in the period. The company has assets held to the tune
of over Rs. 18,400 crore.
ICICI Prudential is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the
highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations
to customers at the time of maturity or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1 private life
insurer in the country, with a wide range of flexible products that meet the needs of the
Indian customer at every step in life.
DistributionICICI Prudential has one of the largest distribution networks amongst private life insurers
in India. It has a strong presence across India with over 680 branches and over 235,000
advisors.
The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-
operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank,
Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban
Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The
Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited.
ICICI Bank
About ICICI Bank: ICICI Bank Ltd (NYSE:IBN) is India's largest private sector bank
and the second largest bank in the country with consolidated total assets of about US$
102 billion as of June 30, 2009. ICICI Bank’s subsidiaries include India’s leading private
sector insurance companies and among its largest securities brokerage firms, mutual
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funds and private equity firms. ICICI Bank’s presence currently spans 19 countries,
including India.
Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK, Europe,
US, Asia and the Middle East, provides retail financial services products and services to
more than 21 million customers, policyholder and unit holders and manages over £249
billion of funds worldwide (as of March, 2009). In Asia, Prudential is the leading Europe-
based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential
is one of the largest asset management companies in terms of overall assets sourced in
Asia ex-japan, with £36.8 billion funds under management (as of March, 2009) and
operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia,
Singapore, Taiwan, Vietnam and United Arab Emirates.
MANAGEMENT PROFILE
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.
Ms. Chanda D. Kochhar, Chairperson
Mr. N. S. Kannan, Director
Mr. K. Ramkumar, Director
Mr. Barry Stowe, Director
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Mr. Adrian O’Connor, Director
Mr. Keki Dadiseth, Independent Director
Prof. Marti G. Subrahmanyam, Independent Director
Ms. Rama Bijapurkar, Independent Director
Mr. Vinod Kumar Dhall, Independent Direct
Mr. V. Vaidyanathan, Managing Director & CEO
Management Team
The ICICI Prudential Life Insurance Company Limited Management team comprises
reputed people from the finance industry both from India and abroad.
Mr.V.Vaidyanathan, Managing Director & CEO
Dr. Avijit Chatterjee, Appointed Actuary
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, EVP – Customer Service & Technology
Mr. Azim Mithani, Chief Actuary
Mr. Puneet Nanda, Executive Vice President & Chief Investments Officer
Awards
The International Council of Customer Service Organizations (ICCSO) recently
awarded ICICI Prudential Life the International Service Excellence Awards 2009
in the categories of Customer Charter – Winner, Service Excellence in Large
Business – Highly Commended and Customer Service Leader awarded to Ms.
Priya Nayak, VP-Service Quality.
ICICI Prudential Life Insurance has won the first runner up award for the Best
Defect Elimination in Service & Transaction category at Asian Six Sigma
Excellence Summit 2009.
ICICI Pru Life ranked as the Most Trusted Pvt. Life Insurance brand in the Brand
Partial Withdrawal Charge- One partial withdrawal in a policy
Year would be free. All subsequent partial withdrawals in that policy year
would be charged at Rs100 per withdrawal.
Research
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Methodology
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RESEARCH METHODOLOGY
RESEARCH DESIGN
1) Statement of the problem
2) Research objectives
3) Research Methodology
Type of study
Data collection
Sampling
Tools & techniques
4) Scope of study
5) Limitations
I. Defining Research Problem
Problem definition is the first & foremost part of the research process, without
this research cannot be completed until and unless there is a problem or objective, the
research cannot be initiated. Problem definition refers to the objective on which research
has to be done, so problem definition in my project work is comparative study of HDFC-
SLIC & ICICI Prudential Life Insurance Company and to know which company can
provide better service to consumer.
II. Objectives of the study: To know about company history and organization structure.
Provide an overview of HDFC standard life insurance company ltd. &
ICICI Prudential Company.
To make a comparative performance of plans
To study the expectations of customers from insurance companies.
Position of Insurance Companies in the mind of the consumer
III. Research Methodology
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Research refers to search for knowledge. In other words research is defined as a
careful investigation or inquiry especially through for new facts in any branch of
knowledge.
Research Methodology is one of the important aspects of any project. This gives
us clear-cut view of method so used while gathering the information so needed for the
completion of the report.
Type of Study: Study is exploratory & descriptive in nature.
Data Collection: Two types of data sources will be taken into consideration
Primary Data
Secondary Data
Primary Data: The primary data are those which are collected a fresh and for the first
time and thus happen to be original in character. Under this project direct collection of
data from source of information & techniques and survey through questionnaire for
customers has been considered.
Secondary Data: Secondary data is one which has already been collected by someone
else and which has already been passed through statistical processing. Under this project
secondary data is been collected from journals, magazines, & web sites.
Developing Sample Design :
Sample design refers to number of items to be included in sample. It refers to the
technique or procedure the researcher would adopt in selecting items from the sample.
Type of universe: The universe is the entire group of items the researcher wishes to
study and about which they plan to generalize. Under this project type of universe include
people residing in Jaipur.
Sampling Unit: Sampling units are the persons, who have purchased the insurance plan
in Jaipur.
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Size of Sample: Number of people surveyed. Generally large Sample gives more reliable
result than small sample. The sample Consist of 100 respondents.
Sampling Procedure: Sampling procedure refers to technique Used in selecting the
items for the sample. Under this project selection of respondents is on the basis of
convenience sampling.
Tools and Techniques: For this survey Convenience- Sampling technique is used.
Scope of Study: This study is mainly confined to the customer of Jaipur.
Comparison is done on the basis of secondary sources.
The entry of foreign MNC’s and the conductive business environment fostered by the government, it is no wonder that the re-entry of private insurance has marked a second coming for the sector.
In just five years, the sector has undergone a makeover, offering more choice, better services, quicker settlement, tighter regulation and greater awareness‘s the environment become more and more competitive and services and products become alike, creating a differentiation is becoming extremely tough.
The HDFC standard life insurance company and ICICI prudential life insurance are top private players in the market so I have taken both the companies for their comparative analysis.
Limitations of the Study:.
The facts and concepts of Respondents may be biased, imaginary and may
be based entirely on their personal experience.
The sample size was not enough to reach on any exact conclusion.
Study is based on primary or secondary data that may not be true. Most of
the people are not interested to give the right data.
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Comparative
analysis of
unit link plans
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Company NameHDFC Std. Life Insurance ICICI Pru life Insurance
Plan Name Young starLife Time Plus
Age 18 to 65 0 to 65
Sum AssuredMinimum-Rs.1,00,000
Maximum-No limit
Minimum-Rs.1,00,000
Maximum-1crore
Premium Minimum-Rs.10, 000
Maximum-no limit
Minimum-Rs.20, 000
Maximum-3,00,000
Lock in period3 years 3 years
Surrender allowedAfter 3 years: no chargesBefore lock in period-30% of outstanding premiumOP= difference between regular premium expected & received in the first two years
After 3 years: you get 92%
After 4 years: you get 94%
After 5 years: you get 96%
After 6 years: you get 98%
After 7years & above: you get 100% of fund value
Death and Maturity On Death-Sum Assured +
future premiums will be
given by HDFC on the
behalf of policyholder.
On maturity- Value of
accumulated fund is given
to the beneficiary.
On Death- Sum Assured +
Fund Value will be given to
the nominee.
On Maturity-Fund value is
given to the policyholder
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Fund Option1. Liquid Fund2. Secure Managed
Fund3. Defensive Managed
Fund4. Balanced Managed
Fund 5. Equity Managed
Fund6. Growth Fund
Maxi miser ll Balancer ll Protector ll Preserver
Term RiderFor accident, Critical Illness- max. Rs.25,00,000
For accident, Critical Illness, Permanent Disability
ChargesFund Mgmt. Charges- 0.80% per annumAdministration Charges- Rs.20 per MonthRisk Benefit Charges- Depend upon the age of the policyholder.Partial Withdrawal Charge- 6 partial withdrawal in a policy year is free. All subsequent partial withdrawal in that policy year would be charged at Rs.250 per withdrawal.Fund switching Charges, 4 switches allowed every policy year free. Subsequent switches will be charged at Rs. 100 per switch premium
Fund Management Charges-Different Charges for different funds selected.
Maxi miser ll-1.50% p.a.
Balancer ll-1.00% p.a.
Protector- 0.75% p.a.
Preserver- 0.75% p.a.
Administration Charges-Rs.60 per MonthPartial Withdrawal Charge-one partial withdrawal in a policy year is free. All subsequent partial withdrawal in that policy year would be charged at Rs.100 per withdrawal.Switching Charges- 4 switches allowed every policy year free. Subsequent switches will be charged at Rs. 100 per switch.
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Data analysis and
interpretation
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Respondent Profile: -(1%=1 Responded)
1: Perception of the people about the Insurance
By analyzing the above question we came to know about the different purposes for which the people take insurance because the preferences changes according to the people
S. No. Particulars Response
A Necessity for protection security 66
B Imposition of a burden of expenses 16
C A compulsory tool for tax saving 18
INTERPRETATION:-
As we all know or we can say security is another name of insurance and this has been proves by analyzing the above question. that is on the basis of above analysis, we can say that people mostly treat insurance as a protection instrument. 33 people think insurance as a necessity for protection & security. Some people treat it for taking the tax benefit.
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2: Number of people having any insurance policy
By analyzing this question we can see that how many people are insured and see their future as a secured one
S.NO. Particulars Response
1 YES 96
2 NO 4
INTERPRETATION:-
We can easily see from the table and chart that most of the people are insured and very less are uninsured.this shows that the people are more sensitive towards security and need security for themselves and for their children
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3: People having the of different bank insurance policy
By analyzing this question we can see the different banks that provide the insurance to the customer and from which bank most of the people prefer to take insurance
S.NO. Particulars response
1 HDFC 34
2 ICICI 22
3 SBI 16
4 OTHERS 28
INTERPRETATION:-It is very clear from the above chart and table that most of the people are interested and taken loan from the HDFC standard life insurance.This shows that the HDFC is providing with more customer catching and oriented policies which satisfies the customer .
4: - Main consideration that a customer looks at while purchasing an Insurance Policy.
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The relevance of this question is very high because the response of this question makes us to know that what really customers want in their insurance policy
S. No. Particulars Response
A TAX 10
B SAVING 30
C PROTECTION 52
D PENSION 4
E INVESTMENT 4
INTERPRETATION:-
Protection and saving is the foremost priority of the people in today’s world. Thus On the basis of above analysis, it is very clear that people purchase insurance policy mostly for the protection purpose so use to purchase traditional plans. The second priority is been given to saving by the customers
5: -Factors of the company influence the decision making of customer while purchasing Insurance from the company.
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The purpose of this question is to know about the factors which highly affect the decision of the customer when they purchase a insurance policy.The response of this question help the company to improve the parameter which have the greater impact on the decision the customer and should take steps in the area where they lack behind.
S. No. Particulars Response
A Standing and goodwill of the company
46
B Product range of the company 8
C Advertisement being released by the company
4
D Services being given by the company 18
E Returns of bonus declared by the company
24
INTERPRETATION:-On the basis of above analysis, we can say that people prefer the companies those
have very highly goodwill in the market. Thus it is very important for the company to maintain its goodwill if they wants to grow and sustain in the market and apart from this while purchasing them also use to give more weight age to return also.
6: -Plan that a respondent prefers to buy
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This question helps to know about the preference of the customer in respect to the various plans available in insurance industry. And the highest preference given by the customer to a plan should be more improved with new offers at a regular pace plan
S. No. Particulars Response
A Protection Plan 46
B Investment Plan 20
C Pension Plan 10
D Children Plan 24
INTERPRETATION:-As we already seen in the analysis of the above questions that people take insurance mainly for the protection purpose and from the above question analysis, we can say that people prefer to buy protection plans and the secondary position in the preference of the plans is on children plans mostly.
7: - The source of Awareness of HDFC Standard Life Insurance
Company:-
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By analyzing the response of the above question we came to know about people associated with the HDFC standard life and the most prominent source which help the people to know about the HDFC standard life
S. No. Particulars Response
A Print Media 24
B Electronic Media 30
C Agents 36
D Others 10
INTERPRETATION:-
In this chart, we can see that the agents play major role in awaring people about the HDFC-SLIC. Apart from this electronic media is also a source for awareness. So it is suggestive to improve the network of agents so that more people become aware about the Hdfc standard life insurance8: - Customers’ expectations from Life Insurance CompaniesThis question is more important from the point of company because from the response of this question we came to know about the need and want of customer which they want in their policy from the company. The company who is providing all these services can improve them and those who are not having such offers can add them to their insurance policy plan.
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S. No. Particulars Response
A Innovative Products
8
B Reasonable Premium 24
C Better Customer Service 46
D High Risk Coverage 22
INTERPRETATION:-
In the old time producer was the king but now customer is the king so the preferences of the customer are given the highest priority and it is very important for the company to give the best customer service so that more and more customer get associated with the company and associated customer remains there with the company for the longer period. And on the basis of above analysis chart, we can say that people expect better customer service from the insurance companies & reasonable premium on their investment.9: - HDFC Standard Life Insurance Company provides better facilities than ICICI Prudential Life Insurance Company
This question helps to know about the best company between ICICI and HDFC providing the facility of insurance policy
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S. No. Particulars Response
A Yes 34
B No 2
C Cant say 64
INTERPETATION:-
Among the two companies more people prefer the HDFC more than the ICICI. but On the basis of above analysis, we can say that people are not aware about these companies so we can not come on any conclusion.
10: satisfaction with the plan which customer owe in their insurance policy
It is very necessary that people should get satisfied what they take but at times it happens that we get what we want didn’t may because of scarcity of the plans available with the companies. These question responses will tell us the unsatisfactory acceptance of the customer
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S. No. Particulars Response
A Yes 66
B No 16
C I haven’t bought any 18
INTERPETATION:-
On the basis of above analysis, we can say that people are satisfied with the plans they have bought. But there are many people who are not satisfy with the plans they opted for and some are confused with their option.
Q 11. Which company is beneficial fot the assured return?
1 LIC 40
2 TATA AIG 25
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3 HDFC Standard life 35
Interpretation: LIC is best for assured return than HDFC than TATA.
Q.12. Which company having higher ROI(Rate of Return)?
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1 ICICI PRUDENTIAL 32
2 BAJAJ ALLIANZ 25
3 LIC 15
4 HDFC STANDARD LIFE 28
Interpretation:
ICICI Providing higher rate of return than HDFC than BAJAJ ALLIANZ than LIC
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FINDING
Agents play major role in awareness about the benefits of insurance.
People think insurance as a protection tool.
People purchase insurance policy mostly for protection purpose and some of
people for saving.
The goodwill of the company also attracts customers toward an insurance
company.
People also take insurance policy as a security for their children.
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CONCLUSION
On the basis of my study, I conclude that, both the companies are providing very
good facilities to their customers. HDFC Standard Life Insurance is the one that is
providing wavier of premium to its customer in case of death of the life assured, whereas
ICICI is not providing this facility to its customers.
Both the companies have same lock in period i.e.3 years. Surrender charges of
these companies are different from each other. On maturity, both the companies provide
the amount equal to the market value of the units. Charges taken to manage the fund are
different in both the companies.
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SUGGESTIONS
Advertisement should be done on television and especially Posters and Banners.
This will greatly help in raising awareness level.
Insurance Companies should show more commitment with the customers.
Private companies give better services to the customers as compared to public
companies.
The private company should create good relations and communication.
Private companies should collaborate to spread awareness regarding the benefits
of insurance plans provided by the Private Companies.
Agents have got maximum influence on customers. They are the one who
introduces the prospect to different policies. So agents should be given full-
fledged training and the training should be strict.
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QUESTIONNAIRE
I PALLAVI UPADHAYA FROM APEX INSTITUTE OF MANAGEMENT AND SCIENCE IS CONDUCTING THIS RESEARCH FOR MY PROJECT REPORT AND ASSURE YOU THAT THE INFORMATION FILLED WILL BE KEPT CONFIDENTIAL
Name…………………………………………………………………………
Age…………………………………………………………………………..
Occupation:-…………………………………………………………………..
Q.1: What do you think about insurance?a) Necessity for protection securityb) Imposition of a burden of expensesc) A compulsory tool for tax saving
Q.2: Do you have any insurance policy?a) Yesb) No
Q.3: If yes, which Bank’s insurance policy you have?a) HDFCb) ICICIc) SBId) OTHERS
Q.4: Main consideration that you look at while purchasing an insurance policy.a) Taxb) Savingc) Protectiond) Pensione) Investment
Q.5: What do you see while purchasing an insurance policy from the company?a) Standing and goodwill of the companyb) Product range of the companyc) Advertisement being released by the companyd) Services being given by the companye) Returns of bonus declared by the company
Q.6: Which plan would you like to buy?
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a) Protection Planb) Investment Planc) Pension Pland) Children Plan
Q.7: How do you know about HDFC Standard Life Insurance Company?a) Print Mediab) Electronic Mediac) Agentsd) Others
Q.8: What do you expect from HDFC Standard Life Insurance Company?a) Innovative Productsb) Reasonable premiumc) Better Customer Serviced) High risk coverage
Q.9: Do you think that HDFC Standard Life Insurance Company provides better facilities than ICICI prudential life insurance company?a) Yesb) Noc) Can’t say
Q.10. Are you satisfied with the plan you bought?a) Yesb) Noc) I haven’t bought any
Q.11.Which Company is beneficial for the assured returns?a) LICb) Tata AIGc) HDFC standard life
Q.12.Which Company having higher ROI (Rate of returns)?a) ICICI Prudentialb) Bajaj Allianz c) LICd) Hdfc standard life
BIBLIOGRAPHY
BROUCHERS
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HDFC Standard Life Insurance ICICI Prudential Life Insurance
BOOKS Indian financial system
Insurance law & regulations
Elements of banking and insurance
MAGAZINE Professional Bankers by the ICFAI Business University Press