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8/3/2019 61443170 the Insurance Industry in India Hdfc(1)
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2010
Bhupendra Kumar Singh
HDFC STANDERD LIFE INSURANCE
COMPANY Ltd.
1/1/2010
PROJECT REPORT ON HDFC
STANDERD LIFE INSURENCE
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TITLE OF THE STUDY
“Comparative analysis of HDFC standard life insurance company limited with other insurance
company for HDFC standard life insurance company ltd.”
ACKNOWLEDGEMENT
I, BHUPENDRA KUMAR SINGH the student of INSTITUTE OF MANGEMENT & RESERCH ,
GHAZIABAD feel honored in doing my summer training in a renowned company like The HDFC
STANDERED LIFE INSURANCE COMPANY. I did my summer training from 10th of July to 4th of
August.
I am grateful to MR. RISHI TAPARIA (Placement Head of IMR) and Mrs. JYOTSNA MAM(Training Guide)
without whose guidance and motivational encouragement I could not do anything.
I also acknowledge and express my deepest gratitude to Mr. DEEPENDRA SINGH (UNIT SALES MANAGER),
The HDFC STANDERED LIFE INSURANCE COMPANY (Lucknow) for providing me this opportunity of industrial
training in the most adaptable environment. I am indebted to them and for extending their valuable
guidance, comments, suggestions and inspiration for this project.
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I would in particular like to express gratefulness to all my respondents of questionnaires, my friends and
colleagues who have helped me directly as well as indirectly, in carrying out this project work.
And lastly, I wish to express profound respect and love towards my family members, for their constant
support and inspiration at each stage of not only this project work but also during the course of the
study of the entire P.G.D.M.(MARKETING)Degree.
BHUPENDRA KUMAR SINGH
Institute of Management & Research
Ghaziabad.
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PREFACE
SerialNo.
Detail Page No.
Part-I
A. INTRODUCTION
1. HISTORICAL PERSPECTIVE
2. THE INSURANCE INDUSTRY IN INDIA - AN OVERVIEW
3. INDUSTRY REFORMS
4. PRESENT SCENARIO – LIFE INSURANCE INDUSTRY IN INDIA
5. INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
6. KEY REFORMS
B. PART-II
1. COMPANY PROFILE OF HDFC STANDARD LIFE INSURANCE COMPANY LTD.
2. BOARD MEMBERS
3. GROUP COMPANIES
4. CORPORATE OBJECTIVE
5. PRODUCTS & SERVICES
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I. PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE
II. INTROUCTION TO UNIT LINKED FUNDS
6. DISTRIBUTION STRATEGY
C. PART-III
1. RESEARCH DESIGN
I. INTRODUCTION
II. STATEMENT OF THE PROBLEM
III. OBJECTIVE OF THE STUDY
IV. RESEARCH MATHDOLOGY
V. SAMPLING
VI. STUDY AREA
D. PART -IV
1. COMPARITIVE ANALYSIS
2. MARKET PROBLEMS
I. SUGGESTIONS FOR IMPROVEMENT
3. ANALYSIS AND INTERPRITATION
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4. FINDINGS
5. FUTURE LINE OF RESEARCH
6 CONCLUTION
8 REFERENCES/ ANNEXURE
PART-I
INTRODUCTION
HISTORICAL PERSPECTIVE
In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ),
Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of
resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine.
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This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest
traces of insurance in the form of marine trade loans and carriers’ contracts. Insurance in India has evolved
over time heavily drawing from other countries, England in particular.
1818 saw the advent of life insurance business in India with the establishment of the Oriental Life
Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had
begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British
Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental
(1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was
dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance,
Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard
competition from the foreign companies.
In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian
Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the
Indian Insurance Companies Act was enacted to enable the Government to collect statistical information
about both life and non-life business transacted in India by Indian and foreign insurers including provident
insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier
legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for
effective control over the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number
of insurance companies and the level of competition was high. There were also allegations of unfair trade
practices. The Government of India, therefore, decided to nationalize insurance business.
An Ordinance was issued on 19th
January, 1956 nationalizing the Life Insurance sector and Life Insurance
Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as
also 75 provident societies—245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s
when the Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the west and the consequent
growth of sea-faring trade and commerce in the 17th
century. It came to India as a legacy of British
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occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd.,
in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd was set up. This
was the first company to transact all classes of general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The
General Insurance Council framed a code of conduct for ensuring fair conduct and sound business
practices.
In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The
Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance
business was nationalized with effect from 1st
January, 1973. 107 insurers were amalgamated and grouped
into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd.,
the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance
Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst
1973.
This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The
process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it
been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN
Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The
objective was to complement the reforms initiated in the financial sector. The committee submitted its
report in 1994 wherein , among other things, it recommended that the private sector be permitted to
enter the insurance industry. They stated that foreign companies are allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and
Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the
insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the
IRDA include promotion of competition so as to enhance customer satisfaction through increased
consumer choice and lower premiums, while ensuring the financial security of the insurance market.
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The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign
companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under
Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging
from registration of companies for carrying on insurance business to protection of policyholders’ interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as
independent companies and at the same time GIC was converted into a national re-insurer. Parliament
passed a bill de-linking the four subsidiaries from GIC in July, 2002.
Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation
of India and 14 life insurance companies operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking
services, insurance services add about 7% to the country’s GDP. A well-developed and evolved insurance
sector is a boon for economic development as it provides long- term funds for infrastructure development
at the same time strengthening the risk taking ability of the country.
THE INSURANCE INDUSTRY IN INDIA
AN OVERVIEW
June 2010
The US$ 41-billion Indian life insurance industry is considered the fifth largest life insurance market, and
growing at a rapid pace of 32-34 per cent annually, according to the Life Insurance Council.
Life Insurance Corporation of India (LIC) registered an 83 per cent increase in new business income in
March 2010, while private players posted a 47 per cent growth in new business premium.
Moreover, according to IRDA, insurers sold 10.55 million new policies in 2009-10 with LIC selling 8.52
million and private companies 2.03 million policies. At the end of March 2010, LIC held 65 per cent
market share in terms of new business income collection with the private sector contributing the
remaining 35 per cent share in 2009-10.
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According to IRDA, total premium collected in 2009-10 was US$ 24.64 billion, an increase of 25.46 per
cent over US$ 19.64 billion collected in 2008-09.
A growth of 18 per cent is expected in total premium income and is likely to cross the US$ 64.93 billion
mark, according to B Mathur, Secretary General, Life Insurance Council.
General Insurance
Vehicle financing firm, Magma Fincorp has applied to IRDA for approval and expects clearance in 2010.
The firm is entering the general insurance business in a joint venture with Germany-based company
HDI-Gerling International Holding AG.
According to data released by IRDA, the general insurance industry recorded 13.42 per cent growth in
gross premium collected during 2009-10. The industry collected gross premium of US$ 7.84 billion in
2009-10 compared with US$ 6.91 billion in 2008-09.
The public sector players posted 13.85 per cent growth in gross premium in 2009-10. At the same time,
private players recorded a 12.82 per cent increase in gross premium till March 2010.
During April-May 2010, non-life insurers mopped up US$ 1.59 billion against US$ 1.34 billion in the
previous year, registering an increase of 19 per cent according to IRDA data.
The four state-run insurers fared better than their private counterparts, with New India Insurance
collecting the maximum premium of US$ 294.5 million in April and May 2010, compared to US$ 253.15
million in the previous year, growing by 16.34 per cent.
According to the IRDA's Summary Reports of Motor Data of Public and Private Sector Insurers - 2008-
09, nearly 30 million vehicle policies were issued and a total premium worth US$ 1.83 billion was
collected.
Health Insurance
The Indian health insurance market has emerged as a new and lucrative growth avenue for both the
existing players as well as the new entrants. According to a latest research report "Booming Health
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Insurance in India" by research firm RNCOS released in April 2010,all emerging trends including the key
factors driving the market growth. Furthermore, the report also identifies what could be the possible
growth areas for expansion and gives a detailed overview of the competitive landscape. The Indian
health insurance market has continued to post record growth in the last two fiscals (2008-09 and 2009-
10). Moreover, as per the RNCOS estimates, the health insurance premium is expected to grow at a
compound annual growth rate (CAGR) of over 25 per cent for the period spanning from 2009-10 to
2013-14.
According to a report published by Yes Bank and an industry body in November 2009, the medical
insurance sector would account for US$ 3 billion in the next three years.
Health insurance premium collections touched US$ 1.45 billion in 2008-09 compared with US$ 1.13
billion in the previous year, IRDA said in its annual report for 2008-09.
Moreover, total premium between April and December 2009 was US$ 1.35 billion, up from US$ 1.12
billion, an increase of 20 per cent, as per figures released by the regulator.
Banc assurance
Private insurers have adopted banc assurance in a much bigger way than the state-owned Life
Insurance Corporation (LIC) in recent years. Banc assurance is distribution of insurance products
through a bank's network.
In 2008-09, private insurers forked out US$ 44.64 million as commission for banc assurance, while the
payout by LIC for this distribution model was only US$ 26,075, as per official data.
According to Towers Watson India, Banc assurance Benchmarking survey 2009-10, released in May
2010, banc assurance will play a crucial role in the overall development of the Indian insurance sector
with the channel expected to generate 40 per cent of private insurers premium income by 2012,
compared to the current 25-28 per cent. In general insurance, presently 17 per cent of premium income
comes from banc assurance.
Investments
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The Indian insurance unit of Dutch financial services firm ING plans to invest US$ 51 million in
2010/11 to fund expansion in India.
Private life insurer Future Generally India will expand its distribution network by opening around
100 branches in addition to its existing network of 91 branches during 2010. It will also increase
the agency force by 21,000 to 65,000 people.
Max Bupa, the health insurance JV between UK's Bupa and the Max Group plans is set to
invest a further US$ 134.9 million in its health insurance segment over the next five years.
Besides the existing six cities, it plans to foray into Surat, Jaipur and Ludhiana by the end of
2010.
Investment Policy
According to a guidance note released by IRDA, the regulator has increased the lock-in period
for all unit-linked insurance plans (ULIPS) to five years from the current three years, thereby
making them long-term financial instruments, which basically provide risk protection. The
commission and expenses have also been reduced by evenly distributing them throughout the
lock-in period. Moreover, IRDA said that insurers will provide a mortality cover or a health cover
to all ULIPS, other than pension and annuity products, thereby increasing the risk cover
component on them.
IRDA has ordered life insurers to offer customers a guaranteed return of 4.5 per cent per annum
on pension and annuity plans.
Exchange rate used: 1 USD = 46.38 INR (as on June 2010)
INDUSTRY REFORMS
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Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December
1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its
schedule of framing regulations and registering the private sector insurance companies. Since being set up
as an independent statutory body the IRDA has put in a framework of globally compatible regulations.
The other decision taken simultaneously to provide the supporting systems to the insurance sector and in
particular the life insurance companies was the launch of the IRDA online service for issue and renewal of
licenses to agents. The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell their products.
PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA
As per a recent report "Indian Insurance Industry Forecast (2007-2009)" published by RNCOS, it has
been found that "Life insurance market in India will likely reach around Rs 1683 Billion by the year 2009.
Changing consumer behavior, GDP growth rate, changing socio economic demography, and natural
calamities occurring from time to time will remain the key contributors in this growth."
April 2007, current FY’s first month, saw new businesses expand by 49%, whereas general insurance
players witnessed 16% increase during the same month.
Outstanding performance of SBI Life, ICICI Prudential, and LIC helped the Indian life insurance industry
in mopping up almost Rs 2,892 crore in April this year, whereas it was Rs 1,996 crore in the same
month last year. On the other hand, Reliance Life, ING Vysya, and Bajaj Allianz were amongst those
insurers that came across a decline in their premium collection over the review period, as per the data
compiled by Insurance Regulatory & Development Authority.
Selling almost 15,89,684 policies during this April, LIC - the largest life insurer in India -witnessed 57%
growth in its new premiums that reached to Rs 2,134 crore. LIC grabbed a market share of almost
71.56% during this April. Non-life or general insurance industry saw a growth of 16% during this month,
and ICICI Lombard was the second largest player in this segment. Business Standard published this in
news on 14 June 2007.
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Looking at the current scenario, it can be made out that the four established public-sector players
namely, National Insurance, United India, Oriental Insurance, and New India Assurance, may have to
face stiff competition from private players like Bajaj Allianz, Reliance General, and ICICI Lombard, as
per Business Standard.
According to RNCOS report "Indian Insurance Industry Forecast (2007-2009)", "Performance of life
insurance industry remained better in comparison to non life segment over the five year period spanning
2001-2005. Some qualitative factors, like the deregulation rate of insurance market, and implementation
rate of technologies prevailing in the market, need to perform up to the industry expectations in order to
improve the growth rate of Indian life insurance market."
This report provides an objective analysis of all aspects of Indian insurance industry. The issues
addressed in this report include: prospective investment areas in Indian life insurance industry, market
strategies adopted by key players in this segment, opportunities and challenges present in this industry,
and so on.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in December
1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously such to its
schedule of framing regulations and registering the private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to the insurance sector and in
particular the life insurance companies was the launch of the IRDA online service for issue and renewal of
licenses to agents.
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Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..
(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall
have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance
business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and
functions of the Authority shall include,
(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such
registration;
(b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination
by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other
terms and conditions of contracts of insurance;
(c) Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance
intermediaries and agents;
(d) Specifying the code of conduct for surveyors and loss assessors;
(e) Promoting efficiency in the conduct of insurance business;
(f) Promoting and regulating professional organizations connected with the insurance and re-insurance
business;
(g) Levying fees and other charges for carrying out the purposes of this Act;
(h) Calling for information from, undertaking inspection of, conducting enquiries and investigations
including audit of the insurers, intermediaries, insurance intermediaries and other organizations
connected with the insurance business;
(i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in
respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee
under section 64U of the Insurance Act, 1938 (4 of 1938);
(j) Specifying the form and manner in which books of account shall be maintained and
(k) Regulating investment of funds by insurance companies;
(l) Regulating maintenance of margin of solvency;
(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries;
(n) Supervising the functioning of the Tariff Advisory Committee;
(o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and
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regulating professional organizations referred to in clause
(p) Specifying the percentage of life insurance business and general insurance business to be undertaken
by the insurer in the rural or social sector; and
(q) Exercising such other powers as may be prescribed
KEY MILESTONES
Table 1: milestone’s in the life insurance business in India
Year Milestones in the life insurance business in India
1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business
1928 The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses
1938 Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company
Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the
important milestones in the general insurance business in India are given in the table 2.
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Table 2: milestone’s in the general insurance business in India
Year Milestones in the general insurance business in India
1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business
1957 General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices
1968 The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972 The General Insurance Business (Nationalisation) Act, 1972 nationalised the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
PART-II
COMPANY PROFILE
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OF
HDFC STANDARD LIFE INSURANCE COMPANY LTD.
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
Introduction:
Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture between Housing
Development Finance Corporation Limited (HDFC Limited) - India's leading housing finance institution, and
a Group Company of the Standard Life Plc, UK. The Company is one of leading private insurance
companies, offering a range of individual and group insurance solutions, in India. Being a joint venture of
top financial services groups, HDFC Standard Life has adequate financial expertise to manage long-term
investments safely and resourcefully.
HDFC Standard Life Insurance Company Limited. 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 Limited), India's leading housing finance institution and a
Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and
Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is
held by Others.
As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise
required to manage your long-term investments safely and efficiently.
HDFC SLIC have a range of individual and group solutions, which can be easily customised to specific needs.
Group solutions have been designed to offer complete flexibility combined with a low charging structure.
The gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 crores.
The company has covered over 8,33,070 lives as on March 31, 2009.
HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite
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for long-term sustainable growth. To ensure this, we have concentrated our focus on expansion of branch
network, organizing an efficient and well trained sales force, and setting up appropriate systems and
processes with optimum use of technology. As all these areas form the basic infrastructure for establishing
the highest possible customer service standards.
Our core values are drilled down to all levels of employees, as these are inviolable. We continue to
promote high integrity in business practices and shun short cuts and unethical practices, as we wish to be
perceived as an institution with high moral standing. Since our inception in 2000, when the Indian
insurance space was opened for private participation, we have consistently focused on setting benchmarks
in all aspect on insurance business. Being the first private player to be registered with the IRDA and the
first to issue a policy on December 12, 2000, our differentiators are:
Strong promoter
HDFC Standard Life is a strong, financially secure business supported by two strong and secure promoters
– HDFC Ltd and Standard Life. HDFC Ltd’s excellent brand strength emerges from its unrelenting focus on
corporate governance, high standards of ethics and clarity of vision. Standard Life is a strong, financially
secure business and a market leader in the UK Life & Pensions sector.
Preferred and Trusted Brand
Our brand has managed to set a new standard in the Indian life insurance communication space. We were
the first private life insurer to break the ice using the idea of self-respect instead of ‘death’ to convey our
brand proposition (Sar Utha Ke Jiyo). Today, we are one of the few brands that customers recognize, like
and prefer to do business. Moreover, our brand thought, Sar Utha Ke Jiyo, is the most recalled campaign in
its category.
Investment Philosophy
We follow a conservative investment management philosophy to ensure that our customer’s money is
looked after well. The investment policies and actions are regularly monitored by a formal Investment
Committee comprising non-executive directors and the Principal Officer & Executive Director.
As a life insurance company, we understand that customers have invested their savings with us for the
long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of
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protecting and generating good, consistent, and stable investment returns to match the investor’s long -
term objective and return expectations, irrespective of the market condition.
Need-Based Selling Approach
Despite the criticality of life insurance, sales in the industry have been characterized by over reliance on
tax benefits and limited advice-based selling. Our eight-step structured sales process ‘Disha’ however,
helps customers understand their latent needs at the first instance itself without focusing on product
features or tax benefits. Need-based selling process, 'Disha', the first of its kinds in the industry, looks at
the whole financial picture. Customers see a plan not piecemeal product selling.
Risk Control Framework
HDFC Standard Life has fully implemented a risk control framework to ensure that all types of risks (not
just financial) are identified and measured. These are regularly reported to the board and this ensures that
the company management and board members are fully aware of any risks and the actions taken to
ensure they are mitigated
Focus on Training
Training is an integral part of our business strategy. Almost all employees have undergone training to
enhance their technical skills or the softer behavioural skills to be able to deliver the service standards that
our company has set for itself. Besides the mandatory training that Financial Consultants have to undergo
prior to being licensed, we have developed and implemented various training modules covering various
aspects including product knowledge, selling skills, objection handling skills and so on.
Focus on Long-Term Value
HDFC Standard Life do not focus in the business of ramping up the topline only, but to create maximisation
of stakeholder's value. Today, we are extremely satisfied with the base that we have created for the long-
term success of this company.
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Transparent Dealing
We are one of the few companies whose product details, pricing, clauses are clearly communicated to help
customers take the right decision.
Strict Compliance with Regulations
We have initiated and implemented many new processes, some of which were found useful by the IRDA
and later made mandatory for the entire industry.The agents who successfully completed this training
only, were authorized by the company to sell ULIPs. This has now been made compulsory by IRDA for all
insurance companies under the new Unit Linked Guidelines.
Diversified Product Portfolio
HDFC Standard Life’s wide and diversified product portfolio help individuals meet their various needs, be
it:
Protection: Need for a sound income protection in case of your unfortunate demise
Investment: Need to ensure long-term real growth of your money
Savings: Save for the milestones and protect your savings too
Pension: Need to save for a comfortable life post retirement
Health: Cover for health related exigencies
BOARD MEMBERS
Brief Profile of The Board of Directors
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Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Executive Chairman of
Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited
in a senior management position in 1978. He was inducted as a whole-time director of HDFC
Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief
Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants
(England & Wales).
Sir Alexander M. Crombie joined the Board of Directors of the Company in April, 2002. He
has been with the Standard Life Group for 34 years holding various senior management
positions. He was appointed as the Group Chief Executive of the Standard Life Group in
March 2004. Sir Crombie is a fellow of the Faculty of Actuaries in Scotland.
Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is
currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and
became an Executive Director in 1993. He was appointed as its Managing Director in
November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India
and a member of the Michigan Association of Certified Public Accountants.
Ms. Marcia D. Campbell is currently the Group Operations Director in the Standard Life
group and is responsible for Group Operations, Asia Pacific Development, Strategy &
Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the
Board of Directors in November 2005.
Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds
a Master's degree in economics from Delhi University. She has been employed with HDFC
Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible
for overseeing all aspects of lending operations of HDFC Limited.
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Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is
responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to
this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK
Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS
Securities and Managing Director International Equities. He was also responsible for
Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board
of Directors in November 2005.
Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of
Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing
Committee Member of Midsnell Group International, an International Association of
Independent Accounting Firms and has authored several papers of professional interest. Mr.
Divan has wide experience in auditing accounts of large public limited companies and nationalised banks,
financial and taxation planning of individuals and limited companies and also has substantial experience in
structuring overseas investments to and from India.
Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and
Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain &
Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director,
Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant
has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.
Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited.
Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of
India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of
India (RBI).
Mr. Gerald E. Grimstone was appointed Chairman in May 2007, having been Deputy
Chairman since March 2006. He became a director of The Standard Life Assurance Company
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in July 2003. He is also Chairman of Candover Investments plc and was appointed as one of the UK’s
Business Ambassadors by the Prime Minister in January 2009. Gerry held senior positions within the
Department of Health and Social Security and HM Treasury until 1986. He then spent 13 years with
Schroders in London, Hong Kong and New York, and was Vice Chairman of Schroders’ worldwide
investment banking activities from 1998 to 1999. He is the Alternate Director to Sir Alexander Crombie.
Mr. Paresh Parasnis is the Principal Officer and Executive Director of the company since
November 14, 2008. 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.
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest
residential mortgage finance institution in the country. The corporation has had a series of share issues
raising its capital to Rs. 119 Crores. The gross premium income for the year ending March 31, 2007 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, 2007.
HDFC operates through almost 450 locations throughout the country with its corporate head quarters in
Mumbai, India. HDFC also has an International Office in Dubai, UAE with service associates in Kuwait,
Oman and Qatar. HDFC is the largest housing company in India for the last 27 years.
SNAPSHOT - I
Incorporated in 1977 as the first specialized Mortgage Company in India.
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Almost 90% of initial shareholding in the hands of domestic institutes and retail investors. Current 77% of
shares held by foreign institutional investors.
Besides the core business of mortgage HDFC has evolved into a financial conglomerate with holdings In:
HDFC Standard Life insurance Company- HDFC holds 78.07 %.
HDFC Asset Management Company – HDFC holds 50.1%
HDFC Bank- HDFC holds 22.25%.
Intelenet Global (Business Process Outsourcing) – HDFC holds 50%.
HDFC Chubb General Insurance Company – HDFC holds 74%.
SNAPSHOT-II
Loan Approvals Rs. 805 billion.
(up to Dec 2007) (US $ 18.30 bn.)
Loan Disbursements Rs.669 billion
(up to Dec. 2007) (US $ 15.20 bn)
Housing Units Financed 2.5 million.
Distribution
Offices 181
Outreach Programs 90
KEY PLAYERS
Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing
Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior
management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was
appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh
is a Fellow of the Institute of Chartered Accountants (England & Wales).
Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000.
Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a
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Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in
Business Administration from The American University, Washington DC.
GROUP COMPANIES
HDFC Bank: World Class Indian Bank- among the top private banks in India.
HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.
Intelenet Global: BPO services for international customers.
CIBIL: Credit Information Bureau India Limited.
HDFC Chubb: Upcoming Private companies in the field of General Insurance.
HDFC Mutual Fund
HDFC reality.com: Helps to search properties in all major cities in India
HDFC securities
STANDARD LIFE
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Standard Life is Europe’s largest mutual life assurance company. Standard Life, which has been in the life
insurance business for the past 175 years is a modern company surviving quite a few changes since selling
its first policy in 1825. The company expanded in the 19th
century from kits original Edinburgh premises,
opening offices in other towns and acquitting other similar businesses.
Standard Life Currently has assets exceeding over £ 70 billion under its management and has the
distinction of being accorded “AAA” rating consequently for the six years by Standard and Poor.
SNAPSHOT
Founded in 1875, company supporting generation for last 179 years.
Currently over 5 million Policy holders benefiting from the services offered.
Europe’s largest mutual life insurer.
JOINT VENTURE
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HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by
the IRDA to operate in life insurance sector. Reach of the JV player is highly rated and been conferred with
many awards. HDFC is rated ‘AAA ’ by both CRISIL and ICRA. Similarly, Standard Life is rated ‘AAA’ both by
Moody’s and Standard and Poor’s. These reflect the efficiency with which HDFC and Standard Life manage
their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th
August 2000. HDFC is the majority
stakeholder in the insurance JV with 81.4% staple and Standard of as a staple 18.6% Mr. Deepak
Satwalekar is the MD and CEO of the venture.
HDFC Standard Life Insurance Company Ltd. Is one of India’s leading Privat e Life Insurance Companies,
which offers a range of individual and group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.) India’s leading housing finance institution and the
Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Both
the promoters are will known for their ethical dealings and financial strength and are thus committed to
being a long-term player in the life insurance industry- all important factors to consider when choosing
your insurer.
BUSINESS GROWTH
Track Record so far
The gross premium income of HDFC, for the year ending March 31, 2007 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, 2007. Company also declared our 5th
consecutive bonus in as many years for our ‘with profit’ policyholders.
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KEY STRENGTH
Financial Expertise
As a joint venture of leading financial services groups. HDFC standard Life has the financial expertise
required to manage long-term investments safely and efficiently.
Range of Solutions
HDFC SLIC has a range of individual and group solutions, which can be easily customized to specific needs.
These group solutions have been designed to offer complete flexibility combined with a low charging
structure.
Strong Ethical Values:
HDFC SLIC is an ethical and Cultural Organization. False selling or false commitment with the customers is
not allowed.
Most respected Private Insurance Company
HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the World Class Magazine Business
World for Integrity, Innovation and Customer Care.
CORPORATE OBJECTIVE
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'.
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Values
.Integrity .Innovation
.Customer centric .People Care One for all
.Teamwork .Joy and Simplicity
PRODUCTS & SERVICES
The right investment strategies won't just help plan for a more comfortable tomorrow -- they will help you
get “Sar Utha ke Jiyo” . At HDFC SLIC, life insurance plans are created keeping in mind the changing needs
of family. Its life insurance plans are designed to provide you with flexible options that meet both
protection and savings needs. It offers a full range of transparent, flexible and value for money products.
HDFC SLIC products are modern and contemporary unitized products that offer unique customer benefits
like flexibility to choose cover levels, indexation and partial withdrawals.
PLANS THAT ARE OFFERED BY
HDFC STANDARDS LIFE INSURANCE
Individual Products
Protection Plans
A person can protect his family against the loss of his income or the burden of a loan in the event of his
unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price.
Protection range includes our
Term Assurance Plan & Loan Cover Term Assurance Plan.
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Investment Plans
HDFC SLIC’s Single Premium Whole of Life plan is well suited to meet long term investment needs. This
provides attractive long term returns through regular bonuses.
Pension Plans
Pension Plans help to secure financial independence even after retirement. Pension range includes
Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus.
Savings Plans
Savings Plans offer a flexible option to build savings for future needs such as buying a dream home or
fulfilling your children’s immediate and future needs.
Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus,
Unit Linked Endowment Plus II, Money Back,
Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit Linked Young Star
Plus, Unit Linked Young Star Plus II.
Group Products
One-stop shop for employee-benefit solutions
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. It offers different
products for different needs of employers ranging from term insurance plans for pure protection to
voluntary plans such as superannuation and leave encashment.
HDFC SLIC offers the following group products to esteemed corporate clients:
A) Group Term Insurance
B) Group Variable Term Insurance
C) 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
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Also suitable for other employee benefit schemes such as salary saving schemes and wealth management
schemes.
Social Product
Development Insurance Plan
Development Insurance plan is an insurance plan which provides life cover to members of a Development
Agency for a term of one year. On the death of any member of the group insured during the year of cover,
a lump sum is paid to those member beneficiaries to help meet some of the immediate financial needs
following their loss.
Eligibility
Members of the development agency and their spouses with:
Minimum age at the start of the policy 18 years last birthday
Maximum age at the start of policy 50 years last birthday
Employees of the Development Agency are not eligible to join the group. The group to be covered is only
eligible if it contains more than 500 members.
Premium Payments
The premium to be paid will be quoted per member in the group and will be the same for all members of
the group.
The premium can only be paid by the Development Agency as a single lump sum that includes all
premiums for the group to be covered. Cover will not start until the premium and all the member
information in our specified format has been received.
Benefits
On the death of each member covered by the policy during the year of cover a lump sum equal to the sum
assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an
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additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of
the year of cover and there is no surrender value available at any time.
The role of the Development Agency
Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks
onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks
would include:
Submission of member data in a specified computer format
Collection of premiums from group members
Recording changes in the details of group members
Disbursement of claim payments and the mortality rebate (if any) to group members
These tasks would be in addition to the usual duties of a policyholder such as:
I. Payment of premiums
II. Reporting of claims
a. Keeping policy holder information up to date
Training and support will be available to give guidance on how to complete the tasks appropriately. Since
these additional tasks will impose a burden on the Development Agency, the Development Agency may
charge a Rs. 10 administration fee to their members.
Prohibition of rebates
Section 41 of the Insurance Act, 1938 states
No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take
out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India,
any rebate of the whole or part of the commission payable or any rebate of the premium shown on the
policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such
rebate as may be allowed in accordance with the published prospectus or tables of the insurer
If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a
fine which may extend to rupees five hundred
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INTROUCTION TO UNIT LINKED FUNDS
Unit linked plans are based on the component of the premium or the contribution of the customer
towards the plan. This contribution can be in different modes like yearly, half yearly, quarterly and
monthly. Unit linked plans have multiple benefits like life protection, rider protection, savings,
transparency, investment choices, liquidity and planning for taxes. These plans work like mutual funds.
The premium is collected from the policy holder. He is allotted a certain number of units based of his
contribution. The Net Asset Value is the value of each unit of the fund. It is found by subtracting the
charges and current liabilities from the current assets and investments and dividing this number by the
total number of outstanding units.
Let us take an example. There are 100 investors and each invests Rs. 10 in a fund. The total value of the
fund is Rs. 1000 and each person is allotted 1 unit of Rs 10. Now the money (Rs. 1000) is invested in the
debt or equity market. Suppose the fund value increased by 20%. As a result the Rs. 1000 invested became
Rs. 1200. Hence the value of every investor is now Rs. 12 and not Rs. 10.
UNIT LINKED VERSUS OTHER FINANCIAL INSTRUMENTS
Parameters RBI Bonds Fixed
Deposits
Mutual
Funds
Unit linked
Safety High High Medium High
Liquidity None High High High
Returns Low Low High High
Life Cover 1 time
amount
1 time
amount
1 time
amount
10 times
Tax benefits Tax free Taxed Taxed Tax free
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We find that life insurance unit linked plans is a good area to invest money in as it provides liquidity,
safety, high returns, life cover and tax benefits in a single plan. HDFC SLIC offers the option of indexation to
beat inflation. Risk is reduced to a large extent as the company invests in a diversified portfolio of stocks.
Tax Benefits
INCOME TAX
SECTION
GROSS ANNUAL
SALARY
HOW MUCH TAX
CAN YOU SAVE?
HDFC STANDARD
LIFE PLANS
Sec. 80C Across All income
Slabs
Upto Rs. 33,990
saved on
investment of
Rs. 1,00,000.
All the life insurance
plans.
Sec. 80 CCC Across all income
slabs.
Upto Rs. 33,990
saved on
Investment of
Rs.1,00,000.
All the pension
plans.
Sec. 80 D Across all income
slabs
Upto Rs. 3,399
saved on
Investment of
Rs. 10,000.
All the health
insurance riders
available with the
conventional plans.
TOTAL
SAVINGS
POSSIBLE
Rs37,389
Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D,
calculated for a male with gross annual income
exceeding Rs. 10,00,000.
Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free,
subject to the conditions laid down therein.
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SOME OTHER PRODUCT
HDFC Standard Life Insurance offers a range of individual and group solutions, which can be easily personalized to
specific needs. Its group solutions have been planned to offer complete flexibility, together with a low charging
structure. As of 31 December, 2008, the Company's new business premium income stood at Rs. 1,839.70 Crores;
it has covered over 812,811 lives so far. Given below is a comprehensive list of policies and products on offer by
HDFC Standard Life Insurance:
Protection Plans
HDFC Term Assurance Plan
HDFC Loan Cover Term Assurance Plan
HDFC Home Loan Protection Plan
Children's Plans
HDFC Children's Plan
HDFC Unit Linked Young Star II
HDFC Unit Linked Young Star Plus II
HDFC Unit Linked YoungStar Champion
Retirement Plans
HDFC Personal Pension Plan
HDFC Unit Linked Pension II
HDFC Unit Linked Pension Maximiser II
HDFC Immediate Annuity
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Savings & Investment Plans
HDFC Unit Linked Endowment Plus II
HDFC SimpliLife
HDFC Unit Linked Endowment II
HDFC Unit Linked Enhanced Life Protection II
HDFC Unit Linked Wealth Maximiser Plus
HDFC Unit Linked Endowment Winner
HDFC Endowment Assurance Plan
HDFC Money Back Plan
HDFC Single Premium Whole of Life Insurance Plan
HDFC Assurance Plan
HDFC Savings Assurance Plan
Health Plans
HDFC Critical Care Plan
HDFC SurgiCare Plan
Group Plans
Group Term Insurance Plan
Group Variable Term Insurance Plan
Group Unit Linked Plan - Gratuity
Group Unit Linked Plan - Superannuation
Group Unit Linked Plan - Leave Encashment
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DISTRIBUTION STRATEGY
Why HDFC is better …?
1. Investment returns: investment returns and business growth provided by HDFC is validated by bajaj
Capital report. HDFC pacify the need of invertors up to healthy level and make the strong relationship with
them.
2. Financial Background and Experience: HDFC existing in the market since 1977. It has a very handsome
experience in the field of finance because it completely involved in finance Sector only where as the others
are running in many other field also like Reliance (Petroleum, Textile, Telecom etc.)
3. Ethics and Values: HDFC is an ethical and cultural organization which prevents the false selling and
prohibits the false commitment to the customer.
4. Sales Force: Properly trend licensed and Educated People are the strength of the company. So that they
could give the best customer service.
5. Huge branch network HDFC is having 450 branches in all over the country.
6. Online accessibility: It makes the process faster and makes the customer delighted.
Who can be the financial consultant: ?
Section 42(4) of the amended Insurance Act, 1938 states an agent to be one who is not: A minor.
Found to be sound mind by a court of competition jurisdiction.
Found guilty of criminal background.
Found guilty of having knowingly participated in or connived at any fraud /dishonesty or misrepresentation
against an insured.
Work of financial consultant:
The FC is the interface between the customer and insurance company. The agent should be able to
accomplish the following service.
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Assessing and analyzing the clients risk profile.
Finding the best product or products available in the market.
Negotiating the best deal available.
Continuity of service throughout the period of insurance.
Objective of FC:
Recruitment of Financial consultant (FCs) of a excellent profile and their retention strategies and what are
their benefit that company going to provided for retention of their FCs.
(A) What type of people are we looking for ?
1- Committed people who have the drive, determination and ability to become professional financial
consultants.
2- Ability to sell a range of financial products.
(B) What do We Expect from financial Consultant ?
1- Devote a time and energy during training.
2- Sell at least 5 policies each month once after licensed with company.
3- We look forward to a long term mutually beneficial relationship.
(C) Why should financial consultant choose HDFC standard life ?
Brand value and the reputation of the partners (HDFC Limited) Market leader in housing finance:
15 lakhs home financed.
11 lakhs retail deposits customer base.
Reputation for providing the higher standards of customer service.
Financial Strength of the partners.
Brand value and the reputation of the partners standard life:
175 years experience in life insurance.
Largest mutual life insurer in Europe.
Product innovation.
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Strategies for recruitment of FC:
Strategies Employed to achieve the target are as follows:-
Telecalling
Contacting the person directly (interview)
Collect references.
Some important steps to make effective telecolling :-
Open the call in a friendly and positive way.
State the name, position and company name.
Check the prospect has time to speak.
State the reason for the call.
Clearly succinctly explain how the meeting will be benefiting the prospect.
Achievements:
Recruited eight financial consultants for company.
Increase in confidence level.
Got the knowledge about, how to differentiate our product form that of LIC.
Made more and more people aware about my companies Products (Policies)
Taken some appointments for policies and got positive response from 8 persons with the help of my BDM.
Limitations:-
So though the study aims to achieve the above mentioned Objective in full earnest and accuracy, it may be
hampered due to certain limitation. Some of the limitations are as follows:
To cover the various section for the society.
Respondents may not be at home and may have to re-contacted or replaced by others.
Getting accurate response form the respondents due to their inherent problem is difficult.
Limited response from client.
There is a time limitation it is not possible to study whole thing I covered some special aspect as well as
some topics.
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FIELD METHODOLOGY
The methodology adopted in the field to collect the data represented diagrammatically below:
TABULATION AND ANALYSIS
In order to determine the willingness of the people to become FC for HDFC SLIC in Lucknow, data collected
by surveying is treated as analysis. Response to the parameter like professional, unemployed students,
housewives, investment consultant, post office agent.
Willingness to be FC for HDFC
Yes No Total
Professional 2 28 30
Filling up questionnaireand Schedule
Meeting with People
Segmentation of
People
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Working
employees
2 33 35
House wives 2 18 20
Students 3 22 25
Investment
consultants
2 18 20
Post office agents 3 12 15
Others - - 10
Total 14 131 155
yes
No
PROFESSIONALS
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yes
No
yes
No
yes
No
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yes
No
yes
No
yes
No
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PART-III
RESEARCH DESIGN
INTRODUCTION
A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing
the data collected. It is the blue print that is followed in completing the study. The basic objective of
research cannot be attained without a proper research design. It specifies the methods and procedures for
acquiring the information needed to conduct the research effectively. It is the overall operational pattern
of the project that stipulates what information needs to be collected, from which sources and by what
methods.
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STATEMENT OF THE PROBLEM
This study was undertaken to identify which type of insurance plans HDFC SLIC should market to beat
other insurance company in India. A survey was undertaken to understand the preferences of Indian
consumers with respect to insurance. While marketing policies the sole duty of an advisor/ agent is to
provide insurance plans as per customer requirements.
In effect plans (insurance products) should be flexible to suit individual requirements. This research tries to
analyze some key factors which influence the purchase of insurance like the term of the policy, the type of
company, the amount of annual premium payable (capacity and willingness to spend), risk taking ability
and the influence of advertising. Solutions and recommendations are made based on qualitative and
quantitative analysis of the data.
OBJECTIVES OF THE STUDY
To analysis the product details of HDFC Standard life Insurance Company limited and other insurance
company.
To find ‘Points of Parity’ and ‘Points of Difference’ of HDFC Standard Life Insurance Company Limited and
other insurance company.
To find out factors that influence customers to purchase insurance policies and give suggestions for further
improvement.
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RESEARCH METHODOLOGY
TYPE OF DATA COLLECTED
There are two types of data used. They are primary and secondary data. Primary data is defined as data
that is collected from original sources for a specific purpose. Secondary data is data collected from indirect
sources.
PRIMARY SOURCES
These include the survey or questionnaire method, telephonic interview as well as the personal interview
methods of data collection.
SECONDARY SOURCES
These include books, the internet, company brochures, product brochures, the company website,
competitor’s websites etc, newspaper articles etc.
SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions
about that universe. A sample is a representative of the universe selected for study.
SAMPLE SIZE
The sample size for the survey conducted was 43 respondents. This sample size was taken on 95%
confidence level and 6 significant level. Data universe for this sample is 5,30,000 which is approx
population of Lucknow excluding people below age of 18 years.
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SAMPLING TECHNIQUE
Random sampling technique was used in the survey conducted.
PLAN OF ANALYSIS
Tables were used for the analysis of the collected data. The data is also neatly presented with the help of
statistical tools such as graphs and pie charts. Percentages and averages have also been used to represent
data clearly and effectively.
STUDY AREA
The samples referred to were residing in Lucknow. The areas covered were Gomti Nagar, Aliganj, Indra
Nagar, Alambagh, Hazratganj, Ameenabad.
PART -IV
COMPARITIVE ANALYSIS
1. LIFE INSURANCE CORPORATION OF INDIA (LIC)
LIC has an excellent money back policy which provides for periodic payments of partial survival benefits as
long as the policy holder is alive. 20% of the sum assured is payable after 5, 10, 15 and 20 years and the
balance 40% is payable at the 20th
year along with accrued bonus. (www.lic.com)
For a 25 years term , 15% of the sum assured becomes payable after 5,10,15 and 20 years and the balance
40% plus the accrued bonus becomes payable at the 25
th
year. An important feature of these types of
policies is that in the event of the death of the policy holder at any time within the policy term the death
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claim comprises of full sum assured without deducting any of the survival benefit amounts which have
already been paid. The bonus is also calculated on the full sum assured.
HDFC SLIC does not have a money back policy. It could offer a money back plan and capture some portion
of this market. While marketing insurance products I found that many customers wanted to purchase
these plans.
LIC offers 66 different plans; plans are formulated for specific occasions – whole life plans, term assurance
plans, money back plan for women, child plans, plans for the handicapped individuals, endowment
assurance plans, plans for high worth individuals, pension plans, unit linked plans, special plans, social
security schemes – diversified portfolio of products. HDFC SLIC could diversify its product portfolio. It could
add more plans for high worth individuals and women.
2. ICICI PRUDENTIAL
ICICI Prudential is a stiff competitor for HDFC SLIC. The company is a merger between ICICI Bank which is
the biggest private bank in India and Prudential Plc which is a global life insurance company.
The company has an investment plan which is market related – Invest Shield Life. In this plan even if the
market falls, the premium will be returned to investors. It is a guaranteed plan which ensures the company
carefully invests your money. The stock market performance of ICICI Prudential is much better than HDFC
SLIC. The returns on the growth fund were 46.28% compared to the 42.70% offered by HDFC SLIC.
Customers are attracted by higher returns and this is a plus point for Prudential.
The company is very well advertised. The advertisements are showcased in movies, television,
newspapers, magazines, bill boards, radio etc. The company has an excellent brand ambassador – Mr.
Amitabh Bacchan. His promotion of the company builds trust and faith in the minds of our people.
However the charges are very high in the plans offered by ICICI Prudential. It is 35% during the first year,
15% in the next year and 3% from the third year onwards. Also a higher minimum premium of Rs. 8000 is
charged. Hence the policies are not accessible to the lower strata of the society.
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3. BIRLA SUN LIFE
Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the
largest business houses in India and Sun Life Financial Inc., a leading international financial services
organization. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life
Financial Inc., offers a formidable protection for your future. (Source: www.birlasunlife.com)
The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market capitalization of Rs. 53400
crores (as on 31st March 2007). It has over 72000 employees across all its units worldwide. It is led by its
Chairman - Mr. Kumar Mangalam Birla. Some of the key organizations within the group are Hindalco and
Grasim.
Sun Life Financial Inc. and its partners today have operations in key markets worldwide, including Canada,
the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and
Bermuda. It had assets under management of over US$343 billion, as on 31st March 2007. The company is
a leading player in the life insurance market in Canada.
Being a customer centric company, BSLI has invested heavily in technology to build world class processing
capabilities. BSLI has covered more than a million lives since inception and its customer base is spread
across more than 1000 towns and cities in India. All this has assisted the company in cementing its place
amongst the leaders in the industry in terms of new business premium income. The company has a capital
base of 520 crores as on 31st
July, 2007.
Its Flexi Life Line Plan offers life long insurance cover till the policy holder is 100 years of age. There are
guaranteed returns of 3% p.a. net of policy charges after every 5 years from the eleventh policy year
onwards. However the charges are very high. The initial charges for the first year are 65%. Hence the fund
value is greatly reduced.
4. BAJAJ ALLIANZ
Bajaj Allianz is a joint venture between Allianz AG with over 110 years of experience in over 70 countries
and Bajaj Auto, a trusted automobile manufacturer for over 55 years in the Indian market. Together they
are committed to offering you financial solutions that provide all the security you need for your family and
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yourself. Bajaj Allianz is the number one private life insurer for the year 2005 – 2006. It is leading by 78
crores. It has experienced a whopping growth of 216% in the last financial year.
The company has sold 13, 00,000 policies and is backed by 550 offices across India. It offers travel
insurance, motor insurance, home insurance, health and corporate insurance. The mortality charges are
lower than HDFC SLIC. The entry age could be zero years which allow even new born babies to be insured.
5. TATA AIG
Tata AIG is a joint venture between the Tata group and American International Group Inc. In one of the
plans the company offers hospital cash benefit wherein it will pay Rs. 2500 per day in case of
hospitalization and Rs.12.5 lakhs in case the person suffers from any critical illness. Annual premium is
much less (about Rs. 6712) to avail such a good benefit. Charges are relatively low compared to HDFC SLIC
for some policies.
The company offers high coverage plans at low cost. There is a plan even for a policy term of 1 year. Your
family can continue to enjoy their current lifestyle even in the case of something happening to you. These
plans are very flexible and HDFC SLIC could adopt this idea of insuring individuals for short periods of time.
For example; there is a family of four. The only earning member is the father.
He has just taken a loan from a bank of 20 lakhs to purchase a new home. He is able to repay the loan with
his current salary in 15 years. The problem arises if something were to happen to him within these fifteen
years. Not only will the family face the emotional and financial loss of their father but they will also have to
repay the home loan or risk being homeless.
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MARKETING
PROBLEMS
The old and out dated technique of tele marketing is used to prospect customers. More modern
techniques must be adopted. The company must sponsor shows and give presentations in corporate
houses. The financial health check must be performed for every prospect to assess his/her true financial
position and needs. Some of the advisors skip this vital step and the prospect ends up with a plan they do
not appreciate and soon surrender or discontinue.
Some of the main problems in marketing the policies are:
Large amount of competition (18 players in the market)
Other brands are well advertised and have higher recall value
LIC is considered a safer option
Face competition from banks and mutual funds
High premium policies are difficult to market
Incorrect perception about insurance
Interested prospects might have a lack of time and postpone investments
Customers get defensive if you cold call
Short term plans are available only at large premium
Customers do not have risk appetite to invest in shares
Some prospects have already invested and are not interested in further investments
Consumers don’t want to undertake medical examinations
Large amount of documentation
Customers do not like their money locked up for many years
Lack of awareness about the unit linked funds in the market
No money back plan present in the product portfolio.
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SUGGESTIONS FOR IMPROVEMENT
Advertise about the company and its products – it motivates individuals to purchase insurance
Create a positive perception about insurance
Speak about the good features a plan offers like high returns, life cover, tax benefits, indexation, accident
cover while prospecting customers
Try to sell the product/plan which the consumer requires and not the plan where the advisors benefit is
higher
Improve the efficiency in operations
Bring out policies with small premiums payable for short periods of time – Rs. 5000 – Rs. 10000 per annum
for 10 years
Attract the youth of India with higher returns on investment as returns are the motivating factor which
influence purchase of insurance
Promote insurance in colleges and corporate houses
Promote HDFC SLIC as an Indian Company to build trust
HDFC SLIC could have a brand ambassador or a mascot to promote its services
Should have partial withdrawals from the first year onwards
Tap the rural market where there is large potential
Diversify product portfolio
Make products more straight forward – reduce complexities
ANALYSIS
&
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INTERPRETATION
ANALYSIS & INTERPRETATION
“A SURVEY ON THE LIFE INSURANCE INDUSTRY IN INDIA”
AGE GROUP OF SURVEYED RESPONDENTS
TABLE 1:
Age group No. of Respondents
18 - 25 years 127
26 - 35 years 67
36 - 49 years 46
50 - 60 years 24
More than 60 years 6
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CHART 1:
Analysis:
From the chart above we find that 47% of the respondents fall in the age group of 18 – 25 years, 25% fall in
the age group of 26 – 35 years and 17% fall in the age group of 36 – 49 years.
Therefore most of the respondents are relatively young (below 26 years of age). These individuals could be
induced to purchase insurance plans on the basis of its tax saving nature and as an investment opportunity
with high returns.
Individuals at this age are trying to buy a house or a car. Insurance could help them with this and this fact
has to be conveyed to the consumer. As of now many consumers have a false perception that insurance is
only meant for people above the age of 50. Contrary to popular belief the younger you are the more
insurance you need as your loss will mean a great financial loss to your family, spouse and children (in case
the individual is married) who are financially dependent on you
GENDER CLASSIFICATION OF SURVEYED RESPONDENTS
TABLE 2:
47%
25%
17%
9%
2%
18 - 25 years
26 - 35 years
36 - 49 years
50 - 60 years
More than 60 years
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Particulars No. of Respondents
Male 193
Female 77
CHART 2:
CUSTOMER PROFILE OF SURVEYED RESPONDENTS
TABLE 3:
Customer profile No. of respondents
Student 62
Housewife 5
Working Professional 116
Business 49
Self Employed 24
Government service employee 14
193
77
0
50
100
150
200
250
Male Female
N o . o f R e s p o n d e
n t s
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CHART 3:
Analysis:
From the chart above it can clearly be seen that 43% of the respondents are working professionals, 23%
are students and 18% are into business. Therefore the target market would be working individuals in the
age group of 18 – 25 years having surplus income, interested in good returns on their investment and
saving income tax.
NO. OF RESPONDENTS WHO HAVE LIFE INSURANCE POLICY IN THEIR NAME
TABLE 4:
Person who have life insurance policy
Yes 103
No 167
23%
2%
43%
18%
9%
5%
Student
Housewife
Working Professional
Business
Self Employed
Government service
employee
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CHART 4:
ANALYSIS:
This graph shows that out of total 270 respondents only 103 or 38% respondents have life insurance policy
in their name. Rest all don’t have a single policy in their name. So there is a very big scope for life insurance
companies to cover these people. So in future business of life insurace will gro further.
MARKET SHARE OF LIFE INSURANCE COMPANIES
TABLE 5:
LIFE INSURER NUMBER OF POLICIES
HDFC STANDARD LIFE 4
BIRLA SUN LIFE 3
AVIVA LIFE INSURANCE 6
BAJAJ ALLIANZ 7
LIC 55
103, 38%
167, 62%Yes
No
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TATA AIG 6
ICICI PRUDENTIAL 12
ING VYSYA 6
BHARTI AXA 2
OTHERS 2
CHART 5:
Analysis:
In India, the largest life insurance company is Life Insurance Corporation of India. It has been in existence
in India since 1956 and is completely owned by the Government of India. Today the organization has
grown to 2048 offices serving 18 crore policies and has a corpus of over 340000 crore INR.
4% 3%6% 7%
53%
6%
11%
6%2% 2%
0%
10%
20%
30%
40%
50%
60%
P e r c e n t a g e
Company Name
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ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE
TABLE 6:
Premium paid (p.a.) No. of respondents
Rs. 5000 - Rs. 10000 40
Rs. 10001 - Rs. 15000 26
Rs. 15001 - Rs. 24900 18
Rs. 25000 - Rs. 50000 10
Rs. 50001 - Rs. 60000 4
Rs.60001 - Rs. 80000 2
Rs. 80001 - Rs. 100000 3
CHART 6:
ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE
Analysis:
39%
25%
17%
10%
4% 2% 3%
Rs. 5000 - Rs. 10000
Rs. 10001 - Rs. 15000
Rs. 15001 - Rs. 25000
Rs. 25001 - Rs. 50000
Rs. 50001 - Rs. 60000
Rs.60001 - Rs. 80000Rs. 80001 - Rs. 100000
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From the chart above we find that, 39% of the respondents surveyed pay an annual premium less than Rs.
10001 towards life insurance. 25% of the respondents pay an annual premium less than Rs. 15001 and 17%
pay an annual premium less than Rs. 25000. Hence we can safely say that HDFC SLIC would be able to
capture the market better if it introduced products/plans where the minimum premium starts at Rs. 5000
per annum.
Only 19% of the respondents pay more than Rs. 25000 as premium and most products sold by HDFC SLIC
have Rs.12000 as the minimum annual premium amount. They should introduce more products like Easy
Life Plus and Safe Guard where the minimum premium is Rs.6000 p.a. and Rs. 12000 p.a. respectively. This
would definitely increase their market share as more individuals would be able to afford the policies/plans
offered.
POPULAR LIFE INSURANCE PLANS
TABLE 7:
Type of Plan No. of Respondents
Term Insurance Plans 105
Endowment Plans 122
Pension Plans 16
Child Plans 8
Tax Saving Plans 19
CHART 7:
POPULAR LIFE INSURANCE PLANS
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Analysis:
From the chart given above we can clearly see that 45% of the respondents hold endowment plans and
39% of the respondents hold term insurance plans. Endowment plans are very popular and serve two
purposes – life cover and savings.
If the policy holder dies during the policy term the nominee gets the death benefit that is, sum assured and
accumulated bonus. On survival the policy holder receives the survival benefit with a bonus.
A term plan is a pure risk cover plan wherein the insured pays a lower premium for a higher sum assured.
Term insurance is the cheapest form of insurance and helps the policy holder insure himself for a relatively
low premium. For the returns sensitive investor term plans do not find favor as they do not offer a return
in case the individual does not die during the policy term.
AWARENESS OF UNIT LINKED INSURANCE PLANS
TABLE 8:
Awareness of Unit Linked Plans No. of Respondents
Yes 154
No 116
39%
45%
6%
3%7%
Term Insurance Plans
Endowment Plans
Pension Plans
Child Plans
Tax Saving Plans
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CHART 8:
AWARENESS OF UNIT LINKED INSURANCE PLANS
Analysis:
From the chart given above we find that 57% of the respondents are aware of unit linked life insurance
plans and 43% are not aware of such plans. These plans should be promoted through advertising. The
company can advertise through television, radio, newspapers, bill boards and pamphlets. This would
increase awareness and arouse curiosity in the minds of the consumer which would enable the company
to market its products more effectively.
Unit – linked plans are those where the benefits are expressed in terms of number of units and unit price.
They can be viewed as a combination of insurance and mutual funds. The number of units a customer
would get would depend on the unit price when they pay the premium.
57%
43%
Yes
No
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When the policy matures the individual gets his fund value. The value of his fund is calculated by
multiplying the net asset value and number of units held by them on that day.
CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM
TABLE 9:
Willingness to spend on premium
No. of
respondents Percentage
Less than Rs. 6,000 41 15%
Rs. 6,001 - Rs. 10,000 73 27%
Rs. 10,001 - Rs. 25,000 110 41%
Rs. 25,001 - Rs. 50,000 41 15%
Rs. 50,001 - Rs. 1,00,000 5 2%
CHART 9:
CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM
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Analysis:
From the graph above, we can clearly see that 41% of the respondents would be willing to spend between
Rs. 10001 – Rs. 25000 for life insurance. 27 % would be willing to spend between Rs. 6001 – Rs. 10000 per
annum. Only 15% would be willing to spend more than Rs. 25000 per annum as life insurance premium.
We could say that the maximum premium payable by most consumers is less than Rs. 25000 p.a. This is
further reduced as most customers have already invested with LIC, ICICI Prudential, Birla Sun Life, Bajaj
Allianz etc.
HDFC SLIC is faced with a large amount of competition. There are 18 insurance companies in India inclusive
of LIC. Hence to capture a larger part of the market the company could introduce more reasonable plans
with lesser premium payable per annum.
CHART SHOWING IDEAL POLICY TERM
TABLE 10:
0%
10%
20%
30%
40%
50%
Less than
Rs. 6,000
Rs. 6,001 -
Rs. 10,000
Rs. 10,001 -
Rs. 25,000
Rs. 25,001 -
Rs. 50,000
Rs. 50,001 -
Rs. 1,00,000
15%
27%
41%
15%
2% P e r c e n t a g e
Insurance Premium
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Ideal policy term No. of respondents
3 - 5 years 51
6 - 9 years 41
10 - 15 years 95
16 - 20 years 38
21 - 25 years 24
26 - 30 years 5
More than 30 years 3
Whole life Policy 13
CHART 10:
CHART SHOWING IDEAL POLICY TERM
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Analysis:
From the chart given above it can be seen that 35% of the respondents prefer a policy term of 10 – 15
years, 19% prefer a term of 3 – 5 years and 15% prefer a term of 6 – 9 years. This means that HDFC SLIC
could introduce more plans wherein the premium paying term is less than 15 years.
The outlook of insurance as a product should be changed from something which you pay for your whole
life (whole life policy) and do not receive any benefit (the nominee only receives the benefit in case of your
death) to an extremely useful investment opportunity with the prospects of good returns on savings, tax
saving opportunities as well as providing for every milestone in your life like marriage, education, children
and retirement.
FACTORS THAT MOTIVATE RESPONDENTS TO PURCHASE INSURANCE
TABLE 11:
Parameter No. of Respondents
Advertisements 35
19%15%
35%
14%
9%
2% 1%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
3 - 5 years6 - 9 years 10 - 15
years
16 - 20
years
21 - 25
years
26 - 30
years
More
than 30
years
Whole life
Policy
P e r c e n t a
g e
Years
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High returns 84
Advice from friends 46
Family responsibilities 89
Others 16
CHART 11:
Analysis:
From the chart above it can be seen that 33% of the respondents purchase life insurance to secure their
families, 33% take life insurance to get high returns, 17% purchase insurance on the advice of their friends
and 13% purchase insurance because of the influence of advertisements.
The main purpose of insurance is to cover the financial or economic loss that occurs to the family in case of
the uncertain death of the policy holder. But now a days this trend is changing. Along with protection (life
cover), a savings element is being added to insurance.
13%
31%
17%
33%
6%
Advertisements
High returns
Advice from friends
Family responsibilities
Others
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With the introduction of the new unit linked plans in the market, policy holders get the option to choose
where their money will be invested. They can invest their money in the equity market, debt market,
money market or a combination of these. The debt and money markets usually have low risk attached
whereas the equity market is a high risk investment option.
PREFERRED COMPANY TYPE OF THE RESPONDENTS
TABLE 12:
Type of Company No. of Respondents Percentage
Government Owned
Company 127 47%
Public Limited Company 62 23%
Private Company 49 18%
Foreign Company 32 12%
CHART 12:
PREFERRED COMPANY TYPE OF THE RESPONDENTS
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Analysis:
From the graph above we find that 60% of the respondents preferred to purchase insurance from a
government owned company, 29% of the respondents preferred to purchase insurance from a public
limited company and only 4% of the respondents preferred a foreign based company. Heavy advertising
through television, newspapers, magazines and radio is required.
MINIMUM EXPECTED RETURN ON INVESTMENT
TABLE 13:
Expected Returns No. of respondents
Less than 5% 5
5% - 10% 39
11% - 15% 46
16% - 20% 49
21% - 25% 46
26% - 30% 27
60%
29%
7% 4%
0%
10%
20%
30%
40%
50%
60%
70%
Government
Owned Company
Public Limited
Company
Private Company Foreign
Company
N o .
o f R e p o
n d e n t s ( % )
Type of Company
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31% - 40% 22
41% - 50% 14
More than 50% 22
CHART 13:
Analysis:
From the chart above it can clearly been seen that 18% of the respondents would like 16 – 20% returns,
17% would like returns between 21 – 25% and 17% would like returns of 11 – 15% on their investments.
Therefore the average return on investment should be at least 16 – 20 %.
Most consumers are willing to adapt to some amount of risk but still want some guaranteed returns.
Therefore the bulk of investment should be made in the balanced fund with 50% debt and 50% equity. The
returns on the Secure Fund are guaranteed as these involve investment is government securities and the
debt market. But the returns on these instruments are low (8 – 10%). If the company invests in shares,
returns are higher (39%) but correspondingly risk borne by the policy holder is also higher. Therefore a
good combination of the two instruments is often a wise choice.
2%
14%
17%18%
17%
10%8%
5%
8%
0%
5%
10%
15%
20%
Less than
5%
5% - 10% 11% -
15%
16% -
20%
21% -
25%
26% -
30%
31% -
40%
41% -
50%
More
than 50%
N o . o f R e s p o
n d e n t s ( % )
Expected Returns
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FINDINGS
1- Customers are less aware about the private insurance company in market.
2- Some customer likes to join HDFC as FCs because it is a Part-time job.
3- Many professions like CA, tax planner wants corporate agency rather than to be a financial consultant.
4- HDFC is too selective in making a FC rather than to appoint any one like LIC.
5- Customers don’t want to join as financial consultant because it’s on commission basis and they want the
job on salary basis.
6- Educated customers are now vending towards private insurance Companies, due to the attractive
packages and services provided by various new insurance companies.
7- LIC has created a branded image in 3-4 decades, due to which new insurance companies are facing trouble
in capturing market share.
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8- If the customers are joining HDFC the segment is more of tax consultant, investment for consultant and
other people who are engaged in investment business that is because they want to diversify their
portfolio.
9- HDFC SLIC is having good retention strategies for their financial consultant.
SUGGESTIONS
Customers should be made aware of the brand name of Insurance Company through advertisement.
The fear in the customer mind should be removed by company.
The insurance companies should try to nurture their brand name timely and attractive facility provide to
customer.
FUTURE LINE OF
RESEARCH
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The future topics for research in the organization could be setting up of an appropriate ad campaign. It is
very vital to the companies’ success that the people of India know about HDFC SLIC, its products and their
special features and how insurance in general can help them in their future. The advertisements have to
be emotionally appealing. They might also include a celebrity. The brand name of HDFC could be used to
give a push to HDFC SLIC and its products. The general perception of insurance as “inauspicious” should be
done away with and individuals and corporations accept insurance on power with other investment
opportunities.
The other area of research could be in the management of funds HDFC SLIC possesses and how it can
maximize returns for its investors. A research project could be undertaken on how to ensure that the
money gets invested in the right companies and earns a medium – high return on investment. Another
area of research could be an analysis of the sales and marketing techniques used by HDFC SLIC. A large
number of changes could be introduced and this would help in saving operating costs and improving the
efficiency of the firm.
CONCLUSION
HDFC standard life insurance is first life insurance Company in India. It has businesses spread out across
the globe. It was registered on 23 rd December 2000. It currently ranks number 4 amongst the insurers in
India (Source: annual premium provided by the company)
The company faces a large amount of competition. To sustain itself it must promote its products through
advertising and improve its selling techniques. Consumers must be aware of the new plans available at
HDFC SLIC. The medium of advertising used could be television since most of its competitors use this tool
to promote their products. The company must be promoted as an Indian company since consumers seem
to have more trust in investing in Indian firms.
The unit linked concept must be specifically promoted. The general perception of life insurance has to
change in India before progress is made in this field. People should not be afraid to invest money in
insurance and must use it as an effective tool for tax planning and long term savings.
HDFC SLIC could tap the rural markets with cheaper products and smaller policy terms. There are
individuals who are willing to pay small amounts as premium but the plans do not accept premiums below
a certain amount. It was usually found that a large number of males were insured compared to females.
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Individuals below the age of 30 (mostly male) were interested in investment plans. This was a general
conclusion drawn during prospecting clients.
A SURVEY ON ‘INSURANCE INDUSTRY’
Dear Sir/Madam,
I am a student of Institute Management & Research, Ghaziabad. As part of the requirements for my Post
Graduation Diploma in Marketing Management I am required to do a research based project. Kindly spend
a few minutes of your valuable time and fill in this questionnaire.
1) Do you have a life insurance policy/investment plan in your name?
Yes o No
2) If yes which company’s insurance policies do you hold?
HDFC Standard Life Insurance o Birla Sun Life Insurance
Aviva Life Insurance o Bajaj Allianz Life Insurance
LIC o Tata AIG Life Insurance
ICICI Prudential Life Insurance o ING Vysya Life Insurance
Bharti Axa Life Insurance o Others (specify name)
______________________________
3) What is the approximate premium paid by you annually (in Rupees)?
Rs. 5,000 – Rs. 10,000 o Rs. 10,001 – Rs. 15,000
Rs. 15,001 – Rs. 25,000 o Rs. 25,001 – Rs. 50,000
Rs. 50,001 – Rs. 60,000 o Rs. 60,001 – Rs. 80,000
Rs. 80,001 – Rs. 1,00,000
More than Rs. 1,00,000 (specify premium) ____________________________
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4) What kind of insurance policy would suit you best in your current stage of life?
Life Insurance o Life Insurance and Investment Plans
Pension Plans o Child Plans
Tax saving plans
5) Are you aware of the new unit linked insurance plans in the market?
Yes o No
6) How much would you be willing to spend per annum if you were to go for an
investment/insurance plan?
Less than Rs. 6,000 o Rs. 6,001 – Rs. 10,000
Rs. 10,001 – Rs. 25,000 o Rs. 25,001 – Rs. 50,000
Rs. 50,000 – Rs. 1,00,000 o More than Rs. 1,00,000
7) Which according to you is an ideal policy term? (Number of years you would be willing to pay
premium)
3 to 5 years o 6 to 9 years
10 to 15 years o 16 to 20 years
21 to 25 years o 26 to 30 years
More than 30 years o Whole life policy
8) What motivates you to purchase insurance/investment plans?
Advertisements o High Returns
Advice from friends o Family responsibilities
Others (specify)
9) In which kind of company would you prefer to make a purchase of insurance?
Government owned company o Public Limited Company
Private Company o Foreign based company
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10) Typically what kind of returns would you look at from your investments? (Please note: Higher
returns involve greater risk)
O Less than 5% o 6% - 10 %
O 11% - 15 % o 16% - 20 %
O 21% - 25% o 26% - 30%
O 31% - 40% o 41% - 50%
O More than 50%
Personal Details :
Name : __________________________________________________
Address : __________________________________________________
Age : __________________________________________________
Contact No. : __________________________________________________
Profile of respondent:
Student Business
Housewife Self-Employed
Working Professional Government Service Employee
Date: _______________
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REFERENCES/ ANNEXURE
Web-Site :s
www.hdfcslic.com
www.tata-aig-life.com
www.irdaindia.com
www.lic.com
www.money control.com
www.bajajallianz.com
www.icici.prulife.com
www.indiacore.com
www.bajajallianz.com
www.iciciprulife.com
www.tataaig.com
Magazine –
Insurance World
The Outlook Money
Secrets of Successful Insurance Sales by Mr. Jack Kinder