A Study on Customer Satisfaction TowardsHDFC Standard Life Insurance Company

A Study on Customer Satisfaction TowardsHDFC Standard Life Insurance Company

EXECUTIVE SUMMARY

A study on Customer satisfaction towards HDFC Standard Life Insurance Company

in Belgaum city.

OBJECTIVES To study the customer satisfaction towards HDFC Standard Life insurance. To identify the product preference of the customers. To identify the information sources influencing the customers.SCOPE OF THE STUDY

The study will help the company to know their customer satisfaction level.

The study will help the company to make proper marketing strategy. Scope of my study is restricted only to Belgaum city.LIMITATION OF THE STUDY The study was done for a short period of time, which might not hold true in the long run.

The study is limited only to Belgaum city.

AN

OVERVIEW

OF

INSURANCE INDUSTRYINSURANCE SECTOR IN INDIA The Insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

BRIEF HISTORY OF INSURANCE The beginning of insurance business is traced to the city of London. it started with

the marine Business. The first policy was issued in England in 1583.

The insurance industry provides protection against financial losses resulting from a

variety of perils. By purchasing insurance policies, individual and businesses can receive

reimbursement for losses due to car accidents, theft of property, and fire and storm damage,

medical expenses and loss of income due to disability or death.

Some of the important milestones in the life insurance business in India are:1818: - The British introduce to India, with the establishment of the Oriental Life Insurance

Company in Calcutta.

1850: - Non life insurance debuts, with triton Insurance company.

1870: - Bombay Mutual Life Assurance Society is the first India owned life insurer.

1907: - Indian Mercantile Insurance is the first Indian non life insurer.

1912: - The Indian life assurance Companies act enacted to regulate the life insurance

Business. 1938:- The insurance act, which forms the basis for most current insurance laws, replaces

Earlier act.

1956: - Life insurance nationalised, government takes over 245 Indian and foreign insurers

and provident societies.

1972:- Non Life Insurance 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.1993:- Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.

Malhotra was formed to evaluate the Indian insurance industry and recommend its

future direction.

1997:- Insurance Regulatory and Development Authority (IRDA) set up.

2000:- IRDA starts giving licences to private insurers, HDFC standard life and ICICI

prudential first private insurers to sell a policy.

2002:- Banks were allowed to sell insurance plans.

ADVANTAGES OF LIFE INSURANCE1. The value of human life is far greater than the value of property. Only Insurance can preserve it.

2. Facility of nomination and assignment makes the claim settlement easy on Death.

3. Life insurance involves compulsory savings.

4. Tax benefits on premium paid as well as the amount received by way of Claim.

5. Loans can be raised against a life insurance policy.

6. Insurance is the only way to safeguard against the unpredictable risks of the future.

It is unavoidable.

PRINCIPLES OF LIFE INSURANCE

1. Life insurance contracts :- In the terms of Indian contract act 1872 contract is Defined as an agreement made with an intention to create a legally binding

Relationship between two or more parties.

2. Utmost good faith :- A positive duty to disclose, accurately and fully , all the facts Material to the risk being exposed, whether asked for or not.

3. Insurable interest: - Insurable interest is a legal pre-requisite for insurance. The Primary interest of a person in the object of insurance (such as house, car, machinery Or life) which gives him the right to take insurance and so to say, this is insurable Interest.

4. Principle of indemnity :- Insurance cannot be used as a means to make profit out of It. The mechanism of insurance is meant to compensate losses. Simply put, insurance

Should not place the insured in a better financial position after loss as he enjoyed

Before the loss. This is principle of indemnity.

5. Different risks: - Life insurance deals with the risks related to the life of human beings. The perils (circumstances) that create the risks (the loss or damage) are death

and old age. Insurance does not prevent the perils it can ease the consequences in

those circumstances. 6. Needs and insurance: - Risks arise because there are some needs to be fulfilled. Early death is a risk because of the need to maintain the family that is left behind. If there were no needs, there would be no risk. Insurance is therefore related to the

needs of individuals. Different plans are designed to cater to different needs of the People. It is, therefore, Necessary to be aware of the needs of people before selling life insurance to them.Insurance Sector Reforms:

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms".

In 1994, the committee submitted the report and some of the key recommendations included:

1) Structure: Government stake in the insurance Companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.2) Competition: Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to operate in each state.

3) Regulatory Body: The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.4) Investments: Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%

GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).5) Customer Service: LIC should pay interest on delays in payments beyond 30 days. Computerization of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 Crores.

The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.The Insurance Regulatory and Development Authority:

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. 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.

Role of IRDA:

Protecting the interests of policyholders.

Establishing guidelines for the operations of insurers, and brokers.

Specifying the code of conduct, qualifications, and training for insurance intermediaries and agents.

Promoting efficiency in the conduct of insurance business.

Regulating the investment of funds by insurance companies.

Specifying the percentage of business to be written by insurers in rural sectors.

Handling disputes between insurers and insurance intermediaries.PRIVATE LIFE INSURANCE COMPANIES REGESTERED UNDER IRDAS.NO.Registration numberDate of Reg.Name of the company

110123.10.2000HDFC Standard Life Insurance Company Ltd.

210415.11.2000Max New York Life Insurance Company Ltd.

310524.11.2000ICICI Prudential Life Insurance Company Ltd.

410710.01.2001Kotak Mahindra Old Mutual Life Insurance Ltd.

510931.01.2001Birla Sun Life Insurance Company Ltd.

611012.02.2001Tata AIG Life Insurance Company Ltd.

711130.03.2001SBI Life Insurance Company Ltd.

811402.08.2001ING Vysya Life Insurance Company Private Ltd.

911603.08.2001Bajaj Allianz Life Insurance Company Ltd.

1O11706.08.2001Met Life India Insurance Company Pvt. Ltd.

1112103.01.2002AMP Sanmar Life Insurance Company Ltd. (Now it has been Overtook by Reliance Capital.)

1212214.05.2002Aviva Life Insurance Co. India Pvt. Ltd.

1312706.04.2004Sahara India Insurance Company Ltd.

1412817.11.2005Shriram Life Insurance Company Ltd.

ORGANISATION

PROFILE

ORGANISATION PROFILEHousing Development Financial Corporation Ltd

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 net worth of the Corporation as on March 31, 2000 stood at Rs. 2,096 Crores. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar.

Standard Life Group, UK

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 its original Edinburgh premises, opening offices in other towns and acquiring 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 past six years by Standard & Poor.

The Joint Venture

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurancecompanies, which offers a range of individual and group insurance solutions. It is a joint

venture between Housing Development Finance Corporation Limited(HDFC Ltd.),Indias leading housing finance institution and The Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Incorporated on 14th August 2000, it was the first life company to be granted a certificate of registration by the IRDA on the 23rd of October 2000. 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. HDFC is the majority stakeholder in the insurance with 81.4 % stake and Standard Life has a

stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.In order to survive in the insurance segment, HDFC had to introduce new products. They were looking for a robust and integrated solution to support the new product. HDFC was also facing numerous problems with their current systems in terms of performance, reliability and scalability.

HDFC Standard Life Insurance Company Ltd:

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and The Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Incorporated on 14th August 2000, it was the first life company to be granted a certificate of registration by the IRDA on the 23rd of October 2000. HDFC Standard Life is one of the first companies to be granted license by the IRDA to operate in life insurance sector. It is a joint venture of HDFC Ltd and Standard Life Europe's largest mutual life assurance company. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.HDFC Standard Life Insurance is a new Indian life insurance company that operates out of 52 locations. It offers clients a range of insurance plans to meet their savings, investment and protection needs. In the year 2002-03, the company registered a year-on-year growth of over 260%. It is also the first new life insurance company to declare its third successive bonus for participating policy holders.

In order to survive in the insurance segment, HDFC had to introduce new products. They were looking for a robust and integrated solution to support the new product. HDFC was also facing numerous problems with their current systems in terms of performance, reliability and scalability.HDFC Standard Life Insurance sells a range of individual savings, pension and group life assurance products and has branch offices in 39 locations throughout India. It was recently rated as the "Best New Insurer - 2003" by Outlook Money magazine. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry.

HDFC Standard Life Insurance is one of the leading private life insurance companies. The company generated premium from new business of Rs. 486 Cr in 2004-05, registering a year-on-year growth of over 132%. The total premium income (including renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. The company also achieved a major milestone during the financial year by crossing a Sum Assured figure of Rs. 30,000 Cr. The company also declared its fifth bonus for participating policyholders. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar. VISION & MISSIONWe aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like- Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customersKey Values:

SECURITY: Providing long term financial security to our policy holders will be our constant

Endeavour. We will be do this by offering life insurance and pension products. TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. Our mission is to be the best new life insurance company in India and these are the values that will guide us in this. Use of technology to improve service standards Increasing market share.Key strengths

Financial Expertise

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.Range of Solutions

We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.Track Record so far

Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859 Crores and new business premium income stood at Rs. 2,685 Crores. The company has covered over 9, 59, 000 lives year ending March 31, 2008.Board Members

Mr. Deepak M Satwalekar Managing Director and CEO of HDFC Limited.Mr. Deepak S Parekh Chairman of HDFC Limited.Mr. Keki M Mistry Managing Director of HDFC Limited

Mr. Alexander M Crombie Group Chief Executive of the Standard Life

Ms. Marcia D Campbell Group Operations Director

Mr. Keith N Skeoch Chief Executive in Standard Life

Mr. Ranjan Pant Global Management Consultant

Ms. Renu S. Karnad Executive director of HDFC Limited

Group Companies

Housing Development Finance Corporation Ltd

HDFC Bank

HDFC Mutual Fund

HDFC Securities

HDFC reality.com

HDFC General Insurance Company limited

intelenet

Credit information bureau India limited

Performance: HDFC Standard Life Insurance is the First Private Sector Life Insurance Company to be granted a license. It has increased its market share from 0.76% to 1.12% by collecting a premium income of 209bn. in the year ending March 2003-04.It has registered an premium growth rate of 61.88% over previous year.

Insurance sector has grown not only in size but in maturity as well, in the sense that from very simple products, which were available earlier on to the present. What has been done is that Insurance Industry placed the customer in centre & developed products and services around the customer.

In the past what we had was a bundled product so you get 3 or 4 benefits out of which it may be possible that you may need just 1 or 2 benefits but in the process you end up paying for all the four. In fact we were among the first to divide the offering into two -a core product and the benefits or the riders. And then it is up to the customer to choose and customize his own scheme according to needs and desires and pay for such scheme. I think that is the single largest revolution that has come about. The other revolution in the Insurance sector is in terms of distribution channels. Earlier we were having only agents but now we have agents, Bancassurance, corporate brokers and direct sales people. Retail agents and bancassurance are the 2 biggest insurance distribution channels.

The insurance penetration levels have considerably increased from 1.6 % to about 2.75%. Now whether that growth is enough in three year period, we can always counter that. In the last 3 years private insurance companies have grown at 200-300 % levels. But if you look at a longer time horizon say at 10 years the insurance companies would grow at 13-14% rate which would make it one of the fastest growing sectors.

If we want an acronym of our products, we call it PIPS, which stands for Protection, Investment, Pension, & Safety. These are the basic requirements of any individual & thus our products satisfy each of these needs.We have got conventional products, which are in the conventional structure i.e. available with profits like Endowment, Money back then you have Unit Linked plans which are for those investors who understand the capital markets, debt markets & equity markets.

In terms of popularity, little fewer than 50% products are savings products whether it is endowment, unit-linked or money back which are basically savings oriented. About 20% are investments oriented for e.g. single premium income policies where you pay in a shot and enjoy the protection & investments returns in future. About 20 % are in pensions. Pure protection is just about 5%. All these are in terms of premium income.USP is something that the customer will have to find because life insurance is a long-term process and it is about stability, being conservative. We don't hear about aggressive life insurance companies who survive for a longer period.

To be in business when we are talking of an insurance policy for say 30 years, your perspective is different in comparison to when you are taking a short term loan say a car loan for 3 years. Therefore different companies have chosen different models. Some of them have chosen to be in for the long run while some have chosen to be in for the short run. For in the short run, you need to have a high valuation of company, for high valuation you need to have high & rapid sales. Higher the sales higher are the valuation & higher the valuation higher is the price that you can charge.

Insurance sector, you cant differentiate on the basis of innovative products. The reason being, if yours is an excellent product it will not take too much time to be copied by other players. The thing which they cant copy is your services and, I think, that would be the differentiating factor in the insurance arena for eg if you look at the HDFC model. There are banks that are lending at lower rates but even then HDFC is able to grow at 30% thus if HDFC grows at 30%, it is on that balance sheet, while others might grow 100% but that would be on that small size. Thus it is important that people trust you. It matters to do the right things even if they are not beneficial in the shorter run. Thus we know the purpose of our existence in this sector.The main support, which we get from our foreign partner, is in terms of actuary support. Actuaries are the people who arrive at the premium rates. It is a monopoly market & there are not too many players who get into this. There is a shortage of actuaries in India but yes now the people are pursuing it as a career.

We get a lot of actuarial support from our foreign partner in terms of product development, valuation processes & it is necessary at each step to know what the implications are.

They also help us on the training front and in development of good products by utilizing the vast experience they have of other countries. The best thing about them is whatever support we seek from them, they are ready to offer. They do not impose anything since they say that you know and understand the local markets better.

PRODUCTS: HDFC Standard Life offers a bouquet of insurance solutions to meet every need. We

cater to both, individuals as well as to companies looking to provide benefits to their

employees. This section gives you details of all our products. We have incorporated

various downloadable forms and product details so that you can make an informed choice

about buying a policy.

INDIVIDUAL PRODUCTS: The following are the varies types of individual products

provided by the HDFC standard life insurance company ltd.

Protection Plans Term Assurance Plan

Loan Cover Term Assurance PlanInvestment Plans:

Single Premium Whole Life PlanPension Plans:

Personal Pension Plan

Unit Linked Pension Plan

Unit Linked Pension Plus

Savings Plans: Endowment Assurance Plan

Unit Linked Endowment

Unit Linked Endowment Plus II Money Back Plan

Children's Plan

Unit Linked Young star

Unit Linked Youngstar Plus II

Simpli Life Unit Linked Enhanced Life Protection IIGROUP PRODUCTS

Group Term Insurance

Group Variable Term Insurance

Group Unit Linked Plan

INDIVIDUAL PRODUCTSProtection Plans An ideal way to secure the financial future of your loved ones.

High cover at a very nominal cost plus an option of adding optional benefits to cover for other eventualities.

A choice of two plans depending on your requirements:

HDFC Term Assurance Plan: A pure risk cover plan, which gives you protection against the uncertainties of life. HDFC Loan Cover Term Assurance Plan: An ideal way to cover your home loan or other loan liabilities.

Choice of premium payment options-regular premium or a single one-time premium.

Choice of taking the plan on a single life basis or a joint life (first claim) basis.

HDFC Term Assurance Plan A protection plan to secure higher protection needed for your family at economical Rates Optional riders for enhanced protection unique joint life option to cover your spouse

Under the same plan Single / regular premium payment options. If you have a family that you care for, you should consider what would happen in case of your unfortunate death. The emotional void cannot be filled, but financial insecurity can be avoided. By taking this affordable life insurance plan, you can provide for the well-being of your family in case of your unfortunate death. This plan comes to you at a Minimal cost and is well-suited for the value-conscious customer. Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to one's family in the unfortunate event of one's death. Since this non-participating (without profits) plan is a pure risk cover plan, no benefits are payable on survival to the end of the term of the policy.HDFC Loan Cover Term Assurance Plan

This Plan provides a lump sum on the unfortunate death of the life assured within the policy term. If you are taking a loan to buy a house for your family, this plan can help you ensure that life's uncertainties do not affect their shelter. It is an affordable plan that has been designed to help your family repay the outstanding loan in case of your unfortunate death. The lump sum will be a decreasing percentage of the initial Sum Assured as the outstanding loan decreases as per the loan schedule, the cover under the policy also decreases as per the policy schedule.Investment PlansOur Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.HDFC Single Premium Whole of Life Insurance Plan

HDFC Single Premium Whole Of Life Insurance Plan is a tailor-made plan well suited to meet your long-term investment needs. This participating plan offers you the following benefits:

Whole of life plan aimed at providing long-term real growth of your money Single premium investment plan. In case of your unfortunate demise during the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments

During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as at the date of surrender.

Pension PlanHDFC Personal Pension Plan

We understand your need to build a secure future for yourself. Hence, the HDFC Personal Pension Plan is an insurance policy that is designed to provide a post - retirement income for life with the freedom to choose your retirement date.

You can choose your premium, the Sum Assured and your retirement date. At the end of the policy term, you will receive the Sum Assured plus any attaching bonus, which will provide your post - retirement income.

The HDFC Personal Pension Plan is an insurance policy, which can benefit you in the following ways:

Provides a post retirement income in your golden years

Gives you the flexibility to plan your retirement date

Gives you tax benefits on your premiums

The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment.

HDFC Unit Linked Pension Plan

HDFC understands ones need to build a secure future for them self. The HDFC Unit Linked Pension Plan is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns by providing a choice of thoroughly researched and selected investments. Stride into your golden years of retirement with dignity and pride. You can choose your premium and the investment fund or funds. We will then invest your premium, net of charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds, which will be used to provide your pension income.In the event of your unfortunate demise during the policy term, your spouse will receive a cash lump sum to help him or her manage their retirement years.

The HDFC Unit Linked Pension Plan is an insurance policy, which benefits you in the following ways:

Provides a post retirement income for life

Gives you the flexibility to plan your retirement date

Gives you the freedom to invest premiums as per your preference

Offers you potentially higher market linked returns

Give you tax benefits on your premiums and on receiving the lump sum

HDFC Unit Linked Pension PlusThe HDFC Unit Linked Pension Plus is an insurance policy that is designed to provide a retirement income for life with the freedom to maximise your investment returns. Stride into your golden years of retirement with dignity and pride.

The HDFC Unit Linked Pension Plus gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Regular Loyalty Units to boost your fund value every year. A post retirement income for life. Flexibility to plan your retirement date. Freedom to invest premiums as per your preference.You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds, which will be used to provide your pension income.

In the event of your unfortunate demise during the policy term, your spouse will receive a cash lump sum to help him or her manage the retirement years.

Use HDFC Standard Life's excellent investment options to maximize your savings & secure your golden years. Don't compromise on self-respect, ever. Go ahead, hold your head high and enjoy life with the HDFC Unit-Linked Pension Plus.Savings Plans

Savings Plans offers flexible options to build savings for ones future needs such as buying a dream home or fulfilling your childrens immediate and future needs. HDFC Endowment Assurance Plan: You have given your family the very best. And there is no reason why they should not get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today, but also in the long term. More importantly, you have to guard your loved ones against any eventuality. How will they sustain their way of life, so lovingly built by you, in your absence? With our HDFC Endowment Assurance Plan, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity. AlwaysThe HDFCSL Endowment Assurance Plan gives: An ideal way to secure your long-term financial goals Valuable protection to your family by way of lump sum payment in case of your unfortunate death within policy term

Provides lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date

Very flexible benefit options and payment optionsIn case of your unfortunate demise during the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured (together with the attached bonuses) you had chosen. The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investmentHDFC Unit Linked Endowment Plus II You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds. In case of your unfortunate demise during the policy term, we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family.

The HDFC Unit Linked Endowment Plus II gives: Valuable protection to your family in case you are not around. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Regular Loyalty Units to boost your fund value every year. Flexible benefit combinations and premium payment options. Flexible additional benefit options such as critical illness cover.Money Back Plan:

You have always believed in living life on your own terms. So why let the changing realities of everyday life overwhelm you and make your aspirations take a back seat? You can plan now to ensure that you have the necessary funds to meet your future financial needs.The table below will help you identify and classify some of your financial goals. You can prioritize these goals and set your objectives accordingly (see indicative table given below).

LONG-TERM GOALSSHORT TERM GOALSProvide adequate cover for Life, Critical

Illness or disability.

Buying a Car

Saving for big-ticket assets like your house.

Saving for your marriage

Saving for your childrens education

having a regular system for saving.

Vacation abroad

The HDFC Money Back Plan is a With Profit Plan that gives you:

A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals within the policy term an ideal way to secure your long- term as well as short-term financial goals. A lump sum payment on survival up to maturity date. Valuable protection to your family by way of lump sum payment in case of your unfortunate death within the policy term. This is over and above any earlier payouts.Making the right kind of investment will enable you to achieve your objectives be it your immediate expenses or else securing your future financial needs. Our Money Back Plan gives you a wide range of terms and cash benefit schedule to choose from. A summary of Key Benefits including the cash lump sum payments, expressed as a percentage of Sum Assured is shown below.Total policy term

Survival Benefit

Death Benefit

5th year

10th year

15th year

20th year

25th year

30th year

Within policy term

10

40%

60% Attaching bonuses

_

_

_

_

100% Sum Assured +attaching bonuses (over & above earlier payouts)

15

30%

30%

40% Attaching bonuses

_

_

_

20

25%

25%

25%

25% Attaching bonuses

_

_

25

20%

20%

20%

20%

20% Attaching bonuses

_

30

15%

15%

15%

15%

15%

25% Attaching bonuses

Maturity Value

On maturity you receive survival benefit due at that point of time along with attaching bonuses for the full Sum Assured calculated for the full term.

HDFC Children's PlanAs a parent, your priority is your childs future and being able to meet your childs dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much youll need when your child takes these important steps in life! Plan today to ensure a bright future for your child. Start building savings today with our HDFC Childrens Plan. So that your child is able to lead a life of respect and dignity with a secured financial future.

The HDFC Children's Plan gives: Invaluable financial support to your child

Helps you customize an ideal plan for your child

Provides you multiple options for multiple benefits

The HDFC Childrens Plan is designed to secure your childs future by giving your child(the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy term. The premiums, paid by you, are invested by the company to give you good long-term returns.

The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment.HDFC Unit Linked Young Star Plan:

As a parent, your priority is your childrens future and being able to meet their dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your children take these important steps in life.Plan today to ensure a bright future for your children. Start building savings today with the HDFC Unit Linked Young Star Plan. So that your child is able to lead a life of respect and dignity with a secured financial future.

The HDFC Unit Linked Young Star Plan gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Valuable protection in case of the insured parents unfortunate demise. Very flexible benefit combinations and payment options. Flexible additional benefit options such as critical illness cover.Use HDFC Standard Lifes excellent investment options to maximize your savings and maximize your childs achievements. We will provide security for your child and make those savings on your behalf, in your absence.HDFC Unit Linked Young Star Plus II

The HDFC Unit Linked Young Star Plus II gives:

Valuable protection to your child in case you are not around. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Regular Loyalty Units to boost your fund value every year. Flexible benefit combinations and premium payment options. Flexible additional benefit options such as critical illness cover

Flexible benefit payment preferences Double Benefit and Triple Benefit.In case of your unfortunate demise during the policy term, we will:

Pay the Sum Assured you had chosen to the beneficiary AND

For Double Benefit continue to pay 100% of the original regular premiums towards your Policy. For Triple Benefit continue to pay 50% of the original regular premiums towards your policy and pay the balance 50% of the premiums to the beneficiary.This means we will continue to make savings on your behalf, in your absence. The savings can be directed 100% towards your policy or 50% towards your policy and 50% will be available for the beneficiarys regular use until the original maturity date.

.HDFC Unit Linked Enhanced Life Protection II

You have given your family the very best. And there is no reason why they should not get the very best in the future too. With HDFC Unit Linked Enhanced Life Protection II, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity. Always.The HDFC Unit Linked Enhanced Life Protection II gives: Valuable protection to your family in case you are not around. Increasing insurance cover every year. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments.

Flexible premium payment options.

In case of your unfortunate demise during the policy term, we will pay the greater of your current Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family.HDFC Simpli Life You have given your family the very best. And there is no reason why they should not get the very best in the future too. With HDFC Simpli Life, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity always.

The Simpli Life gives:

Valuable protections to your family in case you are not around.

An out standing investment opportunity by providing a choice of thoroughly researched and selected investments.

Once you have chosen your investment fund or funds, we will then invest your premium, net of premium allocation charges in the proportion you specify. At the end of the policy term of 15 years, you will receive the accumulated value of your funds.

In case of your unfortunate demise during the policy term of 15 years, we will pay the following to your family.

The unit fund value.

Plus sum Assured of Rs.1 lakh.

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. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment.HDFC offer the following group products to their esteemed corporate clients: Group Term Insurance with Riders Group Term Insurance with Profit-Share Group Unit-Linked Plan

For Gratuity For Defined Benefit Superannuation For Defined Contribution Superannuation Group Leave Encashment PlanGroup Term Insurance Whatever the business - its the people who make it a success. Everybody requires some type of life insurance, especially when others depend on them financially. The Group Term Insurance plan meets precisely this need and serves as an ideal way for companies to reinforce their bond with their employees. The sort of needs you, as an employer might have could be:

An employee benefit

A cover for housing loan or vehicle loan given by you to your employees

A cover for future service gratuity liability to be taken along with the HDFC SL Group Unit Linked Plan.The Group Term Insurance (GTI) is a cost-effective plan that addresses these needs. In addition you have the choice to opt for a GTI with an experience discount feature, wherein a discount is given on future premiums in case of favourable claim experience (Subject to group size).The Group Term Insurance plan will have the following structure: One year renewable term insurance plan. One master policy issued covering all members of the group. Sum assured is payable on death (either due to natural causes or accidents).Key Features Of The PlanOur product has been designed to offer innovative features and a high degree of customization. These are: Convenient medical procedures: The members do not need to undergo any medical examination up to the Free Cover Limit. This limit is dependant upon the sum assured and the size of the group.

Premium options: Premium can be borne by employer or employee or both in some agreed proportion.High benefit at low cost: The Group Term Insurance is a cost-effective method of offering a very high value cover at very low premiums per head.

Total flexibility: The sum assured could be constant for all eligible employees or could vary according to grade or salary.Total adaptability: There is no restriction on new eligible employees joining the group or outgoing employees leaving the group during the policy term.

Customized service: A dedicated Relationship Manager will serve as a single-point contact to offer you customized policies, quick efficient service and speedy settlement of your claims.Amount of sum assured: The minimum sum assured is Rs.10,000 per person and there is no pre-defined cap on the maximum cover extended for each member

Limited exclusion: Only exclusion on the basic plan is suicide in the first year of joining the scheme.

Globally valid: Resident Indians are covered for the risk whilst travelling anywhere in the world.

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 that members 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.

The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.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 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:

Payment of premiums. Reporting of claims. 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.

Tax Benefits

INCOME TAX SECTIONGROSS ANNUAL SALARYHOW MUCH TAX CAN YOU SAVE?HDFC STANDARD LIFE PLANSSec. 80C

Across All income Slabs.

Up to Rs. 33,990 saved on investment of Rs. 1, 00,000.

All the life insurance plans.

Sec. 80 CCC

Across all income slabs.

Up to Rs. 33,990 saved on Investment of Rs.1, 00,000.

All the pension plans.

Sec. 80 D*

Across all income slabs.

Up to Rs. 3,399 saved on Investment of Rs. 10,000.

All the health insurance riders available with the conventional plans.

TOTAL SAVINGS POSSIBLE **

Rs. 37,389Rs. 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.

* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit.** These calculations are illustrative and based on our understanding of current tax legislations, which are subject to change.Please contact your tax consultant for exact calculation of your tax liabilities.

RESEARCH

METHODOLOGY

TITLE OF THE PROJECT

A study on Customer satisfaction towards HDFC Standard Life Insurance Company in Belgaum city.

OBJECTIVES To study the customer satisfaction towards HDFC SLIC products. To identify the product preference of the customers. To identify the information sources influencing the customers.LIMITATION OF THE STUDY The study was done for a short period of time, which might not hold true in the long run.

The study is limited only to Belgaum city.

RESEARCH METHODOLOGY

Data collection method

Primary data: Through survey method by using questionnaire. Primary data was collected

from 100 Customers in Belgaum city.Secondary data: secondary datas collected from the company records, brochures,

Catalogues and websites.Research approach : Survey methodResearch Instrument : QuestionnaireSample plan : Personal InterviewSampling method : Convenience sampling

Sample Size : 100 customers

Sample Unit : Company customersArea of survey : Belgaum cityANALYSIS

AND

INTERPRETATION

GENDER

INTERPRETATION:Out of 100 respondents, 68% respondents are Male, and 32% respondents are Female.

MARITAL STATUS

INTERPRETATION:Out of 100 respondents, 58% respondents are unmarried, and 42% respondents are married.1. How did you come to know about HDFC standard life insurance?

INTERPRETATION:From the survey we can come to know that the knowledge about the company and its products comes from Friends and Relatives i.e. 43%. And it is followed by 36% by financial advisors, 12% by Media and 9% by Own Interest.2. Which policy do you hold now?

INTERPRETATION:Out of 100 respondents, 44% respondents hold unit linked plan, 22% respondents have children plan, 17% respondents hold saving plan, 12% respondents hold pension plan, and 5% respondents hold protection plan. 3. What is your mode of payment?

INTERPRETATION:Out of 100 respondents, 33% respondents have mode of payment on yearly, 25% respondents have on half yearly, 18% respondents have mode of payment on quarterly, 17% respondents have mode of payment on monthly and 7% respondents have mode of payment on at a time.4. Are you satisfied with returns provided by HDFC standard life insurance?

INTERPRETATION:Out of 100 respondents, 67% respondents are satisfied with returns provided 17% respondents being highly satisfied and 16% are dissatisfied.5. Grade the following service provided by HDFC standard life insurance. Attending query

INTERPRETATION:Out of 100 respondents, 54% Respondents feels attending query is good, 32% respondents feel it as average. And 14% respondents feels attending query is excellent.. Collection of payment

INTERPRETATION:Out of 100 respondents, 57% respondents feels Collection of payment is good, 27% respondents feels it as average, And 16% respondents feels Collection of payment is excellent. After sales service

INTERPRETATION:Out of 100 respondents, a 45% respondent feels it as average, 35% respondents feels after sales service is good. And 20% respondents feel after sales service is excellent, 6. Grade the features of the product. Safety

INTERPRETATION:Out of 100 respondents, 52% respondents feels product feature (safety) is good 26% respondents feels product feature (safety) is excellent, And 22% respondents feels it as average. Returns

INTERPRETATION:Out of 100 respondents, 60% respondents feels product feature (Returns) is good, 27% respondents feels it as average, And 13% respondents feels product feature (Returns) is excellent. Risk cover

INTERPRETATION:Out of 100 respondents, 65% respondents feels product feature (Risk cover) is good,21% respondents feels product feature (Risk cover) is excellent, And 14% respondents feels it as average. Tax benefit

INTERPRETATION:Out of 100 respondents, 57% respondents feels product feature (Tax benefit) is good, 24% respondents feels product feature (Tax benefit) is excellent, And 19% respondents feels it as average.7. Most and secured policy is

INTERPRETATION:Out of 100 respondents, 45% respondents thinking that unit linked is most & secured one and 26% respondents thinking childrens policy is most & secured one.

Company can make further policy on that.

8. I think that HDFC standard life insurance is Excellent because of.

INTERPRETATION:Out of 100 respondents, 54% respondents are thinking that HDFC is Excellent because of good returns, 32% respondents are thinking that HDFC is Excellent because of service provided, and 14% respondents are thinking that HDFC is Excellent because of brand name.9. In future I am interested in investing my money in HDFC standard life insurance.

INTERPRETATION:Out of 100 respondents, 65% respondents are interested in investing in HDFC because of good returns, 22% respondents are interested in investing in HDFC because of service provided and 13% respondents are interested in investing in HDFC because of safety.10. Rate your overall satisfaction about HDFC standard life insurance.

INTERPRETATION:Out of 100 respondents, , 53% respondents have rated as good, 29% respondents have rated as average, and 18% respondents have rated as very good.FINDINGS

AND

SUGGESTIONS

FINDINGS From the survey we can come to know that the knowledge about the company and its products comes from Friends and Relatives i.e. 43%. And it is followed by 36% by financial advisors, 12% by Media and 9% by Own Interest. Out of 100 respondents, 44% respondents hold unit linked plan, 22% respondents have children plan, 17% respondents hold saving plan, 12% respondents hold pension plan, and 5% respondents hold protection plan. 33% respondents have mode of payment on yearly, 25% respondents have on half yearly, 18% respondents have mode of payment on quarterly. 67% respondents are satisfied with returns provided by HDFC Standard Life Insurance and 17% respondents being highly satisfied. 45% respondents thinking that unit linked is most & secured one, as they perceive it as very risky.

54% respondents are thinking that HDFC Standard Life Insurance is Excellent because of good returns, 32% respondents are thinking that HDFC Standard Life Insurance is Excellent because of service provided. 65% respondents are interested in investing in HDFC Standard Life Insurance because of good returns, 22% respondents are interested in investing in HDFC Standard Life Insurance because of service provided, the company should think of improving its service.SUGGESTIONS

Company can arrange meeting of their existing customer and also, can take their recommendation once or twice in a year and also they can motivate them to make further investment.

Company should advertise in local news paper about their progress of the branch and it will increase positive thinking in the mind of the customers. Company has to provide good service (after sales service) to their existing customers to make further investment and they should attract to new customer also and it can be possible with better service.

Company has to conduct meeting of their agents periodically to know the progress of their agents efforts.

The company should come out with more and more innovative unit linked products which provide the good returns to the investors.

CONCLUSIONTo conclude, the survey highlighted some important facts, though HDFC Standard Life Insurance Company performed well.Company can arrange meeting of their existing customer and also, can take their recommendation once or twice in a year and also they can motivate them to make further investment.

Company should advertise in local news paper about their progress of the branch and it will increase positive thinking in the mind of the customers.BIBLIOGRAPHYBIBLIOGRAPHYBooks Marketing Management by Biplab S.Bose IC 33 Life Insurance by S.Balachandran Web sites www.hdfcinsurance.com www.google.com www.irda.comANNEXUREQUESTIONNAIREDear Sir/ Madam,

Name:

Age:

Address:.

Phone No: . Occupation:Gender: Male Female

Marital Status: Married Unmarried

Note: Please tick in (() the appropriate box.

1. How did you come to know about HDFC standard life insurance? Friends & Relatives

Financial Advisor

By own interest Media

2. Which policy do you hold now?

Savings plan Childrens plan

Pension plan Protection plan

Unit linked plan

3. What is your mode of payment?

Monthly Quarterly

Half yearly Yearly

At a time

4. Are you satisfied with returns provided by HDFC standard life insurance.

Highly satisfied Satisfied Dissatisfied Highly dissatisfied

5. Grade the following service provided by HDFC standard life insurance.

ExcellentGoodAverageBad

Attending query

Collection of payment

After sales service

6. Grade the features of the product.

ExcellentGoodAverageBad

Safety

Returns

Risk cover

Tax benefit

7. Most and secured policy is

Savings plan Childrens plan

Pension plan Protection plan

Unit linked plan

8. I think that HDFC standard life insurance is number one because of.

Good returns Service provided Brand name If any specify

9. In future I am interested in investing my money in HDFC standard life insurance because of.

Service provided Good returns

Safety If any specify

10. Rate your overall satisfaction about HDFC standard life insurance.

Very good Good

Average Poor

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