CHAPTER - 1

1.1 GENERAL INTRODUCTION

Insurance is a protection against financial loss arising on the happening of

an unexpected event. You cannot take anything for granted in life.

Insurance is system by which the losses suffered by a few are spread over

many, exposed to similar risks. Insurance policies are a safeguard against

the uncertainties of life. Insurance policy helps in not only mitigating risks

but also provides a financial cushion against adverse financial burdens

suffered. Insurance policies cover the risk of life as well as other assets and

valuables such as home, automobiles, jewelry etc. Insurance policies can be

classified into two categories. Which are given below: -

Life Insurance PolicyGeneral Insurance Policy

Life insurance is a guarantee that your family will receive financial support,

even in your absence. It thus protects to your family from the financial

crises. It serves as a protective cover to your family, life insurance acts as

flexible money-saving scheme, which empowers you to accumulate wealth-

to buy a new car, get your children marriage and even retire comfortably.

Life insurance also triples up as an ideal tax-saving scheme.

Need of Life Insurance

In modern day investments include gold, property, fixed income

instruments, mutual funds and of course, life insurance. Given the excess of

choices, it becomes very important to make the right choice when investing

your hard-earned money. Life insurance is a unique investment that helps

you to meet your dual needs - saving for life's important goals, and

protecting your assets.

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Some unique benefits of life insurance in detail:-

Asset Protection

From an investor's point of view, an investment can play two roles - Asset

Appreciation and Asset Protection. Most of the financial instruments have

the underlying benefit of asset appreciation. Life insurance is unique in that

it gives the customer the reassurance of asset protection, along with a

strong element of asset appreciation.

Life insurance or Life Assurance is a contract between the policy owner

and the insurer, where the insurer agrees to pay a sum of money upon the

occurrence of the insured individual's or individuals' death. In return, the

policy owner (or policy payer) agrees to pay a stipulated amount called a

premium at regular intervals or in lump sums (so-called "paid up"

insurance). There may be designs in some countries where: (Assets, Bills,

and death expenses plus catering for after funeral expenses should be

included in Policy Premium. Anyone whose assets equal more than the

value of their primary residence should not be compensated beyond that

value in case they cannot sell their house. In the case of those who have lost

their spouse should be compensated also for one full year the wages of their

spouse which would or should be included to avoid lawsuits.) However in

the United States, the predominant form simply specifies a lump sum to be

paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the

insurer and the policy owner (policyholder) whereby a benefit is paid to the

designated Beneficiary (or Beneficiaries) if an insured event occurs which is

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covered by the policy. To be a life policy the insured event must be based

upon life (or lives) of the people named in the policy.

Insured events that may be covered include:

1. Death

2. Accidental death

3. Sickness

Life policies are legal contracts and the terms of the contract describe the

limitations of the insured events. Specific exclusions are often written into

the contract to limit the liability of the insurer; for example claims relating

to suicide (after 2 years suicide has to be paid in full) (in India after one

year Suicide is covered), fraud, war, riot and civil commotion.

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1.2 OBJECTIVES OF THE STUDY

1. To analyze the potential of Life Insurance in Investment Industry.

2. To get better understanding of various Life Insurance Product.

3. To compare the performance of various Life Insurance Companies.

4. To evaluate various need of customers for Life Insurance and their

purchase behavior

5. To know the level of brand awareness of HDFCSLI among the

consumers.

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1.3 INDUSTRY PROFILE

a) Origin and Development of Insurance Industry

Insurance began as a way of reducing the risk of traders, as early as

5000 BC in China and 4500 BC in Babylon. Life insurance dates only to

ancient Rome; "burial clubs" covered the cost of members' funeral expenses

and helped survivors monetarily. Modern life insurance started in late 17th

century England, originally as insurance for traders: merchants, ship

owners and underwriters met to discuss deals at Lloyd's Coffee House,

predecessor to the famous Lloyd's of London.

The first insurance company in the United States was formed in

Charleston, South Carolina in 1732, but it provided only fire insurance. The

sale of life insurance in the U.S. began in the late 1760s. The Presbyterian

Synods in Philadelphia and New York created the Corporation for Relief of

Poor and Distressed Widows and Children of Presbyterian Ministers in

1759; Episcopalian priests organized a similar fund in 1769. Between 1787

and 1837 more than two dozen life insurance companies were started, but

fewer than half a dozen survived.

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Prior to the American Civil War, many insurance companies in the

United States insured the lives of slaves for their owners. In response to

bills passed in California in 2001 and in Illinois in 2003, the companies have

been required to search their records for such policies. New York Life for

example reported that Nautilus sold 485 slaveholders life insurance policies

during a two-year period in the 1840s; they added that their trustees voted

to end the sale of such policies 15 years before the Emancipation

Proclamation.

b) Growth & Present Status of Insurance Industry

Before insurance sector was opened to the private sector Life

Insurance Corporation (LIC) was the only insurance company in India. After

the opening up of Insurance sector in India there has been a glut of

insurance companies in India. These companies have come up with

innovative and flexible insurance policies to cater to varying needs of the

individual. Opening up of the Insurance sector has also forced the LIC to

tighten up its belt and deliver better service. All in all it has been a bonanza

for the consumer.

Major Life insurance Companies in India are:

1. Aviva Life Insurance

2. Bajaj Allianz

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3. Birla S un Life Insurance

4. HDFC Standard Life Insurance

5. ICICI Prudential

6. ING Vysya

7. Kotak Mahindra

8. LIC

9. Max New York Life Insurance

10. Metlife India Insurance

11. Reliance Life Insurance

12. SBI Life Insurance

13. Shriram Life Insurance

14. TATA AIG Life Insurance

c) Future of Insurance Industry

Many hypotheses address why the incidence of insurance has

declined in the past decade: People are anti-insurance; they're buying term

and investing the rest; changing life expectancies and delayed family

formation have shifted the need for insurance; buyers are more

sophisticated and prefer other products; agents are forsaking the middle

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class and focusing on the wealthy; Boomers refuse to grow up, and buying

life insurance acknowledges mortality; people need less life insurance, and

with the declining need, the industry is shrinking; agents are unpleasant to

deal with; property/casualty insurance is replacing life insurance; and so on.

Clearly, a strong factor in the increase in surplus capital lies at the door of

favorable economic conditions, with equity markets up by around 10%.

Reflecting this more buoyant environment, the results also indicate that the

realistic reporters were net purchasers of equities, with the marginal

£0.4bn reversing the downward sales trend that had emerged since we

started collecting this data in 2006. The aggregate Equity Backing Ratio for

assets backing asset shares also increased over the full year moving from

39% to 43%. All in all, these results are very encouraging and while the

economic environment clearly has had its part to play, the industry has

worked hard to deliver some long awaited stability. And, in terms of the

capital with-profits insurers have at their disposal, the sector is in a far

better position to ensure that policyholder commitments are honored as

they fall due, and as such that customers are treated fairly. In conclusion,

we are looking forward to a future for the life industry characterized by

adequate capital, sound management and fair treatment of customers. We

think we are most likely to get there by adopting a more principle based,

outcome focused approach to regulation. To a significant degree this is

already happening in the areas that I have chosen to highlight today – the

emphasis now needs to be on making sure that policy decision is turned into

effective implementation.

CHAPTER - 2

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2.1 ORIGIN OF HDFC STANDARD LIFE INSURANCE CO.LTD

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th

august 2000. It is a joint venture between Housing Development Finance

Corporation Limited (HDFC Ltd.) India and UK based Standard Life

Company. Both the joint venture partners being one of the leaders in their

respective areas came together in this 81.4:18.6 joint venture to form

HDFC Standard Life Insurance Company Limited. The MD and CEO of

HDFC Standard Life Mr. Deepak Satwalekar, has given the company new

directions and has helped the company achieve the status it currently

enjoys. HDFC Standard Life brings to you a whole range of insurance

solutions be it group or individual or NAV services for corporations; they

can be easily customized as per specific needs

2.2 GROWTH AND DEVELOPMENT OF HDFCSLI

HDFC Standard Life Insurance Company Ltd. is one of India’s

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.), India’s leading

housing finance institution and The Standard Life Assurance Company, a

leading provider of financial services from the United Kingdom. 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. The company has a range of individual and group solutions,

which can be easily customized to specific needs. The group solutions have

been designed to offer complete flexibility combined with a low charging

structure.

HDFC Standard Life Insurance is the first private life insurance

company to be granted a license by IRDA Rated by ‘Business world’ as

‘India’s Most Respected Private Life Insurance Company’ in 2004 Has

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grown over 130% in the last year, with more than 8 lakh policyholders Has

one of the widest branch networks with offices in over 100 cities servicing

over 440 towns Has the highest brand recall, close to 80% (Source: AC

Neilson ORG MARG, April 2005). HDFC Standard Life, one of the leading

private insurance companies in the country, is in an expansion mode in the

state of Madhya Pradesh. The company has inaugurated its branch office in

Morena and will subsequently open offices in Datia, Bhind and Dabra by the

second week of May 2007.' This expansion comes in line with the company’s

strategy to strengthen its presence in the state of Madhya Pradesh, thereby

also consolidating its premier position in the insurance business in India.

Speaking on its increasing presence in the region, Mr. Deepak Satwalekar,

CEO & MD HDFC Standard Life Insurance said, “The Company wants to

be as close to its customers as possible and wants to ensure complete

customer convenience and delight. We felt the need to increase our spread

in MP because of its growing potential and hence expansion is an obvious

choice.” With the launch of four branches consecutively in the region,

HDFC Standard Life’s presence will increase to 13 branch locations and 16

spoke locations in MP.

Track Record so far

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The cumulative premium income, including the first year premiums

and renewal premiums is Rs. 1532.21 Crores in FY 2005 - 06. The company

has covered over 1.6 million individuals, out of which over 5,00,000 lives

have been covered through their group business tie-ups. The company also

declared their 5th consecutive bonus in as many years for their

policyholders.

Key Dates

7th May 2007 - HDFC Standard Life expands its reach to smaller cities in

Madhya Pradesh

15th February 2007 - HDFC Standard Life expands it’s reach in Vidarbha

16th May 2006 - HDFC Standard Life records impressive growth

7th February 2006 - HDFC Standard Life records impressive growth

29th November 2005 - HDFC Standard Life posts strong growth

16th August 2005 - HDFC Standard Life grows faster than the private

sector average

16th May 2005 - HDFC Standard Life declares results for FY 2004-05

2.3 PRESENT STATUS OF HDFCSLI

Nationally HDFC Standard Life Insurance covers over 693 cities and

towns through its offices in India with over 79,000 Financial Consultants

appointed by the company. HDFC Standard Life Insurance also has 833

corporate agents and other sales intermediaries including banks for

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distribution of insurance products. HDFC Standard Life’s Product

portfolio comprises solutions, which meet various customer needs, like

Protection, Pension, Savings and Investment. Customers have the added

advantage of customizing the Plans, by adding optional benefits called

riders, at a nominal price. The company currently has 21 retail and 6 group

products in its portfolio. HDFC Standard Life maintains very high

professional standards, during product offerings, by providing sound

financial advice, efficient post-sale service and immaculate financial

security. Ongoing training for conventional products, and specialized

training, for unit-linked products, for its financial consultants, has also

helped its customers choose the product, best suited for their needs.

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2.4 FUTURE PLANS OF HDFCSLI

HDFC Life Insurance Ltd is targeting a 250 per cent growth in its first

premium income in 2009-09 and will soon infuse a further Rs 37.5 cr. to its

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existing share capital of Rs 255.5 cr. "Major expansion of branches, higher

productivity and contribution from unit-linked products will enable the

company to achieve this high growth in current year," said Pankaj Seith,

head, alternative channels, HDFC Standard Life Insurance. Over the next 3-

4 years, the company will increase its capital base to Rs 700-800 cr. The

company will increase its branch network from 60 to 103 by the end of

2008-09. In Gujarat, the company is doubling its branch network from 4 to 8

branches by setting up branches at Vapi, Gandhidham, Bhavnagar and

Jamnagar. "Business growth in Gujarat has been higher than the national

average during FY07 and that is why the company has decided to double its

network," said Sanjay Vij., regional manager of Gujarat. The state

constitutes for around 7-8 per cent of the national business. "The unit-

linked product launched by the company in January 04 has met with a

strong response from Gujarat as it offers partial investment in equities. As

against the national growth of 30-35 per cent, the unit-linked business in

Gujarat has grown by 40-45 per cent." HDFC Life is also pushing sales

through the bank assurance route. "The company is in talks with a few

banks and even some cooperative banks in Gujarat and elsewhere for

marketing insurance products. Currently, HDFC Bank, Union Bank of India,

Indian Bank and Saraswat Bank are selling HDFC Life products and

contribute to around 25 per cent of total business," said Seith. A special

bank assurance product is going to be launched in future. The company has

met its rural market targets and as against 12 per cent of total policies sold

in FY09, it will raise it to 14 per cent in current year.

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2.6 ORGANIZATIONAL STRUCTURE AND ORGANIZATIONAL CHART

HDFCSLI has a Functional structure because here the core product is

insurance. A functional structure is well suited to organizations which have

a single or dominant core product because each subunit becomes extremely

adept at performing its particular portion of the process. The organization

is structured according to functional areas instead of product lines. The

functional structure groups specialize in similar skills in separate units. This

structure is best used when creating specific, uniform products. They are

economically efficient, but lack flexibility. Communication between

functional areas can become efficient if there is proper coordination

between HR, Customer Service & Operation, IT, Finance, Sales and

Marketing team etc.

2.7 PRODUCT & SERVICE PROFILE OF HDFCSLI

At HDFC Standard Life, we offer a bouquet of insurance

solutions to meet every need. We cater to both, individuals as well as to

companies looking to provide benefits to their employees. This section gives

you details of all our products. We have incorporated various downloadable

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

buying a policy.

For individuals, we have a range of protection, investment, pension

and savings plans that assist and nurture dreams apart from providing

protection. You can choose from a range of products to suit your life-stage

and needs.

For organizations we have a host of customized solutions that range

from Group Term Insurance, Gratuity, Leave Encashment and

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Superannuation Products. These affordable plans apart from providing long

term value to the employees help in enhancing goodwill of the company.

Individual Products

We at HDFC Standard Life realize that not everyone has the same

kind of needs. Keeping this in mind, we have a varied range of Products

that you can choose from to suit all your needs. These will help secure your

future as well as the future of your family

Protection Plans

You can protect your family against the loss of your income or the

burden of a loan in the event of your unfortunate demise, disability or

sickness. These plans offer valuable peace of mind at a small price. Our

Protection range includes our Term Assurance Plan & Loan Cover Term

Assurance Plan.

HDFC TERM ASSURANCE PLAN

(Secure your family’s financial independence and self-respect.)

Our Protection Plans give you

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.

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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.

The HDFC Term Assurance Plan is an insurance policy that is

designed to help secure your family's financial needs. The plan does this by

providing a lump sum to the family of the life assured in case of death or

critical illness (if option is chosen) 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.

3 EASY STEPS TO YOUR OWN PLAN

Step 1 - Choose the life cover required to secure your family's future in

your absence.

Step 2 - Choose from any one of the 3 additional optional benefits as per

your requirement.

Step 3 - Work out the premium payable along with our Financial

Consultant.

HDFC LOAN COVER TERM ASSURANCE PLAN

Our Protection Plans give you :

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

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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.

Investment Plans: Our Single Premium Whole of Life plan is well

suited to meet your long term investment needs. We provide you with

attractive long term returns through regular bonuses.

HDFC Single Premium Whole of Life Plan

“Money is like manure. You have to spread it around or it

smells.”

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.

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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.

HDFC PERSONAL PENSION PLAN

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

HDFC UNIT LINKED PENSION

The HDFC Unit Linked Pension gives you:

An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments

A post retirement income for life

Flexibility to plan your retirement date

Freedom to invest premiums as per your preference

HDFC UNIT LINKED PENSION PLUS

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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

Savings Plans

HDFC Endowment Assurance Plan

The HDFC Endowment Assurance Plan gives you:

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 demise within policy term

Lump sum payment (basic Sum Assured plus any bonus additions) on

survival up to maturity date

Very flexible benefit options and payment options

HDFC UNIT LINKED ENDOWMENT

T HDFC Unit Linked Endowment Plan gives you:

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An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments

Valuable protection to your family in case you are not around

Flexible benefit combinations and payment options

Flexible additional benefit options such as critical illness cover

Access to your accumulated fund before maturity

HDFC UNIT LINKED ENDOWMENT PLUS

The HDFC Unit Linked Endowment 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

Valuable protection to your family in case you are not around

Flexible benefit combinations and payment options

Flexible additional benefit options such as critical illness cover

Access to your accumulated fund before maturity

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 GOALS SHORT TERM GOALS

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Provide 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 children's education Vacation abroad

Having a regular system for savings  

HDFC Money Back Plan

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 (see the table given below) 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.

HDFC CHILDREN'S PLAN

The HDFC Children's Plan gives you:

Invaluable financial support to your child

A choice to customize an ideal plan for your child

Multiple options for multiple benefits

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HDFC UNIT LINKED YOUNG STAR

An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments

Valuable protection to your child in case you are not around

Flexible benefit combinations and payment options

Flexible additional benefit options such as critical illness cover

Access to your accumulated fund before maturity

Pay the Sum Assured you had chosen to your child

Continue your policy AND continue to pay the original regular premiums you

had chosen

In case of your unfortunate demise during the policy term, we will:

HDFC UNIT LINKED YOUNG STAR PLUS

The HDFC Unit Linked Young Star Plus gives you:

An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments

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Regular Loyalty Units to boost your fund value every year

Valuable protection to your child in case you are not around

Flexible benefit combinations and payment options

Flexible additional benefit options such as critical illness cover

Access to your accumulated fund before maturity

PRODUCT BASKET

INDIVIDUAL PRODUCTS

Protection Plans:

HDFC TERM ASSURANCE PLAN

HDFC LOAN COVER TERM ASSURANCE PLAN

Investment Plans:

HDFC Single Premium Whole of Life Plan

Pension Plans:

HDFC PERSONAL PENSION PLAN

HDFC UNIT LINKED PENSION

HDFC UNIT LINKED PENSION SUPER

Savings Plans:

HDFC Endowment Assurance Plan

HDFC UNIT LINKED ENDOWMENT PLAN

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HDFC UNIT LINKED ENDOWMENT SUPER

Children Plan:

HDFC CHILDREN'S PLAN

HDFC UNIT LINKED YOUNG STAR

HDFC UNIT LINKED YOUNG STAR SUPER

GROUP PRODUCTS

HDFC GROUP TERM INSURANCE PLAN

HDFC GROUP VARIABLE TERM INSURANCE

HDFC GROUP UNIT LINKED PLAN

SOCIETY PRODUCTS

DEVELOPMENT INSURANCE PLAN

Premium Payment

6 Easy Ways to pay your premium:

Lapse & Revival

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Your renewal premium should reach us by the due date specified in

the premium reminders. It is always advisable to pay on time so that your

valuable policy benefits can continue.

Policy Servicing

Change in personal details

Change in policy benefits

Others such as loss of policy, look- in option etc.

This section is designed to give you information that you may require

incase you wish to make changes in Personal details or Policy details in

your existing policy. The changes that you can avail of are:

Claims

We understand that bereavement can be difficult to deal with,

specially when you have to arrange for all the formalities in case of

insurance claims.

At HDFC Standard Life we lend a helping hand by enabling faster

settlement of claims and help the family financially at the time of distress.

For any assistance or query relating to reporting claims (Death

Claims /

Critical Illness Claims) you may get in touch with us by emailing us at

claims@hdfcinsurance.com and we will get back to you with the details that

will be required to process a claim.

Death claim form

Original Policy Document

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A copy of death certificate issued by Municipal Corporation / Government*

Proof of identity of beneficiary viz passport or Election ID or Pan CardOr Driving License.

Proof of residence of beneficiary viz Electricity bills or Ration card ortelephone bill or passport (bills not greater than 3 months)

2.8 MARKET PROFILE OF THE ORGANIZATION

HDFC Standard Life Insurance holds market share of 8.7% and ranks

4 among the private sectors. HDFCSLI expecting to capture 12% of market

share by 2009 and to be in top position among the private sector. The

company is increasing the brand awareness through continuous

advertisement on TVC and print. Company is focusing on complete solution

of investment for the customer delighting them through their service and

return on their investment. The Marketing function at HDFC Standard Life

Insurance covers an array of activities - brand and media management,

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channel support, direct marketing and corporate communications. The

Brand and Communications team is in charge of advertising, consumer

research, media planning & buying and Public Relations; that helps develop

and nurture HDFC Standard Life Insurance corporate identity while

effectively communicating its varied product offerings to the customer.

Channel marketing provides support to the sales force by streamlining the

design and development of collaterals and sales tools across distribution

channels. The Direct marketing team was set up to generate high quality

leads for profitable business. The team achieves this through target

database acquisition and communicating customized product information

through e-mailers, telemarketing and innovative direct mailers.

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CHAPTER - 3

3.1 STUDENT WORK PROFILE (ROLE & RESPONSIBILITES)

I am working in HDFCSLI as a FINANCIAL CONSULTANT &

RECRUITMENT CONSULTANT.

FINANCIAL CONSULTANT: Major responsibility handed over me is

to generate lead of potential customer through contacts, references and

activities. Also telemarketing through the existing data base given by the

manager. Once the appointment are fixed I have to meet the customer

interact with them convince them about the product after analyzing their

need & requirement. Helping the customer to fill the form collecting the

document and finally handing it to sales manager for logins

3.2 DESCRIPTION OF LIVE EXPERIENCE

Working in HDFCSLI has helped me to gain lots of experience in sales

and marketing field. I came to about the insurance business how it works

and it gave me an idea that insurance business starts with is one sale

business that is it entirely depend on networking. During the initial stage of

my joining I was not able to sell the products it was early 30 days when I

was not giving any business to my sales manager. I was de-motivated but at

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that time my manager helped me and makes me understand where I was

going wrong. He told me to sell the product first to whom you know rather

that calling customer through data base in which first the customer agrees

and shows their interest to take the product. After following them for 10-20

they refuse to take the products. Sometime it may happens that they fix the

appointment and when I go to meet them they were not available and when

I call them they don’t pick the phone or even if they pick the cut it after

listening my voice. I was very much disappointed with such behavior of

customer. First customer whom I was able to sell the product was my friend

to whom I sold ULIP plan with initial cheque of 30000k. After completing all

the formalities and login the form I have asked him to give me some

references who are interested in taking the plan for tax saving. Since he

was a software engineer so he has given me three references. I called them

and follow them I in these three two where finally convinced and taken the

same plan. I again asked some references from them and they given few

after following I again succeed to sell the product and in this way I

developed a network in market and things are going very easily. I always

remember one quote of my manager that don’t work hard work smart.

3.3 CONTRIBUTION TO ORGANIZATION

The main contribution of an employee to its organization is to perform

his responsibilities given with 100% effort and honesty. I am working in

HDFCSLI as a Financial Consultant and Recruitment Consultant. My major

responsibility is to sell the product and recruit FC for the organization. I am

one of the top performers of my company where every month I am giving

business of 50000-60000k. For the goodwill of the company I am always

honest to tell all the facts and benefits of the product to the customer and

convince them for the right product that best suits them. After login their

forms I call them and do a formal call that whether they received their

documents or not and if some complication occurs with the document I take

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care about them. It helps me to generate new business for the company in

one hand and getting goodwill to the company on other hand. As I have

joined recently as a recruitment consultant so my contribution is not very

huge but in one month I am able to recruit 3 FC and they all are taking

interest and doing business for the company. So my contribution to the

organization is good I am giving good business and good people to the

company who are working and doing good business. I am very much

satisfied with the level of work I am doing for the company and I am also

able to keep my sales manager happy through my performance and through

my quality of work. It was because of my dedication and hard work that my

branch manager has offered me to join as a recruitment consultant. Both I

myself and my seniors are happy with my contribution to the organization.

CHAPTER – 4

NEED AND IMPORTANCE OF THE STUDY

Since the opening up insurance market to private operations, India is considered one of the hottest place with the majority of market being untapped through there are restriction for foreign operators. Traditional and ULIP products have their own benefits and at what extent customers are aware about these products. Research is the systematic, objective and exhaustive search for and study of facts relevant to the problem.

Research design means the framework of the study that leads to the collection and analysis of the data. It is conceptual structure with in which research is conducted.

It facilitates smooth sailing of various research operations to make the research as effective as possible.

The study was conducted as an exploratory sampling survey method to collect primary and secondary data.

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4.1 RESEARCH PROBLEM

“A study on the awareness of customers about Traditional and Unit linked investment plan of insurance policies with special reference to HDFC Standard Life Insurance.”

4.2 STATEMENT OF RESEARCH OBJECTIVES

To measure awareness among existing customers regarding HDFC’s different insurance products.

To assess customer preference towards these different insurance products.

To compare HDFC Standard Life Insurance products with other products in the market

To measure the customer satisfaction level with respect to HDFC Standard Life Products

4.3 RESEARCH DESIGN AND METHODOLOGY

Research Design:

Research Design that is followed in this report is judgment sampling. Judgment sampling was the most appropriate because the data has to be collected from the existing customer of HDFC. So research was done by approaching the customers of HDFC by visiting different branches of HDFC located at Sagar, 10 sample from each branches are picked judgmentally. Thus the total sample of 30 was taken and analyzed.

METHODS OF DATA COLLECTION

PRIMARY DATA

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A well structured questionnaire was personally administrated to the selected sample to collect the primary data.

SECONDARY DATA

Secondary data are those which have already been collected by some other person for their purpose and published. Secondary data are usually in the shape of finished products.

Two types of secondary data were collected for the project .

INTERNAL DATA: - was generated from company’s brochures, manuals and annual report. have given valuable information for the present study.

EXTERNAL DATA: - was generated from magazines, research articles, books and internet. Magazines devoted solely to insurance news, such as Asia Insurance News, insurance chronicle-monthly insurance digest and other marketing magazines.

SAMPLING TECHNIQUES

A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A judgment sampling technique was used to collect data from respondents. Judgment sampling is a common non probability method. So while conducting the survey 30 respondents were selected at judgment.

To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire.

The questionnaire was used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically.

SCOPE OF STUDY

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The respondents of this dissertation were 30 Life Insurance Policy holders of HDFC insurance company and study was focus on the awareness of Traditional and ULIP plan of insurance policies.

Questionnaire was used for survey and was answered by the customers of HDFC Standard Life Insurance Company.

Survey was done by approaching the customers of HDFC by visiting different branches located at Sagar.

Personal interview method was apply to collect the actual data for the research study, the interaction with the respondents before filling questionnaire have made them more friendly and free to give the information.

SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study, 30 respondents were selected at judgment. All the 30 respondents were the customers of HDFC Standard Life Insurance Company.

Limitation of study

This research work is done by approaching a small population, in a restricted geographical area. Uncontrolled factors may affect the outcome of research. So the actual result may vary from the research conducted.

4.4 ANALYSIS OF DATA AND INTERPRETATION

TABLE NO 4. 1: Monthly income of the respondents

Particulars No of Respondents Percentage (%)

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Less than 20,000 11 37

20,000- 30,000 12 40

30,000 – 40,000 5 16

More than 40,000 2 7

Total 30 100

Analysis

There are variations in monthly income of the people and it is ranging between less than Rs 20000 to more than Rs 40000.

There are variability of income among the people which is due to their education and the stages of their career. Many of the respondents are employed (government/ private) few of them are running their own business.

Graph 4.1: Monthly income of respondents

From the above table it can be inferred that:

37% of the 30 respondents have a monthly income of less than 20,000

40% of the respondents have a monthly income of 20,000 – 30,0007 % of the respondents have a monthly income of more than 40, 000

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TABLE NO 4.2:monthly savings of respondents

Particulars No of Respondents Percentage (%)

Less than 2,000 9 30

2,000 – 4,000 8 26

4,000 – 6,000 6 20

6,000 – 8,000 4 14

More than 8,000 3 10

Total 30 100

AnalysisPeople in Bangalore have different range of savings which is diversified according to their income level and here it ranges between less than Rs 2000 to more than Rs 8000.People are able to save their money after their expenditure which depends on their income, family size and their lifestyle. Bangalore is comparatively expensive city so the Customers are able to save very less from their earnings.Graph 4.2: Monthly savings of the respondents

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From the above table it can be inferred that:

30% of the 30 respondents have a monthly savings of less than 2,00010% of the respondents have a monthly savings of more than 8,000

TABLE NO 4. 3 purpose of savings of the respondents

Particulars No of Respondents Percentage (%)

Medical expenses 6 20

To buy durables 3 10

To buy jewelleries 2 7

To buy house or site 8 27

Education 9 30

Others 2 7

Total 30 100

Analysis

People are saving their money for various purposes like for children’s education, to buy houses, for medical expenses. Here people are more conscious about their health and education.

People have their own choice of saving their money according to their preferences. Most of the people give priorities for education, houses and health so they are saving their money for these purposes.

Graph 4.3: Purpose of savings

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From the above table it can be inferred that:

20% of the 30 respondents make a monthly savings for the purpose of medical expenses.27 % of the 30 respondents make savings for the purpose to buy house or site.30 % of the 30 respondents make savings for the purpose of education.

TABLE NO 4.4 investment preference of the respondents:

Particulars No of Respondents Percentage (%)

Bank deposit 7 23

Insurance 6 20

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Shares 4 13

Debentures 3 10

Real estate 4 13

Gold 1 4

Mutual fund 3 10

Chit fund 2 7

Others 0 0

Total 30 100

Analysis

People have so many options to invest their savings. But most of the people go for bank deposit due to the safety purposes. People have so many options where they can invest their money. Some people think about high growth and some people consider about safety. So they invest their money accordingly. Bank deposit is more preferred by the people due to security purpose even though they get comparatively less interest on it.

Graph 4.4: Investment Preference

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From the above table it can be inferred that:

23 % of the 30 respondents preferred to make investments in the bank deposit.20 % of respondents preferred to make investments in insurance.

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TABLE NO 4.5insurance premium is paid monthly by the respondents.

Particulars No Of Respondents Percentage (%)

Less than 1,000 06 20

1,000 – 2,000 07 23

2,000 – 3,000 12 40

3,000 – 4,000 04 14

More than 4,000 01 03

Total 30 100

Analysis

Here the people who are paying premiums Rs 2000 to 3000 are more in numbers. People pay the premiums from their savings so they decide the premium according to their savings. People have other commitments also so they plan their premium payment by considering all the expenses.

Graph 4.5: Approximate monthly insurance premium

From the above table it can be inferred that:

23% of the respondents pay a monthly premium of 1,000 – 2,000.40% of the respondents pay a monthly premium of 2,000 – 3,000.

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03% of the respondents pay a monthly premium of more than 4,000. 4.5 SUMMARY OF FINDINGS

LIC is the clear market leader .HDFC Standard Life Insurance can excuse itself that people in the age of more than 55 years category could not use its policies, because HDFC Standard Life Insurance was not around when these people made their life insurance choices. But at some extent HDFC is able to intervene in the market of LIC due to varieties of ULIP plans, its good service, and high return on investments.

1. ULIP plans are more preferred by customers than the traditional plan due to the following reasons:

Flexibility in investment- traditional plans have to invest at least 85% in debt instruments which results in low returns. On the other hand, Ulips invest in market linked instruments with varying debt and equity proportions and if customer wishes, he can even choose 100% equity option.Greater transparency-: Unlike Ulips, in traditional life insurance policy customers are not aware of how your money is invested, where it is invested and what the value of his investment is.

Potential for better returns- The top most advantage which Ulips offer over traditional plans is the flexibility offered to customers to customize the product according to their needs.

2. Customers knows that traditional plans are with less risk and less growth and ULIP plans are with high risk high growth.

3. Customers have good knowledge about the investment of their money by the insurer in different plans. They know that their money is used as dept in traditional plan where as there are so many option of investing money in ULIP plan like in high growth and low growth fund.

4. Potential for HDFC Standard Life Insurance exists in the category of respondents aged between 25 years – 45 years old, as awareness of life insurance is gaining ground here and tomorrow respondents from

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here will be growing upwardly and will invest larger amount in life insurance.

5. 9 respondents have a monthly savings of less than 2000, 8 respondents have a monthly saving of around 2,000 – 4,000, 6 respondents have a monthly saving of 4,000 – 6,000 and only a few respondents have monthly savings of around 6,000 – 8,000 and more than 8,000.

6. It is inferred from the study that 9 respondents make the savings for the purpose of education, 6 respondents make the savings for the purpose of medical expenses, 8 respondents make the savings to buy house or site and few respondents make savings for buy durable, to buy jewelleries and some other purpose also.

7. From the study it is found that. 7 of the respondents prefer bank deposits for investment purpose, 6 prefer insurance, 4 prefer shares and 4 prefer real estate. So there is a more scope for the insurance sector and people feel it is secured and profitable made of investment.

8. In an absurd contrast to the information and awareness of life insurance among the younger earning generation, respondents seem careless to take up insurance. HDFC Standard Life Insurance can take up the initiative to create awareness of its insurance policies right form college level by conducting workshop there.

9. Most of the people takes the insurance policy to save their taxes, few customers takes the policy for future security, children education and other purposes.

10. From the study, it is clear that HDFC is approaching the customers by various ways and agents are playing their role very efficiently.

11. Now the days customer are well aware so they have proper knowledge of the differences between traditional and ULIP plans.

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12. Among 30 HDFC policy holders 9 have traditional policies, 14 respondents have ULIP policies and 3 have other plans like health insurance.

13. For traditional plans LIC is more preferred where as other private companies have around equal preferences for it.

14. For ULIP plans HDFC is more preferred due to variety of ULIP products in its basket.

15. Most of the customers have good knowledge of different plans only few don’t have proper knowledge which can be overcome by better consultation to the customers through insurance agents.

CHAPTER - 5

RECOMMENDATION AND SUGGESTIONS

1. Many respondents in their answers to why they did not take HDFC Standard Life Insurance policies said that HDFC Standard Life Insurance being a private insurer its reliability and long term existence is a big questions mark. This myth must be broken through an Ad – campaign through radio, TV, print and internet that tells that HDFC is nothing but the Industrial Credit and Investment Corporation of India. Which was set up as a public linked company on January 5, 1955 by the government? Hence it has existed for more than half a century and has gone from strength. So why not even in the future? It can even exist for a longer time with tremendous reserves and valuable experience in the financial sector.

2. ULIP plan is starting from the yearly premium of Rs 15,000 and if the premium is paid half yearly then it is Rs 8,ooo, monthly Rs 2000. So they are not able to catch lower middle class. HDFC Standard Life insurance should also cater to the lower middle class.

3. HDFC Standard Life Insurance should give information and data related to potential customers.

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4. According to Abraham Maslow’s hierarchy of needs, the second step to self actualization is the fulfillment of the safety needs. Though people feel the needs for security a large number live in an ivory tower obvious to the uncertainties life could throw up to the distant future. They procrastinate to take decisions regarding these aspects. It is this dormant aspect that HDFC Standard Life Insurance should awaken in the people and bring about restlessness and unfulfilled feeling regarding their personal and families security. The next choice then would be insurance. This could be brought about by an innovative campaign slogan saying “The decision is now.”

5. HDFC Standard Life Insurance must not to get people when start earning but much before that. To gain the early bird advantage they must organize sessions in schools and college giving explanations on life insurance in general and HDFC Standard Life Insurance in particular. This will make the younger generation more responsible making them go in for insurance in a big way at the earliest thus making HDFC Standard Life Insurance the ultimate beneficiary to enjoy the income from customers from the very beginning of their services lives. It can also bring about a stronger brand commitment in this manner.

6. HDFC Standard Life Insurance should consol try to change the mindset of the people from investing in life insurance for the sake of tax exemption to that of worry exemption. India will move into that mode in the future in its journey to being a developed country as is exemplified by the fact that in developed countries insurance policies are bought whether developing countries it is sold.

7. Use data warehousing management and mining to gauge the profitability and potential of various customer and product segment and ensure effective cross selling and understanding the customer better will allow insurance companies to assign appropriate products, determining pricing correctly and increase profitability.

8. Ensure high level training and development not just for staff but for agents and distribution of organizations. Existing organizations will have to train staff for better service and flexibility. While all

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companies will have to train employees to cope with new products and an intensive use of information technology.

CONCLUSION

Since the opening up of the insurance sector in 1994, 20 private insurers are in the fray. Each one is trying to garner more market share than the other. Among all the players HDFC Standard Life Insurance with the advantage of being the earliest to operate in the liberalized insurance market concerned 3,80,000 policies as on March 2008.

Yet the survey has exposed how HDFC Standard Life Insurance is far behind LIC. HDFC Standard Life Insurance must also be alert of private insurance companies like Birla Sunlife, Metlife, ING Vysya….

HDFC have variety of ULIP plans for different age groups. Youngstar is for the people of age group around 30, endowment for the age group of 30 to 45 and pension plans for the age group of more than 45. Each ULIP plan have its own specification and the fund management is done very

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efficiently in HDFC so the people are getting return of more than 20% yearly. Due to the high return in ULIP plans customers are attracted towards HDFC.

I am sure the company will benefits from my findings and I sincerely hope it use my suggestions enlisted, when I hope will take them miles ahead of competition.

In short, I would like to say that the very act of the concerned management at HDFC Standard Life Insurance in giving me the job of critically examining consumer behavior towards financial products of the company is a steep in their continual mission of making all round improvement as a means of progress.

I am sure that the company has a very bright future to look forward and will be a trailblazer in its own right.

ANNEXURE AND APPENDICES

Questionnaire

I am pleased to introduce myself, Manish Chandra, 4th semester MBA (MKU) student studying in Presidency Business School. As my project titled is “ A STUDY OF HDFC STANDARD LIFE IN SAGAR CITY I request you to spare your precious time and check this questionnaire. Feedback will be of immense benefit to me in successful completion of this project. This information will be used only for academic purpose. Kindly co – operate.

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1. Name ................................................................................

2. Age …………………………………………………………

3. Gender Male Female

4. Marital Status Married Unmarried

5. Address ………………………………………………………...………………………………………………………...

6. Telephone No. ………………………………………………………...

7. E-mail ID ………………………………………………………...

8. Qualification Graduate Post Graduate

Others

9. Occupation Employed Retired

Business Others

Part B

1. Monthly Income 10,000 – 20,000 20,000 – 30,000

30,000 – 40,000 More than 40,000

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2. Approximate monthly savingsLess than 2,000 2,000 – 4,000

4,000 – 6,000 6,000 – 8,000

More than 8,000

3. Purpose of savings Medical expenses To buy durables

To buy jewelleries To buy house

Education Others

4. Where do you invest your savingsBank deposit Insurance

Share Debentures Real Estate

Others

5. Approximately how much do you pay towards the insurance premium monthly?

Less than 1,000 1,000 – 2,000

2,000 – 3,000 3,000 – 4,000

More than 4,000 6. Purpose for which you taken this policy?

Tax purpose Future security

Children’s education

MarriageOthers

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7.Who pays the premium Self Employer

Spouse Others

8. Whose life is insured as per policy taken

Parents Children

Self Spouse

9. What is your level of information about the products of HDFC Standard Life Insurance?

Good Moderate

Poor

10. Has any HDFC Standard Life Insurance advisor visited you?Yes No

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Bibliography

Journals and Catalogs

1. User manual of trading in Product Hand Book published by HDFC Standard Life Insurance.

2. Catalogs describing the features of HDFC Standard Life Insurance.

Web sites

1. www.hdfcindia.com2. www.hdfcinsurance.com3. www.bimaonline.com

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