A Summer Internship Project Report On

APROJECT REPORT ON

CONSUMR PERCEPTAION AND SATISFACTION TOWARDS

UNIT LINK INSURANCE PLANS OF HDFC STANDARD LIFE

INSURANCEPartial fulfillment of the requirements of the two-year full time course in Master of Business Administration

Submitted By: Submitted To:

Anurag VyasMBA Part-IIRoshita Jain

H.O.D (M.B.A)

DECLARATIONI here by declare that the work incorporated in the present research consumer perception and satisfaction towards Unit Link INSURANCE Plans of hdfc standard life is my own work and is original.This work (in part or in full) has not been submitted to any university for the award of a degree or diploma

Anurag VyasACKNOWLEDGEMENT

I acknowledge my gratitude with sense of reverence to the people who have whole-heartedly helped in the course of the project. Their valuable guidance and wise direction have enabled me to complete this project in systematic and smooth manner.

I am indebted to Mr. Atul Menaria (Sales Manager), for giving me this opportunity to learn with this esteemed organization. I would also like to thank my mentor at the organization.Mr.Praveen Jha (Branch manager) For providing me valuable insights towards functioning of the entire project work and his indefatigable cooperation at every possible step of my endeavor.

I take this opportunity to thank the entire staff of HDFC Std. Life Insurance company, Udaipur for their continuous support and encouragement to make this project a success.

Last but not the least, I express my sincere thanks to all those people, known and unknown, who have directly or indirectly contributed in making this project a success.Anurag Vyas

PREFACE

The objective behind MBA programme is to provide the practical aspect of organizations working & environment. This study helps to visualize & realize about the congruency between the theoretical learning in the premises of college & the actual practices of management & working behind followed in the organization

My project at insurance sector in HDFC STANDARD LIFE INSURANCE is a complete experience in itself, which has provided me with understanding, which has become an inseparable part of my knowledge of management being learned in MBA programme.

This research and development project is concerned with Critical Evaluation of how unit linked insurance plans works, study of different ulip monitors, finding satisfaction level of customers and fund performance of HDFCSL. The work done by me on the topic, finding drawn out are presented in this project report along with suggestion for improvement.

CONTENTS.NO.CONTENT PAGE NO.

1Declaration2

2Acknowledgement3

3Preface4

4Executive Summary6-10

5Industry Profile11-13

6Major player in india14-21

7Company Profile22-26

8Glossary27-37

9Product Profile38-50

10Research Methodology51-53

11Research Objective54

12Data Analysis and Interpretations55-66

13Conclusion67

14suggestion68

15Bibliography69

16Abbreviations70

Executive SummaryINSURANCE - AN INTRODUCTIONInsurance is a contract between two parties i.e. insurance & insured about a probable loss in exchange of a certain amount i.e. premium. If that event will occur then, insurer will protect him against that loss in monetary terms as shown in Diagram 2.1

Premium

ProtectionRemunerationYesNo

Diagram 2.1

Insurance may be described in broad sense, as a method of sharing financial losses of a 'few' from a common fund formed out of contribution of the many who are equally exposed to the same loss, it is a systematic spreading the losses of an individual over a group of individuals.

Meaning Of InsuranceInsurance is a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all parties participating in the scheme.

Definition Of Some Important TermsINSURED-Insured is a person who seeks protection against a risk.

INSURER-Insurer is a person who provides protection to the insured.

PREMIUM-The consideration that insured pay to insurer is called premium.

INSURANCE POLICY-The document containing terms and conditions of contract are called policy.

How Insurance WorksPeople facing common risks come together and make their small contributions to a common fund. The contribution to be made by each person is determined on the assumption that while it may not be possible to tell beforehand, which person will suffer, it is possible to tell, on the basis of past experiences, how many persons, on an average may suffer losses.

INSURANCE OVERVIEWSize

US$30 billion industry in India

Life Insurance - US$25 billion industry with US$14 billion accounting for First Year Premium (inclusive of Single Premium)

Non-Life insurance - US$4.8 billion industry; Motor and Health segments account for 54% of total business

Structure

Indian Insurance market was opened to private & foreign investment in 1999-2000

The Indian Insurance industry consists of a total of 31 players

Life: 1 Public sector player; 15 private players

Non-Life: 6 public sector players; 9 private players

Major international players like AIG, Aviva, MetLife, New York Life, Prudential, Allianz, Sun Life, Standard Life and Lombard are already present with minority stakes in joint ventures with Indian companies for both Life and Non-life segments

Life Insurance market is still dominated by Life Insurance Corporation (LIC) - a public sector company which has 75% share of first year premium in 2006-07

In Non-life, private sector companies (almost all are joint ventures with foreign insurers) accounted for 34% of the market in 2006-07Life Insurance: Major PlayersFirst year Premium(2006-07, US$ million)

Public Sector

LIC13642

Private Sector

ICICI Prudential1281

Bajaj Allianz1041

Birla Sun Life214

Non-life Insurance: Major PlayersName of CompanyFirst year Premium(2006-07, US$ million)

Public Sector

New India Assurance1222

National Insurance9229

Oriental Insurance960

United India Insurance855

Private Sector

ICICI Lombard732

OpportunityMany international playersNon-life penetration is low in IndiaHave entered the Indiana potential growth area of theInsurance marketfuture

Outlook

Indian Insurance market is expected to be around US$40 billion by 2010

Expected CAGR of over 30% p.a.

Potential

Largely untapped market: 17% of the worlds population

Nearly 80% of the Indian population is without Life, Health and Non-life insurance

Life insurance penetration is low at 4.1% in 2006-07

INSURANCE SECTOR IN INDIAA brief history of the Insurance sectorThe business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

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.

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.

Insurance companies must be encouraged to set up unit linked pension plans.

Computerisation 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.

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. C6005tteproposed setting up an independent regulatory body.

Major Policy Changes

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector.BRIEF INTRODUCTION OF MAJOR PLIAYER OF INSURANCE COMPANIES IN INDIA1. LIFE INSURANCE CORPORATIONLife Insurance Corporation (LIC) came into existence on 1st September 1956 through the amalgamation of 154 Indian insurance companies, 16 non-Indian companies and 75 provident. The amalgamation was achieved with the help of Life Insurance Act passed by the Parliament in the same year. The LIC was created with the goal of reaching all the insurable people in the country and providing them financial coverage at a reasonable price.

At present, online premium collection facility is being offered in selected cities as LIC has tied up with some banks and service providers. For providing customer satisfaction the organization has introduced various schemes such as ECS, ATM premium payment facility, IVRS, Info centers which are set up in various cities including Mumbai, Bangalore, Chennai, Kolkata, New Delhi, Pune and many more. It has also come up with SATELLITE SAMPARK offices providing easy access to policyholders. LIC has crossed many milestones and set standards for itself fostering unmatched performance

2. ICICI Prudential Life Insurance CompanyICICI Prudential is a joint venture between ICICI bank and Prudential plc, both having strong operations in their respective countries. ICICI bank is one of the leading banks in India providing quality financial services and Prudential is an international financial service provider headquartered at United Kingdom. ICICI and Prudential have respective shares of 74% and 26%. The Company started operating in December 2000. Currently, total capital with the company is Rs. 18.15 billion.

ICICI Prudential was the first insurance company in India to receive a National Insurer Financial Strength rating of AAA (Ind.) from Fitch ratings. It has been given the honour of being among the Most Trusted Brands in the industry by Economic Times for 3 consecutive years. It has a network of 450 branches, over 1,50,000 insurance advisors and 18 banc assurance partners.

3. Birla Sun Life Insurance Company LimitedBirla Sun Life Insurance Company Limited (BSLI) is a joint venture between Aditya Birla Group and Sun Life Financial Inc. BSLI started functioning in March 2001 after getting the certificate of registration from IRDA.

Birla Sun Life Insurance Company Limited introduced unit Linked Life Insurance Solutions in India. Within a short span of time it was able to establish itself as a leading player in the Private Life Insurance Industry . The company shows corporate governance and a high degree of transparency in all business practices. It has professional knowledge and global expertise of Aditya Birla Group.

4. HDFC Standard Life Insurance Company LimitedHDFC Standard Life Insurance Company Limited is one of the first companies to be licensed by IRDA to operate in the Insurance sector. The company came into existence on 14th August 2000. It is one of the most trusted companies; it is easily accessible and approachable, offering value services to its customers.

The company aims to provide:

Innovative products to cater to different needs of different customers

Customer service of the highest order

Use of technology to improve service standards

Value for money for customers increasing market share

5.Max New York Life Insurance CompanyMax New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multi-business corporations. The company has positioned itself on the quality platform. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business.

It now has 38 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 4 riders in group insurance business. The company currently has more than 7500 employees6. SBI Life Insurance CompanySBI Life Insurance is a joint venture between the State Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%.

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBIs access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true financial inclusion.

Agency Channel, comprising of the most productive force of more than 40,000 Insurance Advisors, offers door to door insurance solutions to customers.7. TATA AIG Life Insurance CompanyTata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Groups pre-eminent leadership position in India and AIGs global presence as the worlds leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals and corporates. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.

8. AVIVA Life Insurance CompanyAviva is UKs largest and the worldsfifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. In India, Aviva has a long history dating back to 1834. At the time of nationalization it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. Aviva was also the first foreign insurance company in India to set up its representative office in 1995.

In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products.

With a strong sales force of over30,000 Financial Planning Advisers (FPAs), Aviva has initiated an innovative and differentiated sales approach to the business. Through the Financial Health Check (FHC) Avivas sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them.

Aviva pioneered the concept of Bank assurance in India, and has leveraged its global expertise in Bank assurance successfully in India. Currently, Aviva has Bank assurance tie-ups with ABN Amro Bank, American Express Bank,IndusInd Bank,Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank,Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradeshand Maharashtra andregional Banks.

9- BAJAJ ALLIANZ Life Insuranceis a Union between Allianz SE, one of the worlds largest Life Insurance companies and Bajaj Auto, one of the biggest 2- &- 3 wheeler manufacturers in the world.Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion Euros (Over R. 55,00,000 crores). Allianz SE has over 115 years of financial experience in over 70 countries.

Future Generali is an insurance joint venture headquartered in Mumbai, India between the Italy-based Generali Group and the India-based Future Group. Future Generali operates Life and Non-Life insurance businesses through Future Generali India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd.

The Future Group is a diversified conglomerate with presence in multiple consumer-centric businesses like retail, consumer finance, capital, insurance, media, brands and logistics. The groups flagship enterprise, Pantaloon Retail (India) Limited, Indias leading organized retailer, owns and manages multiple retail formats including Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, among others. With its width and depth of merchandise, it captures almost the entire consumption basket of the Indian consumer. Headquartered in Mumbai, the company operates over 5 million square feet of retail space, has more than 450 stores in different formats across 40 cities in India and employs over 18,000 employees.

Future Groups vision is to deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. One of the core values at the Future Group is Indian-ness and its corporate credo is Rewrite rules, Retain values.

11. IDBI Fortis Life Insurance Co Ltd,

IDBI Fortis Life Insurance Co Ltd, is a joint venture between three leading financial conglomerates Indias premier development and commercial bank, IDBI Bank, one of Indias leading private sector banks, Federal Bank and Europes banking and insurance giant, Fortis, each of which enjoys a significant status in their respective business segments. In this venture, IDBI Bank owns 48% equity while Federal Bank and Fortis own 26% equity each.

IDBI Ltd. continues to be, since its inception, Indias premier industrial development bank. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI has been instrumental in sponsoring the development of key institutions involved in Indias financial sector such as the Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd.

Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias leading business groups with interests in telecom, agri business and retail, and AXA, world leader in financial protection and wealth management.

As we expand our presence across the country to cater to your insurance and wealth management needs with our product and service offerings, we continue to bring 'life confidence' to customers spread across India. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them.

HSBC's origins in India date back to 1853, when the Mercantile Bank of India was established in Mumbai. The Bank has since, steadily grown in reach and service offerings, keeping pace with the evolving banking and financial needs of its customers.

In India, the Bank offers a comprehensive suite of world-class products and services to its corporate and commercial banking clients as also to a fast growing personal banking customer base.Insurance

HSBC Insurance Brokers (India) Private Limited is licensed by the Insurance Regulatory Development Authority (IRDA) to operate as a composite insurance broking company, which will function as a direct and a reinsurance broke.

INDUSTRY STATISTICS

For the period April'2007 to January 2008, the Indian Life Insurance Industry recorded a growth of around 32% in terms of weighted new premium income over the same period last year, with private sector players registering a growth in excess of 94%.

COMPANYApril-Jan 2008April-Jan 2009

ICICI PRU.3000050000

BAJAJ ALL.1800040000

HDFC SLI1000018000

RELIANCE1000015000

MAX NEW YORK500011000

AVIVA50006000

INGVYSHA40005000

TATA ING30004000

SAHARA20003000

The graph given above shows the weighted new premium income written by private sector life insurers for the ten month period to January 2008, as per the statistics released by the IRDA. In this period, the life insurance industry (including the Life Insurance Corporation of India LIC) collected a weighted new premium income of approx. Rs 399 billion. The new business market share of private sector life insurers increased to 49% in this period, up from 33% in the first ten months of FY2006-07.ICICI Prudential remained the top-ranking private life insurer, with a market share of around 13% in terms of weighted new premium income, followed by Bajaj Allianz Life, with a market share of around 10% and SBI Life at 4.7%.

COMPANY PROFILE

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

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

HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer

The Banc assurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda, Saraswat Bank and Bajaj Capital.

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.

Track of records

Gross premium income, for the year ending March 31, 2007 stood at Rs. 2, 856 crores and new business premium income at Rs. 1,624 crores. The company has covered over 8, 77,000 lives year ending March 31, 2007AWARDS AND ACCOLADES

1. March, 2008

Unit Linked Savings Plan Tops Mint Best TV Ads Survey2. February, 2008

Deepak M Satwalekar Awarded QIMPRO Gold3. January, 2008 Sar Utha Ke Jiyo Among Indias 60 Glorious Advertising4. December, 2007

Pension Plan Tops Mints Survey of Best TV Ads5. September, 2007

Ranked Sixth Most Effective Advertisement6.April ,2007

Received 3 awards at adfest 2007

7.March,2007

Selected as 4 Ps power brand

8.January,2007

Ranked as 29th most trusted Indian brand

VISION STATEMENTOur Vision'The most successful and admired life Insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'.Values

Values that we observe while we work:

Integrity

Innovation

Customer centric

People Care One for all and all for one

Team work

Joy and SimplicityGROUP COMPANIESHDFC

HDFC SECURITIES

HDFC BANK

HDFC MUTUAL FUNDS

HDFC REALTY.COM

INTELNETCIBIL

HDFC GENERAL INSURANCE COMPANY LIMITED

SOME OF VALUED BANC ASSURANCE PARTNERSHOUSING DEVELOPMENT AND FINANCE CORPORATION

HDFC - History

HDFC Bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. The Bank commenced operations as a Scheduled Commercial Bank in January 1995. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.

HDFC Mission

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". They realized that only a single-minded focus on product quality and service excellence would help them get there. Today, HDFC is proud to say that they are well on their way towards that goal. It is extremely gratifying that HDFC efforts towards providing customer convenience have been appreciated both nationally and internationally.

HDFC Vision

The companys vision is to create a niche in housing finance and emerge as the market leader in todays competitive world.

STANDARD LIFE INSURANCE

The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries.

Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largely remained the structure of the group until 1996, when it opened a branch in Frankfurt, Germany with the aim of exporting its UK life assurance and pensions operating model to capitalise on the opportunities presented by EC Directive 92/96/EEC (the Third Life Directive) and offer a product range in that market with features which local providers were unable to offer.

Standard Life Asia Limited/Joint ventures

The groups Hong Kong subsidiary, Standard Life Asia Limited (SL Asia), was incorporated in 1999 as a joint venture and became a wholly-owned subsidiary of Standard Life in 2002. The groups operations in Hong Kong were established to give the group a presence in the Far East from which it could expand into China. The groups joint ventures in India with Housing Development Finance Corporation Limited (HDFC) were incorporated in 2000 (in relation to the life assurance and pensions joint venture) and 2003 (in relation to the investment management joint venture). The groups joint venture in China with Tianjin Economic Development Area General Company (TEDA) became operational in 2003

Overall corporate purpose

Why we exist;

Our corporate purpose is to generate sustainable, high-quality returns for our shareholders.

GLOSSARY Accident BenefitAn add-on with a life policy. It compensates a policyholder in the event of death or injury by accident

AnnuityAn investment option that makes a series of regular payments to an individual in exchange for a premium or a series of premia.

AppreciateTo grow in value

AssetEverything owned or due to a person

Asset allocationHow your investments are spread across various asset classes

BondIt is like an IOU. By buying a bond you loan money to a company, a municipality, state or the Central Governmenty

BonusarThe amount paid as return in a with-profit policy. The bonus, expressed as a percentage of the sum assured, is generally declared every year. The amount is linked to the profits earned by the insurer. Depending on the time of withdrawal, there are two kinds of bonuses reversionary and cash. A reversionary bonus can be encashed only on maturity of the policy; a cash bonus can be withdrawn when declared

BudgetIt is a tool used to monitor and control expenditures and purchases.

Capital gainsProfit earned from the sale of stocks, mutual fund units and real estate. Long-term capital gains arise from assets owned for more than a year while short-term capital gains are made from assets owned for less than a year.

Compound InterestInterest computed on principal plus interest accrued during the previous periods of the investment

CorpusThe amount of money available with a scheme for investing. If already invested, the corpus is the current value of the schemes portfolio.

Cost averagingA strategy that involves investing a fixed amount of money in an asset class like equity, so that the average cost of acquiring the asset in the long-term is much lower than that in the short-term.

CoverAnother word for insurance; it also refers to the amount of insurance.

Critical illness riderA rider that provides a policyholder financial protection in the event of a critical illness

Death benefitThe amount payable to the nominee on death of the policyholder. The amount paid is the sum assured plus benefits applicable (if any) less outstanding loans.

Declining term coverA type of pure life protection insurance policy where the premia remain the same while the life coverage keeps declining. They are typically used to cover the life of a person with a pending loan repayment, like home loan.

Deferred annuityAn annuity plan where the first annuity payment becomes payable after a chosen period that exceeds one year.

Discretionary expensesThese are expenses like entertainment, dining out and non-compulsory travel that you can reduce at will.

Disability / dismemberment benefit riderA rider that provides for additional cover in the event of disability, or dismemberment, of the policy holder due to an accident

DividendsPayments made by companies and mutual funds to shareholders and unit-holders, respectively, from the income generated by it.

Down paymentThe money that a home buyer has to contribute, often at least 15 per cent of the value of the house, when he is taking a home loan.

Dividend yieldThe percentage of dividend paid on a share to the value of the share.

Emergency fundThe money, in the form of liquid investments in bank savings accounts, two-in-one accounts and liquid funds, you need, to take care of emergencies like a job loss that your insurance policies wouldnt cover

Endowment plansAn insurance plan that provides a policyholder risk cover and some return on investment. Usually suitable for the risk-averse

Effective rate of interestThe true rate as against the nominal rate, which may be incorrect.

EstateAll assets of a person, both financial-like stocks, bonds, mutual funds and fixed deposits and physical-like a house and gold that can be passed on to his heirs.

Estate planningA financial plan to ensure the transfer of all your assets-both financial, such as fixed deposits and stocks and physical, such as home, after your death to your heirs without any delay or loss.

ExclusionsRisks and circumstances not covered by a policy. No claim will be entertained in case of losses arising out of such situations

ELSS (equity-linked savings schemes)Diversified equity funds that additionally offer a tax deduction under Section 80C on investments up to Rs.1 lakh.

EMI (equated monthly installment)A borrower must make this payment each month towards repayment of interest and principal of a loan taken by him.

EquityThe actual ownership interest in a specific asset or group of assets

Financial planningIt covers the essential elements of a persons financial affairs and is aimed at achieving a persons financial goals.

Fixed depositFunds placed on deposit in a bank, company or post office at a fixed rate of interest.

Fixed-income investmentAny investment that provides a stated percentage of value, say 6 per cent, on the invested amount.

Fixed rate loanInterest rate charged on a loan that remains fixed during the tenure of the loan

Floating rate loanInterest rate charged on a loan benchmarked to a particular lending rate. The rate gets adjusted during the tenure of the loan as the benchmark interest rate changes.

Group InsuranceAn insurance policy taken out by employers to provide life cover to their employees. Usually the cheapest form of insurance.

Guaranteed additionsThe amount paid as returns in assured-return insurance plans. Guaranteed additions are expressed as a percentage of the sum assured, with the amount payable being stated by the insurer at the outset.

Hospital cash benefit riderA rider that provides cover for hospitalization

Immediate annuityAn annuity that starts payments immediately after, or soon after, the first premium is paid

Index fundA scheme whose portfolio mirrors the progress of a particular index, both in terms of composition and individual stock weight ages. Its a passive investment option, as a funds performance will mimic the index concerned, barring a minor tracking error.

InsuredThe policyholder

InsurerThe insurance company

InvestmentsAssets like fixed deposits, post office savings, bonds and stocks that are acquired for the purpose of earning a return

Investment risksThe risks that your investments face. These include the risk of interest rate fluctuations impacting your debt investments or the prices of equities going down.

Level term cover riderA rider that increases the life cover in non-term plans, up to a maximum of the sum assured on the base policy. The rider offers death benefit along, and serves the need for extra protection for a specified time period.

LiabilitiesMonies owed, debt and other financial obligations of a person

Life annuityAn annuity that makes regular income payments till the policyholder is alive. On the policyholders death, all income payments cease and there are no beneficiary benefits.

LiquidityThe quality of assets that can be easily and quickly converted into cash without any, or significant, loss in value.

Loyalty additionsAdditional benefits (other than guaranteed additions/bonus) paid to policyholders on maturity of certain investment-based insurance plans for staying on through its term. Loyalty additions are paid as a percentage of the sum assured, with the amount depending on the insurers financial performance.

Lock-in periodThe period of time for which investments made in an investment option cannot be withdrawn.

Marginal tax rateThe highest tax rate applicable to a person for paying income tax.

Market valueThe monetary value an asset will fetch if sold in the market today.

Maturity dateThe date on which a policy term or fixed-income investment like fixed deposit or bond comes to an end.

Money-back plansA variant of endowment plans in which survival benefits are disbursed through the policy term, rather than in a lump sum at the end.

Net asset value (NAV)The simplest measure of how a scheme is performing, it tells how much each unit of it is worth at any point in time. A schemes NAV is its net assets (the market value of the financial securities it owns minus whatever it owes) divided by the number of units it has issued.

NomineeThe person(s) nominated by the policyholder to receive the policy benefits in the event of his death.

Participative plansSee with-profit policy

Pension PlanInvestment products offered by insurance companies and mutual funds that required the investor to make defined contributions over regular periods, mostly every year. The contributions are invested according to a pre-decided investment plan. At retirement, the accumulation is paid out through regular pay-out options.

Periodic payment investmentsInvestment options that have payouts in fixed intervals. For example, money-back life insurance policies.

Permanent partial disabilityPermanent loss of any body part, one eye, one limb or one finger or a toe, or injuries that render the insured in capable of earning an income from the date of the accident onwards from any work, occupation or profession. While the loss of the body part may be permanent , its effects on the insureds life are partial.

Permanent total disabilityPermanent loss of use of any two limbs, or permanent and complete loss of sight in both eyes or any other injury that renders the insured incapable of earning an income. Cover this risk to secure your wealth.

PolicyThe legal document issued by an insurance company to a policyholder that states the terms and conditions of an insurance contract.

PolicyholderThe person who buys an insurance policy. Also referred to as the insured.

Policy termThe period for which an insurance policy provides cover

Post office schemesAlso known as Small Savings schemes, they are offered at post offices and carry the highest returns among fixed income instruments. Government backing makes these instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Post Office Monthly Income Scheme (POMIS) risk-free

Pre-paymentPartial or full repayment of the loan before the end of the tenure.

PremiumThe amount paid by the insured to the insurer to buy cover

Recurring depositThis is offered both in post office and banks where you are required to contribute a fixed amount ever month. It is a great tool for making small and regular savings.

RestThe frequency at which interest is calculated on the outstanding loan balance. The more regularly the interest is calculated on the outstanding loan amount, the lesser the interest costs and cheaper the loan. For example, monthly rests would make a loan with the same rate cheaper than a quarterly rest.

Revolving creditA pre-established credit line, typically in a credit card, against which a person may borrow to make purchases.

RidersAdditional covers that can be added to a life policy, for a cost

Small savingsSee post office schemes

Sum assuredThe amount of cover taken under a life insurance policy, it is the minimum amount that will be paid on death of the policyholder during the policy term.

Surrender valueThe amount payable by the insurer to the owner of an investment-based plan in case he opts to terminate the policy after three years (the mandatory lock-in period) but before its maturity date. The surrender value will be the premia paid till date minus surrender charges and any outstanding loans due.

Survival benefitsThe amount payable to a policyholder under an investment-based plan if he survives the policy term. Typically, it is the sum assured plus returns (guaranteed additions / bonus) accrued.

Temporary total disabilityAn injury that results from an accident and renders a person immobile or affects his earning capacity temporarily. For instance, a fracture in the arm or leg that keeps you from work: you may be mobile but the injury may prevent you from working.

Term plansA plan that provides life cover for a specified period of time, but no return on the premia paid

Terminal bonusA one-time bonus paid on maturity of a with-profit plan

Vesting datePRODUCT PORTFOLIO

At HDFC Standard Life, they offer a bouquet of insurance solutions to meet every need. They cater to both, individuals as well as to companies looking to provide benefits to their employees. They have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy.

For individuals, they have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. Customer can choose from a range of products to suit their life-stage and needs.

For organizations they have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans Apart from providing long term value to the employees help in enhancing goodwill of the company

The various products by HDFC Standard Life include:

INDIVIDUAL PRODUCTS

Protection Plans1. Term Assurance Plan

2. Loan Cover Term

3. Assurance Plan

Investment plan

1. Single Premium Whole Life Plan

Pension Plans

1. Personal pension plan

2. Unit liked pension plan

3. Unit linked pension plus

Saving Plans

1. Endowment assurance plan

2. Unit linked endowment plan

3. Unit linked endowment plus

4. Money back plan

5. Children plan

6. Unit linked youngster plan

7. Unit linked youngster plus

GROUP PRODUCTS

1. GROUP term insurance

2. Group variable term insurance

3. Group unit linked plan

OTHER PRODUCTS

1. Rural product

2. Social development insurance plan

3. Tax benefit schemesKey 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.

PROTECTION PLANS

As the name suggests this category of plan are designed to protect the income earning capacity of life assured. The present income of life assured therefore forms the basis of the insurance plan. A person with no income cannot be offered this plan. The premium collected under this category of plans is generally sufficient to cover the risk insured. There is no return of premium on the expiry of cover; however saving element can be built under the plan to return the saving amount at maturity. The plans do not share in the profits of the company and dont have any bonusesHDFC STANDARD LIFE has launched two products in this category they are:

1. TERM ASSURANCE PLAN

2. LOAN COVER TERM ASSUARANCE PLAN

INVESTMENT PLANS

The plans are designed to help the person reduce some of the risk of investments. All the investment risk cannot be reduced. What these plans try to do is to create a pool of investors so that they ca get the advantage of large funds, diversified investments, proffessinal management and better returns. Investment plans can be designed to protect the policyholder against the market fluctuations. However all the policyholder cannot be protected at the same time.

ONE OF THE objectives of the investment type of plans is to give a good return to the policyholder when risk covers integrated with the investment plans the cost of the risk covers reduce the returns to the policyholders. To avoid the risk cover costs the plan do not offer huge risk cover. So the policyholder has to pay a premium which is almost equal to sum assured.

Investment plans are single premium plans where the client has to pay the premium and wait for the investment to grow.

Investments

POLICYHOLDERwith profit fundsExpenses

PremiumInvestment returns

Sum assured + bonus

Death or maturity

The policyholder pays the premium, which is invested by the insurance company. The returns are distributed to the policy holder by means of bonus mechanism, which tries to achieve a smoothening of the returns. The SINGLE PREMIUM WHOLE OF LIFE PLAN of HDFCSL falls in this category of products.

PENSION PLANS

PENSION PLANS are designed to provide pension. With the interest rate fluctuating and the increase in longevity the interest in the pension products has been growing in the recent days. Life pension provides an income till death.

Pension plus helps the client to build the pension fund, which is earmarked to provide for the pension and pay the pension on the chosen retirement date

Pension plans can be further classified into 2 categories:

1. Deferred pension plan

2. Immediate pension plan

Investments

POLICYHOLDERwith profit fundsExpenses

PremiumInvestment returns

Sum assured + bonus

Used to purchase annuity

at the end of the term in

event of death premium

is returned with interest

The policyholder pays the premium, which is invested by the insurance company. The returns are distributed to the policy holder by means of bonus mechanism, which tries to achieve a smoothening of the returns. On the chosen date of retirement the fund is used to purchase an annuity.

HDFC STANDARD LIFE has launched two products in this category they are:

1. PERSONAL PENSION PLAN (with profits)

2. UNIT LINKED PENSION PLAN

3. UNIT LINKED PENSION PLUS

ABOVE PLANS CAN BE OFFERED AS A WITH PROFIT OR A UNIT LINKED PLAN.WITH PROFIT PLANS WORKS ON BONUS MECHANISM WHILE ULIPS DEPENDS ON MOVEMENTS OF THE UNIT PRICE.

SAVING PLANS

The saving plans are designed to help a person save for a long term event. Long term savings have inherent uncertainties. Besides long term savings instrument are not available in the market. The saving plans aim to provide a solution to the client in this area with the benefit of life insurance.

It is important to note that the insurance covered offered is on the savings while purchasing the plan that the policyholder has a saving target in mind. The plan aims to protect in this target in the event of death of the life assured.

The premium paid by the policyholder consists of the savings. The risk cover cost on the savings forms a very small portion of the premium this effectively means the premium paid by the policyholder would determine the maturity amount that the policyholder would ultimately get.

The policyholder pays the premium, which is invested by the insurance company. The returns are distributed to the policy holder by means of bonus mechanism, which tries to achieve a smoothening of the returns.

HDFCSL offers the following saving plans:

1. ENDOWMENT ASSURANCE PLAN (MONEY BACK)

Unit Linked Endowment

Unit Linked Endowment Plus

Unit Linked Endowment Plus II

2. MONEY BACK PLAN (MONEY BACK)

3. CHILDRENS PLAN (MONET BACK)

Unit Linked Young Star

Unit Linked Young Star Plus

Unit Linked Young Star Plus II.

4. UNIT LINKED ENDOWMENT PLAN

5. UNIT LINKED ENHANCED LIFE PROTECTION II,

ABOVE PLANS CAN BE OFFERED AS A WITH PROFIT OR A UNIT LINKED PLAN.WITH PROFIT PLANS WORKS ON BONUS MECHANISM WHILE ULIPS DEPENDS ON MOVEMENTS OF THE UNIT PRICE.

Unit linked Insurance plan

Most insurers in the year 2004 have started offering at least a few unit-linked plans. Unit-linked life insurance products are those where the benefits are expressed in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds.

The number of units that a customer would get would depend on the unit price when he pays his premium. The daily unit price is based on the market value of the underlying assets (equities, bonds, government securities, et cetera) and computed from the net asset value.

The advantage of unit-linked plans is that they are simple, clear, and easy to understand. Being transparent the policyholder gets the entire upside on the performance of his fund. Besides all the advantages they offer to the customers, unit-linked plans also lead to an efficient utilization of capital.

Unit-linked products are exempted from tax and they provide life insurance. Investors welcome these products as they provide capital appreciation even as the yields on government securities have fallen below 6 per cent, which has made the insurers slash payouts.

According to the IRDA, a company offeringunit-linked plans must give the investor an option to choose among debt, balanced and equity funds. If you opt for a unit-linked endowment policy, you can choose to invest your premiums in debt, balanced or equity plans.

If you choose equity, then a major portion of your premiums will be invested in the equity market. The plan you choose would depend on your risk profile and your investment need. If you choose a debt plan, the majority of your premiums will get invested in debt securities.

If one invests in aunit-linked pension plan early on, say when one is 25, one can afford to take the risk associated with equities, at least in the plan's initial stages. However, as one approaches retirement the quantum of returns should be subordinated to capital preservation. At this stage, investing in a plan that has an equity tilt may not be a good idea.

Unit linked guidelines were notified by IRDA on 21st December 2005. The main intent of the guidelines was to ensure that they lead to greater transparency and understanding of these products among the insured, especially since the investment risk is borne by the policyholder. It is the endeavor of IRDA to enable the buyer to make the most informed decision possible when planning for financial security

IN A UNIT LINKED POLICY, THE INVESTMENT RISK IS GENERALLY BORNE BY THE INVESTOR.The allocated (invested) portions of the premiums after deducting for all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders are pooled together to form a Unit fund.

The latest guidelines dictate that:

1. Term/TenureThe ULIP client must have the option to choose a term/tenure. If no term is defined, then the term will be defined as '70 minus the age of the client'. For example if the client is opting for ULIP at the age of 30 then the policy term would be 40 years. The ULIP must have a minimum tenure of 5 years.

2. Sum AssuredOn the same lines, now there is a sum assured that clients can associate with. The minimum sum assured is calculated as:

(Term/2 * Annual Premium) or (5 * Annual Premium) whichever is higher.

There is no clarity with regards to the maximum sum assured. The sum assured is treated as sacred under the new guidelines; it cannot be reduced at any point during the term of the policy except under certain conditions - like a partial withdrawal within two years of death or all partial withdrawals after 60 years of age. This way the client is at ease with regards to the sum assured at his disposal.

3. Premium paymentsIf less than first 3 years premiums are paid, the life cover will lapse and policy will be terminated by paying the surrender value. However, if at least first 3 years premiums have been paid, then the life cover would have to continue at the option of the client.

4. Surrender valueThe surrender value would be payable only after completion of 3 policy years.

5. Top-ups

Insurance companies can accept top-ups only if the client has paid regular premiums till date. If the top-up amount exceeds 25% of total basic regular premiums paid till date, then the client has to be given a certain percentage of sum assured on the excess amount. Top-ups have a lock-in of 3 years (unless the top-up is made in the last 3 years of the policy).

The client must necessarily sign on the sales benefit illustrations. These illustrations are shown to the client by the agent to give him an idea about the returns on his policy. Agents are bound by guidelines to show illustrations based on an optimistic estimate of 10% and a conservative estimate of 6%. Now clients will have to sign on these illustrations, because agents were violating these guidelines and projecting higher returns.Steps to selecting the right ULIPHere's a 5-step investment strategy that will guide investors in the selection process and enable them to choose the right Unit-Linked

Insurance Plans (ULIPs).

But before we get there, let's understand what ULIPs are all about?

For the generation of insurance seekers who thrived on insurance policies with assured returns issued by a single public sector enterprise, unit-linked insurance plans are a revelation.

Perhaps insurance policies then were symbolic of the times when high interest rates and the absence of a rational risk-return trade-off were the norms.

The subsequent softening of interest rates introduced a degree a much-needed rationality to insurance products like endowment plans; attractive returns at low risk became a thing of the past. The same period also coincided with an upturn in equity markets and the emergence of a new breed of market-linked insurance products like ULIPs.

More importantly ULIPs (powered by the presence of a large number of variants) offer investors the opportunity to select a product which matches their risk profile; for example an individual with a high risk appetite can shun traditional endowment plans (which invest about 85% of their funds in the debt instruments) in favour of a ULIP which invests its entire corpus in equities.

In traditional insurance products, the sum assured is the corner stone; in ULIPs premium payments is the key component. ULIPs are remarkably alike to mutual funds in terms of their structure and functioning; premium payments made are converted into units and a net asset value (NAV) is declared for the same.

Investors have the choice of enhancing their insurance cover, modifying premium payments and even opting for a distinct asset allocation than the one they originally opted for.

Also if an unforeseen eventuality were to occur, in case of traditional products, the sum assured is paid along with accumulated bonuses; conversely in ULIPs, the insured is paid either the sum assured or corpus amount whichever is higher.

How to select the right ULIPFor a product capable of adding significant value to investors' portfolios, ULIPs have far too many critics. We Personal have interacted with a number of investors who were very disillusioned with their ULIPs investments; often the disappointment stemmed from poor and inappropriate selection.

We present a 5-step investment strategy that will guide investors in the selection process and enable them to choose the right ULIP.

1. Understand the concept of ULIPsDo as much homework as possible before investing in an ULIP. This way you will be fully aware of what you are getting into and make an informed decision.

More importantly, it will ensure that you are not faced with any unpleasant surprises at a later stage. Investors on most occasions fail to realise what they are getting into and unscrupulous agents should get a lot of 'credit' for the same.

Gather information on ULIPs, the various options available and understand their working. Read ULIP-related information available on financial Web sites, newspapers and sales literature circulated by insurance companies.

2. focus on your need and risk profile

Identify a plan that is best suited for you (in terms of allocation of money between equity and debt instruments). Your risk appetite should be the deciding criterion in choosing the plan.As a result if you have a high risk appetite, then an aggressive investment option with a higher equity component is likely to be more suited. Similarly your existing investment portfolio and the equity-debt allocation therein also need to be given due importance before selecting a plan.

Opting for a plan that is lop-sided in favour of equities, only with the objective of clocking attractive returns can and does spell disaster in most cases.

3. Compare ULIP products from various insurance companies

Compare products offered by various insurance companies on parameters like expenses, premium payments and performance among others. For example, information on premium payments will help you get a better picture of the minimum outlay since ULIPs work on premium payments as opposed to sum assured in the case of conventional insurance products.

Compare the ULIPs' performance i.e. find out how the debt, equity and balanced schemes are performing; also study the portfolios of various plans. Expenses are a significant factor in ULIPs, hence an assessment on this parameter is warranted as well.

Enquire about the top-up facility offered by ULIPs i.e. additional lump sum investments which can be made to enhance the policy's savings portion. This option enables policyholders to increase the premium amounts, thereby providing presenting an opportunity to gainfully invest any surplus funds available.

Find out about the number of times you can make free switches (i.e. change the asset allocation of your ULIP account) from one investment plan to another. Some insurance companies offer multiple free switches every year while others do so only after the completion of a stipulated period.

4. Go for an experienced insurance advisorSelect an advisor who is not only conversant with the functioning of debt and equity markets, but also independent and unbiased. Ask for references of clients he has serviced earlier and cross-check his service standards.

When your agent recommends a ULIP from a given company, put forth some product-related questions to test him and also ask him why the products from other insurers should not be considered.

Insurance advice at all times must be unbiased and independent; also your agent must be willing to inform you about the pros and cons of buying a particular plan. His job should not be restricted to doing paper work like filling

RESEARCH METHODOLOGY

1) Define the research problem,

a)Improve existing services and satisfy customer expectation.

b)Find out the selling module which will help the company in its business.

2)Data collection approach,

This was carried out by internal data (Primary Data)

a)Collection of information from company,

b)Data provided by company,

c)Systematic collection of information direct from branch manager.

External data collection (secondary Data)

a)Internet

c)Newspapers3)Analytical Approach,Data analysis involve converting a series of recorded observation in descriptive statement with the help of,

a)Charts

b)Graphs

4)Coverage,

The area covered for the project was Udaipur,Rajasthan

5)Define population ,

a) Salaried employees

b) Self employe

c) Business professionals

6)Hypothesis

He present service and product offered by HDFC Std meet customer expectations.

Research Duration1st March. to 15thApril

Research AreaUdaipur city

Research DesignExploratory Research

Survey ApproachSample Survey

Sampling MethodN on-Probabilistic Sampling Method

Sampling UnitCorporate office

Contact MethodPersonal Interview/Telephonic Conversation

Research InstrumentQuestionnaire

Data SourcePrimary + Secondary Data

Sample Size160

RESEARCH OBJECTIVE

To study Consumer Perceptions or customers view points on product, service and other decisive attributes determining the choice of Insurance policy

To create Awareness in the market about the ULIPs

To find out ways that could help HDFC increase its existing market share for ULIPs

To find out new potential markets/untapped segment.

DATA COLLECTION & ANALYSISQ. Age of the person taking insurance policyat entry.

Table 1.1 Break-up of samples age

Below 2526-3536-4546-55Above 55

104380252

The maximum number of person taking insurance policy are in he age group of 36 45.

The next level is the age group of 26 35

The lowest level is the above 55

Q. Profession of the person paying premium.

Table 2.1 Break-up of samples Profession

Gove. EmployeePrivate EmployeeSelf EmployeeProfessional

5756389

All the most people from all profession go for insurance.

As by seeing the graph we can observe that professional(Teachers, Doctors) are

Q. Kind of ULIP policies have you subscribed

Table 3.1 Break-up of ULIP policies people subscribed to

HealthLifeEndowmentChildrens PlanLoan ProtectionRetirement Plan

4245242044054

Most of the people goes for Childrens Plan there for we can say that in this segment potential is more as compared to other.

So if we target more on this segment the success rate will be higher.

Q. Satisfaction level by the amount of charges in ULIP

Table 4.1 Satisfaction level by the amount of Premium

Fully SatisfiedSomewhat SatisfiedDissatisfiedExtremely Dissatisfied

7676521

Customers are not completely satisfied with the charges they are paying.

Segment which is displeased by the charges have a general argument to say that company charges more then what we know at the time of taking the policy.

Q. ULIP policies has your household subscribed

Table 5.1 Number of ULIP policies a household subscribed to

1234More then 4

344256217

Most of the people go for ULIP between 2 to 3 policies.

There is only 4% of people go beyond 4 ULIPs. Because only those people go for ULIP who have high disposable income .

Q. The cause behind purchasing ULIP

Table 6.1 Reason why people buy ULIP

Tax savingSecurityInvestmentPremium for initial 3 years

124536832

Most of the people goes for ULIPs for Tax saving

The next level of group goes for investment

Very less portion goes for security

Q. How you came to know about ULIP?

Table 7.1

Source of informationNo. of persons

Through relatives24

Through company representative77

Through advertisement48

Took initiative to know11

Graph 7.1

Most of the customers came to know about ULIP through company representative. It means company should focus on increasing the number of representatives.

ParticularYears

08-0907-0806-07

New BusinessPremium incomeRs.2,679.61 croresRs.1,624.23 croresRs. 1,026.18 crores

Cumulative Sum AssuredRs.87,439.41 crores

Rs.67,192.97 crores

Rs.47,730.40 crores

Portfolio19 retail and 6 group products,21 retail and 6 group products13 retail and 7 group products

Policies issuedOver 9,40,000Over 5,23,000Over3,97,000

Lives CoveredMore than 9,59,000More than 8,77,000More than 5,80,000

InvestmentsTotal assets under managementRs. 8,916 crores

Rs. 4,976 crores

Rs.2,363.37 crores.

CapitalEquity share capital

Rs. 801 crores to over

Rs. 1271 crores.Rs. 620 crores to overRs.801 crores.Rs. 320 crores to Rs. 620 crores.

Authorized capitalRs. 620 crores to Rs. 1500 crores.

SolvencyThe margin is maintained at least at 1.50 times the statutory required level.The margin is maintained at least at 1.50 times the statutory required level.The margin is maintained at least at 1.50 times the statutory required level.

Dividend000000

Interim Bonuses Paid580300417

Servicing the customer

Robust mechanism to capture theVoice of the Customer

Meeting Corporate Social Responsibility, company has entered into a partnership with a unique BPO service provider employing rural workforce.Electronic Clearing System.

Launch of My Account, which provides servicing options such as switch, premium redirection to be executed by clients, without recourse to visiting a branch.

Service Helpline, web portal, net banking, digital security systems.

Risk retained & Risk reinsured

ParticularsAs at 31 March 2009

Sum at risk (Rs 000)As at 31st March 2008

Sum at risk (Rs 000)As at 31st March 2007

Sum at risk (Rs 000)

Individual business

Risk retained

Risk reinsured300,650,000

188,412,00061%

39%180,096,000

149,203,00055%

45%109,813

98,54553%

47%

Group business

Risk retained

Risk reinsured26,458,000

19,213,00058%

42%13,952,000

18,495,00043%

57%16,232

37,18330%

70%

Financial Ratios

1) New Business Premium Income Growth (segment wise)Rs.000)

Particulars%2008-09%2007-08%2006-07

Life -Individual Business150.29%136.75%202.89%

Life -Group Business145.33%157.26%308.71%

Pension180.16%203.81%295.52%

Annuities67.72%307.47%18.93%

CONCLUSION

After a detailed study of the questionnaire we reached to certain conclusions, which can be summarized as:

People are not aware about the benefits derived from insurance. Rather they are not aware about the different policies of insurance.

Most of the people relate insurance only with vehicle insurance and life insurance. General awareness about different other policies of insurance is very less.

The insurance company has spend less on promoting insurance policy, because mostly respondent does not fully aware from the features & benefits of the insurance policy..

After analyzing the survey the researcher also found that there are some new challenges and opportunities, which can be, consider by the company for their betterment.

New challenges:-

1. Distribution

2. Customer service

3. New technology

4. InvestmentSUGGESTION

Insurance is an upcoming sector where high profit potentials are foreseen. In order to increase the awareness about this, company should advertise and market their different products in an attractive way so that people develop their interest in this sector.

HDFC Std. Life Insurance Company is a major player in this field but now that companies have increased to a great extent it should also follow some steps so that it does not loose hold over the market. Some of these steps can be:

Company should improve upon the ways of claim settlement & it should be as quick as possible.

Company should increase the no. of agents to increase its market share in the insurance sector.

Training should be given to the insurance agents so to make them more efficient. And management should also be more efficient in coordination and controlling the employees.

Company should increase its advertisement budget to increase the level of advertisement, which in turn will help the company to increase loyalty of customer towards the company & more and more new customers will join as a potential client.

Paper work & documentation should be made less by the company so that customers precious time is saved and they are easily able to understand the procedure of the company. Like e-banking, e-insurance should be promoted so that the customers can easily use it from any part of the world.

BIBLIOGRAPHYBooks Referred:

Philip Kotler, Kevin Keller, Abraham Koshy and Mithileshwar Jha, Marketing Management, twelfth edition, published by Pearson Prentice Hall (year 2007)

Naresh Malhotra, Marketing Research

Websites Referred:

www.irda.com

www.hdfcinsurance.com

www.schoolofinsurance.in

www.wikipedia.com

ABBREVIATIONS

1. HDFCSL - HDFC Standard Life Insurance Company Limited

2. IRDA - Insurance Regulatory And Development Authority

3. AML - Anti Money Laundering

4. FC - Financial Consultant

5. UL - Unit Linked

6. CCR - Consultant Confidential Report

7. PEP - Politically Exposed Person

8. NRI - Non Resident Indian

9. HNI - High Net worth Individual

10. KYC - Know your customer

Insurer

Insured

Risk

EMBED MSGraph.Chart.8 \s

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