sumit ammendmation hdfc

8/3/2019 sumit ammendmation hdfc

1/92

INTRODUCTION

Introduction to Insurance: -

Every asset has a value for its owner and also for those who

are benefited with the existence of that asset. Insurance is

concerned with the protection of economic value of assets.

Every asset has normally an expected lifetime. During this

period, it is expected to perform and provide income/comfort

to the owner. The owner, being aware of this, plans the

things in such a way that by the time the expected lifetime

of the asset expires; he is ready with the funds required for

its replacement. In this way, he ensures that the value or

income from the asset is not lost. Well, this appears to be a

fine arrangement provided the asset completes its expected

lifetime!

All assets carry the risk of being destroyed or damaged. But

all assets may not necessarily get destroyed or damaged.

Only in a few instances, the probability turns out to be true

and the asset gets actually lost or destroyed by accident or

some other unfortunate event before the completion of its

expected lifetime. The owner and those deriving benefits

from the asset will suffer because the arrangement to make

available its substitute is not yet ready.

1 1


2/92

Insurance is helpful in mitigating such adverse

consequences. To sum up, assets are insured, as they are

likely to be lost or made non-functional through an

accidental occurrence.

Insurance does not protect the assets. This means that

insurance cannot prevent loss to the assets due to perils. Nor

can insurance avoid the occurrence of the perils. It only

compensates, may not be fully, the economic or financial

loss resulting to the asset from such damage or destruction.

History of Insurance: -

The beginning of insurance business is traced to the city ofLondon. It started with the marine business. Marine traders,

who used to gather at Lloyds coffee house in London,

agreed to share losses to goods during transportation by

ship. Marine related losses included:-

Loss of ship by sinking due to bad weather in high

seas.

Goods in transit by ship robbed by sea pirates.

2 2


3/92

Loss of or damage to the goods in transit by ship

due to bad weather in high seas. The first

insurance policy was issued in England in 1583.

Life Insurance in India: -

In India, insurance started with life Insurance. It was in the

early 19th Century when the Britishers on their postings in

India felt the need of life insurance cover.

It started with English Companies like... The European and

the Albert. The First Indian insurance company was the

Bombay Mutual Assurance Society Ltd., formed in 1870.

In the wake of the Swadeshi Movement in India in the early

1900s, quite a good number of Indian companies were

formed in various parts of the country to transact insurance

business. To name a few:: Hindustan Co-operative and

National Insurance in Kolkata; United India in Chennai;

Bombay Life, New India and Jupiter in Mumbai and

Lakshmi Insurance in New Delhi.

Nationalization of Life Insurance in India:

-

In 1956, life insurance business was nationalized and LIC of

India came into being on 1.9.1956. The government took

3 3


4/92

over the business of 245 companies (including 75 provident

fund societies) who were transacting life insurance business

at that time. Thereafter, LIC got the exclusive privilege to

transact life insurance business in India

Purpose and Need for Insurance: -

Assets are likely to be destroyed or made non-

functional due to accidental occurrences called perils.

Assets can, therefore, be insured. A few examples of

perils are: fire, floods, breakdowns, lightning,

earthquake etc. Perils are the events. Risks are the

consequential losses or damages.

Possibility of damage to asset caused by any peril is the

risk that asset is exposed to.

Risk means uncertainty or unpredictability about future

loss or damage, which may or may not happen. This

refers to the losses, which may happen suddenly and

unexpectedly.

We can say that a human life is also an income-

generating asset.

Human life may be lost due to unexpected early death

or become non-functional following sickness or

disabilities cause by accidents.

4 4


5/92

If this happens by the time one is on the verge of

retirement when his income is about to cease, he might

have made alternative arrangements to meet his

needs.

Yr: 2000-2001:( From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had 16 new entrants, namely:

Life Insurers:

S.No. Registration

Number

Date of

Reg.

Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance

Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co.

Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance

Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual LifeInsurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company

Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company

Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited

.

8 114 02.08.2001 ING Vysya Life Insurance Company

Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance

Company Limited

5 5


6/92

10 117 06.08.2001 Metlife India Insurance Company

Ltd.

11 133 04.09.2007 Future Generali India Life Insurance

Company Limited

12 135 19.12.2007 IDBI Fortis Life Insurance Company

Ltd.

General Insurers :

S.No. Registration

Number

Date of

Registration

Name of the Company

1 102 23.10.2000 Royal Sundaram Alliance

Insurance Company Limited

2 103 23.10.2000 Reliance General InsuranceCompany Limited.

3 106 04.12.2000 IFFCO Tokio General Insurance

Co. Ltd

4 108 22.01.2001 TATA AIG General Insurance

Company Ltd.

5 113 02.05.2001 Bajaj Allianz General Insurance

Company Limited

6 115 03.08.2001 ICICI Lombard General

Insurance Company Limited.

7 131 03-08-2007 Apollo DKV Insurance

Company Limited

6 6


7/92

Types of Insurance

Basically there are two types of

Insurances:

1. Non-Life Insurance 2. Life Insurance

Basically Non-Life Insurance Includes: -

Marine Insurance

Fire Insurance

Miscellaneous Insurance

Vehicles

Furniture

Building

Aircrafts

7 7


8/92

General

Life Insurance Includes: -

Only Human Life Insurance

Human beings sickness, illness

INSURANCE REGULATORY & DEVELOPMENT

AUTHORTY (IRDA): -

Composition of Authority under IRDA Act, 1999

Insurance Regulatory and Development Authority (IRDA) is

constituted by the Government of India, which governs all the companiesthat are operating in the insurance sector in India. As per the section 4 of

IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA,

which was constituted by an act of parliament) specify the composition of

Authority

The Authority is a ten member team consisting of

(a) A Chairman;

(b) five whole-time members;(c) four part-time members,

(all appointed by the Government of India)

8 8


9/92

MISSION OF IRDA: -

To protect the interests of the policyholders, to regulate, promote and

ensure orderly growth of the insurance industry and for matters connectedtherewith or incidental thereto.

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and

functions of IRDA.

(1) Subject to the provisions of this Act and any otherlaw for the time being in force, the Authority shall have theduty to regulate, promote and ensure orderly growth of theinsurance business and re-insurance business.

(2) Without prejudice to the generality of the provisionscontained in sub-section (1), the powers and functions of theAuthority shall include, -

(a) Issue to the applicant a certificate of registration,renew, modify, withdraw, suspend or cancel suchregistration;

(b) Protection of the interests of the policy holders inmatters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim,

surrender value of policy and other terms and conditions ofcontracts of insurance;

(c) Specifying requisite qualifications, code of conductand practical training for intermediary or insuranceintermediaries and agents;

9 9


10/92

(d) Specifying the code of conduct for surveyors andloss assessors;

(e) Promoting efficiency in the conduct of insurance

business;

(f) Promoting and regulating professionalorganizations connected with the insurance and re-insurancebusiness;

(g) levying fees and other charges for carrying out thepurposes of this Act;

10 10


11/92

11 11


12/92

COMPANY PROFILE

The HDFC Group

HDFC was incorporated in 1977 with two primary objectives -

to enhance housing stock in the country through housing

finance systematically and professionally and promote home

ownership. Today they are the largest residential mortgage

finance institution in India, with a net worth of Rs. 2,703

crores as of March 31, 2002 and an asset base of over Rs.

22,000 crores. HDFC also aim to increase the flow of

resources to the housing sector by integrating the housing

finance sector with the overall domestic financial markets.

HDFC has demonstrated the viability of market oriented

housing finance in a developing country. The World Bank

considers us a model private sector housing finance

company in developing countries and a provider of technical

assistance for new and existing institutions, in India and

abroad.

HDFC is also the largest mobilized of retail deposits in the

private sector outside the banking circle. Their deposits have

been awarded the highest safety credit rating 'FAAA' &

12 12


13/92

MAAA by CRISIL and ICRA respectively for eight consecutive

years.

GROUP COMPANIES OF HDFC: -

HDFC Bank Limited

HDFC Securities Limited

HDFC Asset Management Company Limited

HDFC Realty Ltd.

HDFC Deposits

HDFC Standard Life Insurance

HDFC Chubb

Intelenet

13 13
http://www.hdfcbank.com/http://www.hdfcsec.com/http://www.hdfcfund.com/http://www.hdfcrealty.com/http://www.hdfcbank.com/http://www.hdfcinsurance.com/http://www.hdfcbank.com/http://www.hdfcbank.com/http://www.hdfcbank.com/http://www.hdfcsec.com/http://www.hdfcfund.com/http://www.hdfcrealty.com/http://www.hdfcbank.com/http://www.hdfcinsurance.com/http://www.hdfcbank.com/http://www.hdfcbank.com/


14/92

HDFC Bank Ltd.

The Housing Development Finance Corporation Limited

(HDFC) was amongst the first to receive approval from the

Reserve Bank of India (RBI) to set up a bank in the private

sector. The bank was incorporated in August 1994 in the

name of HDFC Bank Limited, with its registered office in

Mumbai. HDFC Bank commenced operations as a Scheduled

Commercial Bank in January 1995.

14 14


15/92

Awards

Best Listed Bank of India by Business world.

Best Domestic Bank by The Asset Magazines Triple A

Country Award.

Best Local Cash Management Bank2006 in Large and

Medium segmentsAsia money Awards

Best Bank in India in 2006Euro money Awards

HDFC Asset Management Company Ltd.

HDFC Asset Management Company Ltd. (AMC) was

incorporated under the Companies Act, 1956; on December

10, 1999 and was approved to act as an Asset Management

Company for the HDFC Mutual Fund by SEBI vide its letter

dated June 30, 2000.HDFC Asset Management Company Ltd.

(AMC) is one of the most growing Mutual Fund Company of

India.

Awards

HDFC mutual fund was recently awarded the CNBC

Moddys investor service award for the best performing

fund house for the one-year category.

15 15
http://www.hdfcbank.com/http://www.hdfcbank.com/http://www.hdfcbank.com/http://www.hdfcbank.com/


16/92

Zurich also received the best performing fund house

award for the three-year category.

HDFC Chubb

Its partnership that leverages the strengths of two financial

powerhousescombining the trust and local experience of

HDFC, Indias premier financial services company, with the

120 years proven expertise of CHUBB, a global leader in non-

life insurance backed by a network of 134 offices in 31

countries.

Chubb today provides property and casualty insurance

through more than 10,000 employees in 32 countries of

North America, South America and Asia.

Intel net

Intel net is a leading BPO service provider with the focus on

providing solutions to global Organizations seeking to reduce

the cost while consistently maintaining superior level of

standards two leading global investorsHDFC and Barclays--

16 16


17/92

provide the financial banking Intelenet needs to lead in a

global marketplace. Barclays is a venerable financial services

group headquartered in the United Kingdom, ranking

amongst the services group headquartered in the United

Kingdom, ranking among the Top 10 banks in the world

based on market capitalization.

Intelenet impacts your business by seeking to reduce

costs while consistently maintaining superior levels of

service. Our solutions extend across all strata of BPO,

technology and consulting.

Awards

Deloitte Technology Fast 50 India 2005 Program

Intelenet Global Services has been ranked first among

BPOs while standing third overall in the Technology, Media

and Telecommunications (TMT) sectors across India.

Deloitte Technology Fast 50 India 2006 Program

Intelenet Global Services has continued its ranking,

second time in a row, as amongst the top 50 fast growing

technology companies in India.

Maharashtra Information Technology Awards

2005

17 17
http://www.hdfcbank.com/http://www.hdfcbank.com/


18/92

Intelenet Global Services came in a close second in

the IT Enabled Services category at the Maharashtra

Information Technology Awards2005.

HDFC Deposits

D E P O S I T S

HDFC has instituted well-defined service standards for both

depositors and deposit agents. HDFC has been able to

mobilize deposits from over 10 lack depositors. Outstanding

deposits grew from Rs. 1,458 crores in March 1994 to Rs.

8,741 crores in March 2006. Much of this success can be

attributed to its strong brand image, superior services,

security and above all, the significant contribution made by

HDFCs deposit agents. HDFC has over 50,000 deposit

agents and distributes all its retail savings (deposit) products

primarily through this channel.

Awards

HDFC has been awarded AAA rating and MAAA

rating for its deposits from both CRISIL and ICRA for thetwelfth consecutive year, representing highest safety as

regards timely payment of principal and interest.

HDFC Realty Ltd.

18 18


19/92

Realty Limited

HDFC Realty Ltd. Is a new, organized electronic marketplace

for properties, to provide the entire gamut of real estate

services, bringing together the click world and the bricks

world in a revolutionary and user-friendly way. Making

available the best guidance and the most professional,

transparent, efficient service to the real estate customer.

HDFC Securities Ltd.

S E C U R I T I E S

HDFC Securities Ltd was promoted by the HDFC Bank &

HDFC with the objective of providing the diverse customer

base of the HDFC Group and other investors, a capability to

transact in the Stock Exchanges & other financial market

transactions.

HDFC Standard Life Insurance Company Ltd.

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

leading private insurance companies, which offers a range of

individual and group insurance solutions. It is a joint venture

between Housing Development Finance Corporation Limited

19 19


20/92

(HDFC Ltd.), India's leading housing finance institution and a

Group Company of the Standard Life, UK, and leading

providers of financial services in the United Kingdom. HDFC

as on March 31, 2007 holds 81.9 per cent of equity and

Standard Life was holding 18.1 in the joint venture.

Highlights

First life insurance Company in the private sector to get

license from the regulator IRDA.

First life insurance Company to come out with Term

Assurance Plan.

First private life insurance Company to declare bonuses

consecutively for 6 years from inception.

First life insurance Company to introduce open option to

the pension plan policyholders.

First life insurance Company to introduce Automatic

Allocation Option to all the policyholders under Unit

Linked Plans.

Only life insurance Company to give 24 free switching

option to Unit Linked Policyholders.

HDFC is one of the fastest growing Private Life Insurers

and today have more than 8 lakh policyholders.

HDFC have one of the widest networks with more than

160 branches and servicing over 440 towns.

HDFC Standard Life Insurance Company has one of the

highest brand recalls of around 86%. (Source: AC

20 20


21/92

Neilson ORG MARG, September 2005). A high brand

recall translates to higher chances of customers buying

insurance from them.

Awards

Over a decade of its operations, HDFC Standard Life

Insurance Company Ltd. has been recognized, rated and

awarded by a number of organizations, which include:

Winner of the Out Look Money Award for two

consecutive years.

Voted as the Most Respected Life Insurance Company

by Business World in 2004.

HDFCs KEY STRENGTHS

Financial Expertise

As a joint venture of leading financial services groups, HDFC

Standard Life has the financial expertise required to manage

your long-term investments safely and efficiently.

Range of Solutions

We have a range of individual and group solutions, which can

be easily customized to specific needs. Our group solutions

21 21


22/92

have been designed to offer you complete flexibility

combined with a low charging structure.

Track Record so far

Our cumulative premium income, including the first year

premiums and renewal premiums is Rs. 1532.21 Crores Apr-

Mar 2005 - 06.

We have covered over 1.6 million individuals out of which

over 5,00,000 lives have been covered through our group

business tie-ups.

VISION & VALUES

22 22

Our Vision

The most successful and admired LifeInsurance Company, which means thatwe are most trusted company, theeasiest to deal with, offers the best valuefor money, and set the standards in theindustry. In short, The most obviouschoice for all.


23/92

P.I.P.S.

Classification of life insurance

plans

Lifeinsurance plans can be classified into the following four

categories according to the

Features:

# Protection Plans

# Investment Plans

# Pension Plans

# Savings Plans

Protection Plans

23 23

Values

IntegrityInnovation

Customer CentricPeople CareTeam Work

Joy & Simplicity


24/92

As the name suggests this category of plans are

designed to protect the income earning capacity of the life

assured. The present income of the life assured thereforeforms the basis of the life insurance. A person with no

income therefore cannot be given this plan. The plan is

therefore not offered to students, housewives and minors.

The plans are in the nature of assurances rather than pure

insurance. Under the plan the insurance company assures

the policyholder that a lump sum of money would be paid on

the happening of the insured event.

Thus even if the life assured does not earn the same

level of income at the time of the happening of the insured

event, as at the time when he took the insurance, the lump

sum is still payable.

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 the cover; however a

saving element can be built under the plans to return the

savings amount at maturity. The plans do not share in the

profits of the company and have no bonuses.

Under the protection plans the risk is covered for a

premium, which is sufficient to pay the claims and the

expenses. It is therefore necessary for the insurance

company to ensure that the claims do not exceed the

assumed mortality. To ensure this, the insurance company

24 24


25/92

would strictly underwrite the protection plans. There is also a

stiff competition under the protection plans as the plans of

two companies can be compared on the basis of the

premium charged. Every company tries to get the share of

the market by keeping the premium under this category

lower. The only way for a company to keep the premium low

over a long period is to control the expenses and claims.

The service factor is also important while selling a

protection plan. How quickly the claim would be settled

matters. In case a company is charging some few rupees

more but is known for quick settlement of the claim the

client would not mind going with such company. Hence the

premium rate as well as the service should be explained to

the client while selling the protection plans.

The plan should be sold on the basis of the Human LifeValue (HLV) concept. As per the HLV concept every

individual has an economic value, which is equal to the

present value of all future earnings of that individual.

Company should sell this plan to clients who have an income

and a financial responsibility. This form of insurance is also

called a young persons privilege as it is easy to get this

insurance when you are young and since savings are low

when a person is young he should possess this cover in case

of an unforeseen event.

25 25


26/92

Rider Benefits also fall in this category of plans. Under

the rider the insured event is defined and claims are payable

only if the insured event as defined occurs. Rider benefits

usually come with a number of exclusions. One should

understand the exclusions and the definitions of the rider

benefit before choosing a rider.

HDFC Standard Life Company has two products in this

category and they are:

1. Term Assurance Plan

2. Loan Cover Term Assurance Plan

Investment Plan

As the name suggests this category of plans aredesigned to help the person reduce some of the risk of

investments. All the investment risks cannot be reduced.

What the investment plans try to do is to create a pool of

investors so that they can get the advantage of large funds,

diversified investments, professional management and

better returns. Investment plans can be designed to protect

the policyholder against the market fluctuations. However all

policyholders cannot be protected at the same time against

market fluctuations. It is common to allow the protection to a

small group of policyholders at any given point of time. One

26 26


27/92

of the objectives of the investment type of plans is to give a

good return to the policyholder.

When risk covers are integrated with the investment

plans the cost of the risk covers reduce the returns to the

policyholders. To avoid the risk cover costs the plans do not

offer huge risk covers. Hence in these type of plans,

premium paid by policyholder is almost equal to the sum

assured.

The premium under the plans mainly consists of investment.

It would not be correct to compare this category of plans on

the basis of the sum assured and the premium paid. In case

a higher premium is collected under the plan, the company

would be in a better position to pay a bigger amount on

maturity/death.

A better way of comparison would be to compare whatthe client pays and what he would get under the plans. At

the time of selling unfortunately you would not be able to

show to the client as to what he would get under his plan.

Illustrations and past bonuses are something you can use to

convince the client. The company background and the

philosophy of the company can also be used to convince the

client.

Life insurance investment plans are designed for long-term

investments. It is not cost effective for a life insurance

company to design a short-term investment plan. It is

27 27


28/92

therefore usual for these types of plans to have a term of 10

years and above. It is important to make the client

understand that he is entering into a long-term investment

when he purchases and investment plan form a life

insurance company.

This plan is useful when the client is looking for investment

for a long-term financial needs, which requires investment of

money for a long term.

The investment plan can be designed as a with-profits

contract or a unit linked contract. In a with profits contract

the returns are smoothened while under the unit linked

contract the returns to the client depend on the movement

of the Net Asset Values (NAVs) of the units purchased.

Pension Plans

Pension Plans are designed to provide pension. With the

interest rates fluctuating and the increase in longevity the

interest in the pension products has been growing in the

recent past. Life pensions provide an income till death and

this is attractive in the above-mentioned scenario.

The Indian society has been moving from the joint

family system to the nuclear family system. There is also no

form of social security schemes, which provide an income in

the old age. It is therefore important that all individuals think

28 28


29/92

about their retirement and save for an income in the old age.

Pension Plans help the client to build the pension fund, which

is earmarked, to provide for the pensions and pay the

pensions on the chosen retirement date.

Pension Plans can be further classified into the following two

categories:

1. Deferred Pension Plans These plans help the client

build the pension fund during his earning years and

convert the fund into pensions on the chosen

retirement date.

2. Immediate Pension Plans These plans pay a pension

immediately after the lump sum purchase price is paid

to the insurance company.

HDFC Standard Life launched the following plans in this

category:

1. Personal Pension Plan (with profits)

2. Unit Linked Pension Plan

Savings Plans

The savings plans are designed to help a person save for a

long-term event. Long-term savings have inherent un-

certainties. Besides long term savings instrument are not

29 29


30/92

available in the market. The savings plans aims to provide a

solution to the client in this area with the benefit of life

insurance.

It is important to note that the insurance cover offered is on

the savings. While purchasing the plan that the policyholder

has a savings target in mind. The plan aims to protect this

target in the event of the death of the life assured. In the

event of the death of the life assured during the term, in

addition to the amount saved the amount, which could not

be saved is also paid to the beneficiary.

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. The effectively means that the

premium paid by the policyholder would determine the

maturity amount that the policyholder would ultimately get.

Thus comparison on the savings products of two companies,

on the premium and the sum assured is a wrong method of

comparison.

Savings plans offer the clients a good vehicle to build

savings for a long-term financial need. The earlier the client

starts a savings plan the lesser he would have to contribute

as his savings would grow bigger due to the effect of

compound interest. To sell a savings plans you need to

30 30


31/92

identify the long term savings needs of the client and explain

to him the benefits of savings through life insurance.

Savings plans have a risk element, which needs to beunderwritten to ensure that the death claims are controlled.

In case a company is very liberal in granting the covers the

chances are that the policyholders who survive would get a

lower maturity benefits. Maturity benefits can be enhanced

by a strict control on the claims and the expenses.

Savings Plans can be offered as a with-profits plan or a unit

linked plan.

A with profits fund aims to smoothen the returns to the

policyholder using the bonus mechanism while the returns to

the policyholder under a unit linked plan depends on the

movement of the unit prices.

HDFC Standard Life offers the following savings plans:

1. Endowment Assurance Plan (with

profits)

2. Money Back Plans (with profits)

3. Childrens Plan (with profits)

4. Unit Linked Endowment Plan

31 31


32/92

PRODUCTS: AT A GLANCE

1. Endowment Assurance Plan

(Savings for a better tomorrow)

Introduction

The Endowment Assurance Plan is a with profits savings

contract which aims to give good maturity values to the

client by investing the funds as per the IRDA guidelines and

reducing claims and costs. The aim of the plan is to pay good

maturity values so that the savings objectives of the

policyholders are met.

Need for the Plan

The Endowment Assurance Plan is designed to provide a solution

to the long term financial needs. It is often felt that people save only

when their income is more than their expenses. To put it bluntly if a

person can earn more than what he can spend he can save. In reality

this is not the situation as one finds that it is impossible to save with

the current level of expenses. Why does this happen?

Expenses are a function of our needs, which arise due to ourwants. We all know that the wants of a human being are unlimited.

Consequently the needs keep on increasing and often increase at a

rate higher than the rate of growth of income. Income on the other

32 32


33/92

hand is limited and often grows at a much lower rate than the needs.

Consequently it is difficult to save.

There are various savings options available in the market;

however most of the options are short-term or medium term. Life

Insurance savings plans are a better choice as in addition to providing

the vehicle to save for long term the plans also offer insurance on the

savings. Income does not increase with every requirement for finance.

Childrens education, marriage, housing etc. require lump sum

amounts. In case any person has a responsibility to spend on these

kinds of long-term events, he would have a need for the product.

Features of the Endowment Assurance Plan

The following are the features of the plan:

1. Benefits:

a) Death Benefits: In the event of death of the life assured

during the term of the contract, and provided all the

premiums are paid till the time of the death of the life

assured, the sum assured, together with reversionary

bonus and the terminal bonuses (if any) would be paid to

the beneficiary. The policy would terminate on payment of

the death benefit.

33 33


34/92

b) Maturity Benefits: On survival of the life assured till the

date of maturity, and subject payment of all premiums, the

policyholder would be paid the sum assured, together with

the reversionary bonuses and terminal bonus (if any). The

policy would terminate on payment of the maturity benefit.

c) Paid-up Benefits: In case the policyholder discontinues

payment of premium after the premiums are paid for at

least three years, the policy would be reduced to a paid-up

policy. The reduced paid-up benefits are payable on death

of the life assured during the term, or survival of he lifeassured till the date of maturity, whichever is earlier.

d) Surrender Benefits: The policyholder can surrender the

policy at any time. In case the policyholder chooses to

surrender the policy before the payment of three years

premium the surrender value would be equal to zero and

nothing would be payable. In case the policyholder chooses

to surrender after three years, he would be entitled for a

surrender value.

2. Frequency of premium payment:

The policyholder can choose yearly, half-yearly or quarterly

mode of payment, as he desire. The frequency of premium

payment can be altered during the term of the contract.

3. Days of grace:

The premium is payable in advance and should be paid within

the days of grace. The days of grace allowed under the plan are

34 34


35/92


36/92

the minor would have to propose the insurance on behalf of the

minor. The policy would automatically vest in the life assured

when he attains the age of majority.

7. Policy loans:

Policy loans would be available under the plan once the policy

acquires a surrender value. The policy loans would be to the

extent of 90% of the surrender value. The company would quote

the terms and conditions of the policy loans at the time of

granting the loans and the same would vary from time to time.

8. Life cover basis:

The endowment assurance plan can be offered on a single life

basis or as joint life first claim basis. When the policy is offered

on a joint life basis the death claim would be paid on the death of

any one of the lives assured and the policy would terminate.

9. Tax benefits:

The premium paid under the plan qualifies for tax rebate under

section 88 of the Income Tax Act 1961. The claim benefits would

also not be taxable as per section 1010 D of the Income Tax Act

1961.

The plan is also approved under the provisions of

section 80 DD of the Income Tax Act 1961.

Positioning of the Endowment AssurancePlan

36 36


37/92

The Endowment Assurance Plan can be positioned as along term

savings vehicle with a cover on the savings. The plan is suited to help

in building a fund for long term financial needs. The guarantees in the

nature of sum assured and the bonuses assure the client of asmoothened long-term return. The philosophy and practices of the

company can help in building the maturity values for the client and

hence positioning the company is also important in the sale of the

Endowment Assurance Plan.

2. Money Back Plan

(Plan with periodic survival benefits)

Introduction

The Money Back Plan is a with profits savings contract which in

addition to the payment of periodic survival benefits aims to give good

maturity values to the client by investing of funds as per the IRDA

guidelines and reducing claims and costs. The aim of the plan is to pay

periodic survival benefits and build good maturity values so that the

short term, medium term and long-term savings objectives of the

policyholders are met.

The net returns to the policyholders at the time of maturity would

depend on the investment and cost experience during the term of the

contract.

Need for the Plan

The Money Back Plan is designed to provide a solution for the short-

term, medium term and long term financial needs. It is therefore

37 37


38/92

important to understand the financial needs before suggesting the plan

as a solution.

Since people have some short term and medium term and medium

term financial goals like providing for a vacation, purchasing of a

luxury item or house renovations etc, they require money periodically

in short intervals to meet these goals.

The Money Back Plan is designed to provide money periodically so that

the same can be used for such requirements. The added advantage of

the Money Back Plan is that the risk cover keeps on adjusting during

the term of the contract and the policyholder is assured payment ofthe full sum assured together with the bonuses irrespective of the

survival benefits paid on death of the life assured during the term.

Features of the Money Back Plan


1. Benefits:

a. Death Benefits: In the event of death of the life assured



assured, the sum assured, together with reversionary

bonus and the terminal bonuses (if any) would be paid to

the beneficiary.

b. Survival Benefits: Survival benefits are paid at the end of

every fifth year on survival of the life assured. The rates ofsurvival benefits are given below. The policy would

continue after payment of the survival benefit.

38 38


39/92

c. Surv

c. Maturity Benefits: On survival of the life assured till the

date of maturity, and subject payment of all premiums, the

policyholder would be paid the sum assured, together with

the reversionary bonuses and terminal bonus (if any) less

all survival benefits paid during the term of the

contract. The policy would terminate on payment of the

maturity benefit.

d. Paid-up Benefits: In case the policyholder discontinues



policy. The reduced paid-up benefits are payable on death

of the life assured during the term.

e. Surrender Benefits: The policyholder can surrender the


39

Number of years from the policy

commencement date

PolicyTerm 5 10 15 20 25

10 40%

15 30% 30%

20 25% 25% 25%

25 20% 20% 20% 20%

30 15% 15% 15% 15% 15%

39


40/92



nothing would be payable.

2. Frequency of premium payment: The policyholder can choose yearly, half-yearly or quarterly



3. Days of grace:



15 days from the due date of premium. In case the days of grace

end on a holiday then the premium has to be paid on the next

working day.

4. Lapsation:

In the event the premium is not paid within the days of grace the

policy lapses. The policy would be automatically reduced to a

paid up policy in case premiums have been paid for at least three

years. In case premiums are not paid for three years the policy

would lapse without value.

A lapsed policy can be reinstated within one year from the date

of lapse only.

5. Minimum premium:

The following are the minimum premium conditions under the

Money Back Plan.

Annual mode Rs. 1800

Half yearly mode Rs. 1000

Quarterly mode Rs. 550

40 40


41/92

There is no condition of maximum premium.

6. Other conditions:

Minimum Term 10 years

Maximum Term 30 years

Minimum Age at Entry 12 years

Maximum Age at Entry 60 years

Maximum Maturity Age 75 years

The policyholder has the choice to choose any term between 10

to 30 years, subject to the maximum maturity age. In case the

policy is taken on the life of a minor then the legal guardian of


minor. The policy would automatically vest in the life assured

when he attains the age of majority.

7. Policy loans:




the terms and conditions of the policy loans at the time of

granting the loans and the same would vary from time to time.


The Money Back Plan can be offered on a single life basis or as

joint life first claim basis. When the policy is offered on a joint lifebasis the death claim would be paid on the death of any one of

the lives assured and the policy would terminate.

9. Tax benefits:

41 41


42/92




1961.



3. Childrens Plan

(Plan designed for the benefit of children)

Introduction

The Childrens Plan is a with-profits savings contract designed for the

benefit of the child. The plan therefore has a provision for a

beneficiary, which can be the child, and all benefits under the plan

would be paid to the child. The funds generated under the plan are

invested as per the IRDA guidelines.

The net returns would depend on our investment and cost experience

during the term of the contract

Need for the Plan

Most parents feel that it is their responsibility to provide the best for

their children. In addition to the physical and emotional wants children

also need to be provided for financially. There are two types of

financial needs of the child:

I. Short term financial needs for food, clothing shelter and

education. This need is mostly met from the income of the

parent

42 42


43/92

II. Long term financial need for higher education, marriage

and start in life. The alternatives for this are either to save

or raise loans.

In the event of an early death of the parent the child become

dependent of one of the close relative. To ensure that the child would

be taken care even after such an eventuality the parent can look at

providing an income as well as lump sum amounts for the benefit of

the child. The Childrens Plan is designed to help the parent in planning

for the above financial needs of the child.

All the arguments on the need to save and savings being a better

option than raising a loan are applicable while selling the Childrens

Plan.

Features of the Childrens Plan


1. Benefits:

a) Death Benefit: Under this option on death of the life

assured during the term of the policy, provided the

premium is paid till the date of death; no amount would be

immediately payable.

The future premiums would be waived and at maturity date

of the policy the full sum assured with the reversionary

bonuses and terminal bonus (if would be payable to the

beneficiary. The policy would participate in the bonuses till

the date of maturity. The policy would terminate on the

43 43


44/92

payment to beneficiary.

b) Accelerated Benefit: Under this option on death of the life

assured during the tem of the policy, provided thepremium is paid till the date of death, the sum assured

with the reversionary bonus and terminal bonus (if any)

would be payable immediately to the beneficiary and the

policy would terminate.

c) Double Benefits: Under this option on death of the life

assured during the term of the policy, provided the

premium is paid till the date of death; one sum assured

would be paid to the beneficiary immediately. The future

premiums would be waived and at maturity date of the

policy the full sum assured with the reversionary bonus and

terminal bonus (if any) would be payable to the

beneficiary. The policy would terminate on payment of the

benefit on the date of maturity

d) Maturity Benefits: In the event of survival of the life

assured during the term of the contract, and provided all

the premiums are paid, the sum assured, together with the

reversionary bonuses and the terminal bonuses (if any)

would be paid to the beneficiary. The policy would

terminate on payment of the maturity benefit.

e) Paid-up Benefits: In case the policyholder discontinues



44 44


45/92

policy. If the Childrens Plan is made paid up, a table of

adjustment factors will be used to adjust the policys basic

sum assured to a paid up value. The adjustment factors will

vary by the policyholders age, the policys original term,policy duration, and frequency.

f) Surrender Benefits: The policyholder can surrender the






surrender value.any)


The policyholder can choose yearly, half-yearly or quarterly



3. Days of grace:




end on a holiday then the premium has to be paid on the next

working day.

4. Lapsation:



45 45


46/92




A lapsed policy can be reinstated within one year from the dateof lapse only.

5. Minimum premium:


Childrens Plan.


Half yearly mode Rs. 1000Quarterly mode Rs. 550







Maximum Maturity Age 75 years


to 25 years, subject to the maximum maturity age. In case the

policy is taken on the life of a minor then the legal guardian of


minor.

7. Policy loans:

Policy loans would not be available under the plan.


46 46


47/92

The Childrens Plan is to be sold on the life of the parent with the

child as the beneficiary. The plan is not offered on a joint life

basis.

9. Tax benefits:




1961.



Positioning of the Childrens Plan

The Childrens Plan can be positioned as a long term savings vehicle

specially designed to meet the financial requirements of the child. The

plan provides for both the immediate financial needs and the long term

financial needs. In case the client is not worried about the immediate

financial needs of the child on his death then the maturity benefit

option would be suitable to him. The sum assured payable on the

death in a double benefit option would help in providing for the

immediate financial needs of the child. The Accelerated benefit works

exactly like and endowment assurance plan. The guardian of the child

would have an option of either to spend the money for the immediate

benefit of the child or to save the claim amount for a future benefit.

4.Term Assurance Plan

(Protection of Income)

Introduction

47 47


48/92

The Term Assurance Plan is a without profits protection

contract designed to protect the income earning capacity of

the life assured. The present earning capacity of the clienttherefore forms the basis of the insurance.

Need for the Plan

Uncertainty is a part of life. In the event of death of the breadwinner

the dependents are put to a lot of financial difficulty as they lose the

source of income. The problem is compounded in case the family does

not have savings to rely on. In case a person has dependents and also

does not have savings on which the family can rely on in the event of

his death, he needs to protect his income for the benefit of the family.

Term Assurance Plan is designed to offer the protection of the income

at the least possible cost.

Term Assurance Plan can also be used to cover liabilities so that in theevent of death the family receives a lump sum amount so that

liabilities are paid off. Term Assurance is an insurance of income and

hence the existence of liabilities is not the basis of granting the

insurance.

Features of the Term Assurance Plan


1.Benefits:

48 48


49/92

a) Death Benefits: Provided the policy is in force in the event

of death of the life assured during the term of the contract

the sum assured is paid.

b) Benefits on expiry of the cover: On expiry of the covernothing is payable as Term Assurance is designed for

protection only.

c) Paid up Benefits: There are no paid up benefits under this

plan.

d) Surrender Benefits: There are no surrender benefits under

this plan.


The policyholder can choose to pay by a single premium or

yearly, half-yearly or quarterly mode of payment. The frequency

of premium payment can be altered during the term of the

contract. Please note that a regular premium policy cannot be

changed to a single premium mode during the term of the

contract.

3. Days of grace:



15 days from the due date of premium.

4. Lapsation:


policy lapses. A lapsed policy can be reinstated within one year

from the date of lapse only.

49 49


50/92

5.Minimum premium:


Term Assurance Plan.

Single Premium Rs. 2000





6.Other conditions:

Regular Premium Single Premium

Minimum Term 5 years 2 years

Maximum Term 30 years 15 years

Minimum Age at Entry 18 years 18 years

Maximum Age at Entry 60 years 60 years

Maximum Maturity Age 65 years 65 years

7.Policy loans:


8.Life cover basis:

The Term Assurance Plan can be sold on a single life or joint life

first death basis.

9.Tax benefits:




1961.

50 50


51/92

10. Special Rates for Women:

Since women have a lesser mortality rate than men for the same

age, the premium rate charged fro women would be the rate

applicable to men three years younger.

5. Single Premium Whole of Life

Insurance Plan

(Plan designed to give long-term real growth)

Introduction

The Single Premium Whole of Life Insurance Plan is a with

profits investment contract which aims to give long tem real

growth to the client by investing the funds as per the IRDA

guidelines and reducing claims and costs. The aim of the

plan is to generate long term real growth, providing

guarantees at specific times during the term of the contract.

Need for the Plan

The Single Premium Whole of Life Insurance Plan is designed to help

the client in long-term investment. It is therefore important to

understand the problems associated with investments to sell the plan

better.

However all investment is associated with risk. The higher the risk one

takes, the better the chances of getting a better return. Investment is

all about taking risks.

51 51


52/92

Various investment instruments are available in the market and the

client has to choose from the investment option available. This

investment instruments are designed to meet short-term, medium-term and long-term objectives. If an instrument is designed for a short

term the same is not suitable for achieving a long term objectives. This

is because the instrument would terminate in the short term and the

client would be exposed to reinvestment risks. Long-term investments

designed to provide real growth is a solution to the long-term needs.

The client can choose to invest directly where the risks are high and

the potential of a higher return also exists. However he would have the

disadvantage of being a small investor, who does not have the

expertise in the market, does not have large funds and is not able to

diversify. The mutual funds help the client in this area and pool the

investment of a group of small investors providing them with expertise

in investment, diversification and better returns.

However investment in mutual fund requires a strategy and the returns

depend on the time of entry and exit from the fund. Two investors may

make different kinds of return due to the different strategies they

follow. The Single Premium Whole of Life Insurance Plan is designed to

remove this problem of the investors by giving insurance in the form of

guarantees on death and at specific time intervals so that the returns

at these guaranteed periods do not depend on the market conditions.

These guarantees in long-term investment are very valuable and since

the product is a whole of life one, the client can continue with the

investment till death.

Features of the Single Premium Whole of Life

Insurance Plan

52 52


53/92


1.Benefits:




assured, the sum assured, together with the (compound)

reversionary bonus and the terminal bonuses (if any) would

be paid to the beneficiary. The policy would terminate on

payment of the death benefit.

b) Maturity Benefits: The Single Premium Whole of Life

Insurance Plan is a whole life plan and therefore does not

have a maturity date

c) Paid up Benefits: This is not applicable to the Single

Premium Whole of Life Insurance Plan since the plan is a

single premium plan.

d) Minimum Guaranteed Surrender Benefits: On

surrender of the policy after a period of three years from

the date of commencement, there is and guarantee that

the minimum surrender value would be equal to 50% of the

premium paid, except in the four weeks immediately

following the completion of the 10th policy year and every

5th year thereafter, when the minimum guaranteed

surrender value would be equal to the sum assured.

e) Special Surrender Benefits: The Company at its sole

discretion may pay special surrender values higher than

the guaranteed surrender values depending on the

53 53


54/92

investment and expense experience of the company. The

special surrender values would be paid after completion of

the first six months from the date of commencement of the

policy.


The policyholder has to pay the premium by way of a single

premium only. The single premium payable is equal to 95% of

the sum assured chosen.

3.Premium:

The following are the premium conditions under the Single

Premium Whole of Life Insurance Plan:

Minimum Premium Rs. 23,750

Maximum Premium Rs. 47,50,000

4.Other conditions:

Minimum Sum Assured Rs. 25,000

Maximum Sum AssuredRs. 50,00,000



5.Policy loans:




the terms and conditions of the policy loans at the time ofgranting the loans and the same would vary from time to time.

6.Life cover basis:

54 54


55/92

The Single Premium Whole of Life Insurance Plan can be offered

on a single life basis only.

7.Tax Benefits:

The Premium paid under the plan qualifies for tax rebate under

section 88 of the Income Tax Act 1961.



Positioning of the Single Premium Whole ofLife Insurance Plan

The Single Premium Whole of Life Insurance Plan can be positioned as

along term investment vehicle with guarantees at specific dates. The

Plan is suited to help in providing a fund for long term financial needs.

The philosophy and practices of the company can help in building the

policy values for the client and hence positioning the company is also

important in the sale of the Single Premium Whole of Life Insurance

Plan.

6. Personal Pension Plan

(Savings for a better retirement)

Introduction

The Personal Pension Plan is a with profits deferred pensioncontract which aims to give good pension benefits to the

client by helping the client build a retirement fund. The aim

of the plan is to build good fund values so that the client can

enjoy a better pension on retirement.

55 55


56/92

Need for the Plan

Income in retirement is becoming more and more important. With the

breakup of the joint family system and the increase in longevity, it is

becoming more and more important to provide for retirement. The fall

in the interest rates and the uncertainty prevailing in the market make

pensions more attractive. Pension can provide a guaranteed income till

death and hence there is a renewed interest in pension schemes in the

recent years.

It is important that the person plans for his retirement. The

planning should start early so that the person contributes lesser

amounts and there is time for the fund to grow. For retirement there is

only one option for the person and that is to save. One cannot raise a

loan for retirement.

There are various instruments of savings and investment, which

the client can use to provide for his retirement. A deferred pension

plan has the following advantages:

I. The deferred pension plan can be issued for long terms so that

the single instrument covers the retirement need of the client.

II. The deferred pension plan automatically vests in the life assured

on the date of vesting. This is an advantage as the likelihood that

the fund would be used for some other purposes is minimized

and fund would be used only for retirement.

III. Special tax benefits are available for investment in deferred

pension plans.

Features of the Personal Pension Plan


56 56


57/92

1.Benefits:


during the term of the contract the following amount would

be payable:

i. In the event of the death of the life assured in the

first year then 90% of the premium paid would be

payable in case of single premium policies and 80%

of the premium paid would be payable in case of

regular premium policies.

ii. In the event of the life assured after the first year

Sum assured plus reversionary bonus

attached would be payable under single

premium policies.

Lower of the sum assured plus reversionary

bonus and return of premium paid withinterest of 8% is payable, under regular

premium policies.

b) Benefits at Vesting: On the vesting date, provided the

policy is in full force the Notional Cash Value (NCV) would

be used to pay the following:

i. Cash lump sum to the extent permitted by theregulations at the time of vesting. The policyholder

may choose either to take the cash lump sum or use

the full NCV to purchase an annuity.

57 57


58/92

ii. Purchase of an immediate annuity as per the choice

of the policyholder. In case the policyholder has

opted for the cash lump sum the balance NCV would

be used to purchase the annuity. In case thepolicyholder has not opted for the cash lump sum

then the full NCV would be used to purchase the

annuity.

c) Paid up Benefits: In case the policyholder discontinues



policy. The reduced paid up benefits would form the

Notional Cash Value on the date of vesting of the policy.

The paid up policy will not participate in future bonuses.

d) Surrender Benefits: The policyholder can surrender the






surrender value.


The policyholder can choose to pay single premium or regular

premium by yearly, half-yearly or quarterly mode. The frequency

of premium payment can be altered during the term of the

contract.

3.Days of grace:

58 58


59/92




end on a holiday then the premium has to be paid on the nextworking day.

4.Lapsation:






A lapsed policy can be reinstated within one year from the date

of lapse only.

5.Minimum premium:


Personal Pension Plan.

Single Premium Rs. 25000




6. Maximum premium:

Single Premium Rs. 50,00,000

Annual mode Rs. 50,00,000

Half yearly mode Rs. 25,00,000

Quarterly mode Rs. 12,50,0



59 59


60/92




Minimum Vesting Age 50 yearsMaximum Vesting Age 70 years


to 40 years, subject to the minimum and maximum vesting age.

8. Policy loans:


9.Life cover basis:The Personal Pension Plan can be offered on a single life basis

only.

10. Tax benefits:

The premium paid under the plan qualifies for tax deductions

under section 80CCC of the Income Tax Act 1961.

The cash lump sum received at the date of vesting is tax free

under section 1010a (iii) of the Income Tax Act 1961.

UNIT LINKED INSURANCE PRODUCTS

(ULIP)

60 60


61/92

61 61

ULIP, AN INSURANCE PRODUCT WITH A TWO-IN-

ONE FEATURE, IS DESIGNED TO CARRY BENEFITS

OF BOTH, AN INSURANCE COVER AS WELL AS

MARKET RELATED INVESTMENT RETURNS...

A Unit Linked Insurance

Popularly Known as ULIP, is

of an insurance and invest

product. It combines a life c

with an investment plan,

unlike a traditional plan m

back or endowment

investment returns are

guaranteed in the case of ULI

ULIP, by its nature, is not a product that is meant to maxim

returns like equity investments either directly or thro


62/92

ULIP plan (Unit Linked Insurance Plan)

Premium

Life Insurance Investment

Combinat

-ionEquityDebt


63/92

SWOT ANALYSIS

63

STRENGTH

Country Wide

Recognition

Need Base

Analysis

Same Standard

Services in allBranches

Fair Deal in allTransactions

Customers

CentricApproach

THREAT

LICs Brand Name

People of Jaipur prefer

short-term investment

rather than in insurance

Upcoming private insurance

companies.

STRENGTH

Country Wide Recognition

Need Base AnalysisSame Standard Services in

all Branches

Fair Deal in all Transactions

Customers Centric

Approach

Infrastructure

OPPORTUNITY

Scope in Jaipur as it is in the

developing phase

Only 25% of insurable

people have any insurance

Higher possibility of growth

in Indian share Market

WEEKNESS

Frequent Job Rotation

Less number of

advertisements

Hidden Charges

STRENGTH

Country Wide

Recognition

Need Base

Analysis

Same Standard



Customers

CentricApproach


64/92

Research Methodology

In order to conduct the study, the methodology has to be

decided. The description of the problem and our objectives will help

us determine the methodology to be adopted. As seen from the

problem description, the area of study is a previously unexplored

area, so the concepts, definitions, opinions etc. are unformed. We

have to understand the customer and markets without any sort of

prior assumptions, so we do not know what information, conclusions

we will obtain from this research. We have started of with a basic

assumption that some variables are relevant to the study, but we

are no means sure as to whether they are relevant or not or how

relevant they are and what should be the importance of each of the

variable. Thus this research is an exploratory research into a

previously uncharted area. The reasons for its exploratory nature

can be summarized as follows:

Need to create concepts and definitions about markets,

customers etc. so that they can be further investigated into

Area of study is new, previously unexplored and information is

vague

Hypotheses are not available, they have to be formed based on

this study

Given the exploratory nature of the research, should we employ a

qualitative or quantitative research methodology? Before deciding that,

let us revisit our tasks. We have to obtain information about variables

such as attitude, motivation, and influence of family etc. of the

64


65/92

customers, without having any preconceptions about any of these

issues.

A quantitative study will help us give a measure of variables

previously defined and may also help us decide their priorities with

respect to each other given we understand how each variable affects

the subject. But neither do we have definitions in the context of these

variables, nor do we know how each variable affects the subject. In

short, the only things we are sure of is the presence of some variables

and have tentatively decided on some particular variables, but wehave no way of knowing whether, these variables indeed affect the

subject and the nature of their influence. A quantitative study will not

therefore serve our purpose. We have adopted a qualitative

methodology.

There are several instruments for conducting a qualitative study,

and this research used some of them like in-depth interviews and

impromptu focus groups (rather than pre-decided focus groups),

subject observation. In in-depth interviews, there were conversations

with the subjects wherever they are conveniently available. The focus

was on determining what sort of attitudes etc. the people generally

have and how important it is for the brand image, rather than how

many people hold particular attitudes.

A look at the Interview Guides will give an idea of the information

areas sought before the data collection. Separate interview guide is

created for each of the above given respondent type. Interview guide

for each of them is given later in the project report in the sample

questionnaire section.

RESEARCH DESIGN-

65


66/92

The study was a mix of exploratory & descriptive type and I hope

that it provides for some help to the investors & corporate houses

related to these industries.

SAMPLE SIZE

100 person of Jaipur formed the sample for the survey.

SAMPLE METHOD

A quota sampling technique was employed with 60

samples collected from the business class & 60 from the service

class. Further bifurcations were on the basis of age, where 25 in

each sample belonged to an age less than 30 and rest over 30.

DATA COLLECTION

In attempt to attain the above said objective, our studyneeded to collect data from various sources. It includes data

mostly from secondary sources like the company brochures,

journals, newspaper articles, the Internet, etc.

Also, primary data has been collected by way of meeting some

key people belonging to the concerned industries. A survey has

also been conducted so as to acquire the views of the person

regarding their loan preferences and to extract the factors that

the consider.

Data analysis

66


67/92

Age wise distribution

1. Have you heard about

insurance contract.

Yes No Cant

say

65 30 05

20 to 35 yrs. 35%

35 to 50 yrs. 45%

50 and above 20%

67


68/92

65

30

5

0

10

20

30

40

50

60

70

1

Yes No Cant say

2) Do you know about HDFC-

SL?

Yes No Cant say

50 35 1568


69/92

50

35

15

0

10

20

30

40

50

60

1

yes No Cant say

3. Does any insurancecompany insure you?

69


70/92

Yes No Cant

say

30 55 05

30

55

5

0

10

20

30

40

50

60

1

yes No Cant say

70


71/92

4) Have you heard the word

ULIP plans?

Yes No Cant say

65 32 03

65

32

3

0

10

20

30

40

50

60

70

1

Yes No Can'say

71


72/92

5) Do you think its good

against loss?

Yes No Cant say

80 35 05

72


73/92

80

35

5

0

10

20

30

40

50

60

70

80

90

1

Yes No Can'say

5). Do you want insurance and

investment plans if we provide

you?

Yes No Cant say

75 20 0573


74/92

75

20

5

0

10

20

30

40

50

60

70

80

1

Yes No Can'say

6) Which company you prefer if

you want to insured?

A) HDFC-SL 2) ICICI 3) LIC

74


75/92

65 20 15

65

20

15

0

10

20

30

40

50

60

70

1

HDFC ICICI LIC

7) Do you invest in general

insurance?

Yes No Cant say75


76/92

50 40 10

50

40

10

0

10

20

30

40

50

60

1

yes No Can't say

76


77/92

8) Do you think that insurance

contract help a person whole

life?

Yes No Cant say

60 35 05

60

35

5

0

10

20

30

40

50

60

70

1

yes No Can't say

77


78/92

9) Do you invest in our

company if we provide

insurance and investment?

Yes No Cant say

80 15 05

78


79/92

80

15

5

0

10

20

30

40

50

60

70

80

90

1

yes No Can't say

10) In which plan you

invest?

A) Childrens plans

B) Pension plans

C) Whole life plans

D) Term assurance plans

79


80/92

15

20

35

30

0

5

10

15

20

25

30

35

40

1

Childrens plans Pension plans Whole life plan Term assurance plan

Analysis and interpretation

Analysis of the Study

The investment in Unit Linked Products is a new trendintroduced in India with various Insurance Companies into

this segment. This feature is rapidly growing in the Indian

Market. Today, various investment options available in the

80


81/92

market. The study explains that how people of Jaipur invest

their income. The following diagram explains it very well.

The study has shown that people of Jaipur are much

interested in investing in Mutual Funds and Shares than

Insurance. This is because of people are interested in short-

term investment. But it is assumed by the studies that in

upcoming years this rate of investment in insurance will

increase rapidly.

Among 17 insurance Companies including LIC, the

HDFC Standard Life Company has placed its position onpinnacle. Each Company has the Unit Linked Product in its

portfolio. But HDFCs Unit Linked Products are customer

centric and having special features. HDFCs services are

81

30%

25%30%

15%Mutual Fund

Insurance

Shares

Others


82/92

highly appreciable among insurance companies apart from

its brand name.

HDFC Standard Life Insurance Company is leading the

market in the Returns giving to its customers. All its

competitors are behind in the aspect of Returns. Here in this

given chart, it is shown that how HDFC Standard Life

Insurance Company is ahead from other life insurance

companies.

0

10

20

30

40

50

HDFC SL Tata AIG ICICI

Pru

Aviva

Life

1-YEAR

2-YEAR

From the above survey it is clear that insurance is a growing

Sector, which is very well growing in today scenario. Above

survey told us that most of people want to invest in

insurance sector to earn maximum profit.

Jaipuriest know that ULIP plans provide us investment

and insurance opportunities. This type of plan is very popular

82


83/92

in present time. The survey gives information that people

must invest for a long time to earn profits.

Graph which show that we have to invest long term-

We should invest for long term or short

term?

0

10

20

30

40

50

60

70

80

90

100

1

Yes No Can't say

HDFC SL provides ULIP to its customer with special benefitswith minimum charges. The Policy Administration Charge

and Fund Management Charge is Rs. 20/- and 0.80%

respectively, which are minimum in their category

83


84/92


85/92

1. In HDFC SL I feel that Insurance sector is one of the

most growing sectors among all sectors in India.

2. I also find that HDFC Standard Lifes Traditional Plansare very useful for a normal person.

3. Jaipur is one of the most growing city and there is lot ofscope of insurance.

4. Most of the people are aware of traditional plans.

5. Electronic media has proved to be very beneficial forpeople to understand about the insurance.

6. There is lot of opportunities for young and energeticpeople in HDFC SL to build there sound career.

7. HDFC Standard Lifes traditional plans like children plan,

one of the most popular product of the company.

SUGESSTIONS:

1) Use of creative advertisements to attract more and

more target customers and to create awareness among

them.

85


86/92

2) HDFC SL should chalk out some programs to create

general awareness regarding its presence and various

services of the company.

3) Today is the era of competition. In order to increase the

company network (In terms of clients and business

volumes) an aggressive approach is required.

4) HDFC SL should try to make its promotional activitiesmore effectively.

5) HDFC Standard Life Company should regularly conduct

market research and surveys for knowing customers

better and for facing threat from competitors

CONCLUSION

HDFC is the leading insurance service providers to public

and private sector. HDFC Standard Life is the first private

insurance company, which got license in 2000 from IRDA.

Life Insurance in India has a huge potential for growth.

Statistics reveal that only 25% of the insurable population

in India is insured. And those insured are in need of still

higher insurance cover. The cover 100% growth displayed

86

STRENGTH

Country Wide

Recognition

Need Base

Analysis

Same Standard



Customers

CentricApproach


87/92

by private life insurers indicates this huge untapped

potential.

Traditional plans like children plan gives invaluable

support to your child, Term Assurance Plan gives help

secure your family financial needs, Money Back Plan gives

a wide range of terms and cash benefit schedules to

choose from, Personal Pension Plan is designed to provide

a post retirement income for life with the freedom to

choose the retirement date, Single Premium Whole of Life

Insurance Plan is a tailor-made plan well suited to meet

your long-term investment needs, Endowment Assurance

Plan is designed to provide a solution to the long term

financial needs, Loan Cover Term Assurance Plan is

designed to cover outstanding loans at the least possible

cost.

At last we can conclude that HDFC SL provides best

solutions to its customers by giving them best value of

their money.

QUESTIONAIRE FOR DATA COLLECTION

Dear Respondent, your valuable time and effort in filling thisquestionnaire are highly appreciated. The information collectedthrough this questionnaire will be used for academic purpose only.

Personal Details

Name Occupation

87


88/92

Age Monthly income

Gender Contact No.

1.In which insurance company you areinsured ? Tick them. If you have more thanone, tick both of them.

Life Insurance Corporation

HDFC-SL

Icici-Podential

Others

2.How much risk you can tolerate?

High

Moderate

Low

3.What are the benefits you look forward

from a life insurance policy?

Tax saving

Investment

Security

4.In life insurance which type of plans youinvest your money? if more than one youcan tick both of them?

Whole life plan

88


89/92

Term plan

One time insurance

ULIP

5.What is the feature you give mostimportance before choosing any lifeinsurance policy?

Premium

Tenure

Maturity value

Tax benefit

6.Why do you invest in ULIP Plans of a

company?

Higher returns

Short term investment

Both

7.Which of the schemes you give importance

while insuring in company?

Single premium Whole life plan schemes

Term Assurance schemes

Children Schemes

Pension schemes

89


90/92

8.What is the feature you give most

importance while investing in fixed

deposits?

Safety

Assured returns

Tax benefits

9.Do you invest in general insurance?

Yes

No

10. For what you have ad

Documents

sumit ammendmation hdfc