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A

PROJECT REPORT

ON

CUSTOMERS PERCEPTION TOWARDS HDFC STANDARD LIFE

SUBMITTED BY

ABHISHEK PADHI

PGPM/09-11/04

ASIAN SCHOOL OF BUSINESS MANAGEMENT

BHUBANESWAR

CERTIFICATE FROM THE INTERNAL GUIDE

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This is to certify that the work entitled Customers perception towards HDFC Standard life

with special reference to HDFC Standard life insurance company Ltd and its various innovative

plans is a piece of term project done by Abhishek Padhi, a student of PGPM 1 st year bearing Roll

No. PGPM/09-11/04 has successfully completed his summer internship programme under my

guidance and supervision for partial fulfillment of PGPM curriculum of ASIAN SCHOOL OF

BUSINESS MANAGEMENT, BHUBANESWAR.

To the best of my knowledge and belief the term project report:

1. Embodies the work of the candidate himself.

2. Has been duly completed.

3. Is up to the standard both in respect to contents and language for being referred to the

examiner.

I wish him all the best for his future.

Prof. Rohit Prashar

Internal guide

DECLARATION

I here by declare that the report customers perception towards HDFC Standard life is a

bonafied record of the work done by me at HDFC Standard life at Cuttack new towards the

practical fulfillment of requirement for degree in post graduate programme in management

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master of business administration under the supervision and guidance of Prof. Rohit Prashar and

Mrs. Smita Bhuyan (Branch Manager HDFCSL, Cuttack new) and this project report have not

been submitted any where else previously for award of any degree.

Place:

Date:

ABHISHEK PADHI

PREFACE

Private life insurers in the country are lucky that the recent SEBI ban on unit-linked insurance

plans (ULIPs) was cancelled. They would have lost almost half their businesses if the market

regulators ban on 14 insurers from raising funds through the investment-cum-insuranceproduct.

That is because Ulips constitute 46% of the total business in the life insurance space. Ulip has

taken a prominent place in the global insurance market and India is not far behind. It has become

the growth engine over the years in the Indian insurance market.

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Of Rs 2,00,000 crore-plus life insurance premium collected in the first 11 months of 2009-10, a

little over Rs 91,000 crore came from Ulips, according to the Life Insurance Council of India, an

industry body representing 23 life insurers.

Premium collection from renewal of Ulips registered a 33% year-on-year jump in the April-

February period to Rs 46,927 crore, showing that majority of the consumers are banking on

Ulips for better long-term return.

The perception of Ulip has changed over the years. It was initially perceived as a short-term

product; now, people consider it more as a long-term investment tool.

Insurance firms also mopped up Rs 44,462 crore as new Ulip premium in the 11 months, up

17% from Rs 37,948 crore a year earlier.

Ulips are the biggest products for private insurers who derive 70-80% of their premium

collection from its sale.

The countrys largest life insurer, the state-owned Life Insurance Corporation derives a little

more than half of its total new premium collection from Ulips.

There has been significant rise in the Ulip renewal premium collection since 2007 and that goes

on to show that there is a huge appetite for the products. The appetite for Ulip products is

unlikely to go down even as the controversy erupted as people are bothered about their long-term

returns.

Ref: http://theeconomictimes.com

ACKNOWLEDGEMENT

Summer internship programme is an aim to give practical orientation to the student, to provide

an opportunity and to try and relate the theoretical aspect to the actual challenges in the industry.

However, it goes with saying that proper guidance from experts will broaden the horizon of

knowledge.

Thus, success of any work would be incomplete unless I mention of the people, who made it

possible by spending their valuable time and knowledge with me. I consider it as a privilege to

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express through a paper of this report a few words of gratitude and respect that inspired me in

my training.

I express my deep sense of gratitude to Mrs. Smita Bhuyan (Branch Manager HDFCSLIC) forher guidance and kind support without which the study would not have been possible.

I also express my deep sense of gratitude to Prof. Rohit Prashar for his kind support in bringing

out this project report.

Lastly I would like to thank all my friends for extending their cooperation to me in presenting

this report.

ABHISHEK PADHI

EXECUTIVE SUMMARY

I did my summer internship programme (SIP) with HDFC Standard life (HDFCSL) from 14 th

April to 5thJune.

During my summer training in the Housing Development FinanceCorporation Standard Life

insurance company limited (HDFCSL) I got enormous opportunity to learn so many aspects of

insurance sector. The job assigned to me was to analyze the customer perception towards the

company.

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My SIP was divided into two parts 1st was customers interface of company and 2nd was research

work.

Profile:This project Customers perception towards HDFC Standard life was a study of several

ULIPs(unit link insurance plan). This study helped me to understand the perception and mind set

of people while doing investment in different plans. This analysis helped the company to

understand its market share of its product. This analysis focused some light on product

innovation regarding ULIPs.

Reporting: I reported to Mrs. Smita Bhuyan Branch Manager of HDFC Standard life insurance

company, Cuttack new on 14thApril.

Team contribution: This was individual effort but some of other members of the company and

my friends helped me a lot.

Learning during SIP: I learned a lot during my project. Firstly it provided me needed

corporate exposure (working with team, business communication, prioritizing work). In the first

part I learned, how to come across with customers and how to convince them for the product of

the company.

Introduction

HDFCSL is one of Indias leading private insurance companies.It offers

both individual and group insurance solution. It is a joint

venturebetween HDFC and a group of company of Standard Life. I have

choseninsurance sector as the place for summer training because in

these days this sector is in boom and it will never go down. All peopleinvest their money in insurance and get more benefited. In the sector the

work of marketing is more challenging than the other sector because

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there are 23insurance companies in the market who are giving

competition to each other and the work of convince people for

investment in respective company is achallenging work and success in

the sector proves that the respective personis a good marketer. Todayinsurance sector India is on boom because allpeople want to invest.

Those who dont know about investment in sharemarket and dont want

to invest in mutual funds they invest in insurancesector. Insurance

sector gives them investment plus risk cover. Those whodont want to

take risk in the investment go to insurance sector. It also givesincome

tax benefits to the peoples. Insurance company are now launchingULIP

plan and gives chance to the investor to choose their investmentpatternaccording to their fund investment table(this table is included in

theproduct information of the product of HDFC Standard life). This

fundinvestment tells us that how much the investor want to take risk.

Generallyin the ULIP plan, the thesis is that The more you risk the

more you haveprofit.

REVIEW OF LITERATURE

Client: HDFC Standard Life Insurance

Brand: HDFC Standard Life Insurance (corporate)

Agency: Leo Burnett

Medium: Television

HDFC Standard Lifes new campaign, featuring Rajasthan Royals players - Shane Warne, Yusuf

Pathan, Munaf Patel, Kamran Khan, and Swapnil Asnodkar - promotes and propagates Self

Respect via its Sar utha ke jiyo proposition. The campaign captures the essence of self belief,

pride, and confidence through a journey of the life of these players and depicts how these players

have been able to achieve success despite all odds.

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The Brief:

Sanjay Tripathy, Executive Vice President and Head - Marketing, HDFC Standard Life,

explained, Our association with Rajasthan Royals is aimed at bringing to the fore our common

values self respect or living life with head held high. The campaign is a natural outcome of our

effort in propagating the values of self pride, confidence, and self belief.

Commenting on the campaign, Rupesh Kashyap, Creative Director, Leo Burnett, said, When

we started working on this brief, we had not one or two challenges, but almost four challenges.

First challenge was to bring out a personal story or experience about the cricketers, which they

knew it better than anybody. Second challenge was to make them feel comfortable, because they

were going to share their personal story with the world for the first time. Third was to shoot five

individual films within five hours. And the fourth challenge was to make them act. Wow! We

did it and how.

The Execution:

The primary task for the communication was to extend the brand philosophy of self respect and

pride (Sar utha ke jiyo) to cricket. The idea came from the observation that some determined

individuals overcome all odds to achieve success. Where others see adversity and despair, they

see a challenge and hope. They strive and they struggle to reach their chosen goal, and thus,

earn their pride. Drawing inspiration from such extraordinary people, HDFC Standard Life

exhorts us to Play with pride and live with pride (Sar utha ke Khelo, Sar utha ke jiyo).

Final Product:

The campaign captures the essence of self belief, pride, and confidence through a journey of the

life of these players and depicts how these players have been able to achieve success despite all

odds. The video blends the common values (to both HDFC Standard Life and Rajasthan Royals)

self respect with each of the success stories of these players.

HDFC Standard Lifes new campaign takes slice of life instances where the players have strived

against all odds to succeed in their passion to play cricket. Each of them has overcome all

hurdles and challenges that life has thrown at them, but they never gave up hope. They havealways believed in themselves and their ability and arrive at this point of their lives without

depending on anybody else a true moment of pride. The HDFC Standard Life communication

captures these moments in the players lives and salutes this spirit through this campaign.

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NEED OF THE STUDY

The project was an attempt to explore the customer perceptionof HDFCSL in Cuttack. The

project was started on 14thApril, after knowing all the relevant information about the

companyinsurance product and policies and its competitors insurance products inaccordancewith the prescribed schedule mentioned by management of HDFCSL.The project started in

Cuttack, Bhubaneswar and Bhawanipatna region covering the local market. Inthis process I met

60 persons to collect information about HDFCSL. I collected information for the company by

questionnaire method I met 50 persons to recruit them as a financial consultant. Ihave tried to

recruit FC by meeting them personally. Duringmy work I found the perception of the people

about insurance, what theydesire from it, and if they will work as financial consultant than what

theywant from the organization.

SCOPE OF STUDYDuring the summer training I have done my work through telephone calls, questionnaire, and

contacting persons by going to their home. In the entirework I have contacted person who is a

student, person who is working in the organization and visited different colleges.I found that

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most of person can join insurance company for savingtaxes, unlimited earning, life time earning

with little effort, which will givehim back support as a HEAD of the family in the diverse

situation.This project will help to understand the current market scenario andmarketing in stiff

competition. Being a student of management I can drawthe relevant conclusion from the market

survey and give the appropriatesuggestion to the organization.The company can take decision

according to the suggestions and itwill provide better experience to the students for their bright

carrier. Myproject will provide help in these matters which are thus:-

Analyze the people perception about HDFCSL.

To enhance the distribution channel in the selling of insurance

Policies.

To find out the competitive edge of the company over the

Competitors.

ABOUT HDFSLIC

HDFCstands for Housing Development Finance CorporationIt was

incorporated in 1977 as a public limitedcompany with the specialization

in provision of housing finance toindividuals cooperative societies andthe corporate sector. One significantmatter about the HDFC is that it is

first private sector retail housing financecompany and it is listed on

both BSE and NSE.

Standard life insurance was founded in 1825. Standard life

wasreincorporated as a mutual assurance company in 1925. Its largestmutuallife insurance company in Europe.For the joint venture between

HDFC and SLIC, the discussioncommenced in January 1995 and the

agreement signed in October 1995.Further joint venture agreement

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renewed in October 1998. In January 2000the life insurance project

team established in Mumbai. At last the companyofficially incorporated

in 14th August 2000. It is the matter of great happiness for HDFCSLIC

is that it is the first private sector life insurance company to be granteda certificate of registration in 23rd October, 2000. Today 75%

shareholding in the hand of HDFC and Standard life has 25%

shareholding in this joint venture.

COMPANY PROFILE

When we talk about company profile then HDFC standard life insurance company is targeting

insurance sector. It is launching various type of insurance plan and product which is enticing

people to buy its plan. As a insurance company it focus mainly in selling its products and

recruitment of financial consultant and the whole company based on it because the main aim of

company is to get business and sell lots of policies and this work is done by financial consultant.

HDFC Standard Life Vision and Values

Vision of HDFCSL

The most successful and admired life insurance company, which mean that we are the most

trusted company, the easiest to deal with, offer the bestvalue for money, and set the standards in

the industry. In short, The mostobvious choice for allFor retention in the market and highestmarket share; we need trustof our customer. The customer should trust on our policies,

services,employees and they should be friendly with us. It wants to live in the eye andheart of

the customer. It wants to give them the easiest deal so that they can understand the terms and

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policies. As we know that profit is the main aimof any business but it think not only about his

profit but also profit of thecustomer. It wants to be the choice of all people on the basis of trust

ofcustomer, delivering high value to the customer, and deliver of best value of the money.

Value that will be observed while we work with HDFCSL.

1. Integrity

HDFCSL believes in honest and trustfulness in every action. Transparencyin dealing with

customers. It is stick to principles irrespective of outcome. When we work in HDFCSL then we

observed that its rules and activity of every person in the organization is just and fair to

everyone. Integrity is the bedrock on which the company and the expectations of the customers

and employees are built. Integrity gives inner feeling to both customer and the employees to

work with it. It establishes the credibility of the person defines the character and empowers one

to do justice to the job. It enables confidence and trust, achieving transparency and laying a

strong foundation for a binding relationship. It guides principle for all walks of life.

2. Innovation

It is the process of building a store house of treasures through experiences.Lots of product is

going to be launched by the competitors. So it is veryimportant to look every product and

process through fresh eyes every day. Itis the significant part of the business that attracts

customer.Innovation is essential to exceed customer expectation and maximizecustomer

retention because it is the sector of investment so you need tofulfill the customer expectation

which help you to retain customer.Innovation helps to achieve competitive advantage. It

promotes growth andupgrade standards in the industry. It fosters creativity amongst

employeesand partners. It opens a world of new possibilities because it brings newconcept which

helps to entice the customer.

3. Customer centric

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Customer becomes the main properties of any organization. Whatever workdone by the

organization runs around the expectations of the customer.Customer becomes centre point of the

organization and the main focus ofthe organization becomes to understand his expectations by

keeping him asthe Centre point. It gives more focus on customer activity and saying. It triesto

understand customer needs and deliver solutions. As we know that themarket is changed. Lots of

competitors is here who search chance toincrease their market share and entice your customer so

customer interestbecome always supreme.

4. People Care

Genuinely try to understand those people who are working with HDFCSL. It guides their

development through training and support. It helps them to develop their requisite their skills so

that they can reach their true potential. It tries to know them on a personal front because it works

as a performance appraisal. It try to create an environment of trust and openness so that all

people who are working here behave friendly and helps to each other because team work is most

important for getting success and give respect for the time of others. People are the most

valuable assets of the company so it tries to motivate individual to give his/her best. It wants to

establish a valuable relationship with them to create a joyful working environment. Themostimportant thing is that it tries to provide job satisfaction for their people.

5. Team work One for all and all for one

Here whole team takes the ownership of the deliverables. It consults all involved in the work and

tries to understand their opinion and then arrive at a common objective. There is a cooperation

and support across departmental boundaries. It identifies strengths and weaknesses accordinglyallocate responsibility to achieve common objectives. Team work helps everyone to achieve

more. It adds joy at work place which adds interest in the work and new stamina in the work. It

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generates synergy and provides a focused approach. When an idea or activity performed in a

group, it has greater acceptability. Team work proves one for all and all for one.

6. Joy and simplicity

It believes in joy and simplicity so that people in the organization will bemore dedicated towards

work and they will give more business to theorganization. Work with joy and simplicity brings

creativity and newimagination which also brings new innovative ideas that promotecompetitive

advantage to the organization.

MISSION OF HDFSLIC

We aim to be the top new life insurance company in the market.This does not just mean being

the largest or the most productive company inthe market, rather it is a combination of several

things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

Mile stone of HDFCSL 2008

Received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, theapplications for its financial consultants, providing centralized control over a vast geographical

spread for key business units such as inventory, training, licensing, etc.

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Received the 2008 CIO Bold 100 Award for its mobile workforce portal and the Special 2008

CIO Security Award for a secure computing environment, including identity management

respectively.

Mr. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award.

HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-operative

banks in the rural areas.

Continued to increase its focus on quality service, by putting in place a robust mechanism to

capture Voice of the Customer through service audits across its offices. This was

complemented by use of technology that enabled capture of all interactions with customers

across all touch points.

2007

Sar Utha Ke Jiyo was honoured as Among Indias 60 Glorious Advertising Moments. The

advertisements of the company were ranked 6 th amongst The 10 most effective Advertisements

in September 2007.

Received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking

implementation of an enterprise-wide workflow system. In addition the company also bagged the

EMC storage award for being the most innovative users of storage and storage management.

Pension Plan Tops Mints Survey of Best TV Ads.

HDFC Standard Lifes advertising created high awareness for the brand and bagged 2 silver and

1 bronze awards at the ADFEST 2007 National Awards organized by the Advertising Agencies

Association of India (AAAI). The 3 awards are the highest won by any single brand in the

financial services business (including banking, mutual fund, insurance and other financial

services).

Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according

to a study conducted by the Brand Equity Economic Times, the leading business publication of

India.

2006

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Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according

to a study conducted by the Brand Equity Economic Times, the leading business publication of

India.

The year witnessed the launch of My Account, a web-based facility with various policy

servicing options such as switch, premium redirection to be executed by clients, without recourse

to visiting a branch

As against a regulatory requirement of writing 18% of all policies in rural areas, the company

issued over 1, 21,000 policies accounting for more than 23% of all policies issued during the

year.

The company had been awarded the Intelligent Enterprise Award by the Express Computer

Magazine Part of the Indian Express Group, for investing in workflow and imaging technology

which helped in increasing volumes without affecting service standards.

Was selected as the '4Ps Power Brand 2006', for being one of India's Top 25 'Most Innovative

Companies' in an exclusive survey conducted by ICMR (Indian Council of Market Research)

and 4Ps - Business and Marketing (a Business and Marketing magazine published by Planman

Media).

WHAT IS INSURANCE?

The business of insurance is related to the protection of the economic values of assets. Every

asset has a value. The asset would have been created through the efforts of the owner. The asset

is valuable to the owner, because he expects to get some benefit may be an income or in some

other form. It is a benefit because it meets some of his needs. The benefit may be an income or

in some other form. In the case of a factory or a cow, the product generated by it is sold and

income is generated. In the case of a motor car, it provides comfort and convenience in

transportation. There is no direct income. Both are assets and provide benefits. Every asset is

expected to last for a certain period of time during which it will period of time during which itwill provide the benefits. After that, the benefit may not be available. There is a life-time for a

machine in a factory or a cow or a motor car. None of them will last forever. The owner is aware

of this and he can so manage his affairs that by the end of that period or lifetime, a substitute is

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made available. Thus, he makes sure that the benefit is not lost. However, the asset may get lost

earlier. An accident or some other unfortunate event may destroy it or make it incapable of

giving the benefits. We can classify insurance in these terms:-

It is a system, by which the losses suffered by a few are spread over many,exposed to

similar risks.

Insurance is a protection against financial loss arising on the happening ofan unexpected

event.

It is essential that:

The calamity is either natural or unexpected

The insured person does not gain out of this arrangement

SCOPE OF INSURANCE

We all know that assets are insured, because they are likely to be destroyed or made

nonfunctional before the expected life time, through accident occurrences. Such possible

occurrences are called perils. Perils are the events. Risks are the consequential losses or

damages. The risk to an owner of a building may be a few lakhs or a few crores of rupees,

depending on the cost of building, the contents in it and the extent of damage. The risk

onlymeans that there is a possibility of loss or damage. Insurance is done againstthe possibility

that the damage may happen. There has to be an uncertaintyabout the risk. The word

possibility implies uncertainty. Insurance isrelevant only if there are uncertainties.Insurance

does not protect the asset. It does not prevent its loss due tothe peril. The peril cannot be avoided

through insurance. The risk cansometimes be avoided, through better safety and damage control

measures.It only tries to reduce the impact of the risk on the owner of the asset andthose who

depend on that asset. They are the ones who benefit from theasset and therefore, would lose,

when the asset is damaged. Insurancecompensates for the losses- and that too, not fully.In

conclusion we can say that the scope of insurance is very broadand specific because it reduces

the losses and risk of owner of the assets dueto perils. It also gives supports to the person in the

period of adversesituation. It insured economic consequences. When a person saves, theamount

of funds available at any time is equal to the amount of money setaside in past, plus interest.Insurance has no substitute and one more thingabout the insurance is that this is not similar to a

hire purchase scheme. Inthe event of death, the balance installments are not excused. They have

to bepaid by the surviving family. There is a tax benefits, both in income tax and in capital gains.

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Marketability and liquidity are better. Life insurance is notonly the best possible way for family

protection there is no other way. Theterm of life is hard but the terms of insurance are easy.

OBJECTIVES

When we talk about objective of the insurance sector we can divide it intothree categories which

are thus.

Broad Increased coverage of the population

Specific Customer has a wider choice & range of products Service standards to customer

Economic Savings mobilization

In this objective part the first part deals with its market share because it deals with all people

who live in India and it has a broad market potential. So the main motto is to increase and entice

more and more people for insurance. In the second part it deals with innovative plans and

schemes for the wider choice of people and different range of products of its competitors. It tries

to serve its customer with significant way. HDFCSL invest the investment in the share market

through the unit link plans and get and give significant return from the markets and satisfy their

customer.

Insurance history

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INDIAN INSURANCE INDUSTRY:

Insurers

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurers:

General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsurer)

GIC had four subsidary companies, namely ( with effect from Dec'2000, these subsidaries havebeen de-linked from the parent company and made as independent insurance companies.

The Oriental Insurance Company Limited The New India Assurance Company Limited National Insurance Company Limited United India Insurance Company Limited.

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. RegistrationNumber

Date ofReg.

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 Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

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PRODUCT SCOPE

HDFC Standard Life offers a bouquet of insurance solutions to meet every need. The company

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

employees.

For individuals, the company has a range of protection, investment, pension and savings plans

that assist and nurture dreams apart from providing protection. The customers 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 TermInsurance, 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 products of the company are categorized into various sections which are as follows:

1. INDIVIDUAL PRODUCTS

2. GROUP PRODUCTS

3. RURAL PRODUCTS

4. SOCIAL PRODUCTS

TAX BENEFITS

For Individuals, HDFC Standard Life has 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 his life-stage and needs.

For Organizations, HDFC Standard Life has 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.

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Individual Products:

HDFC Children's Plan,

HDFC Endowment Assurance Plan,

HDFC Loan Cover Term Assurance Plan,

HDFC Money Back Plan,

HDFC Personal Pension Plan,

HDFC Single Premium Whole Of Life Plan,

HDFC Term Assurance Plan,

HDFC Unit Linked Endowment,

HDFC Unit Linked Endowment Plus,

HDFC Unit Linked Pension,

HDFC Unit Linked Pension Plus,

HDFC Unit Linked Young Star,

HDFC Unit Linked Young Star Plus

At HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in

mind, varied range of products that customer can choose from to suit all needs. These will help

secure customer future as well as the future of family.

Protection Plans:

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Customer can protect his family against the loss of his income or the burden of a loan in the

event of his unfortunate demise, disability or sickness. These plans offer valuable peace of mind

at a small price.

HDFC Standard Life Protection range includes Term Assurance Plan & Loan Cover Term

Assurance Plan.

Investment Plans:

HDFC Standard Life Single Premium Whole of Life plan is well suited to meet long term

investment needs. HDFC Standard Life provides with attractive long term returns through

regular bonuses.

Pension Plans:

HDFC Standard Life Pension Plans help secure financial independence even after retirement.

Pension range includes Personal Pension Plan, Unit Linked Pension, and Unit Linked Pension

Plus Savings Plans.

Savings Plans:

HDFC Standard Life Savings Plans offer flexible options to build savings for future needs such

as buying a dream home or fulfilling childrens immediate and future needs.

Group Products:

Group Term Insurance,

Group Variable Term Insurance,

Group Unit Linked Plan,

Gratuity Group Unit Linked Plan,

Superannuation Group Unit Linked Plan ,

Leave Encashment

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PRODUCT PORTFOLIO

HDFC offers products as per the life stages of the customers and their respective needs.

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Your insurance need will change as your life does, from starting to work to enjoying your goldenyears and all the stages in between. Each one of these stages may pose a different insurance

need/cover for you. In this section, we have drawn up the basic life stages and help you analyze

various insurance needs accordingly.

LIFE STAGES & NEEDS IN HAT STAGES

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STAGE 1: YOUNG & SINGLE

An important stage where one lays down the foundation of a successful life ahead. Take

advantage of the time and power of compounding to ensure that you build up your dreams. Start

saving early

NEEDS:

Save for Home & Wedding

Tax Planning

Save for Golden Years

STAGE 2: JUST MARRIED

Marriage brings about a significant change. New dreams and new opportunities also bring in

additional responsibilities. While both of you look forward to a happy and secure life, it is

equally important to ensure that eventualities dont come in the way of shaping your dreams.

NEEDS:

Planning for home / securing your home loan liability.

Save for vacation.

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Save for your first child.

STAGE 3: PROUD PARENTS

Once you have children, your need for life insurance is even more. You need to protect your

family from an untoward incident. Ensure your protection umbrella takes into account the future

cost of securing your childs dream. You will want life to go on for your loved ones, and having

enough life insurance is a way to help ensure that.

NEEDS:

Provide for children's education

Safeguarding family against loan liabilities

Savings for post-retirement

STAGE 4: PLANNING FOR RETIREMENT

While you are busy climbing the ladder of success today, it is important for you to take time and

plan for your life after retirement. Having an early start for retirement planning can make a

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significant difference to your savings. Think about your golden years even before you have

reached them. The key is to think ahead and plan well using your time and money.

NEEDS

Provide for regular income post retirement

Immediate Tax benefits

Lead a secure, independent and comfortable life style in your retirement years.

MILESTONES IN THE HISTORY

HDFC is Indias leading housing finance institution and has helped build more than 23, 00,000

houses since its incorporation in 1977.

In Financial Year 2003-04 its assets under management crossed Rs.36000Cr.

As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now

stands at around 1 million depositors.

Rated AAA by CRISIL and ICRA for the 10th consecutive year

Awarded The Economic Times Corporate Citizen of the year Award for its long-standing

commitment to community development.

Presented the Dream Home award for the best housing finance provider in 2004 at the third

Annual Outlook Money Awards

HDFC Standard Life Insurance is the first private life insurance company to be granted a license

by IRDA

Rated as the "Best New Insurer - 2003" by Outlook Money magazine, Indias number 1 personal

finance magazine

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Rated by Business world as Indias Most Respected Private Life Insurance Company in 2004.

Has the highest brand recall, close to 80% (Source: AC Neilson ORG MARG, April 2005)

Has one of the widest branch networks with offices in over 100 cities servicing over 440 towns

2.4 COLLABORATIONS & AFFILIATIONS:

SUBSIDIARY AND ASSOCIATE COMPANIES:

HDFC Bank

HDFC Mutual Fund

HDFC Standard Life Insurance Company

HLSIL

HDFC Chubb General Insurance Company Ltd.

Intelnet Global Services Ltd.

Other Companies Co-Promoted by HDFC

Financial Information with regard to Subsidiary Companies

PRODUCTs OF HDFCSL

As we know that lots of insurance plan are playing in the market of different companies.

HDCFSL has launched various insurance plans which based on unit link plan. It invests the

investment of his consumer in bank deposits,Government securities and Bonds, and Equity. Thepercentage of theseinvestments in these plans depends upon the consumer whether he wants

totake more risk and more return or less risk or less return. It has launchedseveral insurance

plans which are thus given below:-

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1. Unit link pension plan

2. Unit linked pension plus

3. Unit linked enhanced life protection II

4. Unit linked young star plus II

5. Endowment assurance plan

6. Children plan

7. Money back plan

8. Single premium whole of life plan

9. Personal pension plan

10. Saving assurance plan

11. Assure plan

1. Unit linked Young Star plus II

As a parent, your priority is your childrens future and being able to meettheir dreams and

aspiration. Today, we need more money for providing a good education, establishing a

professional career or even a modest weddingbecause these are expensive. Costs are increasing

fast. Just imagine howmuch we need when our children take these important steps in life when

institute like IIM is increasing their fees for education by leaps and bound.This plan ensures us a

bright future for your children. It makes yourchild able to lead a life of respect and dignity with a

secured financial future.Benefits of this planThe HDFC unit linked Young star Plus II gives us:

Valuable protection to your child in case you are not around.

An outstanding investment opportunity by providing a choice of thoroughlyresearched

and selected investments.

Regular loyalty units to boost your fund value every year.

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Flexible benefit combinations and premium payment options.

Flexible additional benefit options such as critical illness cover.

Flexible benefit payment preferences- Double and Triple Benefit.

Four steps to your own plan.

Step1) IN this policy you will continue to pay each year of the policy. Youcan pay monthly,

half-yearly or annually. The minimum regular premium isRs. 15,000 per year for annual and half

yearly policies. For monthly mode,the minimum regular premium is Rs 1500 per month.

Step2) we can choose any amount of sum Assured with, a minimum of 5times your chosen annulregular premium and a maximum of 40 times yourchosen annul regular premium.

Step3) it offers a range of valuable protection options to secure the futurefor whole family. In

this policy the customer can choose any one of bothwhich life option (death Benefit) is and life

and health option (death benefit+ critical illness benefit). It offers flexible benefit payment

preference.

2. Unit Linked Enhanced Life Protection II

The massage of this policy is invest in financial security and self respect for you and your

family. In this policy, the investment risk in investmentportfolio is borne by the policyholder.

In our life I try to give the very best toour family and there is no reason why they should not get

the very best inthe future too. This plan gives financially independent, even if you are notaround.

Benefits of this plan

The HDFC Unit Linked Enhanced Life Protection II gives

1) Valuable protection to your family in case you are not around

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2) Increasing insurance cover every year.

3) An outstanding investment opportunity by providing a choice ofthoroughly researched and

select investment. .

4) Flexible premium payment options.

Steps regarding this plan

Step1) Choose your regular premium: - this is the premium you willcontinue to pay each year of

the policy. You can pay monthly, half-yearly orannually. The minimum regular premium is

Rs.15, 000 per year or annualand half yearly policies. For monthly mode, the minimum regular

premiumis Rs. 1500 per month.

Step2) Choose your level of protection: - You can choose any amount ofSum Assured with a. a

minimum of term of your policy/2 times your chosenannul regular premium.And b. a maximum

of 20 times your chosen annual regular premium.In this plan in case of your fortunate demise

duringthe policy term, we will pay the greater of your current Sum assured (less any withdrawals

you had made in the two years before your claim) and yourtotal fund value to your family.

3. Unit Linked Pension Plus

The massage of this plan is living a life of dignity and self respect. It is designed to provide a

retirement income for life with the freedom tomaximize your investment returns. Stride into your

golden years ofretirement with dignity and pride.

Benefits of HDFC Unit Linked Pension Plus

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This plan is giving you some benefits which will help you in the oddsituation. The benefits of

this plan are thus:-

a)An outstanding investment opportunity by providing a choice ofthoroughly researched and

selected investments.

b) Regular loyalty units to boost your fund value every year

c) A post retirement income for life

d) Flexibility to plan your premiums as per your preference.

Steps of your own plan

Step1) Choose your retirement age: - In this plan firstly you have to chooseany age you wish to

retire at (vesting age), between 50 years and 75 years.

Step2) this is the premium you will continue to pay each year to the policy. The minimum

regular premium is Rs 10,000 per year. You can pay monthly(using standing instructions or ecs

mandate), quarterly, half yearly orannually.You may also choose to pay adhoc single premium

Top-up oradditional regular premiums depending on the policy type you have chosenand your

convenience.

Unit Linked Pension. The masses of Unit linked Pension is live a life of dignity and self

respect.Today we are busy climbing the ladder of success and realizing yourdreams. Today, time

is with you. Just take a moment and think. It will makeyou able to continue at the same pace.The

HDFC Unit Linked Pension is an insurance policy that isdesigned to provide a retirement

income for life with the freedom tomaximize your investment returns. Stride into your golden

years ofretirement with dignity and pride.

Benefits of this plan

The HDFC unit linked pension gives you

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a) An outstanding investment opportunity by providing a choice ofthoroughly researched and

selected investments.

b) It gives a post retirement income for life

c) Flexibility to plan your retirement date and

d) Freedom to invest premiums as per your preference

4.Unit Linked Endowment plus II

Its massage is to invest in financial security and self respect for you andyour family in this

policy, the investment risk in investment portfolio isborne by the policy holder.

Benefits of this product

The HDFC unit linked endowment plus II gives

a) A valuable protection to your family in case you are not around.

b) An outstanding investment opportunity by providing a choice of thethoroughlyResearchedand selected investment.

c) Flexible additional benefit options such as critical illness cover.

Simple steps for this product

Step1) choose your regular premium: - this is the premium you will continueto pay each year of

the policy. You can pay monthly, half-yearly orannually. The minimum regular premium is Rs

15,000 per year for annualand half yearly policies. For monthly mode, the minimum regular

premiumis Rs.1, 500 per month.You may also choose to pay adhoc single premium top-up

oradditional regular premiums depending on your convenience.

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Step2) You can choose any amount of sum Assured with:

a minimum of (the term of your policy/2) times your chosen annual regularpremium.

A maximum of 40 times your chosen annual regular premium.

Step3) Choose additional plan benefits: - it offer a range of valuableprotection options to secure

the future for your family

Life option - Death Benefit

Extra Life option - death benefit + accidental Death benefit

Life and health option - Death benefit + critical illness benefit

Extra life and health option - Death benefit + critical illness benefit+ Accidental Death benefit.

Benefit types Summary

Death Benefit

We will pay the greater of your sumassured (less any withdrawals youhave made in the two year

beforeyour claim) and your total fund valueto your family.The policy will terminate.

Critical illness benefit

We will pay the greater of your sumassured (less any withdrawals youhave made in the two year

beforeyour claim) and your total fund valueto your family.The policy will terminate.

Accidental Death Benefit.

In addition to the death benefit, wewill pay a further sum assured toyour family.The policywillterminate.

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CHOOSE YOUR INVESTMENT FUNDS

The most significant part of the Unit Linked Plan is that investor can choosethe mode of

investment. In this plan the investment risk in your choseninvestment portfolio is borne by the

investor. This means that the premiumsyou pay in this plan are subject to investment risks

associated with thecapital markets. The unit prices of the funds may go up or down,

reflectingchanges in the capital markets.So to balance investors level of risk and return, making

the rightinvestment choice is very important and you are responsible for the choicesyou make.

It has 7 funds that give investor:-

a) The potential for higher but more variable returns over the term of yourpolicy; or

b) The more stable returns with lower long-term potential.

Your investment will buy units in any of the following 7 fundsdesigned to meet your risk

appetite.

Details of funds are given below:-

Funds Asset class Risk and

return ratingMoney

market+

+

Bank

deposit+

++

Govt. security equity

Fund composition

Liquid fund 100% 100% ---------- ------------- Low

Stable

managed fund

0-30% 70-100% 70-100% ------------- Low

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Secure

managed fund

0-5% 0-20% 75-100% ------------ Low-

moderate

Defensive

managed fund

0-5% 0-15% 50-85% 15-30% High

Balanced

managed fund

0-5% 0-15% 20-70% 30-60% Very high

Equity

managed fund

0-5% 0-10% 0-40% 60-100% Very high

Growth fund 0-5% -------- ---------- 95-100% Very high

+ note on the funds shows will manage the investment in each fund so thatthe proportion of each

Asset class is always with the ranges. + + showsMoney market instruments. It includes liquid

Mutual Funds, commercialpapers, commercial bills, treasury bills, government securities having

anunexpired maturity up to one year. Bank deposits means deposits issued byany primary dealer

or non Banking and banking financial companyapproved by the reserve by the reserve bank of

India or any other publicfinancial institutions or by Housing Finance Companies approved by

theNational Housing Bank. The past performance of any of the funds is notnecessarily an

indication of future performance. Unit prices can go up anddown. No fund offers an assured

return. The names of the fund it offer underthis plan do not, in any way, indicate the quality of

theplan, its future prospects or returns.

India's best Ulips (Sunil Dhawan, Outlook Money) January 03, 2008

We have toyed with the idea for a long time. Should we rank the unit-linked insurance plans

(Ulips) in the market? The idea is exciting simply because it has never been done in India before.

The idea is good because it allows an investor a handle with which to hold the product. Also, the

idea is very daunting because comparing insurance policies is like trying to unravel a noodle

soup. The more you stir, the more complicated it looks After discussing with the regulator, some

industry leaders and those close to the insurance sector, Outlook Money decided to bite thebullet and get on with the ranking. This is where we realized what an overwhelming task we had

taken on. Just comparing the return figure, as given by net asset value data, would be incorrect

since a financial product is a function of cost and return. The minute we bring in costs,

comparisons became almost impossible to carry out. Unlike the mutual fund product that has a

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very simple cost structure, Ulips carry a greater number of costs (administration and mortality),

in addition to the others.

To cut through the confusion and yet be relevant to you, we took illustrations from all 14 life

insurance companies for their Ulips for ages 30 and 45. We assumed that a 30-year-old was

taking a 20-year policy for an SA of Rs 12.5 lakh, paying an annual premium of Rs 50,000. And

a 45-yearold was taking a 10-year policy for an SA of Rs 7.5 lakh with the same premium (see

How We Did It). Premiums are paid throughout the term. We also assumed that only the growth,

or the fund with up to 100 per cent equity allocation, is chosen. Left with only nine companies,

we looked at Type-I and Type-II policies. A Type-I policy just gives the higher of the sum

assured or the fund value, making the policy buyer extremely vulnerable to a small corpus in

case of an untimely death in the early part of the plan. A Type-II policy gives both the sum

assured and the fund value, and sure, itcosts more too.

RESULT

The winner in the Type-I category is Tata AIG Life's Invest Assure II, which has scored

primarily because its one-year return, at 72 per cent, was way above the benchmark return of 53

per cent of the BSE Sensex. This despite the fact that it has a fund management charge of 1.75

per cent, more than double the 0.8 per cent that HDFC Standard Life charges. In fact, HDFC

Standard Life has done very well on the cost parameter. The insurer is clearly the lowest cost

one in our examples, but has lost out due to underperformance over the time period. At returns of

42.7 per cent, HDFC Standard Life has underperformed the benchmark by about 10 percentage

points. In fact, Tata and Bharti have outperformed the index by 10 percentage points or more.

Four companies were unable to beat the benchmark over a one-year period. In Type-II policies,

there is much less competition, with just six companies in the fray. Kotak Life's Platinum

Advantage is the winner and has a nice mix of lower costs and decent returns. It has consistently

outperformed the benchmark.

Early exit options-

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The Ulip product works over the long term. The earlier the exit, the worse off is the investor

since he ends up redeeming a high-front-load product andis then encouraged to move into

another higher cost product at that stage. Anearly exit also takes away the benefit of

compounding from him.

An early exit option in a unit-linked plan shows how the product isstructured. We found many

products that clearly encouraged product churnby giving too many zero cost options to get out of

the policy after themandatory holding period was over. There are others, like the plans

fromMetLife, which encourage a longer holding term.

Creeping costs-

Since the investors are now more aware than before and have begunto ask for costs, some

companies have found a way to answer that withoutdisclosing too much. People are now asking

how much of the premium willgo to work. There are plans that are able to say 92 per cent will be

invested,that is, will have a front load of just 8 per cent. What they do not say is themuch higher

policy administration cost that is tucked away inside (adjustedfrom the fund value). While most

insurance companies charge an annual feeof about Rs 600 as administration costs, that stay fixed

over time, there areplans that charge this amount, but it grows by as much as 5 per cent a

yearover time. There are others that charge a multiple of this amount and that toogrows.

IRDA (Insurance Regulatory and Development Authority)

The Government of India has enacted the Right to Information Act, 2005which has come into

effect from October 13, 2005. The Right to Informationunder this Act is meant to give to the

citizens of India access to informationunder control of public authorities to promote transparency

andaccountability in these organizations. The Act, under Sections 8 and 9,provides for certain

categories of information to be exempt from disclosure.The Insurance Regulatory and

Development Authority (IRDA) is a publicauthority as defined in the Right to Information Act,

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2005. As such, theInsurance Regulatory and Development Authority are obliged to

provideinformation to members of public in accordance with the provisions of thesaid Act.

Access to the Information held by IRDA

The right to information includes access to the information which is held byor under the control

of any public authority and includes the right to inspectthe work, document, records, taking

notes, extracts or certified copies ofdocuments / records and certified samples of the materials

and obtaininginformation which is also stored in electronic form.

IRDAWebsite

The IRDA maintains an active website. The site is updated regularly and allthe information

released by the IRDA is also simultaneously made availableon the website. The information

published in public domain includes thefollowing:

1.Acts/Regulations

2. Information relating to Insurers/Reinsures, Agents Training Institutes,Appointed Actuaries.

3. Information relating to Surveyors, Third Party Administrators, InsuranceBrokers,

CorporateAgents

4. Information relating to Insurance Councils, Insurance Ombudsmen

5.Annual Report/IRDA Journal

6.Press Releases.

Complaints against Insurance Companies

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IRDA has provided for a separate channel for lodging complaints againstdeficiency of services

rendered by Insurance Companies. If you have acomplaint/grievance against an insurance

company for poor quality ofservice rendered by any of its offices/branches, please approach the

NodalOfficer of the Insurance Company concerned. In case you are not satisfiedwith the

Insurance Companys response you may also file a complaint withthe Insurance Ombudsman in

your State. The Insurance Ombudsman is anindependent office to provide speedy and cost

effective resolution ofgrievances to the customers. For more details on Insurance

OmbudsmanScheme and their contact numbers, please visit.

Complaints from Policyholders

Policyholders who have complaints against insurers are required to firstapproach theGrievance/Customer Complaints Cell of the concerned insurer.If they do not receive a response

from insurer(s) within a reasonable periodof time or are dissatisfied with the response of the

company, they mayapproach the Grievance Cell of the IRDA.

Reinsurance:

The insurance Regulatory and Development Authority, IRDA for short, haslaid down that thosewho wish to become insurance agents will be givenlicenses only after they complete a course of

study and pass an examinationprescribed was to last 100 hours. The course, IC 33, was prepared

keeping inmind that requirement. In 2007, the period of compulsory study has beenreduced to 50

hours.

Life Insurance Sector: Fact Sheet

India is emerging as one of the two of the largest markets in the world forlife insurance products,the other being China. In the case of India, the threekey drivers of growth are a large insurable

population, a high savings rate,roughly at about 25 per cent and a low penetration, at a mere 2.3

per cent. Inthe 11 months of fiscal year 2004-05, life insurance companies collectedpremium

worth Rs 172 billion and the market grew by a whopping 32.4 percent during the year. Of this,

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the public sector Life Insurance Corporation(LIC) had the lion's share of the market with

premium totaling Rs 134billion. Private sector players recorded a spectacular growth of 129 per

centover the last year, compared to LIC's growth of 18 per cent. India's GDPgrowth rate of 6 per

cent per annum holds great potential for the sector.According to one estimate real life premium

are expected to grow at acompounded annual rate of 15 per cent over the next ten years.

How does India's life insurance market compare with China's? While India'smarket is currently

the fifth largest, China's is the third largest in Asia afterJapan and Korea. Low penetration rate of

insurance products is common toIndia and China - at just about 2.3 per cent. In China, the

savings rate is at35 per cent while for India it is a little lower at 25 per cent. A large part ofthe

growth of the life insurance market in China was driven by theconversion of bank deposits into

endowment products. Demographically,China's population is ageing faster than India's.

FDI in Insurance Sector

The government of Indiahas increase the equity limit for foreigndirect investment from the

current 26 per cent to 49 per cent in the insurancesector. Liberalizations of the FDI policy,

including the Budget proposals forraising the sect oral caps in insurance are one of the main

factors for thehigher FDI inflows during the current year. In 2003-04 the total FDI inflowsin the

country touched $3.4 billion. Indian insurance companies have beenpushing for the FDI limit to

be raised. The current paid-up requirement ofRs 1 billion for general insurance and Rs 2 billion

for life insurance havebecome difficult targets to achieve for the companies. The companies

feelthat injection of additional foreign equity would reduce their costs. Thesector was liberalized

for private players towards the end of 1999. Currently,there are 14 insurance companies,

including the key public sector companyLife Insurance Corporation, in the life insurance sector

and 13 generalinsurance companies.

Key Players in the Indian Market

While the public sector LIC dominates the Indian life insurance market withnearly 80 per cent ofthe market share. It has 248 branches, 115,000employees and over 1 million agents. It has also

been improving internalprocesses and systems, upgrading skills of its agency force and

managersand developing innovative products. LIC sold 1.69 corers policies during theyear

compared to 18 lakh policies sold by all the private players.

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ICICI Prudential is the leader among the private players with a market shareof 6.69 per cent after

its premium collection totaled Rs 11.54 billion. BajajAllianz with sales of Rs 4.9 billion had a

market share of 2.86 per cent. BirlaSun Life with sales of Rs 4.8 billion had a market share of

2.81 per cent andSBI Life with premium collection of Rs 3.9 billion, a market share of 2.29Mper

cent. With its combination of aggressive marketing through an agencyforce and the use of the

banking channel, ICICI has emerged as a key player.Initially, the company drove new business

by opening branches in newlocations. The focus has now shifted to penetrating these locations

forincreasing market share. The company is also trying to get higherpenetration in the High Net

Worth segment. The company has seven bankassurance partners and this is the largest

contributor to non-agency business.It also has 15 key non-bank partners and 800 financial sales

consultants. Asof September 2004, it had 90 branches in 60+ locations. It took the initiativein

launching non-traditional products such as life-stage products, retirementsolutions and child

plans. It also focused on Unit Linked Plans (ULIPs) totarget new consumer segments. It has apresence in 15 states throughpartnership arrangements and as of 2003-04, it sold 64,764 policies

in ruralareas.

HDFC Standard Life has established its branches in 110 locations and istargeting non-metro

towns. It is hoping to leverage its pedigree/parentageto gain more customer acceptance. As a

result, it is focusing on quality notjust volume growth. It has developed some innovative

products like theLoan Cover Term Assurance Plan which provides a lump sum in case ofdeath of

the assured life during the term plan. Aimed at the growing segmentof home loan takers, the planhelps the family to repay the outstanding loan.Given that HDFC has a huge database of home-

loan customers; it can easilytap into this resource to acquire new business. The company is

leveragingits large customer database of home loan and banking clients to cross-sellinsurance

products.

Birla Sun Life

Birla Sun Life was the first to offer ULIPs in the Indian insurance market.And this has been the

primary driver of its growth over the last one year.The company has been investing in customer

education and feels that as aresult customers don't view ULIPs as mutual funds but long term

insurance.As of 2004, the company had 33 branches, 10,274 agents, 79 corporaterelationships

and 10 bank assurance partners.

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Bajaj Allianz has been focusing on second tier towns and cities which areyet to witness the

entry of other life insurance players apart from LIC. It isusing first mover advantage by opening

an office in the most prominentlocation in a non-metro town. It hires local people who are

trained. Itsmantra is to develop only the indispensable infrastructure so that it canmatch the

pricing of LIC. Apart from that it claims that it is the only privateplayer to provide policy

servicing at the branch level. Standard Chartered iscurrently its biggest partner followed by

Syndicate Bank and CenturionBank. The biggest challenge that the company faces is the

weakinfrastructure particularly transport and communications in the smallercities. It is also

facing a challenge in terms of banking channels, particularlyfor customers who bank with

cooperative banks, where delays in clearingcheques are inevitable. Tied agencies comprise the

biggest channel (68%) ofnew business acquisitions for Bajaj Allianz. Banca insurance (27%) is

theother significant channel of growth for the company.

Product Preferences among Consumers

Pension policies are becoming popular as people prefer to opt for solutionsthat can offer them a

regular income after retirement rather than a lump sumon retirement. Maturable policies for a

bulk sum are being bought only forlimited single use such as purchase of a house, childrens

higher education,marriage, etc. This consumer trend is likely to help companies that offerpension

schemes. Term policies are finding favor with youngsters: Terminsurance policies are also

finding more and more takers among the youngergeneration of consumers. Because they offer

protection at extremely lowcosts.

It is assumed that life insurance is purchased only to avail of tax-breaks. Butthe fact remains that

while the tax paying population in the country is justabout 20 million, there is a huge population

that has not been tapped. Onlythe urban salaried class who fall in the tax net has been targeted

for lifeinsurance policies for tax-saving purposes. The other income-earning classessuch as

businessmen, professionals, farmers, provide a great opportunity forlife insurance marketers.

There is a need to tap these customer segmentseffectively. Currently all their disposable income

is going into purchase ofconsumer durables such as washing machines, TV, refrigerators and

mobilephones (as is evident from the fact that spending on savings/investmentproducts has

declined from 14 per cent to 4 per cent in the past decade).

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Mutual Funds (MF) have benefited the most during the last two years. Takethe example of the

Systematic Investment Plans (SIP) of mutual funds. Injust one quarter ICICI PRU MF sold

20,000 SIPs and it has the potential ofselling about 100,000 new SIPs in a year. There are 33

Mutual Fundcompanies in the country and based on this trend one could say that theestimated

fund inflow in MFs through this route alone could touch the Rs 20billion per month. Due to the

good performance of MF during the past 2years, life insurance companies have lost out to

mutual funds.

Marketing strategy of HDFCSL

Marketing is process of analyzing the consumer need and serve the need ofconsumer whichsatisfy the consumer and solve the consumer problem. Inthis sector the marketing is pay mainrole in brand formation and policyawareness to the public. As we know that LIC is coveringmore than 75%market share. So marketing helps in increasing the market share. Marketershaveto analyze the market share and find out the market. We can divide itsmarketing process in twoparts:-

1) Marketing for Financial Consultant: - Work part-time, earn full-time is the punch line of itsmarketing strategy. It says just work for 5 hours aweek and earns more than Rs. 20,000 permonth. If you will be financialconsultant of HDFCSL then you can have high earning potential,zeroinvestment, and you will not have pressure for work. You can work aswhatever you make

your target or you can work as a part-time as per yourconvenience. There are certain facilities forFC:-

Flexible work timings:-you can work whenever you like and from wheneveryou like. You canwork full time or part-time, depending on yourconvenience. Its like no other job. However, thetime you invest willdetermine you success.

Zero investment: - There is no star-up capital. Be your own boss; with aflexible workingenvironment, unlimited earning potential and otheropportunity to be part of a world class team.The advantage is all yours.Sunrise industry: - Life insurance in India has a huge potential forgrowth.Statistics reveal that only 25% of the insurable population in India isinsured. And those

insured are in need of still higher insurance cover. Theover 100% growth displayed by privatelife insurers indicates this hugeuntapped potential.

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Strong partnership: - It is one of the fastest growing life insurancecompanies. It was the firstprivate life insurance company to be granted alicense by IRDA. It has been rated by businessworld class magazine asIndias most respected Private life Insurance Company in 2004. HDFCStandard life Insurance has one of the highest brand recalls of around 86%.

2) Marketing for the potential market: - In our general life we buy thosethings which we see. Forconsumer awareness print marketing and electronicmarketing both are most important. In themarket 17 insurance players istrying to convince people with the advertising in television,radio,newspaper and magazines. HDFC Standard Life is also adopting theseelectronicmarketing. The punch line of HDFC Standard Life is Sar UthaKe Jiyo. Today it has more than8 lack policyholder. It is also targetingcinema halls like PVR where it will get more potentialmarket, formarketing.

3) For insurance sector the main marketer becomes its FinancialConsultant. So it is trying torecruit more and more financial consultant forthe purpose of sale of the policy of HDFCStandard life and people will bemore aware through it because it is a work of contact. Which

have morecontact the that person can get more business.

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2.5 HEAD OFFICES AND BRANCHES

HEAD OFFICE: HDFC Standard Life Insurance Co. Ltd.

'Trade Star', 2nd floor, A Wing,

Junction of Kondivita and M.V. Road,

Andheri-Kurla, Road,

Andheri (East), Mumbai - 400 059.

PHONE: (Board) (022) 2822 0055 / 6751 6666

Fax: 2822 9998 / 2822 2414

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BRANCH LOCATIONS SITE MAP:

Objective of the study

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Marketing Research provides information that assists an organization todefine opportunities forproduct development and market strategy. It worksby assessing whether marketing strategies areaccurately targeted, and byidentifying market opportunities or changes that are required bycustomers.Market research tends to confirm issues that are well-known in a marketinitially, butif planned well and effectively it will also identify newopportunities, market niches, or ways by

which to improve sales, marketingand communications activities.

The role of market research, therefore, is to reduce uncertainty indecision making, to monitor theeffects of decisions taken, and identify theperformance of a company or a product in the market.During internship my market survey was related with the analysis of customer perception.

Objective of project

My project is being undertaken in HDFCSL in which I had to analyze customer perceptiontowards the company. For this distribution enhancement of insurance policies of HDFCSLhasbeen implemented as a marketing strategy. HDFCSL tied up with worldclass insurance

product.

Primary Objective

The primary objective of my project is to make a market survey. In the insurance sectorthe mainwork is done by the financial consultant who brings selling for theorganization. It improves theservices of the organization.

Secondary ObjectiveThe secondary objective was to recruit FC and to make insurance policies.

Working Procedure

In my summer training I targeted Bhubaneswar and Cuttack.Here I had to approach variousdetail of insurance productof HDFCSL and the other competitors of it, suggestions, itsmarketingstrategy and its advertisement. As a part of marketing research I also have tocollectdata in order to find out market share of HDFCSL from our samplespace. During the period Iwas in constant touch with areamanager and I have to submit daily report of my work andfullinformation about phone calls and questioners. Questioner consisting ofopen ended questionswas used for collection the information.

Sample Area

My working area was Bhubaneswar, Cuttack and Bhawanipatna. As I know that those personwill invest ininsurance sector who is aservice holder or a professional. I targeted thosepeoplewhose age is equal or more than 25.

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Methods of data Collection

Data is the significant part of the research. Your all research depends uponyour data. Whateverdata is collected by me during the internship in theHDFCSL, I can divide the method of data

collection into two parts.Which are thus:-

a. Primary dataPrimary data are those which are collected fresh and for the first time andthus happen to beoriginal in chapters. I have collected my data throughQuestionnaire..b. Secondary dataSecondary data are those data which are being already collected by someoneelse and which havealready been passed through the statistical process. Ihave collected my published date formInternet and the books, magazinesand newspaper.

Research Design

In this project exploratory research is used. In exploratory research data wascollected by openended questionnaire research method. In my research cross sectional studies, field work andsurvey was conducted. My studywas concerned with the specific prediction of customersperception.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from theuniverse to know about its characteristics.

1. Sampling Units: Service holders, self employed, Business Man, Professionals and

Housewives2. Sample Technique: Random Sampling.

3. Research Instrument: Structured Questionnaire.

4. Contact Method:telephone calls.

Analysis and interpretation

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1)For the marketing survey I selected a sample size of 60 respondents. They belong to different

age group more than 25 years and less than 66 years.

Age groups No. of respondents Percentage

2630 years 11 18.33

3135 years 1321.66

3640 years 12 20.00

4145 years 08 13.33

4650 years 06 10.00

5155 years 0406.66

5660 years 03 05.00

6165 years 03 05.00

2)The second thing is Male and female

In my sample size there were 52 male and 8 female 86.66% male and 13.33% female

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3) The third thing in my survey was single or married

In my sample there were 21 single and 39 married means 35% single and 65% married

4) the fourth thing is occupation

Service 2745%

Self employed 14 23%

Student 2 3.33%

Professional 13 21.66

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House wife 4 6.66%

Questionnaire

Q1. What is your average monthly income?

Less than 5000/ 5000-10000/10000-20000/20000-25000/25000-30000/30000-40000/

40000-50000/50000 & above

Monthly income no.of respondent percentage

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Less than 5000 0 0%

5000-10000 06 10%

10000-20000 35 58.3%

20000-25000 14 23.33%

25000-30000 04 6.66%

30000-40000 01 1.66%

40000-50000 0 0%

50000 & above 0 0%

Q2. What are your view points on life insurance?

Protection tool/tax savings instrument/savings option/others (please specify)

Protection tool 40 66.66%

Tax savings instrument 23 25.55%

Savings option 37 61.66%

Others 0 0%

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Q3. Do you have insurance policy on your life?

Yes / no

Yes 48 80%

No 12 20%

Q4. What plan you have taken pleases help me by sharing reasons?

Most of the customers have taken life insurance policies in LICI . They have different plans like

jeevan aanand, money plus, lic life plus, children bright future etc.

Q5. Which are the prominent life insurance companies in your locality? Please name two.

--------------------------------------------------- ------------------------------------------------

LICI 50 83.33%

ICICI prudential 11 18.33%

Bajaj Allianz 09 15%

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SBI life 08 13.33%

HDFCSL 0610%

Q6. Have you hard of HDFC ltd?

Answer no.of respondents percentage

Yes 55 91.66%

No 5 8.33%

Q7. Have you ever been associated with any group company of HDFC as a customer?

Answer no.of respondents percentage

Yes 2 3.33%

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No 58 96.66%

Q8. If yes please share with us the details of the same?

Q9. Do you know that HDFC is also into insurance business?

Answer no.of respondents percentage

Yes 49 81.66%

No 11 18.33%

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Q10. If yes how did you come to know about HDFC being into insurance business?

Through advertisement/friends/relatives/internet/others (please specify)

Answer no.of respondents percentage

Through advertisement 45 75%

Friends 14 23.33%

Relatives 6 2.33%

Internet 11 18.33%

Others 0 0%

Q11. Have any one from HDFCSL approached earlier for any survey / agency/ need analysis?

Answer no.of respondents percentage

Yes 3 5%

No 57 95%

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Q12. Are you aware, that you can get an expert advice from HDFCSL on your financial goals?

Answer no.of respondents percentage

Yes 28 46.66%

No 32 53.33%

Q13.Would you like to review your financial goals with an expert, who will be assisting you in

achieving your financial goals?

Answer no.of respondents percentage

Yes 25 41.66%

No 35 58.33%

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Q14.Do you want any of your relatives/friends to know about the services offered by HDFCSL?

Answer no.of respondents percentage

Yes 45 75%

No 15 25%

Q15. Can you help me with 2 contacts, whom I can contact similar survey?

Secondary data study

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HDFC Standard Life Insurance

Respect Yourself

Subject: Effective Communication

Various Ad Campaigns

Pension Plan

Explanation

As we see the above Ad campaign there are three characters

1) Grandfather

2) Father &

3) Son

This grandfather is an old retired person who accompanies his grandson to the market, where

this grandson of is sees a cycle and demands a same like it. Now the old grandfather may not

have the money to buy that cycle for his grandson, therefore after returning from the market the

father of the child comes to his father and offers him some money that he can go and buy that

cycle from the market for his grandson. But in the meanwhile the grandfather calls the grandson

who is riding his cycle out in the garden. The father of the child is shocked that his father had

already bought him a cycle, and then his father asks him to keep the money back or he will feel

bad.

Therefore Hdfc Standard Life Insurance is the way for a secured old age by which you can be

also independent and not dependent on your children

Value Projected

The value shown in this particular campaign is that even at an old age the grandfather is able to

serve his grandson without sacrificing his self-esteem and accepting help from his own son

Childrens Plan

Explanation

There are 2 main characters projected in the above Ad

1) Father &

2) Daughter

The daughter in the annual day function of her school who is presenting a show where she is

singing something which says as below ...na sar jhuka hai kabhi, aur na jhukayenge kabhi, joapne dam pe kare, sach mein zindagi hai wahi

After reciting the first part she forgets the second part, she continuously looks at her father who

gets up and helps her to recollect her lines by acting on it, by which she recollects the lines and

feels comfortable to sing the song.

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SWOT Analysis of HDFC Standard Life Insurance

Analysis of the industrys environment

(SWOT Analysis)

HDFC and Standard Life first came together for a possible joint venture, to enter the life

Insurance market, in January 1995. It was clear from the outset that both companies shared

similar values and beliefs and a strong relationship quickly formed. In October 1995, the

companies signed a 3-year joint venture agreement.

STRENGTH

1. Domestic image of HDFC supported by Prudentials international image is strength of the

company.

2. Strong and well spread network of qualified intermediaries and sales person.3. Strong capital and reserve base.

4. The company provides customer service of the highest order.

5. Huge basket of product range which are suitable to all age and income groups.

6. Large pool of technically skilled manpower with in depth knowledge and understanding of the

market.

7. The company also provides innovative products to cater to different needs of different

customers.

WEAKNESS

1. Heavy management expenses and administrative costs.2. Low customer confidence on the private players.

3. Vertical hierarchical reporting structure with many designations and cadres leading to power

politics at all levels without any exception.

4. Poor retention percentage of tied up agents.

OPPORTUNITIES

1. Insurable population According to ING only 10% of the population is insured, which

represents around 30% of the insurable population. This suggests more than 300m people, with

the potential to buy insurance, remain uninsured.2. There will be inflow of managerial and financial expertise from the worlds leading insurance

markets. Further the burden of educating consumers will also be shared among many players.

3. International companies will help in building world class expertise in local market by

introducing the best global practices.

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4. Insurance liberalization in India is expected to result in a wider choice of major commercial

insurance covers, such as fire, export credit,...

THREATS

1. The immerging trend of insurance companies in Indian market.

2. Competitors like ICICI Prudential, Bajaj Allianz, LICI ,

Big MNCs are coming to domestic market.

3. Local companies specialized in providing such services.

COMPARITIVE ADVANTAGE OVER COMPETITORS

PRODUCT

I compared two products, ICICI smart kid unit link and HDFC young star, in both the policies

parent is insured and child in nominee or beneficiary,

Both the policies contains same features, only ad