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TRAINING PROJECT REPORT ON HDFC Standard Life Insurance Compan Limited

!Consumer perception on HDFC Standard life Insurance at Kota "

Submitted in the partial fulfilment of the requirment for the Award of the Degree of #ACHELOR OF #$SINESS AD%INISTRATION & $NI'ERSIT( OF )OTA* SESSION +,-,.--

ACADE%IC G$IDE / %ISS %ANINDER )OHLI Facu0t of %1D1% Co00e2e3)ota

S$#%ITED #(/. ANIL PATIDAR Student of ##A.II (R

This is to certify that Mr. LOKESH KUMAR a student of BBA III Year at I.B.B. has com !eted Trainin" #ro$ect Re ort entit!ed %Consumer perception on HDFC Standard life Insurance at Kota .& The ro$ect has 'een com !eted after studyin" for t(o years in BBA course and for artia!!y fu!fi!!in" the re)uirements for a(ard of Bache!or of Business Administration of Uni*ersity of Kota. The Trainin" #ro$ect Re ort has de"ree 'een com !eted under the "uidance of %MISS. An$u Mam& facu!ty of I.B.B. co!!e"e and is as er norms and "uide!ines ro*ided.

MR. +.,. ,enani +irector Kota

Miss. A,-U MAM Academic .uide


I would like to thank my project guide Mr. Jagat Mogra, Sales Development Manager HDF Standard !i"e Insurance, #ew Delhi "or guiding me through my summer internship and research project. His encouragement, time and e""ort are greatly appreciated.

I would like to thank $ro". %arun &rya, $ro". M. M. Mehta and Mr. Sanjay Diddee "or supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonder"ul learning e'perience. I would like to dedicate this project to my "aculty. (ithout their help and constant support this project would not have )een possi)le. !astly I would like to thank all the respondents who o""ered their opinions and suggestions through the survey that was conducted )y me in Jodhpur.


Excutive Summary
HDF Standard !i"e insurance is the oldest li"e insurance company in the world. It is the largest insurer in the *+ and is the ,- th largest company in the world. In India, the company is marketing li"e insurance products and unit linked investment plans. From my research at HDF S!I , I "ound that the company has a lot o" competition "rom other private insurers like I I I, &viva,

.irla Sun !i"e and /ata &I0. It also "aces competition "rom !I . /o compete e""ectively HDF S!I could launch cheaper and more reasona)le products with small premiums and short policy terms 1the num)er o" year2s premium is to )e paid3. /he ideal premium would )e )etween 4s. 5666 7 4s. ,5666 and an ideal policy term would )e 86 7 ,6 years. HDF must advertise regularly and create )rand value "or its products and use

services. Most o" its competitors like &viva, I I I, Ma', 4eliance and !I

television advertisements to promote their products. /he Indian consumer has a "alse perception a)out insurance 7 they "eel that it would not )ene"it them i" they do not live through the policy term. #owadays however, most policies are unit linked plans where a customer is )ene"ited even i" their death does not occur during the policy term. /his message should )e conveyed to potential customers so that they readily invest in insurance. Family responsi)ilities and high returns are the two main reasons people invest in insurance. 9ptimum returns o" 8: 7 ,6 ; must )e provided to consumers to keep them interested in purchasing insurance. 9n the whole HDF standard li"e insurance is a good place to work at. <very

new recruit is provided with e'tensive training on unit linked "unds, "inancial instruments and the products o" HDF . /his training ena)les an advisor=sales manager to market the policies )etter. HDF was ranked 8> in the .est $laces to (ork survey. /he company should try to create awareness a)out itsel" in India. In the glo)al market it is already very popular. (ith an improvement in the sales techni?ues used, a "air )it o" advertising and modi"ications to the e'isting product port"olio, HDF would )e all set to capture the insurance market in India as it has around the glo)e.

Ta40es of Contents Sr1No1 1 Particu0ars 0om anies rofi!e of H+30 History Setu Achi*ements 4 A(ards #roducts 4 com etitors 3inancia! condition Research Methodo!o"y O'$ecti*es of the study Sco e 4 si"nificance Research desi"n Limitation of study +ata ana!ysis 4 Inter retation 0onc!usion Su""estion Bi'!io"ra hy #a"e ,o. 1562


2 7 8

22589 81586 82588




HDF Incorporated in 8@AA with a share capital o" 4s 86 rores, HDF has since emerged as the largest residential mortgage "inance institution in the country. /he corporation has had a series o" share issues raising its capital to 4s. 88@ 8,:,B rores. /he gross premium income "or the year ending March >8, rores and new )usiness premium income at 4s. rores. /he company has covered over -,AA,666 lives year ending ,66A stood at 4s. ,,-5: March >8, ,66A.


operates through almost B56 locations throughout the country with its also has an International

corporate head ?uarters in Mum)ai, India. HDF HDF

9""ice in Du)ai, *&< with service associates in +uwait, 9man and Catar. is the largest housing company in India "or the last ,A years.

Incorporated in 8@AA as the "irst specialiDed Mortgage India. &lmost @6; o" initial shareholding in the hands o" domestic institutes and retail investors. investors. .esides the core )usiness o" mortgage HDF "inancial conglomerate with holdings InE HDF HDF HDF Standard !i"e insurance &sset Management .ankF HDF ompanyF HDF holds A-.6A ;. has evolved into a urrent AA; o" shares held )y "oreign institutional ompany in

ompany 7 HDF

holds 56.8;

holds ,,.,5;. holds 56;.

Intelenet 0lo)al 1.usiness $rocess 9utsourcing3 7 HDF


hu)) 0eneral Insurance

ompany 7 HDF

holds AB;.

!oan &pprovals 1up to Dec ,66A3 !oan Dis)ursements 1up to Dec. ,66A3 Housing *nits Financed Distri)ution 9""ices 9utreach $rograms @6 8-8 4s. -65 )illion. 1*S G 8-.>6 )n.3 4s.::@ )illion 1*S G 85.,6 )n3 ,.5 million.

Mr! Dee"a# S Pare#$ is the <'ecutive 1HDF !imited3. He joined HDF hairman o" the ompany. He is also the orporation !imited !imited in 8@-5 and hie" <'ecutive hartered

hairman o" Housing Development Finance

!imited in a senior management position in hairman in 8@@>. He is the

8@A-. He was inducted as a wholeFtime director o" HDF was appointed as its <'ecutive 9""icer o" HDF &ccountants 1<ngland H (ales3.

!imited. Mr. $arekh is a Fellow o" the Institute o"

Mr! Dee"a# M Sat%a&e#ar is the Managing Director and o" HDF

<9 o" the

ompany since #ovem)er, ,666. $rior to this, he was the Managing Director !imited since 8@@>. Mr. Satwalekar o)tained a .achelors Degree in /echnology "rom the Indian Institute o" /echnology, .om)ay and a Masters Degree in .usiness &dministration "rom /he &merican *niversity, (ashington D .

HDF HDF .ankE (orld lass Indian .ankF among the top private )anks in India.

&M E 9ne o" the top > &M s in IndiaF $re"erred investment manager.

Intelenet 0lo)alE .$9 services "or international customers. I.I!E HDF HDF HDF HDF redit In"ormation .ureau India !imited. hu))E *pcoming $rivate companies in the "ield o" 0eneral Insurance. Mutual Fund reality.comE Helps to search properties in all major cities in India securities


Standard !i"e is <urope2s largest mutual li"e assurance company. Standard !i"e, which has )een in the li"e insurance )usiness "or the past 8A5 years is a modern company surviving ?uite a "ew changes since selling its "irst policy in 8-,5. /he company e'panded in the 8@ th century "rom kits original <din)urgh premises, opening o""ices in other towns and ac?uitting other similar )usinesses.

Standard !i"e

urrently has assets e'ceeding over I A6 )illion under its

management and has the distinction o" )eing accorded J&&&K rating conse?uently "or the si' years )y Standard and $oor.

Founded in 8-A5, company supporting generation "or last 8A@ years. urrently over 5 million $olicy holders )ene"iting "rom the services o""ered. <urope2s largest mutual li"e insurer.

HDF Standard !i"e Insurance ompany !imited was one o" the "irst

companies to )e granted license )y the I4D& to operate in li"e insurance sector. 4each o" the J% player is highly rated and )een con"erred with many awards. HDF is rated L&&& 2 )y )oth 4ISI! and I 4&. Similarly, Standard !i"e is rated L&&&2 )oth )y Moody2s and Standard and $oor2s. /hese re"lect the e""iciency with which HDF 4s. 85,666 r and 4s. :66,666 and Standard !i"e manage their asset )ase o" r. respectively.


Standard !i"e Insurance

ompany !td was incorporated on 8B th &ugust

,666. HDF

is the majority stakeholder in the insurance J% with -8.B; staple

and Standard o" as a staple 8-.:; Mr. Deepak Satwalekar is the MD and o" the venture. HDF Standard !i"e Insurance


ompany !td. Is one o" India2s leading $rivate

!i"e Insurance Finance

ompanies, which o""ers a range o" individual and group !td.3 India2s leading housing "inance ompany, a leading provider o"

insurance solutions. It is a joint venture )etween Housing Development orporation !imited 1HDF institution and the Standard !i"e &ssurance

"inancial services "rom the *nited +ingdom. .oth the promoters are will known "or their ethical dealings and "inancial strength and are thus committed to )eing a longFterm player in the li"e insurance industryF all important "actors to consider when choosing your insurer.

Trac6 Record so far
/he gross premium income o" HDF , "or the year ending March >8, ,66A stood at 4s. ,,-5: crores and new )usiness premium income at 4s. 8,:,B crores. /he company has covered over -,AA,666 lives year ending March >8, ,66A. ompany also declared our 5th consecutive )onus in as many years "or our Lwith pro"it2 policyholders.

Financia0 E7pertise
&s a joint venture o" leading "inancial services groups. HDF and e""iciently. standard !i"e has the "inancial e'pertise re?uired to manage longFterm investments sa"ely

Ran2e of So0utions



has a range o" individual and group solutions, which can )e easily

customiDed to speci"ic needs. /hese group solutions have )een designed to o""er complete "le'i)ility com)ined with a low charging structure.

Stron2 Et8ica0 'a0ues/

HDF S!I is an ethical and ultural 9rganiDation. False selling or "alse commitment with the customers is not allowed.

%ost respected Pri9ate Insurance Compan

HDF (orld are. S!I was awarded #oF8 $rivate Insurance ompany in ,66B )y the ustomer lass MagaDine .usiness (orld "or Integrity, Innovation and

M/he most success"ul and admired li"e insurance company, which means that we are the most trusted company, the easiest to deal with, o""er the )est value "or money, and set the standards in the industryM !

:The most o'*ious choice for a!!:.

(a&ue* .Integrity
.Innovation . ustomer centric .$eople are 9ne "or all ./eamwork .Joy and Simplicity


/he right investment strategies wonMt just help plan "or a more com"orta)le tomorrow FF they will help you get JSar *tha ke JiyoK. &t HDF S!I , li"e insurance plans are created keeping in mind the changing needs o" "amily. Its li"e insurance plans are designed to provide you with "le'i)le options that meet )oth protection and savings needs. It o""ers a "ull range o" transparent, "le'i)le and value "or money products. HDF S!I products are modern and contemporary unitiDed products that o""er uni?ue customer )ene"its like "le'i)ility to choose cover levels, inde'ation and partial withdrawals. 1SourceE www.hd"cslic.com3


I, Pr+.uct*
Pr+tecti+, P&a,* & person can protect his "amily against the loss o" his income or the )urden o" a loan in the event o" his un"ortunate demise, disa)ility or sickness. /hese plans o""er valua)le peace o" mind at a small price. $rotection range includes our Term A**ura,ce P&a, H L+a, C+ver Term A**ura,ce P&a,. I,ve*tme,t P&a,* HDF S!I 2s Si,/&e Premium W$+&e +0 Li0e "&a, is well suited to meet

long term investment needs. /his provides attractive long term returns through regular )onuses. Pe,*i+, P&a,* $ension $lans help to secure "inancial independence even a"ter

retirement. $ension range includes Per*+,a& Pe,*i+, P&a,, Pe,*i+,, ,it Li,#e. Pe,*i+, P&u*.

,it Li,#e.

Savi,/* P&a,* Savings $lans o""er a "le'i)le option to )uild savings "or "uture needs such as )uying a dream home or "ul"illing your children2s immediate and "uture needs. Savings range includes E,.+%me,t A**ura,ce P&a,, E,.+%me,t, ,it Li,#e. E,.+%me,t P&u*, P&u* II, M+,ey )ac#, ,it Li,#e. E,$a,ce. Li0e Pr+tecti+, II, C$i&.re,1* P&a,2 Li,#e. Y+u,/ Star, Y+u,/ Star P&u* II. ,it Li,#e. Y+u,/ Star P&u*, ,it ,it Li,#e. ,it Li,#e.

,it Li,#e. E,.+%me,t

Group Products
O,e3*t+" *$+" 0+r em"&+yee34e,e0it *+&uti+,* HDF Standard !i"e has the most comprehensive list o" products "or

progressive employers who wish to provide the )est and most innovative employee )ene"it solutions to their employees. It o""ers di""erent products "or di""erent needs o" employers ranging "rom term insurance plans "or pure protection to voluntary plans such as superannuation and leave encashment. HDF S!I o""ers the "ollowing group products to esteemed corporate clientsE Gr+u" Term I,*ura,ce Gr+u" (aria4&e Term I,*ura,ce Gr+u" ,it3Li,#e. P&a, &n investment solution that provides "unding vehicle to manage

corpuses with 0ratuity, De"ined .ene"it or De"ined


Superannuation or !eave <ncashment schemes o" your company &lso suita)le "or other employee )ene"it schemes such as salary saving schemes and wealth management schemes

Socia0 Product
Deve&+"me,t I,*ura,ce P&a, Development Insurance plan is an insurance plan which provides li"e cover to mem)ers o" a Development &gency "or a term o" one year. 9n the death o" any mem)er o" the group insured during the year o" cover, a lump sum is paid to those mem)er )ene"iciaries to help meet some o" the immediate "inancial needs "ollowing their loss.

E&i/i4i&ity Mem)ers o" the development agency and their spouses withE F Minimum age at the start o" the policy 8- years last )irthday F Ma'imum age at the start o" policy 56 years last )irthday <mployees o" the Development &gency are not eligi)le to join the group. /he group to )e covered is only eligi)le i" it contains more than 566 mem)ers. Premium Payme,t* /he premium to )e paid will )e ?uoted per mem)er in the group and will )e the same "or all mem)ers o" the group. /he premium can only )e paid )y the Development &gency as a single lump sum that includes all premiums "or the group to )e covered. received. over will not start until the premium and all the mem)er in"ormation in our speci"ied "ormat has )een

)e,e0it* 9n the death o" each mem)er covered )y the policy during the year o" cover a lump sum e?ual to the sum assured will )e paid to their )ene"iciaries or legal heirs. (here the death is as a result o" an accident, an additional lump sum will )e paid e?ual to hal" the sum assured. /here are no )ene"its paid at the end o" the year o" cover and there is no surrender value availa)le at any time. T$e r+&e +0 t$e Deve&+"me,t A/e,cy Due to the nature o" the groups covered, HDF Standard !i"e will )e passing

certain administrative tasks onto the Development &gency. .y passing on these tasks the premium charged can )e lower. /hese tasks would includeE Su)mission o" mem)er data in a speci"ied computer "ormat ollection o" premiums "rom group mem)ers 4ecording changes in the details o" group mem)ers Dis)ursement o" claim payments and the mortality re)ate 1i" any3 to group mem)ers /hese tasks would )e in addition to the usual duties o" a policyholder such asE $ayment o" premiums 4eporting o" claims +eeping policy holder in"ormation up to date /raining and support will )e availa)le to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a )urden on the Development &gency, the Development &gency may charge a 4s. 86 administration "ee to their mem)ers. Pr+$i4iti+, +0 re4ate* Section B8 o" the Insurance &ct, 8@>- states #o person shall allow or o""er to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect o" any kind o" risk relating to lives or property in India, any re)ate o" the whole or part o" the commission paya)le or any re)ate o" the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any re)ate, e'cept such re)ate as may )e allowed in accordance with the pu)lished prospectus or ta)les o" the insurer

I" any person "ails to comply with su) regulation 1previous point3 a)ove, he shall )e lia)le to payment o" a "ine which may e'tend to rupees "ive hundred



*nit linked plans are )ased on the component o" the premium or the contri)ution o" the customer towards the plan. /his contri)ution can )e in di""erent modes like yearly, hal" yearly, ?uarterly and monthly. *nit linked plans have multiple )ene"its like li"e protection, rider protection, savings, transparency, investment choices, li?uidity and planning "or ta'es. /hese plans work like mutual "unds. /he premium is collected "rom the policy holder. He is allotted a certain num)er o" units )ased o" his contri)ution. /he #et &sset %alue is the value o" each unit o" the "und. It is "ound )y su)tracting the charges and current lia)ilities "rom the current assets and investments and dividing this num)er )y the total num)er o" outstanding units. !et us take an e'ample. /here are 866 investors and each invests 4s. 86 in a "und. /he total value o" the "und is 4s. 8666 and each person is allotted 8 unit o" 4s 86. #ow the money 14s. 86663 is invested in the de)t or e?uity market. Suppose the "und value increased )y ,6;. &s a result the 4s. 8666 invested )ecame 4s. 8,66. Hence the value o" every investor is now 4s. 8, and not 4s. 86.


Parameter* Sa0ety Li5ui.ity Retur,* R)I )+,.* Hi/$ N+,e L+% Fixe. De"+*it* Hi/$ Hi/$ L+% Mutua& Fu,.* Me.ium Hi/$ Hi/$ ,it &i,#e. Hi/$ Hi/$ Hi/$

Li0e C+ver Tax 4e,e0it*

6 time am+u,t Tax 0ree

6 time am+u,t Taxe.

6 time am+u,t Taxe.

67 time* Tax 0ree

(e "ind that li"e insurance unit linked plans is a good area to invest money in as it provides li?uidity, sa"ety, high returns, li"e cover and ta' )ene"its in a single plan. HDF S!I o""ers the option o" inde'ation to )eat in"lation. 4isk is reduced to a large e'tent as the company invests in a diversi"ied port"olio o" stocks.

Ta7 #enefits



*pto 4s. >>,@@6 &ll the li"e insurance saved investment 4s. 8,66,666. on plans. o"

Sec. -6

&cross all income sla)s.

*pto 4s. >>,@@6 &ll the pension plans. saved Investment 4s.8,66,666. on o"

Sec. -6 D

&cross all income sla)s

*pto saved


>,>@@ &ll


health riders with the

on insurance o" availa)le


4s. 86,666.

conventional plans.



R*:;2:<= 4s. >>,@@6 under Sec. -6 and under Sec. -6 , 4s.>,>@@ under Sec. -6 D, calculated "or a male with gross annual income e'ceeding 4s. 86,66,666.


Sec. 86 1863D

*nder Sec. 86186D3, the )ene"its you receive are completely ta'F"ree, su)ject to the conditions laid down therein.






INSTR MENTS Paramete r* Sa0ety Li5ui.ity Retur,* R)I )+,.* Hi/$ N+,e L+% Fixe. De"+*it* Hi/$ Hi/$ L+% Mutua& Fu,.* Me.ium Hi/$ Hi/$ ,it &i,#e. Hi/$ Hi/$ Hi/$

Li0e C+ver Tax 4e,e0it*

6 time am+u,t Tax 0ree

6 time am+u,t Taxe.

6 time am+u,t Taxe.

67 time* Tax 0ree

(e "ind that li"e insurance unit linked plans is a good area to invest money in as it provides li?uidity, sa"ety, high returns, li"e cover and ta' )ene"its in a single plan. HDF S!I o""ers the option o" inde'ation to )eat in"lation. 4isk is reduced to a large e'tent as the company invests in a diversi"ied port"olio o" stocks.

OTHER COMPETITORS LIFE INS RANCE CORPORATION OF INDIA >LIC? !I has an e'cellent money )ack policy which provides "or

periodic payments o" partial survival )ene"its as long as the policy holder is alive. ,6; o" the sum assured is paya)le a"ter 5, 86, 85 and ,6 years and the )alance B6;

is paya)le at the ,6th year along with accrued )onus. 1www.lic.com3 For a ,5 years term , 85; o" the sum assured )ecomes paya)le a"ter 5,86,85 and ,6 years and the )alance B6; plus the accrued )onus )ecomes paya)le at the ,5 th year. &n important "eature o" these types o" policies is that in the event o" the death o" the policy holder at any time within the policy term the death claim comprises o" "ull sum assured without deducting any o" the survival )ene"it amounts which have already )een paid. /he )onus is also calculated on the "ull sum assured. HDF S!I does not have a money )ack policy. It could

o""er a money )ack plan and capture some portion o" this market. (hile marketing insurance products I "ound that many customers wanted to purchase these plans. !I o""ers :: di""erent plansN plans are "ormulated "or

speci"ic occasions 7 whole li"e plans, term assurance plans, money )ack plan "or women, child plans, plans "or the handicapped individuals, endowment assurance plans, plans "or high worth individuals, pension plans, unit linked plans, special plans, social security schemes 7 diversi"ied port"olio o" products. HDF S!I could diversi"y its product

port"olio. It could add more plans "or high worth individuals and women. ICICI PR DENTIAL I I I $rudential is a sti"" competitor "or HDF S!I . /he company is a merger )etween I I I .ank which is the )iggest private )ank in India and $rudential $lc which is a glo)al li"e insurance company. /he company has an investment plan which is market related 7 Invest Shield !i"e. In this plan even i" the market "alls, the premium will )e returned to investors. It is a guaranteed plan which ensures the company care"ully invests your money. /he stock market per"ormance o" I I I $rudential is much )etter than HDF B,.A6; o""ered )y HDF S!I . S!I . /he returns on the growth "und were B:.,-; compared to the ustomers are attracted )y higher returns and this is a plus point "or $rudential. /he company is very well advertised. /he advertisements are showcased in movies, television, newspapers, magaDines, )ill )oards, radio etc. /he company has an e'cellent )rand am)assador 7 Mr. &mita)h .acchan. His promotion o" the company )uilds trust and "aith in the minds o" our people.

However the charges are very high in the plans o""ered )y I I I $rudential. It is >5; during the "irst year, 85; in the ne't year and >; "rom the third year onwards. &lso a higher minimum premium o" 4s. -666 is charged. Hence the policies are not accessi)le to the lower strata o" the society. 1SourceE www.icicipruli"e.com3

)IRLA S N LIFE .irla Sun !i"e Insurance ompany !imited is a joint venture

)etween /he &ditya .irla 0roup, one o" the largest )usiness houses in India and Sun !i"e Financial Inc., a leading international "inancial services organiDation. /he local knowledge o" the &ditya .irla 0roup com)ined with the e'pertise o" Sun !i"e Financial Inc., o""ers a "ormida)le protection "or your "uture. 1SourceE www.)irlasunli"e.com3 /he &ditya .irla 0roup has a turnover close to 4s. >>666 crores with a market capitaliDation o" 4s. 5>B66 crores 1as on >8st March ,66A3. It has over A,666 employees across all its units worldwide. It is led )y its group are Hindalco and 0rasim. hairman F Mr. +umar Mangalam .irla. Some o" the key organiDations within the

Sun !i"e Financial Inc. and its partners today have operations in key markets worldwide, including $hilippines, Japan, Indonesia, India, anada, the *nited States, the *nited +ingdom, Hong +ong, the hina and .ermuda. It had assets under management o" over *SG>B> )illion, as on >8st March ,66A. /he company is a leading player in the li"e insurance market in anada.

.eing a customer centric company, .S!I has invested heavily in technology to )uild world class processing capa)ilities. .S!I has covered more than a million lives since inception and its customer )ase is spread across more than 8666 towns and cities in India. &ll this has assisted the company in cementing its place amongst the leaders in the industry in terms o" new )usiness premium income. /he company has a capital )ase o" 5,6 crores as on >8st July, ,66A. Its Fle'i !i"e !ine $lan o""ers li"e long insurance cover till the policy holder is 866 years o" age. /here are guaranteed returns o" >; p.a. net o" policy charges a"ter every 5 years "rom the eleventh policy year onwards. However the charges are very high. /he initial charges "or

the "irst year are :5;. Hence the "und value is greatly reduced. )A'A' ALLIAN@ .ajaj &llianD is a joint venture )etween &llianD &0 with over 886 years o" e'perience in over A6 countries and .ajaj &uto, a trusted automo)ile manu"acturer "or over 55 years in the Indian market. /ogether they are committed to o""ering you "inancial solutions that provide all the security you need "or your "amily and yoursel". .ajaj &llianD is the num)er one private li"e insurer "or the year ,665 7 ,66:. It is leading )y A- crores. It has e'perienced a whopping growth o" ,8:; in the last "inancial year. /he company has sold 8>, 66,666 policies and is )acked )y 556 o""ices across India. It o""ers travel insurance, motor insurance, home insurance, health and corporate insurance. /he mortality charges are lower than HDF S!I . /he entry age could )e Dero years which allow even new )orn )a)ies to )e insured. 1SourceE www.)ajajallianD.com3 TATA AIG /ata &ig is a joint venture )etween the /ata group and &merican International 0roup Inc. In one o" the plans the company o""ers hospital cash )ene"it wherein it will pay

4s. ,566 per day in case o" hospitaliDation and 4s.8,.5 lakhs in case the person su""ers "rom any critical illness. &nnual premium is much less 1a)out 4s. :A8,3 to avail such a good )ene"it. to HDF S!I harges are relatively low compared "or some policies.

/he company o""ers high coverage plans at low cost. /here is a plan even "or a policy term o" 8 year. Oour "amily can continue to enjoy their current li"estyle even in the case o" something happening to you. /hese plans are very "le'i)le and HDF S!I could adopt this idea o" insuring individuals "or short periods o" time. For e'ampleN there is a "amily o" "our. /he only earning mem)er is the "ather. He has just taken a loan "rom a )ank o" ,6 lakhs to purchase a new home. He is a)le to repay the loan with his current salary in 85 years. /he pro)lem arises i" something were to happen to him within these "i"teen years. #ot only will the "amily "ace the emotional and "inancial loss o" their "ather )ut they will also have to repay the home loan or risk )eing homeless. 1SourceE www.tataaig.com3

+1: HDFC Po0icies

HDFC C8i0dren P0ans

As a parent, your priority is your child's future and being able to meet your child's dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you'll need when your child takes these important steps in life The HDFC CHILDREN'S PLAN!

"ives valuable protection and invaluable financial support to the child. #orks on $eneficiary concept, where beneficiary is the sole person to receive the benefit under the policy. %rovides you multiple options for multiple benefits.

Plan Option Accelerated $enefit %lan

Death Benefit(on death of insured parent durin the poli!" ter#$ &um Assured ' $onuses (eclared. The policy terminates immediately. *our family need not pay any further premiums and the policy continues. &um Assured. *our family need not pay any further premiums.

%aturit" Benefit &um Assured ' $onuses (eclared

)aturity $enefit %lan (ouble $enefit %lan

&um Assured ' $onuses (eclared &um Assured ' $onuses (eclared

HDFC (oun2 star C8ampion P0ans Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your children take these important steps in life.

%lan today to ensure a bright future for your children. &tart building savings today with our +(,C -nit .inked *oung&tar Champion so that your child is able to lead a life of respect and dignity with a secured financial future. 3eature The HDFC &nit Lin'ed (oun Star Cha#pion gives you /aluable protection to your child in case you are not around An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Bu#per Addition to the fund value at maturity ,lexible premium payment options 0o need to go for medicals. Just filling the &hort )edical 1uestionnaire will do

The HDFC &nit Lin'ed (oun Star Cha#pion gives you 2n case of unfortunate demise of the parent, +(,C &tandard .ife will! %ay the &um Assured you had chosen to your child. Continue to pay 345 of the original regular premium towards the policy

HDFC Pension P0an The +(,C -nit .inked %ension 22 is an insurance policy that is

designed to provide a retirement income for life with the freedom to maximise your investment returns. &tride into your golden years of retirement with dignity and pride. FeaturesF The HDFC &nit Lin'ed Pension II gives you An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments ,reedom from tracking the market with Asset Allocation 6ption $umper Addition of 345 of original annuali7ed premium at vesting and on death %rovides a post retirement income for life "ives you the flexibility to plan your retirement date *ou can choose your premium and the investment strategy. #e will then invest your premium, net of premium allocation charges according to your chosen investment strategy. At the end of the policy term, you will receive the accumulated value of your funds, which will be used to provide your pension income. The HDFC &nit Lin'ed Pension II benefits you in the following ways! Take 89:rd of the fund value as tax;free cash lump sum and purchase annuity with the balance amount. %urchase annuity from +(,C &tandard .ife or any other insurer



RESEARCH %ETHODOLOG( TITLE/ To determine customer5'uyin" 'eha*ior (ith a focus on mar;et se"mentation for H+30 Standard Life Insurance. TITLE J$STIFICATION/ The a'o*e tit!e is se!f e< !anatory. The study dea!s main!y (ith studyin" the 'uyin" attern in the insurance industry (ith a s ecia!

focus on H+30 Standard Life Insurance. The *arious se"ments of the mar;ets di*ided in terms of Insurance ,eeds= A"e "rou s = Satisfaction !e*e!s etc (i!! a!so studied. O#JECTI'E O4;ecti9e One To determine reasons 'ehind o tin" for an insurance.

To ro*ide the com any (ith information of customer:s Insurance o!icy if they ha*e any and reasons for o tin" for that articu!ar o!icies.

To ;no( the most referred o!icy.

O4;ecti9e T<o To determine customers erce tion to(ards ri*ate insurance

com anies and their e< ectation form ri*ate insurance com anies. To determine the feed'ac; on ser*ices ro*ided 'y any other

insurance a"ent. To study the ty es of 'enefits ro*ided 'y insurance ser*ices. To determine the use of Internet for *a!ua'!e information and decision5ma;in" rocess.

SCOPE OF THE ST$D( A 'i" 'oom has 'een (itnessed in Insurance Industry in recent times. A !ar"e num'er of ne( !ayers ha*e entered the mar;et and are *yin" to

"ain mar;et share in this ra id!y im ro*in" mar;et. The study dea!s (ith H+30 Standard Life in focus and the *arious se"ments that it caters to. The study then "oes on to e*a!uate and ana!y>e the findin"s so as to resent a c!ear icture of trends in the Insurance sector.

SIGNIFICANCE TO THE IND$STR( / This is a !imited study (hich ta;es into consideration the res onses of 199 eo !e. This data can 'e e< !orated to ta;e in the trends across the industry. The si"nificance for the industry !ies in studyin" these trends that emer"e from the study. It is a ra idd!y chan"in" and e*o!*in" sector. #eo !e are on!y 'e"innin" to (a;e u to it?s *ast ossi'i!ities. A study !i;e this can attem t to "uide the future of the industry 'ased on current trends.


To faci!itate and

ro*ide a!! the usefu! informtaion of the studt= the ro*ide mar;etin" (ays=

com any= the insurance industry and a!so methods of H+30 Standard Life insurance. RESEARCH DESIGN NON.PRO#A#ILIT( E=PLORATOR( >



RESEARCH The research is rimari!y 'oth e< !oratory as (e!! as descri ti*e in nature. The sources of information are 'oth rimary 4 secondary. A (e!!5structured )uestionnaire (as re ared and ersona! inter*ie(s

(ere conducted to co!!ect the customer?s erce tion and 'uyin" 'eha*ior= throu"h this )uestionnaire. SA%PLING %ETHODOLOG( Samp0in2Tec8ni?ue/ Initia!!y= a rou"h draft (as re ared ;ee in" in mind the o'$ecti*e of the research. A i!ot study (as done in order to ;no( the accuracy of the @uestionnaire. The fina! @uestionnaire (as arri*ed on!y after certain im ortant chan"es (ere done. Thus my sam !in" came out to 'e $ud"menta! and continent

Samp0in2 $nit/ The res ondents (ho (ere as;ed to fi!! out )uestionnaires are the sam !in" units. These com rise of em !oyees of M,0s= .o*t. Em !oyees= Se!f Em !oyed etc.

Samp0e si@e/ The sam !e si>e (as restricted to on!y 199= (hich com rised of main!y eo !es from different re"ions of 0hennai due to time constraints. Samp0in2 Area / The area of the research (as 0HE,,AI=TAMIL,A+U= I,+IA.


1. The research is confined to a certain

arts of 0HE,,AI

AMA+RASB and does not necessari!y sho(s a attern a !ica'!e to a!! of 0ountry. 6. Some res ondents (ere re!uctant to di*u!"e ersona! information (hich can affect the *a!idity of a!! res onses.

2. In a ra id!y chan"in" industry= ana!ysis on one day or in one se"ment can chan"e *ery )uic;!y. The en*ironmenta! chan"es are *ita! to 'e considered in order to assimi!ate the findin"s.

& 4esearch Design is the "ramework or plan "or a study which is used as a guide in collecting and analyDing the data collected. It is the )lue print that is "ollowed in completing the study. /he )asic o)jective o" research cannot )e attained without a proper research design. It speci"ies the methods and procedures "or ac?uiring the in"ormation needed to conduct the research e""ectively. It is the overall operational pattern o" the project that stipulates what in"ormation needs to )e collected, "rom which sources and )y what methods.

AT+ C+m"are t$e "r+.uct* +0 HDFC Sta,.ar. Li0e I,*ura,ce

C+m"a,y Limite. a,. Tata AIG Li0e I,*ura,ce C+m"a,y Limite. 0+r HDFC Sta,.ar. Li0e I,*ura,ce C+m"a,y Lt.!B


/his study was undertaken to identi"y which type o" insurance plans HDF S!I should market to )eat /ata &I0 !I in India. & survey was undertaken to understand the pre"erences o" Indian consumers with respect to insurance. (hile marketing policies the sole duty o" an advisor= agent is to provide insurance plans as per customer re?uirements.

In e""ect plans 1insurance products3 should )e "le'i)le to suit individual re?uirements. /his research tries to analyDe some key "actors which in"luence the purchase o" insurance like the term o" the policy, the type o" company, the amount o" annual premium paya)le 1capacity and willingness to spend3, risk taking a)ility and the in"luence o" advertising. Solutions and recommendations are made )ased on ?ualitative and ?uantitative analysis o" the data.

/o analysis the product details o" HDF Standard li"e Insurance ompany !imited. Standard

ompany limited and /ata &I0 li"e Insurance

/o "ind L$oints o" $arity2 and L$oints o" Di""erence2 o" HDF !i"e Insurance ompany !imited.

ompany !imited and /ata &I0 !i"e Insurance

/o "ind out "actors that in"luence customers to purchase insurance policies and give suggestions "or "urther improvement.


TYPE OF DATA COLLECTED /here are two types o" data used. /hey are primary and secondary data. $rimary data is de"ined as data that is collected "rom original sources "or a speci"ic purpose. Secondary data is data collected "rom indirect sources. 1SourceE 4esearch Methodology, .y PRIMARY SO RCES . 4. +othari3

/hese include the survey or ?uestionnaire method, telephonic interview as well as the personal interview methods o" data collection. SECONDARY SO RCES /hese include )ooks, the internet, company )rochures, product )rochures, the company we)site, competitor2s we)sites etc, newspaper articles etc.

Sampling re"ers to the method o" selecting a sample "rom a given universe with a view to draw conclusions a)out that universe. & sample is a representative o" the universe selected "or study. SAMPLE SI@E /he sample siDe "or the survey conducted was C;7 re*"+,.e,t*! /his sample siDe was taken on @5; con"idence level and : signi"icant level. Data universe "or this sample is 86,66,666 which is appro' population o" Jodhpur e'cluding people )elow age o" 8- years.

SAMPLING TECHNID E Ra,.+m *am"&i,/ tec$,i5ue was used in the survey conducted.

/a)les were used "or the analysis o" the collected data. /he data is also neatly presented with the help o" statistical tools such as graphs and pie charts. $ercentages and averages have also )een used to represent data clearly and e""ectively.

/he samples re"erred to were residing in Jodhpur +amla #ehru #agar. ity. /he areas covered ity &rea and

were Shastri #agar, Sardarpura, Masuriya, Su)hash #agar,



A e roup *+ , -. "ears -0 , 1. "ears 10 , 23 "ears .4 , 04 "ears %ore than 04 "ears No) of Respondents *-/ 0/ 20 -2 0


A,a&y*i*E From the chart a)ove we "ind that BA; o" the respondents "all in the age group o" 8- 7 ,5 years, ,5; "all in the age group o" ,: 7 >5 years and 8A; "all in the age group o" >: 7 B@ years. /here"ore most o" the respondents are relatively young 1)elow ,: years o" age3. /hese individuals could )e induced to purchase insurance plans on the

)asis o" its ta' saving nature and as an investment opportunity with high returns. Individuals at this age are trying to )uy a house or a car. Insurance could help them with this and this "act has to )e conveyed to the consumer. &s o" now many consumers have a "alse perception that insurance is only meant "or people a)ove the age o" 56. ontrary to popular )elie" the younger you are the more insurance you need as your loss will mean a great "inancial loss to your "amily, spouse and children 1in case the individual is married3 who are "inancially dependent on you.


TA)LE CE Particulars %ale Fe#ale No. of Respondents
*31 //



Student House5ife 6or'in Professional Business Self E#plo"ed 7o8ern#ent ser8i!e e#plo"ee

No) of respondents
0. **0 23 -2 *2


A,a&y*i*E From the chart a)ove it can clearly )e seen that B>; o" the respondents are working pro"essionals, ,>; are students and 8-; are into )usiness. /here"ore the target market would )e working individuals in the age group o" 8- 7 ,5 years having surplus income, interested in good returns on their investment and saving income ta'. NO! OF RESPONDENTS WHO HA(E LIFE INS RANCE POLICY IN THEIR NAME TA)LE FE Per*+, %$+ $ave &i0e i,*ura,ce "+&icy Oes 84:




ANALYSISE /his graph shows that out o" total ,A6 respondents only 86> or >-; respondents have li"e insurance policy in their name. 4est all don2t have a single policy in their name. So there is a very )ig scope "or li"e insurance companies to cover these people. So in "uture )usiness o" li"e insurace will gro "urther. MARKET SHARE OF LIFE INS RANCE COMPANIES TA)LE GE LIFE INS&RER

2 1 0 / .. 0 *0 -


A,a&y*i*E In India, the largest li"e insurance company is !i"e Insurance orporation o" India. It has )een in e'istence in India since 8@5: and is completely owned )y the 0overnment o" India. /oday the organiDation has grown to ,6B- o""ices serving 8- crore policies and has a corpus o" over >B6666 crore I#4.


Pre#iu# paid (p)a)$ Rs) .444 , Rs) *4444 Rs) *444* , Rs) *.444 Rs) *.44* , Rs) -2344 Rs) -.444 , Rs) .4444 Rs) .444* , Rs) 04444 Rs)0444* , Rs) +4444 Rs) +444* , Rs) *44444

No) of respondents 24 -0 *+ *4 2 1



From the chart a)ove we "ind that, >@; o" the respondents surveyed pay an annual premium less than 4s. 86668 towards li"e insurance. ,5; o" the respondents pay an annual premium less than 4s. 85668 and 8A; pay an annual premium less than 4s. ,5666. Hence we can sa"ely say that HDF S!I would )e a)le to capture the market )etter i" it introduced products=plans where the minimum premium starts at 4s. 5666 per annum. 9nly 8@; o" the respondents pay more than 4s. ,5666 as premium and most products sold )y HDF S!I have 4s.8,666 as the minimum annual premium amount. /hey should introduce more products like <asy !i"e $lus and Sa"e 0uard where the minimum premium is 4s.:666 p.a. and 4s. 8,666 p.a. respectively. /his would de"initely increase their market share as more individuals would )e a)le to a""ord the policies=plans o""ered.


9"pe of Plan 9er# Insuran!e Plans Endo5#ent Plans Pension Plans Child Plans 9a> Sa8in Plans

No) of Respondents *4. *-*0 + *3


A,a&y*i*E From the chart given a)ove we can clearly see that B5; o" the respondents hold endowment plans and >@; o" the respondents hold term insurance plans. <ndowment plans are very popular and serve two purposes 7 li"e cover and savings. I" the policy holder dies during the policy term the nominee gets the death )ene"it that is, sum assured and accumulated )onus. 9n survival the policy holder receives the survival )ene"it with a )onus. & term plan is a pure risk cover plan wherein the insured pays a lower premium "or a higher sum assured. /erm insurance is the cheapest "orm o" insurance and helps the policy holder insure himsel" "or a relatively low premium. For the returns sensitive investor term plans do not "ind "avor as they do not o""er a return in case the individual does not die during the policy term.



A5areness of &nit Lin'ed Plans (es No

No) of Respondents *.2 **0


A,a&y*i*E From the chart given a)ove we "ind that 5A; o" the respondents are aware o" unit linked li"e insurance plans and B>; are not aware o" such plans. /hese plans should )e promoted through advertising. /he company can advertise through television, radio, newspapers, )ill )oards and pamphlets. /his would increase awareness and arouse curiosity in the minds o" the consumer which would ena)le the company to market its products more e""ectively. *nit 7 linked plans are those where the )ene"its are e'pressed in terms o" num)er o" units and unit price. /hey can )e viewed as a com)ination o" insurance and mutual "unds. /he num)er o" units a customer would get would depend on the unit price when they pay the premium.

(hen the policy matures the individual gets his "und value. /he value o" his "und is calculated )y multiplying the net asset value and num)er o" units held )y them on that day.


6illin ness to spend on pre#iu# Less than Rs) 0?444 Rs) 0?44* , Rs) *4?444 Rs) *4?44* , Rs) -.?444 Rs) -.?44* , Rs) .4?444 Rs) .4?44* , Rs) *?44?444

No) of respondents 2* /1 **4 2* .

Per!enta e *.@ -/@ 2*@ *.@ -@


A,a&y*i*E From the graph a)ove, we can clearly see that B8; o" the respondents would )e willing to spend )etween 4s. 86668 7 4s. ,5666 "or li"e insurance. ,A ; would )e willing to spend )etween 4s. :668 7 4s. 86666 per annum. 9nly 85; would )e willing to spend more than 4s. ,5666 per annum as li"e insurance premium. (e could say that the ma'imum premium paya)le )y most consumers is less than 4s. ,5666 p.a. /his is "urther reduced as most customers have already invested with !I , I I I $rudential, .irla Sun !i"e, .ajaj &llianD etc. HDF S!I is "aced with a large amount o" competition. /here are 8-

insurance companies in India inclusive o" !I . Hence to capture a larger part o" the market the company could introduce more reasona)le plans with lesser premium paya)le per annum.


Ideal poli!" ter# 1 , . "ears 0 , 3 "ears *4 , *. "ears *0 , -4 "ears -* , -. "ears -0 , 14 "ears %ore than 14 "ears 6hole life Poli!" No) of respondents .* 2* 3. 1+ -2 . 1 *1



A,a&y*i*E From the chart given a)ove it can )e seen that >5; o" the respondents pre"er a policy term o" 86 7 85 years, 8@; pre"er a term o" > 7 5 years and 85; pre"er a term o" : 7 @ years. /his means that HDF S!I could introduce more plans wherein the premium paying term is less than 85 years. /he outlook o" insurance as a product should )e changed "rom something which you pay "or your whole li"e 1whole li"e policy3 and do not receive any )ene"it 1the nominee only receives the )ene"it in case o" your death3 to an e'tremely use"ul investment opportunity with the prospects o" good returns on savings, ta' saving opportunities as well as providing "or every milestone in your li"e like marriage, education, children and retirement.


Para#eter Ad8ertise#ents Hi h returns Ad8i!e fro# friends Fa#il" responsiAilities Others

No) of Respondents 1. +2 20 +3 *0


A,a&y*i*E From the chart a)ove it can )e seen that >>; o" the respondents purchase li"e insurance to secure their "amilies, >>; take li"e insurance to get high returns, 8A; purchase insurance on the advice o" their "riends and 8>; purchase insurance )ecause o" the in"luence o" advertisements. /he main purpose o" insurance is to cover the "inancial or economic loss that occurs to the "amily in case o" the uncertain death o" the policy holder. .ut now a days this trend is changing. &long with protection 1li"e cover3, a savings element is )eing added to insurance. (ith the introduction o" the new unit linked plans in the market, policy holders get the option to choose where their money will )e invested. /hey

can invest their money in the e?uity market, de)t market, money market or a com)ination o" these. /he de)t and money markets usually have low risk attached whereas the e?uity market is a high risk investment option. PREFERRED COMPANY TYPE OF THE RESPONDENTS TA)LE 6CE
9"pe of Co#pan" 7o8ern#ent O5ned Co#pan" PuAli! Li#ited Co#pan" Pri8ate Co#pan" Forei n Co#pan" No) of Respondents *-/ 023 1Per!enta e 2/@ -1@ *+@ *-@


A,a&y*i*E From the graph a)ove we "ind that :6; o" the respondents pre"erred to purchase insurance "rom a government owned company, ,@; o" the

respondents pre"erred to purchase insurance "rom a pu)lic limited company and only B; o" the respondents pre"erred a "oreign )ased company. Heavy advertising through television, newspapers, magaDines and radio is re?uired. MINIM M E8PECTED RET RN ON IN(ESTMENT TA)LE 6:E
E>pe!ted Returns Less than .@ .@ , *4@ **@ , *.@ *0@ , -4@ -*@ , -.@ -0@ , 14@ 1*@ , 24@ 2*@ , .4@ %ore than .4@ No) of respondents . 13 20 23 20 -/ -*2 --


A,a&y*i*E From the chart a)ove it can clearly )een seen that 8-; o" the respondents would like 8: 7 ,6; returns, 8A; would like returns )etween ,8 7 ,5; and

8A; would like returns o" 88 7 85; on their investments. /here"ore the average return on investment should )e at least 8: 7 ,6 ;. Most consumers are willing to adapt to some amount o" risk )ut still want some guaranteed returns. /here"ore the )ulk o" investment should )e made in the )alanced "und with 56; de)t and 56; e?uity. /he returns on the Secure Fund are guaranteed as these involve investment is government securities and the de)t market. .ut the returns on these instruments are low 1- 7 86;3. I" the company invests in shares, returns are higher 1>@;3 )ut correspondingly risk )orne )y the policy holder is also higher. /here"ore a good com)ination o" the two instruments is o"ten a wise choice.




standard li"e insurance is "irst li"e insurance

ompany in

India. It has )usinesses spread out across the glo)e. It was registered on ,>rd Decem)er ,666. It currently ranks num)er B amongst the insurers in India. /he company "aces a large amount o" competition. /o sustain itsel" it must promote its products through advertising and improve its selling techni?ues. new plans availa)le at HDF onsumers must )e aware o" the S!I . /he medium o" advertising

used could )e television since most o" its competitors use this tool to promote their products. /he company must )e promoted as an Indian company since consumers seem to have more trust in investing in Indian "irms. /he unit linked concept must )e speci"ically promoted. /he general perception o" li"e insurance has to change in India )e"ore progress is made in this "ield. $eople should not )e a"raid to invest money in insurance and must use it as an e""ective tool "or ta' planning and long term savings. HDF S!I could tap the rural markets with cheaper products and

smaller policy terms. /here are individuals who are willing to pay small amounts as premium )ut the plans do not accept premiums )elow a certain amount. It was usually "ound that a large num)er o" males were insured compared to "emales. Individuals )elow the age o" >6 1mostly male3 were interested in investment plans. /his was a general conclusion drawn during prospecting clients.



Findin2 and Su22estion Accordin" the sur*ey on!y 76C eo !e are insured in A!(ar so reamin" other art is otentia! for insurance sector. Amon" that 76C eo !e (ho ha*in" insurance= they ha*e insurance 79C for se!f 6DCfor s ouse 61C for chi!dren and 1DC for their arents and 11C for a!! fami!y mem'er= a!so its *ery he! fu!! for insurance sector so they shou!d ta;e necessary ste for ca ture this otentia!. On!y 76C eo !e ha*in" insurance in A!(ar in that 76C there are D6 C eo !e are under insured and other 1DC eo !e are fu!!y insured accordin" to their income so that is a!so !us oint for insurance sector to ca ture the mar;et.

%& t'e 'elp of %oo(s Mar;etin" Mana"ement (ritten BY %P8i00ip )ot0ar" &-+ edition3 pa2e No AA* %& t'e Help of )anuals H+30 Re ort of 699D 4 Internet. %& t'e 'elp of t'er Sources By the head?s and the consu!tant of the H+30 SLI0. %& t'e 'elp of *e+sites 1. (((. IRDAIndia.or". 6. ((( 2. ((( 7. (((. 5. www.8dfcinsurance.comE