Professional Documents
Culture Documents
Submitted in the Partial Fulfillment of the Requirement for the award of the Degree of
FA"#$%& '#(D)* DR+ ,(,)-A .A.D S(.'/ Facult0 1 MBA de2artment .+A+M+3 Dehradun
ACKNOWLEDGEMENT
A dissertation is never the work of an individual; it is a co !ination of views" ideas" su##estions" contri!ution $ i %rints of its fulfill ent' ( thank to & #uide Dr. Vive !"!"# Si"$% &F!'()*+ ,- Fi"!"'e M!"!$e.e"*, NAM, an& %eo%le' Therefore one of the %lesant %arts of writin# re%ort is the o%%ortunit& one #ets to thank those who have contri!uted towards
DEHRADUN/ for his valua!le contri!ution' Thanks are also due to various e %lo&ees of the co %an& and to the res%ondents for their co)o%eration durin# the research' Last !ut not least ( would like to thank each $ ever&one who directl& and indirectl& hel%ed e in co %letion of the %ro*ect successfull&'
DECLARATION
( here !& declare that Dissertation re%ort entitled +,inance Mana#e ent- and the to%ic of + A Co %arative .tud& of (NG /0.0A L(,E (N.12ANCE and 3D,C .TANDA2D Life (nsurance +at Dehradun is %re%ared !& co%ied fro e" su! itted in %artial fulfill ent of the & ori#inal work and not re4uire ent for the de#ree of M'5'A'" NAM" Dehradun is
an& other source or %ro*ect su! itted for the si ilar %ur%ose' %ri ar& and secondar& data'
PREFACE
The to%ic of
& Dissertation is +A Co %arative .tud& !etween (NG /0.0A Life & %ro*ect are to
co %are life the (NG /0.0A and 3D,C .tandard Life insurance and to find out the custo ers o%inion a!out the !oth co %anies with anal&6in# the insurance arket' (n insurance scenario" there is a hu#e co %etition !etween the %rivate and %u!lic sector due to %rivati6ation' A on# the %rivate %la&ers there is a hi#h de#ree of co %etition e7ist' The co %anies facin# the realities of a saturated arket of (ndia' To achieve which hel%ed & o!*ectives" ( conducted a surve& throu#h the 4uestionnaire coverin# close) e to understand the insurance scenario' ( did the anal&sis of data on the arket' The %rivate co %anies are lookin# outwards and now concentratin# on e er#in#
ended 4uestions' ( also took the hel% of secondar& data and the old re%orts in the li!rar&" !asis of different %ara eters' The dissertation #ave e a #reat learnin# e7%erience' (t is reall& a value addition to e as
TABLE OF CONTENTS P!$e N,. I"*r,#('*i," C,.1!"+ Pr,-i)e ,- ING VYSYA Li-e I"2(r!"'e C,.1!"+ Pr,-i)e ,- HDFC S*!"#!r# Li-e I"2(r!"'e Re2e!r'% Me*%,#,),$+ 8ro!le for ulation 2esearch o!*ectives 2esearch desi#n .ource of data collection Data collection ethod .a %lin# ethod .a %lin# si6e Area of stud& Li.i*!*i,"2 ,- *%e S*(#+ A"!)+2i2 !"# Di2'(22i," C,"')(2i," Re-ere"'e2 A11e"#i3
INTRODUCTION
INSURANCE
The !asic conce%t of insurance is to !uild a co on fund fro the %re iu s !& %olic&'
The fund undertakes to financiall& safe#uard the %olic& holders a#ainst the unti el& death" loss of earnin# ca%acit& and other thin#s like %urchase of house" land etc' The financial distri!uted a on# all the %olic&holders' (nsurance la&s the foundation of financial securit& a#ainst the +uncertain certaint&- of death' With insurance" one can leave !ehind what one has %lanned to save and not *ust" what one has actuall& saved' E.$., the followin# illustration will e7%lain how insurance work9 (n a villa#e" there are :;; houses' Each !uild at a cost of <";;";;;' Ever& &ear fire !reaks out And four houses are destro&ed in the fire' (f the villa#ers !uild a co Thus" the houses" which are destro&ed" can !e easil& re!uilt on fund" with each house contri!utin# 2s' <;; fund will have a collection of 2s':";;";;; ever& &ear'
CLASSIFICATION OF INSURANCE
T+1e2 ,- i"2(r!"'e
Li-e i"2(r!"'e
N,"4)i-e i"2(r!"'e
Mi2'e))!"e,(2 I"2(r!"'e
,idelit& Guarantee (nsurance Cro% (nsurance 5ur#lar& (nsurance ,lood (nsurance Cattle (nsurance Cash in Transit (nsurance
Whole Life (nsurance Ter (nsurance /aria!le Life (nsurance 1niversal Life (nsurance
Ge"er!) I"2(r!"'e
Marine (nsurance ,ire (nsurance 8ersonal Accident (nsurance /ehicle (nsurance
Li-e I"2(r!"'e
Life insurance is a contract where!& the insurer in consideration of %re iu in lu % su either %aid of
one& on the death of the insured or on the e7%ir& of a certain nu !er of &ears" whichever is earlier'
76 Ter. i"2(r!"'e
Ter insurance is a te %orar& %lan" %rovidin# insurance onl& over a s%ecified ter and does not !uild cash value for %olic&holders' The %re iu s %aid re%resent onl& insurance and not savin#s' The %olic&holders %refer to invest their savin#s the ust co %are the cash value of whole life insurance to insurance' Those who insurance' their additional costs to deter ine whether it is %refera!le to ter selves would like to o%t for ter
identified in the %olic& and to cover an& ad inistrative e7%enses' The second is used for invest ent and reflects savin#s for the %olic&holder' The internal revenue service for!ids the value of these savin#s fro e7ceedin# the %olic&?s death !enefit' The life insurance %olicies offered in (ndia are #enerall& of the followin# t&%es0 ' Mone& !ack 8ension Wo an Child insurance Disa!led Whole life Endow ent Grou% insurance
insurance co %ensates the loss to the insured when he is under the lia!ilit& of %a& ent to
56 M!ri"e I"2(r!"'e
Marine (nsurance is a contract of insurance under which the insurer undertakes to arine adventure' (t a& cover loss or da a#e to shi%" car#o" frei#ht" vessels" or arine adventure' an& other su!*ect of a
76 Fire I"2(r!"'e
,ire insurance is a contract or a#ree ent !etween the insurer and the insured where!& the insurer undertakes to inde nif& the insured for destruction of or da a#e to %ro%ert& caused !& fire or other s%ecified %erils durin# an a#reed %eriod of ti e" in return for %a& ent in lu % su or !& install ents
Mi2'e))!"e,(2 I"2(r!"'e
Miscellaneous insurance took the %resent sha%e at the later %art of ninteenth centur& with the industrial revolution in En#land' Accident insurance" fidelit& insurance" lia!ilit& insurance and theft insurance were the i %ortant for ti e' Lo&ds?s Association was the of insurance at that ain functionin# institution' Now insurance such
as cattle insurance" Cro% insurance" 8rofit insurance" etc are takin# %lace' The sco%e of #eneral insurance is increasin# with the advance ent of the societ&'
76 Cr,1 I"2(r!"'e
A contract of cro% insurance is a contract to %rovide a easure of financial su%%ort to illets" oil"
far ers in the event of a cro% failure due to drou#ht or flood' This insurance covers a#ainst all risks of loss or da a#es relatin# to %roduction of rice" wheat" da a#es has !een found !e#innin# in our countr& so far' seeds and %ulses etc' and also insurance of all cro%s a#ainst all risks of loss or
86 B(r$)!r+ I"2(r!"'e
5ur#lar& (nsurance falls under the classification of insurance of %ro%ert&' (n the case of !ur#lar& %olic&" the loss or da a#es of household?s #oods and %ro%erties and %ersonal effects due to theft" larcen&" !ur#lar&" house)!reakin# and act of such nature are covered' The actual loss is co %ensated'
:6 C!**)e I"2(r!"'e
A contract of cattle insurance is a contract where!& su a#ainst death resultin# fro of one& is secured to the a&
assured in the event of ani als like !ulls" !uffaloes" cows" and heifers' (t is a contract accident" disease and %arturitions condition as the case in the event of loss' !e' The insurer usuall& undertakes to %a& the e7cess su
THE HISTORY OF LIFE INSURANCE The stor& #oes !ack to around B<;; 5C" to the ancient civili6ation of 5a!&lon and a !usiness 8ractice called C!otto r&?' ,or all %ractice %ur%oses a for !otto r& ena!led .hi% owners to !orrow of arine insurance" one& a#ainst their shi% to %a& for the tri%' so e se !lance of securit&' erce or#ani6ed" alon# the
With %irac& ra %ant on hi#h .eas" traders and seafarers were reluctant to sail other lands for fear of their lives and #oods' 5otto r& #ave the (nsurance develo%ed ra%idl& with the #rowth of 5ritish co
wa& #oin# throu#h a %eriod of defaults and closures' The 5ritish !rou#ht insurance to (ndia in <A<A" re%lete with i %erialist %re*udices' The first (nsurance Co %an& in the countr& was the Oriental Life (nsurance" which insured onl& Euro%eans windows' 5ritish insurance eventuall& !e#an insurin# (ndian lives" !ut for a %re iu failed to safe#uard %olic&holder interest' that %a&a!le !& the 5ritish' The insurance Act <@DA introduced state controls on insurance" !ut even this
,loods" !reakdowns" li#htnin# and earth4uake' Da a#e to assets caused !& an& %erils is the risk that assets are e7%osed to' (nsurance !eco es relevant onl& if there are uncertainties of occurrence of events leadin# to Loss' We can sa& that hu an life is an inco e #eneratin# assets which can !e lost on earl& death On the other hand" disa!ilities caused !& accident'
(nsurance does not %rotect the assets !ut onl& co %ensates the econo ic or financial loss'
.avin#s out of life insurance funds are utili6ed in invest ents for #rowth' Lookin# to #eneral insurance !usiness" industr&" trade" would !e seriousl& handica%%ed in the a!sence of insurance cover relatin# to fire and en#ineerin# risks'
(n <@@@" insurance co %anies wrote 1. EB"DB: !illion in %re iu s worldwide" an increase of F'D %er cent over the %revious &ear and :'G %er cent after ad*ust ent for inflation' Of the total" 1s E@<B !illion was #enerated !& non)life !usiness" an increase of <'B %er cent after inflation; and 1. E<":<B !illion was fro life %re iu s" an increase of ade u% of 1. H'@ %er cent after inflation' (n B;;;" the fi#ures were 1. EB::D'F !illion"
E<"GB<'D in the life se# ent and 1. E@BB': in the non)life se# ent' This re%resented a #rowth of @'< %er cent and B'F %er cent res%ectivel&' 3owever" the develo% ent of the insurance arket de onstration wide re#ional dis%arities' The #lo!al insurance !usiness is concentrated in the industrial countries of North A erica" Western Euro%e" Ia%an and Oceania' To#ether these countries account for @<'D %er cent of #lo!al %re iu s' On a #lo!al avera#e" the e4uivalent of F'G %ercent of the #ross do estic %roduct is s%ent on insurance' At 1. ED"<;D %er ca%ital" the outla& for life insurance' At 1. ED"<;D %er ca%ita" the outla& for life insurance is the hi#hest in Ia%an' While the .wiss s%end the ost on non)life insurance' (n B;;:" the a!ove J entioned develo%ed countries of 1. accounted for @;'F %ercent of #lo!al %re iu s' A#ain" with a %er ca%ita %re iu ost countries" the non)life !usiness re#istered either a ne#ative or onl& ainl& !ecause of the downward trend in co ore than non)life with a #rowth rate of H'@ %er cent '(ts %re iu stron#er increase !oth over the %revious &ear and over the lon#)ter last <; &ears' (n fact" life insurance e7%erienced a !oo
ED"<HG" the Ia%anese continued to !e the hi#hest savers of life insurance and the .wiss' (n odest #rowth" ercial #rowth' Life insurance has #rowth inco e re#istered a avera#e trend of the
hi#her than #lo!al econo ic #rowth' This has !een !ecause of low interest rates' 2ather" concern a!out the state %ension %rovision has increasin#l& %roved to !e an i %ortant #rowth en#ine in %rivate life insurance' At #lo!al level" the %re iu s in North A erica and Euro%e e7%anded at a rate that a!ove the avera#e of the %revious <; &ears" while the e er#in# arkets #enerall& develo%ed at a slower %ace than the lon#)ter trend' The
%ositive develo% ents in North A erica and Euro%e can !e attri!uted to the !oo
in life
insurance' Ia%an" in contrast" had to contend with a renewed set!ack" the reasons for this are to !e found not onl& in econo ic sta#nation" !ut also in declinin# consu er confidence tri##ered !& insolvencies and the #uaranteed interest rate' A'',r#i"$ *, Mr. G. N. B!=1!i>&7??7/0 The drivers of #rowth of life insurance !usiness were %rivate %ension %rovisions in the 1.A and Western Euro%e alon# with inde7 linked %olicies !uo&ed !& the stock rallies u% to %re iu !usiness since the &ear <@@G' The volatilit& of sin#le %re iu arket id JB;;;' The u%swin# is also attri!uta!le to a dra atic rise in the sin#le !usiness is likel&
to introduce ca%riciousness in the otherwise steadil& #rowin# life insurance industr&' ,urther" accordin# to hi #rowth drivers of the non life insurance !usiness were a ro!ust financial crists' The China" 3on# Kon# K Taiwan a*or losses" the earnin# of the industr& arkets since<@A; has !een arkets" the volu e
re#ions re#isterd #rowth rates in e7cess of <; %er cent 'however" it is noteworth& that in s%ite of #ood #rowth and re%ortin# fewer re ained lackluster' Althou#h #rowth in the e er#in#
su!*ect to #reater fluctuations than in the industriali6ed countries" it has also !een si#nificantl& hi#her =@'A %ercent co %ared to :'@ %ercent>' (n the e er#in# fastest #rowin# were south and East Asia" where in the e er#in# ore than half of the %re iu
arkets was #enerated in <@@@'(n a!solute ter s" the industriali6ed arket with a share of
%re iu s in life and non J life insurance !usiness' This far e7ceeds their <G %ercent share of the #lo!al %o%ulation or FF %ercent share of the #ross do estic %roducts =GD8>' (nsurance densit& =%re iu %er ca%ital> is arkedl& lower in ost e er#in# arkets co %ared to industriali6ed countries" !ein# around 1. E:; on avera#e' There are never toeless" #reat differences !etween the arkets" with %re iu e7%enditure of over 1. E<";;; %er ca%ita and were thus co %ara!le to industriali6ed countries' That (ndia occu%ies a ver& low %lace in this scenario is seen fro the fi#ures %resented
!elow' The %resent %er ca%ita s%endin# on insurance =life and non J life %ut to#ether> in
(ndia is EA'G=B':non J life and H'< for life> %er &ear as a#ainst EHA'H =GH'F and <<'A> in !ra6il; Chile E<HD'; =:A'F and <<:'D>; 1K ED"B::'D =F:<'G and B"G;B'A>; Ia%an ED"@;A'@ =A;G and D"<;D':>; south Korea E <";BB'A =BHB'D and FH;'G>; china E<D'D =G'; and A'D>; Mala&sia E<:;': =HB'D and FA>; and south Africa E:@;'@ =FF'@ and :<D';>' (t will thus !e seen that (ndia is wa& !ehind an& other countries in this res%ect also'
industr&' 1nfortunatel&" des%ite the %ro#ress achieved !& the insurance industr& in (ndia (t co %ares unfavora!l& not *ust with the develo%ed countries" !ut also even with the develo%in# world' Thus" of the #lo!al insurance DB: !illion in <@@@" Lthe su ation of all %re iu arket worth an the astrono ical EB" %a& entsM with the 1. accountin# arket' There was no %erceiva!le
for al ost one)third and Ia%an a B<'B@ %er cent share (ndia accounted for a %athetic ;'DH %er cent share and was the world BDrd !i##est insurance i %rove ent in B;;;)B;;<' The #lo!al around E<" :<B'D !illion' The (ndian non)life #lo!al re ained arket for life insurance is esti ated to !e arket was a!out
arket" at EH !illion is *ust ;':D %ercent of that the arket' The situation
EB'D !illion in <@@@" which was *ust ;'BG %er cent of the world onl& a!out DG
uch the sa e in the su! Jse4uent &ear' A#ain" of the < !illion %eo%le in (ndia illion are covered !& insurance' The share of insurance funds in
household financial savin#s in (ndia reached <B'A %er cent in B;;;)B;;<' The share of life insurance in household savin# was <B'B %er cent durin# the sa e %eriod' The countr&?s life insurance %re iu was a are <'G %er cent of the GD8" co %ared to <<'H %er cent in .outh Korea' (n the non)life se# ent" (ndia is even weaker at ;'H %er cent' .everal factors account for this situation' Low dis%osa!le inco e is of course one i %ortant reason' One account of the low awareness voluntar& %rotection covera#e seekin# !ehavior is rare even in the iddle J class'
EA; !illion L2s' D::;;; croresM in the &ear <@@@' Onl& <;N of the of %o%ulation" (ndian insurance
unta%%ed' Onl& a lar#e nu !er of insurers can ta% this vast %otential' To serve <;; crore arket offers' Tre endous o%%ortunities to %ros%ective arket has to #rowth fast' With insurers and can easil& sustain a!out <;; insurers' 3ence" the re#ulator should issue licenses to a lar#e nu !er of insurers if the insurance increase in life s%an of individual and disinte#ration of the *oint fa il& s&ste " each individual has now arran#ed insurance cover for hi self and for the fa il&' 3ence" covera#e of insurers" which was around FN in <@@@" has now !een #rowin# at a ver& fast rate' (n fact" all the citi6ens in the insurance fro iddle class" esti ated around DG; illion can afford their own financial resources" the re ainin# %o%ulation has to !e #iven
su!sidi6ed insurance with the hel% of #overn ent and insurers' The hu#e life fund can !e utili6ed for financin# the infrastructure industr& as well as a su%%ort to other industries in the countr&' 3ence" insurance industr& is likel& to %la& a ke& role in chan#in# econo ic landsca%e of the countr&' 3owever" the success of insurance industr& will %ri aril& de%end u%on eetin# the risin# e7%ectation of the consu ers who will !e the real kin# in arket in the future' the li!erali6ed insurance
BENEFITS OF GLOBALI@ATION
(n this a#e of #lo!al inte#ration" no countr& can o%erate in isolation !ecause in ever& econo ic" social and %olitical activit&" there is considera!le interde%endence !etween countries' A #reater inte#ration of the arket with the rest of the world is accelerated !& ove ent of ca%ital across countries' Each the !reakdown of #eo#ra%hical !arriers to the
countr&" therefore" o%eratin# in the international nor s and !ehaviors essentiall&" #lo!ali6ation !rin#s !enefits to all %artici%atin# countries' The host countr& !eco es a reci%ient of lar#e forei#n invest ent and forei#n investors secure access to new and develo%in# arkets' .everal !enefits then flow in either direction in ter s of e7%andin# arketin# and %roduction technolo#ies" arkets" i %roved %roducts and services" new
arket in
virtuall& all sectors of the finical has !een onl& at the institutions in %articular have !een relativel& insured fro the national !oundaries' (n the
the advanta#e of o%enin# u% that could accure to (ndia" !usiness has to o%erate !e&ond ain" #lo!ali6ation will secure for (ndia lar#er inflows of arket !& forei#n ca%ital needed to sustain our GD8 #rowth' in addition" new entrants with a %rofessional a%%roach and state)of)the) art technolo#& will revolutioni6e the hel% in !uildin# e7%ertise with their !est #lo!al %ractices' !rin#in# a!out tre endous i %rove ent in service' Moreover" #lo!al co %etitions will
PRIVATISATION
(n the @;?s the #overn ent went on a refor !ein# and started loosenin# controls on ittee" headed !& for er (ndian industr&' (n <@@D" the #ovt' a%%ointed the Malhotra co %anel su! itted its re%ort a &ear later" reco
25( #overnor" 2'N Malhotra to draw u% a !lue %rint for insurance sector refor s' The endin# %rivati6ation !acked !& stiff entr& #uidelines and strin#ent re#ulation" to avoid a re%eat of the %re)nationali6ation free'
OBAECTIVES OF LIBERALI@ATION OF INSURANCE The ain o!*ective for o%enin# u% insurance sector to the %rivate insurance is9
To %rovide !etter covera#e to the (ndian citi6ens' To ar#u ent the flow of lon#)ter infrastructure' financial resources to the #rowth of
The %u!lic sector insurance co %anies have not succeeded in e7tendin# the insurance cover to all need& %eo%le of the countr& due to various reasons' 3ence this onerous res%onsi!ilit& has now has !een entrusted to %rivate insurers'
co %etition" and the ulti ate forei#n %rivate) sector co %etition' PURPOSE OF COMMETTEE To su##est the structure of the insurance industr& to assess the stren#ths and weaknesses of insurance co %anies in ter s of the o!*ectives of creatin# efficienc& and wide covera#e of insurance services to have a variet& of insurance %roducts with a hi#h 4ualit& service and to develo% an effective instru ent for resources for develo% ent' To ake reco endation for chan#in# the structure of the insurance industr&" for char#in# the #eneral %olic& fra ework' To take s%ecific su##estions re#ardin# L(C and G(C with a view to i %rove the functionin# of the ' To To (ndia' To ake reco endation on an& other atter which are relevant for develo% ent of the insurance industr& in (ndia' ake reco endation on the role and functionin# of surve&ors" inter ediaries like a#ents etc' ake reco endation on re#ulation and su%ervision of the insurance sector in o!ili6ation of financial
T%e ',..i**ee .!#e ! "(.9er ,- i.1,r*!"* !"# -!r4re!'%i"$ re',..e"#!*i,"2 Govern ent stake in the insurance co %anies to !e !rou#ht down to G;N' All the insurance co %anies should !e #iven #reater freedo 8rivate co %anies with a ini u to o%erate'
%aid u% ca%ital of 2s <!n should !e allowed a& !e allowed to enter the industr& in
to enter the industr&' No co %anies should deal in !oth life and #eneral insurance throu#h a sin#le entit&' ,orei#n co %anies colla!oration with do estic co %anies'
The insurance Act to chan#ed' The co act as inde%endent co %anies with econo ic an inde%endent re#ulator& !od&'
ittee felt the need to %rovide #reater otives' ,or this %ur%ose" it settin# u%
autono & to insurance co %anies in order to i %rove their %erfor ance and ena!le to
The L(C should use the M5A s%eciali6ed in Marketin# =a si ilar su##estion for the G(C su!sidiaries> (t su##ested that settle ent of clai s were to !e done within a s%ecific %eriod with out dela&' The co ittee su##ested that the federation of (nsurance (nstitute" Mu !ai should start new courses for inter ediaries of the insurance sector' The co s&ste The co ittee has several reco endations on 8roduct" 8ricin#" /i#ilance"
and %rocedures i %rovin# custo er service and use of technolo#&' ittee insisted that the insurance co %anies should %a& s%ecial attention
to the 2ural (nsurance 5usiness' 5ased on the a!ove reco endations of the Malhotra co ittee the insurance
re#ulator& authorit& =(2DA> was set u% in Ianuar& <@@H' The word +Develo% entwas added later and (2DA !ill was %assed'
T%e !(*%,ri*+ ',"2i2*2 ,- *%e -,)),Ci"$ .e.9er29 A chair%erson Not Not ore than five whole ti e ore than four %art ti e e !ers e !ers e !ers' The tenure of the chair%erson and e !ers
The central #overn ent would a%%oint the would !e five &ears'
F("'*i,"2 ,- IRDA
To e7ercise all %ower seven function of controller of insurance' 8rotection of the interest of the %olic&holders' To issue" renew" To %rescri!e odif&" withdraw or sus%end certificate of re#istration'
To conduct ins%ection $ audit of insurers" inter ediaries $ other or#ani6ation concerned with insurance'
PRIVATE INSURANCE OPERATING IN INDIA At %resent there are <D co %anies offerin# life insurance in (ndia' Out of these <B are %rivate insurance co %anies and one i'e L(C is state owned insurance co %an&' The twelve %rivate co %anies that have entered the (ndian are as follows' <> (NG /0.0A Life (nsurance B> 3D,C .tandard Life (nsurance D> (C(C( 8rudential Life (nsurance :> 5irla .un Life (nsurance G> Allian6 5a*a Life (nsurance H> OM Kotak Life (nsurance F> .5( Life (nsurance A> Aviva Life (nsurance @> Met Life (ndia (nsurance <;> TATA A(G Life (nsurance <<> Ma7 New Life (nsurance <B> AM8 .an ar Life (nsurance arket in the %ast three &ears
arket" the %rivate co %anies are now lookin# outward arket like (ndia and China' .ince the #estation %eriod of ake their %resence felt
a t&%ical insurance !usiness is around ten &ears" it is hi#h ti e to consu in# and difficult task to win custo ers awa& fro record of acco %lish ent and !rand value in overseas #ettin# i into the Dela& S). N, < B D : G H F A @ <; << <B
in (ndia' The new %la&ers will have to %rove their creditworthiness' (t will !e ti e a L(C and #ain their trust' Their arket will not hel% the uch in
ediate !rand reco#nition in (ndia' Alread&" several co %anies have entered arket and a do6en co %anies have alread& *ointed hands with forei#n %artners countries like (ndia and China' arkets' Per.i* S*!*(2 2eceived License 2eceived License 2eceived License 2eceived License 2eceived License 2eceived License 2eceived License 2eceived License 2eceived License 2eceived License 2eceived License 2eceived License
=see ta!le>' The real #rowth in B<st centur& will co e fro a& doo future afford to stake a clai
in these hi#h %otential S1e'i!)iD!*i," Life Life Life Life Life Life Life Life Life Life Life Life
I"#i!" P!r*"er /&s&a 5ank 3D,C Adidt&a 5irla Grou% (C(C( Kotak Mahindra ,inance Ma7 (ndia Tata Grou% 5a*a* Auto .5( .an ar ) Met Life (ndia
F,rei$" P!r*"er (NG (nsurance =Netherlands> .tandard Life =1K> .un Life =Canada> 8rudential =1K> Old Mutual =.A> New 0ork Life A(G =1.A> Allian6 ) AM8 A/(/A )
S,(r'e0 CCC.i"#!i"insurance'co
health" Disa!ilit& and %ension %lan %roducts' Out of this D;N have insurance and that too covers onl& BGN of their needs and financial ca%acit&' The re ainin# F;Nhave no insurance cover' The Life (nsurance arket in (ndia therefore is %racticall& unta%%ed'
.ince <@GH" with the nationali6ation of insurance industr&" the state)run Life (nsurance Cor%oration =L(C> has held the ono%ol& in the countr&' With around H;;;;; a#ents in ever& nook and corner " it has created a via!le !rand na e " %articularl& a on# the rural %o%ulation of the countr& '3owever on the 4ualitative side" it has ver& little to take %ride in and there lies the %otential for forei#n %la&ers to challen#e this !ehe oth' As is t&%ical with a hu#e unioni6ed" ri#id workforce is outdated' After %rivati6ation of insurance sector" A A ini u ini u net worth of 2s' G 5illion' ca%ital re4uire ent of 2s' < 5illion =this is andator& for an& %la&er in the an& %rivate co %anies ca e in force' The et as on D<st March B;;;' ostl& in the clerical cate#or&' Technolo#& used
%rivate sector "includin# !anks> Entr& throu#h a *oint venture' A net %rofit of last three &ears' Net non)%erfor in# assets that are +are reasona!le-'
(NG ) /&s&a Life (nsurance Co %an& 8rivate Li ited =the Co %an&> entered the %rivate life insurance industr& in (ndia in .e%te !er B;;<" and in a short s%an of : &ears has esta!lished itself as a distinctive life insurance !rand with an innovative" attractive and custo er friendl& %roduct %ortfolio ran#in# fro sales force' (NG Grou% has wide and dee% e7%erience in settin# u% co %anies in new re4uire su!stantial invest ents underlinin# (NG?s lon#)ter co arkets" which it ent' (n last B; %rotection" savin#" retire ent $ invest ent %lans =sellin# throu#h uni4ue tool ) Life Maker> and a %rofessional advisor
&ears (NG Grou% has esta!lished successful life insurance co %anies in <G countries contri!utin# to the develo% ent of insurance services in these countries successfull&'(t has a dedicated and co A; !ranches located in F; itted advisor sales force of over <<";;; %eo%le" workin# fro a*or cities across the countr& and over B"H;; e %lo&ees' (t
also distri!utes %roducts in close coo%eration with the (NG ) /&s&a 5ank network' The Co %an& has a custo er !ase of over D";;";;; $ is head4uartered at 5an#alore' (n B;;G" (NG ) /&s&a Life earned a total inco e in e7cess of 2s' :;; crore and has a share ca%ital of 2s' ::; crore' With an innovative" attractive and custo er friendl& %roduct %ortfolio !acked !& a %rofessional advisor force" it %roudl& servin# over <"G;";;; custo ers' (t 5ein# %art of the (NG Grou%" the world?s :th lar#est financial services #rou%O" trusted !& H; illion %eo%le across G; countries" with a herita#e of over <G; &ears' The Co %an& ake custo ers look at life insurance afresh" not *ust as a ta7 savin# device !ut eans to add %rotection to life' The one thin# we hold in hi#hest estee is PlifeP ai s to also as a
itself' (t !elieves in enhancin# the ver& 4ualit& of life" in addition to safe#uardin# an individualPs securit&' Our core values are therefore defined as 8rofessional" Entre%reneurial" Trustworth&" A%%roacha!le and Carin#' The Co %an&?s %ortfolio offers %roducts that cater to ever& financial re4uire ent" at an& life sta#e' (t !elieves in continuousl& develo%in# custo er)driven %roducts and services and value !ein# accessi!le and res%onsive to the needs of its custo ers'
(n fact" the co %an& has develo%ed the Life Maker' A si %le choose a %lan
ost suita!le to a s%ecific custo er !ased on his needs" re4uire ents and
current life sta#e' This tool hel%s !uild a co %lete financial %lan for life" whether the re4uire ent is 8rotection" .avin#" 2etire ent and (nvest ent'
Mi22i," +To set the standard in helping our customers manage their financial future-' C,r1,r!*e O9=e'*ive
(NG ) /&s&a Life stron#l& !elieves that as life is different at ever& sta#e" life insurance ust offer fle7i!ilit& and choice to #o with that sta#e' The& are full& %re%ared and co itted to #uide &ou on insurance %roducts and services throu#h their well)trained arketin# and custo er services" in the !est %ossi!le to !eco e one of the to% %rivate life insurance co %anies in (ndia and advisors" !acked !& co %etent wa&' (t is their ai
to !eco e a cornerstone of (NG?s inte#rated financial services !usiness in (ndia' (n short" we are a custo er J oriented co %an& with a clear or#ani6ation and strate#&" which is founded on value" !ased ana#e ent' We have a stron# %osition in ature arkets where we want to #enerate future #rowth throu#h %ro%er e7ecution of our !usiness funda entals =such as custo er satisfaction and develo%in# ana#in# costs" risk and our re%utation> and we focus on #rowth in retire ent services" direct !ankin# and life insurance in arkets' That we tr& to offer our shareholders a hi#her return than the avera#e of our %eers'
M!"!$i"$ Ri2
Mana#in# our risk and conse4uentl& the cost of ca%ital is essential for sta!le" %rofita!le #rowth' 2isk ana#e ent su%%ort value creation !& %rovidin# insi#ht into the levels of arket" insurance and o%erational risk into one co on risk we can a!sor! co %ared with our earnin# %ower and ca%ital !ase' (nte#rated risk ana#e ent =co !inin# credit" view> is a ke& in#redient in our strate#&' (t allows us to create a clear overview of all
risks' Our ulti ate #oal of inte#rated risk our risk a%%etite' This allows (NG to lower overall cost of ca%ital
M!"!$i"$ Re1(*!*i,"
(nte#rit& and re%utation are two of (NG?s ost i %ortant assets' Our stron# focus on relationshi%s
e7ecution has resulted in #reater e %hasis on the i %ortance of adherence to laws and re#ulations' 2e#ulator& co %liance is essential !ecause (NG?s lon#) ter %olic&' .enior with its clients de%end on inte#rit& and fairness' (NG has a #rou% wide co %liance ana#e ent is accounta!le for co %liance and inte#rated in their %erfor ance tar#ets and re uneration structure'
Gr,C*%
(NG also continues to invest in !usiness areas that have clear #rowth %otential' We have defined three in develo%in# !usiness' ain areas of #rowth9 retire ent services" direct !ankin# and life insurance arkets' (NG has stron# %osition in three !usinesses and intends to raise ature
further their %rofit %otential !& usin# the e7%erience and ca%ital #ained in (NG?s
(NG have a ver& !road %resence there' Toda&" (NG is the nu !er one life insurer in the re#ion and is well %ositioned to !enefit fro the #rowth of these
ING4VYSYA E BUSINESS PARTNERS (NG /&s&a 5ank Ltd'" is an entit& for ed with the /&s&a 5ank Ltd" a %re ier !ank in the (ndian 8rivate .ector and a #lo!al financial %owerhouse" (NG =(nternational Nederland Grou%> of he Dutch ori#in" in the &ear B;;B'
P!r*"er2
A $)!"'e !* ,(r eF(i*+ 1!r*"er20 (NG Grou% /&s&a 5ank
ING Gr,(1
(NG Grou% is known for its %hiloso%h& of Ckee%in# it si %le?' This thou#ht is the result of (NG Grou%?s <G; &ears of understandin# of custo ers? needs and fulfillin# the ' (NG is a #lo!al financial institution of Dutch ori#in' (t has <G; &ears of e7%erience" and %rovides a wide arra& of !ankin#" insurance and asset countries and is trusted !& over H; ana#e ent services in over G; illion custo ers' (ts <"<D";;; e %lo&ees work dail& stren#th to
to satisf& a !road custo er !ase J individuals" fa ilies" s all !usinesses" lar#e cor%orations" institutions and #overn ents' The (NG Grou% has #one fro stren#th &ear after &ear and is the worldPs <Fth lar#est co %an&' The (NG Grou% is the worldPs fourth lar#est financial services #rou%O with over 1. E < trillion in assets and %rofits of 1. E A'G !illion in B;;G'Over the last <G; &ears" (NG Grou% has #rown to !eco e one of the lar#est life insurance or#ani6ations in the world' Toda& it touches the lives of illions of %eo%le across G; countries'(NG Grou% has wide and dee% e7%erience arkets" which re4uire su!stantial invest ents it ent' (n the last B; &ears" (NG Grou% has co in settin# u% co %anies in new underlinin# (NGPs lon#)ter
esta!lished successful life insurance co %anies in <G countries contri!utin# to the develo% ent of insurance services in these countries successfull&'
V+2+! B!"
The ori#in of the /&s&a 5ank dates !ack to <@D;' .ince then the 5ank has #rown in si6e and stature and has reached the coveted %osition of nu !er one %rivate sector !ank in (ndia' The Karur /&s&a 5ank Li ited %o%ularl& known was such one to !e set u% in <@<H !& two #reat visionaries and illustrious sons of Karur" the late shri Ma /evkatarana Chettior and the late .hri Athi Krishna Chattier to include savin# ha!it and to %rovide financial assistance to traders and s all a#riculturists in and around KA212" a te7tile town in Ta il Nadu" it has now s%read its win#s far wide with BD: !ranches and G e7tension counters in << states and B union Territories the !ank has !een conductin# its affairs with re#ulations' eticulous care to !e in confor ance with all %rudential nor s and e7actin# statutor&
'
B;;D 2E/EN1E.
82O,(T.
2ank <' ARA 7. ING GROUP D' A..(C12AS(ON( GENE2AL( :' A/(/A G' METL(,E H' 821DENT(AL F' AEGON A' CN8 A..12ANCDE. @'821DENT(AL ,(NANC(AL <;'C3(NA L(,E <<'.AM.1NG L(,E <B'OLD M1T1AL52(TA(N <D'.W(.. L(,E <:'.1NL(,E ,(NANCE <G'LEGAL $ GENE2AL G2O18 ,2ANCE NETHERLANDS (TLA0 52(TA(N 1'.' 52(TA(N NET3E2LAND. ,2ANCE 1'.' C3(NA .O1T3 KO2EA 52(TA(N .W(SE2LAND CANADA 52(TA(N
illions
E illions <<DF :;HI <<:@ <GG< BB<F D:; B;B@ HG@ <BH: DB BFF ::H <FD @D: HH;
<<<@<B B;GB8 HHFGG G@F<@ DHBH< DG:FD DB<FG D;A;H BF@;F B;FAB <@<G@ <F<:G <H;DH <GF:< <GFD;
(NG Grou% is the world?s second lar#est life insurance S,(r'e0 www'in#v&s&ains'co .
RANKING OF ING VYSYA LIFE INSURANCE INFORTUNE ;??4TOP 7? CORPORATE GROUPS IN THE WORLD
S,(r'e0 www'in#v&s&alife'co
2ANK B; ;D B;; B
82O,(T.
E illion rank N chan# e fro B;;B <B'H G;'; AF'F DB'F
A..ET.
E illion rank
< B D :
< G D :
WAL)MA2T .TO2E. 58 ERRON MO5(L 2O0AL D1TC3K .3ELL G2O18 GENE2AL MOTO2.' ,O2D MOTO2. DA(MLE2C3 20.LE2 TO0OTA MOTO2. GENE2AL ELECT2(C TOTAL ALL(ANS C3E/2ONTE RACO ARA CONOCO83( LL(8. /OLKWAGE N N(88ON TELEG2A83 $ TELE83ONE ING GROUP C(T(G2O18 (NTE2NAT(O NAL 51.(NE.. MAC3(NE. AME2(CAN (NTE2NAT(O NAL G2O18
<B A B G
<<@ @< @D @:
1'. 1'. GE2MAN 0 IA8AN 1'.' ,2ANCE GE2MAN 0 1. ,2ANCE 1'.' GE2MAN 0 IA8AN
<@GDB:'; <H:G;G'; <GHH;B'B <GD<<<'; <D:<<AF'; <<A::<': <<:@:@'@ <<B@DF'; <<<@<B'B @@:HA'; @AHDH'; @ABB@'<
:'H ;': <;'F B;': <'@ BB'B <B'A BB'F A;': F;': B;'; @'H
DABB'; :@G'; G;F <;BAA'< <G;;B'; F@G;'H <ABA'@ FBD; <<DF': :FDG'; <BD@'D GF;;'<
::AG;F'; D;:G@:'; BB:AG:'A B<<AGB'F H:F:AD'; <;;AG@'F <<A;G:D'< A<:F;'; GHHHD<'< AB:GG'; <G;BH@'A <AHA;@'@
5H <A <@
5H <D <@
:8 D <A
57 B <B;
B;
1'.'
A<D;D';
B;'G
@BF:';
<;
HA';
HFAD:H';
BD
SWOT ANALYSIS
STRENGTHS
(NG /0.0A is the world?s second lar#est life insurance co %an& and ninth lar#est leadin# co %an&'' co %anies' The ,ourth Lar#est ,inancial .ervices Cor%oration in World" with assets e7ceedin# 2s' GB" ;;";;; Crores' co %etitors' Co %etitive %ricin# strate#ies as co %ared to its 2anked seventeenth in ,ortune G;; list of Glo!al
WEAKNESS
Less awareness level a on# the custo ers a!out insurance as a invest ent tool of for alities' Less nu !ers of !ranches' Clients face %ro!le s to !e insured due to lar#e nu !er
OPPORTUNITIES
(ncreasin# %urchasin# %ower of the %eo%le 3u#e ,avora!le #overn ent %olicies and su%%ort' arket is literall& unta%%ed' Out of esti ated DB; Million insura!le
T32EAT.
da& ,or the (nsurance sector #overn ent the (2DA !od& which is undertaken record of acco %lish ent of all the co %anies and char#e rules da& !& ore ri#id which is ver& difficult for the co %an&T
Tou#h co %etition due to entr& of new %la&ers and it is increased da& !& da&' Weak %erce%tion of %rivate %la&ers in the %eo%le' inds of (ndian
Li-e M! er The Life Maker" a tool that assists custo ers in !uildin# a co %lete financial %lan for life !& hel%in# the understand the !asic needs for !u&in# life insurance J 8rotection" .avin#" 2etire ent and invest ent' Pr,*e'*i,"0 ,irst" life insurance hel%s %rotect custo er?s inco e and their fa il&?s financial future in case he is not around'Con4uerin# Life S!vi"$0 second" life insurance works as a lon# ter to achieve ones life #oals' (t also #ives ta7 !enefits' Re*ire.e"*0 Third" life insurance retires and hel%s akes sure that custo er has re#ular inco e after he aintain standard of livin#' savin#" thus #ivin# financial stren#th
I"ve2*.e"*0 ,inal" life insurance is safe" lon#)ter invest ents' CHILD<S PROTECTION PLAN Cre!*i"$ Li-e C%i)# Pr,*e'*i," P)!" W%!* '!" *%i2 1)!" #, -,r +,(L
arket swin#s' At the end of the ter " custo er or his fa il& can en*o& added returns on
This %lan is %erfect if &ou have s all children' 0ou can %rovide for their future !& settin# aside a s all %ortion of &our current inco e' The children %ursue their drea will %rovide i ti e when the& need it' The Creatin# Life Child 8rotection 8lan hel%s &ou ensure that &our children?s future is secure and %ros%erous" so the& can %ursue their drea s no atter what the future !rin#s' ediate relief and the one& &ou set aside will hel% &our even when &ou are not around to take care of the ' Death cover aturit& !enefit will co e to &our child at the ri#ht
Ke+ Fe!*(re2
Guaranteed Maturit& 5enefits =8a& ent in case of Death and at Maturit&> ,le7i!le Maturit& 5enefit O%tions 5uilt)in Waiver of 8re iu 5enefit
aturit&' A final additional !onus !ased u%on the %erfor ance of co %an& is %aid on
De!*% Be"e-i*2
U No %re iu s have to !e %aid after the death of the %arent whose life is insured =5uilt)in waiver of %re iu U 0our child will be eligible for guaranteed maturity benefits.
L,!" Be"e-i*
After %a&in# a %re iu for three &ears" &ou will !e eli#i!le for a loan'
M!*(ri*+ Be"e-i*
0our child can either receive a lu % su install ents after the aturit& date' or receive the a ount in D or G e4ual
T!3 Be"e-i*2
Ta7 !enefits under .ection AA and .ection <; =<;D> are availa!le on all our life insurance %lans and riders'
Pr,#('* Fe!*(re2
E)i$i9i)i*+
Mini u Ma7i u Ma7i u entr& a#e9 <A &ears entr& a#e9 GG &ea aturit& a#e9 HG &ears
All contri!ution will !e transferred to &our individual %ension account =(8A> and char#es" as a%%lica!le" will then !e deducted The !alance in (8A will !e invested in the (NG /0.0A Ca%ital Guaranteed %lan" which is invested as follows' The !onus interest will !e in %ro%ortion to %eriod for which the &our (8A on D<st of March each &ear' onies are
invested in the (NG /0.0A Ca%ital Guaranteed %lan the &ear and will !e credited to
MAIN BENEFITS
On &our attainin# the chosen vestin# date" u% to one)third of the !enefit a ount can !e withdrawn and it is ta7 free under section <;=<;A> of the (T Act' The !alance a ount will !e utili6ed to %urchase an annuit&' (n case of death durin# the ter " &our s%ouse will have the followin# o%tions in res%ect of the !enefits under the %olic& (n case there is no s%ouse" the !enefit a ount will !e %aid in lu %su no ineeKle#al heirs' to the
5alance in assured (8A is #uaranteed on chosen date or on death' The assured also have the fle7i!ilit& To choose the re#ular contri!ution to !e To invest additional a ounts in the for ade each &ear' of To%)u% contri!utions' eet the re#ular
To take u% a contri!ution holida& when &ou are una!le to contri!ution' To start the %ension when &ou wish' To %ost%one &our retire ent date to To attach the ter rider if &ou wish ake !est use of
arket conditions'
ade are eli#i!le for ta7 e7e %tion under section A; ccc of the
entr& a#e entr& a#e defer ent %eriod defer ent %eriod vestin# a#e
%olic& will not la%se and will continue to e7ist and accrue !enefits" !ased on the invest ent %erfor ance of the (NG /0.0A Ca%ital Guaranteed 8lan'
SURRENDER
The %olic& can !e surrendered for cash after D &ears' The surrender value will !e the accu ulated !alance in the (8A at the ti e of surrender less a surrender 8enalt& as
!e#innin#" has !een to enhance residential housin# stock and %ro ote ho e ownershi%' hassle)free ho e loans and de%osit %roducts" to %ro%ert& related services and a trainin# facilit&'3D,C offer s%eciali6ation financial services to its custo er !ase throu#h %artnershi% with so e of the !est financial institutions worldwide'
Mi22i,"
The co %an& ai not *ust to !e the to% new life insurance co %an& in the ost %roductive co %an& in the arket' This does arket; rather it is a
co !ination of several thin#s like9 Custo er service of the hi#hest order' /alue for one& for custo ers' in carr&in# out !usiness'
8rofessionalis
(nnovative %roducts to cater to different needs of the different custo ers' 1se of technolo#& to i %rove service standards' (ncreasin# arket share'
V!)(e2
.ecurit& 8rovides lon#)ter financial securit& to the %olic& holders will !e'
Our constant Endeavour" the co %an& will !e doin# this !& offerin# life insurance and %ension %roducts' Trust" the co %an& a%%reciate the trust %laced !& our %olic&holders in us' 3ence" the co %an& will ai trust' to ana#e their invest ents ver& carefull& and live u% to this
(nnovation" reco#ni6in# the different needs of the custo ers" the co %an& will !e offerin# a ran#e of innovative %roducts to eet these needs'
The co %an&
ission is to !e the !est new life insurance co %an& in (ndia and these
On the BDrd Octo!er B;;;" this a !ition was reali6ed when 3D,C .tandard Life was the onl& life co %an& to !e #ranted a certificate of re#istration' 3D,C are the ain shareholder in 3D,C .tandard Life" with A<':N while .tandard a7i u invest ent
allowed under current re#ulations' 3D,C and .tandard Life have a lon# and close relationshi% !uilt u%on shared values and trust' The a !ition of 3D,C .tandard Life is to irror the success of the %arent co %anies and !e the &ardstick !& which all other easured' insurance co %anies in (ndia are
!ased in Mu !ai' Around this ti e" .tandard Life ana#e ent co %an&
%urchased a further GN stake in 3D,C and a GN stake in 3D,C !ank' (n a future develo% ent" .tandard life a#reed to %artici%ate in the asset %ro oted !& 3D,C to enter the on B;th Iul& B;;;' utual fund arket' The Mutual funds was launched
of Octo!er B;;; this a !ition was reali6ed when 3D,C .tandard Life co %an& to !e ain shareholder in 3D,C .tandard Life A<':N while .tandard life own <A'HN #iven .tandard Life?s e7istin# invest ent allowed under current re#ulations' 3D,C and .tandard life have a lon# and close relationshi% !uilt u%on shared values and trust' The a !ition of 3D,C .tandard Life is to irror the success of the %arent co %anies and !e the &ardstick !& which all other easured' insurance co %an&?s in (ndia are
STRENGTHS
Ade4uate financial stren#th of the co %an&' Good 5rand ( a#e a on# custo ers' Mini u char#es for surrendin# %olic&'
3D,C is !i##est (nstitution in the 5ankin# .ector and financial sector in (ndia'
WEAKNESS
Less awareness a on# the custo ers a!out the insurance as an invest ent tool' Less nu !ers of e %lo&ees' 3D,C .tandard Life (nsurance %re iu s are hi#h in co %arison of L(C' 3D,C .tandard Life (nsurance tar#eted in hi#h)inco e #rou%'
OPPORTUNITIES
(ncreasin# !u&in# %ower of the %eo%le' ,avora!le #overn ent %olicies and su%%ort' (ncreasin# de and of the insurance' Due to lon# e7%erience in financial sector will #ive hi#h %riorit& to 3D,C than other new %la&ers'
T32EAT.
Entr& of new %la&ers' And #overn ent %olicies Tou#h co %letion fro L(C'
%rovides financial securit& to the child in future" even in case of the insured %arents? unfortunate death durin# the %olic& ter ' Children?s %lan receives si %le reversionar& !onuses" which are usuall& added annuall&' This is a fle7i!le %lan with three o%tions for &ou to choose fro " de%endin# on &our re4uire ents' The details of these o%tions are e7%lain in the ne7t section The eli#i!ilit& a#es for the life assured under the %lan are as follows9 Mini u Ma7i u Ma7i u Mini u A#e At Entr& A#e At Entr& A#e At Maturit& Ter 9 <; &ears <A &ears H;&ears FG&ears Ma7i u Ter 9 BG&ears
I"#i'!*ive Pre.i(.2 P,)i'+ T+1e 2e#ular %re iu .in#le %re iu Mi"i.(. <; M!3i.(. :; Mi"i.(. <A M!3i.(. H; Mi"i.(. G; Mi"i.(. F?
G;
<G
DG
H;
G;
F;
C%i)#<2 C(rre"* A$eM 5+e!r A$e ,- P!re"* &+e!r2/ D; DG :; M!*(ri*+ Be"e-i* P)!" &R2./ A''e)er!*e# Be"e-i* P)!" &R2./ D,(9)e Be"e-i* P)!"&R2./ :"@DF G";FA G"DB<
The a!ove 4uoted %re iu s are for a < lack su %re iu 4uoted a!ove
ale life assured %a&in# annual %re iu s for a 2s' aturin# when the child is B< &ears old' The
O The a!ove 4uoted %re iu s are for a 2s' < lack su The %re iu 4uoted a!ove
ale life assured %a&in# annual %re iu s for a aturin# when the child is B< &ears old'
P,)i'+ *+1e
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BONUSES
The reversionar& !onus is usuall& declared annuall& as a %ercenta#e of the !asic su invest ent returns assured of &our %olic&
The ter inal !onus is so eti es added to a %olic& on vestin# and allowed the co %an& to %a& a fair share of with the %rofit fund" !ased on the ortalit& and other e7%erience over &our %olic& %lan'
BENIFITIARIES
On &our chosen retire ent =vestin#> date" &ou will #et the lu % su su cash lu % su W' The rest ust !e converted to annuit&' assured %lus an& attachin# !onus' 0ou can take u% to <KD rd of &our su assured as a ta7)free co %risin# the
(n case of unfortunate de ise durin# the %olic& ter " &our no inee will receive the followin#' POLICY TYPE BENIFITS De ise with first &ear De ise after first &ear 2e#ular %re iu %olic& A;N of the %re iu %aid 8re iu %aid to date alon# with co %ound interest calculated at A;N %er annu ' .u assured W !onus declared to date' BENIFITS
.in#le %re iu
%olic&
%aid
S,(r'e0 www'hdfcstandardlife'co
TAN BENEFIT
0ou will !e eli#i!le for Ta7 !enefits under section A;C of the (nco e Ta7'
surrender value includin# the value of an& attachin# !onuses is G;N of the %re iu s %aid su!se4uent to the first &ears in res%ect of the !asic !enefit" e7cludin# all additional %re iu s'
,or sin#le %re iu " %olicies" the #uaranteed surrender value" includin# the value of an& attachin# !onuses is <;N of the sin#le %re iu res%ect of the !asic !enefit =e7cludin# additional %re iu s>' %aid in
to one?s fa il& in the unfortunate death' .ince this non) %artici%atin# =with out %rofit> %lan is a %ure risk cover %lan" no !enefits are %a&a!le on survival to the end of the ter of the %olic&' W%+ S%,()# Y,( B(+ T%i2 P)!"L (f &ou have a fa il& then &ou care for" &ou should consider what would ha%%en in case of &our unfortunate death' The e otional void cannot !e filled" !ut financial insecurit& can !e a sin#le life !asis or a *oint life =first clai > !asis' The eli#i!ilit& a#es are as follows9 BASIC POLICY AGE Mini u Ma7i u Ma7i u a#e at entr& a#e at entr& a#e at e7%ir& <A H; HG S,(r'e0 www'hdfcstandardlife'co 5& takin# this afforda!le life insurance %lan" &ou can %rovide for the well)!ein# of &our fa il& in case of &our unfortunate death' This %lan co es to &ou at a is well suited for the value)conscious custo er' ini al cost and POLICY WITH ANY OPTIMAL BENIFIT <A GG HG
RESEARCH METHODOLOGY
Pr,9)e. F,r.()!*i," (n insurance scenario" there %revails a hu#e co %etition !etween the %rivate %la&ers and the %u!lic sector %la&ers' A on# the %rivate sector itself" a hi#h de#ree of co %etition e7ists a on# the %rivate %la&ers itself' (n this %ers%ective" 3D,C .tandard Life (nsurance #ivin# still co %etition to (NG /&s&a Life (nsurance" the %ro!le co %arison' RESEARCH OBAECTIVES To co %are (NG /0.0A L(,E (N.12ANCE and 3D,C .TANDA2D L(,E (N.12ANCE' To find out the custo ers o%inion a!out !oth co %anies' To anal&6e the insurance arket' with which the %ro*ect deals in the
RESEARCH DESIGN The research will !e of descri%tive t&%e and a stud& will !e undertaken to co %are the (NG /0.0A L(,E (N.12ANCE and 3D,C .TANDA2D L(,E (N.12ANCE on the !asis of followin# %ara eters' <> Lockin# 8eriod B> 2isk cover D> Maturit& A ount :> A ount of 8re iu to !e 8aid and Accidental G> 5enefits like Medideui
F> .ocial securit& as%ects A> 8ension @> Gratuit& <;> <<> /oluntar& 2etire ent .che e' =/2.> ,eatures of 8olicies !etween 3D,C .tandard (nsurance and
SOURCE OF DATA COLLECTION 5oth the %ri ar& and secondar& ethods of data collection have !een used' (n %ri ar& ethod we have done structure interviews and surve& throu#h 4uestionnaires' (n the secondar& data was collected !& referrin# throu#h we!sites" *ournals" !ooks" a#a6ines and old thesis'
SAMPLING METHOD The sa %lin# ethod chosen for the stud& is cluster sa %lin#' (n this t&%e in
of sa %lin#" the %o%ulation is divided into clusters where ever& ite an e4ual %ro!a!ilit& of !ein# selected' SAMPLING SI@E G; res%ondents' AREA OF STUDY Dehradun
%o%ulation has an e4ual chance of inclusion' The %rocedure #ives each ite
Insurance cover risk Insurance is prevention of losses Insurance provides profitable investments Insurance is savings All of the above
INTERPRETATION0 This #ra%h shows out of the G; res%ondents <;N res%ondents know a!out insurance cover risk" AN res%ondents know insurance is %revention of losses" HN res%ondents know insurance %rovides %rofita!le invest ents" HN res%ondents know insurance is savin# and F;N res%ondents know all of the a!ove'
O7.D, +,( ",C !9,(* ING VYSYA Li-e I"2(r!"'e !"# HDFC S*!"#!r# Li-e I"2(r!"'eL
Yes No
O:. W%i'% I"2(r!"'e 1)!" %!ve +,( 1(r'%!2e#L I- ",*, *%e" )e!ve *%e F(e2*i,"L
Child s !rotection !lan "etirement !lan #nit linked Insurance !lan Term$Insurance !lan %one& 'ack !lan
Child s !rotection !lan "etirement !lan #nit linked Insurance !lan Term$Insurance !lan %one& 'ack !lan
OI. Fr,. C%i'% i"2(r!"'e ',.1!"+ %!ve +,( 1(r'%!2e# ,r i"*e"# *, 1(r'%!2e *%e 1)!"L
IN( VYA)A *ife Insurance +,FC )tandard *ife Insurance *ife Insurance Corporation ICICI !rudential )'I *ife Insurance
gri4eance /andling
number of res2ondents 23.33. 43.33. /3.33. 3.33. --.--. /0.00. 12.22. +ighl& satisfied Neither satisfied 3. 3. +ighl& dissatisfei 3. +ighl& dissatisfei )eries1 )eries1
categories of res2ondents
Fi$(re ",.5
categories of res2ondents
Fi$(re ",.7
Ad4isor5s ser4ices
number of res2ondents 21.11. 53.33. 23.33. //. 12.22. 43.33. /3.33. 3.33. 3.33. +ighl& satisfied Neither satisfied
)eries1
categories of res2ondents
Fi$(re ",.8
Product (nformation
number of res2ondents 44.44. -3.33. /0.00. 43.33. 63.33. 12.22. 2. /3.33. 13.33. 3.33. +ighl& satisfied Neither satisfied
)eries1
categories of res2ondents
Fi$(re ",. :
2. +ighl& dissatisfei
)eries1
categories of res2ondents
Fi$(re ",.;
OG. T, C%!* e3*e"# !re +,( 2!*i2-+ Ci*% *%e P,)i'+ P!r!.e*er2, )i eL
$oc6ing Period
number of res2ondents 23.33. 43.33. /3.33. 3.33. --.--. /0.00. 12.22. +ighl& satisfied Neither satisfied 3. 3. +ighl& dissatisfei )eries1
categories of res2ondents
Ris6 co4er
number of res2ondents --.--. 23.33. 43.33. 12.22. -.--. 11. /3.33. 3.33. +ighl& satisfied Neither satisfied
3. +ighl& dissatisfei
)eries1
categories of res2ondents
(nsurance accordin# to res%ondents is" @N sa&s insurance is sa&s insurance cover risk" <HN sa&s sa&s insurance is savin#s and ::N sa&s all of the a!ove'
Amount on Maturit0
number of res2ondents 21.11. 53.33. 23.33. //. 12.22. 43.33. /3.33. 3.33. 3.33. +ighl& satisfied Neither satisfied
)eries1
categories of res2ondents
)eries1
categories of res2ondents
Amount of Premium
number of res2ondents --.--. 23.33. /0.00. 43.33. -.--. 2. /3.33. 3.33. +ighl& satisfied Neither satisfied
2. +ighl& dissatisfei
)eries1
categories of res2ondents
Deductions7 Rebates
number of res2ondents 23.33. 43.33. /3.33. 3.33. --.--. /0.00. 12.22. +ighl& satisfied Neither satisfied 3. 3. +ighl& dissatisfei )eries1
categories of res2ondents
)eries1
categories of res2ondents
Pension
number of res2ondents 21.11. 53.33. 23.33. //. 12.22. 43.33. /3.33. 3.33. 3.33. +ighl& satisfied Neither satisfied
)eries1
categories of res2ondents
'ratuit0
number of res2ondents 44.44. -3.33. /0.00. 43.33. 63.33. 12.22. 2. /3.33. 13.33. 3.33. +ighl& satisfied Neither satisfied
)eries1
categories of res2ondents
)eries1
categories of res2ondents
CONCLUSION
Throu#h the surve&" we can conclude that the different anal&6ed se# ent =Co !ine" Gender" and Occu%ation> reflects a scenario" where the consideration' <> 8eo%le are of the o%inion that insurance is not onl& acts as a risk cover !ut also acts a savin# instru ent' B> Ma*orit& of the %eo%le are co e to know a!out the insurance throu#h T'/ Advertise ents' D> The insurance %lan that consu ers have %urchased is Ter 8rotection %lans' And !est for the ' :> Ma*orit& of %eo%le have %urchased insurance %lan fro Cor%oration" reflects the faith of consu ers on it' G> A nu !er of %eo%le are of the o%inion that Grievance 3andlin# service" Custo er 2elationshi% service and 8roduct (nfor ation services of the co %an& are satisfactor& fro which %eo%le have %urchased the %lan' H> 8eo%le are of the o%inion that L(C and (NG /0.0A Life (nsurance are the !est service %rovider co %anies' F> Lar#e nu !er of custo ers? vi6'" housewives" !usiness en" Govt' e %lo&ees" 8vt' e %lo&ees" and %rofessionals are ore interested in (NG /0.0A in co %arison to 3D,C .tandard Life (nsurance' Now" (NG is develo%in# ra%idl& !ut it needs to co %ete with other %la&ers like L(C" to !eco e Nu !er One (nsurance Co %an&' Life (nsurance insurance and 1nit Linked insurance %lan" reflects that the& are interested in (nvest ent and ost of the %eo%le have %erce%tion that 8rotection %lan is a*orit& %eo%le a#ree to one
REFERENCES
Kotler 8hili%" +Marketin# Mana#e ent-" B;;D" 8u!lished !& 8earson Education =.in#a%ore>' Kothari' C'2' +2esearch Methodolo#&- =Bnd Edition>" Wishwa 8rakashan' Ku ar 2an*it" +2esearch Methodolo#&- =Bnd Edition>" .a#e 8u!lications" Delhi' www.ingvysyains.com www.hdfcstandardlifeinsurance.com www.irda.com
APPENDIN
OUESTIONNAIRE
NAME0 ADDRESS0 CONTACT NO0 AGE BG)DG DH):G :H)GG GHXa!ove SEN Male ,e ale EDUCATION 3i#h school (nter ediate Graduate 8ost Graduate 8rofessional An& other OCCUPATION 5usiness an 3ousewives 8vt' .ervice Govt' service 8rofessional INCOME G;;<)<;;;; <;;;<)<G;;; <G;;<)B;;;; B;;;<)DG;;; DG;;<)A!ove
O5. What do &ou know a!out (nsuranceT a> (nsurance cover risk' !> (nsurance is %revention of losses' c> (nsurance %rovides %rofita!le invest ents' d> (nsurance is savin#s' e> All of the a!ove' O7. 3ow do &ou co e to know a!out (nsuranceT a> News%a%ers Advertise ent' !> ,riends' c> T'/' Advertise ents' d> (nsurance Advisor' e> (f an& other" %lease ention QQQQQQQQQQ' O8. Which (nsurance %lan have &ou %urchasedT (f not" then leave the 4uestion' a> Child?s 8rotection 8lan' !> 2etire ent 8lan' c> 1nit linked (nsurance 8lan' d> Ter )(nsurance 8lan e> Mone& 5ack 8lan
O:. Accordin# to &ou" which (nsurance %lan is !est for &ouT a> Child?s 8rotection 8lan' !> 2etire ent 8lan' c> 1nit linked (nsurance 8lan' d> Ter )(nsurance 8lan e> Mone& 5ack 8lan O;. ,ro which insurance co %an& have &ou %urchased the %lanT
a> (NG /0.0A Life (nsurance' !> 3D,C .tandard Life (nsurance' c> Life (nsurance Cor%oration' d> (C(C( 8rudential' e> .5( Life (nsurance' f> (f an& other" %lease ention' QQQQQQQQQQ' OI. To what e7tent" are &ou satisfied with the services" likeT .ervices 3i#hl& .atisfied .atisfied Neither Dissatisfied 3i#hl& .atisfied Dissatisfied Nor Dissatisfied
Grievance 3andlin# Custo er 2elationshi% .ervices Adviser?s .ervices 8roduct (nfor ation Clai .ettle ent .ervices'
OH. 8lease rank" accordin# to &ou" which co %an& is the !est service %roviderT a> (NG /0.0A Life (nsurance !> 3D,C Life (nsurance c> Life (nsurance Cor%oration' d> (C(C( 8rudential' e> .5( Life (nsurance'