A SUMMER TRAINING PROJECT REPORT

ON
Customer Buying Behavior
AT
HDFC STANDAR LIFE INSURANCE CO. LTD.
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE
DEGREE OF MASTER IN BUSINESS ADMINISTRATION 2010-12

Table of CONTENTS

Student declaration..i
Certificate from Company/Organization ii
Certificate from Guide.iii
Acknowledgementiv
Executive Summary..v

Chapter Schemevi
List of Tables.vii
List of Graphsviii
List of Charts.ix
List if Abbreviations, if anyx

Page No
CHAPTER -1
About the Organization / Company Profile
1.1 Overview of Insurance Industry

1.2 Profile of HDFC

1.3 S.W.O.T Analysis

25

1.4 Problem of HDFC Life Insurance

27

1.5 Competition Information

29

Chapter-2
2.1 Purpose of the study
2.2 Objectives
2.3 Methodology study

37
37
37

2.3.1 Research Design

37

2.3.2 Data Collection

38

2.3.3 Design

38

2.3.3.1 Population

38

2.3.3.2 Sample Size

38

2.3.3.3 Sampling Technique

38

2.3.4 Method of Data Collection

39

2.3.4.1 Instruments for Data Collection

39

2.3.4.2 Drafting of Questionnaire

39

Chapter-3
About the Topic

40

Chapter -4
Analysis

47

Chapter -5
Facts/Findings

72

Chapter -6
Suggestions

73

Chapter -7
Conclusion and Limitation

74

Bibliography
Annexure
Evaluation Attendance Sheet

CHAPTER SCHEME
The study has been divided into 7 chapters.
Chapter 1 is about the company profile which includes history of insurance, industry profile and the
companys mission, quality objectives, values and its products, .
Chapter 2 is about the importance and purpose of my research which contains the purpose of the
study and the research objectives and the research methodology which includes research, research
design, sampling design and data collection.
Chapter 3 describes the topic of the study.

Chapter 4 deals with the detailed analysis of the questionnaire.

Chapter 5 shows the findings of the analysis
Chapter 6 includes suggestions to the company
Chapter 7 includes a conclusion of the study.

LIST OF CHARTS
MARKET SHARE

36

PREFRENCE OF RESPONDEENTS OF INSURANCE COMPANY

52

BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

53

INSURANCE POLICY THAT ATTRACTED RESPONDENTS

54

NUMBER OF INSURANCE POLICY TYPE RESPONDENTS

55

PEOPLE PERCEPTION ABOUT INSURANCE

56

PEOPLES HAVING INSURANCE

57

BUYING PROCESS OF THE PEOPLE

58

REASONS BEHIND FOR INSURANCE

59

SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

60

SATISFACTION OF RESPONDENTS WITH RESPECT TO SERVICE AGENT

61

NUMBER OF RESPONDENTS PAYING TAX

62

RESPONDENTS INVESTMENTS FOR TAX SAVING

63

RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR

SECURING THEIR FUTURE

64

WHAT PEOPLE INTENT TO GAIN FROM THEIR INVESTMENT

65

PEOPLES PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE

66

PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIE

67

WHAT PEOPLE WOULD LOOK FOR IN AN INSURANCE COMPANY

69

PEOPLE PLANNING FOR NEW INVESTMENTS

70

PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER

AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS

71

Chapter -1
Introduction
1.1 Overview of insurance industry:-

Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life
Insurance Company. First attempts at regulation of the industry were made with the introduction of
the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made
until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given
to the Government to collect statistical information about the insured and the high level of protection
the Act gave to the public through regulation and control. When the Act was changed in 1950, this
meant far reaching changes in the industry. The extra requirements included a statutory requirement
of a certain level of equity capital, a ceiling on share holdings in such companies to prevent

dominant control (to protect the public from any adversarial policies from one single party), stricter
control on investments and, generally, much tighter control. In 1956, the market contained 154
Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas
and targeted the higher echelons of society. Unethical practices adopted by some of the players
against the interests of the consumers then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into the so-called Life
Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity,
growth and reach.

Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.
General Insurance
The General Insurance industry in India dates back to the Industrial Revolution and the subsequent
increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought
General Insurance to India, and a similar path was followed in the development of this industry. A
number of private companies were in existence for years and years until, in 1971, the Indian
Government decided that the public interest would be served by nationalizing the industry, merging
all the 107 companies into four companies, depending on the sort of business transacted (Marine,
Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance
Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company

Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a holding company, having these four companies as its
subsidiaries.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins and
the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance
business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four
companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd.,
the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

1.2 Profile of HDFC Life :The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.
The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.
HDFC STANDARD LIFE INSURANCE COMPANY
Under this topic, the major headings that will be covered are as under:
HISTORICAL BACKGROUND
BOARD OF DIRECTORS
VISSION

VALUES
MISSION
PROMOTERS
GROUP COMPANIES DEPARTMENTATION

COMPANY HISTORY
HDFC STANDARD LIFE INSURANCE
HDFC Standard Life Insurance Company was incorporated on 14th August 2000, under the
name of HDFC Standard Life Insurance Company Limited.
Our ambition, tracing back to October 1995, was to be the first private company to enter the life
insurance market in India. On 23rd October 2000, this ambition was realized, when HDFC
Standard Life was the only life insurance company to be granted a certificate of registration.
HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance
companies offering a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading
housing finance institution and the Standard Life Group, United Kingdom. Both the promoters
are well known for their ethical dealings and financial strength and are thus committed to being a
long-term player in the life insurance industry important factors to consider when choosing
your insurer.
HDFC Ltd. and Standard Life Group, UK, have a long and close relationship built upon shared
values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent
companies and be the yardstick by which all other insurance companies in India are measured.
As a joint venture of leading financial services groups, HDFC Standard Life has the financial
expertise required, to manage long-term investments safely and efficiently.
HDFC Standard Life offers a range of individual and group solutions, which can be easily
customized to your specific needs. Our group solutions have been designed to offer you complete
flexibility combined with a low charging structure.
The Companys premium income, including the first year premiums and renewal premiums was
Rs.1532.21 crores for the period April 2005 to March 2006. HDFC Standard Life has covered
over 1.6 million individuals. The Company has also declared its 6th consecutive bonus in as
many years for our with profit policyholders.
Our Vision
'The most successful and admired life insurance company, which means that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set the standards in
the industry'.
'The most obvious choice for all'.

Our Values
Values that we observe while we work:
Integrity
Innovation
Customer-centric
People-Care-One-for-all-and-all-for-one

Team-work
Joy and Simplicity

Accolades and Recognition

Rated by 'Businessworld' as 'India's Most Respected Private Life Insurance Company' in

2004
Rated as the "Best New Insurer - 2003" by Outlook Money magazine, Indias number 1
personal finance magazine

MISSION
Their Mission is:
To be the top new life insurance company in the market.
This does not just mean being the largest or the most productive company in the market, rather it
is a combination of several things like Customer service of the highest order
Value for money for customers
Professionalism in carrying out business
Innovative products to cater to different needs of different customers
Use of technology to improve service standards
Increasing market share
Core Values:
SECURITY: Providing long term financial security to our policyholders will be our constant
endeavor. TRUST: They appreciate the trust placed by their policyholders in them. Hence,
they will aim to manage their investments very carefully.
INNOVATION: Recognizing the different needs of their customers, be offering a range of
innovative products to meet these needs

ORGANISATION STRUCTURE OF HDFC

The organizational pattern of the life Insurance companies are broadly similar each company has
a board of director president by a full time chairman cum managing director. Each company
operates to out the country through regional/area offices, divisional office and branches.
These would be clearer by diagram:Organizational Pattern Diagram

Chairman-Cum-Managing Director

REGIONAL MANAGER

DIVISIONAL MANAGER

BRANCH MANAGER

DEVELOPMENT OFFICER

AGENTS

Organization Diagram of the Branch:

Branch Sales
Manager (RM)

Sales
Manager

Direct Sales

Unit
Manager

Insurance
Advisors

Board of Directors
Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and Director
of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC
Limited in a senior management position in 1978. He was inducted as a whole-time director of
HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of the
Institute of Chartered Accountant(England & Wales).
Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in Law and
holds a Master's degree in Economics from Delhi University. She has been employed with
HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy
Managing Director in 2007. She is responsible for overseeing all aspects of lending operations of
HDFC Limited.
Mr. David Nish joined Standard Life on 1st November 2006 as Group Finance Director and
remained in that position until December 2009. He is the Chief Executive at Standard Life Plc. In
2000 he was awarded the Scottish Business Awards Finance Director of the Year and from 2004
to 2005 he served on the Government Employers Pension Task Force. He is a member of the
Institute of Chartered Accountants of Scotland. He joined the Board of Directors in February
2010.
Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standard Life in
the year 2010. Nathan joined Standard Life in 1982 as Investment Manager, responsible for all
UK net funds. He was appointed a Director of the Standard Life Investment board. He is a
Mathematics graduate from Oxford University and the Member of the Securities Institute. He
joined the Board of Directors in December 2009.
Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited
and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior

to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK
Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS
Securities and Managing Director International Equities. He was also responsible for Economic
and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board
of Directors in November 2005. Mr. Skeoch is a Fellow of the Securities Institute, Fellow of the
Royal Institute for the Encouragement of the Arts, Manufacture and Commerce, BA, MA.
Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of
Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee
Member of Midsnell Group International, an International Association of Independent
Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide
experience in auditing accounts of large public limited companies and nationalised banks,
financial and taxation planning of individuals and limited companies and also has substantial
experience in structuring overseas investments to and from India.
Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and
Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company,
Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate
Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA
from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.
Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India
Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange
Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve
Bank of India (RBI). Mr. Ravi Narain is a Cambridge University-trained Economist and an
MBA from Wharton School, University of Pennsylvania, USA.
Mr. A. K.T. Chari has joined HDFC Standard Life as a Director on March 10, 2010. Mr. Chari
has completed his Electrical Engineering from Madras University in 1962. He is associated with
Infrastructure Development Finance Company Ltd. (IDFC) for last 11 years. Currently he is
handling project finance for infrastructure projects at IDFC. Prior to this he was associated with
Infrastructure Development Bank of India (IDBI) from 1975 to 1999.
Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in May 2007, having been
Deputy Chairman since March 2006. He became a director of the Standard Life Assurance
Company in July 2003. He is also Chairman of Candover Investments plc and was appointed as
one of the UKs Business Ambassadors by the Prime Minister in January 2009. Gerry held
senior positions within the Department of Health and Social Security and HM Treasury until

1986. He then spent 13 years with Schroders in London, Hong Kong and New York, and was
Vice Chairman of Schroders worldwide investment banking activities from 1998 to 1999. He is
the Alternate Director to Mr. David Nish. He has completed Master of Arts, Master of Science in
Chemistry, Merton College, Oxford University and NATO-CCMS Fellowship Wolfson College,
Oxford University.
Mr. Michael G Connarty is responsible for Standard Life's investments in life assurance Joint
Ventures in India and China. He holds a degree in Law and MBA. He has worked with Standard
Life for 33 years in managerial positions covering a number of fields such as Pensions law,
International Marketing, Operational Management, Strategy, Risk, Compliance, Company
Secretarial and Banking. He has acted as Project Manager for the start-up project of the
Company in 2000. He is the Alternate Director to Mr. Norman K. Skeoch.
Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life. Before joining HDFC
Standard Life, he was the MD and CEO of Infosys BPO and was also heading an Independent
Validation Services unit in Infosys Technologies. He started his career with Bank of America
delivering diverse roles ranging from Head of Technology Investment Banking for Asia,
Regional Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of
Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore where he
headed their investment banking franchise for South East Asia and structured finance practice for
Asia before joining Infosys BPO in 2005. Mr. Chaudhry completed his Engineering in 1985 from
Birla Institute of Technology and Science, Pilani and MBA in 1987 from IIM, Ahmadabad.
Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. A
fellow of the Institute of Chartered Accountants of India, he has been associated with the HDFC
Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible for driving
and spearheading several key initiatives. As one of the founding members of HDFC Standard
life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing
strategy, leading recruitment, contributing to product launches and performance management
system, overseeing new business and claims settlement, customer interactions etc.

The Introduction

Serving customers
for over 180 years

Market leader in
the Housing
Finance Sector

Currently
administers 125
billion i n assets

Over 2 million
satisfied customers

Voted 5 Star Life

& Pensions
provider for last 10
years

Over 1,00,000
Crores in Loan
Approvals

PROMOTERS

CORPORATE PROFILE:-

Ranked as Indias
3rd Best Managed
Company by
Finance Asia-2005

250 Branches
11,00,000
Customers
Multiple Products
- Protection
- Unit Linked
- With Profit
More than
8 lakh
policyholders
Servicing over 440
towns in India

The Joint Venture of HDFC & Standard Life

HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted license by the IRDA to operate in life insurance sector. Each of the JV player is highly
rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL and ICRA.
Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poors. These reflect
the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and
Rs. 600,000 Cr respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is
the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of
18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.
The Partnership:
HDFC and Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies shared
similar values and beliefs and a strong relationship quickly formed. In October 1995 the
companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the
relationship.
The next three years were filled with uncertainty, due to changes in government and ongoing
delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in
parliament. Despite this both companies remained firmly committed to the venture.
In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development Finance

Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury
department to advise them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level. Therefore, in
January 2000 an expert team from the UK joined a hand picked team from HDFC to form the
core project team, based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in
HDFC Bank.
In a further development Standard Life agreed to participate in the Asset Management
Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched
on 20th July 2000.
Group companies
HDFC is a highly diversified group. Its group Companies are:
HDFC Limited
HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their
housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.
HDFC Bank Limited
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive approval from the Reserve Bank of India to set up a bank in the private sector. The bank
was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office
in Mumbai.
HDFC Securities Limited
HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the objective of
providing the diverse customer base of the HDFC Group and other investors, a capability to
transact in the Stock Exchanges & other financial market transactions.HDFC securities, provides
you with the necessary tools to allocate, select and manage your investments wisely, and also
support it with the highest standards of service, convenience and hassle-free trading tools.
HDFC Asset Management Company Limited
HDFC Fund is a dominant player in the Indian mutual fund space, recognized for its high
levels of ethical and professional conduct and a commitment towards enhancing investor
interests.
HDFC Realty Limited

HDFC Realty is a new, organized electronic marketplace for properties. HDFC realty
provides the entire gamut of real estate services, bringing together the "clicks world" and the
"bricks world" in a revolutionary and user-friendly way. Making available the best guidance, and
the most professional, transparent, efficient service to the real estate customer.
With over one century of experience in the field of non-life insurance from Chubb and HDFC's
expertise from the financial segment, HDFC Chubb General Insurance Company Limited has the
consumer insight to make its product range world class and comprehensive.
Standard Life
Standard Life is Europe's largest mutual life assurance company. Standard Life, which has
been in the life insurance business for the past 175 years, is a modern company surviving quite a
few changes since selling its first policy in 1825.
The company expanded in the 19th century from its original Edinburgh premises, opening
offices in other towns and acquiring other similar businesses.
Standard Life currently has assets exceeding over 70 billion under its management and
has the distinction of being accorded "AAA" rating consequently for the past six years by
Standard & Poor.

DEPARTMENTS IN ORGANISATION:
The various departments in the organization are:
The Human Resource Department
Investment Department
Customer Service and Operations Department
Information Technology Department
Strategy Department

PRODUCT & SERVICES

INDIVIDUAL PRODUCTS
We at HDFC Standard Life realise that not everyone has the same kind of needs. Keeping
this in mind, we have a varied range of Products that you can choose from to suit all your needs.
These will help secure your future as well as the future of your family.

 Protection Plans
Protection Plans help you shield your family from uncertainties in life due to financial losses
in terms of loss of income that may dawn upon them incase of your untimely demise or
critical illness. Securing the future of one's family is one of the most important goals of life.
Protection Plans go a long way in ensuring your family's financial independence in the event
of your unfortunate demise or critical illness. They are all the more important if you are the
chief wage earner in your family. No matter how much you have saved or invested over the
years, sudden eventualities, such as death or critical illness, always tend to affect your family
financially apart from the huge emotional loss.

Types of Protection Plans

HDFC Term Assurance Plan

This plan is designed to help secure your family's financial needs in case of
uncertainties. The plan does this by providing a lump sum to the family of the life
assured in case of death or critical illness (if option is chosen) of the life assured
during the term of the contract. One can choose the lump sum that would replace the
income lost to one's family in the unfortunate event of one's death. This helps your
family to maintain their financial independence, even when you are not around.
Advantages

High cover at a very nominal cost.

Flexibility to choose the Sum Assured.

Additional benefit options can be availed at marginal costs.

Premium amount remains the same over the term of the policy in case of regular
premium

Option of paying single premium or regular premium.

Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961.

HDFC Premium Guarantee Plan

HDFC Premium Guarantee Plan is an insurance plan that comes with twin advantage
of protection and return of premiums* on maturity. So, you can enjoy life knowing
that your family financial independence is secure even in your absence. And your
premiums are yours on your survival at maturity.
Advantages

High cover at a very nominal cost.

Flexibility to choose the Sum Assured.

Return of all your premiums paid on maturity*

Tax benefits under sections 80C and 10(10D) of Income Tax Act, 1961.

HDFC Loan Cover Term Assurance Plan

This plan aims to protect your family from your loan liabilities in case of your
unfortunate demise within the policy term. It provides the beneficiary with a lump
sum amount, which is a decreasing percentage of the initial Sum Assured. This means
that as the outstanding loan decreases as per the loan schedule, the cover under the
policy also decreases as per the policy schedule.
Advantages
o

Flexibility to choose the Sum Assured.

Decreasing Sum Assurance as the outstanding loan decreases ensures that you do
not pay for the protection you don't need.

Additional Optional Benefit is available at a nominal cost.

Option of paying single premium or regular premium.

Tax benefits are offered under section 80C, 80 D and 10(10D) of the Income Tax
Act, 1961.

HDFC Home Loan Protection Plan

This plan aims to protect your family from your loan liabilities in case of your
unfortunate demise within the policy term. It ensures that your family does not lose
the dream house that you have purchased for them, in case you are not around to
repay the outstanding monthly installments on your housing loan. This provides you
with the comfort of knowing that in your absence, a sum of money will be available
towards repaying your housing loan, making sure that your family will be secure in
your family home.
Advantages
o

A decreasing Sum Assured payable if you die during the term of the contract. This
sum assured is intended to help pay-off your outstanding home loan

Policy can be availed by paying a single premium in advance

The premium amount can be included in the housing loan and repaid as part of the
loan repayment installments

Decreasing Sum Assured makes sure that you do not pay for protection you don't
need

Childrens Plan
Children's Plans helps you save so that you can fulfill your child's dreams and aspirations.
These plans go a long way in securing your child's future by financing the key milestones in
their lives even if you are no longer around to oversee them. As a parent, you wish to provide
your child with the very best that life offers, the best possible education, marriage and life
style.
Most of these goals have a price tag attached and unless you plan your finances carefully,
you may not be able to provide the required economic support to your child when you need it
the most. For example, with the high and rising costs of education, if you are not financially
prepared, your child may miss an opportunity of a lifetime.

Types of Childrens Plan

HDFC Childrens Plan

As a parent, your priority is your child's future and being able to meet your child's
dreams and aspirations. With our HDFC Children's Plan, you can start building your
savings today and ensure a bright future for your child. This 'With Profits' plan is
designed to secure your child's future by giving your child (Beneficiary) a guaranteed
lump sum on maturity or in case of your unfortunate demise, early into the policy
term.

Advantages
o Lets you customize an ideal plan for your child and provide invaluable
financial support
o The Double Benefit Plan Option helps you secure your child's immediate and
future needs. In case of your unfortunate demise, we will pay the Sum
Assured to your child (Beneficiary). Your family need not pay any further
premiums and the policy continues. And on maturity of the plan, we will pay
you the Sum Assured plus Bonuses Declared
o You can choose to pay your premium as either Annually, Half-Yearly or
Quarterly depending on your convenience. You also have a range of
convenient auto premium payment options
o Tax benefits are offered under section 80C and 10(10D) of the Income Tax
Act, 1961

HDFC SL YoungStar Super II

There is no bigger joy than being able to fulfill your child's dream on your own. With
HDFC SL YoungStar Super II you can fulfill your child's immediate and future needs.

So tomorrow when your child needs our support you don't have to depend on anyone
else.
Advantages
o

In case of your unfortunate demise or critical illness, we will pay the greater of
Sum Assured (less partial withdrawals) or Fund Value to your child (Beneficiary).
The policy will terminate. We will pay 100% of all the future regular premiums to
the Beneficiary as and when due, on an annual basis. Please refer to the sales
brochure for details.

You can customize the ideal plan for your child by choosing the premium you
wish to invest along with the Sum Assured, depending on the level of protection
required.

This plan can be taken by filling Short Medical Questionnaire, which may not
require you to go for medicals. Kindly refer to the product brochure for details.

You can change your investment fund choices in two ways:

Switching: You can move your accumulated funds from one fund to
another anytime

Premium Redirection: You can pay your future premiums into a different
selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act,
1961

HDFC YoungStar Super Premium

With HDFC SL YoungStar Super Premium you can fulfill your child's immediate and
future needs- all on your own. Start saving now with this unit linked insurance plan
and be assured that savings for your child will continue, even in your absence. This
plan offers you choice of cover options and benefit payment preferences- all designed
to suit your needs.
Advantages
o The Triple Insurance Benefit helps you secure your child's immediate and
future needs. In case of your unfortunate demise or critical illness, we will pay

the Sum Assured to your child (Beneficiary). Your family need not pay any
further premiums. With Save -n- Gain benefit ,we will pay 50% of all the
original regular premiums towards your policy and 50% of the premiums will
be paid to the Beneficiary as and when due, on an annual basis. Any Death
Benefit or Critical Illness cover terminates immediately.
o You can customize the ideal plan for your child by choosing the premium you
wish to invest along with the Sum Assured, depending on the level of
protection required and Benefit payment preference.
o This plan can be taken by filling Short Medical Questionnaire, which may not
require you to go for medicals. Kindly refer to the product brochure for
details.
o You can change your investment fund choices in two ways:
-

Switching: You can move your accumulated funds from one fund to
another anytime

Premium Redirection: You can pay your future premiums into a

different selection of funds, as per your need

o Tax benefits are offered under section 80C and 10(10D) of the Income Tax
Act, 1961

Retirement Plans
Retirement Plans provide you with financial security so that when your professional income
starts to ebb, you can still live with pride without compromising on your living standards. By
providing you a tool to accumulate and invest your savings, these plans give you a lump sum

on retirement, which is then used to get regular income through an annuity plan. Given the
high cost of living and rising inflation, employer pensions alone are not sufficient. Pension
planning has therefore become critical today.
India's average life expectancy is slated to increase to over 75 years by 2050 from the present
level of close to 65 years. Life spans have been increasing due to better health and sanitation
conditions in the country. However, the average number of years of employment has not been
rising commensurately. The result is an increase in the number of post-retirement years.
Accordingly, it has become necessary to ensure regular income for life after retirement, so
that you can live with pride and enjoy your twilight years.

Types of retirement Plans

HDFC Life Personal Pension Plan

Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is
with you. Just take a moment and think. Will you be able to continue at the same pace? Will
your income be the same forever? Will you be able to live life on your own terms even after
you retire? The HDFC Personal Pension Plan is a 'With Profits' insurance policy that is
designed to provide a post-retirement income for life with the freedom to choose your
retirement date.
Advantages
o

This plan is designed to provide you a post retirement income for life- You can
choose your premium, the Sum Assured and your retirement date. At the end of
the policy term, you will receive the Sum Assured plus any attaching bonuses,
which will provide you a post retirement income in your golden years

On your chosen retirement (Vesting) date, you will get the lump sum comprising
the Sum Assured plus any attaching bonus.

You can take up to 1/3rd of your Sum Assured as a tax free cash lump sum

The rest must be converted to annuity

You can buy the annuity from us or any other insurer

For Regular Premium Policy, you can choose to pay your premium as either
Annually, Half-Yearly or Quarterly depending on your convenience. You also
have a range of convenient auto premium payment options

Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the
provisions contained therein

HDFC Life Classic Pension Plan

With HDFC Life Classic Pension Insurance Plan, you can be financially prepared for
your life - post retirement. This with profit traditional pension plan is designed to
assist you to live your post retirement days to a maximum - without any compromise.
This pension plan will build a corpus during the policy term so that you can enjoy
post retirement income for life. This limited pay plan offers guaranteed reversionary
bonus.
Advantages
o

This plan is designed to build your corpus during the policy term of your choice,
by giving you vesting benefit at end of the policy term. This vesting benefit, will
be used to provide you with the annuity in your golden years.

Also, provides financial protection to your spouse(nominee) by way of lump sum

payment in case of unfortunate demise within policy term.

On Vesting you will receive Sum Assured + attached bonuses.

As per prevailing Government regulations:

You can take up to 1/3rd of the total Vesting benefit as a tax-free cash lump
sum

The rest must be converted to annuity

You can buy the annuity from us or any other insurer

Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the
provisions contained therein
For more details on risk factors, terms and conditions, please read the Product
Brochure carefully and/or consult Financial Consultant before taking a decision.

HDFC Immediate Annuity

The HDFC Immediate Annuity is a contract that uses your capital to provide you with
a guaranteed gross income through out your lifetime or over a period of your choice.
The income is guaranteed and is unaffected by the rise and fall of interest rates. This

means you can plan your life the way you want it to be, safe in the knowledge that
your gross income will not fall during the period you have selected. The HDFC
Immediate Annuity offers a number of options to meet all your income needs.

Advantages
o

Income for Temporary Period Option: You can choose to limit the payment
period of annuity if you only require an income for a specified time. The annuity
is payable for your selected term provided you are still alive. No annuity is
payable after the chosen term has expired. You can choose to limit the payment
term to between 5 and 25 years. The term selected must be at least for one year
greater than any guarantee period

Death Benefits: In addition to a regular income, you can choose an annuity that
will pay out a benefit on your death or, if you have chosen to provide an annuity
for a named individual, on the later of your and the named individual's death. You
can choose the level of death benefit:

Full purchase price, or a proportion of the purchase price

Capital protection option- the amount paid on death is equal to the

purchase price less the gross annuity installments already paid under the
annuity

No death benefit is allowable where a guarantee period has been selected.

No death benefit is allowable where a Joint Life annuity reducing on death
of the first life has been selected

If you need to provide an income for someone after you die: The HDFC
Immediate Annuity can also provide an annuity for a named individual specified
in your application form. This annuity will be paid if you die before the named
individual. The amount of their annuity can be the same as your annuity or a
proportion of your annuity

HDFC SL Pension Maximus

HDFC SL Pension Maximus is a single premium unit linked pension plan which is
crafted to maximize your returns and assists you to live retirement days to a

maximum- a king size life. This pension plan is designed to build a corpus during the
policy term so that you can enjoy annuity for life.

Advantages
o

This plan is designed to provide you a post retirement income for life- choose your
single premium and after 10 years you will receive the vesting benefit, which will be
used to provide you with the annuity in your golden years

On Vesting you will receive greater of Fund Value or Guaranteed Vesting value. See
product brochure for details on Guarantee Vesting value

On your chosen retirement (Vesting) date, you will get the vesting benefit. As per
prevailing Government regulations:

You can take up to 1/3rd of the total Vesting benefit as a tax-free cash lump
sum

The rest must be converted to annuity

You can buy the annuity from us or any other insurer

Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the
provisions contained therein

Health Plans

Health plans give you the financial security to meet health related contingencies. Due to
changing lifestyles, health issues have acquired completely new dimension overtime,
becoming more complex in nature. It becomes imperative then to have a health plan in place,
which will ensure that no matter how critical your illness is, it does not impact your financial
independence.
In the race to excel in our professional lives and provide the best for our loved ones, we
sometimes neglect the most important asset that we have - our health. With increasing levels
of stress, negligible physical activity and a deteriorating environment due to rapid
urbanization, our vulnerability to diseases has increased at an alarming rate.

Types of Health Plans

HDFC Critical Care Plan

Critical Illness can strike anyone. Today with advancement in medical science it is
possible to survive a critical illness. Expenses on survival with a critical illness can be
very high. HDFC Critical care plan provides for a lump sum payment on survival post
diagnosis of a critical illness, so that in the event a critical illness strikes, you don't
have to dig into those precious savings of yours.

Advantages
o

Provides valuable protection on survival post diagnosis of a critical illnesses

Covers as many as 30 critical illnesses

Lump sum benefit payment paid irrespective of medical expenses

The policy continues even after the benefit payment paid on selected illness

Choice of the level of health cover and premium payment

Convenient and hassle free claims

Tax benefits are available under section 80D under Income Tax Act, 1961

HDFC Surgi Care Plan

In the fast paced lives that we lead, medical contingencies may arrive at our doorstep
uninvited. Surgery costs form a substantial portion of health care expenditure and
needs to be provided for. Health issues can get compounded if left unattended and
may require a surgery. Plus, the ever increasing costs of surgical procedures are sure
to burn a hole in our pockets.
HDFC SurgiCare Plan provides you with timely support in case you have to undergo
a major surgery and hospitalization, as the case maybe, ensuring your financial
independence at all times.

Advantages
o

82 major surgical procedures are covered.

Option to include hospital cash benefit

Automatic increase in the level of health cover (subject to terms and conditions)
ensures that the increasing medical costs are taken care of.

Lump sum benefits are paid regardless of the actual medical expenses.

The policy continues even after the after the payment of first or subsequent
surgical procedures, subject to terms and conditions as stated in the policy
brochure.

Flexibility to tailor-make the policy by choosing level of health cover, benefit

options level and premium payment as per your needs.

Convenient and hassle free claims with cashless benefits on surgeries and
hospitalization in any of the network hospitals.

Tax benefits can be availed under section 80D of the Income Tax Act, 1961

1.3 S.W.O.T Analysis

a. Strengths
The biggest strength of this origination is;
Money power, which makes them ignorant about the gestation period
Brand image, business experience and innovation product
The agents are very selectively chosen have excellent communication skill
Service quality which is crux of mission
Larger network branches which is help to customer for payment
Their strategy has been to grow the portfolio large enough so that there is an in built fund hedge and
in market where the portfolio has a large element of saving rather then protection
Product is price competitive compare with the competition and its upfront charge has been always
lower since from inspection.
Automatic balance the debt and equity component of the portfolio every quarter and first to come up
with health product (diabetics).
Average age of its policyholder is approx 8 year lower than LIC policyholder.
Strong agent network that bring 60% of the total premium (lower commission but high volume)
b. Weakness
High target for financial advisor and for sales department
Many competitions in the market offer same product by the title difference in the premium and
offering
Sustainable to risk associated with investment in money market
Try to catch middle lower level people also.
High expenses on advertisement
Most of the plans are too complicated in understanding for simple person so most of person avoids
such type of plan
More than 70% people live in rural area but ICICI Prudential is more centric in urban area.

c. Opportunity
Huge market is literally untapped, out of 320 million insurable markets only 25% of the people
insured
Health insurance and pension scheme, an estimated market potential of approximately $15 billion
HDFC STANDARD LIFE should give the insurance coverage both to the parents and children so
that their life should be covered in both cases the customer do not mind paying some premium for
that
India is fast growing market and 80 to 85% people are below age of 45
Leverage the customer base of Banc assurance partner
Strong distribution network
Insurance awareness are increasing in India
d. Threats
Player like Bajaj and Birla Sun Life with low premium for same plan
Entry of other private company with equal strong experience and financial strength of partner
making the competition difficult and saturating the urban market.
Current Govt. policies do not encourage in gross domestic saving. If the tax liabilities of the service
rise the customer will have little money to invest
LIC has woken up from sleep and is following competitive strategies. Its huge surplus in life fund
gives a capability to lodge price war
Product differentiation is difficult in market (bancassurance)
Competition is getting keener in couple of year
High opportunity expenses will be in future

1.4 Problems of the HDFC Life Insurance

Some of the difficulties and limitations faced by HDFC Life Insurance are:

Lack of awareness among the people This is the biggest limitation found in this sector.
Most of the people are not aware about the importance and the necessity of the insurance in
their life. They are not aware how useful life insurance can be for their family members if
something happens to them.

Perception of the people towards Insurance sector People still consider insurance just as a
Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the
end of the financial year like January, February and March making the other 9 months dry for
this business.

Insurance does not give good returns Still today people think that Insurance does not give
good returns. They are not aware of the modern Unit Linked Insurance Plans which are
offered by most of the Private sector players. They are still under the perception that if they
take Insurance they will get only 5-6% returns which is not true nowadays. Nowadays most
of the modern Unit Linked Insurance Plans gives returns which are many times more than
that of bank Fixed deposits, National saving certificate, Post office deposits and Public
provident fund.

Lack of awareness about the earning opportunity in the Insurance sector People still
today are not aware about the earning opportunity that the Insurance sector gives. After the
privatization of the insurance sector many private giants have entered the insurance sector.
These private companies in order to beat the competition and to increase their Insurance
Advisors to increase their reach to the customers are giving very high commission rates but
people are not aware of that.

Increased competition Today the competition in the Insurance sector has became very
stiff. Currently there are 14 Life Insurance companies working in India including the LIC
(life insurance Corporation of India). Today each and every company is trying to increase
their Insurance Advisors so that they can increase their reach in the market. This situation
has created a scenario in which to recruit Life insurance Advisors and to sell life Insurance
Policy has became very difficult

1.5 Competition Information:-

Aviva Life Insurance Company India Private Limited

Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK and
Dabur, one of India's leading producer of traditional healthcare products. Aviva holds a 26
per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share.
Aviva is UK's largest and the world's sixth largest insurance Group. It is one of the leading providers
of life and pensions products to Europe and has substantial businesses elsewhere around the world.
Aviva pioneered the concept of Bancassurance in India. Currently, Aviva has Bancassurance tie-ups
with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The
Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Cooperative Banks in Gujarat, Rajasthan, Jammu & Kashmir and Maharashtra and one regional Bank
in Sikkim.
Aviva has 40 Branches in India (including rural branches) supporting its distribution network.
Through its Bancassurance partner locations, Aviva products are available in 378 towns and cities
across India.
Bajaj Allianz
Bajaj Allianz is a joint venture between AllianzAG one of the world's largest insurance
companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.
Bajaj Allianz is into both life insurance and general insurance
Allianz Group is one of the world's leading insurers and financial services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000
employees. Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in
India and one of the largest in the world.

Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies.
Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants.
Birla Sun Life Insurance Company Limited
Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group
and Sun Life Financial of Canada. Aditya Birla Group is an Indian multinational
conglomerate with presence in India, Thailand, Indonesia, Malaysia, Philippines, Egypt,
Canada, Australia and China.
Sun Life Assurance, Sun Life Financials primary insurance business, is one of the leading
insurance companies of the world and ranks amongst the largest international financial
services organizations in the world. The Group has presence in several countries such as
Canada, United States, Philippines, Japan, Indonesia, India and Bermuda.

ICICI Prudential Life Insurance Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse and prudential plc, a leading international financial services group
headquartered in the United Kingdom.
ICICI was established in 1955 to lend money for industrial development. Today, it has
diversified into retail banking and is the largest private bank in the country. Prudential plc
was established in 1848 and is presently the largest life insurance company in the UK.
ICICI Prudential is curently the No. 1 private life insurer in the country. For the financial
year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium
for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies.

 ING Vysya Life Insurance Company Limited

ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank and ING
Group of Holland, the world's 4th largest financial services group, with presence across 50
countries, and a heritage of over 150 years.
ING Vysya Life Insurance Company Private Limited entered the private life insurance
industry in India in September 2001. With in a short span of time ING Vysya Life Insurance
has registered an impressive growth. The company currently has over 10,000 active advisors
working from 75 branches (in 30 cities) across the country and over 2300 employees.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra
Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial
institutions and offers a range of financial services such as commercial banking, stock
broking, mutual funds, life insurance, and investment banking.
Old Mutual was established more than 150 years ago and offers a diverse range of financial
services in South Africa, the United States and the United Kingdom. The company is listed
on the London Stock Exchange with a market capitalization and has its headquarters in
London.

 Life Insurance Corporation of India

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life
insurance business in India with its Head Office at Mumbai. It has been established by an act
of the Parliament and started functioning from 1/9/1956.
LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore
generated by the insurance industry through group business in the year 2005-06, LIC alone
accounted for Rs 3051 crore.
In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives
insured, LIC has shown a growth of over 152%. In respect of number of schemes, LIC has a
growth of 2%. LIC's market share in number of individuals covered and number of policies
stands at 77% and 81%, respectively.

Max New York Life Insurance Company Limited

Max New York Life Insurance Company Limited is a joint venture between Max India
Limited, a multi-business corporate, and New York Life International, a global expert in life
insurance.
New York Life is a Fortune 100 company that has over 160 years of experience in the life
insurance business. Max India Limited is a multi-business corporate dealing in Clinical
Research, IT and Telecom Services, and Specialty Plastic Products businesses.
Max New York Life Insurance started its operations in India in 2000. It is the first life

insurance company in India to be awarded the IS0 9001:2000 certification. Max New York
offers customized products tailored to suit individual's needs. With its various Products and
Riders, there are more than 400 product combinations to choose from. Today, Max New York
Life Insurance has a network of 57 offices spread over 37 cities all over India.
Met Life India Insurance Co. Private Limited
MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its Indian
partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka Bank,
Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.
Met Life Group has presence in America and Asia and has an experience of over 137 years in
providing financial services. The MetLife companies are the number one life insurer in the
U.S. with approximately US $2.8 trillion of life insurance in force. MetLife serves 88 of the
top one hundred FORTUNE 500 companies. MetLife entered Indian insurance sector in
2001.

Reliance Life Insurance Company Limited

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP
Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided
Reliance Life Insurance a readymade infrastructure and a portfolio.
AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar
Group. Headquartered in Chennai, AMP Sanmar had over 90 offices across the country,
9,000 agents, and more than 900 employees.

 State Bank Of Idia Life Insurance

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of
France. SBI Life Insurance is registered with an authorised capital of Rs 500 crore and a paid
up capital of Rs 350 crores.
State Bank of India is the largest banking franchise in India. Along with its 7 Associate
Banks, SBI Group has a network of over 14,000 branches across the country, the largest in
the world.
Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading Bank.
BNP is one of the oldest foreign banks with a presence in India dating back to 1860.

Shriram Life Insurance Company Limited

Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based Shriram
Group and the South African insurance major Sanlam.
The company launched its operations in India in December 2005.
Shriram Life has set a target of achieving a premium income of Rs 110 crore during the first
year of operations. While focusing largely on the strong network of over 65,000 agents and
distribution network of more than 550 branches, Shriram Life is also contemplating banc
assurance alliances with couple of banks.

 Tata AIG Life Insurance Company Limited

Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and
American International Group, Inc. (AIG). Tata Group is one of the oldest and leading
business groups of India. Tata Group has had a long association with India's insurance sector
having been the largest insurance company in India prior to the nationalisation of insurance.
The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a
group company incorporated way back in 1919.
American International Group, Inc is the leading U.S. based international insurance and
financial services organization and the largest underwriter of commercial and industrial
insurance in the United States. AIG has one of the most extensive life insurance networks in
the world.

MARKET SHARE 2010

In line with expectations, life insurance industrys new business volumes in the individual
new business segment remained strong 36% Y-o-Y and 23% M-o-M in August 2010.
In the individual new business segment, while LIC, ICICI and HDFC improved WNRP
industry market share(YTD) by 3.8 % point, 1.5% points and 0.7% points respectively. Bajaj
Allianz (1.8% points), Birla(1.25% points), SBI(1.26% points) and Reliance(0.31% points)
lost significantly. At 5m FY11 end, private insurers market share stood ~ 50%.
Here is how Various Life Insurance stack up against the Industry as a whole. The following
Data suggests that LIC is still the market leader followed by ICICI Prudential, HDFC
Standard Life, SBI, Reliance, Bajaj, Birla Sun Life, Max New York etc.

MARKET SHARE
LIC
ICICI
SBI
BAJAJ
KOTAK
METLIFE
TATA AIG
MAX NEW YORK
HDFC STANDARD LIFEE
RELIANCE
OTHERS

2.1PURPOSE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new players
have entered the market and are vying to gain market share in this rapidly improving market. The
study deals with HDFC Standard Life in focus and the various segments that it caters to. The study
then goes on to evaluate and analyses the findings so as to present a clear picture of trends in the
Insurance sector.

2.2 OBJECTIVE
To determine reasons behind opting for an insurance.
To provide the company with information of customer's Insurance policy if they have any and
reasons for opting for that particular policies.
To study the types of benefits provided by insurance services.

2.3 METHODOLOGY OF STUDY

2.3.1 Research Design:
Exploratory research is conducted with the help of using an interview and questionnaire schedule
for this project. In this type of research, the researcher has to contact the person directly to know the
available information and analyze these to make a critical evaluation. The facts or information
required to analyze the data was available in interview schedule. This was one of the main sources
for the project.

2.3.2 Data Collection

Primary Data:
A Primary Research been conducted:
The questionnaire was prepared for the companies and following areas covered:
Distribution Channel of Insurance Company
Consumer profile
Satisfaction level with the current Insurance Company on the basis of return
Reason for the selection of specific insurance policy and company
Desirable features of the product and risk aptitude
Secondary Research:
Collection of data from websites and catalogues to understand the product and the charges of the
different Insurance Company.
2.3.3 Design:
2.3.3.1 Population:
The respondents who were asked to fill out questionnaires are the Population. These comprise of
employees of MNCs, Govt. Employees, Self Employed, Students etc.

2.3.3.2 Sample size:

The sample size was restricted to only 100, which comprised of mainly peoples from different
regions of Delhi due to time constraints.

2.3.3.3 Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was
done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only
after certain important changes were done. Thus my sampling came out to be judgmental and
convenient.

2.3.4 Methods of Data Collection:

2.3.4.1 Instruments for data collection
The research instruments used for this survey were structured questionnaires. The questionnaires
were designed to find the reason to buy insurance policy.
Questionnaire: A questionnaire consists of a set of questions prepared to respondents for their answers. Because of
its flexibility, the q u e s t i o n n a i r e i s b y f a r t h e c o m m o n i n s t r u m e n t u s e d t o
c o l l e c t primary data. Closed Ended as well as Open Ended questionnaire were used
in my market research

1.3.4.2
Drafting of a Questionnaire: The formulation of the questionnaire, i.e., the structure and the
disguise to be used in the questionnaire depends upon the kind of i n f o r m a t i o n
t h a t i s d e s i r e d . Q u e s t i o n n a i r e w a s p r e p a r e d o v e r a period of days by
intensive brainstorming. Valuable advice regarding changes was given by my project guide,
Mr. Nitin Walia, has resulted in the formulation of the questionnaire through which
responses were collected and analyzed. A copy of the questionnaire has been attached as an annexure

to the project. Since my objective was to derive out the maximum information. I decided to keep
majority of the questionnaire close- ended.

CONSUMER BUYING BEHAVIOR

Definition:
Consumer behavior refers to the mental and emotional process and the observable
behavior of consumers during searching, purchasing and post consumption of a product
or service.
Consumer behavior involves study of how people buy, what they buy, when they buy and
why they buy. It blends the elements from psychology, sociology, sociopsychology,
anthropology and economics. It also tries to assess the influence on the consumer from
groups such as family, friends, reference groups and society in general.
Buyer behavior has two aspects: the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone.
MODEL OF BUYING BEHAVIOUR

In the above model, marketing and other stimuli enter the customers black box and produce certain
responses. Marketing management must try to work out what goes on the in the mind of the
customer the black box. The Buyers characteristics influence how he or she perceives the
stimuli; the decision-making process determines what buying behavior is undertaken.

Factors Affecting Consumer Buying Behavior

Consumer buying behavior is influenced by the major three factors:
1. Cultural Factors
2.

Social Factors

3. Personal Factors
4. Psychological Factors

1. Culture Factors
Culture, subculture and social class are particularly important in buying behavior. Culture is
the fundamental determinant of a persons wants and behavior. The growing child acquires a
set of values, perception, preferences and behaviors through his or her family and other key
institutions.
Each culture consists of smaller subcultures that provide more specific identification and
socialization for their members. Subcultures include nationalities, religions, racial groups and
geographic regions
Social Classes reflect not only income, but other indicators su cjh as occupation, education
and area of residence. Social classes differ in dress, speech patterns, recreational preferences
and many other characteristics.

2. Social Factors
Social factors refer to forces that other people exert and which affect consumers
purchase behavior. These social factors can include culture and subculture, roles and
family, social class and reference groups.
Example:
By taking into consideration Reference group, these can influence/ affect the
consumer buying behavior. Reference group refers to a group with whom an
individual identifies herself/ himself and the extent to which that person assumes
many values, attitudes or behavior of group members. Reference groups can be
family, school or college, work group, club membership, citizenship etc.
Reference groups serve as one of the primary agents of consumer
socialization and learning and can be influential enough to induce not only socially
acceptable consumer behavior but also socially unacceptable and even personal
destructive behavior. For example, if fresher student joins a college / university,
he/she will meet different people and form a group, in that group there can be
behavior patterns of values, for example style of clothing, handsets which most of
group member prefer or even destructive behavior such as excessive consumption of
alcohol, use of harmful and addictive drugs etc. So, according to how an individual
references him / herself to that particular reference group, this will influence and
change his/her buying behavior.

3. Psychological Factors
These are internal to an individual and generate forces within that influence
her/his purchase behavior. The major forces include motives, perception, learning,
attitude and personality.
Example:
Attitude, is an enduring organization of motivational, emotional, perceptual
and cognitive processes with respect to some aspect of our environment.

Consumer form attitude towards a brand on the basis of their beliefs about the
brand. For example, consumers of Sony products might have the belief that the
products offered by Sony are durable; this will influence those customers to buy
Sony products due to this attitude towards the brand.

4. Personal Factors
These include those aspects that are unique to a person and influence purchase
behavior. These factors include demographic factors, lifestyle, and situational
factor
Example:
Lifestyle is an indicator of how people live and express themselves on the
basis of their activities, interests, and opinions. Lifestyle dimension provide a
broader view of people about how they spend their time the importance of things
in their surroundings and their beliefs on broad issues associated with life and
living and themselves. This is influenced by demographic factors and personality.
E.g. A CEO or Manager is likely to buy more formal clothes, ties and
shoes or PDAs and less informal clothes like jeans as compared to a Mechanic or
Civil engineer. So according to their lifestyle and profession, the buying behavior
of people differ from one another.
CONSUMER BUYING DECISION PROCESS
Definition:
Consumer buying decision process is the processes undertaken by consumer in regard to
a potential market transaction before, during and after the purchase of a product or
service.
Consumer decision making process generally involves five stages:

1. Problem Recognition
Purchase decision making process begins when a buyer becomes aware of an unsatisfied
need or problem. This is the vital stage in buying decision process, because without
recognizing the need or want, an individual would not seek to buy goods or service.
There are several situations that can cause problem recognition, these include:
Depletion of stock
Dissatisfaction with goods in stock
Environmental Changes

 Change in Financial Situation

Marketer Initiated Activities

2. Information Search
After the consumer has recognized the need, he / she will trying to find the means to
solve that need. First he will recall how he used to solve such kind of a problem in the
past, this is called nominal decision making. Secondly, a consumer will try to solve the
problem by asking a friend or goes to the market to seek advice for which product will
best serve his need, this is called limited decision making.
Sources of information include:
Personal sources
Commercial Sources
Public sources
Personal experience
3. Evaluation of Alternatives
Consumers evaluates criteria refer to various dimension; features, characteristics and
benefits that a consumer desires to solve a certain problem. Product features and its
benefit is what influence consumer to prefer that particular product. The consumer will
decide which product to buy from a set of alternative products depending on each unique
feature that the product offers and the benefit he / she can get out of that feature.
4. Purchase Decision
This stage involves selection of brand and the retail outlet to purchase such a product.
Retail outlet image and its location are important. Consumer usually prefers a nearby
retail outlet for minor shopping and they can willingly go to a far away store when they
purchase items which are of higher values and which involve higher sensitive purchase
decision. After selecting where to buy and what to buy, the consumer completes the final
step of transaction by either cash or credit.

5. Post-purchase Actions
Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the
purchase is basically a function of the initial performance level expectation and perceived
performance relative to those expectations. Consumer tends to evaluate their wisdom on
the purchase of that particular product. This can result to consumer experiencing post
purchase dissatisfaction. If the consumers perceived performance level is below
expectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so
the brand and/ or the outlet will not be considered by the consumer in the future
purchases. This might cause the consumer to initiate complaint behavior and spread
negative word-of-mouth concerning that particular product.

5. Consumer analysis
We analyze consumers because; this is the basis for all market strategies like segmenting, targeting,
and positioning. Without an understanding of customer, it would be impossible for the market to
drive the offer. A consumers buying behavior is influenced by cultural, social and personal factor.

5. a. Cultural factor; Culture is fundamental determinant of a persons needs and behavior. People acquire a set of value,
perception and behaviors through his or her family and other institution. Indian people want
achievement and success, comfortable efficiency and practicality, freedom and youthfulness. In other
word there are multicultural environment in India.
Indian loves their family and they want to secure their family from unnatural event. Indian give first
preference to his family after than others. They do not want to take loan and they want to invest their
money in long-term investment for child education and marriage.
When we say about metropolitan city, dependency on old age on son is decreasing. People want to
accumulate some fund for old age so HDFC STANDARD LIFE should concentrate on gratuity or
pension plan.
Indian people also affected from sub culture. Urban people want to take more insurance comparison
than rural (due to high per capita income, insurance awareness, social security, investment purpose,
tax saving purpose). Religion also effect on insurance. HDFC STANDARD LIFE is using this thing
very well. They use sinduor and marriage in their advertisement and show that when you marriage
from someone, her all liabilities is your liabilities and we will help you in this situation. We will
make relation as like as sindur (here means long term stable relationship). In other word HDFC
STANDARD LIFE want to say that we will cover you at every step in life (sorrow or happiness).
Consumer behavior is also affected from reference group. Firstly, people see that which insurance is
bestseller after that they purchase. They also influence from agent. People do not concentrate on
their need due to agents influence. Social class also affect on consumer behavior. Lower class does
not want insurance. Upper lower class wants insurance for saving purpose. Working and middle class
want insurance for protection and saving purpose and lastly, upper class want to purchase insurance
for investment tax benefit and saving purpose.
5. b. Social factor; Consumers are also influenced by social factor for example; reference group, family, and social role
and status. Consumer behavior is firstly influenced from membership group such as family, neighbor

and co-worker. Insurance is such type of product where people awareness is very low so people do
not very much about insurance. They think, insurance is only tax saving instrument so they fully
dependent on agent for taking insurance. When agent say about any product, that time they inquiry
from neighbor and co-worker about that product. If any body suggests that, this product and I have
also taken this product. Individual think that, this product also best for him. He does not concentrate
on his need and requirement.
Secondly, he is influenced by information influences. If he goes to purchase insurance, he makes
enquiry about this product from his personal sources. He study newspaper and search on Internet and
gather all information related product. If he is satisfied from that information, he decides to buy
insurance. People also influence from opinion leader, this opinion leader may be Mukhiya, or
Surpanch in rural area or this may be any leader, actor or cricket player in urban area. If opinion
leader say or advertise about any product, people are influenced from opinion leader because opinion
leader keep good position in society.
Family and household pattern also influence consumer behavior. Due to less security of individual
family, people want to purchase insurance, but in joint family people give less attention in buying
insurance. If all family are well earning, there are given less attention on insurance in such family.
But if earning member is less and dependent is more in such type of family insurance is very
important. Women want more security so women are taking main role in purchase decision where,
women influence consumer behavior.

5. c. Personal factor; A consumer decision is also influenced by personal characteristics for example the buyer age and
stage in life cycle, occupation and economics circumstances, personality, self-concept, life style and
value.

When we say about age and life, first is bachelor stage. They are generally young independent and
they are in early stage of his carrier and earning. They mostly think that they have no need of
insurance because in that time they have no dependent. However, some people have some dream and
dependent also. They are in such stage where they can take more risk so they mostly prefer to invest
in ULIP.
Second stage is newly married. In that stage people need and buying decision is influenced from
their future plan and earning capability. If they have to plan for purchase flat that time, they will
need term insurance. There after stage is one or two children after marriage, they will be influenced
from future need. They will accumulate fund for children marriage and education, they can be plan
time-to-time vacation. In forth stage, they want to accumulate for retirement. People want to live
alone after old age or in peaceful place so they are ready to start saving for old age.
Attitude also affect consumer behavior positive attitude (about his life) person will take pension plan
because people think that they will live more. But negative attitude person will take life insurance
because they worry about their life.
6. Competition analysis
6. a. Threat of intense segment rivalry- Due to high stake of HDFC STANDARD LIFE position this
segment is good for it and second good factor is its brand value. But when we say about competition
in this market, competition is very tough. We can say that market condition is just like same as
oligopoly means a few number of large firm is providing all service partially different along line of
quality, feature or services. Each competitor may seek leadership in one of that major attribute and
changing a price for that attribute. For example, HDFC Standard Life is specialist on to attract high
net worth or urban population but LIC has large distribution network so it has specialist in rural
segments. But when we say about population growth, economic growth, or government policies
insurance segment is very attractive because only 25% insurable person are insured secondly 80%
population are under age of 45. Aggressive market condition is in market. Main competitor of HDFC
Standard Life is
LIC
Bajaj Allianz

ICICI Prudential
Birla Sun Life
LIC has many resources and it has above 50-year experience in insurance field but HDFC Standard
Life has only 7 to 8 year experience in market. However, due to Prudential experience and ICICI
Bank brand value, ICICI prudential has made good position in market. So there is threat as mainly
by LIC for ICICI Prudential. Due to this reason price war, advertisement, and new product
innovation will be expensive in future.
6. b. Threat of new entrance- Due to aggressive competition and high entry exit barrier, this is not
attractive segment for new player. For entering in insurance field, mandatory capital is 100 crores.
Secondly, foreign stake limited with 26%, third Indian company have no experience in insurance
business. Exit barrier are also very high because, no company can leave market after entering due to
loss because firstly, 100 crores will be lost secondly, their compensation (customer or other
company) will be very high or more than deposited money. So in long run, company will try to less
their business but they will not leave market. So this is good factor for ICICI Prudential because,
where entry or exit barrier are high, profit potential are also high.
6. c. Threat of substitute product- this is not attractive market in view of substitute goods because
there is many substitute in market but only service style is different. Different insurance company
provide at least same product but presentation is different. In case of lower substitute (means
investment purpose) many product in India for example, share, mutual fund, fixed deposit. Substitute
place a limit on price and on profit. Bajaj Allianz launch same type of product of ICICI Prudential
but in lower price.
6. d. Threat of buyers growing power- in India buyers growing power are increasing because they
have more concentrated or organized towards market. Government has established insurance
regulator (IRDA) in India for growing buyers barging power. Due to lowest switching, buyers are
very price sensitive and buyers have many sources for knowing about different company product.
Due to education buyer can analysis that, which product is good for him. So due to growing buyers
power this segment is not good for new player.

6. e. Threat of suppliers growing power- Due to oligopoly market condition insurance company
cannot raise price but they can increase their profit from selling more policies in market. In India,
supply-growing power (agent, broker, bancassurance) are growing due to lot of company availability
in India and this is not good for ICICI Prudential.

DATA ANALYSIS & INTERPRETATION

 DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE

COMPANIES
NO.OF

COMPANYS NAME

SHARE (%)

RESPONDENT

L.I.C.

78

78

HDFC STANDARD LIFE

ICICI PRUDENTIAL

10

10

SBI LIFE

100

100

RELIANCE LIFE
INSURANCE
TOTAL

7 2
10
3
LIC

HDFC

ICICI

SBI

RELIANCE

78

INTERPRETATION

78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by
that percent of respondents.

 DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

NO.OF

BENEFITS

RESPONDENTS

SHARE (%)

Cover Future Uncertainty

55

55

Tax Deductions

20

20

Future Investment

25

25

TOTAL

100

100

25%

Cover Future Uncertainty

20%

INTERPRETATION

Tax Deductions
55%

Future Investment

55% of the respondents believe that covering future uncertainty is the biggest benefit of an
insurance policy.

Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future
investments respectively.

DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED

RESPONDENTS
FEATURE

NO.OF

SHARE (%)

RESPONDENTS
Money Back Guarantee

15

15

Larger Risk Coverance

37

37

Easy Access to Agents

Low Premium

30

30

Companys Reputation

11

11

TOTAL

100

100

FEATURES OF INSURANCE POLICY

MONEY BACK GUAARENTEE

11%
EASY ACCESS TO AGENTS
30%

LARGER RISK COVER

15%
LOW PREMIUM
37%

7%

REPUTATION OF COMPANY

INTERPRETATION

Majority of the respondent (37%) found Larger risk cover as the most attracted feature of
the all.

 DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS

POLICY TYPE

NO. OF

SHARE (%)

RESPONDENTS
LIFE POLICY

75

75

NON LIFE POLICY

25

25

BOTH

45

45

NATURE OF POLICY

45
LIFE POLICY

NON LIFE POLICY

BOTH
75

25

INTERPRETATION

75% of the respondents have Life Insurance Policy while 45% have both. (The % is calculated
out of 280 positive response)

 DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
A saving tool

81

81%

A tax saving device

74

74%

A tool to protect your family

100

100%

Chart Title

100
SAVING TOOL

TAX SAVING TOOL

81
FAMILY PROTECTION

74

INTERPRETATION

81% of the respondents have perception of Insurance being a saving tool.

And 74% of the respondents have perception of Insurance being a tax saving device.

But 100% of the respondents are with the view that Insurance is a tool to protect your family.

 DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
Yes

70

70%

No

30

30%

Total

100

100%

30%
Yes

70%
No

INTERPRET
ATION

Of the sample size of 400 surveyed respondents 70% of the respondents are having Insurance
policy.

30% of the respondents are either not having any Insurance policy at present or their policy is
already matured.

And at present 100% of the respondents are with the view that Insurance is a tool to protect your
family.

 DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS

NO. OF

SHARE (%)

RESPONDENTS
Customer approached Insurance

45

45%

55

555

100

100%

company/Agent
Company/agent approached
customer
Total

Customer approached Insurance company/Agent

45%
56%

Company/agent approached customer

INTERPRETATION

44.5% of the respondents approached the Insurance Company / Agent.

Whereas, 55.5% of the respondents were approached by the Company /Agent.

 DATA SHOWS REASONS BEHIND FOR INSURANCE

RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
Tax saving

80

80%

Saving / Investment

80

80.%

Family protection

100

100%

80
100

80

INTERPRETATION

80.71% of the Respondents opted for Insurance for tax saving benefits.

80.71% of the Respondents opted for saving / Investments.

But all of them, i.e. 100% of the respondents have opted for insurance for their family
protection.

 DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO

POLICY
RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
Satisfied

60

60%

Not satisfied

40

40%

Not Responded

0.0%

100

100%

40%
Satisfied

Not satisfied

60%
Not Responded

Total

INTERPRETATION

60% of the respondents are more or less satisfied with their existing policy.

40% of the respondents are not satisfied with their existing policy.

In this case all of those who have taken a policy have responded.

 DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO

SERVICE AGENT
RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
Satisfied

45

45%

Not satisfied

55

55%

Not Responded

0.0%

100

100%

55%
Satisfied

45%
Not satisfied

Total

INTERPRETATION

45% of the respondents are satisfied with their existing service agent.

55% of the respondents are not satisfied with their existing insurance agent.

All of those who have taken a policy have responded.

 DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX

RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
Paying tax
Not paying tax
Total

Paying tax

100%

100

100%

0%

100

100%

Not paying tax

INTERPRETATION

Of the sample size of 100 respondents, all the respondents are paying tax.

 DATA SHOWS RESPONDENTS INVESTMENTS FOR TAX SAVING

INVESTMENTS

NO. OF

SHARE (%)

RESPONDENTS
LIC

51

51%

NSC

33

33%

Bonds

32

32%

PPF

25

25%

PF

21

21%

EPF

11

11%

11
21

LIC

NSC

25

51

BOND

32

PPF

PF

EPF

33

INTERPRET
ATION

51% of the respondents save their tax by investing in LIC, which is the highest among all
Investment. This shows that most people for getting taxes benefits invest in LIC.

33.25% of the respondents do their tax saving by investing in NSC.

32.25% of the respondents to their tax saving by investing in bonds.

 DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF

INVESTMENT FOR SECURING THEIR FUTURE
NO. OF

SHARE (%)

RESPONDENTS
Fixed Assets

75

75%

Bank deposits

11

11%

Jewellery

25

25%

Securities i.e. bonds, MFs

40.

40%

Shares

10

10%

Insurance

70

70%

Fixed Assets

70

10
Securities i.e. bonds, MFs

Bank deposits
75

Shares
25
40

11

Cash & Jewellery

Insurance

INTERPRETATION

75.25% of the respondents as with the view that Fixed Assets is the best form of investment for
securing their future.

70.5% of the respondents are with the perception that Insurance is the best form of investment
for securing their future, which is one of the highest and this shows that insurance is an
important key for securing your future.
DATA SHOWS

WHAT

PEOPLE

INTENT

TO

GAIN

INVESTMENT
RESPONSE

NO. OF

SHARE (%)

FROM

THEIR

RESPONDENTS
Saving & Returns

100

100%

Security

90

90%

Tax benefits

71.

71.%

71
Saving & Returns

100
90

Security

Tax benefits

INTERPRETATION

100% of the respondents intent to gain saving and returns from their investment.

90% of the respondents intent to gain security from their investments.

Whereas, 71.75% of the respondents intent to gain tax benefits from their investments.

DATA GIVES PEOPLES PERCEPTION ON APPROPRIATE AGE FOR BUYING

INSURANCE
RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
After 25 years

29

29%

After 35 years

10

10%

After 45 years

0%

Anytime

60

60%

29%
61%
After 25 years

After 35 years

10%
After 45 years

Anytime

INTERPRETATION

29% of the respondents are with the view that insurance should be bought after the age of 25
years.

10.5% of the respondents are with the view that insurance should be buyed after the age of 35
years.

Whereas, 60.5% of the respondents are with the view that buying of insurance do not have any
thing to do with age i.e. there is no age limitations. It can be purchased any time according to
the need.
DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES
RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
Rigid plans

67

67%

Non user friendly

29

29%

Unsatisfactory services

26

26%

Non Aggressive

35

35%

Satisfactory

24

24%

Good

10

10%

Very good

0%

Inflexible plans

Non user friendly10

24

Unsatisfactory services

Non Aggressive

67

33
26

Satisfactory

Good

29

Very good

INTERPRETATION

67% of the respondents have the opinion that Indian Insurance Companies have Rigid plans.

29.5% feel that Indian Insurance companies are Non-user friendly.

26.5% feel that services of Indian Insurance companies are Unsatisfactory.

35.75% of the respondents are with the view that Indian Insurance companies are Nonaggressive.

24% of the respondents feel that products and services of Indian Insurance companies is
Satisfactory.

Whereas only 10.25% feel that it is Good enough.

And according to the data, no single person has felt that it is very good.

 DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN INSURANCE

COMPANY
RESPONSE

NO. OF

SHARE (%)

RESPONDENT
S
A trusted name

82

82%

71

71%

Good plans

81

81%

Accessibility

49

49%

Friendly

service

&

responsiveness

A trusted name

49

Friendly service & responsiveness

82

81

Accessibility

71

INTERPRETATION

82% customers look for a Trusted name in a company for insurance.

81.5% customers look for a good plan in a company for insurance.

Good plans

Friendly service & responsiveness and Accessibility are also important factors looked by
customers in a company.
DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS
RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
Planning

87

87%

Not planning

13

13%

Total

100

100%

13%

Planning

87%Not planning

INTERPRETATIO
N

Only 12.5% of the customers contacted are not planning for new investments presently.

Whereas, 87.5% of the customers are still planning for new investments this can be a great
potential for Reliance Life Insurance to take them on their favor.

 DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A

SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE &
PRODUCTS
RESPONSE

NO. OF

SHARE (%)

RESPONDENTS
Yes

43

43%

No

44

44%

Uncertain

13

13%

Total

100

100%

13%
43%
Yes 44%

No

Uncertain

INTERPRETATION

The interested customers i.e. 43% are ready to go for insurance even away from a city if
services and products are worthwhile, which again is a good prospect (potential) for HDFC
Standard Life to take them on their favor.

Chapter 5 FACTS/FINDINGS

1.As the people think that insurance is a tool to protect their family & a tax saving device. They are
aware of the fact & realizing its, importance. The company should try to expand & build up its
infrastructure because there is a large potential for insurance in India.
2.Company should come up with its branch in Delhi. With the objective and goals to meet the
demands & expectations of the public. Because the entrance of private players will increase the
competition and it would be a tough task to secure a good position in market.
3.Since HDFC Life Isyrance is leading with several companies policies it should be easy for them to
penetrate into the market and secure a good position if they pay greater attention to the service part
provided to their customer and thereby forming a long and trusted relationship.
4.As seen from the survey that at present 70% of the customer are having insurance policy out of
which 87.5% of the customer are planning for new investments. So it can be a good potential for the
company and they should make an attempt to trap these customers.
5.43% of the customer is even ready to go for insurance if a service provider away from their home
is providing it. But intend they should provide good products and services. The company should try
to convince these customers and get them in its favor.

Chapter 6 Suggestions

As the people think that insurance is a tool to protect their family & a tax saving device. They
are aware of the fact & realizing its, importance. The company should try to expand & build up
its infrastructure because there is a large potential for insurance in India.

Company should come up with its branch in Delhi. With the objective and goals to meet the
demands & expectations of the public. Because the entrance of private players will increase the
competition and it would be a tough task to secure a good position in market.

Since HDFC Life Insurance is leAding with several companies policies it should be easy for
them to penetrate into the market and secure a good position if they pay greater attention to the
service part provided to their customer and thereby forming a long and trusted relationship.

As seen from the survey that at present 70% of the customer are having insurance policy out of
which 87.5% of the customer are planning for new investments. So it can be a good potential for
the company and they should make an attempt to trap these customers.
43% of the customer is even ready to go for insurance if a service provider away from their home
is providing it. But intend they should provide good products and services. The company should
try to convince these customers and get them in its favor.

Chapter 7 CONCLUSION AND LIMITATIONS

CONCLUSION
Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be
seen in the above analysis. A general impression that we gathered during Data collection was the
immense awareness and knowledge among people about various companies and their insurance
products. People are beginning to look beyond LIC for their insurance needs and are willing to trust
private players with their hard earned money.
People in general have been impressed by the marketing and advertising campaigns of insurance
companies. A high penetration of print, radio and Television ad campaigns over the years is
beginning to have its impact now.
Another heartening trend was in terms of people viewing insurance as a tax saving and investment
instrument as much as a protective one. A very high number of respondents have opted for insurance
for such purposes and it shows how insurance companies have been successful to attract public
money in recent times.
The general satisfaction levels among public with regards to policy and agents still requires
improvement. But therein lies the opportunity for a relative new comer like HDFC . LIC has never

been known for prompt service or customer oriented methods and Reliance can build on these
factors.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Delhi and does not necessarily shows a pattern
applicable to all of Country.
2. Some respondents were reluctant to divulge personal information which can affect the validity
of all responses.
3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly.
The environmental changes are vital to be considered in order to assimilate the findings.

BIBLIOGRAPHY
1. BOOKS/MAGAZINES REFFERED
A. Marketing Management 11th Edition, By Philip Kotler, Pearson Education.
B. Marketing Management 3rd Edition, By Rajan Saxena, The Mc Graw Hill.
C. Research Methods for Business Students 3 rd Edition, By Mark Saunders, Philip Lewis
& Adrian Thornhill, Pearson Education.
D. Research Methodology Methods & Techniques 2nd Edition, By C.R.Kothari, New Age
International Publishers

2. WEBSITES REFFERED:

A. www.hdfclife.com

B. www.cifainsurance.com
C. www.moneyoutlook.com
D. www.irda.gov.in
E. www.insurance.ind.com

Annexure
QUESTIONNAIRE
1.

Are you employed?

Yes

2.

Do you have any insurance policy?

Yes

3.

No

Which insurance policy do you have?

Life

4.

No

Non-Life

Both

Which companys insurance policy you prefer the most? (Rank Them)
a) HDFC Life

______________

b) ICICIPRUDENTIAL

______________

c) SBI LIFE INSURANCE

______________

d) ING VYSYA LIFE

______________

e) LIC

______________

f) TATA AIG LIFE

______________

g) ANY OTHER

______________( Specify)

5. For how many years do you have insurance policy?(Please Tick)

a) <5Yrs
b) 5-10 Yrs
c) 10-15 Yrs
d) Any Other___________(Specify)
6.

What do you think about the benefits of insurance cover? (RANK THEM)

7.

a) Cover future uncertainty

______________

b) Tax deductions

______________

c) Future investment

______________

d) Any other

______________(Specify)

Which feature of your policy attracted you to buy it? (RANK THEM)

8.

a) Low premium

______________

b) Larger risk coverage

______________

c) Money back guarantee

______________

d) Reputation of Company

______________

e) Easy to access to agents

______________

f) ANY OTHER

______________ (Specify)

Your Monthly Income?

a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

9.

Do you really think insurance policy cover in today scenario is not essential?
_____________________________________________________

10.

11.

Whats your perception about insurance?

(RANK THEM)

a) Saving Tool

________________

b) Tax Saving Device

________________

c) Tool to protect Future

________________

How has/would you bought/buy insurance?

a) Customer Approach Insurance COs
b) Insurance Cos Approached Customer

12.

Are you satisfied with the policy?

a) Satisfied Saving Tool
b) Not Satisfied
c) Not Responding

13.

Are you satisfied with the service agent?

a) SATISFIED SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING

14

Do you pay Taxes?

YES

15.

NO

Where have you invested for Tax savings? (RANK THEM)

a) LIC

__________________

b) NSC

__________________

c) BONDS

__________________

d) PPF

__________________

e) PF

__________________

f) EPF

__________________

16.Which of them is the best form of investment? (RANK THEM)

a) FIXED ASSETS

_________________

b) BANK DEPOSITS

_________________

c) JEWELLERY

_________________

d) SECURITIES,

_________________

e) SHARES

_________________

f) INSURANCE

_________________

17. What do you intent to gain from investments?

a) Savings & Security
b) Security
c) Tax Benefits
18. Whats the right age to buy insurance?
a) AFTER 25 Yrs

______________

b) AFTER 35 Yrs

______________

c) AFTER 45 Yrs

______________

d) ANYTIME

______________

19.How would you rate Indian insurance Cos?

a) Rigid Plans

________________

b) Non-user friendly

________________

c) Unsatisfactory services

________________

d) Non-Aggressive

________________

e) Satisfactory

________________

f) Good

________________

g) Very Good

________________

20. What would you look for in an insurance Cos? (RANK THEM)
a) Trusted Name

______________

b) Friendly Services & Responsiveness

______________

c) Good Plans

______________

d) Accessibility

______________

21. Are you planning for new investment?

PLANNING

NOT PLANING

22. Would you go for insurance if a service provider away from the city offers better services
and product?
a) YES
b) NO
c) UNCERTAIN

THANK YOU
NAME:_________________________
ADDRESS:______________________
______________________________
OCCUPATION:___________________