2010

PROJECT REPORT ON HDFC STANDERD LIFE INSURENCE

Bhupendra Kumar Singh HDFC STANDERD LIFE INSURANCE COMPANY Ltd. 1/1/2010

TITLE OF THE STUDY

Comparative analysis of HDFC standard life insurance company limited with other insurance company for HDFC standard life insurance company ltd.

ACKNOWLEDGEMENT

I, BHUPENDRA KUMAR SINGH the student of INSTITUTE OF MANGEMENT & RESERCH , GHAZIABAD feel honored in doing my summer training in a renowned company like The HDFC STANDERED LIFE INSURANCE COMPANY. I did my summer training from 10 th of July to 4th of August.

I am grateful to MR. RISHI TAPARIA (Placement Head of IMR) and Mrs. JYOTSNA MAM(Training Guide) without whose guidance and motivational encouragement I could not do anything.

I also acknowledge and express my deepest gratitude to Mr. DEEPENDRA SINGH (UNIT SALES MANAGER), The HDFC STANDERED LIFE INSURANCE COMPANY (Lucknow) for providing me this opportunity of industrial training in the most adaptable environment. I am indebted to them and for extending their valuable guidance, comments, suggestions and inspiration for this project.

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I would in particular like to express gratefulness to all my respondents of questionnaires, my friends and colleagues who have helped me directly as well as indirectly, in carrying out this project work. And lastly, I wish to express profound respect and love towards my family members, for their constant support and inspiration at each stage of not only this project work but also during the course of the study of the entire P.G.D.M.(MARKETING)Degree.

BHUPENDRA KUMAR SINGH Institute of Management & Research Ghaziabad.

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PREFACE
Serial No. Detail Page No.

Part-I

A.

INTRODUCTION

1.

HISTORICAL PERSPECTIVE

2.

THE INSURANCE INDUSTRY IN INDIA - AN OVERVIEW

3.

INDUSTRY REFORMS

4.

PRESENT SCENARIO LIFE INSURANCE INDUSTRY IN INDIA

5.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

6.

KEY REFORMS

B.

PART-II

1.

COMPANY PROFILE OF HDFC STANDARD LIFE INSURANCE COMPANY LTD.

2.

BOARD MEMBERS

3.

GROUP COMPANIES

4.

CORPORATE OBJECTIVE

5.

PRODUCTS & SERVICES

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I.

PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE

II.

INTROUCTION TO UNIT LINKED FUNDS

6.

DISTRIBUTION STRATEGY

C.

PART-III

1.

RESEARCH DESIGN

I.

INTRODUCTION

II.

STATEMENT OF THE PROBLEM

III.

OBJECTIVE OF THE STUDY

IV.

RESEARCH MATHDOLOGY

V.

SAMPLING

VI.

STUDY AREA

D.

PART -IV

1.

COMPARITIVE ANALYSIS

2.

MARKET PROBLEMS

I.

SUGGESTIONS FOR IMPROVEMENT

3.

ANALYSIS AND INTERPRITATION

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4.

FINDINGS

5.

FUTURE LINE OF RESEARCH

CONCLUTION

REFERENCES/ ANNEXURE

PART-I INTRODUCTION HISTORICAL PERSPECTIVE In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine.

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This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19 January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17 century. It came to India as a legacy of British
th th

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occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance business was nationalized with effect from 1 January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies are allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.
st

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The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests. In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

THE INSURANCE INDUSTRY IN INDIA AN OVERVIEW June 2010

The US$ 41-billion Indian life insurance industry is considered the fifth largest life insurance market, and growing at a rapid pace of 32-34 per cent annually, according to the Life Insurance Council.

Life Insurance Corporation of India (LIC) registered an 83 per cent increase in new business income in March 2010, while private players posted a 47 per cent growth in new business premium.

Moreover, according to IRDA, insurers sold 10.55 million new policies in 2009-10 with LIC selling 8.52 million and private companies 2.03 million policies. At the end of March 2010, LIC held 65 per cent market share in terms of new business income collection with the private sector contributing the remaining 35 per cent share in 2009-10.

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According to IRDA, total premium collected in 2009-10 was US$ 24.64 billion, an increase of 25.46 per cent over US$ 19.64 billion collected in 2008-09.

A growth of 18 per cent is expected in total premium income and is likely to cross the US$ 64.93 billion mark, according to B Mathur, Secretary General, Life Insurance Council.

General Insurance

Vehicle financing firm, Magma Fincorp has applied to IRDA for approval and expects clearance in 2010. The firm is entering the general insurance business in a joint venture with Germany-based company HDI-Gerling International Holding AG.

According to data released by IRDA, the general insurance industry recorded 13.42 per cent growth in gross premium collected during 2009-10. The industry collected gross premium of US$ 7.84 billion in 2009-10 compared with US$ 6.91 billion in 2008-09.

The public sector players posted 13.85 per cent growth in gross premium in 2009-10. At the same time, private players recorded a 12.82 per cent increase in gross premium till March 2010.

During April-May 2010, non-life insurers mopped up US$ 1.59 billion against US$ 1.34 billion in the previous year, registering an increase of 19 per cent according to IRDA data.

The four state-run insurers fared better than their private counterparts, with New India Insurance collecting the maximum premium of US$ 294.5 million in April and May 2010, compared to US$ 253.15 million in the previous year, growing by 16.34 per cent.

According to the IRDA's Summary Reports of Motor Data of Public and Private Sector Insurers - 200809, nearly 30 million vehicle policies were issued and a total premium worth US$ 1.83 billion was collected.

Health Insurance

The Indian health insurance market has emerged as a new and lucrative growth avenue for both the existing players as well as the new entrants. According to a latest research report "Booming Health

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Insurance in India" by research firm RNCOS released in April 2010,all emerging trends including the key factors driving the market growth. Furthermore, the report also identifies what could be the possible growth areas for expansion and gives a detailed overview of the competitive landscape. The Indian health insurance market has continued to post record growth in the last two fiscals (2008-09 and 200910). Moreover, as per the RNCOS estimates, the health insurance premium is expected to grow at a compound annual growth rate (CAGR) of over 25 per cent for the period spanning from 2009-10 to 2013-14.

According to a report published by Yes Bank and an industry body in November 2009, the medical insurance sector would account for US$ 3 billion in the next three years.

Health insurance premium collections touched US$ 1.45 billion in 2008-09 compared with US$ 1.13 billion in the previous year, IRDA said in its annual report for 2008-09.

Moreover, total premium between April and December 2009 was US$ 1.35 billion, up from US$ 1.12 billion, an increase of 20 per cent, as per figures released by the regulator.

Banc assurance

Private insurers have adopted banc assurance in a much bigger way than the state-owned Life Insurance Corporation (LIC) in recent years. Banc assurance is distribution of insurance products through a bank's network.

In 2008-09, private insurers forked out US$ 44.64 million as commission for banc assurance, while the payout by LIC for this distribution model was only US$ 26,075, as per official data.

According to Towers Watson India, Banc assurance Benchmarking survey 2009-10, released in May 2010, banc assurance will play a crucial role in the overall development of the Indian insurance sector with the channel expected to generate 40 per cent of private insurers premium income by 2012, compared to the current 25-28 per cent. In general insurance, presently 17 per cent of premium income comes from banc assurance.

Investments

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The Indian insurance unit of Dutch financial services firm ING plans to invest US$ 51 million in 2010/11 to fund expansion in India.

Private life insurer Future Generally India will expand its distribution network by opening around 100 branches in addition to its existing network of 91 branches during 2010. It will also increase the agency force by 21,000 to 65,000 people.

Max Bupa, the health insurance JV between UK's Bupa and the Max Group plans is set to invest a further US$ 134.9 million in its health insurance segment over the next five years. Besides the existing six cities, it plans to foray into Surat, Jaipur and Ludhiana by the end of 2010.

Investment Policy

According to a guidance note released by IRDA, the regulator has increased the lock-in period for all unit-linked insurance plans (ULIPS) to five years from the current three years, thereby making them long-term financial instruments, which basically provide risk protection. The commission and expenses have also been reduced by evenly distributing them throughout the lock-in period. Moreover, IRDA said that insurers will provide a mortality cover or a health cover to all ULIPS, other than pension and annuity products, thereby increasing the risk cover component on them.

IRDA has ordered life insurers to offer customers a guaranteed return of 4.5 per cent per annum on pension and annuity plans.

Exchange rate used: 1 USD = 46.38 INR (as on June 2010)

INDUSTRY REFORMS

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Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA As per a recent report "Indian Insurance Industry Forecast (2007-2009)" published by RNCOS, it has been found that "Life insurance market in India will likely reach around Rs 1683 Billion by the year 2009. Changing consumer behavior, GDP growth rate, changing socio economic demography, and natural calamities occurring from time to time will remain the key contributors in this growth." April 2007, current FYs first month, saw new businesses expand by 49%, whereas general insurance players witnessed 16% increase during the same month. Outstanding performance of SBI Life, ICICI Prudential, and LIC helped the Indian life insurance industry in mopping up almost Rs 2,892 crore in April this year, whereas it was Rs 1,996 crore in the same month last year. On the other hand, Reliance Life, ING Vysya, and Bajaj Allianz were amongst those insurers that came across a decline in their premium collection over the review period, as per the data compiled by Insurance Regulatory & Development Authority. Selling almost 15,89,684 policies during this April, LIC - the largest life insurer in India -witnessed 57% growth in its new premiums that reached to Rs 2,134 crore. LIC grabbed a market share of almost 71.56% during this April. Non-life or general insurance industry saw a growth of 16% during this month, and ICICI Lombard was the second largest player in this segment. Business Standard published this in news on 14 June 2007.

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Looking at the current scenario, it can be made out that the four established public-sector players namely, National Insurance, United India, Oriental Insurance, and New India Assurance, may have to face stiff competition from private players like Bajaj Allianz, Reliance General, and ICICI Lombard, as per Business Standard. According to RNCOS report "Indian Insurance Industry Forecast (2007-2009)", "Performance of life insurance industry remained better in comparison to non life segment over the five year period spanning 2001-2005. Some qualitative factors, like the deregulation rate of insurance market, and implementation rate of technologies prevailing in the market, need to perform up to the industry expectations in order to improve the growth rate of Indian life insurance market." This report provides an objective analysis of all aspects of Indian insurance industry. The issues addressed in this report include: prospective investment areas in Indian life insurance industry, market strategies adopted by key players in this segment, opportunities and challenges present in this industry, and so on.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously such to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents.

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Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.. (1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, (a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) Specifying the code of conduct for surveyors and loss assessors; (e) Promoting efficiency in the conduct of insurance business; (f) Promoting and regulating professional organizations connected with the insurance and re-insurance business; (g) Levying fees and other charges for carrying out the purposes of this Act; (h) Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; (i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); (j) Specifying the form and manner in which books of account shall be maintained and (k) Regulating investment of funds by insurance companies; (l) Regulating maintenance of margin of solvency; (m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n) Supervising the functioning of the Tariff Advisory Committee; (o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and

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regulating professional organizations referred to in clause (p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and (q) Exercising such other powers as may be prescribed

KEY MILESTONES

Table 1: milestones in the life insurance business in India

Year

Milestones in the life insurance business in India

1912

The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

1928

1938

1956

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are given in the table 2.

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Table 2: milestones in the general insurance business in India Year Milestones in the general insurance business in India

1907

The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. The General Insurance Business (Nationalisation) Act, 1972 nationalised 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.

1957

1968

1972

PART-II

COMPANY PROFILE

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OF HDFC STANDARD LIFE INSURANCE COMPANY LTD.

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

Introduction: Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) - India's leading housing finance institution, and a Group Company of the Standard Life Plc, UK. The Company is one of leading private insurance companies, offering a range of individual and group insurance solutions, in India. Being a joint venture of top financial services groups, HDFC Standard Life has adequate financial expertise to manage long-term investments safely and resourcefully.

HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by Others. As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. HDFC SLIC have a range of individual and group solutions, which can be easily customised to specific needs. Group solutions have been designed to offer complete flexibility combined with a low charging structure. The gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 crores. The company has covered over 8,33,070 lives as on March 31, 2009. HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite

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for long-term sustainable growth. To ensure this, we have concentrated our focus on expansion of branch network, organizing an efficient and well trained sales force, and setting up appropriate systems and processes with optimum use of technology. As all these areas form the basic infrastructure for establishing the highest possible customer service standards. Our core values are drilled down to all levels of employees, as these are inviolable. We continue to promote high integrity in business practices and shun short cuts and unethical practices, as we wish to be perceived as an institution with high moral standing. Since our inception in 2000, when the Indian insurance space was opened for private participation, we have consistently focused on setting benchmarks in all aspect on insurance business. Being the first private player to be registered with the IRDA and the first to issue a policy on December 12, 2000, our differentiators are:

Strong promoter HDFC Standard Life is a strong, financially secure business supported by two strong and secure promoters HDFC Ltd and Standard Life. HDFC Ltds excellent brand strength emerges from its unrelenting focus on corporate governance, high standards of ethics and clarity of vision. Standard Life is a strong, financially secure business and a market leader in the UK Life & Pensions sector. Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space. We were the first private life insurer to break the ice using the idea of self-respect instead of death to convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one of the few brands that customers recognize, like and prefer to do business. Moreover, our brand thought, Sar Utha Ke Jiyo, is the most recalled campaign in its category. Investment Philosophy We follow a conservative investment management philosophy to ensure that our customers money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of

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protecting and generating good, consistent, and stable investment returns to match the investors longterm objective and return expectations, irrespective of the market condition.

Need-Based Selling Approach Despite the criticality of life insurance, sales in the industry have been characterized by over reliance on tax benefits and limited advice-based selling. Our eight-step structured sales process Disha however, helps customers understand their latent needs at the first instance itself without focusing on product features or tax benefits. Need-based selling process, 'Disha', the first of its kinds in the industry, looks at the whole financial picture. Customers see a plan not piecemeal product selling.

Risk Control Framework HDFC Standard Life has fully implemented a risk control framework to ensure that all types of risks (not just financial) are identified and measured. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated

Focus on Training Training is an integral part of our business strategy. Almost all employees have undergone training to enhance their technical skills or the softer behavioural skills to be able to deliver the service standards that our company has set for itself. Besides the mandatory training that Financial Consultants have to undergo prior to being licensed, we have developed and implemented various training modules covering various aspects including product knowledge, selling skills, objection handling skills and so on.

Focus on Long-Term Value HDFC Standard Life do not focus in the business of ramping up the topline only, but to create maximisation of stakeholder's value. Today, we are extremely satisfied with the base that we have created for the longterm success of this company.

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Transparent Dealing We are one of the few companies whose product details, pricing, clauses are clearly communicated to help customers take the right decision.

Strict Compliance with Regulations We have initiated and implemented many new processes, some of which were found useful by the IRDA and later made mandatory for the entire industry.The agents who successfully completed this training only, were authorized by the company to sell ULIPs. This has now been made compulsory by IRDA for all insurance companies under the new Unit Linked Guidelines.

Diversified Product Portfolio HDFC Standard Lifes wide and diversified product portfolio help individuals meet their various needs, be it: Protection: Need for a sound income protection in case of your unfortunate demise Investment: Need to ensure long-term real growth of your money Savings: Save for the milestones and protect your savings too Pension: Need to save for a comfortable life post retirement Health: Cover for health related exigencies

BOARD MEMBERS

Brief Profile of The Board of Directors

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Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Executive Chairman 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 Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). Sir Alexander M. Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Sir Crombie is a fellow of the Faculty of Actuaries in Scotland.

Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Ms. Marcia D. Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005.

Ms. Renu S. Karnad is the Executive director of HDFC Limited, 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. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

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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. 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. Gerald E. Grimstone was appointed Chairman in May 2007, having been Deputy Chairman since March 2006. He became a director of The Standard Life Assurance Company

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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 Sir Alexander Crombie.

Mr. Paresh Parasnis is the Principal Officer and Executive Director of the company since November 14, 2008. 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.

HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new business premium income at Rs. 1,624 Crores. The company has covered over 8,77,000 lives year ending March 31, 2007. HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing company in India for the last 27 years. SNAPSHOT - I Incorporated in 1977 as the first specialized Mortgage Company in India.

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Almost 90% of initial shareholding in the hands of domestic institutes and retail investors. Current 77% of shares held by foreign institutional investors.

Besides the core business of mortgage HDFC has evolved into a financial conglomerate with holdings In: HDFC Standard Life insurance Company- HDFC holds 78.07 %. HDFC Asset Management Company HDFC holds 50.1% HDFC Bank- HDFC holds 22.25%. Intelenet Global (Business Process Outsourcing) HDFC holds 50%. HDFC Chubb General Insurance Company HDFC holds 74%.

SNAPSHOT-II

Loan Approvals (up to Dec 2007)

Rs. 805 billion. (US $ 18.30 bn.) Rs.669 billion (US $ 15.20 bn) 2.5 million.

Loan Disbursements (up to Dec. 2007)

Housing Units Financed Distribution Offices Outreach Programs

181 90

KEY PLAYERS Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman 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 Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a

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Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC.

GROUP COMPANIES

HDFC Bank: World Class Indian Bank- among the top private banks in India. HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager. Intelenet Global: BPO services for international customers. CIBIL: Credit Information Bureau India Limited. HDFC Chubb: Upcoming Private companies in the field of General Insurance. HDFC Mutual Fund HDFC reality.com: Helps to search properties in all major cities in India HDFC securities

STANDARD LIFE

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Standard Life is Europes 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 19 century from kits original Edinburgh premises, opening offices in other towns and acquitting other similar businesses.
th

Standard Life Currently has assets exceeding over 70 billion under its management and has the distinction of being accorded AAA rating consequently for the six years by Standard and Poor.

SNAPSHOT Founded in 1875, company supporting generation for last 179 years. Currently over 5 million Policy holders benefiting from the services offered. Europes largest mutual life insurer.

JOINT VENTURE

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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. Reach 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 Moodys 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 14 August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture. HDFC Standard Life Insurance Company Ltd. Is one of Indias leading Private Life Insurance Companies, which offers 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 Assurance Company, a leading provider of financial services from the United Kingdom. Both the promoters are will known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry- all important factors to consider when choosing your insurer.

th

BUSINESS GROWTH Track Record so far The gross premium income of HDFC, for the year ending March 31, 2007 stood at Rs. 2,856 crores and new business premium income at Rs. 1,624 crores. The company has covered over 8,77,000 lives year ending March 31, 2007. Company also declared our 5 consecutive bonus in as many years for our with profit policyholders.
th

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KEY STRENGTH

Financial Expertise 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.

Range of Solutions HDFC SLIC has a range of individual and group solutions, which can be easily customized to specific needs. These group solutions have been designed to offer complete flexibility combined with a low charging structure.

Strong Ethical Values:

HDFC SLIC is an ethical and Cultural Organization. False selling or false commitment with the customers is not allowed.

Most respected Private Insurance Company HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the World Class Magazine Business World for Integrity, Innovation and Customer Care.

CORPORATE OBJECTIVE 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'.

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Values .Integrity .Customer centric .Teamwork .Innovation .People Care One for all .Joy and Simplicity

PRODUCTS & SERVICES The right investment strategies won't just help plan for a more comfortable tomorrow -- they will help you get Sar Utha ke Jiyo. At HDFC SLIC, life insurance plans are created keeping in mind the changing needs of family. Its life insurance plans are designed to provide you with flexible options that meet both protection and savings needs. It offers a full range of transparent, flexible and value for money products. HDFC SLIC products are modern and contemporary unitized products that offer unique customer benefits like flexibility to choose cover levels, indexation and partial withdrawals.

PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE

Individual Products Protection Plans A person can protect his family against the loss of his income or the burden of a loan in the event of his unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.

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Investment Plans HDFC SLICs Single Premium Whole of Life plan is well suited to meet long term investment needs. This provides attractive long term returns through regular bonuses. Pension Plans Pension Plans help to secure financial independence even after retirement. Pension range includes Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus. Savings Plans Savings Plans offer a flexible option to build savings for future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back, Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II.

Group Products One-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. It offers different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. HDFC SLIC offers the following group products to esteemed corporate clients: A) Group Term Insurance

B) Group Variable Term Insurance C) Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company

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Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes.

Social Product Development Insurance Plan Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of the immediate financial needs following their loss. Eligibility Members of the development agency and their spouses with: Minimum age at the start of the policy 18 years last birthday Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.

Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received.

Benefits On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an

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additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time. The role of the Development Agency Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: I. II. Payment of premiums Reporting of claims a. Keeping policy holder information up to date

Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members.

Prohibition of rebates Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundred

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INTROUCTION TO UNIT LINKED FUNDS

Unit linked plans are based on the component of the premium or the contribution of the customer towards the plan. This contribution can be in different modes like yearly, half yearly, quarterly and monthly. Unit linked plans have multiple benefits like life protection, rider protection, savings, transparency, investment choices, liquidity and planning for taxes. These plans work like mutual funds. The premium is collected from the policy holder. He is allotted a certain number of units based of his contribution. The Net Asset Value is the value of each unit of the fund. It is found by subtracting the charges and current liabilities from the current assets and investments and dividing this number by the total number of outstanding units. Let us take an example. There are 100 investors and each invests Rs. 10 in a fund. The total value of the fund is Rs. 1000 and each person is allotted 1 unit of Rs 10. Now the money (Rs. 1000) is invested in the debt or equity market. Suppose the fund value increased by 20%. As a result the Rs. 1000 invested became Rs. 1200. Hence the value of every investor is now Rs. 12 and not Rs. 10. UNIT LINKED VERSUS OTHER FINANCIAL INSTRUMENTS Parameters RBI Bonds Fixed Deposits Safety Liquidity Returns Life Cover High None Low 1 time amount Tax benefits Tax free High High Low 1 time amount Taxed Mutual Funds Medium High High 1 time amount Taxed Tax free High High High 10 times Unit linked

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We find that life insurance unit linked plans is a good area to invest money in as it provides liquidity, safety, high returns, life cover and tax benefits in a single plan. HDFC SLIC offers the option of indexation to beat inflation. Risk is reduced to a large extent as the company invests in a diversified portfolio of stocks.

Tax Benefits

INCOME TAX SECTION Sec. 80C

GROSS SALARY

ANNUAL

HOW MUCH TAX CAN YOU SAVE? Upto Rs. 33,990 saved investment Rs. 1,00,000. on of

HDFC

STANDARD

LIFE PLANS All the life insurance plans.

Across All income Slabs

Sec. 80 CCC

Across all income slabs.

Upto Rs. 33,990 saved Investment Rs.1,00,000. on of

All plans.

the

pension

Sec. 80 D

Across all income slabs

Upto saved

Rs.

3,399 on of

All

the

health riders

insurance

Investment Rs. 10,000. TOTAL SAVINGS POSSIBLE Rs37,389

available with the conventional plans.

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income

exceeding Rs. 10,00,000. Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free, subject to the conditions laid down therein.

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SOME OTHER PRODUCT

HDFC Standard Life Insurance offers a range of individual and group solutions, which can be easily personalized to specific needs. Its group solutions have been planned to offer complete flexibility, together with a low charging structure. As of 31 December, 2008, the Company's new business premium income stood at Rs. 1,839.70 Crores; it has covered over 812,811 lives so far. Given below is a comprehensive list of policies and products on offer by HDFC Standard Life Insurance:

Protection Plans

HDFC Term Assurance Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan

Children's Plans

HDFC Children's Plan HDFC Unit Linked Young Star II HDFC Unit Linked Young Star Plus II HDFC Unit Linked YoungStar Champion

Retirement Plans

HDFC Personal Pension Plan HDFC Unit Linked Pension II HDFC Unit Linked Pension Maximiser II HDFC Immediate Annuity

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Savings & Investment Plans

HDFC Unit Linked Endowment Plus II HDFC SimpliLife HDFC Unit Linked Endowment II HDFC Unit Linked Enhanced Life Protection II HDFC Unit Linked Wealth Maximiser Plus HDFC Unit Linked Endowment Winner HDFC Endowment Assurance Plan HDFC Money Back Plan HDFC Single Premium Whole of Life Insurance Plan HDFC Assurance Plan HDFC Savings Assurance Plan

Health Plans

HDFC Critical Care Plan HDFC SurgiCare Plan

Group Plans

Group Term Insurance Plan Group Variable Term Insurance Plan Group Unit Linked Plan - Gratuity Group Unit Linked Plan - Superannuation

Group Unit Linked Plan - Leave Encashment

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DISTRIBUTION STRATEGY

Why HDFC is better ? 1. Investment returns: investment returns and business growth provided by HDFC is validated by bajaj Capital report. HDFC pacify the need of invertors up to healthy level and make the strong relationship with them. 2. Financial Background and Experience: HDFC existing in the market since 1977. It has a very handsome experience in the field of finance because it completely involved in finance Sector only where as the others are running in many other field also like Reliance (Petroleum, Textile, Telecom etc.) 3. Ethics and Values: HDFC is an ethical and cultural organization which prevents the false selling and prohibits the false commitment to the customer. 4. Sales Force: Properly trend licensed and Educated People are the strength of the company. So that they could give the best customer service. 5. 6. Huge branch network HDFC is having 450 branches in all over the country. Online accessibility: It makes the process faster and makes the customer delighted.

Who can be the financial consultant: ? Section 42(4) of the amended Insurance Act, 1938 states an agent to be one who is not: A minor. Found to be sound mind by a court of competition jurisdiction. Found guilty of criminal background. Found guilty of having knowingly participated in or connived at any fraud /dishonesty or misrepresentation against an insured. Work of financial consultant: The FC is the interface between the customer and insurance company. The agent should be able to accomplish the following service.

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Assessing and analyzing the clients risk profile. Finding the best product or products available in the market. Negotiating the best deal available. Continuity of service throughout the period of insurance.

Objective of FC: Recruitment of Financial consultant (FCs) of a excellent profile and their retention strategies and what are their benefit that company going to provided for retention of their FCs. (A) What type of people are we looking for ? 1- Committed people who have the drive, determination and ability to become professional financial consultants. 2- Ability to sell a range of financial products. (B) What do We Expect from financial Consultant ? 1- Devote a time and energy during training. 2- Sell at least 5 policies each month once after licensed with company. 3- We look forward to a long term mutually beneficial relationship.

(C)

Why should financial consultant choose HDFC standard life ? Brand value and the reputation of the partners (HDFC Limited) Market leader in housing finance: 15 lakhs home financed. 11 lakhs retail deposits customer base.

Reputation for providing the higher standards of customer service. Financial Strength of the partners. Brand value and the reputation of the partners standard life: 175 years experience in life insurance. Largest mutual life insurer in Europe. Product innovation.

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Strategies for recruitment of FC: Strategies Employed to achieve the target are as follows: Telecalling Contacting the person directly (interview) Collect references. Some important steps to make effective telecolling :Open the call in a friendly and positive way. State the name, position and company name. Check the prospect has time to speak. State the reason for the call. Clearly succinctly explain how the meeting will be benefiting the prospect. Achievements: Recruited eight financial consultants for company. Increase in confidence level. Got the knowledge about, how to differentiate our product form that of LIC. Made more and more people aware about my companies Products (Policies) Taken some appointments for policies and got positive response from 8 persons with the help of my BDM.

Limitations:So though the study aims to achieve the above mentioned Objective in full earnest and accuracy, it may be hampered due to certain limitation. Some of the limitations are as follows: To cover the various section for the society. Respondents may not be at home and may have to re-contacted or replaced by others. Getting accurate response form the respondents due to their inherent problem is difficult. Limited response from client. There is a time limitation it is not possible to study whole thing I covered some special aspect as well as some topics.

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FIELD METHODOLOGY The methodology adopted in the field to collect the data represented diagrammatically below:

Segmentation of People

Meeting with People

Filling up questionnaire and Schedule

TABULATION AND ANALYSIS In order to determine the willingness of the people to become FC for HDFC SLIC in Lucknow, data collected by surveying is treated as analysis. Response to the parameter like professional, unemployed students, housewives, investment consultant, post office agent.

Willingness to be FC for HDFC Yes Professional 2 No 28 Total 30

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Working employees House wives Students Investment consultants Post office agents Others Total

33

35

2 3 2

18 22 18

20 25 20

3 14

12 131

15 10 155

PROFESSIONALS
yes No

- 42 -

yes No

yes No

St u d e

n t

yes No

- 43 -

yes No

yes No

yes No

- 44 -

PART-III

RESEARCH DESIGN

INTRODUCTION

A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods.

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STATEMENT OF THE PROBLEM This study was undertaken to identify which type of insurance plans HDFC SLIC should market to beat other insurance company in India. A survey was undertaken to understand the preferences of Indian consumers with respect to insurance. While marketing policies the sole duty of an advisor/ agent is to provide insurance plans as per customer requirements.

In effect plans (insurance products) should be flexible to suit individual requirements. This research tries to analyze some key factors which influence the purchase of insurance like the term of the policy, the type of company, the amount of annual premium payable (capacity and willingness to spend), risk taking ability and the influence of advertising. Solutions and recommendations are made based on qualitative and quantitative analysis of the data.

OBJECTIVES OF THE STUDY

To analysis the product details of HDFC Standard life Insurance Company limited and other insurance company. To find Points of Parity and Points of Difference of HDFC Standard Life Insurance Company Limited and other insurance company. To find out factors that influence customers to purchase insurance policies and give suggestions for further improvement.

- 46 -

RESEARCH METHODOLOGY

TYPE OF DATA COLLECTED There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources.

PRIMARY SOURCES These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection.

SECONDARY SOURCES These include books, the internet, company brochures, product brochures, the company website, competitors websites etc, newspaper articles etc.

SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study.

SAMPLE SIZE The sample size for the survey conducted was 43 respondents. This sample size was taken on 95% confidence level and 6 significant level. Data universe for this sample is 5,30,000 which is approx population of Lucknow excluding people below age of 18 years.

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SAMPLING TECHNIQUE Random sampling technique was used in the survey conducted.

PLAN OF ANALYSIS

Tables were used for the analysis of the collected data. The data is also neatly presented with the help of statistical tools such as graphs and pie charts. Percentages and averages have also been used to represent data clearly and effectively.

STUDY AREA The samples referred to were residing in Lucknow. The areas covered were Gomti Nagar, Aliganj, Indra Nagar, Alambagh, Hazratganj, Ameenabad.

PART -IV

COMPARITIVE ANALYSIS

1.

LIFE INSURANCE CORPORATION OF INDIA (LIC)

LIC has an excellent money back policy which provides for periodic payments of partial survival benefits as long as the policy holder is alive. 20% of the sum assured is payable after 5, 10, 15 and 20 years and the balance 40% is payable at the 20 year along with accrued bonus. (www.lic.com) For a 25 years term , 15% of the sum assured becomes payable after 5,10,15 and 20 years and the balance 40% plus the accrued bonus becomes payable at the 25 year. An important feature of these types of policies is that in the event of the death of the policy holder at any time within the policy term the death
th th

- 48 -

claim comprises of full sum assured without deducting any of the survival benefit amounts which have already been paid. The bonus is also calculated on the full sum assured. HDFC SLIC does not have a money back policy. It could offer a money back plan and capture some portion of this market. While marketing insurance products I found that many customers wanted to purchase these plans. LIC offers 66 different plans; plans are formulated for specific occasions whole life plans, term assurance plans, money back plan for women, child plans, plans for the handicapped individuals, endowment assurance plans, plans for high worth individuals, pension plans, unit linked plans, special plans, social security schemes diversified portfolio of products. HDFC SLIC could diversify its product portfolio. It could add more plans for high worth individuals and women.

2.

ICICI PRUDENTIAL

ICICI Prudential is a stiff competitor for HDFC SLIC. The company is a merger between ICICI Bank which is the biggest private bank in India and Prudential Plc which is a global life insurance company. The company has an investment plan which is market related Invest Shield Life. In this plan even if the market falls, the premium will be returned to investors. It is a guaranteed plan which ensures the company carefully invests your money. The stock market performance of ICICI Prudential is much better than HDFC SLIC. The returns on the growth fund were 46.28% compared to the 42.70% offered by HDFC SLIC. Customers are attracted by higher returns and this is a plus point for Prudential. The company is very well advertised. The advertisements are showcased in movies, television, newspapers, magazines, bill boards, radio etc. The company has an excellent brand ambassador Mr. Amitabh Bacchan. His promotion of the company builds trust and faith in the minds of our people. However the charges are very high in the plans offered by ICICI Prudential. It is 35% during the first year, 15% in the next year and 3% from the third year onwards. Also a higher minimum premium of Rs. 8000 is charged. Hence the policies are not accessible to the lower strata of the society.

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3.

BIRLA SUN LIFE

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organization. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future. (Source: www.birlasunlife.com) The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market capitalization of Rs. 53400 crores (as on 31st March 2007). It has over 72000 employees across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of the key organizations within the group are Hindalco and Grasim. Sun Life Financial Inc. and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. It had assets under management of over US$343 billion, as on 31st March 2007. The company is a leading player in the life insurance market in Canada. Being a customer centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than a million lives since inception and its customer base is spread across more than 1000 towns and cities in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premium income. The company has a capital base of 520 crores as on 31 July, 2007. Its Flexi Life Line Plan offers life long insurance cover till the policy holder is 100 years of age. There are guaranteed returns of 3% p.a. net of policy charges after every 5 years from the eleventh policy year onwards. However the charges are very high. The initial charges for the first year are 65%. Hence the fund value is greatly reduced.
st

4.

BAJAJ ALLIANZ

Bajaj Allianz is a joint venture between Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, a trusted automobile manufacturer for over 55 years in the Indian market. Together they are committed to offering you financial solutions that provide all the security you need for your family and

- 50 -

yourself. Bajaj Allianz is the number one private life insurer for the year 2005 2006. It is leading by 78 crores. It has experienced a whopping growth of 216% in the last financial year. The company has sold 13, 00,000 policies and is backed by 550 offices across India. It offers travel insurance, motor insurance, home insurance, health and corporate insurance. The mortality charges are lower than HDFC SLIC. The entry age could be zero years which allow even new born babies to be insured.

5.

TATA AIG

Tata AIG is a joint venture between the Tata group and American International Group Inc. In one of the plans the company offers hospital cash benefit wherein it will pay Rs. 2500 per day in case of hospitalization and Rs.12.5 lakhs in case the person suffers from any critical illness. Annual premium is much less (about Rs. 6712) to avail such a good benefit. Charges are relatively low compared to HDFC SLIC for some policies. The company offers high coverage plans at low cost. There is a plan even for a policy term of 1 year. Your family can continue to enjoy their current lifestyle even in the case of something happening to you. These plans are very flexible and HDFC SLIC could adopt this idea of insuring individuals for short periods of time. For example; there is a family of four. The only earning member is the father. He has just taken a loan from a bank of 20 lakhs to purchase a new home. He is able to repay the loan with his current salary in 15 years. The problem arises if something were to happen to him within these fifteen years. Not only will the family face the emotional and financial loss of their father but they will also have to repay the home loan or risk being homeless.

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MARKETING PROBLEMS

The old and out dated technique of tele marketing is used to prospect customers. More modern techniques must be adopted. The company must sponsor shows and give presentations in corporate houses. The financial health check must be performed for every prospect to assess his/her true financial position and needs. Some of the advisors skip this vital step and the prospect ends up with a plan they do not appreciate and soon surrender or discontinue. Some of the main problems in marketing the policies are: Large amount of competition (18 players in the market) Other brands are well advertised and have higher recall value LIC is considered a safer option Face competition from banks and mutual funds High premium policies are difficult to market Incorrect perception about insurance Interested prospects might have a lack of time and postpone investments Customers get defensive if you cold call Short term plans are available only at large premium Customers do not have risk appetite to invest in shares Some prospects have already invested and are not interested in further investments Consumers dont want to undertake medical examinations Large amount of documentation Customers do not like their money locked up for many years Lack of awareness about the unit linked funds in the market No money back plan present in the product portfolio.

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SUGGESTIONS FOR IMPROVEMENT Advertise about the company and its products it motivates individuals to purchase insurance Create a positive perception about insurance Speak about the good features a plan offers like high returns, life cover, tax benefits, indexation, accident cover while prospecting customers Try to sell the product/plan which the consumer requires and not the plan where the advisors benefit is higher Improve the efficiency in operations Bring out policies with small premiums payable for short periods of time Rs. 5000 Rs. 10000 per annum for 10 years Attract the youth of India with higher returns on investment as returns are the motivating factor which influence purchase of insurance Promote insurance in colleges and corporate houses Promote HDFC SLIC as an Indian Company to build trust HDFC SLIC could have a brand ambassador or a mascot to promote its services Should have partial withdrawals from the first year onwards Tap the rural market where there is large potential Diversify product portfolio Make products more straight forward reduce complexities

ANALYSIS &

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INTERPRETATION

ANALYSIS & INTERPRETATION A SURVEY ON THE LIFE INSURANCE INDUSTRY IN INDIA

AGE GROUP OF SURVEYED RESPONDENTS TABLE 1:

Age group

No. of Respondents

18 - 25 years

127

26 - 35 years

67

36 - 49 years

46

50 - 60 years

24

More than 60 years

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CHART 1:

2% 9%

18 - 25 years 17% 47% 26 - 35 years 36 - 49 years 50 - 60 years More than 60 years 25%

Analysis: From the chart above we find that 47% of the respondents fall in the age group of 18 25 years, 25% fall in the age group of 26 35 years and 17% fall in the age group of 36 49 years. Therefore most of the respondents are relatively young (below 26 years of age). These individuals could be induced to purchase insurance plans on the basis of its tax saving nature and as an investment opportunity with high returns. Individuals at this age are trying to buy a house or a car. Insurance could help them with this and this fact has to be conveyed to the consumer. As of now many consumers have a false perception that insurance is only meant for people above the age of 50. Contrary to popular belief the younger you are the more insurance you need as your loss will mean a great financial loss to your family, spouse and children (in case the individual is married) who are financially dependent on you

GENDER CLASSIFICATION OF SURVEYED RESPONDENTS

TABLE 2:

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Particulars Male Female

No. of Respondents 193 77

CHART 2:

250 200 No. of Respondents 150 100 50 0 Male Female 193

77

CUSTOMER PROFILE OF SURVEYED RESPONDENTS TABLE 3: Customer profile Student Housewife Working Professional Business Self Employed Government service employee No. of respondents 62 5 116 49 24 14

- 56 -

CHART 3:

5% 9% 23% Student Housewife Working Professional 2% Business Self Employed Government service employee 43%

18%

Analysis: From the chart above it can clearly be seen that 43% of the respondents are working professionals, 23% are students and 18% are into business. Therefore the target market would be working individuals in the age group of 18 25 years having surplus income, interested in good returns on their investment and saving income tax.

NO. OF RESPONDENTS WHO HAVE LIFE INSURANCE POLICY IN THEIR NAME TABLE 4: Person who have life insurance policy Yes No 103 167

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CHART 4:

103, 38% 167, 62%

Yes
No

ANALYSIS: This graph shows that out of total 270 respondents only 103 or 38% respondents have life insurance policy in their name. Rest all dont have a single policy in their name. So there is a very big scope for life insurance companies to cover these people. So in future business of life insurace will gro further.

MARKET SHARE OF LIFE INSURANCE COMPANIES TABLE 5:

LIFE INSURER HDFC STANDARD LIFE BIRLA SUN LIFE AVIVA LIFE INSURANCE BAJAJ ALLIANZ LIC

NUMBER OF POLICIES 4 3 6 7 55

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TATA AIG ICICI PRUDENTIAL ING VYSYA BHARTI AXA OTHERS

6 12 6 2 2

CHART 5:

60% 50%

53%

Percentage

40% 30% 20% 10% 0% 4% 3% 6% 7% 11% 6% 6% 2% 2%

Company Name

Analysis: In India, the largest life insurance company is Life Insurance Corporation of India. It has been in existence in India since 1956 and is completely owned by the Government of India. Today the organization has grown to 2048 offices serving 18 crore policies and has a corpus of over 340000 crore INR.

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ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE

TABLE 6:

Premium paid (p.a.) Rs. 5000 - Rs. 10000 Rs. 10001 - Rs. 15000 Rs. 15001 - Rs. 24900 Rs. 25000 - Rs. 50000 Rs. 50001 - Rs. 60000 Rs.60001 - Rs. 80000 Rs. 80001 - Rs. 100000

No. of respondents 40 26 18 10 4 2 3

CHART 6: ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE

4% 2% 3% 10% 17% Rs. 5000 - Rs. 10000 39% Rs. 10001 - Rs. 15000 Rs. 15001 - Rs. 25000 Rs. 25001 - Rs. 50000 25% Rs. 50001 - Rs. 60000 Rs.60001 - Rs. 80000 Rs. 80001 - Rs. 100000

Analysis:

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From the chart above we find that, 39% of the respondents surveyed pay an annual premium less than Rs. 10001 towards life insurance. 25% of the respondents pay an annual premium less than Rs. 15001 and 17% pay an annual premium less than Rs. 25000. Hence we can safely say that HDFC SLIC would be able to

capture the market better if it introduced products/plans where the minimum premium starts at Rs. 5000 per annum. Only 19% of the respondents pay more than Rs. 25000 as premium and most products sold by HDFC SLIC have Rs.12000 as the minimum annual premium amount. They should introduce more products like Easy Life Plus and Safe Guard where the minimum premium is Rs.6000 p.a. and Rs. 12000 p.a. respectively. This would definitely increase their market share as more individuals would be able to afford the policies/plans offered.

POPULAR LIFE INSURANCE PLANS TABLE 7:

Type of Plan Term Insurance Plans Endowment Plans Pension Plans Child Plans Tax Saving Plans

No. of Respondents 105 122 16 8 19

CHART 7: POPULAR LIFE INSURANCE PLANS

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3% 6%

7% Term Insurance Plans 39% Endowment Plans Pension Plans Child Plans Tax Saving Plans

45%

Analysis: From the chart given above we can clearly see that 45% of the respondents hold endowment plans and 39% of the respondents hold term insurance plans. Endowment plans are very popular and serve two purposes life cover and savings. If the policy holder dies during the policy term the nominee gets the death benefit that is, sum assured and accumulated bonus. On survival the policy holder receives the survival benefit with a bonus. A term plan is a pure risk cover plan wherein the insured pays a lower premium for a higher sum assured. Term insurance is the cheapest form of insurance and helps the policy holder insure himself for a relatively low premium. For the returns sensitive investor term plans do not find favor as they do not offer a return in case the individual does not die during the policy term.

AWARENESS OF UNIT LINKED INSURANCE PLANS

TABLE 8: Awareness of Unit Linked Plans Yes No No. of Respondents 154 116

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CHART 8:

AWARENESS OF UNIT LINKED INSURANCE PLANS

43% 57% Yes No

Analysis: From the chart given above we find that 57% of the respondents are aware of unit linked life insurance plans and 43% are not aware of such plans. These plans should be promoted through advertising. The company can advertise through television, radio, newspapers, bill boards and pamphlets. This would increase awareness and arouse curiosity in the minds of the consumer which would enable the company to market its products more effectively. Unit linked plans are those where the benefits are expressed in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds. The number of units a customer would get would depend on the unit price when they pay the premium.

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When the policy matures the individual gets his fund value. The value of his fund is calculated by multiplying the net asset value and number of units held by them on that day.

CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM

TABLE 9:

No. of Willingness to spend on premium Less than Rs. 6,000 Rs. 6,001 - Rs. 10,000 Rs. 10,001 - Rs. 25,000 Rs. 25,001 - Rs. 50,000 Rs. 50,001 - Rs. 1,00,000 respondents 41 73 110 41 5 Percentage 15% 27% 41% 15% 2%

CHART 9:

CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM

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50% Percentage 40% 30% 20% 10% 0% Less than Rs. 6,000 Rs. 6,001 Rs. 10,000 15% 27%

41%

15% 2% Rs. 10,001 - Rs. 25,001 - Rs. 50,001 Rs. 25,000 Rs. 50,000 Rs. 1,00,000

Insurance Premium

Analysis: From the graph above, we can clearly see that 41% of the respondents would be willing to spend between Rs. 10001 Rs. 25000 for life insurance. 27 % would be willing to spend between Rs. 6001 Rs. 10000 per annum. Only 15% would be willing to spend more than Rs. 25000 per annum as life insurance premium. We could say that the maximum premium payable by most consumers is less than Rs. 25000 p.a. This is further reduced as most customers have already invested with LIC, ICICI Prudential, Birla Sun Life, Bajaj Allianz etc. HDFC SLIC is faced with a large amount of competition. There are 18 insurance companies in India inclusive of LIC. Hence to capture a larger part of the market the company could introduce more reasonable plans with lesser premium payable per annum.

CHART SHOWING IDEAL POLICY TERM TABLE 10:

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Ideal policy term 3 - 5 years 6 - 9 years 10 - 15 years 16 - 20 years 21 - 25 years 26 - 30 years More than 30 years Whole life Policy

No. of respondents 51 41 95 38 24 5 3 13

CHART 10: CHART SHOWING IDEAL POLICY TERM

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40% 35% 30% Percentage 25% 20% 15% 10% 5% 0% 19% 15%

35%

14% 9% 5% 2% 1% More Whole life than 30 Policy years

3 - 5 years6 - 9 years 10 - 15 years

16 - 20 years

21 - 25 years

26 - 30 years

Years

Analysis: From the chart given above it can be seen that 35% of the respondents prefer a policy term of 10 15 years, 19% prefer a term of 3 5 years and 15% prefer a term of 6 9 years. This means that HDFC SLIC could introduce more plans wherein the premium paying term is less than 15 years. The outlook of insurance as a product should be changed from something which you pay for your whole life (whole life policy) and do not receive any benefit (the nominee only receives the benefit in case of your death) to an extremely useful investment opportunity with the prospects of good returns on savings, tax saving opportunities as well as providing for every milestone in your life like marriage, education, children and retirement.

FACTORS THAT MOTIVATE RESPONDENTS TO PURCHASE INSURANCE

TABLE 11:

Parameter Advertisements

No. of Respondents 35

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High returns Advice from friends Family responsibilities Others

84 46 89 16

CHART 11:

6%

13% Advertisements

33% 31%

High returns Advice from friends Family responsibilities Others

17%

Analysis:

From the chart above it can be seen that 33% of the respondents purchase life insurance to secure their families, 33% take life insurance to get high returns, 17% purchase insurance on the advice of their friends and 13% purchase insurance because of the influence of advertisements. The main purpose of insurance is to cover the financial or economic loss that occurs to the family in case of the uncertain death of the policy holder. But now a days this trend is changing. Along with protection (life cover), a savings element is being added to insurance.

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With the introduction of the new unit linked plans in the market, policy holders get the option to choose where their money will be invested. They can invest their money in the equity market, debt market, money market or a combination of these. The debt and money markets usually have low risk attached whereas the equity market is a high risk investment option.

PREFERRED COMPANY TYPE OF THE RESPONDENTS

TABLE 12:

Type of Company Government Owned Company Public Limited Company Private Company Foreign Company

No. of Respondents

Percentage

127 62 49 32

47% 23% 18% 12%

CHART 12: PREFERRED COMPANY TYPE OF THE RESPONDENTS

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No. of Repondents (%)

70% 60% 50% 40% 30% 20% 10% 0%

60%

29% 7% Government Public Limited Private Company Owned Company Company Type of Company 4% Foreign Company

Analysis: From the graph above we find that 60% of the respondents preferred to purchase insurance from a government owned company, 29% of the respondents preferred to purchase insurance from a public limited company and only 4% of the respondents preferred a foreign based company. Heavy advertising through television, newspapers, magazines and radio is required.

MINIMUM EXPECTED RETURN ON INVESTMENT

TABLE 13: Expected Returns Less than 5% 5% - 10% 11% - 15% 16% - 20% 21% - 25% 26% - 30% No. of respondents 5 39 46 49 46 27

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31% - 40% 41% - 50% More than 50%

22 14 22

CHART 13:

No. of Respondents (%)

20% 15% 10% 5% 0% 2% 14%

17%

18%

17% 10%

8% 5%

8%

Less than 5% - 10% 11% 5% 15%

16% 20%

21% 25%

26% 30%

31% 40%

41% More 50% than 50%

Expected Returns

Analysis: From the chart above it can clearly been seen that 18% of the respondents would like 16 20% returns, 17% would like returns between 21 25% and 17% would like returns of 11 15% on their investments. Therefore the average return on investment should be at least 16 20 %. Most consumers are willing to adapt to some amount of risk but still want some guaranteed returns. Therefore the bulk of investment should be made in the balanced fund with 50% debt and 50% equity. The returns on the Secure Fund are guaranteed as these involve investment is government securities and the debt market. But the returns on these instruments are low (8 10%). If the company invests in shares, returns are higher (39%) but correspondingly risk borne by the policy holder is also higher. Therefore a good combination of the two instruments is often a wise choice.

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FINDINGS

1- Customers are less aware about the private insurance company in market. 2- Some customer likes to join HDFC as FCs because it is a Part-time job. 3- Many professions like CA, tax planner wants corporate agency rather than to be a financial consultant. 4- HDFC is too selective in making a FC rather than to appoint any one like LIC. 5- Customers dont want to join as financial consultant because its on commission basis and they want the job on salary basis. 6- Educated customers are now vending towards private insurance Companies, due to the attractive packages and services provided by various new insurance companies. 7- LIC has created a branded image in 3-4 decades, due to which new insurance companies are facing trouble in capturing market share.

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8-

If the customers are joining HDFC the segment is more of tax consultant, investment for consultant and other people who are engaged in investment business that is because they want to diversify their portfolio.

9- HDFC SLIC is having good retention strategies for their financial consultant.

SUGGESTIONS

Customers should be made aware of the brand name of Insurance Company through advertisement.

The fear in the customer mind should be removed by company.

The insurance companies should try to nurture their brand name timely and attractive facility provide to customer.

FUTURE LINE OF RESEARCH

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The future topics for research in the organization could be setting up of an appropriate ad campaign. It is very vital to the companies success that the people of India know about HDFC SLIC, its products and their special features and how insurance in general can help them in their future. The advertisements have to be emotionally appealing. They might also include a celebrity. The brand name of HDFC could be used to give a push to HDFC SLIC and its products. The general perception of insurance as inauspicious should be done away with and individuals and corporations accept insurance on power with other investment opportunities. The other area of research could be in the management of funds HDFC SLIC possesses and how it can maximize returns for its investors. A research project could be undertaken on how to ensure that the money gets invested in the right companies and earns a medium high return on investment. Another area of research could be an analysis of the sales and marketing techniques used by HDFC SLIC. A large number of changes could be introduced and this would help in saving operating costs and improving the efficiency of the firm. CONCLUSION HDFC standard life insurance is first life insurance Company in India. It has businesses spread out across the globe. It was registered on 23 December 2000. It currently ranks number 4 amongst the insurers in India (Source: annual premium provided by the company) The company faces a large amount of competition. To sustain itself it must promote its products through advertising and improve its selling techniques. Consumers must be aware of the new plans available at HDFC SLIC. The medium of advertising used could be television since most of its competitors use this tool to promote their products. The company must be promoted as an Indian company since consumers seem to have more trust in investing in Indian firms. The unit linked concept must be specifically promoted. The general perception of life insurance has to change in India before progress is made in this field. People should not be afraid to invest money in insurance and must use it as an effective tool for tax planning and long term savings. HDFC SLIC could tap the rural markets with cheaper products and smaller policy terms. There are individuals who are willing to pay small amounts as premium but the plans do not accept premiums below a certain amount. It was usually found that a large number of males were insured compared to females.
rd

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Individuals below the age of 30 (mostly male) were interested in investment plans. This was a general conclusion drawn during prospecting clients.

A SURVEY ON INSURANCE INDUSTRY Dear Sir/Madam, I am a student of Institute Management & Research, Ghaziabad. As part of the requirements for my Post Graduation Diploma in Marketing Management I am required to do a research based project. Kindly spend a few minutes of your valuable time and fill in this questionnaire. 1) Do you have a life insurance policy/investment plan in your name? Yes o No

2) If yes which companys insurance policies do you hold? HDFC Standard Life Insurance Aviva Life Insurance LIC ICICI Prudential Life Insurance Bharti Axa Life Insurance o Birla Sun Life Insurance o Bajaj Allianz Life Insurance o Tata AIG Life Insurance o ING Vysya Life Insurance o Others (specify name) ______________________________

3) What is the approximate premium paid by you annually (in Rupees)? Rs. 5,000 Rs. 10,000 Rs. 15,001 Rs. 25,000 Rs. 50,001 Rs. 60,000 Rs. 80,001 Rs. 1,00,000 More than Rs. 1,00,000 (specify premium) ____________________________ o Rs. 10,001 Rs. 15,000 o Rs. 25,001 Rs. 50,000 o Rs. 60,001 Rs. 80,000

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4) What kind of insurance policy would suit you best in your current stage of life? Life Insurance Pension Plans Tax saving plans o Life Insurance and Investment Plans o Child Plans

5) Are you aware of the new unit linked insurance plans in the market? Yes o No

6) How much would you be willing to spend per annum if you were to go for an investment/insurance plan? Less than Rs. 6,000 Rs. 10,001 Rs. 25,000 Rs. 50,000 Rs. 1,00,000 o Rs. 6,001 Rs. 10,000 o Rs. 25,001 Rs. 50,000 o More than Rs. 1,00,000

7) Which according to you is an ideal policy term? (Number of years you would be willing to pay premium) 3 to 5 years 10 to 15 years 21 to 25 years More than 30 years o 6 to 9 years o 16 to 20 years o 26 to 30 years o Whole life policy

8) What motivates you to purchase insurance/investment plans? Advertisements Advice from friends Others (specify) o High Returns o Family responsibilities

9) In which kind of company would you prefer to make a purchase of insurance? Government owned company Private Company o Public Limited Company o Foreign based company

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10) Typically what kind of returns would you look at from your investments? (Please note: Higher returns involve greater risk) O Less than 5% O 11% - 15 % O 21% - 25% O 31% - 40% O More than 50% o 6% - 10 %

o 16% - 20 % o 26% - 30% o 41% - 50%

Personal Details :

Name Address Age Contact No.

: : : :

__________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________

Profile of respondent: Student Housewife Working Professional Business Self-Employed Government Service Employee

Date: _______________

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REFERENCES/ ANNEXURE Web-Site :s www.hdfcslic.com www.tata-aig-life.com www.irdaindia.com www.lic.com www.money control.com www.bajajallianz.com www.icici.prulife.com www.indiacore.com www.bajajallianz.com www.iciciprulife.com www.tataaig.com Magazine Insurance World The Outlook Money Secrets of Successful Insurance Sales by Mr. Jack Kinder

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