A PROJECT STUDY REPORT ON

CUSTOMER PERCEPTION ABOUT ULIP IN RECESSION OF HDFC SLIC

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

PARISHKAR COLLEGE OF GLOBAL EXCELLENCE

SUBMITTED BY:PRANAV PAREEK 1

SUBMITTED TO:MISS EKTA SHARMA

(B.B.A. Final Year)

(H.O.D. of B.B.A.)

PREFACE
This project report has been prepared as per the requirement of the syllabus of BBA course structure under which the students are required to undertake real life short term corporate study. The vision of this project study is to evaluate the customer perception about ULIP in recession of HDFC standard life at Jaipur city in Rajasthan. The job during the project was to get an overview of the life insurance products. Performing such corporate study and surveying the market was a firsthand experience for me. I was exposed to the professional set-up and faced the market, which was really a great experience. During project period, I had very touching experiences. When business is involved, experiences counts a lot, as we know, experience are an instrument, which leads towards success. We all know that working in market on the grass route level has always been a pleasure. Now I take this opportunity to present the project report and sincerely hope that it will be as much knowledge enhancing to the readers as it was to use during the fieldwork and the completion of the report.

AKNOWLEDGEMANT
I express my sincere thanks to my project guide, Miss Ekta Sharma, for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I would also like to thank the supporting staff of Parishkar College of Global Excellence , jaipur for their help and cooperation throughout our project.

PRANAV PAREEK B.B.A Final Year

EXECUTIVE SUMMARY

HDFC Standard Life insurance is one of the oldest life insurance company in the world. It is the largest insurer in the UK and is the 28th largest company in the world. In India, the company is marketing life insurance products and unit linked investment plans. From my research at HDFC SLIC, I found that the company has a lot of competition from other private insurers like ICICI, Aviva, Birla Sun Life and Tata AIG. It also faces competition from LIC. To compete effectively HDFC SLIC could launch cheaper and more reasonable products with small premiums and short policy terms (the number of years premium is to be paid). The ideal premium would be between Rs. 10,000 Rs. 50,000 and an ideal policy term would be 10 20 years. From the research it was found that the customers are giving more priority to ULIP products in comparison to traditional plans.

HDFC must advertise regularly and create brand value for its products and services. Most of its competitors like Aviva, ICICI, Max, Reliance and LIC use television advertisements to promote their products. The Indian consumer has a false perception about insurance they feel that it would not benefit them if they do not live through the policy term. Nowadays however, most policies are unit linked plans where a customer is benefited even if their death does not occur during the policy term. This message should be conveyed to potential customers so that they readily invest in insurance. Family responsibilities and high returns are the two main reasons people invest in insurance. Optimum returns of 16 20 % must be provided to consumers to keep them interested in purchasing insurance.

On the whole HDFC standard life insurance is a good place to work at. Every new recruit is provided with extensive training on unit linked funds, financial instruments and 4

the products of HDFC. This training enables an advisor/sales manager to market the policies better. HDFC was ranked 13 in the Best Places to Work survey. The company should try to create awareness about itself in India. In the global market it is already very popular. With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, HDFC would be all set to capture the insurance market in India as it has around the globe.

TABLE OF CONTENTS

S.No. 1 2 3 4 5 6 7 8 9 10 11

Particular Industry Profile Company Profile of HDFC SLIC Unit linked insurance plans (ULIP) Comparison between Conventional & ULIP Analysis and Interpretation Facts & Findings SWOT Conclusion Suggestions & Recommendations Questionnaire Bibliography

P.No. 7 37 55 75 77 86 89 93 95 98 100

INDUSTERY PROFILE

INDUSTERY PROFILE
INSURANCE-DEFINED 1 Insurance is contract in which sum of money is paid to assured in consideration of insurers incurring risk of paying a large sum upon a given contingency. Justice Tindall 2 Insurance is contract by which one party for a compensation called in the premium assume particular risks of the other party and promises to pay to him or his nominee a certain sum of money on a specified contingency. E.W>Fitterson , 3 Insurance may be describe as a social device whereby a large group of individual , through a system of equitable contribution, may reduce certain measurable risk of economic loss common to all of group of member Encyclopeida Britannica. The above definition clearly shows that insurance is a corporative device to spread the loss caused by a particular risk over a member of person who are exposed to it and who agree to insure themselves risk. Insurance does not eliminate risk but only reduce the financial burden which may be very heavy.

Insurance Profile
The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. Wherever there is uncertainty, there is risk. The risk cannot averted. it involves multifaceted losses

Risk is uncertainty of financial losses. We do not have any command on uncertainty. This makes it Essential that we think in favor of a device that becomes instrumental in spreading the lose .it is in This context that we think about insurance, which is considered to be a social devices to accumulate funds to meet uncertain losses. The main function of insurance is to provide protection against the possible chances of generating of losses. The earliest traces of insurance are in the form of marine trade losses or carriers contracts. In Reigiveda the reference are made to the concept of Yogakshema, which is more or less akin to Well-being and security to people. This market is clear that the trace for sharing the future losses were available even in the ancient India However there is no evidence of a particular form or shape specially before the 12th century. The oldest form of insurance is the marine insurance The travelers by sea or by land very much exposed to the risk of losing their assets ,vessels and merchandise required to cover risk the Marine Insurance was found suitable for the purpose. After the marine insurance we find the development in this field of fire insurance It started from Germany in beginning of the 16th century. The great fire in England in 1666 which resulted in the turning of 85% of the houses to ashes injected life, strength and continuity to the concept of fire insurance with colonial development of England the fire insurance spread all over the world in India The general insurance started working on 1850. the credibility for the same goes to the Triton Insurance in Calcutta. The life insurance was found existent in England in the 17th century the policy of life of William gibbons on 18 june,1633. the first recorded evidence even of this ,the annuities were found common in England. The first registered life office was the Hand-in-Hand Society which was established in 1696. in USA. In India the first Life Insurance Company was established in the Bengal Presidency in 1818,which was Knows as the Orient Life Insurance Company In the annual of insurance ,the 1870 is the a landmark. Experiencing so many ups and down. The insurance business was found in a changed shape particularly after the attainment of independence and to be more specific after Nationalisation

In 1956. The General Insurance was nationalized in 1971. The Insurance Business in India is found under the public sector, which is managed by a corporation. There is no doubt in it that a number of small companies are working under the private sector but teir insignificant contribution to society right now keep them out of the preview. A public sector insurance business of course made possible numerous change in the functional areas of the insurance corporation but at the same time it also made for a degeneration in the quality of service we cant deny the fact that after Nationalisation ,a number of steps have been taken to spread the insurance business much more widely to rural areas and specially to the socially or economically Backward regions with the review of reaching all the potential users of the services . The low level of penetration of Life Insurance in India compared to other develop nations can be judged by a comparison of per capital life premium which is extremely low in India. It has been estimated that life premium per capita US $ in 1994 in Japan is 3,817, in UK it is 1, 280, in USA it is 964 and in India it is only 4$. Clearly there is scope to rise per capital life premium. Secondly, life premium as a percentage of GDP is very low(1.29%) in India as compared to other countries it is 10.10% in japan,9.10%in UK ,and 7.31% in USA , India has traditionally been a highly saving oriented country ,like Japan .it might be possible to rise life premium as a percentage of GDP from the existing level of 1.29%. Life premium is the percentage of GDS (gross domestic saving) is also very low in India only 5.95% the comparative data reviles that it is 52.2% in UK, 51.55% in South Africa, 32.46% in Japan 26.2% in France, 25.2% in US and 21.92% in Korea. It may be possible to rise the same in India through effective exploitation of potential by creating and marketing innovative insurance products. The rapid growth of east Asia tiger economics is mainly due to the high rate of savings. Savings provides resources for high level of investment which in turn acts as a fuel for overall growth. The result sustained GDP growth rates of more than 8% over the last decade. the lower rate of saving in India must increase to the level of China has attained-whered as percentage of GDP in the last three years was around 42%. Such as increase will considerably broaden the size of existing life insurance market.

10

The business of life insurance in India in its existing from started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

11

INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalize market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. The business of life insurance in India in its existing from started in India in the year 1818 with the establishment of the oriental life insurance company in Calcutta. Some of the important milestones in the insurance business in India are:1818: The British introduce life insurance to India, with the establishment of the oriental life insurance company in Calcutta. 1850: Non life assurance society is the first Indian owned life insurer. 1912: The Indian insurance companies act enable the Government to collect Statically information about both life and non life insurance business. 1938: Earlier legislation consolidated and amended to by the insurance act with the objective of protecting the interest of the insuring public. 1956: 245 Indian and Foreign insurers and provident societies taken over by the Central Government and Nationalized. LIC formed by an act of Parliament, viz LIC act, 1956 with a capital contribution of Rs. 5 crore from the Govt. of India. 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. 1907: the India mercantile insurance ltd. Set up the first company to transact all classes of General insurance business. 1957: General Insurance Council a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The insurance act amended to regulate investments and set minimum solvency margins and the tariff advisory committee set up. 1972: The General Insurance Business Act, 1972 nationalized the amalgamated and grouped into four companies viz the National Insurance Company Ltd, The New India Insurance Company Ltd. GIC incorporated as a company. 1993: Malhotra Committee headed by former RBI Governor R.N.Malhotra set up to draw up a blue print for insurance sector reforms. 12

1994: Malhotra Committee recommends re-entry of Private players autonomy to PSU insurers. 1997: Insurance regulator IRDA set up. 2000: IRDA starts giving licenses to private insurers, ICICI Prudential and HDFC Standard Life first private life insurers to sell a policy. 2001: Royal Sundram Alliance first non life insurer to sell a policy. 2002: Banks allowed selling insurance plans, as TPAs enter the Scheme, insurers start setting non-life claims in the cashless mode.

With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian 13

insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. Present Scenario The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 14 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies.. Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. 14

The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans. Major Insurance Players Licenses have been issued for the following companies ICICI Prudential Life Insurance Company Limited ICICI Prudential Life Insurance Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited SBI Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited AMP Sanmar Life Insurance Company Limited Sahara India Life Insurance Limited Sri Ram Life Insurance Limited 15

NATURE OF INSURANCE
The Insurance has a following characteristics, which are observed in case of life,marine, fire and general Insurance

Sharing of Risk
Insurance is a coopertive device to share the financial losses which might befall on an individual or his facility on the occurrence of specified event such as sudden death of bread winner,marine perils in marine insurance, in the fire insurance and theft insurance etc.in the case of general insurance.

It is cooperative device
A large number of person agree to share the loss arising shu to a particular, risk. Thus Insurance is a cooperative device.

Value of risk
The risk is evaluated before insuring to charge the amount of share called premium.

Payment made at contingency

The payment is made at a certain contingency insured ,the contingency may be death , fire,marine perils etc.

Amount of payment
The amount of payment depends upon policy insured.

FUNCTIONS OF INSURANCE.
1 PRIMARY FUNCTION 2 SECONDARY FUNCTION Primary Function Insurance provide Certanity Insurance provide a certainty of payment at the uncertainty of losses. The elemant of uncertainty is reduced by a better planning and better administration 16

Insurance provides Protection The risk will occur or not, when will occur and how much loss will be , there. There are uncertainty of happing of time and amount of losses. The main function iof insurance is to provide protection against the losses.

Risk Sharing Risk is uncertain and there for the loss arising from the risk is also uncertain all business concernfaces the problem of the risk and if the concern is big enough the handling of risk is become a specialized function. Insurance, as a device is the outcome of the existence of various risk in our day to day life It spread the whole losses over a large number of persons who are exposed by a particular risk Secondary function Protection from harms & losses. Prevention is always better than cure. Prevention is by far the best soluation of the problem of risk It more effective and cheapest method to avoid the unfortunate consequence. But some times preventions is not always possible and effective. It provide the capital the society. For plan development of country there is a great need for huge amount of capital Now days the insurance companies are rebdering positive help in the development Of trade, commerce and industry of the country.

In augment and induce efficiency

Achivement of goals , it improves not only his effieiency of the masses is also advanced. The insurance Eliminates worries and miseries of losses and death and destruction of propertyb care free person can devote his energies for better. It enables the welfare of society Insurance is a saga of services and security to our society security of the life and property given by Insurance bring peace of mind to the insured. 17

THE LIFE INSURANCE MARKET IN INDIA An informal estimates has been made by various experts to assess the existing insurance market in India in terms of premium income. Out of an insurable population of 300 million, 50 million have the capacity to pay a premium of US $ 300 per year, 100 million have the capacity to pay US $ 200 per year and 150 million have the capacity to pay US $ 100 per year. On this basis the total annual insurance premium would be US $ 50 billion. The needs and financial capacity. The remaining 80% have to insurance cover. The life insurance market of India therefore is practically untapped. A BRIEF CAMPARISON OF INDIAN LIFE INSURANCE WITH DEVELOPED COUNTRIES The low level of penetration of life insurance in India compared to other develop nations can be judged by a comparison of per capita life premium.

Country
JAPAN

Life Premium per capita US $

4012

UK
USA INDIA

1520
1305 70

Clearly, there is considerable scope to raise per capita life premium if the market is effectively tapped. With an insurable population of 300 million, per capita life premium can be raised to a level of US $ 200 - $300 and hence the market can expand by 50 to 75 times over the existing size. Secondly life premium as a percentage of GDP is very low in India as the following comparative date reveals. Country JAPAN UK Life Premium as % GDP 10.10% 9.10%

USA
INDIA

7.31%
3.29%

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India has traditionally been a highly savings oriented country often describe as being on par with the thirty Japan. Needless to say, if the insurance market is properly tapped, it is possible to raise life premium as a % of GDP from the existing level of 3.29% to 10% on par with Japan . this will bring an eight fold increase in the existing volume of life premium. Thirdly, life premium as a % of GDS (Gross domestic Savings) is very low in India as the following comparative date adequately demonstrates. Country UK Life Premium as % GDS. 52.50

S.AFRICA
JAPAN FRANCE USA

51.55
32.46 26.20 25.20

S.KOREA
INDIA

21.92
5.95

It is possible to raise life premium as a % of GDS in India from the existing levels. The big question is whether the players are able to effectively exploit the potential by creating and marketing attractive insurance products with high rates of return on premium investments. This would help deepen the market as the same family could opt for different schemes catering to different needs. Fourthly, GDS as a % of GDP is very low in India. Contrary to the fact that the culture of saving is inherent in the Indian way of life is another fact that is not efficiently harassed by motivation. Country Singapore China Malaysia Korea GDS as % of GDP 1993 48.5 41.5 35.4 35.4 1994 51.3 41.4 37.6 35.5 19 1995 55.6 42.2 37.2 27.0 1996 NA NA NA NA

Hong Kong India

14.6 21.4

33.9 24.4

24.5 22.5

NA NA

The rapid growth of East Asia tiger economies is mainly due to the high rate of savings in these countries. Savings provide resources for high levels of investment which in turn acts to feel overall growth. The result sustained GDP growth rates of more than 8% over the last decade. The low rate of savings in India must increase to the levels that China has attained where GDS as a % of GDP in the last three years was around 42%. Such as increase will considerably broaden the size of the existing life insurance market.

Market Share of All LifeInsurance Companies.

MARKET SHARE OF INSURANCE COMPANIES LIFE INS CORPORATION HDFC STANDARD LIFE IN TATA AIG INS

Market Share Of Insurance companies

S B I LIFE INS

ICICI PRU LIFE INS

Market share of LIC is much more in compare to other life insurance companies the reason being LIC is one of the oldest and only Public sector insurance company in this field.

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Graph Showing Rural Market Share.

Rural Market Share
Others , 20%

LIC, 80%

Graph showing No. of Branches in Rajasthan

No. of Branches
Tata AIG 3

Sahara Life

Company

Bajaj Allianz

25

HDFC Standard

ICICI Pru

LIC 0 5 10 15 20 25 30

32 35

No. of Branches

21

22

Graph showing number of policies (plans) of various Companies.

No. of Policies
50 45 40 45

No. of Policies

35 30 25 20 15 10 5 0 ICICI Pru LIC HDFC Standard Om Kotak SBI Bajaj Allianz Sahara Lif e 5 18 20

10

Company

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INSURANCE TYPS

Personnel Insurance Insurance

Property Insurance

Liability Insurance

Fidelity

Life Insurance

Personal Accidental Insurance

Health Insurance

Marine Insurance

Fire Insurance

Automobile Insurance

Cattle Insurance

Cope Insurance

Machinery Insurance

Theft Insurance

Third party Insurance

Employees Insurance

Motor Insurance

Reinsurance

Fiduciary Insurance

Credit Insurance

Privilege Insurance

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MARKET SEGMENTATION FOR INSURANCE

Household Sector; Salaried Class Self Employed Retired Employees

Industrial Sector; Public Sector Private Sector

Segments

Trade Sector; Small Business Big/Large Businesss

Sub-Segments

Institutional Sector Colleges Universities School, Instituties

Region Wise; Central Zone Eastern Zone Northern Zone Southern Zone Rural Sector Gender Man / Women Age-Kids, Teens Youth, Grey

Before the adoption of mass production the markets were automatically segmented because each Services or product was tailored to the needs of buyer and user who had ordered for supply with an increase in the scale of operation the segmentation occupied a place of significance This was due to the fact that the scale of production large in size was found unmanageable

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Know the Market was made difficult process and consumptions processes were found complicated to get a success ti is essential that we know the different segments consuming/using our goods and services.In the insurance organization the task of formulating the overall marketing strategies can not efficiently unless we segment the market. It was against this background that marketing studi What is Life Insurance? Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible moneysaving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance. Key Benefits of Life Insurance Life insurance, especially tailored to meet financial needs Need For Life Insurance Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps .you to meet your dual needs - saving for life's important goals, and protecting your assets. Let us look at these unique benefits of life insurance in detail Some of the important milestones in the Life Insurance business in India are: 1912: The Indian life Assurance Companies Act enacted as the first statute to regular the life insurance business. 26

 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life Insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objectives of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,with a capital contribution of Rs.5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots the Triton Insurance Company Ltd The first general insurance company established in the year 1850 in Calcutta by Rs.5 crore from the Government of India. 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: 1907: The IndianMercantile Insurance Ltd. St up, the first company to transact 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investment and minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) act, 1972 nationalized the general insurance business in India with the effect from 1st January 1973. Insurers amalgamated and grouped into four companys viz. the National Insurance Company Ltd., the New India Assurance Company Ltd. all classes of general insurance business. the British. Formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of

27

Human Life Value What is our Human Life Value? Beyond all doubt, our life is invaluable. Yet, there is a certain worth that can be attributed to the financial support we offer our parents, spouse or children. This worth is referred to as Human Life Value (HLV). In the future, if our family does not have the protective blanket of our presence, they will no longer be able to enjoy the benefits of the income we earned. Put simply, Human Life Value is the present value of our future earnings. Why should we calculate our Human Life Value? we should calculate our Human Life Value so we can accordingly invest in insurance plans that provide our family with adequate finances and hence security even in our absence. How do we determine our Human Life Value? Our Human Life Value is determined by 3 factors: 1. Our age 2. Current and future expenses 3. Current and future income as a thumb rule, if we are 30 years of age, we should insure yourself for an amount approximately 8 times Our annual income. At 35, Our investment should be close to 6 times our income. Of course, the number of people who depend on our existing investments, our life stage and us should determine the exact amount of our investment. For example, if you are 30 years of age and have two children and parents to provide for, the amount we invest should be reflective of our requirements.

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INSURANCE SECTOR REFORMS:

IN 1993, malhotra committee headed by former finance secretary and RBI governor R.N. malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The malhotra committee was set up with the objectives of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms ..

In 1994 the committee submitted report and some of the key recommendations Included;
Stricture Government stake in the insurance companies to brought down to 50% Government should take over the holding of GIC and its subsidiaries so that these subsidiaries can act as independent corporations All the Insurance Companies should be given greater freedom to operate Competition Private Companies with a minimum paid up capital of Rs 1bn should be allowed to enter the industry No should company deal in both Life and General Insurance through a single entery Foreign companies may be allowed to enter the Idustry in collaboration with the domestic Companies Postal Life Insurance should be allowed to operate in the Rural market Regulatory Body The Insurance Act Should be changed 29

 An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be made Independent. Investment Mandatory Investment of LIC Life Fund in Government securities to be reduced from 75% to 50% GIC and its Subsidies are not to hold more than 5% in any Company(There current holding to be brought down to this level over a period of time ) Customer service LIC should pay Interest on delays in Payment Beyond 30 days Insurance Companies must be encouraged to set up unit linked pension plan Computerisation of operations and updating the technology to be carried out in the Insurance Industry. The Committee emphasized in order to improve the customer service and increase the coverage of the insurance industry should Opned up to competition but at the same time, the committee felt the need to exercise caution as any failure on the part of new player could ruin the public confidence in the industry It was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs 100corers. The committee felt that the need to provide greater autonomy to insurance companies in order to improve their performance and enable themto act as a independent companies with economic motives for this purpose ,it had proposed setting up and independent regulatory body.

The Insurance Regulatory and Development Authority

Reforms in the insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since in its incorporations as a statutory body in April 2000 has fastidiously stuck to its schedule of training regulation and registering the private sector insurance companies

30

The other decision taken simultaneously to provide the supporting system to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents The approval of institutions for imparting traning to agent has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products Which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in the framework of globally compatible regulations. In the private sector 15 Life Insurance and 15 Non-Life Insurance Companies have been registered. Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.

Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend of cancel such registration. Protection of the interest 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. Specifying requisite qualifications, code of conduct and partial training for intermediary or insurance intermediaries and agents. Specifying the code of conduct for surveyors and loss assessors. Promoting efficiency in the conduct of insurance business. Promoting and regulating professional organization connected with the insurance and reinsurance business. Levying fees and other charges for carrying out the purposes of this. Act. Calling for information from undertaking inspection of conduction enquiries and investigations including audit of the insurers, intermediaries, insurance intermedieraries and other organization connected with the insurance business.

31

Specifying the form and manner in which books of account shall be maintained and insurers and other insurance shall render statement of accounts intermediaries. Regulating investment of funds by insurance companies Regulating maintenance of margin of solvency. Adjudication of disputes between insurers and intermediaries of insurance intermediaries. Supervising the functioning of the Tariff Advisory Committee.

Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f). Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector, and exercise such other powers as may be prescribed.

Entry of Private Player The introduction of private Players in the industry has to added to colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competitions to the on time monopoly of the market LIC. Since the advent of private players in the industry has seen new and innovative steps taken by the player in the sector. The new players have improved the services quality of the Insurance.

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PRESENT PLAYERS IN THE LIFE INSURANCE IN INDIAN MARKET

As on 31st March 2010.

Insurance Industry in the year 2000-2001 had 16 new entrants, entering the Indian insurance sector with their Indian Partners) (Foreign players

Life Insurance Companies List: S. No. 1 2 3 4 5 6 7 8 9 10 11 Registration Number 101 104 105 107 109 110 111 114 116 117 121 Date of Registration 23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 03.01.2002 Name of the Company HDFC Standard Life Insurance Co. Ltd. Max New York Life Insurance Co.Ltd. ICICI Prudential Life Insurance Co. Ltd. OmKotak Mahindra Life Insurance Co. Ltd. Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Ltd. ING Vysya Life Insurance Company Ltd. Allianz Bajaj Life Insurance Company Ltd. MetLife India Insurance Company Ltd. AMP Sanmar Assurance Company Ltd.

General Insurance Companies List: S. No. 1 2 3 4 5 6 7 8 9 Registration Number 102 103 106 108 113 115 Date of Registration 23.10.2000 23.10.2000 04.12.2000 22.01.2001 02.05.2001 03.08.2001 Name of the Company Royal Sundaram Alliance Insurance Co. Ltd. Reliance General Insurance Company Ltd. IFFCO Tokyo General Insurance Co. Ltd. Tata AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Co. Ltd. ICICI Lombard General Insurance Co. Ltd. Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation Ltd. HDFC-Chubb General Insurance Co. Ltd.

National & international partner companies:33

Indian Partner
Alpic finance Tata CK Birla group ICICI HDFC Kotak Mahindra Godrej Dabur Group MA Chidambaram Vysya Bank Ranbaxy Bombay Dyeing

International Partner

Allianz Holding Germany American Int. Group, US Zurich Insurance, Switzerland Prudential ,UK Standard Life UK Chubb, US J Rothschild, UK Liberty Mutual Fund, US Met Life ING Cigna, us General Accident, UK

Graph

showing claims given by various life insurance companies

Claims Given

Others 10% Birla Sun 7%

ICICI Pru 15%

Bajaj Allainz 13%

HDFC Standard 10% LIC 45%

This graph shows that highest claims are provided by LIC (45%). And lowest by Birla Sunlife (7%), others include Om Kotak, SBI Life and Tata AIG

Asset

Protection

From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the 34

underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer. GOAL BASED SAVING Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent tothe new life stage. Life insurance is the only investment option that offers specific products tailormade for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met.

35

The table below gives a general guide to the plans that are appropriate for different life stages.

Life Stage

Primary Need

Life Insuarance Product

Young & Single Young & Just married Married with kids

Asset creation Asset creation & protection

Wealth creation plans Wealth creation and mortgage protection plans

Children's education, Asset Education insurance, mortgage creation and protection protection & wealth creation plans Middle aged with grown up Planning for retirement & Retirement solutions & kids asset protection mortgage protection

Across all life-stages

Health plans

Health Insurance

LIFE INSURANCE AN EFFECTIVE TAX PLANING TOOLS

The following tax benefits are available with investment in life insurance plan. Section 80c Section 80c was introduced in finance bill 2005. Investment up to Rs 100,000 Under 80c qualify for deduction from gross total income. While availing the benefit of 80c there are no sectoral caps Assessee has freedom In selecting tax saving instrument entire eligible amount either can be invested in One instrument or spread over different eligible avenues Eligible avenues for section 80c. Payment of Life Insurance Premium Contribution to provident fund Repayment of principal amount on housing loan Investment in PPF (Up to Rs 70000) Investment in NSC Investment in ELSS 36

Investment in infrastructure bonds

Section 80ccc Deduction on Investment made towards pension schemes Investment in 80ccc and 80c control exceeds Rs 100000.

Section 80D Payment towards Medical Insurance Policies Deduction on Investment unto Rs 10000. Financial year. Deduction on investment unto Rs 15000 if payment is made towards medial

policy of a senior citizen Section 10(10D) Benefit received from a Life Insurance Policy are exampled from tax The Sum Assured must be at least 5 times of the premium contribution made For example; if the premium is Rs, 20,000, Sum assured must be at lest 11, 00,000.

TAX STRUCTURE
Net Taxable Income (Non Female-Non Senior Citizen Assesses_) 0-Rs.100 000 Rs.100001-150000 Rs. 150001-250000 Rs. 250001 Above Net Taxable Income (Female Assesses) 0-Rs. 135000 Rs. 135001-150000 Rs.150001-250000 Rs.250001 Above Net Taxable Income Senior citizen Assesses) 0-Rs.185000 _ Rs.185001-250000 Rs.250001 Above Tax Rate

Nil 10% 20% 30%

Surcharge: 10% surcharge if net taxable income is above RS. 10,00,000 Education cees: 2%

37

FOLLOW OF TAX COMPUTION

RECEIPTS

LESS EXIMPTED INCOME

Sec 10 (100) Receipts from An Insurance Policy.

GROSS TOTAL INCOME

Sec 80C and 8CCC Up to 1 Lac 80 D unto Rs .10, 000 and Rs 15,000 for Senior Citizen

LESS DEDUCTION

TOTAL INCOME

COMPUTE INCOME

ADD; SURCHARGE ON TAX

ADD; EDUCATION CESS ON (TAX + SURCHARGE)

FINAL TAX LIABILITY

38

COMPANY PROFILE OF HDFC STANDARD LIFE INSURANCE COMPANY LTD.

39

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

INTRODUCTION 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. Almost 90% of initial shareholding in the hands of domestic institutes and retail Besides the core business of mortgage HDFC has evolved into a financial

investors. Current 77% of shares held by foreign institutional investors. 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%. 40

SNAPSHOT- II Loan Approvals (up to Dec 2007) Loan Disbursements (up to Dec. 2007) Housing Units Financed Distribution Offices Outreach Programs 181 90 Rs. 805 billion. (US $ 18.30 bn.) Rs.669 billion (US $ 15.20 bn) 2.5 million.

Associate Companies:-

HDFC Limited

HDFC Bank

HDFC Mutual Fund

41

HDFC Sales

HDFC ERGO General Insurance

Other Companies:HDFC GRUH HDFC HDFC HDFC HDFC HDFC Credit

Trustee Company Ltd. Finance Ltd. Developers Ltd. Property Ventures Ltd. Ventures Trustee Company Ltd. Investments Ltd. Holdings Ltd. Information Bureau (India) Ltd

42

Bancassurance Partners:-

HDFC Bank

Saraswat Bank

Indian Bank

Bank Of Baroda

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. 43

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

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 19th century from kits original Edinburgh premises, opening offices in other towns and acquitting other similar businesses. Standard Life Currently has assets exceeding over 70 billion under its management and has the distinction of being accorded AAA rating consequently for the 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.

44

JOINT VENTURE

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 14th 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.

45

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 5th consecutive bonus in as many years for our with profit policyholders. 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.

46

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'.

Values .Integrity .Innovation .Customer centric .People Care One for all .Teamwork .Joy and Simplicity Awards & Accolades
2008

Sept, 2008 Received 2008 CIO Bold 100 and CIO Security Awards

47

HDFC Standard Life has received the 2008 CIO Bold 100 Award. This annual award Recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. This year's award theme, The Bold 100, recognized those executives and organizations that embraced great risk for the sake of great reward. HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO Security Award aimed at CIOs, whose pioneering implementations have taken their enterprise security to the next level. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure.

The company received the 2008 CIO Bold Award for its mobile workforce portal and the CIO

48

Security Award for its initiatives for a secure computing environment, including identity management.

49

March, 2008 Silver Abby at Goafest 2008 HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing craft category at the Goafest 2008 organized by the Advertising Agencies Association of India (AAAI). The radio commercial Pata nahin chala touched several changes in life in the blink of an eye through an old mans perspective. The objective was drive awareness and ask people to invest in a pension plan to live life to the fullest even after retirement, without compromising on ones self-respect

March, 2008 Unit Linked Savings Plan Tops Mint Best TV Ads Survey The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading private insurance companies in India, has topped Mints Top Television Advertisement survey conducted, for February 2008. HDFC Standard Lifes Unit Linked Savings Plan advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and

50

claim). The respondents were between 18 and 40 years. Mints exclusive report, New voices in a makeover outlines the survey in detail. February, 2008 Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations. January, 2008 Sar Utha Ke Jiyo Among Indias 60 Glorious Advertising Moments HDFC Standard Lifes advertising slogan honoured as one of 60 Glorious Advertising & Marketing Moments' over the last 60 years in India, by 4Ps Business and Marketing magazine. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then, followed by others including ICCI Prudential, thus giving HDFC Standard Life the credit of bringing up one such glorious advertising and marketing 51

moment in the last 60 years.

Mr. Aditya Puri

Mr. Aditya Puri holds a Bachelors degree in Commerce from Punjab University and is an associate member of the Institute of Chartered Accountants of India. Mr. Aditya Puri has been the Managing Director of the Bank since September 1994. He has about 36 years of banking experience in India and abroad. Prior to joining the Bank, Mr. Puri was the Chief Executive Officer of Citibank, Malaysia from 1992 to 1994. Mr. Puri holds 3,37,953 equity shares in the Bank as on March 31,2010 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.

52

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 53

responsible for overseeing all aspects of lending operations of HDFC Limited.

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.

54

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).

55

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 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

56

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.

57

UNIT LINKED INSURANCE PLANS (ULIP)

58

Unit Linked Insurance Plans Introduction :In Unit Linked Plans, the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs. Another factor that you need to consider is your future need for funds. HDFC Standard Life offers you a variety of unit-linked insurance products to suit your goals be it for your retirement planning, for your health, for your childs education and marriage or for investment purposes. Investor Class for which they are Most Suited For:Those

who wish to closely track their investments: Unit linked plans allow

policy takers to closely monitor their portfolios. They also offer the flexibility to switch your capital between funds with varying risk-return profiles.
Individuals

with a medium to long term investment horizon: Unit linked plans

are
Investors

across all life stages: This plan category offers a variety of plans which

can be opted for depending upon the life stage you are in and your needs and financial liabilities at that point in time. 59

ideal for individuals who are ready to stay invested for relatively long periods of time.
Those

with varying risk profiles: Across the seven funds offered, the equity

component varies from zero to a maximum of 100 per cent. Thus there is a choice of funds available to all types of investors - from risk-averse investor to those investors who have strong risk apetite. How Is It Structured? In a Unit Linked Plan, the premiums you pay are invested in the funds chosen by you after deducting allocation charges and charges including those for managing funds, policy administration and for providing insurance cover are deducted from the funds by cancelling certain units. The value of each unit of a fund is determined by dividing the total value of the funds investments by the total number of units. Advantages Of A Unit Linked Plan Market linked returns: Unit linked plans give you an opportunity to earn marketlinked returns as part of the premiums are invested in market linked funds which invest in different market instruments including debt instruments and equity in varying proportions.
Life

protection, Investment and Savings: Unit linked plans offer the twin benefits

of life insurance and savings at market-linked returns. Thus, you have the opportunity to invest your money to earn higher returns, while taking care of your protection needs. Investing in

60

unit linked plans helps to inculcate a regular habit of saving and investing, which is important for building wealth over the long term.
Flexibility: o o

Unit Linked Plans offer you a wide range of flexible options such as

The option to switch between investment funds to match your changing needs.

The facility to partially withdraw from your fund, subject to charges and conditions.
o

Single premium additions to enable the policy holder to invest additional sums of money (over and above the regular premium) as and when desired, subject to conditions. Servicing A Unit Linked Plan

Single

Premium: The policy holder is required to pay the entire premium amount

as a lump sum at the beginning of the policy term.

Regular

Premium Payment (annually, semi-annually or monthly): The policy

holder has to pay the pre-determined premium amount periodically i.e. annually, semi annually or monthly, depending upon the premium payment term opted for.
Number

of Premium Paying Years: This depends on the term of the policy that

you have chosen. In most cases, the policy term and the number of premium paying years (in case of regular premiums) are the same. However, some policies give the insured the option of choosing the number of premium paying years.

61

Charges The following charges are deducted from your policy towards the cost of benefits and administration services provided by HDFC Standard Life Insurance
Administration

charges: A fee is charged for administration of your policy every

month. Administration charges are deducted by cancelling units proportionately from each of the funds you have chosen.
Fund

management charges: These charges are towards meeting expenses related to managing the fund. This is charged as a percentage of the funds value and is deducted before arriving at the net asset value of the fund.
Switch

charges: You can switch between the funds available to suit your changing

needs and goals. In a policy year, a fixed number of such switches are available free of cost. Subsequent to this, each switch would attract a certain charge. These charges are deducted by cancelling units proportionately from each of the funds you have chosen.
Surrender

charges: These charges are levied for premature encashment of units.

They are charged as a percentage of the fund value and depend on the policy year in which the policy has been surrendered.
Mortality

Charges: Depending upon the age, and the amount of cover, these

charges are levied towards providing a death cover to the insured.

Premium

Allocation Charge: This charge is deducted as a fixed percentage of the

premium received, and is usually charged at a higher rate in the initial years of a policy. This 62

charge varies depending upon whether the policy is a single premium or regular premium policy, the size of the premium, premium frequency and payment mode.
Partial

Withdrawal Charges: Lump sum withdrawals are allowed from the fund

after the lapse of three years of the policy term and subject to pre-specified conditions. However, such withdrawals attract charges, as mentioned in the respective policy brochures. Switching Between Funds HDFC Standard Life Insurance offers you the flexibility to switch between funds available under a unit linked plan. You may wish to switch between equity and debt funds, in times when there is market volatility or interest rate fluctuations. At times, changes in your financial standing, liabilities or risk profile may also require that you change your investments accordingly. Making Withdrawals You may also make partial withdrawals from your funds after a certain specified period, subject to a partial withdrawal charge. The withdrawal amount should be at least the minimum prescribed withdrawal amount and the fund must not fall below the minimum fund value after the withdrawal. You can make a full withdrawal of your policy before its maturity date. However, surrender charges will be applicable in this case. Working of ULIPs:When you decide the amount of premium to be paid and the amount of life cover you 63

want from the ULIP, the insurer deducts some portion of the ULIP premium upfront. This portion is known as the Premium Allocation charge, and varies from product to product. The rest of the premium is invested in the fund or mixture of funds chosen by you. Mortality charges and ULIP administration charges are thereafter deducted on a periodic (mostly monthly) basis by cancellation of units, whereas the ULIP fund management charges are adjusted from NAV on a daily basis. Since the fund of your choice has an underlying investment either in equity or debt or a combination of the two your fund value will reflect the performance of the underlying asset classes. At the time of maturity of your plan, you are entitled to receive the fund value as at the time of maturity. The pie-chart below illustrates the split of ULIP premium:

64

Types of ULIPs

One of the big advantages that a ULIP offers is that whatever be your financial objective, gives a general guide to stages.

chances are that there is a ULIP which is just right for you. The figur

the different goals that people have at various age-grous and thus, vari

65

Depending on your specific life-stage and the corresponding goal, ther a ULIP which can help you plan for it.

When ULIP work best? Get the most out of your ULIP Whether you are in the process of deciding which ULIP to invest in; important financial goals there are some key

whether you already have a unit linked insurance policy to secure yo

principles which should govern any decision related to ULIP

Adhering to these key principles will allow you to make optimum utilizatio of your ULIP.

Appropriate Right Long Know Know

Life Cover

Fund Option Term Investment the Charges

the Features

Points to be considered before switching by a prudent Investor: 66

1. Your Long Term goals Give a thought to your long term goals. Will switching at this point mean deviating from your long term financial planning or will it bring in large benefits. 2. .Your Asset allocation what does your asset allocation say? What component of it constitutes of ris and safety instruments. Decide how much you need to divert towards equity 3. .Your Risk apetite How much risk can you take? What is your appetite? If you are not market savvy youd rather switch and book at least part profits now 4. Your Age

If you are young you do not need to really worry about timing the market your ULIPs will continue to earn. But if you are around 40-45 years or your policy is going to mature in the next few years may be you should consider swithing to make the most of what ever you have earned. Your decision to switch should be based on the time left to maturity. 5) Urgent Need for money Besides if you have any pressing need for which you have bought the ULIP you could consider before the policy matures - takes a part of it.

Why Buy ULIP ? The ULIP edge 67

ULIPs are dynamic plans and are flexible by nature and hence allow for changes and high degree of Customization in the plan as opposed to most of the financial plans which once purchased cannot be modified. It is because of embedded characteristics of transparency, flexibility, liquidity & goal based savings that ULIPs have emerged as preferred investment option today. The following subsections will not only help you to understand various attributes of ULIPs but also guide you to use these features to manage your policy.
Flexibility Transparency

Goal Based Savings Tax Benefits

REASONS FOR POPULARITY OF ULIP 1. ULIPs offer a twin benefit: ULIPs serve the purpose of providing life insurance combined with savings at market-linked returns. This is more beneficial to the investor as compared to his investment in a mutual fund which does not offer a life cover. Moreover, they offer transparent disclosure, monthly portfolios and daily NAVs (net asset values). 2. ULIPs have multiple investment options: The individuals have an option of investing based on his market analysis and his risk profile. Generally there are three categories of ULIPs. 68

 Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in debt) Balanced ULIPs (can typically invest around 40%-60% in equities) Conservative ULIPs (can typically invest up to 20% in equities) 3. ULIPS are Flexible: The individuals are allowed to switch between the ULIP variants outlined above to capitalize on investment opportunities across the equity and debt markets. Free switches are an important feature that allows the informed individual/investor to benefit from the vagaries of stock/debt markets. For instance, when stock markets were on the brink of 7,000 points (Sensex), the prudent investor would prefer to shift his assets from an Aggressive ULIP to a low-risk Conservative ULIP. As generally advocated by the mutual fund industry, ULIPs also facilitate SIP to the investors. With an SIP, individuals invest their funds regularly over time intervals of a month/quarter and don't have to worry about `timing' the stock markets. An added benefit with ULIPs is that individuals can also invest a one-time amount in the ULIP either to benefit from opportunities in the stock markets or if they have an investible surplus in a particular year that they wish to put aside for future. The popularity of ULIPs may have helped in bringing down charges and raising allocations. As markets grow and get more complex, players get more competitive and margins get squeezed, but then its something that has helped. However, some other companies arent that open to admitting that the popularity of ULIPs has affected their strategies. The growing popularity and affordability of ULIPs seems to be giving other investment options like MFs a run for their money. SWOT Analysis of ULIP as a Product: STRENGTHS: Investment plus Insurance High Returns 69

Transparent Flexibility OPPORTUNITIES: Large Untapped Market Products for every age group and income level Benefits of both an investment and insurance product. WEAKNESSES Lack of Awareness. High administrative charges High mortality charges. High fixed annual charges. THREATS Presence of very strong competitors. Aggressive marketing by competitors. Not considered reliable. People prefer to invest in Mutual funds and Fixed Deposits..

Fund Philosophy LIQUID FUNDS

70

To generate reasonable returns commensurate with low risk and high degree of liquidity.This fund will primarily invest in portfolio constituted of money market and a high quality debt securities. DEBT FUNDS To earn regular income by investing in high quality debt securities this fund will primarily invest in a portfolio of high quality bonds and other fixed and floating rate securities issued by the government, government agencies and corporate issuers.To maintain liquidity the fund will invest in cash and money market instruments.

BALANCED FUNDS To generate capital appreciation and current income, through a judicious mix of investments in equities and fixed income securities.This fund will invest in listed equities and high quality fixed income securities, and money market instruments.The fund intends to adopt a relatively balanced approach towards bonds and equities exposure with the objective of achieving capital appreciation with minimal short term performance volatility. GROWTH FUND To achieve capital appreciation by investing predominantly in equities,with limited investments in fixed income securities.This fund will invest in listed equities and high quality fixed income and money market securities.The fund intends to adopt a relatively aggressive approach towards bonds and equities with the objective of achieving capital appreciation. EQUITY FUND To generate long term capital appreciation from active management of a portfolio invested in diversified equities.The diversified equity fund is a long term growth 71

fund.The funds primary objective is to have high capital appreciation through investment in equities to maintain the liquidity the fund will invest in cash and money market instruements

FUND NAMES EQUITY FUND MIN. MAX EQUITY DEBT SECURITIES MONEY MARKET RISK PROFILE

GROWTH FUND MIN. MAX. 90% 50% 40%

BALANCED FUND MIN. 30% 30% 0% MAX. 70% 70% 40%

DEBT FUND MIN. MAX. -

LIQUID FUND MIN. MAX. 0% 60%

60% 100% 50% 0% 40% 10% 0%

60% 100% 0% 40%

40% 100% LOW

HIGH

MEDIUM TO MEDIUM HIGH

LOW TO MEDIUM

ULIP PLANS OFFERED BY HDFC STANDARD LIFE

UNIT LINKED PENSION II :-

Product brief: An outstanding investment opportunity providing a choice of researched & selected investment ,offer flexibility to choose retirement date and offer financial independence even after retirement. Type of product: Regular prem. Unit linked during the defferment period & immediate annuity provide from vesting date.Limited underwriting plan. UNIT LINKED PENSION MAXIMISER II :-

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Product brief:An outstanding investment opportunity providing a choice of researched & selected investment,offer flexibility to choose retirement date and offer financial independence even after retirement. Type of product: Single prem. Unit linked during the defferment period & immediate annuity provide from vesting date.Limited underwriting plan UNIT LINKED ENDOWMENT II :-

Product brief: Valuable Plan for protection and excellaent investment for the Creation of Wealth e.g. for buying a new House or for creating assette for yoursilf Type of product: Regular prem Unit linked plan. ( Normal underwriting plan.) UNIT LINKED ENDOWMENT PLUS II :-

buying a new House or for creating assets for yourself. Additional regular loyalty unit benefit to Product brief: Valuable Plan for protection and investment for the Creation of Wealth e.g. for boost up fund value every year Type of product: Regular prem Unit linked plan. (Normal underwriting plan.) UNIT LINKED YOUNG STAR II :-

Product brief: Valuable protection to your child's future in case one is not around, additional benefit option as critical illness cover and flexible double & triple benefit options. Type of product: Regular prem Unit linked plan. ( Normal underwriting plan.) UNIT LINKED YOUNG STAR PLUS II :73

Product brief: Valuable protection plan for your family in case one is not around with the benefit of increasing S.A. every year as one's liability also increases year after year & also buying capacity of money decreases due to the inflation year after year. Type of product: Regular prem Unit linked plan. ( Normal underwriting plan.)

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WEALTH MAXIMESER PLUS :-

Product brief: Valuable Plan for protection and excellent investment for the Creation of Wealth e.g.for buying a new House or for creating assette for yoursilf Type of product: Single Prem Unit Linked Plan.Limited and Normal underwriting plan NEW SIMPLI LIFE

Product brief: An excellent investment opportunity with protection to one's family. No need to go for medicals

Type of product: Regular prem Unit linked plan with Limited underwriting Product brief: Valuable protection to your child's future in case one is not around, additional benefit option as critical illness cover and flexible double & triple benefit options. Additional regular loyality unit benefit to boost up fund value every year. Type of product: Regular prem Unit linked plan. ( Normal underwriting plan.)

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COMPARISON

BETWEEN

CONVENTIONAL & ULIP PLANS

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ANALYSIS & INTERPRETATION

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Table 1:Customer perception about ULIP:Long term investment Short term investment Chart 1:30 70

30% Long term investment Short term investment 70%

It is clear from the chart that 30% customers see ULIP as a long term investment and 70% customer see ULIP as a short term investment.

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Table 2:In the current market crisis customer prefers to Liquidate equity holdings Increase holdings in debt mkt Increase holdings in equity mkt Chart 2:10 60 30

10% 30% Liquidate equity holdings Increase holdings in debt mkt Increase holdings in equity mkt 60%

In the current market crisis most of the customers prefers to increase their holdings in debt market & only 30% customers prefer to increase their holdings in equity market & 10% customers prefer to liquidate their equity holdings.

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Table 3 :Risk involvement in ULIP Products in current Market Crisis:Very high High Very low Low 1 5 6 0 5 2 0

Chart 3 :-

20%

15%

Very high 5% High Very low Low

60%

60% customers consider ULIP as a high risk investment product in the current market situation whereas only 20% consider it as a low risk investment product. Therefore only those customers who are ready to take more risk are interested in purchasing ULIP in the current market situation.

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Table 4 :Customer preference in Asset allocation in current market situation:FD Govt secu Debt Growth fund Conventional plan Others Chart 4:7 5 30 28 25 5

5% 25%

7%

5% FD Govt secu Debt 30% Growth fund Conventional plan Others

28%

In the current market situation customers are giving preference to debt funds in comparison to growth funds.

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Table 5 :One year back customers preference in asset allocation:FD Govt. secu Debt Growth fund Conventional plan Others Chart 5 :5 5 25 50 10 5

10%

5% 5% 5% FD Govt secu 25% Debt Growth fund Conventional plan Others

50%

One year back when market condition was good most of the customers are giving priority to growth funds in comparison to debt funds.

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Table 6 :According to customer Is It right time to invest in ULIP:Yes No Can't say Chart 6 :30 50 20

20% 30% Yes No Can't say

50%

Most of the customers do not consider it as the right time to invest in ULIP plan .

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Table 7:Reasons for investment in ULIP in current market situation:Long term financial planning Protection and Investment Tax rebate Pure investment Chart 7:-

10 20 30 50

10% 20% 50%

Long term financial planning Protection and Investment Tax rebate Pure investment

30%

In current market situation most of the customers are purchasing ULIP for investment and tax rebate purpose.

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Table 8:customer afraid from fund value in ULIP till today:Yes No Chart 8:98 2

2%

Yes No

98%

Almost all customers are afraid from their fund value in ULIP due to current Market situation.

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FACTS AND FINDINGS

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FACTS AND FINDINGS

The important facts which we could conclude from our data regarding the buying behavior of individuals are that people give maximum importance to the tax benefit that they receive after investing in the unit linked insurance plan .Further the next most attractive benefit that people look forward to most as per our sample is that of income growth .Infact most of the unmarried chunk of our population who has no liabilities like child education or marriage goes in for a ULIP product just to multiply the money in a couple of years. Other benefits are important as well but these two take away most of the attention. Regarding the acceptance of ULIP as a product over other investments it is analyzed that though a lot of our sample population was aware about it and had invested in it but still a lot of them (including Females) wanted to invest in it but were confused regarding other options like mutual funds. So a lack of public awareness was encountered. Another important finding was that time horizon was one of the factors of concern while investing in ULIP and as per the analysis of the questionnaire we found that a large proportion of our sample was convenient with the time period of 11-20 years and then others were in favor of a period not beyond 10years. This implies that very less number of people were comfortable with 90

long time horizons i.e. above 20 years. Another very interesting finding from our data is that when we talk about risk as an investment criterion then people of age above 35 prefers to take less risk and they are satisfied with limited (fixed) return. Therefore they give priority to conventional plans as they want safety of their invested amount.On the other hand the customers businessmen by occupation and specifically from age group 21- 30 would favor both moderate risk and moderate gain or rather go for a high risk and high gain strategy. This result came completely in line with our expectations. Talking of its the market share of the leading players it was found that LIC rules when it comes to an age group of 50 plus due to the credibility and trust it has gained in all past years. Where the other age groups prefer to explore the leading private players . Our analysis shows that though the product has been able to cater to a number of benefits but still a lot of brand awareness is lacking and LIC is posing the biggest threat followed by SBI life to the private players.

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SWOT ANALYSIS

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SWOT ANALYSIS STRENGHTS Financial Expertise 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. Range of Solutions It have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. Track Record So Far Preferred and Trusted Brand It sets a new standard in the Indian life insurance communication space. It was 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, it is one of the few brands that customers recognize, like and prefer to do business. Moreover, its brand thought, Sar Utha Ke Jiyo, is the most recalled campaign in its category. Investment Philosophy It 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.

Need-Based Selling Approach 93

Its 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 company has set for itself. Besides the mandatory training that Financial Consultants have to undergo prior to being licensed, HDFC standard life has 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 maximization of stake holders value. Transparent Dealing It is one of the few companies whose product details, pricing, clauses are clearly communicated to help customers take the right decision. 94

WEAKNESS

Most of the Life insurance products provided by HDFC standard life demands for high premium. Thats why they are beyond the reach of common people. Though some low premium products are available but company does not emphasis on their marketing. Their main focus is on the marketing of high premium products.

Allocation charges are more in the products of HDFC standard life as compared to other companies.

OPPORTUNITIES

It have a good reputation, the goodwill can be cashed upon with the growing economy of India. Peoples dissatisfaction toward nationalized banks in terms of services has turned out to be blessing for the private banks. HDFC with its brand image can be benefited to a large extent by this opportunity.

Rapid growth of Jaipur city is the another prime opportunity and moreover new industry in and around has sprung up. Superior segment demarcation and co-ordination will be beneficial.

THREATS:

All the public sector banks have started to redefine their services in order to attract customers attention. Stringent norms by reserve bank of India at any time in near future can be threat to banks as their activities could be adversely affected. The entry of other foreign banks can take away some of the business. The presence of other private sector banks and foreign banks in Jaipur and because of intense competition they are coming with the better products and services.

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CONCLUSION

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CONCLUSION

HDFC standard life insurance is first life insurance company in India. It has businesses spread out across the globe. It was registered on 23rd 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. Individuals below the age of 30 (mostly male) were interested in investment plans. This was a general conclusion drawn during prospecting clients.

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SUGGESTIONS & RECOMMENDATIONS

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SUGGESTIONS AND RECOMMENDATIONS

Firstly I want to suggest company should more emphasis on selling of conventional plans in recession and also try to give more bonuses as compare to other insurance companies

I want to suggest company should more emphasis on training of front line sales people about equity market I could observe that the general level of awareness among the people regarding HDFC brand is low, therefore the brand should focus on advertising both at the central as well as local level. .

We know that in this world of intense competition everyone is trying to prove itself best in its respective field therefore we can conclude that there is always an edge of improvement and hence the brand should work on that. Establish and coordinate business relation with big corporate houses across the country . HDFC can improve upon its efficiency by not changing its staff frequently. By doing this can continue to create, maintain and grow strong relationship with its existing customers. Idea behind this is that staff which is already working for bank is well acquinted with the nature and wants of the existing customers.

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 99

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

APPENDIX

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Questionnaire
Objective: To find out the effect of recession , volatile market on unit linked product of insurance company. Q. 1 How you treat unit linked product. o Long term investment o Short term investmen Q.2 In the current market crisis,you prefers to: o Liquidate their equity holdings o Increase their holdings in the debt market o Increase their holdings in equity as companies with strong fundamentals are available at attractive prices. Q.3 Do you think the equity market downfall is here to stay for long; where it would be in next 6 months? o Increase 10 % o Increase 10-20 % o Increase 30 % or above o Decrease more, if yes then please specify Q. 4 What according to you , risk is involve to investment in unit linked product in current market crisis. o Very high o High o Very low o low Q. 5 keeping in mind the current market condition, inflation rate and government policies, what investment avenues do you prefer to invest. Type FDs Gov t.se cu Asset Allocation Debt. Growth fund Convention al plan Other

Percenta ge If other, then please specify..

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Q.6 Considering the market situation just 1 year back, what investment funs did you prefer to investment. Type Percenta ge If other, then please specify.. Q.7 What according to you, Is it right time to invest in unit linked product. o Yes o No o Cant say Please specify your answer with any two reasons: 1. 2. Q.8 If you want to investment in unit linked product in current market then why? Ans: o Longterm financial planning o Protection and Investment o Tax rebate o Pure investment FDs Asset Allocation Gov Debt. Equity t.se cu Conventionla l plan Other

Q.9Are you afraid from fund value of your investment in ULIP till today. o YES o NO

Name: Occupation

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Bibliography

WEB SITES:www.hdfcslic.com www.irdaindia.com www.Google.com www.Wikipedia.org www.Managementparadise.com

BOOKS:Literature provided by the bank Research methodology methods and techniques ( C.R Kothari)

Kotler Philip, Marketing Management