A Research Project ON: "Comparative Study of HDFC Standard Life Insurance Co. With Icici & Lic."

A
RESEARCH PROJECT
ON
“COMPARATIVE STUDY OF HDFC STANDARD

LIFE INSURANCE CO. WITH ICICI & LIC.”
UNDER THE GUIDANCE OF:

Mr. Himanshu Sharma
(Sr Channel Development Manager)
SUBMITED BY:
Pawan Nagar
MBA-IIND Sem.
Ansal Institute of Technology

GURGAON
ACKNOWLEDGEMENT
A good Dissertation requires sound knowledge of the subject concerned and to make proper use
of the knowledge one has to be assisted under proper guidance.
I am really indebted to my mentor Mr. Himanshu sharma who imparted the right frame of mind
and helped whenever in need.
A large number of individuals have contributed to this project. I am thankful to all fo them for
their help and encouragement. It was an unforgettable experience, which provided me an
opportunity to gain various management skills during the peripod.
Exchange of ideas generate a new object to working a better way. Apart from the ability, labour
and time devotion, guidance and cooperation are the two pillars for the success of the project,
whenever a person is helped or cooperated by others his heart is bound to pay gratitude to them.
I am extremely grateful and obliged to the organization, HDFC Standard Life Insurance Co. Ltd
(Sec-14, Gurgaon) for providing information, there by making and completion of the project.
Pawan Nagar
MBA- II Sem.
SYNOPSIS
DISSERTATION TOPIC
“Comparative analysis of HDFC Standard Life Insurance Co. with LIC & ICICI Pro.Life”
OBJECTIVE OF THE RESEARCH
The objective of the research is divided into two folds:
1) To analyse the changing scenario of HDFC Standard Life Insurance Company and do the
comparative analysis with ICICI Prudential and LIC of India.
2) To devise the marketing strategies of HDFC so as to further increase its market share.
RESEARCH METHODOLOGY
The methodology that is being adopted is basically a descriptive research as it is based on the
secondary data.
DATA COLLECTION
Secondary data is being collected from magazines, newspaper, book and Internet.
TABLE OF CONTENT
CHAPTER-1
SYNOPSIS
CHAPTER-2
INTRODUCTION
 Meaning of insurance
 Needs of insurance
 Insurance at various life stages
 Benefits of insurance
 Various policies of Life Insurance
CHAPTER-3
OBJECTIVE OF RESEARCH
CHAPTER-4
RESEARCH METHODOLOGY
CHAPTER-5
CHANGING SCENARIO OF LIFE INSURANCE
 Features and changes in life insurance
 Distribution scenario in Indian market
 Penetration of Insurance in various countries
CHAPTER-6
EMERGENCE OF PRIVATE LIFE INSURANCE IN INDIA
 Emergence of private life insurance in India
 Various private life insurance companies
 Market share of various life insurance companies
CHAPTER-7
COMPANY PROFILE
• HDFC Standard life
• ICICI Prudential
• LIC
CHAPTER-8
COMPARATIVE ANALYSIS (By Using Graphs)
CHAPTER-9
SWOT ANALYSIS
CHAPTER-10
INTERPRETATION
CHAPTER-11
MARKETING STRATEGY OF HDFC Standard Life
CHAPTER-12
CONCLUSION
CHAPTER-13
ASSUMPTIONS
CHAPTER-14
BIBLIOGRAHY
MEANING OF INSURANCE
Insurance is a tool by which fatalities of a small number are compensated out of funds collected
from plenteous.
Life insurance is a contract providing for the payment of money to the person assured or failing
him to the person entitled ton receive the same on the happening of certain event.
Uncertainty of death is inherited in human life. It is this rise, which gives rise to the necessity for
some form of protection against the financial loss arising from the death.
It is basically a safeguard against uncertainties. Insurance essentially is an arrangement where the

losses experienced by a few are extended over several who are exposed to similar risks.
For example- Suppose 1500 persons in a village aged 60 of which 15 are expected to die, and the
economic value of the loss is Rs. 50,000, then the total loss will be 7,50,000. If each contributes
Rs. 500 a year the common fund would be 1500 persons share 7,50,000 that is enough to pay and
the risk in cases of 15 persons.
From the business point of view, Insurance is divided into:

Life Insurance
General Insurance
The Dissertation is mainly concerned with the Life Insurance only.
According to the U.S. Life Office Association Inc. (LOMA), Life Insurance is defined as
follows: “Life Insurance provides a sum of money if the person who is insured dies whilst the
policy is in effect”.
Life Insurance Corporation of India is the oldest life insurance company having a market share
of around 74% at present.
But, with the passing of the IRDA Act 1999, the insurance sector is opened up, and private Life
Insurance companies were allowed to enter in the market.
It is relevant to mention that though LIC is the market leader at present but its market share is
increasing with a diminishing rate as compared to private Life Insurance Companies who have
captured around 26% of the market share in just a short span of five years. So, it is necessary
that LIC should look up with the changing scenario of needs of customers and formulate the
policies accordingly.
NEED FOR LIFE INSURANCE
The need for life insurance comes from the need to safeguard our family. If you care for your
family’s needs you will definitely consider insurance. Today insurance has become even more
important due to the disintegration of the prevalent joint family system, a system in which a
number of generations co-existed in harmony, a system in which a sense of financial security
was always there as there were more earning members. Times have changed and the nuclear
family has emerged. Therefore you need to save a part of income for the future too.
This is where insurance helps us.
Factors such as fewer numbers of earning members, stress, pollution, increased competition,
higher ambitions etc are some of the reasons why insurance has gained importance and where
insurance plays a successful role.
Insurance provides a sense of security to the income earner as also to the family. Buying
insurance frees the individual from unnecessary financial burden that can otherwise make him
spend sleepless nights. The individual has a sense of consolation that he has something to fall
back on.
From the very beginning of your life, to your retirement age insurance can take care of all your
needs. Your child needs good education to mould him into a good citizen. After his schooling he
need to go for higher studies, to gain a professional edge over the others - a necessity in this age
where cutthroat competition is the rule. His career needs have to be fulfilled.
Insurance is a must also because of the uncertain future adversities of life. Accidents, illnesses,
disability etc are facts of life, which can be extremely devastating. Disability can be taken care of
by insurance. Your family will not have to go through the grind due to your present inability.
Moreover, retirement, an age when every individual has almost fulfilled his responsibilities and
looks forward to relaxing can be painful if not planned properly. Have we considered the
increasing inflation and taxes? Will our investment offer us attractive returns under such
circumstances? Will it take care of our family after us? An insurance policy will definitely take
care of these and a lot more. Insurance has become a necessity today. It provides timely financial
as also rewards with bonuses. Life Insurance has come a long way from the earlier days when it
was originally conceived as a risk-covering medium for short periods of time, covering
temporary risk situations, such as sea voyages.
Therefore after going through the discussion let us summarize our points and understand the
need of life insurance:
a) Temporary needs / threats
The original purpose of life insurance remains an important element, namely providing for
replacement of income on death etc.
b) Regular Savings / Family Protection
Providing for one's family and oneself, as a medium to long-term exercise (through a series of
regular payment of premiums). This has become more relevant in recent times as people seek
financial independence for their family.
c) Investment
Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike
regular saving products, investment products are traditionally lump sum investments, where the
individual makes a one off payment.
d) Old age provision
Provision for later years becomes increasingly necessary, especially in a changing cultural and
social environment. One can buy a suitable insurance policy, which will provide periodical
payments in one's old age.
e) Children benefit
Provision for the education, marriage and start in life for the children.
f) Special needs provision
Protection against loss arising out of accident, disability, sickness, loan repayment on death.
WHY IS INSURANCE SUPERIOR TO OTHER FORM OF SAVINGS?
 An immediate estate is created in favor of the policyholder.
 Protection in case of death.
 Liquidity in case of need – easy loans are available.
 Tax relief – income tax, wealth tax etc..
 Policies can be offered as collateral security.
 Policies can be taken under M.W.P. Act 1874, to protect against creditors.
Let us take an example to understand the need for insurance:
Mr. Atul is 45 and self-employed. His wife Nandini, who is a housewife, looks after their two
children aged 3 and 7 years. They stay in a rented accommodation, where the rent is 15,000
rupees per month. Mr. Atul has taken up a loan of Rs. 2 lakh. His monthly earnings on average
are 40,000 rupees. Mr. Atul passes away in an unfortunate road accident. What are some of the
financial implications of his death on his family?
There may be several financial implications on his family. Some of these are:
a) The monthly income, previously provided by Mr. Atul would stop.
b) His wife and children may have to seek financial assistance from other relatives.
c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.
d) The family may have to move into a cheaper accommodation.
e) His widow may have to take up work to earn money.
f) The education of his children may suffer.
This simple example illustrates the impact premature death can have on a family, where the main
earner has no life cover.
Had Mr. Atul taken life cover, his family would not have faced such hardships in the event of his
unfortunate death. A simple life insurance policy could have provided Mr. Atul's family with a
lump sum that could have been invested to provide an income equal to all or part of his income.
In simple words, insurance protects against untimely losses. Insurance has been found useful in
the lives of persons both in the short term and long term. Short term needs like sudden medical
costs and long-term needs like marriage expenses etc can be met with using life insurance.
LIFE INSURANCE NEEDS AT VARIOUS LIFE STAGES
The need for life insurance changes as one’s life changes. When one is young, one typically has
no need for life insurance, but this changes as one take on more responsibility, and as ones
family grows. Then, as responsibilities once again begin to diminish, one need for life insurance
drops off. Let's look at how life insurance needs change throughout ones lifetime.
School days
Childhood is typically a time of no worries, no cares, and no responsibilities. A child depends on

others to take care of them, not the other way around. Although it would be tragic, a child's death
would likely have little financial impact on the child's family. Thus, there is generally no need
for life insurance at this point in an individual's life.
A child's death does create one short-term financial problem: funeral expenses. But buying a life
insurance policy just for that purpose doesn't really make sense. Instead, think about saving the
money one would spend on insurance premiums and open a savings account, or put the money in
some type of investment vehicle. That way, the money can be used for college expenses or a first
home, but it will also be available in case of a tragedy. Alternatively, a burial policy provides
enough money for funeral expenses, at a much lower cost than a typical life insurance policy.
For growing family
When one has young children, the life insurance needs reach a climax. In most situations, life
insurance for both parents is appropriate.
Single-income families are completely dependent on the income of the breadwinner. If he or she
dies without life insurance, the consequences could be disastrous. The death of the stay-at-home
spouse would necessitate costly daycare expenses. Both spouses should carry enough life
insurance to cover the expenses that would result from their death.
Dual-income families need life insurance, too. If one spouse dies, it is unlikely that the surviving
spouse will be able to keep up with the household expenses and pay for childcare with the
remaining income.
Moving up the ladder
For many people, career advancement means starting a new job with a new company. At some
point, one might even decide to be ones own boss and start his own business. It might not be the
top priority, but it is important to review the life insurance coverage any time one leave an
employer.
Keep in mind; one probably won't be able to keep any life insurance that was provided by ones
employer. If one is going to work for a new company, one might receive a comparable life
insurance benefit. But if one is going into business for him, one will need to purchase an
individual life insurance policy.
Make sure the amount of ones coverage is up-to-date, as well. The policy one purchased right
after getting married might not be adequate anymore, especially if one has kids, a mortgage, and
college expenses to consider. Business owners may also have business debt to consider. If one is
not incorporated, ones family would have to pay those bills if one die.
Single again
Unfortunately, divorce has become a fact of life in our society. One will have to make many
financial decisions during this stressful time, including the decision of what to do about ones life
insurance. Divorce raises both beneficiary issues and coverage issues. And if one has children,
these issues become even more complex.
If one and his spouse have no children, it may be as simple as changing the beneficiary on ones
policy and adjusting ones coverage to reflect ones newly single status. However, if one has kids,
one will want to make sure that they are provided for in the event of ones death. This may
involve purchasing a new policy and naming them as beneficiaries. The custodial and
noncustodial parent will need to work out the details of this complicated situation. If one can't
come to terms, the court may make the decisions for you.
The golden years
Once the children are grown, the life insurance needs decrease. One will live off his retirement
savings, and hopefully one has accumulated assets that can be passed on to his heirs when he or
she dies. Not only is life insurance expensive at this point, but it's probably unnecessary.
Life Insurance is a contract for payment of a sum of money to the person assured (or failing
him/her, to the person entitled to receive the same) on the happening of the event insured against.
Usually the contract provides for the payment of an amount on the date of maturity or at
specified dates at periodic intervals or at unfortunate death, if it occurs earlier. Among other
things, the contract also provides for the payment of premium periodically to the Corporation by
the assured. Life insurance is universally acknowledged to be an institution which eliminates
'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the
unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial
solution to the problems caused by death. Life insurance, in short, is concerned with two hazards
that stand across the life-path of every person: that of dying prematurely leaving a dependent
family to fend for itself and that of living to old age without visible means of support.
Distribution Scenario in the Indian market
In today's Indian insurance market, the challenge to insurers and intermediaries is two-pronged:
• Building faith about the company in the mind of the client
• Intermediaries being able to build personal credibility with the clients
Traditionally tied agents have been the primary channels for insurance distribution in the Indian
market; the public sector insurance companies have their branches in almost all parts of the
country and have attracted local people to become their agents. The agents are from various
segments in society and collectively cover the entire spectrum of society. A person who has lived
in the locality for many years sells the products of the insurance company with a local branch
nearby. This ensures the last mile touch point being closer to the customer. Of course, the profile
of the people who acted as agents suggests they may not have been sufficiently knowledgeable
about the different products offered, and may not have sold the best possible product to the
client. Nonetheless, the customer trusted the agent and company. This arrangement worked
adequately in the absence of competition.
In today's scenario agents continue as the prime channel for insurance distribution in India, as is
the case in most markets, supported by call centers to a small extent. Almost all the new players
follow this model primarily because the regulations for other channels are yet to be put in place.
However there is great excitement in the industry over the impending broker regulations, and
companies are planning possible channels in their enthusiasm to increase volumes. The belief
that all these channels will grow and seamlessly integrate to bring in business seems a fallacy.
What has emerged is a much more difficult and evolving market scene with existing players,
more new players coming in, and global marketing practices and ideas being tested. But none of
this has changed the fundamental character of the market, which we believe will take more time
than expected.
Public Sector Companies Private Sector Companies
Identity is well established, but the Have to build their identity in a market
where the public does not distinguish
perception of " poor service providers" them.
is a stigma.
Products are not attractive and flexible Remove the perception that anything
that looks good is expensive
enough but expensive.
To retain their creamy layer clientele Work against the people's mindset that
they are not here for the long term
who are the most likely to be wooed by
the new companies
Retain and attract good intermediaries Attract intermediaries especially agents

with the requisite qualifications and
attributes who can market the company
and the product.
Match the aura created by the new Run the risk of tapping an already
insured market for repeat insurance
companies in the urban market instead of tapping new virgin pockets
in the market
In this process all are targeting the same market --the existing pie is being cut up further, but no
attempt is being made to increase the size of the pie. For example, while attempts are made to
complete the quota of rural insurance in percentage terms, the rural market potential is yet to be
tapped, as the new insurers are not able to attract the right kind of talent into their distribution
force to address this. Intelligent segmentation of distribution channels to match the market
segmentation is what will help the companies to move in this direction.
Focus on multiple distribution channels
Though a multi-channel strategy is better suited for the Indian market as well, it is important to
keep in mind that this market is really a conglomeration of multiple markets. Each of the markets
within this conglomeration requires a different approach. Apart from geographical spread the
socio-cultural and economic segmentation of the market is very wide, exhibiting different traits
and needs. Let us look at the various insurance distribution channels and the challenges faced by
them from these perspectives.
Agents
Today's insurance agent has to know which product will appeal to the customer, and also know
his competitor's products in the same space to be an effective salesman who can sell his
company, the product, and himself to the customer. To the average customer, every new
company is the same. Perceptions about the public sector companies are also cemented in his
mind.
The new companies are looking for educated, aware individuals with marketing flair, an elite
group who can be attracted only with high remuneration and the lure of a fashionable job, all of
which may not be possible in this business with its price pressures and the complexity of selling
insurance. Unable to attract this segment, they have started easing recruitment conditions as
against the stringent norms they had earlier, thereby diluting the process.
While the public sector companies are able to attract agents, they continue to suffer from high
attrition rates due to indiscriminate agent appointment. The most successful of these companies'
tied agents are hardly of the elite variety of salesman. They are still the neighborhood do gooders
-- the postman, the schoolteacher, and the shopkeeper -- who know the people and are
themselves known in the community. The challenge here is the lack of knowledge of the
competitive market and the inability to do intelligent comparisons with the competitor's products.
Educating and training these agents is a serious challenge for the insurance company.
The relevance of this kind of agent continues even today as agents are sought or contacted by
families by word of mouth. Insurance companies are advised not to follow the path of
FMCG's/credit card companies, believing that a suited and booted customer care consultant or
financial consultant will necessarily appeal to the average Indian customer.
Another social feature in the market is the considerable respect for age in Indian society and a
belief that an older person knows better. A very young up-market agent who is a typical
salesman may not appeal to a large segment of the middle class, which is looking for a solid
trustworthy person from whom they can buy insurance.
In this context it might be a rewarding exercise to recruit some older people (who have taken
VRS from banks and other financial institutions) to sell some lines of products like pension
plans, annuities etc.
Gender of agents is another relevant feature in the rural context that makes a difference,
especially for the female population. Women to whom the customers can relate --e.g., nurses,
gram sevikas -- can target the female segment of the population more effectively. What is
applicable for the rural women and children health programs and population control programs is
equally applicable for insurance selling also. Max New York Life has adopted a version of this
strategy by appointing gram sahayaks to sell and service the rural customers.
With this kind of segmentation of intermediaries the challenge for the insurance company lies in
training and educating these people to become effective sales persons. But this in no way
diminishes the benefits of intermediary segmentation.
ICICI Prudential Insurance and HDFC Standard Life Insurance have already partnered with
NGOs to sell some low cost insurance in rural areas. However, the challenge lies in establishing
regulations that protect the customer and attract the right players into the brokerage market rather
than creating another middlemen segment eroding the premium.
Internet
Though India is joining the fast growing breed of net users, using net for transactions has not yet
caught up. Though a few banks provide online banking, the usage is still a small fragment. The
insecurity associated with transactions over the net is still an inhibiting factor. At present most of
the insurance companies have product information and/or illustrative tools on the web.
We do not see the web evolving into a means for direct selling of insurance in the current
scenario. In the Indian market, where insurance is sold after considerable persuasion even after
face-to-face selling, the selling over the net, which must be initiated by the client, would take
some more time.
While the technology capability is there, improvements in bandwidth and infrastructure are
needed. Also needed are simpler products where auto-underwriting is feasible. Automobile
insurance, one of the segments of insurance purchased "off the shelf" in India, would be the ideal
segment to start with. On the life side, term assurance for standard lives with simplified
underwriting is a possibility.
These channels by themselves will not be able to overcome the mindset of the people, but rather
can only be enablers for the human channels.
Invisible Insurer
In this model, the insurance company or its representative is not the entity marketing the
products. The insurance cover is sold by an automobile /credit card company as an add-on
product leveraging the brand of the retailer. The risk is carried by the insurance company, which
underwrites it. Products like creditor insurance, automobile insurance, and credit card related
insurance could be distributed using this channel. This model can be adopted in all market
segments for the lines of business mentioned.
Price Considering, the huge, untapped market in India, many companies use price as a tool to
penetrate the market. Moreover, the tough competition compels them to do so.
NEED FOR LIFE INSURANCE
The need for life insurance comes from the need to safeguard our family. If you care for your
family’s needs you will definitely consider insurance. Today insurance has become even more
important due to the disintegration of the prevalent joint family system, a system in which a
number of generations co-existed in harmony, a system in which a sense of financial security
was always there as there were more earning members. Times have changed and the nuclear
family has emerged. Therefore you need to save a part of income for the future too.
This is where insurance helps us.
Factors such as fewer numbers of earning members, stress, pollution, increased competition,
higher ambitions etc are some of the reasons why insurance has gained importance and where
insurance plays a successful role.
Insurance provides a sense of security to the income earner as also to the family. Buying
insurance frees the individual from unnecessary financial burden that can otherwise make him
spend sleepless nights. The individual has a sense of consolation that he has something to fall
back on.
From the very beginning of your life, to your retirement age insurance can take care of all your
needs. Your child needs good education to mould him into a good citizen. After his schooling he
need to go for higher studies, to gain a professional edge over the others - a necessity in this age
where cutthroat competition is the rule. His career needs have to be fulfilled.
Insurance is a must also because of the uncertain future adversities of life. Accidents, illnesses,
disability etc are facts of life, which can be extremely devastating. Disability can be taken care of
by insurance. Your family will not have to go through the grind due to your present inability.
Moreover, retirement, an age when every individual has almost fulfilled his responsibilities and
looks forward to relaxing can be painful if not planned properly. Have we considered the
increasing inflation and taxes? Will our investment offer us attractive returns under such
circumstances? Will it take care of our family after us? An insurance policy will definitely take
care of these and a lot more. Insurance has become a necessity today. It provides timely financial
as also rewards with bonuses. Life Insurance has come a long way from the earlier days when it
was originally conceived as a risk-covering medium for short periods of time, covering
temporary risk situations, such as sea voyages.
Therefore after going through the discussion let us summarize our points and understand the
need of life insurance:
a) Temporary needs / threats
The original purpose of life insurance remains an important element, namely providing for
replacement of income on death etc.
b) Regular Savings / Family Protection
Providing for one's family and oneself, as a medium to long-term exercise (through a series of
regular payment of premiums). This has become more relevant in recent times as people seek
financial independence for their family.
c) Investment
Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike
regular saving products, investment products are traditionally lump sum investments, where the
individual makes a one off payment.
d) Old age provision
Provision for later years becomes increasingly necessary, especially in a changing cultural and
social environment. One can buy a suitable insurance policy, which will provide periodical
payments in one's old age.
e) Children benefit
Provision for the education, marriage and start in life for the children.
f) Special needs provision
Protection against loss arising out of accident, disability, sickness, loan repayment on death.
WHY IS INSURANCE SUPERIOR TO OTHER FORM OF SAVINGS?
 An immediate estate is created in favor of the policyholder.
 Protection in case of death.
 Liquidity in case of need – easy loans are available.
 Tax relief – income tax, wealth tax etc..
 Policies can be offered as collateral security.
 Policies can be taken under M.W.P. Act 1874, to protect against creditors.
Let us take an example to understand the need for insurance:
Mr. Atul is 45 and self-employed. His wife Nandini, who is a housewife, looks after their two
children aged 3 and 7 years. They stay in a rented accommodation, where the rent is 15,000
rupees per month. Mr. Atul has taken up a loan of Rs. 2 lakh. His monthly earnings on average
are 40,000 rupees. Mr. Atul passes away in an unfortunate road accident. What are some of the
financial implications of his death on his family?
There may be several financial implications on his family. Some of these are:
a) The monthly income, previously provided by Mr. Atul would stop.
b) His wife and children may have to seek financial assistance from other relatives.
c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.
d) The family may have to move into a cheaper accommodation.
e) His widow may have to take up work to earn money.
f) The education of his children may suffer.
This simple example illustrates the impact premature death can have on a family, where the main
earner has no life cover.
Had Mr. Atul taken life cover, his family would not have faced such hardships in the event of his
unfortunate death. A simple life insurance policy could have provided Mr. Atul's family with a
lump sum that could have been invested to provide an income equal to all or part of his income.
In simple words, insurance protects against untimely losses. Insurance has been found useful in
the lives of persons both in the short term and long term. Short term needs like sudden medical
costs and long-term needs like marriage expenses etc can be met with using life insurance.
BENEFITS FROM LIFE INSURANCE
 It is superior to a traditional saving vehicles
 It encourages saving and forces thrift
 It provides easy settlement and protection against creditors
 It helps to fulfill the purpose of the life assured
 It can be encased and facilitates borrowing
 Tax relief
OBJECTIVE OF RESEARCH
The objective of the research is divided into two folds:
1) To analyse the changing scenario of HDFC Standard Life Insurance Company and to do
the comparative analysis of LIC with the ICICI Prudential
2) To devise the marketing strategy of HDFC Standard Life Insurance Company so as to
further increase its market share.
RESEARCH METHODOLOGY:
The dissertation is based on the data collected through the secondary sources. The
data collected through the secondary sources are books, magazines, newspaper and
Internet.
The methodology that is being adopted is basically a descriptive research.

TYPES OF INSURANCE POLICIES
Though there are a lot of policies available in the market under different names and by
different companies, the policies can broadly be classified into the following
categories:
 Term Insurance Policy
 Whole Life Policy
 Money Back Policy
 Endowment Policy
 Pension Plans Or Annuities
TERM INSURANCE POLICY
Term insurance provides life insurance coverage for a specific period of time.
Presently one year, five year, ten year, and fifteen year, are the periods one can buy
term life insurance policy. If the insured person dies during the period the insurance is
in force, the insurance company pays off the face value of the policy. If the insured
lives longer than the term of the policy, the policy is no longer in effect and nothing is
paid.
Term insurance is the least expensive form of life insurance. It is commonly used when the
insured needs temporary protection or can’t afford the premiums for the other forms of life
insurance. The other reason an insured may want term insurance is to purchase life insurance and
invest the difference between the term policy and cash value policy elsewhere.
Term insurance comes in several forms. There is renewable & non – renewable. Non –
renewable means that on the expiry of your policy you must go under another physical test and
filling out another questionnaire. On the other hand, with renewable policy you don’t need to
undergo these formalities again and you automatically re – qualify to continue your policy.
Then there is convertible & non – convertible policy. Convertible policy is the one which can be
converted into a permanent policy, whereas non – convertible is the one which cannot be
converted into a permanent policy or in other words the policy cannot be converted to any other
form of life insurance policy.
WHOLE LIFE POLICY
The whole life policy provides insurance coverage for the entire life of the insured
regardless of how many years the insurance is paid. Premiums may be paid throughout
the insured’s entire life or for a portion of his life. Additionally, the premium can be
paid in one lump – sum when the policy is taken out. This is referred to as a single
premium whole life policy.
When the premium is paid through out the life it is known as straight life policy, but when the
premium is paid for a specified period of time it is known as limited life policy.
The premiums are higher for Whole life insurance as opposed to term insurance. The reason for
this is that the policy has investment features as well as death benefits. The cash value portion of
the whole life insurance belongs to the insured. One can take it out in the form of policy loans or
can cash the policy in. Another advantage of whole life insurance is that the premiums are fixed,
i.e. regardless of your age, you pay the same amount for the coverage each year.
UNIVERSAL LIFE INSURANCE POLICY
Universal life insurance is a variation of Whole Life. The difference is that with Universal Life
the insurance part of the policy is separated from the investment portion of the policy. The cash
value portion of the policy is treated as an accumulation fund and investment income is credited
to the accumulation fund.
MONEY BACK POLICY
Money back policies provide for periodic payments of partial survival benefits during
the term of the policy, as long as the policyholder is alive.
An important feature of this type of policies is that in the event of the death at nay
time within the policy term, the death claim comprises the full sum assured, without
deduction of nay of any of the survival benefit amounts, which may have already been
paid as money back components. Similarly the bonus is also calculated on the entire
sum assured.
ENDOWMENT POLICY
An endowment policy covers the risk for a specified period, at the end of which the
sum assured is paid back to the policyholder, along with the bonus accumulated during
the term of the policy. This feature of payment of endowment to the policyholder
when the policy’s term is complete is responsible for the popularity of endowment
policies.
The amount received on maturity can either be utilized either to buy an annuity policy to
generate a monthly pension for the rest of the life, or put it into any other suitable investment of
our choice. This is one important benefit, which the endowment policy offers over a whole life
insurance policy.
Overall, endowment policies are the most suitable of all insurance plans for covering the risks to
a family breadwinner’s life. Not only do these policies provide financial risk cover for the
family, were the policyholder to die prematurely but the insurance amount is also repaid once
this risk is over. The endowment amount can then be used for meeting major expenditures such
as children’s education and marriage, etc.
Alternately, the endowment sum is available for a suitable investment geared to providing an
income for the remainder of one’s own life. These types of plans are particularly suitable to those
who other than having a risk cover are also interested in a savings component simultaneously.
PENSION PLAN OR ANNUITIES
An annuity is an investment that we make, either in a single lump sum or through installments
paid over a certain number of years, in return for which we receive a specific sum every year,
every half – year or every month, either for whole life or a fixed number of years.
After the death of an annuitant, or after the fixed annuity period expires for annuity payments,
the invested annuity fund is refunded, perhaps along with a small addition, calculated at that
time. Annuities differ from all the other form of life insurance in one fundamental way – an
annuity does not provide any life insurance cover but instead offers a guaranteed income either
for life or a certain period.
Typically annuities are bought to generate income during one’s retired life, which is why they
are also called pension plans. Annuity premiums and payments are fixed with reference to the
duration of human life.
Kind Of Policy Broad Definition When Received

Term Policy Like whole life but offers risk Risk cover in case of
cover for defined periods. death within term of

policy.
Whole life Policy Allows risk cover for whole life. Received only at the time
Premiums are paid throughout of death of life assured.
life.
Money – Back Policy Allows planning return of sum Received at fixed

intervals during the term
assured as lump sum after defined of the policy.
intervals of time.
Endowment Policy Available for a period and life. Either on maturity or in

Sum assured may be paid in case the event of death of the
of death within the term of the insured, whichever is
policy. earlier the sum assured
plus the bonus is
received by the
beneficiary.
Pension Plans Or Installments paid for certain years Either on the death of the
annuitant or on expiry of
Annuities and in turn a specific sum is the fixed annuity period.
received every year or month.
VARIOUS PRIVATE LIFE INSURANCE COMPANIES IN INDIA
Presently there are 12 Life Insurance companies operating in the market. These are:
1) HDFC Standard Life Insurance company
2) ICICI Prudential Life Insurance company
3) Birla Sunlife Insurance company
4) TATA AIG Life Insurance Company
5) OM Kotak Mahindra Life Insurance company
6) MAX New York Life Insurance company
7) Allianz Bajaj Life Insurance company
8) ING Vysya Life Insurance company
9) Met Life India Insurance company Pvt. Ltd
10) Aviva Life Insurance company Pvt. Ltd
11) AMP Sanmar Assurance Company Ltd
12) Sahara India Life Insurance Company

PENETRATION OF INSURANCE IN VARIOUS COUNTRIES
(YEAR 2005-06)
COUNTRIES INSURANCE PENETRATION
(PREMIUMS AS A % OF G.D.P)
U.S 4.58
U.K 8.82
BRAZIL 1.58
RUSSIA 1.62
INDIA 2.86
CHINA 2.50
LIFE INSURANCE CORPORATION

The Life Insurance Corporation (LIC) was established about 44 years ago with a view to provide
an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a
monopoly status and became synonymous with life insurance.
Its main asset is its staff strength of 1.24 lakh employees and 2,048 branches and over six lakh
agency force.
LIC has hundred divisional offices and has established extensive training facilities at all levels.
At the apex, is the Management Development Institute, seven Zonal Training Centres and 35
Sales Training Centres.
At the industry level, along with the Government and the GIC, it has helped establish the
National Insurance Academy. It presently transacts individual life insurance businesses, group
insurance businesses, social security schemes and pensions, grants housing loans through its
subsidiary; and markets savings and investment products through its mutual fund. It pays off
about Rs 6,000 crore annually to 5.6 million policyholders
OBJECTIVES OF LIC
• Spread Life Insurance much more widely and in particular to the rural areas and to the
socially and economically backward classes with a view to reaching all insurable persons
in the country and providing them adequate financial cover against death at a reasonable
cost.
• Maximize mobilization of people's savings by making insurance-linked savings

adequately attractive.
• Bear in mind, in the investment of funds, the primary obligation to its policyholders,
whose money it holds in trust, without losing sight of the interest of the community as a
whole; the funds to be deployed to the best advantage of the investors as well as the
community as a whole, keeping in view national priorities and obligations of attractive
return.
• Conduct business with utmost economy and with the full realization that the moneys
belong to the policyholders.
• Act as trustees of the insured public in their individual and collective capacities.
• Meet the various life insurance needs of the community that would arise in the changing
social and economic environment.
• Involve all people working in the Corporation to the best of their capability in furthering
the interests of the insured public by providing efficient service with courtesy.
Promote amongst all agents and employees of the Corporation a sense of participation, pride and
job satisfaction through discharge of their duties with dedication towards achievement of
Corporate Objective
INFORMATION TECHNOLOGY AND LIC
LIC has been one of the pioneering organizations in India who introduced the leverage of
Information Technology in servicing and in their business. Data pertaining to almost 10 crore
policies being held on computers in LIC. We have gone in for relevant and appropriate
technology over the years.
1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950’s
were phased out in 1980’s and replaced by Microprocessors based computers in Branch and
Divisional Offices for Back Office Computerization. Standardization of Hardware and Software
commenced in 1990’s. Standard Computer Packages were developed and implemented for
Ordinary and Salary Savings Scheme (SSS) Policies.
FRONT END OPERATIONS
With a view to enhancing customer responsiveness and services , in July 1995, LIC started a
drive of On Line Service to Policyholders and Agents through Computer. This on line service
enabled policyholders to receive immediate policy status report , prompt acceptance of their
premium and get Revival Quotation, Loan Quotation on demand. Incorporating change of
address can be done on line. Quicker completion of proposals and dispatch of policy documents
have become a reality. All our 2048 branches across the country have been covered under front-
end operations. Thus all our 100 divisional offices have achieved the distinction of 100% branch
computerisation. New payment related Modules pertaining to both ordinary & SSS policies have
been added to the Front End Package catering to Loan, Claims and Development Officers’
Appraisal. All these modules help to reduce time-lag and ensure accuracy.
METRO AREA NETWORK
A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in

November, 1997, enabling policyholders in Mumbai to pay their Premium or get their Status
Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the city. The
System has been working successfully. More than 10,000 transactions are carried out over this
Network on any given working day. Such Networks have been implemented in other cities also.
WIDE AREA NETWORK
All 7 Zonal Offices and all the MAN centres are connected through a Wide Area Network
(WAN). This will enable a customer to view his policy data and pay premium from any branch
of any MAN city. As at May 2002, we have 91 centers in India with more than 1320 branches
networked under WAN.
INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)
IVRS has already been made functional in 59 centers all over the country. This would enable
customers to ring up LIC and receive information (e.g. next premium due, Status, Loan Amount,
Maturity payment due, Accumulated Bonus etc.) about their policies on the telephone. This
information could also be faxed on demand to the customer.
LIC ON THE INTERNET
The Internet site is an information provider. It has displayed information about LIC & its
subsidiaries-LIC (International) E.C., LIC (Nepal)Ltd, LIC Mutual Fund, LIC Housing Finance
and their products. Efforts are on to upgrade our web site to make it dynamic and interactive.
The addresses/e-mail Ids of its Zonal Offices, Zonal Training Centers, Management
Development Center, Overseas Branches, Divisional Offices and also all Branch Offices with a
view to speed up the communication process.
PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET
LIC has given its policyholders a unique facility to pay premiums through Internet absolutely
free and also view their policy details on Internet premium payments.There are 11 service
providers with whom L I C has signed the agreement to provide this service.
VARIOUS POLICIES OF LIC
(PENSION PLAN)
JEEVAN DHARA
Minimum Age at entry: 18 years last birthday.
Maximum age at entry: 65 years last birthday.
Minimum vesting age: 50 years last birthday.
Maximum vesting age: 79 years last birthday.
Minimum deferment period: 2 years.

Rs. 50,000 for regular premium
Minimum Notional Cash option: policies.
Minimum Single Premium: Rs. 10,000/-

Minimum amount of Annual Rs. 2500
Premium:
Maximum deferment period: 35 years.
Age Proof: Standard Age Proof required.
JEEVAN SURAKSHA
:
Minimum Age at entry: 18 years last birthday.
Maximum age at entry: 65 years last birthday.
Minimum vesting age: 50 years last birthday.
Maximum vesting age: 79 years last birthday.
Minimum deferment period: 2 years.

Rs. 50,000 for regular premium
Minimum Notional Cash option: policies.
Minimum Single Premium: Rs. 10,000/-

Minimum amount of Annual Rs. 2500
Premium:
Maximum deferment period: 35 years.
Age Proof: Standard Age Proof required.

(SPECIAL PLAN)
BIMA NIVESH
Bima Nivesh 2005 is a plan with compound rate of guaranteed additions and loyalty additions.
This is the revised version of our popular Bima Nivesh Plan 2004 and is introduced to meet the
overwhelming demand for a single premium plan from our customers. It is a single premium,
ideal investment plan for those who have no regular income but good periodical income. Bima
Nivesh 2005 is available for terms 5 and 10 years. The guaranteed surrender value is payable
after the policy has run for at least one year. Term Assurance Rider is also available by payment
of a single premium at the option of the proposer.
(DOUBLE COVER ENDOWMENT PLAN)
JEEVAN MITRA
The benefits of this policy are considered normally for standard and substandard lives Class I
and II. It cannot be allowed for people engaged in hazardous occupations. Female lives under
Category I & II allowed. Non-medical special is allowed only if the Sum Assured does not
exceed Rs.1,00,000/-
Besides the usual benefits offered by any endowment insurance plan, this policy provides for an
additional insurance cover equal to the sum assured in the event of a policy holder’s death during
the term of the policy. In other words, the death claim in the case of this policy is twice the basic
sum assured.
The survival claim, on the other hand, is the basic sum assured, plus the accrued bonuses. Bonus
is, similarly, calculated only on the basic sum assured at rates applicable to endowment policies.
For instance, if a person insured for Rs.10,000 under this policy were to die before its maturity,
the death claim payable would be Rs.20,000 plus the accrued bonus on Rs.10,000, the basic sum
assured. If the policy holder survives the full term of the policy, the payment on maturity would
be Rs.10,000 plus the accumulated bonus.
Suitable For:
Being a high-risk endowment assurance policy, this plan is suitable for people of young ages
who wish to protect their families from a financial setback that may occur owing to their
premature death. The amount assured if not paid by reason of his death earlier will payable at the
end of the endowment term where it can be invested in an annuity provision for the rest of the
policyholder's life or in any other way he may think most suitable at that time.
JEEVAN SURABHI
Jeevan Surabhi plan is similar to other money back plans. However main differences in regular
money back plans and Jeevan Surabhi are as under Maturity term is more than premium paying
term.Early and higher rate of survival benefit payment.
Risk cover increases every five years.
The actual term and the premium paying term for these plans are as under.
Plan Policy Premium Paying
no. Term Term
106 15 years 12 years
Full sum assured is paid back as survival benefit by the end of premium paying term. However,
the risk cover and additional risk cover continue and the policy participates in profits till the end
of policy term.
Accident Benefit is restricted to the premium paying period and to the overall limit of Rs.5 lakhs
on a single life.
SuitableFor:
This plan holds special interest to people who besides wishing to provide for their old age and
family feel the need for lump sum benefits at periodical intervals.
ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse and Prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the
company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780
crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors;
as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country, with a wide
range of flexible products that meet the needs of the Indian customer at every step in life.
HDFC Standard Life
ABOUT HDFC
BACK GROUD
HDFC was incorporated in 1977 with the primary objective of meeting a social need- that of
promoting home ownership by providing long term finance to household needs. HDFC was
promoted with an initial share capital of Rs.100 million.
BUSINESS OBJECTIVE
The primary objective of HDFC is to enhance residential housing stock in the country through
the provision of housing finance in a systematic and professional manner, and to promote home
ownership. Another objective is to increase the flow of resources to the housing sector by
integrating the housing finance sector with the overall domestic financial markets.
ORGANIZATIONAL GOALS
HDFC’s main goals are to
a) develop close relationships with individual households,

b) maintain its position as the premier housing finance institution in the country,
c) transform ideas into viable and creative solutios,
d) provide consistently high returns to shareholders, and
e) to grow through diversification by leveraging off the existing client base.
THE PARTNERSHIP
HDFC and Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies shared
similar values and beliefs and a strong relationship quickly formed. In October 1995 the
companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the
relationship.
The next three years were filled with uncertainty, due to changes in government and ongoing
delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in
parliament. Despite this both companies remained firmly committed to the venture.
In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development Finance
Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury
department to advise them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising and both companies
agreed the time was right to move the operation to the next level. Therefore, in January 2000 an
expert team from the UK joined a hand picked team from HDFC to form the core project team,
based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC
Bank.
In a further development Standard Life agreed to participate in the Asset Management Company
promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th
July 2000.
Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life
Insurance Company Limited.
Its ambition from as far back as October 1995, was to be the first private company to re-enter the
life insurance market in India. On the 23rd of October 2000, this ambition was realised when
HDFC Standard Life was the only life company to be granted a certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns
18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum
investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values and trust.
The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the
yardstick by which all other insurance company's in India are measured.
Mission:
It aims to be the top new life insurance company in the market.
This does not just mean being the largest or the most productive company in the market, rather it
is a combination of several things like-
• Customer service of the highest order
• Value for money for customers
• Professionalism in carrying out business
• Innovative products to cater to different needs of different customers
• Use of technology to improve service standards
• Increasing market share
Values:
• SECURITY: Providing long term financial security to its policy holders will be its
constant endeavour. It will do this by offering life insurance and pension products.
• TRUST: It appreciate the trust placed by its policy holders in them Hence, it will aim to
manage their investments very carefully and live up to this trust.
• INNOVATION: Recognising the different needs of the customers, it will be offering a
range of innovative products to meet these needs.
Its mission is to be the best new life insurance company in India and these are the values that will
guide in this.
PRODUTCS
Each of us leads a unique life and so has unique needs. HDFC Standard Life Insurance offers a
range of products and invites you to choose the one that suits you the best.
PLAN BENEFITS
1.SAVING PLAN
Endowment Assurance Plan Life insurance and saving with choice of

investment funds.
Unit Linked Endowment Plan Life insurance and saving with choice of
investment funds.
Children’s Plan Financial security for your child
Unit Linked Youngster Plan Financial security for your child with
choice of investment funds.
Money Back Plan Life insurance with savings.
2.INVESTMENT PLAN
Single Premium Whole Of Life Investment with life insurance.

3.PROTECTION PLAN
Term Assurance Plan Life insurance at an affordable price

Loan Cover Term Assurance Plan Life insurance customized for home loans.
4.RETIREMENT PLANS
Personal Pension Plan Saving for retirement.

Unit Link Pension Plan Retirement saving with a choice of
investment funds.
MARKET SHARE OF VARIOUS LIFE
INSURANCE COMPANIES
LIC
1.According to you, which have played a major role in the
2% 2% ICICI
field of life-insurance companies.
6% BAJAJ ALLIANZ
3% HDFC
Insurance Pvt. Govt.
BIRLA SUN LIFEBusiness
7% Employees Employees
TATA AIG Man
6% OTHERS
LIC 10 13 10
HDFC 5 3 5
ICICI 3 3 4
Others 2 1 1
14
12
74%
10
No. of Respondents
8 Pvt. Employees
Govt. Employees
6 Business Man
74%
4
0
LIC HDFC ICICI Others
After analyzing this data it is found that from the given

three respective level of Pvt. Govt. and Business 10 out
of 20 (30%), 13 out of 20 (39%) and 10 out of 20 (30%)
are in favour of LIC, while 5 out of 20 (15%), 3 out of 20
(9%) and 5 out of 20 (6%), 1 out of 20 (30%) and 1 out
of 20 (30%) are in favour of other Pvt. Companies.
1. Which insurance companies have been successful to
make strong public base by advertisement?
Insurance Pvt. Govt. Business

Employees Employees Man
LIC 12 14 12
HDFC 3 2 4
ICICI 4 3 3
Others 1 1 1
16
14
12
10
Pvt. Employees
No. of Respondents
8
Govt. Employees
6 Business Man
0
2. Which insurance company has gained massive public
support in the current fiscal year?
Insurance Pvt. Govt. Business

Employees Employees Man
LIC 12 14 10
HDFC 3 2 5
ICICI 3 2 4
Others 2 2 1
16
14
12
10
Pvt. Employees
No. of Respondents
8 Govt. Employees
Business Man
6
0
From the above table, it is found that from the given three sector
Private, Govt. and Business 12 out of 20 (36%), 14 out of 20
(42%), 10 out of 20 (30%), are in the favour of LIC 3 out of 20
(9%), 2 out of 20 (6%) and 4 out of 20 (12%) are in favour of ICICI,
whereas only 2 out of 20 (6%), 2 out of 20 (6%) 1 and out of 20
(3%) favour others company.
3. Do you think insurance policy is in the direction of

public welfare?
Pvt. Sector Govt. Business

Sector Man
Yes 13 16 12
No 7 4 8
18
16
14
12
10
No. of Respondents
Yes
8 No
0
Pvt. Sector Govt. Sector Business M an
The above table shows that from private sector 13 out of 20

(30%) agree and 7 out of 20 (21%) disagree, from govt. sector 16
out of 20 (48%) think it right but 4 out of 20 (12%) don’t thick it
so and from business man 12 out of 20 (36%) are in favour of the
above statement but 8 out of 20 (24%) don’t favour it.
4. Is retirement bond or pension policy launched by the
number of private player as well as public sector
company in the direction of secured old age?

Sector Man
Yes 15 18 13
No 5 2 7
20
18
16
14
12
No. of respondents
Yes
10
No
8
6
4
2
0
Pvt. Sector Govt. Sector Business Man
It is obvious from the above table that 15 out of 20

(45%), 18 out of 20 (54%) and 13 out of 20 (39%) from
the given three think retirement bend or pension policy a
legitiment step in the diretion of secure old age but 5 out
20 (15%), 2 out of 20 (6%) and 7 out 20 (21%) don’t
agree with the opinion of the majority class.
5. Do you think that risk coverage factor included in
Insurance policy attracts general public towards the
policy?

Sector Man
Yes 12 16 11
No 8 4 9
18
16
14
12
No. of respondents
10 Yes
8 No
0
From the above table it is found that 12 out of 20 (36%)

from Private sector 16 out of 20 (48%). From Govt.
sector and 11 out of 20 (33%) thinks risk coverage factor
attractive but rest 8 out of 20 (24%), 4 out of 20 (12%)
and 9 out 20 (27%) from the above them sector don’t
think it so encouraging towards saving trend whereas 3
out of 20 (9%), 2 ot of 20 (6%) and 4 out of 20 (12%)
don’t think it so.
6. What according to you, the term plan that only covers
risk and doesn’t cover maturity benefit on survival at
the end of the term provides security cover over
policy holders or a smart way of accumulative money
from policy holders?
Pvt. Govt. Business

Sector Sector Man
Security Cover 11 15 12
Accumulative Money 9 5 8
16
14
12
10
No. of Respondents
8 Security Cover
Accumulative Money
6
0
Pvt. Sector Govt. Sector Business Man
It is obvious from the above data that 11 out of 20

(33%), from the Pvt. Sector, 15 out of 20 (45%) from
Govt. sector and 12 out of 20 (36%) think term plan as a
security cover but 9 out of 20 (27%), 5 out of 20 (15%)
and 8 out of 20 (24%) from the three respective group
think it as a way of accumulating money insurance
company.
7. Do you think that the arrival of so many private
companies in this insurance sector envisage a lot of
choice to policy holder?
Pvt. Govt. Business

Sector Sector Man
Yes 16 18 16
No 4 2 4
20
18
16
14
12
No. of Respondents
Yes
10
No
8
0
From analyzing the above data it is found that 16 out of 20 (48%)

from Pvt. Sector, 18 out of 20 (54%) from Govt. sector and 16 out of
20 (48%) think that the arrival of private players envisage a lot of
choice to policy holder. But 4 out of 20 (12%), 2 out of 20 (6%) and 4
hout of 20 (12%) don’t think it so.
8. Do you agree that customer-centricity and
transparency are the buzzwords for success in this
evolving industry?
Pvt. Govt. Business

Sector Sector Man
Yes 18 20 19
No 2 - 1
25
20
15
No. of Respondents
Yes
No
10
0
From this above data, it is found the 18 out of 20 (54%) from Pvt.
Sector and 20 out of 20 (60%) from Govt. Sector 19 out of 20 (57%)
from Business men agree with this statement whereas only 2 out of 20
(6%) from Pvt. Sector and 1 out of 20 (3%) from Business men do not
agree with this statement.
A COMPARATIVE STUDY OF LIC AND ICICI PRUDENTIAL
POLICIES
LIC and ICICI Pru both provide different policies and plans depending upon the various
requirements of people. Different plans are been categorised under seven major categories of
policies. Then a comparative analysis is done between the plans of both LIC and ICICI
Prudential. Both the company provides similar types of plan just with the difference in the
features or premium amounts.
WHOLE LIFE POLICIES
ICICI Prudential
LIC
WHOLE OF LIFE PLANS LIFE TIME PLAN
The most cheapest form of LIC policy Policy that meets your changing need over a lifetime
Premiums are payable through out the life Premium part is adjusted towards mortality and
administrative charges and rest is invested in plan of
Sum assured is payable on the death of the
your choice.
life assured
Bringing the difference in the plan of LIC and ICICI Pru we can find out that LIC
plans are very simple to understand whereas the other provide plans according to your
the changing needs of people.
ENDOWMENT POLICIES
LIC ICICI Prudential
ENDOWMENT WITH PROFITS ICICI PRU SAVE N PROTECT
These are the policies of limited duration An ICICI ideal plan for those who want
payable on maturity or death of the life to accumulate funds on a regular basis
assured. with life cover
These plans are available with different It is a fixed term policy that combines
option like with or without profit or saving with life cover. The premium is
double or special endowments paid regularly during the term
On death up to age7: - basic premium

returned without interest
On death after age 7: - sum assured

@3.5% compounded interest for first 4
yrs and then vested bonus.
It can be made out by comparing the plans of both the companies that while ICICI are
more concerned about saving and are categorised for the different section of people.
LIC is straight and simple plan.
MONEY BACK POLICIES
ICICI PRUDENTIAL
LIC
JEEVAN MITRA ICICI PRU CASH BAK
A high risk low cost plan and with profit An ideal plan for every milestone of life.
plan It combines life cover+liquidity+savings.
This plan provide for an additional It provides survival benefit after every 3
or 4 yrs and add-on benefit for a nominal
insurance cover, equal to the sun assured extra premium.
in the event of policy holder death during
the term of policy.
JEEVAN SURBHI
Premium payable for limited periods

available with periods of 12,15 and 18 yrs
Money back at interval of 4 and 5 yrs as

per policy term
JEEVAN SANCAY
Plan having a provision of guarantee

addition at 70p.a. per thousand and
loyalty addition payable on date of
maturity.
The LIC under money back policies provide various plans each having different kinds
of features. On the other hand ICICI Pru, which combines all the features in just one
single plan. The LIC plans like jeevan surbhi are suitable for high income and tax
categories.
SINGLE PREMIUM POLICIES
ICICI PRUDENTIAL
LIC
BIMA NIVESH ICICI PRU REASSURE
This is a unique, short-term, multiple A safe and comprehensive plan for those
benefits insurance plan which provide about to retire or has retired. It combines
safety, liquidity attractive returns and tax best of insurance and investment
benefit.
Liquidity with assured and steady annual

This plan can be assigned as a collateral returns. Life cover up to 110% of
security premium paid.
It provides loyalty and guarantee addition ICICI PRU ASSURE INVEST

too.
An investment with healthy returns and
added benefit of insurance.
This policy has a fixed term of 7 or10 yrs
ICICI PRU LIFE LINK
An ideal market linked insurance plan

that enables you to enjoy the upside of
market returns
It gives flexibility of choosing investment

option between growth, income or
balanced plan.
Under the single premium policies heading LIC just provides one policy as compared
to ICICI Pru, which gives different policies. Moreover ICICI Pru gives higher assured
returns and various other benefits.
TERM INSURANCE PLANS
ICICI PRUDENTIAL
LIC
BIMA KIRAN ICICI PRU LIFE GUARD
A plan with the provision for return of 90 An ideal low cost policy that covers life
with uncertainties
premium paid on surviving of the term
It comes with a choice of two convenient

Free term cover after maturity provided
premium payment modes-one time and
the policy is in full force
regular
Having an added attraction of loyalty

It gives the flexibility of accident and
addition
disability cover for a extra premium
JEEVAN GRIHA
For people desirous of obtaining a Minimum premium payable 2400 per

housing loan with policy acting as annum. It has no maturity benefits
collateral security
It ensure repayment of loan in the event

of premature death of the borrower
A high risk low cost plan
Available as double and triple cover plans
Comparison between the plans of both the companies’ shows that while ICICI Pru
provide more flexible and stable return plans the LIC are safer plan taking care of
family as a whole. Again LIC provides different plan under this category of life
insurance.
CHILDREN POLICIES
ICICI PRUDENTIAL
LIC
JEEVAN BALYA SMART KID
Plan provides for a monthly income up to Plan designed for critical educational
age of 21 in case of unfortunate death of milestone include specialised course in
parents the country and abroad
Premium waiver benefit is available The sum assured is paid immediately

from 100,000 to 300,000
BAL VIDYA
The plan takes care of family expenses-

on school college, health or just starting a All future payments are waived off
career
Most importantly the Child’s will

continue to receive the policy benefits.
Money in regular monthly instalment and
in lump sum at specific point of time.
It can be made out that LIC provide different plans for children as compared to ICICI
Pru, which gives only one plan for kids. Both aims at providing the parents aid for
higher studies of their children. While LIC policies are designed to meet the different
need of family budget ICICI Pru are more customer tailored.
ANNUITY PLANS
ICICI PRUDENTIAL
LIC
JEEVAN SURAKSHA ICICI PRU FOREVER LIFE
This plan is suitable for every individual An ideal solution for people around
salaried or self employed or any 30 yrs of age, which offers
professional like C.A., Dr. retirement benefit and takes care of
protection need
The plan can be availed for a life long

monthly pension with an option to Health cover till 65 through add on
commute 25%of the sum assured. benefit
JEEVAN DHARA
This plan is suitable for executives; self- 100% spouse pension

employed, professional young employed
ICICI FOREVER LIFE LINK PENSION
or people working wit 15 yrs experience.
PLAN
A single premium market linked pension

The plan guarantees life long pension and plan. For premium between
are tax deferred, guarantee return
Rs 40000 to 99999 – it is 2%
presently 12.5%
Rs 100,000 to 499,999 – it is 1.5%
Rs 500,000 and above – it is 1.25 % of

Policy provides competitive and
the premium
attractive annuity rates.
Lump sum payment to the annuitants Insurance coverage is equal to 105% of
here. the initial premium and the top ups
Can opt for 0 insurance cover too
ICICI PRU LIFE TIME PENSION

PLAN
A regular premium linked pension plan
On retirements the accumulated value of

your investment is used to provide
pension
For less than 50000- it is 20%
For premiums equal to or more than

50000- it is 18%
In case of zero death benefit it is 18% and

15% of the premium.
Both LIC and ICICI Pru provide various plans for pension. The LIC plans are more suitable
for all age of people whereas the other one are especially for aged people. Moreover ICICI Pru
plans are made such that each income level can opt depending upon their potentials.
A COMPARATIVE STUDY OF LIC AND HDFC STANDARD LIFE
POLICIES
LIC and HDFC Standard Life both provide different policies and plans depending upon the
various requirements of people. Different plans are been categorised under seven major
categories of policies. Then a comparative analysis is done between the plans of both LIC and
HDFC Standard Life. Both the companies provides similar types of plan just with the difference
in the features or premium amounts.
WHOLE LIFE POLICIES
HDFC STANDARD LIFE INSURANCE

LIC
WHOLE OF LIFE PLANS Policy that meets long term investment needs.
The most cheapest form of LIC policy
Premiums are payable through out the Premium part is adjusted towards mortality and
life administrative charges and rest is invested in it with
profits fund.
Sum assured is payable on the death of
the life assured
Bringing the difference in the plan of LIC and HDFC Standard Life Insurance we can
find out that LIC plans are very simple to understand whereas the other provide plans
according to your the changing needs of people.
ENDOWMENT POLICIES
HDFC STANDARD LIFE

LIC
ENDOWMENT WITH PROFITS HDFC STANDARD SAVE N

PROTECT
These are the policies of limited duration
payable on maturity or death of the life This plan ensures that ones family
assured. remains financially independent even if
the insured person is not around.
These plans are available with different

option like with or without profit or It is a fixed term policy that combines
double or special endowments saving with life cover. The premium is
paid regularly during the term
The plan receives simple reversionary

bonuses, which are usually added
annually. At the end of the terminal
bonus may be paid depending on the
performance
It can be made out by comparing the plans of both the companies that while HDFC are
more concerned about saving and are categorised for the different section of people.
LIC is straight and simple plan.
MONEY BACK POLICIES
LIC HDFC STANDARD LIFE

INSURANCE
JEEVAN MITRA HDFC STANDARD CASH BACK
A high risk low cost plan and with profit An ideal plan for every milestone of life.
plan It combines life cover+liquidity+savings.
This plan provide for an additional It provides the optional benefit to

insurance cover, equal to the sun assured customize the policy to suit the needs
in the event of policy holder death during through critical illness (C.I.), Accidental
the term of policy. term benefit (ATB) and accidental death
benefit (ADB).
JEEVAN SURBHI
Premium payable for periods ranging
Premium payable for limited periods from 10 years to 30 years
available with periods of 12,15 and 18 yrs
Money back at interval of 4 and 5 yrs as

per policy term
JEEVAN SANCAY
Plan having a provision of guarantee

addition at 70p.a. per thousand and
loyalty addition payable on date of
maturity.
The LIC under money back policies provide various plan each having different kinds
of features. On the other hand HDFC Standard life, which combines all the features in
just one single plan. The LIC plans like jeevan surbhi are suitable for high income and
tax categories.
SINGLE PREMIUM POLICIES

INSURANCE
BIMA NIVESH HDFC STANDARD SOUND

INVESTMENT
This is a unique, short-term, multiple
benefits insurance plan which provide This plan is well suited to meet long term
safety, liquidity attractive returns and tax investment needs.
benefit.
A compound reversionary bonus is being
This plan can be assigned as a collateral added to the policy every year.
security
An investment with healthy returns and
It provides loyalty and guarantee addition added benefit of insurance.
too.
The eligibility ages are minimum 18
years and maximum 70 years.
It gives flexibility of choosing investment

option between growth, income or
balanced plan.
Under the single premium policies heading LIC just provides one policy as compared
to HDFC Standard life insurance which gives different policies. Moreover HDFC
Standard life gives higher assured returns and various other benefits.
TERM INSURANCE PLANS

INSURANCE
BIMA KIRAN HDFC STANDARD LIFE ASSURED
A plan with the provision for return of 90 A sum assured is payable in case of death
of life assured during the term of the
premium paid on surviving of the term
contract.
Free term cover after maturity provided

This plan comes at a minimal cost and is
the policy is in full force
well suited for the value-conscious
Having an added attraction of loyalty customer.

addition
It gives optional benefits to customise the
JEEVAN GRIHA needs through critical illness (C.I.),

Accidental term benefit (ATB) and
For people desirous of obtaining a accidental death benefit (ADB).
housing loan with policy acting as
collateral security
It ensure repayment of loan in the event Minimum premium payable per annum
of premature death of the borrower having the age of life assured being 20
years is 1566.
A high risk low cost plan
Minimum premium payable 2400 per
Available as double and triple cover plans annum. It has no maturity benefits
Comparison between the plans of both the companies’ shows that while HDFC
Standard life provide more flexible and stable return plans the LIC are safer plan
taking care of family as a whole. Again LIC provides different plan under this
category of life insurance.
CHILDREN POLICIES

INSURANCE
JEEVAN BALYA HDFC STANDARD CHILD’S FUTURE
Plan provides for a monthly income up to Plan designed to secure the child’s future
age of 21 in case of unfortunate death of by giving the child (beneficiary) a
parents guranteed lump sum on maturity or in
case of the insured parent’s unfortunate
demise.
Premium waiver benefit is available

The beneficiary will receive the benefits
BAL VIDYA as per the plans options namely

accelerated benefit plan, maturity benefit
The plan takes care of family expenses- plan or double benefit plan.
on school college, health or just starting a
career
Premiums can be paid either quarterly,

half yearly or annually depending on the
Money in regular monthly installment insured parents convenience.
and in lump sum at specific point of time.
Most importantly the Child’s will
continue to receive the policy benefits.
It can be made out that LIC provide different plans for children as compared to HDFC
Standard life, which gives only one plan for kids. Both aims at providing the parents
aid for higher studies of their children. While LIC policies are designed to meet the
different need of family budget HDFC Standard life are more customer tailored.
ANNUITY PLANS
LIC HDFC STANDARD LIFE INSURANCE
JEEVAN SURAKSHA HDFC STANDARD POST RETIREMENT

INCOME
This plan is suitable for every individual
salaried or self employed or any An ideal solution designed to provide a
professional like C.A., Dr. post-retirement income for life with the
freedom to choose the retirement date.
The plan can be availed for a life long
monthly pension with an option to Flexibility to select any ages one which to
commute 25%of the sum assured. retire at (vesting age), between 50 years 70
years.
JEEVAN DHARA
One can choose to pay a single premium. For a
This plan is suitable for executives; self-
single premium policy, the premium payable is
employed, professional young employed
equal to sum assured.
or people working wit 15 yrs experience.
The Premium one has to pay depends on age,
The plan guarantees life long pension and
sum assured chosen, the premium paying
are tax deferred, guarantee return
frequency and the term of the policy.
presently 12.5%
For a regular premium policy, one will continue
Policy provides competitive and
to pay an annual premium for each year of the
attractive annuity rates.
policy.
Lump sum payment to the annuitants On retirements the accumulated value of is used
here. to provide pension.
Both LIC and HDFC Standard life provide various plans for pension. The LIC plans are more
suitable for all age of people whereas the other one are especially for aged people. Moreover
HDFC Standard life plans are made such that each income level can opt depending upon their
potentials.
SWOT ANALYSIS
SWOT Analysis is mainly used to find out the specific areas in the company’s operations, which
need more care and attention, by comparing them with that of the competitor. Here S means
Strengths of the company, W means Weaknesses of the company, O means Opportunities and
T means Threats to the company. Both Strengths and Weaknesses are inherent with the
company while Opportunities and Threats are usually outside factors, which affect the existence
of the company at large. Let us make the SWOT Analysis for all the players mentioned so far, ie.
Life Insurance Corporation, ICICI Prudential and HDFC Standard Life Insurance together so that
one gets a comprehensive idea.
Strengths
Life Insurance Corporation ICICI Prudential HDFC Standard Life

Insurance
Established agency network

during the last decades
More awareness among the

people
More penetration in the rural

parts of India
The network of HDFC Banks
The uncomparable supremacy The network of ICICI Banks
in the number of agents
The trust they have created so The name and fame created The name and trust people have
bestowed upon HDFC Bank
far by the ICICI Bank
The early bird advantage The professional and The early bird advantage among
the private players
aggressive marketing set-up
WEAKNESSES
Life Insurance ICICI Prudential HDFC Standard Life
Corporation Insurance
As a public company the

staff are not that much
sincere and active
The marketing approach is The cumbersome processes Do not have a strong and
efficient agency network
not that much professional to become a policyholder
The sluggishness of the As a private company the As a private company the

people do not have that
activities have given, at people do not have that much belief
times, a bad repute much belief
opportunities
HDFC Standard Life

Life Insurance ICICI Prudential
Insurance
Corporation
The high growth rate of The high growth rate of The high growth rate of
Indian Economy
Indian Economy Indian Economy
The people are becoming The people are becoming The people are becoming
more aware of Insurance
more aware of Insurance more aware of Insurance and have started
and have started and have started considering it as a
considering it as a considering it as a necessity.
necessity. necessity.
The penetration of The penetration of The penetration of

Insurance in the rural area is
Insurance in the rural area is Insurance in the rural area is minimal. This has to be
minimal. This has to be minimal. This has to be explored.
explored. explored.
The Government policies The Government policies The Government policies

are offering more and more
are offering more and more are offering more and more rebates on the insured
rebates on the insured rebates on the insured amount and such a scenario
amount and such a scenario amount and such a scenario will help more people
getting interested in it.
will help more people will help more people
getting interested in it. getting interested in it.
As people become more As people become more As people become more

internet savvy, the ad.
internet savvy, the ad. internet savvy, the ad. Spend will come down as
Spend will come down as Spend will come down as the prospective clients can
the prospective clients can the prospective clients can be approached through the
net.
be approached through the be approached through the
net. net.
Threats
HDFC Standard Life

Life Insurance ICICI Prudential
Insurance
Corporation
The aggressive style of

marketing by the private
players is a threat to LIC.
As the number of agents are

considerably huge, efficient
management of all the field
force need greater strain and
effort.
More and more companies More and more companies More and more companies
are coming into the field
are coming into the field are coming into the field and the existing ones have
and the existing ones have and the existing ones have to struggle hard to keep the
to struggle hard to keep the to struggle hard to keep the customers loyal and to get
more customers
customers loyal and to get customers loyal and to get
more customers more customers
Now as India is on the brim Now as India is on the brim Now as India is on the brim
of emerging out as an
of emerging out as an of emerging out as an economic power centre,
stringent laws can be
economic power centre, economic power centre, expected in the coming
stringent laws can be stringent laws can be future.
expected in the coming expected in the coming
future. future.
The opening up of the insurance sector has changed the whole look of the industry. While the
LIC in order to face the competition is coming with new strategies. New players like ICICI Pru
and HDFC Standard Life are leading the sector due to their strategic management and tailored
made projects.
From the research also it can be concluded that though the awareness and people opting for LIC
plans are more as compare to ICICI Pru and HDFC Standard Life but the later are gaining
momentum in the market day by day.
INTERPRETATION
It is no doubt that LIC is an established and market leader in life insurance industry in India. But,
with he coming up of private Life Insurance companies as a passage of IRDA, its share is getting
reduced.
Now, the private companies have acquired 25.74% of the market share in just a small span of 5
years.
This is so because of the innovative products of the private Life Insurance companies.
The basic difference between LIC and private players – ICICI prudential and HDFC Standard
Life is that LIC mainly focuses more on standardized products whereas LIC caters to the needs
of the customers and focuses on customized products.
The interpretation as a result of comparative analysis is as follows:
Whole Life Policies: LIC plans are very simple to understand whereas the private players
provide plans according to the changing needs of the customers.
Endowment Policies: LIC is quite simple and straight forward whereas ICICI Pru and HDFC
Standard Life are more concerned about saving and are categorized for the different section of
people.
Money Back Plan: LIC has provided various plans under it having different features. On the
other hand, the private players combine all the features in just one single plan.
Single premium policies: The private players - ICICI Pru and HDFC Standard Life gives higher
assured returns and various other benefits.
Term Insurance Plan: The private players provide more flexible and stable return whereas LIC
acts as safer plan taking care of family as a whole. Again, LIC provides different plan under this
category of Life Insurance.
Children policies: LIC provide different plans for children as compared to private
players, which gives only one plan for kids. Both aims at providing the parents aid for
higher studies of their children. While LIC policies are designed to meet the different
need of family budget ICICI Pru and HDFC Standard Life are more customer tailored.
Annuity Plans: The LIC plans are more suitable for all age of people whereas the other one is
especially for aged people. Moreover ICICI Pru and HDFC Standard life plans are made such
that each income level can opt depending upon their potentials.
Thus, the private players are making rapid strides with innovative products and
aggressive marketing. Unit Linked policies launched by the private players are having
a rage in the market and occupying a centrestage despite LIC’s strong record of
setting traditional; policies.
In a nutshell, it can be said that LIC should formulate its policies according to the
needs and demands of the customer’s i.e. it should come up with innovative products.
MARKETING STRATEGY FOR HDFC
Different companies can choose to position themselves differently and hence the marketing mix
would be different. However, the possible strategy that HDFC Standard Life Insurance Co. can
follow is as under:
Product: The development of flexible products to suit individual requirements is what will
differentiate the winners from the also-rans. The key to success for HDFC Standard Life
Insurance Co. would be in providing insurance solutions, not standardised insurance products.
The concept of riders/optional benefits has already been a huge innovation brought about by the
new players, which has led to customisation of products for individual needs. However, HDFC
Standard Life Insurance Co. may differentiate themselves on the basis of product segments that
they choose to focus on and excel in.
Distribution: Different companies may however choose different channels and different
geographies to focus on. The channel options are - tied agency force, corporate agents and
brokers and this is an area where different companies will make different choices. HDFC
Standard Life are focussing on all channels whereas companies like Max New York Life are
focussing on the tied agency force only. Customer interface will be a key challenge for LIC and
includes every that interaction that the customer has with the company, such as sales, new
business underwriting, policy servicing, premium payments, claim processing and so on.
Technology can play a crucial role in delivering the highest standards of service set by the
company and it will be imperative for any LIC to excel in all of these.
Price: Price is a relevant differentiator only in two segments - pure term insurance
and in pure annuities. Here too, service delivery and financial strength will need to be
present at a minimum acceptable level for price to be a relevant differentiator. In case
of savings oriented products, long term returns generated will be more relevant than
just the price of the product. A focus on generating good investment performance and
keeping a tight control on costs will help in generating good long-term maturity value
for customers. Advertising and promotion: The level of demand is latent and will
have to be activated considerably. The market needs to be developed. Greater
awareness of insurance and the need to have it as a protection tool rather than as a tax
planning measure needs to be appreciated by the Indian people. Various
communication tools including advertising, direct marketing and road shows will
contribute to all this.
Focus on customised products : Their were times when LIC had a strong record of
selling traditional policies such as endowment and money back policies but now the
customers want not only insurance cover but also a great return. This was the reason
why Unit Linked Insurance Policy brought in the market by the HDFC Standard
Life Insurance Co. Now, HDFC Standard Life Insurance Co. is reacting to
the competition of the success of ULIP’s launched by private sectors. So, there is a
great need that HDFC Standard Life Insurance Co. should formulate its policies
according to the needs of the customers.
Servicing of customers : Another area where HDFC Standard Life Insurance

Co. should look in is the servicing of customers. It is one of the major areas where
HDFC Standard Life Insurance Co. is lagging. So, it has become very important
to heavily invest on back-office work. The company can reduce this problem to a grate
extent by doing centralisation of data.
Exploring new distribution channels : Though HDFC Standard Life Insurance

Co. had an army of agents but it should explore new distribution channels like banks
and corporate agencies. There is a huge potential for selling the policies through
bancassurance. In fact there are some policies that can be sold only through a bank
channel- the policy to cover the home loans, for instance. So the company should look
into these alternate distribution channels.
Strategy for urban and rural market: There is a need for the company to look into
the urban market today where distribution and servicing of policies are quite easy. So,
HDFC Standard Life Insurance Co. should come up with customised products
rather than standardised products.
It is no doubt, that HDFC Standard Life Insurance Co. has great presence and
huge potential in the rural market. But, the problem that HDFC Standard Life
Insurance Co. is facing in rural market is that the premium per policy tends to be
lower which results in an increase in the cost of servicing.
So, there is great need for HDFC Standard Life Insurance Co. to formulate its
strategy in such a way that the customers in the rural markets pay their premium
annually rather than going for half yearly or quarterly payments. Its agent should be
quite efficient to convince the customers of the rural market to pay their premiums
yearly.
So, HDFC Standard Life Insurance Co. with its strong brand equity can
dominate both urban and rural markets.
CONCLUSION
The comparative analysis between the plans of these companies shows that they differ in their
projection and outlook while they aim at same targets and provides similar kind of returns.
The LIC business is more about providing social security and financial safety net for the
dependants. It ensures the life of the people providing life insurance product and services of high
quality and providing resources for economic development. The logo of the company also shows
image of corporation that cares. The advantage of LIC over its peers is that the sum assured
comes with sovereign guarantee.
On the other hand ICICI Pru has little different approach towards its business. They
are more customers centric; provide quality circle, having superior risk management.
They go for investment strategy to offer consistent, stable returns to policyholder. The
ICICI Pro had an entire range of insurance product. Their aggressive strategy and
innovative products have really led them to capture a significant portion of the market
share in just a small span of 5 years. Providing good customers and exploring new
distribution channels have really paid them off.
LIC should also look in providing well servicing to the customers because it is a major
area were it is lagging. Thus, coming up with innovative and aggressive marketing
will help it to dominate both urban and rural markets.
ASSUMPTIONS
• Data is collected from secondary sources therefore it is assumed that data being collected
is enough for the completion of dissertation
• Some of the information and data may not be current.
• Data may or may not be accurate.
• So far as Internet Search is concerned, it is based on finding certain key words so there is
a possibility that some information will be missed.
BIBLIOGRAPHY
Magazines:
• Business Today
• Insurance World
• Money
Newspapers:
• Business Standard
• The Times of India
Book:
• Insurance- by B.S.Bodla
Internet:
• www.licindia.com
• www.google.com
• www.hdfcinsurance.com
• www.icici

A Research Project ON: "Comparative Study of HDFC Standard Life Insurance Co. With Icici & Lic."

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Research Project ON: "Comparative Study of HDFC Standard Life Insurance Co. With Icici & Lic."

Uploaded by

Copyright:

Available Formats

A

“COMPARATIVE STUDY OF HDFC STANDARD

UNDER THE GUIDANCE OF:

Ansal Institute of Technology

OBJECTIVE OF THE RESEARCH

The objective of the research is divided into two folds:

It is basically a safeguard against uncertainties. Insurance essentially is an arrangement where the

From the business point of view, Insurance is divided into:

The Dissertation is mainly concerned with the Life Insurance only.

This is where insurance helps us.

a) Temporary needs / threats

b) Regular Savings / Family Protection

d) Old age provision

f) Special needs provision

 An immediate estate is created in favor of the policyholder.

 Protection in case of death.

 Liquidity in case of need – easy loans are available.

 Tax relief – income tax, wealth tax etc..

 Policies can be offered as collateral security.

Let us take an example to understand the need for insurance:

a) The monthly income, previously provided by Mr. Atul would stop.

d) The family may have to move into a cheaper accommodation.

e) His widow may have to take up work to earn money.

f) The education of his children may suffer.

Childhood is typically a time of no worries, no cares, and no responsibilities. A child depends on

For growing family

The golden years

• Building faith about the company in the mind of the client

• Intermediaries being able to build personal credibility with the clients

Retain and attract good intermediaries Attract intermediaries especially agents

Focus on multiple distribution channels

This is where insurance helps us.

a) Temporary needs / threats

b) Regular Savings / Family Protection

d) Old age provision

f) Special needs provision

 An immediate estate is created in favor of the policyholder.

 Protection in case of death.

 Liquidity in case of need – easy loans are available.

 Tax relief – income tax, wealth tax etc..

 Policies can be offered as collateral security.

Let us take an example to understand the need for insurance:

a) The monthly income, previously provided by Mr. Atul would stop.

d) The family may have to move into a cheaper accommodation.

e) His widow may have to take up work to earn money.

f) The education of his children may suffer.

 It is superior to a traditional saving vehicles

 It encourages saving and forces thrift

 It provides easy settlement and protection against creditors

 It helps to fulfill the purpose of the life assured

 It can be encased and facilitates borrowing

The objective of the research is divided into two folds:

The methodology that is being adopted is basically a descriptive research.

 Term Insurance Policy

 Whole Life Policy

 Money Back Policy

 Pension Plans Or Annuities

TERM INSURANCE POLICY

WHOLE LIFE POLICY

MONEY BACK POLICY

PENSION PLAN OR ANNUITIES

Kind Of Policy Broad Definition When Received