A RESEARCH PROJECT REPORT ON

SUBMITTED TO:

IN PARTIAL FULFILLMENT OF THE DEGREE OF

UNDER GUIDANCE OF: Mr. PANKAJ CHUGH BRANCH HEAD (BSLI)

SUBMITTED BY: YASHVIR SINGH ENR. NO. 05061128016 MBA IVTH SEMESTER

(SESSION 2005-07)

DIRECTORATE OF DISTANCE EDUCATION GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY HISAR

GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY, HISAR

CANDIDATES DECLARATION
I hereby certify that the work which is being presented in the project entitled NEED ANALYSE OF LIFE INSURANCE, in fulfillment of the requirement for the award of the Degree of Master of Business Administration and submitted in the Department of Business Administration of the Guru Jambheshwar University of Science & Technology, Hisar is an authentic record of my own work carried out under the supervision of Mr. Pankaj Chugh. The matter presented in this thesis has not been submitted by me for the award of any other degree of this University/Institute.

(Yashvir Singh) This is to certify that the above statement made by the candidate is correct to the best of my knowledge.

(Mr. Pankaj Chugh) Brach Head Birla Sun Life Insurance Co. Ltd. Sirsa-125055

PREFACE

Research project for MBA course and study content of such as practical knowledge, it makes the student confident and introduce them about their hidden ability. An insurance company gives security and protection people in today life insurance should be compulsory because today there is no surety of life. During my tenure of project I deeply analyzed the thoughts of people about insurance. To find out the importance of insurance research is conducted in HDFC Standard Life Insurance Company which is among the largest private Insurance Company this study is concerned the main feature which influence the Insurer. I have supported the report with some suggestion. For research data is collected from primary method and questionnaires method as well as sample size method.

ACKNOWLEDGEMENT

With true heart I would like to express my sincere inner feelings to all those who help me in making the timely and orderly completion of the project work and in bringing out the timely submission of the report. I am very thankful to Mr. Pankaj Chugh (Branch Head) Birla Sun Life Company who helped me and guided me in preparing this report. I am also very thankful to Mr. Abhinav Nanda (Resident Manager) who gave me chance to join HDFC-SLIC for my Research project who have been a complete guidance, constant acknowledgement and critical evaluation that help me to develop a new insight into my project.

Yashvir Singh

Contents
Sr. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Particular Introduction of Insurance Beginning of Insurance Insurance in India Role of Insurance in Economic Development About IRDA About HDFC Standard Life Insurance About Companys Products Objective of the Study Research Methodology Findings and Data Analysis Observation and Recommendation Limitations of the Study Swot Analysis Annexure (a) (b) Questionnaire Bibliography

Insurance is one of the instruments designed to deal with risk through sharing. In its imbued with two fundamental characteristics, viz. transfer of risk from one group to another group, and facilitates sharing of losses, on some equitable basic, all members of the group. The importance

of insurance is twofold: (1) From individuals point of view. Insurance is an economic device whereby the individual substituted a small certain cost fro a large uncertain financial loss that would exist if were not for the Insurance, and (2) From social point of view-insurance may be perceived to be an economic instrument that reduces eliminates risk through the process of combining a sufficient number of homogeneous exposures into a group and makes the losses predictable for a group as a whole. Insurance is a contract in writing between two parties whereby one party called insurer undertakes in exchange for fixed sum called premium, to pay the other party called insured a fixed amount of money on the happening of certain event. Insurance indemnifies assets and income. Insurance business in India can be broadly divided into two categories such as Life Insurance and General (Non-Life Insurance).

INSURANCE
1. 2. Insurance is the method of the spreading and transfer to risk. Loss of the unfortunate few a shared by the fortunate many who are exposed to same or similar risk.

3. 4.

Loss of assets depriver the owner of the expected benefit. Insurance is assurance and protects the human life.

WHY INSURANCE IS SO IMPORTED :Assets are likely to be destroyed or made non-functional due to accidental occurrences called perils. Assets can, therefore, be insured. A few examples or perils are: Fire, Flood, Breakdowns, Lightning, and Earthquake. Perils are the events. Risk is the consequential losses or damage. 1. 2. 3. 4. 5. 6. 7. The possibility of damage to assets caused by any period is the risk is exposed to. Risk means the possibility of loss or damage that may or may not happen. It is because of the uncertainty about the risk that Insurance become important. No uncertainty implies any Insurance. Insurance does not protect the assets but only compensates the economy or financial loss. Basically Insurance cover tangible assets but the concept can be extended to intangible also. The individual himself also needs financial security for the old age or man his becoming permanently disabled when his income will stop.

The business of Life Insurance Company is to brings together persons who are exposed to similar risks collect contribution (Premium) for than or an equitable basis and pay the losses (Claim) to those who actually suffer.

BEGINNING OF INSURANCE
The beginning of the Insurance started to the city of London. It started with the marine business. Marine traders, who used together at

Lioyds a coffee house in London, agreed to share losses to goods during transportation by ship. Marine related losses include : Loss of ship by sinking due to bad whether in high seas. Goods in transit by ship robbed by ship pirates. Loss of over damage to the goods in transit by ship due to bad whether in high seas. The first Insurance policy was issued in England in 1583.

INSURANCE BUSINESS :Insurance business in divided into four classes. 1) 2) 3) 4) Life Insurance Fire Insurance Marine Insurance and Miscellaneous insurance.

ROLE OS INSURANCE IN ECONOMIC DEVELOPMENT

Investment are necessary for economic development.

 Life Insurance plays a major role in mobilization of public saving. Savings out of Life Insurance fund are utilized in investments for economic growth. In the absence of Insurance cover against fire and engineering risks, Business, Industry and Trade would be seriously handicapped. A glance at the following statistics of LICs investments as on 31.03.2003 shows how great role it played by Life Insurers in the growth and development of the nations economy :-

AMOUNTS
Total investments (book value of) Govt. investment direct State Elec. Board Housing loans Water and Sewerage Transport, Industrial estates

Rs. Crores
265044 137276 14508 19944 4420 37329

Source : LICs annual diary for 2004

THE GROWING YEARS OF INSRANCE

The 19th century saw huge development in the field of Insurance, with newer products being devised to meet the growing needs of urbanization and industrialization. In 1835, the infamous New York fire drew peoples attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to

maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. In the 19th century many societies were founded to insure the life and health of their members, while fraternal orders provided Low-cost, members only Insurance. Even today, such fraternal orders continue to provide Insurance coverage to members as so most labor organizations. Many employers sponsor group Insurance polices for their employees, providing not just Life Insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium of these polices.

In India, Insurance started with the Insurance. It was in early 19th century when the Britishers on their postings in India felt the need of Life Insurance Cover. It started with English Companies like. The European and the Albert The first Indian Insurance Companies like : 1. 2. 3. Hindustan Co-operative in Kolkata. National Insurance in Kolkata. Bombay Life in Mumbai.

4. 5. 6.

New India in Mumbai. Jupiter in Mumbai. Lakshmi Insurance in New Delhi.

It was during the swadeshi movement in the early 20th century that Insurance witnessed a big boom in India with several more companies being setup. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and Management of these companies funds. By the mid 1950 there were around 170 Insurance companies and 80 provident fund societies in the country Life Insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. As a result the government decided nationalizes the life assurance business in India. The Life Insurance Corporation of India was set up in 1956 to take over around 250 Life Insurance Companies. For years thereafter, Insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate after the R.N. Malhotra committee report of 1944 became the sector was finally opened up of the Insurance sector to private players that the sector was finally opened up to private players in 2001. in 2000 have extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured.

IN INDIA INSURANCE CO. ARE CATEGORIZE IN TWO PARTS :1. 2. Life insurance co. General Insurance co.

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY ACT 1999 (IRDA)

It came into existence in December 1999. It is a statutory body which was framed to provide license to private companies in insurance sector and to protect the right of policy holders.

SCOPE : The act was passed by the parliament in December 1999. To permit private companies to enter the Insurance Market, Government has enacted Insurance Regulatory & Development Authority Act, 1999. The act Provides for the establishment of authority1. 2. 3. 4. 5. 6. Protect the interest of holders of insurance polices; To regulate, promote and ensure orderly growth of Insurance industry; F0r matters connected therewith or incidental thereto. The Insurance Act 1938. The Life Insurance Corporation Act, 1956. The General Business (Nationalization) Act, 1972. The act also sought to amend the following acts-

The act applies to the whole of India including J&K State. This is a corporate body established for the purpose and object as set out in the explanation to the little. The authority replaces controller under Insurance Act 1938. The first schedule amends Insurance Act 1938.

CONSITUTION OF IRDA :-

 Insurance regulatory and development authority consists of the following members. 1. 2. 3. A Chairperson; Not more than five whole-time members; and Not more than four part-time members to be appointed by the central Govt. Members should be a person of ability; integrity; and Standing.

FUNCTION OF IRDA :1. 2. 3. 4. 5. 6. 7. To issue certificate of registration, renew, withdraw, suspend or cancel such registration. To protect the interests of the policy holders/insured in the matter of Insurance contract with the Insurance Company. To specify requisite qualifications, code of conduct and project for Insurance intermediaries and agents. To specify code of conduct for surveyors/loss assessors. To promote efficiency in the conduct of Insurance business. To To promote undertake and regulate professional conduct organizations and connected with the Insurance and reinsurance business. inspection, enquiries investigations including audit of insurers and Insurance business.

8.

To control and regulate the rates, terms and conditions to be offered by the insurer regarding general Insurance business not so controlled by tariff advisory committee.

9. 10.

To specify and the form and manner for maintenance of books of accounts and the statement of accounts. To regulate investment of funds by the insurance companies.

INSURANCE REGULATORY & DEVELOMENT AUTHORITY ARE PROVIDE LICENSE TO PRIVATE INSURANCE COMPANIES
It came into existence in December 1999. It is a statutory body which was framed to provide license to private companies in insurance sector and to protect the right of policy holders. There are 13 Private Insurance Companies in Insurance sector.

S. No. Reg. No. 1. 101 2. 3. 4. 5. 6. 7. 8. 9. 10 11. 12. 13. 103 104 105 107 109 110 111 114 116 11 122 127

Date of Reg. Name of Company 23.10.2000 HDFC Standard Life 23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.10.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 14.05.2002 06.02.2004 Company Reliance General Insurance

Insurance

Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance

Company Kotak Mahindra Old Mutual Life Insurance Birla Sun Life Insurance Co. Ltd. Tata AIG Life Insurance Co. Ltd. SBI Life Insurance Co. Ltd. ING Vysya Life Insurance Co. Ltd. Bajaj Allianz Life Insurance Co. Ltd. Metlife India Insurance Co. Pvt. Ltd. Aviva Life Insurance Co. Ltd. Sahara India Insurance Co. Ltd.

OUR GROUP

OUR GROUP COMPANIES :-

HDFC Limited HDFC Bank Limited HDFC Asset Management Company Limited HDFC Securities Limited HDFC Realty Limited HDFC Chubb General Insurance Company Limited HDFC Standard Life Insurance Company Limited

ABOUT HDFC
HDFC and Standard Life Insurance Company Limited is a joint venture between Indias leading housing finance provider, HDFC and Europes largest mutual Life Insurance Company, the Standard Life Insurance Company Limited, U.K. both companies are extremely strong financially with HDFC having been rated AAA by CRISIL and Standard Life rated AAA by Standard and poors. A company rated AAA has extremely strong financial security characteristics according to standard and poors. Both companies are known for making available the highest level of service to all their costumers and consultants. HDFC founded in 1977 has grown to be a leader in housing finance and now has a wide branch network spread across the country. Standard Life has the experience of having been in the Life Insurance business since 1825. HDFC Standard Life Insurance Company was founded 14th august 2000 and received a license from the IRDA. HDFC are the main shareholders in HDFC Standard Life, 81.4% Standard Life own 18.6%. Given Standard Life existing investment in HDFC Group, this is the maximum investment allowed under current regulations. HDFC Standard Life aims it seek to serve as the hallmark of excellence, the yardstick by which all other Life Insurance Companies will be measured.

VISION STATEMENT

The most successful and admired Life Insurance Company, which means that we are the most trusted Company, the easiest to deal with, offer the best value for money, and set the standards in the industry. In short, The most obvious choice for all

MISSION:-

We aim to be the top new Life Insurance Company in Market.

This does not just mean being the largest of the most productive company of 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 customer. Use of technology to improve service standards. Increasing market share.

VALUES:
SECURITY :Providing long tern financial security to our policyholder is our constant endeavor. We will be do this by offering Life Insurance and pension product.

TRUST :We appreciate the trust placed by our policyholders in us. We will aim to manage their investments very carefully.

INNVOATION :Recognizing the different needs of our customers, be offering a rang of innovative products to meet these needs. Our mission is to be the best new Life Insurance Company in India and the values that will guide us in this. Registered Office : HDFC Standard Life Insurance Company Limited. Ramon House, 169 Back day Reclamation, Mumbai400020web site : www.hdfcinsurance.com

SOME PRIVATE INSURANCE COMPANIES

Several Insurance Companies emerged after the liberalization of the insurance sector. As a result now there are several Insurance companies, which are leading their ways. Now along with L.I.C. there are several private ones giving tough competition to it. Some of the prominent Insurance firms are : BAJAJ (Allianz) ICICI Prudential TATA (AIG) Kotak Mahindra Old Mutual Life Insurance Limited Aviva Life Insurance

BAJAJ (Allianz) :Bajaj Allianz Life Insurance Company Limited is a union between Allianz Ag, the worlds leading insurer and Bajaj Auto, one of the most respected names. Allianz AG is the leading insurance conglomerate globally and the largest asset manager in the world, managing asset worth over 989 billion Euro (Rs.4948560 Crores). At Bajaj Allianz AG has more than 110 years in the Indian market, are committed to offering you financial solution that provide all the security you need for your family and yourself. One of the prominent plans they have is Unit Gain Plus.

TATA (AIG) :Tata AIG is a joint venture that is backed by the Tata group Indias most respected industrial conglomerate, with revenues of more than US 8.4 Billion, and American International Group, Inc. (AIG) the leading US-based international Insurance and Financial service organization, with the presence in over 130 countries and jurisdictions throughout the world. Tata AIG offers a gamut of innovative products in the Life Insurance sector, some of them are : Money saver plan Maha Life (Gold) Raksha Plan Nirvana

ICICI PRUDENTIAL :ICICI Prudential is also a join venture that is backed by ICICI Bank Limited (erstwhile ICICI Limited) and Prudential plc, formerly know as Prudential Corporation plc, through its wholly owned subsidiary, Prudential Corporation Holding Limited situated in Laurence Poultney hill, London, Some of the innovative Products is offers in the Insurance sector are. ICICI Prudential Mutual Fund (Liquid Plan, Income Plan etc.) Unit Linked Plan with Capital Guarantee

 Smart kid

KOTAK MAHINDRA :Kotak Mahindra Old Mutual Life Insurance Ltd. Is a joint venture between kotak Mahindra Bank Ltd. (KMBL). And Old Mutual plc. At Kotak Life Insurance. We aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative Life Insurance Products. To make them financially independent. Jeenne ki Azaadi.

AVIVA :Founded in 1884, Dabur is one of Indias oldest and largest group of companies with consolidated annual turnover in excess of Rs. 1350 Crores. A professionally managed company, it is the countrys leading producer of traditional healthcare products. Aviva Plc is UKs largest and the worlds fifth largest Insurance Group. It is one of the leading providers of Life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Aviva has a 30 Million customer base worldwide. It has more than 240 Billion (430 Billion) of assets under management. In India, Aviva has a long history dating back to 1834. At the time of nationalization it was the largest foreign insurer in India in terms of the

compensation paid by the Government of India. Aviva was also the first foreign Insurance company in India to set up its representative office in 1995.

BIRLA SUN LIFF INSURANCE :Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life Financial of Canada to enter the Indian Insurance sector. The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and overseas with operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and Egvpt to name a Few.

FOREIGN PARTNER :Sun Life Insurance, Sun Life Financials primary Insurance business, has excellent ratings with the worlds top rating agencies. With assets under management as on September 30.2000 totalling more than CDN Billion, it ranks amongst the largest international Financial services organizations in the world. Today, the Sun Life Financial Group of companies and partners are represented globally in Canada, the United States, The Philippines, Japan, Indonesia, India and Bermuda.

INDIVIDUAL PRODUCTS
Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range of Products and invites you to choose the one that suits you.

Plan
Childrens Plan Endowment Assurance Plan Unit Linked Endowment Plan Unit Linked young Star Plan Money Back Plan Term Assurance Plan Personal Pension Plan Unit Linked Pension Plan

Benefits
Financial security for your child Life Insurance with saving Life Insurance & Saving with choice investment funds Financial securities for your child with choice of investment funds Life Insurance with Saving Life Insurance at an affordable price Savings for retirement Retirement savings with a choice of investment funds

CHILDRENS PLAN
Childrens plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in the future even is case of the insured reversionary bonuses, which are usually added

annually. This is the flexible plan with three options for you to choose form depending on your requirements. What are the options that are available with this plan? You will have the choice of 3 options at the start of the policy.

Option

On the death of the On maturity insured parent during the policy term

Maturity Benefit Plan Accelerated Benefit Plan

Future premiums waived and Sum assured + bonuses the policy continues till paid of to sum maturity. Sum assured + bonuses paid On the survival and the policy stops. insured Maturity parent date,

Double Benefit Sum Plan

assured

paid

Assured + bonuses future Sum assured + bonuses

premium waived, and policy paid Continues till maturity.

ARE YOU ELIGIBLE? The eligibility ages for the Life assured under the plan are as follows : Minimum age at entry Maximum age at entry Maximum age at maturity Minimum term : 10 years What are the payment options? 18 years 60 years 75 years Maximum term : 25 years

You have the choice of paying the premium either in yearly, half yearly or quarterly modes, depending on your convenience. The premiums you pay will be eligible for tax relief under section 80 (c) of the income tax act, 1961 the benefits received under this policy are eligible for tax relief under section 10 (10d) of the income tax act, 1961. The plan is affordable, customized to your needs, and above all, enables you to realize your dreams for your child. This plan is well suited for the value-conscious customer, and above all, for every loving parent. Grandparents, other relatives or any adult for the benefit of a child can also choose the plan.

UNIT LIKED ENDOWMENT PLAN

HDFC Unit linked Endowment Plan gives you :
An outstanding investment opportunity in a wide range of investment funds backed by HDFC, Indias leading fund manager. Valuable protection in case of the insured lifes unfortunate death. Flexible additional benefit option such as critical illness cover. Access to your accumulated fund before maturity. You can choose your premium and the investment fund of funds. We will then invest your premium, net of charges in your choose funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds.

In case of unfortunate demise of the policyholder during the policy term, we will pay greater of your sum assured and your total fund value to the family of the holder.

4 EASY STEPS TO PLAN

STEP 1 : CHOOSE YOUR REGULAR PREMIUM :This is the premium you will continue to pay each year of the policy. The minimum regular premium is Rs.10.000 per year. You can pay quarterly, half yearly or annually, you also have a range of conveniently auto premium payment option.

STEP 2 : CHOOSE YOUR LEVEL OF PROTECTION :You can choose any amount of sum assured with: A minimum of 5 times your choose regular premium. A maximum of 20 times your regular premium. (The sum assured cannot be increased during term but can be reduced.)

STEP 3 : CHOOSE ADDITIONAL PLAN BENEFIT :In addition to the maturity benefit, you can choose from these benefit option.

 Life option = Death benefit Extra life option = Death benefit + accident benefit Life & Health option = Death benefit + Critical illness benefit Extra Life & Health benefit = Death + Critical illness + Accident benefit

STEP 4 : CHOOSE YOUR INVESTMENT FUNDS :Choosing your investment options is important. We have five funds that give you: The potential for higher but more variable returns over the term of your policy. More stable returns with lower long term potentials Your investment will buy units in any of five funds designed to meet your risk approach. All units in a particular fund are identical. You can choose from all or any of the following five funds.

FUND

[FRAME 1]

BANK DEPOSITS MARKET 100%

GOVT. SECURITIES

EQUITY RISK

&

RETURN

AND MONEY AND BONDS Liquid fund Secure fund Extremely stable returns. More stability equity Higher capital than funds. potential 100% Low moderate low Low

capital risk. Very

return than liquid Defensive managed fund fund Access to better long-term returns trough equities. bond Significant down Increased exposure better return. 70% to 85% 15% TO 30% Moderate

exposure keep risk Balance managed fund equity gives long-term Bond 40% 70% 30% TO 60% High

exposure provide Growth fund some stability For those who wish to maximize there 100% returns. invest in 100% Very High

high quality equity

CHARGES :The charges under this policy are deducted to provide for the benefit and the administration provided by us. Our charges when taken together are amongst the lowest in the industry and are structured to give you better return over the long term.

INVESTMENT CONTEN RATE (ICR) :This is a premium-based charge. After deducting this charge from your premiums, the remainder is invested to buy units. This percentage is called the investment content are.

SOME OTHER CHARGES

FUND MANAGEMENT CHARGES :The daily unit price already includes a low fund management charge of 0.80% per annum of the fund value. In the long term, the key to building great maturity value is a low FMC, HDFCs has the lowest in the market.

ADMISTRATION CHARGES :A charge of rupees 15 per month is charged to cover regular administration costs. We make the charge by canceling units is each of the funds you have choose, in the proportion you have choose.

RISK BENEFIT CHARGES :Every month we make a charge for providing you with the death or critical illness cover you have selected. The amount of the charge taken each month depends on your age. We take the charge by canceling units in each of the funds you have choose in the proportion you have choose.

FUND

SWITCHING

CHARGES,

PREMIUM

OF

ALTERATION CHARGES :Premium alteration include stopping and restarting your regular premium after 3 years. We make no charge for any of the above options. We reserve the right to introduce such charges after approval from the IRDA.

CANCELLATION OR SURRENDER CHARGES :On cancellation or surrender of the policy before 3 years of regular premiums have been paid, we will make a charge of 25% of the outstanding premium due for the remainder of this 3-years period.

TAX BENEFITS :You will be eligible for tax benefits under section 80 c and 10 (10D) of the income tax act, 1961 Under Section 80 c, you can save up to Rs.33660/- from your tax each year us premium up to Rs.100000/- are allowed as a deduction from your taxable income. Under Section 10 (10D), the benefits you receive from this policy are completely tax-free.

UNIT LINKED YOUNG STAR PLAN

As a parent your priority is your childrens future and being able to meet their dreams and aspirations. Today, providing a good Education, Establishing a Professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your children take these important steps in life. Plan today to ensure a bright future for your children. Start building savings today with the HDFC Unit Linked Star Plan. So that your child is able to lead a life of respect and dignity with a secured financial future. The HDFC unit linked young star plan gives you:_ An outstanding investment opportunity by providing a choice of thoroughly researched and selected investment.

 Valuable protection in case of the insured parents unfortunate death. Very flexible benefit combinations and payment option. Flexible additional benefit options such as critical illness cover. You can choose your premium and the choose funds in the proportion you specify. At the end of the policy term you will receive the accumulated value of your funds. In case of the unfortunate death of policy holder during the term HDFC Standard life will continue the policy and continue to pay the original premiums you had choose. Your family will receive the Sum assured you had choose plus the fund built up by your and HDFC Standard Lifes contribution.

4 EASY STEPS TO PLAN

STEP 1 : CHOOSE YOUR REGULAR PREMIUM :This is the premium you will continue to pay each year of the policy. The minimum regular premium is Rs.10.000 per year. You can pay quarterly, half yearly or annually, you also have a range of conveniently auto premium payment option.

STEP 2 : CHOOSE YOUR LEVEL OF PROTECTION :You can choose any amount of sum assured with: A minimum of 5 times your choose regular premium. A maximum of 20 times your regular premium.

(The sum assured cannot be increased during term but can be reduced.)

STEP 3 : CHOOSE ADDITIONAL PLAN BENEFIT :In addition to the maturity benefit, you can choose from these benefit option. Life option = Death benefit Extra life option = Death benefit + accident benefit Life & Health option = Death benefit + Critical illness benefit Extra Life & Health benefit = Death + Critical illness + Accident benefit

STEP 4 : CHOOSE YOUR INVESTMENT FUNDS :Choosing your investment options is important. We have five funds that give you: The potential for higher but more variable returns over the term of your policy. More stable returns with lower long term potentials Your investment will buy units in any of five funds designed to meet your risk approach. All units in a particular fund are identical. You can choose from all or any of the following five funds.

FUND

[FRAME 3]

BANK DEPOSITS MARKET 100%

GOVT. SECURITIES

EQUITY RISK

&

RETURN

AND MONEY AND BONDS Liquid fund Secure fund Extremely stable returns. More stability equity Higher capital than funds. potential 100% Low moderate low Low

capital risk. Very

return than liquid Defensive managed fund fund Access to better long-term returns trough equities. bond Significant down Increased exposure better return. 70% to 85% 15% TO 30% Moderate

exposure keep risk Balance managed fund equity gives long-term Bond 40% 70% 30% TO 60% High

exposure provide Growth fund some stability For those who wish to maximize there 100% returns. invest in 100% Very High

high quality equity

TAX BENEFITS :You will be eligible for tax benefits under section 80C and 10 (10D) of the income tax act, 1961. Under Section 80C, you can save up to Rs.33660/- from your tax each year as premiums up to Rs.100000/- are allowed as a deduction from your taxable income. Under section 10 (10D), the benefits you receive from this policy are completely tax-free.

CHARGES :The charges under this policy are deducted to provide for the benefit and the administration provided by us. Our charges when taken together are amongst the lowest in the industry and are structured to give you better returns over the long term.

INVESTMENT CONTENT RATE (ICR) :

This is a premium-based charge. After deducting this charge from your premiums, the remainder is investment to buy units. This percentage is called the investment content rate.

SOME OTHER CHARGES

FUND MANAGEMENT CHARGES :The daily unit price already includes a low fund management charge of 0.80%. per annum of the fund value. In the long term, the key to building great maturity value is a low FMC, HDFCs has the lowest in the market.

ADMINISTRATION CHARGES :A charge of rupees 15 per month is charged to cover regular administration costs. We make the charge by canceling units in each of the funds you have choose, in the proportion you have choose.

RISK BENEFIT CHARGES :Every month we make a charge for providing you with the death or critical illness cover you have selected. The amount of the charge taken each month depends on your age. We take the charge by canceling units in each of the funds you have choose in the proportion you have choose.

FUND

SWITCHING

CHARGES,

PREMIUM

OF

ALTERATION CHARGES :Premium alteration include stopping and restarting your regular premium after 3 years. We make no charge for any of the above options. We reserve the right to introduce such charges after approval from the IRDA.

CANCELLATION OR SURRENDER CHARGES :On cancellation or surrender of the policy before 3 years of regular premiums have been paid, we will make a charge of 25% of the outstanding premium due for the remainder of this 3-years period.

UNIT LINKED PENSION PLAN

Today, you are busy climbing the ladder or success and realizing your dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at your own terms even after you retire?

HDFC UNIT LINKED PENSION PLAN?

The HDFC unit linked pension plan is and insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns by providing a choice of thoroughly researched and selected investments. Stride into your golden years of retirement with dignity and pride. You can choose your premium and the investment fund. We will then invest your premium, net of charges in your choose funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds, which will be used to provide your pension income. In the event of your unfortunate demise during the policy term, your spouse will receive a cash lump sum to help his or her manage their retirement years. HDFC unit linked pension plan is an Insurance policy that benefits you in the following ways: Provides a post retirement income for life.

 Offers you potentially higher market linked returns while providing your family the cover of safety. Gives you the flexibility to plan you retirement date. Gives you the freedom to invest premiums as per your preference. Gives you tax benefit on your premiums and on receiving the lump sum.

STEP 1 : CHOOSE YOUR RETIREMENT AGE :You can select any age you wish to retire at (vesting age), between 50 years and 70 years.

STEP 2 : CHOOSE YOUR PREMIUM :For a regular premium policy, you will continue to pay a minimum annual premium of Rs.10000/- for each year of the policy. You can pay the premium quarterly, half yearly or annually. The minimum premium amount for single premium is Rs.25000/-. You may also choose to pay additional single premiums.

STEP 3 : CHOOSE YOUR INVESTMENT FUNDS :Choosing your investment options is important. We have five funds that give you: The potential for higher but more variable returns over the term of your policy: or. More stable returns with lower long terms potentials. Your investment will buy units in any of five funds designed to meet your risk approach. All units in a particular fund are identical. You can choose from all or any of the following five funds.

FUND

[FRAME 5]

BANK DEPOSITS MARKET 100%

GOVT. SECURITIES

EQUITY RISK

&

RETURN

AND MONEY AND BONDS Liquid fund Secure fund Extremely stable returns. More stability equity Higher capital than funds. potential 100% Low moderate low Low

capital risk. Very

return than liquid Defensive managed fund fund Access to better long-term returns trough equities. bond Significant down Increased exposure better return. 70% to 85% 15% TO 30% Moderate

exposure keep risk Balance managed fund equity gives long-term Bond 40% 70% 30% TO 60% High

exposure provide Growth fund some stability For those who wish to maximize there 100% returns. invest in 100% Very High

high quality equity

TAX BENEFITS (BASED ON CURRENT TAX LAWS)

You will be eligible for tax benefits under section 80c & 80ccc of the income tax act, 1961.

CHARGES :The charges under this policy are deducted to provide for the benefit and the administration provided by us. Our charges when taken together are amongst the lowest in the industry and are structured to give you better returns over the long term. Investment content rate (ICR): this is a premium-based charge. After deducting this charge from your premiums, the remainder is invested to buy units. This percentage is called the investment content rate. Premium paid during (Rs.) years Single premium up to Additional premiums 3rd years onwards (99%) Regular premium payment policies single 4.99.999 5.00.000 & above 94% 97% 1st and 2nd years (97%) Investment content rate

SOME OTHER CHARGES

FUND MANAGEMENT CHARGES :The daily unit price already includes a low fund management charge of 0.80%. per annum of the fund value. In the long term, the key to building great maturity value is a low FMC, HDFCs has the lowest in the market.

ADMINISTRATION CHARGES :A charge of rupees 15 per month is charged to cover regular administration costs. We make the charge by canceling units in each of the funds you have choose, in the proportion you have choose.

RISK BENEFIT CHARGES :Every month we make a charge for providing you with the death or critical illness cover you have selected. The amount of the charge taken each month depends on your age. We take the charge by canceling units in each of the funds you have choose in the proportion you have choose.

FUND

SWITCHING

CHARGES,

PREMIUM

OF

ALTERATION CHARGES :Premium alteration include stopping and restarting your regular premium after 3 years. We make no charge for any of the above options. We reserve the right to introduce such charges after approval from the IRDA.

CANCELLATION OR SURRENDER CHARGES :On cancellation or surrender of the policy before 3 years of regular premiums have been paid, we will make a charge of 25% of the outstanding premium due for the remainder of this 3-years period.

OBJECTIVES
Objectives of the Research project is to get aware bout the real management practices carried out in the real set up of companies. This Research project equip the students with better insight to corporate world and provide necessary experience to know the market better. The main objective of my Research project are as follows. 1. 2. 3. 4. 5. 6. 7. 8. To find our, what are the main feature that influence a insurer while he buying Insurance plan. To know about the saving habits of consumers To find out the customers financial position. To know the awareness about HDFC Standard Life Insurance plans. To study the attitude of consumer towards HDFC Standard Life Insurance Products To know about the awareness of (IRDA) in consumers. To find out risk taker people. To know the awareness about medical benefits plan among people.

PRIMARY RESEARCH :Primary data are the date that are collected to solve a problem or take advantage of any opportunities on which a decision is depending. These data are basically observed and recorded by the researcher for the first time.

RESEARCH DESIGN :For this study a survey research was adopted with the help of primary data. For getting primary data the research tool was a structured questionnaire.

SAMPLE AREA :- My research aria was mainly JHAJJAR. SAMPLE SIZE :The sample for the purpose of study was the 150 customers.

SAMPLE DESIGN :A sample design not only seeks to determine the size of sample and also the sampling unit. The sample for the purpose of study was the customer.

SAMPLE TECHNIQUES :The technique adopted for selection of sampling of sample for study was simple random sampling method.

QUESTIONNAIRE DESIGN :The author had a set of ideas and expected results based on those ideas form the questionnaire. For this reasons questions were : Related to the filed of study. Related to the research hypothesis. Questions must bear significance to concerned are of research. Questions must seek information unattainable form other sources. They must be short as possible but comprehensive enough to allow the author to Questions were will laid out.

FINDING
No. of the people that belong to different income group :-

Income No. of People % age

Less 50000 50000-100000 100000-250000 250000+ 40 27 60 40 44 29 6 4

4% 29%

27% 1 2 3 4 40%

The sample size taken for the study for the project shows that 27% people have income less than 50000, 40% people have income between50000100000, 29% people have income 100000-250000. 4% people have income 2.5lakh+.

Saving per year :Income No. of People % age Less 10000 40 27 10000-25000 25000-50000 70 47 35 23 50000+ 5 3

3% 23%

27% 1 2 3 4

47%

The study shows that 47% majority of people have saving between 10000-25000 Rs. Per year. According of their income.

No. of People insured :Response Yes NO No. of People 90 60 %age 60 40

40% 60%

1 2

The sample size taken for the study of the project shows that 60% people are insured and 40% people are not insured. Company should concentrate on non-insured area.

Preference to protection while buying the Insurance policy :Response No. of People % age High Per. Pre. 100 67 30 20 Low Per. Not Per. 20 13 0 0

13% 20%

0% 1 2 3 67% 4

The study show that 67% people give high preference to protection, 20% give preference and 13% people give preference to protection while buying the policy.

Scale to saving while buying the insurance policy :Response High Per. Pre. Low Per. Not Per. No. of People 90 40 20 0 % age 60 27 13 0

13%

0% 1 2

27%

60%

3 4

The study shows that 60% people give high preference to saving, 27% people give preference and 13% people give low preference to saving while buying the insurance policy. This will shows that people are more concerned for saving of the insurance policy.

Scale to tax rebate while buying the insurance policy :Response No. of People % age High Per. 60 40 Pre. 30 20 Low Per. Not Per. 20 13 40 27

27% 40%

1 2 3 4

13% 20%

The study shows that 40% people give high preference to tax rebate, 20% give preference, 13% give low preference and 3% did not give preference to tax rebate while buying the insurance policy. This will shows that people are more concerned for their tax rebate.

Scale to return on investment while buying the insurance policy :Response High Per. Pre. No. of People 90 35 % age 61 23 Low Per. Not Per. 24 0 16 0

16%

0% 1 2 3 4

23%

61%

The sample size taken for the study of the project shows that 61% people give high preference to return on their investment, 23% People give preference and 16% give low preference to return on their investment while buying the insurance policy. This will shows that people are more concerned for return on their investment.

Scale to Guaranteed return with small interest :Response No. of People % age High Per. Pre. Low Per. Not Per. 50 33 27 18 40 27 33 22

22%

33%

1 2 3

27%

18%

The study shows that 33% people give high preference to guaranteed return with small interest on their investment, 18% gave preference and 27%, People give low preference to guaranteed return with small interest on their investment while buying the insurance policy.

Scale to very high return with little risk while buying the insurance policy :Response High Per. Pre. Low Per. Not Per. No. of People 20 39 30 61 % age 13 26 20 41

13% 41% 26% 20% 1 2 3 4

The study shows that 41% people give no preference to very high returns with little risk, 20% people give Low preference 26% people give preference and 13% people give high preference to very high return with little risk while buying insurance policy

Scale to Medical benefit while buying the insurance policy :Response High Per. Pre. Low Per. Not Per. No. of People 28 50 32 40 % age 19 33 21 27

27%

19% 1 2 3 33% 4

21%

The study shows that 19% people give high preference to medical benefits, 33% give preference to medical benefits while buying the insurance policy.

Scale to financial plan for daughter marriege while buying the insurance policy :-

Response High Per. No. of People 30 % age 20

Pre. Low Per. Not Per. 62 28 30 41 19 20

20%

20%

1 2 3

19% 41%

The study shows that 41% people give preference to daughter marriage, 19% people give low preference, 20% people give high preference to daughter marriage while buying insurance policy.

Scale to financial plan child education while buying the insurance policy :Response High Per. No. of People 67 % age 45 Pre. Low Per. Not Per. 40 11 32 27 7 21

21% 45% 7% 27%

1 2 3 4

The sample size taken for the study of the project shows that 45% of people give high preference to child education, 27% people give preference and 7% give low preference to child education while buying the insurance policy.

Scale to financial for safe and secure future of their child :Response High Per. No. of People 100 % age 66 Pre. 36 24 Low Per. Not Per. 10 4 7 3

7% 24%

3% 1 2 3 66% 4

The study shows that 66% people give high preferences to their child future planning, 24% give only a preference and 7% give low preferences to safe and secure of their child while buying the insurance policy. This will shows that people are more concerned for their childrens future security.

People awareness about insurance policy which gives medical benefit also :-

Response yes no

No. of People %age 60 40 90 60

%age

40% 60%

1 2

The study shows that 40% people are aware of nay insurance policy and 60% people are not aware of any insurance policy which gives medical benefits

People awareness about insurance policy which gives higher Return, Medical benefit with safe and secure future of their children :Response No. Of People yes 20 no 130 %Age 13 87

% age
13% 1 2 87%

The sample size taken for the study of the project show 87%. People not aware and only 13% people are aware of any insurance policy, which gives return, medical benefits with safe, and secure future of their children.

OBSERVATION
In today scenario service Ind. Is on the boom positions, and India is emerging as a big service provider. Service Ind. are today facing a huge competition and the marketing in these industries is becoming very complex. Today Insurance Ind. Is a speedily growing sector. After coming the private players this industry is becoming complex day do day and the competitors very fast. During my Research project. I saw the ground realities of market. I meet a lot of individual in the field and get their views about the Insurance and company on the base of my experience in the filed. I made some observation regarding the company, HDFC SLI and what people think about Insurance. Some of these observation are as follows :1. 2. 3. 4. 5. 6. Major find of the study show that protections are the prime pref. Alones with saving and tax benefits. Mostly above 50 years aged people want to purchase medical benefits policy. People awareness about HDFC SLI Company is very less. Very less people are risk taker people. A large no. of people do not believe in private sector. Very less no. of people purchase plan for daughter marriage.

7. 8. 9.

A person whos income is more than 100,00 mostly he purchase policy for tax rebate. Mostly people belong to Rs.50.000-100000 income group. A large no. of people wants guaranteed return.

RECOMMENDATIONS
On the basis of my observations and my knowledge and skills I an interested to offer some recommendations. Which I think will be beneficial to the company. These recommendations are as follows :1. 2. 3. To increase its market share the company should target on protection factor along with saving and tax rebate factor. The study shown that there is less awareness for the companys Plans in market. Companys Young Star plan is very good plan, but very less no, of people are aware about it. So co. should be increase the awareness of this plan. 4. 5. To increase its market share the co. should target the middle class as middle class is very big market in India. Co. should make low premium plan related with children education and daughter marriage because middle level people purchase these type of plan. 6. 7. Company should open costumer services point in rural areas also. Company should make plans for promotion of company business it should organize road shows seminars, exhibition

or contests because these things make a clear picture of companys Plans.

LIMITATION OF THE STUDY

In every research there are chances of errors and constraints. I have found following limitations is my study. 1. 2. 3. 4. 5. 6. 7. Sample size that I have taken in very small. On the basis of The time was very less to complete the study and to cover Reluctant behaviors of respondents regarding their income. I have little knowledge of Insurance. No Secondary Data. Small Area. Persons do not provide right information.

which efficient decision can not be taken. each & every aspect of the Study. The respondents were not frequent to disclose their income.

SWOT ANALYSIS
STRENGTH : HDFC Standard Life is at 4th. Position in India. HDFC SLI CO. Provide excellent service. Its product is more beneficial than other. Good Business experience. Strong Capital Structure. Product as per customer need. Highly Qualified Staff members. Customized of product as per customer need.

WEAKNESS : Lot of the competitors are in the market offers some product difference in the premium and offerings. Target only bigger income group where other companies are trying to catch middle lower level people. Higher premium as compared to the other companies.

 Client face problem to get insured due to large number of formalities. High target of financial advisor and for the sales development.

OPPORTONITY : Huge market is literally untapped out of estimated 320 million is usable markets only 20 % of the population is insured. In the pension filed where people want good life after their retirement. Indian people are more emotional towards their children that are why children plan are selling like hot cakes. Health Insurance and pension schemes and estimated market potential of approximately 10 billion.

THREAT : Weak perception of private players in the minds of Indian people due to frequent financial schemes. Large number of Insurance players. Current government policies do not encourage gross domestic saving. Of the tax liabilities of the services rises the customer will have little money to invest.

 And change rules day by day more rigid which is very difficult of the company.

QUESTIONNAIRE FOR
THE MAIN FEATURE WHICH INFULENCE THE INSURER PERSONAL INFORMATION :
Name :- ________________________ Age :- _________________

Occupation :- _________________________________ Address :- __________________________________________________ 1. What is your total yearly family income from all sources? Less 50.000 1 Lakh- 2.50 Lakh 2. Less 10.000 25.000-50.000 3. Yes 50.000-1 Lack 2.50 Lakh + 10.000-25.000 50.000+ No

How much amount do you saving per year ?

Have you insured yourself or any other member in your family?

4.

If yes, then form which Insurance company and which plan? Standard Life Insurance ICICI Prudential Plan Premium LIC Tata AIG

If any other ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Scale :1. High preference 3. Low Preference 5. 6. 7. 8. 9. How do you scale Protection while buying the Insurance policy. How do you scale saving while buying the Insurance policy. How do you scale Tax rebate while buying the Insurance policy. How do you scale Return on your buying the Insurance policy. How do you scale Gauranted return with little risk while buying the insurance policy. 10. How do you scale very high return with little risk while buying the Insurance policy. 11. How do you scale Medical benefit [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] 2. Preference 4. Did not give any Preference

while buying the Insurance policy. 12. How do you scale Financial plan for your daughter Marriage while buying the Insurance policy. 13. How do you scale Financial plan for your child Education while buying the Insurance policy. 14. 15. How do you scale Financial plan for safe and secure of your\r child. benefits also. Yes

[]

[]

[]

[]

[]

[]

[]

[]

[] []

[] []

[] []

[] []

Are you aware of any Insurance policy which gives you medical No

16. Are you aware of any Insurance policy which gives you higher Return, medical benefits with safe and secure future of your children? Yes No

Tanks you for the information provide

BIBOLIOGRAPHY
1. 2. 3. 4. 5. 6. 7. 8. KOTLER, PHILIP, MARKETING MANAGEMENT. NARESH MALOHTRA, MARKETING REARSCH. VARIOUS JOURNALS AND BROCHURES OF COMPANY DIFFERENT BUSINESS MAGAZINES COMPANY WEBSITE www.hdfcinsurance.com www.hdfc.com www.irdaindia.com DIFFERENT NEWSPAPER