PROJECT REPORT ON Customer Perception Towards HDFC Standard Life Insurance Company Ltd.

Report Submitted In the Partial Fulfillment For The Masters of Business Administration (2011-2013)

SUBMITTED TO: Ms. Sukhbir Kaur Asst. Professor Mgmt. Dept

SUBMITTED BY:Sheenam Pasricha MBA Roll no.1174494

MIMIT , MALOUT

DECLARATION
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I undersigned hereby declare that the project report submitted to my college MIMIT, MALOUT. In partial fulfillment for the degree of Masters of business administration on Customer Perception Towards HDFC Standard Life Insurance is a result of my own work under continuous guidance and kind co-operation of our college faculty members. I have not submitted this report to any other university for the award of degree.

Sheenam Pasricha

ACKNOWLEDGEMENT

A successful completion of an endeavour is very gratifying experience. This is the moment where I feel indebted to people who have supported me at different point in this project. I would like to express my heartfelt gratitude and thankfulness to the almighty god for blessing me with the opportunity and ability to work on this project. I am thankful to J.J.Maini ( HOD of Management Dept.) who provided us the right kind of environment to work on this project. My sincere thanks to Ms. Sukhbir Kaur (Asst. Prof.) for her invaluable guidance in completing this project. I would also like to thank my parents for their constant support and providing me everything I required for study all the time. They are the one who should be credited for my successful completion of project. I hope this project provides readers meaningful information about Customer Perception Towards HDFC Standard Life Insurance.

CONTENTS
TABLE OF CONTENTS 3 PAGE NO.

1. COMPANY PROFILE OF THE HDFC SLI BANK i. ii. iii. iv. i. ii. iii. iv. v. vi. Our vision & Our Values HDFC key Strengths Plans Offered By HDFC SLI Awards History Of Indian Insurance Industry Characteristics Of Life Insurance Functions Of Insurance Players in Indian insurance Industry Role Of IRDA In Insurance Sector Advantages Of Life Insurance

(5-19) 6-8 11 12-17 18 (20-30) 21 24 25 26 29 30 (31-35) (36-39) 37 38-39 (42-53) 54 55 56 57 58 59-60

2. INDIAN INSURANCE INDUSTRY

3. CUSOMER PERCEPTION ON LIFE INSURANCE 4. RESEARCH METHODOLOGY i. Objectives Of The Study ii Research Design , Sampling Plan,Tools 5. DATA ANALYSIS AND INTERPRETATION 6.FINDINGS 7. LIMITATIONS 8. RECOMMENDATIONS 9. CONCLUSION 10. BIBLIOGRAPHY 11. QUESTIONAIRE

Chapter-1 Company Profile

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HDFC Standard Life Insurance Ltd.

HDFC SLI ( HOUSING DEVELOPMENT STANDARD LIFE INSURANCE LTD)

FINANCE

CORPORATION

ABOUT HDFC STANDARD LIFE INSURANCE

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.

HDFC Standard Life insurance Company- HDFC holds 72.26 %. HDFC Asset Management Company HDFC holds 60% HDFC Bank- HDFC holds 23.26%. Intelenet Global (Business Process Outsourcing) HDFC holds 50%. HDFC Chubb General Insurance Company HDFC holds 74%.

OUR VISION AND VALUES

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and Standard Life plc, a Group Company of the Standard Life, UK. HDFC, as on December 31, 2008, holds 72.26 per cent of the paid up equity in the joint venture.

Our Vision

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

OUR VALUES
Values that define how we work:
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Integrity ,Innovation ,Customer centric, People Care ,Team work, Joy and Simplicity Besides the above (which provides an insight into the Corporate Structure of the Company), the Committees appointed by the Board focus on specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations to the Board on matters within their areas of purview. All decisions and recommendations of the Committees are placed before the Board for information or for approoval

Values that we observe while we work: Integrity Innovation Customer centric People Care One for all and all for ones Teamwork Joy and Simplicity

JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Reach of the JV player is highly rated and been conferred with many awards. HDFC is rated AAA by both CRISIL and ICRA. Similarly, Standard Life is rated AAA both by Moodys and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. respectively. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture. HDFC Standard Life Insurance Company Ltd . is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.

HDFC STANDARD LIFE INSURANCE PARENTAGE

HDFC is India leading housing finance institution and has helped build more than 23, 00,000 houses since its incorporation in 1977.

In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr. As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors. Rated AAA by CRISIL and ICRA for the 10th consecutive year. Stable and experienced management. High service standards.
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 Awarded The Economic Times Corporate Citizen long-standing commitment to community development.

of the year Award for its

Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.

Standard Life Group (Standard Life plc and its subsidiaries)

Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life group has been looking after the financial needs of customers for over 180

years It currently has a customer base of around 7 million people who rely on the company for their

insurance, pension, investment, banking and health-care needs Its investment manager currently administers 125 billion in assets

Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money the Financial Adviser accolade has also been awarded to

Marketing Awards, and it was voted a 5 star life and pensions provider at Service Awards for the last 10 years running. The '5 Star' Standard Life Investments for the last 10 years, 1998. Standard Life Bank was Magazine Awards in 2006

and to Standard Life Bank since its inception in

awarded the 'Best Flexible Mortgage Lender' at the Mortgage

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HDFC KEYS STRENGTHS

Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.

Range of Solutions

We have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

Track Record so far

Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859 crores and new business premium income stood at Rs. 2,685 crores. The company has covered over 9,59,000 lives year ending March 31, 2008.

Accolades and Recognition

Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004.

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PLANS OFFERED BY HDFC STANDARDS LIFE INSURANCE Protection Plans :You can protect your family against the loss of your income or the burden of a
loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.

Investment Plans :Our Single Premium Whole Of Life plan is well suited to meet your long
term investment needs. We provide you with attractive long term returns through regular bonuses.

PensionPlans

Our Pension Plans help you secure your financial independence even after retirement.

Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus

Savings Plans : Our Savings Plans offer you flexible options to build savings for your future
needs such as buying a dream home or fulfilling your children immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back, Unit Linked Enhanced Life Protection II, Children's Plan.

Development Insurance Plan : Development Insurance plan is an insurance plan which

provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of the immediate financial needs following their loss.

HDFC Children Plan: Children's Plans helps you save so that you can fulfill your child's
dreams and aspirations. These plans go a long way in securing your child's future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style.
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Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime. Today, a 2-year MBA course at a premiere management institute would cost you nearly Rs. 3,00,000/At a assumed 6% rate of inflation per annum, 20 years later, you would need almost Rs. 9,07,680/- to finance your child's MBA degree. An illustration of how education expenses could rise with passing time due to inflation. So, how can you cope with these costs? Children's Plans help you save steadily over the long term so that you can secure your child's future needs, be it higher education, marriage or anything else. A small sum invested by you regularly can help you build a decent corpus over a period of time and go a long way in providing your child a secured financial future alongwith.

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They are: Maturity Benefit Plan : Should the life insured die during the term of the plan, the future
premiums are waived and the policy continues till maturity. On maturity, the beneficiary will receive the sum assured and the accumulated bonuses. Bonuses under this plan are of reversionary nature and are on sum assured (non-compounded).

Accelerated Benefit Plan : If the life insured dies the beneficiary will receive the sum
assured and the accumulated bonuses immediately, and the policy will terminate. Should the life assured survive up to maturity, the sum assured and the bonuses will be paid.

Double Benefit Plan : Under this plan, on the death of the life insured during the premium
paying term, the beneficiary will receive the sum assured, and the future premiums are waived. On maturity, the beneficiary will receive an additional sum assured plus bonuses.

HDFC Endowment Assurance Plan: As a judicious family man, your priority is to

secure the well-being of those who depend on you. Not just for today, but also for the long term.
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With our HDFC Endowment Assurance Plan, you can start building your savings today and ensure that your family remains financially independent, even when you are not around. This 'With Profits' plan is designed to secure your family's future by giving your family a guaranteed lump sum on maturity or in case of your unfortunate demise, early into the policy term.

Advantages:
Ideal way to secure your long-term financial goals and your family's financial independence by giving a lump sum payment (basic Sum Assured plus any Bonus Additions) on survival up to Maturity date Provides invaluable protection to your family by way of lump sum payment in case of Gives you the flexibility to customise your policy according to your needs by adding You can choose to pay your premium as either Annually, Half-Yearly or Quarterly unfortunate demise within policy term any one of the 3benefit options available options Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961 depending on your convenience. You also have a range of convenient auto premium payment

HDFC Life Smart Woman Plan: HDFC Life Smart Woman Plan, a unique insurance cum
investment plan designed specifically for women. This plan ensures that your savings continue, while you adjust to the new stages of your life, and you remain confident to live life your way.
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The plan comes with comprehensive coverage options where we will cover you against pregnancy complications and congenital conditions or for malignant female-specific cancers. During these critical moments, we assure you the peace of mind by waiving and funding your premiums so that as you overcome and adjust to your life your investments continue to grow.

FEATURES:

Tax Benefits

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INCOME SECTION

TAX GROSS SALARY

ANNUAL HOW MUCH TAX HDFC STANDARD LIFE PLANS CAN YOU SAVE?

Sec. 80C

Across All income Upto Slabs

Rs.

33,990 All the life insurance plans.

saved on investment of Rs. 1,00,000.

Sec. 80 CCC

Across slabs.

all

income Upto

Rs.

33,990 All the pension plans.

saved on Investment of Rs.1,00,000.

Sec. 80 D*

Across slabs

all

income Upto Rs. 3,399 saved All on Investment of Rs. 10,000.

the

health

insurance

riders

available with the conventional plans.

TOTAL

SAVINGS

Rs37,389 Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000.

POSSIBLE **

Sec. 10 (10)D

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

AWARDS
HDFC Standard Life has been adjudged one of the Best Companies to Work for in India in 2010. The company participated in the Great Places to Work study for the first time and ranked first in the insurance category.

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HDFC Standard Lifes YoungStar Super has been voted Product of the Year 2010 in

the 'Insurance' category by more than 30,000 consumers nationwide across 36 markets. The consumer study on product innovation in India was conducted by A C Nielsen, the leading global research firm.

HDFC Standard Life has received the CIO The Ingenious 100 - 2009 Award , for

ATLAS (Agency Training Licensing and Servicing System). Additionally, the company has received the CIO 100 Security Award 2009 for pioneering LANDesk Management and Security Suite security implementation and taking its security to a higher level of technological excellence.

HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile

workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellence (using IT) is an initiative by the ,Network Computing magazine to identify, recognize, and honor end-user companies in India that have demonstrated the best use of technology to solve a business problem, improve business competitiveness, and deliver quantifiable ROI to stakeholders.

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Chapter-2 INDIAN INSURANCE INDUSTRY AN OVERVIEW

THE INSURANCE INDUSTRY IN INDIA

INSURANCE:

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Insurance is a contract providing for payment of a sum of money to the person assured or failing him to the person entitled to receive the same on the happening of certain event.Uncertainty of death is inherent in human life. It is this risk, which gives rise to thenecessity for some form of protection against the financial loss arising from death.Insurance substitutes this uncertainty by certainty.The objective of insurance is normally to provide:

a)Family Protection b)Provision for old age. c)Protection against risks Why Insurance?
holder. Insurance cover is essential because it provides the following benefits: A lump sum payment to the nominees at the time of the death of the policy holder. A regular payment to the nominees in the event of the death of the policy holder. Tax

benefits, as premiums paid reduce the liability of tax. Relieves economic hardships in the family on the uneventful death of the sole income

Inculcates the habit of savings.

THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years. Life Insurance In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the
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Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach. Insurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary . Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term "risk" is used to describe the possibility of adverse results flowing from any occurrence or the accidental happenings, which produce a monetary loss. Insurance is a pool in which a large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. The sharing of risk among large groups of people is the basis of insurance. The losses of an individual are distributed over a group of individuals.

Definitions: General definition: In the words of John Magee, Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals. Fundamental definition: In the words of D.S. Hansell, Insurance accumulated contributions of all parties participating in the scheme. Contractual definition: In the words of justice Tindall, Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency.

NEED FOR INSURANCE

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Who will take care of my family if tomorrow something unfortunate happens to me? If this question bothers you, then Life Insurance is the answer. Of course, under any circumstances, the loss of a loved one is a traumatic experience. But, if your family is also left without sufficient money to meet basic living needs or prepare for future goals, they will have to cope with a financial crisis at the same time. A Life Insurance plan ensures that your family is financially secure even if tomorrow you are no longer around to care for them.Life insurance, especially tailored to meet your financial needs.

NEED FOR LIFE INSURANCE

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. Let us look at these unique benefits of life insurance in detail.

Asset Protection
From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.
Life

insurance is the only investment option that offers specific products tailor made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the
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customer at that particular life stage, and hence ensures that the financial goals of that life stage are me

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

g Life Stage e
Young & Single Young & Just married Married with kids Middle aged grown up kids

Prim Primary Need Life Insurance ary Need Insurance Product

Asset creation Asset creation protection Wealth creation plans

Product

Life

& Wealth creation and mortgage protection plans

Children's education, Education insurance, mortgage protection & Asset creation and wealth creation plans protection with Planning for retirement & Retirement solutions & mortgage protection asset protection Health plans Health Insurance

Across all life-stages

Characteristics of Life Insurance Sharing of risks Cooperative device Evaluation of risk Payment on happening of a special event The amount of payment depends on the nature of losses incurred. The success of insurance business depends on the large number of people insured against similar
risk.

Insurance is a plan, which spreads the risk and losses of few people among a large number of
people.13
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 The insurance is a plan in which the insured transfers his risk on the insurer. Insurance is a legal contract which is based upon certain principles of insurance which includes
utmost good faith, insurable interest, contribution, indemnity, causes proximal , subrogation, etc.

The scope of insurance is much wider and extensive.

Functions of Insurance Primary functions

1.Provide protection: - Insurance cannot check the happening of the risk, but can provide for the losses of risk. 2.Collective bearing of risk: - Insurance is a device to share the financial losses of few among many others. 3.Assessment of risk: - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. 4.Provide certainty: - Insurance is a device, which helps to change from uncertainty to certainty.
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 Secondary functions
1.Prevention of losses : - Insurance cautions businessman and individuals to adoptsuitable device to prevent unfortunate consequences of risk by observing safety instructions.

2.Small capital to cover large risks: - Insurance relives the businessman from security investment, by
paying small amount of insurance against larger risks and uncertainty. 3.Contributes towards development of larger industries.

Other Functions
Means of savings and investment :Insurance companies are business houses. The product they sell is financial protection. To succeed and survive, they must cover their costs, which include payments to cover the losses of policyholders, as well as sales and administrative expenses, taxes and dividends.

Liberalization of Indian Insurance

1994: Insurance sector invited private participation to induce a spirit of competition amongst the various insurers and. to provide a choice to the consumers. 1997: Insurance regulator IRDA was set up as there felt the Feed: To set up an independent regulatory body, that provides greater autonomy to insurance companies in order to improve their performance, In the first year of insurance market liberalization (2001) as much as 16 private sector companies including joint ventures with leading foreign insurance companies have entered the Indian insurance sector. Of this, 10 were under the life insurance category and six under general insurance. Thus in all there are 25 players (12-life insurance and l3-general insurance) in the Indian insurance industry till date.

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Players in Indian insurance Industry

1. Life insurers Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers: Life Insurance Corporation of India (LIC)

2. General insurers: General Insurance Corporation of India (GIC ) with effect from Dec'2000, a National Reinsure GIC had four subsidiary companies, namely with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies. 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited 4. United India Insurance Company Limited. Yr: 2000-2007: Insurance Industry in the year 2009-2010 had 15 new entrants, namely:

Life Insurers
S.No. 1 2 3 4 5 6 Name of the Company Max New York Life Insurance Co. Ltd. HDFC Standard Life Insurance Company Ltd. ICICI Prudential Life Insurance Company Ltd. Om Kotak Mahindra Life Insurance Co. Ltd. Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd.

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7 8 9 10 11 12 13 14 15

SBI Life Insurance Company Limited ING Vysya Life Insurance Company Private Limited Allianz Bajaj Life Insurance Company Ltd. MetLife India Insurance Company Pvt. Ltd. Reliance Life Insurance Company Ltd. Shriram Life Insurance Company Ltd. Sahara India Life Insurance Company Ltd. Bharti AXA Life Insurance Company Ltd. Aviva Life Insurance Company Ltd.

COMPETITORS

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ROLE OF IRDA IN INSURANCE SECTOR

IRDA plays an important role in insurance sector giving important guide lines to various companies in the area of insurance. The IRDA's green signal to insurance companies for investments in venture
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capital funds would provide a boost in growth pertaining to the infrastructure segment. The insurance companies would be allowed to invest about 5% of the total investment in the venture capital funds pertaining to infrastructure based projects. The total aggregate of the assets under the life insurance companies is Rs 699,375 crores. The proposed alterations in the regulations pertaining to investments of the insurance companies were settled by the Insurance Regulatory and Development Authority of India (IRDA), at the board meeting on the 25th of March 2008. Several other alterations were also done with the investment norms.The other important norm is the expansion of the sanctioned investments category, which would also include the mortgaged securities and the initial public offerings unlike previously when these two were not included. The proposal would be submitted to the Insurance Regulatory and Development Authority of India (IRDA) board for approval. The final draft was published in the Gazette of the Central Government at the end of March 2008. The alterations would help in developing the instruments of investment and provide flexibility for insurers. The alterations would provide more margins pertaining to the investments in certificates of deposit issued by the banks and term deposits. At present the insurance companies may invest about 10% of its investment funds to a particular sector. The Insurance Regulatory and Development Authority of India (IRDA) constituted a working group in the year 2006 to probe the existing investment regulations and provide review on the present statutory advices and the trends of investments for insurance companies.According to the Insurance Regulatory and Development Authority (IRDA), the private insurers had collected premium income from new business of about Rs. 18,980 crores, in 2007.

ADVANTAGES OF LIFE INSURANCE

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1. It is superior to an ordinary saving plan : - Unlike other saving plans, if affords full protection against risk of death. In case of death, the full sum assured is made available under a life assurance policy; whereas under saving scheme the total accumulated saving alone will be available. The later will be considerable less than the sum assured, if death occurs during early years. 2. Easy settlement & protection against creditors: - The life assured can name person(s) called Nominee to whom the policy money would be payable in the event of his death. The proceeds of a life policy can be protected against the claim of the creditors of the life assured by effecting a valid assignment of the policy. 3. Ready marketability & suitability for quick borrowing: - After an initial period, if the policyholder finds him unable to continue payment of premiums, he can surrender the policy for a cash sum. Alternatively, he can tide over a temporary difficulty by taking loan on the sole security of the policy without delay. Further, a life insurance policy is sometimes acceptable as security for a commercial loan. 4. Tax Relief: - The Indian Income-Tax allows deduction of certain portion of the taxable income, which is diverted to payment of life insurance premiums from the total income tax liability. When this tax relief is taken into account, it will be found that the assured is in effect paying a lower premium for his insurance.

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Chapter-3 COSTUMER PERCEPTION ON LIFE INSURANCE

INTRODUCTION
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Perception is the process by which organisms interpret and organize sensation to produce a meaningful experience of the world. Sensation usually refers to the immediate, relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose, tongue, or skin. Perception, on the other hand, better describes one's ultimate experience of the world and typically involves further processing of sensory input. In practice, sensation and perception are virtually impossible to separate, because they are part of one continuous process. Thus, perception in humans describes the process whereby sensory stimulation is translated into organized experience. That experience, or percept, is the joint product of the stimulation and of the process itself. Relations found between various types of stimulation (e.g., light waves and sound waves) and their associated percepts suggest inferences that can be made about the properties of the perceptual process; theories of perceiving then can be developed on the basis of these inferences. Because the perceptual process is not itself public or directly observable (except to the perceiver himself, whose percepts are given directly in experience), the validity of perceptual theories can be checked only indirectly. Historically, systematic thought about perceiving was the province of philosophy . Philosophical interest in perception stems largely from questions about the sources and validity of what is called human knowledge (epistemology). Epistemologists ask whether a real, physical world exists independently of human experience and, if so, how its properties can be learned and how the truth or accuracy of that experience can be determined. They also ask whether there are innate ideas or whether all experience originates through contact with the physical world, mediated by the sense organs. As a scientific enterprise, however, the investigation of perception has especially developed as part of the larger discipline of psychology. For the most part, psychology bypasses the questions about perceiving raised by philosophy in favors of problems that can be handled by its special methods. The remnants of such philosophical questions, however, do remain; researchers are still concerned, for example, with the relative contributions of innate and learned factors to the perceptual process. Such fundamental philosophical assertions as the existence of a physical world, however, are taken for granted among most scientific students of perceiving. Typically, researchers in perception simply accept the apparent physical world particularly as it is described in those branches of physics concerned with electromagnetic energy, optics, and mechanics. The problems they consider relate to the process whereby percepts are formed from the interaction of physical energy (for example, light) with the

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perceiving organism. Of further interest is the degree of correspondence between percepts and the physical objects to which they ordinarily relate. In philosophy, psychology, and cognitive science, perception is the process of attaining awareness or understanding of sensory information. The word "perception" comes from the Latin words perceptio, percipio, and means "receiving, collecting, action of taking possession, apprehension with the mind or senses. Perception is one of the oldest fields in psychology. The oldest quantitative law in psychology is the Weber-Fetcher law, which quantifies the relationship between the intensity of physical stimuli and their perceptual effects. The study of perception gave rise to the Gestalt school of psychology, with its emphasis on holistic approach.

Types of Perception
Two types of consciousness are considerable regarding perception: Phenomenal (any occurrence that is observable and physical) and Psychological.

The difference every sighted person can demonstrate to him- or herself is by the simple opening and closing of his or her eyes: phenomenal consciousness is thought, on average, to be predominately absent without senses such as sight. Through the full or rich sensations present in senses such as sight, nothing by comparison is present while the senses are not engaged, such as when the eyes are closed. Using this precept, it is understood that, in the vast majority of cases, logical solutions are reached through simple human sensation. The analogy of Plato's Cave was coined to express these ideas. Passive perception can be surmised as the following sequence of events:--

Surrounding Input (senses) processing (brain) Output (re-action).

Although still supported by mainstream philosophers, psychologists and neurologists, this theory is nowadays losing momentum. The theory of active perception has emerged from extensive research of sensory illusions, most notably the works of Richard L. Gregory. This theory, which is increasingly gaining experimental support, can be surmised as dynamic relationship between "description" (in the brain) senses surrounding, all of which holds true to the linear concept of experience.
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Preconceptions can influence how the world is perceived. For example, one classic psychological experiment showed slower reaction times and less accurate answers when a deck of playing cards reversed the color of the suit symbol for some cards (e.g. red spades and black hearts). There is also evidence that the brain in some ways operates on a slight "delay", to allow nerve impulses from distant parts of the body to be integrated into simultaneous signals.

Theories of Perception
Two major classes:

Bottom-up: perception builds up hierarchically from a set of primitive "features" to our

internal representations. Top-down: perception starts with a set of primitives, but our perceptual experience is

influenced by higher-level processes, such as knowledge and context. Bottom-up theories All bottom-up theories rely on the notion that perception builds upwards from a foundation of primitives to a representation our cognitive system can use. This takes place without any influence from higher cognitive processes. Five main theories are as follows: Direct perception

Precursor to behaviorism Perception is a direct result of stimulus energy affecting receptor cells. No higher cognitive processes or internal representations are necessary

Template/Exemplar theory

We store examples of all the objects we have seen as exemplars or templates. We compare a perceived object to this set of exemplars until we find a match.

Proto type theory

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Instead of storing many exemplars or rigid templates, we store a prototype, which is kind of like the average of an object. We compare a perceived object to these prototypes until we find the closest match. Feature theory

Perception starts with the identification of basic features that are put together into more complex objects, which are put together into more complex objects, etc. until we identify an object. Example: Pandemonium Structural description theory

Kind of like a three-dimensional version of feature theory, where rather than having lines and corners as the basic features, simple geometric shapes, called geons, are the basic features. We recognize objects by matching the geons we are looking at to the stored geons in memory.

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Chapter-4 Research Methodology

OBJECTIVE OF THE STUDY

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The main purpose of the project is to check the customer perception towards HDFC Standard Life Insurance. To study about Consumers views about the HDFC Standard life Insurance.
To study about the customer preferences towards different insurance policies offered by

HDFC.
To study about the satisfaction level of customer towards HDFC Standard Life Insurance. To Study the reason for the investment in HDFC Standard Life Insurance. To study about services avail by HDFC Standard Life Insurance.

Research Methodology Design of Research

The research will be exploratory in nature. A population of peoples who take Insurance from HDFCSLI will be considered for this study. I will try to explore about the Insurance policy which would help in analyzing the perception of the customer. Effort will be made to throw light on most of
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the factors which have either indirect or direct effect on the behavior of the customer. I will also explore the impact of home loans on the market share of the banks.

Sampling Plan Population

The study aimed to include the customers of HDFC in Malout and Bathinda for the purpose of customer perception towards HDFC SL.

Sample Size
A Sample size of 70 respondents is taken for the current study because it is not possible to cover the whole universe in the available time period. So it is necessary to take the sample size.

Sampling technique
The sampling technique is probabilistic sampling more specifically the random convenient and judgemental sampling is used. As in probabilistic sampling the select unit for observation with known probabilities so that statistically sound assumptions are supported from the sample to entire population so that we had positive probability of being selected into the sample

Sources of Data
i. Primary Data ii. Secondary Data I use primary source of data that is structured questionnaire. As the bank is established from so many years, so many researchers have done research on this topic, so we will find secondary data also and also use this data for the help of this research. So, this research data will collected from the primary source and secondary source. Our method of collecting the data is from the questionnaire that will be filled by the respondent from the sample, it will be structured questionnaire.

Tools and Techniques

As no study could be successfully completed without proper tools & techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently and I am very thankful to all those tools for helping me a lot. Basic tools which I used for project are: 38

1. PIE CHARTS 2. TABLES Pie charts are very useful tools for every research to show the result in a clear, simple way. Because I used pie charts in my project for showing data in a systematic way. So I need not necessary for any observer to read all the theoretical detail, simple on seeing the charts anybody that what is being said.

Technological Tools:
1. MS WORD 2. MS-EXCEL

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CHAPTER- 5 DATA ANALYSIS AND INTERPRETATION

1.PROJECT FINDINGS & ANALYSIS I have presented below the project findings and analysis, addressed to the respondents to gauge the perception and consumer behavior of the people toward HDFC life insurance. Market share of the key players in the life insurance sector in India.

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S AL ES
5% 4% 3% 7% 1% 2%1% 22% ICICI Pru Bajaj Allianz SBI Life HDFC Standard Birla Sunlife Reliance Life Max New York 8% Tata Aig 14% Aviva Kotak Mahindra 8% 7% 10% 8% Met Life ING Vysya ShriramLife Others

INTERPRETATION In life insurance sector ICICI Pru is the leading life insurance company in private sector, followed by Bajaj Allianz, SBI life, HDFC standard( 7%), Birla Sun life and others.

2.Occupation of Respondent
Table2
Occupation No. Of Persons(%) Service 52% Business 38% Others 10%

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INTERPRETATION It was founded that customer who have taken the policy. service 52% ,business 38% and Others 10%

3.Annual Income of the customer Table3

Income No. Of Persons(%) Below 1lac 10% 1lac-2lac 34% Above 2lac 56%

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INTREPRETATION
It was found that 10% respondents had below 1 lac income, 34% had income 1lac-2 lac ,and (56%) majority of the respondents had income above 2lac.

4.Reasons For Investment The question was asked to know that what is the reason for the investing in insurance Plans in HDFC SLI . Table4
Reason Future Investment No. Persons(%) Of 15% Good 12% 58% 15% Schemes Future Security Tax Deduction

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70% 60% 50% Percentage 40% 30% 20% 10% 0% Future Investment Schemes good Future security Tax deduction Investment Reason 15% 12% 15% 58%

INTERPRETATION The majority of customer invest it as future security .

5.Experience after investing in Insurance plans of HDFC SLIC. The question was asked to know that what is the Experience after Investing in HDFCSL bank . Table 5
Bank NO. Of Persons(%) Good 31% Averagely Satisfied 63% Cheated 6%

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INTERPRETATION It was found that 63% are averagely satisfied with their investment.

6. Preference for HDFC bank The question was asked to know that what is the reason for preferring HDFC bank by the customers .

Table6
Preference for HDFC No. Of Persons(%) 56% 18% 22% 45 Better Service Better Returns Agent Known Attractive Plans

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INTERPRETATION This Graph shows that 56% respondents preferred HDFC Bank because of better Services, 18% because of Better Returns, 22% because of Agent Known ,4% because of Attractive plans.

7.Satisfied with the policy:

The question was asked to know that what percentage of customers is satisfied with the policies. Table7
Satisfied No. Of Persons(%) Yes 71% NO 29%

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INTERPRETATION
It was founded that majority of customer are satisfied with their current policy.

8.Premium Amount The question was asked to know about how is the premium amount to be paid by the respondents.
Table 8
Premium No. persons(%) 47 Of Satisfactory 6% Average 90% Dissatisfactory 4%

INTERPRETATION It was found that 90% respondents are averagely satisfied with the premium amount.

9. Returns in Insurance Policies The question was asked to know about the returns in Insurance policies. Table 9

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Returns No. Of persons(%)

Very good 8%

Good 30%

Average 34%

Poor 12%

INTERPRETATION
It was found that majority of the respondents says that returns are averagely satisfied.

10.Value of Insurance

The question was asked to know about respondents.

the value of the Insurance policy of the

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Table10
Value No. persons(%) Of <10000 6% 10000-25000 20% 25000-50000 46% 50000-100000 12% >100000 16%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

46% 20% 6% <10000 10000-25000

g a t n c r e P

12% 25000-50000 50000-100000

16% >100000

Value of Insurance

INTERPRETATION It was found that majority of the customer have their insurance value in between 25000-50000.

11.Which sector customer chose public or private? Table11

Sector No. persons(%) 50 Of Public 36% Private 64%

34% Public Private 66%

INTERPRETATION:
After the survey it was found that still major portion of customers go for public insurance companies, but with the entry of more and more private companies the scenario is changing rapidly, people need of more and better returns are opting for private companies, and this can be justified by the increasing market share of private companies in the Indian insurance sector. There are various ways in which private companies are found much more lucrative than public companies and the fact which support this statement are as follows: 1.Versatility of products 2.Efficient fund managers 3.Better customer services 4.More returns 5.Regular follow up 6.Quicker settlement

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12.Charges in Insurance Policies of HDFC Standard Life Insurance. The Question is asked to the respondents about the charges for the policy. Table12
Charges No. persons(%) Of High 24% Average 61% Low 15%

INTERPRETATION
61% respondents says that charges are low in HDFC SLI Policy.

FINDINGS
Majority of the customers are satisfied with HDFC Bank.
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Majority of the customers prefer HDFC bank because of better services and extra services offered by HDFC Bank.

The majority of the customers found services of the bank are average.

Majority of the respondents are found the bank is average in maintaining the good customer relationship.

The perception of the majority of the customer regarding the bank is good because majority of the customers are satisfied with the bank and they also recommend the products of the bank.

LIMITATIONS OF THE STUDY

My study is totally based on the perception of the people that what they think about the

insurance policy. Some respondents were reluctant to divulge personal information which can affect the validity of all responses.
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 A small number of 70 also does not show the pattern of the whole city. Time Period was also less for the proper analysis of the study. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. This research study was taken in a limited area only (i.e. Malout and Bathinda city) and findings may vary if the area of study is increased or changed. Sometimes wrong information was provided by respondents which needed to be cross checked & verified.

SUGGESTIONS & RECOMMENDATIONS

To make people aware about the benefits of HDFC standard life insurance policy, following promotional activities should be carried out: Printed media
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 Hoardings & Banners Continues television commercials. Company should come up with more branches in near by villages with the objective and goals to meet the demands & expectations of the public in order to provide people with better customer satisfaction. Since HDFC Standard Life Insurance Company Ltd is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they increase the number of branches and diversify their business to various other regions. HDFC Standard Life Insurance should have more children plans, and more help line plans. They should provide more information to the customer so that they become more aware about insurance

CONCLUSION
HDFCSLIC is the renounce industry in the insurance sector. It believes in quality not in quantity. HDFC have total 12 group companies. It is the first insurance company who has gotten the license of insurance in firstly. HDFC SL entered the scene in 2000.

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 It is a joint venture between the housing finance major HDFC and the UK insurance giant Standard Life. Bajaj have a market share of around 8% and HDFC SL and ICICI fighting at 3rd place with around 7.5%. HDFC is currently focusing on the Pension Plan and the Child Plan aiming to cash in on the potential of these segments. HDFCSLIC Bank's performance is rated as satisfactory. HDFC Bank is preferred the most because of higher returns and better plans and services. 66% of respondents agree that private sector banks are better than public sector banks.

BIBLIOGRAPHY

WEBSITES REFFERED: WWW.MONEYOUTLOOK.COM

WWW.INSURANCE.IND.COM
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 WWW.HDFCINURANCE.COM

BOOKS

REFFERED
E. Gordon & K. Natarajan,

Financial Markets & Services, ,

Himalaya Publishers Dr. Singh, Avtar, Principles of Insurance Law, S. Chand & Sons, Delhi,2003

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QUESTIONNAIRE
This is a questionnaire to understand the Consumers Perception about HDFC Standard Life Insurance Policy. 1. Name: - ________________________ 2. Age:- _________________________ 3. Address:- ________________________ 4. Mob.:- ____________________________ Q1. Your Occupation? o Service o Business o Retired o Student Q2. Your Income ? o Below 1 lac o 100000-200000 o Above 200000 Q3. Reasons for investing in Insurance Plans of HDFC Standard Life Insurance ? o Future Investment o Schemes are good o More security o Needs to save tax Q4. What do you feel after investing in Insurance Plans of HDFC Standard Life Insurance? o Good o Averagely Satisfied with the investment decision o Cheated Q5. Do you invest in Insurance Plans of HDFC Standard Life because of Tax Benefits? o Yes o No Q6 Why do you prefer HDFC Bank? o Better Services o Better returns o Agent Known o Attractive Plans o Others Q7. Are you satisfied with your current Life Insurance Company? o Yes o No Q8. How is the Premium Amount to be paid in Insurance Plans of HDFC Standard Life Insurance Company ? o Satisfactory o Average o Dissatisfactory

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Q9. What is the value of your life insurance? o <10,000 o 10,000-25,000 o 25,000-50,000 o 50,000-1,00,000 o >1,00,000 Q10. How are the Returns in Insurance Policies of HDFC Standard Life Insurance? o Excellent o Very Good o Good o Average o Poor Q11. How are the Charges in Insurance Policies of HDFC Standard Life Insurance? o High o Average o Low Q12. What would you like more in Insurance Policies of HDFC Standard Life Insurance? o More benefits o More security o Others, Please specify Q13.Which sector customer chose public or private? o Public o Private Q14.Any suggestions for improving the service offered by life insurance companies ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

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