A Training Report Submitted In the partial Fulfillment of the Requirement of the Degree of “Masters of Business Administration” YEAR 2007

-08 Submitted To: Punjab Technical University Jalandhar Submitted By: Kulwinder Singh Roll No. 632222363

RIMT- Institute of Management & Computer Technology, Mandi Govindgarh PREFACE
Risk and uncertainties are part of life’s great adventure; Accidents, Illness, Theft & Natural Calamities they all are pillars of this world. To overcome these risks and mishaps this project describes the policies and schemes of HDFC SLIC and ICICI Pru Life Insurance Company. The way these companies provide different benefits to the policyholder. Insurance is Cooperative venture where risk and uncertainties are shared by many. Now days a lot is being done to create awareness among the Insuring Public about the Importance of Insurance in life. In this direction IRDA has planned to create awareness through Electronic and Print media. A study of Life Insurance describes the meaning of various policies, comparison and analysis and changing market scenario.


“If words are considered as symbol of Approval and Taken of appreciation then let the words play the heralding role of expressing my sincere gratitude and thanks”. Any accomplishment requires the effort of many people and this work is no different. I am indebted to MR. TEJ PARKASH THAKUR (Sales Development Manager, HDFC Standard Life Insurance, Baddi) but for whose guidance and patience I would have not been able to accomplish this task. I also owe a great thanks to him for providing me an opportunity to go through summer training, and providing me this golden opportunity to be a part of the said esteemed company and letting me work on this project. I also owe a great thanks to all the staff members of CHANDIGARH branch of HDFC Standard Life Insurance, who helped me in the best possible way to complete this summer training and this report. KULWINDER SINGH


Contents  Preface Certificate Acknowledgement 1) Chapter I Introduction to Topic    6 Benefits of Life Insurance 9 Working of Insurance Business 11 13 18 21 23 24  Insurance as an Investment Tool Development of Insurance in India Indian Insurance at the Cross Roads A Brief History of Insurance Sector Insurance Sector Reforms 2) Chapter II Company Profile HDFCSLIC ICICI Prudential Life Insurance Company 3) Chapter III Research Methodology  Objectives and Limitations 27 28 54 71 4 .

4) Chapter IV Comparative Analysis of Unit Link Plan Data Analysis and Interpretation Findings Conclusion Suggestions 5) Chapter V Appendices   75 78 87 88 89 90 BIBLIOGRAPHY QUESTIONNAIRE 91 90 5 .

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etc. term life. typically a family member or business It is basically risk insurance intended as protection against the financial consequences of the death of the insured person which takes the form of payment of a previously agreed lump sum or pension to a beneficiary. Life Insurance could be said as protection against the death of the insured in the form of payment to a designated beneficiary. It is a coverage that pays out a set amount of money to specified beneficiaries upon the death of the individual who is insured. endowments providing payment either on survival to a specified date or on earlier death and annuities which are paid throughout the annuitant's lifetime but cease on death. It is an agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured. without any endowment insurance component. no payments are due if the insured person survives the term of insurance. universal life. It provides financial security for your family by protecting your 7 . It is an insurance relating to a risk depending on human life. In big terms Life Insurance is a contract agreement between the certificate holder and the insurance company.INTRODUCTION Life Insurance: Definition Life Insurance could be defined as a policy that will pay a specified sum to beneficiaries upon the death of the insured. This includes contracts providing payment on the insured person's death. There are many types of life insurance. including whole life. According to an article on site life-line. It is a policy that will pay a specified sum to beneficiaries upon the death of the insured. providing a specified sum to beneficiaries upon the death of the insured. In the case of pure life insurance. if the insured person dies during the term of insurance.org Life insurance is the foundation of a sound financial plan.

And also that there is no federal income tax on life insurance benefits. There are many types of Life Insurance but they generally fall into two categories: 1. then start by gathering all personal financial information and estimating what the family will need after one is gone. but it can be complicated. It pays a benefit only if one dies during the term. Term Insurance 2. Term Insurance: It provides protection for a specific period of time. The proceeds from a life insurance policy could mean that the family won't have to sell assets to pay outstanding bills or taxes. More specifically. one rule of thumb is to buy life insurance equivalent to five to ten times ones annual gross income. and ensure that dependents are not burdened with debt. and estate taxes). The family also may need funds to help them readjust: perhaps to finance a move. Choosing a life insurance product is an important decision. While there's no substitute for evaluating specific situation. tuition. burial costs. or pay expenses while job hunting. This cash (the death benefit) replaces the income one would have provided and can meet many important financial needs. As with any major purchase. Permanent Insurance 1. To determine how much. including ongoing expenses (such as day care. it is important that one should understand his or her family's needs. against the uncertainties of life. if any.financial resources. Most people with dependents need life insurance. So me term insurance policies can be renewed when you reach the end of the term. Many policies require that you present evidence of insurability at renewal to qualify for the lowest rates. life insurance provides cash to the family after death. It can help pay the mortgage. such as your present and future income. which can be from one to 30 years. 8 . life insurance one needs. run the household. The premium rates increase at each renewal date. send kids to college. or retirement) and immediate expenses at the time of death (like medical bills.

Encourages and Forces Thrift: A savings deposit can be easily withdrawn. is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. In comparison. Thus. the potential financial loss to the family of the policyholder is sizable. permanent insurance. The payment of life insurance premiums. BENEFITS OF LIFE INSURANCE 1. Superior to Any Other Savings Plan: Unlike any other saving plan. the insurance company makes available the full sum assured to the policyholder’s near and dear ones. a life insurance policy in effect brings about compulsory savings. In the event of death of a policyholder. any other saving plan would amount to the total saving accumulated till date. such savings can be much lesser than the sum assured.The following points can help you determine if term insurance best suits your needs. a life insurance policy affords full protection against risk of death. become too expensive to continue. such as mortgages or car loans. Evidently. If the death occurs prematurely. however. 9 . • It’s good for covering needs that will disappear in time. • The policy generally doesn’t offer cash value or paidup insurance. Advantages Disadvantages • Initial premiums generally are lower than those for • Premiums increase as you grow older. 2. allowing you to buy higher levels of coverage at a younger age when the need for • Coverage may terminate at the end of the term or protection often is greatest.

4. 10 . 7. Administering the Legacy for Beneficiaries: Speculative or unwise expenses quickly cause the proceeds to be squandered. The policy is also acceptable as a security for a commercial loan. Disability Benefits: Death is only the hazard that is insured. these provide for waiver of future premiums and payments of monthly installments spread over certain time period. many policies also include disability benefits. be surrender for a cash value.3. Ready Marketability and Suitability for Quick Borrowing: A life insurance policy can. Typically. 6. a student loan. after a certain time period (generally three years). Easy Settlement and Protection against Creditors: A life insurance policy is the only financial instrument the proceeds of which can be protected against the claims of a creditor of the assured by effecting a valid assignment of the policy. Accidental Death Benefits: Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident. Several policies have foreseen this possibility and provide for payments over a period of years or in a combination of installments and lump sum amounts. 5. It is particularly advisable for housing loans when an acceptable LIC policy may also cause the lending institution to give loan at lower interest rates. for example.

the lower the premiums can be. The more customers an insurer has. Moreover. • Consumers who do not qualify for property insurance in the private market may obtain it through insurance industry operated plans. (b) 100% of the premium paid is deductible from your total taxable income. THE IMPORTANT FEATURES OF INSURANCE ARE: • State insurance departments regulate the type of investments companies are permitted to make. WORKING OF INSURANCE BUSINESS Insurance companies receive premium from a large number of people buying insurance. NSC etc. Tax Relief: Under the Indian Income Tax Act.8. the cost of insurance is a very negligible. 11 . When these benefits are factored in. • Investment profiles of companies differ depending on what type of insurance they underwrite. • Each state enforces laws to protect consumers against unfair discrimination in the provision of insurance. Insurance is fundamental to every aspect of modern life and commerce. the following tax relief is available: (a) 20% of the premium paid can be deducted from your total income tax liability. it is found that most policies offer returns that are comparable/or even better than other saving modes such as PPF. and the less likely that insurer is to take a loss that wipes everyone out.

• The insurance industry does not benefit from federal deposit insurance. The major benefit of insurance is the indemnification of insurers for covered losses. enabling people to borrow money and reducing anxiety. Insurance companies pay for insolvencies in the industry through a system of state Guaranty Funds. In addition. Insurance and its Benefit to Society Insurance is a system by which a person. encouraging accident prevention. insurance companies are naturally interested in lowering the number of accidents and associated 12 . To indemnify is to restore the party that has had a loss to the same financial position as before the loss occurred. when a business is covered for a large liability loss that would have otherwise driven the firm into bankruptcy. Through indemnification. the family is less likely to be dependent on relatives or public assistance for lodging. insurance contributes to society because the firm continues to provide jobs for its workers. Insurance helps society by reimbursing people and businesses for covered losses. Likewise. Concerned with safety While insurance exists to pay the losses that result from accidents. When a family’s house is destroyed by fire and the loss is covered by insurance. businesses and organizations to maintain their economic position and not suffer financial setbacks causing a burden to society or to other individuals. business or organization transfers a risk to an insurance company. insurance allows individuals. investing in capital country’s capital markets and bond markets. products for its customers and business for its suppliers. insurance indemnifies the injured persons. which reimburses the insured for covered losses and provides for sharing the costs of losses among all insurers.

Insurance provides funds to help businesses grow and create jobs. provides local governments across the United States with the means to build. Society benefits when losses are controlled – lives are saved. most lenders also require that the dwelling be covered by homeowner’s insurance. Even though mortgage lenders approve an applicant for a home loan based on the applicant’s credit worthiness. Insurers also engage in a variety of accident prevention and reduction activities that reduce costs to policyholders. Funds are also lent to businesses. airports. injuries caused by defective products. loss control representatives. maintain and repair municipal infrastructure — schools. partly because these funds are available from insurance companies. Along with housing interests. in the form of bonds. Likewise. bridges.costs. particularly those located in urban areas. roads. explosions. fires. Insurers and related organizations employ thousands of safety engineers. Lending to municipalities. Premium funds that are not immediately needed are lent to government and businesses. INSURANCE AS AN INVESTMENT TOOL : Insurance invests in the economy. Support the provision of credit Insurance provides support for credit. providing them with the means to purchase buildings. Compared to less-developed countries. job injuries. sewers. and other specialists to help prevent auto accidents.and moderate-income communities.. the insurance industry is probably the most active voluntary investor in low. the developed countries enjoy a higher standard of living. injuries are prevented and property is preserved. equipment and supplies. and other accidental losses. a business applying for a loan to purchase inventory might be required to show that the inventory is insured before the loan is granted. Reduces anxiety 13 .

Risk reduction—involving strategies to minimize the amount of loss if a loss does occur. involving strategies such as: • • Risk avoidance—involving the elimination of a threatened financial loss. insurance helps businesses avoid bankruptcy and keeps workers employed and local economies healthy. Insurance and Risk Management Planning in the Context of Personal Financial Planning In personal financial planning (PFP). risk management and insurance planning results in clients who are aware of the range of significant risks to their financial wellbeing and who are adequately and properly protected from the loss that could result from those risks. Periodic reviews help clients understand that life changes. Risk Management Strategies Risk Management is much broader than the purchase of insurance policies. By shouldering the burden of unexpected or catastrophic losses. 14 . It also contributes to a stable society where people can plan for the future without an undue fear of catastrophic loss. and personal loss. Insurance and Risk Management Planning Insurance and Risk Management Planning is the process of identifying the source and extent of an individual’s risk of financial. and developing strategies to manage exposure to risk and minimize the probability and amount of potential loss. physical. affect risk management and insurance coverage. such as a job change or divorce.Insurance also reduces anxiety because the insured knows insurance will provide indemnification if a covered loss occurs.

the UK. Insurance happens to be a mega opportunity in India.• Risk transfer—sharing the burden of loss. Japan is second with just under a quarter of the world’s volume.900 domestic insurance companies. economy. and select and acquire the appropriate policies. Altogether. nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards.300 companies sell some form of property/casualty insurance. Yet. evaluate alternative insurance policies. hold another quarter of the premium volume. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. • Risk retention—involving either the acceptance of some of the economic burden of a loss.3 million jobs. Together with banking services. About 3. it adds about 7 per cent to the country’s GDP. Insurance as a Risk Management Strategy Insurance is just one aspect—but a very critical aspect—of risk management planning. The insurance industry is a major contributor to the U. Germany. South Korea and Italy combined. the insurance industry provides 2. Government authorities in the various states regulate the operations of 7.S. or continuing to participate in activities with risks that cannot be transferred or shared. A key aspect of insurance planning understands what is available from insurance companies to assist in offsetting the economic losses associated with a particular risk. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. From this point you can assist your clients to inventory what risks are to be protected. France. A Profile of the world Insurance Industry The United States is the world leader in insurance with 31 percent of the premium volume in 2005. This strategy includes the use of insurance to transfer some of the burden of loss to the third party insurer. identify gaps in coverage. With largest number of life insurance policies in force in the world. 15 .

Treasury bills and notes. Life insurance companies primarily issue life insurance policies and annuities. administrative expenses. To illustrate the short-term nature of property/casualty investments. or earthquakes a greater percentage of premiums will be paid out in claims.And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. customers receive back the vast majority of premiums in claims payments. out of $100 paid in homeowners’ premiums. Generally. How Insurance Companies Work Unlike banks. This itself is an indicator that growth potential for the insurance sector is immense. insurance companies are chartered to provide insurance. Because property/casualty policies are short-term – usually one-year – state insurance laws require most property/casualty investments to be short-term and highly liquid. consider that in an average year. hurricanes. 3 The remainder goes to agent commissions. in good years. and. such as fires. policyholder protection funds 4 which protect against future catastrophic loss. This reinvestment not only benefits policyholders. mutual funds. it benefits the people who rebuild the structure after the tornado. property and casualty insurers cannot invest in real estate. The billions of dollars paid by the industry in claims is itself "reinvestment" in the local community when disaster strikes. other than their own buildings and property. As they do for 16 . They generally do not extend credit and are often precluded from doing so by law and regulation. Legally permissible investments include cash. specified types of debt securities. the industry pays out $74 in claims. Over time. fix the car damaged by hail or sell the appliances and cabinets needed to repair the kitchen damaged by fire. and preferred stock. mortgage-backed securities. Policyholder premiums are invested in compliance with state insurance laws for the benefit of policyholders to ensure that the company can meet its obligations under the terms of the policies. When catastrophes strike. operating costs.

life insurance companies generally are permitted longer-term investments than those permitted for property/casualty companies. or appointed by the governor. thrifts and credit unions. who leads safety and soundness examinations and reviews investments and the adequacy of policy reserves. corporate stock and other types of equity and debt securities. Legally permissible investments include cash. state insurance laws establish the types and amounts of permissible investments for life companies. Unlike banks and thrifts. Each state regulator must license any company that wants to do business in his or her state. Reflecting the long-term nature of a life insurance policy. have its headquarters in California. They must be licensed in every state in which they do business. Insurance companies must be "domiciled" in a single state and are primarily regulated by the home state regulator. Primarily the home state regulator. unlike banks. Insurance departments are charged with regulating the safety and soundness of insurance companies and consumer protection. For example. a company may not have a physical presence in any of its licensed states.property/casualty companies. and review and approve rates and policy forms to be used by any licensed company. and be licensed for business in 40 states. However. mutual funds. conducts safety and soundness regulation. run by a commissioner or director who may be elected. there may be no connection between a company’s physical location and its home state or other states in which it is licensed. some insurance company failures will inevitably occur. most insurance companies have no geographic community. the insurance 17 . mortgage-backed securities. In the case of automobile insurance. and real estate. the company likely would have claims offices and perhaps agents in each of the states in which it is licensed. an insurance company may be domiciled in Illinois. In a competitive environment. Treasury bills and notes. In the case of more specialized coverage such as director’s and officer’s liability insurance. loans. However. How Insurance is Regulated Insurance regulation is conducted by each state through its department of insurance.

Foreign Direct Investment (FDI) must pour in as anticipated. the Life Insurance 18 . investments must start yielding returns and for the domestic insurance industry . This characteristic of their business makes insurance companies the biggest investors in long-gestation infrastructure development projects in all developed and aspiring nations.industry does not have a government-backed fund to handle insolvency. the customer is pondering whether all the hype created on liberalization will actually benefit him. Instead. With the nation's infrastructure in a state of imminent collapse. The IRDA Bill provides for the establishment of an authority to protect the interests of the holders of insurance policies. And perhaps most importantly it generates long-term investible funds for infrastructure building. for foreign insurers. Development of Insurance in India A thriving insurance sector is of vital importance to every modern economy. The nature of the insurance business is such that the cash inflow of insurance companies is constant while the payout is deferred and contingency related. On the fringe. First because it encourages the savings habit. to regulate. India couldn't have afforded to be lumbered with sub-optimally performing monopoly insurance companies and therefore the passage of the Insurance Regulatory & Development Authority Bill on December 2. 1938. For the Govt. second because it provides a safety net to rural and urban enterprises and productive individuals. 1999 heralds an era of cautious optimism where stakes are high for all parties concerned. each state has a life insurance guaranty fund and a property/casualty insurance company guaranty fund. of India.their market penetration should remain intact. The guaranty funds ensure that the insolvent company is retired from the market in an orderly manner that gives maximum protection to the public. promote and insure orderly growth of the insurance industry and amend the Insurance Act. This is the most compelling reason why private sector (and foreign) companies which will spread the insurance habit in the societal and consumer interest are urgently required in this vital sector of the economy.

The new bill knows called insurance Regulatory Authority Bill 1999. INSURANCE REGULATION & DEVELOPMENT BILL On Oct. Bills to provide for establishment of an authority to protect the interest of holders of insurance polices and to regulate promote and insure orderly growth of the industry. four part-time members. Powers and Functions of IRDA Section 14 of IRDA Act. 1999 lays down the duties.Act. 1999 the govt. insurance business in India was pegged at $ 6. IRDA As per the section 4 of IRDA Act' 1999. Before privatization. Finally offered IRDA bill for the consideration of the new parliament. 21st. The Authority is a ten-member team consisting of (a) (b) (c) a Chairman. The bill allows foreign equity stake in domestic private insurance companies to a maximum of 26 per cent of the total paid-up capital and seeks to provide statutory status to the insurance regulator. which was constituted by an act of parliament) specify the composition of Authority. 1972. five whole-time members. powers and functions of IRDA. 19 . Insurance Regulatory and Development Authority (IRDA. 1956 and the General Insurance Business (Nationalization) Act.6 Billion whereas industry leaders expected at that time that privatization will increase it to $ 40 Billion within next 3-5 years. (all appointed by the Government of India) Duties.

1938 (4 of 1938). nomination by policy holders. (b) Protection of the interests of the policy holders in matters concerning assigning of policy. undertaking inspection of. advantages.(1) Subject to the provisions of this Act and any other law for the time being in force. renew. 20 . insurable interest. the powers and functions of the Authority shall include. suspend or cancel such registration. withdraw. (2) Without prejudice to the generality of the provisions contained in sub-section (1). conducting enquiries and investigations including audit of the insurers. code of conduct and practical training for intermediary or insurance intermediaries and agents. (a) Issue to the applicant a certificate of registration. (f) Promoting and regulating professional organizations connected with the insurance and re-insurance business. terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act. surrender value of policy and other terms and conditions of contracts of insurance. settlement of insurance claim. (c) Specifying requisite qualifications. intermediaries. (g) Levying fees and other charges for carrying out the purposes of this Act. (e) Promoting efficiency in the conduct of insurance business. (h) Calling for information from. (d) Specifying the code of conduct for surveyors and loss assessors. (i) Control and regulation of the rates. promote and ensure orderly growth of the insurance business and re-insurance business. the Authority shall have the duty to regulate. modify. insurance intermediaries and other organizations connected with the insurance business.

(j) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries. It is fitting that New India Assurance. (m)Adjudication of disputes between insurers and intermediaries or insurance intermediaries. (l) Regulating maintenance of margin of solvency. and (q) Exercising such other powers as may be prescribed. (p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. 21 . the first insurer fully set up by Indians in 1919 and the country's largest nonlife insurer today should lead the way in product innovation. (k) Regulating investment of funds by insurance companies. (o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f). (n) Supervising the functioning of the Tariff Advisory Committee. All of us present here are thankful to the Honorable Finance Minister for taking some time off from his extremely busy schedule and making himself available for launching of this new insurance product. INDIAN INSURANCE: AT THE CROSSROADS I am grateful to the New India Assurance Company Limited for inviting me to this special function organized on the occasion of launching a new financial product for credit insurance by the Honorable Union Minister of Finance.

Those opposed to liberalization have pointed out that the very need for nationalization arose in the Indian insurance sector because of a string of failures. it is then more likely that the premium would be actuarially fair. especially in view of the emergence of the banc assurance market.In an uncertain world.the premium – is intrinsically related to the probability of the adverse situation arising. the European Directive on Life and Non-Life Insurance classify the life business into 7 classes (including unit linked insurance and 2 22 . the sustainability of the competitive process. by their very nature. Insurance allows individuals to transfer risks by participating in risk pooling arrangements. including the Reserve Bank of India. If the number of insurers increase. Viewed in this light. the benefits to the economy and second. the price of insurance . the on-going program of insurance liberalization has to be evaluated from two angles: first. The scope for product innovation is underscored by the fact that the insurance business is often classified in great detail in many developed countries. For instance. especially. It is. therefore. the liberalization of the insurance sector is as much a challenge to the insurers as to the supervisors. Obviously. we are able to build the proper safeguards for the functioning of the industry. given the past history of insolvency before the nationalization of the insurance industry. necessary to recognize that the present program of liberalization would be successful.is the cumulating of a long debate.and in India . The proponents of liberalization have argued that a free market would ensure the benefits of competition. if and only if. with niche insurers operating in some of the segments. most of us would like to smoothen our lives (and Consumption patterns) by balancing the favorable and unfavorable events. The opening up of the insurance industry in less developed countries . Insurers provide a medium for risk pooling. increase when the number of participants’ increase and the risks they face are uncorrelated. Thus. in which each one sets aside a bit for the rainy day when times are good and draws on the fund in adversity. as competition preclude monopolistic rents that could be charged by the insurer. risk pooling advantages. In a sense. on the basis of business specialization and risk and claims characteristics.

British credit insurers do contribute to an international database through which commercial. The credit insurance business . individually and increasingly comprehensively – has grown rapidly in the past three decades . the insurance companies have already taken up a number of businesses. in cases of domestic credit. As the insurance business spreads to newer activities.with a worldwide premium of around US $ 5 billion according to a recent study commissioned by the International Credit Insurance Association. the Credit Information Bureau has been recently set up by the State Bank of India. it would be a good idea to build up a co-operative database of their particular risk and claim characteristics. in case of credit insurance. The prerequisite of risk management is. although the insurance sector is bifurcated into life and general by the Insurance Act. The credit insurance expansion has been in terms of both new players in both the private and the public sectors and new products. For instance. In order to develop an institutional mechanism for sharing of credit related information. export credit and political risk. in collaboration with HDFC Limited and foreign technology partners. Credit insurance has also recently been used to enhance asset securitization deals. Bouts of economic crises have enlarged the scope of credit insurance from the original role of protecting the capital at risk in accounts receivable to an essential part of comprehensive credit and financial management.especially in Europe . Of course. information. in India.pensions) and non-life insurance into 17 classes (including credit insurance) for independent authorization. Some of the important milestones in the life insurance business in India are: 23 . A BRIEF HISTORY OF THE INSURANCE SECTOR The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.which offers protection to suppliers of goods and services against the effects of debtor insolvency. of course.

INSURANCE SECTOR REFORMS In 1993. 5 crore from the Government of India.1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1956. on the other hand. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. Malhotra Committee.. headed by former Finance Secretary and RBI Governor R. 1957: General Insurance Council. 1972 nationalized the general insurance business in India with effect from 1st January 1973. LIC Act. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. set up. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. Malhotra. frames a code of conduct for ensuring fair conduct and sound business practices. 1972: The General Insurance Business (Nationalization) Act. can trace its roots to the Triton Insurance Company Ltd. with a capital contribution of Rs. viz. N. The General insurance business in India. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. the first general insurance company established in the year 1850 in Calcutta by the British. was formed to evaluate the Indian insurance industry and 24 . LIC formed by an Act of Parliament. a wing of the Insurance Association of India. the first company to transact all Classes of general insurance business.

1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity Foreign companies may be allowed to enter the industry in collaboration with the domestic companies Postal Life Insurance should be allowed to operate in the rural market Only one State Level Life Insurance Company should be allowed to operate in each state iii) Regulatory Body The Insurance Act should be changed An Insurance Regulatory body should be set up 25 . The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…” In 1999.recommend its future direction. the committee submitted the report and some of the key recommendations included: i) Structure  overnment stake in the insurance Companies to be brought down to 50% G Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations All the insurance companies should be given greater freedom to operate ii) Competition Private Companies with a minimum paid up capital of Rs. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector.

iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time) v) Customer Service LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans Computerization of operations and updating of technology to be carried out in the insurance industry 26 .Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

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Being an institution that is strongly committed to the highest of quality and excellence. 29 . Founded in 1977. Qatar and Sultanate of Oman.two of India’s leading credit rating agency respectively. One such award is the ‘Ramakrishna Bajaj National Quality Award” for the year 1999. This award was instituted to Award Recognition to Indian Companies for business excellence and quality achievement. for the last 6 years consecutively. to be followed very shortly by HDFC Standard Life Insurance Company for the life endurance and pension products. HDFC is the only company so far to receive this award in the service category. HDFC has won several accolades in the past few years. Helping Indians experience the joy of home ownership. HDFC. HDFC mutual fund products.000 of the total deposit. Its financial strength is reflected in highest safety rating of “FAAA” and “MAAA” awarded by CRISIL and ICRA. it has a depositor base of over 11 lacks customer and a deposit agents force of over 46. HDFC is today the market leader in housing finance in India and has extended financial assistance to more than 15 lacks homes.Promoted companies have emerged to meet the investors and customers needs.HOUSING DEVELOPMENT FINANCE CORPORATION LTD. HDFC’s assets base amount to over 15. HDFC has more than 110 offices in Dubai and 3 more services associates’ insurance Kuwait.000 crore. which demonstrates the tremendous confidence that retail investors have insurance the company. HDFC bank for commercial banking. 73% are sourced from individual and trust depositories.

the total demand for housing is estimated at 2 million units per year and the total housing shortfall is estimated to be 19. All you need is the courage to innovate. the solution for success is customer satisfaction. 30 . stand testimony to our success. As we found out nearly three decades ago.64 million units from urban areas. Objectives & background Housing Finance Sector Against the milieu of rapid urbanization and a changing socio-economic scenario. Now. has been to enhance residential housing stock and promote home ownership. to property related services and a training facility. It is estimated that the budgeted 2 million units would lead to the creation of an additional 10 million manyears of direct employment and another 15 million man-years of indirect employment. from the beginning. in 1977. The housing industry is the second largest employment generator in the country.The road to success is a tough and challenging journey in the dark where only obstacles light the path. our offerings range from hassle-free home loans and deposit products. However. We also offer specialized financial services to our customer base through partnerships with some of the best financial institutions worldwide.4 million units. the demand for housing has grown explosively. of which 12. the skill to understand your clientele and the desire to give them your best Today. success on a terrain like this is not without a solution.76 million units is from rural areas and 6. According to the National Building Organization (NBO). Our objective. The importance of the housing sector in the economy can be illustrated by a few key statistics. nearly three million satisfied customers whose dream we helped realize.

and to promote home ownership. c) transform ideas into viable and creative solutions. Background HDFC was incorporated in 1977 with the primary objective of meeting a social need – that of promoting home ownership by providing long-term finance to households for their housing needs. 1. 100 million. Organization And Management 31 . In order to achieve this investment target. and e) to grow through diversification by leveraging off the existing client base. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. Business Objectives The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner. the National Housing Policy has envisaged an investment target of Rs.500 billion for this sector. Organizational Goals HDFC’s main goals are to a) develop close relationships with individual households. HDFC was promoted with an initial share capital of Rs. d) provide consistently high returns to shareholders.. b) maintain its position as the premier housing finance institution in the country. the Government needs to make low cost funds easily available and enforce legal and regulatory reforms.Having identified housing as a priority area in the Ninth Five Year Plan (1997-2002).

The board primarily focuses on strategy formulation. D M Sukthankar Mr. policy and control. 32 . Keshub Mahindra .Managing Director Ms.Vice Chairman Mr. law. S A Dave Mr. accountancy. B S Mehta Mr. Karnad . Renu S.Executive Director Mr. D N Ghosh Dr. Vijay S. Keki M Mistry . construction and urban policy & development. engineering and marketing. 2007). Board of Directors Mr. D M Satwalekar HDFC has a staff strength of 1388 (as on 31st March.HDFC is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance. S Venkitaramanan Dr. taxation. which includes professionals from the fields of finance. Kelkar Mr. designed to deliver increasing value to shareholders. Shirish B Patel Mr. Ram S Tarneja Mr.Chairman Mr. Deepak S Parekh . N M Munjee Dr.

In the 1990s. The group acquired Prime Health Limited 33 . in 1998 and Standard Life Investments. the group also sought to diversify its operations into areas which complemented its core life assurance and pensions business. was separated into a distinct legal entity in the same year.STANDARD LIFE INSURANCE COMPANY (SLIC) The Standard Life Assurance Company ("Standard Life") was established in 1825 and the first Standard Life Assurance Company Act was passed by Parliament in 1832. with the intention of positioning itself as a broad range financial services provider. Its Canadian branch was founded in 1833 and its Irish operations in 1838. when it opened a branch in Frankfurt. Healthcare & Investments The group set up Standard Life Bank. Standard Life was reincorporated as a mutual assurance company in 1925. with the aim of establishing it as an independent investment management business providing services to both the group and third party retail and institutional clients. Banking. its UK mortgage and retail savings banking subsidiary. which had previously been the inhouse investment management unit of the group’s life assurance and pensions business. Germany with the aim of exporting its UK life assurance and pensions operating model to capitalize on the opportunities presented by EC Directive 92/96/EEC (the “Third Life Directive”) and offer a product range in that market with features which local providers were unable to offer. The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries. This largely remained the structure of the group until 1996.

Sales of these products commenced in 2006. including IT. and employs staff working in the group’s UK and Irish operations (other than SLI. Standard Life Asia Limited (“SL Asia”). which employ their staff directly).(subsequently renamed Standard Life Healthcare) in the United Kingdom in 2000. Standard Life Employee Services Limited (“SLESL”) supplies a wide range of central services to the rest of the group. Service company – Following the group’s strategic review in 2004. Standard Life Asia Limited/Joint ventures – The group’s Hong Kong subsidiary. the group established a service company structure for the provision of central corporate services to the group’s business units. The group’s joint venture in China with Tianjin Economic Development Area General Company (“TEDA”) became operational in 2003. facilities. This service company structure 34 . through which it could sell tax-efficient investment products into the United Kingdom. The group’s joint ventures in India with Housing Development Finance Corporation Limited (“HDFC”) were incorporated in 2000 (in relation to the life assurance and pensions joint venture) and 2003 (in relation to the investment management joint venture). The group’s operations in Hong Kong were established to give the group a presence in the Far East from which it could expand into China. SLB and SLH. legal and human resources services. was incorporated in 1999 as a joint venture and became a wholly-owned subsidiary of Standard Life in 2002. based in Ireland. Standard Life Healthcare expanded in March 2006 with the acquisition of the PMI business of First Assist. Standard Life International Limited – The group also incorporated Standard Life International Limited (“SLIL”) in 2005 for the purposes of providing the group with an offshore vehicle.

was created to enable Standard Life to comply with regulatory restrictions on the provision of non-insurance services and to exploit group-wide synergies. Structure of Standard Life plc The following is a simplified structure diagram Standard Life plc owns all of the businesses and companies in the group. 35 . Standard Life plc is a holding company which is owned by its shareholders (including those Eligible Members who received and retained shares received as a result of demutualization).

36 .

Standard Life Investments (Holdings) Limited (and underneath it. Standard Life Employee Services Limited. Standard Life Investments Limited). Standard Life Assurance Limited and Standard Life's Joint Venture interest in China 37 .Alternative textual explanationStandard Life plc structure Underneath Standard Life plc are Standard Life Healthcare Limited. Standard Life Oversea Holdings Limited.

In Oct. the team conducted market research. Standard Life International Limited and The Standard Life Assurance Company 2006. The next three years were filled uncertainty. (IDFC). Underneath Standard Life Assurance Limited are Standard Life Direct Limited. The Standard Life Assurance Company of Canada). Standard Life Savings Limited. A small project term was set up in UK and India and set about preparatory work. One of many success stories over the last few years has been the actuarial student program. and both ongoing delays in getting the insurance bill passed in parliament. THE PARTNERSHIPS HDFC and Standard Life commenced discussions about possible joint venture.1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life purchased 2% Infrastructure Development Finance Company Ltd. looked at possible information technology. Among other things.1998. The program was designed to identify high caliber individuals who would be sponsored by Standard Life to study for their actuarial qualification in the UK.Underneath Standard Life Oversea Holdings are Standard Life Asia Limited and Standard Life Financial Inc (and underneath it. in Jan. to enter the life insurance market. the joint venture agreement was removed and additional resources made available. Standard Life Direct Limited. Standard Life Trustee Company Limited. Standard Life Bank Limited. It was clear from the outset that both companies shared similar values and benefits and a strong relationship quickly formed. 38 . documented high level business process maps and set about preparing the first project plan. which currently holds Standard Life's Joint Venture interests in India. Further strengthening the relationship. Standard Life Pensions Funds Limited. Despite this both companies remained firmly committed to venture. due to change in insurance Govt. Around this time Standard Life purchased a 5% stake in HDFC. In Oct. Standard Life also started to use the services of the HDFC Treasury Department to advise them upon their investment insurance India. 1995.

063 crores. India's leading housing finance institution and a Group Company of the Standard Life. 1995 was first to be private company to reenter in the life insurance market in India.The new company has 1 Indian actuary and 5 actuarial students in the team.2000 and expect team form the UK joined a hand picked team form HDFC to form the core project term based in Mumbai. this ambition was realized when HDFC Standard Life Insurance Company Limited were only life company to be granted a certificate of registration. HDFC Standard Life Insurance Company Ltd.2000.4% while Standard Life own 18. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd. the ambition of the company form as far as back as Oct.2000 assets under the management reached Rs. HDFC as on March 31. 39 . Both parent companies strongly believe the program will benefit the new company. The mutual fund market was launched on 20th July 2000 and on 10th Nov. With a further 2students undergoing training in the UK. which offers a range of individual and group insurance solutions. in Jan.). In further development standard Life to participate insurance. Towards the end of 1999. 2007 holds 81. The Assets Management Company promoted by HDFC to enter the mutual fund market. is one of India's leading private insurance companies. 1. UK. This is maximum investment allowed under current regulations.6% given Standard Life’s existing investment in the HDFC Group. The company was incorporated on 14th Aug. HDFC Standard Life Insurance Company Ltd. the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. 2000 under the name of HDFC Standard Life Insurance Company Limited. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC bank. HDFC are main shareholders in HDFC Standard Life Insurance Company Limited with 81. Therefore. On 23rd of Oct.9 per cent of equity in the joint venture.

40 .000 Cr. for the year ending March 31. 2007 stood at Rs. Range of Solutions We have a range of individual and group solutions. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.  In Financial Year 2003-04 its assets under management crossed Rs.000 lives year ending March 31. Our Parentage HDFC Limited. 2. 000 houses since its incorporation in 1977. which can be easily customized to specific needs.624 crores. outstanding deposits stood at Rs. 2004. The company has covered over 8. 1.840 crores.  HDFC is India’s leading housing finance institution and has helped build more than 23. The depositor base now stands at around 1 million depositors. Track Record so far Our gross premium income.  As at March 31.Our key strengths Financial Expertise As a joint venture of leading financial services groups. 00. 36. 77. 856 crores and new business premium income at Rs. 2007. 7. HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.

The '5 Star' accolade has also been awarded to Standard Life Investments for the awarded the 'Best last 10 years. 2005 and 2006 at the Money Marketing Awards. and set the standards in the industry'. Standard Life Bank was Our Vision 'The most successful and admired life insurance company. pension. and to Standard Life Bank since its inception in 1998. and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's  Standard Life was awarded the 'Best Pension Provider' in 2004.  Presented the ‘Dream Home’ award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards. the easiest to deal with. 'The most obvious choice for all'. banking and health-care needs  Its investment manager currently administers £125 billion in assets  It is a leading pensions provider in the UK. offer the best value for money. 41 . and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year  Stable and experienced management  High service standards  Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development. which means that we are the most trusted company. 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. investment.

He 42 .2003" by Outlook Money magazine. India’s number 1 personal finance magazine Board Members Brief profile of the Board of Directors  Mr. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. Deepak S Parekh is the Chairman of the Company.Our Values Values that we observe while we work:  Integrity  Innovation  Customer centric  People Care “One for all and all for one”  Team work  Joy and Simplicity Accolades and Recognition  Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004  Rated as the "Best New Insurer .

Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Mr. 43 . Skeoch was working with M/s. Director of Controls and Strategy HSBS Securities and Managing Director International Equities. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). holding the positions of UK Economist. Strategy & Planning. Campbell joined the Board of Directors in November 2005. Mr. 2000. He is the Chief Executive Officer of HDFC Limited. Crombie is a fellow of the Faculty of Actuaries in Scotland. Executive Director. He has been with the Standard Life Group for 34 years holding various senior management positions. Asia Pacific Development. Prior to this. Ms.was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. James Capel & Co.     Mr. Alexander M Crombie joined the Board of Directors of the Company in April. Mr. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Keki M Mistry joined the Board of Directors of the Company in December. Mr. 2002. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Chief Economist. Mr. He is currently the Managing Director of HDFC Limited. Corporate Responsibility and Shared Services Centre. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Ms. Mr. Mr. He joined HDFC Limited in 1981 and became an Executive Director in 1993. 2000. Skeoch joined the Board of Directors in November 2005. He was appointed as its Managing Director in November.

Deepak M Satwalekar is the Managing Director and CEO of the Company since November. Pant. Bombay and a Masters Degree in Business Administration from The American University. Mr. Mr. where he led the worldwide Utility Practice. Washington DC. Mr. Mr. She has been employed with HDFC Limited since 1978 and was appointed as the     44 . Ms. Pant has an MBA from The Wharton School and BE (Honors) from Birla Institute of Technology and Sciences. USA. He was also Director. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology. Corporate Business Development at General Electric headquarters in Fairfield. Prior to this. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. is a graduate in law and holds a Master's degree in economics from Delhi University. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). an International Association of Independent Accounting Firms and has authored several papers of professional interest.. Divan has wide experience in auditing accounts of large public limited companies and nationalized banks. 2000. Karnad is the Executive director of HDFC Limited. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International. financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Gautam R Divan is a practicing Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Renu S. Boston. Mr. until 2002 was a Partner & VicePresident at Bain & Company. Inc. Mr. Mr. he was the Managing Director of HDFC Limited since 1993.

45 . We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy. This section gives you details of all our products. individuals as well as to companies looking to provide benefits to their employees. She is responsible for overseeing all aspects of lending operations of HDFC Limited.Executive Director in 2000. We cater to both. Products At HDFC Standard Life. we offer a bouquet of insurance solutions to meet every need.

For individuals. investment. Leave Encashment and Superannuation Products. we have a range of protection. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan. disability or sickness. Keeping this in mind. Investment Plans Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. Pension Plans Our Pension Plans help you secure your financial independence even after retirement. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. 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. These will help secure your future as well as the future of your family. You can choose from a range of products to suit your life-stage and needs. For organizations we have a host of customized solutions that range from Group Term Insurance. we have a varied range of Products that you can choose from to suit all your needs. pension and savings plans that assist and nurture dreams apart from providing protection. 46 . These plans offer valuable peace of mind at a small price. We provide you with attractive long term returns through regular bonuses. Individual Products We at HDFC Standard Life realize that not everyone has the same kind of needs. Gratuity.

Our Pension range includes our Personal Pension Plan. 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’s immediate and future needs. Our Savings range includes Endowment Assurance Plan. Unit Linked Endowment. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity. Money Back Plan. Children’s Plan. Unit Linked Youngstar. Unit Linked Endowment Plus. Unit Linked Pension. Unit Linked Young star Plus . Group Products One-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes 47 .

♦ Very flexible benefit combinations and payment options. ♦ Valuable protection in case of the insured parent’s unfortunate demise. 48 .UNIT LINKED YOUNG STAR PLAN The HDFC Unit Linked Young Star Plan gives you: ♦ An outstanding investment opportunity by providing a choice of thoroughly researched and selected investment.

Step 4 Choose the investment fund or funds you desire. or • More stable returns with lower long-term potential. you can choose from these benefit options. 49 . The minimum regular premium is Rs. Step 1: Choose your regular premium This is the premium you will continue to pay each year of the policy.10. Choosing your investment option is important. 4 easy steps to your own plan Step 1 Choose the premium you wish to invest. half yearly or annually. Step 2: Choose your level of protection You can choose any amount of Sum Assured with: • • A minimum of 5 times your chosen regular premium.Death Benefit Life & Health Option. • • Life Option.000 per year. Step 3 Choose the additional benefit options you desire. You can reduce but not increase the sum assured.♦ Flexible additional benefit options such as critical illness cover. We have 6 funds that give you: • The potential for higher but more variable returns over the term of your policy. Step 2 Choose the amount of protection (Sum assured) you desire. Step 3: Choose additional plan benefits In addition to maturity benefit. A maximum of 40 times your chosen regular premium. You can pay quarterly.Death Benefit + Critical Illness Benefit Step 4: Choose your investment funds.

*Bond exposure provides some stability. Fund Details Asset Class Bank Govt. *Significant bond exposure keeps risk Balanced Managed Fund down. More capital stability than equity funds. You can choose from all or any of the following 6 funds.Your investment will buy units in any of 6 funds designed to meet your risk approach. *Access to better longterm returns through equities. *Increased equity exposure gives better long-term return. -40% to 70% 30% to 60% Very high 100% ---100% 70% to 85% --15% to 30% Equi Risk & Retur n Ratin g Low Low Moder ate Securities ty & Money & Bonds 50 . deposits Market Fund Composition Liquid Fund Secure Fund Defensive Fund Extremely low capital risk. All units in a particular fund are identical.

Critical Illness Benefit: ♦ The company will pay the Sum Assured to the beneficiary. ♦ The company will pay future premiums on your behalf. as per your need.Growth Fund *For those who wish to maximize their returns. stop* or restart your regular premiums at any time. Changes in Investment Decisions: You can change your investment fund choices in two ways. ♦ You must have paid 3 years regular premiums and your fund must have a value above Rs. 000. ♦ Your family need not pay any further premiums. ♦ The company will pay future premiums on your behalf. ♦ The Death Cover terminates immediately. -- -- 100% Very high Benefits From the plan: Death Benefit: ♦ The company will pay the Sum Assured to the beneficiary.15. ♦ Switching: you can move your accumulated funds from one fund to another anytime. Changes in the Payment of Premium: ♦ You can increase or reduce*. ♦ Your family need not pay any further premiums. ♦ Any Critical Illness Cover terminates immediately. Additional single premiums: 51 . ♦ Premium Redirection: you can pay your future premiums into a different selection of funds. *100% investment insurance high Indian equities.

the benefits you receive from this policy are completely tax-free.10. ♦ Under Section 10 (10 D). the fund less any due charges exceeds both Rs. ♦ After the withdrawal. Eligibility 52 .1. invest any extra money you have to enhance the longterm return and provide the little extras your child deserves. you can save up to Rs.000 are allowed as a deduction from your tax income. 000.5.000 and the surrender charges in force at the time of the withdrawal. ♦ The minimum additional single premium amount is only Rs. ♦ You can invest more than your regular premiums anytime. 1961.00.♦ You can.33. Accessing Money Easily You can make lump sum withdrawals from your funds at any time provided: ♦ The minimum withdrawal amount is Rs. 660 from your tax each year (calculated on the highest tax bracket) as premiums up to Rs. Tax Benefits (Based on current tax laws) You will be eligible for tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act. Surrendering the Policy: ♦ You can choose to surrender the policy at any time. ♦ If you have paid 3 years of regular premiums. ♦ Under Section 80C.15. 000. ♦ The surrender value will be the value of the units in the fund less any surrender charges. there will be no surrender charges. very cost effectively.

Benefit Options Term Period (Yrs. 60 55 Life Option Life & Health Option 10 10 Beneficiaries The beneficiary (your child) is the sole person to receive the benefit under the policy. After deducting this charge from your premiums. Where the beneficiary is less than 18 years of age the benefit will be paid to the Appointee. Premium Allocation Charge: This is a premium-based charge. Charges Applicable under the Policy The charges under the policy are deducted to provide for the benefits and the administration provided by the company. Max. 25 25 Age at Entry (Yrs.) Min. the remainder is invested to buy units. 53 .) 75 65 Max. 18 18 Maximum Age at Maturity (Yrs.The age and term limits for the insured parent for taking out a Unit Linked Young Star Plan are as shown below.) Min.

99.80% per annum of the fund’s value.00.999 Premiums 10. The amount of the charge taken each month depends on 54 . Cancellation or Surrender Charges On cancellation or surrender of the policy before 3 years of regular premiums have been paid. 3rd year onwards 70.00% 99.00% 97.999 Regular From 5.00% 80.00. Risk Benefit Charges Every month the company makes a charge for providing you with the death or critical illness cover you have selected.999 From 2.00% 90.00% 99.99.000 to 9. The company makes the charge by canceling units in each of the funds you have chosen.000 to 4. the company will make a charge of 30% of the outstanding premiums due for the remainder of this 3-year period.00. in the proportion you have chosen.000 and above Single Premium Top-Up(s) Investment Content Rate (ICR) 1st & 2nd yrs.50% 99. Other Charges Administration Charge A charge of Rs.Premium Paid During Tear (Rs.00% 85.99. the key to building great maturity values is a low FMC.) Up to 1 .00% 99.20 per month is charged to cover regular administration costs. In the long term.00% 99.00% Fund Management Charges (FMC) The daily unit price already includes a low fund management chare of 0.

Fund switching Charges. The company does not charge for any of these options currently. 55 . in the proportion you have chosen. The company deserves the right to introduce such charges after approval from the IRDA. Premium Redirection or Alteration Charges Premium alterations include stopping and restarting your regular premium after 3 years.your age. The company takes the charge by canceling units in each of the funds you have chosen.

Total capital infusion stands at Rs. with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.a leading international financial services group headquartered in the United Kingdom.72 billion. We began our operations in December 2000 after receiving approval from Insurance 56 .ICICI PRUDENTIAL LIFE INSURANCE Overview India's Number One private life insurer. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companies-and Prudential plc. 23.

000 advisors. With clear guidelines in place. Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire.AC Nielsen ORG Marg survey of 'Most Trusted Brands'.What makes us No. Here's a peek into what makes us leaders.be it product development. and also partners with leading banks. Our products have been developed after a clear and thorough understanding of customers' needs. 1. we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. As we grow our distribution. and thereby ensure a smooth and hassle-free claims process. distribution. the sales process or servicing. 57 . corporate agents and brokers to distribute our products. Robust risk management and underwriting practices form the core of our business.Regulatory Development Authority (IRDA). The ICICI Prudential Edge . in all that we do . but it's equally important to ensure that our customers can access them easily and quickly. and 23 banc assurance partners. Having the right products is the first step. Today. 1 The ICICI Prudential edge comes from our commitment to our customers. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education. over 235. 3. For three years in a row. by The Economic Times . ICICI Prudential has an advisor base across the length and breadth of the country. product range and customer base. or Health insurance that arms you with the funds you might need to recover from a dreaded disease. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. 2. our nation-wide team comprises of over 680 offices. To this end. we ensure equitable costing of risks.

Entrusted with helping our customers meet their long-term goals. at every step in life. so that they can deliver on our promise to cover you.4. Vision & Values Our vision: To be the dominant Life. 5. Last but definitely not the least. we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. This we hope to achieve by:  Understanding the needs of customers and offering them superior products and service  Leveraging technology service customers quickly. efficiently and conveniently 58 . Health and Pensions player built on trust by world-class people and service. our 20. We believe this keeps them engaged and enthusiastic.000 plus strong team is given the opportunity to learn and grow. every day in a multitude of ways.

Each of the values describes what the company stands for. Developing and implementing super risk management and investment strategies to offer sustainable and stable returns to our policyholders  Providing an enabling environment to foster growth and learning for our employees  And above all. building transparency in all our dealings. and Passion. Boundary less. ICICI Bank is a leading 59 .32 bn (USD 88 billion) as on June 30. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking. and have become the keystones of our success. Ownership. Customer First. Customer First. where we can play a significant role in redefining and reshaping the sector.Integrity. The success of the company will be founded in its unflinching commitment to 5 core values -. life and non-life insurance. Promoters ICICI Bank ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs 3569. Given the quality of our parentage and the commitment of our team. private equity and asset management. Our values: Every member of the ICICI Prudential team is committed to 5 core values: Integrity. These values shine forth in all we do. there are no limits to our growth. We do believe that we are on the threshold of an exciting new opportunity. 2007. Boundary less. the qualities of our people and the way we work. Ownership and Passion.

2007). India.icicibank. provides retail financial services products and services to more than 20 million customers. through its businesses in the UK and Europe. the US and Asia. Korea. Korea. In Asia. 23. Hong Kong. Vietnam and United Arab Emirates. Malaysia. Singapore. Prudential is the second largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. 3469 ATMs. Vietnam. a leading international financial services group headquartered in the United Kingdom. India. Singapore. the Philippines. Fact Sheet THE Company ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. ICICI Prudential's capital stands at Rs. Taiwan. Thailand. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Japan.com) to ensure that customers have access to its services at all times Prudential Plc Established in London in 1848. and Prudential plc. Prudential plc. a premier financial powerhouse. Its fund management business has expanded into a total of ten markets : China. call centers and internet banking (www.player in the retail banking market and services its large customer base through a network of over 950 branches (including extension counters). policyholder and unit holders and manages over £256 billion of funds worldwide (as on June 30. Prudential is the leading European life insurance company with life operations in China. Hong Kong. Indonesia. Taiwan.72 billion with ICICI Bank and Prudential plc 60 . Malaysia. Japan.

Lord Krishna Bank. with a wide range of flexible products that meet the needs of the Indian customer at every step in life. 987 crore of weighted retail + group new business premiums and wrote over 450. Bank of India. 1 private life insurer in the country. the company garnered Rs.400 crore. having tie-ups with ICICI Bank. The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited. Ernakulam Bank. 9 Bank of India sponsored Regional Rural Banks (RRBs). Sangli Urban Co-operative Bank.holding 74% and 26% stake respectively. ICICI Prudential has retained its position as the No. The AAA (Ind) rating is the highest rating. For the first quarter ended June 30. Idukki District Cooperative Bank. The company has over 23 bancassurnace partners. South Indian Bank.000 advisors. Federal Bank. Jalgaon Peoples Co-operative Bank. Ballia Kshetriya Gramin Bank. and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past six years. 2007. Shamrao Vithal Co-op Bank. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The company has assets held to the tune of over Rs. It has a strong presence across India with over 680 branches and over 235. Baramati Co-operative Bank. 18. 61 . Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India.000 retail policies in the period.

Bhargav Dasgupta. Kannan. Managing Director & CEO Mr. Bhargav Dasgupta. HT Phong Mr. Shikha Sharma. Executive Director Mr. Kannan. Kamath. Mr. Puneet Nanda. Managing Director Mr. Keki Dadiseth Ms. Executive Director Mr. Kalpana Morparia Mrs. Azim Mithani. K. S. Chief Actuary Mr. Executive Director Ms.MANAGEMENT PROFILE Board of Directors The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Chanda Kochhar Mr. Modi Mr. S.P. Anita Pai. Ms. M. Executive Vice President & Chief Investments Officer 62 . Shikha Sharma. Chairman Mr.V. N. EVP – Customer Service & Technology Mr. R Narayanan Mr. Executive Director Management Team The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad. N. Barry Stowe Mrs.

Insurance Solutions for Individuals
ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

Save'n'Protectis a traditional endowment savings plan that offers life protection along with adequate returns.


Cash Bak is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset. It is available for terms of 15 and 20 years. Life Time Super & Life Time Plus are unit-linked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 6 fund options - Preserver, Protector, Balancer, Maxi miser, Flexi Growth and Flexi Balanced Life Link Super is a single premium unit linked insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life Gold is a limited premium paying plan specially structured for long-term wealth creation. Invest Shield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. Invest Shield Cash bak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.

Protection Solutions

Life Guard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium. Home Assure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Education insurance plans

Education insurance under the Smart Kid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the

child's life. Smart Kid plans are also available in unit-linked form - both single premium and regular premium.

Retirement Solutions

Forever Life is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually. Life Time Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement. Life Link Super Pension is a single premium unit linked pension plan. Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options.

 

Health Solutions

Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover. Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Diabetes Care: Diabetes Care is a unique critical illness product specially developed for individuals with Type 2 diabetes and pre-diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also


 Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. Group Term Plan: ICICI Pru's flexible group term solution helps provide affordable cover to members of a group. Group Superannuation Plan: ICICI Pru offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimize returns for the members of the trust and rationalize the cost. 66 . Diabetes Care Plus also offers life cover. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Group Gratuity Plan: ICICI Pru's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years. Group Immediate Annuities: In addition to the annuities offered to existing superannuation customers. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. we offer immediate annuities to superannuation funds not managed by us. and death.offers a coordinated care approach to managing the condition.  Hospital Care: is a fixed benefit plan covering various stages of treatment – hospitalization. The cover could be uniform or based on designation/rank or a multiple of salary. ICU. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. procedures & recuperating allowance. Crisis Cover: is a 360-degree product that will provide long-term coverage against 35 critical illnesses. total and permanent disability.

Benefits are payable to the insured for medical expenses prior to death. Given the quality of its parentage and the commitment of its team. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy.Flexible Rider Options ICICI Pru Life offers flexible riders. Income Benefit: In case of death of the life assured during the term of the policy. If an accident results in total and permanent disability. the beneficiary receives an additional amount equal to the rider sum assured under the policy. 1. the beneficiary will be entitled to twice the sum assured as additional benefit. 4. Life Time Plus. which can be added to the basic policy at a marginal cost. Life Time Super and Life Time Super Pension. 10% of the sum assured is paid annually to the nominee on each policy anniversary till the maturity of the rider. 10% of rider sum assured will be paid each year. If the death occurs while traveling in an authorized mass transport vehicle. there are no limits to our growth. depending on the specific needs of the customer. This rider is available with Smart Kid. The company does believe that it is on the threshold of an exciting new opportunity. the future premiums continue to be paid by the company till the time of maturity. where it can play a significant role in redefining and reshaping the sector. 3. whichever is lesser. Waiver of Premium: In case of total and permanent disability due to an accident. from the end of the 1st year after the disability date for the remainder of the base policy term or 10 years. 2. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. 67 .

68 . the product offers a lot of flexibility. The plan offers protection for life at the same time allows the policyholder to get market-linked returns. This apart. It is a single product combining the benefits of both investment product and insurance plan. in case of an unfortunate event of death.ICICI Pru Life Time Plus Plan Suitability This policy is a long-term market linked total protection plan. KEY BENEFITS OF LIFE TIME PLUS  This policy offers the policyholder the protection of Sum Assured AND Fund Value.

If the unfortunate event of death. the nominee receives the Sum Assured AND the Fund Value Benefits in detail  Death Benefit In the unfortunate event of death during the term of the policy. the maturity benefit is paid to the policyholder. the policyholder will be entitled to receive the Fund Value at the time of maturity. 69 . ♦ The policyholder can opt for add-on riders available under the policy for a nominal extra amount. term &Sum Assured for which he wish to take the policy. Potentially higher returns are offered over the long-term by investing in market linked funds. ♦ On survival. which ensures continuance of life insurance cover even if the policyholder takes a temporary break in premium payment. the nominee shall receive the Sum Assured AND Fund Value.  The policyholder can enjoy tax benefits on premium paid & benefits received under this policy.  Maturity Benefit Based on the term chosen for this policy. the balance amount is invested in the investment fund(s) of policyholders’ choice. How does the policy work? ♦ The policyholder needs to choose the premium amount.  Provision of additional allocation of units at regular intervals to enhance the investment.  Options to withdraw the money systematically over a period of 5 years on maturity of the policy. ♦ After deducting premium allocation charges.  Provides cover continuance option. as per the prevailing Income Tax Laws.

 Cover Continuance Option This option ensures that the insurance cover continues in case policyholder is unable to pay premiums. In any policy year. The policyholder needs to opt for cover continuance option. The policyholder can restart premium payment any time thereafter. All applicable charges will be automatically deducted from the units available in his fund. 000.000  Partial Withdrawal Benefit Partial withdrawal will be allowed after completion of 3 policy years & on payment of full 3 years’ premium. the rider benefit amount would be paid. to enjoy additional protection at a nominal extra cost. if he wishes to avail of this benefit. The minimum switch amount is 2. as given below: ♦ Accident & Disability Benefit Rider. the rider benefit would be paid. 70 . depending on the policy holders' financial priorities 7 investment decision. the policy holder can switch between the investment funds at any time [provided the policy is in force].2. ♦ Critical illness benefit Rider. The minimum partial withdrawal amount is Rs.In the event of the Life Assured contracting any of the specified critical illness.  Additional Protection with Riders The policyholder can further customize his policy by adding riders. Switching Option With this option. 4 switches are free of charge. anytime after the payment of first 3 years’ premium.In the event of death or disability due to an accident.

20. ♦ Policy Administration Charge.20.000 .In case of total and permanent disability due to an accident all further premiums till maturity would be paid by the company.Rs.000 per annum : Yearly. Rider charges for opted riders will be recovered by cancellation of units.4 free switches allowed every policy year. Monthly : Annual Premium x (Term/2)  Minimum/Maximum Premium  Premium Payment Frequency  Minimum Sum Assured Charges applicable under the policy Premium allocation charge Annual Year 1 Year 2 25% Year 3 3% Year 4 3% Year 5 onwards 1% Premium Rs.000 to 25% Rs300.000 Other Charges ♦ Switching Charges.♦ Waiver of Premium Rider. Subsequent switches will be charged at Rs100 per switch.300. Half-yearly.There would be a fixed policy administration charge of Rs60 per month. Other Conditions  Minimum/Maximum Entry Age : 0-65 years  Minimum/maximum Term : 10-30 years : Rs. 71 .

Indicative charges per thousand Sum Assured for a healthy male life is shown below: Age(yrs) Rs.a.a.99 ♦ Fund Management Charge. All subsequent partial withdrawals in that policy year would be charged at Rs100 per withdrawal. are as follows: Fund Charge Maximiser ll 1.50% p.75% p.48 50 5. Protector 0.00% p.One partial withdrawal in a policy Year would be free.a.75% p. 20 1. (These charges will be deducted by cancellation of units) 72 .Mortality charges will be deducted on a monthly basis on the Sum Assured.♦ Mortality charge. Balancer ll 1. which will be adjusted from the Net Asset Value of various Funds.a.The annual fund management charge.46 40 2. Preserver 0.33 30 1. ♦ Partial Withdrawal Charge.

RESEARCH METHODOLOGY RESEARCH DESIGN 1) Statement of the problem 2) Research objectives 3) Research Methodology  Type of study  Data collection  Sampling 73 .

This gives us clear-cut view of method so used while gathering the information so needed for the completion of the report. 74 . Provide an overview of unit linked plans of HDFC standard life insurance company ltd. Problem definition refers to the objective on which research has to be done.    To make a comparative performance of unit linked plans To study the expectations of customers from insurance companies. & ICICI Prudential Company. Research Methodology is one of the important aspects of any project. Research Methodology Research refers to search for knowledge. Position of Insurance Companies in the mind of the consumer III. so problem definition in my project work is comparative study of unit link products of HDFC-SLIC & ICICI Prudential Life Insurance Company and to know which company can provide better service to consumer. In other words research is defined as a careful investigation or inquiry especially through for new facts in any branch of knowledge. Objectives   To know about company history and organization structure. Tools & techniques 4) Scope of study 5) Limitations Defining Research Problem Problem definition is the first & foremost part of the research process. without this research cannot be completed until and unless there is a problem or objective. the research cannot be initiated.

P). The sample Consist of 100 75 . Generally large Sample more reliable result than small sample.) & surrounding rural area. Data Collection: Source of Data: Two types of data sources will be taken into consideration  Primary Data  Secondary Data Primary Data: The primary data are those which are collected a fresh and for the first time and thus happen to be original in character. C) Developing Sample Design: Sample design refers to number of items to be included in sample It refers to the technique or procedure the researcher would adopt In selecting items from the sample. & web sites.P. Under this project type of universe include people residing in Baddi (H.  Size of Sample: Number of people surveyed. Under this project direct collection of data from source of information & techniques such as personal interviewing and survey through questionnaire for customers has been considered.  Type of universe: The universe is the entire group of items the researcher wishes to study and about which they plan to generalize. respondents. Secondary Data: Secondary data is one which has already been collected by someone else and which has already been passed through statistical processing.a) b) Type of Study: Study is exploratory & descriptive in nature.  Sampling Unit: Sampling units are the persons. who have purchased the insurance plan in Baddi (H. Under this project secondary data is been collected from journals. magazines.

Most of the people are not interested to give the right data.  The facts and concepts of Respondents may be biased.P. Limitations of the Study:  Time for the completion of the project was too short to do an in-depth study.  The size of sample is 100 respondents.  Comparison is done on the basis of secondary sources.  Scope of Study: This study is mainly confined to the customer of Baddi (H.Sampling technique is used.  Tools and Techniques: For this survey Convenience.   The sample size was not enough to reach on any exact conclusion.) & near villages.  Study is based on primary or secondary data that may not be true. imaginary and may be based entirely on their personal experience. Most of question in the questionnaire was closing ended which reduced the scope for people to give free opinion. Under this project selection of respondents is on the basis of convenience sampling. Sampling Procedure: Sampling procedure refers to technique Used in selecting the items for the sample. 76 .

77 .

1.00.000 Maximum-1crore Minimum-Rs. On Maturity-Fund value is given to the policyholder 78 .000 Maximum-No limit Minimum-Rs. On Death.00.00.Company Name Plan Name Age Sum Assured Premium HDFC Std.10.1. 000 Maximum-3. On maturity.Sum Assured + Fund Value will be given to the nominee.20. 000 Maximum-no limit 3 years After 3 years: no charges Before lock in period-30% of outstanding premium OP= difference between regular premium expected & received in the first two years ICICI Pru life Insurance Life Time Plus 0 to 65 Minimum-Rs.000 3 years After 3 years: you get 92% After 4 years: you get 94% After 5 years: you get 96% After 6 years: you get 98% After 7years & above: you get 100% of fund value Lock in period Surrender allowed Death and Maturity On Death-Sum Assured + future premiums will be given by HDFC on the behalf of policyholder. Life Insurance Young star 18 to 65 Minimum-Rs.Value of accumulated fund is given to the beneficiary.

0.a. Equity Managed Fund 6. Growth Fund For accident.250 per withdrawal. 79 . All  Preserver. Subsequent subsequent partial switches will be charged at withdrawal in that policy Rs. 24 one partial withdrawal in a switches allowed every policy year is free. Permanent Disability Fund Mgmt. 100 per switch.0.a. Liquid Fund 2.75% subsequent partial p. Switching Charges.00% policyholder.100 per withdrawal. ChargesFund Management Charges0. withdrawal in that policy Administration Chargesyear would be charged at Rs. Rs. Secure Managed Fund 3.000     Maxi miser ll Balancer ll Protector ll Preserver For accident. policy year is free. 100 per switch premium year would be charged at Rs. Balanced Managed Fund 5. Critical Illness. All policy year free.Fund Option Term Rider Charges 1.25.75% 6 partial withdrawal in a p.20 per Month  Maxi miser ll-1. Depend upon the age of the  Balancer ll-1.50% Risk Benefit Chargesp.60 per Month Rs.80% per annum Different Charges for Administration Chargesdifferent funds selected.a.00. Partial Withdrawal ChargeFund switching Charges. p. Defensive Managed Fund 4. Subsequent switches will be charged at Rs.4 switches allowed every policy year free. Critical Illness. Rs.max. Partial Withdrawal Charge Protector.a.

80 .

81 . No. A B C D Particulars Print Media Electronic Media Agents Others Response 24 30 35 11 40 35 30 25 20 15 10 5 0 Print Media Electronic Media Agents Others Series1 INTERPRETATION:In this chart. 1: . Apart from this electronic media is also a source for awareness. we can see that the agents play major role in awaring people about the HDFC-SLIC.Awareness of HDFC Standard Life Insurance Company:S.Respondent Profile: Respondent profile has been analyzed: Que.

we can say that people mostly treat insurance as a protection instrument. 2: -What the people think about the Insurance S.Respondents’ response about the awareness of the Insurance Companies Que. 67 people think insurance as a necessity for protection & security. No. A B C Particulars Necessity for protection security Imposition of a burden of expenses A compulsory tool for tax saving Response 67 17 16 80 70 60 50 40 30 20 10 0 Security Expenses Tax Saving Series1 INTERPRETATION:On the basis of above analysis. 82 .

3: . A B C D E Particulars TAX SAVING PROTECTION PENSION INVESTMENT Response 10 29 53 3 5 60 50 40 30 20 10 0 g Pr ot ec tio n on In ve st em nt Ta x Sa vin Pe ns i Series1 INTERPRETATION:On the basis of above analysis. 83 .Main consideration that a customer looks at while purchasing an Insurance Policy. No. we can say that people purchase insurance policy mostly for the protection purpose so use to purchase traditional palns.Que. S.

84 . we can say that people prefer the companies those have very highly goodwill in the market. No.Que. And apart from this while purchasing they also use to give more weight age to return also. A B C D E Particulars Standing and goodwill of the company Product range of the company Advertisement being released by the company Services being given by the company Returns of bonus declared by the company %age 46 7 3 18 26 50 45 40 35 30 25 20 15 10 5 0 en t e Pr od uc tR an g G oo dw il l Ad ve rt i se m Se rv i ce s Re tu rn Series1 INTERPRETATION:On the basis of above analysis.What a respondent see while purchasing Insurance from the company? S. 4: .

Ch i 85 . we can say that people prefer to buy protection & children plans mostly. No.Que. 5: -Plan that a respondent prefers to buy S. A B C D Particulars Protection Plan Investment Plan Pension Plan Children Plan %age 47 19 10 24 50 45 40 35 30 25 20 15 10 5 0 Pr ot ec tio n In ve st m Pe ns io n ld re n en t Series1 INTERPRETATION:On the basis of above analysis.

Que. 6: - Customers’ expectations from Life Insurance Companies
S. No. A B C D E Particulars Innovative Products Attractive Riders Reasonable Premium Better Customer Service High Risk Coverage %age 5 2 24 47 22

50 45 40 35 30 25 20 15 10 5 0
In no va t iv e At tra ct ive ce iu m Pr em Se rv i Ri s k


INTERPRETATION:On the basis of above analysis, we can say that people expect better customer service from the insurance companies & reasonable premium on their investment.


Que. 7: - HDFC Standard Life Insurance Company provides better facilities than ICICI Prudential Life Insurance Company
S. No. A B C Particulars Yes No Cant say %age 34 2 64

70 60 50 40 Series1 30 20 10 0 Yes No Cant Say

INTERPETATION:On the basis of above analysis, we can say that people are not aware about these companies so we can not come on any conclusion.


Que. 8: -Is the respondent satisfied with the plan he bought?
S. No. A B C Particulars Yes No I haven’t bought any Response 67 17 16

80 70 60 50 40 30 20 10 0 Yes No Haven't Series1

INTERPETATION:On the basis of above analysis, we can say that people are satisfied with the plans they have bought.


 The goodwill of the company also attracts customers toward a insurance company. 89 .  People purchase insurance policy mostly for protection purpose and some of people for saving.FINDING  Agents play major role in awaring people about the benefits of insurance.  People think insurance as a protection tool.  People also take insurance policy as a security for their children.

Surrender charges of these companies are different from each other. I conclude that. Charges taken to manage the fund are different in both the companies. both the companies provide the amount equal to the market value of the units.CONCLUSION On the basis of my study. whereas ICICI is not providing this facility to its customers. 90 .3 years. On maturity. HDFC Standard Life Insurance is the one that is providing wavier of premium to its customer in case of death of the life assured. both the companies are providing very good facilities to their customers. Both the companies have same lock in period i.e.

 Private companies should collaborate to spread awareness regarding the benefits of insurance plans provided by the Private Companies.  The private company should create good relations and communication.  Insurance Companies should show more commitment with the customers.  Agents have got maximum influence on customers. 91 . So agents should be given fullfledged training and the training should be strict.SUGGESTIONS  Advertisement should be done on television and especially Posters and Banners. This will greatly help in raising awareness level. They are the one who introduces the prospect to different policies.  Private companies give better services to the customers as compared to public companies.

com www.irdaindia.com www.economictimes.BIBLIOGRAPHY WEBSITES • • • • • www.hdfcinsurance.com BROUCHERS • • HDFC Standard Life Insurance ICICI Prudential Life Insurance 92 .com www.com www.google.bimaonline.

Study Name Telephone Occupation Marital status: Single/Married Address Age Q.2: What do you think about insurance? ♦ Necessity for protection security ♦ Imposition of a burden of expenses ♦ A compulsory tool for tax saving Q.4: What do you see while purchasing an insurance policy from the company? ♦ ♦ ♦ ♦ ♦ Standing and goodwill of the company Product range of the company Advertisement being released by the company Services being given by the company Returns of bonus declared by the company 93 . ♦ Tax ♦ Saving ♦ Protection ♦ Pension ♦ Investment Q.3: Main consideration that you look at while purchasing an insurance policy. will not to be disclosed to any other organization/department) Consumers Behavior towards various Investment and Insurance Products A.QUESTIONAIRE (This information is for our internal use only.1: How do you know about HDFC Standard Life Insurance Company? ♦ ♦ ♦ ♦ Print Media Electronic Media Agents Others Q.

5: Which plan would you like to buy? ♦ ♦ ♦ ♦ Protection Plan Investment Plan Pension Plan Children Plan Q. Are you satisfied with the plan you bought? ♦ Yes ♦ No ♦ I haven’t bought any -------------------------------------------------------------------------------------------(THANK YOU) 94 .6: What do you expect from HDFC Standard Life Insurance Company? ♦ Innovative Products ♦ Attractive riders ♦ Reasonable premium ♦ Better Customer Service ♦ High risk coverage Q.7: Do you think that HDFC Standard Life Insurance Company provides better facilities than ICICI prudential life insurance company? ♦ Yes ♦ No Q.8.Q.

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