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Insurance is an upcoming sector, in India the year 2000 was a landmark year for life insurance industry, in this year the life insurance industry was liberalized after more than fifty years. Insurance sector was once a monopoly, with LIC as the only company, a public sector enterprise. But nowadays the market opened up and there are many private players competing in the market. There are fifteen private life insurance companies has entered the industry. After the entry of these private players, the market share of LIC has been considerably reduced. In the last five years the private players is able to expand the market (growing at 30% per annum) and also has improved their market share to 18%. For the past five years private players have launched many innovations in the industry in terms of products, market channels and advertisement of products, agent training and customer services etc. In 2003, the Indian insurance market ranked 19th globally and was the fifth largest in Asia. Although it accounts for only 2.5% of premiums in Asia, it has the potential to become one of the biggest insurance markets in the region. A combination of factors underpins further strong growth in the market, including sound economic fundamentals, rising household wealth and a further improvement in the regulatory framework. The insurance industry in India has come a long way since the time when businesses were tightly regulated and concentrated in the hands of a few public sector insurers. Following the passage of the Insurance Regulatory and Development Authority Act in 1999, India abandoned public sector exclusivity in the insurance industry in favor of market-driven competition. This shift has brought about major
changes to the industry. The inauguration of a new era of insurance development has seen the entry of international insurers, the proliferation of innovative products and distribution channels, and the raising of supervisory standards. The insurance sector in India has come with a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. Insurance in India used to be tightly regulated and monopolized by state-run insurers. Following the move towards economic reform in the early 1990s, various plans to revamp the sector finally resulted in the passage of the Insurance Regulatory and Development Authority (IRDA) Act of 1999. Significantly, the insurance business was opened on two fronts. Firstly, domestic private-sector companies were permitted to enter both life and non-life insurance business. Secondly, foreign companies were allowed to participate, albeit with a cap on shareholding at 26%. With the introduction of the 1999 IRDA Act, the insurance sector joined a set of other economic sectors on the growth march. During the 2003 financial year1, life insurance premiums increased by an estimated 12.3% in real terms to INR 650 billion (USD 14 billion) while non-life insurance premiums rose 12.2% to INR 178 billion (USD 3.8 billion). The strong growth in 2003 did not come in isolation. Growth in insurance premiums has been averaging at 11.3% in real terms over the last decade. The various life insurers entered India:1. HDFC Standard Life Insurance Company Ltd. 2. Max New York Life Insurance Co. Ltd.
3. ICICI Prudential Life Insurance Company Ltd. 4. Kotak Mahindra Old Mutual Life Insurance Limited. 5. Birla Sun Life Insurance Company Ltd. 6. Tata AIG Life Insurance Company Ltd. 7. SBI Life Insurance Company Limited. 8. ING Vysya Life Insurance Company Private Limited. 9. Met life India Insurance Company Ltd. 10. Royal Sundaram Life Insurance Company Limited. 11. Aviva Life Insurance Co. India Pvt. Ltd. 12. Sahara India Insurance Company Ltd. 13. Shriram Life Insurance Company 14. Life Insurance Corporation of India. 15. Reliance Life Insurance Company Limited. 16. Bharti AXA Life Insurance Company Limited.
can enable investments in infrastructure development to sustain the economic growth of the country. Insurance happens to be a mega opportunity in India. The Insurance sector. Even so nearly 65% of the Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. 4 .The Insurance Industry in India An Overview With the largest number of life insurance policies in force in the world. Together with banking services.41 billion (for the financial year 2006 – 2007). The gross premium collection is nearly 2% of GDP and funds available with LIC for investments are 8% of the GDP. This in itself is an indicator that growth potential for the insurance sector in India is immense. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 1560. to some extent. It is estimated that over the next ten years India would require investments of the order of one trillion US dollars. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and strengthens the risk taking ability of individuals. it adds about 7% to the country’s Gross Domestic Product (GDP). A large part of our population is also subject to weak social security and pension systems with hardly any old age income security.
Insurance in India has evolved over time heavily drawing from other countries. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century. This era. The Indian Life Assurance Companies Act. the Bombay Mutual (1871). In 1928. In 1829. floods. Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914. Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. namely Albert Life Assurance. The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire. Royal Insurance. the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident 5 . was dominated by foreign insurance offices which did good business in India. the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1912 was the first statutory measure to regulate life business. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This was probably a pre-cursor to modern day insurance. Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). epidemics and famine. It finds mention in the writings of Manu (Manusmrithi). insurance has a deep-rooted history. the Government of India started publishing returns of Insurance Companies in India. This Company however failed in 1834.Historical Perspective In India. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts. however. England in particular.
the Indian Mercantile Insurance Ltd. in the year 1850 in Calcutta by the British. 1938 with comprehensive provisions for effective control over the activities of insurers. The Tariff Advisory Committee was also set up then.insurance societies. The Insurance Amendment Act of 1950 abolished Principal Agencies. In 1968. 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. there were a large number of insurance companies and the level of competition was high. a wing of the Insurance Association of India. The LIC absorbed 154 Indian. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. the Insurance Act was amended to regulate investments and set minimum solvency margins. with a view to protecting the interest of the Insurance public. It came to India as a legacy of British occupation. There were also allegations of unfair trade practices. was set up. decided to nationalize insurance business. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. 1957 saw the formation of the General Insurance Council. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. the earlier legislation was consolidated and amended by the Insurance Act. therefore. However. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd. In 1938. 6 . In 1907. 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Government of India.. This was the first company to transact all classes of general insurance business. An Ordinance was issued on 19th January.
The IRDA was incorporated as a statutory body in April. former Governor of RBI. the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies. In 1993.In 1972 with the passing of the General Insurance Business (Nationalization) Act. The objective was to complement the reforms initiated in the financial sector. Following the recommendations of the Malhotra Committee report. the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums. 7 .. while ensuring the financial security of the insurance market. 107 insurers were amalgamated and grouped into four companies. 1973. preferably a joint venture with Indian partners. general insurance business was nationalized with effect from 1st January. to propose recommendations for reforms in the insurance sector. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. in 1999. the New India Assurance Company Ltd. among other things. the Government set up a committee under the chairmanship of RN Malhotra. it recommended that the private sector be permitted to enter the insurance industry. The committee submitted its report in 1994 wherein . 2000. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years.. namely National Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.
2002. Foreign companies were allowed ownership of up to 26%.The IRDA opened up the market in August 2000 with the invitation for application for registrations. A well-developed and evolved insurance sector is a boon for economic development as it provides long. Together with banking services. 2000. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 8 . Parliament passed a bill delinking the four subsidiaries from GIC in July. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests. insurance services add about 7% to the country’s GDP. Key Milestones 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country. The Authority has the power to frame regulations under Section 114A of the Insurance Act.term funds for infrastructure development at the same time strengthening the risk taking ability of the country. In December. the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer.
N. 2 Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.LIC Act 1956. LIC was formed by an Act of Parliament.with a capital contribution of Rs. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. Insurance Sector Reforms In 1993.. was formed to evaluate the Indian Insurance Industry and recommend its future direction. In 1994. Malhotra..'. 1956: 245 Indian and foreign insurers along with provident societies were taken over by the central government and nationalized. 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.1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of protecting the interests of the insuring public. 5 crore from the Government of India. Malhotra Committee. 9 . the committee submitted the report and some of the key recommendations included: I) Structure 1 Government stake in the insurance companies to be brought down to 50%. headed by former Finance Secretary and RBI Governor R.
IV) Investments 12 Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%.3 All the insurance companies should be given greater freedom to operate. 5 No Company should deal in both Life and General Insurance through a single entity. II) Completion 4 Private Companies with a minimum paid up capital of Rs. 6 Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. 7 Postal Life Insurance should be allowed to operate in the rural market. 11 Controller of Insurance (Currently a part from the Finance Ministry) should be made independent. III) Regulatory Body 9 The Insurance Act should be changed. 13 GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this 10 . 8 Only one State Level Life insurance company should be allowed to operate in each state. 10 An Insurance Regulatory body should be set up. 1bn should be allowed to enter the industry.
41 billion during the fiscal year 2007-2008. 11 . Though the total volume of LIC's business increased in the last fiscal year (2007-2008) compared to the previous one. V) Customer Service 14 LIC should pay interest on delays in payments beyond 30 days.91%. But at the same time. the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. with premium income at Rs. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. its market share came down from 85. For this purpose. it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.level over a period of time). Present Scenario – Life Insurance Industry in India The life insurance industry in India grew by an impressive 47. 16 Computerization of operations and updating of technology to be carried out in the insurance industry. Hence.38%. 1560. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives.75% to 81. 100 crores. 15 Insurance companies must be encouraged to set up unit linked pension plans. it had proposed setting up an independent regulatory body.
multi – purpose insurance plans. smart marketing. Insurance Regulatory and Development Authority Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in December 1999. are now suddenly turning to the private sector and snapping up the new innovative products on offer. who had always seen life insurance as a tax saving device. Innovative products. foreign investments of Rs. and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. pension plans. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously such to its schedule of framing regulations and registering the private sector insurance companies. The restriction on these companies is that they are not allowed to have more than a 26% stake in a company’s ownership. The share of LIC for this period has further come down to 75 percent.The 17 private insurers increased their market share from about 15% to about 19% in a year's time. child plans and money back plans. Indians. Since the opening up of the insurance sector in 1999. The figures for the first two months of the fiscal year 2008-09 also speak of the growing share of the private insurers. Some of these products include investment plans with insurance and good returns (unit linked plans). 12 . while the private players have grabbed over 24 percent. 8.7 billion have poured into the Indian market and 19 private life insurance companies have been granted licenses. With the opening up of the insurance industry in India many foreign players have entered the market.
1999 lays down the duties. (e) Promoting efficiency in the conduct of insurance business. withdraw. the powers and functions of the Authority shall include. undertaking inspection of. nomination by policy holders. (b) protection of the interests of the policy holders in matters concerning assigning of policy. . powers and functions of IRDA. suspend or cancel such registration. (f) Promoting and regulating professional organisations connected with the insurance and re-insurance business. Section 14 of IRDA Act. (2) Without prejudice to the generality of the provisions contained in subsection (1). conducting enquiries and investigations including 13 audit of the insurers. code of conduct and practical training for intermediary or insurance intermediaries and agents. the Authority shall have the duty to regulate. (1) Subject to the provisions of this Act and any other law for the time being in force. (c) Specifying requisite qualifications. modify. settlement of insurance claim. (g) Levying fees and other charges for carrying out the purposes of this Act.The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. (a) Issue to the applicant a certificate of registration. renew. (d) Specifying the code of conduct for surveyors and loss assessors. surrender value of policy and other terms and conditions of contracts of insurance. insurable interest. (h) calling for information from. promote and ensure orderly growth of the insurance business and re-insurance business.
(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries. (l) Regulating maintenance of margin of solvency. (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. (i) control and regulation of the rates. (n) Supervising the functioning of the Tariff Advisory Committee.intermediaries. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. 14 . It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. (o) Specifying the percentage of premium income of the insurer. (k) Regulating investment of funds by insurance companies. from which sources and by what methods. Research Design Introduction A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the overall operational pattern of the project that stipulates what information needs to be collected. advantages. 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. insurance intermediaries and other organisations connected with the insurance business. 1938 (4 of 1938).
Title of Study “Comparative analysis of HDFC standard life insurance company limited with other insurance company for HDFC standard life insurance company ltd. While marketing policies the sole duty of an advisor/ agent is to provide insurance plans as per customer requirements. In effect plans (insurance products) should be flexible to suit individual requirements. 15 . A survey was undertaken to understand the preferences of Indian consumers with respect to insurance. Solutions and recommendations are made based on qualitative and quantitative analysis of the data. the amount of annual premium payable (capacity and willingness to spend). This research tries to analyze some key factors which influence the purchase of insurance like the term of the policy. the type of company. Objectives of the Study 1) To analysis the product details of HDFC Standard life Insurance Company limited and other insurance company.” Statement of the Problem This study was undertaken by HDFC SLIC to identify which type of insurance plans HDFC SLIC should market to beat other insurance company in India. risk taking ability and the influence of advertising.
3) To find out factors that influence customers to purchase insurance policies and give suggestions for further improvement. Percentages and averages have also been used to represent data clearly and effectively. Research Methodology Type of Data Collected There are two types of data used. newspaper articles etc. 16 . Study Area: The study of area of my project is depended upon the secondary data which is collected from the internet. Plan of Analysis Tables were used for the analysis of the collected data. the internet. telephonic interview as well as the personal interview methods of data collection. magazines and books which are mentioned in Bibliography. They are primary and secondary data. the company website. Primary Sources These include the survey or questionnaire method.2) To find ‘Points of Parity’ and ‘Points of Difference’ of HDFC Standard Life Insurance Company Limited and other insurance company. Secondary Sources These include books. product brochures. Primary data is defined as data that is collected from original sources for a specific purpose. company brochures. Secondary data is data collected from indirect sources. competitor’s websites etc.
is one of India's leading private insurance companies.Company Profile of HDFC Standard Life Insurance Company LTD. UK. 5. structure. 2009 stood at Rs.070 lives as on March 31. The gross premium income. As a joint venture of leading financial services groups. holds 72. which offers a range of individual and group insurance solutions. To ensure this. Group solutions have been designed to offer complete flexibility combined with a low charging 17 . and setting up appropriate systems and processes with optimum use of technology.69 crores.43% and Standard Life (Mauritius Holding) 2006. we have concentrated our focus on expansion of branch network.00% of equity in the joint venture. HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. organising an efficient and well trained sales force. for the year ending March 31. The company has covered over 8. while the rest is held by Others. 2009. 2009 HDFC Ltd. holds 26. Introduction: HDFC Standard Life Insurance Company Limited. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited). which can be easily customised to specific needs. As on February 28. HDFC SLIC have a range of individual and group solutions.564.33. India's leading housing finance institution and a Group Company of the Standard Life Plc. Ltd.
financially secure business supported by two strong and secure promoters – HDFC Ltd and Standard Life. our differentiators are: Strong promoter HDFC Standard Life is a strong. Our core values are drilled down to all levels of employees. as we wish to be perceived as an institution with high moral standing. 18 . Being the first private player to be registered with the IRDA and the first to issue a policy on December 12. Moreover. HDFC Ltd’s excellent brand strength emerges from its unrelenting focus on corporate governance. Standard Life is a strong. We were the first private life insurer to break the ice using the idea of self-respect instead of ‘death’ to convey our brand proposition (Sar Utha Ke Jiyo). high standards of ethics and clarity of vision. when the Indian insurance space was opened for private participation. Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space. as these are inviolable. Today. like and prefer to do business. financially secure business and a market leader in the UK Life & Pensions sector. Since our inception in 2000. our brand thought. we have consistently focused on setting benchmarks in all aspect on insurance business.As all these areas form the basic infrastructure for establishing the highest possible customer service standards. 2000. we are one of the few brands that customers recognize. We continue to promote high integrity in business practices and shun short cuts and unethical practices. is the most recalled campaign in its category. Sar Utha Ke Jiyo.
The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. sales in the industry have been characterized by over reliance on tax benefits and limited advice-based selling.Investment Philosophy We follow a conservative investment management philosophy to ensure that our customer’s money is looked after well. irrespective of the market condition. looks at the whole financial picture. consistent. the first of its kinds in the industry. As a life insurance company. with specific objectives in mind. 'Disha'. we understand that customers have invested their savings with us for the long term. our investment focus is based on the primary objective of protecting and generating good. Risk Control Framework HDFC Standard Life has fully implemented a risk control framework to ensure that all types of risks (not just financial) are identified and measured. Need-based selling process. helps customers understand their latent needs at the first instance itself without focusing on product features or tax benefits. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated 19 . Thus. and stable investment returns to match the investor’s long-term objective and return expectations. Need-Based Selling Approach Despite the criticality of life insurance. Customers see a plan not piecemeal product selling. Our eight-step structured sales process ‘Disha’ however.
we are extremely satisfied with the base that we have created for the longterm success of this company.Focus on Training Training is an integral part of our business strategy. Today. Transparent Dealing We are one of the few companies whose product details. Besides the mandatory training that Financial Consultants have to undergo prior to being licensed. selling skills. but to create maximisation of stakeholder's value. Focus on Long-Term Value HDFC Standard Life do not focus in the business of ramping up the topline only. Strict Compliance with Regulations We have initiated and implemented many new processes. clauses are clearly communicated to help customers take the right decision. This has now been made compulsory by IRDA for all insurance companies under the new Unit 20 . were authorized by the company to sell ULIPs. Almost all employees have undergone training to enhance their technical skills or the softer behavioural skills to be able to deliver the service standards that our company has set for itself. pricing. The agents who successfully completed this training only. we have developed and implemented various training modules covering various aspects including product knowledge. some of which were found useful by the IRDA and later made mandatory for the entire industry. objection handling skills and so on.
He is the Chief Executive Officer of HDFC Limited. Parekh is the Chairman of the Company. 2. Mr.Linked Guidelines. be it: 1) Protection: Need for a sound income protection in case of your unfortunate demise 2) Investment: Need to ensure long-term real growth of your money 3) Savings: Save for the milestones and protect your savings too 4) Pension: Need to save for a comfortable life post retirement 5) Health: Cover for health related exigencies Board Members Brief Profile of The Board of Directors 1. 2002. Sir Alexander M. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in 21 . Crombie joined the Board of Directors of the Company in April. Mr. Diversified Product Portfolio HDFC Standard Life’s wide and diversified product portfolio help individuals meet their various needs. He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). Deepak S.
Campbell joined the Board of Directors in November 2005. holding the positions of UK Economist. She is responsible for overseeing all aspects of lending operations of HDFC Limited. Prior to this. Skeoch was working with M/s. Keki M. 5. Karnad is the Executive director of HDFC Limited. Ms. Director of Controls and Strategy HSBS Securities and Managing Director International Equities. Mr. He is currently the Managing Director of HDFC Limited. He was appointed as its Managing Director in November. Mistry joined the Board of Directors of the Company in December. Marcia D. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. He was also responsible for Economic 22 . Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations. Renu S. Corporate Responsibility and Shared Services Centre. Executive Director. 2000. is a graduate in law and holds a Master's degree in economics from Delhi University. James Capel & Co. 3. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. 4.March 2004. Mr. Chief Economist. Sir Crombie is a fellow of the Faculty of Actuaries in Scotland. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Ms. Ms. Mr. 2000. Norman K. Mr. 6. Asia Pacific Development. Strategy & Planning. He joined HDFC Limited in 1981 and became an Executive Director in 1993.
Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences. Mr. 7. Mr. Mr. USA.and Investment Strategy research produced on a worldwide basis. Mr. Mr. Skeoch joined the Board of Directors in November 2005. Grimstone was appointed Chairman in May 2007.. Mr. Mr. He was also Director. Gerald E. Corporate Business Development at General Electric headquarters in Fairfield. 9. 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). Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. He became a director 23 . until 2002 was a Partner & Vice-President at Bain & Company. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Pant. Gautam R. Inc. Mr. financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. an International Association of Independent Accounting Firms and has authored several papers of professional interest. Boston. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. 8. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks. 10. where he led the worldwide Utility Practice. having been Deputy Chairman since March 2006. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International.
driving sales and servicing strategy. 2007. 11. and was Vice Chairman of Schroders’ worldwide investment banking activities from 1998 to 1999. He is also Chairman of Candover Investments plc and was appointed as one of the UK’s Business Ambassadors by the Prime Minister in January 2009. 24 . contributing to product launches and performance management system. 2007 stood at Rs.856 Crores and new business premium income at Rs. leading recruitment. Mr. HDFC has since emerged as the largest residential mortgage finance institution in the country. 2. overseeing new business and claims settlement. During his 16-year tenure at HDFC Limited. Paresh Parasnis is the Principal Officer and Executive Director of the company since November 14. The gross premium income for the year ending March 31. he has been associated with the HDFC Group since 1984. 119 Crores. Mr. he was responsible for driving and spearheading several key initiatives. As one of the founding members of HDFC Standard life. HDFC Incorporated in 1977 with a share capital of Rs 10 Crores.000 lives year ending March 31.of The Standard Life Assurance Company in July 2003. A fellow of the Institute of Chartered Accountants of India. He is the Alternate Director to Sir Alexander Crombie.624 Crores. Hong Kong and New York.77. customer interactions etc. The company has covered over 8. 2008. Gerry held senior positions within the Department of Health and Social Security and HM Treasury until 1986. The corporation has had a series of share issues raising its capital to Rs. He then spent 13 years with Schroders in London. 1. Parasnis has been responsible for setting up branches.
Oman and Qatar.07 %. 2007) 3). HDFC is the largest housing company in India for the last 27 years.I 1) Incorporated in 1977 as the first specialized Mortgage Company in India. HDFC also has an International Office in Dubai.Loan Approvals (Up to Dec 2007) 2). Snapshot-II 1).Distribution 25 Rs. India.20 bn) 2. (US $ 18.5 million. b) HDFC Asset Management Company – HDFC holds 50.) Rs. UAE with service associates in Kuwait.25%. 3) Besides the core business of mortgage HDFC has evolved into a financial conglomerate with holdings In: a) HDFC Standard Life insurance Company.HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai.669 billion (US $ 15.Loan Disbursements (Up to Dec. 2) Almost 90% of initial shareholding in the hands of domestic institutes and retail investors. . 805 billion. e) HDFC Chubb General Insurance Company – HDFC holds 74%.Housing Units Financed 4). Current 77% of shares held by foreign institutional investors. Snapshot . d) Intelenet Global (Business Process Outsourcing) – HDFC holds 50%.HDFC holds 78.30 bn.1% c) HDFC Bank.HDFC holds 22.
Offices b. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology. Deepak M Satwalekar is the Managing Director and CEO of the Company since November. Washington DC. Bombay and a Masters Degree in Business Administration from The American University. Group Companies HDFC Bank: World Class Indian Bank. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). he was the Managing Director of HDFC Limited since 1993. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). Intelenet Global: BPO services for international customers. He joined HDFC Limited in a senior management position in 1978. Deepak S Parekh is the Chairman of the Company. Mr. HDFC AMC: One of the top 3 AMCs in India.a. 2000. He is the Chief Executive Officer of HDFC Limited.Preferred investment manager. Outreach Programs 181 90 Key Players Mr.among the top private banks in India. Prior to this. CIBIL: Credit Information Bureau India Limited. 26 . Mr.
27 . company supporting generation for last 179 years. HDFC Mutual Fund HDFC reality. opening offices in other towns and acquitting other similar businesses.HDFC Chubb: Upcoming Private companies in the field of General Insurance. The company expanded in the 19th century from kits original Edinburgh premises. 3) Europe’s largest mutual life insurer. which has been in the life insurance business for the past 175 years is a modern company surviving quite a few changes since selling its first policy in 1825. Standard Life Currently has assets exceeding over £ 70 billion under its management and has the distinction of being accorded “AAA” rating consequently for the six years by Standard and Poor. 2) Currently over 5 million Policy holders benefiting from the services offered.com: Helps to search properties in all major cities in India HDFC securities Standard Life Standard Life is Europe’s largest mutual life assurance company. Standard Life. Snapshot 1) Founded in 1875.
HDFC is the majority stakeholder in the insurance JV with 81. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd. HDFC is rated ‘AAA ’ by both CRISIL and ICRA.624 crores. 15. which offers a range of individual and group insurance solutions. Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s.all important factors to consider when choosing your insurer. Both the promoters are will known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry.4% staple and Standard of as a staple 18. Similarly. Is one of India’s leading Private Life Insurance Companies.6% Mr. respectively.856 crores and new business premium income at Rs.Joint Venture HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. 600. Business Growth: The gross premium income of HDFC. a leading provider of financial services from the United Kingdom.000 Cr and Rs. Deepak Satwalekar is the MD and CEO of the venture. HDFC Standard Life Insurance Company Ltd. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. Reach of the JV player is highly rated and been conferred with many awards. 2.) India’s leading housing finance institution and the Standard Life Assurance Company. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.000 Cr. 2007 stood at Rs. 1. for the year ending March 31. 28 .
Key Strength Financial Expertise As a joint venture of leading financial services groups. Strong Ethical Values: HDFC SLIC is an ethical and Cultural Organization. Innovation and Customer Care. False selling or false commitment with the customers is not allowed. Company also declared our 5th consecutive bonus in as many years for our ‘with profit’ policyholders. 2007.The company has covered over 8. which can be easily customized to specific needs. 29 . HDFC standard Life has the financial expertise required to manage long-term investments safely and efficiently. Most respected Private Insurance Company HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the World Class Magazine Business World for Integrity. Range of Solutions HDFC SLIC has a range of individual and group solutions. These group solutions have been designed to offer complete flexibility combined with a low charging structure.77.000 lives year ending March 31.
'The most obvious choice for all'. Its life insurance plans are designed to provide you with flexible options that meet both protection and savings needs. At HDFC SLIC.they will help you get “Sar Utha ke Jiyo”. life insurance plans are created keeping in mind the changing needs of family.Integrity . which means that we are the most trusted company.People Care One for all . 30 .Corporate objective Vision 'The most successful and admired life insurance company. the easiest to deal with.Teamwork .Customer centric . offer the best value for money.Joy and Simplicity Products and Services The right investment strategies won't just help plan for a more comfortable tomorrow -. flexible and value for money products.Innovation . indexation and partial withdrawals. HDFC SLIC products are modern and contemporary unitized products that offer unique customer benefits like flexibility to choose cover levels. Values . It offers a full range of transparent. and set the standards in the industry'.
Pension Plans Pension Plans help to secure financial independence even after retirement. Unit Linked Pension.Plans that are offered by HDFC SLIC 1) Individual Products Protection Plans A person can protect his family against the loss of his income or the burden of a loan in the event of his unfortunate demise. Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan. Unit Linked Young Star. Unit Linked Endowment Plus II. Unit Linked Endowment Plus. disability or sickness. 31 . Money Back. These plans offer valuable peace of mind at a small price. This provides attractive long term returns through regular bonuses. Children's Plan. Savings range includes Endowment Assurance Plan. Unit Linked Young Star Plus II. Unit Linked Pension Plus. Unit Linked Enhanced Life Protection II. Unit Linked Young Star Plus. Savings Plans Savings Plans offer a flexible option to build savings for future needs such as buying a dream home or fulfilling your children’s immediate and future needs. Investment Plans HDFC SLIC’s Single Premium Whole of Life plan is well suited to meet long term investment needs. Pension range includes Personal Pension Plan. Unit Linked Endowment.
It offers different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. 32 . HDFC SLIC offers the following group products to esteemed corporate clients: A) Group Term Insurance B) Group Variable Term Insurance C) Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity.2) 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. a lump sum is paid to those member beneficiaries to help meet some of the immediate financial needs following their loss. On the death of any member of the group insured during the year of cover. 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. 3) Social Product Development Insurance Plan Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year.
By passing on these tasks the premium charged can be lower. HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. The group to be covered is only eligible if it contains more than 500 members. Cover will not start until the premium and all the member information in our specified format has been received. The role of the Development Agency Due to the nature of the groups covered. Benefits On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. an additional lump sum will be paid equal to half the sum assured. Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group. These tasks would include: 33 . Where the death is as a result of an accident. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered.Eligibility Members of the development agency and their spouses with: Minimum age at the start of the policy 18 years last birthday Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time.
Since these additional tasks will impose a burden on the Development Agency. he shall be liable to payment of a fine which may extend to rupees five hundred 34 . 1938 states No person shall allow or offer to allow. Prohibition of rebates Section 41 of the Insurance Act. 10 administration fee to their members. except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer If any person fails to comply with sub regulation (previous point) above. any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy. nor shall any person taking out or renewing or continuing a policy accept any rebate.a) Submission of member data in a specified computer format b) Collection of premiums from group members c) Recording changes in the details of group members d) Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: a) Payment of premiums b) Reporting of claims c) Keeping policy holder information up to date Training and support will be available to give guidance on how to complete the tasks appropriately. the Development Agency may charge a Rs. either directly or indirectly. as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India.
This contribution can be in different modes like yearly. 10. 1000) is invested in the debt or equity market. Unit Linked Versus Other Financial Instruments Parameters Safety Liquidity Returns Life Cover RBI Bonds High None Low 1 amount Fixed Deposits High High Low time 1 amount Mutual Funds Medium High High time 1 amount Unit linked High High High time 10 times 35 . He is allotted a certain number of units based of his contribution. The total value of the fund is Rs. The Net Asset Value is the value of each unit of the fund. Now the money (Rs. Let us take an example. savings. 10 in a fund. Unit linked plans have multiple benefits like life protection. Hence the value of every investor is now Rs. It is found by subtracting the charges and current liabilities from the current assets and investments and dividing this number by the total number of outstanding units. 12 and not Rs. rider protection.Introduction of Unit Linked Plans Unit linked plans are based on the component of the premium or the contribution of the customer towards the plan. 1000 invested became Rs. These plans work like mutual funds. half yearly. investment choices. Suppose the fund value increased by 20%. liquidity and planning for taxes. As a result the Rs. There are 100 investors and each invests Rs. 1000 and each person is allotted 1 unit of Rs 10. transparency. The premium is collected from the policy holder. quarterly and monthly. 1200.
33. Risk is reduced to a large extent as the company invests in a diversified portfolio of stocks. Tax Benefits Income Section Sec. Across all income Upto Rs. subject to the conditions laid down therein. 3.990 All slabs.990 All Rs. Across all income Upto Rs. saved Investment on plans. 1. Sec.399 All slabs saved Investment Rs. of the health riders on insurance available with the conventional plans. HDFC SLIC offers the option of indexation to beat inflation. 33. the benefits you receive are completely tax-free. 10 (10)D Under Sec.000.00. 10.1.00. 36 . 80 CCC of the pension Standard the life Life Plans on insurance plans. safety.We find that life insurance unit linked plans is a good area to invest money in as it provides liquidity. high returns. Across All income Upto Rs. 10(10D).000. 80C Tax Gross Salary Slabs Annual How Much Tax HDFC Can You Save? saved investment Sec. life cover and tax benefits in a single plan. of Sec.000. 80 D Rs.
HDFC SLIC ULIPs Vs Mutual Funds: Who's better?
HDFC SLIC Unit Links Insurance Plan (ULIP) and Mutual Fund (MF) are the two most preferred options for a part time investor to invest into equity. But how do we decide which one should we go for. Though it is very easy to decide, people tend to confuse themselves most of the time. This article talks about some points that you need to consider while deciding which option we want to take. Mutual Fund is pure investments. ULIP are combination of Insurance and Investment. First question that we need to answer while buying ULIP is - Do I need to buy insurance? 1) Does the person seeking insurance have any financial liabilities? 2) If something happens to the person, is there someone who can be in a financial crisis? If the answer to the above two question is yes, I need to buy Insurance.
Now let us compare ULIP and MF based on certain well known facts:
1) Insurance ULIPs provide you with insurance cover. MFs don’t provide you with insurance cover.
A point in favor of ULIPs. But let me tell you that you don’t get this insurance cover for free. Mortality charges (i.e. the price you pay for the insurance cover) get deducted from your investment. 2) Entry Load ULIPs generally come with a huge entry load. For different schemes, this can vary between 5 to 40% of the first year’s premium. MFs have a small entry load of a maximum of 2.5% which can also be waved off if you apply directly (i.e. not through an agent). Here MFs have a huge advantage. If we consider a conservative market return of about 10-15% you may get a zero percent return in the first year. 3) Maturity ULIPs generally come with a maturity of 5 to 20 years. That what ever money you put in, most of it will be locked-in till the maturity. Taxes saving MF (Popularly called as Equity Linked Saving Scheme or ELSS) come with a lock-in period of 3 years. Other MFs don’t have a lock-in period. Again MFs have advantage over ULIPs. ULIPs do allow you to take money out prematurely but they also put penalties on you for doing that. 4) Compulsion of Investing ULIPs would generally make you pay at least first three premiums. MFs don’t have any compulsion on future investments. If you have invested in a MF this year, and in the next year you don’t have enough income or money to do investments you can decide not to make any investments’. Also if you notice that the MF that you invested
in is not giving good returns as compared to some other Funds scheme, you can decide to invest in some other MF. 5) Tax Saving Both the ELSS and ULIP come under 80C and can save you tax. Returns in the both form of investments are tax free. 6) Market exposure ULIPs give you both moderate and aggressive exposure to equity market Debt and Liquid MF let invest with low risk, but don’t give you tax benefit. ULIPs need not be aggressive in equity exposure. That is ULIPs need not keep more that 60% of their funds in equity market. ULIPS also allow changing your equity market exposure. Thus it can help you time the market and still give you tax savings. If a MF has a less than 60% exposure to equity market the returns from it are not tax free. Thus you don’t get to take a conservative stand on returns. 7) Flexibility of time of redemption ULIP will get redeemed on maturing. Premature redemption is allowed with some penalty. In MF premature redemption is not allowed. For a open ended scheme one can redeem the MF anytime after maturity
3) If you want to take a low exposure to equity market and still get tax free returns. according to my opinion 1) If you wish to take an aggressive exposure to equity market. Thus. I would suggest that you invest in MFs and take a term plan. invest in ULIP.This is mainly useful if the market is down at the maturity time of the investment. ULIP won’t be able to give you similar returns. In case of ELSS you can wait till the market comes up again and then redeem them. Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis. go ahead any buy MF. 4) If you want Insurance cover and also good return on investment. As is the cases with mutual funds. ULIP scheme won’t allow you to wait. 40 . 2) If you think you are not disciplined enough to make regular investments and need a whip to make you invest. invest in ULIP but make sure that fund you are invested is conservative fund.
ULIP investors also have the choice of investing in a lump sum (single premium) or using the conventional route.e.Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain. i. The minimum investment amounts are laid out by the fund house. However it should not be construed that barring the insurance element there is nothing differentiating mutual funds from ULIPs. half-yearly. making premium payments on an annual. diversified equity funds. Mode of investment/ investment amounts Mutual fund investors have the option of either making lump sum investments or investing using the systematic investment plan (SIP) route which entails commitments over longer time horizons. In ULIPs.e. How ULIPs can make you RICH! Despite the seemingly comparable structures there are various factors wherein the two differ. 41 . i. ULIPs can be termed as mutual fund schemes with an insurance component. balanced funds and debt funds to name a few. 1. quarterly or monthly basis. Generally speaking. In this we evaluate the two avenues on certain common parameters and find out how they measure up. determining the premium paid is often the starting point for the investment activity.
any expense above the prescribed limit is borne by the fund house and not the investors. Insurance companies have a free hand in levying expenses on their ULIP products with no upper limits being prescribed by the regulator.e. 2. ULIP investors also have the flexibility to alter the premium amounts during the policy's tenure. For example equity-oriented funds can charge their investors a maximum of 2. Similarly funds also charge their investors entry and exit loads (in most cases. either is applicable). Entry loads are charged at the timing of making an investment while the exit load is charged at the time of sale.5% per annum on a recurring basis for all their expenses. For example an individual with access to surplus funds can enhance the contribution thereby ensuring that his surplus funds are gainfully invested. i. administration among others are subject to pre-determined upper limits as prescribed by the Securities and Exchange Board of India. Expenses In mutual fund investments. This explains the complex and at times 'unwieldy' expense structures on ULIP offerings. conversely an individual faced with a liquidity crunch has the option of paying a lower amount (the difference being adjusted in the accumulated value of his ULIP). the Insurance Regulatory and Development Authority. The freedom to modify premium payments at one's convenience clearly gives ULIP investors an edge over their mutual fund counterparts. expenses charged for various activities like fund management.This is in stark contrast to conventional insurance plans where the sum assured is the starting point and premiums to be paid are determined thereafter. sales and marketing. 42 .
The only restraint placed is that insurers are required to notify the regulator of all the expenses that will be charged on their ULIP offerings. albeit most fund houses do so on a monthly basis. For example plans that invest their entire corpus in equities (diversified equity funds). 3. Some insurance companies do declare their portfolios on a monthly/quarterly basis. As was stated earlier. 43 . regular portfolio disclosures on the other hand can enable investors to make timely investment decisions. During our interactions with leading insurers we came across divergent views on this issue. Expenses can have far-reaching consequences on investors since higher expenses translate into lower amounts being invested and a smaller corpus being accumulated. the other believes that there is no legal obligation to do so and that insurers are required to disclose their portfolios only on demand. Portfolio disclosure Mutual fund houses are required to statutorily declare their portfolios on a quarterly basis. ULIP-related expenses have been dealt with in detail in the article "Understanding ULIP expenses". Investors get the opportunity to see where their monies are being invested and how they have been managed by studying the portfolio. However the lack of transparency in ULIP investments could be a cause for concern considering that the amount invested in insurance policies is essentially meant to provide for contingencies and for long-term needs like retirement. There is lack of consensus on whether ULIPs are required to disclose their portfolios. offerings in both the mutual funds segment and ULIPs segment are largely comparable. While one school of thought believes that disclosing portfolios on a quarterly basis is mandatory.
For example plans that invest their entire corpus in equities (diversified equity funds). he could have to bear an exit load and/or entry load. he could have to bear an exit load and/or entry load. This can prove to be very useful for investors.a 60:40 allotment in equity and debt instruments (balanced funds) and those investing only in debt instruments (debt funds) can be found in both ULIPs and mutual funds. 4. 44 . a couple of switches are allowed free of charge every year and a cost has to be borne for additional switches). he can book profits by simply transferring the requisite amount to a debtoriented plan. If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt from the same fund house. a 60:40 allotment in equity and debt instruments (balanced funds) and those investing only in debt instruments (debt funds) can be found in both ULIPs and mutual funds. Effectively the ULIP investor is given the option to invest across asset classes as per his convenience in a cost-effective manner. If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt from the same fund house. On the other hand most insurance companies permit their ULIP inventors to shift investments across various plans/asset classes either at a nominal or no cost (usually. Flexibility in altering the asset allocation As was stated earlier. offerings in both the mutual funds segment and ULIPs segment are largely comparable. for example in a bull market when the ULIP investor's equity component has appreciated.
This holds well. On the other hand in the mutual funds domain. if the investments are held for a period over 12 months. conversely investments sold within a 12-month period attract short-term capital gains tax @ 10%. it is vital 45 . Maturity proceeds from ULIPs are tax free. Despite the seemingly similar structures evidently both mutual funds and ULIPs have their unique set of advantages to offer. only investments in tax-saving funds (also referred to as equity-linked savings schemes) are eligible for Section 80C benefits.On the other hand most insurance companies permit their ULIP inventors to shift investments across various plans/asset classes either at a nominal or no cost (usually. irrespective of the nature of the plan chosen by the investor. This can prove to be very useful for investors. he can book profits by simply transferring the requisite amount to a debt-oriented plan. In case of equity-oriented funds (for example diversified equity funds. debt-oriented funds attract a long-term capital gains tax @ 10%. for example in a bull market when the ULIP investor's equity component has appreciated. As always. while a short-term capital gain is taxed at the investor's marginal tax rate. 5. a couple of switches are allowed free of charge every year and a cost has to be borne for additional switches). Tax benefits ULIP investments qualify for deductions under Section 80C of the Income Tax Act. the gains are tax free. Effectively the ULIP investor is given the option to invest across asset classes as per his convenience in a cost-effective manner. Similarly. balanced funds).
2. Planning for their retirement. Protection from any miss happening. Life Insurance is now being regarded as a versatile financial planning tool. One can see that insurance is a better choice while making investment decisions because of features like: 1. the mindset has changed. Better returns 3. Mutual funds. Bonds. Research indicates that Indians have four basic financial needs during their life time: 1. Securing their children’s education 4. most of the people used to invest in traditional market (i. The need of the hour is recognize the power of the Financial Planning. Asset accumulation such as buying a house or a car. Equity.e. Government securities and bonds etc. One who can draw out a well defined financial plan according to his needs would expect good returns from the market in the long run. How ever the awareness of financial planning among the consumers is still low but with the increase in purchasing power of the customers and with coming up of new innovative products customers has started to plan for 46 .for investors to be aware of the nuances in both offerings and make informed decisions. Protecting their family 3.2% of the insurable population in India possessing Life insurance. Till some years back. but with the emergence and popularity of Unit Linked Insurance products. Tax savings 2. the country has a vast potential which has been left untapped now.). India being a country of vast population of over one billion with only 33.
2008 Received 2008 CIO Bold 100 and CIO Security Awards HDFC Standard Life has received the 2008 CIO Bold 100 Award. including identity management.’ recognized those executives and organizations that embraced great risk for the sake of great reward. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure. The company received the 2008 CIO Bold Award for its mobile workforce portal and the CIO Security Award for its initiatives for a secure computing environment. HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO Security Award aimed at CIOs. 47 .their financial needs and in coming years the awareness is expected to increase. The changing products of insurance with changing needs of the customers can be a major cause for the growth of the insurance industry. This year's award theme. Awards & Accolades Sept. This annual award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. ‘The Bold 100. Thus insurance industry has tremendous growth opportunities provided that it meets the expectations of the customers. whose pioneering implementations have taken their enterprise security to the next level.
its path-breaking implementation of an enterprisewide workflow system. HDFC Standard Life has won the PCQuest Best IT Implementation Award for two years consequently. licensing. HDFC Standard Life’s Unit Linked Savings Plan advertisement was 48 . The objective was drive awareness and ask people to invest in a pension plan to live life to the fullest even after retirement. without compromising on one’s self-respect March. the applications for its financial consultants. 2008 Silver Abby at Goafest 2008 HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing craft category at the Goafest 2008 organised by the Advertising Agencies Association of India (AAAI). the company received the award for Wonders. one of the leading private insurance companies in India. Last year. The radio commercial ‘Pata nahin chala’ touched several changes in life in the blink of an eye through an old man’s perspective. 2008 Unit Linked Savings Plan Tops Mint Best TV Ads Survey The Unit Linked Savings Plan advertisement of HDFC Standard Life. providing centralized control over a vast geographical spread for key business units such as inventory. for February 2008.May. has topped Mint’s Top Television Advertisement survey conducted. Read more about the ‘Consultant Corner’ tool in the ‘HDFCSL in News’ Section. March. 2008 Received PCQuest Best IT Implementation Award 2008 HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for Consultant Corner. etc. training.
Mint’s exclusive report.’ by 4Ps Business and Marketing magazine. January. This was then. thus giving HDFC Standard Life the credit of bringing up one such glorious advertising and marketing moment in the last 60 years. 2008 Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr Deepak M Satwalekar. and claim). February.ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability. 49 . followed by others including ICCI Prudential. The respondents were between 18 and 40 years. HDFC Standard Life. Managing Director and CEO. ‘New voices in a makeover’ outlines the survey in detail. enjoyment. received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. believability. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. 2008 Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments HDFC Standard Life’s advertising slogan honoured as one of ‘60 Glorious Advertising & Marketing Moments' over the last 60 years in India. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations.
6) Online accessibility: It makes the process faster and make the customer delighted. 1938 states an agent to be one who is not: A minor. Textile. 2) 3) 4) 5) Huge branch network HDFC is having 450 branches in all over the country. It has a very handsome experience in the field of finance because it completely involved in finance Sector only where as the others are running in many other field also like Reliance (Petroleum. Sales Force: Properly trend licensed and Educated People are the strength of the company. So that they could give the best customer service. Telecom etc. HDFC pacify the need of invertors up to healthy level and make the strong relationship with them. b) Found guilty of criminal background. 50 . Financial Background and Experience: HDFC existing in the market since 1977.) Ethics and Values: HDFC is an ethical and cultural organization which prevents the false selling and prohibit the false commitment to the customer. Who can be the financial consultant: ? Section 42(4) of the amended Insurance Act. a) Found to be sound mind by a court of competition jurisdiction.Distribution Strategy Why HDFC is better …? 1) Investment returns: investment returns and business growth provided by HDFC is validated by bajaj Capital report.
Devote a time and energy during training.c) Found guilty of having knowingly participated in or connived at any fraud /dishonesty or misrepresentation against an insured. b). d) Continuity of service throughout the period of insurance. 51 . Work of financial consultant: The FC is the interface between the customer and insurance company. c). b) Finding the best product or products available in the market. Ability to sell a range of financial products. Why should financial consultant choose HDFC standard life ? Brand value and the reputation of the partners (HDFC Limited) Market leader in housing finance: a. a) Assessing and analyzing the clients risk profile. c) Negotiating the best deal available. What do We Expect from financial Consultant? a). The agent should be able to accomplish the following service. determination and ability to become professional financial consultants. We look forward to a long term mutually beneficial relationship. What type of people are we looking for ? a). 1). Objective of FC: Recruitment of Financial consultant (FCs) of a excellent profile and their retention strategies and what are their benefit that company going to provided for retention of their FCs. b. Committed people who have the drive. 3). Sell at least 5 policies each month once after licensed with company. b). 2). 15 lakhs home financed. lakhs retail deposits customer base.
position and company name. Got the knowledge about. 6) Product innovation.1) Reputation for providing the higher standards of customer service. Strategies for recruitment of FC: Strategies Employed to achieve the target are as follows:1) Telecalling 2) Contacting the person directly (interview) 3) Collect references. how to differentiate our product form that of LIC. Made more and more people aware about my companies Products (Policies) Taken some appointments for policies and got positive response from 8 persons with the help of my BDM. Check the prospect has time to speak. State the reason for the call. State the name. 2) Financial Strength of the partners. Increase in confidence level. Achievements: Recruited eight financial consultants for company. 3) Brand value and the reputation of the partners standard life: 4) 175 years experience in life insurance. the meeting will be benefiting the 52 . Clearly succinctly explain how prospect. 5) Largest mutual life insurer in Europe. Some important steps to make effective telecalling:Open the call in a friendly and positive way.
(www. 20% of the sum assured is payable after 5. 10.15 and 20 years and the balance 40% plus the accrued bonus becomes payable at the 25th year. 53 . 15 and 20 years and the balance 40% is payable at the 20th year along with accrued bonus.lic. The bonus is also calculated on the full sum assured.10. Respondents may not be at home and may have to re-contacted or replaced by others. Limited response from client. Here is a time limitation it is not possible to study whole thing I covered some special aspect as well as some topics. Competitive Analysis Life Insurance Corporation of India (LIC) LIC has an excellent money back policy which provides for periodic payments of partial survival benefits as long as the policy holder is alive. 15% of the sum assured becomes payable after 5. An important feature of these types of policies is that in the event of the death of the policy holder at any time within the policy term the death claim comprises of full sum assured without deducting any of the survival benefit amounts which have already been paid.com) For a 25 years term . it may be hampered due to certain limitation. Some of the limitations are as follows: To cover the various section for the society. Getting accurate response form the respondents due to their inherent problem is difficult.Limitations:So though the study aim to achieve the above mentioned Objective in full earnest and accuracy.
The company has an excellent brand ambassador – Mr. social security schemes – diversified portfolio of products. money back plan for women. The company is a merger between ICICI Bank which is the biggest private bank in India and Prudential Plc which is a global life insurance company.HDFC SLIC does not have a money back policy. LIC offers 66 different plans. plans for the handicapped individuals. HDFC SLIC could diversify its product portfolio. In this plan even if the market falls. magazines. The stock market performance of ICICI Prudential is much better than HDFC SLIC. The returns on the growth fund were 46. While marketing insurance products I found that many customers wanted to purchase these plans. endowment assurance plans. special plans. newspapers. His 54 .70% offered by HDFC SLIC. term assurance plans. It could add more plans for high worth individuals and women. plans for high worth individuals. radio etc. bill boards. Amitabh Bacchan. The advertisements are showcased in movies. child plans. It is a guaranteed plan which ensures the company carefully invests your money. The company has an investment plan which is market related – Invest Shield Life. ICICI Prudential ICICI Prudential is a stiff competitor for HDFC SLIC. It could offer a money back plan and capture some portion of this market. plans are formulated for specific occasions – whole life plans. The company is very well advertised. unit linked plans. Customers are attracted by higher returns and this is a plus point for Prudential. the premium will be returned to investors. television. pension plans.28% compared to the 42.
Some of the key organizations within the group are Hindalco and Grasim. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc. one of the largest business houses in India and Sun Life Financial Inc.promotion of the company builds trust and faith in the minds of our people.Mr.. It had assets under management of over US$343 billion. Birla Sun Life Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group. and its partners today have operations in key markets worldwide. Japan. Hong Kong. 53400 crores (as on 31st March 2007). The company is a leading player in the life insurance market in Canada.birlasunlife.com) The Aditya Birla Group has a turnover close to Rs. BSLI has invested heavily in technology to build world class processing capabilities.. 33000 crores with a market capitalization of Rs. It has over 72000 employees across all its units worldwide. Sun Life Financial Inc. It is led by its Chairman . India. Being a customer centric company. 8000 is charged. including Canada. BSLI has covered 55 . offers a formidable protection for your future. It is 35% during the first year. (Source: www. Hence the policies are not accessible to the lower strata of the society. However the charges are very high in the plans offered by ICICI Prudential. Indonesia. the United States. Kumar Mangalam Birla. the United Kingdom. China and Bermuda. Also a higher minimum premium of Rs. 15% in the next year and 3% from the third year onwards. the Philippines. a leading international financial services organization. as on 31st March 2007.
Together they are committed to offering you financial solutions that provide all the security you need for your family and yourself. It is leading by 78 crores. The company has a capital base of 520 crores as on 31st July. home insurance. 56 . It has experienced a whopping growth of 216% in the last financial year.000 policies and is backed by 550 offices across India. Hence the fund value is greatly reduced. The initial charges for the first year are 65%. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premium income. The mortality charges are lower than HDFC SLIC.a. health and corporate insurance. motor insurance. There are guaranteed returns of 3% p. 2007. a trusted automobile manufacturer for over 55 years in the Indian market. Its Flexi Life Line Plan offers life long insurance cover till the policy holder is 100 years of age. The entry age could be zero years which allow even new born babies to be insured. 00. It offers travel insurance. Bajaj Allianz is the number one private life insurer for the year 2005 – 2006.more than a million lives since inception and its customer base is spread across more than 1000 towns and cities in India. The company has sold 13. net of policy charges after every 5 years from the eleventh policy year onwards. However the charges are very high. Bajaj Allianz Bajaj Allianz is a joint venture between Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto.
Not only will the family face the emotional and financial loss of their father but they will also have to repay the home loan or risk being homeless.5 lakhs in case the person suffers from any critical illness. The company must sponsor shows and give presentations in corporate houses. In one of the plans the company offers hospital cash benefit wherein it will pay Rs. The only earning member is the father. The problem arises if something were to happen to him within these fifteen years. The financial health check must be performed for every prospect to assess his/her true financial position and needs. Annual premium is much less (about Rs. The company offers high coverage plans at low cost. More modern techniques must be adopted. Charges are relatively low compared to HDFC SLIC for some policies. there is a family of four. There is a plan even for a policy term of 1 year. He has just taken a loan from a bank of 20 lakhs to purchase a new home.12. Marketing Problems The old and out dated technique of tele marketing is used to prospect customers. He is able to repay the loan with his current salary in 15 years.Tata AIG Tata Aig is a joint venture between the Tata group and American International Group Inc. 2500 per day in case of hospitalization and Rs. Your family can continue to enjoy their current lifestyle even in the case of something happening to you. 6712) to avail such a good benefit. For example. Some of the advisors skip this vital step and 57 . These plans are very flexible and HDFC SLIC could adopt this idea of insuring individuals for short periods of time.
the prospect ends up with a plan they do not appreciate and soon surrender or discontinue. Short term plans are available only at large premium Customers do not have risk appetite to invest in shares Some prospects have already invested and are not interested Consumers don’t want to undertake medical examinations Large amount of documentation Customers do not like their money locked up for many years Lack of awareness about the unit linked funds in the market No money back plan present in the product portfolio 10) 11) 12) 13) 14) 15) 16) 17) in further investments Suggestions for Improvement 1) Advertise about the company and its products – it motivates individuals to purchase insurance 2) Create a positive perception about insurance 58 . 1) Some of the main problems in marketing the policies are: 2) Large amount of competition (18 players in the market) 3) Other brands are well advertised and have higher recall value 4) LIC is considered a safer option 5) Face competition from banks and mutual funds 6) High premium policies are difficult to market 7) Incorrect perception about insurance 8) Interested prospects might have a lack of time and postpone investments 9) Customers get defensive if you cold call.
indexation. life cover. tax benefits.3) Speak about the good features a plan offers like high returns. accident cover while prospecting customers 4) Try to sell the product/plan which the consumer requires and not the plan where the advisors benefit is higher 5) Improve the efficiency in operations 6) Bring out policies with small premiums payable for short periods of time – Rs. 10000 per annum for 10 years 7) Attract the youth of India with higher returns on investment as returns are the motivating factor which influence purchase of insurance 8) Promote insurance in colleges and corporate houses 9) Promote HDFC SLIC as an Indian Company to build trust 10) 11) 12) 13) 14) HDFC SLIC could have a brand ambassador or a mascot to Should have partial withdrawals from the first year onwards Tap the rural market where there is large potential Diversify product portfolio Make products more straight forward – reduce complexities promote its services 59 . 5000 – Rs.
49 years 46 50 . of Respondents 18 . 60 .25 years 127 26 .Analysis & Interpretation “A Survey on the Life Insurance Industry in India” BY HDFC SLIC 1) Age Group of Surveyed Respondents TABLE 1: Age group No. 25% fall in the age group of 26 – 35 years and 17% fall in the age group of 36 – 49 years.60 years 24 More than 60 years Analysis: 6 From the table above we find that 47% of the respondents fall in the age group of 18 – 25 years.35 years 67 36 .
Therefore the target market would be working individuals in the age group of 18 – 25 years having surplus income. 23% are students and 18% are into business. of respondents 62 5 116 49 24 14 Analysis: From the table above it can clearly be seen that 43% of the respondents are working professionals. As of now many consumers have a false perception that insurance is only meant for people above the age of 50. These individuals could be induced to purchase insurance plans on the basis of its tax saving nature and as an investment opportunity with high returns. Contrary to popular belief the younger you are the more insurance you need as your loss will mean a great financial loss to your family. Insurance could help them with this and this fact has to be conveyed to the consumer. Individuals at this age are trying to buy a house or a car. spouse and children (in case the individual is married) who are financially dependent on you 2) Customer Profile of Surveyed Respondents TABLE 2: Customer profile Student Housewife Working Professional Business Self Employed Government service employee No. interested in good returns on their investment and saving income tax.Therefore most of the respondents are relatively young (below 26 years of age). 61 .
4) Market Share of Life Insurance Companies Table 4: Life Insurer HDFC Standard Life Birla Sun Life AVIVA Life Insurance Bajaj Allianz LIC Tata AIG ICICI Prudential ING Vysya Bharti AXA Others Analysis: Number of Policies 4 3 6 7 55 6 12 6 2 2 62 . So in future business of life insurace will gro further.3) No. So there is a very big scope for life insurance companies to cover these people. Rest all don’t have a single policy in their name. of Respondents who have Life Insurance Policy in their own name TABLE 3: Person who have life insurance policy Yes 103 No 167 Analysis: This table shows that out of total 270 respondents only 103 or 38% respondents have life insurance policy in their name.
80000 Rs. Today the organization has grown to 2048 offices serving 18 crore policies and has a corpus of over 340000 crore INR. 10001 . 24900 Rs. 5000 . 39% of the respondents surveyed pay an annual premium less than Rs.Rs.Rs. 50001 . 80001 . 10001 towards life insurance.In India. 15000 Rs.60001 . 5) Annual Premium Paid by Individuals for Life Insurance Table 5: Premium paid (p. 15001 and 17% pay an annual premium less than Rs.Rs.) Rs. the largest life insurance company is Life Insurance Corporation of India. 50000 Rs. 25000. 63 . It has been in existence in India since 1956 and is completely owned by the Government of India. 25% of the respondents pay an annual premium less than Rs. of respondents 40 26 18 10 4 2 3 Analysis: From the table above we find that. 5000 per annum. 25000 . 10000 Rs.Rs.a. 100000 No.Rs. 60000 Rs. 15001 . Hence we can safely say that HDFC SLIC would be able to capture the market better if it introduced products/plans where the minimum premium starts at Rs.Rs.Rs.
6) Popular Life Insurance Plans TABLE 6: Type of Plan Term Insurance Plans Endowment Plans Pension Plans Child Plans Tax Saving Plans No. respectively.Only 19% of the respondents pay more than Rs. of Respondents 105 122 16 8 19 Analysis: From the table given above we can clearly see that 45% of the respondents hold endowment plans and 39% of the respondents hold term insurance plans.a. They should introduce more products like Easy Life Plus and Safe Guard where the minimum premium is Rs. and Rs. Endowment plans are very popular and serve two purposes – life cover and savings.a. sum assured and accumulated bonus. Term insurance is the cheapest form 64 .6000 p. 12000 p. This would definitely increase their market share as more individuals would be able to afford the policies/plans offered.12000 as the minimum annual premium amount. A term plan is a pure risk cover plan wherein the insured pays a lower premium for a higher sum assured. If the policy holder dies during the policy term the nominee gets the death benefit that is. On survival the policy holder receives the survival benefit with a bonus. 25000 as premium and most products sold by HDFC SLIC have Rs.
The number of units a customer would get would depend on the unit price when they pay the premium. bill boards and pamphlets. This would increase awareness and arouse curiosity in the minds of the consumer which would enable the company to market its products more effectively. These plans should be promoted through advertising. They can be viewed as a combination of insurance and mutual funds. For the returns sensitive investor term plans do not find favor as they do not offer a return in case the individual does not die during the policy term. newspapers. When the policy matures the individual gets his fund value. radio. 7) Awareness of Unit Linked Insurance Plans Table 7: Awareness of Unit Linked Plans Yes No Analysis: From the table given above we find that 57% of the respondents are aware of unit linked life insurance plans and 43% are not aware of such plans. The value of his fund is calculated by multiplying the net asset value and number of units held by them on that day. 8) Consumer Willingness to Spend on Life Insurance Premium 65 No. The company can advertise through television. of Respondents 154 116 .of insurance and helps the policy holder insure himself for a relatively low premium. Unit – linked plans are those where the benefits are expressed in terms of number of units and unit price.
25. 50.001 . ICICI Prudential.Rs.001 . 10.001 . 6.Rs. 50. We could say that the maximum premium payable by most consumers is less than Rs. HDFC SLIC is faced with a large amount of competition. 25. we can clearly see that 41% of the respondents would be willing to spend between Rs.Table 8: Willingness premium Less than Rs.00. 6. 6001 – Rs. 25000 per annum as life insurance premium. There are 18 insurance companies in India inclusive of LIC. Only 15% would be willing to spend more than Rs.000 Rs. 27 % would be willing to spend between Rs.000 Rs.a. 9) Table Showing Ideal Policy Term Table 9: 66 to spend on No. 10.Rs. 10001 – Rs.000 Analysis: From the table above. 10000 per annum.Rs. respondents 41 73 110 41 5 of Percentage 15% 27% 41% 15% 2% .001 . Birla Sun Life. 25000 p.000 Rs. 25000 for life insurance. Hence to capture a larger part of the market the company could introduce more reasonable plans with lesser premium payable per annum. This is further reduced as most customers have already invested with LIC.000 Rs. Bajaj Allianz etc. 1.
This means that HDFC SLIC could introduce more plans wherein the premium paying term is less than 15 years. 10) Factors That Motivate Respondents to Purchase Insurance Table 10: Parameter Advertisements High returns Advice from friends 67 No.20 years 21 . education. of respondents 51 41 95 38 24 5 3 13 From the table given above it can be seen that 35% of the respondents prefer a policy term of 10 – 15 years. tax saving opportunities as well as providing for every milestone in your life like marriage.30 years More than 30 years Whole life Policy Analysis: No. of Respondents 35 84 46 . 19% prefer a term of 3 – 5 years and 15% prefer a term of 6 – 9 years.5 years 6 .Ideal policy term 3 .25 years 26 .9 years 10 .15 years 16 . children and retirement. The outlook of insurance as a product should be changed from something which you pay for your whole life (whole life policy) and do not receive any benefit (the nominee only receives the benefit in case of your death) to an extremely useful investment opportunity with the prospects of good returns on savings.
But now a days this trend is changing. The debt and money markets usually have low risk attached whereas the equity market is a high risk investment option. They can invest their money in the equity market. a savings element is being added to insurance. With the introduction of the new unit linked plans in the market. of Respondents Government Owned Company Public Company Private Company 127 Limited 62 49 Percentage 47% 23% 18% 68 . Along with protection (life cover).Family responsibilities Others Analysis: 89 16 From the table above it can be seen that 33% of the respondents purchase life insurance to secure their families. 33% take life insurance to get high returns. policy holders get the option to choose where their money will be invested. debt market. The main purpose of insurance is to cover the financial or economic loss that occurs to the family in case of the uncertain death of the policy holder. 11) Preferred Company Type of The Respondents Table 11: Type of Company No. 17% purchase insurance on the advice of their friends and 13% purchase insurance because of the influence of advertisements. money market or a combination of these.
25% 26% .15% 16% .50% More than 50% Analysis: From the chart above it can clearly been seen that 18% of the respondents would like 16 – 20% returns. 29% of the respondents preferred to purchase insurance from a public limited company and only 4% of the respondents preferred a foreign based company. No.20% 21% . of respondents 5 39 46 49 46 27 22 14 22 69 .40% 41% . 12) Minimum Expected Return on Investment Table 12: Expected Returns Less than 5% 5% .Foreign Company Analysis: 32 12% From the table above we find that 60% of the respondents preferred to purchase insurance from a government owned company. newspapers. magazines and radio is required.10% 11% . Therefore the average return on investment should be at least 16 – 20 %. 17% would like returns between 21 – 25% and 17% would like returns of 11 – 15% on their investments. Heavy advertising through television.30% 31% .
Therefore the bulk of investment should be made in the balanced fund with 50% debt and 50% equity.Most consumers are willing to adapt to some amount of risk but still want some guaranteed returns. 70 . Therefore a good combination of the two instruments is often a wise choice. But the returns on these instruments are low (8 – 10%). The returns on the Secure Fund are guaranteed as these involve investment is government securities and the debt market. If the company invests in shares. returns are higher (39%) but correspondingly risk borne by the policy holder is also higher.
25000 and an ideal policy term would be 10 – 20 years. most policies are unit linked plans where a customer is benefited even if their death does not occur during the policy term. Birla Sun Life and Tata AIG. The Indian consumer has a false perception about insurance – they feel that it would not benefit them if they do not live through the policy term. Family responsibilities and high returns are the two main reasons people invest in insurance. It is the largest insurer in the UK and is the 28th largest company in the world. From my research at HDFC SLIC. Max. the company is marketing life insurance products and unit linked investment plans. HDFC must advertise regularly and create brand value for its products and services. Reliance and LIC use television advertisements to promote their products. 5000 – Rs. In India. Aviva. It also faces competition from LIC. This message should be conveyed to potential customers so that they readily invest in insurance. Optimum returns of 16 – 20 % must be provided to consumers to keep them interested in purchasing insurance.Summary HDFC Standard Life insurance is the oldest life insurance company in the world. Nowadays however. ICICI. Every new recruit is provided with extensive training on unit linked 71 . I found that the company has a lot of competition from other private insurers like ICICI. The ideal premium would be between Rs. Most of its competitors like Aviva. To compete effectively HDFC SLIC could launch cheaper and more reasonable products with small premiums and short policy terms (the number of year’s premium is to be paid). On the whole HDFC standard life insurance is a good place to work at.
financial instruments and the products of HDFC.funds. HDFC would be all set to capture the insurance market in India as it has around the globe. In the global market it is already very popular. a fair bit of advertising and modifications to the existing product portfolio. This training enables an advisor/sales manager to market the policies better. The company should try to create awareness about itself in India. With an improvement in the sales techniques used. 72 . HDFC was ranked 13 in the Best Places to Work survey.
tax planner wants corporate agency rather than to be a financial consultant. 8) If the customers are joining HDFC the segment is more of tax consultant. 2) Some customer likes to join HDFC as FCs because it is a Part-time job.Findings 1) Customers are less aware about the private insurance company in market. Customers don’t want to join as financial consultant because it’s on commission basis and they want the job on salary basis. 9) 73 . 4) HDFC is too selective in making a FC rather than to appoint any one like LIC. HDFC SLIC is having good retention strategies for their financial consultant. due to the attractive packages and services provided by various new insurance companies. 7) LIC has created a branded image in 3-4 decades. 3) Many professions like CA. due to which new insurance companies are facing trouble in capturing market share. investment for consultant and other people who are engaged in investment business that is because they want to diversity their portfolio. 5) 6) Educated customers are now vending towards private insurance Companies.
74 . 2) The fear in the customer mind should be removed by company. 3) The insurance companies should try to nurture their brand name timely and attractive facility provide to customer.Suggestion 1) Customers should be made aware of the brand name of Insurance Company through advertisement.
The company must be promoted as an Indian company since consumers seem to have more trust in investing in Indian firms. Consumers must be aware of the new plans available at HDFC SLIC. 75 . The unit linked concept must be specifically promoted. It has businesses spread out across the globe. The general perception of life insurance has to change in India before progress is made in this field. To sustain itself it must promote its products through advertising and improve its selling techniques. There are individuals who are willing to pay small amounts as premium but the plans do not accept premiums below a certain amount. This was a general conclusion drawn during prospecting clients. It was usually found that a large number of males were insured compared to females. People should not be afraid to invest money in insurance and must use it as an effective tool for tax planning and long term savings. The medium of advertising used could be television since most of its competitors use this tool to promote their products. HDFC SLIC could tap the rural markets with cheaper products and smaller policy terms. Individuals below the age of 30 (mostly male) were interested in investment plans. It currently ranks number 4 amongst the insurers in India (Source: annual premium provided by the company) The company faces a large amount of competition. It was registered on 23rd December 2000.Conclusion HDFC standard life insurance is first life insurance Company in India.
com 2) Magazine – a) Insurance World b) The Outlook Money c) Secrets of Successful Insurance Sales by Mr.com d) www.tata-aig-life.com g) www. Jack Kinder 76 .com j) www.iciciprulife.hdfcslic.irdaindia.com h) www.Bibliography 1) Web-Site : a) www.com k) www.lic.com i) www.com f) www.prulife.indiacore.tataaig.bajajallianz.com e) www.bajajallianz.money control.com c) www.com b) www.icici.
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