HDFC

A SUMMER TRAINING PROJECT REPORT ON Emerging Investment Dynamics in Life Insurance Industry UNDER
Submitted in partial fulfillment for the Award of degree of Bachelor of Business Administration
Submitted By: Bharat Rohilla BBA Part IIIrd 2010-2011 Department of Management Studies Arya College of Engineering & I.T.
Submitted To:
RIICO Inds. Area Kukas ,Jaipur-302022 Rajasthan
ARYA College Of Engineering & I.T.
ACKNOWLEDGMENT
Achieving a milestone for any person is extremely difficult without any kind of support. Therefore, the persons who make my task easier, it becomes my humble and foremost duty to acknowledge all of them. I am heartiest thankful to MR. Ravi saxena (Channel & Development Manager), and my friends for giving me valuable information, support and guidance during my project work. Without them it would have not possible for me to work on this project. I would like to express my gratitude to various Customers of HDFC BANK to whom I met during the project and also to HDFC BANK and other members for giving help and support. I am also thanking to all of persons who helped me directly or indirectly for completing this report successfully.
Bh ar at Roh illa
PREFACE
The project work done on Emerging Investment Dynamics In Life Insurance Industry, at HDFC Standard Life, focuses primarily on assessing the future of the Insurance sector in India as seen through the eyes of HDFC. Evaluating the performance of this sector has been very difficult because of the immense competition in this sector. Future of a particular service depends on the performance of that service sector and evaluation of performance of Insurance sector is very difficult task because performance is a multidimensional contract. It is important to recognize what good performance means. From strictly financial perspective, the management can achieve high yield performance primarily through providing quality service to customers.
This project report is divided into two parts: In the first part, a detailed introduction about the company profile and product and services are given.
In the second part, research methodology, observation, and suggestion that had been given to the company based on the research study has been given.
CONTENTS
Acknowledgement Company Certificate H.O.D. Certificate Preface
PART : 1
Introduction Indian Insurance Industry IRDA Act, 1999 History of HDFC Standard Life Insurance The partners Company Profile The partnership Incorporation of HDFC SLIC Our mission Our values product information Our vision Accolades and Recognition
PART : 2
Objective of Study Importance of Study Scope of Study Research Methodology Findings & Analysis 1. Research 2. Swot Analysis 3. Conclusion
Private Market Share Retail : March June, 2008 Recommendation Bibliography Questionnaire Glossary
INDIAN INSURANCE INDUSTRY
The Indian Insurance sector has been going through a transition. With the private sector companies making a foray into the market, the scenario has started to change. Liberalization of the sector has helped in bringing about several positive developments, including the expansion of the market size, introduction of new product, and development of new channel distribution in the market. However, the most important development is that the insurance companies have become more responsible towards customer needs.
The first visible change can be found in the introduction of new products. The most popular among the products are the Unit Linked Policies. Riders have already been introduced and have become very popular. Some of the new policies introduced are:
Policies with reduced of premium for non-smokers Policies launched for the future benefit of children along with the Coverage of the life of their parents.
Policies for village artisans Travel insurance scheme for students going abroad for higher studies Weather insurance policies
Retirement policies, and A group personal accident policy issued in the name of the school for covering all the students of that school.
INSURANCE REGULATORY & DEVELOPMENT AUTHORITY ACT, 1999 (IRDA)
Role of IRDA:
IRDA is a revolutionary piece of legislation. The IRDA was established to regulate, promote, and ensure orderly growth of the life and general insurance industry.
The authority consists of the following members: A chairperson Not more than 5 whole time members Not more than 4 part time members
The members would be appointed by the Central Government. The tenure of the Chairperson and members would be 5 years.
Inaction of IRDA:
To exercise all power and function of controller of insurance. Protection of the interests of the policy holders To issue, renew, modify, withdraw, or suspend certificate of registration To specify requisite qualifications and training for insurance intermediaries To promote and regulate professional organization connected with insurance To conduct inspection/investigation, etc. To prescribe method of Insurance Accounting To regulate investment of funds and margins of solvency To adjudicate upon disputes To conduct inspection and audit of insurers, intermediaries, and other organizations
connected with insurance.
HISTORY OF HDFC SLIC THE PARTNERS Housing Development Finance Corporation Limited (HDFC)
Founded in 1977, HDFC today is the market leader in human finance in India and has extended financial assistance for more than 19 lakh homes. HDFC has over 120 offices in India, presently. It has one international office in Dubai and Service Associates in Bahrain, Kuwait, Qatar, Saudi Arabia, and Sultanate of Oman. HDFCs asset base amounts to over Rs. 21,450 crore. Its financial strength is reflected in highest safety ratings of FAAA and MAAA, awarded by CRISIL and ICRA two of Indias leading credit rating agencies, respectively, for the last 7 years, respectively. It has a depositor base of over 13 lakh depositors and deposit agents force of over 50,000. Of the total deposits, 82% are sourced from individual and trust depositors, which demonstrate the tremendous confidence that retail investors have in the company.
HDFC-promoted companies have emerged to meet the investors and customers need: HDFC Bank for commercial banking HDFC Mutual Funds for mutual fund products
HDFC Life Insurance Company for life insurance and pension products, and HDFC Chubb for general insurance products
Being an institution that is strongly committed to the highest standards of quality and excellence, HDFC has won several accolades in the past few years. One such award is the Ramakrishna Bajaj National Quality Award for the year 1999. This award was instituted to award recognition to Indian companies for business excellence and quality achievement. HDFC is the only company, so far, to receive this award in the service category.
Standard Life Assurance Company (SLAC)
Founded in 1825, Standard Life has been at the forefront of the UK insurance industry for 177 years by combining sound financial judgement with integrity and reliability. The largest mutual life company in Europe, it has operations in United Kingdom, Ireland, Spain, Germany, Austria, and Canada with representative offices in Hong Kong and China.
One of its most recent successes was launch of Standard Life Bank on 1st January, 1998. The introduction of its innovation mortgage product in January 1999 had an immediate impact on the UK market, according for 11% of all new lending within the first operational year. The current deposit base of the bank is US $7.1 billion. Standard Life has total assets of over US $100 billion and new premium last year of US $9.2 billion. Its US investment portfolio accounts for approximately 2% of all shares listed in London Stock Exchange. It is one of the few insurance companies in the world to receive AA rating from two the leading international credit rating
agencies Moodys and S & P.
Not surprisingly, Standard Life is rated as one of the strongest companies in the world. In financial terms, the quality and values Standard Life brings to this venture are immense. The companys reputation in the UK market remains unrivalled. Besides being voted Company of the Year for overall service, for the third consecutive year, Standard Life has been recently voted Company of the Decade by independent brokers. ARYA College Of Engineering & I.T.
COMPANY PROFILE
HDFC STANDARD LIFE

About us Board members Our parentage Our group companies The partnership Incorporation of HDFC Standard Life Insurance Company Our mission Our values Our vision Accolades and Recognition
About us
HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and The Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry all important factors to consider when choosing your insurer. ARYA College Of Engineering & I.T.
Board members
Brief profile of the Board of Directors:
Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive
Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).
Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He
is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants.
Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002.
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 March 2004 and is also the Chief Executive of Standard Life Investments Limited. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland.
Ms. Marcia D Campbell is currently the Group Operations Director in The Standard Life
Assurance Company and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005.
Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.
Mr. G N Bajpai was the former chairman of Life Insurance Corporation of India and Securities and Exchange Board of India. Mr. Bajpai retired from Life Insurance Corporation of India with more than 3 decades of experience and further served SEBI as its chairman for 3 years, during which time he had strengthened the compliance enforcement in SEBI.
Mr. Gautam R Divan is a practicing Chartered Accountant and is a Fellow of the Institute
of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.
Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and
Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.
Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India
Limited. Mr. 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. Deepak M Satwalekar is the Managing Director and CEO of the Company since
November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC.
Our parentage HDFC Limited

HDFC is Indias leading housing finance institution and has helped build more than 23,00,000 houses since its incorporation in 1977. In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
As at March 31, 2004, outstanding deposits stood at Rs.7,840 crores. The depositor base now stands at around 1 million depositors.
Rated AAA by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
High service standards
Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development.
Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.
Standard Life Assurance Company

Standard Life has been looking after the financial needs of customers for morethan 180 years.It currently has a customer base of over 7 million people who rely on the
company for their insurance, pension, investment, banking and health-care needs. It currently manages over 90 billion in assets.
Leader in the employee benefit market in both the UK and Canada.
Rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of
A1 by Moodys. Winner of numerous prestigious industry awards in the UK, - Company of the Year for the seventh successive year - Best Pension Provider (2004 and 2005 Money (Money Marketing including: Awards)
Marketing Awards) Awards)
- Best Pension Product (2003 -2005 Money facts Investment, Life & Pension
Our group companies
The partnership
HDFC and Standard Life first came together for a possible joint venture when they entered the Life Insurance market in January in 1995. It was clear that both the companies shared similar values and belief and a strong relation formed quickly. In October 1995, both the companies signed a 3 year joint venture agreement.
Around this time, Standard Life purchased a 5% stake in HDFC, further strengthening the relationship.
The next three years were filled with uncertainty, due to changes in Government
and Ongoing
delays in getting the IRDA (Insurance Regulatory and Development Authority) Act passed in the parliament. Despite these, both the companies remained firmly committed to the venture. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% stake in Infrastructure Development Finance Co. Ltd. (IDFC). Standard Life started to use the services of the HDFC Treasury Department to advice upon their investments in India. ARYA College Of Engineering & I.T.
Towards the end of 1999, the opening of the market looked very promising. Both the companies agreed that the time was right to move the operation to the level of action. Therefore, in January 2000, an expert team from the UK joined a selected team from HDFC to form the core project team, based in Mumbai.
Incorporation of HDFC Standard Life Insurance Company

The company was incorporated on 14th August, 2000 under the name of Standard Life Insurance Company Limited. HDFCs ambition from as far back as October 1995, was to be the first private company to re-enter the Life Insurance market in India. On 23rd September, 2000, this ambition was realized when HDFC Standard Life was the only company to be Granted a certificate of registration. HDFC group is the main shareholder in HDFC Standard Life, with 81.4% ownership while Standard Life 18.6%. Given Standard Lifes existing investment in HDFC group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon single value and trust. The ambition of HDFC Standard Life is to mirror and showcase the parent companies and to be the yardstick by which all other insurance companies in India can be measured.
Our mission
We aim to be the top new life insurance company in the market

This does not just mean being the largest or the most productive/competitive in the market; rather it is a combination of several things like: ARYA College Of Engineering & I.T.
Customer service of the highest order Value for money for customer Professionalism in carrying out business Innovative products to cater to different needs of different customer Use of technology to improve service standards Increase in market share
Our Values
SECURITY:
Providing long-term financial security to our policy holders is our We shall do this by offering life insurance and pension products. constant endeavor.
TRUST:
We appreciate the trust placed by our policy holders in using our products. We will aim to manage their investments very carefully and live under trust.
INNOVATION:
Recognizing the different needs of our customers by offering them a wide range of innovative products to meet their needs.
Our Vision
The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry.
Our Values Values that we observe while we work:

Integrity Innovation
Customer centric
People Care One for all and all for one
Team work
Joy and Simplicity
`PRODUCT INFORMATION
Terms of life are hard, but the terms of insurance are easy!!
Insurance: The concept
Insurance is the compensation of financial losses on happening of an uncertain event. When insurance is purchased, the risk of financial loss due to happening of that uncertain event is transferred from the policy holder to the insurance company. When the claim arises, company pays a lump sum amount to the policy holder or to her nominee that will be utilized to generate income for them. It is important to note that we do not protect the life of the policy holder but her income earning capacity. We offer plans that cover the risk of income earning capacity on happening of specified uncertain events.
Uncertain events
Uncertainty is part of our everyday life. However, all the uncertain events cannot be insured. As is obvious from the preceding discussion, we focus only on those uncertain events when income earning capacity is stopped, which happens due to the following four major events: Sickness Accident Retirement Death
Insurance products
Today there are many insurance products available in the market. Each company has its set of products that it offers to the customers. This makes it difficult to keep track of all the products at the same time. A better way to understand them is by way of classification. All insurance products can be classified according to four basic categories:
PROTECTION
INVESTMENT
PENSION
SAVINGS
P I ARYA College Of Engineering & I.T.
P S
This classification is based on the needs of the customers. Accordingly, each of these categories are classified by needs and all the products coming under that category aim to fulfill that need, e.g. products coming under investment category aim to promote long-term real growth over the period. Thus, understanding these categories will not only help us to understand various products but also help us to position our products strongly in a competitive market.
HDFC Standard life insurance products 1. Protection plan

Term assurance plan Loan cover term assurance plan
2. Investment plan
Single premium whole of life plan
3. Pension plan
Personal pension plan Unit linked pension Unit linked pension plus
4. Saving plan
Endowment assurance plan Unit linked endowment Unit linked endowment plus Mony back plan Childrens plan
Investment type of products
In investment type of products, the focus is on maximizing returns for the customer over a period of time. In a way, it is opposite to protection type where the focus on maximizing the risk cover is very low. The objective is to put maximum amount in investment. The underlying principle is to commit money for a certain period of time and get the benefits of real long-term growth. The products are usually single-premium policies where the entire premium is collected in advance. Surrenders are discouraged and there is a commitment for a certain minimum of years. In the event of death, the term value of the investment is returned. ARYA College Of Engineering & I.T.
Pension products
It is another very popular type of product. Along with the risk of an untimely death or disability, we also have the risk of living too long to outlive our source of income. In other words, one needs to ensure that she gets a decent income as long as she lives. This is where we have pension products addressing the need for a comfortable retirement. One can opt for an immediate pension or for a pension at a future date (also called as deferred pension) one can have a range of options when selecting a pension plan. There is a great amount of flexibility when it comes to selecting a pension product. The important point to note is that pension is a part of ones present income that forms the basis for future consumption. Every year income is accumulated and invested in a pension fund. The lump sum accumulated then is used for purchasing on the vesting date.
Saving type of products
People like to save. Our saving rate is well above 20% of our GDP for last few years. They save for events like childs marriage, education, etc. Savings products aim to strike a good balance between risk cover as well as returns. It acts as a protection on savings. Sum assured is usually targeted savings that one looks for. She gets that amount at the end of the term along with the bonuses if it is a participating policy. On the protection side, if any unfortunate event happens during the term, the Sum assured (targeted savings) is still paid so it encourages a person to save for an event and at the same time it ensures that her savings ARYA College Of Engineering & I.T.
are protected. This is the unique advantage of savings through life insurance that no other financial product offers. We find very popular products like endowment assurances, money back plans in this category.
Protection type of products
A typical protection type of product aims at protecting income earning capacity of the customers on happening of uncertain events during the term of the product. These are the pure risk product having no saving element. Naturally, these products do not have any maturity benefits. High risk cover at low cost is the unique of this type of product that makes this category most attractive for those who want high insurance cover without spending much for it. Usually offered for a definite term, all these products come under 4 broad categories. To understand a product, it is essential to find out the category based on its features. Needless to say, it will not be possible to compare one product category to another. Each category is unique and caters to particular needs of the customers.
16 Dec 2003 'Unit-linked Plans are the Future'

You have been operating here for a year now and your companys portfolio is tilted towards unit-linked products. How successful have these products been?
Unit-linked plans are modern products that are consumer friendly and as anywhere in the world, these are gaining popularity and finding wide acceptance in India as well.
Unlike traditional insurance products, customers find unit-linked plans more transparent, flexible and easy to understand. A customer who buys a unit-linked policy can far more easily understand the charges he pays towards the savings component, the life cover, and the riders. And he has the option to choose from different fund options for the investment component depending on his appetite for risk. Are Indian consumers educated enough to understand the nuances of such a product? While the concept of such a product is new, its features are easy to understand. So, when the concept is explained just once, customers see the benefits. Also, it helps that mutual funds have been in the country for a while now and so customers are already aware of units. Once a customer understands the benefits of unit-linked insurance plans, he is also able to compare these with traditional insurance products and see that the old plans are not very transparent. While there is no specific type of person buying unit-linked products, the consumer at any level is most comfortable if he can follow what is happening with his investments or contributions. In case of life insurance products, this is a long-term process of some 20-25 years. With such a time scale, it is clear that the transparency and flexibility that unit-linked products offer will be absorbed well by the customers.
What do unit-linked products actually offer in terms of value-addition?
When you are looking at a long-term plan, there are always factors that will change from time to time to meet any challenges. Also, plans change so that the company can offer some amount of customisation. Among other things, we offer to add the cover to the policy, add riders when necessary, and change the investment structure. We also let customers choose from different fund options on the investment without compromising on the basic product. ARYA College Of Engineering & I.T.
While all these options do come with caps to follow the regulatory framework, they definitely offer value-addition to the customer. And, with the NAV (net asset value) of the fund calculated at the end of the day, the customer knows the value of his funds. I must add that that in case of death, the beneficiary gets the sum assured or the NAV of the fund, whichever is higher. So, there is no reduction in protection in these plans.
Although insurance is specific to the individual, most companies offer uniform products for everybody. Do unit-linked plans offer any degree of customization?
We are so used to traditional insurance products that unit-linked plans seem extremely modern in comparison. They are products for the future. Think of these plans as bank accounts. Every year, you make your contribution, and pay the charges for your life cover, riders and the like. The rest goes into an investment fundand you can control the fund by choosing your level of risk. The fund value grows and at the end of the year, on the basis of the NAV, you know where you stand. With such wide choice and control, unit-linked plans are the most customizable insurance products available to the customer today. Is the investment risk left to the customer who buys unit-linked plans?
For any investor, the idea is to maximize returns. Wise customers know that the era of guaranteed returns is over. The fall in interest rates in the past 18 months is indication enough of what lies ahead. What unit-linked products offer is a long-term investment option where returns are far more real and there is no compromise in the protection that the policy offers. ARYA College Of Engineering & I.T.
In the guaranteed returns regime, the guaranteed component was met by paying lower interest rates to those who did not have any guarantee on their plans. Compared to this, unitlinked plans offer greater value to the customer. Yes, to an extent the risk is in the hands of the customer. However, the flexibility to opt for funds means that the customer can benefit as well. And finally, the returns that these products offer are bound to be relatively higher than what similar traditional plans offer. In order to cater to customers with very low risk appetite we also offer a unitised, with-profit plan across our products, where the bonus rate is declared in advance for the year. This is a conservative approach, but it has its takers. With this option, at the end of the policy the policyholder gets a share of the bonus that the company earns. In this case, there is an assured return that is benchmarked to the current bond rates (5 per cent last year).
What has been the performance of unit-linked plans in other emerging markets?
In a country like Poland, where the markets were opened a little over a decade ago, we are today the largest private insurance company. The demand for our unit-linked products is high. Worldwide, the growth of these products is high when compared to traditional products, an indication of where the market is headed.
There are a few people who view unit-linked plans as pure investment products that offer little cover. But this is a myth and customers realize this when the benefit of these plans is explained to them. With investment options regulated, one has to be prudent with the money that is contributed for the product and has to add value for the business to be successful. I feel that both developed and developing markets understand the great value proposition that unit-linked insurance plans offer. Another factor that tilts the balance in favor of such products is the tax treatment that the accumulated account attracts. Its tax-free, unlike a mutual fund or any other investment, where the gains are taxed.
UNIT LINKED PRODUCTS UNIT LINKED YOUNG STAR PLAN
The HDFC Unit Linked Young Star gives you:
An outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments Valuable protection to your child in case you are not around
Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity
4 EASY STEPS TO YOUR OWN PLAN

Step 1 Step 2 Step 3 Step 4 Choose the premium you wish to invest. Choose the amount of protection (Sum Assured) you desire. Choose the additional plan benefits you desire. Choose the investment fund or funds you desire.
Step 1 : Choose your regular premium

Minimum regular premium is Rs 10,000/- per year, can be paid:
Monthly (using Standing Instructions or ECS mandate) Quarterly Half-yearly Annually You may also choose to pay adhoc Single Premium Top-Up or additional regular premiums depending on your convenience.
Step 2 : Choose your level of protection
You can choose any amount of Sum Assured with:
A minimum of 5 times your chosen annual regular premium A maximum of 40 times your chosen annual regular premium
Step 3 : Choose additional plan benefits

We offer a range of valuable protection options of secure your family. You can choose any one of the following benefits:
Life Option Life & Health Option Critical Illness Benefit
Death Benefit Death Benefit +
BENEFIT TYPES
SUMMARY We will pay the Sum Assured to your beneficiary Your family need not pay nay further premiums. We will pay future regular premiums on your behalf, at the original level chosen by you Any Critical Illness Cover terminates immediately We will pay the Sum Assured to your beneficiary Your family need not pay any further premiums. We will pay future regular premiums on your behalf, at the original level chosen by you. The Death Benefit Cover terminates immediately
Death Benefit
Critical Illness Benefit
Step 4 : Choose your investment funds

In this plan the investment risk in your chosen investment portfolio is borne by you, which means that the premiums you pay in this plan are subject to investment risks associated with the capital markets.
We have 6 funds that balance your level of risk and return. You can choose from all or any of the following 6 funds:
Asset Class Fun d Details Ba nk De po sit s & M on ey M ar ket Go vt. Se cu riti es & Bo nd s E q u i t y Risk & Retu rn Rati ng
Fund Composition Liqui d Fund Extremely low capital risk Very stable returns More capital stability than equity funds Higher potential return than Liquid Fund Access to better longterm returns through equities Significant bong exposure keeps risks down 1 00 % L ow
Secu re Man aged Fund
1 00 %
Low Mod erat e
Defe nsive Man aged Fund
70 % to 85 %
1 5 % t o 3 0 %
Mod erat e
Bala nced Man aged Fund
Increased equity exposure gives better long-term return Bond exposure provides some stability
40 % to 70 %
ARYA College Of Engineering Equit Further & I.T. y increased Man exposure to
3 0 % t o 6 0 %
Hi gh
Flexible Options for your Childrens needs

Flexible Options Premium Payments Single Premium Top-Up Benefits You can pay your regular premium up to 15 days after the due date to fit in with your cash flows Once we have issued your policy, you can invest more than your regular premium, subject to the following conditions: You have paid all your regular premiums to date Your total Single Premium Top-Ups at any time is not more than 25% of your total regular premium paid to date Each Single Premium Top-Up amount is at least Rs. 5,000 You can increase, reduce, or stop your regular premium at any time as long as your policy maintains the minimum level of life cover. The minimum increase in regular premium amount is only Rs. 5,000/- per year and any changes to premiums will take place from the next premium due date. You can change your investment fund choices in two ways: Switching: You can move your accumulated funds from one fund to another anytime. Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need.
Premium Changes
Changing your Investment Decisions
ELIGIBILITY The age and term limits for taking out a HDFC Unit Linked Young Star, are as shown below:
Benefit Options
Term (Yrs.)
Period
Age at (Yrs.)
Entry
Max Age at Maturity
Min Life Option Life Health Option 10 & 10
Max 2 5 2 5
Min 18 18
Max 6 5 5 5
(Yrs.) 75 65
CHARGES
Premium Allocation Rate Fund Management Charge (FMC) Surrender Charge Other charges
TAX BENEFITS (Based on current tax laws)

Under Section 80C, you can save up to Rs. 33,660 from your tax each year (calculated on the highest tax bracket) as premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable income. Under Section 10 (10D), the benefits you receive from this policy are completely tax-free, subject to the exclusions.
UNIT LINKED PENSION PLAN
The HDFC Unit Linked Pension gives you:
An outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments Provides a post retirement income for life Gives you the flexibility to plan your retirement date Gives you the freedom to invest premiums as per your preference
3 EASY STEPS TO YOUR OWN PLAN
Step 1 Step 2 Step 3
Choose your retirement age Choose the premium you wish to invest, based on your retirement needs Choose the investment fund(s) you desire
Step 1 : Choose your retirement age

You can select any age you wish to retire at (Vesting age), between 50 years and 75 years.
Step 2 : Choose your premium

You can choose either a Single Premium Policy or a Regular Premium Policy Minimum regular premium is Rs 10,000/- per year, can be paid:
Monthly (using Standing Instructions or ECS mandate) Quarterly Half-yearly Annually
The minimum premium for a Single Premium Policy is Rs. 25,000.
Step 3 : Choose your investment funds

In this plan the investment risk in your chosen investment portfolio is borne by you, which means that the premiums you pay in this plan are subject to investment risks associated with the capital markets.
We have 6 funds that balance your level of risk and return. ARYA College Of Engineering & I.T.
Fun d
Details
Ban k Dep osits & Mon ey Mar ket
Asset Class Gov t. Secu ritie s & Bon ds
E q u i t y
Risk & Retu rn Rati ng
Fund Composition Extremely low capital risk Very stable returns Secu More re capital Man stability aged than Fund equity funds Higher potential return than Liquid Fund Defe Access to nsiv better e long-term Man returns aged through Fund equities Significan t bong exposure keeps risks down Bala Increased nced equity Man exposure aged gives Fund better long-term return Bond exposure provides some stability Equi Further tyCollege Of Engineering ARYA increased & I.T. Man exposure aged to equities Liqu id Fund 10 0% ow L
10 0%
Low Mod erat e
70% to 85%
1 5 % t o 3 0 %
Mod erat e
40% to 70%
3 0 % t o 6 0 %
High
Flexible Options for you and your familys needs Flexible Options Premium Payments Single Premium TopUp Benefits
You can pay your regular premium up to 15 days after the due date to fit in with your cash flows Once we have issued your policy, you can invest more than your regular premium, subject to the following conditions: You have paid all your regular premiums to date Each Single Premium Top-Up amount is at least Rs. 5,000 You can increase, reduce, or stop your regular premium at any time. The minimum increase in regular premium amount is only Rs. 5,000/- per year and any changes to premiums will take place from the next premium due date. You can change your investment fund choices in two ways: Switching: You can move your accumulated funds from one fund to another anytime. Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need.
Premium Changes
Changing your Investment Decisions
ELIGIBILITY
The age and term limits for taking out a HDFC Unit Linked Pension, are as shown below: Ben efit Opti ons Regular Premium Single Premium Term Period (Yrs.) Min 10 0 5 0 4 18 0 Max 4 18 5 7 0 Age at (Yrs.) Min Entry Max 6 0 5 5 Age at Vesting(Yrs.) Max 5 5 7 Min 7
CHARGES
Premium Allocation Rate Fund Management Charge (FMC) Surrender Charge Other charges

Under Section 80CCC, you can save up toRs. 33,660 from your tax each year
(calculated on the highest tax bracket) as premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable income.
CHILDRENS PLAN HDFC Childrens Plan The HDFC Childrens Plan gives you:
Invaluable financial support to your child Helps you customize an ideal plan for your child Provides you multiple options for multiple benefits
3 Easy Steps To Your Own Plan

Step 1 Step 2 Step 3 Choose the amount of targeted savings and policy term using our Financial Planning Tool Choose any one of the 3 plan options as per your childs requirement Work out the premium payable and Sum Assured with our Financial Consultant
Step 1 : Choose the amount of targeted savings
This plan gives you the flexibility to structure the ideal plan for your child.
Estimate the money, which you might require for your child at any one of the milestones in his or her future
Choose the amount of targeted savings and policy term using the Financial Planning Tool available with our Financial Consultant
Step 2 : Choice of 3 Plan options
You can choose any one of the 3 plan options at the start of the policy:
Accelerated Benefit Plan Death Benefit OR Maturity Benefit Maturity Benefit Plan Double Benefit Plan Plan Option Death Benefit AND Maturity Benefit Death Benefit AND Maturity Benefit Death Benefit (On death of insured parent during the policy term) We will pay the Sum Assured + Bonuses Declared The policy terminates immediately Your family need not pay any further premiums and policy continues Maturity Benefit
Accelerated Benefit Plan
We will pay the Sum Assured+Bonuses Declared
Maturity Benefit Plan
Double Benefit Plan
We will pay the Sum Assured Your family need not pay any further premiums and the policy continues
Step 3 : Premium you need to pay
The table below shown the Indicative Premiums for a male life assured paying annual premiums for a Rs 5 lakh sum Assured policy with the policy maturing when the child is 21 years old (i.e. 20 year term period and current age of child is assumed to be 1 year).
Age of Parent (Yrs.)
Accelerated Benefit Plan (Rs.)
Maturity Benefit Plan (Rs.)
Double Benefit Plan (Rs.)
30
23,575
22,690
24,085
35
24,045
22,820
24,790
40
24,890
23,055
26,005
ELIGIBILITY
The age and term limits for the insured parent for taking out the HDFC Childrens Plan are as shown below:
Term Period (Yrs.)
Age At Entry (Yrs.)
Min 10
Max 25
Min 18
Max 60
Max Age At Maturity (Yrs.) 75
Under Section 80C, you can save up to Rs. 33,660 from your tax each year (calculated on the highest tax bracket) as premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable income.
Under Section 10 (10D), the benefits you receive from this policy are completely tax-free, subject to the exclusions.
Customer Service Premium Payment
This section gives you all the details that you may require to pay your premium and make it a hassle free experience. Along with various premium payment options currently available to you, we have also drawn up a checklist of details that you will need in case you are paying through cheque or demand draft.
6 Easy Ways to pay your premium:
At any HDFC SLIC branches
You can deposit Cheque / Demand Draft drawn in favour of HDFC SLIC at any of the braches during the following business hours:
Monday to Friday : 9.30 AM to 4.30 PM (For Cash) Monday to Friday : 9.30 AM to 5.00 PM (For Cheque) Saturday : 9.30 AM to 12.00 Noon (For Cash & Cheques)
Closed on Sundays
Postage / Courier
You can send cheques and demand drafts drawn in favour of branch offices
HDFC SLIC to any of our
Online Payment
You can make online payment of premium anytime and from any location, at a click of the mouse by using the Online payment facility. It is currently offered to all the policyholders who are registered users of billjunction.com or have net banking facility with any of the following banks - HDFC Bank, ICICI Bank, UTI Bank, State Bank of India, Punjab National Bank, Union Bank of India.
Drop boxes
You can drop cheques and demand drafts drawn in favour of HDFC SLIC into any of our drop boxes installed at various locations in various cities.
Electronic Clearing Service (ECS) or Auto Debit facility of RBI
You can also pay renewal premiums through Electronic Clearing Service (ECS) of Reserve Bank of India (RBI) presently available in following 42 cities:
New Delhi, Chandigarh, Kanpur, Lucknow, Jaipur, Mumbai, Panjim, Pune, Nagpur, Ahmedabad, Baroda, Surat, Indore, Bhopal, Hyderabad, Vijaywada, Vizag, Bangalore, Chennai, Coimbatore, Trivandrum, Kolkatta, Bhubaneswar, Guwahati, Ludhiana, Patna, Manglore, Amritsar, Jalandhar, Allahabad, Varanasi, Agra, Rajkot, Kochi, Trichur, Jabalpur, Gwalior, Calicut, Jodhpur, Mysore, Raipur, Udaipur
Standing Instructions (SI) Mandate You can also pay your renewal premium through a Standing Instructions Mandate if you have an account with HDFC Bank anywhere in India
Checklist while paying your renewal premium through cheque/ demand draft Please mention your policy number and name correctly on the reverse side of the cheque/ demand draft We do not accept Post Dated Cheques (PDCs) beyond the next banking day from date of receipt In case of any overwriting on your cheque, please countersign the same As per RBI guidelines, Non MICR Cheques may not be acceptable at few locations. In this scenario, please contact your nearest branch for more details For Unit Linked Polices you can pay using Local Cheques/ Demand Drafts For other policies you can pay using either Local or Outstation cheques or Demand Drafts
PART : 2
OBJECTIVE OF STUDY In the short span of time, since the insurance sector has opened up, HDFC Standard Life Insurance has, literally, dictated the markets evolution. Catering to all age and income segments, the company started out with the traditional insurance policies that were easy to understand. The idea was entice the customers used to LICs style of functioning.
Soon, HDFC SLIC (HDFC Standard Life Insurance Company) began exploring new areas. It introduced new products like the market-linked products where returns are linked to the market performance of the underlying assets.
HDFC SLIC leads in virtually all parameters: Size of agent force Number of policies sold Total sum assured Premium income, and Productivity of agents
It has set exacting standards for its range of products, riders offered, quality of information in promotional material and even in the insurance awareness events organized.
What has been in favor of HDFC SLIC is its range of products in each segment of life insurance traditional, unit-linked, and single-premium options, be they for retirement plans or children plans. With such a comprehensive bouquet, it caters to all financial goals of a customer.
So, the objective of the study is to see and analyze the bouquet of products and satisfaction of customers to determine the Emerging Investment Dynamics In Life Insurance Industry with respect to the research work in New Delhi.
IMPORTANCE OF THE STUDY ARYA College Of Engineering & I.T.
HDFC SLIC has grown exponentially over the past three years, making its mark in a number of segments such as: retirement solutions, child plans, and market-linked plans. The success of the business, thus far, has reaffirmed the commitment of both the partners HDFC Bank and Standard Life towards achieving the companys vision of being a leader in life insurance business in India.
HDFC SLIC is the leading private sector life insurance company in India. In December 2003, it crossed the Rs. 1000 crore total premium mark, the first private life insurer to do so.
So, the research work is important in respect of understanding the changing insurance sector with special reference to HDFC SLIC. The study is about: Products of leading private insurer Their mode of recruiting financial advisors (FCs), and Their approach which made them customer-centric
SCOPE OF STUDY HDFC SLIC has increased its market share among private life insurers to nearly 40% from 33% as of end-December. The companys first-year premium income in the April-March period stood at Rs. 464.6 crore, accounting for 39.3% of the Rs. 1,364 crore premium booked by all private life insurers together.
Considering the entire life insurance market, including the Rs. 9,780 crore booked by LIC, HDFC SLICs market share works out to be around 4.17%. The life insurance market continues to be dominated by LIC which has about 87.8% of the shares. This is only a marginal dip from its 88.2% share in end-December. These comparisons are only for the first year or new business premium. The gap between HDFC SLIC and the second-in-line private insurer is vast. In fact, this status has led some analysts to wonder if the company is not a trifle too aggressive. But other say this has more to do with the companys customer-centric focus, its pan-India presence, and superior risk-management and investment strategies. HDFC SLIC is not, however, resting on its laurels. Companys customer-centric approach is studied during the training period and the findings of the research work will definitely focus on the present condition and future requirement (if any) relating to products of the company.
RESEARCH METHODOLOGY ARYA College Of Engineering & I.T.
UNIVERSE OF STUDY THE SAMPLE DESCRIPTIVE RESEARCH DATA COLLECTION SAMPLE DESIGN USED TOOLS AND TECHNIQUES
1. UNIVERSE OF STUDY Jaipur 2. THE SAMPLE
The study is based on the data collected from some selected locations in jaipur. I have taken a sample of 300 customers. The aim is to know the views of the people. Due to shortage of time, the sample taken is small represent the views of all the people. Thus, for the present study, the sample can be said to be representative of all the people of jaipur.
DESCRIPTIVE RESEARCH
Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group. In descriptive research studies, the researcher must be able to define clearly what he wants to measure and must find adequate method for measuring it along with a clear-cut definition of the population he wants to study. Since the aim is to obtain complete and accurate information, the procedure to be used must be carefully planned. So, I have planned my research work, accordingly.
DATA COLLECTION ARYA College Of Engineering & I.T.
I have used the following data collection methods during my research study:
PRIMARY DATA, and SECONDARY DATA
PRIMARY DATA: Primary data is that data which is taken directly from the survey method
SECONDARY DATA: Secondary data is that data which is taken from manuals, books, journals, and business magazines, and HDFC standard life insurance, etc. It is also called second-hand data.
SAMPLE DESIGN USED
Although there are many methods of sampling which can be applied in research studies, but during the survey, I have applied two methods, which are as follows:
a)
CLUSTER SAMPLING METHOD:
It is difficult and even impossible to identify uniquely each member of the population. Yet it may be possible to identify certain sub-groups with relative cases.
The cluster is a geographical or social unit; though it may be defined by other properties. Typical clusters are city blocks, households, family organizations, farms, etc.
Thus, for example, in a survey of city population, no up-to-date lists of the residents are available but a map showing blocks and then sample of each block may be drawn. Count may be taken of those who live in these blocks. Using cluster sampling for my research work, I have divided the whole city of New Delhi, from where I have started my survey, which is Connaught Place, into clusters like first,second, third, and fourth.
b)
RANDOM SAMPLING METHOD:
A sampling procedure for which possible combination of two or more elements have equal chance of being selected is called Simple Random Sampling.
In general, a simple random sampling procedure of n elements from the population has equal chance of being selected.
Simple random sampling has an important property related to variability of estimates obtained from such samples which decrease as sample size increase. During my survey, I adopted random sampling method where I have selected the customer randomly and asked questions.
TOOLS AND TECHNIQUES: As we know that collection of data is very necessary for completion of any research work, so in my survey I have used Questionnaire method for collecting data.
SWOT ANALYSIS STRENGTHS The strengths are:
HDFC SLIC is the third largest player in the insurance industry in India It is the largest home loan financing institution in India Standard Life is a 100 years old company (founded in UK) HDFC enjoys the highest AAA credit rating, which ensures highest safety of money Mutual Fund Personal Loan
WEAKNESSES The weaknesses are:
Some customers are not satisfied with the service of HDFC SLIC Only 24 branches all over India High insurance-period duration High premium Low awareness of HDFC SLIC in rural areas
OPPORTUNITY The opportunities are:
Huge opportunity in insurance market Better products as compared to other industries Due to increase in literacy rates, literate people prefer HDFC SLIC HDFC SLIC gives opportunity to other businesses to grow in the market
THREATS The threats are:
Tough competition from LIC, ICICI, BAJAJ ALLIANCE, and BIRLA SUN LIFE Due to low premium, rural markets prefer LIC Threat for HDFC SLIC because over 21 new companies are entering the market Currently, HDFC SLIC is the 3rd player in the market, and the major threat is to sustain that position in the face of competition
RESEARCH FINDINGS AND ANALYSIS
SURVEY FOR AWARENESS OF LIFE INSURANCE
RESEARCH METHODOLOGY The technique of finding facts from raw data is known as sampling.
SAMPLING:
Sampling is simply the process of learning about the population on the basis of the sample drawn for it. Under this method, small group of the universe is taken as the representative of the whole mass and the results are drawn. It is a method to make social investigation practicable and easy.
SAMPLE:
A static sample is a miniature picture or cross section of an entire group or an aggregate from which the sample is taken. A sample is the reflection of the universe. I have taken a total of 300 samples from the jaipur population.
CLUSTER SAMPLING
Under this method, the total population is divided into some recognizable sub-division which are termed as clusters and a simple random selection of these clusters is made and then the survey of each and every unit in the selected cluster is done.
PRINCIPLE OF CLUSTER SAMPLING The principles that are basic to cluster sampling are:
Clusters should be drawn from a sample which is in tune with the cost and other
limitations of the survey The number of sampling unit in each cluster should be approximately same
Details about cluster sampling from the project:
Age
No. of Samples
25-35 35-45 45-55 55 & above
100 100 100 100
CONTENTS OF SURVEY
Awareness in Different Age Group
Group
No. of Samples
25-35 35-45 45-55 55 & above
100 100 100 100
Purpose of Insurance
Group
No. of Samples
Businessmen Government employees Private employees
100 50 50
Degree of Awareness in Different Gender of Society
Male Female
100 50
FINDINGS OF AGE GROUP (25-35)
11% 15% 45%
29%
K.I.N.P. T.P. N.A.I. U.T.
Total no. of samples
50
Area of survey
JAIPUR
Findings
This age group is having the second highest number of policy holders among all age groups Second highest awareness of insurance among people of this age group Feedback from people
K.I.N.P.
Know about insurance but not taken any policy
T.P.
Taken policy
N.A.I.
Not aware of insurance
U.T.
: Useless thing
11%
4%
27%
58%
Total no. of samples Area of survey
: :
50 JAIPUR
Findings This age group is having highest number of policy holders among all age groups Highest awareness of insurance among people Feedback from people
K.I.N.P.
Know about insurance but not taken any policy
T.P.
Taken policy
N.A.I.
Not aware of insurance
U.T.
Useless thing
2%
23%
11% 64%
Total no. of samples Area of survey
: :
50 New Delhi
Findings
This age group is having the lowest number of policy holders among all age groups Lowest awareness of insurance among people ARYA College Of Engineering & I.T.
Feedback from people
K.I.N.P.
: Know about insurance but not taken any policy
T.P.
: Taken policy
N.A.I.
: Not aware of insurance
U.T.
: Useless thing
FINDINGS OF AGE GROUP (55 & ABOVE)
19%
9%
33%
39%
Total no. of samples
50
Area of survey
JAIPUR
Findings
This age group is having low number of policyholders among all age groups Low awareness of insurance among people
Feedback from people
K.I.N.P.
: Know about insurance but not taken any policy
T.P.
: Taken policy
N.A.I.
: Not aware of insurance
U.T.
: Useless thing
PURPOSE OF INSURANCE (BUSINESS CLASS)
22%
24%
17%
17%
20%
INVESTMENT LIFE PENSION CHILD LIFE TAX SAVER
Total no. of sample Area of survey
: :
5 JAIPUR
Findings
The major finding of this part of the research study is that business class treat insurance mainly as a tool of Investment and Tax Savings. They spend less on Pension and Life Plans.
PURPOSE OF INSURANCE(PRIVATE EMPLOYEES)
18%
21%
20%
18% 23%
: 50
Total no. of sample
Area of survey
JAIPUR
Findings
The major finding of this part of the research study is that Private employees use insurance mainly as an age old tool of Security and they spend equally on Child Life, their life and Tax saving.
PURPOSE OF INSURANCE (GOVERNMENT EMPLOYEES)
18%
20%
22%
24% 16%
: 50
Total no. of sample
Area of survey
New Delhi
Findings
The major finding of this part of the research study is that Government employees spend more on their life and Child Life compared to other sections of the society.
DEGREE OF AWARENESS AMONG DIFFERENT GENDERS OF THE SOCIETY
MALE:
22% 45% 33%
KNOW INSURANCE DON'T KNOW INSURANCE CAN'T SAY
No. of sample Area of survey
: :
50 JAIPUR
FEMALE: ARYA College Of Engineering & I.T.
28%
27%
45%
KNOW INSURANCE DON'T KNOW INSURANCE CAN'T SAY
No. of sample
50
Area of survey
jaipur
Our Performance vis--vis Competitors ARYA College Of Engineering & I.T.
The performance analysis is to present how HDFC SL Unit Linked Funds are performing against the Benchmark and our Competitor Funds.
We have illustrated how our unit-linked funds available to our Retail Life Business have performed so far. The products for which these funds are available: I. HDFC Unit Linked Endowment Plan II.HDFC Unit Linked Young Star Plan
PRIVATE MARKET SHARE RETAIL: MARCH JUNE, 2008
ICICI PRUDENTIAL MAX NYL HDFC 8% 4% 3% 9% 7% 7% BIRLA SUN 40% BAJAJ ALLIANZ OM KOTAK SBI LIFE TATA AIG OTHERS
12%
10%
QUESTIONNAIRE
1.
Do you plan for future investment?
Yes/No
2. 3.
Do you save money for future? Are you aware of insurance?
Yes/No Yes/No
4. 5.
Are you a Taxpayer? Have you taken any insurance policy? (if Yes, name company______________________)
Yes/No Yes/No
6.
Generally, where do you invest your savings?
Preferences
Name
In Banks In Insurance In Mutual Funds In Shares
7. Who made the path of investment easy for you? (Name andContact No.________________________________________)
8.
Do you think Mutual Funds together with Life Insurance, are more helpful? Yes/No
9. Are you aware about private life insurance companies? Yes/No
80% 60% 40% 20%

CONCLUSION 0%
78%
22%
No PEOPLE HAVINGYes HDFC STANDARD LIFE POLICY
According to the survey, 22% customers do not have HDFC SLIC products and 78% customers have HDFC SLIC products. As HDFC SLIC recently entered the insurance sector, in 4 years it has captured a big market, which is a great achievement for HDFC SLIC. People buy HDFC SLIC products because it gives them dual benefits. It ensures the money that people invested in it and gives good rate of return, and secondly, it enables them to sell its products much more effectively in a short span of time.
GRAPH SHOWING SATISFACTION WITH HDFC SLIC PREMIUM POLICY
25% SATISFIED NOT SATISFIED 75%
Approximately, 82% customers are satisfied with the premium policy of HDFC SLIC. It means that bulks of the policy holders are satisfied with the premium policy of HDFC SLIC. Only a meager percentage of 28% customers are not satisfied with the premium policy.
This does not have any negative impact on the creditworthiness of the organization.
SATISFIED WITH REGULAR SERVICE OF HDFC STANDARD LIFE
100% 80% 60% 40% 20% 0%
85%
15%
TI SF IE D N O T SA
According to the survey, 85% of the customers are satisfied with the regular service of HDFC SLIC, and 15% customers are not satisfied. The services such as intimation for payment of due premium in time, and about other related documents of the policies, fall under this category
MARKET EXPANSION
There has been an overall expansion in the market. This has been possible due to increased awareness levels, thanks to the large number of advertising campaigns launched by the players. The scope for expansion is still unlimited as virtually all the players are ARYA College Of Engineering & I.T.
S A TI S FI E D
concentrating on large cities and towns, except for LIC, which made a significant effort to tap the rural market.
NEW PRODUCT OFFERING
There has been a plethora of new and innovative products offered by the new players, mainly due to the stability of the customers of the international partners which range from a large variety of products from pure terms (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders, from which they are to choose. More and more customers are buying products and services based on their true needs and not just traditional money back policies, which are considered very appropriate for long-term protection and saving. However, there are still some key products to be introduced, such as, health products.
CHANNELS OF DISTRIBUTION
Till the last two years, the only mode of distribution of life insurance products was the insurance agents. While agents still continue to be the predominant distribution channel, today a number of innovative alternative channels of distribution are being offered to the customer. Some of them are banc assurance partners, brokers, and direct marketing. The
widespread reach of bank branch network in India could lead to banc assurance emerging as a significant distribution mechanism.
RECOMMENDATION
VARIETY BASED POSITIONING
This type of positioning is based on varieties in products and services rather than customer segments. It is a sensible strategy in offering certain products and services. In the insurance industry also it is possible to achieve a unique position by focusing on certain category of products. One such example is Birla Sun Life Insurance, which has been focusing on investment related products since its launch in India. Through its superior fund management capabilities, the insurance company can deliver better returns on the investment related products, and, thereby, carve a niche for itself in a leading position in this segment.
NEED BASED POSITIONING
This type of positioning is based on the different needs of different groups of customer. This can be done successfully if a company has unique strength to offer particular service to a group of customers to satisfy their needs better than others.
The insurance needs of customers vary significantly among different groups of customers. The insurance needs of young families with small children will be different than the families in which the bread winner is close to retirement. However, in India, most of the life insurance companies have a wide variety of products tailored for different needs of the customers, and there is no company known to focus on a particular customer need
ACCESS BASED POSITIONING
Positioning of customer can also be done in the way by which they are accessible. Different groups of customers may be accessible by different ways even though they may have similar needs. Access is simply a function of customer geography or customer scale.
There is excellent opportunity in the insurance industry to employ access based positioning by targeting the rural insurance sector. The rural market for insurance is very different than urban market in terms of needs, income levels, and penetration of media, and so on. So far, except for LIC, no player has paid attention or focus on the rural sector.
OSING THE RIGHT STRATEGYCHO
The right strategy is not a matter of positioning choice alone. It involves the very way the company organizes itself to do business. It is a configuration of the entire value chain of the organization through a different set of activities to deliver unique products and services to the customer. The set of activities cover all upstream and downstream activities, from the ARYA College Of Engineering & I.T.
selection of the product mix, the way the products are priced, promoted, the type of distribution mechanism used, the way customers are services, and so on.
Some life insurance companies focusing on rural market has adopted innovative means of distribution. Instead of appointing agents as is done typically, they have used gram sevaks in different villages across the country to promote life insurance and act as their sales arm. This enabled them to tap the knowledge of the local people, establish the concept of the product in their mental filter and ultimately striking a deal.
BIBLIOGRAPHY
PHILIP KOTLER
(MARKETING)
(RESEARCH METHODOLOGY) ARYA College Of Engineering & I.T.
TIMES OF INDIA
(MAY-JULY, 2008)
ECONOMIC TIMES (MAY-JULY, 2008)
www.hdfcinsurance.com
INSURANCE JOURNALS:
1) 2)
IRDA IRDA
2007-08 2006-07
GLOSSARY
Accident The accident is defined in the policy document as follows The accident must be caused by violent, external, and visible means and the cause of injury/injuries is solely independent of any other means. ARYA College Of Engineering & I.T.
Accident death benefit Benefit is that which provides for the payment of an additional sum (usually equal to the sum assured of the basic policy) in the event of death by an accident.
Amount Payable This refers to the amount that is payable according to the terms and conditions of the insurance policy to the legal heir. This includes payment of agreed payments at regular intervals from a fixed date. This continues until the death of the individual, on whose life the annuity is bought.
Annuity An investment option that makes a series of regular payments to an individual in exchange for a premium or a series of premia.
Asset Everything owned or due to a person
Balanced Fund A fund that maintains a balanced portfolio, generally, 60% bonds or preferred stocks and 40% common stocks.
Bonus The amount paid as return in a with-profit policy. The bonus, expressed as a percentage of the sum assured, is generally declared every year. The amount is linked ARYA College Of Engineering & I.T.
to the profits earned by the insurer. Depending on the time of withdrawal, there are two kinds of bonuses reversionary and cash. A reversionary bonus can be encased only on maturity of the policy; a cash bonus can be withdrawn when declared Capital gains Profit earned from the sale of stocks, mutual fund units and real estate. Long-term capital gains arise from assets owned for more than a year while short-term capital gains are made from assets owned for less than a year.
Claim Written request by an insured for the insurance company to cover an incurred loss, usually submitted on the companys standard form.
Compound Interest Interest computed on principal plus interest accrued during the previous periods of the investment
Date of commencement The date on which insurance cover begins, following acceptance of the risk by the insurer. Death benefit
The amount payable to the nominee on death of the policyholder. The amount paid is the sum assured plus benefits applicable (if any) less outstanding loans.
Declining term cover
A type of pure life protection insurance policy where the premia remain the same while the life coverage keeps declining. They are typically used to cover the life of a person with a pending loan repayment, like home loan.
Deferred annuity An annuity plan where the first annuity payment becomes payable after a chosen period that exceeds one year.
Dividends Payments made by companies and mutual funds to shareholders and unit-holders, respectively, from the income generated by it.
Down payment The money that a home buyer has to contribute, often at least 15 per cent of the value of the house, when he is taking a home loan.
Death benefit payable The amount payable, as stated in a life insurance policy, to the designated beneficiary(ies) upon the death of the insured. The amount paid is the face value plus any riders that are applicable, less any outstanding loans. Emergency fund The money, in the form of liquid investments in bank savings accounts, two-in-one accounts and liquid funds, you need, to take care of emergencies like a job loss that your insurance policies wouldnt cover
Endowment plans ARYA College Of Engineering & I.T.
An insurance plan that provides a policyholder risk cover and some return on investment. Usually suitable for the risk-averse
Effective rate of interest The true rate as against the nominal rate, which may be incorrect.
Estate All assets of a person, both financial-like stocks, bonds, mutual funds and fixed deposits and physical-like a house and gold that can be passed on to his heirs.
Estate planning A financial plan to ensure the transfer of all your assets-both financial, such as fixed deposits and stocks and physical, such as home, after your death to your heirs without any delay or loss.
ELSS (equity-linked savings schemes) Diversified equity funds that additionally offer a tax deduction under Section 80C on investments up to Rs.1 lakh. EMI (equated monthly installment) A borrower must make this payment each month towards repayment of interest and principal of a loan taken by him.
Equity The actual ownership interest in a specific asset or group of assets ARYA College Of Engineering & I.T.
Endowment A type of insurance policy which provides for the face value stated in the contract to be payable in a fixed date or on the life insurers early death.
Equity A stock or the interest in capital gains received from the ownership of a stock.
Financial planning It covers the essential elements of a persons financial affairs and is aimed at achieving a persons financial goals.
Fixed deposit Funds placed on deposit in a bank, company or post office at a fixed rate of interest.
Floating rate loan Interest rate charged on a loan benchmarked to a particular lending rate. The rate gets adjusted during the tenure of the loan as the benchmark interest rate changes.
Group Insurance An insurance policy taken out by employers to provide life cover to their employees. Usually the cheapest form of insurance.
Guaranteed additions
The amount paid as returns in assured-return insurance plans. Guaranteed additions are expressed as a percentage of the sum assured, with the amount payable being stated by the insurer at the outset.
Hospital cash benefit rider A rider that provides cover for hospitalization
Immediate annuity An annuity that starts payments immediately after, or soon after, the first premium is paid
Insurance A fund that primarily seeks current income, than growth of capital. It will tend to invest in stocks and bonds that normally pay higher dividends and interest.
Investments Assets like fixed deposits, post office savings, bonds and stocks that are acquired for the purpose of earning a return
Investment risks The risks that your investments face. These include the risk of interest rate fluctuations impacting your debt investments or the prices of equities going down. Level term cover rider A rider that increases the life cover in non-term plans, up to a maximum of the sum assured on the base policy. The rider offers death benefit along, and serves the need for extra protection for a specified time period.
Loyalty additions Additional benefits (other than guaranteed additions/bonus) paid to policyholders on maturity of certain investment-based insurance plans for staying on through its term. Loyalty additions are paid as a percentage of the sum assured, with the amount depending on the insurers financial performance.
Money-back plans A variant of endowment plans in which survival benefits are disbursed through the policy term, rather than in a lump sum at the end.
Net asset value (NAV) The simplest measure of how a scheme is performing, it tells how much each unit of it is worth at any point in time. A schemes NAV is its net assets (the market value of the financial securities it owns minus whatever it owes) divided by the number of units it has issued.
Nominee The person(s) nominated by the policyholder to receive the policy benefits in the event of his death.
DECLARATION
This is to certify that the project entitled Emerging Investment Dynamics In Life Insurance Industry at HDFC Standard Life, Jaipur is my indigenous and original work and that it has not been used for the purpose of awarding any degree or diploma in any other university.
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A SUMMER TRAINING PROJECT REPORT ON Emerging Investment Dynamics in Life Insurance Industry UNDER

RIICO Inds. Area Kukas ,Jaipur-302022 Rajasthan

ARYA College Of Engineering & I.T.

Acknowledgement Company Certificate H.O.D. Certificate Preface

ARYA College Of Engineering & I.T.

INDIAN INSURANCE INDUSTRY

ARYA College Of Engineering & I.T.

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY ACT, 1999 (IRDA)

ARYA College Of Engineering & I.T.

connected with insurance.

ARYA College Of Engineering & I.T.

ARYA College Of Engineering & I.T.

ARYA College Of Engineering & I.T.

Standard Life Assurance Company (SLAC)

agencies Moodys and S & P.

HDFC STANDARD LIFE

Brief profile of the Board of Directors:

ARYA College Of Engineering & I.T.

ARYA College Of Engineering & I.T.

Our parentage HDFC Limited

Stable and experienced management

High service standards

ARYA College Of Engineering & I.T.

Standard Life Assurance Company

Leader in the employee benefit market in both the UK and Canada.

Marketing Awards) Awards)

ARYA College Of Engineering & I.T.

Our group companies

ARYA College Of Engineering & I.T.

Incorporation of HDFC Standard Life Insurance Company

We aim to be the top new life insurance company in the market

ARYA College Of Engineering & I.T.

Our Values Values that we observe while we work:

People Care One for all and all for one

Joy and Simplicity

ARYA College Of Engineering & I.T.

Insurance: The concept

ARYA College Of Engineering & I.T.

P I ARYA College Of Engineering & I.T.

HDFC Standard life insurance products 1. Protection plan

Investment type of products

Saving type of products

Protection type of products

16 Dec 2003 'Unit-linked Plans are the Future'

ARYA College Of Engineering & I.T.

What do unit-linked products actually offer in terms of value-addition?

ARYA College Of Engineering & I.T.

UNIT LINKED PRODUCTS UNIT LINKED YOUNG STAR PLAN

The HDFC Unit Linked Young Star gives you:

An outstanding investment opportunity by providing a choice of thoroughly researched

ARYA College Of Engineering & I.T.

4 EASY STEPS TO YOUR OWN PLAN

Step 1 : Choose your regular premium

Minimum regular premium is Rs 10,000/- per year, can be paid:

Step 2 : Choose your level of protection

You can choose any amount of Sum Assured with:

Step 3 : Choose additional plan benefits

Life Option Life & Health Option Critical Illness Benefit

Death Benefit Death Benefit +

Critical Illness Benefit

Step 4 : Choose your investment funds

ARYA College Of Engineering & I.T.

Secu re Man aged Fund