You are on page 1of 77

A TRAINING REPORT

IN

HDFC Standard Life Insurance Company Ltd


ON

CUSTOMER-BUYING BEHAVIOR IN LIFE INSURANCE INDUSTRY

Submitted in partial fulfillment of requirement for the award of the degree of M.B.A

Under The Supervision of


MR. VIKRAM SINGH

SUBMITTED TO: SUBMITTED BY:

JIND INSTITUTE OF ENGINEERING & TECHNOLOGY, JIND


(Affiliated To Kurukshetra University, Kurukshetra)
Session 2008 – 2010
PREFACE

The liberalization of the Indian insurance sector has been the subject of much heated debate for
some years. The policy makers where in the catch 22 situation wherein for one they wanted
competition, development and growth of this insurance sector which is extremely essential for
channeling the investments in to the infrastructure sector. At the other end the policy makers had the
fears that the insurance premium, which are substantial, would seep out of the country; and wanted
to have a cautious approach of opening for foreign participation in the sector.

As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw the
day of the light thanks to the maturing polity emerging consensus among factions of different
political parties. Though some changes and some restrictive clauses as regards to the foreign
participation were included the IRDA has opened the doors for the private entry into insurance.

Whether the insurer is old or new, private or public, expanding the market will present multitude of
challenges and opportunities. But the key issues, possible trends, opportunities and challenges that
insurance sector will have still remains under the realms of the possibilities and speculation. What is
the likely impact of opening up India’s insurance sector?

The large scale of operations, public sector bureaucracies and cumbersome procedures hampers
nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer
service, speed and flexibility. They point out that their entry will mean better products and choice for
the consumer. The critics counter that the benefit will be slim, because new players will concentrate
on affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy.
Start-up costs-such as those of setting up a conventional distribution network-are large and high-end
niches offer better returns. However, the middle-market segment too has great potential. Since
insurance is a volumes game. Therefore, private insurers would be best served by a middle-market
approach, targeting customer segments that are currently untapped.
CONTENTS

Certificate
Declaration
Acknowledgement
Preface

CHAPTER No. DESCRIPTION PAGE NO.


Executive Summary
1 Introduction to Insurance Industry
2 Company Profile
3 Introduction to Study
“Customer Buying Behaviour in
Life Insurance Industry”
4 Objective of The Study
5 Research Methodology
6 Data Analysis And Interpretation
7 Limitations And Recommendations
8 Conclusion
Bibliography
Annexure
Questionnaire
EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum growth
and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80%
while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to
enter in this sector and HDFC Standard Life Insurance Company Ltd has given me the
opportunity to work and get experience in highly competitive and enhancing sector.

• The success story of good market share of different market organizations depends upon the
availability of the product and services near to the customer, which can be distributed
through a distribution channel. In Insurance sector, distribution channel includes only agents
or agency holders of the company. If a company like RELIANCE LIFE INSURANCE,
TATA AIG, MAX etc have adequate agents in the market they can capture big market as
compared to the other companies.

Agents are the only way for a company of Insurance sector through which policies and benefits of
the company can be explained to the customer
CHAPTER 1

INTRODUCTION
TO INSURANCE INDUSTRY

INTRODUCTION
TO INSURANCE
INSURANCE:-
Insurance provides financial protection against a loss arising out of happening of an uncertain event.
A person can avail this protection by paying premium to an insurance company.

A pool is created through contributions made by persons seeking to protect themselves from
common risk. Premium is collected by insurance companies which also act as trustee to the pool.
Any loss to the insured in case of happening of an uncertain event is
paid out of this pool.

Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it
spreads the risk of a few people over a large group of people exposed to risk of similar type.

DEFINITION:-
“Insurance is a contract between two parties whereby one party agrees
to undertake the risk of another in exchange for consideration known as premium and promises to
pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the
expiry of a certain period in case of life insurance or to indemnify the other party on happening of an
uncertain event in case of general insurance.”

The party bearing the risk is known as the 'insurer' and the party whose risk is covered is known as
the 'insured' or 'assured'.

Everyone that wants to protect themselves or someone else against financial hardship should
consider insurance. This may include:

• Protecting family after one's death from loss of income


• Ensuring debt repayment after death
• Covering contingent liabilities
• Protecting against the death of a key employee or person in your business
• Buying out a partner or co-shareholder after his or her death
• Protecting your business from business interruption and loss of income
• Protecting yourself against unforeseeable health expenses
• Protecting your home against theft, fire, flood and other hazards
• Protecting yourself against lawsuits
• Protecting yourself in the event of disability
• Protecting your car against theft or losses incurred because of accidents
• And many more

CONCEPT OF INSURANCE / HOW INSURANCE WORKS

Insurance works by pooling risk. What does this mean? It simply means that a large group of people
who want to insure against a particular loss pay their premiums into what we will call the insurance
bucket, or pool. Because the number of insured individuals is so large, insurance companies can use
statistical analysis to project what their actual losses will be within the given class. They know that
not all insured individuals will suffer losses at the same time or at all. This allows the insurance
companies to operate profitably and at the same time pay for claims that may arise. For instance,
most people have auto insurance but only a few actually get into an accident. You pay for the
probability of the loss and for the protection that you will be paid for losses in the event they occur.

CLASSIFICATION OF INSURANCE:
Insurance is basically classified into two categories.
(1) Life Insurance
(2) General Insurance

LIFE INSURANCE:

This is provided for the payment of sum money on


the death of the insured person due to natural causes
or on the expiry of a certain number of years if the
insured person is then alive. Death and life neither of
them can be compensated. Life insurance aims to compensate the ‘Income Earning Capacity’ of the
person.

Events covered in Life Insurance:


In Life Insurance, income –earning capacity of the person is covered. The loss of the income earning
capacity can be on the happening of the following events when the life is assured.
1. Death.
2. Sickness (critical illness).
3. Accident (Death or permanent disability due to accident).
4. Retirement.

GENERAL INSURANCE:
Insurance other than life fall under general insurance. It covers loss of every other physical or non-
possession. The loss may be due to fire, theft, accident etc. the general insurance is further classified
into-

 Fire insurance:

It covers movable and immovable properly having


monetary value. It covers the loss or damage to
insured property by specific perils
for example: damage of property in manufacturing premises due to fire may result in total or partial
stoppage of production process leading to loss of
profits. Such loss of profit can be covered under loss
insurance policy.

 Marine Insurance:

It is of the oldest branches of the insurance. It plays


a significant role in both and internal and
international trade. The insurers undertake to
indemnify the insured against the losses occur
during transit by rail, road, sea or air.

 Home Insurance

Home insurance provides compensation for damage or


destruction of a home from disasters. In some
geographical areas, the standard insurances excludes
certain types of disasters, such as flood and
earthquakes, that require additional coverage.
Maintenance-related problems are the homeowners'
responsibility. The policy may include inventory, or
this can be bought as a separate policy, especially for
people who rent housing. In some countries,
insurers offer a package which may include liability and legal responsibility for injuries and
property damage caused
by members of household.

 Miscellaneous Insurance:
Insurance that takes other fire and marine is known as miscellaneous insurance. It is covered under
the several classes of which motor insurance, property, credit, automobile, burglary insurance, cattle
and crop insurance are most important.

INSURANCE AS INVESTMENT:

Insurance plans are the best selling life insurance


product in the country. This single fact says a lot about how
most Indians who get investment plans to get their lives
insured, save on tax build a retirement corpus and fund their
children’s education, among other things.
Insurance plans offers good value to novice
investment and those with a low appetite for risk. They
force the habit of regular saving and help to create funds for lives, many financial goals; and unlike
with mutual funds on stocks, there is no risk of capital erosion. But there is a
price you pay for such certainty; low returns.

TAX- BENEFITS:
One of the several reasons given to buy life insurance is to save on tax. It’s true that there are
extremely generous tax breaks to be avoided of life insurance,

PREMIUMS:
For the salaries, the rebate under section 88 of the income tax act is an effective way to lower
tax rebates under this section, along with investments with other instruments like PPF and NSC.
Note: if you claim a rebate on investment in insurance but withdraw from it with in 2 years, the
rebate claims will be deemed as tax payable, the amount of tax rebate that can claim under section
88 in a year on the income that year.

INDIAN INSURANCE INDUSTRY


“AN OVERVIEW”

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act,
1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and
the untapped market area of this population Insurance happens to be a very big opportunity in India.
Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking
services, it adds about 7 per cent to the country’s GDP .In spite of all this growth the statistics of the
penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are
without Life insurance cover and the Health insurance. This is an indicator that growth potential for
the insurance sector is immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation “Malhotra Committee” was constituted by
the government in 1993 to examine the various aspects of the industry. The key element of the
reform process was Participation of overseas insurance companies with 26% capital. Creating a more
efficient and competitive financial system suitable for the requirements of the economy was the main
idea behind this reform.

Since then the insurance industry has gone through many sea changes .The competition LIC started
facing from these companies were threatening to the existence of LIC .since the liberalization of the
industry the insurance industry has never looked back and today stand as the one of the most
competitive and exploring industry in India. The entry of the private players and the increased use of
the new distribution are in the limelight today. The use of new distribution techniques and the IT
tools has increased the scope of the industry in the longer run.

INDIAN INSURANCE MARKET – HISTORY

LIFE INSURANCE:

In 1818 the British established the first insurance company in India in Calcutta, the

Oriental Life Insurance Company. First attempts at regulation of the industry were made with the
introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this
Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were
the power given to the Government to collect statistical information about the insured and the high
level of protection the Act gave to the public through regulation and control. When the Act was
changed in 1950, this meant far reaching changes in the industry. The extra requirements included a
statutory requirement of a certain level of equity capital, a ceiling on share holdings in such
companies to prevent dominant control (to protect the public from any adversarial policies from one
single party), stricter control on investments and, generally, much tighter control. In 1956, the
market contained 154 Indian and 16 foreign life insurance companies. Business was heavily
concentrated in urban areas and targeted the higher echelons of society. “Unethical practices adopted
by some of the players against the interests of the consumers” then led the Indian government to
nationalize the industry. In September 1956, nationalization was completed, merging all these
companies into the so-called Life Insurance Corporation (LIC). It was felt that “nationalization has
lent the industry fairness, solidity, growth and reach.”

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.

GENERAL INSURANCE:

The General Insurance industry in India dates back to the Industrial Revolution and the subsequent
increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought
General Insurance to India, and a similar path was followed in the development of this industry. A
number of private companies were in existence for years and years until, in 1971, the Indian
Government decided that the public interest would be served by nationalizing the industry, merging
all the 107 companies into four companies, depending on the sort of business transacted (Marine,
Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance
Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company
Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a ‘holding’ company, having these four companies as its
subsidiaries.
Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and
the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance
business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four
companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd.,
the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

INDIAN INSURANCE SECTOR REFORM

Formation of the Malhotra Committee in 1993 initiated reforms in the Indian insurance sector. The
aim of the Malhotra Committee was to assess the functionality of the Indian insurance sector. This
committee was also in charge of recommending the future path of insurance in India.

The Malhotra Committee attempted to improve various aspects of the insurance sector, making them
more appropriate and effective for the Indian market.

The recommendations of the committee put stress on offering operational autonomy to the insurance
service providers and also suggested forming an independent regulatory body.
The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial
policy changes in the insurance sector of India. It led to the formation of the Insurance Regulatory
and Development Authority (IRDA) in 2000.

The goals of the IRDA are to safeguard the interests of insurance policyholders, as well as to initiate
different policy measures to help sustain growth in the Indian insurance sector.

INSURANCE REGULATORY AND DEVELOPMENT


AUTHORITY

The Insurance Regulatory and


Development Authority (IRDA)
is a national agency of the Government of India, based in Hyderabad. In 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate
and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000.
The key objectives of the IRDA include promotion of competition so as to enhance customer
satisfaction through increased consumer choice and lower premiums, while ensuring the financial
security of the insurance market. The IRDA opened up the market in August 2000 with the invitation
for application for registrations. Foreign companies were allowed ownership of up to 26%. The
Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has
from 2000 onwards framed various regulations ranging from registration of companies for carrying
on insurance business to protection of policyholders’ interests.
Role of IRDA:
• Protecting the interests of policyholders.
• Establishing guidelines for the operations of insurers, and brokers.
• Specifying the code of conduct, qualifications, and training for insurance intermediaries and
agents.
• Promoting efficiency in the conduct of insurance business.
• Regulating the investment of funds by insurance companies.
• Specifying the percentage of business to be written by insurers in rural sectors.
• Handling disputes between insurers and insurance intermediaries.

List of all life insurance company granted permission by IRDA is indicated below:

1. Bajaj Allianz Life Insurance Company Limited


2. Birla Sun Life Insurance Co. Ltd
3. HDFC Standard Life Insurance Co. Ltd
4. ICICI Prudential Life Insurance Co. Ltd.
5. ING Vysya Life Insurance Company Ltd.
6. Life Insurance Corporation of India
7. Max New York Life Insurance Co. Ltd
8. Met Life India Insurance Company Ltd.
9. Kotak Mahindra Old Mutual Life Insurance Limited
10. SBI Life Insurance Co. Ltd
11. Tata AIG Life Insurance Company Limited
12. Reliance Life Insurance Company Limited.
13. Aviva Life Insurance Co. India Pvt. Ltd.
14. Sahara India Life Insurance Co, Ltd.
15. Shriram Life Insurance Co, Ltd.
16. Bharti AXA Life Insurance Company Ltd.
17. Future Generali Life Insurance Company Ltd.
18. IDBI Fortis Life Insurance Company Ltd.
19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
20. AEGON Religare Life Insurance Company Limited.
21. DLF Pramerica Life Insurance Co. Ltd.
22. Star Union Dai-ichi Life Insurance Comp. Ltd.
CHAPTER 2

COMPANY PROFILE

COMPANY PROFILE

HDFC Standard Life Insurance Company Ltd.


HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. HDFC Standard Life
Insurance Company Limited is one of the first companies to be licensed by IRDA to operate in the
Insurance sector. It is a joint venture between Housing Development Finance Corporation Limited
(HDFC Limited), India's leading housing finance institution and a Group Company of the Standard
Life Plc, UK. The company came into existence on 14th August 2000. HDFC holds 81.4% share in
HDFC and the remaining 18.6% stake is with Standard Life.

HDFC Standard Life continues to have one of the widest reaches among new insurance
companies through a network of 595 offices serving over 700 cities and towns across the
country. The company has also increased its depth in existing markets with a strong base of more
than 2,00,000 Financial Consultants.

HDFC STANDARD LIFE INSURANCE PERCENTAGE:

HDFC Limited
• HDFC incorporated in 1977 with a share capital of Rs 10 crores.

• HDFC Limited, India’s premier housing finance institution has assisted more than 3.3
million families own a home, since its inception in 1977 across 2400 cities and towns
through its network of over 250 offices.

• It has international offices in Dubai, London and Singapore with service associates in Saudi
Arabia, Qatar, Kuwait and Oman to assist NRI’s and PIO’s to own a home back in India.

• As of December 2008, the total asset size has crossed more than Rs. 95,000 crores including
the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base
of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors.

• Customer Service and satisfaction has been the mainstay of the organization.

Standard Life Group (Standard Life plc and its subsidiaries)


• Standard Life is Europe’s largest mutual life assurance company.
• The Standard Life Group has been looking after the financial needs of customers for over
180 years. It currently has a customer base of around 7 million people who rely on the
company for their insurance, pension, investment, banking and health-care needs.
• Its investment manager currently administers £125 billion in assets.
• It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with
a rating of A+ and as 'good' with a rating of A1 by Moody's.
• Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money
Marketing Awards, and it was voted a 5 star life and pension’s provider at the Financial
Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been
awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since
its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender'
at the Mortgage Magazine Awards in 2006.

JOINT VENTURE
HDFC Standard Life Insurance Company Limited was one of the first companies to be granted
license by the IRDA to operate in life insurance sector. Reach of the JV player is highly rated and
been conferred with many awards. HDFC is rated ‘AAA’ by both CRISIL and ICRA. Similarly,
Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s. These reflect the efficiency
with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr.
Respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the
majority stakeholder in the insurance JV with 81.4 %stale and Standard :of as a staple pf 18.6% Mr.
Deepak Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance Company Ltd. Is one of India’s leading Private 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.) India’s leading housing
finance institution and the Standard Life Assurance Company, a leading provider of financial
services from the United Kingdom. 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-
all important factors to consider when choosing your insurer.

KEY PLAYERS
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).

Sir 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. Sir
Crombie is a fellow of the Faculty of Actuaries in Scotland.

HDFC KEY STRENGTH


Financial Expertise

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

Range of Solutions

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

Track Record So Far

Our gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 crores.

The company has covered over 8,33,070 lives as on March 31, 2009.

CORPORATE OBJECTIVE
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'.

'The most obvious choice for all'.

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


ASSOCIATE COMPANIES

HDFC Limited

HDFC Bank

HDFC Mutual Fund

HDFC Sales

HDFC ERGO General Insurance

Other Companies

• HDFC Trustee Company Ltd.

• GRUH Finance Ltd.


• HDFC Developers Ltd.

• HDFC Property Ventures Ltd.

• HDFC Ventures Trustee Company Ltd.

• HDFC Investments Ltd.

• HDFC Holdings Ltd.

• Credit Information Bureau (India) Ltd

• HDFC Securities

ACCOLADES AND RECOGNITION

• HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile workforce
portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellence (using IT) is
an initiative by the ,Network Computing magazine to identify, recognise, and honour end-
user companies in India that have demonstrated the best use of technology to solve a business
problem, improve business competitiveness, and deliver quantifiable ROI to stakeholders.

• Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in
2004.
• Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India number 1
personal finance magazine
COMPETITORS
MARKET SHARE POSITION

Life Insurance Corporation of India’s (LIC’s) market share has slipped by almost 4% to 83.3% from
87% market share last fiscal. However, in terms of number of policies sold, LIC continues to
dominate the Indian life insurance market with about 91% market share.

In terms of group insurance schemes, LIC’s market share was at 72.2% after it covered 4.9 lakh
lives. Private players had 27.9% of the market covering 1.9 lakh lives.

The 12 private players in the country together mopped up Rs 385 crore in premium in the first two
months selling over 2 lakh policies. ICICI Prudential Life leads with market share of 5.9% It is
followed by Birla Sunlife with a market share of 2.6%, Allianz Bajaj (1.6%), Tata AIG (1.5%),
HDFC Standard Life (1.4%) and SBI Life (1.2%).

Each of the other private players like Aviva, Max New York Life, OM Kotak Life, ING Vysya,
AMP Sanmar and MetLife had less than 1% market share but posted high growth in business. In
terms of premium collection, ICICI Prudential mopped up Rs 136 crore followed by Birla Sunlife
(Rs 60 crore), Allianz Bajaj (Rs 37 crore), Tata AIG (Rs 35 crore), HDFC Standard Life (Rs 33
crore), SBI Life (Rs 27 crore).
SWOT ANALYSIS

OF HDFC STANDARD LIFE INSURANCE

STRENGTH

1. Domestic image of HDFC supported by Standard Life’s international image is strength of the
company.
2. Strong and well spread network of qualified intermediaries and sales person.
3. Strong capital and reserve base.
4. The company provides customer service of the highest order.
5. Huge basket of product range which are suitable to all age and income groups.
6. Large pool of technically skilled manpower with in depth knowledge and understanding of
the market.
7. The company also provides innovative products to cater to different needs of different
customers.

WEAKNESS

1. Heavy management expenses and administrative costs.


2. Low customer confidence on the private players.
3. Vertical hierarchical reporting structure with many designations and cadres leading to power
politics at all levels without any exception.
4. Poor retention percentage of tied up agents.

OPPORTUNITIES

1. Insurable population: According to IRDA only 10% of the population is insured which
represents around 30% of the insurable population. This suggests more than 300m people,
with the potential to buy insurance, remain uninsured.
2. There will be inflow of managerial and financial expertise from the world’s leading
insurance markets. Further the burden of educating consumers will also be shared among
many players.
3. International companies will help in building world class expertise in local market by
introducing the best global practices.

THREATS

1. Other private insurance companies also vying for the same uninsured population.
2. Big public sector insurance companies like Life Insurance Corporation (LIC) of India,
National Insurance Company Limited, Oriental Insurance Limited, New India Assurance
Company Limited and United India Insurance Company Limited. People trust and go to them
more.
3. Poaching of customer base by other companies.
4. Most people don’t understand the need or are not willing to take insurance policies in
general.
PRODUCT PROFILE

 INDIVIDUAL PRODUCTS
HDFC Standard life realizes that not everyone has the same kind of needs. Keeping this in mind,
HDFC have a varied range of products that you can from to suit all your needs. These will help
secure your future as well as the future of your family.

Protection Plans

You can protect your family against the loss of your income or the burden of a loan in
the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of
mind at a small price.
• Term Assurance Plan
• Loan Cover Term Assurance Plan
• Home Loan Protection Plan

Investment Plans
Investment plan is well suited to meet your long term investment needs. HDFC provide you
with attractive long term returns through regular bonuses.
• Single Premium Whole Life Plan

Pension Plans

HDFC Pension Plans help you secure your financial independence even after retirement.
• Personal Pension Plan
• Unit Linked Pension Ii
• Unit Linked Pension Maximiser Ii

Savings Plans

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

Health Plans

Our health plans provides you with timely support in case of any health related emergencies
and helps you and your family to remain financially independent in difficult times
• Critical Care Plan
• Surqi Care Plan

 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. We
offer different products for different needs of employers ranging from term insurance plans for pure
protection to voluntary plans such as superannuation and leave encashment.
We now offer the following group products to our esteemed corporate clients:
• Group Term Insurance
• Group Variable Term Insurance
• Group Unit-Linked Plan

 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. On the death of any member of the group insured
during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of the
immediate financial needs following their loss.

In the above mentioned plans, I particularly was dealing with:

1. Endowment Assurance Plan

2. Unit Linked Endowment Assurance Plan

3. Children’s Plan

4. Unit Linked Young Star Plan

5. Money Back Plan

6. Single Premium Whole Life Insurance Plan

7. Term Assurance Plan

Endowment Assurance Plan


You have given your family the very best. And there is no reason why they shouldn't get
the very best in the future too. As a judicious family man, your priority is to secure the well-being of
those who depend on you. Not just for today, but also in the long term. More importantly, you have
to guard your loved ones against any eventuality. How will they sustain their way of life, so lovingly
built by you, in your absence?
With our HDFC Endowment Assurance Plan, you can ensure that your family remains
financially independent, even if you are not around. You can ensure that they live a life of respect
and dignity always.

The HDFC Endowment Assurance Plan gives you:


• An ideal way to secure your long-term financial goals
• Valuable protection to your family by way of lump sum payment in case of your unfortunate
demise within policy term
• Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity
date
• Very flexible benefit options and payment options

Unit linked endowment assurance plan


In this policy, the investment risk in investment portfolio is borne by the policy holder.
You have given your family the very best. And there is no reason why they should not get the
very best in the future too. With HDFC Unit Linked Endowment plus II, you can ensure that your
family remains financially independent, even if you are not around. You can ensure that they live a
life of respect and dignity, Always.
The HDFC Unit Linked Endowment plus II gives:
• Valuable protection to your family in case you are not around
• An outstanding investment opportunity by providing a choice of thoroughly researched and
selected investments
• Regular Loyalty Units to boost your fund value every year
• Flexible benefit combinations and premium payment options
• Flexible additional benefit options such as critical illness cover

Children’s plan
As a parent, your priority is your child's future and being able to meet your child's dreams
and aspirations.
Today, providing a good education, establishing a professional career or even a modest wedding is
expensive. Costs are increasing fast. Just imagine how much you'll need when your child takes these
important steps in life!
Plan today to ensure a bright future for your child. Start building savings today with our HDFC
Children's Plan.
So that your child is able to lead a life of respect and dignity with a secured financial future
The HDFC Children's Plan gives you:
• Invaluable financial support to your child
• A choice to customize an ideal plan for your child
• Multiple options for multiple benefits
Unit linked young star plan
As a parent, your priority is your children’s future and being able to meet their dreams and
aspirations. Today, providing a good education, establishing a professional career or even a modest
wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your
children take these important steps in life.
Plan today to ensure a bright future for your children. Start building savings today with our HDFC
Unit Linked Young Star Champion so that your child is able to lead a life of respect and dignity with
a secured financial future.
The HDFC Unit Linked Young Star Champion gives:
• Valuable protection to your child in case you are not around
• An outstanding investment opportunity by providing a choice of thoroughly researched and
selected investments
• Bumper Addition to the fund value at maturity
• Flexible premium payment options
• No need to go for medicals. Just filling a Short Medical Questionnaire will do!

Money Back Plan


You have always believed in living life on your own terms. So why let the changing realities
of everyday life overwhelm you and make your aspirations take a back seat? You can plan now to
ensure that you have the necessary funds to meet your future financial needs.
The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you:
• A proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervals within
the policy term (see the table given below) an ideal way to secure your long- term as well as
short-term financial goals.
• A lump sum payment on survival up to maturity date.
• Valuable protection to your family by way of lump sum payment in case of your unfortunate
death within the policy term

Single premium whole life insurance plan


The well-informed rightly said and proves how important investments are in today’s date and
age. The question that we all fear is – What about the risks attached?
HDFC Standard Life Insurance brings to you a safe investment plan that would take care of your
savings and nurture your earnings
HDFC Single Premium Whole of Life Insurance Plan is a tailor-made plan well suited to meet your
long-term investment needs. This participating plan offers you the following benefits:
• Whole of life plan aimed at providing long-term real growth of your money
• Single premium investment plan
• In case of your unfortunate demise during the policy term, this participating (‘With Profits’)
insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses,
which are usually added annually. An additional Terminal Bonus may be paid depending on
the performance of the underlying investments
• During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as at
the date of surrender

Term assurance plan


The HDFC Term Assurance Plan is an insurance policy that is designed to help secure your family's
financial needs. The plan does this by providing a lump sum to the family of the life assured in case
of death or critical illness (if option is chosen) of the life assured during the term of the contract. One
can choose the lump sum that would replace the income lost to one's family in the unfortunate event
of one's death.
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.

7 Easy Ways to pay your premium:


1. At any of our branches

You can deposit Cheque / Demand Draft drawn in favour of “HDFC SLIC” at any of Our branch
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 & Cheque)
Closed on Sundays

2. Postage / Courier

You can send cheques and demand drafts drawn in favour of HDFC SLIC to any of our branch
offices.

3. 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, Axis Bank, State Bank of India, Punjab National Bank, Union Bank of India, Bank of
Baroda

4. 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

5. 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 61 cities

6. 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

7. Credit Card Facility

You can pay your renewal premium through your HDFC Bank credit card.

Checklist while paying your renewal premium through


cheque/ demand draft

• your policy number and name correctly on the reverse side of the cheque/ demand draft

• We do not accept Post Dated Cheques (PDC’s) 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

• Unit Linked Polices you can pay using Local Cheques/ Demand Drafts
other policies you can pay using either Local or Outstation cheques or Demand Drafts
TAX BENEFITS

INCOME GROSS HOW MUCH TAX CAN YOU HDFC STANDARD


TAX ANNUAL SAVE? LIFE PLANS
SECTION SALARY
Sec. 80C Across All Upto Rs. 33,990 saved on investment All the life insurance
income Slabs of plans.
Rs. 1,00,000.

Sec. 80 CCC Across all Upto Rs. 33,990 saved on Investment All the pension plans.
income slabs. of Rs.1,00,000.
Sec. 80 D* Across all Upto Rs. 10197 saved on Investment of All the health insurance
income slabs riders available with the
Rs. 30,000. (inclusive of Rs. 15000 conventional plans.
towards health insurance of parents)

Upto Rs.11897 saved on investment of


Rs. 35000(inclusive of Rs.20000
towards health insurance of parents
who are senior citizens)

TOTAL SAVINGS
POSSIBLE **
Rs44187

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.10,197 or
Rs.11,897 under Sec. 80 D, calculated for a male with gross annual
income
exceeding Rs. 10,00,000.

Under sec. 10(10D), the benefits received by you are completely tax free.

MAJOR LIFE INSURANCE PLAYERS

Life Insurance Corporation of India (LIC)

About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating
in India at the time of nationalization of Life Insurance Industry. Nationalization was accomplished
in two stages; initially the management of the companies was taken over by means of an Ordinance,
and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the
Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of
India was created on 1st September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable persons in the country,
providing them adequate financial cover at a reasonable cost. 245 Indian and foreign insurers and
provident societies are taken over by the central government and nationalized. LIC continues to be
the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a
new growth trajectory surpassing its own past records. LIC has issued over one crore policies during
the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005,
posting a healthy growth rate of 16.67% over the corresponding period of the previous year.

HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.), India’s leading housing finance institution and one of the subsidiaries of Standard Life plc,
leading providers of financial services in the United Kingdom. The Standard Life group has been
looking after the financial needs of customers for over 180 years. It is a leading pension’s provider in
the UK. Both the promoters are well known in their respective fields of activities.

Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune
100 company and Max India Limited, one of India's leading multi-business corporations. The
Company's paid up capital is Rs. 587 crore, which is more than the norm laid down by IRDA.

ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's
foremost financial services companies-and Prudential plc- a leading international financial services
group headquartered in the United Kingdom. Total capital infusion stands at Rs. 15.85 billion, with
ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI Prudential commenced
operations in December 2000.
Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank
Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions,
offering complete financial solutions that encompass every sphere of life. From commercial banking,
to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the
financial needs of individuals and corporates. Old Mutual plc is an international financial services
group, whose activities are focused on asset gathering and asset management.

Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance is a joint venture between the Aditya Birla Group and Sun Life Financial,
Birla Sun Life foraying into the life insurance and retirement planning business. The Aditya Birla
Group has a turnover close to Rs. 38000 crores (as on March 31, 2006) and is one of the largest
business houses in India. Sun Life Financial Inc. is a leading international financial services
organization providing a diverse range of wealth accumulation and protection products and services
to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its
partners today have operations in key markets worldwide, including Canada, the United States, the
United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of
March 31, 2006, the Sun Life Financial group of companies had total assets under management of
USD 343 billion.

Tata AIG Life Insurance Company Ltd.

Tata AIG Life Insurance Company Limited and Tata AIG General Insurance Company Limited
(collectively 'Tata AIG') are joint ventures of the Tata Group and American International Group, Inc.
(AIG). Tata AIG combines the strength of the Tata Group with AIG's international expertise and
financial strength. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding
the balance 26 percent. Tata AIG Life provides insurance solutions to individuals and corporates.
Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started
operations on April 1, 2001.

SBI Life Insurance Company Limited.


SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI
Life Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital of Rs
500 crores. SBI owns 74% of the total capital and Cardif the remaining 26%. State Bank of India
enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the
unrivalled strength of over 14,500 branches across the country, the largest in the world. Cardif is a
wholly owned subsidiary of BNP Paribas, which is The Euro Zone’s leading Bank. BNP Paribas is
one of the oldest foreign banks with a presence in India dating back to 1860. Cardif is ranked 2nd
worldwide in creditor’s insurance offering protection to over 35 million policyholders and net
income in excess of Euro 1 billion mark. Cardif has also been a pioneer in the art of selling insurance
products through commercial banks in France and 34 more countries.

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates- Allianz
AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3
wheeler manufacturers in the world. Characterized by global presence with a local focus and driven
by customer orientation to establish high earnings potential and financial strength, Bajaj Allianz Life
Insurance Co. Ltd. was incorporated on 12th March 2001.
CHAPTER 3

INTRODUCTION TO STUDY

“CUSTOMER BUYING BEHAVIOUR

IN LIFE INSURANCE INDUSTRY”

Customer Buying Behaviour

 Introduction
Consumer is the king and it is the consumer determines what a business is, therefore a sound
marketing programme start with a careful analysis of the habits, attitudes, motives and needs of
consumers.

 Definition of Buying Behaviour

Buying Behavior is the decision processes and acts of people involved in buying and using products.

 Consumer buying behaviour

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to
analyze buying behavior for:

• Buyers reactions to a firms marketing strategy has a great impact on the firms success.
• The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies
(gives utility to) customers, therefore need to analyze the what, where, when and how
consumers buy.
• Marketers can better predict how consumers will respond to marketing strategies.

How Consumer Buy

1. Need/Want/Desire is Recognized

In the first step the consumer has determined that for some reason he/she is not satisfied (i.e.,
consumer’s perceived actual condition) and wants to improve his/her situation (i.e., consumer’s
perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the
consumer that food or drink is needed. External factors can also trigger consumer’s needs. Marketers
are particularly good at this through advertising, in-store displays and even the intentional use of
scent (e.g., perfume counters).

2. Search for Information

Assuming consumers are motivated to satisfy his or her need, they will next undertake a search for
information on possible solutions. The sources used to acquire this information may be as simple as
remembering information from past experience (i.e., memory) or the consumer may expend
considerable effort to locate information from outside sources (e.g., Internet search, talk with others,
etc.). How much effort the consumer directs toward searching depends on such factors as: the
importance of satisfying the need, familiarity with available solutions, and the amount of time
available to search.

3. Evaluate Options

Consumers’ search efforts may result in a set of options from which a choice can be made. It should
be noted that there may be two levels to this stage. At level one the consumer may create a set of
possible solutions to their needs (i.e., product types) while at level two the consumer may be
evaluating particular products (i.e., brands) within each solution. For example, a consumer who
needs to replace a television has multiple solutions to choose from such as plasma, LCD and CRT
television.

4. Purchase

In many cases the solution chosen by the consumer is the same as the product whose evaluation is
the highest. However, this may change when it is actually time to make the purchase. The “intended”
purchase may be altered at the time of purchase for many reasons such as: the product is out-of-
stock, a competitor offers an incentive at the point-of-purchase (e.g., store salesperson mentions a
competitor’s offer), the customer lacks the necessary funds (e.g., credit card not working), or
members of the consumer’s reference group take a negative view of the purchase (e.g., friend is
critical of purchase).

5. After-Purchase Evaluation

Once the consumer has made the purchase they are faced with an evaluation of the decision. If the
product performs below the consumer’s expectation then he/she will re-evaluate satisfaction with the
decision, which at its extreme may result in the consumer returning the product while in less extreme
situations the consumer will retain the purchased item but may take a negative view of the product.
Such evaluations are more likely to occur in cases of expensive or highly important purchases. To
help ease the concerns consumers have with their purchase evaluation, marketers need to be
receptive and even encourage consumer contact. Customer service centers and follow-up market
research are useful tools in helping to address purchasers’ concerns.
CHAPTER 4

OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY


OBJECTIVE

Objective One

• To know about the products of HDFC Standard Life Insurance.

• To determine reasons behind opting for an insurance.

• To provide the company with information of customer's Insurance policy if they have any and
reasons for opting for that particular policies.

 To know the most preferred policy.

Objective Two

• To determine customers perception towards private insurance companies and their expectation
form private insurance companies.

• To determine the feedback on services provided by any other insurance agent.

• To study the types of benefits provided by insurance services.


CHAPTER 5

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
 TITLE

“Customer-buying behaviour in Life Insurance Industry”

TITLE JUSTIFICATION

The above title is self explanatory. The study deals mainly with studying the buying pattern in the
insurance industry with a special focus on HDFC Standard Life Insurance. The various segments of
the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also
studied.

 RESEARCH DESIGN OF THE STUDY:


Marketing research can be defined as the systematic design, collection, analysis, and
reporting of the data and finding relevant to a specific marketing situation facing the company.
Research design is the basic plan which guides the researchers in the collection and analysis
of data required for practicing the research product. In fact the research design is the conceptual
structure with which research is conducted. It consist the blue print for the collection, measurement
and analysis of the data that was followed completing the study to ensure that study is relevant to the
problem and will follow the predetermined and set data.
The main data feature of “Research Design” is that it specifies population to be studied. The
main theme of the chapter is to know the source of the data the researcher has collected. Data are
raw facts of observation, typically about physical phenomenon. Thus data are usually subjected to
value added process where
• It from is aggregated, manipulated and organized
• Its contents are analyzed and evaluated
• It is placed in a proper context for human user
Therefore, information is processed data placed in a context gives value for the reader. It is a basis
for analyzing and interpreting, which helps in making note of findings, conclusions and also helps to
give suggestions so data should accurate, correct and clear. If it is inaccurate and not in proper order
the whole out put gets affected and it may lead to confusion.

Descriptive research
The research design selected for this research is descriptive research design.
 COLLECTION OF DATA:
Collection of the data for the study can be drawn from following methods for study.
Sources of the data:
After determining the objectives of study and research design, the next important step is data
collection method. There are two types of data sources:
• Primary data
• Secondary data
Primary data
Primary data is that which is collected fresh and thus happen to be original in character. It was
collected through questionnaire prepared contains relevant questions that are both close ended and
opened. I have collected mainly the Primary Data for my study by utilizing the questionnaire
methods.
Secondary data
Secondary data is any data, which have been gathered earlier for some other purpose. These data are
collected from published sources such as several books and also from the help of web site.
Reason for selecting primary data:
In terms of primary data structure questionnaire was prepared to interview the professional,
housewives, investment consultant, Govt. Employees and other in Jind location. Analysis clearly
reflected the views and preference regarding the perception of the people towards joining HDFC
standard life.

 SAMPLING METHODOLOGY

Sampling method:
The researcher had choice between probability and non probability sampling methods. In this
study a simple non probability method namely convenience sampling was adopted.
For my study I have selected Non-probability method in which I selected convincing
sampling method.

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units. These comprise of
Govt. Employees, Self Employed, professionals, housewives etc.

Sample size:
The sample size was restricted to only 25, which comprised of peoples from Jind due to time
constraints.

Sampling Area:

The area of the research was Jind (Haryana), INDIA.

 FIELD WORK:
Survey was done in JIND.
The data was collected over a period of 5 days within JIND city using well structured questionnaire.
Plan of the data analysis:
Planning and analysis of data can be done through three steps. They are editing coding tabulation.
These three are very important in analyzing the data.
Editing:
Editing is the process of examining errors when there is some inconsistency in the responses as
entered in the questionnaire or where it contains partial or vague answers.
Coding:
Coding is necessary to carryout the subsequent operations of tabulating and analyzing data. If coding
is not done, it will not be possible to reduce a large number of heterogeneous responses into
meaningful categories with the result that the analysis of data would be weak and ineffective and
without proper focus.
Tabulation:
Tabulation comprises sorting of the data into different categories and counting the number of cases
that belong to category the simplest way to tabulate is to count the number of responses to one
question. This is called univariate tabulation. Where two or more variables are involved in
tabulation, it is called bivariate or multivariate tabulation. In marketing research projects and
generally both types of tabulation are used.
CHAPTER 6

DATA ANALYSIS AND INTERPRETATION


DATA ANALYSIS AND INTERPRETATION

 Data shows respondents perception about best form of investment for securing their
future

RESPONSE No. of Respondents SHARE (%)


Fixed Assets 13 52
Bank Deposits 4 16
Commodity 0 0
Securities 0 0
Insurance 6 24
Real Estate 2 8
Total 25 100

8%

fixed assets
24% bank deposit
commodity
52%
securities

0% insurance
real estate
16%

INTERPRETATION:-

• 52% of the respondents as with the view that Fixed Assets is the best form of investment
for securing their future.

• 24% of the respondents are with the perception that Insurance is the best form of
investment for securing their future, which is one of the highest and this shows that insurance is
an important key for securing your future.
 Data shows peoples having insurance

RESPONSE NO. OF SHARE (%)


RESPONDENTS

Yes 21 84

No 4 16

Total 25 100

16%

yes
no

84%

INTERPRETATION

• Of the sample size of 25 surveyed respondents 84% of the respondents are having
Insurance policy.

• 16% of the respondents is either not having any Insurance policy at present or their
policy is already matured.
 Data gives people’s perception on appropriate age for buying insurance

RESPONSE NO. OF SHARE (%)


RESPONDENTS
After 25 years 6 24
After 35 years 4 16
After 45 years 0 0
Anytime 15 60

24%

After 25 Yrs.
After 35 Yrs
After 45 Yrs
60%
16% Anytime

0%

INTERPRETATION

• 24% of the respondents are with the view that insurance should be bought after the age
of 25 years.

• 16% of the respondents are with the view that insurance should be buying after the age
of 35 years.

• Whereas, 60% of the respondents are with the view that buying of insurance do not have
any thing to do with age i.e. there is no age limitations. It can be purchased any time according
to the need.
 Data shows people opinion about Indian insurance companies

RESPONSE NO. OF SHARE (%)


RESPONDENTS
Rigid plans 1 3
Unsatisfactory services 0 14
Non Aggressive 2 7
Satisfactory 12 42
Good 7 24
Very good 3 10
10% 3%
14% Rigid plan

Unsatisfactory
7% services
24% Non-Aggrassive

Satisfactory

Good

Very Good

42%

INTERPRETATION

• 3% of the respondents have the opinion that Indian Insurance Companies have rigid
plans.

• 14% feel that services of Indian Insurance companies are Unsatisfactory.

• 7% of the respondents are with the view that Indian Insurance companies are Non-
aggressive.

• 42% of the respondents feel that products and services of Indian Insurance companies is
Satisfactory.

• Whereas 24% feel that it is Good enough.

• And according to the data, only 10% has feel that it is very good.
 Data shows what people would look for in an insurance company

RESPONSE NO. OF SHARE (%)


RESPONDENTS
A Trusted Name 8 32
Friendly Service & 0 0
Responsiveness
Good Plans 8 32
Accessibility 0 0
Risk Coverage 5 20
Investment Benefit 4 16

16%
Trusted Name
32%
Friendly service &
responsiveness
Good plans
20% Accessibility

0% Risk coverage
0% Invesment benefit

32%

INTERPRETATION

• 32% customers look for a Trusted name in a company for insurance.

• 32% customers look for a good plan in a company for insurance.

• Risk coverage & Investment benefit are also important factors looked by customers in a
company.
 Data gives preference of respondents of insurance companies

NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT

LIC 18 64

ICICI PRUDENTIAL 3 11

SBI Life Insurance 0 0


HDFC Standard Life
2 7
Insurance
RELIANCE Life Insurance 2 7
TATA AIG Life Insurance 3 11
11%
LIC
7%
ICICI Prudential

7% SBI Life
0%
HDFC Standard
Life
11% Reliance Life
64%
TATA AIG

INTERPRETATION

 64% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by
that percent of respondents.

 Whereas only 7% of the people contacted prefer HDFC Standard Life Insurance policy.
 Data provides features of insurance policy that attracted respondents

FEATURE NO.OF SHARE (%)


RESPONDENTS
Low premium 7 33
Larger Risk Coverance 3 14
Money Back Guarantee 10 48
Company’s Reputation 1 5
Easy Access to Agents 0 0

5%0%
low premium
33%
larger risk
coverance
money back
guarantee
48% Co's reputation

easy access to
14% agents

INTERPRETATION

 Majority of the respondent (48%) found Money Back Guarantee as the most attracted
feature of the all.
 Data shows satisfaction of respondents with respect to policy

RESPONSE NO. OF SHARE (%)


RESPONDENTS

Satisfied 20 95

Not satisfied 1 5
5%

satisfied
Not satisfied

95%

INTERPRETATION

• 95% of the respondents are more or less satisfied with their existing policy.

• 5% of the respondents are not satisfied with their existing policy.

• In this case all of those who have taken a policy have responded.
 Data shows satisfaction of respondents with respect to service agent

RESPONSE NO. OF SHARE (%)


RESPONDENTS

Satisfied 19 90

Not satisfied 2 10

10%

satisfied
Not satisfied

90%

INTERPRETATION

• 90% of the respondents are satisfied with their existing service agent.

• 10% of the respondents are not satisfied with their existing insurance agent.

• All of those who have taken a policy have responded.


 Data gives people perception about insurance

RESPONSE NO. OF SHARE (%)


RESPONDENTS

A saving tool 9 36

A tax saving device 10 40

A tool to protect your family 6 24

24%

36%
saving tool

tax saving device

tool to protect your


family

40%

INTERPRETATION

• 36% of the respondents have perception of Insurance being a saving tool.

• 40% of the respondents have perception of Insurance being a tax saving device.

• And24% of the respondents are with the view that Insurance is a tool to protect your
family.
CHAPTER 7

LIMITATIONS AND RECOMMENDATIONS


LIMITATION OF THE STUDY:

• The existing customers did not have enough time to spare for the survey.
• Feedback from the respondents may be biased.
• Sample Area: The study is conducted within the city of Jind and therefore the conclusion
derived will to the opinion of the residents.
• Cost constraint: Survey is little costly.
• Sample Size: the intended sample size is only 25, which may not give a true picture of the
consumer investment pattern.
• Time constraint: Since the project is to be conducted alone with on the job training there is
time constraint in meeting people.

RECOMMENDATIONS:

• As the people think that insurance is a tool to protect their family & a tax saving device.
They are aware of the fact & realizing its, importance. The company should try to expand &
build up its infrastructure because there is a large potential for insurance in India.

• Company should come up with its branch in JIND. With the objective and goals to meet
the demands & expectations of the public. Because the entrance of private players will increase
the competition and it would be a tough task to secure a good position in market.

• Since HDFC Standard Life Insurance Company Ltd is leading with several companies’
policies it should be easy for them to penetrate into the market and secure a good position if
they pay greater attention to the service part provided to their customer and thereby forming a
long and trusted relationship.
• As the awareness of insurance is less among the people, its awareness should be
creating among the people by conducting stage shows and explaining its need and importance.

• Insurance should not be considered only as a risk cover element but also as a long term
investment.

• It is also recommended to concentrate to on lower income group people.

• Follow up should be taken and customer relation should be maintained by the inviting
the existing customers to the seminars conducted when launching a new product or any changes
are made to the products or rules to retain them.

CHAPTER 8

CONCLUSION
CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some intresting trends which can be
seen in the above analysis. A general impression that we gathered during Data collection was the
immense awareness and knowledge among people about various companies and their insurance
products. People are beginning to look beyond LIC for their insurance needs and are willing to trust
private players with their hard earned money.

People in general have been impressioned by the marketing and advertising campaigns of insurance
companies. A high penetration of print, radio and Television ad campaigns over the years is
beginning to have its impact now.

Another heartening trend was in terms of people viewing insurance as a tax saving and investment
instrument as much as a protective one. A very high number of respondents have opted for insurance
for such purposes and it shows how insurance companies have been successful to attract public
money in recent times.

The general satisfaction levels among public with regards to policy and agents still requires
improvement. But therein lies the opportunity for a relative new comer like HDFC Standard Life
Insurance Company Ltd. LIC has never been known for prompt service or customer oriented
methods and HDFC Standard Life can build on these factors.
BIBLIOGRAPHY

WEBSITES REFFERED:

• www.irda.com
• www.hdfcinsurance.com
• www.insurance.ind.com
• www.moneyoutlook.com
• www.google.com

BOOKS:

Life-Insurance, By Mc Gill
ANNEXURE
Questionnaire

Dear Sir/ Madam,

I am a student of Jind Institute of Engg. & Technology, Jind. As part of the requirements for my
Masters Degree in Business Administration I am required to do a research based project. Kindly
spend a few minutes of your valuable time and fill in this questionnaire. All the information
provided by you will be used only for academic purposes and will be strictly confidential.

1. Your monthly income?

a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

2. Which is the best form of investments?

a) Fixed Assets

b) Bank Deposits

c) Commodity

d) Securities

e) Mutual fund

f) Insurance

g) Real Estate

3. Do you have any insurance policy?


a) Yes b) No

4. Which insurance policy do you have?

a) Life b) Non-Life c)Both

5. What’s the right age to buy insurance?

a) After 25 Yrs b) After 35 Yrs

c) After 45 Yrs d) Anytime

6. How would you rate Indian insurance companies?

a) Rigid Plans

b) Unsatisfactory Services

c) Non-Aggressive

d) Satisfactory

e) Good

f) Very Good

7. Which features of insurance company you are looking for?

a) A Trusted Name

b) Friendly Service & Responsiveness

c) Good Plans

d) Accessibility

e) Risk Coverage

f) Investment Benefit

8. Which Co’s Insurance Policy You Have?

a) LIC b) ICICI Prudential

c) SBI Life Insurance d) HDFC Standard Life


e) Reliance Life Insurance f) TATA AIG Life

g) Any Other________ (Specify)

9. What is the term of that insurance policy, which you have?

a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______


(Specify)

10. Which feature of your policy attracted you to buy it?

a) Low Premium b) Larger Risk Cover

c) Money Back Guarantee d) Reputation of Company

e) Easy Access to Agents f) Any Other_________ (Specify)

11. Are you satisfied with the policy?

a) Satisfied Saving Tool

b) Not Satisfied

c) Not Responding

12. Are you satisfied with the service agent?

a) Satisfied Saving Tool

b) Not Satisfied

c) Not Responding

13. What’s your perception about insurance?

a) A Saving Tool

b) A Tax Saving Device

b) A Tool To Protect Future

THANK YOU

NAME: _________________________

OCCUPATION: ___________________
CONTACT NO. ___________________