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This is to certify that the work entitled “Customers perception towards HDFC Standard life” with
special reference to HDFC Standard life insurance company Ltd and its various innovative plans
is a piece of term project done by Abhishek Padhi, a student of PGPM 1st year bearing Roll No.
PGPM/09-11/04 has successfully completed his summer internship programme under my
guidance and supervision for partial fulfillment of PGPM curriculum of ASIAN SCHOOL OF

To the best of my knowledge and belief the term project report:

1. Embodies the work of the candidate himself.

2. Has been duly completed.
3. Is up to the standard both in respect to contents and language for being referred to the

I wish him all the best for his future.

Prof. Rohit Prashar

Internal guide


I here by declare that the report “customers perception towards HDFC Standard life “is a
bonafied record of the work done by me at “HDFC Standard life” at Cuttack new towards the
practical fulfillment of requirement for degree in post graduate programme in management
master of business administration under the supervision and guidance of Prof. Rohit Prashar and
Mrs. Smita Bhuyan (Branch Manager HDFCSL, Cuttack new) and this project report have not
been submitted any where else previously for award of any degree.




Private life insurers in the country are lucky that the recent SEBI ban on unit-linked insurance
plans (ULIPs) was cancelled. They would have lost almost half their businesses if the market
regulator’s ban on 14 insurers from raising funds through the investment-cum-insurance
That is because Ulips constitute 46% of the total business in the life insurance space. “Ulip has
taken a prominent place in the global insurance market and India is not far behind. It has become
the growth engine over the years in the Indian insurance market.
Of Rs 2,00,000 crore-plus life insurance premium collected in the first 11 months of 2009-10, a
little over Rs 91,000 crore came from Ulips, according to the Life Insurance Council of India, an
industry body representing 23 life insurers.
Premium collection from renewal of Ulips registered a 33% year-on-year jump in the April-
February period to Rs 46,927 crore, showing that majority of the consumers are banking on
Ulips for better long-term return.
The perception of Ulip has changed over the years. It was initially perceived as a short-term
product; now, people consider it more as a long-term investment tool.
Insurance firms also mopped up Rs 44,462 crore as new Ulip premium in the 11 months, up
17% from Rs 37,948 crore a year earlier.
Ulips are the biggest products for private insurers who derive 70-80% of their premium
collection from its sale.
The country’s largest life insurer, the state-owned Life Insurance Corporation derives a little
more than half of its total new premium collection from Ulips.
There has been significant rise in the Ulip renewal premium collection since 2007 and that goes
on to show that there is a huge appetite for the products. The appetite for Ulip products is
unlikely to go down even as the controversy erupted as people are bothered about their long-term



Summer internship programme is an aim to give practical orientation to the student, to provide
an opportunity and to try and relate the theoretical aspect to the actual challenges in the industry.
However, it goes with saying that proper guidance from experts will broaden the horizon of
Thus, success of any work would be incomplete unless I mention of the people, who made it
possible by spending their valuable time and knowledge with me. I consider it as a privilege to
express through a paper of this report a few words of gratitude and respect that inspired me in my

I express my deep sense of gratitude to Mrs. Smita Bhuyan (Branch Manager HDFCSLIC) for
her guidance and kind support without which the study would not have been possible.

I also express my deep sense of gratitude to Prof. Rohit Prashar for his kind support in bringing
out this project report.

Lastly I would like to thank all my friends for extending their cooperation to me in presenting
this report.



I did my summer internship programme (SIP) with HDFC Standard life (HDFCSL) from 14 th
April to 5th June.

During my summer training in the Housing Development Finance Corporation Standard Life
insurance company limited (HDFCSL) I got enormous opportunity to learn so many aspects of
insurance sector. The job assigned to me was to analyze the customer perception towards the
My SIP was divided into two parts 1st was customers interface of company and 2nd was research

Profile: This project “Customers perception towards HDFC Standard life” was a study of
several ULIPs (unit link insurance plan). This study helped me to understand the perception and
mind set of people while doing investment in different plans. This analysis helped the company
to understand its market share of its product. This analysis focused some light on product
innovation regarding ULIPs.

Reporting: I reported to Mrs. Smita Bhuyan Branch Manager of HDFC Standard life insurance
company, Cuttack new on 14th April.

Team contribution: This was individual effort but some of other members of the company and
my friends helped me a lot.

Learning during SIP: I learned a lot during my project. Firstly it provided me needed
corporate exposure (working with team, business communication, prioritizing work). In the first
part I learned, how to come across with customers and how to convince them for the product of
the company.


HDFCSL is one of India’s leading private insurance companies. It offers

both individual and group insurance solution. It is a joint venture
between HDFC and a group of company of Standard Life. I have chosen
insurance sector as the place for summer training because in these days
this sector is in boom and it will never go down. All people invest their
money in insurance and get more benefited. In the sector the work of
marketing is more challenging than the other sector because there are
23insurance companies in the market who are giving competition to
each other and the work of convince people for investment in respective
company is a challenging work and success in the sector proves that the
respective person is a good marketer. Today insurance sector India is on
boom because all people want to invest. Those who don’t know about
investment in share market and don’t want to invest in mutual funds they
invest in insurance sector. Insurance sector gives them investment plus
risk cover. Those who don’t want to take risk in the investment go to
insurance sector. It also gives income tax benefits to the peoples.
Insurance company are now launching ULIP plan and gives chance to
the investor to choose their investment pattern according to their fund
investment table(this table is included in the product information of the
product of HDFC Standard life). This fund investment tells us that how
much the investor want to take risk. Generally in the ULIP plan, the
thesis is that “The more you risk the more you have profit.”


Client: HDFC Standard Life Insurance

Brand: HDFC Standard Life Insurance (corporate)
Agency: Leo Burnett
Medium: Television

HDFC Standard Life’s new campaign, featuring Rajasthan Royals players - Shane Warne, Yusuf
Pathan, Munaf Patel, Kamran Khan, and Swapnil Asnodkar - promotes and propagates ‘Self
Respect’ via its ‘Sar utha ke jiyo’ proposition’. The campaign captures the essence of self belief,
pride, and confidence through a journey of the life of these players and depicts how these players
have been able to achieve success despite all odds.

The Brief:
Sanjay Tripathy, Executive Vice President and Head - Marketing, HDFC Standard Life,
explained, “Our association with Rajasthan Royals is aimed at bringing to the fore our common
values – self respect or living life with head held high. The campaign is a natural outcome of our
effort in propagating the values of self pride, confidence, and self belief.”

Commenting on the campaign, Rupesh Kashyap, Creative Director, Leo Burnett, said, “When we
started working on this brief, we had not one or two challenges, but almost four challenges. First
challenge was to bring out a personal story or experience about the cricketers, which they knew
it better than anybody. Second challenge was to make them feel comfortable, because they were
going to share their personal story with the world for the first time. Third was to shoot five
individual films within five hours. And the fourth challenge was to make them act. Wow! We did
it and how.”

The Execution:

The primary task for the communication was to extend the brand philosophy of self respect and
pride (‘Sar utha ke jiyo’) to cricket. The idea came from the observation that some determined
individuals overcome all odds to achieve success. Where others see adversity and despair, they
see a challenge and hope. They strive and they struggle to reach their chosen goal, and thus,
‘earn’ their pride. Drawing inspiration from such extraordinary people, HDFC Standard Life
exhorts us to ‘Play with pride and live with pride’ (‘Sar utha ke Khelo, Sar utha ke jiyo).

Final Product:

The campaign captures the essence of self belief, pride, and confidence through a journey of the
life of these players and depicts how these players have been able to achieve success despite all
odds. The video blends the common values (to both HDFC Standard Life and Rajasthan Royals)
– self respect – with each of the success stories of these players.

HDFC Standard Life’s new campaign takes slice of life instances where the players have strived
against all odds to succeed in their passion to play cricket. Each of them has overcome all
hurdles and challenges that life has thrown at them, but they never gave up hope. They have
always believed in themselves and their ability and arrive at this point of their lives without
depending on anybody else – a true moment of pride. The HDFC Standard Life communication
captures these moments in the players’ lives and salutes this spirit through this campaign.

The project was an attempt to explore the customer perception of HDFCSL” in Cuttack. The
project was started on 14th April, after knowing all the relevant information about the company
insurance product and policies and its competitor’s insurance products in accordance with the
prescribed schedule mentioned by management of HDFCSL. The project started in Cuttack,
Bhubaneswar and Bhawanipatna region covering the local market. In this process I met 60
persons to collect information about HDFCSL. I collected information for the company by
questionnaire method I met 50 persons to recruit them as a financial consultant. I have tried to
recruit FC by meeting them personally. During my work I found the perception of the people
about insurance, what they desire from it, and if they will work as financial consultant than what
they want from the organization.

During the summer training I have done my work through telephone calls, questionnaire, and
contacting persons by going to their home. In the entire work I have contacted person who is a
student, person who is working in the organization and visited different colleges. I found that
most of person can join insurance company for saving taxes, unlimited earning, life time earning
with little effort, which will give him back support as a HEAD of the family in the diverse
situation. This project will help to understand the current market scenario and marketing in stiff
competition. Being a student of management I can draw the relevant conclusion from the market
survey and give the appropriate suggestion to the organization. The company can take decision
according to the suggestions and it will provide better experience to the students for their bright
carrier. My project will provide help in these matters which are thus:-

Analyze the people perception about HDFCSL.

 To enhance the distribution channel in the selling of insurance


 To find out the competitive edge of the company over the



HDFC stands for Housing Development Finance Corporation It was

incorporated in 1977 as a public limited company with the
specialization in provision of housing finance to individuals’
cooperative societies and the corporate sector. One significant matter
about the HDFC is that it is first private sector retail housing finance
company and it is listed on both BSE and NSE.

Standard life insurance was founded in 1825. Standard life was

reincorporated as a mutual assurance company in 1925. It’s largest
mutual life insurance company in Europe. For the joint venture between
HDFC and SLIC, the discussion commenced in January 1995 and the
agreement signed in October 1995. Further joint venture agreement
renewed in October 1998. In January 2000 the life insurance project
team established in Mumbai. At last the company officially incorporated
in 14th August 2000. It is the matter of great happiness for HDFCSLIC
is that it is the first private sector life insurance company to be granted a
certificate of registration in 23rd October, 2000. Today 75%
shareholding in the hand of HDFC and Standard life has 25%
shareholding in this joint venture.


When we talk about company profile then HDFC standard life insurance company is targeting
insurance sector. It is launching various type of insurance plan and product which is enticing
people to buy its plan. As a insurance company it focus mainly in selling its products and
recruitment of financial consultant and the whole company based on it because the main aim of
company is to get business and sell lots of policies and this work is done by financial consultant.

HDFC Standard Life Vision and Values

Vision of HDFCSL

The most successful and admired life insurance company, which mean that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set the standards in
the industry. In short, “The most obvious choice for all” For retention in the market and highest
market share; we need trust of our customer. The customer should trust on our policies, services,
employees and they should be friendly with us. It wants to live in the eye and heart of the
customer. It wants to give them the easiest deal so that they can understand the terms and
policies. As we know that profit is the main aim of any business but it think not only about his
profit but also profit of the customer. It wants to be the choice of all people on the basis of trust
of customer, delivering high value to the customer, and deliver of best value of the money.
Value that will be observed while we work with HDFCSL.

1. Integrity

HDFCSL believes in honest and trustfulness in every action. Transparency in dealing with
customers. It is stick to principles irrespective of outcome. When we work in HDFCSL then we
observed that its rules and activity of every person in the organization is just and fair to
everyone. Integrity is the bedrock on which the company and the expectations of the customers
and employees are built. Integrity gives inner feeling to both customer and the employees to
work with it. It establishes the credibility of the person defines the character and empowers one
to do justice to the job. It enables confidence and trust, achieving transparency and laying a
strong foundation for a binding relationship. It guides principle for all walks of life.

2. Innovation

It is the process of building a store house of treasures through experiences. Lots of product is
going to be launched by the competitors. So it is very important to look every product and
process through fresh eyes every day. It is the significant part of the business that attracts
customer. Innovation is essential to exceed customer expectation and maximize customer
retention because it is the sector of investment so you need to fulfill the customer expectation
which help you to retain customer. Innovation helps to achieve competitive advantage. It
promotes growth and upgrade standards in the industry. It fosters creativity amongst employees
and partners. It opens a world of new possibilities because it brings new concept which helps to
entice the customer.

3. Customer centric

Customer becomes the main properties of any organization. Whatever work done by the
organization runs around the expectations of the customer. Customer becomes centre point of the
organization and the main focus of the organization becomes to understand his expectations by
keeping him as the Centre point. It gives more focus on customer activity and saying. It tries to
understand customer needs and deliver solutions. As we know that the market is changed. Lots
of competitors is here who search chance to increase their market share and entice your customer
so customer interest become always supreme.

4. People Care

Genuinely try to understand those people who are working with HDFCSL. It guides their
development through training and support. It helps them to develop their requisite their skills so
that they can reach their true potential. It tries to know them on a personal front because it works
as a performance appraisal. It try to create an environment of trust and openness so that all
people who are working here behave friendly and helps to each other because team work is most
important for getting success and give respect for the time of others. People are the most
valuable assets of the company so it tries to motivate individual to give his/her best. It wants to
establish a valuable relationship with them to create a joyful working environment. The most
important thing is that it tries to provide job satisfaction for their people.

5. Team work “One for all and all for one”

Here whole team takes the ownership of the deliverables. It consults all involved in the work and
tries to understand their opinion and then arrive at a common objective. There is a cooperation
and support across departmental boundaries. It identifies strengths and weaknesses accordingly
allocate responsibility to achieve common objectives. Team work helps everyone to achieve
more. It adds joy at work place which adds interest in the work and new stamina in the work. It
generates synergy and provides a focused approach. When an idea or activity performed in a
group, it has greater acceptability. “Team work proves one for all and all for one”.

6. Joy and simplicity

It believes in joy and simplicity so that people in the organization will be more dedicated towards
work and they will give more business to the organization. Work with joy and simplicity brings
creativity and new imagination which also brings new innovative ideas that promote competitive
advantage to the organization.


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 company in the market, rather it is a combination of several
things like-

 Customer service of the highest order

 Value for money for customers

 Professionalism in carrying out business

 Innovative products to cater to different needs of different customers

 Use of technology to improve service standards

 Increasing market share

Mile stone of HDFCSL 2008

Received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, the
applications for its financial consultants, providing centralized control over a vast geographical
spread for key business units such as inventory, training, licensing, etc.

Received the 2008 CIO Bold 100 Award for its mobile workforce portal and the Special 2008
CIO Security Award for a secure computing environment, including identity management

Mr. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award.

HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-operative
banks in the rural areas.

Continued to increase its focus on quality service, by putting in place a robust mechanism to
capture ‘Voice of the Customer’ through service audits across its offices. This was
complemented by use of technology that enabled capture of all interactions with customers
across all touch points.


Sar Utha Ke Jiyo was honoured as ‘Among India’s 60 Glorious Advertising Moments. The
advertisements of the company were ranked 6th amongst ‘The 10 most effective Advertisements’
in September 2007.

Received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking
implementation of an enterprise-wide workflow system. In addition the company also bagged the
EMC storage award for being the most innovative users of storage and storage management.

Pension Plan Tops Mint’s Survey of Best TV Ads.

HDFC Standard Life’s advertising created high awareness for the brand and bagged 2 silver and
1 bronze awards at the ADFEST 2007 National Awards organized by the Advertising Agencies
Association of India (AAAI). The 3 awards are the highest won by any single brand in the
financial services business (including banking, mutual fund, insurance and other financial

Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to
a study conducted by the Brand Equity – Economic Times, the leading business publication of


Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to
a study conducted by the Brand Equity – Economic Times, the leading business publication of

The year witnessed the launch of ‘My Account’, a web-based facility with various policy
servicing options such as switch, premium redirection to be executed by clients, without recourse
to visiting a branch

As against a regulatory requirement of writing 18% of all policies in rural areas, the company
issued over 1, 21,000 policies accounting for more than 23% of all policies issued during the
The company had been awarded the “Intelligent Enterprise” Award by the Express Computer
Magazine – Part of the Indian Express Group, for investing in workflow and imaging technology
which helped in increasing volumes without affecting service standards.

Was selected as the '4Ps Power Brand 2006', for being one of India's Top 25 'Most Innovative
Companies' in an exclusive survey conducted by ICMR (Indian Council of Market Research) and
4Ps - Business and Marketing (a Business and Marketing magazine published by Planman


The business of insurance is related to the protection of the economic values of assets. Every
asset has a value. The asset would have been created through the efforts of the owner. The asset
is valuable to the owner, because he expects to get some benefit may be an income or in some
other form. It is a benefit because it meets some of his needs. The benefit may be an income or in
some other form. In the case of a factory or a cow, the product generated by it is sold and income
is generated. In the case of a motor car, it provides comfort and convenience in transportation.
There is no direct income. Both are assets and provide benefits. Every asset is expected to last
for a certain period of time during which it will period of time during which it will provide the
benefits. After that, the benefit may not be available. There is a life-time for a machine in a
factory or a cow or a motor car. None of them will last forever. The owner is aware of this and
he can so manage his affairs that by the end of that period or lifetime, a substitute is made
available. Thus, he makes sure that the benefit is not lost. However, the asset may get lost earlier.
An accident or some other unfortunate event may destroy it or make it incapable of giving the
benefits. We can classify insurance in these terms:-

 It is a system, by which the losses suffered by a few are spread over many, exposed to
similar risks.
 Insurance is a protection against financial loss arising on the happening of an unexpected

It is essential that:

 The calamity is either natural or unexpected

 The insured person does not gain out of this arrangement
We all know that assets are insured, because they are likely to be destroyed or made
nonfunctional before the expected life time, through accident occurrences. Such possible
occurrences are called perils. Perils are the events. Risks are the consequential losses or
damages. The risk to an owner of a building may be a few lakhs or a few crores of rupees,
depending on the cost of building, the contents in it and the extent of damage. The risk only
means that there is a possibility of loss or damage. Insurance is done against the possibility that
the damage may happen. There has to be an uncertainty about the risk. The word “possibility”
implies uncertainty. Insurance is relevant only if there are uncertainties. Insurance does not
protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through
insurance. The risk can sometimes be avoided, through better safety and damage control
measures. It only tries to reduce the impact of the risk on the owner of the asset and those who
depend on that asset. They are the ones who benefit from the asset and therefore, would lose,
when the asset is damaged. Insurance compensates for the losses- and that too, not fully. In
conclusion we can say that the scope of insurance is very broad and specific because it reduces
the losses and risk of owner of the assets due to perils. It also gives supports to the person in the
period of adverse situation. It insured economic consequences. When a person saves, the amount
of funds available at any time is equal to the amount of money set aside in past, plus interest.
Insurance has no substitute and one more thing about the insurance is that this is not similar to a
hire purchase scheme. In the event of death, the balance installments are not excused. They have
to be paid by the surviving family. There is a tax benefits, both in income tax and in capital
gains. Marketability and liquidity are better. Life insurance is not only the best possible way for
family protection there is no other way. The term of life is hard but the terms of insurance are


When we talk about objective of the insurance sector we can divide it into three categories which
are thus.

 Broad Increased coverage of the population

 Specific Customer has a wider choice & range of products Service standards to customer

 Economic Savings mobilization

In this objective part the first part deals with its market share because it deals with all people who
live in India and it has a broad market potential. So the main motto is to increase and entice more
and more people for insurance. In the second part it deals with innovative plans and schemes for
the wider choice of people and different range of products of its competitors. It tries to serve its
customer with significant way. HDFCSL invest the investment in the share market through the
unit link plans and get and give significant return from the markets and satisfy their customer.

Insurance history



Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurers:

 Life Insurance Corporation of India (LIC)

General Insurers:

 General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National
 Reinsurer)

GIC had four subsidary companies, namely ( with effect from Dec'2000, these subsidaries have
been de-linked from the parent company and made as independent insurance companies.

 The Oriental Insurance Company Limited

 The New India Assurance Company Limited
 National Insurance Company Limited
 United India Insurance Company Limited.

Yr: 2000-2001 : ( From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had 16 new entrants, namely:

Life Insurers:
S.No. Registration Date of Name of the Company
Number Reg.
1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Metlife India Insurance Company Ltd.

General Insurers :

S.No. Registration Date of Name of the Company

Number Registration
1 102 23.10.2000 Royal Sundaram Alliance Insurance Company
2 103 23.10.2000 Reliance General Insurance Company Limited.

3 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd

4 108 22.01.2001 TATA AIG General Insurance Company Ltd.
5 113 02.05.2001 Bajaj Allianz General Insurance Company
6 115 03.08.2001 ICICI Lombard General Insurance Company

Yr: 2001-2002 : ( From 1st Jan 2001 to Dec. 2002)

Insurance Industry in this year, so far has 5new entrants; namely

Life Insurers:
S.No. Registration Date of Name of the Company
Number Reg.
1 121 03.01.2002 Reliance Life Insurance Company Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India Ltd.

General Insurers :

S.No. Registration Date of Name of the Company

Number Registration
1 123 15.07.2002 Cholamandalam General Insurance Company
2. 124 27.08.2002 Export Credit Guarantee Corporation Ltd.

3. 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.

Yr: 2003-2004 : ( From 1st Jan 2003 till Date)

Insurance Industry in this year, so far has 1new entrants; namely

Life Insurers:

S.No. Registration Date of Name of the Company

Number Reg.
1 127 06.02.2004 Sahara India Insurance Company Ltd.

Yr: 2004-2005 :

Insurance Industry in this year, so far has 1new entrants; namely

Life Insurers:
S.No. Registration Date of Name of the Company
Number Reg.
1 128 17.11.2005 Shriram Life Insurance Company Ltd.

Yr: 2006-2007 :

Insurance Industry in this year, had 1new entrants; namely

Life Insurers:

S.No. Registration Date of Name of the Company

Number Reg.
1 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.

Yr: 2007-2008 :

Insurance Industry in this year, had 5 new entrants; namely

Life Insurers:

S.No. Registration Date of Name of the Company

Number Reg.
1 133 04.09.2007 Future Generali India Life Insurance Company Limited

2 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

General Insurers:

3 131 03-08- Apollo Munich Health Insurance Company Limited

4 132 04-09- Future Generali India Insurance Company Limited
5 134 16-11- Universal Sompo General Insurance Company Ltd.

Yr: 2008-2009 :

Insurance Industry in this year, so far has 3 new entrants in Life and 1 new entry in General ;


Life Insurers:

S.No. Registration Date of Name of the Company

Number Reg.
1 136 08.05.2008 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

2 138 27.06.2008 Aegon Religare Life Insurance Company Ltd.

3 140 27.06.2008 DLF Pramerica Life Insurance Company Ltd.

4 142 Star Union Dai-ichi Life Insurance Co. Ltd.,

5 143 05.11.2009 IndiaFirst Life Insurance Company Ltd.

General Insurers:

S.No. Registration Date of Name of the Company

Number Reg.
1 137 8.05.2008 Shriram General Insurance Company Limited,

2 139 27.06.2008 Bharti Axa General Insurance Company Ltd.

3 141 15.12.2008 Raheja QBE General Insurance Co. Ltd


Insurance business is divided into four classes :

1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance.

Life Insurers transact life insurance business; General Insurers transact the rest.

No composites are permitted as per law.

LEGISLATION (as on 1.4.2000):

Insurance is a federal subject in India. The primary legislation that deals with insurance business

in India is:

Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.

INSURANCE PRODUCTS (as on 1.4.2000) (for latest information get in touch with the current

insurers – website information of insurers is provided at the web page for insurers ):

Life Insurance:

Popular Products: Endowment Assurance (Participating) and Money Back (Participating). More

than 80% of the life insurance business is from these products.

General Insurance:

Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is

Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance

products (please visit website of GIC for details )


New products have been launched by life insurers. These include linked-products. For details,

please visit the websites of life insurers.


About the insurance industry, the following documents may be helpful:

Malhotra Committee Report (The Report of the Committee on Reforms in the Insurance Sector);

IRDA's First Annual Report - 2001


Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress

customer grievances in respect of insurance contracts on personal lines where the insured amount

is less than Rs. 20 lakhs, in accordance with the Ombudsman Scheme. Addresses can be obtained

from the offices of LIC and other insurers.


HDFC Standard Life offers a bouquet of insurance solutions to meet every need. The company
caters to both, individuals as well as to companies looking to provide benefits to their employees.

For individuals, the company has a range of protection, investment, pension and savings plans
that assist and nurture dreams apart from providing protection. The customers can choose from a
range of products to suit their life-stage and needs.
For organizations they have a host of customized solutions that range from Group Term
Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans
apart from providing long term value to the employees help in enhancing goodwill of the

The products of the company are categorized into various sections which are as follows:






For Individuals, HDFC Standard Life has a range of protection, investment, pension and savings
plans that assist and nurture dreams apart from providing protection. Customer can choose from
a range of products to suit his life-stage and needs.

For Organizations, HDFC Standard Life has a host of customized solutions that range from
Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These
affordable plans apart from providing long term value to the employees help in enhancing
goodwill of the company.

Individual Products:

HDFC Children's Plan,

HDFC Endowment Assurance Plan,

HDFC Loan Cover Term Assurance Plan,

HDFC Money Back Plan,

HDFC Personal Pension Plan,

HDFC Single Premium Whole Of Life Plan,

HDFC Term Assurance Plan,

HDFC Unit Linked Endowment,

HDFC Unit Linked Endowment Plus,

HDFC Unit Linked Pension,

HDFC Unit Linked Pension Plus,

HDFC Unit Linked Young Star,

HDFC Unit Linked Young Star Plus

At HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in
mind, varied range of products that customer can choose from to suit all needs. These will help
secure customer future as well as the future of family.

Protection Plans:

Customer can protect his family against the loss of his income or the burden of a loan in the
event of his unfortunate demise, disability or sickness. These plans offer valuable peace of mind
at a small price.

HDFC Standard Life Protection range includes Term Assurance Plan & Loan Cover Term
Assurance Plan.

Investment Plans:

HDFC Standard Life Single Premium Whole of Life plan is well suited to meet long term
investment needs. HDFC Standard Life provides with attractive long term returns through
regular bonuses.

Pension Plans:

HDFC Standard Life Pension Plans help secure financial independence even after retirement.
Pension range includes Personal Pension Plan, Unit Linked Pension, and Unit Linked Pension
Plus Savings Plans.
Savings Plans:

HDFC Standard Life Savings Plans offer flexible options to build savings for future needs such
as buying a dream home or fulfilling children’s immediate and future needs.

Group Products:

Group Term Insurance,

Group Variable Term Insurance,

Group Unit Linked Plan,

Gratuity Group Unit Linked Plan,

Superannuation Group Unit Linked Plan ,

Leave Encashment

HDFC offers products as per the life stages of the customers and their respective needs.

Your insurance need will change as your life does, from starting to work to enjoying your golden
years and all the stages in between. Each one of these stages may pose a different insurance
need/cover for you. In this section, we have drawn up the basic life stages and help you analyze
various insurance needs accordingly.


An important stage where one lays down the foundation of a successful life ahead. Take
advantage of the time and power of compounding to ensure that you build up your dreams. Start
saving early


Save for Home & Wedding

Tax Planning

Save for Golden Years


Marriage brings about a significant change. New dreams and new opportunities also bring in
additional responsibilities. While both of you look forward to a happy and secure life, it is
equally important to ensure that eventualities don’t come in the way of shaping your dreams.

Planning for home / securing your home loan liability.

Save for vacation.

Save for your first child.


Once you have children, your need for life insurance is even more. You need to protect your
family from an untoward incident. Ensure your protection umbrella takes into account the future
cost of securing your child’s dream. You will want life to go on for your loved ones, and having
enough life insurance is a way to help ensure that.


Provide for children's education

Safeguarding family against loan liabilities

Savings for post-retirement


While you are busy climbing the ladder of success today, it is important for you to take time and
plan for your life after retirement. Having an early start for retirement planning can make a
significant difference to your savings. Think about your golden years even before you have
reached them. The key is to think ahead and plan well using your time and money.


Provide for regular income post retirement

Immediate Tax benefits

Lead a secure, independent and comfortable life style in your retirement years.


HDFC is India’s 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.36000Cr.

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

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
HDFC Standard Life Insurance is the first private life insurance company to be granted a license

Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s number 1 personal
finance magazine

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

Has the highest brand recall, close to 80% (Source: AC Neilson ORG MARG, April 2005)

Has one of the widest branch networks with offices in over 100 cities servicing over 440 towns




HDFC Mutual Fund

HDFC Standard Life Insurance Company


HDFC Chubb General Insurance Company Ltd.

Intelnet Global Services Ltd.

Other Companies Co-Promoted by HDFC

Financial Information with regard to Subsidiary Companies


As we know that lots of insurance plan are playing in the market of different companies.
HDCFSL has launched various insurance plans which based on unit link plan. It invests the
investment of his consumer in bank deposits, Government securities and Bonds, and Equity. The
percentage of these investments in these plans depends upon the consumer whether he wants to
take more risk and more return or less risk or less return. It has launched several insurance plans
which are thus given below:-

1. Unit link pension plan

2. Unit linked pension plus

3. Unit linked enhanced life protection II

4. Unit linked young star plus II

5. Endowment assurance plan

6. Children plan

7. Money back plan

8. Single premium whole of life plan

9. Personal pension plan

10. Saving assurance plan

11. Assure plan

1. Unit linked Young Star plus II

As a parent, your priority is your children’s future and being able to meet their dreams and
aspiration. Today, we need more money for providing a good education, establishing a
professional career or even a modest wedding because these are expensive. Costs are increasing
fast. Just imagine how much we need when our children take these important steps in life when

institute like IIM is increasing their fees for education by leaps and bound. This plan ensures us a
bright future for your children. It makes your child able to lead a life of respect and dignity with
a secured financial future. Benefits of this plan The HDFC unit linked Young star Plus II 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.
 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.
 Flexible benefit payment preferences- Double and Triple Benefit.
 Four steps to your own plan.

Step1) IN this policy you will continue to pay each year of the policy. You can pay monthly,
half-yearly or annually. The minimum regular premium is Rs. 15,000 per year for annual and
half yearly policies. For monthly mode, the minimum regular premium is Rs 1500 per month.

Step2) we can choose any amount of sum Assured with, a minimum of 5 times your chosen
annul regular premium and a maximum of 40 times your chosen annul regular premium.

Step3) it offers a range of valuable protection options to secure the future for whole family. In
this policy the customer can choose any one of both which life option (death Benefit) is and life
and health option (death benefit + critical illness benefit). It offers flexible benefit payment

2. Unit Linked Enhanced Life Protection II

The massage of this policy is “invest in financial security and self respect for you and your
family”. In this policy, the investment risk in investment portfolio is borne by the policyholder.
In our life I try to give the very best to our family and there is no reason why they should not get
the very best in the future too. This plan gives financially independent, even if you are not

Benefits of this plan

The HDFC Unit Linked Enhanced Life Protection II gives

1) Valuable protection to your family in case you are not around

2) Increasing insurance cover every year.

3) An outstanding investment opportunity by providing a choice of thoroughly researched and

select investment. .

4) Flexible premium payment options.

Steps regarding this plan

Step1) Choose your regular premium: - this is the premium you will continue to pay each year of
the policy. You can pay monthly, half-yearly or annually. The minimum regular premium is
Rs.15, 000 per year or annual and half yearly policies. For monthly mode, the minimum regular
premium is Rs. 1500 per month.

Step2) Choose your level of protection: - You can choose any amount of Sum Assured with a. a
minimum of term of your policy/2 times your chosen annul regular premium. And b. a maximum
of 20 times your chosen annual regular premium. In this plan in case of your fortunate demise
during the policy term, we will pay the greater of your current Sum assured (less any
withdrawals you had made in the two years before your claim) and your total fund value to your

3. Unit Linked Pension Plus

The massage of this plan is living a life of dignity and self respect. It is designed to provide a
retirement income for life with the freedom to maximize your investment returns. Stride into
your golden years of retirement with dignity and pride.

Benefits of HDFC Unit Linked Pension Plus

This plan is giving you some benefits which will help you in the odd situation. The benefits of
this plan are thus:-

a) An outstanding investment opportunity by providing a choice of thoroughly researched and

selected investments.

b) Regular loyalty units to boost your fund value every year

c) A post retirement income for life

d) Flexibility to plan your premiums as per your preference.

Steps of your own plan

Step1) Choose your retirement age: - In this plan firstly you have to choose any age you wish to
retire at (vesting age), between 50 years and 75 years.

Step2) this is the premium you will continue to pay each year to the policy. The minimum
regular premium is Rs 10,000 per year. You can pay monthly (using standing instructions or ecs
mandate), quarterly, half yearly or annually. You may also choose to pay adhoc single premium
Top-up or additional regular premiums depending on the policy type you have chosen and your

Unit Linked Pension. The masses of Unit linked Pension is live a life of dignity and self respect.
Today we are busy climbing the ladder of success and realizing your dreams. Today, time is with
you. Just take a moment and think. It will make you able to continue at the same pace. The
HDFC Unit Linked Pension is an insurance policy that is designed to provide a retirement
income for life with the freedom to maximize your investment returns. Stride into your golden
years of retirement with dignity and pride.

Benefits of this plan

The HDFC unit linked pension gives you

a) An outstanding investment opportunity by providing a choice of thoroughly researched and

selected investments.
b) It gives a post retirement income for life

c) Flexibility to plan your retirement date and

d) Freedom to invest premiums as per your preference

4. Unit Linked Endowment plus II

Its massage is to invest in financial security and self respect for you and your family in this
policy, the investment risk in investment portfolio is borne by the policy holder.

Benefits of this product

The HDFC unit linked endowment plus II gives

a) A valuable protection to your family in case you are not around.

b) An outstanding investment opportunity by providing a choice of the thoroughly Researched

and selected investment.

c) Flexible additional benefit options such as critical illness cover.

Simple steps for this product

Step1) choose your regular premium: - this is the premium you will continue to pay each year of
the policy. You can pay monthly, half-yearly or annually. The minimum regular premium is Rs
15,000 per year for annual and half yearly policies. For monthly mode, the minimum regular
premium is Rs.1, 500 per month. You may also choose to pay adhoc single premium top-up or
additional regular premiums depending on your convenience.

Step2) You can choose any amount of sum Assured with:

a minimum of (the term of your policy/2) times your chosen annual regular premium.
A maximum of 40 times your chosen annual regular premium.

Step3) Choose additional plan benefits: - it offer a range of valuable protection options to secure
the future for your family

Life option - Death Benefit

Extra Life option - death benefit + accidental Death benefit

Life and health option - Death benefit + critical illness benefit

Extra life and health option - Death benefit + critical illness benefit + Accidental Death benefit.

Benefit types Summary

Death Benefit

We will pay the greater of your sum assured (less any withdrawals you have made in the two
year before your claim) and your total fund value to your family. The policy will terminate.

Critical illness benefit

We will pay the greater of your sum assured (less any withdrawals you have made in the two
year before your claim) and your total fund value to your family. The policy will terminate.

Accidental Death Benefit.

In addition to the death benefit, we will pay a further sum assured to your family. The policy will


The most significant part of the Unit Linked Plan is that investor can choose the mode of
investment. In this plan the investment risk in your chosen investment portfolio is borne by the
investor. This means that the premiums you pay in this plan are subject to investment risks
associated with the capital markets. The unit prices of the funds may go up or down, reflecting
changes in the capital markets. So to balance investor’s level of risk and return, making the right
investment choice is very important and you are responsible for the choices you make.

It has 7 funds that give investor:-

a) The potential for higher but more variable returns over the term of your policy; or

b) The more stable returns with lower long-term potential.

Your investment will buy units in any of the following 7 funds designed to meet your risk

Details of funds are given below:-

Funds Asset class Risk and

return rating
Money Bank Govt. security equity
market+ deposit+

+ ++

Fund composition

Liquid fund 100% 100% ---------- ------------- Low

Stable 0-30% 70-100% 70-100% ------------- Low

managed fund

Secure 0-5% 0-20% 75-100% ------------ Low-

managed fund moderate

Defensive 0-5% 0-15% 50-85% 15-30% High

managed fund
Balanced 0-5% 0-15% 20-70% 30-60% Very high
managed fund

Equity 0-5% 0-10% 0-40% 60-100% Very high

managed fund

Growth fund 0-5% -------- ---------- 95-100% Very high

+ note on the funds shows will manage the investment in each fund so that the proportion of each
Asset class is always with the ranges. + + shows Money market instruments. It includes liquid
Mutual Funds, commercial papers, commercial bills, treasury bills, government securities having
an unexpired maturity up to one year. Bank deposits means deposits issued by any primary
dealer or non Banking and banking financial company approved by the reserve by the reserve
bank of India or any other public financial institutions or by Housing Finance Companies
approved by the National Housing Bank. The past performance of any of the funds is not
necessarily an indication of future performance. Unit prices can go up and down. No fund offers
an assured return. The names of the fund it offer under this plan do not, in any way, indicate the
quality of the plan, its future prospects or returns.

India's best Ulips (Sunil Dhawan, Outlook Money) January 03, 2008

We have toyed with the idea for a long time. Should we rank the unit-linked insurance plans
(Ulips) in the market? The idea is exciting simply because it has never been done in India before.
The idea is good because it allows an investor a handle with which to hold the product. Also, the
idea is very daunting because comparing insurance policies is like trying to unravel a noodle
soup. The more you stir, the more complicated it looks After discussing with the regulator, some
industry leaders and those close to the insurance sector, Outlook Money decided to bite the bullet
and get on with the ranking. This is where we realized what an overwhelming task we had taken
on. Just comparing the return figure, as given by net asset value data, would be incorrect since a
financial product is a function of cost and return. The minute we bring in costs, comparisons
became almost impossible to carry out. Unlike the mutual fund product that has a very simple
cost structure, Ulips carry a greater number of costs (administration and mortality), in addition to
the others.

To cut through the confusion and yet be relevant to you, we took illustrations from all 14 life
insurance companies for their Ulips for ages 30 and 45. We assumed that a 30-year-old was
taking a 20-year policy for an SA of Rs 12.5 lakh, paying an annual premium of Rs 50,000. And
a 45-yearold was taking a 10-year policy for an SA of Rs 7.5 lakh with the same premium (see
How We Did It). Premiums are paid throughout the term. We also assumed that only the growth,
or the fund with up to 100 per cent equity allocation, is chosen. Left with only nine companies,
we looked at Type-I and Type-II policies. A Type-I policy just gives the higher of the sum
assured or the fund value, making the policy buyer extremely vulnerable to a small corpus in
case of an untimely death in the early part of the plan. A Type-II policy gives both the sum
assured and the fund value, and sure, it costs more too.


The winner in the Type-I category is Tata AIG Life's Invest Assure II, which has scored
primarily because its one-year return, at 72 per cent, was way above the benchmark return of 53
per cent of the BSE Sensex. This despite the fact that it has a fund management charge of 1.75
per cent, more than double the 0.8 per cent that HDFC Standard Life charges. In fact, HDFC
Standard Life has done very well on the cost parameter. The insurer is clearly the lowest cost one
in our examples, but has lost out due to underperformance over the time period. At returns of
42.7 per cent, HDFC Standard Life has underperformed the benchmark by about 10 percentage
points. In fact, Tata and Bharti have outperformed the index by 10 percentage points or more.
Four companies were unable to beat the benchmark over a one-year period. In Type-II policies,
there is much less competition, with just six companies in the fray. Kotak Life's Platinum
Advantage is the winner and has a nice mix of lower costs and decent returns. It has consistently
outperformed the benchmark.

Early exit options-

The Ulip product works over the long term. The earlier the exit, the worse off is the investor
since he ends up redeeming a high-front-load product and is then encouraged to move into
another higher cost product at that stage. An early exit also takes away the benefit of
compounding from him.

An early exit option in a unit-linked plan shows how the product is structured. We found many
products that clearly encouraged product churn by giving too many zero cost options to get out
of the policy after the mandatory holding period was over. There are others, like the plans from
MetLife, which encourage a longer holding term.

Creeping costs-

Since the investors are now more aware than before and have begun to ask for costs, some
companies have found a way to answer that without disclosing too much. People are now asking
how much of the premium will go to work. There are plans that are able to say 92 per cent will
be invested, that is, will have a front load of just 8 per cent. What they do not say is the much
higher policy administration cost that is tucked away inside (adjusted from the fund value).
While most insurance companies charge an annual fee of about Rs 600 as administration costs,
that stay fixed over time, there are plans that charge this amount, but it grows by as much as 5
per cent a year over time. There are others that charge a multiple of this amount and that too

IRDA (Insurance Regulatory and Development Authority)

The Government of India has enacted the Right to Information Act, 2005 which has come into
effect from October 13, 2005. The Right to Information under this Act is meant to give to the
citizens of India access to information under control of public authorities to promote
transparency and accountability in these organizations. The Act, under Sections 8 and 9, provides
for certain categories of information to be exempt from disclosure. The Insurance Regulatory and
Development Authority (IRDA) is a public authority as defined in the Right to Information Act,
2005. As such, the Insurance Regulatory and Development Authority are obliged to provide
information to members of public in accordance with the provisions of the said Act.

Access to the Information held by IRDA

The right to information includes access to the information which is held by or under the control
of any public authority and includes the right to inspect the work, document, records, taking
notes, extracts or certified copies of documents / records and certified samples of the materials
and obtaining information which is also stored in electronic form.


The IRDA maintains an active website. The site is updated regularly and all the information
released by the IRDA is also simultaneously made available on the website. The information
published in public domain includes the following:

1. Acts/Regulations

2. Information relating to Insurers/Reinsures, Agents Training Institutes, Appointed Actuaries.

3. Information relating to Surveyors, Third Party Administrators, Insurance Brokers, Corporate


4. Information relating to Insurance Councils, Insurance Ombudsmen

5. Annual Report/IRDA Journal

6. Press Releases.

Complaints against Insurance Companies

IRDA has provided for a separate channel for lodging complaints against deficiency of services
rendered by Insurance Companies. If you have a complaint/grievance against an insurance
company for poor quality of service rendered by any of its offices/branches, please approach the
Nodal Officer of the Insurance Company concerned. In case you are not satisfied with the
Insurance Company’s response you may also file a complaint with the Insurance Ombudsman in
your State. The Insurance Ombudsman is an independent office to provide speedy and cost
effective resolution of grievances to the customers. For more details on Insurance Ombudsman
Scheme and their contact numbers, please visit.

Complaints from Policyholders

Policyholders who have complaints against insurers are required to first approach the
Grievance/Customer Complaints Cell of the concerned insurer. If they do not receive a response
from insurer(s) within a reasonable period of time or are dissatisfied with the response of the
company, they may approach the Grievance Cell of the IRDA.


The insurance Regulatory and Development Authority, IRDA for short, has laid down that those
who wish to become insurance agents will be given licenses only after they complete a course of
study and pass an examination prescribed was to last 100 hours. The course, IC 33, was prepared
keeping in mind that requirement. In 2007, the period of compulsory study has been reduced to
50 hours.

Life Insurance Sector: Fact Sheet

India is emerging as one of the two of the largest markets in the world for life insurance
products, the other being China. In the case of India, the three key drivers of growth are a large
insurable population, a high savings rate, roughly at about 25 per cent and a low penetration, at a
mere 2.3 per cent. In the 11 months of fiscal year 2004-05, life insurance companies collected
premium worth Rs 172 billion and the market grew by a whopping 32.4 per cent during the year.
Of this, the public sector Life Insurance Corporation (LIC) had the lion's share of the market
with premium totaling Rs 134 billion. Private sector players recorded a spectacular growth of
129 per cent over the last year, compared to LIC's growth of 18 per cent. India's GDP growth
rate of 6 per cent per annum holds great potential for the sector. According to one estimate real
life premium are expected to grow at a compounded annual rate of 15 per cent over the next ten

How does India's life insurance market compare with China's? While India's market is currently
the fifth largest, China's is the third largest in Asia after Japan and Korea. Low penetration rate
of insurance products is common to India and China - at just about 2.3 per cent. In China, the
savings rate is at 35 per cent while for India it is a little lower at 25 per cent. A large part of the
growth of the life insurance market in China was driven by the conversion of bank deposits into
endowment products. Demographically, China's population is ageing faster than India's.
FDI in Insurance Sector

The government of India has increase the equity limit for foreign direct investment from the
current 26 per cent to 49 per cent in the insurance sector. Liberalizations of the FDI policy,
including the Budget proposals for raising the sect oral caps in insurance are one of the main
factors for the higher FDI inflows during the current year. In 2003-04 the total FDI inflows in the
country touched $3.4 billion. Indian insurance companies have been pushing for the FDI limit to
be raised. The current paid-up requirement of Rs 1 billion for general insurance and Rs 2 billion
for life insurance have become difficult targets to achieve for the companies. The companies feel
that injection of additional foreign equity would reduce their costs. The sector was liberalized for
private players towards the end of 1999. Currently, there are 14 insurance companies, including
the key public sector company Life Insurance Corporation, in the life insurance sector and 13
general insurance companies.

Key Players in the Indian Market

While the public sector LIC dominates the Indian life insurance market with nearly 80 per cent
of the market share. It has 248 branches, 115,000 employees and over 1 million agents. It has
also been improving internal processes and systems, upgrading skills of its agency force and
managers and developing innovative products. LIC sold 1.69 corers policies during the year
compared to 18 lakh policies sold by all the private players.

ICICI Prudential is the leader among the private players with a market share of 6.69 per cent
after its premium collection totaled Rs 11.54 billion. Bajaj Allianz with sales of Rs 4.9 billion
had a market share of 2.86 per cent. Birla Sun Life with sales of Rs 4.8 billion had a market
share of 2.81 per cent and SBI Life with premium collection of Rs 3.9 billion, a market share of
2.29Mper cent. With its combination of aggressive marketing through an agency force and the
use of the banking channel, ICICI has emerged as a key player. Initially, the company drove new
business by opening branches in new locations. The focus has now shifted to penetrating these
locations for increasing market share. The company is also trying to get higher penetration in the
High Net Worth segment. The company has seven bank assurance partners and this is the largest
contributor to non-agency business. It also has 15 key non-bank partners and 800 financial sales
consultants. As of September 2004, it had 90 branches in 60+ locations. It took the initiative in
launching non-traditional products such as life-stage products, retirement solutions and child
plans. It also focused on Unit Linked Plans (ULIPs) to target new consumer segments. It has a
presence in 15 states through partnership arrangements and as of 2003-04, it sold 64,764 policies
in rural areas.

HDFC Standard Life has established its branches in 110 locations and is targeting non-metro
towns. It is hoping to leverage its “pedigree/parentage” to gain more customer acceptance. As a
result, it is focusing on quality – not just volume growth. It has developed some innovative
products like the Loan Cover Term Assurance Plan which provides a lump sum in case of death
of the assured life during the term plan. Aimed at the growing segment of home loan takers, the
plan helps the family to repay the outstanding loan. Given that HDFC has a huge database of
home-loan customers; it can easily tap into this resource to acquire new business. The company
is leveraging its large customer database of home loan and banking clients to cross-sell insurance

Birla Sun Life

Birla Sun Life was the first to offer ULIPs in the Indian insurance market. And this has been the
primary driver of its growth over the last one year. The company has been investing in customer
education and feels that as a result customers don't view ULIPs as mutual funds but long term
insurance. As of 2004, the company had 33 branches, 10,274 agents, 79 corporate relationships
and 10 bank assurance partners.

Bajaj Allianz has been focusing on second tier towns and cities which are yet to witness the
entry of other life insurance players apart from LIC. It is using first mover advantage by opening
an office in the most prominent location in a non-metro town. It hires local people who are
trained. Its mantra is to develop only the indispensable infrastructure so that it can match the
pricing of LIC. Apart from that it claims that it is the only private player to provide policy
servicing at the branch level. Standard Chartered is currently its biggest partner followed by
Syndicate Bank and Centurion Bank. The biggest challenge that the company faces is the weak
infrastructure – particularly transport and communications – in the smaller cities. It is also facing
a challenge in terms of banking channels, particularly for customers who bank with cooperative
banks, where delays in clearing cheques are inevitable. Tied agencies comprise the biggest
channel (68%) of new business acquisitions for Bajaj Allianz. Banca insurance (27%) is the
other significant channel of growth for the company.
Product Preferences among Consumers

Pension policies are becoming popular as people prefer to opt for solutions that can offer them a
regular income after retirement rather than a lump sum on retirement. Maturable policies for a
bulk sum are being bought only for limited single use such as purchase of a house, children’s
higher education, marriage, etc. This consumer trend is likely to help companies that offer
pension schemes. Term policies are finding favor with youngsters: Term insurance policies are
also finding more and more takers among the younger generation of consumers. Because they
offer protection at extremely low costs.

It is assumed that life insurance is purchased only to avail of tax-breaks. But the fact remains that
while the tax paying population in the country is just about 20 million, there is a huge population
that has not been tapped. Only the urban salaried class who fall in the tax net has been targeted
for life insurance policies for tax-saving purposes. The other income-earning classes such as
businessmen, professionals, farmers, provide a great opportunity for life insurance marketers.
There is a need to tap these customer segments effectively. Currently all their disposable income
is going into purchase of consumer durables such as washing machines, TV, refrigerators and
mobile phones (as is evident from the fact that spending on savings/investment products has
declined from 14 per cent to 4 per cent in the past decade).

Mutual Funds (MF) have benefited the most during the last two years. Take the example of the
Systematic Investment Plans (SIP) of mutual funds. In just one quarter ICICI PRU MF sold
20,000 SIPs and it has the potential of selling about 100,000 new SIPs in a year. There are 33
Mutual Fund companies in the country and based on this trend one could say that the estimated
fund inflow in MFs through this route alone could touch the Rs 20 billion per month. Due to the
good performance of MF during the past 2 years, life insurance companies have lost out to
mutual funds.

Marketing strategy of HDFCSL

Marketing is process of analyzing the consumer need and serve the need of consumer which
satisfy the consumer and solve the consumer problem. In this sector the marketing is pay main
role in brand formation and policy awareness to the public. As we know that LIC is covering
more than 75% market share. So marketing helps in increasing the market share. Marketers have
to analyze the market share and find out the market. We can divide its marketing process in two

1) Marketing for Financial Consultant: - Work part-time, earn full-time is the punch line of its
marketing strategy. It says just work for 5 hours a week and earns more than Rs. 20,000 per
month. If you will be financial consultant of HDFCSL then you can have high earning potential,
zero investment, and you will not have pressure for work. You can work as whatever you make
your target or you can work as a part-time as per your convenience. There are certain facilities
for FC:-

Flexible work timings:-you can work whenever you like and from whenever you like. You can
work full time or part-time, depending on your convenience. It’s like no other job. However, the
time you invest will determine you success.

Zero investment: - There is no star-up capital. Be your own boss; with a flexible working
environment, unlimited earning potential and other opportunity to be part of a world class team.
The advantage is all yours. Sunrise industry: - Life insurance in India has a huge potential for
growth. Statistics reveal that only 25% of the insurable population in India is insured. And those
insured are in need of still higher insurance cover. The over 100% growth displayed by private
life insurers indicates this huge untapped potential.

Strong partnership: - It is one of the fastest growing life insurance companies. It was the first
private life insurance company to be granted a license by IRDA. It has been rated by business
world class magazine as India’s most respected Private life Insurance Company in 2004. HDFC
Standard life Insurance has one of the highest brand recalls of around 86%.

2) Marketing for the potential market: - In our general life we buy those things which we see. For
consumer awareness print marketing and electronic marketing both are most important. In the
market 17 insurance players is trying to convince people with the advertising in television, radio,
newspaper and magazines. HDFC Standard Life is also adopting these electronic marketing. The
punch line of HDFC Standard Life is “Sar Utha Ke Jiyo”. Today it has more than 8 lack
policyholder. It is also targeting cinema halls like PVR where it will get more potential market,
for marketing.

3) For insurance sector the main marketer becomes its Financial Consultant. So it is trying to
recruit more and more financial consultant for the purpose of sale of the policy of HDFC
Standard life and people will be more aware through it because it is a work of contact. Which
have more contact the that person can get more business.

HEAD OFFICE: HDFC Standard Life Insurance Co. Ltd.

'Trade Star', 2nd floor, ’A’ Wing,

Junction of Kondivita and M.V. Road,

Andheri-Kurla, Road,
Andheri (East), Mumbai - 400 059.

PHONE: (Board) (022) 2822 0055 / 6751 6666

Fax: 2822 9998 / 2822 2414

Objective of the study

Marketing Research provides information that assists an organization to define opportunities for
product development and market strategy. It works by assessing whether marketing strategies are
accurately targeted, and by identifying market opportunities or changes that are required by
customers. Market research tends to confirm issues that are well-known in a market initially, but
if planned well and effectively it will also identify new opportunities, market niches, or ways by
which to improve sales, marketing and communications activities.

The role of market research, therefore, is to reduce uncertainty in decision making, to monitor
the effects of decisions taken, and identify the performance of a company or a product in the
market. During internship my market survey was related with the analysis of customer
Objective of project

My project is being undertaken in HDFCSL in which I had to analyze customer perception

towards the company. For this distribution enhancement of insurance policies of HDFCSL has
been implemented as a marketing strategy. HDFCSL tied up with world class insurance product.

Primary Objective

The primary objective of my project is to make a market survey. In the insurance sector the main
work is done by the financial consultant who brings selling for the organization. It improves the
services of the organization.

Secondary Objective
The secondary objective was to recruit FC and to make insurance policies.

Working Procedure

In my summer training I targeted Bhubaneswar and Cuttack. Here I had to approach various
detail of insurance product of HDFCSL and the other competitors of it, suggestions, its
marketing strategy and its advertisement. As a part of marketing research I also have to collect
data in order to find out market share of HDFCSL from our sample space. During the period I
was in constant touch with area manager and I have to submit daily report of my work and full
information about phone calls and questioners. Questioner consisting of open ended questions
was used for collection the information.

Sample Area

My working area was Bhubaneswar, Cuttack and Bhawanipatna. As I know that those person
will invest in insurance sector who is a service holder or a professional. I targeted those people
whose age is equal or more than 25.

Methods of data Collection

Data is the significant part of the research. Your all research depends upon your data. Whatever
data is collected by me during the internship in the HDFCSL, I can divide the method of data
collection into two parts.
Which are thus:-

a. Primary data
Primary data are those which are collected fresh and for the first time and thus happen to be
original in chapters. I have collected my data through Questionnaire.
b. Secondary data
Secondary data are those data which are being already collected by someone else and which have
already been passed through the statistical process. I have collected my published date form
Internet and the books, magazines and newspaper.

Research Design

In this project exploratory research is used. In exploratory research data was collected by open
ended questionnaire research method. In my research cross sectional studies, field work and
survey was conducted. My study was concerned with the specific prediction of customers


Since it is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics.

1. Sampling Units: Service holders, self employed, Business Man, Professionals and
Housewives 2. Sample Technique: Random Sampling.
3. Research Instrument: Structured Questionnaire.
4. Contact Method: telephone calls.

Analysis and interpretation

1) For the marketing survey I selected a sample size of 60 respondents. They belong to different
age group more than 25 years and less than 66 years.

Age groups No. of respondents Percentage

26—30 years 11 18.33

31—35 years 13 21.66

36—40 years 12 20.00

41—45 years 08 13.33

46—50 years 06 10.00

51—55 years 04 06.66

56—60 years 03 05.00

61—65 years 03 05.00


2) The second thing is Male and female

In my sample size there were 52 male and 8 female 86.66% male and 13.33% female


3) The third thing in my survey was single or married

In my sample there were 21 single and 39 married means 35% single and 65% married

4) the fourth thing is occupation

Service 27 45%

Self employed 14 23%

Student 2 3.33%

Professional 13 21.66

House wife 4 6.66%

self employed
house wife

Q1. What is your average monthly income?

Less than 5000/ 5000-10000/10000-20000/20000-25000/25000-30000/30000-40000/

40000-50000/50000 & above

Monthly income no.of respondent percentage

Less than 5000 0 0%

5000-10000 06 10%

10000-20000 35 58.3%

20000-25000 14 23.33%

25000-30000 04 6.66%

30000-40000 01 1.66%

40000-50000 0 0%

50000 & above 0 0%


Q2. What are your view points on life insurance?

Protection tool/tax savings instrument/savings option/others (please specify)

Protection tool 40 66.66%

Tax savings instrument 23 25.55%

Savings option 37 61.66%

Others 0 0%

tax savings
savings option


Q3. Do you have insurance policy on your life?

Yes / no

Yes 48 80%

No 12 20%

Q4. What plan you have taken pleases help me by sharing reasons?

Most of the customers have taken life insurance policies in LICI . They have different plans like
jeevan aanand, money plus, lic life plus, children bright future etc.

Q5. Which are the prominent life insurance companies in your locality? Please name two.

--------------------------------------------------- ------------------------------------------------

LICI 50 83.33%

ICICI prudential 11 18.33%

Bajaj Allianz 09 15%

SBI life 08 13.33%

HDFCSL 06 10%

ICICI prudential
Bajaj Allianz
SBI life

Q6. Have you hard of HDFC ltd?

Answer no. of respondents percentage

Yes 55 91.66%

No 5 8.33%


Q7. Have you ever been associated with any group company of HDFC as a customer?

Answer no.of respondents percentage

Yes 2 3.33%

No 58 96.66%


Q8. If yes please share with us the details of the same?

Q9. Do you know that HDFC is also into insurance business?

Answer no.of respondents percentage

Yes 49 81.66%

No 11 18.33%


Q10. If yes how did you come to know about HDFC being into insurance business?

Through advertisement/friends/relatives/internet/others (please specify)

Answer no.of respondents percentage

Through advertisement 45 75%

Friends 14 23.33%

Relatives 6 2.33%

Internet 11 18.33%

Others 0 0%

Q11. Have any one from HDFCSL approached earlier for any survey / agency/ need analysis?

Answer no.of respondents percentage

Yes 3 5%

No 57 95%


Q12. Are you aware, that you can get an expert advice from HDFCSL on your financial goals?

Answer no.of respondents percentage

Yes 28 46.66%

No 32 53.33%

Q13.Would you like to review your financial goals with an expert, who will be assisting you in
achieving your financial goals?

Answer no.of respondents percentage

Yes 25 41.66%

No 35 58.33%


Q14.Do you want any of your relatives/friends to know about the services offered by HDFCSL?

Answer no.of respondents percentage

Yes 45 75%

No 15 25%

Q15. Can you help me with 2 contacts, whom I can contact similar survey?

Secondary data study

HDFC Standard Life Insurance
Respect Yourself
Subject: Effective Communication
Various Ad Campaigns
Pension Plan

As we see the above Ad campaign there are three characters
1) Grandfather
2) Father &
3) Son
This grandfather is an old retired person who accompanies his grandson to the market, where this
grandson of is sees a cycle and demands a same like it. Now the old grandfather may not have
the money to buy that cycle for his grandson, therefore after returning from the market the father
of the child comes to his father and offers him some money that he can go and buy that cycle
from the market for his grandson. But in the meanwhile the grandfather calls the grandson who is
riding his cycle out in the garden. The father of the child is shocked that his father had already
bought him a cycle, and then his father asks him to keep the money back or he will feel bad.
Therefore Hdfc Standard Life Insurance is the way for a secured old age by which you can be
also independent and not dependent on your children
Value Projected
The value shown in this particular campaign is that even at an old age the grandfather is able to
serve his grandson without sacrificing his self-esteem and accepting help from his own son

Children’s Plan

There are 2 main characters projected in the above Ad
1) Father &
2) Daughter
The daughter in the annual day function of her school who is presenting a show where she is
singing something which says as below “ sar jhuka hai kabhi, aur na jhukayenge kabhi, jo
apne dam pe kare, sach mein… zindagi hai wahi”
After reciting the first part she forgets the second part, she continuously looks at her father who
gets up and helps her to recollect her lines by acting on it, by which she recollects the lines and
feels comfortable to sing the song.

SWOT Analysis of HDFC Standard Life Insurance

Analysis of the industry’s environment

(SWOT Analysis)
HDFC and Standard Life first came together for a possible joint venture, to enter the life
Insurance market, in January 1995. It was clear from the outset that both companies shared
similar values and beliefs and a strong relationship quickly formed. In October 1995, the
companies signed a 3-year joint venture agreement.
1. Domestic image of HDFC supported by Prudential’s international image is strength of the
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
7. The company also provides innovative products to cater to different needs of different
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.

1. Insurable population –According to ING 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.
4. Insurance liberalization in India is expected to result in a wider choice of major commercial
insurance covers, such as fire, export credit,...


1. The immerging trend of insurance companies in Indian market.

2. Competitors like ICICI Prudential, Bajaj Allianz, LICI ,

Big MNCs are coming to domestic market.

3. Local companies specialized in providing such services.


I compared two products, ICICI smart kid unit link and HDFC young star, in both the policies
parent is insured and child in nominee or beneficiary,
Both the policies contains same features, only additional rider is available in smart kid is income
benefit rider (IBR), how this rider works? this rider comes in the picture when the parent expires
or becomes permanent disable at that time this rider pay 10% of sum assurance to nominee,

HDFC Young star offers Insurance Cover up to 20 Times of Annual Premium. You may Pay Rs.
30000 per year & take Insurance Cover of Rs. 6 Lacs.

You may take Critical Illness Rider in HDFC Young star up to 65 years Age(as it Cheaper than
other ULIPS ).

The returns from HDFC Tax saver, HDFC LT Advantage fund are better than the returns from
HDFC Standard Life Equity Fund.

HDFC Standard ULIP Returns are over 70% in last 1 year.

HDFC Young star with Maximum Insurance Cover of Rs.3.6 Lacs

Received CIO 'The Ingenius 100 2009' Award

HDFC Standard Life has received the CIO ‘The Ingenious 100 - 2009 Award,’ for ATLAS
(Agency Training Licensing and Servicing System). Additionally, the company has received the
CIO 100 ‘Security Award 2009’ for pioneering LANDesk Management and Security Suite
security implementation and taking its security to a higher level of technological excellence.
HDFC Standard has received the CIO 100 Award for the third consecutive year. It had received
the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our initiatives for
a secure computing environment, including Sesame - Identity and Access Management. In 2007,
the company received CIO 100 award for Wonders and a Special Award in Storage category.
CIO magazine has a long tradition of honoring leading companies for business and technology
leadership and innovations through its flagship award program – CIO 100. It’s a celebration of
100 organizations (and the people within them) that are using IT in innovative ways to deliver
business value, whether by creating competitive advantage, optimizing business processes,
enabling growth or improving relationships with customers.
HDFC SL 'Mission in Genius' for 15,000 staffers culminates August 20

Mission in Genius, a HR initiative of HDFC Standard Life for its 15,000 employees, is a pan-
India quiz property first organised in 2006. This year's event, following the zonal rounds,
concluded in a grand finale at ITC Grand Maratha, Mumbai, on August 20. The event was
managed by Mumbai-based Cupid Advertising. On the property, Sharad Gangal, GM-HR,
HDFC Standard Life, explained, "We believe that knowledgeable employees will give us a
competitive advantage. Our people processes are centered around building skills and capabilities
that will give us a leading edge in the Industry. We want to promote this culture of knowledge
enhancement by going beyond class rooms. Mission In genius is one such initiative that invites
involvement through competition, fun and bringing in cross functional synergies together;
thereby it becomes an engagement initiative too." The grand finale was the culmination of the
two-month pan-India contest. The initial pan-India round was held online and more than 15,000
employees across 595 offices participated. "We believe this enthusiasm is a clear indication of
the degree of hunger and craving amongst employees to compete for knowledge enhancement.
We had zonal competitions from which 12 teams qualified for the semi finals. The semi final
round ended with four teams qualifying, of which the two best scoring teams battled it out in the
fiercely fought finals," elaborated Gangal. Mission In Genius' design structure, quiz questions
and creatives were developed in-house. Cupid Advertising was appointed to handle set-up and
system support during the zonal and national rounds. The finale was conducted by quiz master
Barry O' Brain. Certificates, trophies and holiday coupons were awarded to winners

Core competency
Work culture
The company attributes its success to the contributions made by its employees. We believe that
our strength is our people, so our endeavour is to surpass their expectations and give them the
best possible work environment and benefits that match the best in the industry.
Talent management initiatives in HDFC Standard Life are driven by a set of organizational core
competencies (Mantra 10) as well as position-specific competencies. The competency set
includes knowledge, skills, experience, and personal traits (demonstrated through defined
behaviors) based on the bedrock of sharp vision and strong values of HDFC Standard Life.
In this endeavor of shaping and nurturing our talent pool, HDFC Standard Life adopts a four-step


People have a very good perception towards HDFCSL. In my marketing survey81.66%
respondents know that HDFC is into insurance business. Among them 75% people come to
know through advertisement, 3.33% people through friends .33% through relative and 18.33%
through internet. 46.33% respondents know that they can get expert advice regarding financial
goals. 41.66% respondents want to get financial advice from HDFCSL financial consultants.
75% respondents want their relatives to know about t services of HDFCSL.

From the secondary data study it is studied that HDFCSL has a very good marketing strategy we
have done the SWOT analysis also. We come to know about the core competency and the
competitive advantage. We studied its advertising strategy. From the marketing survey and the
secondary data analysis we come to know that HDFCSL is a very good player in the insurance
market and the customers perception for its services, products, customer care, brand, FCs,
advertisements are too good.

HDFCSLIC is the renounce industry in the insurance sector. It believes in quality not in quantity.
HDFC have total 12 group companies. It is the first insurance company who has got the license
of insurance in firstly. It has started its insurance industry with the joint venture of U.K. based
standard life insurance company. In the insurance sector main work is done by the financial
consultant who brings business to the industry. It gives more priority for the recruitment of
financial consultant that’s why it has setup 5-qscore. It gives priority that is professional like as

In this process I have recruited 3 FCs for the company, two of them are MBA students and one
of them is an MA and got insurance policies of Rs. 30,000.

Now a day we are seeing a lot of media action from this company. Although a slow starter
HDFC SL was having a small share of the pie. It was eclipsed by ICICI prudential with its media
and sales blitz making it second largest player in the Insurance market. 2006 saw a shake up in
this market with Bajaj Allianz edging out ICICI from the second spot. Bajaj have a market share
of around 8% and HDFC SL and ICICI fighting at 3rd place with around 7.5%.

HDFC is currently focusing on The Pension Plan and the Child Plan aiming to cash in on the
potential of these segments. The pension market in India is estimated to be around 1000 crores
with a huge potential for growth in the future.

The change in the demographics is going to drive the pension market in India. Traditionally in a
Joint family, there was an inherent protection for elders. With the urbanization and the evolution
of Nuclear Urban Family (NUF), elders are often forgotten. Out of the 314 men workers in India
only 11% has some sort of old age security. People earlier depend on social security products
like EPF and PPF to build a corpus for their golden years. It is this potential that has encouraged
HDFC to promote its pension plans. Introduced in 2002, this product has been well received by
the consumers. The ads are well executed and revolve around the positioning of "Respect
Yourself" The target segment being the 30 year old family man. The basic theme of the campaign
is to appeal to the self respect of these men who are in their prime of their career. "Even after
retirement let your hands give rather than receive" is one of the best themes for a pension plan.
Since I am in that category, these ads strike a chord in me and remind me of the need to plan for
my retirement. The same theme is carried to the Child plan also.


Finally some recommendations for the company are as fallows:-

 To make people aware about the benefit of HDFC Standard Life’s products, and
change their perception for the company following activities of advertisement should be
done through

1. Print Media.
2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.
5. Company can recruit sales promoters so that maximum information can be
provided to the potential client.

 By showing additional and alternative income source along with various schemes
for Financial Consultant in the company so that more and more FC can be recruited.
 Free life cover for every active Financial Consultant.
 Discounted rate premium for its family members.
 Make people understand about the meaning of the IRDA authorization and its
 Company should organize the program in the society, so that people will be
aware about the company
 Separate time slot for Working Professionals, House Wives and Retired people.
 Agency of non-life products should also be provided along with life.
 Company should open more branches in different cities

 It should provide better facilities for premium collection and to get the sum assured

 FC should visit clients for premium collection.

 Experts from company should visit the clients with the FC.

 FCs should be given better training regarding the products and they should try to create
better impact on the customer for the company.

 In the advertisements their basic mission should be to change the perception of people
towards the HDFC group, because a good brand sells itself.

 In the recruitment of financial consultant I found that mostly person don’t want to give
Rs.825. I have faced some difficulties when they don’t agree to give this much amount. If
the company will less this charge then it will get more FC.


The information given in the above part is based on market survey, meeting with the people, and
phone calls, and the other medium like internet and browser of HDFCSL. My project is based
upon the interaction with the people to analyze the customer’s perception. My study is totally
based on the perception of the people that what they think about the insurance when someone
offer him to work in the insurance sector or to take a policy. I analyze that the person who is
needy for money, greedy about fast life and believes in speed join insurance because this sector
gives you a platform for unlimited earning and life time earning like life time validity in mobile

 Websites

 Used literature
“The Times of India”
“The economic times”
E-magazines of HDFCSL

 Valuable information from corporate guide and faculty guide