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HISTORY OF INSURANCE
Insurance in India began in the year 1870; The first policy issued was in 1870 by The European & The Albert. The first Indian insurance company was Bombay Mutual Assurance Society Ltd. formed in 1870.There were 170 insurance companies and 75 provident fund securities which got merged and on 1st of Sept 1956 Life Insurance appointed. Corporation This of India was born.In the 1993, a the year Malhotra later and Committee, headed by the former RBI Governor R. N. Malhotra was committee submitted report recommended privatization. 1818 to 1956 (about 138 yrs) 1850 to 1972 (about 122 yrs) .Many (245) private sector companies only, competitive market. Many (107) private sector companies only, competitive market. 1956 to 2000 (about 44 yrs) 1972 to 2000 (about 28 yrs) Nationalization, public sector or State monopoly, only one company. Nationalization, public sector monopoly, only one company with its four subsidiaries. were competitive. The insurance was regulated through the Insurance Act, 1938.Insurance developed during the 1700’s in the North American colonies. In 1730, Benjamin Frank contributed for the Insurance of Houses from Loss by fire. The company collected contributions & this money went into an investment fund. Interest on this fund went towards paying claims dividends to those who contributed money.
WHAT IS INSURANCE?
Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. 1
NEED FOR INSURANCE
Why is insurance necessary? The question contains the answer within itself. After all, life is fraught with tensions and apprehensions regarding the future and what it holds for the individual. Despite all the planning and preparation one might make, no one can accurately guarantee or predict how or when death might result and the circumstances that might ensue in its aftermath. We are not saying that life and existence are constantly fraught with danger and uncertainty. But then it is essential that you plan for the future. The chances for a fatality or an injury to occur to the average individual may not be particularly high but then no one can really afford to completely disregard his or her future and what it holds. People generally regard insurance as a scheme when and where you have to lose a lot to gain a little. Nevertheless, insurance is still the most reliable tool an individual can use to plan for his future. The entity whose risk is transferred – which may be an individual or association of any type, including a government or government agency – is called the “insured”. The entity that accepts the risk is called the “insurer” and the agreement between the two by which the risk is transferred is called the “policy”. This is a legal contract that sets out exactly the terms and conditions of the coverage. The fee paid by the insured to the insurer for assuming the risk is called the “premium”. This is usually determined by the insurer to fund estimated future claims paid, administrative costs, and profit.
IMPORTANCE OF INSURANCE
1. Removal of uncertainties Insurance company takes the risks of large but uncertain losses in exchange for small premium. So it gives a sense of security, which is real gift to the business man. If all uncertainty could be removed from business, income would be sure.
2. Stimulant of business enterprise Insurance facilitates to maintain the large size commercial and industrial organizations. No large scale industrial undertaking could function in the modern world without the transfer of many of its risks to insurer. 3. Promotion of saving Saving is a device of preparing for the bad consequences of the future. Insurance policy is often very suitable way of providing for the future. This type of policy is found particularly in life assurance 4. Correct distribution of cost Insurance helps to maintain correct distribution of cost. Every business man tries to pass on to the consumer all types of costs including accidental and losses also. In the various fields of Insurance such losses are correctly estimated keeping in view a vast number of factor bearing on them. 5. Source of credit Modem business depends largely on credit; insurance has contributed 'a lot in this regard. A life insurance policy increases the credit worthiness of the assured person because it can provide funds for repayment if he dies. 6. Reduction of the chances of loss Insurance companies spend large sums of money with a view to finding out the reasons of fire accidents, theft and robbery and suggest some measures to prevent them. They also support several medical programme in order to make the public safety minded. 7. Solution of social problems Insurance serves as a useful device for solving complex social problems e.g. compensation is available to victims of Industrial injuries and road accident while the financial difficulties arising from old age, disability or death are minimium.
In 1994. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. and indirectly through higher levels of risk transfer and financial intermediation. In 1993. This is through direct contributions to Gross Domestic Product (GDP) via increased levels of employment within the sector. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.N. with insurance companies being significant institutional investors. Malhotra. like other financial services. Malhotra Committee. Life insurance was monopoly of LIC. has grown in economic importance. In recent decades. the committee submitted the report and some of the key recommendations included: Structure Government stake in the insurance Companies to be brought down to 50%. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. 4 .was formed to evaluate the Indian insurance industry and recommend its future direction.THE GLOBAL INSURANCE INDUSTRY The insurance industry forms an integral part of the global financial market. INSURANCE SECTOR REFORMS Prior to liberalization of Insurance industry.headed by former Finance Secretary and RBI Governor R. the insurance sector.
presents a huge untapped potential for players in the insurance industry. Controller of Insurance. By any yardstick. THE INSURANCE SECTOR IN INDIA Prior to 1999 there were only two players in the market: • • Life Insurance Corporation of India (LIC) General Insurance Corporation (GIC) Then to protect the interests of the policyholders.should be made independent Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. An Insurance Regulatory body should be set up.1 billion should be allowed to enter the sector.a part of the Finance Ministry. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Computerization of operations and updating of technology is to be carried out in the insurance industry. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time) Customer Service LIC should pay interest on delays in payments beyond 30 days. promote and ensure orderly growth of the insurance industry.Competition Private Companies with a minimum paid up capital of Rs. IRDA was set up. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors with the per 5 . India. No Company should deal in both Life and General Insurance through a single entity. Regulatory Body The Insurance Act should be changed. Insurance companies must be encouraged to set up unit linked pension plans. to regulate. After this the private players started entering the market. with about 200 million middle class households.
Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. to regulate.” 6 . The Monitor Group has estimated that the life insurance market will grow from Rs. an independent consulting company.capita income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA’s online service for issue and renewal of licenses to agents. MISSION-IRDA “To protect the interests of the policyholders. 1938. Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. and Insurance Regulatory & Development Authority Act. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.218 billion in 1998 to Rs. The primary legislation that deals with insurance business in India is: Insurance Act. the demand for insurance is expected to grow at an attractive rat in India. 1999. promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.5%) REGULATORY BODY: THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) Insurance is a federal subject in India.1003 billion by 2008 (a compounded annual growth of 16.
MILESTONES OF INSURANCE REGULATIONS IN THE 20TH CENTURY Year 1912 1928 1938 1956 Significant Regulatory Event The Indian Life Insurance Company Act Indian Insurance Companies Act The Insurance Act: Comprehensive Act to regulate insurance business in India Nationalization of life insurance business in India with a monopoly awarded to the 1972 Life Insurance Corporation of India Nationalization of general insurance business in India with the formation of a holding company General Insurance 1993 1994 1995 1996 Corporation Setting up of Malhotra Committee Recommendations of Malhotra Committee published Setting up of Mukherjee Committee Setting up of (interim) Insurance Regulatory Authority (IRA) 1997 1997 Recommendations of the IRA Mukherjee Committee Report submitted but not made public The Government gives greater autonomy to Life Insurance Corporation. General Insurance Corporation and its subsidiaries with regard to the restructuring of boards and flexibility in investment norms aimed at channeling funds to the infrastructure 7 .
The IRA bill is renamed the Insurance Regulatory and Development Authority Bill Cabinet clears Insurance Regulatory and Development Authority Bill President gives Assent to the Insurance Regulatory and Development Authority Bill 1999 1999 2000 COMPANY PROFILE: HDFC STANDARD LIFE INSURANCE 8 .sector 1998 The cabinet decides to allow 40% foreign equity in private insurance companies26% to foreign companies and 14% to Non-resident Indians and Foreign Institutional Investors The Standing Committee headed by Murali Deora decides that foreign equity in private insurance should be limited to 26%.
HDFC was promoted with an initial share capital of Rs.2. holds 26. 2009 HDFC Ltd. Customer Service and satisfaction has been the mainstay of the organization.000 depositors. As on February 28. which offers a range of individual and group insurance solutions. Qatar. JOINT VENTURE HDFC Limited HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. while the rest is held by others. HDFC Limited. Ltd.551 crores. 17. the total asset size has crossed more than Rs. 00. London and Singapore with service associates in Saudi Arabia.1 INTRODUCTION TO THE ORGANIZATION HDFC Standard Life Insurance Company Limited is one of India's leading private Insurance companies. UK. earning the trust of more than 9.000 crores including the mortgage loan assets of more than Rs. It has international offices in Dubai. since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. 82. India’s premier housing finance institution has assisted more than 3.43% and Standard Life (Mauritius Holding) 2006.00% of equity in the joint venture. India's leading housing finance institution and a Group Company of the Standard Life Plc. holds 72. Kuwait and Oman to assist NRI’s and PIO’s to own a home back in India.800 crores. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited). As of December 2008. The corporation has a deposit base of Rs. 95.3 million families own a home. 100 million. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing 9 .
finance company for the developing countries. In the 1990s. pension. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006. It currently has a customer base of around 7 million people who rely on the company for their insurance. and Bangladesh in the setting up of housing finance companies. Its investment manager currently administers £125 billion in assets. HDFC Standard Life Insurance Company Ltd 10 . and to Standard Life Bank since its inception in 1998. 2005 and 2006 at the Money Marketing Awards. Maldives. Standard Life was awarded the 'Best Pension Provider' in 2004. the group also sought to diversify its operations into areas which complemented its core life assurance and pensions business. The Standard Life Group has been looking after the financial needs of customers for over 180 years. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years. Standard Life Group The Standard Life Assurance Company ("Standard Life") was established in 1825 and the first Standard Life Assurance Company Act was passed by Parliament in 1832. Its Canadian branch was founded in 1833 and its Irish operations in 1838. investment.The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries. banking and health-care needs. and it was voted a 5 star life and pension’s provider at the Financial Adviser Service Awards for the last 10 years running. Standard Life was reincorporated as a mutual assurance company in 1925. and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's. with the intention of positioning itself as a broad range financial services provider. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt. It is a leading pensions provider in the UK.
6 joint venture to form HDFC Standard Life Insurance Company Limited.7 lakh lives by March'2007. HDFC Standard Life Insurance India boasts of covering around 8. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.4:18. they can be easily customized as per specific needs. Ltd was incorporated on 14th august 2000. ASSOCIATE COMPANIES HDFC Limited 11 .HDFC Standard Life Insurance Co. Mr. The gross incomes standing at a whopping Rs. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.HDFC Standard Life brings to you a whole range of insurance Solutions be it group or individual or NAV services for Corporations. 2. HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer.) India and UK based Standard Life Company. 856 crores. Deepak Satwalekar is the MD and CEO of the venture.
GRUH Finance Ltd. HDFC Property Ventures Ltd. HDFC Ventures Trustee Company Ltd. HDFC Developers Ltd. HDFC Holdings Ltd. Credit Information Bureau (India) Ltd 12 . HDFC Investments Ltd.HDFC Bank HDFC Mutual Fund HDFC Sales HDFC ERGO General Insurance Other Companies • • • • • • • • HDFC Trustee Company Ltd.
2 COMPANY’S VISION & VALUES 13 .• HDFC Securities BANK ASSURANCE PARTNERS HDFC Bank Saraswat Bank Indian Bank Bank of Baroda 2.
offer the best value for money. 'The most obvious choice for all'. Deepak S. He is also the Chairman and Director of Housing Development Finance Corporation Limited (HDFC Limited). which means that we are the most trusted company. Parekh is the Chairman of the Company.Vision 'The most successful and admired life insurance company. He joined HDFC Limited in a senior management position in 1978 14 . and set the standards in the industry'.3 BRIEF PROFILE OF THE BOARD OF DIRECTOR Mr. Values Values that we observe while we work: • • • • • • Integrity Innovation Customer centric People Care “One for all and all for one” Team work Joy and Simplicity 2. the easiest to deal with.
He joined HDFC Limited in 1981 and became an Executive Director in 1993 . Mistry joined the Board of Directors of the Company in December. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy Managing Director in 2007. Karnad is the Managing Director of HDFC Limited. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. Renu S. She is a graduate in Law and holds a Master's degree in Economics from Delhi University. 15 . Keki M. Ms. 2000.Mr.
James Capel & Co. Nathan joined Standard Life in 1982 as Investment Manager. He is appointed as the Executive Europe on 1st January 2010. He was awarded the Scottish Business Awards Finance Director of the Year and from 2004 to 2005. Mr. Nathan Parnaby is appointed as the Chief Executive. responsible for all UK net funds. Prior to this. Norman K.Mr. Mr. holding 16 . Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Europe & Asia of Standard Life in the year 2010. David Nish joined Standard Life on 1 November 2006 as Group Finance Director and remained in that position until December 2009. Mr. He was appointed a Director of the Standard Life Investments’ board. Skeoch was working with M/s.
Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Director of Controls and Strategy HSBS Securities and Managing Director International Equities. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Mr.. Gautam R. Mr. Boston. Executive Director. until 2002 was a Partner & Vice-President at Bain & Company. where he led the worldwide Utility Pract 17 . Pant.the positions of UK Economist. an International Association of Independent Accounting Firms and has authored several papers of professional interest. Chief Economist. Inc.
Mr. Mr. Gerald E. 2010.T. 18 . He is associated with Infrastructure Development Finance Company Ltd. A. He became a director of the Standard Life Assurance Company in July 2003. Grimstone was appointed Chairman of Standard Life in May 2007. Chari has joined HDFC Standard Life as a Director on March 10. Gerry held senior positions within the Department of Health and Social Security and HM Treasury until 1986..Mr. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). (IDFC) for last 11 years. Chari has completed his Electrical Engineering from Madras University in 1962. K. having been Deputy Chairman since March 2006. He is also Chairman of Candover Investments plc and was appointed as one of the UK’s Business Ambassadors by the Prime Minister in January 2009.
Michael G Connarty is responsible for Standard Life's investments in life assurance Joint Ventures in India and China. Risk. He holds a degree in Law and MBA. Regional Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of Bank of America (India). Before joining HDFC Standard Life. International Marketing. 19 . Mr. He has worked with Standard Life for 33 years in managerial positions covering a number of fields such as Pensions law. Strategy. Company Secretarial and Banking. Compliance. he was the MD and CEO of Infosys BPO and was also heading an Independent Validation Services unit in Infosys Technologies. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life.Mr. Operational Management. He started his career with Bank of America delivering diverse roles ranging from Head of Technology Investment Banking for Asia.
Mr. he was responsible for driving and spearheading several key initiatives. overseeing new business and claims settlement. 3. Vibha was with Colgate 20 . contributing to product launches and performance management system. Ms. Padalkar joined HDFC Standard Life in August 2008 after a seven year stint as Executive Vice President-Finance at WNS Global Services. a NYSE listed leading global business process outsourcing company. During his 16-year tenure at HDFC Limited. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. Chief Financial Officer Ms. Vibha Padalkar. leading recruitment. A fellow of the Institute of Chartered Accountants of India. Prior to WNS. As one of the founding members of HDFC Standard life. driving sales and servicing strategy. Vibha’s key achievement during her tenure at WNS was to lead a team that successfully completed the Group’s IPO on the New York Stock Exchange in a short span of six months. customer interactions etc.Mr.Vibha Padalkar is the Chief Financial Officer of HDFC Standard Life. he has been associated with the HDFC Group since 1984. Parasnis has been responsible for setting up branches.4 MANAGEMENT TEAM Ms.
Ashley Rebello. Subsequently he worked as an actuarial consultant at PricewaterhouseCoopers for five years. 21 .Palmolive India for 7 years. Chief Actuary and Appointed Actuary Mr. including a short posting to the Group's New York headquarters. Netherlands. During his six years at Prudential he worked in Product Development and Pricing. Mr. He completed his degree in Mathematics at Imperial College. before joining Prudential UK in 1996. Greece and the US. Valuation and in the Appointed Actuary's team. working for over 20 life insurance companies on a large variety of assignments in the UK. London. Ashley Rebello is the Chief Actuary and Appointed Actuary of HDFC Standard Life. Switzerland.
Chief Investment Officer Mr. 22 . Gajri joined HDFC Standard Life in April 2009 with a rich experience of 14 years in investments and banking industry. He started his career in 1995 with Citibank and was associated with it for over 6 years delivering various roles. Prasun Gajri.Mr. He joined Tata AIG Life Insurance Company in October 2001 to start the investment function and stayed there until April 2009. India. Sales and Marketing Mr. Mr. he was associated with Citibank for 16 years serving various responsibilities including the Head for Direct Sales .Vikram Mehta heads the Sales and Marketing function for HDFC Standard Life. the last role being that of the Chief Investment Officer. Mr. Mehta joined HDFC Standard Life in February 2009. Before joining HDFC Standard Life. He holds a PGDM from IIM Ahmedabad and is also a CFA Charterholder. Mr. Mr. Vikram Mehta. Central and Eastern Europe cluster. and was associated with the company for 4 years.Citibank NA. and Acquisitions Head – Credit Cards.Citibank Credit Cards division in Germany. General Manager. Regional Director East . Prasun Gajri is the Chief Investment Officer of HDFC Standard Life. Mehta started his career with Reckitt and Colman (now Reckitt Benckiser) in 1988.
'YoungStar Super' Voted 'Product of the Year 2010' HDFC Standard Life’s YoungStar Super has been voted ‘Product of the Year 2010’ in the 'Insurance' category by more than 30. in India 2010 list. The company participated in the Great Places to Work® study for the first time and ranked first in the insurance category. The company provides some unique platforms such as 'Mission in Genius' national quiz.5 AWARDS & ACCOLADES Best Companies to Work for in India in 2010 HDFC Standard Life has been adjudged one of the Best Companies to Work for in India in 2010.000 consumers nationwide across 36 markets. The management is accessible to all at all times and sincerely seeks feedback from its employees through programmes such as 'Sparsh'.2. It ranked 34th on the Top 50 Best Companies to Work for. The study has shown that HDFC Standard Life conscientiously develops employee talent programmes to keep engaging and motivating its employees. the study said. The company was also awarded for its unique employee initiative . 23 .Mission –in-Genius national quiz.
YoungStar Super is an unit linked Children Plan with unique benefits such as bumper additions. 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. the company received CIO 100 award for Wonders and a Special Award in Storage category. In 2007. and seven different funds. packaging or process or any other specified form. Entries were accepted from products that demonstrate innovation in their product function. attractive allocations rates. the leading global research firm. Entries were then filtered by a jury of distinguished industry professionals to ensure that the products meet the innovation criteria before they were passed on to the consumer votes/survey round Received CIO 'The Ingenius 100 2009' Award HDFC Standard Life has received the CIO ‘The Ingenious 100 . Additionally. CIO magazine has a long tradition of honoring leading companies for business and technology leadership and innovations through its flagship award program – CIO 100. HDFC Standard has received the CIO 100 Award for the third consecutive year. 24 . including Sesame . The consumer study on product innovation in India was conducted by A C Nielsen.2009 Award. design. double and triple benefits.Identity and Access Management. It had received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our initiatives for a secure computing environment.’ for ATLAS (Agency Training Licensing and Servicing System).
Network Computing magazine is part of CMP Technology.Network Computing magazine to identify.Enterprises Driving Growth and Excellence (using IT) is an initiative by the . whose pioneering implementations have taken their enterprise security to the next level. This annual award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. which brings more than 100 IT media brands to more than 18 million technology and business decision makers worldwide. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure. ‘The Bold 100.’ recognized those executives and organizations that embraced great risk for the sake of great reward. 25 . This year's award theme. and honour end-user companies in India that have demonstrated the best use of technology to solve a business problem. and deliver quantifiable ROI to stakeholders.Consultant Corner.HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO Security Award aimed at CIOs. recognise. EDGE .Received Diamond EDGE Award 2009 HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile workforce portal . improve business competitiveness. Received 2008 CIO Bold 100 and CIO Security Awards DFC Standard Life has received the 2008 CIO Bold 100 Award.
without compromising on one’s self-respect Unit Linked Savings Plan Tops Mint Best TV Ads Survey The Unit Linked Savings Plan advertisement of HDFC Standard Life. its path-breaking implementation of an enterprise-wide workflow system. has topped Mint’s Top Television Advertisement survey conducted. The objective was drive awareness and ask people to invest in a pension plan to live life to the fullest even after retirement. Read more about the ‘Consultant Corner’ tool in the ‘HDFCSL's in News’ Section. and claim). The radio commercial ‘Pata nahin chala’ touched several changes in life in the blink of an eye through an old man’s perspective. 26 . licensing.Received PCQuest Best IT Implementation Award 2008 HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for Consultant Corner. the company received the award for Wonders. the applications for its financial consultants. HDFC Standard Life has won the PCQuest Best IT Implementation Award for two years consequently. etc. HDFC Standard Life’s Unit Linked Savings Plan advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability. one of the leading private insurance companies in India. providing centralized control over a vast geographical spread for key business units such as inventory. believability. Silver Abby at Goafest 2008 HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing craft category at the Goafest 2008 organised by the Advertising Agencies Association of India (AAAI). for February 2008. training. enjoyment. Last year.
followed by others including ICCI Prudential. thus giving HDFC Standard Life the credit of bringing up one such glorious advertising and marketing moment in the last 60 years. This was then. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. Managing Director and CEO.Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr Deepak M Satwalekar. Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments HDFC Standard Life’s advertising slogan honoured as one of ‘60 Glorious Advertising & Marketing Moments' over the last 60 years in India.’ by 4Ps Business and Marketing magazine. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations. ORGANISATIONAL HIERARCHY CEO 27 . HDFC Standard Life. received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function.
↓ CHAIRMAN ↓ MANAGING DIRECTOR (MD) ↓ COUNTRY HEAD ↓ ZONAL MANAGER (ZM) ↓ REGIONAL MANGER (RM) ↓ TERRITORY MANAGER (TM) ↓ BRANCH SALES MANGER (BSM) ↓ BUSINESS DEVELOPMENT MANAGER (BDM) ↓ SALES DEVELOPMENT MANGER (SDM) ↓ FINANCIAL CONSULTANT (FC) 2.7 COMPETITORS INFORMATION 28 .
93 8.98 29 .Name of the Company LIC Life insurance in India made its debut well over 100 years ago. Bajaj Allianz Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. which is one of the most populated in the world. 2.46 6. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz. 2001 to conduct General Insurance business (including Health Insurance business) in India. What follows is an attempt to acquaint readers with some of the concepts of life insurance. the prominence of insurance is not as widely understood. one of UK's largest players in the insurance & fund management sectors and ICICI Bank. SBI Life Insurance has an authorized capital of Rs. a wellknown and trusted name in financial services in India. SBI Life Insurance SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. as it ought to be. with special reference to LIC.000 crores and a paid up capital of Rs 1. The Company has an authorized and paid up capital of Rs 110 crores.In our country. SE. ICICI Prudential ICICI Prudential Asset Management Company enjoys the strong parentage of Prudential plc. Market Share (%) 64 8.000 crores.
As all these areas form the basic infrastructure for establishing the highest possible customer service standards Birla Sun Life Established in 2000. It is anassociate company of Reliance Capital Ltd. organising an efficient and well trained sales force. Reliance Insurance aims at "empowering everyone live their dreams". is a 2. Being one of the top 3 private sector financial services companies in India.96 2. it is certified ISO 9001:2000 for all the processes HDFC SLIC HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. and setting up appropriate systems and processes with optimum use of technology.Anil Dhirubhai Ambani Group.88 2.With an experience of over 9 years. a part of Reliance . Max New York Life Max New York Life Insurance Company Ltd. Not only this. BSLI has contributed significantly to the growth and development of the life insurance industry in India and currently ranks amongst the top 5 private life insurance companies in the country.Reliance Life Insurance Reliance Life Insurance is one of the majormarket players in insurance sector.75 30 .7 Million people in 2 years of operation. Reliance Life Insurance or RLIC has insured more than 1. a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc. Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group.11 1. To ensure this. we have concentrated our focus on expansion of branch network..
joint venture between Max India Limited. Aviva holds 26 percent stake and the Dabur group holds the balance 74 percent share in the joint venture. Not only largest in the UK. Aviva is ensuring the lives of Indians 1. In reference to the government regulations. A company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products. one of India's leading multi-business corporations and New York Life International. it has developed a strong corporate governance model based on the core values of excellence. formed by a joint venture between the Aviva insurance group of UK and the Dabur group of India. caring.83 31 . Aviva is also known as the fifth largest insurance group in the world. is a private insurance company. helping them in taking important financial decisions at every stage in life and stay financially independent Aviva Life Insurance Aviva Life Insurance Company India Ltd. honesty. Kotak Life Insurance Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak Mahindra Bank Ltd. its affiliates and Old Mutual. integrity and teamwork. Since 1834.. the international arm of New York Life.19 0. knowledge. The company has positioned itself on the quality platform. a Fortune 100 company. In line with its vision to be the most admired life insurance company in India.
Since 2000. 3. The company HDFC SLIC is best known for its pension plan. 1961. THREATS 1. therefore there should be an effort to make an exposure of the plans to the people. 88 of Income Tax Act. 2. Company had been giving good returns to the customers. 3. OPPORTUNITIES 1. Company should focus more on corporate selling apart from direct selling. company has been successful in making a strong customer base.2. As a result of increasing awareness of the people regarding secure investments. Apart from pension plan company has got many other beneficial plans like children plan etc of which people are not aware. Life insurance is an effective way of saving taxes. life insurance is the best option which gives the benefit of insurance & investment. LIC still holding 64% of the market share gives a cut through competition. 2. 3. 2. 3. All HDFC SLIC insurance plans are eligible for tax rebates Under Sec. Company has made a brand image through the advertisement “sar utha ke jiyo”. 32 . Existence of various major brands in private sector in insurance. Entrance of various new players in the sector. 4. 2. WEAKNESSES 1.8 SWOT ANALYSIS OF THE ORGANISATION STRENGTHS 1. Lower segment is an opportunity for the company. The company does not have much flexible plans for the lower segment of the society.
1 KNOWLEDGE MANAGEMENT When Should One Go For Insurance? Your insurance need will change as your life does.COMPARATIVE STUDY ON ENDOWMENT PLANS OF HDFC SLIC 3. 33 . we have drawn up the basic life stages and help you analyze various insurance needs accordingly. In this section. 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.
it is important for you to take time and plan for your life after retirement. Your needs: o o o Planning for home / securing your home loan Save for vacation Save for your first child Stage 3 . Ensure your protection umbrella takes into account the future cost of securing your child’s dream. While both of you look forward to a happy and secure life .Planning for Retirement While you are busy climbing the ladder of success today. Take advantage of the time and power of compounding to ensure that you build up your dreams. your need for life insurance is even more. New dreams and new opportunities also bring in additional responsibilities. You will want life to go on for your loved ones. You need to protect your family from an untoward incident. and having enough life insurance is a way to help ensure that.Proud Parents Once you have children. it is equally important to ensure that eventualities don’t come in the way of shaping your dreams.Stage 1 : Young and Single This is an important stage where one lays down the foundation of a successful life ahead.Just Married Marriage brings about a significant change. Your needs: o o o Provide for children’s education Safeguarding family against loan liabilities Savings for post-retirementStage 4 . Your needs: o Save for a home and wedding o Tax Planning o Save for Golden yearsStage 2 . so start saving early. Having an early start for retirement planning 34 liability .
Your needs: o o o Provide for regular income post retirement Immediate Tax benefits Lead a secure.can make a significant difference to your savings. independent and comfortable life style after retirement 3. Think about your golden years even before you have reached them.2 VARIOUS INSURANCE PLANS OF THE COMPANY • Young and single Savings Endowment Assurance Money Back Unit linked Enhanced Life Protection Simplilife Health Surgicare Critical care • Just Married Savings Joint life plans Unit linked Endowment Simplilife Protection Term Assurance Loan cover term 35 . The key is to think ahead and plan well using your time and money.
3 PRODUCTS OFFERED BY THE COMPANY 1. • • • • Protection Plans HDFC Term Assurance Plan HDFC Premium Guarantee Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan 2. Children's Plans 36 .• Married With Children Savings Children’s Plan Unit Linked Young Star Investments Single Premium Whole Life Wealth Maximizer Pension Pension Plans • Nearing Retirement Investments Single Premium Whole Life Wealth Maximizer Health Surgicare Critical Care Pension Immediate Annuity 3.
• • • • • • HDFC Children's Plan HDFC YoungStar Super HDFC YoungStar Supreme HDFC YoungStar Super Suvidha HDFC YoungStar Supreme Suvidha HDFC SL YoungStar Champion Suvidha 3. • • Retirement Plans HDFC Personal Pension Plan HDFC Pension Super 37 . • • Health Plans HDFC Critical Care Plan HDFC SurgiCare Plan 4. • • • • • • • • • • • • Savings & Investment Plans HDFC Endowment Super HDFC Endowment Supreme HDFC SimpliLife HDFC Endowment Super Suvidha HDFC Endowment Supreme Suvidha HDFC SL Endowment Champion Suvidha HDFC Wealth Builder HDFC Endowment Assurance Plan HDFC Money Back Plan HDFC Single Premium Whole of Life Insurance Plan HDFC Assurance Plan HDFC Savings Assurance Plan 5.
• Social Products HDFC Development Insurance Plan 3. Endowments can be cashed in early (or 'surrendered') and the holder then receives the surrender value which is determined by the insurance company depending on how long the policy has been running and how much has been paid in to it. Some policies also pay out in the case of critical illness. Typical maturities are ten.4 ENDOWMENT PLANS An endowment policy is a life insurance contract designed to pay a lump sum after a specified term (on its 'maturity') or on earlier death. Endowment policies cover the risk for a specified period at the end of which the sum assured is paid back to the policyholder along with all the bonus accumulated during the term of the policy.the payment of the endowment to the policyholder 38 . • • • Rural Products HDFC Gramin Bima Kalyan Yojana HDFC Gramin Bima Mitra Yojana HDFC Bima Bachat Yojana 7. Policies are typically traditional with-profits or unit-linked (including those with unitised with-profits funds).• • • • HDFC Pension Supreme HDFC SL Pension Champion HDFC SL Unit Linked Pension Maximiser II HDFC Immediate Annuity 6. fifteen or twenty years up to a certain age limit. It is this feature .
double that of a whole life one.upon the completion of the policy’s term . the premium rates for endowment policies are higher and the bonus rates lower. You can either use the endowment amount for buying an annuity policy to generate a monthly pension for the whole life. Traditional With Profits Endowments 39 . the endowment sum is available for a suitable investment geared to providing an income for the remainder of one’s own life.after retirement. Usage As compared to whole life policies. these polices offer you an endowment . The cost of an endowment policy is. On the plus side. The focus then shifts to managing a smaller family . Not only do these policies provide financial risk cover for the family. of course. This is where the endowment . or put it in any other suitable investment of your choice.which rightly accounts for the popularity of endowment policies. This is the major benefit of an endowment policy over a whole life one. Alternately.representing a return on your premium payments payable to you in your own lifetime when the policy comes to an end. Overall. endowment policies are the most suitable of all insurance plans for covering the risks to a family breadwinner’s life. etc. typically.perhaps only oneself and one’s spouse . death were to take place earlier. were the policy holder to die prematurely but the insurance amount is also repaid once this risk is over. The endowment amount can then be used for meeting major expenditures such as children’s education and marriage. Premium on endowment policies are usually payable for the full term of the endowment policy unless. These type of plans are particularly suitable to those who other than having a risk cover are also interested in a savings component simultaneously. Typically.received back comes handy. one’s responsibility for the financial protection of the family reduces significantly once the children are grown up and independently settled.the original sum assured and the accumulated bonus .
The idea of such a measure is to protect the investors who remain in the fund from others withdrawing funds with notional values that are. life companies will often make a plan 'paid up' if premiums are not studiously maintained. As opposed to a mortgage lender who may allow for a degree of flexibility in such circumstances. Full endowments A full endowment is a with-profits endowment where the basic sum assured is equal to the death benefit at start of policy and. assuming growth the final payout would be much higher than the sum assured 40 . Unit-linked endowment Unit-linked endowments are investments where the premium is invested in units of a unitised insurance fund. If an MVA applies an early surrender would be reduced according to the policies adopted by the funds managers at the time. in excess of the value of underlying assets at a time when stock markets are low. Policyholders can often choose which funds their premiums are invested in and in what proportion. Unit prices are published on a regular basis and the encashment value of the policy is the current value of the units. During adverse investment conditions. for offering low surrender values and providing poor levels of flexibility during periods when a client has an inability to make payments. This is the simplest definition. Units are encashed to cover the cost of the life assurance. Regular bonuses (sometimes referred to as reversionary bonuses) are guaranteed at maturity and a further non-guaranteed bonus may be paid at the end known as a terminal bonus. Endowments have been criticised. as a consequence of redundancy etc.There is an amount guaranteed to be paid out called the sum assured and this can be increased on the basis of investment performance through the addition of periodic (for example annual) bonuses. in the past. the encashment value or surrender value may be reduced by a 'Market Value Reduction' or MVR (It is sometime referred to as a market value adjustment but this is a term in decline through pressure from the Financial Services Authority to use clearer terms). or risk being.
Low cost endowment (LCE) A low cost endowment is a combination of: an endowment where an estimated future growth rate will meet a target amount and a decreasing life insurance element to ensure that the target amount will be paid out as a minimum if death occurs (or a critical illness is diagnosed if included). all beneficial rights on the policy are transferred to the new owner. no longer benefit from the life cover and should consider whether to take out alternative cover. if bonuses are in sterling and there is no mention of units then it is 41 . Policyholders who sell their policies. The easiest way of determining whether an endowment policy is in this category is to check to see whether your policy document mentions units. The main purpose of a low cost endowment has been for endowment mortgages to pay off interest only mortgage at maturity or earlier death in favour of full endowment with the required premium would be much higher. The TEP market deals exclusively with Traditional With Profits policies. indicating it is a Unitised With Profits or Unit Linked policy. When a policy is sold. Investors will pay more than the surrender value because the policy has greater value if it is kept in force than if it is terminated early. The new owner takes on responsibility for future premium payments and collects the maturity value when the policy matures or the death benefit when the original life assured dies. The TEP market enables buyers (investors) to buy unwanted endowment policies for more than the surrender value offered by the insurance company. Traded endowments Traded endowment policies (TEPs) or second hand endowment policies (SHEPs) are traditional with-profits endowments that have been sold to a new owner part way through their term.
we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family. These are not tradable as the guarantees on the policy are much lower and there is no gap between the surrender value and the market value. Some Major Endowment Plans Offered by the Company i.“Unit Linked” and “Unitised With Profits” have a performance factor which is dependent directly on current investment market conditions. With our HDFC Endowment Super. Advantages • This plan provides valuable protection to your family in case you are not around. ensuring the best got your family will need some financial planning. With rising costs. And there is no reason why they should not get the best in future too. The other types of policies .probably a traditional With Profits. In case of your unfortunate demise during the policy term. This Unit Linked Plan also gives you with an outstanding investment opportunity to maximise your savings by providing you a choice of thoroughly researched and selected investments. HDFC Endowment Super You have always given your family the very best. even when you are not around. • You can choose any one of 4 Additional Plan Benefit options depending on your requirement: o o o o Life Option = Death Benefit Extra Life Option = Death Benefit + Accidental Death Benefit Life & Health Option = Death Benefit + Critical Illness Benefit Extra Life & Health Option = Death Benefit + Critical Illness Benefit + Accidental Death Benefit 42 . you can start building your savings today and ensure that your family remains financially independent.
Not just for today. This Unit Linked Plan gives you with an outstanding investment opportunity to maximise your savings by providing you a choice of thoroughly researched and selected investments. Advantages 43 . as per your need • Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act. your priority is to secure the well-being of those who depend on you. 1961 ii. the key to building great maturity values is a low Fund Management Charge (FMC).• This plan gives you Bumper Addition to the fund value at Maturity. You also have a range of convenient auto premium payment options • You can change your investment fund choices in two ways: o Switching: You can move your accumulated funds from one fund to another anytime o Premium Redirection: You can pay your future premiums into a different selection of funds. • In the long term. With our HDFC Endowment Supreme. even when you are not around. HDFC Endowment Supreme As a judicious family man. Half-Yearly or Monthly depending on your convenience.25% per annum (of the fund’s value) • You can choose to pay your premium as either Annually. We have a low FMC of only 1. This plan also gives Bumper Addition to the fund value at Maturity. you can start building your savings today and ensure that your family remains financially independent. but also for the long term. Your fund value will be augmented by addition of Bumper Addition. which is a percentage of your average annualised premium and depends on the policy term chosen.
HDFC Endowment Super Suvidha As a judicious family man. Monthly or Annually. we will pay the Sum Assured and your total fund value to your family. 1961 iii.25% per annum (of the fund’s value) • You can choose to pay your premium as either Half Yearly. We have a low FMC of only 1. Not just for today. In case of your unfortunate demise during the policy term. which 44 . • You can choose any one of the Additional Plan Benefit options depending on your requirement: o o Life Option = Death Benefit Extra Life Option = Death Benefit + Accidental Death Benefit • This plan gives you Bumper Addition to the fund value at Maturity. You also have a range of convenient auto premium payment options • You can change your investment fund choices in two ways: o Switching: You can move your accumulated funds from one fund to another anytime o Premium Redirection: You can pay your future premiums into a different selection of funds. It is a convenient plan. even when you are not around. Your fund value will be augmented by addition of Bumper Addition. as per your need • Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act. With our HDFC Endowment Super Suvidha. the key to building great maturity values is a low Fund Management Charge (FMC). but also for the long term. your priority is to secure the well-being of those who depend on you.• This plan provides valuable protection to your family in case you are not around. you can start building your savings today and ensure that your family remains financially independent. which is a percentage of your average annualised premium • In the long term.
the key to building great maturity values is a low Fund Management Charge (FMC). Advantages • • No need to go for medicals. Your fund value will be augmented by addition of Bumper Addition. you can start building your savings today and ensure that your family remains financially independent. as per your need • Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act. It is a convenient plan. 1961 iv. With our HDFC Endowment Supreme Suvidha. your priority is to secure the well-being of those who depend on you. even when you are not around. This plan also gives Bumper Addition to the fund value at Maturity. This Unit Linked Plan gives you with an outstanding investment opportunity to maximise your savings by providing you a choice of thoroughly researched and selected investments. This plan gives you Bumper Addition to the fund value at Maturity.saves you from the need of going for Medicals. We have a low FMC of only 1. This Unit Linked Plan gives you 45 . which saves you from the need of going for Medicals. which is a percentage of your original annualised premium • In the long term. but also for the long term. HDFC Endowment Supreme Suvidha As a judicious family man. Just filling a Short Medical Questionnaire will do . Not just for today. You also have a range of convenient auto premium payment options • You can change your investment fund choices in two ways: o Switching: You can move your accumulated funds from one fund to another anytime o Premium Redirection: You can pay your future premiums into a different selection of funds.25% per annum (of the fund’s value) • You can choose to pay your premium as either Half Yearly or Annually.
With our HDFC SL Endowment Champion Suvidha you can start building your savings today and ensure that your family remains financially independent.25% per annum (of the fund’s value) • You can choose to pay your premium as either Half Yearly or Annually. Advantages • • No need to go for medicals. which is a percentage of your original annualised premium. We have a low FMC of only 1. as per your need • Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act. This plan gives you Bumper Addition to the fund value at Maturity. You also have a range of convenient auto premium payment options • You can change your investment fund choices in two ways: o Switching: You can move your accumulated funds from one fund to another anytime o Premium Redirection: You can pay your future premiums into a different selection of funds. This plan also gives you Bumper addition to the fund value at Maturity. 46 .with an outstanding investment opportunity to maximise your savings by providing you a choice of thoroughly researched and selected investments. Not just today. 1961 v. This plan also gives Bumper Addition to the fund value at Maturity. the key to building great maturity values is a low Fund Management Charge (FMC). HDFC SL Endowment Champion Suvidha Happiness and secure future is what you want for your loved one. but also for a long term. This Unit Linked Plan gives you twin advantage of maximising your savings along with Insurance. • In the long term. even when you are not around. Just filling a Short Medical Questionnaire will do. Your fund value will be augmented by addition of Bumper Addition.
Advantages 47 . as per your need • Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act. This plan gives you Bumper Addition to the fund value at Maturity. even when you are not around. Just filling a Short Medical Questionnaire will do . the key to building great maturity values is a low Fund Management Charge (FMC). HDFC Endowment Assurance Plan As a judicious family man. your priority is to secure the well-being of those who depend on you. We have a low FMC of only 1. which is a percentage of your original annualised premium • In the long term.25% per annum (of the fund’s value) • You can choose to pay your premium as either Half Yearly or Annually. Not just for today. You also have a range of convenient auto premium payment options • You can change your investment fund choices in two ways: o Switching: You can move your accumulated funds from one fund to another anytime o Premium Redirection: You can pay your future premiums into a different selection of funds.Advantages • • No need to go for medicals. With our HDFC Endowment Assurance Plan. you can start building your savings today and ensure that your family remains financially independent. but also for the long term. 1961 vi. Your fund value will be augmented by addition of Bumper Addition. early into the policy term. This ‘With Profits’ plan is designed to secure your family’s future by giving your family a guaranteed lump sum on maturity or in case of your unfortunate demise.
Half-Yearly or Quarterly depending on your convenience.5 COMPARATIVE STUDY ON ENDOWMENT PLANS 48 . 19613. 80D and 10(10D) of Income Tax Act.• Ideal way to secure your long-term financial goals and your family’s financial independence by giving a lump sum payment (basic Sum Assured plus any Bonus Additions) on survival up to Maturity date • Provides invaluable protection to your family by way of lump sum payment in case of unfortunate demise within policy term • Gives you the flexibility to customise your policy according to your needs by adding any one of the 4 benefit options available • You can choose to pay your premium as either Annually. You also have a range of convenient auto premium payment options • Tax benefits under sections 80C.
insurance element to have been sold to 2. . Unit prices are published on a regular basis and the encashment value of the policy is the current value of the units. Unit-linked endowments are investments where the premium is invested in units of a unitised insurance fund. The main purpose of a low cost endowment has been for endowment mortgages to pay off interest only mortgage at maturity or earlier death in favour of full endowment with the required premium would be 49 Investors will pay more than the surrender value because the policy has greater value if it is kept in force than if it is terminated early. Traded endowment policies (TEPs) or second hand endowment policies (SHEPs) are traditional with-profits endowments that a new owner part way through their term.SNO. A low cost endowment is a combination of: an endowment where an estimated future growth rate will meet a target amount and a decreasing life ensure that the target amount will be paid out as a minimum if death occurs (or a critical illness is diagnosed if included). Unit-linked endowment Low cost endowment (LCE) Traded endowments 1.
much higher. DATA ANALYSIS AND INTERPRETATION 50 .
How do you get the awareness of Insurance Companies? a) Advertisement ( ) b) Agents ( ) c) Seminar ( ) d) Work shops ( ) AWARENESS ADVERTISEMENT AGENTS SEMINAR WORKSHOP NUMBER OF RESPONSE 20 30 15 35 51 .Ques1. Are insurance companies reliable for Investment? a) Yes ( ) b) No ( ) Answer YES NO Number of Respondents 70 30 70 60 50 40 30 20 10 0 yes no Interpretation: The questionnaire was conducted on almost all the sections of the society so as to get complete picture of the analysis but not on the lower class because they are never concerned with the investments or savings Ques2.
Do you have an insurance policy? o Yes o No 52 .3 5 3 0 2 5 2 0 1 5 1 0 5 0 A ERTIS DV EMENT A GENT S EMINA RS WO S P RK HO Interpretation: The questionnaire was conducted mainly on the people who are much interested in private sector because HDFC Standard Life Insurance Company is also a private life insurance company. Ques3. .
Do you know about HDFC Standard Life Insurance Company Limited? o Yes o No Answer Yes No 53 Number of Respondents 75 25 . Ques4.Answer Yes No Number of Respondents 85 15 90 80 70 60 50 40 30 20 10 0 yes no Interpretation: The questionnaire was conducted mainly on the people who are insured because only those people may be knowing much about the insurance companies.
80 70 60 50 40 30 20 10 0 yes no Interpretation: : The questionnaire was conducted mainly on the people may be knowing much about the HDFC Standard Life Insurance Company Limited Ques5. Were you given advice to take out the endowment policy? o YES o NO 54 .
How much would you like to invest in endowment insurance policy? a) 5-10% ( ) b) 10-15% ( ) c) 15-20% ( ) d) Above 20% ( ) Answer 5-10% 10-15% Number of Respondents 20 30 55 . Ques6.Answer YES NO Number of Respondents 60 40 60 50 40 30 20 10 0 yes no . Interpretation: The questionnaire was conducted much on the male section of the society because they are the one who are interested in investment but to get a complete view of society some of the females were also considered to answer the questionnaire.
15-20% Above 20% 15 35 35 30 25 20 15 10 5 0 5 % -10 1 -1 0 5% 1 -2 5 0% above 2 % 0 Interpretation: As seen from the graph the questionnaire was conducted much on the people like to invest in endowment insurance policy are above 20% but the percentage of respondents from other companies is also very good Ques7. Which company is better in your view in private sector? o HDFC Standard Life Insurance Company o ICICI Prudential Life Insurance Company o Reliance Life Insurance Company o Others Life Insurance Companies HDFC Standard Life Insurance Company ICICI Prudential Life Insurance Company Reliance Life Insurance Company 56 Number of Respondents 60 15 10 .
Ques8.Others 15 60 50 40 30 20 10 0 HDF S IC C L IC I IC REL NC IA E O THERS Interpretation: As seen from the graph the questionnaire was conducted much on the people who are in favor of HDFC Standard Life Insurance Company Limited so as we can know that which of the features of the company attracts them but people in favor of other companies were also considered so as to get the current status of the company in the market. Which type of plan do you prefer the most? o Endowment Plans o Term Plans o Others Type of Plans Endowment Plans Term Plans Others Number of Respondents 65 25 10 57 .
Preference for Type of Plan
Endowment Plans Term Plans Others 65
Interpretation: The questionnaire was conducted on the persons who are much willing towards the endowment plans rather than any other plan as they may be knowing better about the various pros and cons with such plans.
Ques9. How do you rate the endowment plans of HDFC Standard Life Insurance Company? o Excellent o Very Good o Good o Satisfactory o Poor Ratings Excellent Very Good Good Satisfactory Poor 58 Number of Respondents 30 35 20 8 7
Ratings for Insurance Plans of the Company
40 35 30 25 20 15 10 5 0 Excellent Very Good Good Satisfactory Poor 8 7 30 35
Number of Respondents
Interpretation: As seen from the graph much of the people are satisfied with the plans provided by the company but the ratings differ.
Ques10. From which company have you bought the endowment plan? o HDFC SLIC o Reliance o Others Company HDFC SLIC Reliance Others Number of Respondents 55 35 10
Preference of Company
HDFC SLIC Reliance 35 55 Others
Interpretation: As seen from the graph much of the respondents have bought term plans from HDFC SLIC but the percentage of respondents buying from other companies is also very good.
Ques11. Which company’s endowment plans assures a complete life cover for the specified period? o HDFC SLIC o Reliance o Others Company HDFC SLIC Reliance Others Number of Respondents 55 20 25
Which company’s endowment plans are better? o HDFC SLIC o Reliance o Other Company HDFC SLIC Reliance Others Number of Respondents 52 28 20 61 .Attitude towards Endowment Plans 25 HDFC SLIC Reliance 55 20 Others Interpretation: As seen from the graph much of the respondents think that the endowment plans provided by HDFC SLIC provides a complete life cove for a certain period. Ques12.
Which company pays all the compensation on time? o HDFC SLIC o Reliance o Others Company HDFC SLIC Reliance Others Number of Respondents 49 31 20 62 .Attitude towards Endowment Plans 20 HDFC SLIC Reliance 52 28 Others Interpretation: As seen from the graph much of the respondents think that the endowment plans provided by HDFC SLIC are better in comparison to other companies. Ques13.
and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis. collecting. organizing and evaluating data. formulating hypothesis or suggested solutions. 4.Attitude towards Payment of Com pensation 20 49 HDFC SLIC Reliance Others 31 Interpretation: As seen from the graph much of the respondents think that HDFC SLIC pays all the compensation well on time in comparison to other companies.1 RESEARCH OBJECTIVES 63 . the search for Knowledge through Objective and Systematic method of finding solutions to a problem is Research. making deductions and reaching conclusions. RESEARCH METHODOLOGY Research comprise defining and redefining problems. In short.
To study in brief about the endowment plans provided by other companies and then compare it with the endowment plans provided by HDFC SLIC. This is the first and the most important part of the Research Methodology.2 RESEARCH DESIGN Exploratory Research Designed to generate basic knowledge. The primary objective of my research is to do a comparative study on endowment plans of HDFC SLIC. and/or define alternatives for addressing research objectives. To study the general profile of the organization and to study its various products.OBJECTIVE means the purpose for which the research has been conducted. To study the market position of the company by analyzing the market. 4. We have to clearly define the objective of the project to be made. Descriptive research Descriptive research includes Surveys and fact-finding enquiries of different kinds. uncover information needs. The major purpose of descriptive research is description of the state of affairs. as it exists as 64 . To study the customers preference towards the insurance sector.A very flexible. clarify relevant issues uncover variables associated with a problem. open-ended process. To study in complete detail about the endowment plans. Other secondary objectives are as follows: • • • • • • • To study the insurance sector as a whole. To study the functioning of insurance companies.
The main characteristic of this method is that the researcher has no control over the variables. For the collection of primary data this was the only method used. It can be Closed Ended of Open Ended 65 . Secondary Data The first part is a study of the insurance company.A questionnaire consists of a set of questions presented to respondent for their answers. This secondary information has been sourced from the internet and from business related magazines and newspapers. he can only report what has happened or what is happening.4 QUESTIONNAIRE DESIGN / FORMULATION Questionnaires: . The reason I used this method is because a need was felt for the free influx of information about the products. 4.3 DATA SOURCES This project consists of two parts:Primary Data The second part of the study has been done using an exploratory research process and a structured questionnaire was developed for this purpose. Also this method allowed the use of skills gained in class. Most practical in marketing to talk about associations or impact of one variable on another Descriptive research 4. HDFC Standard Life Insurance using secondary data sources.the present. Causal Research Designed to provide information on potential cause-and-effect relationships.
Pre-specify all the possible answers & are easy to Interpret and Tabulate. TYPES OF QUESTIONS USED IN THIS PROJECT Close ended Questions To know the choice of the people regarding various matters. Dichotomous Questions Which has only two answers “Yes” or “No”.Allows respondents to answer in their own words & are difficult to Interpret and Tabulate. This is done to know the choice of the customers regarding different matters 4. Sample Extent North Delhi Time Frame 8 weeks Sampling Technique Used 66 . Close Ended: .Open Ended: . Multiple Choice Questions Where respondent is offered more than two choices.5 SAMPLE DESIGN The population considered for the purpose of the survey was people residing in Delhi and the National Capital Region (NCR).
1 FINDINGS OF THE RESEARCH • • • • Insurance sector is the most booming sector in India now-a-days. HDFC is one of the oldest private insurance company in India.Since the information required was of a very technical nature and also looking at the scope of the project and the extent of the target segment. 4. Response of customers could be biased.6 LIMITATIONS OF THE RESEARCH: • The only limitation in this survey was that I could not conduct a survey on a big scale. This was done keeping in mind the time constraints and the fact that I felt that this number would be enough to serve the information needs required to show the trends. HDFC SLIC is growing its network day by day at a very large scale. FINDINGS 5. • Most of the contents collected was difficult to understand because it was new for me to work in this field. The insurance sector helps in increasing the employment opportunities in India. due to the time constraint. • • It was tricky and time consuming to understand the mysteries of marketing. the sampling technique employed was Judgmental Sampling. Sample Size I have restricted the sample size to 100 respondents. I administered the questionnaires. 67 .
Many of the people are much satisfied with the plans of HDFC Standard Life Insurance Company. Not much of the respondents are willing towards endowment plans as it only covers the Life for a specified period and if the person dies within that period the family will not be getting any payment and some persons are concerned about their family after them. The endowment plans provided by the company provides much better benefits when compared with other the endowment plans provided by other companies. The endowment plans provided by the company are very much flexible and so can be converted easily according to the needs of the customers whenever they want so.1 RECOMMENDATIONS FOR THE ORGANIZATION 68 . • • • The endowment plans provided by the company provides a complete life cover for the insured person for a specified time period. The company provides great benefits to its customers with the endowment plans. Much of the respondents are very much satisfied with the endowment plans provided by the company. The company provides its customers with an option to change or modify their plan according to their needs at any instance whenever they want so. The company provides some endowment plans according to the needs of the customers.• • • • • • • • HDFC SLIC provides its customers with a great variety of products according to their needs and flexibilities. RECOMMENDATIONS 6. The customer feedback towards the plans of the company is quiet good in terms of flexibilities provided by the company.
The company should try to improve its services.• • • • • • • The company should stress much on its marketing strategies and should work upon it a bit more. The company should recruit more and more financial advisors. 69 . The company should also offer some more plans for the middle class of the society. The company should offer some more plans with a combination of both term and endowment plans as people will prefer them more than tem plans and endowment plans alone. The company should promote its endowment plans specially among that segment of the society which wants life coverage.. The company is not using any brand ambassador in its advertisements which can prove to be advantageous for the company.