You are on page 1of 105

A SUMMER TRAINING REPORT

ON

CUSTUMER EXPECTATION FROM INSURANCE POLICY

IN

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF

“MASTER OF BUSINESS ADMINISTRATION”

SUBMITTED BY:

Manoj kumar juyal

Roll No. 0934170017

MBA (3rd SEM)

Session: - 2009-2011

INSTITUTE INSTITUTE OF TECHNOLOGY AND MANAGEMENT

ALIGARH

1
PREFACE

2
PREFACE

This report is a part of my six weeks summer training started from 16 Jun. 2010 till 31th
july 2010 at HDFC Standard Life Insurance Company Limited. I have been appointed
here as a management trainee to get the on job field experience about the marketing and
sales of the all plan of HDFC Standard Life Insurance Company Limited.

3
4
ACKNOWLEDGEMEN
T

ACKNOWLEDGEMENT

5
A successful project can never be prepared by the single effort of the person to whom
project is assigned, but it also demand the help and guardianship of some conversant
person who helped the undersigned actively or passively in the completion of successful
project. In this context as a student of INSTITUTE OF TECHNOLOGY AND
MANAGEMENT ALIGARH. I would first of all like to express my gratitude to Mr.
Deepak Srivastava (Sales Development Manager) for assigning me such a worthwhile
topic “customer expectation from insurance policy”

I am also like to thank to the professors of ITM for there invaluable guidance, keen
interest cooperation inspiration, and of course moral support through my project session.

(MANOJ KUMAR JUYAL)

6
EXECUTIVE
SUMMARY

EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum

growth and potential as compared to the other sectors. Insurance has the maximum

7
growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This

growth potential attracts me to enter in this sector and HDFC Standard Life Insurance

Company Ltd has given me the opportunity to work and get experience in highly

competitive and enhancing sector.

The success story of good market share of different market organizations depends upon

the availability of the product and services near to the customer, which can be distributed

through a distribution channel. In Insurance sector, distribution channel includes only

agents or agency holders of the company. If a company like RELIANCE LIFE

INSURANCE, TATA AIG, and MAX etc has adequate agents in the market they can

capture big market as compared to the other companies.

TABLE OF CONTENTS

1. INTRODUCTION PAGE NO.

8
1.1 ABOUT THE INDUSTRY 11

1.2 RANGE OF PRODUCT AND SERVICES 20

1.3 RULES AND REGULATIONS 22

1.4 COMPANY PROFILE 23

1.5 COMPETITION INFORMATION 59

2. RESEARCH METHODOLOGY 73

3. DATA ANALYSIS AND INTERPRETATION 74

4. CONCLUSIONS AND FINDINGS 84

5. SUGGESTION 86

6. LIMITATION 88

7. BIBLIOGRAPH 90

8. ANNEXURES 91

8.1 SAMPLE QUESTION

9
INTRODUCTION

10
INTRODUCTION

11
12
INSURANCE: THE INDUSTRY SCENARIO

Insurance is one of the oldest known professions in the world economy. The
Indian counterpart is no younger. Life Insurance in its modern form came to India from
England in the year 1818. Oriental Life Insurance Company started by Europeans in

13
Calcutta was the first life insurance company on Indian Soil. All the insurance companies
established during that period were brought up with the purpose of looking after the
needs of European community and Indian natives were not being insured by these
companies. However, later with the efforts of eminent people like Babu Muttylal Seal,
the foreign life insurance companies started insuring Indian lives. But Indian lives were
being treated as sub-standard lives inviting heavy premiums.

The era of change was ushered in by Bombay Mutual Life Assurance Society, the
first Indian life insurance company in the year 1870 that covered Indian lives at normal
rates. Starting as Indian enterprise with highly patriotic motives, insurance companies
came into existence to carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance Company (1896) was also one
of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave
rise to more insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth
in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in
Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay
Life) were some of the companies established during the same period.

In 1994, the committee submitted the report and some of the key recommendations
included:

 Structure

o Government stake in the insurance Companies to be brought down to


50%

14
o Government should take over the holdings of GIC and its subsidiaries
so that these subsidiaries can act as independent corporations.

o All the insurance companies should be given greater freedom to


operate.

 Competition

o Private Companies with a minimum paid up capital of Rs.1bn should


be allowed to enter the industry.

o No Company should deal in both Life and General Insurance through a


single entity.

o Foreign companies may be allowed to enter the industry in


collaboration with the domestic companies.

o Postal Life Insurance should be allowed to operate in the rural market.

o Only one State Level Life Insurance Company should be allowed to


operate in each state.

 Regulatory Body

o The Insurance Act should be changed.

o An Insurance Regulatory body should be set up.

o Controller of Insurance (Currently a part from the Finance Ministry)


should be made independent

 Investments

o Mandatory Investments of LIC Life Fund in government securities to


be reduced from 75% to 50%

o 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)

15
 Customer Service

o LIC should pay interest on delays in payments beyond 30 days

o Insurance companies must be encouraged to set up unit linked pension


plans

o Computerisation of operations and updating of technology to be


carried out in the insurance industry

The committee emphasised that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to competition. But
at the same time, the committee felt the need to exercise caution as any failure on the part
of new players could ruin the public confidence in the industry. Hence, it was decided to
allow competition in a limited way by stipulating the minimum capital requirement of
Rs.100 crores. The committee felt the need to provide greater autonomy to insurance
companies in order to improve their performance and enable them to act as independent
companies with economic motives. For this purpose, it had proposed setting up an
independent regulatory body.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill
in Parliament in December 1999. 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. The other decisions taken simultaneously to
provide the supporting systems to the insurance sector and in particular the life insurance
companies were the launch of the IRDA’s online service for issue and renewal of licenses
to agents.

The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have a trained workforce of insurance agents in place to

16
sell their products. Since being set up as an independent statutory body the IRDA has put
in a framework of globally compatible regulations.

Reforms have marked the entry of many of the global insurance majors into the
Indian market in the form of joint ventures with Indian companies. Some of the key
names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and
Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player
LIC, which has responded to the competition in an admirable fashion by launching new
products and improving service standards. The following are the key winds of change
brought about by privatisation.

Market Expansion: There has been an overall expansion in the market. This has
been possible due to improved awareness levels thanks to the large number of advertising
campaigns launched by all the players. The scope for expansion is still unlimited as
virtually all the players are concentrating on large cities and towns - except by LIC to an
extent there was no significant attempt to tap the rural markets.

Customer Service: Not unexpectedly, this was one area that witnessed the most
significant change with the entry of new players. There is an attempt to bring in
international best practices in service and operational efficiency through use of latest
technologies. Advice and need based selling is emerging through much better trained
sales force and advisors. There is improvement in response and turnaround times in
specific areas such as delivery of first policy receipt, policy document, premium notice,
final maturity payment, settlement of claims etc. However, there is a long way to go and
various customer surveys indicate that the standards are still below customer expectation
levels.

17
Channels of Distribution: Till two years back, the only mode of distribution of life
insurance products was through Agents or Insurance Consultants, as we call them. While
agents continue to be the predominant distribution channel, today a number of innovative
alternative channels are being offered to consumers. Some of them are banc assurance,
brokers, the Internet and direct marketing. Though it is too early to predict, the wide
reach of bank branch network in India could lead to banc assurance emerging as a
significant distribution mechanism.

STRATEGIC ALTERNATIVES IN THE INDIAN INSURANCE MARKET

If one analyses the history of growth of the insurance industry since reforms, it is
marked by all-round growth of all players. More or less all players (including the market
leader LIC) have aggressively recruited and trained advisors, appointed agents, launched
new products, improved customer service standards and revamped/expanded their
distribution networks. If at all there was any major difference between players it was only
in time lag in launching of services. Every player would like the customers to believe that
its service standards are the best or that its agents are the most informed and ethical, but
is debatable whether there are any significant differences. In other words, each company
is trying to be ‘everything to everybody’.

Our argument is that the strategy of being everything to everybody is risky. Some
players justify the above strategy on the basis that the Indian market is huge and it can
accommodate everybody. Still, in a market where it is difficult to distinguish oneself
sufficiently on service or any other parameter to be able to charge a premium, it will lead
to unmitigated price competition to the detriment of all players. One may achieve sales
turnover, but margins and profitability will suffer severely. While there is room for a few

18
scale players with a finger in every pie, it is profitable for other players to focus on
different segments to survive and thrive in a multi-firm open environment. While each
company has to choose its own unique positioning based on its unique strengths some of
the generic positioning alternatives are mentioned below. Needless to say the positioning
choices discussed here are not mutually exclusive and can be overlapping.

 VARIETY-BASED POSITIONING:

This type of positioning is based on varieties in products and services rather than
customer segments. It is a sensible strategy for those companies who have distinctive
advantages or strengths in offering certain products and services. One such example
is Birla Sun life Insurance, which has been placing particular focus on investment-
related products since its launch in India. Through its superior fund management
capabilities, the insurance company can deliver better returns on its investment-linked
products and thereby carve for itself a leadership position in this segment. Then there
is the entire category of pension products which is widely touted to have immense
growth potential in India due to imminent pension reforms. It is possible to achieve
profitable positioning by focusing and excelling in only pension products.

 NEED-BASED POSITIONING:

The insurance needs of customers vary significantly for different groups of


customers. This is the most commonly understood positioning and is based on the
differing needs of different groups of consumers. This can be done successfully if a
company has unique strengths to service a group of customer needs better than others.
However, in India most of the life insurance companies have a wide variety of products
tailored for different customer needs and there is no company focusing on a particular
customer need.

19
An example would be a life insurance company that focuses only on High Net-
worth Individuals (HNIs). The needs of HNIs would be quite different from those of a
general consumer and would require an entirely different marketing mix right from the
type of products offered and the way they are distributed, to the promotion methods
employed.

 ACCESS-BASED POSITIONING:

Positioning of customers can also be done by the way they are accessible. That is
different groups of customers may be accessible in different ways even though they may
have similar needs. Access is typically a function of customer geography or customer
scale. There is excellent opportunity in the insurance industry to employ access-based
positioning by targeting the rural insurance sector. The rural market for life insurance is
very different from the urban market in terms of needs, income levels and distribution
(seasonality, for example), penetration of media and so on. So far except for LIC, no
other player has paid any attention or focus on the rural sector. Contrary to common
perception it is a big opportunity as emphasised repeatedly by such eminent strategists
like C.K. Prahlad. Rural market can be a highly profitable position if one is able to
carefully plan and tailor an entire set of low-cost activities of advertising, distribution,
and product design etc. to successfully exploit the potential.

FIVE LIFE INSURANCE MYTHS

People who choose life insurance policies based on myths about insurance could
end up making a costly decision. It is important to understand which kind of life
insurance is right for you or whether you need insurance at all. Life insurance policies use
legal language and have different names in different companies, which can scare you
from learning about them. So, here are five common life insurance myths to help you
from making the wrong choice.

20
Myth 1: I Am Alive, Therefore I Need Life Insurance

Life insurance protects dependents and guarantees a steady source of income after
their breadwinner's death. Single people without dependents or childless couples who
earn enough to lead a good life need not consider buying insurance. Purchase life
insurance for a child only if you depend on her income. As for retired people, unless you
are insecure that your partner would desert you or if you depend on a pension that would
disappear upon your partner's death then you should get life insurance

Myth 2: I Don't Work So I Don't Need Insurance

Even those without jobs need life insurance. A jobless parent with dependent
children need not buy life insurance, as there's no pay check to replace. However
childcare could cost $10,000 to $30,000 annually. So estimate the amount it would cost
for your family and use that number for your "salary" when calculating life insurance
needs.

Myth 3: Odds Are I Won't Need It, So Why Spend The Money?

Why skip life insurance to save money? The reason why life insurance is cheaper
for younger people to buy is because chances of death low for youths. But life is unsure
and the time of our death is not predetermined therefore do buy life insurance to provide
for your family in case the worst does happen. If right kind of insurance is bought you
could provide enough financial security to your dependents.

Myth 4: If It's More Expensive, It Must Be Worth It

Term insurance is cheaper, better choice for most of us since term life insurance is
"pure" insurance with no investment add-on and guarantees your coverage till the time

21
you pay your premium. Term insurance is specifically for those who want life insurance
for a stipulated duration of time. Level term insurance is probably the best option since
premiums don't increase while you have it. There are various types of Permanent
insurance such as whole life, universal and variable, and more but is seven to eight times
more expensive than term. A permanent insurance policy combines life insurance with an
investment that builds up cash value which you can exploit by borrowing or surrendering
(cashing in) the policy.

Myth 5: It's Such a Hassle to Get Insurance

If you need to change your life insurance, never cancel existing policies until your
new insurance is in place. You should not keep any gaps in your insurance coverage.
Most reputed companies provide online facility to download quotes and application
forms on the Internet. You can easily shop for the best possible rates online and then
consult a trusted agent to purchase the insurance. After contacting an agent or company
they themselves will arrange to collect the medical information they require.

ROLE OF LIFE INSURANCE

Role 1: Life insurance as “Investment”

Insurance is an attractive option for investment. While most people recognize the
risk hedging and tax saving potential of insurance, many are not aware of its advantages
as an investment option as well. Insurance products yield more compared to regular
investment options, and this is besides the added incentives offered by insurers.
INSURANCE is a unique investment avenue that delivers sound returns in addition to
protection.

Role 2: Life insurance as “Risk cover”

First and foremost, insurance is about risk cover and protection – financial
protection, to be more precise – to help outlast life’s unpredictable losses. Designed to
safeguard against losses suffered on account of any unforeseen event, insurance provides

22
you with that unique sense of security that no other form of investment provides. By
buying life insurance, you buy peace of mind and are prepared to face any financial
demand that would hit the family in case of an untimely demise.

Role 3: Life insurance as “Tax planning”

Insurance serves as an excellent tax saving mechanism too. The Government of India has
offered tax incentives to life insurance products in order to facilitate the flow of funds
into productive assets. Under Section 88 of Income Tax Act 1961, an individual is
entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life
of his/her children or adult children. The rebate is deductible from tax payable by the
individual or a Hindu Undivided Family. This rebate is can be availed up to a maximum
of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year,
you can buy anything upwards of Rs 10 lakh in sum assured. (Depending upon the age of
the insured and term of the policy) This means that you get an Rs 12,000 tax benefit. The
rebate is deductible from the tax payable by an individual or a Hindu Undivided Family

RANGE OF PRODUCT AND SERVICES

Group Term Insurance:

HDFC Standard Life Insurance offers a Group Insurance scheme for companies called
'Group Term Insurance'. This product has been designed to offer innovative features and
a high degree of customization.
Gratuity Plan
The HDFC Gratuity Plan is an insurance policy, which offers you, as an employer and
gratuity scheme trustee, a new and flexible way to fund your gratuity liability. The

23
contributions that you decide to invest in this policy will assist you in meeting your
gratuity obligations in a systematic manner
Leave Encashment Plan
The HDFC Leave Encashment Plan is a flexible insurance policy which helps employers
and leave encashment scheme trustees in funding leave encashment obligations without
the employer’s profit and loss account being unexpectedly impacted.
Development Insurance Plan:
This product is well suited for the economically weaker sections of society and caters
specifically to their needs. It makes available life cover at affordable rates.

Protection Plans

• HDFC Term Assurance Plan


• HDFC Loan Cover Term Assurance Plan
• HDFC Home Loan Protection Plan

Children's Plans

• HDFC Children's Plan


• HDFC Unit Linked Young Star II
• HDFC Unit Linked Young Star Plus II
• HDFC Unit Linked Young Star Champion

Retirement Plans

• HDFC Personal Pension Plan


• HDFC Unit Linked Pension II
• HDFC Unit Linked Pension Maxi miser II
• HDFC Immediate Annuity

Savings & Investment Plans

• HDFC Unit Linked Endowment Plus II


• HDFC SimpliLife
• HDFC Unit Linked Endowment II
• HDFC Unit Linked Enhanced Life Protection II
• HDFC Unit Linked Wealth Maxi miser Plus

24
• HDFC Unit Linked Endowment Winner
• HDFC Endowment Assurance Plan
• HDFC Money Back Plan
• HDFC Single Premium Whole of Life Insurance Plan
• HDFC Assurance Plan
• HDFC Savings Assurance Plan

Health Plans

• HDFC Critical Care Plan


• HDFC Surgi Care Plan

Group Plans

• Group Term Insurance Plan


• Group Variable Term Insurance Plan
• Group Unit Linked Plan - Gratuity
• Group Unit Linked Plan - Superannuation
• Group Unit Linked Plan - Leave Encashment

RULES AND REGULATIONS

The Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. 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.

25
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.

The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell
their products.

Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.

COMPANY PROFILE

FORMATION OF COMPANY

26
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private
life insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between HDFC Ltd., India's largest housing finance
institution and Standard Life Assurance Company, Europe's largest mutual life company.
It was the first life insurance company to be granted a certificate of registration by the
IRDA on the 23rd of October 2000.

HDFC

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country. The
corporation has had a series of share issues raising its capital to Rs. 119 crores. The net
worth of the corporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates
through 75 locations throughout the country with its Corporate Headquarters in Mumbai,
India. HDFC also has an international office in Dubai, U.A.E., with service associates in
Kuwait, Oman and Qatar.

STANDARD LIFE

Standard Life is Europe's largest mutual life assurance company. Standard Life,
which has been in the life insurance business for the past 175 years, is a modern company
surviving quite a few changes since selling its first policy in 1825. The company
expanded in the 19th century from its original Edinburgh premises, opening offices in
other towns and acquiring other similar businesses. Standard Life currently has assets

27
exceeding over £70 billion under its management and has the distinction of being
accorded "AAA" rating consequently for the past six years by Standard & Poor.

THE JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted license by the IRDA to operate in life insurance sector. Each of the JV player is
highly rated and been conferred with many awards. HDFC is rated 'AAA' by both
CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and
Standard and Poor’s. These reflect the efficiency with which HDFC and Standard Life
manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively. HDFC
Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is
the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a
stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

Brief Profile of the Board of Directors

Mr. Deepak S. Parekh is the Chairman of the Company. He is also the


Chairman and Director of Housing Development Finance Corporation
Limited (HDFC Limited). He joined HDFC Limited in a senior
management position in 1978. He was inducted as a whole-time director
of HDFC Limited in 1985 and was appointed as its Chairman in 1993.
Mr. Parekh is a Fellow of the Institute of Chartered Accountants
(England & Wales).

28
Mr. Keki M. Mistry joined the Board of Directors of the Company in
December, 2000. He is currently the Vice Chairman and Chief
Executive Officer of HDFC Limited. He joined HDFC Limited in 1981
and became an Executive Director in 1993. He was appointed as its
Managing Director in 2000. Mr. Mistry is a Fellow of the Institute of
Chartered Accountants of India and a member of the Michigan
Association of Certified Public Accountants.

Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She


is a graduate in Law and holds a Master's degree in Economics from
Delhi University. She has been employed with HDFC Limited since
1978 and was appointed as the Executive Director in 2000 and Deputy
Managing Director in 2007. She is responsible for overseeing all aspects
of lending operations of HDFC Limited.

29
Mr. David Nish joined Standard Life on 1 November 2006 as Group
Finance Director and remained in that position until December 2009. He
is appointed as the Executive Europe on 1st January 2010. In 2000 he
was awarded the Scottish Business Awards Finance Director of the Year
and from 2004 to 2005 he served on the Government Employers
Pension Task Force. He is a member of the Institute of Chartered
Accountants of Scotland. He joined the Board of Directors in February
2010.

Mr. Nathan Parnaby is appointed as the Chief Executive, Europe &


Asia of Standard Life in the year 2010. Nathan joined Standard Life in
1982 as Investment Manager, responsible for all UK net funds. He was
appointed a Director of the Standard Life Investments’ board. He is a
Mathematics graduate from Oxford University and the Member of the
Securities Institute. He joined the Board of Directors in December 2009.

Mr. Norman K. Skeoch is currently the Chief Executive in Standard


Life Investments Limited and is responsible for overseeing Investment
Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch
was working with M/s. James Capel & Co. holding the positions of UK
Economist, Chief Economist, Executive Director, Director of Controls
and Strategy HSBS Securities and Managing Director International
30
Equities. He was also responsible for Economic and Investment Strategy
research produced on a worldwide basis. Mr. Skeoch joined the Board
of Directors in November 2005.

Mr. Gautam R. Divan is a practicing Chartered Accountant and is a


Fellow of the Institute of Chartered Accountants of India. Mr. Divan
was the Former Chairman and Managing Committee Member of
Midsnell Group International, an International Association of
Independent Accounting Firms and has authored several papers of
professional interest. Mr. Divan has wide experience in auditing
accounts of large public limited companies and nationalized banks,
financial and taxation planning of individuals and limited companies
and also has substantial experience in structuring overseas investments
to and from India.

Mr. Ranjan Pant is a global Management Consultant advising


CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002
was a Partner & Vice-President at Bain & Company, Inc., Boston,
where he led the worldwide Utility Practice. He was also Director,
Corporate Business Development at General Electric headquarters in
Fairfield, USA. Mr. Pant has an MBA from The Wharton School and
BE (Honors) from Birla Institute of Technology and Sciences.
31
Mr. Ravi Narain is the Managing Director & CEO of National Stock
Exchange of India Limited. Mr. Ravi Narain was a member of the core
team to set-up the Securities & Exchange Board of India (SEBI) and is
also associated with various committees of SEBI and the Reserve Bank
of India (RBI).

Mr. A. K.T. Chari has joined HDFC Standard Life as a Director on


March 10, 2010. Mr. Chari has completed his Electrical Engineering
from Madras University in 1962. He is associated with Infrastructure
Development Finance Company Ltd. (IDFC) for last 11 years. Currently
he is handling project finance for infrastructure projects at IDFC. Prior
to this he was associated with Infrastructure Development Bank of India
(IDBI) from 1975 to 1999.

Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in


May 2007, having been Deputy Chairman since March 2006. He

32
became a director of the Standard Life Assurance Company in July
2003. 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. Gerry held senior positions within the
Department of Health and Social Security and HM Treasury until 1986.
He then spent 13 years with Schroder’s in London, Hong Kong and
New York, and was Vice Chairman of Schroder’s’ worldwide
investment banking activities from 1998 to 1999. He is the Alternate
Director to Mr. David Nish.

Mr. Michael G Connarty is responsible for Standard Life's


investments in life assurance Joint Ventures in India and China. He
holds a degree in Law and MBA. He has worked with Standard Life for
33 years in managerial positions covering a number of fields such as
Pensions law, International Marketing, Operational Management,
Strategy, Risk, Compliance, Company Secretarial and Banking. He has
acted as Project Manager for the start-up project of the Company in
2000. He is the Alternate Director to Mr. Norman K. Skeoch.

Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life.


Before joining HDFC Standard Life, he was the MD and CEO of
Infosys BPO and was also heading an Independent Validation Services
33
unit in Infosys Technologies. He started his career with Bank of
America delivering diverse roles ranging from Head of Technology
Investment Banking for Asia, Regional Finance Head for Wholesale
Banking and Global Markets and Chief Finance Officer of Bank of
America (India). He moved to Credit Lyonnais Securities in 2001 in
Singapore where he headed their investment banking franchise for
South East Asia and structured finance practice for Asia before joining
Infosys BPO in 2005. Mr. Chaudhry completed his Engineering in 1985
from Birla Institute of Technology and Science, Pilani and MBA in
1987 from IIM, Ahmadabad.

Mr. Paresh Parasnis is the Executive Director and Chief Operating


Officer of the company. A fellow of the Institute of Chartered
Accountants of India, he has been associated with the HDFC Group
since 1984. During his 16-year tenure at HDFC Limited, he was
responsible for driving and spearheading several key initiatives. As one
of the founding members of HDFC Standard life, Mr. Parasnis has been
responsible for setting up branches, driving sales and servicing strategy,
leading recruitment, contributing to product launches and performance
management system, overseeing new business and claims settlement,
customer interactions etc.
Brief Profile of the Management Team

34
Mr. Amitabh Chaudhry
Managing Director and Chief Executive Officer

Mr. Amitabh Chaudhry is the Managing Director and Chief Executive Officer of HDFC
SLIC.

Before joining HDFC Standard Life in January 2010, he was the Managing Director and
CEO of Infosys BPO and was also heading an Independent Validation Services unit in
Infosys Technologies. Mr. Chaudhry started his career with Bank of America delivering
diverse roles ranging from Head of Technology Investment Banking for Asia, Regional
Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of
Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore
where he headed their investment banking franchise for South East Asia and structured
finance practice for Asia before joining Infosys BPO in 2005.

Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technology and
Science, Pilani and MBA in 1987 from IIM, Ahmadabad.

35
Mr. Paresh Parasnis
Executive Director and Chief Operating Officer

Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of HDFC
Standard Life.

A fellow of the Institute of Chartered Accountants of India, he has been associated with
the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was
responsible, for driving and spearheading several key initiatives. As one of the founding
members of HDFC Standard life, Mr. Parasnis has been responsible for setting up
branches, driving sales and servicing strategy, leading recruitment, contributing to
product launches and performance management system, overseeing new business and
claims settlement, customer interactions etc.

36
Ms. Vibha Padalkar
Chief Financial Officer

Ms.Vibha Padalkar is the Chief Financial Officer of HDFC Standard Life.

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. 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. Prior to WNS, Vibha was with Colgate
Palmolive India for 7 years, including a short posting to the Group's New York
headquarters.
Ms.Padalkar became a member of the Institute of Chartered Accountants in England and
Wales in 1992, after having completed the last part of her schooling as well as college
education.

Mr. Ashley Rebello


Chief Actuary and Appointed Actuary
Mr. Ashley Rebello is the Chief Actuary and Appointed Actuary of HDFC Standard
Life.

37
He completed his degree in Mathematics at Imperial College, London, before joining
Prudential UK in 1996. During his six years at Prudential he worked in Product
Development and Pricing, Valuation and in the Appointed Actuary's team. Subsequently
he worked as an actuarial consultant at PricewaterhouseCoopers for five years, working
for over 20 life insurance companies on a large variety of assignments in the UK,
Netherlands, Switzerland, Greece and the US. He joined Standard Life in April 2008 and
Immediately move to HDFCSL .

Mr.Vikram Mehta

General Manager, Sales and Marketing

Mr.Vikram Mehta heads the Sales and Marketing function for HDFC Standard Life.

Mr. Mehta joined HDFC Standard Life in February 2009. Before joining HDFC Standard
Life, he was associated with Citibank for 16 years serving various responsibilities
including the Head for Direct Sales - Citibank Credit Cards division in Germany,
Regional Director East - Citibank NA, India, and Acquisitions Head – Credit Cards,
Central and Eastern Europe cluster. Mr. Mehta started his career with Reckitt and
Colman (now Reckitt Benckiser) in 1988, and was associated with the company for 4
years. He has been a part of FMCG and banking industry for over 20 year.

38
Mr. Prasun Gajri

Chief Investment Officer

Mr. Prasun Gajri is the Chief Investment Officer of HDFC Standard Life.

Mr. 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. He joined Tata AIG Life
Insurance Company in October 2001 to start the investment function and stayed there
until April 2009, the last role being that of the Chief Investment Officer.

He holds a PGDM from IIM Ahmadabad and is also a CFA Charter holder.

Head - Marketing, HDFC Standard Life Insurance Co. Ltd.

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is
also a sector which will lead to benefits across the full spectrum, from the individual who
will now have wider choices, to the economy which will see increased savings, to the
infrastructure sector which can look forward to long term funding being available. In an
under-insured economy, newer channels of distribution will have to be utilized to
intensify the reach of insurance both in urban and rural markets. This will create huge
employment opportunities not only within insurance companies but also as agents and
consultants of insurance companies.

Indian Bank enters into a strategic tie-up with HDFC Standard Life Insurance Company
Ltd.
39
INDIAN BANK with over 90 years of standing in the financial market with the
reputation for excellent customer service, has entered into a strategic tie-up with HDFC
Standard Life Insurance Company Ltd., the first in the private sector to receive the
Certificate of Registration for foray into Life Insurance business for distribution of
latter’s insurance products. A Memorandum of understanding has been signed by the
Bank with the Insurance Company on 8th February 2001 to this effect. The Bank has to
its strength 1377 branches spread across the country with ready built infrastructure and
the expertise in marketing financial products. Initially the insurance products will be
marketed through select branches in the South where the Bank has strong presence. The
insurance products from HDFC Standard Life, will be competitive and customer
friendly. The tie-up would benefit the Bank's customers, as they will have wider choice
of life insurance policies at competitive premium.

HDFC Chubb General Insurance Company Limited Starts Operations in India

• To offer multiple non-life insurance products under Auto & Home, Accident &
Health and Commercial Insurance

• Speed and quality of service to be industry benchmarks

Mumbai, October 17, 2002: HDFC Chubb General Insurance Company Limited, a joint
venture between HDFC, India's premier financial services company, and The Chubb
Corporation, leading global non-life insurer, formally launched its operations in Mumbai
today.

Deepak Parekh, Chairman, HDFC Chubb and Dean O'Hare Chairman and CEO, The
Chubb Corporation, accompanied by U.S. Ambassador to India, Robert D Blackwill,
presided over the launch ceremony. Offices in New Delhi, Bangalore and Hyderabad
have also been opened simultaneously.

HDFC Chubb plans to introduce over time three categories of non-life insurance products
in the Indian market:

• Auto & Home (Personal Lines)

40
• Accident & Health - comprising of three products: Group Accident Policy,
Hospital Cash (Accident only) and Business Travel Policy - Accident & Sickness
(Single Trip and Annual Multi Trip)

• Commercial Insurance - products to cover the broad spectrum of the main


commercial classes of property and also Marine and Casualty classes of business

In the medium term, HDFC Chubb also plans to introduce its range of specialty products
in the Executive Protection and Financial Institution areas.

Today it announced the launch of its first product - Motor Insurance. The other products
will be rolled out in phases.

HDFC Chubb has been set up with a capital of Rs. 101 Crores, in which HDFC holds
74% and The Chubb Corporation 26%.

Problem Of The Organization

Here the main problem is to known the level of awareness about life insurance among
those who can afford to buy insurance especially now when a no. of private insurer has
entered the market. The researcher would also like to establish the main reasons being
buying a life insurance policy, to know what type of cover is most preferred by people.

After going through the literature review, the researcher has found out that people still
believe in government insurance policies i.e. LIC policies, even many of them don’t
known about that ICICI is in insurance sector, with prudential which is no. 1 insurance
company of U.K. Also in today’s world when privatization has been given the green
signal the people rely more on Govt. insurance companies than in private and this would
take time when the general awareness would change.

Competition Information

• HDFC Standard Life Insurance Company Ltd.

• Max New York Life Insurance Co. Ltd.

• ICICI Prudential Life Insurance Co. Ltd.

• Om Kotak Mahindra Life Insurance Co. Ltd.

41
• Birla Sun Life Insurance Co. Ltd.

• Tata Aig Life Insurance Co. Ltd.

• SBI Life Insurance Co. Ltd.

• ING Vysya Life Insurance Co. Pvt. Ltd.

• Allianz Bajaj Life Insurance Co. Ltd.

• Metlife India Insurance Co. Pvt. Ltd.

• AMP SANMAR Assurance Co. Ltd.

• Aviva Life Insurance Company Ltd.

HDFC Standard Life - stuck in the standard mould


Venkatachari Jagannathan

10 April 2001
So what is new about your insurance policies? This is the question that dogs not only Mr.
Deepak M. Satwalekar, managing director and chief executive officer, HDFC Standard
Life Insurance, but also other new private life insurers.
One of the arguments advocated for opening up of the insurance sector is that the new
players tying up with foreign insurers would offer innovative products, something that
private insurers have so far not shown.
HDFC Standard Life, a joint venture between India’s leading housing finance institution,
Housing Development Finance Corporation (HDFC) and the UK-based Standard Life
Assurance Company, began its operations by introducing two policies - endowment and
money back – with slight variation from the products that have been in existence for
several decades in this country.
The variation, observers say, is a marketing ploy to make comparisons with big brother
Life Insurance Corporation of India's (LIC) products.
Justifies Mr. Satwalekar, "As per our market survey, it was found that the above were the
two most popular products and we decided to launch them."

42
While that is true, one of the reasons for endowment and money back policies to be more
popular than others is the fact that Life Insurance Corporation of India (LIC) agents
pushed them vigorously. The reason - commission on these products is higher than other
products. As a result the market is not aware about other usual products that are in LIC's
portfolio.
That apart there is no great difference between the premium rates of LIC and of HDFC
Standard Life. According to industry sources, the premium charged by the company for
add-on benefits to its basic cover is slightly higher than that of LIC rates.
What is interesting to note is that HDFC Standard Life is using LIC's mortality table and
has pegged its premium more or less at par with that of the latter. Here again it is to be
recalled that during the run up to the opening up of the sector LIC was castigated for non
revision of its mortality table for decades despite the fact that life expectancy has
increased several times over the years.
Given this situation is it not fair for HDFC Standard Life, as a new entrant, to charge a
lower rate by devising its own mortality table with the help of 175-years old Standard
Life Assurance?
Responding to that Mr. Nick Taket, actuary and general manager (finance) of HDFC
Standard Life remarks, "The premium and the policy returns- bonus on policies- are
inter-linked. Low premium will entail lower returns and vice versa. Hence we decided to
take the second route."
But HDFC Standard Life, according to Mr. Satwalekar, will be able to declare bonus to
its policyholders only after three years when they expect to have valuation surplus (the
difference between assets and liabilities excluding shareholders funds).
In order to overcome this jinx and capture new business, industry sources say that new
companies may declare bonus by transferring funds from shareholders account. And for
this purpose the promoters are expected to infuse additional funds during the initial years.
In fact one of the demands from the new entrants in life insurance is to tax exempt
moneys transferred from shareholders’ funds to valuation surplus account so that they can
declare bonus from the first year of operations.

43
"The essence of regulations is to protect the policyholders’ money. So there is nothing
wrong in transferring money from shareholders’ funds to valuation surplus account,"
justifies Mr. Taket.
Not all agree with this school of thought. "Declaring bonus out of shareholders’ funds is
akin offering premium rebate which is expressly prohibited by the Insurance Act", warns
Mr. R. Ramakrishnan, chairman, Reserve Bank of India's advisory group on insurance
and member, Malhotra Committee on Insurance Reforms.
A bonus declared out of shareholders’ funds would give a misleading impression to the
policyholders about the financial health of the life insurer. As per the Insurance Act,
bonus to policyholders should be declared only out of valuation surplus or free reserves
created out of surplus during the earlier years. All other moneys that are channelled to the
surplus account should be reflected in the revenue account, he asserts.
Be that as it may, HDFC Standard Life, which began with a paid up capital of Rs.163
crore, expects additional funds to the tune of Rs.200 - Rs. 300 crore from the promoters
over a period of three years.
"Life insurance is a strange business. The more business one underwrites the more money
one needs for provisioning and to meet the solvency norms," says Mr. Satwalekar. The
company will not be making any profits for the first five years, he adds.
Meanwhile come July, HDFC Standard Life will be launching its pension
product/annuity policy and unit linked insurance product. The company also plans to
launch a mortgage redemption policy that is similar to LIC Housing Finance and LIC
scheme.
Under this scheme HDFC housing loan borrowers would be asked to take out a life
insurance policy. While the premium will take care of the debt, the borrower would have
to service only the interest component. The insurance company is expected to rake in
sizeable business as considering its parent company’s loan disbursement of Rs. 4,492
crore (fiscal 2000).
This is set to increase further given that HDFC has taken over Hometrust Housing
Finance, besides taking a 28 per cent stake in Gruh Finance Ltd, a company floated with
cement major, Gujarat Ambuja Cement.

44
Through a network of 200 financial consultants, HDFC Standard Life has already sold
around 6,000 out of targeted 25,000 policies. In order to fulfil its licensing norms of
doing stipulated rural business the company is tying up with NGO's.
The other marketing channel that the company will be using is the banks and corporates.
The company has signed an agreement with Indian Bank and Srei International Finance
for the purpose.
According to Mr. Taket, the company hopes to earn around Rs. 13 crore during the first
year and also enrol around 2,500 agents, or financial consultants as the company would
like to term them.
The area where the company largely differs with that of LIC is in its target market
segment. According to Mr. Satwalekar, the company's target segment is the people in the
age group of 20-59 years whereas for LIC the segment is those who are between 15-59
years of age.
With three offices functioning now - Mumbai, Delhi and Chennai- HDFC Standard Life
according to Mr. Pankaj Seith, head - marketing, plans to open branches in 18 more
cities.
In the final count, the launch of Life Insurance Company fills the gap in the entire gamut
of financial services offered by HDFC group. What HDFC still lacks is a general
insurance outfit which, according to Mr. Parekh, chairman of HDFC, may happen by this
December since the financial institution is talking to some overseas general insurers for a
possible collaboration.

45
HDFC STANDARD LIFE INSURANCE (New business)

The first year premium income increased by over 58% from Rs. 1,026.18 crores
in the previous year to Rs.1, 624.23 crores in the current year. The cumulative Sum
Assured in respect of policies issued increased fromRs.47,730.40 crores as at 31st March,
2006 to Rs.67,192.97 crores as at 31st March, 2007.During the year, the company
introduced a revised version of the Group as well as Individual Unit Linked Plans to
conform to the new guidelines issued by the IRDA. The company now has a portfolio of
21 retail and 6group products, along with five optional rider benefits catering to the
savings, investment, protection and retirement needs of the customer. Most retail
products are offered on both, the conventional and unit linked platforms.

The Endeavour of the sales force is to help customers assess their financial and
insurance needs and then offer them an appropriately customized solution through the
combination of one or more riders together with the basic plan. As the age profile of our
customers is relatively young, the company has made a conscious effort to offer them
long term policies, with adequate life cover. We believe that in most cases a regular
premium paying policy would be in the interest of the policyholder- 80% of the policies
written this year are regular premium policies.

The company has significantly leveraged the’ barbell’ shaped demographic profile of the
population and is one of the biggest providers of

46
i) Retirement solutions for the individual market segment,

ii) Solutions for planning

Children’s financial futures. The market for ‘company retirement plans’ is yet evolving
and is currently very pricing sensitive. The company is a key player in the group business
market. During the year, the company issued over 5,23,000 policies and has covered
more than8,77,000 lives. Distribution

OFFICES

In its drive to deepen and widen the penetration in the market, the company
opened an

Additional 107 offices during the year, taking the total to 276 across 28 regions. In
addition the company also adopted the Hub and Spoke model and opened 162 spokes
during the year. Through the network of these offices the Company’s Financial
Consultants, Corporate Agents and Brokers are able to service Customers in almost 700
cities and towns across the country.

FINANCIAL CONSULTANTS

The Company’s distribution strategy continues to lay strong emphasis on the


development of the agency channel. The number of licensed Financial Consultants
appointed by the company increased from over 33,000 in the previous year to over
74,000 in the current year, with a large part of the increase happening in the latter part of
the year. This positions us well to take advantage of a larger trained sales force in the
coming year. The company provides extensive and thorough training, to not only Comply
with the regulatory requirements, but also to equip the financial consultants to
Appropriately assess the customer’s insurance needs. The ‘needs based analysis’

47
approach Adopted by our sales force has resulted in a significant increase in the average
premium,

Even beyond the limits of tax benefits available

CORPORATE AGENTS

Simultaneously the company took advantage of the interest in distributing


insurance

Products that was evinced by banks and other corporate agents. This channel has yielded

good results and accounts for over 43% of all first year premia collected during the year.

RURAL & SOCIAL SECTOR OBLIGATIONS

Under the IRDA (Obligations of Insurers to Rural Social Sectors) Regulations,


2000, an

insurer is required to meet the prescribed obligations pertaining to rural and social
sectors.

The company has focused its attention in a few rural areas and has seen gratifying results.

As against a regulatory requirement of writing 18% of all policies in rural areas, the
company has issued over 1,21,000 policies accounting for more than 23% of all policies
issued during the year. Two of our financial consultants operating exclusively in rural
areas have also qualified for the internationally recognized Million Dollar Round Table
(MDRT) club. In addition, during the current financial year, the company has covered
27,284 lives under the social sector category, as against the requirement of 25,000 lives.

48
SERVICING THE CUSTOMER

During the year, the company has established additional touch points for
rendering effective and efficient customer service. The customer can now visit our
offices, call the Service Helpline, send an email, access our service through the web
portal or through the Financial Consultants. Premium payments can be made easily using
options like the direct debit facility (through the Electronic Clearing System) as also
through net banking that has been enabled

CAPITAL

During the year, the company raised the paid-up equity share capital from Rs. 620
crores

To Over Rs. 801 crores. Further the company also enhanced its authorized capital from
Rs. 620 Crores to Rs. 1,500 crores. The shares subscribed to by Standard Life Assurance

Companies are yet to be allotted and are awaiting approval from IRDA since Standard

Life Assurance Company had demutualised during the year

INFRASTRUCTURE

During the year, the Company has invested in additional infrastructure capacity
and human

Capital, in terms of offices, technology, staff, financial consultants, in order to be well

Positioned to increase the growth momentum in the year ahead.

The company stepped up the recruitment programme in the latter part of the year in
preparation for the next year. Many of the newly recruited sales employees will become
fully productive over the coming year.

49
HUMAN RESOURCE

The company had 8,457 employees as of March 31, 2007 as compared to 3,043
Employees as of March 31, 2006. Under the provisions of Section 217 (2A) of the
Companies Act, 1956 and the rules framed there under, the names and other particulars of
employees are set out in the annexed to this Report.

TECHNOLOGY

The company has been investing in technology to ensure efficient processing of


business and to be in a position to offer value added services to customers. By
networking its branches across the country and setting up a second processing center in
Chennai, the company has taken effective steps towards ensuring Business Continuity.
Their investments in workflow and imaging technology through best of breed solutions
have helped it manage increasing volumes without affecting service standards. As a
result, the company, in the last year, has been awarded the “Intelligent Enterprise” Award
by the Express Computer Magazine – Part of the Indian Express Group. The company
has also used the internet effectively to service both policyholders and its agency force.

50
TRAINING

Employee training is an integral part of our business strategy. The company


continues to

invest heavily into the development of its manpower resources. This is an ongoing
activity

with investments being made to reap benefits in the years to come. During the year, a
large scale training campaign was carried out covering the

EMPLOYEES

Sales and operations, Financial consultants and alternate channel Partners and
their associates on the Compliance necessitated by the Guidelines on Anti Money
Laundering mandated by the IRDA. Risk Management Policy The company has a Risk
Management policy. This involved risk identification, impact evaluation and mitigant
identification exercise. A review mechanism has also been put in place to track the
movement of various risks, both at the unit level and at the corporate level. Regular
updates in this regard will be placed before the Audit Committee of Directors and the
board of directors. Particulars Regarding Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Expenditure Since the company does not
carry out any manufacturing activity and has no dealings in foreign exchange, the
particulars in the Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988 are not applicable. Dividend As the company has not earned
profits, the directors do not recommend any dividend.

51
ADVERTISEMENT AND SALES PROMOTION

Film opens in the compound of a


house. Father is checking something Daughter: “Dad”. Father: “Bolo”
inside the bonnet of an old small car. Daughter: “Nayi car lene mein hee
His daughter, around 27-28 years old, bhalaai hai.”
is working on a lap top next to him Dad nods in agreement without
looking up. Dad: “Hmmm…”

Daughter continues affirmatively as Dad looks at her and asks.


she signs on a cheque. Dad: “Huh, Badi kyon?”
Daughter: “Aur wo bhi badi wali.”

52
Daughter, walks towards him with Dad goes back to checking the engine
swinging hand in air and says. and says in a light hearted tone.
Daughter: “Kyonki Toolika Sharma Dad: “Aur Extra paise dad dega kya?”
chahti hai uske dad style se travel Daughter replies firmly: “Nahi. Mere dad
kare.” ki beti.”

And hands him the cheque. Dad looks Daughter: “Relax dad, plan kiya.”
at the cheque and questions. Dad doesn’t know what to say: “Par...”
Dad (seriously): “Itne paise aaye
kahaan se?”

53
Dad doesn’t know what to say as he
Mother enters with tea. She senses
looks at the cheque.
something serious and questions
Daughter pleads: “Please…dad”
them.
Mother: “Aree Kya hua?”

Father looks at her and says Super: Unit Linked Savings Plans
emotionally. MVO: “Unit Linked Savings Plans
Dad: “Car badi ho gayi, aur beti bhi.” from HDFC Standard Life. zimmedari
Daughter smiles with pride. nibhao, Aaj bhi kal bhi ”

Father daughter are sitting.


MVO: “Sar Utha Ke Jiyo.”

54
BOARD MEMBERS

Brief profile of the Board of Directors

 Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive
Chairman of Housing Development Finance Corporation Limited (HDFC
Limited). He joined HDFC Limited in a senior management position in 1978. He
was inducted as a whole-time director of HDFC Limited in 1985 and was
appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of
HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants
(England & Wales).
 Mr. Keki M Mistry joined the Board of Directors of the Company in December,
2000. He is currently the Managing Director of HDFC Limited. He joined HDFC
Limited in 1981 and became an Executive Director in 1993. He was appointed as
its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute
of Chartered Accountants of India and a member of the Michigan Association of
Certified Public Accountants.
 Mr. Alexander M Crombie joined the Board of Directors of the Company in
April, 2002. He has been with the Standard Life Group for 34 years holding
various senior management positions. He was appointed as the Group Chief
Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of
the Faculty of Actuaries in Scotland.
 Ms. Marcia D Campbell is currently the Group Operations Director in the
Standard Life group and is responsible for Group Operations, Asia Pacific
Development, Strategy & Planning, Corporate Responsibility and Shared Services
Centre. Ms. Campbell joined the Board of Directors in November 2005.
 Mr. Keith N Skeoch is currently the Chief Executive in Standard Life
Investments Limited and is responsible for overseeing Investment Process &
55
Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with
M/s. James Capel & Co. holding the positions of UK Economist, Chief
Economist, Executive Director, Director of Controls and Strategy HSBS
Securities and Managing Director International Equities. He was also responsible
for Economic and Investment Strategy research produced on a worldwide basis.
Mr. Skeoch joined the Board of Directors in November 2005.
 Mr. Gautam R Divan is a practicing Chartered Accountant and is a Fellow of the
Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman
and Managing Committee Member of Midsnell Group International, an
International Association of Independent Accounting Firms and has authored
several papers of professional interest. Mr. Divan has wide experience in auditing
accounts of large public limited companies and nationalized banks, financial and
taxation planning of individuals and limited companies and also has substantial
experience in structuring overseas investments to and from India.
 Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on
Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-
President at Bain & Company, Inc., Boston, where he led the worldwide Utility
Practice. He was also Director, Corporate Business Development at General
Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton
School and BE (Honours) from Birla Institute of Technology and Sciences.
 Mr. Ravi Narain is the Managing Director & CEO of National Stock
Exchange of India Limited. Mr. Ravi Narain was a member of the core team to
set-up the Securities & Exchange Board of India (SEBI) and is also associated
with various committees of SEBI and the Reserve Bank of India (RBI).
 Mr. Deepak M Satwalekar is the Managing Director and CEO of the
Company since November, 2000. Prior to this, he was the Managing Director of
HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in
Technology from the Indian Institute of Technology, Bombay and a Masters
Degree in Business Administration from The American University, Washington
DC.

56
 Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in
law and holds a Master's degree in economics from Delhi University. She has
been employed with HDFC Limited since 1978 and was appointed as the
Executive Director in 2000. She is responsible for overseeing all aspects of
lending operations of HDFC Limited.

AREAS OF OPERATION

Helping Indians experience the joy of home ownership. The road to success is a tough
and challenging journey in the dark where only obstacles light the path. However,
success on a terrain like this is not without a solution. As we found out nearly three
decades ago, in 1977, the solution for success is customer satisfaction. All you need is the
courage to innovate, the skill to understand your clientele and the desire to give them
your best. Today, nearly three million satisfied customers whose dream we helped
realise, stand testimony to our success. Our objective, from the beginning, has been to
enhance residential housing stock and promote home ownership. Now, our offerings
range from hassle-free home loans and deposit products, to property related services and
a training facility. We also offer specialized financial services to our customer base
through partnerships with some of the best financial institutions worldwide.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalisation of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank

57
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations
as a Scheduled Commercial Bank in January 1995.

HDFC Mutual Fund has been one of the best performing mutual funds in the last few
years. HDFC Asset Management Company Limited (AMC) functions as an Asset
Management company for the HDFC mutual fund.

AMC is a joint venture between housing finance giant HDFC and British investment firm
Standard Life Investments Limited. It conducts the operations of the Mutual Fund and
manages assets of the schemes, including the schemes launched from time to time. As of
Aug 2006, the fund has assets of Rs.25,892 crores under management.

IN 2003, following a decision by the Zurich Insurance Company (ZIC), the Sponsor of
Zurich India Mutual Fund, to divest its asset management business in India, AMC had
entered into an agreement with ZIC to acquire the asset management business.
Consequently, all the schemes of Zurich Mutual Fund in India had been transferred to
HDFC mutual fund and renamed as HDFC schemes.
Here is a list of mutual funds of HDFC which includes Equity Funds, Balanced Funds
and Debt Funds.

HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP
Morgan Partners and their associates, is a leading stock broking company in the country,
serving a diverse customer base of institutional and retail investors.
HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE ,

58
and derivatives in NSE. Our website will support you with the highest standards of
service, convenience and hassle-free trading tools.
Our research team tracks the economy, industries and companies to provide you the latest
information and analysis. Our content offers financial information, analysis, investment
guidance, news & views, and is designed to meet the requirements of everyone from a
beginner to a savvy and well-informed trader.

HDFC Realty is a wholly owned subsidiary of HDFC. We have assisted


individuals in acquiring homes valued at 5000 million rupees.

HDFC is a pioneer housing finance institution in India and with over 30 years in
operations has provided finance to over a million families in India.

We are a team of real estate professionals facilitating Buying, Selling or Leasing


of Residential / Commercial property.

At HDFC Realty, we provide personalized attention to the individuals and


corporates in their process of identifying properties. From understanding the
requirement to organizing the site visits to completion of transaction, we make
every effort to make the process of acquiring a property, hassle free and
convenient.

MARKET SHARE

HDFC Limited.

59
 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. 36,000 Cr.
 As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The
depositor base now stands at around 1 million depositors.
 Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
 Stable and experienced management
 High service standards
 Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
 Presented the ‘Dream Home’ award for the best housing finance provider in 2004
at the third Annual Outlook Money Awards.

Standard Life Group (Standard Life plc and its subsidiaries)

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

60
VISION AND VALUES

“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”.

VALUES THAT WILL BE OBSERVED WHILE WE WORK WITH HDFCSLIC

INTEGRITY

What is it

• Honest and Truthful in every action.

• Transparency

• Stick to principles irrespective of outcome.

• Be just and fair to everyone.

Why

• Integrity is the bedrock on which the company and the expectations of the
customers and employees are built.

• Integrity establishes the credibility of the person defines the character and
empowers one to do justice to the job.

61
• Enables building confidence and trust, achieving transparency and laying a strong
foundation for a binding relationship

• INNOVATION

What is it

• Building a store house of treasures through experiences.

• Looking at every product and process through fresh eyes everyday.

Why

• To exceed customer expectation and maximise customer retention.

• To achieve competitive advantage.

• To promote growth and upgrade standards in the industry.

• To open a world of new possibilities

CUSTOMER CENTRIC

What is it

• Understand his expectations by keeping him as the centre - point

• Listen actively

62
• Understand customer needs and deliver solutions.

• Customer interest always supreme.

• Customer centric

Why

• Reinforce brand loyalty by complete transparency.

• Customer is the source of revenue for the company.

• Customer is the reason for our existence.

• Ensure that customer chooses our company to do business with.

• Customers’ goodwill alone can bring more business and more customers.

• Will contribute to customer retention

PEOPLE CARE

What is it

• Genuinely understanding the people we work with.

• Guiding their development through training and support

• Helping them develop requisite skills to reach their true potential.

• Know them on a personal front.

• Create an environment of trust and openness.

• Respect for the time of others.

63
Why

• People are the most valuable assets of the company.

• Motivate individual to give his / her best.

• Establish a valuable relationship with them to create a joyful working


environment.

• Job satisfaction

TEAM WORK

“One for all and all for one”

What is it

• Whole team takes the ownership of the deliverables

• Consult all involved , understand and arrive at a common objective

• Co-operate and support across departmental boundaries

• Identify strengths and weaknesses accordingly allocate responsibility to achieve


common objectives.

MAJOR COMPETITORS OF HDFC STANDARD LIFE

• Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread
the message of life insurance in the country and mobilise people’s savings for nation-
building activities. LIC with its central office in Mumbai and seven zonal offices at
Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100

64
divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh active
agents spread over the country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius and
United Kingdom. LIC is associated with joint ventures abroad in the field of insurance,
namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C.
Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit
linked life insurance and pension policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while
GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income
grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in
the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).

LIC has even provided insurance cover to five million people living below the poverty
line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95
per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent.
Compounded annual growth rate for Life insurance business has been 19.22 per cent per
annum

• General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company
known as General Insurance Corporation of India (GIC) was formed by the Central
Government in November 1972. With effect from 1 January 1973 the erstwhile 107
Indian and foreign insurers which were operating in the country prior to nationalization,
were grouped into four operating companies, namely, (i) National Insurance Company
Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company
Limited; and (iv) United India Insurance Company Limited. (However, with effect from
Dec'2000, these subsidiaries have been de-linked from the parent company and made as
independent insurance companies). All the above four subsidiaries of GIC operate all
over the country competing with one another and underwriting various classes of general

65
insurance business except for aviation insurance of national airlines and crop insurance
which is handled by the GIC.

Besides the domestic market, the industry is presently operating in 17 countries directly
through branches or agencies and in 14 countries through subsidiary and associate
companies.

LIFE INSURANCE COMPANIES

• Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together
two large forces - Max India Limited, a multi-business corporate, together with New
York Life International, a global expert in life insurance. With their various Products and
Riders, there are more than 400 product combinations to choose from. They have a
national presence with a network of 57 offices in 37 cities across India.

• ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA). The
company has a network of about 56,000 advisors; as well as 7 banc assurance and 150
corporate agent tie-ups.

• Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

66
• Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and
Sun Life financial Services of Canada.

 Tata AIG Life Insurance Company Ltd.

 SBI Life Insurance Company Limited

 ING Vysya Life Insurance Company Private Limited

 Allianz Bajaj Life Insurance Company Ltd.

 Metlife India Insurance Company Pvt. Ltd.

 AMP SANMAR Assurance Company Ltd.

 Dabur CGU Life Insurance Company Pvt. Ltd.

GENERAL INSURANCE

1. Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram
Finance Limited started its operations from March 2001. The company is Head Quartered
at Chennai, and has two Regional Offices, one at Mumbai and another one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and
strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General
Insurance business (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining
26% is held by Allianz, AG, Germany.

3. ICICI Lombard General Insurance Company Limited

67
ICICI Lombard General Insurance Company Limited is a joint venture between ICICI
Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI
Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified
financial corporate engaged in general insurance, reinsurance, insurance claims
management and investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers. ICICI Lombard General Insurance
Company received regulatory approvals to commence general insurance business in
August 2001.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture


of the Murugappa Group & Mitsui Sumitomo.

Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh
policies in its first calendar year of operations. The company has a pan-Indian presence
with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune,
Indore, Ahmadabad, Delhi, Chandigarh, Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the
Tata Group and American International Group, Inc. (AIG). Tata AIG combines the
strength and integrity of the Tata Group with AIG's international expertise and financial
strength. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG
holds the balance 26 per cent stake.

Tata AIG General Insurance Company, which started its operations in India on January
22, 2001, offers the complete range of insurance for automobile, home, personal accident,
travel, energy, marine, property and casualty, as well as several specialized financial
lines.

6. Reliance General Insurance Company Limited.

7. IFFCO Tokyo General Insurance Co. Ltd

68
8. Export Credit Guarantee Corporation Ltd.

9. HDFC-Chubb General Insurance Co. Ltd.

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. The company participated in the Great Places to Work® study for the first time
and ranked first in the insurance category. It ranked 34th on the Top 50 Best Companies
to Work for, in India 2010 list. The company was also awarded for its unique employee
initiative - Mission –in-Genius national quiz. The study has shown that HDFC Standard
Life conscientiously develops employee talent programmes to keep engaging and
motivating its employees. The company provides some unique platforms such as 'Mission
in Genius' national quiz. The management is accessible to all at all times and sincerely
seeks feedback from its employees through programmes such as 'Sparsh', the study said.

The Best Companies to Work in India is a study conducted by the Great Place to Work®
Institute, India in partnership with The Economic Times. The 2010 edition is the seventh
study in India, which received overwhelming response from more than 400 companies,
making it the largest such study in India. And only 50 companies made it to the Best
Companies to Work list!

69
'Young Star Super' Voted 'Product of the Year 2010'

HDFC Standard Life’s Young Star Super has been voted ‘Product of the Year 2010’ in
the 'Insurance' category by more than 30,000 consumers nationwide across 36 markets.
Young Star Super is an unit linked Children Plan with unique benefits such as bumper
additions, double and triple benefits, attractive allocations rates, and seven different
funds.

The consumer study on product innovation in India was conducted by A C Nielsen, the
leading global research firm. Entries were accepted from products that demonstrate
innovation in their product function, design, packaging or process or any other specified
form. 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. Product of the Year is an Internationally Recognised Standard that
celebrates and rewards the best innovations in consumer products and services. The
Product of the Year is selected through an independent consumer survey across the
country in 26 countries for the past 20 years.

70
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.

71
Received Diamond EDGE Award 2009

HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile
workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth and
Excellence (using IT) is an initiative by the ,Network Computing magazine to identify,
recognize, and honor end-user companies in India that have demonstrated the best use of
technology to solve a business problem, improve business competitiveness, and deliver
quantifiable ROI to stakeholders.
Network Computing magazine is part of CMP Technology, which brings more than 100
IT media brands to more than 18 million technology and business decision makers
worldwide

72
Sept, 2008

Received 2008 CIO Bold 100 and CIO Security Awards

HDFC Standard Life has received the 2008 CIO Bold 100 Award. This annual award
recognizes organizations that exemplify the highest level of operational and strategic
excellence in information technology. This year's award theme, ‘The Bold 100,’
recognized those executives and organizations that embraced great risk for the sake of
great reward.

HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO
Security Award aimed at CIOs, whose pioneering implementations have taken their
enterprise security to the next level. This award category identifies innovative and
groundbreaking deployment of technologies aimed at creating a secure business
infrastructure.

73
The company received the 2008 CIO Bold Award for its mobile workforce portal and the
CIO Security Award for its initiatives for a secure computing environment, including
identity management.

May, 2008

Received PCQuest Best IT Implementation Award 2008

March, 2008 HDFC Standard Life 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. Read more about the ‘Consultant Corner’ tool in the
‘HDFCSL's in News’ Section.
HDFC Standard Life has won the PCQuest Best IT Implementation Award for two years
consequently. Last year, the company received the award for Wonders, its path-breaking
implementation of an enterprise-wide workflow system.

Silver Abby at Goafest 2008

HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio
writing craft category at the Goafest 2008 organised by the Advertising Agencies
Association of India (AAAI). The radio commercial ‘Pata nahin chala’ touched several
changes in life in the blink of an eye through an old man’s perspective. The objective was
drive awareness and ask people to invest in a pension plan to live life to the fullest even
after retirement, without compromising on one’s self-respect

March, 2008

Unit Linked Savings Plan Tops Mint Best TV Ads Survey

The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading
private insurance companies in India, has topped Mint’s Top Television Advertisement
survey conducted, for February 2008. HDFC Standard Life’s Unit Linked Savings Plan

74
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, enjoyment, believability, and
claim). The respondents were between 18 and 40 years. Mint’s exclusive report, ‘New
voices in a makeover’ outlines the survey in detail.

February, 2008

Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007

Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received
the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual
Qimpro Awards function. The award celebrates excellence in individual performance and highlights
the quality achievements of extraordinary individuals in an era of global competition and expectations.

January, 2008

Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments

HDFC Standard Life’s advertising slogan honoured as one of ‘60 Glorious Advertising &
Marketing Moments' over the last 60 years in India,’ by 4Ps Business and Marketing
magazine. 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. This was then, 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.

75
Associate Companies

HDFC Limited

HDFC Bank

HDFC Mutual Fund

HDFC Sales

HDFC ERGO General Insurance

76
Other Companies

• HDFC Trustee Company Ltd.


• GRUH Finance Ltd.
• HDFC Developers Ltd.
• HDFC Property Ventures Ltd.
• HDFC Ventures Trustee Company Ltd.
• HDFC Investments Ltd.
• HDFC Holdings Ltd.
• Credit Information Bureau (India) Ltd
• HDFC Securities

77
RESEARCH
METHODOLOGY

78
RESEARCH METHODOLOGY

RESEARCH OBJECTIVE:

 To analyze various demand of customer who wants to invest in insurance.

 To analyze the various ways to enhance the sale of insurances.

METHODOLOGY

 . RESEARCH DESIGN:

The research describes the customers expectations from insurance policy in


HDFCSLIC , which is based on secondary data. Thus it is a descriptive research
design.

The research also carries the analysis of primary data, so it follows the analytical
design.

Hence, the research design is descriptive as well as analytical both

 SAMPLING:

DESIGN: Non-probability and convenience sampling.

SAMPLE SIZE: 100

 DATA COLLECTION:

Sources of Primary data:

79
 QUESTIONAIRE

Sources of Secondary data:

 Internet.

 Conceptual books

DATA
INTERPRETATION
AND ANALYSIS

80
DATA ANALYSIS AND INTERPRETATION

Q1: Do you have insurance policy?

(a) Yes- - 84%

(b) No - 16%

This graph shows the number of people who have the insurance policy are 84% and 16%
have no policy.

81
ANALYSIS: -

Most of the people have the insurance policies.

Q.2: Do you know about HDFC SLIC?

(a) Yes- - 78%

(b) No - 22%

82
ANALYSIS: -

Most of the people are aware about HDFCSLIC and know about the HDFCSLIC.

83
Q.3: How did you come to know about HDFC SLIC?

(a) Advertisement - 76%

(b) Word of Mouth - 14%

(c) Referred by your company / Friend - 10%

ANALYSIS: -

Advertisement by HDFCSLIC is attracting customer more than other things like word of
mouth.

84
Q.4: Do you have an idea about various facility provided by insurance sector?

(a) Yes- - 56%

(b) No - 44%

ANALYSIS: -

More than half of respondent know about the facilities provided by the HDFCSLIC.

85
Q.5: What do you want from an insurance policy?

(a) Life cover- 55%

(b) Medical cover – 12%

(c) More interest – 23%

(d) Others – 10%

86
ANALYSIS: -

Life cover is the main reason for having insurance policy.

Q.6: Which things attract you to more to purchase a insurance policy?

(a) Good plans- 35%

(b) Accessibility- 23%

(c) A trusted name- 22%

(d) Friendly services & responsiveness- 20%

87
ANALYSIS:-

Good plans and its accessibility attract customer more to having insurance policy.

Q.7: In which type of plan you want to invest?

(a) Insurance – 43%

(b) Mutual fund – 33%

88
(c) Others – 24%

ANALYSIS:-

Most of the respondents want to invest in insurance; mutual fund is also an alternative of
investment.

89
Q.8: If you invest then, what are your expectations from company?

(a) Quick service- 40%

(b) More payment choices- 25%

(c) Minimum formalities- 33%

(d) Others- 2%

others
2%

min. formalities quickservice


33% 40%

morepayment
choices
25%

90
ANALYSIS:-

Quick services has 40% so mostly respondents wants quick services ,min. formalities is
also one of the primary choices of respondents.

CONCLUSION
AND

91
FINDINGS

CONCLUSIONS AND FINDINGS

This chapter deals with the concluded aspects of the study carried out on “General
perception about Life Insurance”. The basic objective is for the study is for which study
was carried out has been fulfilled in the earlier chapter, based on the objective interview
schedule was designed. Data collected based on schedule was analyzed and some
findings have emerged.
Major Findings of the Study
Based on the quantitative analysis the major findings of the study have been highlighted
below….

 Most of the respondents have the insurance policies.

 Most of the respondents focus mainly on life cover.

 Most of the respondents are interested in investing more when opportunity


provided by the company.

 Respondents are more interested to invest more in insurance then mutual fund .

 Quick service is the prime expectation of respondents.

92
 Advertisement is the best way to attract prospective customers.

SUGGESTIONS

93
SUGGESTION

 Company should review its policy time to time so the company can change or
modify its plans so the changing needs of customers can be satisfied.

 Company should do a regular research of the customer’s preferences so the


effective measurement can be done.

 Company should appoint more customer relation managers to cover more


customers so the service can be effective and easily available to the customers.

 Company should introduce some attractive insurance policies like more security
cover, more interest.

 There should be less paper work because the paper work is very stressful for the
customer and there is lot of time consumed in the process.

94
95
LIMITATIONS

96
LIMITATIONS

Sample size is 100 because the time constraint.

The customers are large in number; the area of study is very large.

The time required for the study is more than the given time.

The report covers only main activities involved in the insurance sector not the specific
customer demand.

Some respondents are not interested to give complete information.

97
BIBLIOGRAPHY
98
BIBLIOGRAPHY

Internet sites like-

 www.hdfcinsurance.com

 http://www.hdfclife.com/AboutUs/OurManagementTeam.aspx

 http://www.hdfclife.com/AboutUs/AwardsAccloadesNew.aspx

 http://www.hdfclife.com/AboutUs/BoardMembers.aspx

 www.google.com(search engine)

 www.ask.com (search engine)

99
 www.wikipedia.org

Research Methodology by C. R. Kothari.

100
QUESTIONNAIRE

101
QUESTIONNAIRE

1. Name -

2. Address -

3. Contact No: Tel____________ Mob. __________________

4. Date Of Birth 5. Sex: - M/F

6. Marital status- 7. Education qualification: -

8. Employment details_________________________

Q1: Do you have insurance policy?


(a)Yes (b) No

Q.2: Do you know about HDFC SLIC?

(a) Yes (b) No

Q.3: How did you come to know about HDFC SLIC?

(a) Advertisement (b) Word of Mouth (c) Referred by your company /


Friend

Q.4: Do you have an idea about various facility provided by insurance sector?

(a) Yes (b) No

Q.5: what do you want from an insurance policy?

(a) Life cover (b) Medical cover (c) More interest (d) Others – 10%

102
Q.6: which things attract you to more to purchase a insurance policy?

(a) Good plans (b) Accessibility (c) A trusted name (d) Friendly services &
responsiveness- 20%

Q.7: In which type of plan you want to invest?

(a) Insurance (b) Mutual fund (c) Others

Q.8: If you invest then, what are your expectations from company?

(a) Quick services (b) More payment choices (c) Minimum formalities (d)
Others

103
104
105