Contact for more project 09413991847

SUMMER TRAINING PROJECT REPORT

ON
“HDFC STANDARD LIFE INSURANCE"
Submitted to

RAJASTHAN UNIVERSITY, Jaipur

In the partial fulfillment
Of the award of the degree of
BBA (Bachelor of Business Administration)

Project guide:- Submitted by:-

Ms. Mridula Mudgal Gauarv Khandelwal
Sr. Lecturer BBA Part III

Alwar Managemant Studies

North extension road Alwar
IET Groups of institutions
 PREFACE

The liberalization of the Indian insurance sector has been the subject of

much heated debate for some years. The policy makers where in the catch

22 situation wherein for one they wanted competition, development and

growth of this insurance sector which is extremely essential for

channeling the investments in to the infrastructure sector. At the other end

the policy makers had the fears that the insurance premium, which are

substantial, would seep out of the country; and wanted to have a cautious

approach of opening for foreign participation in the sector.

As one of the rare occurrences the entire debate was put on the back

burner and the IRDA saw the day of the light thanks to the maturing

polity emerging consensus among factions of different political parties.

Though some changes and some restrictive clauses as regards to the

foreign participation were included the IRDA has opened the doors for the

private entry into insurance.

Whether the insurer is old or new, private or public, expanding the market

will present multitude of challenges and opportunities. But the key issues,

possible trends, opportunities and challenges that insurance sector will

2
have still remains under the realms of the possibilities and speculation.

What is the likely impact of opening up India’s insurance sector.

The large scale of operations, public sector bureaucracies and

cumbersome procedures hampers nationalized insurers. Therefore,

potential private entrants expect to score in the areas of customer service,

speed and flexibility. They point out that their entry will mean better

products and choice for the consumer. The critics counter that the benefit

will be slim, because new players will concentrate on affluent, urban

customers as foreign banks did until recently. This seems to be a logical

strategy. Start-up costs-such as those of setting up a conventional

distribution network-are large and high-end niches offer better returns.

However, the middle-market segment too has great potential. Since

insurance is a volumes game. Therefore, private insurers would be best

served by a middle-market approach, targeting customer segments that are

currently untapped.

3
 ACKNOWLEDGMENT

I would like to thank my project guide Mr. Pradeep

choaduary, Sales Development Manager HDFC Standard
Life Insurance, Alwar for guiding me through my summer
internship and research project. His encouragement, time
and effort are greatly appreciated.

I would like to thank Ms. Mirdula Mudgal (Sr.LECTUR) for

supporting me during this project and providing me an
opportunity to learn outside the class room. It was a truly
wonderful learning experience.

I would like to dedicate this project to my parents. Without

their help and constant support this project would not have
been possible.

Lastly I would like to thank all the respondents who offered

their opinions and suggestions through the survey that
was conducted by me in Alwar.

DECLARAION
4
I hereby declare that this work entitled “Potential of Life
Insurance Industry in ALWAR Market” is my work carried out
under the guidance of my faculty guide Mr. Pradeep kumar and my
company guide Mr. Jignesh Madhavani. This report neither full nor
in past has ever been submitted for award of any other degree of
either this University or any other University.

Signature of Candidates

Gaurav Khandelwal

Executive Summary

5
In today’s corporate and competitive world, I find that insurance sector has

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

Insurance has the maximum growth rate of 70-80% while as FMCG sector

has maximum 12-15% of growth rate. This growth potential attracts me to

enter in this sector and ING Life Insurance Company Ltd has given me

the opportunity to work and get experience in highly competitive and

enhancing sector.

• The success story of good market share of different market

organizations depends upon the availability of the product and

services near to the customer, which can be distributed through a

distribution channel. In Insurance sector, distribution channel includes

only agents or agency holders of the company. If a company like

RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate

agents in the market they can capture big market as compared to the

other companies.

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

Certificate
Preface

6
 Acknowledgement
Declaration
Executive Summary

Tables of Contents

Sr.No. Particulars Page No.

1 Introduction of insurance 06
2 Profile & Comparison of organizations 13
2.1 HDFC SLIC 14
2.2 Tata AIG LIC 31
2.3 Other Competitors 34
2.4 HDFC Policies 40
3 Objectives of the Study 43
4 Research Methodology 45
5 Result analysis & interpretation 51
6 Conclusions 73
7 Suggestions 75
8 Questionnaire 77
9 Bibliography 80
10 Glossary 82

7
8
 CHAPTER I

INDIAN INSURANCE
INDUSTRY
“AN OVERVIEW”

9
 THE INSURANCE INDUSTRY IN INDIA

AN OVERVIEW

With the largest number of life insurance policies in force

in the world, Insurance happens to be a mega opportunity
in India. It’s a business growing at the rate of 15-20 per
cent annually and presently is of the order of Rs 1560.41
billion (for the financial year 2006 – 2007). Together with
banking services, it adds about 7% to the country’s Gross
Domestic Product (GDP). The gross premium collection is
nearly 2% of GDP and funds available with LIC for
investments are 8% of the GDP.

Even so nearly 65% of the Indian population is without life

insurance cover while health insurance and non-life
insurance continues to be below international standards. A
large part of our population is also subject to weak social
security and pension systems with hardly any old age
income security. This in itself is an indicator that growth
potential for the insurance sector in India is immense.

A well-developed and evolved insurance sector is needed

for economic development as it provides long term funds
for infrastructure development and strengthens the risk
taking ability of individuals. It is estimated that over the
next ten years India would require investments of the

10
order of one trillion US dollars. The Insurance sector, to
some extent, can enable investments in infrastructure
development to sustain the economic growth of the
country. (Source: www.indiacore.com)

HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818

when it was conceived as a means to provide for English
Widows. Interestingly in those days a higher premium was
charged for Indian lives than the non - Indian lives, as
Indian lives were considered more risky to cover. The
Bombay Mutual Life Insurance Society started its business
in 1870. It was the first company to charge the same
premium for both Indian and non-Indian lives.

The Oriental Assurance Company was established in 1880.

The General insurance business in India, on the other
hand, can trace its roots to Triton Insurance Company
Limited, the first general insurance company established
in the year 1850 in Calcutta by the British. Till the end of
the nineteenth century insurance business was almost
entirely in the hands of overseas companies.

Insurance regulation formally began in India with the

passing of the Life Insurance Companies Act of 1912 and
the Provident Fund Act of 1912. Several frauds during the

11
1920's and 1930's sullied insurance business in India. By
1938 there were 176 insurance companies.

The first comprehensive legislation was introduced with

the Insurance Act of 1938 that provided strict State Control
over the insurance business. The insurance business grew
at a faster pace after independence. Indian companies
strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban
phenomenon.

The Government of India in 1956, brought together over

240 private life insurers and provident societies under one
nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born. Nationalization was justified on
the grounds that it would create the much needed funds
for rapid industrialization. This was in conformity with the
Government's chosen path of State led planning and
development.

The non-life insurance business continued to thrive with

the private sector till 1972. Their operations were
restricted to organized trade and industry in large cities.
The general insurance industry was nationalized in 1972.
With this, nearly 107 insurers were amalgamated and
grouped into four companies- National Insurance
Company, New India Assurance Company, Oriental

12
Insurance Company and United India Insurance Company.
These were subsidiaries of the General Insurance
Company (GIC).

KEY MILESTONES

1912: The Indian Life Assurance Companies Act enacted

as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to

enable the government to collect statistical information
about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended by the

Insurance Act with the objective of protecting the interests
of the insuring public.

1956: 245 Indian and foreign insurers along with

provident societies were taken over by the central
government and nationalized. LIC was formed by an Act of
Parliament- LIC Act 1956- with a capital contribution of Rs.
5 crore from the Government of India.

INDUSTRY REFORMS

13
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. Since being set up as an independent
statutory body the IRDA has put in a framework of globally
compatible regulations.

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 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.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN

INDIA

The life insurance industry in India grew by an impressive

47.38%, with premium income at Rs. 1560.41 billion

14
during the fiscal year 2006-2007. Though the total volume
of LIC's business increased in the last fiscal year (2006-
2007) compared to the previous one, its market share
came down from 85.75% to 81.91%.

The 17 private insurers increased their market share from

about 15% to about 19% in a year's time. The figures for
the first two months of the fiscal year 2007-08 also speak
of the growing share of the private insurers. The share of
LIC for this period has further come down to 75 percent,
while the private players have grabbed over 24 percent.

With the opening up of the insurance industry in India

many foreign players have entered the market. The
restriction on these companies is that they are not allowed
to have more than a 26% stake in a company’s ownership.

Since the opening up of the insurance sector in 1999,

foreign investments of Rs. 8.7 billion have poured into the
Indian market and 19 private life insurance companies
have been granted licenses.

Innovative products, smart marketing, and aggressive

distribution have enabled fledgling private insurance
companies to sign up Indian customers faster than anyone
expected. Indians, who had always seen life insurance as a
tax saving device, are now suddenly turning to the private

15
sector and snapping up the new innovative products on
offer. Some of these products include investment plans
with insurance and good returns (unit linked plans), multi –
purpose insurance plans, pension plans, child plans and
money back plans. (www.wikipedia.com)

CHAPTER II

16
 PROFILE OF
ORGANIZATION

2.1 HDFC STANDARD LIFE INSURANCE COMPANY

LIMITED

INTRODUCTION
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 gross premium income for
the year ending March 31, 2007 stood at Rs. 2,856 Crores
and new business premium income at Rs. 1,624 Crores.
The company has covered over 8,77,000 lives year ending
March 31, 2007.

HDFC operates through almost 450 locations throughout

the country with its corporate head quarters in Mumbai,

17
India. HDFC also has an International Office in Dubai, UAE
with service associates in Kuwait, Oman and Qatar. HDFC
is the largest housing company in India for the last 27
years.

SNAPSHOT-I

• Incorporated in 1977 as the first specialized Mortgage

Company in India.
• Almost 90% of initial shareholding in the hands of
domestic institutes and retail investors. Current 77%
of shares held by foreign institutional investors.
• Besides the core business of mortgage HDFC has
evolved into a financial conglomerate with holdings
In:
 HDFC Standard Life insurance Company- HDFC
holds 78.07 %.
 HDFC Asset Management Company – HDFC holds
50.1%
 HDFC Bank- HDFC holds 22.25%.
 Interline Global (Business Process Outsourcing) –
HDFC holds 50%.
 HDFC Chubb General Insurance Company – HDFC
holds 74%.
SNAPSHOT-II

18
 • Loan Approvals Rs. 805 billion.
(up to Dec 2007) (US $ 18.30 bn.)
• Loan Disbursements Rs.669
billion
(up to Dec. 2007) (US $
15.20 bn)
• Housing Units Financed 2.5 million.
• Distribution
 Offices 181
 Outreach Programs 90

KEY PLAYERS

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

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

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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.

GROUP COMPANIES

HDFC Bank: World Class Indian Bank- among the top

private banks in India.

HDFC AMC: One of the top 3 AMCs in India- Preferred

investment manager.

Intelenet Global: BPO services for international customers.

CIBIL: Credit Information Bureau India Limited.

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HDFC Chubb: Upcoming Private companies in the field of

General Insurance.

HDFC Mutual Fund

HDFC reality.com: Helps to search properties in all major

cities in India

HDFC securities

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 kits original Edinburgh premises, opening
offices in other towns and acquitting other similar
businesses.

21
Standard Life Currently has assets exceeding over £ 70
billion under its management and has the distinction of
being accorded “AAA” rating consequently for the six years
by Standard and Poor.

SNAPSHOT

• Founded in 1875, company supporting generation for

last 179 years.
• Currently over 5 million Policy holders benefiting from
the services offered.
• Europe’s largest mutual life insurer.

JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one

of the first companies to be granted license by the IRDA to
operate in life insurance sector. Reach of the JV player is
highly rated and been conferred with many awards. HDFC
is rated ‘AAA ’ by both CRISIL and ICRA. Similarly, Standard
Life is rated ‘AAA’ both by Moody’s and Standard and

22
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% staple and
Standard of as a staple 18.6% Mr. Deepak Satwalekar is
the MD and CEO of the venture.
HDFC Standard Life Insurance Company Ltd. Is one of
India’s leading Private Life Insurance Companies, which
offers a range of individual and group insurance solutions.
It is a joint venture between Housing Development Finance
Corporation Limited (HDFC Ltd.) India’s leading housing
finance institution and the Standard Life Assurance
Company, a leading provider of financial services from the
United Kingdom. Both the promoters are will known for
their ethical dealings and financial strength and are thus
committed to being a long-term player in the life insurance
industry- all important factors to consider when choosing
your insurer.

BUSINESS GROWTH

Track Record so far

The gross premium income of HDFC, for the year ending

23
March 31, 2007 stood at Rs. 2,856 crores and new
business premium income at Rs. 1,624 crores.

The company has covered over 8,77,000 lives year ending

March 31, 2007. Company also declared our 5th
consecutive bonus in as many years for our ‘with profit’
policyholders.

KEY STRENGTH

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

Range of Solutions
HDFC SLIC has a range of individual and group solutions,
which can be easily customized to specific needs. These
group solutions have been designed to offer complete
flexibility combined with a low charging structure.
Strong Ethical Values:
HDFC SLIC is an ethical and Cultural Organization. False
selling or false commitment with the customers is not
allowed.

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Most respected Private Insurance Company
HDFC SLIC was awarded No-1 Private Insurance Company
in 2004 by the World Class Magazine Business World for
Integrity, Innovation and Customer Care.

CORPORATE OBJECTIVE

Vision
'The most successful and admired life insurance
company, which means that we are the most trusted
company, the easiest to deal with, offer the best
value for money, and set the standards in the
industry'.
'The most obvious choice for all'.
Values

.Integrity
.Innovation
.Customer centric
.People Care One for all
.Teamwork
.Joy and Simplicity
PRODUCTS & SERVICES

The right investment strategies won't just help plan for a

more comfortable tomorrow -- they will help you get “Sar
Utha ke Jiyo”. At HDFC SLIC, life insurance plans are
created keeping in mind the changing needs of family. Its
life insurance plans are designed to provide you with
flexible options that meet both protection and savings

25
needs. It offers a full range of transparent, flexible and
value for money products. HDFC SLIC products are modern
and contemporary unitized products that offer unique
customer benefits like flexibility to choose cover levels,
indexation and partial withdrawals. (Source:
www.hdfcslic.com)

PLANS THAT ARE OFFERED BY HDFC STANDARDS

LIFE INSURANCE

Individual Products

Protection Plans
A person can protect his family against the loss of his
income or the burden of a loan in the event of his
unfortunate demise, disability or sickness. These plans
offer valuable peace of mind at a small price. Protection
range includes our Term Assurance Plan & Loan
Cover Term Assurance Plan.

Investment Plans

HDFC SLIC’s Single Premium Whole of Life plan is

well suited to meet long term investment needs. This
provides attractive long term returns through regular
bonuses.

26
Pension Plans
Pension Plans help to secure financial independence
even after retirement. Pension range includes Personal
Pension Plan, Unit Linked Pension, Unit Linked
Pension Plus.

Savings Plans

Savings Plans offer a flexible option to build savings for

future needs such as buying a dream home or fulfilling
your children’s immediate and future needs.

Savings range includes Endowment Assurance Plan,

Unit Linked Endowment, Unit Linked Endowment
Plus, Unit Linked Endowment Plus II, Money Back,
Unit Linked Enhanced Life Protection II, Children's
Plan, Unit Linked Young Star, Unit Linked Young
Star Plus, Unit Linked Young Star Plus II.

Group Products

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of

products for progressive employers who wish to provide

27
the best and most innovative employee benefit solutions
to their employees. It offers different products for different
needs of employers ranging from term insurance plans for
pure protection to voluntary plans such as superannuation
and leave encashment.
HDFC SLIC offers the following group products to esteemed
corporate clients:

Group Term Insurance

Group Variable Term Insurance
Group Unit-Linked Plan

An investment solution that provides funding vehicle

to manage corpuses with Gratuity, Defined Benefit or
Defined Contribution Superannuation or Leave
Encashment schemes of your company
Also suitable for other employee benefit schemes
such as salary saving schemes and wealth
management schemes

Social Product

Development Insurance Plan

Development Insurance plan is an insurance plan which

provides life cover to members of a Development Agency for a
term of one year. On the death of any member of the group

28
insured during the year of cover, a lump sum is paid to those
member beneficiaries to help meet some of the immediate
financial needs following their loss.

29
Eligibility
Members of the development agency and their spouses
with:
- Minimum age at the start of the policy 18 years last
birthday
- Maximum age at the start of policy 50 years last birthday
Employees of the Development Agency are not eligible to join
the group. The group to be covered is only eligible if it
contains more than 500 members.

Premium Payments
The premium to be paid will be quoted per member in the
group and will be the same for all members of the group.
The premium can only be paid by the Development Agency as
a single lump sum that includes all premiums for the group to
be covered. Cover will not start until the premium and all the
member information in our specified format has been
received.
Benefits
On the death of each member covered by the policy during
the year of cover a lump sum equal to the sum assured will be
paid to their beneficiaries or legal heirs. Where the death is as
a result of an accident, an additional lump sum will be paid
equal to half the sum assured. There are no benefits paid at
the end of the year of cover and there is no surrender value
available at any time.

30
 Tax Benefits

INCOME TAX GROSS HOW MUCH HDFC STANDARD

SECTION ANNUAL TAX CAN YOU LIFE PLANS
SALARY SAVE?

Sec. 80C Across All Upto Rs. 33,990 All the life
income Slabs saved on insurance plans.
investment of
Rs. 1,00,000.

Sec. 80 CCC Across all Upto Rs. 33,990 All the pension
income slabs. saved on plans.
Investment of
Rs.1,00,000.

Sec. 80 D Across all Upto Rs. 3,399 All the health

income slabs saved on insurance riders
Investment of available with the
Rs. 10,000. conventional plans.

TOTAL SAVINGS
Rs37,389
POSSIBLE
Rs. 33,990 under Sec. 80C and under Sec. 80 CCC ,
Rs.3,399 under Sec. 80 D, calculated for a male with
gross annual income
exceeding Rs. 10,00,000.

2.2 TATA AIG

31
 TATA AIG LIFE INSURANCE COMPANY LIMITED

Introduction
Tata AIG Life Insurance Company Limited (Tata AIG Life) is
a joint venture company, formed by the Tata Group and
American International Group, Inc. (AIG). Tata AIG Life
combines the Tata Group’s pre-eminent leadership position
in India and AIG’s global presence as the world’s leading
international insurance and financial services organization.
The Tata Group holds 74 per cent stake in the insurance
venture with AIG holding the balance 26 percent. Tata AIG
Life provides insurance solutions to individuals and
corporate. Tata AIG Life Insurance Company was licensed
to operate in India on February 12, 2001 and started
operations on April 1, 2001.

THE TATA GROUP

The Tata Group is one of India's largest and most
respected business conglomerates, with revenues in 2004-
05 of $17.8 billion (Rs. 799,118 million), the equivalent of
about 2.8 per cent of the country's GDP. Tata companies
together employ some 215,000 people. The Group's 32
publicly listed enterprises - among them standout names
such as Tata Steel, Tata Consultancy Services, Tata Motors
and Tata Tea - have a combined market capitalization that
is the highest among Indian business houses in the private

32
sector, and a shareholder base of over 2 million. The Tata
Group has operations in more than 40 countries across six
continents, and its companies export products and
services to 140 nations.

AIG
American International Group, Inc. (AIG), world leaders in
insurance and financial services, is the leading
international insurance organization with operations in
more than 130 countries and jurisdictions. AIG companies
serve commercial, institutional and individual customers
through the most extensive worldwide property-casualty
and life insurance networks of any insurer. In addition, AIG
companies are leading providers of retirement services,
financial services and asset management around the
world. AIG's common stock is listed on the New York Stock
Exchange as well as the stock exchanges in London, Paris,
Switzerland and Tokyo.

Tata AIG has strong brand name and recall factor which
most of its competitors lack in. Other than the public
behemoth Life Insurance Corporation (LIC) of India which
has a major hold in the market share (of approximately
79%), the private players too are having more and more
opportunities to tighten their hold of the market. Of the

33
private players, ICICI Prudential comes first with an almost
4.50% of the market share followed by Tata AIG with about
2.10% of the pie. The private players have everything to
work for, especially with LIC not meeting the needs of its
clientele with respect to the services they need. This
provides a prospect for the private sector players to
increase their share of the market. Companies with a
familiarity such as Tata AIG can especially achieve their
targets due to the brand image that the Tata group has.
(Source: www.tata-aig-life.com)

A recent survey conducted by the Voluntary Organization

in Interest of Consumer Education (VOICE) revealed Tata
AIG Life Insurance Company (Tata AIG Life) as the clear
winner in terms of customer satisfaction in the life
insurance category. This is India's first-ever customer
satisfaction study for the insurance sector.

The survey also revealed that Tata AIG Life had a high
recall as a reputed brand name. The ability to provide
innovative and customer-focused service such as allowing
the maximum grace period for premium payment has not
only further distinguished Tata AIG Life from other life
insurance companies but also appealed to consumers.

34
 2.3 OTHER COMPETITORS
LIFE INSURANCE CORPORATION OF INDIA (LIC)

LIC has an excellent money back policy which provides for

periodic payments of partial survival benefits as long as
the policy holder is alive. 20% of the sum assured is
payable after 5, 10, 15 and 20 years and the balance 40%
is payable at the 20th year along with accrued bonus.
(www.lic.com)

For a 25 years term , 15% of the sum assured becomes

payable after 5,10,15 and 20 years and the balance 40%
plus the accrued bonus becomes payable at the 25th year.
An important feature of these types of policies is that in
the event of the death of the policy holder at any time
within the policy term the death claim comprises of full
sum assured without deducting any of the survival benefit
amounts which have already been paid. The bonus is also
calculated on the full sum assured.

HDFC SLIC does not have a money back policy. It could

offer a money back plan and capture some portion of this

35
market. While marketing insurance products I found that
many customers wanted to purchase these plans.

LIC offers 66 different plans; plans are formulated for

specific occasions – whole life plans, term assurance plans,
money back plan for women, child plans, plans for the
handicapped individuals, endowment assurance plans,
plans for high worth individuals, pension plans, unit linked
plans, special plans, social security schemes – diversified
portfolio of products. HDFC SLIC could diversify its product
portfolio. It could add more plans for high worth individuals
and women.

ICICI PRUDENTIAL
ICICI Prudential is a stiff competitor for HDFC SLIC. The
company is a merger between ICICI Bank which is the
biggest private bank in India and Prudential Plc which is a
global life insurance company.

The company has an investment plan which is market

related – Invest Shield Life. In this plan even if the market
falls, the premium will be returned to investors. It is a
guaranteed plan which ensures the company carefully
invests your money. The stock market performance of ICICI
Prudential is much better than HDFC SLIC. The returns on

36
the growth fund were 46.28% compared to the 42.70%
offered by HDFC SLIC. Customers are attracted by higher
returns and this is a plus point for Prudential.

The company is very well advertised. The advertisements

are showcased in movies, television, newspapers,
magazines, bill boards, radio etc. The company has an
excellent brand ambassador – Mr. Amitabh Bacchan. His
promotion of the company builds trust and faith in the
minds of our people.

However the charges are very high in the plans offered by

ICICI Prudential. It is 35% during the first year, 15% in the
next year and 3% from the third year onwards. Also a
higher minimum premium of Rs. 8000 is charged. Hence
the policies are not accessible to the lower strata of the
society. (Source: www.iciciprulife.com)

BIRLA SUN LIFE

Birla Sun Life Insurance Company Limited is a joint venture

between The Aditya Birla Group, one of the largest
business houses in India and Sun Life Financial Inc., a
leading international financial services organization. The

37
local knowledge of the Aditya Birla Group combined with
the expertise of Sun Life Financial Inc., offers a formidable
protection for your future. (Source: www.birlasunlife.com)

The Aditya Birla Group has a turnover close to Rs. 33000

crores with a market capitalization of Rs. 53400 crores (as
on 31st March 2007). It has over 72000 employees across
all its units worldwide. It is led by its Chairman - Mr. Kumar
Mangalam Birla. Some of the key organizations within the
group are Hindalco and Grasim.

Sun Life Financial Inc. and its partners today have

operations in key markets worldwide, including Canada,
the United States, the United Kingdom, Hong Kong, the
Philippines, Japan, Indonesia, India, China and Bermuda. It
had assets under management of over US$343 billion, as
on 31st March 2007. The company is a leading player in
the life insurance market in Canada.

Being a customer centric company, BSLI has invested

heavily in technology to build world class processing
capabilities. BSLI has covered more than a million lives
since inception and its customer base is spread across
more than 1000 towns and cities in India. All this has
assisted the company in cementing its place amongst the

38
leaders in the industry in terms of new business premium
income. The company has a capital base of 520 crores as
on 31st July, 2007.

Its Flexi Life Line Plan offers life long insurance cover till
the policy holder is 100 years of age. There are
guaranteed returns of 3% p.a. net of policy charges after
every 5 years from the eleventh policy year onwards.
However the charges are very high. The initial charges for
the first year are 65%. Hence the fund value is greatly
reduced.
BAJAJ ALLIANZ
Bajaj Allianz is a joint venture between Allianz AG with
over 110 years of experience in over 70 countries and
Bajaj Auto, a trusted automobile manufacturer for over 55
years in the Indian market. Together they are committed to
offering you financial solutions that provide all the security
you need for your family and yourself. Bajaj Allianz is the
number one private life insurer for the year 2005 – 2006. It
is leading by 78 crores. It has experienced a whopping
growth of 216% in the last financial year.

The company has sold 13, 00,000 policies and is backed

by 550 offices across India. It offers travel insurance,
motor insurance, home insurance, health and corporate

39
insurance. The mortality charges are lower than HDFC
SLIC. The entry age could be zero years which allow even
new born babies to be insured. (Source:
www.bajajallianz.com)

TATA AIG

Tata Aig is a joint venture between the Tata group and

American International Group Inc. In one of the plans the
company offers hospital cash benefit wherein it will pay
Rs. 2500 per day in case of hospitalization and Rs.12.5
lakhs in case the person suffers from any critical illness.
Annual premium is much less (about Rs. 6712) to avail
such a good benefit. Charges are relatively low compared
to HDFC SLIC for some policies.

The company offers high coverage plans at low cost. There

is a plan even for a policy term of 1 year. Your family can
continue to enjoy their current lifestyle even in the case of
something happening to you. These plans are very flexible
and HDFC SLIC could adopt this idea of insuring individuals
for short periods of time. For example; there is a family of
four. The only earning member is the father.

He has just taken a loan from a bank of 20 lakhs to

purchase a new home. He is able to repay the loan with his

40
current salary in 15 years. The problem arises if something
were to happen to him within these fifteen years. Not only
will the family face the emotional and financial loss of their
father but they will also have to repay the home loan or
risk being homeless. (Source: www.tataaig.com)

2.4 HDFC Policies

HDFC Children Plans
As a parent, your priority is your child's future and being able to meet your child's
dreams and aspirations. Today, providing a good education, establishing a
professional career or even a modest wedding is expensive. Costs are increasing
fast. Just imagine how much you'll need when your child takes these important
steps in life!

The HDFC CHILDREN'S PLAN:

Gives valuable protection and invaluable financial support to the child.

Works on Beneficiary concept, where beneficiary is the sole person to receive
the benefit under the policy.
Provides you multiple options for multiple benefits.

41
 Death Benefit(on death of
Plan Option insured parent during the policy Maturity Benefit
term)
Accelerated  Sum Assured + Bonuses  Sum Assured +
Benefit Plan Declared. Bonuses Declared

 The policy terminates

immediately.
Maturity  Your family need not pay any  Sum Assured +
Benefit Plan further premiums and the policy Bonuses Declared
continues.
Double  Sum Assured.  Sum Assured +
Benefit Plan Bonuses Declared
 Your family need not pay any
further premiums.

HDFC Young star Champion Plans

Today, providing a good education, establishing a professional
career or even a modest wedding is expensive. Costs are
increasing fast. Just imagine how much you will need when your
children take these important steps in life.

Plan today to ensure a bright future for your children. Start building
savings today with our HDFC Unit Linked YoungStar Champion so
that your child is able to lead a life of respect and dignity with a
secured financial future.
Feature
The HDFC Unit Linked YoungStar Champion gives you

42
 Valuable protection to your child in case you are not around
An outstanding investment opportunity by providing a choice of
thoroughly researched and selected investments
Bumper Addition to the fund value at maturity
Flexible premium payment options
No need to go for medicals. Just filling the Short Medical
Questionnaire will do
Benefit
The HDFC Unit Linked YoungStar Champion gives you
In case of unfortunate demise of the parent, HDFC Standard Life
will:
Pay the Sum Assured you had chosen to your child.
Continue to pay 50% of the original regular premium towards the
policy

HDFC Pension Plan

The HDFC Unit Linked Pension II is an insurance policy that is

designed to provide a retirement income for life with the freedom to
maximise your investment returns. Stride into your golden years of
retirement with dignity and pride.

Features-

The HDFC Unit Linked Pension II gives you

43
 An outstanding investment opportunity by providing a choice of
thoroughly researched and selected investments
Freedom from tracking the market with Asset Allocation Option
Bumper Addition of 50% of original annualized premium at
vesting and on death
Provides a post retirement income for life
Gives you the flexibility to plan your retirement date
You can choose your premium and the investment strategy. We
will then invest your premium, net of premium allocation charges
according to your chosen investment strategy. At the end of the
policy term, you will receive the accumulated value of your funds,
which will be used to provide your pension income.
The HDFC Unit Linked Pension II benefits you in the following
ways:
Take 1/3rd of the fund value as tax-free cash lump sum and
purchase annuity with the balance amount.
Purchase annuity from HDFC Standard Life or any other insurer

44
 CHAPTER III

OBJECTIVES OF
STUDY

The main of the present study of is accomplishing the following

objective.
 Proper understanding and analysis of life insurance industry.
 To know about brand awareness of HDFC Life Insurance and
customer’s preference about HDFC Life Insurance.
 Conduct market survey on a sample selected from the entire
population and derived opinion on that research.

45
 According the market survey come know about how much
potential of insurance market in our city.
 Training aims at recruiting maximum number of Life
Advisors and to Sell the maximum policies for the company
and bring the business for the company which ever is going at
the particular point of time.
 Along with it I will be gaining the thorough knowledge of
insurance sector. This will give me in more confidence in
marketing products given to me.
 As the HDFC Life Insurance well reputed company in India
it’s great chance for me to observed different products launch
by other competitor companies like ICICI prudential, Bajaj
alliance ,LIC, Max New York life etc. In all, it is to
understand the overall working of the Life insurance sector.
 The objective behind the project is as follows:
 To find the right candidate.
 To about their family background, occupation, social relation,
Qualification, Age.
 Finalize candidates for the IRDA training

46
 CHAPTER IV
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

TITLE:

To determine customer-buying behavior with a focus on market

segmentation for HDFC Standard Life Insurance.

47
• TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying

the buying pattern in the insurance industry with a special focus on

HDFC Standard Life Insurance. The various segments of the markets

divided in terms of Insurance Needs, Age groups , Satisfaction levels

etc will also studied.

OBJECTIVE

Objective One

• To determine reasons behind opting for an insurance.

• To provide the company with information of customer's Insurance

policy if they have any and reasons for opting for that particular

policies.

 To know the most preferred policy.

Objective Two

• To determine customers perception towards private insurance

companies and their expectation form private insurance companies.

48
• To determine the feedback on services provided by any other

insurance agent.

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

• To determine the use of Internet for valuable information and

decision-making process.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A

large number of new players have entered the market and are vying to

gain market share in this rapidly improving market. The study deals with

HDFC Standard Life in focus and the various segments that it caters to.

The study then goes on to evaluate and analyze the findings so as to

present a clear picture of trends in the Insurance sector.

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the responses of 100

people. This data can be explorated to take in the trends across the

49
industry. The significance for the industry lies in studying these trends

that emerge from the study. It is a rapiddly changing and evolving sector.

People are only beginning to wake up to it’s vast possibilities. A study like

this can attempt to guide the future of the industry based on current

trends.

SIGNIFICANE FOR THE RESEARCHER :

To facilitate and provide all the useful informtaion of the studt, the

company, the insurance industry and also provide marketing ways,

methods of HDFC Standard Life insurance.

RESEARCH DESIGN

• NON-PROBABILITY

• EXPLORATORY & DISCRIPTIVE EXPERIMENTAL

RESEARCH

The research is primarily both exploratory as well as descriptive in nature.

The sources of information are both primary & secondary.

50
A well-structured questionnaire was prepared and personal interviews

were conducted to collect the customer’s perception and buying behavior,

through this questionnaire.

SAMPLING METHODOLOGY

SamplingTechnique: Initially, a rough draft was prepared keeping in

mind the objective of the research. A pilot study was done in order to

know the accuracy of the Questionnaire. The final Questionnaire was

arrived only after certain important changes were done. Thus my

sampling came out to be judgmental and continent

Sampling Unit:

The respondents who were asked to fill out questionnaires are the

sampling units. These comprise of employees of MNCs, Govt.

Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of mainly

peoples from different regions of Chennai due to time constraints.

Sampling Area :

51
The area of the research was CHENNAI,TAMILNADU, INDIA.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of CHENNAI

(MADRAS) and does not necessarily shows a pattern applicable to all

of Country.

2. Some respondents were reluctant to divulge personal information

which can affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one

segment can change very quickly. The environmental changes are vital

to be considered in order to assimilate the findings.

52
 CHAPTER V

RESULT ANALYSIS &

INTERPRETATION

ANALYSIS & INTERPRETATION

“A SURVEY ON THE LIFE INSURANCE INDUSTRY IN

INDIA”

53
 AGE GROUP OF SURVEYED RESPONDENTS
TABLE 1:

Age group No. of Respondents

18 - 25 years 127
26 - 35 years 67
36 - 49 years 46
50 - 60 years 24
More than 60 years 6

CHART 1:

Analysis:
From the chart above we find that 47% of the respondents fall in the
age group of 18 – 25 years, 25% fall in the age group of 26 – 35 years
and 17% fall in the age group of 36 – 49 years.
Therefore most of the respondents are relatively young (below 26
years of age). These individuals could be induced to purchase
insurance plans on the basis of its tax saving nature and as an
investment opportunity with high returns.

54
Individuals at this age are trying to buy a house or a car. Insurance
could help them with this and this fact has to be conveyed to the
consumer. As of now many consumers have a false perception that
insurance is only meant for people above the age of 50. Contrary to
popular belief the younger you are the more insurance you need as
your loss will mean a great financial loss to your family, spouse and
children who are financially dependent on you.
GENDER CLASSIFICATION OF SURVEYED RESPONDENTS
TABLE 2:
Particulars No. of Respondents
Male 193
Female 77
CHART 2:

CUSTOMER PROFILE OF SURVEYED RESPONDENTS

TABLE 3:
Customer profile No. of respondents
Student 62
Housewife 5
Working Professional 116
Business 49

55
Self Employed 24
Government service employee 14

CHART 3:

Analysis:
From the chart above it can clearly be seen that 43% of
the respondents are working professionals, 23% are
students and 18% are into business. Therefore the target

56
market would be working individuals in the age group of
18 – 25 years having surplus income, interested in good
returns on their investment and saving income tax.
NO. OF RESPONDENTS WHO HAVE LIFE INSURANCE
POLICY IN THEIR NAME
TABLE 4:
Person who have life insurance
policy
Yes 103
No 167

CHART 4:

ANALYSIS:
This graph shows that out of total 270 respondents only
103 or 38% respondents have life insurance policy in their
name. Rest all don’t have a single policy in their name. So
there is a very big scope for life insurance companies to

57
 cover these people. So in future business of life insurace
will gro further.

MARKET SHARE OF LIFE INSURANCE COMPANIES

TABLE 5:

LIFE INSURER NUMBER OF POLICIES

HDFC STANDARD LIFE 4

BIRLA SUN LIFE 3

AVIVA LIFE INSURANCE 6

BAJAJ ALLIANZ 7

LIC 55

TATA AIG 6

ICICI PRUDENTIAL 12

ING VYSYA 6

BHARTI AXA 2

OTHERS 2
CHART 5:

58
Analysis:
In India, the largest life insurance company is Life
Insurance Corporation of India. It has been in existence in
India since 1956 and is completely owned by the
Government of India. Today the organization has grown to
2048 offices serving 18 crore policies and has a corpus of
over 340000 crore INR.

59
 ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE
INSURANCE

TABLE 6:

Premium paid (p.a.) No. of respondents

Rs. 5000 - Rs. 10000 40
Rs. 10001 - Rs. 15000 26
Rs. 15001 - Rs. 24900 18
Rs. 25000 - Rs. 50000 10
Rs. 50001 - Rs. 60000 4
Rs.60001 - Rs. 80000 2
Rs. 80001 - Rs. 100000 3

CHART 6:
ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE
INSURANCE

60
 Analysis:
From the chart above we find that, 39% of the respondents
surveyed pay an annual premium less than Rs. 10001
towards life insurance. 25% of the respondents pay an
annual premium less than Rs. 15001 and 17% pay an
annual premium less than Rs. 25000. Hence we can safely
say that HDFC SLIC would be able to capture the market
better if it introduced products/plans where the minimum
premium starts at Rs. 5000 per annum.
Only 19% of the respondents pay more than Rs. 25000 as
premium and most products sold by HDFC SLIC have
Rs.12000 as the minimum annual premium amount. They
should introduce more products like Easy Life Plus and
Safe Guard where the minimum premium is Rs.6000 p.a.
and Rs. 12000 p.a. respectively. This would definitely
increase their market share as more individuals would be
able to afford the policies/plans offered.

61
 POPULAR LIFE INSURANCE PLANS

TABLE 7:

Type of Plan No. of Respondents

Term Insurance Plans 105
Endowment Plans 122
Pension Plans 16
Child Plans 8
Tax Saving Plans 19
CHART 7:

POPULAR LIFE INSURANCE PLANS

62
Analysis:
From the chart given above we can clearly see that 45% of
the respondents hold endowment plans and 39% of the
respondents hold term insurance plans. Endowment plans
are very popular and serve two purposes – life cover and
savings.
If the policy holder dies during the policy term the
nominee gets the death benefit that is, sum assured and
accumulated bonus. On survival the policy holder receives
the survival benefit with a bonus.
A term plan is a pure risk cover plan wherein the insured
pays a lower premium for a higher sum assured. Term
insurance is the cheapest form of insurance and helps the
policy holder insure himself for a relatively low premium.
For the returns sensitive investor term plans do not find
favor as they do not offer a return in case the individual
does not die during the policy term.

63
 AWARENESS OF UNIT LINKED INSURANCE PLANS

TABLE 8:
Awareness of Unit Linked Plans No. of Respondents
Yes 154
No 116

CHART 8:

AWARENESS OF UNIT LINKED INSURANCE PLANS

Analysis:
From the chart given above we find that 57% of the
respondents are aware of unit linked life insurance plans
and 43% are not aware of such plans. These plans should
be promoted through advertising. The company can

64
advertise through television, radio, newspapers, bill boards
and pamphlets. This would increase awareness and arouse
curiosity in the minds of the consumer which would enable
the company to market its products more effectively.

Unit – linked plans are those where the benefits are

expressed in terms of number of units and unit price. They
can be viewed as a combination of insurance and mutual
funds. The number of units a customer would get would
depend on the unit price when they pay the premium.

When the policy matures the individual gets his fund

value. The value of his fund is calculated by multiplying
the net asset value and number of units held by them on
that day.

CONSUMER WILLINGNESS TO SPEND ON LIFE

INSURANCE PREMIUM
TABLE 9:

Willingness to spend on No. of

premium respondents Percentage
Less than Rs. 6,000 41 15%
Rs. 6,001 - Rs. 10,000 73 27%
Rs. 10,001 - Rs. 25,000 110 41%

65
 Rs. 25,001 - Rs. 50,000 41 15%
Rs. 50,001 - Rs. 1,00,000 5 2%

CHART 9:

CONSUMER WILLINGNESS TO SPEND ON LIFE

INSURANCE PREMIUM

Analysis:
From the graph above, we can clearly see that 41% of the
respondents would be willing to spend between Rs. 10001
– Rs. 25000 for life insurance. 27 % would be willing to
spend between Rs. 6001 – Rs. 10000 per annum. Only
15% would be willing to spend more than Rs. 25000 per
annum as life insurance premium.

We could say that the maximum premium payable by most

consumers is less than Rs. 25000 p.a. This is further

66
reduced as most customers have already invested with
LIC, ICICI Prudential, Birla Sun Life, Bajaj Allianz etc.

HDFC SLIC is faced with a large amount of competition.

There are 18 insurance companies in India inclusive of LIC.
Hence to capture a larger part of the market the company
could introduce more reasonable plans with lesser
premium payable per annum.

CHART SHOWING IDEAL POLICY TERM

TABLE 10:

Ideal policy term No. of respondents

3 - 5 years 51

6 - 9 years 41

10 - 15 years 95

16 - 20 years 38

21 - 25 years 24

26 - 30 years 5

More than 30 years 3

67
 Whole life Policy 13

CHART 10:

CHART SHOWING IDEAL POLICY TERM

Analysis:
From the chart given above it can be seen that 35% of the
respondents prefer a policy term of 10 – 15 years, 19%
prefer a term of 3 – 5 years and 15% prefer a term of 6 – 9
years. This means that HDFC SLIC could introduce more
plans wherein the premium paying term is less than 15
years.

68
The outlook of insurance as a product should be changed
from something which you pay for your whole life (whole
life policy) and do not receive any benefit (the nominee
only receives the benefit in case of your death) to an
extremely useful investment opportunity with the
prospects of good returns on savings, tax saving
opportunities as well as providing for every milestone in
your life like marriage, education, children and retirement.

FACTORS THAT MOTIVATE RESPONDENTS TO

PURCHASE INSURANCE

TABLE 11:

Parameter No. of Respondents

Advertisements 35
High returns 84
Advice from friends 46
Family responsibilities 89
Others 16

CHART 11:

69
Analysis:
From the chart above it can be seen that 33% of the
respondents purchase life insurance to secure their
families, 33% take life insurance to get high returns, 17%
purchase insurance on the advice of their friends and 13%
purchase insurance because of the influence of
advertisements.

The main purpose of insurance is to cover the financial or

economic loss that occurs to the family in case of the
uncertain death of the policy holder. But now a days this
trend is changing. Along with protection (life cover), a
savings element is being added to insurance.

70
With the introduction of the new unit linked plans in the
market, policy holders get the option to choose where their
money will be invested. They can invest their money in the
equity market, debt market, money market or a
combination of these. The debt and money markets
usually have low risk attached whereas the equity market
is a high risk investment option.

PREFERRED COMPANY TYPE OF THE RESPONDENTS

TABLE 12:

No. of
Type of Company Respondents Percentage
Government Owned
Company 127 47%
Public Limited
Company 62 23%
Private Company 49 18%
Foreign Company 32 12%

CHART 12:
PREFERRED COMPANY TYPE OF THE RESPONDENTS

71
Analysis:
From the graph above we find that 60% of the respondents
preferred to purchase insurance from a government owned
company, 29% of the respondents preferred to purchase
insurance from a public limited company and only 4% of
the respondents preferred a foreign based company.
Heavy advertising through television, newspapers,
magazines and radio is required.

MINIMUM EXPECTED RETURN ON INVESTMENT

TABLE 13:

Expected Returns No. of respondents

72
Less than 5% 5

5% - 10% 39

11% - 15% 46

16% - 20% 49

21% - 25% 46

26% - 30% 27

31% - 40% 22

41% - 50% 14

More than 50% 22

CHART 13:

Analysis:
From the chart above it can clearly been seen that 18% of
the respondents would like 16 – 20% returns, 17% would

73
like returns between 21 – 25% and 17% would like returns
of 11 – 15% on their investments. Therefore the average
return on investment should be at least 16 – 20 %.

Most consumers are willing to adapt to some amount of

risk but still want some guaranteed returns. Therefore the
bulk of investment should be made in the balanced fund
with 50% debt and 50% equity. The returns on the Secure
Fund are guaranteed as these involve investment is
government securities and the debt market. But the
returns on these instruments are low (8 – 10%). If the
company invests in shares, returns are higher (39%) but
correspondingly risk borne by the policy holder is also
higher. Therefore a good combination of the two
instruments is often a wise choice.

74
CHAPTER VI

CONCLUSION

75
 CONCLUSION

HDFC standard life insurance is first life insurance Company in

India. It has businesses spread out across the globe. It was
registered on 23rd December 2000. It currently ranks number 4
amongst the insurers in India.

The company faces a large amount of competition. To sustain

itself it must promote its products through advertising and
improve its selling techniques. Consumers must be aware of the
new plans available at HDFC SLIC. The medium of advertising
used could be television since most of its competitors use this
tool to promote their products. The company must be promoted
as an Indian company since consumers seem to have more trust
in investing in Indian firms.

The unit linked concept must be specifically promoted. The

general perception of life insurance has to change in India before

76
progress is made in this field. People should not be afraid to
invest money in insurance and must use it as an effective tool for
tax planning and long term savings.

HDFC SLIC could tap the rural markets with cheaper products and
smaller policy terms. There are individuals who are willing to pay
small amounts as premium but the plans do not accept premiums
below a certain amount. It was usually found that a large number
of males were insured compared to females. Individuals below
the age of 30 (mostly male) were interested in investment plans.
This was a general conclusion drawn during prospecting clients.

CHAPTER VII

SUGGESTION

77
 Finding and Suggestion

• According the survey only 42% people are insured in Alwar

so reaming other part is potential for insurance sector.
• Among that 42% people who having insurance, they have
insurance 40% for self 28%for spouse 21% for children and
18% for their parents and 11% for all family member, also its
very help full for insurance sector so they should take
necessary step for capture this potential.

• Only 42% people having insurance in Alwar in that 42%

there are 82 % people are under insured and other 18%
people are fully insured according to their income so that is
also plus point for insurance sector to capture the market.

78
79
 CHAPTER VIII
QUESTIONNAIRE

80
81
82
Chapter IX
Bibliography

83
By the help of Books

• Marketing Management written BY

“Phillip Kotlar” (12 edition, page No 99)
By the Help of Manuals

• HDFC Report of 2008 & Internet.

By the help of Other Sources

• By the head’s and the consultant of the HDFC SLIC.

By the help of Websites

1. www. IRDAIndia.org.
2. www.insure2bsecure.com
3. www.google.com
4. www. Wikkipedia.com
5. www.hdfcinsurance.com/

84
 Chapter X
GLOSSARY

Accident Benefit An add-on with a life policy. It compensates a policyholder in

the event of death or injury by accident.

Budget It is a tool used to monitor and control expenditures and purchases.

Cover Another word for insurance; it also refers to the amount of insurance.

Disability rider A rider that provides for additional cover in the event of
disability, or dismemberment, of the policy holder due to an accident.

85
Financial planning It covers the essential elements of a person’s financial
affairs and is aimed at achieving a person’s financial goals.

Hospital cash benefit rider A rider that provides cover for hospitalization.

IRDA Insurance regulatory development Authority. To ensure the equal

development of in country.

Liquidity The quality of assets that can be easily and quickly converted into cash
without any, or significant, loss in value.

Market value The monetary value an asset will fetch if sold in the market today.

Nominee The person(s) nominated by the policyholder to receive the policy

benefits in the event of his death.

Policyholder The person who buys an insurance policy. Also referred to as the
‘insured’.

Riders Additional covers that can be added to a life policy, for a cost.

Sum assured The amount of cover taken under a life insurance policy, it is the
minimum amount that will be paid on death of the policyholder during the policy
term.

Terminal bonus A one-time bonus paid on maturity of a with-profit plan.

Whole-life plans Class of life insurance policies that provide cover through your
lifetime.

86