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CHAPTER - 1
1.1
GENERAL INTRODUCTION
chosen to highlight today the emphasis now needs to be on making sure that policy
decision is turned into effective implementation.
CHAPTER - 2
2.1 ORIGIN OF HDFC STANDARD LIFE INSURANCE CO.LTD
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It
is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.) India and UK based Standard Life Company. Both the joint venture partners being
one of the leaders in their respective areas came together in this 81.4:18.6 joint venture
to form HDFC Standard Life Insurance Company Limited. The MD and CEO of HDFC
Standard Life Mr. Deepak Satwalekar, has given the company new directions and has
helped the company achieve the status it currently enjoys. HDFC Standard Life brings to
you a whole range of insurance solutions be it group or individual or NAV services for
corporations; they can be easily customized as per specific needs
2.2 GROWTH AND DEVELOPMENT OF HDFCSLI
HDFC Standard Life Insurance Company Ltd. is one of Indias 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.), Indias leading housing finance institution and The Standard Life
Assurance Company, a leading provider of financial services from the United Kingdom.
As a joint venture of leading financial services groups, HDFC Standard Life has the
financial expertise required to manage your long-term investments safely and
efficiently. The company has a range of individual and group solutions, which can be
easily customized to specific needs. The group solutions have been designed to offer
complete flexibility combined with a low charging structure.
HDFC Standard Life Insurance is the first private life insurance company to
be granted a license by IRDA Rated by Business world as Indias Most Respected
Private Life Insurance Company in 2004 Has grown over 130% in the last year, with
more than 8 lakh policyholders Has one of the widest branch networks with offices in
over 100 cities servicing over 440 towns Has the highest brand recall, close to 80%
(Source: AC Neilson ORG MARG, April 2005). HDFC Standard Life, one of the
leading private insurance companies in the country, is in an expansion mode in the state
of Madhya Pradesh. The company has inaugurated its branch office in Morena and will
subsequently open offices in Datia, Bhind and Dabra by the second week of May 2007.'
This expansion comes in line with the companys strategy to strengthen its presence in
the state of Madhya Pradesh, thereby also consolidating its premier position in the
insurance business in India. Speaking on its increasing presence in the region, Mr.
Deepak Satwalekar, CEO & MD HDFC Standard Life Insurance said, The Company
wants to be as close to its customers as possible and wants to ensure complete customer
convenience and delight. We felt the need to increase our spread in MP because of its
growing potential and hence expansion is an obvious choice. With the launch of four
branches consecutively in the region, HDFC Standard Lifes presence will increase to 13
branch locations and 16 spoke locations in MP.
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The cumulative premium income, including the first year premiums and renewal
premiums is Rs. 1532.21 Crores in FY 2005 - 06. The company has covered over 1.6
million individuals, out of which over 5,00,000 lives have been covered through their
group business tie-ups. The company also declared their 5th consecutive bonus in as
many years for their policyholders.
Key Dates
7th May 2007 - HDFC Standard Life expands its reach to smaller cities in Madhya
Pradesh
15th February 2007 - HDFC Standard Life expands its reach in Vidarbha
16th May 2006 - HDFC Standard Life records impressive growth
7th February 2006 - HDFC Standard Life records impressive growth
29th November 2005 - HDFC Standard Life posts strong growth
16th August 2005 - HDFC Standard Life grows faster than the private sector average
16th May 2005 - HDFC Standard Life declares results for FY 2004-05
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nominal price. The company currently has 21 retail and 6 group products in its
portfolio. HDFC Standard Life maintains very high professional standards, during
product offerings, by providing sound financial advice, efficient post-sale service and
immaculate financial security. Ongoing training for conventional products, and
specialized training, for unit-linked products, for its financial consultants, has also
helped its customers choose the product, best suited for their needs.
12
HDFC Life Insurance Ltd is targeting a 250 per cent growth in its first premium
income in 2009-09 and will soon infuse a further Rs 37.5 cr. to its existing share capital
of Rs 255.5 cr. "Major expansion of branches, higher productivity and contribution from
unit-linked products will enable the company to achieve this high growth in current
year," said Pankaj Seith, head, alternative channels, HDFC Standard Life Insurance.
Over the next 3-4 years, the company will increase its capital base to Rs 700-800 cr. The
company will increase its branch network from 60 to 103 by the end of 2008-09. In
Gujarat, the company is doubling its branch network from 4 to 8 branches by setting up
branches at Vapi, Gandhidham, Bhavnagar and Jamnagar. "Business growth in Gujarat
has been higher than the national average during FY07 and that is why the company has
decided to double its network," said Sanjay Vij., regional manager of Gujarat. The state
constitutes for around 7-8 per cent of the national business. "The unit-linked product
launched by the company in January 04 has met with a strong response from Gujarat as
it offers partial investment in equities. As against the national growth of 30-35 per cent,
the unit-linked business in Gujarat has grown by 40-45 per cent." HDFC Life is also
pushing sales through the bank assurance route. "The company is in talks with a few
banks and even some cooperative banks in Gujarat and elsewhere for marketing
insurance products. Currently, HDFC Bank, Union Bank of India, Indian Bank and
Saraswat Bank are selling HDFC Life products and contribute to around 25 per cent of
total business," said Seith. A special bank assurance product is going to be launched in
future. The company has met its rural market targets and as against 12 per cent of total
policies sold in FY09, it will raise it to 14 per cent in current year.
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affordable plans apart from providing long term value to the employees help in
enhancing goodwill of the company.
Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs.
Keeping this in mind, we have a varied range of Products that you can choose from to
suit all your needs. These will help secure your future as well as the future of your family
Protection Plans
You can protect your family against the loss of your income or the burden of a
loan in the event of your unfortunate demise, disability or sickness. These plans offer
valuable peace of mind at a small price. Our Protection range includes our Term
Assurance Plan & Loan Cover Term Assurance Plan.
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The HDFC Term Assurance Plan is an insurance policy that is designed to help
secure your family's financial needs. The plan does this by providing a lump sum to the
family of the life assured in case of death or critical illness (if option is chosen) of the life
assured during the term of the contract. One can choose the lump sum that would
replace the income lost to one's family in the unfortunate event of one's death.
3 EASY STEPS TO YOUR OWN PLAN
Step 1 - Choose the life cover required to secure your family's future in your absence.
Step 2 - Choose from any one of the 3 additional optional benefits as per your
requirement.
Step 3 - Work out the premium payable along with our Financial Consultant.
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Savings Plans
HDFC Endowment Assurance Plan
The HDFC Endowment Assurance Plan gives you:
An ideal way to secure your long-term financial goals
Valuable protection to your family by way of lump sum payment in case of your
unfortunate demise within policy term
Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to
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maturity date
Very flexible benefit options and payment options
The table below will help you identify and classify some of your financial goals. You can
prioritize these goals and set your objectives accordingly (see indicative table given
below).
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LONG-TERM GOALS
Buying a car
Saving for big-ticket assets like your house Saving for your marriage
Saving for your children's education
Vacation abroad
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PRODUCT BASKET
INDIVIDUAL PRODUCTS
Protection Plans:
HDFC TERM ASSURANCE PLAN
HDFC LOAN COVER TERM ASSURANCE PLAN
Investment Plans:
HDFC Single Premium Whole of Life Plan
Pension Plans:
HDFC PERSONAL PENSION PLAN
HDFC UNIT LINKED PENSION
HDFC UNIT LINKED PENSION SUPER
Savings Plans:
HDFC Endowment Assurance Plan
HDFC UNIT LINKED ENDOWMENT PLAN
HDFC UNIT LINKED ENDOWMENT SUPER
Children Plan:
HDFC CHILDREN'S PLAN
HDFC UNIT LINKED YOUNG STAR
HDFC UNIT LINKED YOUNG STAR SUPER
GROUP PRODUCTS
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Premium Payment
6 Easy Ways to pay your premium:
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Claims
We understand that bereavement can be difficult to deal with, specially when you
have to arrange for all the formalities in case of insurance claims.
At HDFC Standard Life we lend a helping hand by enabling faster settlement of
claims and help the family financially at the time of distress.
For any assistance or query relating to reporting claims (Death Claims /
Critical Illness Claims) you may get in touch with us by emailing us at
claims@hdfcinsurance.com and we will get back to you with the details that
will be required to process a claim.
Death claim form
Original Policy Document
A copy of death certificate issued by Municipal Corporation / Government*
Proof of identity of beneficiary viz passport or Election ID or Pan Card
Or Driving License.
Proof of residence of beneficiary viz Electricity bills or Ration card or
telephone bill or passport (bills not greater than 3 months)
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HDFC Standard Life Insurance holds market share of 8.7% and ranks 4 among
the private sectors. HDFCSLI expecting to capture 12% of market share by 2009 and to
be in top position among the private sector. The company is increasing the brand
awareness through continuous advertisement on TVC and print. Company is focusing
on complete solution of investment for the customer delighting them through their
service and return on their investment. The Marketing function at HDFC Standard Life
Insurance covers an array of activities - brand and media management, channel
support,
direct
marketing
and
corporate
communications.
The
Brand
and
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streamlining the design and development of collaterals and sales tools across
distribution channels. The Direct marketing team was set up to generate high quality
leads for profitable business. The team achieves this through target database acquisition
and communicating customized product information through e-mailers, telemarketing
and innovative direct mailers.
CHAPTER - 3
3.1 STUDENT WORK PROFILE (ROLE & RESPONSIBILITES)
26
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developed a network in market and things are going very easily. I always remember one
quote of my manager that dont work hard work smart.
3.3 CONTRIBUTION TO ORGANIZATION
The main contribution of an employee to its organization is to perform his
responsibilities given with 100% effort and honesty. I am working in HDFCSLI as a
Financial Consultant and Recruitment Consultant. My major responsibility is to sell the
product and recruit FC for the organization. I am one of the top performers of my
company where every month I am giving business of 50000-60000k. For the goodwill
of the company I am always honest to tell all the facts and benefits of the product to the
customer and convince them for the right product that best suits them. After login their
forms I call them and do a formal call that whether they received their documents or not
and if some complication occurs with the document I take care about them. It helps me
to generate new business for the company in one hand and getting goodwill to the
company on other hand. As I have joined recently as a recruitment consultant so my
contribution is not very huge but in one month I am able to recruit 3 FC and they all are
taking interest and doing business for the company. So my contribution to the
organization is good I am giving good business and good people to the company who are
working and doing good business. I am very much satisfied with the level of work I am
doing for the company and I am also able to keep my sales manager happy through my
performance and through my quality of work. It was because of my dedication and hard
work that my branch manager has offered me to join as a recruitment consultant. Both I
myself and my seniors are happy with my contribution to the organization.
CHAPTER 4
NEED AND IMPORTANCE OF THE STUDY
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29
30
collecting the information depends largely on proper drafting. So in the present study
questions were arranged and interconnected logically.
SCOPE OF STUDY
The respondents of this dissertation were 30 Life Insurance Policy holders of
HDFC insurance company and study was focus on the awareness of Traditional and
ULIP plan of insurance policies.
Questionnaire was used for survey and was answered by the customers of HDFC
Standard Life Insurance Company.
Survey was done by approaching the customers of HDFC by visiting different branches
located at Sagar.
Personal interview method was apply to collect the actual data for the research
study, the interaction with the respondents before filling questionnaire have made them
more friendly and free to give the information.
SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the
present study, 30 respondents were selected at judgment. All the 30 respondents were
the customers of HDFC Standard Life Insurance Company.
Limitation of study
This research work is done by approaching a small population, in a restricted
geographical area. Uncontrolled factors may affect the outcome of research. So the
actual result may vary from the research conducted.
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Particulars
No of Respondents
Percentage (%)
11
37
20,000- 30,000
12
40
30,000 40,000
16
Total
30
100
Analysis
There are variations in monthly income of the people and it is ranging between less
than Rs 20000 to more than Rs 40000.
There are variability of income among the people which is due to their education and
the stages of their career. Many of the respondents are employed (government/ private)
few of them are running their own business.
Graph 4.1: Monthly income of respondents
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No of Respondents
Percentage (%)
30
2,000 4,000
26
4,000 6,000
20
6,000 8,000
14
10
Total
30
100
Analysis
People in Bangalore have different range of savings which is diversified according to
their income level and here it ranges between less than Rs 2000 to more than Rs 8000.
People are able to save their money after their expenditure which depends on their
income, family size and their lifestyle. Bangalore is comparatively expensive city so the
Customers are able to save very less from their earnings.
Graph 4.2: Monthly savings of the respondents
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No of Respondents
Percentage (%)
Medical expenses
20
To buy durables
10
To buy jewelleries
27
Education
30
Others
Total
30
100
Analysis
People are saving their money for various purposes like for childrens education, to buy
houses, for medical expenses. Here people are more conscious about their health and
education.
People have their own choice of saving their money according to their preferences. Most
of the people give priorities for education, houses and health so they are saving their
money for these purposes.
Graph 4.3: Purpose of savings
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No of Respondents
Percentage (%)
Bank deposit
23
Insurance
20
35
Shares
13
Debentures
10
Real estate
13
Gold
Mutual fund
10
Chit fund
Others
Total
30
100
Analysis
People have so many options to invest their savings. But most of the people go for bank
deposit due to the safety purposes. People have so many options where they can invest
their money. Some people think about high growth and some people consider about
safety. So they invest their money accordingly. Bank deposit is more preferred by the
people due to security purpose even though they get comparatively less interest on it.
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37
No Of Respondents
Percentage (%)
06
20
1,000 2,000
07
23
2,000 3,000
12
40
3,000 4,000
04
14
01
03
Total
30
100
Analysis
Here the people who are paying premiums Rs 2000 to 3000 are more in numbers.
People pay the premiums from their savings so they decide the premium according to
their savings. People have other commitments also so they plan their premium payment
by considering all the expenses.
Graph 4.5: Approximate monthly insurance premium
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LIC is the clear market leader .HDFC Standard Life Insurance can excuse itself
that people in the age of more than 55 years category could not use its policies,
because HDFC Standard Life Insurance was not around when these people made
their life insurance choices. But at some extent HDFC is able to intervene in the
market of LIC due to varieties of ULIP plans, its good service, and high return on
investments.
1. ULIP plans are more preferred by customers than the traditional plan due to the
following reasons:
Flexibility in investment- traditional plans have to invest at least 85% in debt
instruments which results in low returns. On the other hand, Ulips invest in
market linked instruments with varying debt and equity proportions and if
customer
wishes,
he
can
even
choose
100%
equity
option.
Greater transparency-: Unlike Ulips, in traditional life insurance policy
customers are not aware of how your money is invested, where it is invested and
what the value of his investment is.
Potential for better returns- The top most advantage which Ulips offer over
traditional plans is the flexibility offered to customers to customize the product
according to their needs.
2. Customers knows that traditional plans are with less risk and less growth and
ULIP plans are with high risk high growth.
3. Customers have good knowledge about the investment of their money by the
insurer in different plans. They know that their money is used as dept in
traditional plan where as there are so many option of investing money in ULIP
plan like in high growth and low growth fund.
4. Potential for HDFC Standard Life Insurance exists in the category of respondents
aged between 25 years 45 years old, as awareness of life insurance is gaining
ground here and tomorrow respondents from here will be growing upwardly and
will invest larger amount in life insurance.
5. 9 respondents have a monthly savings of less than 2000, 8 respondents have a
monthly saving of around 2,000 4,000, 6 respondents have a monthly saving
of 4,000 6,000 and only a few respondents have monthly savings of around
6,000 8,000 and more than 8,000.
6. It is inferred from the study that 9 respondents make the savings for the purpose
of education, 6 respondents make the savings for the purpose of medical
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expenses, 8 respondents make the savings to buy house or site and few
respondents make savings for buy durable, to buy jewelleries and some other
purpose also.
7. From the study it is found that. 7 of the respondents prefer bank deposits for
investment purpose, 6 prefer insurance, 4 prefer shares and 4 prefer real estate.
So there is a more scope for the insurance sector and people feel it is secured and
profitable made of investment.
8. In an absurd contrast to the information and awareness of life insurance among
the younger earning generation, respondents seem careless to take up insurance.
HDFC Standard Life Insurance can take up the initiative to create awareness of
its insurance policies right form college level by conducting workshop there.
9. Most of the people takes the insurance policy to save their taxes, few customers
takes the policy for future security, children education and other purposes.
10. From the study, it is clear that HDFC is approaching the customers by various
ways and agents are playing their role very efficiently.
11. Now the days customer are well aware so they have proper knowledge of the
differences between traditional and ULIP plans.
12. Among 30 HDFC policy holders 9 have traditional policies, 14 respondents have
ULIP policies and 3 have other plans like health insurance.
13. For traditional plans LIC is more preferred where as other private companies
have around equal preferences for it.
14. For ULIP plans HDFC is more preferred due to variety of ULIP products in its
basket.
15. Most of the customers have good knowledge of different plans only few dont
have proper knowledge which can be overcome by better consultation to the
customers through insurance agents.
CHAPTER - 5
RECOMMENDATION AND SUGGESTIONS
40
1. Many respondents in their answers to why they did not take HDFC Standard Life
Insurance policies said that HDFC Standard Life Insurance being a private
insurer its reliability and long term existence is a big questions mark. This myth
must be broken through an Ad campaign through radio, TV, print and internet
that tells that HDFC is nothing but the Industrial Credit and Investment
Corporation of India. Which was set up as a public linked company on January 5,
1955 by the government? Hence it has existed for more than half a century and
has gone from strength. So why not even in the future? It can even exist for a
longer time with tremendous reserves and valuable experience in the financial
sector.
2. ULIP plan is starting from the yearly premium of Rs 15,000 and if the premium
is paid half yearly then it is Rs 8,ooo, monthly Rs 2000. So they are not able to
catch lower middle class. HDFC Standard Life insurance should also cater to the
lower middle class.
3. HDFC Standard Life Insurance should give information and data related to
potential customers.
4. According to Abraham Maslows hierarchy of needs, the second step to self
actualization is the fulfillment of the safety needs. Though people feel the needs
for security a large number live in an ivory tower obvious to the uncertainties life
could throw up to the distant future. They procrastinate to take decisions
regarding these aspects. It is this dormant aspect that HDFC Standard Life
Insurance should awaken in the people and bring about restlessness and
unfulfilled feeling regarding their personal and families security. The next choice
then would be insurance. This could be brought about by an innovative campaign
slogan saying The decision is now.
5. HDFC Standard Life Insurance must not to get people when start earning but
much before that. To gain the early bird advantage they must organize sessions in
schools and college giving explanations on life insurance in general and HDFC
Standard Life Insurance in particular. This will make the younger generation
more responsible making them go in for insurance in a big way at the earliest
thus making HDFC Standard Life Insurance the ultimate beneficiary to enjoy the
income from customers from the very beginning of their services lives. It can also
bring about a stronger brand commitment in this manner.
6. HDFC Standard Life Insurance should consol try to change the mindset of the
people from investing in life insurance for the sake of tax exemption to that of
worry exemption. India will move into that mode in the future in its journey to
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CONCLUSION
Since the opening up of the insurance sector in 1994, 20 private insurers are in
the fray. Each one is trying to garner more market share than the other. Among all the
players HDFC Standard Life Insurance with the advantage of being the earliest to
operate in the liberalized insurance market concerned 3,80,000 policies as on March
2008.
Yet the survey has exposed how HDFC Standard Life Insurance is far behind LIC.
HDFC Standard Life Insurance must also be alert of private insurance companies like
Birla Sunlife, Metlife, ING Vysya.
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HDFC have variety of ULIP plans for different age groups. Youngstar is for the
people of age group around 30, endowment for the age group of 30 to 45 and pension
plans for the age group of more than 45. Each ULIP plan have its own specification and
the fund management is done very efficiently in HDFC so the people are getting return
of more than 20% yearly. Due to the high return in ULIP plans customers are attracted
towards HDFC.
I am sure the company will benefits from my findings and I sincerely hope it use
my suggestions enlisted, when I hope will take them miles ahead of competition.
In short, I would like to say that the very act of the concerned management at
HDFC Standard Life Insurance in giving me the job of critically examining consumer
behavior towards financial products of the company is a steep in their continual mission
of making all round improvement as a means of progress.
I am sure that the company has a very bright future to look forward and will be a
trailblazer in its own right.
................................................................................
2. Age
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3. Gender
Male
Female
4. Marital Status
Married
Unmarried
5. Address
...
...
6. Telephone No.
...
7. E-mail ID
...
8. Qualification
Graduate
Post Graduate
Others
9. Occupation
Employed
Retired
Business
Others
10,000 20,000
20,000 30,000
30,000 40,000
Part B
1. Monthly Income
2,000 4,000
6,000 8,000
Medical expenses
To buy durables
To buy jewelleries
To buy house
Education
Others
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Bank deposit
Insurance
Share Debentures
Real Estate
Others
5. Approximately how much do you pay towards the insurance premium
monthly?
Less than 1,000
1,000 2,000
2,000 3,000
More than 4,000
6. Purpose for which you taken this policy?
Tax purpose
3,000 4,000
Future security
Childrens education
Marriage
Others
Self
Employer
Spouse
Others
Children
Self
Spouse
9. What is your level of information about the products of HDFC Standard Life
Insurance?
Good
Moderate
Poor
10. Has any HDFC Standard Life Insurance advisor visited you?
Yes
No
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Bibliography