Sign up

Use your Facebook login and see what your friends are reading and sharing.
Other login options
Login with Facebook
Top of Form
Bottom of Form
Signup
I don't have a Facebook account
Top of Form
email address (required)
create username (required)
password (required)
Send me policy
Privacy the Scribd Newsletter, and occasional account related communications.
You will receive email notifications regarding your account activity. You can ma
nage these notifications in your account settings. We promise to respect your pr
ivacy.
Bottom of Form
Why Sign up?
Discover
Publish
Share
Alreadyyour
your
have
andreading
connect
adocuments
Scribd
interests
with
account?
quickly
people
onand
Scribd
ofeasily.
similar
and social
interests.
sites.
Top of Form
email address or username
password
Trouble logging in?
Bottom of Form
Login Successful
Now bringing you back...

« Back to Login
Reset your password
Please enter your email address below to reset your password. We will send you a
n email with instructions on how to continue.
Top of Form
Emailneed
You
Bottom
Login: address:
oftoForm
provide a login for this account as well.
* Explore
* Community
Top of Form
Search Books, Presentations, Business, Academics...
Bottom of Form
* Login
Top of Form
Bottom of Form
* Sign Up
* |
* Log In
1
First Page
Previous Page
Next Page
€ / €104
Zoom Out
Zoom In
Fullscreen
Exit Fullscreen
Select View Mode
View Mode
BookSlideshowScroll
Readcast
Add a Comment
Embed & Share

Reading should be social! Post a message on your social networks to let others k
now what you're reading. Select the sites below and start sharing.

Top of Form
Login to Add a Comment
Bottom of Form
Share & Embed
Link / URL:
Embed Size & Settings:
* Width: Auto
* Height: (proportional to specified width)
* Start on page:
* Preview View:
More share options
Add to Collections
Auto-hide: on

Submitted in partial fulfillment for MBA Programme

2008-2010
A
Summer Placement Report
on
ULIP as an Alternative Investment Avenue
(Comparative Study of difference ULIP Plans of HDFC)
Submitted by:
Meenakshi Garg
Roll No:-0806870030
Submitted to:
Mr. Sandeep Kapoor
Faculty of Finance
MEERUT INSTITUTE OF ENGINEERING AND TECHONOLOGY
MEERUT
PREFACE
India s rapid rate of economic growth over the past decade has been one of the mor
e significant developments in the global economy. This growth has its roots in t
he introduction of economic liberalization in the early 1990s, which has allowed
India to exploit its economic potential and raise the population s standard of li
ving. Insurance has a very important role in this process. Health insurance and
pension systems are fundamental to protecting individuals against the hazards of
life and India, as the second most populous nation in the world, offers huge po
tential for that type of cover. Furthermore, fire and liability insurance are es
sential for corporations to keep investment risks and infrastructure projects un
der control. Private insurance systems complement social security systems and ad
d value by matching risk with price. Accurate risk pricing is one of the most po
werful tools for setting the right incentives for the allocation of resources, a
feature which is key for a fast developing country like India.
By nature of its business, insurance is closely related to saving and investing.
Life insurance, funded pension systems and (to a lesser extent) non-life insura
nce, will accumulate huge amounts of capital over time which can be invested pro
ductively in the economy. In developed countries (re)insurers often own more tha
n 25% of the capital markets. The mutual dependence of insurance and capital mar
kets can play a powerful role in channeling funds and investment expertise to su
pport the development of the Indian economy.
ULIP as an Alternative Investment Avenue (Comparative Study of difference
ULIP Plans of HDFC) report aims to promote a better understanding of ULIP
Insurance products associated with HDFC in India today and covering a broad
range of HDFC s ULIP Plans.
ACKNOWLEDGEMENT
This project has been prepared as a part of summer training during the
completion ofMBA programme 2008-09.
I was involved with HDFC STANDARD LIFE INSURANCE for a period of 2
months, and on the successful completion of this project I would like to
express my gratitude to all the people who have helped me throughout the project
. At first, I owe my debt of thanks to HDFC Standard Life, which gave me an oppo
rtunity to do this project work
I wish to extend my deep and sincere gratitude to Mr. MANU Agarwal who provided
me with their guidance from day one and also helped me whole heartedly to achiev
e the ultimate goal of the project. He had introduced me to an idea of Insurance
business and what goes behind it. Also under his guidance and leadership I was
able to enhance my inter-personal skills. I would also like to express my greeti
ngs to him for his immense support and guidance in the selection of the project,
its study and preparation of the report.
I would also like to wish a special thanks to my Faculty Guide Mr. Sandeep
Kapoor without whose guidance this project would have been a distant dream.
I would also like to thank all the employees of HDFC SLIC MEERUT, for their expe
rt guidance and encouragement they have given me in spite their demanding schedu
le. Their informal discussions and constructive criticism of has helped this pro
ject a rewarding experience for me.
Last but not the least; these past 2 months were of utmost importance as they
added value towards my path of knowledge. I would like to end this
acknowledgement by thanking the customers, distributor people at large with
whom I have interacted during the course of my training.
Table of Contents
INTRODUCTION....................................................................
........................................... 4 INSURANCE SECTOR REFORMS..........
..................................................................... . . . 8 HD
FC STANDARD LIFE INSURANCE......................................................
................... 12 OBJECTIVES OF THE STUDY..................................
..................................................... 15 RESEARCH METHODOLOGY...
................................................................................
.... 16 BASIC CONCEPTS..........................................................
........................ . . . . . . . . . . . . . . . . . . . . . . . 17 POINTS
OF PARITY......................................................................
.................................. 32 HDFC SLIC PRODUCTS........................
......................................................................... 36 ANA
LYSIS & INTERPRETATION..........................................................
....................... 74 FUTURE LINE OF RESEARCH..............................
........................................................ 86 CONCLUSION..........
................................................................................
................ . . . . . . . 87 RECOMMENDATIONS...............................
.................................................................... 98 CHALLENG
ES & LIMITATIONS................................................................
.................. 99 BIBLIOGRAPHY & REFERENCES.................................
............................................ 100
INTRODUCTION
INSURANCE IN INDIA
In 2003, the Indian insurance market ranked 19th globally and was the fifth
largest in Asia. Although it accounts for only 2.5% of premiums in Asia, it has
the potential to become one of the biggest insurance markets in the region. A co
mbination of factors underpins further strong growth in the market, including so
und economic fundamentals, rising household wealth and a further improvement in
the regulatory framework. The insurance industry in India has come a long way si
nce the time when businesses were tightly regulated and concentrated in the hand
s of a few public sector insurers. Following the passage of the Insurance Regula
tory and Development Authority Act in 1999, India abandoned public sector exclus
ivity in the insurance industry in favor of market-driven competition. This shif
t has brought about major changes to the industry. The inauguration of a new era
of insurance development has seen the entry of international insurers, the prol
iferation of innovative products and distribution channels, and the raising of s
upervisory standards. The insurance sector in India has come with a full circle
from being an open competitive market to nationalization and back to a liberaliz
ed market again. Tracing the developments in the Indian insurance sector reveals
the 360 degree turn witnessed over a period of almost two centuries. Insurance
in India used to be tightly regulated and monopolized by state-run insurers. Fol
lowing the move towards economic reform in the early 1990s, various plans to rev
amp the sector finally resulted in the passage of the Insurance Regulatory and D
evelopment Authority (IRDA) Act of 1999.
Significantly, the insurance business was opened on two fronts. Firstly,
domestic private-sector companies were permitted to enter both life and non-
life insurance business. Secondly, foreign companies were allowed to participate
, albeit with a cap on shareholding at 26%. With the introduction of the 1999 IR
DA Act, the insurance sector joined a set of other economic sectors on the growt
h march. During the 2003 financial year1, life insurance premiums increased by a
n estimated 12.3% in real terms to INR 650 billion (USD 14 billion) while non-li
fe insurance premiums rose 12.2% to INR 178 billion (USD 3.8 billion). The stron
g growth in 2003 did not come in isolation. Growth in insurance premiums has bee
n averaging at 11.3% in real terms over the last decade.
A brief history of the Insurance Sector
The business of life insurance in India in its existing from started in India in
the year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.
Some of the important milestones in the life insurance business in India are:
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 s
tatistical information about both life and non- life insurance businesses.
1938:
Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.
1956:
245 Indian and foreign insurers and provident societies taken over by the centra
l government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 Crores from the Government of India.
The General Insurance business in India, on the other hand, can trace its roots
to the Triton Insurance Company Ltd., the first general insurance company establ
ished in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India
are:
1907:
The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
1968:
The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972:
The General Insurance Business (Nationalization) Act, 1972 nationalized the gene
ral insurance business in India with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies' viz. the National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd.
and the United India Insurance Company Ltd. GIC incorporated as a company.
INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor
R.N. Malhotra, was formed to evaluate the Indian Insurance Industry and recomme
nd its future direction.
The Malhotra committee was set up with the objective of complementing the
reforms initiated in the financial sector.
The reforms were aimed at 'creating a more efficient and competitive financial s
ystem suitable for the requirements of the economy keeping in mind the structura
l changes currently underway and recognizing that insurance is an important part
of the overall financial system where it was necessary to address the need for
similar reforms...'.
In 1994, the committee submitted the report and some of the key
recommendations included:
I) Structure
1Government stake in the insurance companies to be brought down to
50%.
2Government should take over the holdings of GIC and its subsidiaries
so that these subsidiaries can act as independent corporations.
3All the insurance companies should be given greater freedom to
operate.
II) Completion
4Private Companies with a minimum paid up capital of Rs. 1bn should
be allowed to enter the industry.
5No Company should deal in both Life and General Insurance through a
single entity.
6Foreign companies may be allowed to enter the industry in
collaboration with the domestic companies.
7Postal Life Insurance should be allowed to operate in the rural
market.
8Only one State Level Life insurance company should be allowed to
operate in each state.
III) Regulatory Body
9The Insurance Act should be changed.
10An Insurance Regulatory body should be set up.
11Controller of Insurance (Currently a part from the Finance Ministry)
should be made independent.
IV) Investments
12Mandatory Investments of LIC Life Fund in government securities to
be reduced from 75% to 50%.
13GIC 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).
V) Customer Service
14LIC should pay interest on delays in payments beyond 30 days.
15Insurance companies must be encouraged to set up unit linked
pension plans.
16Computerization of operations and updating of technology to be
carried out in the insurance industry.
The committee emphasized that in order to improve the customer services and incr
ease 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 fai
lure 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 m
inimum capital requirement of Rs. 100 crores. The committee felt the need to pro
vide greater autonomy to insurance companies in order to improve their performan
ce and enable them to act as independent companies with economic motives. For th
is purpose, it had proposed setting up an independent regulatory body.
IRDA (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 regulation
s and registering the private sector insurance companies.
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 t
hat the insurance companies would have a trained workforce of insurance agents i
n place to sell their products, which are expected to be introduced by early nex
t year. 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 in
surance and 6 general insurance companies have been registered.
HDFC STANDARD LIFE INSURANCE
HDFC Standard Life Insurance Company Ltd. is one of India's leading private insu
rance companies, which offers a range of individual and group insurance solution
s. It is a joint venture between Housing Development Finance Corporation Limited
(HDFC LTD.), India's leading housing finance institution and
ULIP as an Alternative Investment Avenue (Comparative Study of Difference ULIP P
lans of HDFC)
ULIP as an Alternative Investment Avenue (Comparative Study of difference ULIP P
lans of HDFC)
Reads:
2,181
Uploaded:
10/30/2009
Category:
Research > Business & Economics
Rated:
This is a private document.
mohitjainmrt
Share & Embed
Link / URL:
Embed Size & Settings:
* Width: Auto
* Height: (proportional to specified width)
* Start on page:
* Preview View:
More share options
Related
1. 62 p.
11845662 Comparative Study of Hdfc...
Reads: 115
62 p.
COMPARATIVE STUDY OF HDFC SLIC, BA...
Reads: 18767
171 p.
project on insurance
Reads: 1607
2. 86 p.
Questionnaire Hdfc
Reads: 3277
62 p.
Orignal Soft Copy of Project Work
Reads: 705
77 p.
5778166 Hdfc Standard Life Insuran...
Reads: 153
3. 77 p.
Hdfc Standard Life Insurance Compa...
Reads: 1131
102 p.
Comparative Analysis of HDFC SLIC ...
Reads: 717
77 p.
5778166 Hdfc Standard Life Insuran...
Reads: 1101
4. 58 p.
HDFC Standard Life Insurance Proje...
Reads: 1839
89 p.
SACHIN
Reads: 0
109 p.
ANIL HDFC PRINT1111111
Reads: 226
5. 74 p.
5778166 Hdfc Standard Life Insuran...
Reads: 134
74 p.
HDFC STANDARD LIFE INSURANCE COMPA...
Reads: 34726
94 p.
Comparitive Study ICICI & HDFC
Reads: 5710
6. 33 p.
HDFC SLIC-Priyanshu Saxena Aspiran...
Reads: 574
33 p.
HDFC SLIC-Priyanshu Saxena Aspiran...
Reads: 936
More from this user
1. 104 p.
ULIP as an Alternative Investme...
From: mohitjainmrt
Reads: 2,181
Top of Form
Login to Add a Comment
Bottom of Form

gullybaba read this about 12 hours agoLearn more about Readcast.

gullybaba read this about 12 hours agoLearn more about Readcast.

nayini_syam4067 read this 3 days agoLearn more about Readcast.

amitme read this 4 days agoLearn more about Readcast.

anish3c read this 5 days agoLearn more about Readcast.

dhinakarj read this 06 / 22 / 2010Learn more about Readcast.

Farhan Khan read this 06 / 21 / 2010Learn more about Readcast.

Vikrant Jain read this 06 / 20 / 2010Learn more about Readcast.

tomer_shraddha read this 06 / 19 / 2010Learn more about Readcast.

vivekk231 read this 06 / 17 / 2010Learn more about Readcast.

Show More
Ads by Google
Best Child Plans
Get him 20 Lakhs-Invest Rs125 a day
Compare 24 Child Plans
ICICI Health Insurance
www.bimadeals.com/Childplan
Online Health Insurance, No CheckUp
No Documents. Fast Claims. Apply !
Money Back Life Insurance
ICICILombard.com
Guaranteed payouts every five years
& Auto increasing life cover. Apply
KotakMoneyBack.com
Print this document
High Quality
Open the downloaded document, and select print from the file menu (PDF reader re
quired).
Browser Printing
Coming soon!
Print this document
High Quality
Open the downloaded document, and select print from the file menu (PDF reader re
quired).
Browser Printing
Coming soon!
Your download will begin shortly...
But first, we need a bit more information. Import more of your profile informati
on from Facebook to help use find more content that you'll be interested in and
build your social network on and off Scribd.
No, thanks
Your download will begin shortly...
But first, we need a bit more information. Import more of your profile informati
on from Facebook to help use find more content that you'll be interested in and
build your social network on and off Scribd.
No, thanks
Top of Form
Search Books, Presentations, Business, Academics...
Bottom of Form
Scribd
* About
* Press
* Jobs
* Contact
* Blog
* Scribd Store
Legal
* Terms - General
* Terms - API
* Terms - Privacy
* Copyright
Help & Tools
* Getting Started
* Community Guidelines
* Support & FAQ
* Web Stuff
Partners
* Partners / Publishers
* Branded Reader
* Developers / API
Subscribe to Us
* On Scribd
* On Twitter
* On Facebook
Top of Form
Enter your email address:
or
Bottom of Form
What's New
* We have updated our Terms of Service
* Branded Reader
* Multi-file Uploader
scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd.
scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd.
scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd. scribd.
scribd.