FINANCIAL ANALYSIS

(OF HDFC LIFE)

A Major Project Report

CONTENTS

01. INTRODUCTION
PURPOSE OF THE STUDY
AIM OF THE STUDY
OBJECTIVE OF THE STUDY
02. Organization Information
A .About HDFCSLIC
B .company profile
C. what is insurance?
D .scope of insurance
E .objective
F .Award and accolade
G .product of HDFCSL
H .About ULIP

03. Descriptive work

A. Factsheet
B. Profiling of prospects
C. Mode of contacting prospects
D. Total number of people contacted .

04. FINANCE DEPARTMENT OF HDFC LIFE

05. A .Conclusion
B. RECOMMENDATION AND
SUGGESTION

06. ANNEXURE
07. BIBLOGRAPHY

2
Purpose of study

During my summer training in the Housing Development finance

corporation standard life insurance company limited (HDFCSL). I have
gotten the work of Analyzing financial need and manage the funds of the
policies. The main focus area of the company is to manage and focus of
customer profit which gets through managing the funds of the policy. Indeed
the work of financial analyst is very significant and gives more and more
customer assistance to the customer so company can earn customer base and
through strong customer base gets more and more policies distribution and
company can sell the policies. The main motive of this project is analysis of
financials of HDFC LIFE.

HDFCSL is one of Indias leading private insurance companies.

It offers both individual and group insurance solution. It is a joint venture
between HDFC and a group of company of Standard Life. I have chosen
insurance sector as the place for summer training because in these days this
sector is in boom and it will never go down. All people invest their money in
insurance and get more benefited. In the sector the work of Finance is more
challenging then the other sector because there is 17 insurance companies in
the market who are giving competition to each other and the work of
convince people for investment in respective company is a challenging work
and success in the sector proves that the respective person is a good fi n ance
advi sor . Today insurance sector India is on boom because all people want to
invest. Those who dont know about investment in share market and dont
want to invest in mutual funds they invest in insurance sector. Insurance
sector gives them investment plus risk cover. Those who dont want to take
risk in the investment go to insurance sector. It also gives income tax benefits
to the peoples. Insurance company are now launching ULIP plan and gives
chance to the investor to choose their investment pattern according to their
fund investment table. This fund investment tells us that how much the
investor want to take risk. Generally in the ULIP plan, the thesis is that The
more you risk the more you have profit.

4
 AIM OF STUDY

During the summer training I have done my work through telephone calling,
natural market, and contact person having gone to their home. In the entire
work I have contacted person who is policy holder of the company or
willing customer and prospect customers of the company

I found that most of person can earn as well as get insured t h r o u g h

insurance company and save taxes, life assurance with little effort, which will
give him back support as a HEAD of the family in the diverse situation.

This project will help to understand the current market scenario and
marketing in stiff competition. Being a student of management I can draw the
relevant conclusion from the financial analyze and give the appropriate
suggestion to the organization.
The company can take decision according to the suggestions and it
will provide better experience to the students for their bright carrier. My
project will provide help in these matters which are thus:-

Analyze the people perception about HDFC

Study financial markets and analyze the financials of the

company

To find out the competitive edge of the company over the competitors.
OBJECTIVE OF THE STUDY
The project was an attempt to explore the Analyzing financial need and
manage the funds of the policies in HDFC LIFE . The project was started on
10th June, after knowing all the relevant information about the company
insurance product and policies and its competitors insurance products in
accordance with the prescribed schedule mentioned by management of HDFC
LIFE.

The project started in Janakpuri branch where covering all the investors whom
funds are down and bearing loss. In this process I meet 90 policy holders who facing
loss .I have tried to convince them to continue with company and remain with
the company. During my work I found the perception of the people about
insurance, what they desire from it, and if they su ffer l oss t han what t hey
t hi nk . What the organization should do for the policyholder who suffering
from loss. Many of the customer is not aware about the share market and if
they suffer loss than they blame either company or agent/sales manager. So I
have to manage the customers to remain with us and provide them the best
financial solution to them

As I can say this project gives the abstract of my work at HDFC LIFE as
financial analyst
Chapter: - 1
INTRODUCTION OF HDFC
LIFE
INRODUCTION OF HDFC LIFE

Risk is found everywhere. It cannot be eliminated together, only it can be

minimized. Human life is full of risk. There is a risk when a man walks on the
road, travels in a bus, train or an aero plane and when he is engaged in trade,
profession or business. Also there is a risk when property is destroyed by fire,
flood, earthquakes, etc. Thus, the involvement of risk is inescapable.

Risk Percentage

Drought 4%

Earthquakes 20%

Floods 35%

Storms 41%

Risk

4% Drought
20%
41% Earthquakes
Floods
Storms
35%
Insurance is a method by which we can spread over the risk. It is a way of
reducing uncertainty of occurrence of an event. Insurance is entirely a method
of co-operative endeavor where in the loss caused by a particular risk is spread
over among a large section of persons. Insurance is a process in which a large
number of persons collect their small contributions, called the premium, in a
pool and out of this losses are paid to the suffering persons.
The Business of insurance is related to the protection of the economic
values of assets. Every asset has a value. The asset would have been created
through the efforts of the owner. The asset is valuable to the owner, because he
expects to get some benefits from it. It is a benefit because it meets some of a
factory or a cow, the product generated by it is sold and income is generated. In
the case of a motor car, it provides comfort and convenience in transportation.
There is no direct income. Both are assets and provide benefits.

INTRODUCTION OF THE COMPANY

HDFC Life Insurance Company Limited. is one of India's leading private

insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance
Corporation Limited (HDFC Limited), India's leading housing finance
institution and a Group Company of the Standard Life Plc, UK. As on February
28, 2012 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding)
2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by
others.
 HDFC Life believes that establishing a strong and ethical foundation is an
essential prerequisite for long-term sustainable growth. To ensure this, we have
concentrated our focus on expansion of branch network, organizing an efficient
and well trained sales force, and setting up appropriate systems and processes
with optimum use of technology. As all these areas form the basic infrastructure
for establishing the highest possible customer service standards. Our core values
are drilled down to all levels of employees, as these are inviolable. We continue
to promote high integrity in business practices and shun short cuts and unethical
practices, as we wish to be perceived as an institution with high moral standing.
Since our inception in 2000, when the Indian insurance space was opened for
private participation, we have consistently focused on setting benchmarks in all
aspect on insurance business. Beingthe first private player to be registered with
the IRDA and the first to issue a policy on December 12, 2000,

The HDFC was established in 1977, for the purpose of providing the
home loan for long term
HDFC is rated as (AAA) by the CRISIL and ICRA.
In the year 2004, it was awarded DREAM HOME AWARD.
It has got 3rd rank in the investment management, in year 2012.
One of the largest financial institution of India with more then 2 million
satisfied customer base.
 HDFC HAS FOLLOWING GROUP COMPANIES

HDFC Ltd.
HDFC Standard life
HDFC Mutual fund
HDFC Securities
HDFC Bank
HDFC realty.com
HDFC CIBIL
HDFC Chubb General Insurance Co. Ltd.
HDFC Centre For Housing Finance
HDFC Distribution
HDFC Intel net
HDFC Securitization
HDFC Deposits
HDFC Home Loans
 OUT STANDARD LIFE (U.K)

Founded in 1825, and is now one of the largest life Insurance companies
in the world.
Strong reputation build over 182 years
Currently over 5 mn. policyholders benefiting from the services offered
Europes largest mutual life insurer


Values
1.Integrity
Honest and Truthful in every action
Transparency
Stick to principles irrespective of outcome
Be just and fair to everyone.

2.Innovation
Building a store house of treasures through experiences.
Looking at every product and process through fresh eyes
everyday.
3.Customer Centric
Understand customer expectations by keeping him as the
centre point.
Listen actively
Understand customer needs and deliver solutions.
Customer interest always supreme.
4.People Care
Genuinely understanding the people we work with.
Guiding their development through training and support.
Helping them develop requisite skills to reach their true
potential.
Know them on a personal front.
Create an environment of trust and
Respect for the time of others.
5.Team Work
Whole team takes the ownership of the deliverables.
Consult all involved, understand and arrive at a company Co-
operate and support across departmental boundaries.
Identify strengths and weaknesses according allocate
responsibility to achieve common objectives.

6.Joy and Simplicity

Environment that fosters fun in the form of celebration of
individual and team success.
To encourage work as fun that contributed to personal and
organizational development.
Joy is also derived through simple processes and forms.
VISION STATEMENTS

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. In
short, The most obvious choice for all

DIFFERENT PLANS OF HDFC SLIC

 Plans

Traditional ULIP

Traditional
Traditional plan is a life insurance solution that provides the
client only guaranteed return.

ULIP (Unit Linked Insurance Plan)

Unit Linked insurance plan is a life insurance solution that
provides the client with the benefits of protection & flexibility
in investment .It is solution which provides for life insurance
where the policy value at any time varies according to the
value of the underlying assets at the time.
CHAPTER-2

DISCRIPTIVE
WORK
LIFE INSURANCE SECTOR:

India is emerging a some of the two of the largest markets in the world for life
insurance products, the other being China. In the case of India, the three key
drivers of growth are a large insurable population, a high savings rate, roughly
at about 25 percent and a low penetration, at a mere 2.3 percent. In the 11
months of fiscal year 2004-05, life insurance companies collected premium
worth Rs172 billion and the market grew by a whopping 32.4 per cent during
the year. Of this, the public sector Life Insurance Corporation (LIC) had the
lion's share of the market with premium totaling Rs134 billion. Private sector
players recorded a spectacular growth of 129 percent over the last year,
compared to LIC's growth of 18 percent. India's GDP growth rate of 6 percent
per annum holds great potential for the sector. According to one estimate real
life premium are expected to grow at a compounded annual rate of 15 per cent
over the next ten years.

How does India's life insurance market compare with China's? While India's
market is currently the fifth largest, China's is the third largest in Asia after
Japan and Korea. Low penetration rate of insurance products is common to
IndiaandChina-atjustabout2.3 percent. In China, the savings rate is at 35
percent while for India it is a little lower at 25 percent. A large part of the
growth of the life insurance market in China was driven by the conversion of
bank deposits into endowment products. Demographically China's population
is ageing faster than India's FDI in Insurance Sector. The government of India
is planning to increase the equity limit for foreign direct investment from the
current 26 percent to 49 percent in the insurance sector. Liberalizations of the
FDI policy, including the Budget proposals for raising the sector al caps in
insurance is one of the main factors for the higher FDI inflows during the
current year. In 2003-04 the total FDI inflows in the country touched $3.4
billion. Indian insurance companies have been pushing for the FDI limit to be
raised. The current paid-up requirement of Rs1 billion for general insurance
and Rs2 billion for life insurance have become difficult targets to achieve for
the companies. The companies feel that injection of additional foreign equity
would reduce the costs. The sector was liberalized for private players towards
the end of 1999. Currently, there are 14 insurance companies, including the key
public sector company Life Insurance Corporation, in the life insurance sector
and 13 general insurance companies.
Changing Demographics

In1999, according to KSA-Techno park, savings and investments comprised

14 percent of an Indian consumers expenditure. The other items included
grocery (44 percent), personal care items (6 percent), consumer durables (6.6
per cent), clothing and books and music (5 percent each), eating out (8 per
cent), movies (1 percent). By 2003, expenditure on savings and investments
had declined to just 4.1 percent. The other items included grocery
(41percent) , personal care items (7.6 percent), consumer durables
(6.6percent), clothing (6.9 percent), eating out (10.8 percent), movies and
theatres (4.6percent), books and music (7.6 percent), vacations (3.9 per cent).
Clearly, the increased spending on other items have had a huge impact on the
amount people are spending on savings and investment products. (Source:
Business Worlds Marketing White book 2005).
Currency 10.6% 8.6% 8.5%
Deposits 33.3% 48.2% 41.5%
Of which Deposits with non banking companies 2.2% 16.4% 1.6%
Share sand debentures 14.3% 6.6% 2.7%
Small savings (central govt. schemes) 13.2% 7% 14.3%
Life insurance 9.5% 10.1% 15.5%
Provident and pension funds 16.9% 19.1% 14.3%
Composition of Household Financial Savings
Source: RBI Annual Reports.

Key Players in the Indian Market

While the public sector LIC dominates the Indian life insurance market with
nearly 80 percent of the market share. It has 248 branches, 115,000 employees
and over 1 million agents. It has also been improving internal processes and
systems, upgrading skills of its agency force and managers And developing
innovative products. LIC sold 1.69 corers policies during the year compared
to 18 lakh policies sold by all the private players.

ICICI Prudential is the leader among the private players with a market share of
6.69 percent after its premium collection totaled Rs11.54 billion. Bajaj Allianz
with sales of Rs 4.9 billion had a market share of 2.86 percent. Birla Sun Life
with sales of Rs 4.8 billion had a market share of 2.81 percent and SBI Life
with premium collection of Rs 3.9 billion, a market share of 2.29 percent.
With its combination of aggressive marketing through an agency force and the
use of the banking channel, ICICI has emerged as a key player. Initially, the
company drove new business by opening branches in new locations. The focus
has now shifted to penetrating the locations for increasing market share. The
company is also trying to get higher penetration in the High Net Worth
segment. The company has seven bank assurance partners and this is the
largest contributor to non-agency business. It also has 15 key non-bank
partners and 800 financial sales consultants. As of September 2004, it had 90
branches in 60+ locations. It took the initiative in launching non- traditional
products such as life-stage products, retirement solutions and child plans. It
also focused on Unit Linked Plans (ULIPs) to target new consumer segments.
It has a presence in 15 states through partnership arrangements and as of 2003-
04, it sold64, 764 policies in rural areas.

HDFC Standard Life has established its branches in 110 locations and is
targeting non-metro towns. It is hoping to leverage its pedigree/parentage to
gain more customer acceptance. As a result, it is focusing on quality not
39
Just volume growth. It has developed some innovative products like the
Loan Cover Term Assurance Plan which provides a lump sum in case of
death of the assured life during the term plan. Aimed at the growing segment
of home loan takers, the plan helps the family to repay the outstanding loan.
Given that HDFC has a huge database of home-loan customers; it can easily
tap into this resource to acquire new business. The company is leveraging
Its large customer database of home loan and banking clients to cross-sell
insurance products.

Birla Sun Life

Birla Sun Life was the first to offer ULIPs in the Indian insurance market.
And this has been the primary driver of its growth over the last one year. The
company has been investing in customer education and feels that as a result
customers don't view ULIPs as mutual funds but long term insurance. As of
2004, the company had 33 branches, 10,274 agents, 79 corporate
relationships and 10 bank assurance partners.

Bajaj Allianz has been focusing on second tier towns and cities which are yet
to witness the entry of other life insurance players apart from LIC. It is using
first mover advantage by opening an office in the most prominent location in
a non-metro town. It hires local people who are trained. Its mantra is to
develop only the indispensable infrastructure so that it can match the pricing
of LIC. Apart from that it claims that it is the only private player to provide
policy servicing at the branch level .Standard Chartered is currently its
biggest partner followed by Syndicate Bank and Centurion Bank. The
biggest challenge that the company faces is the weak infrastructure
particularly transport and communications in the smaller cities. It is also
facing a challenge in terms of banking channels, particularly for customers
who bank with cooperative banks, where delays in clearing
Cheques are in evitable. Tied agencies comprise the biggest channel (68%)
of new business acquisitions for Bajaj Allianz. Bank insurance (27%) is the
other significant channel of growth for the company.

Product Preferences among Consumers

Pension policies are becoming popular as people prefer to opt for

solutions that can offer them a regular income after retirement rather than
a lump sum on retirement. Measurable policies for a bulk sum are being
bought only for limited single use such as purchase of a house, childrens
higher education, marriage, etc. This consumer trend is likely to help
companies that offer pension schemes. Term policies are finding favor with
40
Youngsters. Term insurance policies are also finding more and more takers
among the younger generation of consumers. Because the offer protection at
extremely low costs.

It is assumed that life insurance is purchased only to avail of tax-breaks. But

the fact remains that while the tax paying population in the country is just
about 20 million, there is a huge population that has not been tapped. Only
the urban salaried class who fall in the tax net has been targeted for life
insurance policies for tax-saving purposes. The other income-earning classes
such as businessmen, professionals, farmers, provide a great opportunity for
life insurance marketers. There is a need to tap these customer segments
effectively. Currently all their disposable income is going into purchase of
consumer durables such as washing machines, TV, refrigerators and mobile
phones(as is evident from the fact that spending on savings/investment
products has declined from 14 percent to 4 percent in the past decade).

Mutual Funds (MF) have benefited the most during the last two years. Take
the example of the Systematic Investment Plans (SIP) of mutual funds. In just
one quarter ICICI PRU MF sold 20,000 SIPs and it has the potential of
selling about 100,000 new SIPs in a year. There are 33 Mutual Fund
companies in the country and based on this trend one could say that the
estimated fund in flow in MFs through this route alone could touch the Rs20
billion per month. Due to the good performance of MF during the past 2
years, life insurance companies have lost out to mutual funds.

PROFILING PROSPECT
For the Providing assistance of financial management there are certain
criteria for the selection of policy holder. These criteria differ from different
insurance company. We can divide the profiling prospect of HDFCSLIC in
two ways.
Which are thus:-

1.H.N.I (HIGHLY NET WORTH INDIVIDUALS)

Highly net worth individuals are those persons who having yearly income
more than 20 lacs and they are specially treated as H.N.I clients and they have
provided relationship manager who watching and manage their funds and
provided financial advices and updating all information of policies
2.LOYAL CUSTOMERS FUND VALUE AND HAVING DOWN

Every Company Want more and more business and market share and we all
know that the work in insurance sector is totally based upon the customer
base. The more you have customer the more you earn business. So
HDFCSL provide the facility to customers that they can contact
with financial assistant in the company and manage their funds
which is in loss or customer is not aware about their policies and
managing funds also.

TOTAL NO. OF PEOPLE

CONTACTED

During the work of financial Assistance I have contacted 100 people

including phone calling, meetings, and the other efforts. In these 100 people
I have gotten appointment of 65people. In the 65 person I have assisted 39
people. The percentage of converting the profits at 9%.

During the meeting time with the customer these questions are generally
asked by them which are thus:-

Which type of this policy in which I m getting loss!

Our premium will charge by your company or

premium is invested or not?

How your policy is working?

How can I believe on you and your company?

Mostly person have still faith in LIC so I have to convince them against the
LIC.
RESEARCH METHODOLOGY
ABSTRACT OF MARKET RESEARCH
Marketing Research provides information that assists and organization to
define opportunities for product development and market strategy. It works
by assessing whether marketing strategies are accurately targeted, and by
identifying market opportunities or changes that are required by customers.
Market research tends to confirm issues that are well-known in a market
initially, but if planned well and effectively it will also identify new
opportunities, market niches, or ways by which to improve sales, marketing
and communications activities.

WHY MARKET RESEARCH STUDY

The role of market research, therefore, is to reduce uncertainty in decision

making, to monitor the effects of decisions taken, and identify the
performance of a company or a product in the market. During internship my
market survey was related with the distribution enhancement of the insurance
policies of HDFCSL. To be more specific, we can list five key uses for
market research, namely to:

a. Identify the size, shape, and nature of a market, so as to understand the

market and marketing opportunities.
b. Test out strategic and product ideas which help to define the most effective
customer-led strategies.
c. Monitor the effectiveness of strategies
d. It will define when marketing expenditure, promotions and targeting need
to be adjusted or improved.

The variety of purposes listed above makes it clear that market research is not
simply a first check.It is useful ahead of any action, but it also provide
same answer of checking and refining views as operations proceed.
Companies, especially those for which budget seem tight, who have selected
one of these uses for market research are always concerned to make the
research a worthwhile investment. Best results come when their marketing
and sales planning is influenced by the results of research. In other words,
when research pays for itself by providing a basis for change and
improvement in operational matters.
RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem.

It may be understood as a science of studying now research is done
systematically. In that various steps, those are generally adopted by a
researcher in studying his problem along with the logic behind them.
It is important for research to know not only the research method but also
know
methodology. The procedures by which researcher go about their work of
describing, explaining and predicting phenomenon are called methodology.
Methods comprise the procedures used for generating, collecting and
evaluating
data. All this means that it is necessary for the researcher to design his
methodology for his problem as the same may differ from problem to
problem. Data collection is important step in any project and success of any
project will be largely depend upon now much accurate you will be able to
collect and how much time, money and effort will be required to collect that
necessary data, this is also important step.
Data collection plays an important role in research work. Without proper data
available for analysis you cannot do the research work accurately.
OBJECTIVE OF
PROJECT

My project is being undertaken in HDFCSL in which finance management

program and distribution enhancement of insurance policies of HDFCSL has
been implemented as a marketing strategy. HDFCSL tied up with world class
insurance product.

Primary Objective

The primary objective of my project is to pr o v i d e Financial assistance and

to increase market share of HDFCSL. In the insurance sector the main work is
done by the financial planning manager who brings selling for the
organization as well providing the best solution for policies which is not in
profit. It improves the services of the organization.

Secondary Objective

In this point we can conclude the company objective which is to increase the
market share in the insurance sector and this will happens it becomes more
beneficiary and reliable to the customer. Customer should have faith on it. It
is trying to do it. Today it comes under top 5 insurance companies. It wants to
reach on the top.

Working Procedure

In my summer training I have targeted Hyderabad. I have collected my data

some parts of Hyderabad. Here I have to approach various detail of insurance
product of HDFCSL and the other competitor of it, suggestions, its marketing
strategy and its advertisement. As a part of marketing research I also have
collect the data in order to find out market share of HDFCSL from our sample
space. During the period I was in continuous touch with my senior and sales
manager and I have to submit daily report of my work and full information
about phone calls and questioners. Questionnaire consisting of open ended
questions was used for collecting the information.

Sample Area

My working area was Hyderabad. As we know that those person will invest in
insurance sector who are salaried or professional. I have targeted those person
whos age is equal or more than 25.
48
 30

Instrument Used

I have collected my data form LIFE ASIA and through phone calling. Life
asia is the software which used by every insurance company and this
software help me to know the customer details and customer policy
information which help me providing best solution through discussion with
my seniors.

Types of data collection

There are two types of data collection methods available.
1. Primary data collection
2. Secondary data collection

1) Primary data
The primary data is that data which is collected fresh or first hand, and for first
time which is original in nature. Primary data can collect through personal
interview, questionnaire etc. to support the secondary data.

2) Secondary data collection method

The secondary data are those which have already collected and stored.
Secondary data easily get those secondary data from records, journals, annual
reports of the company etc. It will save the time, money and efforts to collect
the data. Secondary data also made available through trade magazines, balance
sheets, books etc. This project is based on primary data collected through
personal interview of head of account department, head of SQC department and
other concerned staff member of finance department. But primary data
collection had limitations such as matter confidential information thus project is
based on secondary information collected through five years annual report of
the company, supported by various books and internet sides. The data collection
was aimed at study of working capital management of the company
 31

We used both methodology i.e. primary and secondary

We take the sample size of 100 POLICY HOLDERS
Sample location is Hyderabad
This is stratified sampling
 32

LIMITATIONS OF THE STUDY

Limitations of the study
Following limitations were encountered while preparing this project:
1) Limited data:-
This project has completed with annual reports; it just constitutes one part of
data collection i.e. secondary. There were limitations for primary data collection
because of confidentiality.
2) Limited period:-
This project is based on five year annual reports. Conclusions and
recommendations are based on such limited data. The trend of last five year
may or may not reflect the real working capital position of the company
3) Limited area:-
Also it was difficult to collect the data regarding the competitors and their
financial information. Industry figures were also difficult to get.
 33

FINANCE DEPARTMENT
 34

CRM is also referred to as Customer Service Management. Generally organizations are more
focused on the path they travel through to reach the success or determined goal. The stages
they traverse includes design, development, marketing, service support, analyzing managerial
track, channeling the development phase, research and development and many more. These
stages of ones business life are as a whole supported with the Customer Relationship
Management features.
In the field of business development, and short term goal tracking with standard terms and
strategies, one must keep up certain flexible terms of communicational relationship and
managerial provisions among the company employees, customers, and clients and with
various departmental staff and members. This enhances a co-operative and comfortable zone
to make the right move of the company development on time.
Focusing on the marketing department, it is important to realize the important of promoting
ones products sales via advertisements, and efficient marketing strands with better quality.
Advertising has to be powerful means to reach the targeted customers in a short time span
with less investment for a perfect outcome of the resulting sale. Sale includes product quality,
competitiveness, advertisement, managing the service to meet the requirements of the clients
and many more.
Marketing ones product means to take the product to the customers who are into the track or
into the field of trade. Sales department is specific in making the product move to the clients
with respect to the deal of sale. This department is more concerned about the sales of the
product that make use of customer service and management terms to keep up good terms on
serving the customers with help-line service to solve problems related to purchase and utility
of products from the company.
Benefits of CRM techniques are more focused towards customer management and services.
Customer relationship management attracts and retains the customers winning the growing
loyalty of the customer and company relationship. CRM processes helps in guiding the way
an organization runs that are targeted generating quality leads, sales and services that are
more focused on the goals and objectives. They help in forming a tie between customer and
organizational relationship that improves the customer satisfaction with the high quality
service and makes the customers feel comfortable to take up business in futurity.
In many industries customers experience with a companys customer service can
significantly affect their overall opinion of the product. Companies producing superior
products may negatively impact their products if they back these up with shoddy service. On
 35

the other hand, many companies compete not because their products are superior to their
competitors but because they offer a higher level of customer service. In fact, many believe
that customer service will eventually become the most significant benefit offered by a
company because global competition (i.e., increase in similar products) makes it more
difficult for a companys product to offer unique advantages.
Customer service manifests itself in several ways, with the most common being a dedicated
department to handle customer issues. Whether a company establishes a separate department
or spreads the function among many departments, being responsive and offering reliable
service is critical and in the future will be demanded by customers.

Our Vision & Values

Our 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'.

Our Values

Values that we observe while we work:

Integrity
Innovation
Customer centric
People Care "One for all and all for one"
Team work
Joy and Simplicity
ORGANIZATIONAL STRUCTURE
-
BRANCH DEVELOPMENT MANAGER
 36

EXECUTIVE SALES MANAGER

SR. SALES MANAGER SR. SALES MANAGER

8 TO ASST. SALES MANAGER

IN EAH SR. SALES MANAGER

25 TO 35 ADVISORES IN EACH
ASST. SALES MANAGER

Figure 1.2 Organization Structure

 37

INDUSTRY OVERVIEW
With an annual growth rate of 15-20% and the largest number of life insurance policies in
force, the potential of the Indian insurance industry is huge. Total value of the Indian
insurance market (2013-11) is estimated at Rs. 550 billion (US$10 billion). According to
government sources, the insurance and banking services contribution to the country's gross
domestic product (GDP) is 7% out of which the gross premium collection forms a significant
part. The funds available with the state-owned Life Insurance Corporation (LIC) for
investments are 8% of GDP. Till date, only 20% of the total insurable population of India is
covered under various life insurance schemes, the penetration rates of health and other non-
life insurances in India is also well below the international level. These facts indicate the
of immense growth potential of the insurance sector. The year 1999 saw a revolution in the
Indian insurance sector, as major structural changes took place with the ending of
government monopoly and the passage of the Insurance Regulatory and Development
Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign
players to enter the market with some limits on direct foreign ownership. Though, the
existing rule says that a foreign partner can hold 26% equity in an insurance company, a
proposal to increase this limit to 49% is pending with the government. Since opening up of
the insurance sector in 1999, foreign investments of Rs.8.7 billion have poured into the
Indian market and 21 private 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 sector and
snapping up the new innovative products on offer. The life insurance industry in India grew
by an impressive 36%, with premium income from new business at Rs. 253.43 billion during
the fiscal year 2004-2005, braving stiff competition from private insurers. This report "Indian
Insurance Industry: New Avenues for Growth 2012", finds that the market share of the state
behemoth, LIC, has clocked21.87% growth in business at Rs.197.86 billion by selling 2.4
billion new policies in2004-05. But this was still not enough to arrest the fall in its market
share, as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs.
24.29 billion in2003-04 Though the total volume of LIC's business increased in the last fiscal
year (2004-2005) compared to the previous one, its market share came down from 87.04 to
 38

78.07%. The 14 private insurers increased their market share from about 13% to about 22%
in a year's time. The figures for the first two months of the fiscal year 2005-06 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. There are
presently 12 general insurance companies with four public sector companies and eight private
insurers. According to estimates, private insurance companies collectively have a 10% share
of the non-life insurance market.

INTRODUCTION
Financial management means procurement of funds at minimum costs and
effective utilization in order to maximize the wealth of shareholders.

The term of financial management refers to its relationship with the closely-
related fields of economics and accounting, its functions, scope and objectives.
Financial management, as an academic discipline, has undergone fundamental
changes in its scope and coverage. In the early years of its evolution it was treated
synonymously with the raising of funds. In the current literature
pertaining to financial management, a broader scope so as to include, in addition to
procurement of funds, efficient use of resources is universally recognized.

Financial management, as an integral part of overall management, is not a totally,

independent area. It draws heavily on related disciplines and fields of study, such as
economics, accounting, marketing, production and quantitative methods. A part from
economics and accounting, finance also draws for its key day to day decisions on
supportive disciplines such as marketing, production and quantitative methods, for
instance, financial managers should consider the impact of new product
development and promotion plans made in the marketing area since their plans will
require capital outlays and have an impact on the projected cash flows.

Finally, the tools of analysis developed in the quantitative methods area are
helpful in analyzing complex financial management problem. Organization makes
 39

their planning for the financial sources which are very helpful in the future course
of action.
Taking a commercial business as the most common organizational structure, the key
objectives of financial management would be to:

Create wealth for the business

Generate cash, and
Provide and adequate return on investment bearing in mind the risks that the
business is taking and the resources invested.

CONCEPT OF FINACING

1. Financial Planning

Management needs to ensure that enough funding is available at the

right time to meet the needs of the business. In the short term, funding may be
needed to invest in equipment, pay employees and fund sales made on credit.
In the medium and long term, funding may be required for significant
additions to the productive capacity of the business or to make acquisitions.

2. Financial Control

Financial control is a critically important activity to help the business ensure that
the business is meeting its objectives.

3. Financial Decision-Making

A key financing decision is whether profits earned by the business should be retained
rather than distributed to shareholders via dividends. If dividends are too high, the
 40

business may be starved of funding to reinvest in growing revenues and profits

further.

FINANCIAL DECISIONS

Financial management consists of four major decisions or functions which are as

discussed as below.

1. Investment decision

Investment decision is the long term, strategic policies of an organization. Investment

decisions have a long term effect on the working of an organization.
Thus an enterprise should invest in proposals which maximize share value.
2. Financing decision

There are various sources of capital like equity, preference shares, borrowed funds, and
retained profits. The finance manager has to select a proper mix of owned at the
minimum cost. A financing decision adds to the value to the value of shareholders.
3. Dividend decision

Profits can either be distributed or reinvested into the business. The

proportion of profits that needs to be distributed and that needs to be retained is a crucial
decision. It is the job of finance manager to satisfy the shareholders as well as claw
 41

back into the business. This division of profit when done in an optimum manner
maximizes shareholder value.
4. Liquidity decision

An enterprise needs finance for the day today activities for the smooth
functioning. The brand of FM that deals with investments in current assets &
liabilities, in other words investment is the net working capital comprises of the
liquidity decisions.

DEPRECIATION POLICY IN HDFC LIFE

Depreciation is charged as per the below mentioned rates

Asset Rate as per Companies Act Rate as per Income Tax

(Written Down Value method) Act (Written Down Value
WDV method) WDV
Buildings Residential Units 1.63 % Residential units 5 %
Office Premises 1.63 % Office Premises 10 %
(Straight Line Method
SLM)
Computers 25 % (SLM) 60 %
Air Conditioners & 13.91 % 15 %
Refrigerator
Furniture & Fixtures 18.10 % 10 %
Office Equipment 13.91 % 15 %
Electrical Installations 13.91 % 15 %
Vehicles (Motor Cars) 25.89 % 15 %
42
 43

Companies Act

1. The rate 13.91 % is applicable to Plant and Machinery (applicable to A/C, Office
Equipment and Electrical Installations).
2. The Depreciation under Companies Act for Computers is 16.21 % (SLM). However,
the rate adopted by us is 25 % SLM.
3. Except Computers, all the rates are as per Companies Act.
4. No depreciation is charged in the year of sale.
5. Depreciation is charged for the full year in the year of purchase.

Income Tax Act

1. Machinery and Plant other than the specified 15 % (applicable to A/C, Office
Equipment and Electrical Installations).
2. Rates of premises, computers, vehicles and furniture specified.
3. If the asset is put to use for 180 days or more in a year, 100 % depreciation is provided
during the financial year. If the period is less than 180 days ---50 % depreciation is
provided for tax purposes.

FINACIAL STATEMENT FOR THE YEAR 2012-10

 44

1.Cash flow
Particular 2013 2012
Operating activities
Amount received form policy holder 70,817,804 54,747,190
Amount received to reinsurance -312,168 -384,636
Amount paid to policy holder -12,053,422 -5,414,218
Amount paid as commission -5,417,619 -4,136,736
Payment of employee and suppliers -13,207,483 -15,583,363
Deposited with RBI 0 100,00
Income tax paid -309,142 -230,833
Net cash flow from operating activities 39,821,183 29,453,152
Investing activities 155,217,800 68,782,936
Purchases of fix assets -217,752 -581,822
Sales of fix assets 5,444 3,159
Investment -48,767,468 -39,057,231
Interest income 48,17,558 3,805,029
Dividend income 1,338,737 745,975
Net cash flow from investing activities -42,823,481 -35,081,730
Financing activities
Issue of share 1,720,000 5,250,000
Net cash flow from financing activities 1,720,000 5,250,000
Net increase in cash and cash equivalents -1,282,298 -384,578
Cash and cash equivalent as at beginning of the 4,108,660 4,493,238
year
Cash and cash equivalent as at end of the year 2,826,362 0
 45
2. BALANCE SHEET

Particular 2013 2012

Liability
Share capital 19,680,000 17,958,180
Reserve fund 552,892 552,892
Credit change a/c 184,435 -77,610
Credit change a/c 205,087 -296,885
policy liabilities 37,666,908 29,092,419
insurance reserve 0- 0
Provision for link liabilities 127,701,636 84,085,083
Add: Fair value change 27,516,164 -15,302,147
total provision 155,217,800 68,782,936
Funds 1,490,013 586,395
funds for provision 1,064,831 531,970
Surplus 0 0
Profit and loss 6,95,56,324 5,51,83,763
Total 216,061,966 117,130,297
Assets
Share holder 6,304,757 4,291,597
policy holder 43,415,382 30,152,727
Assets held to cover link liabilities 155,217,800 68,782,936

Loans 40,366 30,248

Fix assets 1,143,777 1,451,346
Cash and bank 2,826,362 4,108,660
Advance 4,917,758 5,428,699
Current asset 12,28,585 8,820,225
Provision 187,617 208,813
Net working capital 4,725,082 508,321
Miscellaneous expense 14,664,966 11,913,122
Other Asset 0 0
Total 216,610,966 117,130,297
 46

3. RATIO ANALYSIS

(A) CURRENT RATIO

CURRENT ASSETS:

Cash and bank balances: 2,826,362

Advances and Other Assets: 4,917,758

CURRENT LIABILITIES: 12,281,585

CURRENT ASSETS
CURRENT RATIO=
CURRENT LIABILITIES

77,44,120
2012-10 = 12,281,585

=0.63:1

9537359
2011-12= 8820225

=1.08:1
 47

1.2

0.8

Column1
0.6

0.4

0.2

0
2012-2013 2011-2012

Comment

Current ratio of HDFC LIFE insurance, has 0.63:1, it means it is less than 1
that indicates firms ability to meet current obligations & greater the safety of funds of
short-term creditors. It also indicates the sound solvency of the company is lover .
 48

(B) LIQUID RATIO

CURRENT ASSETSSTOCK
LIQUID RATIO: = 100
CURRENT LIABILITIESBOD

77,44,12015,21,520
2012-10= 100
12,281,585

= 0.60:1

953735945,44,600
2011-12=
8820225

= 0.57:1

0.6
0.6
0.59
0.59
0.58 Column2
0.58
0.57
0.57
0.56
0.56
2012-2013 2011-2012

Comment
The liquid ratio of HDFC life in 2012 was 0.57 and in 2013 is .60 so increasing the
liquid ratio and company have a good liquid position over the year.
 49

(C)Gross profit ratio

GROSS PROFIT
GROSS PROFIT RATIO = 100
NETSALES

70,051,044
2012-10 = 100
31,48,95,290

= 30.25 %

55,646,93 0
2011-12= 100
25,56,98,360

= 21.76%

35

30

25

20 Column1

15

10

0
2012-2013 2011-2012

Comment:-
The gross profit ratio of HDFC LIFE in 2012 was 21.76% and in 2013 is 30.25% so
increasing the gross profit of HDFE LIFE over the year and company become a strong
in his financial performance.
 50

(D) NET PROFIT RATIO

NET PROFIT
NET PROFIT RATIO= 100
NETSALES

6,95,56,324
2012-10= 100
31,48,95,290

= 22.09%

5,51,83,763
2011-12 = 100
25,56,98,360

= 21.58%

22.1
22
21.9
21.8 Series 3
21.7
21.6
21.5
21.4
21.3
2012-2013 2011-2012

Comment:-

The net profit ratio of HDFC LIFE in 2012 was 21.58% and in 2013 is 22.09%
therefore the net profit is increasing. The company have good profit margin. The
company should more and more profit for the future.
 51

(E)Net retention ratio

NET PREMIUM
NET RETENTION RATIO= 100
GROSSPREMIUM

6,95,56,324
2012-10 = 100
70,051,044

= 99.29 %

55,183,763
2011-12= 100
55,646,93 0

=99.17%

99.3
99.28
99.26
99.24
99.22
Series 3
99.2
99.18
99.16
99.14
99.12
99.1
2012-2013 2011-2013

Comment:-
The net retention ratio of HDFC LIFE in 2012 was 99.17% and in 2013 is
99.29% therefore increasing the net retention ratio of the HDFE LIFE. So company
become successful for maintain the premium level over the year.
 52

(F)RATIO OF EXPENSES OF MANAGEMENT

RATIO OF EXPENSES OF MANAGEMENT

MANAGEMENT EXPENSES
= TOTALGROSSPREMIUM
100

20,345,376
2012-13 = 70,051,044 100

= 29.04 %

21,915,907
2011-12 = 100
55,646,937

=39.38%

40
35
30
25
Series 3
20
15
10
5
0
2012-2013 2011-2012

Comment:-
 53

The ratio of expense of management of HDFC LIFE in 2012 was 39.38% and in
2013 is 29.07% so decreasing the management expenses over the year

(G)COMMISSION RATIO

Gross commission
COMMISSION RATIO = 100
TOTALGROSSPREMIUM

5,254,973
2012-13 = 100
70,051,044

= 7.50 %

4,248,904
2011-12 = 100
55,646,937

=7.64%

12

10

6
COMMISSION RATIO(%)

0
2012-2013 2011-2012
 54

(H)RATIO OF POLICY HOLDERS LIABILITIES TO

SHAREHOLDERS FUNDS:

RATIO OF POLICY HOLDERS LIABILITIES TO SHAREHOLDERS FUNDS :

POLICY HOLDERS LIABILITIES

= SHAREHOLDERS FUNDS :
100

37666908
2012-13 = 100
6304757

= 597.44 %

290992419
2011-12= 100
4291597

= 677.89%
 55

680
660
640
620 Series 3
600
580
560
540
2012-2013 2011-2012

(I)RETURN ON INVESTMENT

RETURN ON
EBIT
INVESTMENT = 100
CAPITAL+ SURPLUS+ RESERVE

5,029,631
2012-13 = 19,680,000+552,892 100

= 24.86%

2751844
2011-12 = 19,680,000+552,892 100

=13.60%
 56

25

20

15 Series 3

10

0
2012-2013 2011-2012

Comment:-
The return on investment ratio of HDFC LIFE in 2012 was 13.60% and
in 2013 is 24.86% there increasing the return on investment over the year so company
become a profitable over the year.

(J) DEBT-EQUITY RATIO

LONGTERMDEBT
DEBT-EQUITY RATIO = * 100
SHAREHOLDER SFUND

790592313
2012-13 = 100
500494238

=1.58%

579047751
2011-12 100
461137821

=1.25%
 57

1.6

1.4

1.2

1
Series 3
0.8

0.6

0.4

0.2

0
2012-2013 2011-2012

Comment:
The debt-equity ratio of HDFC LIFE in 2012 was 1.25% and in 2013 is 1.58% there
increasing the level of equity against long term debt.

TREND ANALYSES

Asset 2012-2013 2011-2012 2012-2013(%) 2011-

2012(%)
Share holder 6,304,757 4,291,597 100% 68%
policy holder 43,415,382 30,152,727 100% 69%

Assets held to cover 155,217,800 68,782,936 100% 44%

link liabilities
Loans 40,366 30,248 100% 73%
Fix assets 1,143,777 1,451,346 100% 126%
Cash and bank 2,826,362 4,108,660 100% 145%
Advance 4,917,758 5,428,699 100% 110%

Current Asset 12,28,585 8,820,225 100% 717%

Provision 187,617 208,813 100% 111%

Net working capital 4,725,082 508,321 100% 10%

Miscellaneous expense 14,664,966 11,913,122 100% 81%

 58

Other Asset 0 0 100%

Total 2,16,610,966 117,130,297 100% 5%

Asset

Liability
Liability 2012-2013 2011-2012 2012- 2011-
2013(%) 2012(%)
Share capital 19,680,000 17,958,180 100% 91%
Reserve fund 552,892 552,892 100% 100%
Credit change a/c 184,435 -77,610 100% 142%
Credit change a/c 205,087 -296,885 100% 42%
policy liabilities 37,666,908 29,092,419 100% 77%
insurance reserve 0- 0 100% 100%
Provision for link 127,701,636 84,085,083 100% 0

liabilities
Add: Fair value change 27,516,164 -15,302,147 100%
total provision 155,217,800 68,782,936 100% 44%
Funds 1,490,013 586,395 100% 39%
funds for provision 1,064,831 531,970 100% 49%
Surplus 0 0 100% 100%
Profit and loss 6,95,56,324 5,51,83,763 100% 79%

Conclusion:-
 59

According to trend analysis the hdfc life doing improvement in 2011-2012

compare to 2012-2013 so company is growing in following way
1). The liquid position of the company improving around 145 %
2).The increase in fixed asset is financed by issue of debenture
3).Higher improvement in current asset the compare the two year 717% are
improvement in 2011-2012

COMMON SIZE STATEMENTS

Asset 2013 2013 (%)

Share holder 4,291,597 3.66
policy holder 30,152,727 25.74
Assets held to cover 68,782,936 58.72
link liabilities
Loans 30,248 0.025
Fix assets 1,451,346 1.24
Cash and bank 4,108,660 3.5
Advance 5,428,699 4.63
Current Asset 8,820,225 7.53
Provision 208,813 0.18
Net working capital 508,321 4.34
Miscellaneous expense 11,913,122 10.17
Total 117130297 100
 60

TREND ANALYSES

Share Capital

share capital
PARTICULAR 2012-13 2011-12 incre/decre %
Authorised Capital 30,000,000 30,000,000 0 0
Issued Capital 19,680,000 17,960,000 17,20,000 9.57
Subscribed Capital 19,680,000 17,960,000 17,20,000 9.57
Called-up Capital 19,680,000 17,960,000 17,20,000 9.57

share capital %

10
9
8
7
share capital %
6
5
4
3
2
1
0

CONCLUSION:
in the year 2011-12 the Authorized share capital was 30,000,000 and at current year
the Authorized share capital are same there are no changes arise in Authorized share
capital between two year and Called-up Capital, Subscribed Capital , Issued Capital
were 17,960,000 and in current year increase by 17,20,000 so as compare to the
previous year increase by 9.57 %
 61

RESERVES AND SURPLUS

PARTICULAR 2012-13 2011-12 incre/decre %

Revaluation Reserve 552,892 552,892 0 0

Revaluation Reserve
100%
90%
80%
70%
60%
50% Revaluation Reserve
40%
30%
20%
10%
0%

CONCLUSION:

in the year 2011-12 the Revaluation Reserve are 5,52,892 and at current year
are same there are no changes arise in the current year,

Investments Shareholders
 62

PARTICULAR 2012-13 2011-12 incre/decre %

Government Securities 2,471,702 2,180,149 291,553 13.373077
Equity 457,377 233,783 223,594 95.641685
Debentures / Bonds 208,675 100,531 108,144 107.57279
Investment Properties 757,540 757,540 0 0
Infrastructure 1,108,284 386,899 721,385 186.45305
Other Investments 145,085 64,797 80,288 123.90697

5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
 63

CONCLUSION

in the year 2011-12 the investment in Government Securities was 2180149

and at current year are having 2471702 so increase by 291,553 and so 13.37 % are
increase as compare to previous. And Equity, Debentures / Bonds, Investment
Properties, Infrastructure, Other Investments, are increase by respectively 95.64%,
107%,0%, 186% 123%.

Working Capital
current assets 2012-13 2011-12 incre/decre %
Cash 279,148 668,726 -389,578 -58.25674
Deposit Accounts 1,340,581 1,751,354 -410,773 -23.4546
Current Accounts 1,206,633 1,653,161 -446,528 -27.01056

current liabilities 2012-10 2011-12 incre/decre %

Agents Balances 422,567 525,903 -103,336 -19.64925
Premiums received in 296,400 278,748 17,652 6.3326015
advance
Security Deposits 21,441 21,441 0 0
Sundry creditors 5,078,198 3,894,536 1,183,662 30.392889
Claims Outstanding 433,935 198,361 235,574 118.76024
Unallocated Premium 232,117 274,095 -41,978 -15.31513
 64

100%

80%
% -58.25674491 incre/decre -389,578
60% -23.4545957 -410,773 -446,528
-27.01055735 % incre/decre
40% 2008-09 668,726 2009-10 279,148
1,751,354 1,653,161 1,340,581 1,206,633
20% 2008-09 2009-10

0%
Agents Balances

CONCLUSION:
As compared to previous year, Current Accounts are decrease by as compare to
the previous year respectively,-58%, -19%, 6.33%,0%, 30.39%, in the year 2011-12
the current asset of cash, Deposit Accounts -23%, -27%,. And current liabilities of
Agents Balances, Premiums received in advance, Security Deposits, Sundry creditors
are decrease or increase

Comparison of funds for year 2013:

Fund 2012 2013

Growth fund 38 73
Balance manage
fund 32 48
Equity manage
fund 34 62
Liquid manage 28 31
 65

fund

80
70
60
50
40
30
20
10
0

In above diagram comparison of funds performance for year 2013.

The above diagram represents the comparison of various funds. The growth
fund in 2012 was 38% and at present in 2013 are 73% so increased by 35%. And
second fund is balance manage fund there was 32%in 2012 and at present jn 2013 is
48% so increase by 16%. And third fund is equity manage fund there was in 2012 was
34% and at present in 2013 are 62% so increase by 28%. And forth fund are liquid
fund there was in 2012 was 28% and present in 2013 are 31% so increase by 4%.

Equity markets

INDICES 31-5-13 30-4-2013 1month rate 1year rate of

of return return
BSE Sensex 16,219 17,319 -6.35 -12.35

S&P CNX 4,924 5,248 -6.17 -11.44

 66

Nifty

BSE 100 4,942 5,268 -6.19 -12.34

BSE Mid 5,908 6,316 -6.46 -14.50

Cap
BSE Small 6,271 6,765 7.30 -23.86
Cap
 67

6.Processes

The process should be customer friendly in insurance industry. The speed and accuracy of
payment is of great importance. The processing method should be easy and convenient to the
customers. Installment schemes should be streamlined to cater to the ever growing demands
of the customers. IT & Data Warehousing will smoothen the process flow. IT will help in
servicing large no. of customers efficiently and bring down overheads. Technology can either
complement or supplement the channels of distribution cost effectively. It can also help to
improve customer service levels. The use of data warehousing management and mining will
help to find out the profitability and potential of various customers product segments.

What is Welcome Calling to the customer?

Welcome Calling is a call made to all our new customers to ensure that the policy chosen by
them is as per requirement.

What is the objective of Welcome Calling?

Welcome Calling serves mainly 2 objectives:

First, to contact the customer as per the given contact details thereby
ensuring contact ability.

Second, to verify if the customer has fully understood the important

features the insurance plan chosen and whether it suits the customer's requirement, thereby
avoiding mis-sale occurrences.
 68

The process of customer Welcome Calling of customer

A welcome call is made to the customer after the application for insurance policy has been
accepted by the company.
Before disclosing any policy related information, our Customer Service Associate (CSA) will
do a mandatory verification by asking few questions.
If the policy holder is not available, information can be shared with a third party who takes
care of the policy holder's finances, post confirmation from the third party that all the
discussed details will be shared with the Policy Holder.
Once the verification is done, the CSA will inform the customer on all the Key features of the
insurance plan.
Once all the key features have been communicated, the CSA can also make a note of any
query, request or complaint by the customer.
If the customer is not contactable despite multiple attempts, we will send a Welcome Calling
Letter to the communication address of the customer.

Physical Distributions

Distribution is a key determinant of success for all insurance companies. Today, the
nationalized insurers have a large reach and presence in India. Building a distribution
network is very expensive and time consuming. Technology will not replace a distribution
network though it will offer advantages like better customer service. Finance companies and
banks can emerge as an attractive distribution channel for insurance in India. In Netherlands,
financial services firms provide an entire range of products including bank accounts, motor,
home and life insurance and pensions. In France, half of the life insurance sales are made
through banks. In India also, banks hope to maximize expensive existing networks by selling
a range of products.

The physical evidences include signage, reports, punch lines, other tangibles, employees
dress code etc.

A. Tangibles: banks give pens, writing pads to the internal customers. Even the
passbooks,chequebooks, etc reduce the inherent intangibility of services.
 69

B. Punch lines: punch lines or the corporate statement depict the philosophy and attitude
ofthe bank. Banks have influential punch lines to attract the customers.

SOME CHANNEL OF DISTRIBUTIONS IN HDFC LIFE

1234 . ADC lio tr e pr c not ar S t ait vl e s I n d u c t i o n

 70

conclusion
 71

CONCLUSION

Introduction

1. It has got 3rd rank in the investment management, in year 2006One of the largest financial
institution of
2. India with more then 2 million satisfied customer base.
3. 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. In short, The most obvious choice for all

Financial analysis is important aspect of financial management. The study of

financial managementat HDFC LIFE LTD. has revealed that the current ratio
was as per the standard industrial practice but the liquidity position of the
company showed an increasing trend.
 72

Finance department

1. The proprietary ratios shows efficient capital structure. Considering the turnover ratios, the
management having effective collection system and low investment in stocks.
2. The Depreciation under Companies Act for Computers is 16.21 % (SLM). However, the rate
adopted by us is 25 % SLM.
3. Machinery and Plant other than the specified 15 % (applicable to A/C, Office Equipment
and Electrical Installations).
4. Current ratio of HDFC LIFE insurance, has 0.63:1 It also indicates the sound solvency of the
company is higher.
5. The net profit ratio in 2012 was 21.58% and in 2013 is 22.09% therefore the net profit is
increasing. The company have good profit margin. The company should more and more
profit for the future.
6. Issued Capital were 17,960,000 and in current year increase by 17,20,000 so as compare to
the previous year increase by 9.57 %
 73

RECOMMENDATION AND SUGGSTION

 74

RECOMMENDATIONS
The HDFC company should now try to identify the gap between current level of customer
service and customer expectations. Some of the strategies being recommended are as
follows:

Brand Building:
HDFC is a very huge Brand in US in Insurance but in India it is not known as a Insurance
brand. So HDFC need to focus on Brand building Activities which can be done through
Advertising, Road shows, Knops, Sponsoring Events in rural & Urban Areas.

Educating the Consumers:

HDFC should take initiative to educate the consumers regarding all these aspects & take
competitive Advantage on this front as its Allocation charges are minimum in the whole
Indian Insurance Industry.

Need to Increase Market Presence:

It should make more channel partners & do business tie ups with more broking houses &
should hire marketing agencies for aggressive marketing purpose. It can also increase its
Business Units.

Concentration More On Rural Areas :

HDFC need to concentrate more towards the rural areas as 60-70% of India population is
living in rural areas and most of the people in rural areas are not insured so there is a huge
potential in the rural sector.

Product Differentiation:
Offering a product that is distinctly different from other products available in the market by
other insurance players.

More Guaranteed Plans to be Introduced:

As we know today the stock market is giving very less return even in last year the return
comes Negative so the company need to introduce some more granted plans so that customer
 75

can invest in them and have assured return on them which ultimately is an edge in
competition in insurance sector.

Need to commence Medical claim Products and General Insurance :

There are very less which are having Medical claim products and also very less companies
providing General Insurance with Life Insurance for example ICICI , Reliance and Bajaj
Allianz so HDFC also need to come in General Insurance business so that they can compete
with these players.

Flexibility:
The companies should make their products flexible for the convenience of their customer.

Hassle Free Service:

All bureaucracy in customer interactions should be eliminated.

Proper Policy Documentation:

Wrong interpretations/ non-awareness of policy document by the customer may have serious
implications in the long term and the possibility of the same should be alleviated by the
company which leads to.
 76

Recommendation can be use by the firm for the betterment increased of the firm
after study and analysis of project report on study and analysis of working
capital. I would like to recommend.
1. Company should raise funds through short term sources for short term
requirement of funds, which comparatively economical as compare to long term
funds.
2. Company should take control on debtors collection period which is major
part of current assets.
3. Company has to take control on cash balance because cash is non earning
assets and increasing cost of funds.
4. Company should reduce the inventory holding period with use of zero
inventory concepts.
Over all company has good liquidity position and sufficient funds to repayment
of liabilities. Company has accepted conservative financial policy and thus
maintaining more current assets balance. Company is increasing sales volume
per year which supported to company for sustain 2nd position in the world and
number one position in Asia.
 77

SUGGESTIONS:

The company should try to increase his financial performance in the future.

The company should try to increased his product cycle.

Stable Managed fund & Secure Managed Fund provide low return. but less risk in Stable
Managed fund & Secure Managed Fund.

Most of the people are not aware about HDFC STANDARD LIFE INSURANCE
CO.LTD so they have to advertise their company and their product.

HDFC LIFE INSURANCE CO.LTD focuses on the urban area so now they have to
focus on rural area also.

HDFC LIFE INSURANCE CO.LTD should try to increase awareness of their UNIT
LINK PLAN

The company should increase their distribution network.

 78

ANNEXURE
 79

QUESTIONNAIRE

PERSONAL DETAILS:

Name:

Mobile Number:

Adress:____________________________________________
___________
__________________________________________________
___________
__________________________________________________
___________
__________________________________________________
___________
_______________________________

Occupation: _____________________

Age: ____________________________

1. Of the following what at present are your investment needs?

a. To build a corpus for retirement

 80

b. To save for children education/ marriage

c. To provide for medical emergencies
d. To provide for family financial security
e. To create wealth
f. All of the above

2. Which of the following you think as investment for tax- saving?

a. Mutual funds
b. Fixed deposit
c. Insurance
d. Ppf
e. All of the above

3. Have you ever been invested in mutual funds?

a. Yes b. No

4. Have you ever been invested in ulip insurance plans?

a. Yes b. No
 81

5. If you had Rs 1000/- where you prefer to invest

a. Mutual fund
b. Fixed deposit
c. Direct equity
d. Life insurance
e. Postal office deposit

6. Out of the following in which Mutual Fund you have invested?

a) HDFC
b) Tata Mutual Fund .
c) Franklin Templeton .
d) Reliance .
e) ICICI Prudential .
f) SBI .
g) Other If any ,Please Specify

7. Out of the following company which company ulip plans

you have invested?

a) HDFC LIFE.
b) Tata AIG .
c) BAJAJ ALLIANZE .
d) Reliance .
e) ICICI Prudential .
f) SBI LIFE.
 82

g) Other If any ,Please Specify

8. To how much extent are you satisfied with the services offered by HDFC
LIFE regardingULIP INVESTMENT PLANS?
a) Exteremly satisfied.
b) Satisfied to the lesser extent
d) Dissatisfied to lesser extent
e) Extremely dissatisfied.

9. Do you prefer GROWTH FUND OR DIVERSIFY YOUR MONEY in

various fund?
a) growth fund
b) diversify funds
c) Depends upon the risk bearing condition
83
 84

BIBLOGRAPHY

Books Referred

1. Maheshwari, S.N.; Financial Managemen, Principles and Practice, Sultan

Chand & sons, 9th Edition 2004.
2. Maheshwari, S.N.; Elements of Financial Management, Sultan Chand &
Sons, 2003 7th Edition.
3. Pandey, I.M.; Financial Management, Vikas Publishing House,
8th Edition, 2001.
4. .Author:Evertt.E.AdamProduction and opration
management prentice hall 5th edition

Websites References

www.hdfclife.com/

www.bimadeals.com Life Insurance Life Insurance Companies

www.myinsuranceclub.com Life Insurance Companies

www.indiancustomers.in/company/hdfc-standard-life

www.hdfclife.com/Children'sPlans/child-insurance-plans.

www.hdfclife.com/savingsplans/WholeLife