HDFC Standard Life Project

1.
CHAPTER - 1
Asset Protection GENERAL INTRODUCTION From an investor's point of view, an investment can play two roles Asset Appreciation
and Asset Protection . Most of the financial instruments have the underlying benefit of Insurance is a protection against financial loss arising on the h appening of an asset appreciation. Life insurance is uniqu e in that it gives the customer the reassurance unexpected event. You cannot take anything for granted in life. Insurance is system by of asset protection, along with a strong element of asset appreciation. which the losses suffered by a few are spread over many, exposed to similar risks. Insurance policies are a safeguard against the uncertainties of life. Insurance policy Life insurance or Life Assurance is a contract between the policy owner and the helps in not only mitigating risks but also provides a financial cushion against adverse insurer, where the insurer agrees to pay a su m of money upon th e occurrence of the financial burdens suffered. Insurance policies cover th e risk of life as well as other assets insured individual's or individuals' death. In return, the policy owner (or policy payer) and valuables such as h ome, automobiles, jewelry etc. Insurance policies can be agrees to pay a stipulated amount called a premium at regu lar intervals or in lump sums classified into two categories. Wh ich are given below: (so-called "paid up" insurance). There may be designs in some countries where: (Assets, Bills, and death expenses plus catering for after funeral expenses sh ould be included in /LIH_,QVXUDQFH_3ROLF\_ *HQHUDO_,QVXUDQFH_3ROLF\ Policy Premiu m. Anyone whose assets equal more th an the_ valu e of their primary _ residence shou ld not be compensated beyond that value in case they cannot sell their Life insu rance is a gu arantee th at your family will receive financial support, even in your house. In the case of those who have lost their spouse should be compensated also for absence. It thus protects to you r family from the financial crises. It serves as a protective one fu ll year th e wages of their spouse which would or sh ould be inclu ded to avoid cover to your family, life insu rance acts as flexible money-saving sch eme, which lawsuits.) However in the United States, the predominant form simply specifies a lump empowers you to accu mulate wealth-to bu y a new car, get your children marriage and sum to be paid on the insured's demise. even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. As with most insurance policies, life insurance is a contract between th e insurer and the Need of Life Insurance policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if investments include occu rs which is covere by instrupolicy. To be al life In modern day an insured event gold, property, fixed income the ments, mu tu a d policy the insured event insu be based upon life (or of choices, people named in funds and of cou rse, life must rance. Given th e excesslives) of the it becomes very the policy. important to make the righ t choice wh en investing your hard-earned money. Life insurance is a uniqu e investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.
Insured events that may be covered include: Some unique benefits of life insurance in detail:-
Manish Chandra( A8 7 52 5 33 ) ( A 8 75 25 3 3
1. Death 2. Accidental death 3. Sickness Life policies are legal contracts and the terms of the contract describe the limitations of the insu red events. Specific exclusions are often written into the contract to limit the liability of the insu rer; for example claims relating to suicide (after 2 years suicide has to be paid in full) (in India after one year Su icide is covered), fraud, war, riot and civil commotion.
1.2 OBJECTIVES OF THE STUDY
1. To analyze th e potential of Life Insurance in Investment Industry. 2. To get better understanding of various Life Insurance Product. 3. To compare the performance of various Life Insurance Companies. 4. To evaluate various need of customers for Life Insu rance and their purchase beh avior 5. To know the level of brand awareness of HDFCSLI among the consumers.
1.3 INDUSTRY PROFILE
a) Origin and Development of Insurance Industry Insurance began as a way of redu cing th e risk of traders, as early as 5000 BC in China and 4500 BC in Babylon . Life insurance dates only to ancient Rome; " burial England , originally as insu rance for clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th centu ry House, predecessor to the famous traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee Lloyd's of London . United States was formed in Charleston,
Th e first insurance company in the the U.S. began in the late 1760s. The Presbyterian Ministers in 1759; fewer than half a dozen survived.
South Carolina in 1732, but it provided only fire insurance. The sale of life insurance in Presbyterian Synods in Philadelphia and New York created the Corporation for Relief of Poor and Distressed Widows and Children of Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but
Prior to th e American Civil War , many insu rance companies in the United States insured th e lives of slaves for their owners. In response to bills passed in for such policies. California in 2001 and in Illinois in 2003, the companies have been required to search their records New York Life for example reported that Nau tilus sold 485 slaveh olders life insurance policies during a two-year period in th e 1840s; th ey added that their trustees voted to end the sale of su ch policies 15 years before the Emancipation Proclamation .
b) Growth & Present Status of Insurance Industry
Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insu rance company in India. After the opening up of Insurance sector in India there has been a glu t of insu rance companies in India. These companies have come up with innovative and flexible insurance policies to cater to varying needs of the individual. Opening up of the Insu rance sector has also forced the LIC to tighten up its belt and deliver better service. All in all it h as been a bonanza for the consumer. Major Life insurance Companies in India are: 1. Aviva Life Insurance 2. Bajaj Allianz 3. Birla S un Life Insurance 4. HDFC Standard Life Insurance 5. ICICI Prudential 6. ING Vysya 7. Kotak Mah indra 8. LIC 9. Max New York Life Insu rance 10. Metlife India Insurance 11. Reliance Life Insurance 12. SBI Life Insurance 13. Shriram Life Insurance 14. TATA AIG Life Insurance
c) Future of Insurance Industry
Many hypotheses address why the incidence of insurance has declined in the past decade: People are anti-insurance; they're buying term and investing the rest; changing life expectancies and delayed family formation have sh ifted th e need for insurance; buyers are more sophisticated and prefer other products; agents are forsaking the middle class and focusing on the wealthy; Boomers refuse to grow up, and buying life insurance acknowledges mortality; people need less life insurance, and with the declining need, the industry is shrinking; agents are unpleasant to deal with; property/casualty insurance is replacing life insurance; and so on. Clearly, a strong factor in th e increase in surplus capital lies at the door of favorable economic conditions, with equity markets up by around 10%. Reflecting this more buoyant environment, the results also indicate that the realistic reporters were net pu rchasers of equities, with the marginal 0.4bn reversing the downward sales trend that h ad emerged since we started collecting this data in 2006. The aggregate Equity Backing Ratio for assets backing asset shares also increased over the full year moving from 39% to 43%. All in all, th ese results are very encouraging and while the economic environment clearly has had its part to play, the indu stry has worked hard to deliver some long awaited stability. And, in terms of the capital with-profits insurers have at th eir disposal, the sector is in a far better position to ensure th at policyholder commitments are h onored as th ey fall due, and as such that customers are treated fairly. In conclusion, we are looking forward to a future for the life indu stry characterized by adequate capital, sound management and fair treatment of customers. We think we are most likely to get there by adopting a more principle based, outcome focused approach to regulation. To a significant degree this is already happening in the areas that I have chosen to highligh t today the emphasis now needs to be on making sure th at policy decision is turned into effective implementation.
CHAPTER - 2
2.1 ORIGIN OF HDFC STANDARD LIFE INSURANCE CO.LTD HDFC Standard Life Insu rance 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 ach ieve th e 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 insu rance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and The Standard Life Assu rance Company, a leading provider of financial services from the United Kingdom. As a joint venture of leading financial services groups, HDFC Standard Life h as 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 cu stomized to specific needs. The group solutions have been designed to offer complete flexibility combined with a low charging structu re. 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 policyh olders Has one of th e 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 subsequ ently open offices in Datia, Bh ind and Dabra by the second week of May 2007.' Th is expansion comes in line with the companys strategy to strengthen its presence in the state of Madh ya Pradesh, thereby also consolidating its premier position in the insurance bu siness in India. Speaking on its increasing presence in the region, Mr. Deepak Satwalekar, CEO & MD HDFC Standard Life Insu rance said, The Company wants to be as close to its customers as possible and wants to ensure complete customer convenience and deligh t. We felt the need to increase our spread in MP because of its growing potential and h ence 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.
Track Record so far Th e cumulative premiu m 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, ou t of which over 5,00,000 lives have been covered through th eir group business tie-ups. The company also declared their 5th consecutive bonus in as many years for th eir policyh olders.
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Key Dates 7th May 2007 - HDFC Standard Life expands its reach to smaller cities in Madhya Pradesh 15th February 2007 16th May 2006 - HDFC Standard Life expands its reach in Vidarbha
- HDFC Standard Life records impressive growth - HDFC Standard Life records impressive growth - HDFC Standard Life posts strong growth HDFC Standard Life grows faster than the private sector average
7th February 2006 29th November 2005 16th August 2005 16th May 2005
- HDFC Standard Life declares results for FY 2004-05
2.3 PRESENT STATUS OF HDFCSLI Nationally HDFC Standard Life company. HDFC Standard Life Standard Lifes Insu rance covers over 693 cities and towns
through its offices in India with over 79,000 Financial Consultants appointed by the Insurance also has 833 corporate agents and other HDFC sales intermediaries including banks for distribu tion of insurance products. needs, like Protection, Pension, Savings and Investment. Customers have the added advantage of customizing the Plans, by adding optional benefits called riders, at a nominal price. Th e company currently has 21 retail and 6 grou p produ cts in its portfolio. HDFC Standard Life maintains very h igh professional standards, during produ ct 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, h as also helped its customers ch oose the product, best su ited for their needs.
Product portfolio comprises solutions, which meet various customer
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2.4 FUTURE PLANS OF HDFCSLI
HDFC Life Insu rance 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 sh are capital of Rs 255.5 cr. " Major expansion of branches, higher productivity and contribution from unit-linked products will enable the company to ach ieve this high growth in current year," said Pankaj Seith, head, alternative channels, HDFC Standard Life Insurance. Over th e next 3-4 years, th e 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 Gu jarat has been higher than the national average during FY07 and that is wh y the company has decided to dou ble 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 produ ct lau nched by th e 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 bu siness 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 elsewh ere for marketing insurance products. Currently, HDFC Bank, Union Bank of India, Indian Bank and Saraswat Bank are selling HDFC Life produ cts and contribute to arou nd 25 per cent of total business," said Seith. A special bank assu rance produ ct is going to be launched in future. The company has met its ru ral 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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2.5 FUCTIONAL DEPATMENT OF HDFCSLI: Customer service and Operation Th e Operations department oils the work processes between the customer and the company to ensu re consistent and qu ality service to the customer. To streamline the operations, the Operations department interfaces between the clients and the agents, the branches and the underwriters, and manages work processes. Th e Vision at Customer Service is to deliver 'World Class Service' at every opportunity. Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country. Information Technology Th e Information Technology function at HDFC Standard Life Insurance is committed to enable business th rough the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users, the Solu tions Group- Web that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solu tions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, network services to th e whole organization. This group runs th e 'Digital Nervous System' of the Enterprise at th e highest levels of efficiency and provide robust, scalable and high ly available platform for deployment of business application.
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Marketing Th e Marketing function at HDFC Standard Life Insu rance covers an array of
activities - brand and media management, channel support, direct marketing and corporate communications. The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and Pu blic Relations; that helps develop and nurture HDFC Standard Life Insurance corporate identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution ch annels. 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. Sales Is the act of meeting buyers and providing them with a service for a negotiated compensation. It forms an integral part of commercial activity. Selling is a practical implementation of marketing ; it often forms a separate grouping in a corporate salespersons (singular: persuading "art". Contrary to structure, employing separate specialist operatives known as salesperson ). Sales are considered by many to be a sort of
popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesperson relates his offering of a product of service in retu rn enabling th e buyer to achieve his goal in an economic. Sales TechniquesThe sale can be made through: Direct Sales, involving person to person contact _ _ Pro forma sales Agency-based
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_ _ _ _ _ _ _ _
sales agents (real estate, manufacturing) Consu ltative sales Complex sales consignment telemarketing or telesales retail or consumer door-to-door or traveling salesman Request for Proposal is an invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service. An RFP is usually part of a complex sales process, also known as enterprise sales.
Business-to-business Business-to-business sales are much more relationship based owing to the lack of emotional attachment to the products in question. Industrial/Professional Sales is selling from one business to another
Electronic _ _ _ _ Web Business-to-business and business-to-consu mer Electronic Data Interchange (EDI) is a set of standards for structu ring information to be electronically exch anged between and within businesses Indirect, hu man-mediated but with indirect contact Mail-order
Sales/Marketing relationshipTh e marketing department's goal is to bring people to th e sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations . In most large corporations, the marketing department is structu red in a similar fashion to the sales department and the managers of th ese teams mu st coordinate efforts in order to drive profits and business success. Driving more customers "through th e door" gives th e sales department a better chance by ratio of selling their product to the consumer Distribution is one of th e 4 aspects of marketing . A distributor is the middleman between th e manufacturer and retailer. After a product
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is manufactured it is typically shipped (and usually sold) to a distributor. The distribu tor then sells the product to The internal market Many of the marketing principles and tech niques which are applied to the external customers of an organization can be just as effectively applied to each subsidiary's, or each department's, 'internal' customers. In some parts of certain organizations this may in fact be formalized, as goods are transferred between separate parts of the organization at a `transfer price'. To all intents and purposes, with the possible exception of the pricing mechanism itself, this process can and should be viewed as a normal buyer-seller relationship. The fact th at this is a captive market, resulting in a `monopoly price', should not discou rage the participants from employing marketing techniques. Less obvious, but just as practical, is the u se of `marketing' by service and administrative departments; to optimize their contribu tion to their `customers' (the rest of th e organization in general, and those parts of it which deal directly with th em in particular). Tied Agency Tied Agency is the largest distribution channel of Insurance HDFC Standard Life retailer or customers. s
, comprising a large advisor force that targets various customer segments.
Th e strength of tied agency lies in an aggressive strategy of expanding and procu ring quality business. With focus on sales & people development, tied agency has emerged as a robust, predictable and sustainable business model. Bank assurance and Alliances HDFC Standard Life Insurance was a pioneer in offering life insurance solu tions through banks and alliances. With in a short span of two years, and with nearly a large number of partners, B & A has emerged as a vital component of the company's sales and distribution strategy, contributing to approximately one th ird of company's total business. The business philosophy at B&A is to leverage distribution synergies with our
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partners and add value to its customers as well as the partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this ch annel Finance Finance function in HDFC Standard Life Insurance is committed to create an infrastructure that is aligned to shareholder expectations. Finance basically comprises of fou r functions. Corporate Planning and MIS provide feedback on business strategies. Th is includes driving the budgeting process, providing strategic inputs for decisionmaking and management reporting and analysis. The Accounts function includes preparation and maintenance of financial records, funds management, and expense processing and treasury operations. Compliance ensu res that every action is within the regulatory framework. This includes reviewing compliance requirements and supporting the ethical framework of HDFC Standard Life Insurance life. Internal audit provides assu rance to the management over th e organizations' control framework and includes process risk management, information security assessment and business continuity assessment. HR Th e people strategy of Resource Function at HDFC Standard Life Insurance HDFC Standard Life Insurance is "To build a .
committed team with a culture of innovation, learning and growth . The Human drives the people strategy of the business. With its initial focu s on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value to organization Business Th e Business Excellence function is committed to bu ilding a quality mindset across the organization Industry that h as adopted the Six Sigma Meth odology for process efficiency and measu rement.
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2.6 ORGANIZATIONAL STRUCTURE AND ORGANIZATIONAL CHART HDFCSLI has a Fu nctional structure because h ere the core product is insu rance. A functional structure is well suited to organizations which have a single or dominant core product because each subunit becomes extremely adept at performing its particular portion of the process. The organization is stru ctured according to functional areas instead of product lines. The functional structure groups specialize in similar skills in separate units. This structu re is best used wh en creating specific, uniform products. Th ey are economically efficient, but lack flexibility. Communication between functional areas can become efficient if there is proper coordination between HR, Customer Service & Operation, IT, Finance, Sales and Marketing team etc.
2.7 PRODUCT & SERVICE PROFILE OF HDFCSLI At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about bu ying a policy. For individuals , we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organizations we have a host of customized solutions th at range from Group
Term Insurance, Gratu ity, Leave Encashment and Su perannu ation Produ cts. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of th e company.
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Individual Products We at HDFC Standard Life realize that not everyone has th e same kind of needs. Keeping this in mind, we have a varied range of Products that you can ch oose 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 you r family against the loss of your income or the burden of a loan in the event of your u nfortunate demise, disability or sickness. These plans offer valu able peace of mind at a small price. Our Protection range includes ou r Assurance Plan & Loan Cover Term Assurance Plan. Ter m
HDFC TERM ASSURANCE PLAN (Secu re your familys financial independence and self-respect.) Our Protection Plans give you _ _ _ An ideal way to secure the financial fu tu re of you r loved ones. High cover at a very nominal cost plus an option of adding optional benefits to cover for other eventualities. A ch oice of two plans depending on your requ irements: HDFC Term Assurance Plan: A pure risk cover plan, which gives you protection against the uncertainties of life. HDFC Loan Cover Term Assurance Plan: loan or other loan liabilities _ _ Choice of premium payment options-regular premium or a single one-time premium. Choice of taking th e plan on a single life basis or a joint life (first claim) basis. An ideal way to cover your home
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Th e HDFC Term Assurance Plan is an insurance policy th at is designed to help secu re your family's financial needs. Th e 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 th e life assu red during th e term of the contract. One can ch oose the lump sum that would replace the income lost to one's family in th e unfortunate event of one's death. 3 EASY STEPS TO YOUR OWN PLAN Step 1 - Choose the life cover requ ired to secu re your family's future in you r absence. Step 2 Choose from any one of the 3 additional optional benefits as per your
requirement. Step 3 - Work ou t th e premium payable along with ou r Financial Consultant .
HDFC LOAN COVER TERM ASSURANCE PLAN Our Protection Plans give you : An ideal way to secure th e financial future of your loved ones. High cover at a very nominal cost plus an option of adding optional benefits to cover for other eventualities. A choice of two plans depending on your requirements: HDFC Term Assurance Plan: A pu re risk cover plan, which gives you
protection against the uncertainties of life. HDFC Loan Cover Term Assurance Plan: loan or oth er loan liabilities. Choice of premium payment options-regular premium or a single one-time premium. Choice of taking the plan on a single life basis or a joint life (first claim) basis. An ideal way to cover you r home
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Investment Plans:
Our Single Premium Whole of Life plan is well suited to
meet your long term investment needs. We provide you with attractive long term returns throu gh regular bonuses. HDFC Single Premium Whole of Life Plan Money is like manure. You have to spread it around or it smells. HDFC Single Premium Whole Of Life Insurance Plan is a tailor-made plan well suited to meet your long-term investment needs. This participating plan offers you the following benefits: Whole of life plan aimed at providing long-term real growth of you r money. Single premium investment plan. In case of your unfortunate demise du ring the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usu ally added annually. An additional Terminal Bonu s may be paid depending on the performance of the underlying investments. During Guaranteed Su rrender Periods you get the Sum Assured and all bonuses vested as at the date of surrender.
HDFC PERSONAL PENSION PLAN Th e HDFC Personal Pension Plan is an insu rance policy, which can benefit you in the following ways: Provides a post retirement income in you r golden years Gives you the flexibility to plan your retirement date Gives you tax benefits on your premiums
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HDFC UNIT LINKED PENSION The HDFC Unit Linked Pension gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments A post retirement income for life Flexibility to plan your retirement date Freedom to invest premiums as per you r preference
HDFC UNIT LINKED PENSION PLUS The HDFC Unit Linked Pension Plus gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Regular Loyalty Units to boost your fu nd value every year A post retirement income for life Flexibility to plan your retirement date Freedom to invest premiums as per you r preference
Savings Plans HDFC Endowment Assurance Plan The HDFC Endowment Assurance Plan gives you: An ideal way to secure your long-term financial goals
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Valuable protection to your family by way of lump sum payment in case of your unfortunate demise within policy term Lump sum payment (basic Su m Assu red plus any bonu s additions) on su rvival up to matu rity date Very flexible benefit options and payment options
HDFC UNIT LINKED ENDOWMENT T HDFC Unit Linked Endowment Plan gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Valuable protection to you r family in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity
HDFC UNIT LINKED ENDOWMENT PLUS The HDFC Unit Linked Endowment Plus gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Regular Loyalty Units to boost your fu nd value every year Valuable protection to you r family in case you are not around Flexible benefit combinations and payment options
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Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity
Th e table below will help you identify and classify some of you r financial goals. You can prioritize these goals and set your objectives accordingly (see indicative table given below). LONG-TERM GOALS Provide adequate cover for Life, Critical Illness or disability Saving for big-ticket assets like your h ouse Saving for your marriage Saving for your children's education Vacation abroad Having a regular system for savings SHORT TERM GOALS Buying a car
HDFC Money Back Plan The HDFC Money Back Plan is a With Profit Plan that gives you: A proportion of the basic Sum Assured as Cash lu mp sums at regular 5-year intervals within the policy term (see the table given below) an ideal way to secure your longterm as well as short-term financial goals. A lump sum payment on survival up to maturity date. Valuable protection to you r family by way of lu mp sum payment in case of your unfortunate death within the policy term. This is over and above any earlier payou ts.
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HDFC CHILDREN'S PLAN The HDFC Children's Plan gives you: Invaluable financial support to your child A choice to customize an ideal plan for you r ch ild Multiple options for multiple benefits
HDFC UNIT LINKED YOUNG STAR An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Valuable protection to you r child in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity In case of your unfortunate demise during the policy term, we will:
Pay the Sum Assured you had chosen to your child Continue your policy AND continue to pay the original regular premiums you had chosen
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HDFC UNIT LINKED YOUNG STAR PLUS The HDFC Unit Linked Young Star Plus gives you: An ou tstanding investment opportunity by providing a choice of thorough ly researched and selected investments Regular Loyalty Units to boost your fund value every year Valuable protection to your child in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options su ch as critical illness cover Access to your accu mulated fund before maturity
PRODUCT BASKET
INDIVIDUAL PRODUCTS
Protection Plans: HDFC TERM ASSURANCE PLAN HDFC LOAN COVER TERM ASSURANCE PLAN Investment Plans: HDFC Single Premium Wh ole of Life Plan Pension Plans: HDFC PERSONAL PENSION PLAN HDFC UNIT LINKED PENSION HDFC UNIT LINKED PENSION SUPER
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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 HDFC GROUP TERM INSURANCE PLAN HDFC GROUP VARIABLE TERM INSURANCE HDFC GROUP UNIT LINKED PLAN SOCIETY PRODUCTS DEVELOPMENT INSURANCE PLAN
Premium Payment 6 Easy Ways to pay your premium:
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Lapse & Revival Your renewal premium should reach us by the due date specified in the premiu m reminders. It is always advisable to pay on time so th at your valuable policy benefits can continue. Policy Servicing Th is section is designed to give you information th at you may requ ire incase you wish to make ch anges in Personal details or Policy details in your existing policy. The changes that you can av ail of are:
Claims
We understand that bereavement can be difficu lt to deal with, specially when you have to arrange for all the formalities in case of insurance claims.
Change in personal details Change in policy benefits Others such as loss of policy, look- in option etc.
At HDFC Standard Life we lend a helping hand by enabling faster settlement of claims and help the family financially at th e 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@h dfcinsurance.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
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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)
2.8 MARKET PROFILE OF THE ORGANIZATION
HDFC Standard Life Insu rance holds market sh are 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 th e customer delighting th em through their service and return on th eir 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 Communications team is in ch arge of advertising, consumer research, media planning &
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buying and Pu blic Relations; that helps develop and nu rtu re HDFC Standard Life Insurance corporate identity while effectively communicating its varied produ ct offerings to the cu stomer. Channel marketing provides support to the sales force by 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 acqu isition and communicating customized product information throu gh e-mailers, telemarketing and innovative direct mailers.
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CHAPTER - 3 3.1 STUDENT WORK PROFILE (ROLE & RESPONSIBILITES) I am working in HDFCSLI as a FINANCIAL CONSULTANT & RECRUITMENT CONSULTANT. FINANCIAL CONSULTANT: Major responsibility handed over me is to
generate lead of potential customer through contacts, references and activities. Also telemarketing th rough th e existing data base given by the manager. Once the appointment are fixed I have to meet the customer interact with them convince th em about the product after analyzing their need & requirement. Helping the customer to fill the form collecting the document and finally handing it to sales manager for logins 3.2 DESCRIPTION OF LIVE EXPERIENCE Working in HDFCSLI h as helped me to gain lots of experience in sales and marketing field. I came to about the insurance business how it works and it gave me an idea that insurance business starts with is one sale business that is it entirely depend on networking. Du ring the initial stage of my joining I was not able to sell the products it was early 30 days when I was not giving any business to my sales manager. I was demotivated bu t at that time my manager h elped me and makes me understand where I was going wrong. He told me to sell the product first to whom you know rather th at calling cu stomer through data base in which first the customer agrees and shows their interest to take the product. After following them for 10-20 they refuse to take the products. Sometime it may happens that they fix the appointment and wh en I go to meet them th ey were not available and wh en I call them they dont pick the phone or even if they pick the cut it after listening my voice. I was very much disappointed with such behavior of customer. First customer whom I was able to sell the product was my friend to whom I sold ULIP plan with initial cheque of 30000k. After completing all the formalities and login the form I have asked him to give me some references who are interested in taking the plan for tax saving. Since he was a software engineer so he has
32
given me three references. I called them and follow them I in th ese three two wh ere finally convinced and taken th e same plan. I again asked some references from them and they given few after following I again succeed to sell the product and in this way I 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 Th e main contribution of an employee to its organization is to perform his responsibilities given with 100% effort and h onesty. 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 th e facts and benefits of the product to the customer and convince them for the right product th at 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 occu rs with the document I take care about th em. 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.
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CHAPTER 4 NEED AND IMPORTANCE OF THE STUDY Since the opening up insu rance market to private operations, India is considered one of the hottest place with the majority of market being untapped through there are restriction for foreign operators. Traditional and ULIP products h ave their own benefits and at wh at extent cu stomers are aware about these produ cts. Research is the systematic, objective and exhaustive search for and study of facts relevant to the problem. Research design means the framework of the study that leads to the collection and analysis of the data. It is conceptual stru cture with in which research is condu cted. It facilitates smooth sailing of various research operations to make the research as effective as possible. Th e stu dy was conducted as an exploratory sampling su rvey method to collect primary and secondary data. 4.1 RESEARCH PROBLEM A study on the awareness of customers about Traditional and Unit linked investment plan of insurance policies with special reference to HDFC Standard Life Insurance. 4.2 STATEMENT OF RESEARCH OBJECTIVES y y y y To measure awareness among existing customers regarding HDFCs different insurance products. To assess customer preference towards these different insurance products. To compare HDFC Standard Life Insurance produ cts with other products in the market To measure th e customer satisfaction level with respect to HDFC Standard Life Products
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4.3 RESEARCH DESIGN AND METHODOLOGY Research Design: Research Design that is followed in this report is judgment sampling. Judgment sampling was th e most appropriate becau se the data has to be collected from the existing customer of HDFC. So research was done by approaching th e customers of HDFC by visiting different branches of HDFC located at Rajajinagar, R T Nagar and Banshankari. 10 sample from each branches are picked ju dgmentally. Thu s the total sample of 30 was taken and analyzed.
METHODS OF DATA COLLECTION PRIMARY DATA A well structured qu estionnaire was personally administrated to the selected sample to collect the primary data. SECONDARY DATA Secondary data are those which have already been collected by some other person for their pu rpose and published. Secondary data are usually in the shape of finished products. Two types of secondary data were collected for th e project . INTERNAL DATA : - was generated from companys brochures, manuals and annual report. have given valuable information for the present study. EXTERNAL DATA : - was generated from magazines, research articles, books and internet. Magazines devoted solely to insurance news, such as Asia Insu rance News, insurance chronicle-monthly insurance digest and other marketing magazines. SAMPLING TECHNIQUES A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A judgment sampling tech nique was used to collect data from respondents . Judgment sampling is a common non probability meth od. So while conducting th e su rvey 30 respondents were selected at ju dgment.
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To know the response, the researcher u sed qu estionnaire method. It has been designed as a primary research instrument. Qu estionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. Th e questionnaire was used as an instrumentation techniqu e, becau se it is an important method of data collection. The success of th e qu estionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. SCOPE OF STUDY Th e respondents of this dissertation were 30 Life Insurance Policy holders of HDFC insu rance 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 th e customers of HDFC Standard Life Insurance Company. Survey was done by approaching the customers of HDFC by visiting different branches located at Rajajinagar, R T Nagar and Banshankari. Personal interview method was apply to collect the actual data for the research study, the interaction with the respondents before filling questionnaire have made th em more friendly and free to give the information.
SAMPLE SIZE Sample size denotes the number of elements selected for th e stu dy. 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 Th is research work is done by approaching a small population, in a restricted geographical area. Uncontrolled factors may affect the ou tcome of research. So the actual result may vary from the research conducted.
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4.4 ANALYSIS OF DATA AND INTERPRETATION TABLE NO 4. 1: Monthly income of the respondents Particulars No of Respondents Percentage (%) Less th an 20,000 11 37 20,000- 30,000 12 40 30,000 40,000 5 16 More than 40,000 2 7 Total Analysis Th ere are variations in month ly income of the people and it is ranging between less than Rs 20000 to more than Rs 40000. Th ere are variability of income among th e people which is due to their edu cation and the stages of their career. Many of the respondents are employed (government/ priv ate) few of them are running their own business. Graph 4.1: Monthly income of respondents
30 25 20 15 37% 10 16% 5 0 less than 20,000 20,000-30,000 30,000 - 40,000 More than 40,000 7%
30 100
Frequency Percentage
40%
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From the above table it can be inferred that: 37% of the 30 respondents have a monthly income of less th an 20,000 40% of the respondents have a monthly income of 20,000 30,000 7 % of the respondents have a monthly income of more than 40, 000 TABLE NO 4.2:monthly savings of respondents Particulars No of Respondents Percentage (%) Less th an 2,000 9 30 2,000 4,000 8 26 4,000 6,000 6 20 6,000 8,000 4 14 More than 8,000 3 10 Total 30 100
Analysis People in Bangalore h ave 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 th eir 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.
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Graph 4.2: Monthly savings of the respondents

30
25
20
r qu nc
15 30 26 20 14 5 10
P rc nt

10
0 L ss th

n 2 000 2

000 - 4 000 4

000 - 6 000 6

000 - 8 000 Mor

th n 8 000

From the above table it can be inferred that: 30% of the 30 respondents have a monthly savings of less than 2,000 10% of th e respondents have a month ly savings of more th an 8,000 TABLE NO 4. 3 purpose of savings of the respondents Particulars No of Respondents Percentage (%) Medical expenses 6 20 To buy durables 3 10 To buy jewelleries 2 7 To buy house or site 8 27 Education 9 30 Others 2 7 Total 30 100
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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 th eir money according to th eir preferences. Most of the people give priorities for education, houses and health so th ey are saving their money for these purposes. Graph 4.3: Purpose of savings
30 25 20 r qu nc
_
15 30
P rc nt
_ _ _
10 5 0
_
20
27
10
dic l xp ns s To bu
_ _ _ _ _
dur bl s To bu
_ _ _
To bu hous
_ _ _
or
Educ tion Oth

_
rs
j w llwri s
_
sit
_
From the above table it can be inferred that: 20% of the 30 respondents make a monthly savings for th e purpose of medical expenses. 27 % of the 30 respondents make savings for the purpose to buy hou se or site. 30 % of the 30 respondents make savings for the pu rpose of education.
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TABLE NO 4.4 investment preference of the respondents: Particulars No of Respondents Percentage (%) Bank deposit 7 23 Insu rance 6 20 Sh ares 4 13 Debentures 3 10 Real estate 4 13 Gold 1 4 Mutual fund 3 10 Chit fund 2 7 Others 0 0 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 h ave 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 th e people due to secu rity purpose even though they get comparatively less interest on it.
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Graph 4.4: Investment Preference

30
25
20
Frequency Percentage
15
10 23% 20% 13% 13% 4% 0% 0

% $ #
10%
10% 7%
"
From the above table it can be inferred that: 23 % of th e 30 respondents preferred to make investments in the bank deposit. 20 % of respondents preferred to make investments in insurance.
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TABLE NO 4.5insurance premium is paid monthly by the respondents. Particulars No Of Respondents Percentage (%) Less th an 1,000 06 20 1,000 2,000 07 23 2,000 3,000 12 40 3,000 4,000 04 14 More than 4,000 01 03 Total Analysis Here the people who are paying premiums Rs 2000 to 3000 are more in numbers. People pay the premiums from th eir savings so they decide the premiu m according to their savings. People have oth er commitments also so th ey plan their premium payment by considering all the expenses. Graph 4.5: Approximate monthly insurance premiu m
30
30 100
25
20 Frequency 15 40% Percentage
10
20% 23% 14%
3%
0 Less than 1,000 1,000 - 2,000 2,000- 3,000 3,000 - 4,000 More than4,000
From the above table it can be inferred that: 23% of th e respondents pay a monthly premium of 1,000 2,000. 40% of the respondents pay a monthly premium of 2,000 3,000. 03% of the respondents pay a monthly premium of more than 4,000.
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TABLE NO 4.6 purpose for which the respondents have taken the policy. Particulars No Of Respondents Percentage (%) Tax purpose 15 50 Future security 06 20 Childrens Education 07 23 Marriage 00 00 Others 02 07 Total Analysis People are aware of tax benefits from insu rance policy so more number of people is taking insurance policy for tax benefits. According to section 80 C, investments in insurance up to Rs.1, 00,000 can be done to get tax implications, so most of the people who are in range of paying tax favor to invest in insurance. Few people invest their money in insurance to get the other advantages of insurance policies. Graph 4.6: Purpose of policy taken
30 25 20 50
&
30 100
r qu n
8 9 9 @
15 10 5 0 T
' (
P r
9 @ 9
nt
B
20
&
23
&
7
&
0
&
purpo
utur
1
ur t
3 4
Ch dr n' Edu
5 3 0 ) 2
'
t on
3 6
'
rr
3
'
Oth r
0 )
From the above table it can be inferred that: 50% of the 30 respondents have taken the policy for th e purpose of tax saving. 20% of the respondents have taken th e policy for the purpose of future security.
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TABLE NO 4.7 person who pay premium for the respondents. Particulars No Of Respondents Percentage (%) Self Employer 03 10 Spouse 4 13 Others 0 00 Total Analysis Here people are paying premium for self are more in number. Head of the family pays premium for other family members also. Th is is very common in India that h ead of th e family takes care of his family members. Here also it can be seen th at head of the family is paying premium for his family members. Most of the companies also provide the health insurance to th eir employee. Graph 4.7: Person who pay premium
25
23 77
30 100
77
D
20
15 r qu n
I E E P H
P r
E P E
nt
Q
10
10
D
13
0
D
0 S
E F G
Emp o
H F E
r Spous
E
Oth rs
E
45
From the above table it can be inferred that: 77 % of the 30 respondents premium is paid by themselves. 10% of th e respondents premium is paid by their employer. 13% of the respondents premium is paid by their spou se. TABLE NO. 4.8 whose life is insuring as per the policy taken by the respondents. Particulars No Of Respondents Percentage (%) Self Spouse 6 20 Children 5 17 Parents 1 03 Total 30 100 18 60
Analysis People used to take policy for th eir family members also. Here the number of people are more wh o has taken policies for themselves. Th is is very common in India that h ead of th e family takes care of his family members. Th is is the culture of our country so it can be seen that people are taking insurance policies for themselves as well as for their family members like for spouse, children and parents.
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Graph 4.8: Person whose life is insured

30
25 60 20
S
r qu nc
a
15
P rc nt
` ` b
10 20 5
S
17
S
3
S
0 S
T U V
Spous
T
Ch dr n P
W U T X
r nts
T
From the above table it can be inferred that: 60% of 30 respondents have insured th eir life itself as per the policy taken. 03% of respondents have insured th eir parents life itself as per the policy taken.
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TABLE NO4.9 level of information of the respondents regarding the products of HDFC Life Insurance. Particulars No Of Respondents Percentage (%) Good 16 53 Moderate 9 30 Poor 5 17 Total 30 100
Analysis People having good information about the HDFC life insu rance products are more in numbers. Few people are found with poor information about HDFC life insurance products. Awareness about the product of HDFC depends on the advertisement and other promotional activities. Company is very active in spreading the information abou t the product by using all the channels and media. Financial advisors are also playing a major role in spreading information abou t insurance policies to the customers.
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Graph 4.9: Level of information abou t products of HDFC standard life insurance
30
25
20
53
d
r qu nc
i
15 30
d
P rc nt
f f g
10
17
d
0 Good
e
od r t
f g f
Poor
From the above table it can be inferred that: 53% of 30 respondents have a good level of information regarding the product of HDFC standard life insu rance 17% of 30 respondents h ave a poor level of information regarding the product of HDFC standard life insu rance
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TABLE NO. 4.10 HDFC Standard Life Insurance Advisors who have contacted the respondents. Particulars NO of Respondents Percentage (%) Yes No Total Analysis No. of person who has been approached by HDFC Standard Life Insurance Advisors are more in nu mbers. Company is always active in approaching people by using different strategies. Every year company is recruiting a large number of financial advisors and increasing companys network. Customers need not to come to the branch to get the information, advisors are very active in this work, they fix the appointment with prospect and visit to th em. Graph 4.10: HDFC standard life insurance advisors who contacted th e respondents
20 60% 18 16 14 12 Frequency 10 8 6 4 2 0 Yes No Percentage
18 60 12 40 30 100
40%
50
From the above table it can be inferred that: 60% of 30 respondents have been contacted by the advisors of HDFC Standard Life Insurance 40% of 30 respondents h ave not been contacted by th e advisors of HDFC Standard Life Insurance.
TABLE NO 4.11 plan preferred by the respondents owing HDFC Standard Life Insurance. Particulars No Of Respondents Percentage (%) Traditional 9 30 ULIP 14 47 Others 7 23 Total 30 100
Analysis People have shown more preference to take ULIP plan. Rest of the policies is evenly distributed. Most of the customers owe ULIP plan of HDFC due to the high return on investment. Th ere are many option of reinvestment of money by insurer in ULIP plans which are decided by customers. And it has many advantages over traditional plan so it is more preferred by customers.
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Graph 4.11:
30
Policy preferred by HDFC Standard Life Insurance customers
25
20 Frequency Percentage
15
47%
10
30% 23%
0
q
raditional UL
r
P
s
thers
From the above table it can be inferred that: 30 % of the 30 respondents prefer Traditional plan. 47% of respondents prefer ULIP plan.
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TABLE NO 4.12 people have knowledge of Traditional and ULIP plan of Insurance policies Particulars NO Of Respondents Percentage (%) Good 12 40 Average 14 47 Poor Total Analysis Most of the people have average knowledge of the ULIP and Traditional plans. Some people have good knowledge and few have poor knowledge also. Customers have good knowledge of th e traditional and ULIP product it indicates that they are very sensitive towards th eir investment. People having average or poor knowledge can be improved by giving more attention to those customers. Graph 4.12:
30
4 13 30 100
Knowledge of people abou t Traditional and ULIP plan
25
20 Frequency Percentage
15 40% 10
47%
13%
0 Good Average Poor
From the above table it can be inferred that: 40% of the 30 respondents have good knowledge of traditional and ULIP plan 47% of the respondents have average knowledge of traditional and ULIP plan 13% of the respondents have poor knowledge of traditional and ULIP plan
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TABLE NO 4.13 awareness of the benefits of traditional and ULIP plan among the customers. Particulars No Of Respondents Percentage (%) Yes No Total Analysis Most of the people are aware of th e benefits of Traditional and ULIP plan. In traditional plan there is low risk and low return wh ere as ULIP plan gives high retu rn but high risk is there. Agents make it clear to the customers during consultation. Graph 4.13: Awareness of the benefits of traditional and ULIP plan among the customers .
30
18 60 12 40 30 100
25
20
60
t
r qu n
v v y
15 40
t
P r
v y
nt
10
0
u v
s
w
From the above table it can be inferred that: 60% of the 30 respondents are aware of th e benefits of the Traditional and ULIP plan 40 % of the respondents are not aware of the benefits of th e Traditional and ULIP plan
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TABLE NO 4.14 preferences of the customer in investment among the Traditional and U LIP plans. Particulars No Of Respondents Percentage (%) Traditional ULIP Others Total Analysis More number of people prefers the ULIP plan. Traditional and other plans are preferred by less number of people. Now the days customers want good return on their investment in insu rance policies by investing in ULIP plans. Customers have choice to select options for reinvestment of money by insurer and sum assured on any risk is decided by customers itself. So due to various flexible option customers like to take ULIP plans. Graph 4.14: Preferences of the customer in investment among the Traditional and ULIP plans.
30
6 20 19 63 5 17 30 100
25
20
63
r qu n 15

P r

nt
10 20 5
17
0 tr d t on P Oth
rs
55
From the above table it can be inferred that: 20% of the 30 respondents prefer Traditional plan for investment 63% of th e respondents prefer ULIP plan for investment 17% of the respondents prefer other plans for investment TABLE NO4. 15 from which company customer would like to take Traditional plans Particulars No Of Respondents Percentage (%) HDFC LIC Birla Sun Life Others Total Analysis Th e number of customers are more who like to take the traditional plan of LIC. Traditional plans are since a long time when the LIC was the only insurance company in market, still people prefer to take traditional plans of LIC. Graph 4.15: Customer preferences to the companies for traditional plan
30 25 20 15 10 5 0 HD C L C Birl Sun Li
d
5 17 16 53 3 10 6 20 30 100
53 r qu nc
g e f f
P rc nt
f f h
17 10
20
Oth rs
d
From the above table it can be inferred that: 17 % of the 30 respondents prefer to take the Traditional plan of HDFC. 53% of the respondents prefer to take the Traditional plan of LIC.
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TABLE NO 4.16 from which company customer would like to take ULIP plans Particulars No Of Respondents Percentage (%) HDFC LIC Birla Sun Life Others Total Analysis Th e nu mber of customers is more who prefers to take the ULIP plan of HDFC. HDFC have so many ULIP plans in its basket and it providing high retu rn due to better fund management so people prefer to take the ULIP plan from HDFC. Graph 4.16: Cu stomer preferences to th e companies for ULIP plan 17 57 7 23 1 3 5 17 30 100
30
25
20 57
j
15
r qu n
m t t v
P r
t v t
nt
r
10 23
j
17
j
5 3
j
0 C
k l m n o
CB
p
r
q r
Sun
n p
Oth r
t t u
From the above table it can be inferred that: 57 % of the 30 respondents prefer to take the ULIP plan of HDFC. 23% of th e respondents prefer to take the ULIP plan of LIC.
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TABLE NO4. 17 number of customer who compares the insurance product of different companies. Particulars No Of Respondents Percentage (%) Yes No Total Analysis Most of the customers compare th e insurance product of different companies before taking a policy. Most of the customers have tendency of comparing the products before buying and they choose a product wh ich is most suitable for them. Customers compare the insurance product to see different hidden charges like fund management charges and fund allocation charges etc. Graph 4.17: Comparison of product of different companies by customers
30
24 80 6 20 30 100
25
80
y
20 r qu n
} { { ~
15
p r
{ ~ {
nt
10 20
y
0
z
s
{ |
From the above table it can be inferred that: 80% of the 30 respondents compare th e products of different insurance companies. 20% of the respondents do not compare the products of different insu rance companies.
58
TABLE NO 4.18 number of respondents who knows where their money will be invested by insurer Particulars No Of Respondents Percentage (%) Yes No Total Analysis Number of customers are more who knows that where their money is invested by the insurer. Customers expect high retu rn from their investment. It is the responsibility of insurance agent to tell the customer abou t the investment of money by insurer. From above data it can be observed tat agents are doing their job efficiently. Graph 4.18: Customers knowledge about the further investment of money by the insurer
30
21 70 9 30 30 100
25
20
F equency 15 70% 10 30% 5 ercen e
0 Yes No
From the above table it can be inferred that: 70 % of th e 30 respondents knows th at where their money will be invested by insurer. 30 % of the respondents dont know that where their money will be invested by insu rer.
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TABLE NO4.19 from where the respondents came to know about the different insurance plan Particulars No Of Respondents Percentage (%) Advertisement Agents Friends and Family Others Total 12 40 13 43 4 14 1 3 30 100
Analysis Most of the customers h ave come to know about the different plan by advertisement and insurance agents. Advertisement and approaching the customers directly are the best way to find the customers for insu rance products. Companies are advertising th eir products by all media and insu rance agents are approaching the customers throu gh th eir network. Opinion leaders are also working at few extents which are additional benefit for the company.
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Graph 4.19: Source of information about the insurance plan to the customers
30
25
20
Frequency 15 40% 43% percentage
10
14% 3%
0 Advertise ent Agents riends and a ily others
From the above table it can be inferred that: 40% of the 30 respondents get th e information about insurance product by advertisement 43% of th e respondents get th e information about insurance product by agents
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TABLE NO 4. 20 number of respondents are satisfied with the service of HDFC Standard Life Insurance. Particulars No Of Respondents Percentage (%) Yes No Total Analysis Most of the customers are satisfied with the service of HDFC. Cu stomers are periodically informed about their policy status and premium due by SMS, e-mail, telephone calls and post. Customer can access their policy status and fund value through HDFC website by login in www.hdfcinsurance.com . So HDFC is providing good service to their customers and they are satisfied with the service. Graph 4.20 :Respondents satisfied with th e service of HDFC Standard Life insurance
30
24 80 6 20 30 100
25
20 r qu nc
15
p rc nt
10
80
20
0 s No
From the above table it can be inferred that: 80 percent customers are satisfied with the services provided by HDFC Standard Life Insurance. 20 percent of the respondents are not satisfied.
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4.5 SUMMARY OF FINDINGS LIC is the clear market leader .HDFC Standard Life Insurance can excuse itself that people in th e age of more than 55 years category cou ld 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 du e to varieties of ULIP plans, its good service, and h igh return on investments. 1. ULIP plans are more preferred by customers than the traditional plan du e to the following reasons: Flexibility in investmenttraditional plans have to invest at least 85% in debt instruments which resu lts in low returns. On the oth er 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 returnsTh e top most advantage which Ulips offer over traditional plans is the flexibility offered to customers to customize the product according to th eir 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 h ave good knowledge abou t 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 fu nd. 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 h ere 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 month ly 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.
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6. It is inferred from th e study that 9 respondents make th e savings for the purpose of education, 6 respondents make the savings for the purpose of medical 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 th e respondents prefer bank deposits for investment purpose, 6 prefer insu rance, 4 prefer shares and 4 prefer real estate. So th ere is a more scope for the insurance sector and people feel it is secured and profitable made of investment. 8. In an absu rd 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 th e initiative to create awareness of its insu rance policies righ t form college level by conducting workshop there. 9. Most of th e people takes the insurance policy to save their taxes, few customers takes the policy for future security, children education and oth er purposes. 10. From the stu dy, it is clear th at 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 th ey h ave proper knowledge of the differences between traditional and ULIP plans. 12. Among 30 HDFC policy holders 9 h ave 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 equ al 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 h ave good knowledge of different plans only few dont have proper knowledge which can be overcome by better consu ltation to the customers through insurance agents.
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CHAPTER - 5 RECOMMENDATION AND SUGGESTIO NS
1. Many respondents in their answers to wh y 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 qu estions mark. This myth must be broken throu gh an Ad campaign through radio, TV, print and internet that tells that HDFC is nothing but the Industrial Credit and Investment Corporation of India. Wh ich was set up as a pu blic linked company on January 5, 1955 by th e 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 tremendou s reserves and valuable experience in th e financial sector. 2. ULIP plan is starting from the yearly premium of Rs 15,000 and if th e premium is paid half yearly then it is Rs 8,ooo, monthly Rs 2000. So th ey 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 shou ld give information and data related to potential customers. 4. According to Abraham Maslows hierarchy of needs, the second step to self actualization is the fu lfillment of the safety needs. Though people feel the needs for security a large number live in an ivory tower obvious to th e uncertainties life could throw up to the distant fu ture. They procrastinate to take decisions regarding these aspects. It is this dormant aspect that HDFC Standard Life Insurance should awaken in th e people and bring abou t restlessness and unfulfilled feeling regarding th eir personal and families security. Th e next choice then wou ld be insurance. This could be brought about by an innovative campaign slogan saying Th e decision is now. 5. HDFC Standard Life Insurance must not to get people when start earning but much before th at. To gain th e 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. Th is will make the you nger generation more responsible making them go in for insurance in a big way at the earliest thus making HDFC Standard Life Insu rance the ultimate beneficiary to enjoy the
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income from cu stomers from the very beginning of their services lives. It can also bring abou t a stronger brand commitment in this manner. 6. HDFC Standard Life Insu rance should consol try to change th e 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 jou rney to being a developed country as is exemplified by the fact that in developed countries insurance policies are bought whether developing countries it is sold. 7. Use data warehousing management and mining to gauge the profitability and potential of various customer and produ ct segment and ensu re effective cross selling and u nderstanding the cu stomer better will allow insurance companies to assign appropriate products, determining pricing correctly and increase profitability. 8. Ensure h igh level training and development not just for staff but for agents and distribution of organizations. Existing organizations will have to train staff for better service and flexibility. While all companies will h ave to train employees to cope with new products and an intensive use of information technology.
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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 th an the other. Among all the players HDFC Standard Life Insu rance with th e advantage of being th e earliest to operate in the liberalized insurance market concerned 3,80,000 policies as on March 2008. Yet th e survey has exposed how HDFC Standard Life Insurance is far beh ind LIC. HDFC Standard Life Insurance must also be alert of private insurance companies like Birla Sunlife, Metlife, ING Vysya. 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 h ave 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 su re the company will benefits from my findings and I sincerely hope it use my su ggestions enlisted, when I hope will take th em miles ah ead of competition. In sh ort, I would like to say that the very act of th e concerned management at HDFC Standard Life Insu rance in giving me the job of critically examining consumer beh avior 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 h as a very bright future to look forward and will be a trailblazer in its own right.
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ANNEXURE AND APPENDICES Questionnaire I am pleased to introduce myself, Manish Chandra, 4th semester MBA (MKU) student studying in Presidency Business Sch ool. As my project titled is A study on the awareness of customers about Traditional and Unit linked investment plan of insurance policies with special reference to HDFC Standard Life Insurance Company. I request you to spare your precious time and check this questionnaire. Feedback will be of immense benefit to me in successful completion of this project. This information will be used only for academic purpose. Kindly co operate. 1. Name .... 2. Age 3. Gender Female 4. Marital Status 5. Address ............................................................................ Male Married Unmarried
... ... ...
6. Telephone No. 7. E-mail ID 8. Qualification
... Gradu ate Post Graduate Others
9. Occupation Business Others
Employed
Retired
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Part B 1. Month ly Income 10,000 20,000 20,000 30,000 More than 40,000
30,000 40,000 2. Approximate monthly savings Less th an 2,000 4,000 6,000
2,000 4,000 6,000 8,000
More than 8,000
3. Purpose of savings
Medical expenses
To buy durables To buy house
To buy jewelleries Education 4. Wh ere do you invest your savings Bank deposit Others
Insurance
Share Debentures Real Estate Others 5. Approximately h ow much do you pay towards th e insurance premiu m monthly? Less th an 1,000 1,000 2,000 2,000 3,000 3,000 4,000
More than 4,000 6. Purpose for which you taken this policy? Tax purpose Future security
Childrens education Marriage Others
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7.Who pays the premium
Self
Employer Spouse Others
8. Wh ose life is insu red as per policy taken Parents Self Children Spouse
9. Wh at is you r level of information about the products of HDFC Standard Life Insu rance? Good Poor 10. Has any HDFC Standard Life Insurance advisor visited you? Yes No Moderate
11. Please mention the plan you have taken Traditional Others
ULIP
12..Do you know the basic differences between Traditional and ULIP plan? Yes No 13.Do you have the knowledge of th e benefits of Traditional and ULIP plan? Good Average Poor 14. Which type of plan you prefer for your investment? Traditional ers ULIP Oth
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15. Traditional plan of which company is most preferred by you? HDFC Standard Life Insurance LIC Others 16. ULIP plan of which company is most preferred by you? HDFC Standard Life Insurance LIC Others 17. Do you compare th e insurance product of different companies? Yes No Birla Sunlife Birla Sunlife
18. Do you know where you r money is invested by th e insurer in traditional and ULIP plan? Yes No 19. How do you come to know abou t Traditional and ULIP plan? Adv Agents Friends and relatives ertisement others
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Bibliography
Journals and Catalogs 1. User manual of trading in Product Hand Book pu blish ed by HDFC Standard Life Insurance. 2. Catalogs describing the features of HDFC Standard Life Insurance. Web sites 1. www.hdfcindia.com 2. www.hdfcinsurance.com 3. www.bimaonline.com

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1.

1.2 OBJECTIVES OF THE STUDY

1.3 INDUSTRY PROFILE

b) Growth & Present Status of Insurance Industry

c) Future of Insurance Industry

- HDFC Standard Life declares results for FY 2004-05

Product portfolio comprises solutions, which meet various customer

2.4 FUTURE PLANS OF HDFCSLI

, comprising a large advisor force that targets various customer segments.

requirement. Step 3 - Work ou t th e premium payable along with ou r Financial Consultant .

Our Single Premium Whole of Life plan is well suited to

Premium Payment 6 Easy Ways to pay your premium:

2.8 MARKET PROFILE OF THE ORGANIZATION

Graph 4.2: Monthly savings of the respondents

000 - 8 000 Mor

Educ tion Oth

Graph 4.4: Investment Preference

10 23% 20% 13% 13% 4% 0% 0

20 Frequency 15 40% Percentage

20% 23% 14%

Graph 4.8: Person whose life is insured

Policy preferred by HDFC Standard Life Insurance customers

Knowledge of people abou t Traditional and ULIP plan

0 Good Average Poor

F equency 15 70% 10 30% 5 ercen e

Frequency 15 40% 43% percentage

0 Advertise ent Agents riends and a ily others

CHAPTER - 5 RECOMMENDATION AND SUGGESTIO NS

... ... ...

6. Telephone No. 7. E-mail ID 8. Qualification

... Gradu ate Post Graduate Others

9. Occupation Business Others

30,000 40,000 2. Approximate monthly savings Less th an 2,000 4,000 6,000

2,000 4,000 6,000 8,000

More than 8,000

To buy durables To buy house

Childrens education Marriage Others

7.Who pays the premium

Employer Spouse Others

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