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1) INTRODUCTION:
HDFC Standard 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, 2009 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. The company launched national operations in December 2001. Today, we have over 8000 employees across over 12 states in the country and a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base.
As we further expand our presence across the country with a large network of distributors, we continue to provide innovative product and service offerings to cater to specific insurance and wealth management needs of customers. Whatever your plans in life, you can be confident that HDFC Standard life will offer the right financial solutions to help you achieve them.
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The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier. Life insurance covers the risk that exists in ones life. These risks may arise due to accident, illness or natural causes like fire, flood, earthquake. Life insurance aims to protect the family of the life insured so that they may not suffer from financial consequences on
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the death or disability of the insured person. Life insurance needs to be a mandatory part of every persons life. Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
Life insurance is a very popular form of insurance. It ensures the life of an individual and gives financial protection to the members of the family of the policyholder.
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1.1.2 Definition
Life Insurance may be defined as a type of Insurance Contract whereby the insurer, in consideration of the premium paid in periodical instalments undertakes to pay an annuity or a certain sum of money either on the death of the insured or on the expiry of a certain number of years. Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.
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Where proof is required. Again this insurable interest can be divided into two classes insurable interest arising due to business relationship, and Insurable interest in family relation.
(4) Warranties
Warranties are integral part of contract. i.e. they form the bases of the contract between the proposer and the insurer and if any statement whether material or non material, is untrue the contract shall be null and void and the premium paid by him may be forfeited by the insurer.
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1.3
HISTORY
OF
HDFC
STANDARD
LIFE
Incorporated in 2000, HDFC Standard Life started commercial operation in April 2001. In line with its values of financial responsibility, HDFC Standard Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital as on 30th April, 2009 Is Rs 1782 core HDFC Standard Life has multi-channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance, alliance
marketing and dedicated distribution for emerging markets. The Company places a lot of emphasis on its selection process for agent advisors, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. The company currently has around 75,832
agent advisors at 715 offices across 389 cities. The company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance
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marketing relationships each. HDFC Standard Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 139 offices dedicated to rural areas.
HDFC Standard Life offers a suite of flexible products. It now has 39 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business.
HDFC Life Insurance Company is one of the largest insurance companies in the United States and the world. Ranked as a Fortune 100 company, HDFC Life has provided its policyholders with financial security and investment opportunities since 1841. As a mutual company, HDFC Life is owned solely by its policyholders, to whom it pays annual dividends and provides longterm coverage on a wide range of insurance products. The company prospered during its first 100 years of operations, as the growth of the nation's population and economy created an expanding market for life insurance. Since World War II HDFC Life has maintained its competitive edge by diversification.
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2) Range of Solutions
We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.
3) Strong promoter
HDFC Standard Life is a strong, financially secure business supported by two strong and secure promoters HDFC Ltd and Standard Life. HDFC Ltds excellent brand strength emerges from its unrelenting focus on corporate governance, high Standards of ethics and clarity of vision.
Standard Life is a strong, financially secure business and a market leader in the UK Life & Pensions sector.
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4) Investment Philosophy
We follow a conservative investment management philosophy to ensure that our customers money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of protecting and generating good, consistent, and stable investment returns to match the investors long-term objective and return expectations, irrespective of the market condition.
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INSURANCE
REGULATORY
AND
DEVELOPMENT AUTHORITY (IRDA):Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously such to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents.
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..
(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.
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(2) Without prejudice to the generality of the provisions contained in subsection (1), the powers and functions of the Authority shall include, (a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) specifying the code of conduct for surveyors and loss assessors; (e) promoting efficiency in the conduct of insurance business; (f) promoting and regulating professional organisations connected with the insurance and re-insurance business; (g) levying fees and other charges for carrying out the purposes of this Act; (h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business; (i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so
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controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); (j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries; (k) regulating investment of funds by insurance companies; (l) regulating maintenance of margin of solvency; (m) adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n) supervising the functioning of the Tariff Advisory Committee; (o) specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (p) specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and (q) exercising such other powers as may be prescribed
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an early age of 42 years, the loss of income to his family would be nearly Rs. 5,00,000/- per annum.
However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of service tax & educational cess) can help Amit provide a financial cushion of up to Rs. 10, 00,000/- for his family over a period of 25 years.
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Features
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Features
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Features
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Features
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Features
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Features
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Features
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Features
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Features
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Features
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Features
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Features
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Features
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Features
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7. HDFC SIMPILIFE
You have always believed in living life on your own terms. So why let the changing realities of everyday life overwhelm you and make your aspirations take a back seat? With our HDFC SimpliLife Plan, you can plan now to HDFC imise your savings and secure your and your familys future. It is a convenient plan, which saves you from the need of going for Medicals. This Unit Linked Plan gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments.
Features
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Features
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Features
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Features
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Features
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4. FINANCIAL ANAYISIS
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Table showing: current ratio and quick ratio of HDFC standard life Insurance Company Ltd. for the year 2008 and 2009.
Inference:
The above table is showing the details regarding the current ratio and quick ratio of hdfc standard life insurance company ltd. The standard current ratio is 2:1, and quick ratio is 1:1, but the company has got only 1.37 and 1.07 both the year the ratio is not satisfactory. But compare to year-2009 ratio year-2008 ratio was good.
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Inference: There is continues increase in Share holders Funds and also in an outsider funds from the year 2008 to 2009. Outsiders funds are increased more than the shareholders fund. Hence the outsiders funds has been increased year by year, it shows the larger outsiders funds are available to the company. Since this is quite satisfactory and in the same way it is not good to the shareholders point of view and also to the company.
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4.4) GRAPH SHOWING THE CURRENT RATIOS OF HDFC STANDARD LIFE INSURANCE COMPANY LTD. FROM THE YEAR 2005 TO 2009.
P E R C E N T A G E
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4.5) TABLE SHOWING THE QUICK RATIOS OF HDFC STANDARD LIFE INSURANCE COMPANY LTD.:-
YEARS
2009 (Rs.000)
2008 (Rs.000)
2007 (Rs.000)
2006 (Rs.000)
2005 (Rs.000)
Liquid Assets
9,643,629 8,575,727 5,325,536 3,869,728 1,143,024
Liquid liabilities
9,029,038
6,251,168
3,905,497
2,687,296
1,090,355
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Table showing: the gross profit ratio of HDFC Standard Life Insurance Company Ltd. 2009 (Rs.000) (5,029,631) 55,183,763 -0.09% 2008 (Rs.000) (2,435,094) 48,176,166 -0.05%
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4.7) The Debt Equity ratios of HDFC Standard Life Insurance Company Ltd. from the year 2005 to 2009.
Years 2009 (RS.000) 2008 (RS.000) 2007 (RS.000) 2006 (RS.000) 2005 (RS.000)
Outsiders Funds
97,578,470
84,012,076
45,999,541
23,633,655
8,470,669
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4.8) The Gross Profit ratios of HDFC Standard Life Insurance company.ltd from the year 2005-2009.
P E R C E N T A G E
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4.9) Table showing Net Profit ratio of HDFC standard life from the year 2005 to 2009
Year
2009 (RS.000)
2008 (RS.000)
2007 (RS.000)
2006 (RS.000)
2005 (RS.000)
Net profit
(11,913,122)
(6,883,491)
(4,421,364)
(3,165,753)
(1,878,181)
55,183,763 -0.22%
48,176,166 -0.14%
28,226,248 -0.16%
15,469,501 -0.20%
6,866,346 -0.27%
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4.10)
SUGGESTIONS
a. It can try to create awareness about this company through some programmes.
b. There may be proper and immediate response in case of any queries from customers.
c. It can concentrate to increase its sales revenue as finance is life blood of any business.
e. There can be an outstanding after sales service which is one of the important factors.
h. It is able to concentrate on decreasing other expenses and it has to spend the expenses which are really required to the development of the company.
i. Proper management is to be there and also it should supervise the activities of the company very well.
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j. It needs to be aware of its competitors to overcome from the competition and to get more market share.
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4.11) Balance sheet of HDFC STANDARD LIFE INSURANCE COMPANY LTD. as at March 31 for five years.
Particulars
Schedu 2009 2008 2007 2006 2005 le (Rs.000) (Rs.000) (Rs.000 (Rs.000 (Rs.000) ) )
SOURCES OF FUNDS SHAREHOLDE RS FUNDS: Share Capital Share application money received pending allotment of shares Reserve and Surplus Credit / [Debit] Fair Value Change Account Sub-Total
17,958,18 12,706,35 8,007,14 6,192,71 3,190,898 0 9 8 8 287,391 552,892 552,892 65,902 65,902 3,552 (77,610) 3,881 73,105
6,331,72 3,194,450 5 -
(296,885)
193,745
91,247
209,569
174,980
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Fair Value Change Account Policy Liabilities Insurance Reserves Provision for Linked liabilities Add: Fair value change Total Provision for Linked Liabilities Sub-Total Funds for Future Appropriations Funds for future appropriation Provision for lapsed policies unlikely to be revived Surplus Allocated to Shareholders
29,092,41 24,366,74 17,391,5 11,487,9 6,377,397 9 7 31 96 1,918,292 84,085,08 56,317,97 25,934,2 9,732,78 3 6 64 1 (15,302,1 3,133,608 2,582,49 2,203,30 47) 9 9 68,782,93 59,451,58 28,516,7 6 4 63 97,578,47 84,012,07 45,999,5 0 6 41 586,395 531,970 246,951 59,485 11,936,0 90 -
8 8A
Policyholders Assets held to cover Linked Liabilities LOANS FIXED ASSETS CURRENT ASSETS Cash and bank balances Advances and Other Assets Sub-total (A)
8B 9 10 11
12 4,108,660 5,534,969
9,643,629 8,575,727 5,325,53 3,869,72 1,143,024 6 8 13 14 8,820,225 6,129,149 3,874,65 2,658,56 1,069,635 2 7 208,813 122,019 20,720 30,845 28,729 9,029,038 6,251,168 3,905,49 2,687,29 1,090,355 7 6 614,591 2,324,559 1,420,03 1,182,43 9 2 52,669
Sub-Total (B) NET CURRENT ASSETS (C) = (A - B) MISCELLANE 15 OUS EXPENDITURE (to the extent not written off or adjusted) DEBIT
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BALANCE IN PROFIT AND LOSS ACCOUNT (Shareholders account) TOTAL CONTINGENT LIABILITIES 1. Partly paid-up investments 2. Claims, other than against policies, not acknowledged as debts by the company 3. Underwriting commitments outstanding (in respect of share and securities) 4. Guarantees given by or on behalf of the Company 5. Statutory demands / liabilities in dispute, not provided for 6.Reinsurance obligations to
262,091
309,494 -
119,829 -
1,465,718 -
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Total
1,465,718
262,091
309,494
119,829
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4.12) Profit & Loss Account for year ended March 31, from 2005 to 2009
Shareholders Account (Non-technical Account) 2009 Particulars schedu (RS.00 le Amounts transferred from the Policyholders Account (Technical Account) Income from Investments (a) Interest, Dividends & Rent - Gross (b) Profit on sale / redemption of investments (c) (Loss on sale / redemption of investments) (d) Transfer /
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2008 (RS.00 0)
2007 (RS.00 0) -
2006 (RS.00 0) -
2005 (RS.00 0) -
0)
794,984 516,341
302,367 242,109
126,836
138,496
65,321
13,924
98,694
114,192
7,989
10,117
(6,933)
(4,043)
gain on revaluation / change in fair value (e) Amortization of (premium)/di scount on investments Sub Total Other Income TOTAL (A) 329,343 308,838 300 1,124,6 27 Expenses other than those directly related to the insurance business Bad debts written off 3A 5,307 12,596 8,252 18,251 10,490 531 825,710 202,274 764 203,038 124,032 3,650 127,682 66,239 1587 67,826
6,148,9 51
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of Investments (net)
(c) Others
Contribution to the Policyholders Fund TOTAL (B) 6,154,2 58 3,260,80 1,458,64 1,415,25 965,234 4 9 4
Profit / (Loss) before tax Provision for Taxation Profit / (Loss) after tax APPROPRIATIO NS (a) Balance at the
(6,883, 491)
(4,421,3 64)
(3,165,7 53)
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beginning of the Year (b) Interim dividends paid during the Year (c) Proposed final dividend (d) Dividend distribution tax (e) Transfer to liabilities on account of Employee benefits Profit / (Loss) carried forward to the Balance Sheet Earnings per share - Basic Earnings per share - Diluted (3.28) (2.42) (1.81) (2.92) (3.38) (3.28) (2.42) (1.83) (2.92) (3.38) (11,913 ,122) (6,883,4 91) (4,421,3 64) (3,165,7 53) (1,878,1 81) (27,033) -
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Primary Method
Primary data are those which are collected fresh and for the first time and thus happen to be original in character. It is always advised to use primary data whenever possible. They are also known as first handed data. Following are the methods of collecting Primary Data:
(1) Interview
(4) Questionnaire Questionnaire is a set of questions to find out the data about the Insurance Companys performance, which is circulated among the people or customers of the same Company. The customers may regard to different branches. The customer or people based on their personal experience give answers to the sets of questions presented to them on the basis of which we find out the status of the company.
I have considered 50 samples to get a feedback that how many customers have taken which kind of policies which I have mentioned in Finding.
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Secondary Data
Secondary data means data that are already available. i.e. they refer to data which have already been collected and analyzed by someone else. Such information has not been gathered afresh specifically for any research project.
(1) Books
Books were used to refer to the subject matter and to get extra knowledge on the topic. Books of various authors were referred for the same purpose.
I have referred topics like Meaning, Definition and Features of Life Insurance from Innovations in Banking and Insurance.
Websites are also used to attract the customers as per the knowledge that I have.
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FINDING
1. As per survey 35% of sample are having HDFC STANDARD Life Insurance Company Term Policy , 30% are having Pension Plan , 25% are having Childrens Policy and 10% has UILP Plan of HDFC STANDARD Life Insurance Company Ltd.
Insurance Company for Tax Saving and Investment , 30% are taking Retirement and pension , 30% are taking Childrens Education &Future Plan and 20% are taking Insurance for Family Life Security.
3. As per survey 40% of sample prefers to have Mediclaim for their family, 15% sample prefers to have Life Plan for their family, 30% sample prefers to have Whole Life Plan for their family and 15% sample prefers to the Pension plan.
4. As per survey 30% of sample prefers to pay their premium through Cash, 40% sample prefers to pay their premium through Cheque, 15% sample prefers to pay their premium through Online and 15% sample prefers to pay their premium through ECS.
5. As per survey 45% of samples prefer to pay their premium through monthly, 40% of sample prefers to pay their premium through half-yearly premium, and 15% of sample prefers to pay their premium through halfyearly premium.
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6. As per survey 40% of sample prefers to invest their money in growth Fund, 30% of sample prefers to invest their money in balance Fund and 30% sample prefers to invest their money in Traditional Fund.
As per survey 80% sample are satisfied with HDFC STANDARD Life Insurance Company Ltd.
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HDFC Standard Life Insurance is one of Indias fastest growing life insurance companies. HDFC Standard India is joint venture between Dabur and HDFC Standard Group whos Association with India is form 1834.HDFC Standard vision is to be amongst India leading life insurance with quality business model focused on sustainable growth. HDFC Standard is also one of the first companies to insurance the contemporary unit-linked products. The partners of HDFC Standard life insurance are ABN AMRO Bank, The Laxmi Vilas Bank LTD, Punjab & Sind Bank Indusland Bank, Bank of Rajasthan. Dabur Hold 74% stake and stake in HDFC Standard life insurance Co. LTD, HDFC Standard life insurance company has a paid up capital Rs 1694.50Crore and it has 224 branches and close to 3000 location.
HDFC Standard life insurance company provide various plan concentrating on individual plan like overview HDFC Standard new young scholar, HDFC Standard new pension Plus, HDFC Standard health plus etc and group plan like HDFC Standard corporate life plus, Group Gratuity plan HDFC Standard group super vision plan etc
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HDFC Corporation is one of the Indies leading business groups with interest in provide load For Housing loan, business is insurance & retail. HDFC has been a pioneering Force in the telecom sector. Vision of HDFC Standard Life is to be leader and preferred company for financial protection and wealth management in India. The HDFC Corporation is such as premises are well maintained with good infrastructure suggestion box for payment of premium through bank.
Some of the product is sold by HDFC Standard Life are future secure pension, life insurance, bright star plan, aspire life wealth confident, secure confident, etc.
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