A project report on customers attitude towards hdfc standard life insurance

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A project report on customers attitude towards hdfc standard life insurance

  1. 1. “Customers Attitude towards HDFC Standard Life Insurance” INDEX S. N. CONTENTS PAGE NO. 1 Executive Summary 1 2 Introduction to Topic 4 3 Introduction 10 4 Company Profile 32 5 Research Design 57 6 Data Analysis 60 7 Findings 81 8 Suggestions 83 9 Conclusion 85 10 Bibliography 87Babasabpatilfreepptmba.com Page 1
  2. 2. “Customers Attitude towards HDFC Standard Life Insurance” 11 Annexure 89 EXECUTIVE SUMMARYBabasabpatilfreepptmba.com Page 2
  3. 3. “Customers Attitude towards HDFC Standard Life Insurance” EXECUTIVE SUMMARY Now a day, the insurance sector is playing a vital role in the portfolio of finance sector. So insurance industry is much concentrating over analyzing customers attitude, which is very essential for the growth of the company, to take competitive advantage in the market.Title of the Study: “Customers Attitude towards HDFC Standard Life Insurance”Statement of the Problem: The study has been undertaken to know the “Customersattitude towards HDFC Standard Life Insurance”Objectives of Study: To study the customer awareness for HDFC Standard Life. To understand the customers attitude towards HDFC Standard Life brand. To know the customers attitude towards the products. To know the customers attitude towards the service provided by the company. To examine the consumers buying behavior. To know the factors which influenced the customers to purchase policy..Data Source:  Secondary: Secondary data consists of readily available information on various web-sites, journals, insurance books & company database.  Primary: Through survey method by using questionnaireSampling method: • Sample size: 100 samples • Sample unit: Existing customers of HDFC Standard Life InsuranceBabasabpatilfreepptmba.com Page 3
  4. 4. “Customers Attitude towards HDFC Standard Life Insurance” • Sample area: Belgaum cityLimitations of the study: This survey was restricted to Belgaum city only. Time limit was major constraint. The Sample size restricted to 100 onlyBenefits to the Organization: This project will help the organization to know the customer’s attitude towards the products of the company. This will help the organization to provide better services to its clients.Findings:  35% of policy holders are more concentrated on Unit linked plans, it is due to the reason that the returns on these policies are more compared to the traditional policies.  The major competitors are LIC and ICICI Prudential.  79% of the respondents would like to invest up to 20% of their annual income in life insurance and keep the substantial part of the income for their livelihood.Suggestions: Service should focus on enhancing the customer experience and maximizing customer convenience. This calls for effective CRM system, which eventually would create sustainable competitive advantage and build long lasting relationship.Conclusion:Family welfare is the main factor, which investors think while investing in any lifeinsurance company. But other factors such as returns, security, and tax benefit are alsocarrying almost same preference.Babasabpatilfreepptmba.com Page 4
  5. 5. “Customers Attitude towards HDFC Standard Life Insurance” INTRODUCTION TO THE TOPIC Consumer behaviorBabasabpatilfreepptmba.com Page 5
  6. 6. “Customers Attitude towards HDFC Standard Life Insurance”Consumer behavior is the study of how people buy, what they buy, when they buy andwhy they buy. It blends elements from psychology, sociology, sociopsychology,anthropology and economics. It attempts to understand the buyer decisionprocesses/buyer decision making process, both individually and in groups. It studiescharacteristics of individual consumers such as demographics, psychographics, andbehavioral variables in an attempt to understand peoples wants. It also tries to assessinfluences on the consumer from groups such as family, friends, reference groups, andsociety in general. Attitude Attitude is a hypothetical construct that represents an individuals like or dislikefor an item. Attitudes are positive, negative or neutral views of an "attitude object": i.e. aperson, behavior or event. People can also be "ambivalent" towards a target, meaning thatthey simultaneously possess a positive and a negative bias towards the attitude inquestion.Attitudes are composed from various forms of judgments. Attitudes develop on the ABCmodel (affect, behavioral change and cognition). The affective response is aphysiological response that expresses an individuals preference for an entity. Thebehavioral intention is a verbal indication of the intention of an individual. The cognitiveresponse is a cognitive evaluation of the entity to form an attitude. Most attitudes inindividuals are a result of observational learning from their environment.Babasabpatilfreepptmba.com Page 6
  7. 7. “Customers Attitude towards HDFC Standard Life Insurance”Attitude-Behavior Consistency: Consumers often do not behave consistently withtheir attitudes for several reasons:  Ability. He or she may be unable to do so. Although junior high school student likes pick-up trucks and would like to buy one, she may lack a driver’s license.  Competing demands for resources. Although the above student would like to buy a pickup truck on her sixteenth birthday, she would rather have a computer, and has money for only one of the two.  Social influence. A student thinks that smoking is really cool, but since his friends think it’s disgusting, he does not smoke.  Measurement problems. Measuring attitudes is difficult. In many situations, consumers do not consciously set out to enumerate how positively or negatively they feel about mopeds, and when a market researcher asks them about their beliefs about mopeds, how important these beliefs are, and their evaluation of the performance of mopeds with respect to these beliefs, consumers often do not give very reliable answers. Thus, the consumers may act consistently with their true attitudes, which were never uncovered because an erroneous measurement was made.Changing behavior: People like to believe that their behavior is rational; thus, oncethey use our products, chances are that they will continue unless someone is able to getthem to switch. One way to get people to switch to our brand is to use temporary pricediscounts and coupons; however, when consumers buy a product on deal, they mayjustify the purchase based on that deal (i.e., the low price) and may then switch to otherbrands on deal later. A better way to get people to switch to our brand is to at leasttemporarily obtain better shelf space so that the product is more convenient. Consumersare less likely to use this availability as a rationale for their purchase and may continue tobuy the product even when the product is less conveniently located. (Notice, by the way,that this represents a case of shaping).Babasabpatilfreepptmba.com Page 7
  8. 8. “Customers Attitude towards HDFC Standard Life Insurance”Changing beliefs: Although attempting to change beliefs is the obvious way to attemptattitude change, particularly when consumers hold unfavorable or inaccurate ones, this isoften difficult to achieve because consumers tend to resist. Several approaches to beliefchange exist:  Change currently held beliefs: It is generally very difficult to attempt to change beliefs that people hold, particularly those that are strongly held, even if they are inaccurate. For example, the petroleum industry advertised for a long time that its profits were lower than were commonly believed, and provided extensive factual evidence in its advertising to support this reality. Consumers were suspicious and rejected this information, however.  Change the importance of beliefs: Although the sugar manufacturers would undoubtedly like to decrease the importance of healthy teeth, it is usually not feasible to make beliefs less important--consumers are likely to reason, why, then, would you bother bringing them up in the first place? However, it may be possible to strengthen beliefs that favor us--e.g., a vitamin supplement manufacturer may advertise that it is extremely important for women to replace iron lost through menstruation. Most consumers already agree with this, but the belief can be made stronger.  Add beliefs: Consumers are less likely to resist the addition of beliefs so long as they do not conflict with existing beliefs. Thus, the beef industry has added beliefs that beef (1) is convenient and (2) can be used to make a number of creative dishes. Vitamin manufacturers attempt to add the belief that stress causes vitamin depletion, which sounds quite plausible to most people.  Change ideal: It usually difficult, and very risky, to attempt to change ideals, and only few firms succeed. For example, Hard Candy may have attempted to change the ideal away from traditional beauty toward more unique self expression.Attitude ChangeBabasabpatilfreepptmba.com Page 8
  9. 9. “Customers Attitude towards HDFC Standard Life Insurance”Changing the Function that the Product ServesAssociate the Product with a Famous Personality or an Established OrganizationChanging Attitudes by Presenting the Product in a New LightChange the Beliefs of the Consumer Regarding the ProductTry to Change the Perception of the ConsumerNeed to understand:  Why consumers make the purchases that they make?  What factors influence consumer purchases?  The changing factors in society.Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. Afirm needs to analyze buying behavior for:  Buyers’ reactions to a firms marketing strategy has a great impact on the firm’s success.  The marketing concept stresses that a firm should create a Marketing Mix that satisfies customers, therefore need to analyze the what, where, when and how consumers buy.  Marketers can better predict how consumers will respond to marketing strategies.If a marketer can identify consumer buyer behavior, he or she will be in a better positionto target products and services at them. Buyer behavior is focused upon the needs ofindividuals, groups and organizations.It is important to understand the relevance of human needs to buyer behavior (remember,marketing is about satisfying needs).Lets look at human motivations as introduced by Abraham Maslow by his hierarchy ofneeds: The hierarchy is triangular. This is because as you move up it, fewer and fewerpeople satisfy higher level needs. We begin at the bottom level.Babasabpatilfreepptmba.com Page 9
  10. 10. “Customers Attitude towards HDFC Standard Life Insurance”Physiological needs such as food, air, water, heat, and the basic necessities of survivalneed to be satisfied. At the level of safety, man has a place to live that protects him fromthe elements and predators. At the third level we meet our social and belongingness needsi.e. we marry, or join groups of friends, etc.The final two levels are esteem and self-actualization. Fewer people satisfy the higherlevel needs. Esteem means that you achieve something that makes you recognized andgives personal satisfaction, for example writing a book. Self-actualization is achieved byfew. Here a person is one of a small number to actually do something. For example, NeilArmstrong self-actualized as the first person to reach the Moon.Babasabpatilfreepptmba.com Page 10
  11. 11. “Customers Attitude towards HDFC Standard Life Insurance” INTRODUCTIONINTRODUCTION TO INSURANCEThe business of insurance is related to the protection of the economic values of the assets.Every asset has a value the asset would have been created through the efforts of theowner. The asset is valuable to the owner because he expects to get some benefit from it.Insurance is a mechanism that helps to reduce the effect of such adverse situation.Babasabpatilfreepptmba.com Page 11
  12. 12. “Customers Attitude towards HDFC Standard Life Insurance”Purpose and Need of Insurance:Assets are insured because they are likely to be destroyed through accidental occurrencessuch possible occurrences are called perils. Fire floods breakdowns, lightning,earthquakes etc, are perils. If such perils can cause damage to the asset, the asset isexposed to that risk.The risk only means that there is a possibility of loss or damage. The damage may or maynot happen. Insurance is done against the contingency that it may happen. There has to bean uncertainty about the risk. Insurance is relevant only if there are uncertainties. In thecase of a human being, death is certain, but the time of death is uncertain. In the case of aperson who is terminally ill, the time of death is not uncertain, though not exactly known.Insurance does not protect the asset. It does not prevent its loss due to the peril. The perilcan sometimes be avoided, through better safety and damage control management.Insurance only tries to reduce the impact of the risk on the owner of the asset and thosewho depend on that asset. It only compensates the losses and that too, not fully. Only economic consequencescan be insured. If the loss is not financial, insurance may not be possible.Babasabpatilfreepptmba.com Page 12
  13. 13. “Customers Attitude towards HDFC Standard Life Insurance”The Business of InsuranceThe business of insurance is to:1) Bring together persons with common insurance interests (sharing the same risks),2) Collect the share or contribution (called premium) from all of them, and3) Pay out compensations (called claims) to those who suffer.In India, insurance business is classified primarily as life and non-life or general. Lifeinsurance includes all risks related to the lives of human beings and general insurancecovers the rest. General insurance has three classifications is; Fire, Marine andMiscellaneous. Personal accident and sickness insurance, which are related to humanbeings, is classified as ‘non-life’ in India, but is classified as ‘life’, in many othercountries.The business of insurance is nothing but one of sharing. It spreads losses of an individualover the group of individuals who are exposed to similar risks. People who suffer loss getrelief because their loss is made good. People who do not suffer loss are relieved becausethey were spared the loss.Insurance business is divided into four classes:1) Life Insurance Business.2) Fire Insurance Business.3) Marine Insurance Business.4) Miscellaneous Insurance Business.Meaning of Life Insurance BusinessBabasabpatilfreepptmba.com Page 13
  14. 14. “Customers Attitude towards HDFC Standard Life Insurance”Life insurance, originally conceived to protect a mans family when his death left themwithout income, has developed into a variety of policy plans.Life insurance or life assurance is a contract between the policy owner and the insurer,where the insurer agrees to pay a sum of money upon the occurrence of the insuredindividuals or individuals death or other event, such as terminal illness or critical illness.In return, the policy owner (or policy payer) agrees to pay a stipulated amount called apremium at regular intervals or in lump sums. There may be designs in some countrieswhere bills and death expenses plus catering for after funeral expenses should beincluded in Policy Premium. In the United States, the predominant form simply specifiesa lump sum to be paid on the insureds demise.As with most insurance policies, life insurance is a contract between the insurer and thepolicy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (orBeneficiaries) if an insured event occurs which is covered by the policy. To be a lifepolicy the insured event must be based upon life (or lives) of the people named in thepolicy.Life policies are legal contracts and the terms of the contract describe the limitations ofthe insured events. Specific exclusions are often written into the contract to limit theliability of the insurer; for example claims relating to suicide, fraud, war, riot and civilcommotion.Life based contracts tend to fall into two major categories: • Protection - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. • Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.Meaning of Fire Insurance BusinessBabasabpatilfreepptmba.com Page 14
  15. 15. “Customers Attitude towards HDFC Standard Life Insurance”Fire insurance usually includes damage from lightning; other insurance against theelements includes hail, tornado, flood, and drought.Meaning of Marine Insurance BusinessMarine insurance protects shipping companies against the loss of a ship or its cargo, aswell as many other items, and so-called inland marine insurance covers a vast miscellanyof items, including tourist baggage, express and parcel-post packages, truck cargoes,goods in transit, and even bridges and tunnels.Meaning of Miscellaneous Insurance BusinessSpecial casualty forms are issued to cover the hazards of sudden explosionsfrom equipment such as steam boilers, compressors, electric motors,flywheels, air tanks, furnaces, and engines. Boiler and machinery insurance hasseveral distinctive features. A substantial portion of the premium collected isused for inspection services rather than loss protection.The business of insurance started with marine business. Traders, who used to gather inthe Lloyd’s Coffee house in London, agreed to share the losses to their goods while beingcarried by ships. The losses used to occur because of pirates who robbed on the high seasor because of bad weather spoiling the goods or sinking the ship. The first insurancepolicy was issued in 1583 in England. In India, insurance began in 1870.The business of insurance is the protection of economic values of assets. Every asset isexpected to last for a certain period of time during which it will perform. Insurance is amechanism that helps to reduce the effect of such adverse situation. Insurance is relevantonly if there are uncertainties.Life Insurers transact life insurance business; the rest is transacted by General Insurers.No composites are permitted as per law.Babasabpatilfreepptmba.com Page 15
  16. 16. “Customers Attitude towards HDFC Standard Life Insurance”The business of Insurance essentially means defraying risks attached to any activity overtime (including life) and sharing the risks between various entities, both persons andorganizations.Insurance companies are important players in financial markets as they collect and investlarge amounts of premium. Insurance products are multi purpose and offer the followingbenefits:1. Protection to the investors2. Accumulate savings3. Channelise savings into sectors needing huge long-term investments.INSURANCE COMPANIES (IC) receives, without much default, a steady cash streamof premium or contributions to pension plans. Various actuary studies and models enablethem to predict, relatively accurately, their expected cash outflows. Liabilities of ICsbeing long-term or contingent in nature, liquidity is excellent and their investments arealso long-term in nature. Since they offer more than the return on savings in the shape oflife-cover to the investors, the rate of return guaranteed in their insurance policies isrelatively low. Consequently, the need to seek high rates of returns on their investments isalso low.The risk-return trade off is heavily tilted in favor of risk. As a combined result of all this,investments of insurance companies have been largely in bonds floated by GOI,PSUs.,state governments, local bodies, corporate bodies and mortgages of long termnature. The last place where Insurance companies are expected to be over-active isbourses.Lately ICs have ventured into pension schemes and mutual funds also. However, lifeinsurance constitutes the major share of insurance business. Life Insurance depends uponthe laws of mortality and there lies the difference between life and general insurancebusinesses. Life has to extinguish sooner or later and the claim in respect of life is certain.In case of general insurance, however, there may never be a claim and the amount can beascertained in advance. Hence, Life Insurance Pension business also derives from lifeBabasabpatilfreepptmba.com Page 16
  17. 17. “Customers Attitude towards HDFC Standard Life Insurance”insurance in as much as the pension outgo again depends upon the laws of mortality .Theforays made by insurance companies in this area are, therefore ,natural corollary of theirbusiness includes, besides covering the risk of early happening of an event, an element ofsavings also for the beneficiaries.Insurance vs. assuranceOutside the United States, the specific uses of the terms "insurance" and "assurance" aresometimes confused. In general, in these jurisdictions "insurance" refers to providingcover for an event that might happen, while "assurance" is the provision of cover for anevent that is certain to happen. However, in the United States both forms of coverage arecalled "insurance".When a person insures the contents of their home they do so because of events that mighthappen (fire, theft, flood, etc.) They hope their home will never be burglarized, or burndown, but they want to ensure that they are financially protected if the worst happens.This example of insurance shows how it is a way of spending a little money to protectagainst the risk of having to spend a lot of money.When a person insures their life they do so knowing that one day they will die. Thereforea policy that covers death is assured to make a payment. The policy offers assurance ondeath; even if the policy has a prescribed termination date the policy is still assured to payon death and therefore is an assurance policy. Examples include Term Assurance andWhole Life Assurance. An accidental death policy is not assured to pay on death as thelife insured may not die through an accident; therefore it is an insurance policy.A policy might also be assured for other reasons. For example an endowment policy isdesigned to provide a lump sum on maturity. Under certain types of policy the lump sumis guaranteed. Therefore, this may also be called an assurance policy.Babasabpatilfreepptmba.com Page 17
  18. 18. “Customers Attitude towards HDFC Standard Life Insurance”The test of whether a policy is assurance or insurance is that with an assurance policy theinsured event will definitely occur (at some point) whereas with an insurance policy thereis a risk the insured event might occur. With regard to Whole Life policies, the question is not whether the insured event (inthis case death) will occur, but simply when. If the policy has non-forfeiture values (orcash values) then the policy is assured to pay.During recent years, the distinction between the two terms has become largely blurred.This is principally due to many companies offering both types of policy, and rather thanrefer to themselves using both insurance and assurance titles, they instead use just one.Role of Insurance in Economic Development:For economic development, investments are necessary. Investments are made out ofsavings. A life insurance company is a major instrument for the mobilization of savingsof people, particularly from the middle and lower income groups. These savings arechanneled into investments foe economic growth.All good life insurance companies have huge funds, accumulated through the paymentsof small amount of premium of individuals. These funds are invested in ways thatcontribute substantially for the economic development of the countries in which they dobusiness.All good life insurance companies have huge funds, accumulated through the paymentsof small amount of premia of individuals. These funds are invested in ways thatcontribute substantially for the economic development of the countries in which they dobusiness.The private insurers in India are new and had not built up funds in 2002. But, in course oftime, they also would be directly and indirectly contributing to the country’s economicdevelopment. A life insurance company will have large funds. These amounts are collected by wayof premiums. Every premium represents a risk that is covered by that premium. In effect,Babasabpatilfreepptmba.com Page 18
  19. 19. “Customers Attitude towards HDFC Standard Life Insurance”therefore, these vast amounts represent pooling of risks. The funds are collected and heldin trust for the benefit of the policyholders. The management of life insurance companiesis required to keep this aspect in mind and make all its decisions in ways that benefit thecommunity. This applies also to its investments. That is why successful insurancecompanies would not be found investing in speculative ventures.Apart from investments, business and trade benefit through insurance. Without insurance,trade and commerce will find it difficult to face the impact of major perils like fire,earthquake, floods, etc. Financiers, like banks, would collapse if the factory, financed byit, is reduced to ashes by a terrible fire. Insurers cover also the loss to financiers, if theirdebtors default.INSURANCE INDUSTRYInsurance Sector in IndiaIndia with about 200 million middle class household shows a huge untapped potential forplayers in the insurance industry. Saturation of markets in many developed economieshas made the Indian market even more attractive for global insurance majors. Theinsurance sector in India has come to a position of very high potential andcompetitiveness in the market.The insurance industry in India can be broadly classified in two parts. They are:  Life Insurance  Non-life (General) InsuranceBrief history of Insurance:Babasabpatilfreepptmba.com Page 19
  20. 20. “Customers Attitude towards HDFC Standard Life Insurance” The beginning of the insurance business is traced to the city of London. It startedwith the marine Business. Marine traders, who used to gather at Lloyds coffee house inLondon, agreed to share losses to goods during transportation by ship.Marine related losses includedA) Loss of ship by shrinking due to weather in high seas.B) Goods in transit by ship robbed by sea pirates.C) Loss if goods in transit by ship due to bad weather in high seas. The first insurance police was issued in 1583 in England. In Indiainsurance began in 1870 with life insurance being transacted by an English company theEuropean and the Albert. The first Indian insurance company was the "Bombay mutualassurance society Ltd, formed in 1870.In 1956 LIC OF India was nationalized on1/9/1956.Some of the important milestones in the life insurance business in Indiaare: • 1818:-The British Introduce to India. With the establishment of the Oriental Life Insurance Company in Calcutta. • 1850:- Non life insurance debuts, with Triton Insurance Company. • 1870:- Bombay mutual Life Assurance Society is the first India –owned life insurer. • 1907:-Indian Mercantile Insurance is the first Indian non life insurer. • 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. • 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.Babasabpatilfreepptmba.com Page 20
  21. 21. “Customers Attitude towards HDFC Standard Life Insurance” • 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. • 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. • 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. • 1993:-Malhotra Committee, headed by former BBI governor R.N.Malhotra, set up to draw up a blue print for insurance sector reforms. • 1994:-Malhotra Committee recommends re-entry for private players, autonomy to PSU insurers. • 1997:-Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up. • 2000:- IRDA starts giving licenses to private insurers, ICICI Prudential and HDFC Standard Life first private insurers to sell a policy. • 2002:- Banks were allowed to sell insurance plans , as TPAs enter the scene, insurers start selling non-life claims in the cashless modeInsurance Sector Reforms:Babasabpatilfreepptmba.com Page 21
  22. 22. “Customers Attitude towards HDFC Standard Life Insurance”In 1993, Malhotra Committee headed by former Finance Secretary and RBI GovernorR.N. Malhotra was formed to evaluate the Indian insurance industry and recommend itsfuture direction. The Malhotra committee was set up with the objective ofcomplementing the reforms initiated in the financial sector. The reforms were aimed at"creating a more efficient and competitive financial system suitable for the requirementsof the economy keeping in mind the structural changes currently underway andrecognizing that insurance is an important part of the overall financial system where itwas necessary to address the need for similar reforms". In 1994, the committee submittedthe report and some of the key recommendations included:1) Structure: • Government stake in the insurance Companies to be brought down to 50%. • Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. • All the insurance companies should be given greater freedom to operate.2) Competition: • Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. • No Company should deal in both Life and General Insurance through a single entity. • Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. • Postal Life Insurance should be allowed to operate in the rural market. • Only One State Level Life Insurance Company should be allowed to operate in each state.3) Regulatory Body:Babasabpatilfreepptmba.com Page 22
  23. 23. “Customers Attitude towards HDFC Standard Life Insurance” • The Insurance Act should be changed. • An Insurance Regulatory body should be set up. • Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.4) Investments: • Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% • GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)5) Customer Service: • LIC should pay interest on delays in payments beyond 30 days. Computerization of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.Bank and Insurance:Babasabpatilfreepptmba.com Page 23
  24. 24. “Customers Attitude towards HDFC Standard Life Insurance”Bank assurance symbolizes the convergence of banking and insurance. The term has itsorigins in France and involves distribution of insurance products through a banks branchnetwork. While bank assurance has developed into a tremendous success story in Europe,it is a relatively new concept in Australia and Asia.Most new insurers have entered into memoranda of understanding with banks to use theirbranches as outlets for marketing standard products. State Bank of India, Vysya Bank andJ&K Bank already has joint ventures in life insurance. Vijaya Bank and Punjab NationalBank are in the midst of finalizing life and non-life ventures.The Insurance Act allows only those companies registered under the Companies Act tobecome corporate agents. This gives the new generation and old private sector banks ahead start over Public sector banks, which are technically not eligible to sell riskproducts.IRDA, IBA & RBI are in discussions to iron out the various issues, as public sector bankswill play a key role in the distribution of products.March 2003 Review:The Insurance Regulatory and Development Authority have said that a bank cannot enterinto a referral arrangement with more than one life insurance company or more than onegeneral insurance company. Insurance companies can enter into referral arrangementsdisplaying the insurer’s publicity material in the branch premises.According to the IRDA, the participation of the bank’s customers in any insurancescheme shall be purely on a voluntary basis and this fact should appear prominently in allpublicity materials distributed by the bank and the insurer. According to latest IRDAcircular, the total payout under the referral fee has been capped as a percentage of theBabasabpatilfreepptmba.com Page 24
  25. 25. “Customers Attitude towards HDFC Standard Life Insurance”Circular, the total payout under the referral fee has been capped as a percentage of thetotal premium, which varies from 5.5% to 55% depending on the extent of the business.The company generates through the referral arrangement. IRDA has barred insurers frompaying any referral fee for any promotional campaign. Besides, insurers cannot pay anycommission or other remuneration along with the referral fees.March 2004 Review:IRDA has announced new guidelines pertaining to payment of brokerage to insurancebrokers carrying on direct insurance business in the country. As per the new guidelineson general insurance contracts, insurance brokers cannot charge brokerage or commissionon the business of Government and public sector undertakings (PSUs. Business fromthese classes of customers will be placed directly with the insurance companies, whereinthey will continue to enjoy a five per cent discount on the basic tariff applicable.The notification will come into effect from April 1, 2003, and applies to all generalinsurance contracts. These guidelines will not apply to reinsurance broking contracts.Brokerage/commission includes any royalty, license fees, administration charges or anycompensation, which any agreement between the parties provide for intermediation.IRDA has so far issued broking licenses to 32 entities in the country.IRDA has laid out stringent norms including cap on exposure in MF investment as wellas investment in stocks and shares for both public and private insurance companiesdetailing the guidelines for investments in mutual funds (MFs).According to this circular, the investment in MFs at any point of time shall not exceed 50per cent of investment falling under the ‘other than approved investments’ (OTAI)category for both life and general insurance companies. IRDA has also stipulated that theMFs in which the insurers invest should be registered with the SEBI. Besides, the insurershould always ensure that the investments in MF are diversified among the products ofdifferent companies.Life insurers:Babasabpatilfreepptmba.com Page 25
  26. 26. “Customers Attitude towards HDFC Standard Life Insurance”S.No. Registration Date of Name of the Company Number Reg.1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.2 104 15.11.2000 Max New York Life Insurance Co. Ltd.3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.7 111 30.03.2001 SBI Life Insurance Company Limited .8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited10 117 06.08.2001 MetLife India Insurance Company Ltd.11 133 04.09.2007 Future General India Life Insurance Company Limited12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.Major Market Players:1. Life Insurance Corporation of India (LIC)Babasabpatilfreepptmba.com Page 26
  27. 27. “Customers Attitude towards HDFC Standard Life Insurance”The Life Insurance Corporation (LIC) was established about 44 years ago with a view toprovide an insurance cover against various risks in life. A monolith then, the corporation,enjoyed a monopoly status and became synonymous with life insurance. Its main asset isits staff strength of 1.24 lakh employees and 2,048 branches and over six lakh agencyforce. LIC has hundred divisional offices and has established extensive training facilitiesat all levels. At the apex, are the Management Development Institute, seven ZonalTraining Centers and 35 Sales Training Centers. At the industry level, along with theGovernment and the GIC, it has helped establish the National Insurance Academy. Itpresently transacts individual life insurance businesses, group insurance businesses,social security schemes and pensions, grants housing loans through its subsidiary; andmarkets savings and investment products through its mutual fund. It pays off about Rs6,000crore annually to 5.6 million policyholders.2. ICICI Prudential Life InsuranceICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, apremier financial powerhouse, and Prudential plc, a leading international financialservices group headquartered in the United Kingdom. Prudential plc established inLondon in 1848, Prudential plc, through its businesses in the UK and Europe, the US andAsia, provides retail financial services products and services to more than 16 millioncustomers, policyholder and unit holders worldwideICICI Prudential enjoys the second highest market share after Life insurance corporation.ICICI Prudential equity base stands at Rs. 925 crore with ICICI Bank and Prudential plcholding 74% and 26% stake respectively. In the period April-December 2004, thecompany garnered Rs 860 crore of new business premium for a total sum assured of overRs 7,360 crore and wrote nearly 345,000 3 Birla Sun Life Insurance Company LimitedBabasabpatilfreepptmba.com Page 27
  28. 28. “Customers Attitude towards HDFC Standard Life Insurance”Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun LifeFinancial of Canada to enter the Indian insurance sector. The Aditya Birla Group, amultinational conglomerate has over 75 business units in India and overseas withoperations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and Egypt toname a few.Foreign Partner:Sun Life Assurance, Sun Life Financials primary insurance business, has excellentratings with the worlds top rating agencies. With assets under management as onSeptember 30, 2000 totaling more than CDN billion, it ranks amongst the largestinternational financial services organizations in the world. Today, the Sun Life FinancialGroup of companies and partners are represented globally in Canada, the United States,the Philippines, Japan, Indonesia, India and Bermuda.4 OM Kotak Mahindra Life InsuranceEstablished in 1985 as Kotak Capital Management Finance promoted by Uday Kotak thecompany has come a long way since its entry into corporate finance. It has dabbled inleasing, auto finance, hire purchase, investment banking, consumer finance, broking etc.The company got its name Kotak Mahindra as industrialists Harish Mahindra and AnandMahindra picked a stake in the company. Kotak Mahindra is today one of Indias leadingFinancial Institutions.Old MutualOld Mutual plc is an international financial services group based in London withexpanding operations in life assurance, asset management, banking and generalinsurance. Old Mutual is listed on the London Stock Exchange (where it is included theFTSE 100 Index) and also on the South African, Namibian, Malawi and Zimbabwe stockexchanges. It has 156 years of experience in the life insurance business.OM Kotak MahindraBabasabpatilfreepptmba.com Page 28
  29. 29. “Customers Attitude towards HDFC Standard Life Insurance”OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd., and OldMutual plc to enter the Indian insurance arena to offer a wide range of innovative lifeinsurance products.5 Max New York Life:Max India:Max India Limited is a multi-business corporation that has business interests in telecomservices, bulk pharmaceuticals, electronic components and specialty products. It is alsothe service-oriented businesses of healthcare, life insurance and information technology.New York Life:New York Life has grown to be a Fortune 100 company and an expert in life insurance. Itwas the first insurance company to offer cash dividends to policy owners. In 1894, NewYork Life pioneered the then unheard-of concept of insuring women at the same rate asmen. Thereafter, it continued to introduce a series of firsts - a disability benefit clause in1920, unemployment insurance in 1992, and complete customer care on the Web in 1998.Today New York Life has over US billion in assets under management and over 30,000agents and employees worldwide. The October 2000 Fortune Survey named New YorkLife amongst the top three most admired life and health insurance companies worldwide.With over 3 million policyholders, New York Life is a leading provider of insurance in ahost of countries worldwide.6 Aviva Life Insurance India:Aviva Life Insurance India is joint venture between Dabur, one of Indias oldest andlargest groups of companies and Aviva. Aviva plc. is UK’s largest insurer. In accordancewith government regulations, Aviva holds a 26 percent stake in the new venture andDabur holds a 74 percent share.Aviva:Babasabpatilfreepptmba.com Page 29
  30. 30. “Customers Attitude towards HDFC Standard Life Insurance”Aviva is the worlds seventh-largest insurance group (Based on gross worldwidepremiums) and the biggest in the UK. It is one of the leading providers of life andpensions products to Europe and has substantial businesses elsewhere around the world.Its main activities are long-term savings, fund management and general insurance.7 ING Vysya Life Insurance:ING Group:ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance, INGVysya Bank and GMR Group. Over the last 150 years, ING Group has grown to becomeone of the largest life insurance organizations in the world. Today it touches the lives ofover 50 million people across 65 countries. It offers a range of financial servicesincluding insurance, pensions, banking and asset management. In the year 2000, totalassets of the group stood at over INR 28, 42,000 crores. ING Group has wide and deepexperience in setting up companies in new markets, which require substantial investmentsunderlining INGs long-term commitment. In the last 20 years, ING Group hasestablished successful life insurance companies in 15 countries contributing to thedevelopment of insurance services in these countries.ING Vysya Bank Limited:It is one of Indias premier private sector banks with a heritage of over 70 years. With 1.5million customers, 480 outlets and 6000 employees it is known for its innovative bankingservices and for pioneering several products and services. ING Vysya Bank has a long-standing relationship with its customers and deep understanding of the Indian market.GMR Group:Babasabpatilfreepptmba.com Page 30
  31. 31. “Customers Attitude towards HDFC Standard Life Insurance”It has a solid track record of over two decades of growth and has wide-ranging interestsin fields such as power generation, infrastructure, manufacturing, software and banking.GMR group has an excellent reputation of being able to successfully develop venturesfrom scratch. 8 MetLife India Insurance Pvt. Company:MetLife India was incorporated as a joint venture between MetLife InternationalHoldings, Inc., Jammu & Kashmir Bank, M Pallonji & Co. and other private investors.MetLife India is headquartered in Bangalore with offices and presence in major Indiancities, and additional 1000 outreach points through its channel partners.MetLife:Ranked 38 on the Fortune 500 list (April 2003), MetLife, Inc. (MetLife) is one of theworld’s largest, strongest and most respected financial organizations. MetLife, through itsaffiliates, is the number 1 life insurer in the U.S. with approximately $2.4 trillion of lifeinsurance in force (as of December 2002) and has been delivering reliable, high qualityservice to customers since 1868. The MetLife companies serve approximately 12millionindividuals in the U.S. as well as the employees of 88 of the Fortune 100 companies.Headquartered in New York, MetLife operates through its affiliates and subsidiaries in 12countries across the Americas, Europe and Asia.9 Allianz Bajaj Life Insurance Co.Allianz Bajaj Life Insurance Co. Ltd. is a joint venture between two leadingconglomerates- Allianz AG, one of the worlds largest insurance companies, and BajajAuto, one of the biggest 2 and 3 wheeler manufacturers in the world.Foreign Partner:Babasabpatilfreepptmba.com Page 31
  32. 32. “Customers Attitude towards HDFC Standard Life Insurance”Allianz Group is one of the worlds leading insurers and financial service providers.Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost174,000 employees. At the top of the international group is the holding company, AllianzAG, with its head office in Munich. Allianz Group provides its more than 60 millioncustomers worldwide with a comprehensive range of services in the areas of• Property and Casualty Insurance,• Life and Health Insurance,• Asset Management and Banking.10 SBI Life Insurance Company Ltd:SBI Life Insurance Company Ltd. is a joint venture between Indias largest bank, Statebank of India (SBI) & Cardiff S.A., a leading Life Insurance company in France. StateBank of India (SBI) is a household name, and it stands as the last word for financialstrength and security in the country. SBIs illustrious background dates back to the year1806 when it started business, as a presidency bank, known as Bank of Bengal.Over the long journey, it has learnt to combine the best of banking practices handed downfrom the imperial management with the more dynamic ways of doing banking in themodern India. It has grown as a responsible giant in the banking field over the years.Babasabpatilfreepptmba.com Page 32
  33. 33. “Customers Attitude towards HDFC Standard Life Insurance” COMPANY PROFILEHousing Development Financial Corporation LtdBabasabpatilfreepptmba.com Page 33
  34. 34. “Customers Attitude towards HDFC Standard Life Insurance”Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged asthe largest residential mortgage finance institution in the country. The corporation hashad a series of share issues raising its capital to Rs. 119 crores. The net worth of theCorporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates through 75locations throughout the country with its Corporate Headquarters in Mumbai, India.HDFC also has an international office in Dubai, U.A.E., with service associates inKuwait, Oman and Qatar.HDFC Standard Life Insurance Company Ltd:HDFC Standard Life Insurance Company Ltd. is one of India’s leading private lifeinsurance companies, which offers a range of individual and group insurance solutions. Itis a joint venture between Housing Development Finance Corporation Limited (HDFCLtd.), India’s leading housing finance institution and The Standard Life AssuranceCompany, a leading provider of financial services from the United Kingdom.Incorporated on 14th August 2000, it was the first life company to be granted a certificateof registration by the IRDA on the 23rd of October 2000. HDFC Standard Life is one ofthe first companies to be granted license by the IRDA to operate in life insurance sector.It is a joint venture of HDFC Ltd and Standard Life Europes largest mutual life assurancecompany. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake andStandard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of theventure. HDFC Standard Life Insurance is a new Indian life insurance company thatoperates out of 52 locations. It offers clients a range of insurance plans to meet theirsavings, investment and protection needs. In the financial year 2002-03, the companyregistered a year-on-year growth of over 260%. It is also the first new life insurancecompany to declare its third successive bonus for participating policy holders. In order to survive in the insurance segment, HDFC had to introduce newproducts. They were looking for a robust and integrated solution to support the newBabasabpatilfreepptmba.com Page 34
  35. 35. “Customers Attitude towards HDFC Standard Life Insurance”product. HDFC was also facing numerous problems with their current systems in terms ofperformance, reliability and scalability. HDFC Standard Life Insurance sells a range of individual savings, pension andgroup life assurance products and has branch offices in 39 locations throughout India. Itwas recently rated as the "Best New Insurer - 2003" by Outlook Money magazine. Boththe promoters are well known for their ethical dealings and financial strength and are thuscommitted to being a long-term player in the life insurance industry.HDFC Standard Life Insurance is one of the leading private life insurance companies.The company generated premium from new business of Rs. 486 Cr in 2004-05,registering a year-on-year growth of over 132%. The total premium income (includingrenewal premium) grew by 130% to touch a figure of Rs. 687 Crores. The company alsoachieved a major milestone during the financial year by crossing a Sum Assured figure ofRs. 30,000 Cr. The company also declared its fifth bonus for participating policyholders.HDFC operates through 75 locations throughout the country with its CorporateHeadquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E.,with service associates in Kuwait, Oman and Qatar.Standard Life Group, UKBabasabpatilfreepptmba.com Page 35
  36. 36. “Customers Attitude towards HDFC Standard Life Insurance”Standard Life is Europes largest mutual life assurance company. Standard Life, whichhas been in the life insurance business for the past 175 years, is a modern companysurviving quite a few changes since selling its first policy in 1825. The companyexpanded in the 19th century from its original Edinburgh premises, opening offices inother towns and acquiring other similar businesses.Standard Life currently has assets exceeding over £70 billion under its management andhas the distinction of being accorded "AAA" rating consequently for the past six years byStandard & Poor.The Joint VentureHDFC Standard Life Insurance Company Limited was one of the first companies to begranted license by the IRDA to operate in life insurance sector. Each of the JV player ishighly rated and been conferred with many awards. HDFC is rated AAA by bothCRISIL and ICRA. Similarly, Standard Life is rated AAA both by Moodys andStandard and Poor’s. These reflect the efficiency with which HDFC and Standard Lifemanage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.VISION & MISSIONBabasabpatilfreepptmba.com Page 36
  37. 37. “Customers Attitude towards HDFC Standard Life Insurance”We aim to be the top new life insurance company in the market. This doe’s not just meanbeing the largest or the most productive company in the market, rather it is a combinationof several things like-•Customer service of the highest order•Value of money for customers•Professionalism in carrying out business•Innovative products to cater to different needs of different customers•Use of technology to improve service standards•Increasing market share.Key Values:  SECURITY: Providing long term financial security to our policy holders will be our constant Endeavour. We will be doing this by offering life insurance and pension products.  TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust.  INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. Our mission is to be the best new life insurance company in India and these are the values that will guide us in this.Board MembersBabasabpatilfreepptmba.com Page 37
  38. 38. “Customers Attitude towards HDFC Standard Life Insurance”Mr. Deepak S Parekh Chairman of HDFC Limited.Mr. Keki M Mistry Managing Director of HDFC Limited.Mr. Alexander M Crombie Group Chief Executive of the Standard LifeMs. Marcia D Campbell Group Operations DirectorMr. Keith N Skeoch Chief Executive in Standard LifeMr. Ranjan Pant Global Management ConsultantMs. Renu S. Karnad Executive director of HDFC LimitedKey strengths:  Financial ExpertiseBabasabpatilfreepptmba.com Page 38
  39. 39. “Customers Attitude towards HDFC Standard Life Insurance” As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.  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.  Track Record so far Our cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 Crores for the current financial year, Apr-Nov 2005. We have covered over 11, 00,000 individuals out of which over 3, 40,000 lives have been covered through our group business tie-ups. Highlights of Financial Year 2007-08  New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% @Rs. 4,859 crores as against Rs. 2,856 crores in FY2006-07Babasabpatilfreepptmba.com Page 39
  40. 40. “Customers Attitude towards HDFC Standard Life Insurance”  Alternate Channels including banc assurance has recorded an impressive growth of over 63% to contribute 41% to the Effective Premium Income (EPI)  Group business funds under management have increased to Rs. 959 crores, registering a growth of 83% over FY2006-07  The average premium has increased to Rs. 33,000  Company products and services are now available in 726 cities and towns across the country  Strength of Financial Consultants has increased to 1,45,000 HDFC Standard Life tracks its New Business Premium on the basis of EffectivePremium Income (EPI). EPI is calculated by giving only a 10% value to a SinglePremium policy and is an internationallyBabasabpatilfreepptmba.com Page 40
  41. 41. “Customers Attitude towards HDFC Standard Life Insurance”PRODUCTS:HDFC Standard Life offers a bouquet of insurance solutions to meet every need. Wecater to both, individuals as well as to companies looking to provide benefits to theiremployees. This section gives you details of all our products. We have incorporatedvarious downloadable forms and product details so that you can make an informed choiceabout buying a policy.Protection Plans o Term Assurance Plan o Loan Cover Term o Assurance PlanInvestment Plans: o Single Premium Whole Life PlanPension Plans: • Personal Pension Plan • Unit Linked Pension Plan • Unit Linked Pension PlusSavings Plans: o Endowment Assurance Plan o Unit Linked Endowment o Unit Linked Endowment Plus o Money Back Plan o Childrens Plan o Unit Linked Young star o Unit Linked Young star PlusGROUP PRODUCTS o Group Term Insurance o Group Variable Term InsuranceBabasabpatilfreepptmba.com Page 41
  42. 42. “Customers Attitude towards HDFC Standard Life Insurance” o Group Unit Linked PlanOTHER PRODUCTS • Social Development Insurance PlanINDIVIDUAL PRODUCTS: For individuals, they have a range of protection, investment, pension and savings plansthat assist and nurture dreams apart from providing protection. You can choose from arange of products to suit your life-stage and needs. HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping thisin mind, we have a varied range of Products that you can choose from to suit all yourneeds. These will help secure your future as well as the future of your family.Protection PlansOne can protect their family against the loss of your income or the burden of a loan in theevent of your unfortunate demise, disability or sickness. These plans offer valuable peaceof mind at a small price. Protection range includes our Term Assurance Plan & LoanCover Term Assurance Plan.Investment PlansSingle Premium Whole of Life plan is well suited to meet your long term investmentneeds. We provide you with attractive long term returns through regular bonuses.Babasabpatilfreepptmba.com Page 42
  43. 43. “Customers Attitude towards HDFC Standard Life Insurance”Pension PlansPension Plans helps one secure their financial independence even after retirement.Pension range includes Personal Pension Plan and Unit Linked Pension Plan.kkkSavings PlansSavings Plans offers flexible options to build savings for ones future needs such asbuying a dream home or fulfilling your children’s immediate and future needs. Savingsrange includes Endowment Assurance Plan, Unit Linked Endowment Assurance Plan,Money Back Plan, Children’s Plan, Unit Linked Young star Plan.GROUP PRODUCTS:For organizations they have a host of customized solutions that range from Group TermInsurance, Gratuity, Leave Encashment and Superannuation Products. These affordableplans apart from providing long term value to the employees help in enhancing goodwillof the company.Some of the group products to our esteemed corporate clients:Group Term Insurance : Whatever the business – It’s the people who make it a success. Everybody requires Some type of life insurance, especially when others depend on them financially.Babasabpatilfreepptmba.com Page 43
  44. 44. “Customers Attitude towards HDFC Standard Life Insurance” The Group Term Insurance (GTI) plan meets this need and serves as an ideal way forcompanies to reinforce their bond with their employees. The sort of needs, you, as anemployer need to cater to could be in form of:  Employee benefits.  Cover for housing or vehicle loans given by you to your employees.  A GTI cover for future service gratuity liability to be taken along with the HDFC Group Unit Linked Plan. The HDFC Group Term Insurance is a cost-effective plan that addresses these needs. In addition you have the choice to opt for a GTI with an experience discount feature ("Profit Share"), where a discount is given on future premiums in case of favorable claim experience (subject to group size).Group Variable Term Insurance The Group Variable Term Insurance is a tailor made insurance policy for third partyinstitutions. HDFC Standard Life Insurance Company will offer life insurance tocustomer’s of one or more of the third party’s specific products in order that in the eventof their death, there will be a lump sum available.The Group Variable Term Insurance:On death, will pay a lump sum known as a sum assured. The sum assured varies overtime in order that the customer receives the cover that they need.Is a group policy. • Has no lengthy underwriting procedure. • Is simple to administerGROUP UNIT LINKED PLANMany organizations realize that the statutory requirement benefits are not sufficient fortheir trusted employees to continue enjoying their quality of life after they retire. TheHDFC Group Unit Linked Plan is a great way for an employer to show his employeesthat he not only takes care of them while in service, but has also ensured that they canlead a comfortable life after retirement.Babasabpatilfreepptmba.com Page 44
  45. 45. “Customers Attitude towards HDFC Standard Life Insurance”The HDFC Group Unit Linked plan is also a great employee retention and motivationtool that helps employers to fund their employees’ post-retirement needs in a systematic,tax-efficient and cost-effective manner. Moreover, as a unit-linked plan, it gives youtremendous flexibility and freedom to customize individual retirement funds for youremployees based on their appetite for risk and the stage of life they are in.This plan helps an organization by:  Providing an investment vehicle to trustees for making the contribution for each member.  Helping build a substantial retirement fund for each member.  Presenting a potential to provide higher benefits to employees.  Offering tax benefits for investments made through the formation of a trustINDIVIDUAL PRODUCTS:Term Assurance PlanIf you have a family that you care for, you should consider what would happen in case ofyour unfortunate death. The emotional void cannot be filled, but financial insecurity canbe avoided. By taking this affordable life insurance plan, you can provide for the well-being of your family in case of your unfortunate death. This plan comes to you at aMinimal cost and is well-suited for the value-conscious customer. Under this plan, a sumassured is payable in case of death of the life assured during the term of the contract. Onecan choose the lump sum that would replace the income lost to ones family in theunfortunate event of ones death. Since this non-participating (without profits) plan is apure risk cover plan, no benefits are payable on survival to the end of the term of thepolicy.Term Assurance Plan:Babasabpatilfreepptmba.com Page 45
  46. 46. “Customers Attitude towards HDFC Standard Life Insurance”A protection plan to secure higher protection needed for your family at economical ratesOptional riders for enhanced protection Unique joint life option to cover your spouseunder the same plan Single / regular premium payment optionsPERSONAL PENSION PLANToday, one is busy climbing the ladder of success and realizing their dreams. Today, timeis with you. Just take a moment and think. Will you be able to continue at the same pace?Will your income be the same forever? Will you be able to live life on your own termseven after you retire?HDFC PERSONAL PENSION PLAN:HDFC understands ones need to build a secure future for them. Hence, the HDFCPersonal Pension Plan is an insurance policy that is designed to provide a post –retirement income for life with the freedom to choose your retirement date.You can choose your premium, the Sum Assured and your retirement date. At the end ofthe policy term, you will receive the Sum Assured plus any attaching bonus, which willprovide your post - retirement income.The HDFC Personal Pension Plan is an insurance policy, which can benefit one in thefollowing ways: • Provides a post retirement income in your golden years • Gives you the flexibility to plan your retirement dateBabasabpatilfreepptmba.com Page 46
  47. 47. “Customers Attitude towards HDFC Standard Life Insurance” • Gives you tax benefits on your premiumsThe plan receives simple Reversionary Bonuses, which are usually added annually. Atthe end of the term an additional Terminal Bonus may be paid depending on theperformance of the underlying investment.Easy steps to get insured are:  Choose your retirement age  Estimate the post – retirement income you require.  Work out the premium payable with your Financial Consultant.UNIT LINKED PENSION PLAN:Lead a life of respect and dignity. Even after retirement Today, one is busy climbing theladder of success and realizing their dreams. Today, time is with you. Just take a momentand think. Will you be able to continue at the same pace? Will your income be the sameforever? Will you be able to live life on your own terms even after you retire?HDFC UNIT LINKED PENSION PLANHDFC understands ones need to build a secure future for them. The HDFC UnitLinkedPension Plan is an insurance policy that is designed to provide a retirement income forlife with the freedom to maximize your investment returns by providing a choice ofthoroughly researched and selected investments. Stride into your golden years ofretirement with dignity and pride. You can choose your premium and the investment fundor funds. We will then invest your premium, net of charges in your chosen funds in theBabasabpatilfreepptmba.com Page 47
  48. 48. “Customers Attitude towards HDFC Standard Life Insurance”proportion you specify. At the end of the policy term, you will receive the accumulatedvalue of your funds, which will be used to provide your pension income. In the event ofyour unfortunate demise during the policy term, your spouse will receive a cash lumpsum to help him or her manage their retirement years.The HDFC Unit Linked Pension Plan is an insurance policy, which benefitsyou in the following ways:  Provides a post retirement income for life  Gives you the flexibility to plan your retirement date  Gives you the freedom to invest premiums as per your preference  Offers you potentially higher market linked returns  Give you tax benefits on your premiums and on receiving the lump sumEasy steps to get insured are: • Choose your retirement age • Choose the premium you wish to invest, based on your retirement needs. • Choose the investment fund or funds you desire.Endowment Assurance Plan:You have given your family the very best. And there is no reason why they should not getthe very best in the future too. As a judicious family man, your priority is to secure thewell-being of those who depend on you. Not just for today, but also in the longterm.Moreimportantly, you have to guard your loved ones against any eventuality. How will theysustain their way of life, so lovingly built by you, in your absence? With our HDFCEndowment Assurance Plan, you can ensure that your family remains financiallyBabasabpatilfreepptmba.com Page 48
  49. 49. “Customers Attitude towards HDFC Standard Life Insurance”independent, even if you are not around. You can ensure that they live a life of respectand dignity. AlwaysThe HDFCSL Endowment Assurance Plan gives:An ideal way to secure your long-term financial goalsValuable protection to your family by way of lump sum payment in case of yourunfortunate death within policy termProvides lump sum payment (basic Sum Assured plus any bonus additions) on survivalup to maturity dateVery flexible benefit options and payment options.In case of your unfortunate demise during the policy term, this participating (‘WithProfits’) insurance plan will pay your family the Sum Assured (together with the attachedbonuses) you had chosen.The plan receives simple Reversionary Bonuses, which are usually added annually. Atthe end of the term an additional Terminal Bonus may be paid depending on theperformance of the underlying investmentEasy steps to get insured are:Choose the amount of targeted savings and policy term using our Financial PlanningTool.Choose from any one of the 4 additional benefit options as per your requirement. Workout the premium payable and Sum Assured with our Financial Consultant.CHILDRENS PLAN:Babasabpatilfreepptmba.com Page 49
  50. 50. “Customers Attitude towards HDFC Standard Life Insurance”As a parent, your priority is your child’s future and being able to meet your child’sdreams and aspirations. Today, providing a good education, establishing a professionalcareer or even a modest wedding is expensive. Costs are increasing fast. Just imaginehow much you’ll need when your child takes these important steps in life!Plan today to ensure a bright future for your child. Start building savings today with ourHDFC Children’s Plan. So that your child is able to lead a life of respect and dignity witha secured financial future.HDFC Childrens PlanThe HDFC Childrens Plan gives:Invaluable financial support to your childHelps you customize an ideal plan for your childProvides you multiple options for multiple benefitsThe HDFC Children’s Plan is designed to secure your child’s future by giving your child(the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunatedemise, early in the policy term. The premiums, paid by you, are invested by thecompany to give you good long-term returns.The plan receives simple Reversionary Bonuses, which are usually added annually. Atthe end of the term an additional Terminal Bonus may be paid depending on theperformance of the underlying investment (See ‘Bonuses’ for more details).Easy steps to follow:Babasabpatilfreepptmba.com Page 50
  51. 51. “Customers Attitude towards HDFC Standard Life Insurance”Choose the amount of targeted savings and policy term using our Financial PlanningTool.Choose any one of the 3 plan options as per your childs requirement.Work out the premium payable and Sum Assured with our Financial ConsultantUNIT LINKED YOUNG STAR PLAN:As a parent, your priority is your children’s future and being able to meet their dreamsand aspirations. Today, providing a good education, establishing a professional career oreven a modest wedding is expensive. Costs are increasing fast. Just imagine how muchyou will need when your children take these important steps in life. Plan today to ensurea bright future for your children. Start building savings today with the HDFC Unit LinkedYoung Star Plan. So that your child is able to lead a life of respect and dignity with asecured financial future.The HDFC Unit Linked Young Star Plan gives you:An outstanding investment opportunity by providing a choice of thoroughly researchedand selected investmentsValuable protection in case of the insured parent’s unfortunate demiseVery flexible benefit combinations and payment optionsFlexible additional benefit options such as critical illness coverYou can choose your premium and the investment fund or funds. We will then investyour premium, net of charges in your chosen funds in the proportion you specify. At theend of the policy term, you will receive the accumulated value of your funds In case ofyour unfortunate demise during the policy term, HDFC Standard Life will continue thepolicy and continue to pay the original premiums you had chosen.Babasabpatilfreepptmba.com Page 51
  52. 52. “Customers Attitude towards HDFC Standard Life Insurance”Your family will receive the Sum Assured you had chosen* plus the fund built up byyour and HDFC Standard Life’s contributions. Use HDFC Standard Life’s excellentinvestment options to maximize your savings and Maximize your child’s achievements.We will provide security for your child and make those savings on your behalf, in yourabsenceEasy steps to follow:Choose the premium you wish to invest.Choose the amount of Protection (Sum Assured) you desire.Choose the additional benefit options you desire.Choose the investment fund or funds you desire.Money Back Plan:You have always believed in living life on your own terms. So why let the changingrealities of everyday life overwhelm you and make your aspirations take a back seat? Youcan plan now to ensure that you have the necessary funds to meet your future financialneeds.The table below will help you identify and classify some of your financial goals. You canprioritize these goals and set your objectives accordingly (see indicative table givenbelow). SHORT TERM GOALS LONG-TERM GOALS Provide adequate cover for Life, Critical Buying a car Illness or disability. Saving for big-ticket assets like your Saving for your marriage house. Saving for your children’s education Vacation abroad Having a regular system for savingsBabasabpatilfreepptmba.com Page 52
  53. 53. “Customers Attitude towards HDFC Standard Life Insurance”The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you:A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervalswithin the policy term (see the table given below) – an ideal way to secure your long-term as well as short-term financial goals A lump sum payment on survival up tomaturity date Valuable protection to your family by way of lump sum payment in case ofyour unfortunate death within the policy term. This is over and above any earlier payoutsMaking the right kind of investment will enable you to achieve your objectives – be ityour immediate expenses or else securing your future financial needs. Our Money BackPlan gives you a wide range of terms and cash benefit schedule to choose from. Asummary of Key Benefits including the cash lump sum payments, expressed as aPercentage of Sum Assured is shown below.Babasabpatilfreepptmba.com Page 53
  54. 54. “Customers Attitude towards HDFC Standard Life Insurance”Maturity Value On maturity you receive survival benefit due at that point of time along withattaching bonuses for the full Sum Assured calculated for the full term.You can ensure your financial independence. And be able to live life on your own terms.Steps to be followed:Choose the amount of targeted savings and policy term using our Financial Planning ToolChoose from any one of the 4 additional optional benefits as per your requirement.Work out the premium payable and Sum Assured with our Financial Consultant.Unit Linked PlanThe Group Term Insurance (GTI) is a cost-effective plan that addresses these needs.In addition you have the choice to opt for a GTI with an experience discount feature,Wherein a discount is given on future premiums in case of favorable claim experienceThe Group Term Insurance plan will have the following structureOne year renewable term insurance planOne master policy issued covering all members of the groupSum assured is payable on death (either due to natural causes or accidents)Key features of the planOur product has been designed to offer innovative features and a high degree ofCustomization. These are:Convenient medical proceduresThe members do not need to undergo any medical examination up to the “Free CoverLimit”. This limit is dependant upon the sum assured and the size of the group.Babasabpatilfreepptmba.com Page 54
  55. 55. “Customers Attitude towards HDFC Standard Life Insurance” Awards and AccoladesMarch, 2008Unit Linked Savings Plan Tops Mint Best TV Ads SurveyThe Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leadingprivate insurance companies in India, has topped Mint’s Top Television Advertisementsurvey conducted, for February 2008. HDFC Standard Life’s Unit Linked Savings Planadvertisement was ranked 4th in terms of a combined score of ad awareness and brandrecall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, andclaim). The respondents were between 18 and 40 years. Mint’s exclusive report, ‘NewVoices in a makeover’ outlines the survey in detail.February, 2008Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, receivedthe QIMPRO Gold Standard Award 2007 in the business category at the 18th annualQimpro Awards function. The award celebrates excellence in individual performance andhighlights the quality achievements of extraordinary individuals in an era of globalcompetition and expectations.January,Babasabpatilfreepptmba.com Page 55
  56. 56. “Customers Attitude towards HDFC Standard Life Insurance” 2008Sar Utha Ke Jiyo among India’s 60 Glorious Advertising MomentsHDFC Standard Life’s advertising slogan honored as one of ‘60 Glorious Advertising& Marketing Moments over the last 60 years in India,’ by 4Ps Business andMarketing magazine. The magazine said that HDFC Standard Life is one of the firstprivate insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) insteadof death to convey its brand proposition. This was then, followed by others includingICCI Prudential, thus giving HDFC Standard Life the credit of bringing up one suchglorious advertising and marketing moment in the last 60 years.December, 2007Pension Plan Tops Mint’s Survey of Best TV Ads HDFC Standard Life’s pension plans topped the ad diagnostics and ranked eighth on adreach in a survey of new television advertisements in November, 2007, conducted byMint, the leading business newspaper of the Hindustan Times Group. Our pensionadvertising was ranked first in terms of ad diagnostic scores (likeability, credibility,enjoyment). The respondents were between 18 and 40 years. We were ranked 8th interms of a combined score of ad awareness and brand recall. September, 2007Ranked Sixth Most Effective AdvertisementBabasabpatilfreepptmba.com Page 56
  57. 57. “Customers Attitude towards HDFC Standard Life Insurance” HDFC Standard Life was ranked 6th amongst ‘The 10 most effective ads’ inSeptember 2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor. Wehave moved up from 56th position in August 2007. JuxtConsult’s Ad Box Office isIndia’s biggest monthly monitor of most effective television ads amongst urbanconsumers. The ranking was based on the total effectiveness of the ad in connecting theSar Utha Ke Jiyo ranked 10th in the Top 10 Top-of-mind ad slogans in September,2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor. The ranking wasbased on how much our ad slogan recalled ‘top of mind’ in the daily ad clutter. June, 2007Received PCQuest Best IT Implementation Award 2007 HDFC Standard Life received the PCQuest Best IT Implementation Award 2007 forWonders, its path-breaking implementation of an enterprise-wide workflow system.PCQuest, the leading IT publication from the Cyber Media Group identified six mostinnovative IT implementation projects deployed successfully across India for the award.The winners of the 4th PCQuest Best IT Implementation Awards were chosen from 250nominations across 22 industries and 23 projects ranging from government, bankingfinance and insurance, manufacturing, petroleum, and IT/ITES to poultry, travel andtourism, real estate, construction, power and utilities..Babasabpatilfreepptmba.com Page 57
  58. 58. “Customers Attitude towards HDFC Standard Life Insurance” RESEARCH DESIGNBabasabpatilfreepptmba.com Page 58
  59. 59. “Customers Attitude towards HDFC Standard Life Insurance”Title of the Study: “Customers Attitude towards HDFC Standard Life Insurance”Statement of the Problem: The study has been undertaken to know the “Customersattitude towards HDFC Standard Life Insurance”Objectives of Study: To study the customer awareness for HDFC Standard Life. To understand the customers attitude towards HDFC Standard Life brand. To know the customers attitude towards the products. To know the customers attitude towards the service provided by the company. To examine the consumers buying behavior. To know the factors which influenced the customers to purchase policy.Benefits to the Organization: This project will help the organization to know the customer’s attitude towards the products of the company. This will help the organization to provide better services to its clients.Data Source:The sources of data collected are:Secondary Data: • Information is collected through internet • From various text books • Journals and magazinesPrimary Data: • Questionnaire • Personal interviewBabasabpatilfreepptmba.com Page 59
  60. 60. “Customers Attitude towards HDFC Standard Life Insurance” Sampling method: • Sample size: 100 samples • Sample unit: Existing customers of HDFC Standard Life Insurance • Sample area: Belgaum city • Sample Technique: Convenience samplingTools Used For Analysis: SPSS Software MS excelData Collection Approach: Primary data has been used to carry out the research successfully. The secondarydata has been collected from various journals and publications. For the purpose ofgathering primary data a structure and non-disguised questionnaire was designed tocollect data from the Customers. The questionnaire contains both open-ended and close-ended questions.Method of Communication: In order to minimize the bias in data collection, the method of personal interactionwas adopted.Limitations of the study:  This survey was restricted to Belgaum city only.  Time limit was major constraint.  The sample size restricted to 100 only.Babasabpatilfreepptmba.com Page 60
  61. 61. “Customers Attitude towards HDFC Standard Life Insurance” DATA ANALYSISBabasabpatilfreepptmba.com Page 61
  62. 62. “Customers Attitude towards HDFC Standard Life Insurance” CUSTOMERS PROFILE: Age Cumulative Frequency Percent Valid Percent Percent Valid 20 - 30 41 41.0 41.0 41.0 30 -40 34 34.0 34.0 75.0 40 - 50 17 17.0 17.0 92.0 50-60 8 8.0 8.0 100.0 Total 100 100.0 100.0 Age 50-60 8.0% 40 - 50 17.0% 20 - 30 41.0% 30 -40 34.0%Analysis:From the pie chart it depicts that majority of Customers age is in between 20 – 40 age.Babasabpatilfreepptmba.com Page 62
  63. 63. “Customers Attitude towards HDFC Standard Life Insurance” Sex Cumulative Frequency Percent Valid Percent Percent Valid Male 72 72.0 72.0 72.0 Female 28 28.0 28.0 100.0 Total 100 100.0 100.0 Sex Female 28.0% Male 72.0%AnalysisOut of 100 Respondents • 72% of respondents are male • 28% of respondents are femaleBabasabpatilfreepptmba.com Page 63
  64. 64. “Customers Attitude towards HDFC Standard Life Insurance” Marital Status Cumulative Frequency Percent Valid Percent Percent Valid Married 67 67.0 67.0 67.0 Unmarried 33 33.0 33.0 100.0 Total 100 100.0 100.0 Marital Status Unmarried 33.0% Married 67.0%Analysis:Out of 100 respondents majority of respondents are married.Babasabpatilfreepptmba.com Page 64
  65. 65. “Customers Attitude towards HDFC Standard Life Insurance” Education Cumulative Frequency Percent Valid Percent Percent Valid Graduate 41 41.0 41.0 41.0 Post Graduate 25 25.0 25.0 66.0 Under Graduate 29 29.0 29.0 95.0 Proffesional 5 5.0 5.0 100.0 Total 100 100.0 100.0 Education Proffesional 5.0% Under Graduate Graduate 29.0% 41.0% Post Graduate 25.0%Analysis:According to analysis majority of clients are Graduate.Babasabpatilfreepptmba.com Page 65
  66. 66. “Customers Attitude towards HDFC Standard Life Insurance” Occupation Cumulative Frequency Percent Valid Percent Percent Valid Government Employee 10 10.0 10.0 10.0 Business 26 26.0 26.0 36.0 Private employee 28 28.0 28.0 64.0 Proffesional 5 5.0 5.0 69.0 Other 31 31.0 31.0 100.0 Total 100 100.0 100.0 Occupation Government Employee 10.0% Other 31.0% Business 26.0% Proffesional 5.0% Private employee 28.0%Out of 100 Respondents • 10% of respondents are Government employees • 26% of respondents are Business • 28% of respondents are Private employee • 5% of respondents are Professionals • 31% of respondents are othersBabasabpatilfreepptmba.com Page 66
  67. 67. “Customers Attitude towards HDFC Standard Life Insurance” Annual Income Cumulative Frequency Percent Valid Percent Percent Valid Below 1 Lakh 28 28.0 28.0 28.0 1- 2lakhs 30 30.0 30.0 58.0 2 - 3 Lakhs 27 27.0 27.0 85.0 3 - 4Lakhs 13 13.0 13.0 98.0 Abow 4l akhs 2 2.0 2.0 100.0 Total 100 100.0 100.0 Annual Income Abow 4l akhs 2.0% 3 - 4Lakhs 13.0% Below 1 Lakh 28.0% 2 - 3 Lakhs 27.0% 1- 2lakhs 30.0%Out of 100 respondents the pie chart depicts that majority of respondents have annualincome of 1-2 lakhs per annum.Babasabpatilfreepptmba.com Page 67

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