SAAB MARFIN MBA“A study on customer awareness to determine thepotential market of HDFC Standard Life Insurance            ...
SAAB MARFIN MBA                                INDEXChapter-I  1) Introduction  2) Literature Review  3) Statement of the ...
SAAB MARFIN MBA  4) Research Design Data Collection Methods  5) Measuring tools.Chapter-III  1) Result & discussion with g...
SAAB MARFIN MBA                                                                      4“A study on customer awareness to de...
SAAB MARFIN MBAINDUSTRY OVERVIEWTHE HISTORY OF INSURANCE:      As with so many things in so many facts of our life, insura...
SAAB MARFIN MBAthe basses of some common objective like traders) pooled in money toprotect their members from loss by fire...
SAAB MARFIN MBAthe Hindu family annuity fund the first instant of a pension-basedinvestment scheme targeted at Indians.   ...
SAAB MARFIN MBAthe erstwhile private insurers, and started expanding at a frenetic pace.Today, this monolith has 2100 bran...
SAAB MARFIN MBAflow of long term funds (which insurance companies, by virtue of thebusiness they are in, have ready access...
SAAB MARFIN MBAinsurance.Why private insurance are queuing up?       In many ways the re-entry of private insurers has mar...
SAAB MARFIN MBA                INTRODUCTION OF LIFE INSURANCE :History of life insurance in India:           The life insu...
SAAB MARFIN MBAcompanies was taken over the Government of India LIC was formed inSeptember 1956 through the LIC Act 1956 w...
SAAB MARFIN MBA            Life insurance is a form of insurance that pays monetaryproceeds upon the death of the insured ...
SAAB MARFIN MBAexpensive then a similar policy for a 65-year –old male smoker .similarly a sky dive instructor would have ...
SAAB MARFIN MBA                   What is an insurance premium:                 An insurance premium is the actual amount ...
SAAB MARFIN MBA                  The same philosophy holds true for medical insurancepremium costs .Non-smokers statistica...
SAAB MARFIN MBABecause most states now have a mandatory minimal insurance coveragelaw for drivers there may be no other ch...
SAAB MARFIN MBA                                           Life InsuranceHDFC          Standard         UK          HDFC   ...
SAAB MARFIN MBA           The project report on “A study on customer awareness todetermine the potential market “HDFC Stan...
SAAB MARFIN MBASTATEMENT OF THE PROBLEM         “A study on customer awareness to determine the potentialmarket of HDFC St...
SAAB MARFIN MBA  The reason for confining the scope of the research in Dharwad were .  1) One of the fast growing city in ...
SAAB MARFIN MBA                                                                      22“A study on customer awareness to d...
SAAB MARFIN MBAOrganizational Profile:HDFC (Housing Development Finance Corporation Ltd.)                                 ...
SAAB MARFIN MBA      Founded in 1977, HDFC is today the market leader in housingfinance in India and extended financial as...
SAAB MARFIN MBA      Being an institution that is strongly committed     to the higheststandard of quality and excellence ...
SAAB MARFIN MBAStandard Life Assurance Company (SLAC)      Founded in 1825, Standard life has been at the fore front of th...
SAAB MARFIN MBAability to meet its claims obligations of overwhelming under a variety ofeconomic conditions.      Not surp...
SAAB MARFIN MBAAll other Cases                             A maximum of 40 % of the(Endowment, Money-back, etc.)          ...
SAAB MARFIN MBA     Help them plan their goals &     Recommend appropriate solution, so that the customer is able to     m...
SAAB MARFIN MBA         The customer service process will be highly leveraged on         technology, whether it is getting...
SAAB MARFIN MBAabout 10 crore policies in force, which contribute a premium of about6% of GDS (Grosss Domestic Savings ) o...
SAAB MARFIN MBAAbout us                                                                        32  “A study on customer aw...
SAAB MARFIN MBAHDFC Standard Life Insurance Company Ltd. is one of India’s leadingprivate life insurance companies, which ...
SAAB MARFIN MBATrackRecordsofarOur cumulative premium income, including the first year premiums andrenewal premiums is Rs....
SAAB MARFIN MBAPremium Payment            This section gives you all the details that you may require topay your premium a...
SAAB MARFIN MBA         we allow for some additional number of days from the due date, which         is specified in your ...
SAAB MARFIN MBA        We at HDFC Standard Life realize that not everyone has the same kindof needs. Keeping this in mind,...
SAAB MARFIN MBA  Our Single Premium Whole Of Life plan is well suited to meet your long  term investment needs. We provide...
SAAB MARFIN MBAWe understand that bereavement can be difficult to deal with, especially whenyou have to arrange for all th...
SAAB MARFIN MBACritical Illness FormClaimant Statement FormOriginal Policy DocumentA copy of medical records at the time o...
SAAB MARFIN MBAemployee benefit solutions to their employees. We offer differentproducts for different needs of employers ...
SAAB MARFIN MBABima Bachat Yojana.We have also designed a product called Super Bachat Yojana wherein the rural custcan sav...
SAAB MARFIN MBA    Benefits on Maturity    On survival of the life assured to maturity, a benefit of Rs 200 will be paid. ...
SAAB MARFIN MBADuring the first year a basic benefit of 80% of premiums paid and after the firstlesser     basic      sum ...
SAAB MARFIN MBA  Option               Premium           Fee  Annual               1800              150  Half Yearly      ...
SAAB MARFIN MBAto members of a Development Agency for a term of one year. On the deathof any member of the group insured d...
SAAB MARFIN MBAmember. . Benefits On the death of each member covered by the policy during the year of cover a lump sum eq...
SAAB MARFIN MBA  Submission of member data in a specified computer format  Collection of premiums from group members  Reco...
SAAB MARFIN MBA    insurance in respect of any kind of risk relating to lives or property in    India, any rebate of the w...
SAAB MARFIN MBA                                  Up to Rs. 33,660                  Across       all saved              onS...
SAAB MARFIN MBAKnowledge CentreOur Knowledge Centre is your personal resource for information thatcan help you understand ...
SAAB MARFIN MBA                                                                      52“A study on customer awareness to d...
SAAB MARFIN MBAHDFC Standard Life Insurance Company Ltd. is one of India’s leadingprivate life insurance companies, which ...
SAAB MARFIN MBADevelopment Finance Corporation Limited (HDFC Ltd.), India’s leadinghousing finance institution and The Sta...
SAAB MARFIN MBAWe have covered over 1.6 million individuals out of which over 5,00,000lives have been covered through our ...
SAAB MARFIN MBAJoin the Winning Team at HDFC SLIn our quest to be a competitive player in the insurance space,we are keen ...
SAAB MARFIN MBA  Underwriting  Training  Process Management  Agency  Legal & Compliance  MedicalGroup CompaniesSome of our...
SAAB MARFIN MBA HDFC Standard Life records impressive growth Premium Income grows by 112% HDFC Standard Life has recorded ...
SAAB MARFIN MBA Standard Life emphasized, “The GDP has been growing over 8% per annum and 47% of all savings are now in fi...
SAAB MARFIN MBA different   channels    of   distribution   also   changed       significantly, compared to last year. The...
SAAB MARFIN MBA suited for their need for protection, savings, investments and pensions. HDFC Standard Life is the only co...
SAAB MARFIN MBA   Effective   Premium 436.08        887.30      103.47   Income (Total)   Group       Business 49.40      ...
SAAB MARFIN MBANew Business Premium Income of Rs. 486 Crore in 2004-05 registering ayear-on-year growth of 132%. The growt...
SAAB MARFIN MBA impressive growth of over 400% to contribute 37% to the Effective Premium Income (EPI). Group business inc...
SAAB MARFIN MBALife offers, both, life insurance policies as well as pension products on aunit linked platform. Unit linke...
SAAB MARFIN MBAConsultants who have qualified to become members of the prestigiousMillion Dollar Round Table (MDRT). From ...
SAAB MARFIN MBAAccidentBenefit                  An add-on with a life policy. It compensates a policyholder in            ...
SAAB MARFIN MBA      Bond      It is like an IOU. By buying a bond you loan money to a company, a      municipality, state...
SAAB MARFIN MBA      Capital gains      Profit earned from the sale of stocks, mutual fund units and real      estate. Lon...
SAAB MARFIN MBA      Another word for insurance; it also refers to the amount of      insurance.      Critical illness rid...
SAAB MARFIN MBA      An annuity plan where the first annuity payment becomes payable      after a chosen period that excee...
SAAB MARFIN MBA      Emergency fund      The money, in the form of liquid investments in bank savings      accounts, two-i...
SAAB MARFIN MBA      Estate planning      A financial plan to ensure the transfer of all your assets-both      financial, ...
SAAB MARFIN MBA      Financial planning      It covers the essential elements of a person’s financial affairs and is      ...
SAAB MARFIN MBA      Group Insurance      An insurance policy taken out by employers to provide life cover to      their e...
SAAB MARFIN MBA      An annuity that starts payments immediately after, or soon after, the      first premium is paid     ...
SAAB MARFIN MBA      interest rate fluctuations impacting your debt investments or the      prices of equities going down....
SAAB MARFIN MBA      cash without any, or significant, loss in value.      Loyalty additions      Additional benefits (oth...
SAAB MARFIN MBA      Maturity date      The date on which a policy term or fixed-income investment like      fixed deposit...
SAAB MARFIN MBA      benefits in the event of his death.      Participative plans      See ‘with-profit’ policy      Pensi...
SAAB MARFIN MBA      a toe, or injuries that render the insured in capable of earning an      income from the date of the ...
SAAB MARFIN MBA      The period for which an insurance policy provides cover      Post office schemes      Also known as S...
SAAB MARFIN MBA      making small and regular savings.      Rest      The frequency at which interest is calculated on the...
SAAB MARFIN MBA      Sum assured      The amount of cover taken under a life insurance policy, it is the      minimum amou...
SAAB MARFIN MBA      immobile or affects his earning capacity temporarily. For instance, a      fracture in the arm or leg...
SAAB MARFIN MBA      Waiver of premium rider      A rider that waives the premia payable on the base policy and other     ...
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
Custmar awareness of HDFC Bank
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  1. 1. SAAB MARFIN MBA“A study on customer awareness to determine thepotential market of HDFC Standard Life Insurance Products and plans”. 1“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  2. 2. SAAB MARFIN MBA INDEXChapter-I 1) Introduction 2) Literature Review 3) Statement of the problem 4) Purpose of the study 5) Scope of the study 6) Objectives of studyChapter-II 1) Organization Profile 2) Organization Chart 3) Sampling 2 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  3. 3. SAAB MARFIN MBA 4) Research Design Data Collection Methods 5) Measuring tools.Chapter-III 1) Result & discussion with graphs & charts. 2) Summary, conclusion, & a proposed action plan with resource requirements and projected benefits to the organization.Chapter-IV 1) Appendix Questionnaire 2) Bibliography 3 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  4. 4. SAAB MARFIN MBA 4“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  5. 5. SAAB MARFIN MBAINDUSTRY OVERVIEWTHE HISTORY OF INSURANCE: As with so many things in so many facts of our life, insurance toowas born out of a primal need and shaped by socio economic realitiesof the time. The story goes back to around 2100 BC, the time ancientcivilization of Babylon and a business practice called ‘bottomry’. For allpractical purposes a form of marine insurance, bottomry enabled shipowners to borrow money against their ships to pay for the trip. Withpiracy rampant of high seas, traders and seafarers were reluctant to saleto other lands for fear of their lives and goods. Bottomry gives themsome semblance of security. The arrangement was only if their shipreturned did trader have to repay the loan, along with interest, whichwas pegged at an above market rate for risk covered. So, if their shipfailed to make it back they did not have to repay the loan ,there bycovering some or all the loss.ORIGIN: With the marine rout being the bedrock of trade and commerce inthose days, the practice of bottomry evolved and spread. With thegrowth towns and trade in Europe, medieval guilds (group organized on 5 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  6. 6. SAAB MARFIN MBAthe basses of some common objective like traders) pooled in money toprotect their members from loss by fire and ship wreck, to pay ransomif they were captured by pirates and to provide burial and support insickness and poverty. By the middle of 14th century, as evidences byearliest known insurance contract (Genoa, 1347) marine insurance wascommon among maritime nations of Europe. Lioyd’s of London the largest marine insurance today, was foundin 1688, in a coffee shop in London. Lioyd’s coffee house becamepreferred place for merchants, ship owners and underwriters to transactbusiness. Insurance develop rapidly with growth of British commerce in17th & 18th century, and started becoming organized, along the waygoing through a period of defaults and closures. The British bought insurance to India in 1818, replete withimperialist prejudices. The oriental life insurance company, the firstinsurance company in the country, insured only European widows.British insurers eventually begin insuring Indian lives, but for a premiumthat was 15% to 20% higher than that payable by British. It was only in1870 that the disparity was corrected. Six Indians peeved by thissecond-class treatment, set-up Bombay Mutual Life Assurance Society,and started insuring Indian lives at the same cost of British lives. Socialdiscrimination, in fact, turned out to be catalyst for Indians initiative ininsurance sector. In 1909, activist Ishwar Chandra Vidyasagar founded 6 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  7. 7. SAAB MARFIN MBAthe Hindu family annuity fund the first instant of a pension-basedinvestment scheme targeted at Indians. As had happened in England earlier, a flood of new players andpatchy regulation snowballed into a crisis. Several insurers defaulted ontheir contractual obligations to policyholders, citing investment losses,some even folded-up. The insurance act 1938 started control oninsurance but even they failed to safeguard policyholder’s interests.NATIONALSATION: Post-Independence, discontent against insurers reached apitch. Business was chaotic ,, foreign insurers were leaving the country,and Indian insurers, driven by greed and business consideration, weren’t earning much credibility. The cry for nationalizing insurance grewlouder a move that insurers were, of course, opposed to. On 19th January 1956, the life insurance business wasnationalized. In one swoop, the government snapped up 245 insurersand provident societies. Eight months later, the life insurancecorporation of India (LIC) was formed, which took over the business of 7 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  8. 8. SAAB MARFIN MBAthe erstwhile private insurers, and started expanding at a frenetic pace.Today, this monolith has 2100 branch, 8lakh agents and offers a bevyof insurance investment products. LIC marketed insurance less has arisk management tool and more has savings instruments with tax edge.A look at LIC policy profile shows that 18% of policies in force currentlyare protection plans. Insurance cum investment plans account for 60%,with balance being pure investment plans. Still house holds embracedthese safe investment avenues, with the sum assured (or the total valueof cove) increasing from Rs.1476cr in 1`957 to Rs. 459201cr to 1998to 1999. Similar circumstances lead to the nationalization of non-life(general insurance). As in life insurance per nationalization there werean inordinately largely number of insurers many of who where notoriousof clams. Non life insurance was nationalized in 1972. GeneralInsurance Corporation was setup as a holding company, total of 107private insurers where merged and group to form general insurancecorporation four subsidiaries.PRIVATISATION: There were various reasons given by the government to nationalizethe insurance sector was to take insurance to the mass, facilitate the 8 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  9. 9. SAAB MARFIN MBAflow of long term funds (which insurance companies, by virtue of thebusiness they are in, have ready access to) into development ofinfrastructure in the country, and safe guard the interest of the policyholders. Towards this end, state insurers did develop the insurancesector, though most experts believe that these monopolies could havedone much, much more. In the early nineties is, the government went on a reforms bingeand started loosing controls on Indian industry. In 1993 the governmentappointed the Malhotra committee headed former RBI governorR.N.Malhotra, to draw up a blue print for insurance sector reforms. Thepanel submitted its report a year later, recommending privatization,backed by stiff entry guidelines and stringent regulations, so as to avoidrepeat per nationalization free for all. The insurance regulatory and development authority (IRDA)was founded to regulate the sector and over see the process ofprivatization. In 2000, the IRDA started giving out licenses, and a yearlater, the first of the private players started operation. The wheel hadcome full circle. Under state control, the insurance sector, both life andnon-life ,grew steadily. Still, Indians are not adequately insured and lagbehind most countries. Total insurance penetration (insurance premiumas a percentage of gross domestic product) is dismal when compared toits economic standing. Just 2% of the population has some of life 9 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  10. 10. SAAB MARFIN MBAinsurance.Why private insurance are queuing up? In many ways the re-entry of private insurers has marked SecondComing for the sector. In just 3 years, the sector has under gone amake over, offering the fruits of free market, more choice better service,and quicker settlements, tighter regulations greater awareness. Stateinsurers have been compelled to get their act together. 10 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  11. 11. SAAB MARFIN MBA INTRODUCTION OF LIFE INSURANCE :History of life insurance in India: The life insurance industry in India dates back to 1818 .whenthe Oriental Life Insurance Company set up office in Kolkata in 1823,the Bombay Life Assurance Company started operations in Mumbai,India. The Indian Life Assurance Companies Act was passed in 1912; theIndian Insurance Companies Act 1928 followed this .These acts allowedthe Government to collect data regarding life and non life businessesconducted by both Indian and foreign insurance companies later the1928 act was amended and a new act the ‘Insurance Act’ was passed in1938. By the mid 1950s, 154 Indian insurers, 16 foreign insurersand 75 provident societies were operating in the country. The lifeinsurance business was concentrated in urban areas and was confinedto the higher strata of society. In 1956, the management of these 11 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  12. 12. SAAB MARFIN MBAcompanies was taken over the Government of India LIC was formed inSeptember 1956 through the LIC Act 1956 with a Capital of Rs 50million .One of the main objectives of forming LIC was to makeinsurance cover available to a larger number of people particularly tothe lower segments of society . In 1972, the Government took overmanagement control of 106 private general insurance companies andformed the General Insurance Corporation(GIC) over the years , LICexpanded its network all over the country and become one of thelargest corporations in India .LIC had seven zonal offices 100divisionaloffices ,2,048 branch offices and army of agents totaling 6,28,031. Growth in Indian insurance industry was minimal in the1960s and 1970s because of low sayings and the low level of literacy. Inaddition the insurance industry lacked sufficient funding andinfrastructure .However changes in the economy in the 1980s, such asgrowth in the rate of industrialization improvement in infrastructure thecapital markets increase in the savings rate and substantial capitalformation resulted in tremendous growth in the life insurance industryover the years LIC launched several group insurance and social securityschemes to enhance its reach in the rural areas.What is life insurance? 12 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  13. 13. SAAB MARFIN MBA Life insurance is a form of insurance that pays monetaryproceeds upon the death of the insured covered in the policy.Essentially , a life insurance policy is a contract between the namedinsured and the insurance company wherein the insurance companyagrees to pay an agreed upon sum of money to the insured’s namedbeneficiary so long as the insured’s premiums are current. People take out life insurance policies for a number ofreasons. Such insurance provides security to family members upon theloss of a loved one for instance if the primary wage earner dies in his orher prime the death benefit received from a life insurance policy willassist the surviving family members in overcoming the burden of thetragic loss . Life insurance can be purchased by individuals but is alsooffered as a perk by many employers .Often times large employers andgovernment employers offer group life insurance at no cost theemployee . Should the employee wish to obtain additional life insurancefrom the employers insurance company they can usually do so atreduced rates. The cost of life insurance varies depending on such factors asthe insured ‘s age health and occupation . For example the premium fora 25 year old male non-smoker in excellent health will be far less 13 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  14. 14. SAAB MARFIN MBAexpensive then a similar policy for a 65-year –old male smoker .similarly a sky dive instructor would have to pay much higher premiumsfor life insurance then would a librarian. Life insurance is available in a number of different forms tofit the tastes of the proposed insured some of the typical forms ofinsurance policies include whole life variable life and term life .Term lifeinsurance policies begin with low premiums during the initial stages ofthe policy and these premiums increase steadily as the insured growsolder .There is no cash built-up in a term policy and accordingly thedeath benefit will not increase. With whole life and variable life insurance a portion ofpremium pays for the insurance and the remainder serves as a tax-freeinvestment .A whole life policy sets a premium at the beginning of thepolicy and that premium does not change over the life of the policy .This form of insurance allows for a cash of the policy or it will simplyserve to increase the death benefits in the end. In a variable life product, the premium remains the sameover the life of the policy , and there should be a cash build-up as longas the various mutual funds selected by the insured perform well. 14 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  15. 15. SAAB MARFIN MBA What is an insurance premium: An insurance premium is the actual amount of moneycharged by insurance companies for active coverage .An insurancepremium for the same service can very widely among insuranceproviders which is why experts strongly recommend getting severalquotes before committing to an insurance policy .Insurance agents orbrokers will take your basic information and calculate an insurancepremium estimate based on your answers and other factors. The lowestquoted price on an insurance premium may be the better bargain butthe level of coverage may also be lower. The cost of an insurance premium is largely based onstatistics not necessarily on individual habits or history .A 22-year –oldmale seeking car insurance for a sports car can often anticipate ahigher insurance premium than a 45-year-old women driving amid-size sedan. Both may have excellent driving records but theinsurance company considers a younger driver in a faster car to bemore at risk for accidents. Therefore the insurance premium quotes willbe noticeably different. In general a more expensive or faster car willcost more to insure simply because owners of those vehicles TEND todrive faster. 15 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  16. 16. SAAB MARFIN MBA The same philosophy holds true for medical insurancepremium costs .Non-smokers statistically live healthier lives thensmokers ,for example Construction worker may have more serious onthe job accidents than accountants . A55-year-old lumberjack whosmokes may be charged a higher health insurance premium than a30-year-old non-smoker working in an office conversely an insurancepremium may be reduced if the policyholder changes his or her habitsand life style. An insurance premium is generally collected in monthly orsemi-yearly payments .If the policyholder fails to make a scheduledpayment the insurance company can choose to cancel the policy entirely.This is often referred to as a lapsed policy .Either the customer will paythe balance of the insurance premium and become reinstated or thepolicy will become null and void. Because the billing cycle can belengthy it is not unusual for policy holders to forget to make apayments before the policy lapses. An insurance premium is always in a state of flux Rates cango up or remain stable between billing cycles .An accidents claim candramatically changes the insurance premium rate of the claimantespecially if the accidents report show the policy holder was at fault . 16 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  17. 17. SAAB MARFIN MBABecause most states now have a mandatory minimal insurance coveragelaw for drivers there may be no other choice but to pay the increasedinsurance premium or find another company willing to a higher riskdriver .Insurance agencies are for profit businesses , so they will makeevery effort to recoup their losses after a pay-out . Paying an insurancepremium may seem like a waste of money ,but knowing your expenseswill be met after an accident can bring peace of mind .INDIAN FOREIGN COUNTRY INSURER WEBSITEPROMOTER PROMOTERBajaj Auto Allianz AG Germany Bajaj Allianz bajajallianz.c Life Insurance o.inICICI Prudential USA ICICI iciciprulife.co Prudential m 17 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  18. 18. SAAB MARFIN MBA Life InsuranceHDFC Standard UK HDFC hdfcinsurance Life Standard Life .com InsuranceVysya Bank ING Group Netherlan INGVysya Life ingvysyalife.c ds Insurance omSBI Cardif(arm Canada SBI Life sbilife.co.in of BNP Insurance paribas)TATA American USA Tata-AIG Life tata_aig.com Internationa Insurance l GroupDabur India Aviva Plc Aviva Life avivaindia.co Insurance mAditya Birla Sun Life Canada Birla Sun Life birlasunlife.cGroup Insurance omLiterature Review: 18 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  19. 19. SAAB MARFIN MBA The project report on “A study on customer awareness todetermine the potential market “HDFC Standard Life Insurance Plan” inDharwad. I through under took the project by the help of “HDFCStandard Life Insurance Plan” Ltd. Sales development manager Mr. MoinLohaniBody of the Report: Primary data was collected by administration questionnaire of100 customers. The questionnaire was specially framed to meet therequirement of the survey and the following details. Direct contact was made with the respondents through randomsample to collect the needful information with reference to ourobjective as per to meet the survey requirement.Interview technique: Direct personal interview was conducted throughout projectusing direct structured and self administrative questionnaire.Conclusion & Recommendation: Analysis was based on the result of the research conducted andthe recommendations are based on the analysis.Limitation : The major limitation of the project was time frame. 19 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  20. 20. SAAB MARFIN MBASTATEMENT OF THE PROBLEM “A study on customer awareness to determine the potentialmarket of HDFC Standard Life Insurance Products and plans”. The main core problem in the project is to know weather thepeople of Dharwad city is fully aware of “HDFC Standard Life InsurancePlan”Purpose of the study: The study was undertaken to gather information from therespondents regarding awareness Unit-Linked Youngster plan and thepurpose of the study is to know how many people are aware of “HDFCStandard Life Insurance Plan”Scope of the study: The study will help the company to know the awareness of “HDFC Standard Life Insurance Plan” in Dharwad city. The study will help the company to know the customer profile. The company can find out where their competitors 20 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  21. 21. SAAB MARFIN MBA The reason for confining the scope of the research in Dharwad were . 1) One of the fast growing city in educational field in Karnataka and represents the more scope to the insurance companies. 2) It is also commercial city in the Business field. Objectives: 1. To study the awareness level of “HDFC Standard Life Insurance Plan”. 2. To find factor influencing financial planning. 3. To find potential market for “HDFC Standard Life Insurance Plan” 4. To find vital communication media.RESEARCH METHODOLOGYData source: Primary data (field survey)Area of Research: Dharwad city.Research instrument: Questionnaire.Sample Plan: Personal Interview.Sample Unit: Businessman, Job holders, etc.Sampling method: Non probability method, Random sampling method.Sample Size: 50 respondents. 21 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  22. 22. SAAB MARFIN MBA 22“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  23. 23. SAAB MARFIN MBAOrganizational Profile:HDFC (Housing Development Finance Corporation Ltd.) 23 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  24. 24. SAAB MARFIN MBA Founded in 1977, HDFC is today the market leader in housingfinance in India and extended financial assistance for more than 19lacks homes. HDFC has 120 offices in India presently. It also has oneinternational office in Dubai and service associate in Bahrain, Kuwait,Qatar, Saudi Arabia and sultanate of Oman. HDFC’s asset based amount of over Rs 21450crore. Its financialstrength is reflected in highest safety rating of FAAA and MAAAawarded by CRISIL ICRA two of India’s leading credit rating agenciesrespectively for the last 7 years consequently.It has a depositor based of over 13 lacks depositors and deposits agentface of over 50000. Of the total deposit of 82%are sourced from individual and trustdepositors, which demonstrate the tremendous confidence that retailsinvestor, have in the company. HDFC promoted companies have emerged to to meet the investorand customers needs. HDFC bank for commercial banking HDFC mutual fund of mutualfund of products. HDFC standard life insurance company for life insurance andpension plan and product and HDFC Chubb for general insuranceproduct. 24 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  25. 25. SAAB MARFIN MBA Being an institution that is strongly committed to the higheststandard of quality and excellence , HDFC has own several accolades inthe past few years one such award is “Ramakrishna Bajaj NationalQuality Award” for the year 1999.this award was instituted to awardreorganization to Indian companies for business excellence and qualityachievements. HDFC is the only Company so far to receive this award inthe service category. 25 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  26. 26. SAAB MARFIN MBAStandard Life Assurance Company (SLAC) Founded in 1825, Standard life has been at the fore front of theU.K. Insurance Industry for 177 years by combining sound financialjudgment with integrity and reliability. The largest mutual life companyin Europe, it has operations in the U.K, Ireland, Spain, Germany, Austriaand Canada with representative offices in Hong Kong and Chaina. One of its most recent successes was the launch of standard lifebank on 1st January 1998. The introduction of its innovative mortgageproduct in January 1999 had an immediate impact on the U.K. market,accounting for 11% of the all new lending within the first operationalyear. The current deposite base of the bank is U.S. $ 7.1 Bn. Standard life has total assets of U.S.$ 121 Bn and the newpremium income last year of U.S.$ 9.2 Bn. Its U.K. investment portfolioaccounts for approximately 2% of all shares listed in the London StockExchange. It is one of the few insurance companies in the world to receiveAAA rating from two of the leading International Credit Rating Agencies,Moody’s And Standard and Poor’s. The letter described standard life’ 26 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  27. 27. SAAB MARFIN MBAability to meet its claims obligations of overwhelming under a variety ofeconomic conditions. Not surprisingly, standard life is rated as one of the strongestcompanies in the world, in financial terms. The quality and values standard life brings to this venture areimmense. The companies reputation in the U.K. market remainsunrivalled. Besides being voted ‘Company of the year’ for overall service,for the third consecutive year, standard life was recently voted‘Company of the Decade’ by independent brokers.CommissionsThe rewards of selling insurance are the lucrative.The limits on commission as provided in the Insurance Act 1938 are asunder:Type of Policy Commission LimitsImmediate Annuity 2% of premiumDeferred Annuity 2% of premium(single premium)Deferred Annuity 7.5 % of the first year’s(regular premium) premium 2% of each renewal premium 27 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  28. 28. SAAB MARFIN MBAAll other Cases A maximum of 40 % of the(Endowment, Money-back, etc.) first year’s premium A maximum of 7.5 % of the second year’s premium A maximum of 5 % of the 4th & 5th year’s premium Thereafter, 5% of the renewal premium Total commission payable in the first five years cannot exceed 60 % of the annual premium payable on the policy.Role of the HDFC Standard Life Agent-The consultantThe Company’s agent would be a professional sales person & would begiven the designation of a “consultant” by the Company.The consultant would act as a financial advisor to the customer. He/Shewould: Analyze the customer financial requirements 28 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  29. 29. SAAB MARFIN MBA Help them plan their goals & Recommend appropriate solution, so that the customer is able to meet his /her financial objectives in the most optimum manner. He/She shall provide support to customers on an ongoing basis. The Company would also support the consultant by providing the required training & information so that he/she is able to provide the best service to the customers. Thus, the Company’s Consultant would have a far wider role to play than “the typical insurance agent.”Why should be a consultant with HDFC standard life insuranceCompany Ltd.? HDFC standard life are companies with tremendous financial strength as endorsed by credit rating agencies. Both enjoy an excellent reputation in terms of goodwill and efficient customer service. Sales training imparted to our consultants will be based on the finest international practices. Promote and effective communication on marketing campaigns, new products. 29 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  30. 30. SAAB MARFIN MBA The customer service process will be highly leveraged on technology, whether it is getting a new policy on the books, paying your commission or setting a claim. New business will be processed through a local branch network. Our objective is to get policies on our books and disburse. Commission paid to you as quickly as possible. A range of comparative products backed by quick and efficient service supported by highly trained and customer focused administration of team. The idea is to designe all our process around the customers want, when they want it and where tyeu want it. Additional recognition for top performers. Published service turnaround times, which will be used to measures our performance. Customer satisfaction surveys will be conducted proactively and the company will the act on the results.Scope of Insurance Business in India The malhotra committee estimated that the insurance penetrationin India is to extent of about 25% of the insurable population. As of 1999-2000, LIC’s insurance premium income wasapproximately rs.32000 crore. It is observed that currently LIC has 30 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  31. 31. SAAB MARFIN MBAabout 10 crore policies in force, which contribute a premium of about6% of GDS (Grosss Domestic Savings ) of households in India. Based on a report by the confederation of Indian Industries (CII), itis anticipated that this figure of 10 crore policies inforce is likely todouble in the next decade.by the year 2010, the premium income isexpected to account for 18% of the GDS,amounting to Rs. 5,12,000crore. 31 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  32. 32. SAAB MARFIN MBAAbout us 32 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  33. 33. SAAB MARFIN MBAHDFC Standard Life Insurance Company Ltd. is one of India’s leadingprivate life insurance companies, which offers a range of individual andgroup insurance solutions. It is a joint venture between HousingDevelopment Finance Corporation Limited (HDFC Ltd.), India’s leadinghousing finance institution and The Standard Life Assurance Company,a leading provider of financial services from the United Kingdom. Boththe promoters are well known for their ethical dealings and financialstrength and are thus committed to being a long-term player in the lifeinsurance industry – all important factors to consider when choosingyour insurer.Our key strengths Financial Expertise As a joint venture ofleading financial services groups, HDFC Standard Life has thefinancial expertise required to manage your long-terminvestments safely and efficiently.RangeofSolutionsWe have a range of individual and group solutions, which can be easilycustomized to specific needs. Our group solutions have been designedto offer you complete flexibility combined with a low charging structure. 33 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  34. 34. SAAB MARFIN MBATrackRecordsofarOur cumulative premium income, including the first year premiums andrenewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.We have covered over 1.6 million individuals out of which over 5,00,000lives have been covered through our group business tie-ups. Customer services We at HDFC Standard Life are committed to maintaining thehighest level of customer service. Interacting with you via this website isan extension of this commitment. We have designed the ‘Customer Service’ section keeping inmind all the information you may want to seek regarding proceduressuch as paying your premium, various policy servicing options,processing a claim and so on. We have also provided relevant forms thatcan be downloaded easily for your use. 34 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  35. 35. SAAB MARFIN MBAPremium Payment This section gives you all the details that you may require topay your premium and make it a hassle free experience. Along withvarious premium payment options currently available to you, we havealso drawn up a of details that you will need in case you are payingthrough cheque or demanddraft6 Easy Ways to pay your premium: Lapsation & Revival Your renewal premium should reach us by the due date specifiedin the premium reminders. It is always advisable to pay on time so thatyour valuable policy benefits can continue. However we do understand that there may be times when youmay not be able to pay the renewal premium by the due date. 35 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  36. 36. SAAB MARFIN MBA we allow for some additional number of days from the due date, which is specified in your policy document, to help you make your premium In case we still don’t receive your premium payments by the end of the above mentioned period, we would do either one of the following: “Lapse” the policy – if you haven’t paid premiums for the first 3 policy years payment. Make the policy “Paid up” – if otherwise Either of these may mean loss/reduction of valuable benefits of your policy. Please refer to your policy document for details. We do, however, allow you to restore the original benefits for a Lapsed or a Paid up policy under certain conditions. Here is what you would need to do:Claims 36 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  37. 37. SAAB MARFIN MBA We at HDFC Standard Life realize that not everyone has the same kindof needs. Keeping this in mind, we have a varied range of Products that youcan choose from to suit all your needs. These will help secure your future aswell as the future of your family.Protection Plans You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.Investment Plans 37 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  38. 38. SAAB MARFIN MBA Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.Pension Plans Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension PlusSavings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children’s immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Children’s Plan, Unit Linked Youngster, Unit Linked Youngster Plus . 38 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  39. 39. SAAB MARFIN MBAWe understand that bereavement can be difficult to deal with, especially whenyou have to arrange for all the formalities in Case of insurance claims. If you are the claimant you may get in touch with us by emailing us at andwe will get back to you with that will be required to process a claim.To help you arrange the documents we have drawn up a list of documents thatyou may be required to send along with the claims form. This list is for yourreference only and the complete list may vary for each claim.Indicative list of documents for Death Claim Death Claim Form Original Death Certificate Original Policy Documents Medical certificate of cause of death Cremation or burial certificate (not mandatory) Legal evidence of title (In case there is no nominee) All past medical reportsIndicative list of documents for Critical Illness Claim 39 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  40. 40. SAAB MARFIN MBACritical Illness FormClaimant Statement FormOriginal Policy DocumentA copy of medical records at the time of diagnosis illness and for pastillnessesDoctors/Hospital Certificates (formats will be issued by the claims assessoronly) Group Products One-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative 40 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  41. 41. SAAB MARFIN MBAemployee benefit solutions to their employees. We offer differentproducts for different needs of employers ranging from term insuranceplans for pure protection to voluntary plans such as superannuation andleave encashment.We now offer the following group products to our esteemed corporateclients: Group Term Insurance with Riders Group Term Insurance with Profit-Share Group Unit-Linked Plan For Gratuity For Defined Benefit Superannuation For Defined Contribution Superannuation Group Leave Encashment PlanRural ProductsAccording to our research findings, there is keenness among rural customers to invsavings cum protection plan with a term of five years. Especially, if the premium amis low and affordable. Keeping this in view, we have designed a special product c 41 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  42. 42. SAAB MARFIN MBABima Bachat Yojana.We have also designed a product called Super Bachat Yojana wherein the rural custcan save regularly to create a corpus for future needs..Bima Bachat Yojana The key objective of this product is to provide cover to economically weaker se and also to popularise the concept of life insurance and savings in rural areas. Bachat Yojana is a low premium life protection plan. One time premium f five-year term is just Rs. 100. Benefits on death before Maturity: Rs 1,000. Benefits on Surrender before Maturity During year Surrender Value (Rs) 1 100 2 120 3 140 4 160 5 180 42 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  43. 43. SAAB MARFIN MBA Benefits on Maturity On survival of the life assured to maturity, a benefit of Rs 200 will be paid. Age Limit : 18 to 50 yearsSuper Bachat Yojana Super Bachat Yojana combines the benefits of life protection as well as super savin helps you save money to meet the expected long term needs. What’s more, it lets participate in the surplus profits of the company! Benefits on Maturity Sum Assured + Reversionary Bonus + Interim and Terminal B (Bonuses will be declared normally as on 31st March) Benefits On Death 43 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  44. 44. SAAB MARFIN MBADuring the first year a basic benefit of 80% of premiums paid and after the firstlesser basic sum assured +reversionary bonuses paidtotal premiums paid to date +interest @ 6 % per annumTax Benefits Premiums paid are eligible for tax relief under Section 80 C of the Income Tax 1961 Any sum received is exempt under Section 10[10D] of the Income Tax Act, 1961Age and Term Limits Minimum Age at Entry 18 years Maximum Age at Entry 60 years Maximum Age at Maturity 75 years Minimum Term 10 years Maximum Term 30 yearsMinimum Premium & Policy Fee 44 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  45. 45. SAAB MARFIN MBA Option Premium Fee Annual 1800 150 Half Yearly 1000 80 Quarterly 550 45 Documents Required for Claim Payments Fully completed Claim Form Original Policy document Original Death Registration Certificate Original Certificate of Doctor certifying death Original Certificate of cremation There are NO exclusions under this productDevelopment Insurance PlanDevelopment Insurance plan is an insurance plan which provides life cover 45 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  46. 46. SAAB MARFIN MBAto members of a Development Agency for a term of one year. On the deathof any member of the group insured during the year of cover, a lump sumis paid to that member’s beneficiaries to help meet some of the immediatefinancial needs following their loss. Eligibility Members of the development agency and their spouses with: - Minimum age at the start of the policy 18 years last birthday - Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members. Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received. The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per 46 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  47. 47. SAAB MARFIN MBAmember. . Benefits On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time. The role of the Development Agency Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: 47 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  48. 48. SAAB MARFIN MBA Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group membersThese tasks would be in addition to the usual duties of a policyholdersuch as: Payment of premiums Reporting of claims Keeping policy holder information up to dateTraining and support will be available to give guidance on how tocomplete the tasks appropriately.Since these additional tasks will impose a burden on the DevelopmentAgency, the Development Agency may charge a Rs. 10 administration feeto their members.Prohibition of rebatesSection 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an 48“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  49. 49. SAAB MARFIN MBA insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundredTax BenefitsINCOME TAX GROSS HOW MUCH TAX HDFC STANDARD LIFESECTION ANNUAL CAN YOU SAVE? PLANS SALARY Up to Rs. 33,660 Across All saved onSec. 80C All the life insurance plans. income Slabs. investment of Rs. 1, 00,000. 49 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  50. 50. SAAB MARFIN MBA Up to Rs. 33,660 Across all saved onSec. 80 CCC All the pension plans. income slabs. Investment of Rs.1, 00,000. Unto Rs. 3,366 All the health insurance Across all saved onSec. 80 D* riders available with the income slabs. Investment of conventional plans. Rs. 10,000. Rs. 37,026TOTAL Rs. 33,660 under Sec. 80C and under Sec. 80 CCC , Rs.3,366SAVINGS under Sec. 80 D, calculated for a male with gross annualPOSSIBLE ** income not exceeding Rs. 10,00,000. Under Sec. 10(10D), the benefits you receive are completelySec. 10 (10)D tax-free, subject to the conditions laid down therein.* Applicable to premiums paid for Critical Illness Benefit, Accelerated SumAssured and Waiver of Premium Benefit.** These calculations are illustrative and based on our understanding of currenttax legislations.Please contact your tax consultant for exact calculation of your tax liabilities. 50 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  51. 51. SAAB MARFIN MBAKnowledge CentreOur Knowledge Centre is your personal resource for information thatcan help you understand the basics of insurance and help you make aninformed decision about buying a policy.This section includes details on insurance terms and concepts, helpsyou analyze plans for your various needs and lends meaning to some ofthe insurance jargon that you may encounter. 51 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  52. 52. SAAB MARFIN MBA 52“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  53. 53. SAAB MARFIN MBAHDFC Standard Life Insurance Company Ltd. is one of India’s leadingprivate life insurance companies, which offers a range of individual andgroup insurance solutions. It is a joint venture between Housing 53 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  54. 54. SAAB MARFIN MBADevelopment Finance Corporation Limited (HDFC Ltd.), India’s leadinghousing finance institution and The Standard Life Assurance Company,a leading provider of financial services from the United Kingdom. Boththe promoters are well known for their ethical dealings and financialstrength and are thus committed to being a long-term player in the lifeinsurance industry – all important factors to consider when choosingyour insurer.Our key strengthsFinancialExpertiseAs a joint venture of leading financial services groups, HDFC StandardLife has the financial expertise required to manage your long-terminvestments safely and efficiently.RangeofSolutionsWe have a range of individual and group solutions, which can be easilycustomized to specific needs. Our group solutions have been designedto offer you complete flexibility combined with a low charging structure.TrackRecordsofarour cumulative premium income, including the first year premiums andrenewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06. 54 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  55. 55. SAAB MARFIN MBAWe have covered over 1.6 million individuals out of which over 5,00,000lives have been covered through our group business tie-ups.carriersHDFCs finest investment is in its Human Resources. It draws itspersonnel from many disciplines. They are the building blocks onwhich the companys performance & productivity is based" . Mr. H TParekh Founder-Chairman, HDFC Ltd.We welcome you to the family of HDFC Standard Life InsuranceCompany Ltd.This section will help you identify various career opportunities with us,give you an insight into our work culture and also our various learningand development initiatives amongst host of other information.HDFC Standard Life is one of the leading life insurance companieshaving a track record of declaring bonuses every year since inception.We attribute this success to our people, who are our most importantasset. We believe they are a key facet of the company and it is theircontribution that has enabled us to achieve our current status. Sincethey deserve the best, our efforts have been to provide them with thebest environment, best culture and best development opportunitiespossible. 55 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  56. 56. SAAB MARFIN MBAJoin the Winning Team at HDFC SLIn our quest to be a competitive player in the insurance space,we are keen to partner with talented, high performing people.We pride our self for a rich talent base that can successfullypropel the company to even greater heights in an increasinglycompetitive platform. So if you think, you have it in you toemerge victorious in this challenging environment, join us. Youcan in order to send us your CV. Current Opportunities Accounts & Finance Group Sales Human Resource & Administration Inferior & Technology Marketing Operations Sales-Retail Sales-Alternate Channel 56 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  57. 57. SAAB MARFIN MBA Underwriting Training Process Management Agency Legal & Compliance MedicalGroup CompaniesSome of our valued bancassurance partners. 16th May 2006 57 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  58. 58. SAAB MARFIN MBA HDFC Standard Life records impressive growth Premium Income grows by 112% HDFC Standard Life has recorded a strong year on year growth of 112% for the period April-March 2005- 06, in comparison with the same period 2004-05, with new business first year premium of Rs.1029 corers. The growth achieved by the company was considerably higher than the private sector industry average of 84% for 2005-06. In terms of effective premium income (EPI), which gives a 10% value to a Single Premium policy, and is an internationally accepted indicator of an insurance company’s performance, the EPI grew by 103% from Rs.436 Cr. to Rs. 887Cr. HDFC Standard Life’s growth in new business is a result of number of lives insured as well as, an increase in the average premium. For the individual business, volume measured by the number of lives insured, witnessed a 32% growth. The average premium also increased by 62% from Rs.17, 000 in 2004-05 to Rs. 27,500 in 2005-06. Commenting on the huge potential that exists in the Indian market today, Mr. Deepak Satwalekar, Managing Director & CEO of HDFC 58“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  59. 59. SAAB MARFIN MBA Standard Life emphasized, “The GDP has been growing over 8% per annum and 47% of all savings are now in financial saving forms; 16% of savings is in the form of insurance premiums and another 16% is in Provident Fund and Pensions i.e., 32% of India’s financial savings of the household sector are available to be tapped. Therefore, growth for the private life insurance industry is inevitable and HDFC Standard Life is confident of maintaining a steady growth pace.” Highlighting HDFC Standard Life’s differentiators, Mr. Deepak Satwalekar said, “Our Company has the most competitive fund management charge, which is the lowest in equity based products. Our fund management charge is as low as 0.8% per annum, the key to enhancing long-term returns. Our other differentiator is that we believe in offering life insurance solutions to customers based clearly on their needs, and ‘Disha’ is the way it is done.” ‘Disha’ is a Professional Sales Skills Training Program. The delegates in this program are introduced to a ‘Need-based’ selling approach, which can cater to all our clients opting for life insurance solutions. ‘Disha’ is aimed at providing a good service to the client and building long-term relationships. Contribution to the individual business premium income by the 59“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  60. 60. SAAB MARFIN MBA different channels of distribution also changed significantly, compared to last year. The Corporate Agency and Banc assurance channel has grown tremendously and currently accounts for 43% of the company’s business. Speaking on this, Mr. Satwalekar said, “The strategy to concentrate on activating a limited number of bancasurance partners rather than going in for signing up a large number of banks in the early years, also paid off. Our key to achieving banc assurance success is our belief in a partnership approach, customized product offerings, highly ethical dealings and providing good “value to our partners and their customers.” HDFC Standard Life’s offerings of Employee Benefit Solutions, to the corporate sector, through Group Business, have met with increased success with year on year growth of 174%. Commenting on the strong growth of HDFC SL’s Group Business, Mr. Satwalekar said, “Our excellent fund performance on retirement products and increase in our client base with 150 clients cutting across a spectrum of industries spanning from multinationals to PSUs to the older business houses, have been the highlights of the year.” Ongoing training for conventional products and specialized training for unit linked products for more than 33,000 of our financial consultants has also helped its customers choose the products best 60“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  61. 61. SAAB MARFIN MBA suited for their need for protection, savings, investments and pensions. HDFC Standard Life is the only company requiring its sales force to undergo specific training in ULIPs before they are permitted to sell the same. There has been a huge jump in the number of its Financial Consultants who have qualified to become members of the prestigious Million Dollar Round Table (MDRT). From 124 members as on 31st December 2004, the number has increased to 318 members as on 31st December 2005. HDFC Standard Life continues to have one of the widest reaches amongst new insurance companies. The Company’s geographical presence has also increased and covers 169 offices across the country. Table Showcasing Financial Results: Apr-Mar Apr-Mar Parameters 2004-05 2005-06 % Growth (Rs. Cr.) (Rs. Cr.) Total received 668.40 1532.21 129.23 premium i. New Business 486.15 1028.94 111.65 ii. Renewal 182.25 503.27 176.14 61“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  62. 62. SAAB MARFIN MBA Effective Premium 436.08 887.30 103.47 Income (Total) Group Business 49.40 135.15 173.58 Premium (EPI)News 16th May 2005 HDFC Standard Life declares results for FY 2004-05 Premium Income grows by 132% HDFC Standard Life Insurance Company Limited declared its annual results for the financial year ending March 31st, 2005. The company generated 62 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  63. 63. SAAB MARFIN MBANew Business Premium Income of Rs. 486 Crore in 2004-05 registering ayear-on-year growth of 132%. The growth was primarily driven by thesuccess of the companys initiative on structured sales processes based oncustomer needs and their assessments.Mr. Deepak Satwalekar, Managing Director & CEO, HDFC Standard Lifeattributed this growth to the quality of life insurance solutions offered bythe company. Speaking on the occasion he said, "We are equipped to offersome of the best solutions to our customers given our wide range ofproducts and the quality of advice offered by our Financial Consultants andCorporate Consultants. Training was one of the biggest initiatives we hadundertaken last year. Clearly, this initiative has started giving us goodresults."Highlights of Financial Year 2004-05 New Business Premium Income up by 132% to Rs. 486 Crores. Total Premium Income of Rs.687 Crores as against Rs. 298 Crores in FY 03-04. Alternate Channels including banc assurance have recorded an 63“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  64. 64. SAAB MARFIN MBA impressive growth of over 400% to contribute 37% to the Effective Premium Income (EPI). Group business increased to Rs. 32 Crores on EPI basis. The average premium doubled to Rs 17,000 Company products and services available in 444 locations across the countryHDFC Standard Life tracks its New Business Premium on the basis ofEffective Premium Income (EPI). EPI is calculated by giving only a 10% valueto a Single Premium policy and is an internationally accepted indicator ofan insurance companys performance. While the company recorded NewBusiness Premium Income of Rs. 486 Crores, the EPI figure was lower at Rs.436 Crores. The total premium income (including renewal premium) grewby 130% to touch a figure of Rs. 687 Crores. High levels of persistencyhave resulted in a higher level of renewal premiums. High persistency is animportant contributor to future profitability. The cumulative sum assuredfor all policies issued up to March 31, 2005 crossed Rs. 30,000 Crores.In the first full year of offering unit linked products, the structured salesprocess adopted by the company has paid rich dividends. HDFC Standard 64“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  65. 65. SAAB MARFIN MBALife offers, both, life insurance policies as well as pension products on aunit linked platform. Unit linked products accounted for over 50% of thenew business premium. Given the nature of the unit linked product, thecompany provided specialized training to a limited number of its FinancialConsultants who were then tested for their understanding of the productsand separately licensed. HDFC Standard Life is unique in stipulating thisrequirement for its sales force.The companys national relationships with HDFC Limited, HDFC Bank,Union Bank of India, Indian Bank and Saraswat Bank have also helped itreach out to a larger number of customers across the country. Thealternate channel business grew by over 400% to contribute 37% of thepremium income. The company plans to further strengthen theserelationships through the introduction of products specially designed forthis channel.HDFC Standard Life continues to have one of the widest reaches amongnew insurance companies. The company doubled the number of offices to104 across the country. Through these offices, the company today servicescustomer needs in over 440 towns. The company also increased its depthin existing markets by increasing its Financial Consultant strength from17,000 as on 31st March 2004 to over 23,000 as on 31st March 2005.There has been a huge jump, of over 220%, in the number of its Financial 65“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  66. 66. SAAB MARFIN MBAConsultants who have qualified to become members of the prestigiousMillion Dollar Round Table (MDRT). From 38 members as on 31stDecember 2003, the number has increased to 124 members as on 31stDecember 2004.During the year, the company expanded its portfolio of products bylaunching plans to cover Superannuation and Leave Encashment needs,thereby offering a wide range of employee benefit solutions to itscorporate clients. Consequently, HDFC Standard Lifes Group Business sawa huge growth over the previous financial year. The New Business Premiumgrew to Rs. 49 Crore to cover over 200,000 lives for a sum assured of overRs.10,000 Crores.Given its parentage and its financial expertise, the company is confident ofoffering good long-term returns to its policyholders. Speaking on this Mr.Satwalekar said, "Our investment philosophy and cost consciousnesstogether will help us in providing good long term growth to policyholderson their investments with us. This is evident in the performance of ourequity based unit linked funds which have outperformed most indices overthe last one year". 66“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  67. 67. SAAB MARFIN MBAAccidentBenefit An add-on with a life policy. It compensates a policyholder in the event of death or injury by accident Annuity An investment option that makes a series of regular payments to an individual in exchange for a premium or a series of premia. Appreciate To grow in value Asset Everything owned or due to a person Asset allocation How your investments are spread across various asset classes 67 “A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  68. 68. SAAB MARFIN MBA Bond It is like an IOU. By buying a bond you loan money to a company, a municipality, state or the Central Government Bonus The amount paid as return in a ‘with-profit’ policy. The bonus, expressed as a percentage of the sum assured, is generally declared every year. The amount is linked to the profits earned by the insurer. Depending on the time of withdrawal, there are two kinds of bonuses – reversionary and cash. A reversionary bonus can be encashed only on maturity of the policy; a cash bonus can be withdrawn when declared Budget It is a tool used to monitor and control expenditures and purchases. 68“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  69. 69. SAAB MARFIN MBA Capital gains Profit earned from the sale of stocks, mutual fund units and real estate. Long-term capital gains arise from assets owned for more than a year while short-term capital gains are made from assets owned for less than a year. Compound Interest Interest computed on principal plus interest accrued during the previous periods of the investment Corpus The amount of money available with a scheme for investing. If already invested, the corpus is the current value of the scheme’s portfolio. Cost averaging A strategy that involves investing a fixed amount of money in an asset class like equity, so that the average cost of acquiring the asset in the long-term is much lower than that in the short-term. Cover 69“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  70. 70. SAAB MARFIN MBA Another word for insurance; it also refers to the amount of insurance. Critical illness rider A rider that provides a policyholder financial protection in the event of a critical illness Death benefit The amount payable to the nominee on death of the policyholder. The amount paid is the sum assured plus benefits applicable (if any) less outstanding loans. Declining term cover A type of pure life protection insurance policy where the premia remain the same while the life coverage keeps declining. They are typically used to cover the life of a person with a pending loan repayment, like home loan. Deferred annuity 70“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  71. 71. SAAB MARFIN MBA An annuity plan where the first annuity payment becomes payable after a chosen period that exceeds one year. Discretionary expenses These are expenses like entertainment, dining out and non-compulsory travel that you can reduce at will. Disability / dismemberment benefit rider A rider that provides for additional cover in the event of disability, or dismemberment, of the policy holder due to an accident Dividends Payments made by companies and mutual funds to shareholders and unit-holders, respectively, from the income generated by it. Down payment The money that a home buyer has to contribute, often at least 15 per cent of the value of the house, when he is taking a home loan. Dividend yield The percentage of dividend paid on a share to the value of the share. 71“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  72. 72. SAAB MARFIN MBA Emergency fund The money, in the form of liquid investments in bank savings accounts, two-in-one accounts and liquid funds, you need, to take care of emergencies like a job loss that your insurance policies wouldn’t cover Endowment plans An insurance plan that provides a policyholder risk cover and some return on investment. Usually suitable for the risk-averse Effective rate of interest The true rate as against the nominal rate, which may be incorrect. Estate All assets of a person, both financial-like stocks, bonds, mutual funds and fixed deposits and physical-like a house and gold that can be passed on to his heirs. 72“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  73. 73. SAAB MARFIN MBA Estate planning A financial plan to ensure the transfer of all your assets-both financial, such as fixed deposits and stocks and physical, such as home, after your death to your heirs without any delay or loss. Exclusions Risks and circumstances not covered by a policy. No claim will be entertained in case of losses arising out of such situations ELSS (equity-linked savings schemes) Diversified equity funds that additionally offer a tax deduction under Section 80C on investments up to Rs.1 lack. EMI (equated monthly installment) A borrower must make this payment each month towards repayment of interest and principal of a loan taken by him. Equity The actual ownership interest in a specific asset or group of assets 73“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  74. 74. SAAB MARFIN MBA Financial planning It covers the essential elements of a person’s financial affairs and is aimed at achieving a person’s financial goals. Fixed deposit Funds placed on deposit in a bank, company or post office at a fixed rate of interest. Fixed-income investment Any investment that provides a stated percentage of value, say 6 per cent, on the invested amount. Fixed rate loan Interest rate charged on a loan that remains fixed during the tenure of the loan Floating rate loan Interest rate charged on a loan benchmarked to a particular lending rate. The rate gets adjusted during the tenure of the loan as the benchmark interest rate changes. 74“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  75. 75. SAAB MARFIN MBA Group Insurance An insurance policy taken out by employers to provide life cover to their employees. Usually the cheapest form of insurance. Guaranteed additions The amount paid as returns in assured-return insurance plans. Guaranteed additions are expressed as a percentage of the sum assured, with the amount payable being stated by the insurer at the outset. Hospital cash benefit rider A rider that provides cover for hospitalization Immediate annuity 75“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  76. 76. SAAB MARFIN MBA An annuity that starts payments immediately after, or soon after, the first premium is paid Index fund A scheme whose portfolio mirrors the progress of a particular index, both in terms of composition and individual stock weight ages. It’s a passive investment option, as a fund’s performance will mimic the index concerned, barring a minor tracking error. Insured The policyholder Insurer The insurance company Investments Assets like fixed deposits, post office savings, bonds and stocks that are acquired for the purpose of earning a return Investment risks The risks that your investments face. These include the risk of 76“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  77. 77. SAAB MARFIN MBA interest rate fluctuations impacting your debt investments or the prices of equities going down. Level term cover rider A rider that increases the life cover in non-term plans, up to a maximum of the sum assured on the base policy. The rider offers death benefit along, and serves the need for extra protection for a specified time period. Liabilities Monies owed, debt and other financial obligations of a person Life annuity An annuity that makes regular income payments till the policyholder is alive. On the policyholder’s death, all income payments cease and there are no beneficiary benefits. Liquidity The quality of assets that can be easily and quickly converted into 77“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  78. 78. SAAB MARFIN MBA cash without any, or significant, loss in value. Loyalty additions Additional benefits (other than guaranteed additions/bonus) paid to policyholders on maturity of certain investment-based insurance plans for staying on through its term. Loyalty additions are paid as a percentage of the sum assured, with the amount depending on the insurer’s financial performance. Lock-in period The period of time for which investments made in an investment option cannot be withdrawn. Marginal tax rate The highest tax rate applicable to a person for paying income tax. Market value The monetary value an asset will fetch if sold in the market today. 78“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  79. 79. SAAB MARFIN MBA Maturity date The date on which a policy term or fixed-income investment like fixed deposit or bond comes to an end. Money-back plans A variant of endowment plans in which survival benefits are disbursed through the policy term, rather than in a lump sum at the end. Net asset value (NAV) The simplest measure of how a scheme is performing, it tells how much each unit of it is worth at any point in time. A scheme’s NAV is its net assets (the market value of the financial securities it owns minus whatever it owes) divided by the number of units it has issued. Nominee The person(s) nominated by the policyholder to receive the policy 79“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  80. 80. SAAB MARFIN MBA benefits in the event of his death. Participative plans See ‘with-profit’ policy Pension Plan Investment products offered by insurance companies and mutual funds that required the investor to make defined contributions over regular periods, mostly every year. The contributions are invested according to a pre-decided investment plan. At retirement, the accumulation is paid out through regular pay-out options. Periodic payment investments Investment options that have payouts in fixed intervals. For example, money-back life insurance policies. Permanent partial disability Permanent loss of any body part, one eye, one limb or one finger or 80“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  81. 81. SAAB MARFIN MBA a toe, or injuries that render the insured in capable of earning an income from the date of the accident onwards from any work, occupation or profession. While the loss of the body part may be permanent, its effects on the insured’s life are partial. Permanent total disability Permanent loss of use of any two limbs, or permanent and complete loss of sight in both eyes and any other injury that renders the insured incapable of earning an income. Cover this risk to secure your wealth. Policy The legal document issued by an insurance company to a policyholder that states the terms and conditions of an insurance contract. Policyholder The person who buys an insurance policy. Also referred to as the ‘insured’. Policy term 81“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  82. 82. SAAB MARFIN MBA The period for which an insurance policy provides cover Post office schemes Also known as Small Savings schemes, they are offered at post offices and carry the highest returns among fixed income instruments. Government backing makes these instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Post Office Monthly Income Scheme (POMIS) risk-free Pre-payment Partial or full repayment of the loan before the end of the tenure. Premium The amount paid by the insured to the insurer to buy cover Recurring deposit This is offered both in post office and banks where you are required to contribute a fixed amount ever month. It is a great tool for 82“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  83. 83. SAAB MARFIN MBA making small and regular savings. Rest The frequency at which interest is calculated on the outstanding loan balance. The more regularly the interest is calculated on the outstanding loan amount, the lesser the interest costs and cheaper the loan. For example, monthly rests would make a loan with the same rate cheaper than a quarterly rest. Revolving credit A pre-established credit line, typically in a credit card, against which a person may borrow to make purchases. Riders Additional covers that can be added to a life policy, for a cost Small savings See post office schemes 83“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  84. 84. SAAB MARFIN MBA Sum assured The amount of cover taken under a life insurance policy, it is the minimum amount that will be paid on death of the policyholder during the policy term. Surrender value The amount payable by the insurer to the owner of an investment-based plan in case he opts to terminate the policy after three years (the mandatory lock-in period) but before its maturity date. The surrender value will be the premia paid till date minus surrender charges and any outstanding loans due. Survival benefits The amount payable to a policyholder under an investment-based plan if he survives the policy term. Typically, it is the sum assured plus returns (guaranteed additions / bonus) accrued. Temporary total disability An injury that results from an accident and renders a person 84“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  85. 85. SAAB MARFIN MBA immobile or affects his earning capacity temporarily. For instance, a fracture in the arm or leg that keeps you from work: you may be mobile but the injury may prevent you from working. Term plans A plan that provides life cover for a specified period of time, but no return on the premia paid Terminal bonus A one-time bonus paid on maturity of a with-profit plan Vesting date Generally used in the context of pension plans and children’s plans offered by life insurance companies. It is a date signifying a milestone in a policy. In pension plans, it is the date from which the policyholder starts receiving pension. In children’s plans, it is the date from which a child becomes the owner of a policy taken out in his name (generally, around his 18th birthday). 85“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.
  86. 86. SAAB MARFIN MBA Waiver of premium rider A rider that waives the premia payable on the base policy and other riders in certain circumstances mostly related to death, disability or injury. An important feature especially for investment products such as children’s policies. Wealth The difference between the values of what you own (assets) and what you owe (liabilities). Will A document that designates the assets of a person-both financial and physical- to various family members and other heirs. With-profit policy An insurance plan in which the policyholder gets a share of the insurer’s profits ( in the form of guaranteed additions / bonus). Along with the sum assured. 86“A study on customer awareness to determine the potential market of HDFC Standard Life Insurance Products and plans”.

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