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mba project reports . i have 7k + project reports for sale :) u name it i have it, also play online

mba project reports . i have 7k + project reports for sale :) u name it i have it, also play online

games at www.GAMESWALA.com

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Hdfc standard life insurance Hdfc standard life insurance Document Transcript

  • www.GamesWala.com PROJECT REPORT ON Customer Buying Behavior with a Focus on Market Segmentation In HDFC Standard Life Insurance Company Ltd. Industrial Exposure ProjectSubmitted in the partial fulfillment of the requirement for the award of the Degree of Bachelor of Business Administration 2010-2011Submitted To: Submitted By:H.O.D (IT Deptt.) Name : Sumeer SondhiD.A.V. College Roll No. : 6764 www.GamesWala.com
  • www.GamesWala.comSector-10 Class : BBA 3rd YearChandigarh PU.Pin-17508000901 Jai Shree Ram, Dosto i am vikas gupta, age 31 years . i start a gaming website named www.GamesWala.com which has PR4 and ratings below 4 lakh. i need here 1 help from you, as i have no money to promote my gaming site,i am running graphic shop with 1 PC (yes 1 PC :) think how i am surviving with 1 PC and a family with 2 kids :P ), I do not know much about how topromote my website, so i decided to talk with you friends to come and join my site and play all the games for free, all games are personally selected by me from thousands of games. I am updating my website daily with lots of awesome games.You can play without register or register you id or you also can play with your facebook ID.hope you all will like my site and play free online games there, and dont forgot to tell your friends about mywww.GamesWala.com :) Student Decleration www.GamesWala.com
  • www.GamesWala.comThis is to certify that I Sumeer Sondhi have completed the SummerTraining Project titled “CUSTOMER BUYING BEHAVIOUR WITH AFOCUS ON MARKET SEGMENTATION” in “HDFC STANDARDLIFE INSURANCE COMPANY LTD.” under the guidance of “H.O.D ” in the partial fulfillment of the requirement for the award ofBachelor of Business Administration of D.A.V College, Chandigarh .This is an original piece of work & I have not submitted it earlierelsewhere. www.GamesWala.com View slide
  • www.GamesWala.com ACKNOWLEDGEMENT The Project Title “Customer Buying Behavior with a Focus on Market Segmentation In HDFC Standard Life Insurance Company Ltd.” has been conducted by me, I have completed this project, based onthe Primary research. To acknowledge all the people who played agreate roll for completion of project . I will like to thank my family members for their consistantsupport and co-operation without there help the whole projectwould have been difficult to pursue. I thank my family for encouragement and almighty godwithout whom i cannot take this challenege. www.GamesWala.com View slide
  • www.GamesWala.com CONTENTSTABLE OF CONTENTS1. OUR VISION2. OUR VALUES3. INTRODUCTION TO THE INDUSTRY4. OBJECTIVE OF STUDY5. INTRODUCTION TO COMPANY6. RESEARCH METHODOLOGYTitleTitle Justification → Significance of the Industry → Significance of the Research → Research Technique → Sampling Methodology → Sampling unit → Sampling Area → Sample Size7. FACTS AND FINDINGS8. DATA ANALYSIS AND INTERPRETATION9. LIMITATIONS10. RECOMMENDATIONS11. CONCLUSION www.GamesWala.com
  • www.GamesWala.com12. BIBLIOGRAPHY13. QUESTIONNAIRE Our Vision www.GamesWala.com
  • www.GamesWala.comThe most successful and admired life insurance company, which means that we are the mosttrusted company, the easiest to deal with, offer the best value for money, and set the standards inthe industry.. Our Values www.GamesWala.com
  • www.GamesWala.comValues that we observe while we work:.Integrity.Innovation.Customer centric.People Care One for all and all for ones.Teamwork.Joy and Simplicity www.GamesWala.com
  • www.GamesWala.com INTRODUCTIONTO THE INDUSTRY www.GamesWala.com
  • www.GamesWala.com THE HISTORY OF INDIAN INSURANCE INDUSTRYLife InsuranceIn 1818 the British established the first insurance company in India in Calcutta, the Oriental LifeInsurance Company. First attempts at regulation of the industry were made with the introductionof the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act weremade until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were thepower given to the Government to collect statistical information about the insured and the highlevel of protection the Act gave to the public through regulation and control. When the Act waschanged in 1950, this meant far reaching changes in the industry. The extra requirementsincluded a statutory requirement of a certain level of equity capital, a ceiling on share holdings insuch companies to prevent dominant control (to protect the public from any adversarial policiesfrom one single party), stricter control on investments and, generally, much tighter control. In1956, the market contained 154 Indian and 16 foreign life insurance companies. Business washeavily concentrated in urban areas and targeted the higher echelons of society. “Unethicalpractices adopted by some of the players against the interests of the consumers” then led the www.GamesWala.com
  • www.GamesWala.comIndian government to nationalize the industry. In September 1956, nationalization wascompleted, merging all these companies into the so-called Life Insurance Corporation (LIC). Itwas felt that “nationalization has lent the industry fairness, solidity, growth and reach.”Some of the important milestones in the life insurance business in India are:1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the lifeinsurance business.1928: The Indian Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-life insurance businesses.1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective ofprotecting the interests of the insuring public.1956: The market contained 154 Indian and 16 foreign life insurance companies. www.GamesWala.com
  • www.GamesWala.comGeneral InsuranceThe General Insurance industry in India dates back to the Industrial Revolution and thesubsequent increase in trade across the oceans in the 17th century. As for Life Insurance, theBritish brought General Insurance to India, and a similar path was followed in the developmentof this industry. A number of private companies were in existence for years and years until, in1971, the Indian Government decided that the public interest would be served by nationalizingthe industry, merging all the 107 companies into four companies, depending on the sort ofbusiness transacted (Marine, Fire, Miscellaneous). These were the National Insurance CompanyLtd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and theUnited India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madrasrespectively. The General Insurance Corporation (GIC) was set up in 1972 as a ‘holding’company, having these four companies as its subsidiaries.Some of the important milestones in the general insurance business in India are:1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes ofgeneral insurance business. www.GamesWala.com
  • www.GamesWala.com1957: General Insurance Council, a wing of the Insurance Association of India, frames a codeof conduct for ensuring fair conduct and sound business practices.1968: The Insurance Act amended to regulate investments and set minimum solvency marginsand the Tariff Advisory Committee set up.1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the generalinsurance business in India with effect from 1st January 1973. 107 insurers amalgamated andgrouped into four companies viz. the National Insurance Company Ltd., the New IndiaAssurance Company Ltd., the Oriental Insurance Company Ltd. and the United IndiaInsurance Company Ltd. GIC incorporated as a company. www.GamesWala.com
  • www.GamesWala.com MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA• Life Insurance Corporation of India (LIC)Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread themessage of life insurance in the country and mobilise people’s savings for nation-buildingactivities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta,Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices inimportant cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over thecountry.The Corporation also transacts business abroad and has offices in Fiji, Mauritius and UnitedKingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited,Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It has also enteredinto an agreement with the Sun Life (UK) for marketing unit linked life insurance and pensionpolicies in U.K.In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GICrecorded a net premium of $ 1.3 Billion. During the last 15 years, LICs income grew at a healthyaverage of 10 per cent as against the industrys 6.7 per cent growth in the rest of Asia (3.4 percent in Europe, 1.4 per cent in the US).LIC has even provided insurance cover to five million people living below the poverty line, with50 per cent subsidy in the premium rates. LICs claims settlement ratio at 95 per cent and GICs www.GamesWala.com
  • www.GamesWala.comat 74 per cent are higher than that of global average of 40 per cent. Compounded annual growthrate for Life insurance business has been 19.22 per cent per annum• General Insurance Corporation of India (GIC)The general insurance industry in India was nationalized and a government company known asGeneral Insurance Corporation of India (GIC) was formed by the Central Government inNovember 1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign insurerswhich were operating in the country prior to nationalization, were grouped into four operatingcompanies, namely, (i) National Insurance Company Limited; (ii) New India AssuranceCompany Limited; (iii) Oriental Insurance Company Limited; and (iv) United India InsuranceCompany Limited. (However, with effect from Dec2000, these subsidiaries have been de-linkedfrom the parent company and made as independent insurance companies). All the above foursubsidiaries of GIC operate all over the country competing with one another and underwritingvarious classes of general insurance business except for aviation insurance of national airlinesand crop insurance which is handled by the GIC.Besides the domestic market, the industry is presently operating in 17 countries directly throughbranches or agencies and in 14 countries through subsidiary and associate companies.IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEENPERMITTED TO ENTER INTO INSURANCE BUSINESS: -The introduction of private players in the industry has added to the colors in the dull industry.The initiatives taken by the private players are very competitive and have given immensecompetition to the on time monopoly of the market LIC. Since the advent of the private players www.GamesWala.com
  • www.GamesWala.comin the market the industry has seen new and innovative steps taken by the players in this sector.The new players have improved the service quality of the insurance. As a result LIC down theyears have seen the declining phase in its career. The market share was distributed among theprivate players. Though LIC still holds the 75% of the insurance sector but the upcoming naturesof these private players are enough to give more competition to LIC in the near future. LICmarket share has decreased from 95% (2002-03) to 82 %( 2004-05).1. HDFC Standard Life Insurance Company Ltd.HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurancecompanies, which offers a range of individual and group insurance solutions. It is a joint venturebetween Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leadinghousing finance institution and The Standard Life Assurance Company, a leading provider offinancial services from the United Kingdom. Their cumulative premium income, including thefirst year premiums and renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005.They have managed to cover over 11, 00,000 individuals out of which over 3, 40,000 lives havebeen covered through our group business tie-ups.2. Max New York Life Insurance Co. Ltd.Max New York Life Insurance Company Limited is a joint venture that brings together two largeforces - Max India Limited, a multi-business corporate, together with New York LifeInternational, a global expert in life insurance. With their various Products and Riders, there are www.GamesWala.com
  • www.GamesWala.commore than 400 product combinations to choose from. They have a national presence with anetwork of 57 offices in 37 cities across India.3. ICICI Prudential Life Insurance Company Ltd.ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premierfinancial powerhouse and prudential plc, a leading international financial services groupheadquartered in the United Kingdom. ICICI Prudential was amongst the first private sectorinsurance companies to begin operations in December 2000 after receiving approval fromInsurance Regulatory Development Authority (IRDA). The company has a network of about56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups.4. Om Kotak Mahindra Life Insurance Co. Ltd.Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak MahindraBank Ltd. (KMBL), and Old Mutual plc.5. Birla Sun Life Insurance Company Ltd.Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Lifefinancial Services of Canada.  Tata AIG Life Insurance Company Ltd.  SBI Life Insurance Company Limited www.GamesWala.com
  • www.GamesWala.com  ING Vysya Life Insurance Company Private Limited  Allianz Bajaj Life Insurance Company Ltd.  Metlife India Insurance Company Pvt. Ltd.  AMP SANMAR Assurance Company Ltd.  Dabur CGU Life Insurance Company Pvt. Ltd.1. Royal Sundaram Alliance Insurance Company Limited www.GamesWala.com
  • www.GamesWala.comThe joint venture bringing together Royal & Sun Alliance Insurance and Sundaram FinanceLimited started its operations from March 2001. The company is Head Quartered at Chennai, andhas two Regional Offices, one at Mumbai and another one at New Delhi.2. Bajaj Allianz General Insurance Company LimitedBajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limitedand Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority(IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business(including Health Insurance business) in India. The Company has an authorized and paid upcapital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG,and Germany.3. ICICI Lombard General Insurance Company LimitedICICI Lombard General Insurance Company Limited is a joint venture between ICICI BankLimited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is Indiassecond largest bank, while Fairfax Financial Holdings is a diversified financial corporateengaged in general insurance, reinsurance, insurance claims management and investmentmanagement.Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one ofCanadas oldest property and casualty insurers. ICICI Lombard General Insurance Companyreceived regulatory approvals to commence general insurance business in August 2001. www.GamesWala.com
  • www.GamesWala.com4. Cholamandalam General Insurance Company Ltd.Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of theMurugappa Group & Mitsui Sumitomo.Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh policies inits first calendar year of operations. The company has a pan-Indian presence with offices inChennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore, Ahmadabad, Delhi,Chandigarh, Kolkata and Vizag.5. TATA AIG General Insurance Company Ltd.Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the TataGroup and American International Group, Inc. (AIG). Tata AIG combines the strength andintegrity of the Tata Group with AIGs international expertise and financial strength. The TataGroup holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 percent stake.Tata AIG General Insurance Company, which started its operations in India on January 22, 2001,offers the complete range of insurance for automobile, home, personal accident, travel, energy,marine, property and casualty, as well as several specialized financial lines.6. Reliance General Insurance Company Limited.7. IFFCO Tokio General Insurance Co. Ltd8. Export Credit Guarantee Corporation Ltd. www.GamesWala.com
  • www.GamesWala.com9. HDFC-Chubb General Insurance Co. Ltd.Marketing of Insurance In IndiaInsurance is in a manner of speaking the last frontier in the financial sector to open. It is also asector, which leads to benefits across the full spectrum, from the individual who now have widerchoices, to the economy, which see increased savings, to the infrastructure sector, which canlook forward to long term funding being available. In an under-insured economy, newer channelsof distribution have to be utilized to intensify the reach of insurance both in urban and ruralmarkets. This will create huge employment opportunities not only within insurance companiesbut also as agents and consultants of insurance companies.Marketing Mix PoliciesDifferent companies can choose to position themselves differently and hence the Marketing Mixis different. However, there are certain common characteristics that one can cull out from thepossible strategies that companies adopt.Product:The development of flexible products to suit individual requirements is what will differentiatethe winners from the also-rans. The key to success is in providing insurance solutions, notstandardized insurance products. The concept of riders/optional benefits has already been a huge www.GamesWala.com
  • www.GamesWala.cominnovation brought about by the new players, which has led to customization of products forindividual needs. However, companies may differentiate themselves on the basis of productsegments that they choose to focus on and excel in.Place:Different companies may however choose different channels and different geographies to focuson. The channel options are - tied agency force, corporate agents and brokers and this is an areawhere different companies will make different choices. Many companies like HDFC StandardLife are focusing on all channels whereas companies like Max New York Life are focusing onthe tied agency force only. Customer interface will be a key challenge for life insurancecompanies and includes every that interaction that the customer has with the company, such assales, new business underwriting, policy servicing, premium payments, claim processing and soon. Technology can play a crucial role in delivering the highest standards of service set by thecompany and it will be imperative for any serious player to excel in all of these.Price:Price is a relevant differentiator only in two segments - pure term insurance and in pureannuities. Here too, service delivery and financial strength will need to be present at a minimum www.GamesWala.com
  • www.GamesWala.comacceptable level for price to be a relevant differentiator. In case of savings oriented products,long-term returns generated are more relevant than just the price of the product. A focus ongenerating good investment performance and keeping a tight control on costs help in generatinggood long-term maturity value for customers. Norms have been laid down on all of these byIRDA and adhering to these while delivering good returns will be a challenge.Promotion and Advertising:The level of demand is latent and will have to be activated considerably. The market needs to bedeveloped. Greater awareness of insurance and the need to have it as a protection tool rather thanas a tax planning measure needs to be appreciated by the Indian people. Various communicationtools including advertising, direct marketing and road shows contribute to all this and differentcompanies take different approaches on these.Process:Cashless settlement: One of the most defining and customer-friendly changes that we’ve seen inrecent years relates to the way claims settlements are made. The advent of the third-partyadministrator (TPA) regime has facilitated the transition to the hugely convenient era of cashlesssettlement of health and auto insurance claims. TPAs are entities who process claims on behalfof insurers: the IRDA licenses them after it is satisfied that they have the financial strength, thetrained manpower, the infrastructure and the skills to undertake this activity.Likewise, with auto insurance, the TPA ties up with garages and authorized service centers forcashless settlement of auto insurance claims. www.GamesWala.com
  • www.GamesWala.comLower premiums: The spirit of competition and the broadening of the risk experience ofinsurance companies have contributed to a fall in premiums over the years. That’s because, otherthings being equal, an insurer who covers the lives just of 10 people bears a higher risk than aninsurer who covers the lives of, say, 100 people. Further, a broader base will provide greaterefficiencies on costs such as distribution, management and claims. A broad basing of themortality experience, therefore, gives insurers the elbowroom to compete by lowering premiums,and that trend is expected to continue.Premium payment flexibility: Insurers have imparted certain flexibility to premium paymentoptions in order to address this concern. For instance, one now have the option to pay yourpremiums upfront, which is then carried forward for the tenure of the policy. The yearlypremiums are drawn from the initial corpus. Insurers have also introduced the concept of‘automatic cover maintenance’ to protect your policy from lapsing owing to your omission topay your premium on time. Under this, in the event of your not paying the premium, the insurerdips into your investment account to the extent of the premium. Of course, this comes with an in-built drawback: your investment portion diminishes year on year to the extent of the amount paidto cover your risk.Physical Evidence:This can play a significant role for marketing in the Indian scenario. Since Internet users arecomparatively lesser than countries such as US, the offline mode will be preferred in India. www.GamesWala.com
  • www.GamesWala.comAlthough the distribution model is largely agent-based, wherever the customer is in contact withthe company, this factor can play a significant role in luring the customer.People:The most important factor that materializes sales and maintains customer relationships on a long-term basis is this factor. No matter what distribution strategy a company adopts, customerrelationship has to be taken care of in order to maintain the customer base on a long-term basis. www.GamesWala.com
  • www.GamesWala.comwww.GamesWala.com
  • www.GamesWala.com PREFACE The liberalization of the Indian insurance sector has been the subject of much heated debate forsome years. The policy makers where in the catch 22 situation wherein for one they wantedcompetition, development and growth of this insurance sector which is extremely essential forchanneling the investments in to the infrastructure sector. At the other end the policy makers hadthe fears that the insurance premia, which are substantial, would seep out of the country; andwanted to have a cautious approach of opening for foreign participation in the sector.As one of the rare occurrences the entire debate was put on the back burner and the IRDA sawthe day of the light thanks to the maturing polity emerging consensus among factions of differentpolitical parties. Though some changes and some restrictive clauses as regards to the foreignparticipation were included the IRDA has opened the doors for the private entry into insurance.Whether the insurer is old or new, private or public, expanding the market will present multitudeof challenges and opportunities. But the key issues, possible trends, opportunities and challengesthat insurance sector will have still remains under the realms of the possibilities and speculation.What is the likely impact of opening up India’s insurance sector? The large scale of operations,public sector bureaucracies and cumbersome procedures hampers nationalized insurers.Therefore, potential private entrants expect to score in the areas of customer service, speed and www.GamesWala.com
  • www.GamesWala.comflexibility. They point out that their entry will mean better products and choice for the consumer.The critics counter that the benefit will be slim, because new players will concentrate on affluent,urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-upcosts-such as those of setting up a conventional distribution network-are large and high-endniches offer better returns. However, the middle-market segment too has great potential. Sinceinsurance is a volumes game. Therefore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped. CHAPTER 2 www.GamesWala.com
  • www.GamesWala.com EXECUTIVE SUMMARY EXECUTIVE SUMMARYIn today’s corporate and competitive world, I find that insurance sector has themaximum growth and potential as compared to the other sectors. Insurance has themaximum growth rate of 70-80% while as FMCG sector has maximum 12-15% ofgrowth rate. This growth potential attracts me to enter in this sector and HDFC www.GamesWala.com
  • www.GamesWala.comStandard Life Insurance Company Ltd has given me the opportunity to workand get experience in highly competitive and enhancing sector. • The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can capture big market as compared to the other companies. Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer www.GamesWala.com
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  • www.GamesWala.comINTRODUCTIONTO THE COMPANY www.GamesWala.com
  • www.GamesWala.com COMPANY PROFILE OF HDFC STANDARD LIFE INSURANCE COMPANY LTD ABOUT HDFC STANDARD LIFE INSURANCE HDFC Standard Life Insurance Company Ltd. is one of Indias leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture. HDFC STANDARD LIFE INSURANCE PARENTAGE• HDFC is India leading housing finance institution and has helped build more than 23, 00,000 houses since its incorporation in 1977.• In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr. www.GamesWala.com
  • www.GamesWala.com• As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors.• Rated AAA by CRISIL and ICRA for the 10th consecutive year• Stable and experienced management• High service standards• Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development. • Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards. Standard Life Group (Standard Life plc and its subsidiaries) • Standard Life Group (Standard Life plc and its subsidiaries) www.GamesWala.com
  • www.GamesWala.com• The Standard Life group has been looking after the financial needs of customers for over 180 years• It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs• Its investment manager currently administers £125 billion in assets• It is a leading pensions provider in the UK, and is rated by Standard & Poors as strong with a rating of A+ and as good with a rating of A1 by Moodys• Standard Life was awarded the Best Pension Provider in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. The 5 Star accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the Best Flexible Mortgage Lender at the Mortgage Magazine Awards in 2006HDFC KEYS STRENGHSFINANCIAL EXPERTISE www.GamesWala.com
  • www.GamesWala.comAS A JOINT VENTURE OF LEADING FINANCIAL SERVICES GROUPS, HDFC STANDARD LIFE HAS THEFINANCIAL EXPERTISE REQUIRED TO MANAGE YOUR LONG -TERM INVESTMENTS SAFELY AND EFFICIENTLY .RANGE OF SOLUTIONSWE HAVE A RANGE OF INDIVIDUAL AND GROUP SOLUTIONS , WHICH CAN BE EASILY CUSTOMISED TO SPECIFICNEEDS . OUR GROUP SOLUTIONS HAVE BEEN DESIGNED TO OFFER YOU COMPLETE FLEXIBILITY COMBINED WITHA LOW CHARGING STRUCTURE .TRACK RECORD SO FAROUR GROSS PREMIUM INCOME, FOR THE YEAR ENDING MARCH 31, 2008 STOOD AT RS. 4,859 CRORES ANDNEW BUSINESS PREMIUM INCOME STOOD AT RS. 2,685 CRORES.THE COMPANY HAS COVERED OVER 9,59,000 LIVES YEAR ENDING MARCH 31, 2008. www.GamesWala.com
  • www.GamesWala.comAccolades and Recognition• Rated by Business world as Indias Most Respected Private Life Insurance Company in 2004.• Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India number 1 personal finance magazineBELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY HDFC STANDARDSLIFE INSURANCEINSURANCE PLANS AVAILABLEIndividual ProductsWe at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this inmind, we have a varied range of Products that you can choose from to suit all your needs. Thesewill help secure your future as well 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 www.GamesWala.com
  • www.GamesWala.com mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.Investment Plans Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns 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 immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back, Unit Linked Enhanced Life Protection II, Childrens Plan, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II. www.GamesWala.com
  • www.GamesWala.comGroup ProductsOne-stop shop for employee-benefit solutionsHDFC Standard Life has the most comprehensive list of products for progressive employers whowish to provide the best and most innovative employee benefit solutions to their employees. Weoffer different products for different needs of employers ranging from term insurance plans forpure protection to voluntary plans such as superannuation and leave encashment.We now offer the following group products to our esteemed corporate clients: www.GamesWala.com
  • www.GamesWala.comGroupTermInsuranceGroupVariableTermInsuranceGroupUnit-Linked www.GamesWala.com
  • www.GamesWala.comSocial Product Development Insurance PlanDevelopment Insurance plan is an insurance plan which provides life cover to members of aDevelopment Agency for a term of one year. On the death of any member of the group insuredduring the year of cover, a lump sum is paid to those member beneficiaries to help meet some ofthe immediate financial needs following their loss. www.GamesWala.com
  • www.GamesWala.comepingpolicyholderinformationuptodate www.GamesWala.com
  • www.GamesWala.com Tax BenefitsINCOME TAX GROSS ANNUAL HOW MUCH HDFC STANDARDSECTION SALARY TAX CAN YOU LIFE PLANS SAVE?Sec. 80C Across All income Upto Rs. 33,990 All the life insurance Slabs saved on plans. investment of Rs. 1,00,000.Sec. 80 CCC Across all income Upto Rs. 33,990 All the pension plans. slabs. saved on Investment of Rs.1,00,000.Sec. 80 D* Across all income Upto Rs. 3,399 All the health insurance slabs saved on riders available with the Investment of conventional plans. Rs. 10,000.TOTAL SAVINGS Rs37,389POSSIBLE ** Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. www.GamesWala.com
  • www.GamesWala.comSec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free, subject to the conditions laid down therein. RESEARCH METHODOLOGY www.GamesWala.com
  • www.GamesWala.comTITLE:To determine customer-buying behavior with a focus on market segmentation for HDFCStandard Life Insurance.TITLE JUSTIFICATION:The above title is self explanatory. The study deals mainly with studying the buying pattern inthe insurance industry with a special focus on HDFC Standard Life Insurance. The varioussegments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levelsetc will also studied. SIGNIFICANCE TO THE INDUSTRY : www.GamesWala.com
  • www.GamesWala.comThis is a limited study which takes into consideration the responses of 100 people. This data canbe explorated to take in the trends across the industry. The significance for the industry lies instudying these trends that emerge from the study. It is a rapidly changing and evolving sector.People are only beginning to wake up to it’s vast possibilities. A study like this can attempt toguide the future of the industry based on current trends.SIGNIFICANE FOR THE RESEARCHER :To facilitate and provide all the useful informtaion of the company, the insurance industry andalso provide marketing ways, methods of HDFC Standard Life insurance. SAMPLING METHODOLOGYSamplingTechnique:Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot studywas done in order to know the accuracy of the Questionnaire. The final Questionnaire was www.GamesWala.com
  • www.GamesWala.comarrived only after certain important changes were done. Thus the sampling came out to bejudgemental and convenient.Sampling Unit:The respondants who were asked to fill out questionnaires are the sampling units. Thesecomprise of employees of MNCs, Govt. Employees, Self Employeds etc.Sample size:The sample size was restricted to only 100, which comprised of mainly peoples from differentregions of Delhi,NCR due to time constraints.Sampling Area :The area of the research was Delhi,NCR.LIMITATIONS OF THE RESEARCH www.GamesWala.com
  • www.GamesWala.com1. The research is confined to a certain parts of DELHI and does not necessarily shows apattern applicable to all of Country .A small number of 100 also does not show the pattern ofthe whole city.2. Some respondents were reluctant to divulge personal information which can affect thevalidity of all responses.3. In a rapidly changing industry, analysis on one day or in one segment can change veryquickly. The environmental changes are vital to be considered in order to assimilate thefindings.4. The training period was very less. www.GamesWala.com
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  • www.GamesWala.com CHAPTER 6DATA ANALYSIS AND INTERPRETATION www.GamesWala.com
  • www.GamesWala.com DATA ANALYSIS & INTERPRETATION DATA REPRESENTATION OF PEOPLE WHO ARE EMPLOYED DATA GIVES EMPLOYMENT STATUS OF THE INSURED RESPONDENTS.Table 1 NO.OFEMPLOYMENT SHARE (%) RESPONDENTYES 92 92NO 8 8 www.GamesWala.com
  • www.GamesWala.comINTERPRETATIONThe data shows that the majority of respondents are employed which would depict the betterpicture of the marker scenerio. DATA SHOWING ANNUAL INCOME OF RESPONDENTS Table 2 NO.OF ANNUAL INCOME SHARE (%) RESPONDENTS >5L 45 45 5L-10L 25 25 www.GamesWala.com
  • www.GamesWala.com 1OL-15L 20 20 15L-20L 10 10 INCOME 10% 20% 45% >5 LAKCS 5-10LACS 10-15 LACS 25% 15-20 LACSINTERPRETATIONIt can be noted that maximum amount of people (45%) fall in the category of > 5 lacks slot . DATA SHOWS PEOPLE HAVING INSURANCE Table 3 www.GamesWala.com
  • www.GamesWala.com RESPONSE NO. OF SHARE (%) RESPONDENTS Yes 70 70% No 30 30% Fig 7.6INTERPRETATION• Of the sample size of 400 surveyed respondents 70% of the respondents are having Insurance policy.• 30% of the respondents are either not having any Insurance policy at present or their policy is already matured. www.GamesWala.com
  • www.GamesWala.com• And at present 100% of the respondents are with the view that Insurance is a tool to protect your family . DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS Table 4 NO.OF BENEFITS SHARE (%) RESPONDENTS Cover Future Uncertainty 55 55 Tax Deductions 20 20 Future Investment 25 25 TOTAL 100 100 Fig7.2 www.GamesWala.com
  • www.GamesWala.comINTERPRETATION 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively. DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS Table 5 FEATURE NO.OF SHARE (%) RESPONDENTS Money Back Guarantee 15 15 Larger Risk Coverance 37 37 Easy Access to Agents 7 7 Low Premium 30 30 Company’s Reputation 11 11 TOTAL 100 100 www.GamesWala.com
  • www.GamesWala.com Fig 7.3 INTERPRETATION  Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.DATA SHOWS PEOPLE PREFERENCE IN INSURANCE COMPANIESTable 6 CATEGORY NO. OF SHARE (%) RESPONDENTS www.GamesWala.com
  • www.GamesWala.com PRIVATE 55 55% GOVERNMENT 45 45%INTERPRETATIONThere are more number of people employed in Private sector(55%) as compared to 45% ofpeople in govt. Sector.  DATA GIVES PREFERECE OF RESPONDENTS OF INSURANCE COMPANIES Table 7 www.GamesWala.com
  • www.GamesWala.com COMPANY’S NAME NO.OF SHARE (%) RESPONDENT L.I.C. 78 78 HDFC 2 2 ICICI PRUDENTIAL 10 10 SBI LIFE 7 7 RELIANCE LIFE 3 3 INSURANCE TOTAL 100 100 Fig 7.1INTERPRETATION www.GamesWala.com
  • www.GamesWala.com 78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.DATA SHOWING THE REASON FOR PREFERENCE OF AN INSURANCE POLICY TABLE 8REASON NO.OF SHARE (%) RESPONDENTEASY ACCESSABILITY 40 40MORE SECURITY 20 20BETTER SECURITY 20 20MORE INFORMATION & 10 10HELPCUSTOMER 10 10ORIENTATION TOTAL 100 100 www.GamesWala.com
  • www.GamesWala.com REASON 10% 10% 40% EASY ACCESSABILITY MORE SECURITY 20% BETTER SECURITY MORE INFORMATION 20% CUST. ORTINTERPRETATIONIt can be noted that the reason for maximun people for prefering the policy is easy accessabilityfollowed by people who look for better & more security DATA SHOWINGTHE TIME SPAN OF THE INSURANCE PLAN Table 9 NO.OF NO. OF YEARS SHARE (%) RESPONDENTS >5YRS 45 45 5YRS-10YRS 25 25 1OYRS-15YRS 20 20 15YRS-20YRS 10 10 www.GamesWala.com
  • www.GamesWala.com NO. OF YEARS 10% 20% 45% >5 YRS 5-10YRS 10-15YRS 25% 15Yrs<INTERPRETATIONIt can be noted that maximum amount of people look for short term insurance as compared to10% of those who go for long term. DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX Table 10 RESPONSE NO. OF SHARE (%) RESPONDENTS www.GamesWala.com
  • www.GamesWala.com Paying tax 100 100% Not paying tax - 0% Total 100 100% Fig 7.11INTERPRETATIONOf the sample size of 100 respondents, all the respondents are paying tax DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX SAVING Table 11 www.GamesWala.com
  • www.GamesWala.com INVESTMENTS NO. OF SHARE (%) RESPONDENTS LIC 51 51% NSC 33 33% Bonds 32 32% PPF 25 25% PF 21 21% EPF 11 11% Fig7.12INTERPRETATION• 51% of the respondents save their tax by investing in LIC, which is the highest among all Investment. This shows that most people for getting taxes benefits invest in LIC.• 33.25% of the respondents do their tax saving by investing in NSC.• 32.25% of the respondents to their tax saving by investing in bonds. www.GamesWala.com
  • www.GamesWala.com DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY Table 12 RESPONSE NO. OF SHARE (%) RESPONDENTS Satisfied 60 60% Not satisfied 40 40% Not Responded 0 0.0% Total 100 100% Fig 7.9 www.GamesWala.com
  • www.GamesWala.comINTERPRETATION• 60% of the respondents are more or less satisfied with their existing policy.• 40% of the respondents are not satisfied with their existing policy.• In this case all of those who have taken a policy have responded. DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS Table 13 POLICY TYPE NO. OF SHARE (%) RESPONDENTS LIFE POLICY 75 75 NON LIFE POLICY 25 25 BOTH 45 45 www.GamesWala.com
  • www.GamesWala.com Fig 7.4INTERPRETATION 75% of the respondents have Life Insurance Policy while 45% have both. (The % is calculated out of 280 positive response) www.GamesWala.com
  • www.GamesWala.com CHAPTER 7FACTS & FINDINGS FACTS/FINDINGS www.GamesWala.com
  • www.GamesWala.com1.As the people think that insurance is a tool to protect their family & a tax saving device. Theyare aware of the fact & realizing its, importance. The company should try to expand & build upits infrastructure because there is a large potential for insurance in India.2.Company should come up with more branches in Delhi with the objective and goals to meetthe demands & expectations of the public. Because the entrance of private players will increasethe competition and it would be a tough task to secure a good position in market.3.Since HDFC STANDARD LIFE INSURANCE LTD is leading with several companies’policies it should be easy for them to penetrate into the market and secure a good position if theypay greater attention to the service part provided to their customer and thereby forming a longand trusted relationship.4.As seen from the survey that at present 70% of the customer are having insurance policy out ofwhich 87.5% of the customer are planning for new investments. So it can be a good potential forthe company and they should make an attempt to trap these customers.5. 43% of the customer is even ready to go for insurance if a service provider away from theirhome is providing it. But intend they should provide good products and services. The companyshould try to convince these customers and get them in its favor. www.GamesWala.com
  • www.GamesWala.comRECOMMENDATIONS www.GamesWala.com
  • www.GamesWala.com RECOMMENDATIONS• To make people aware about the benefits of HDFC standard life insurance policy, following activities promotional activities should be carried out: .Printed media . Hoardings & Banners . continues telivision commercials.• Company should come up with more branches in Delhi with the objective and goals to meet the demands & expectations of the public in order to provide people with better customer satisfaction. www.GamesWala.com
  • www.GamesWala.com• Since HDFC Standard Life Insurance Company Ltd is leading with several companies’ policies it should be easy for them to penetrate into the market and secure a good position if they increase the number of branches and diversify their business to various other regions. .• As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to tap these customers. 43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor. www.GamesWala.com
  • www.GamesWala.comCONCLUSION CONCLUSIONwww.GamesWala.com
  • www.GamesWala.comOur exhaustive research in the field of Life Insurance threw up some intresting trends which canbe seen in the above analysis. A general impression that we gathered during Data collection wasthe immense awareness and knowledge among people about various companies and theirinsurance products. People are beginning to look beyond LIC for their insurance needs and arewilling to trust private players with their hard earned money.People in general have been impressioned by the marketing and advertising campaigns ofinsurance companies. A high penetration of print , radio and Television ad campaigns over theyears is beginning to have it’s impact now.Another heartning trend was in terms of people viewing insurance as a tax saving and investmentinstrument as much as a protective one. A very high number of respondants have opted forinsurance for such purposes and it shows how insurance companies ahve been successful toattract public money in recent times.The general satisfaction levels among public with regards to policy and agents still requiresimprovement. But therein lies the oppurtunity for a relative new comer like HDFC Standard LifeInsurance Company Ltd . LIC has never been known for prompt service or customer orientedmethods and HDFC Standard Life can build on these factors. www.GamesWala.com
  • www.GamesWala.comBIBLIOGRAPHY www.GamesWala.com
  • www.GamesWala.com BIBLIOGRAPHY1. BOOKS/MAGAZINES REFFERED:  STUDY GUIDE- PRINCILES & PRACTICES OF LIFE / GENERALINSURANCE, by AIMA. Books published by INSURANCE INSTITUTE OF INDIA, by S.K. Desai INSURANCE WATCH. MONEY OUTLOOK.2. WEBSITES REFFERED: WWW.CIFAINSURANCE.COM WWW.MONEYOUTLOOK.COM www.GamesWala.com
  • www.GamesWala.com WWW.INSURANCE.IND.COM  WWW.HDFCINURANCE.COM3. REPORTS/ARTICLES REFFERED: REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY…. Dec2008. BRIEF PROFILE OF LIC, INDIA…Dec 2008. REPORT: COPING WITH COMPETITION…Mar 2009 www.GamesWala.com
  • www.GamesWala.com ANNEXURES ANDQUESTIONNAIRE www.GamesWala.com
  • www.GamesWala.com QUESTIONNAIRE1. ARE YOU EMPLOYED? YES NO2. YOUR MONTHLY INCOME? a)<5L b)5L-10L c)10L-15L d)15L<3. DO YOU HAVE ANY INSURANCE POLICY? YES NO4. WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH5. WHAT IS YOUR PURPOSE OF TAKING AN INSURANCE COVER? (RANK THEM) a) COVER FUTURE UNCERTAINITY www.GamesWala.com
  • www.GamesWala.com b) TAX DEDUCTIONS c) FUTURE INVESTMENT d) ANY OTHER _________ (Specify)6. WHAT FACTORS AFFECT YOUR POLICY BUYING DECISION? (RANK THEM) a) LOW PREMIUM b) LARGER RISK COVERANCE c) MONEY BACK GUARANTEE d) REPUTATION OF COMPANY e) EASY ACCESS TO AGENTS f) ANY OTHER _________ (Specify)7 DO YOU PREFER PRIVATE INSURANCE COMPANIES OVERGOVERNMENT COMPANIES ? www.GamesWala.com
  • www.GamesWala.com YES NO8. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM) a) LIC b) ICICI PRUDENTIAL c) SBI LIFE INSURANCE d) ING VYSYA LIFE e) RELIANCE LIFE INSURANCE f) TATA AIG LIFE g) ANY OTHER ________( Specify)9. WHAT IS YOUR REASON FOR PREFERENCE OF AN INSURANCE POLICY ? a) EASY ACCESSABILITY b) MORE SECURITY c) BETTER SECURITY d) MORE INFORMATION & HELP e) CUSTOMER ORIENTATION10. YOUR INSURANCE PLAN INSURES YOU FOR HOW MANY YEARS ? www.GamesWala.com
  • www.GamesWala.com (Please Tick) a) >5Yrs b) 5-10 Yrs c) 10-15 Yrs d) 15Yrs<11. DO YOU PAY TAXES? YES NO12. WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM) a) LIC b) NSC c) BONDS d) PPF e) PF f) EPF13. ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED b) NOT SATISFIED c) NO COMMENTS www.GamesWala.com
  • www.GamesWala.com14 . WOULD YOU BE INTERESTEDIN AVALING ANY OF THE FOLLOWINGFINANCIAL PLANNING SERVICES?a) WEALTH CREATION PLANSb) INVESTMENT PLANSc) CHILDREN FUTURE PLANSd) TAX PLANNINGe) RETIREMENT PLANSf) RISK MANAGEMENT & INSURANCE www.GamesWala.com
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