This document is a project report submitted by Sumeer Sondhi for their BBA degree. The report focuses on customer buying behavior and market segmentation at HDFC Standard Life Insurance Company. It includes sections on the company vision and values, an introduction to the insurance industry in India, research methodology, findings, analysis and conclusions. The document also acknowledges those who helped with the project.

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PROJECT REPORT
ON
Customer Buying Behavior with a Focus on Market
Segmentation
In
HDFC Standard Life Insurance Company Ltd.
Industrial Exposure Project
Submitted in the partial fulfillment of the requirement for the award of the Degree
of Bachelor of Business Administration
2010-2011
Submitted To: Submitted By:
H.O.D (IT Deptt.) Name : Sumeer Sondhi
D.A.V. College Roll No. : 6764
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Sector-10 Class : BBA 3rd Year
Chandigarh 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 to
promote 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 don't
forgot to tell your friends about my
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Student Decleration
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This is to certify that I Sumeer Sondhi have completed the Summer
Training Project titled “CUSTOMER BUYING BEHAVIOUR WITH A
FOCUS ON MARKET SEGMENTATION” in “HDFC STANDARD
LIFE INSURANCE COMPANY LTD.” under the guidance of “
H.O.D ” in the partial fulfillment of the requirement for the award of
Bachelor of Business Administration of D.A.V College, Chandigarh .
This is an original piece of work & I have not submitted it earlier
elsewhere.
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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 on
the Primary research. To acknowledge all the people who played a
greate roll for completion of project .
I will like to thank my family members for their consistant
support and co-operation without there help the whole project
would have been difficult to pursue.
I thank my family for encouragement and almighty god
without whom i cannot take this challenege.
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CONTENTS
TABLE OF CONTENTS
1. OUR VISION
2. OUR VALUES
3. INTRODUCTION TO THE INDUSTRY
4. OBJECTIVE OF STUDY
5. INTRODUCTION TO COMPANY
6. RESEARCH METHODOLOGY
Title
Title Justification
→ Significance of the Industry
→ Significance of the Research
→ Research Technique
→ Sampling Methodology
→ Sampling unit
→ Sampling Area
→ Sample Size
7. FACTS AND FINDINGS
8. DATA ANALYSIS AND INTERPRETATION
9. LIMITATIONS
10. RECOMMENDATIONS
11. CONCLUSION
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12. BIBLIOGRAPHY
13. QUESTIONNAIRE
Our Vision
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'The most successful and admired life insurance company, which means that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set the standards in
the industry'..
Our Values
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Values that we observe while we work:
.Integrity
.Innovation
.Customer centric
.People Care One for all and all for ones
.Teamwork
.Joy and Simplicity
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INTRODUCTION
TO THE INDUSTRY
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THE HISTORY OF INDIAN INSURANCE INDUSTRY
Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life
Insurance Company. First attempts at regulation of the industry were made with the introduction
of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were
made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the
power given to the Government to collect statistical information about the insured and the high
level of protection the Act gave to the public through regulation and control. When the Act was
changed in 1950, this meant far reaching changes in the industry. The extra requirements
included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in
such companies to prevent dominant control (to protect the public from any adversarial policies
from one single party), stricter control on investments and, generally, much tighter control. In
1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was
heavily concentrated in urban areas and targeted the higher echelons of society. “Unethical
practices adopted by some of the players against the interests of the consumers” then led the
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Indian government to nationalize the industry. In September 1956, nationalization was
completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It
was 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 life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.
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General Insurance
The General Insurance industry in India dates back to the Industrial Revolution and the
subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the
British brought General Insurance to India, and a similar path was followed in the development
of this industry. A number of private companies were in existence for years and years until, in
1971, the Indian Government decided that the public interest would be served by nationalizing
the industry, merging all the 107 companies into four companies, depending on the sort of
business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company
Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the
United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras
respectively. 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 of
general insurance business.
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1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and
grouped into four companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India
Insurance Company Ltd. GIC incorporated as a company.
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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 the
message of life insurance in the country and mobilise people’s savings for nation-building
activities. 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 in
important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the
country.
The Corporation also transacts business abroad and has offices in Fiji, Mauritius and United
Kingdom. 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 entered
into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension
policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC
recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a healthy
average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia (3.4 per
cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the poverty line, with
50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95 per cent and GIC's
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at 74 per cent are higher than that of global average of 40 per cent. Compounded annual growth
rate 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 as
General Insurance Corporation of India (GIC) was formed by the Central Government in
November 1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign insurers
which were operating in the country prior to nationalization, were grouped into four operating
companies, namely, (i) National Insurance Company Limited; (ii) New India Assurance
Company Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insurance
Company Limited. (However, with effect from Dec'2000, these subsidiaries have been de-linked
from the parent company and made as independent insurance companies). All the above four
subsidiaries of GIC operate all over the country competing with one another and underwriting
various classes of general insurance business except for aviation insurance of national airlines
and crop insurance which is handled by the GIC.
Besides the domestic market, the industry is presently operating in 17 countries directly through
branches or agencies and in 14 countries through subsidiary and associate companies.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN
PERMITTED 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 immense
competition to the on time monopoly of the market LIC. Since the advent of the private players
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in 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 the
years have seen the declining phase in its career. The market share was distributed among the
private players. Though LIC still holds the 75% of the insurance sector but the upcoming natures
of these private players are enough to give more competition to LIC in the near future. LIC
market 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 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.), India’s leading
housing finance institution and The Standard Life Assurance Company, a leading provider of
financial services from the United Kingdom. Their cumulative premium income, including the
first 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 have
been 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 large
forces - Max India Limited, a multi-business corporate, together with New York Life
International, a global expert in life insurance. With their various Products and Riders, there are
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more than 400 product combinations to choose from. They have a national presence with a
network 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 premier
financial powerhouse and prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). The company has a network of about
56,000 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 Mahindra
Bank 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 Life
financial Services of Canada.
 Tata AIG Life Insurance Company Ltd.
 SBI Life Insurance Company Limited
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 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
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The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance
Limited started its operations from March 2001. The company is Head Quartered at Chennai, and
has two Regional Offices, one at Mumbai and another one at New Delhi.
2. Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited
and 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 up
capital 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 Limited
ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank
Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's
second largest bank, while Fairfax Financial Holdings is a diversified financial corporate
engaged in general insurance, reinsurance, insurance claims management and investment
management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company
received regulatory approvals to commence general insurance business in August 2001.
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4. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of the
Murugappa Group & Mitsui Sumitomo.
Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh policies in
its first calendar year of operations. The company has a pan-Indian presence with offices in
Chennai, 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 Tata
Group and American International Group, Inc. (AIG). Tata AIG combines the strength and
integrity of the Tata Group with AIG's international expertise and financial strength. The Tata
Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per
cent 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. Ltd
8. Export Credit Guarantee Corporation Ltd.
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9. HDFC-Chubb General Insurance Co. Ltd.
Marketing of Insurance In India
Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a
sector, which leads to benefits across the full spectrum, from the individual who now have wider
choices, to the economy, which see increased savings, to the infrastructure sector, which can
look forward to long term funding being available. In an under-insured economy, newer channels
of distribution have to be utilized to intensify the reach of insurance both in urban and rural
markets. This will create huge employment opportunities not only within insurance companies
but also as agents and consultants of insurance companies.
Marketing Mix Policies
Different companies can choose to position themselves differently and hence the Marketing Mix
is different. However, there are certain common characteristics that one can cull out from the
possible strategies that companies adopt.
Product:
The development of flexible products to suit individual requirements is what will differentiate
the winners from the also-rans. The key to success is in providing insurance solutions, not
standardized insurance products. The concept of riders/optional benefits has already been a huge
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innovation brought about by the new players, which has led to customization of products for
individual needs. However, companies may differentiate themselves on the basis of product
segments that they choose to focus on and excel in.
Place:
Different companies may however choose different channels and different geographies to focus
on. The channel options are - tied agency force, corporate agents and brokers and this is an area
where different companies will make different choices. Many companies like HDFC Standard
Life are focusing on all channels whereas companies like Max New York Life are focusing on
the tied agency force only. Customer interface will be a key challenge for life insurance
companies and includes every that interaction that the customer has with the company, such as
sales, new business underwriting, policy servicing, premium payments, claim processing and so
on. Technology can play a crucial role in delivering the highest standards of service set by the
company 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 pure
annuities. Here too, service delivery and financial strength will need to be present at a minimum
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acceptable 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 on
generating good investment performance and keeping a tight control on costs help in generating
good long-term maturity value for customers. Norms have been laid down on all of these by
IRDA 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 be
developed. Greater awareness of insurance and the need to have it as a protection tool rather than
as a tax planning measure needs to be appreciated by the Indian people. Various communication
tools including advertising, direct marketing and road shows contribute to all this and different
companies take different approaches on these.
Process:
Cashless settlement: One of the most defining and customer-friendly changes that we’ve seen in
recent years relates to the way claims settlements are made. The advent of the third-party
administrator (TPA) regime has facilitated the transition to the hugely convenient era of cashless
settlement of health and auto insurance claims. TPAs are entities who process claims on behalf
of insurers: the IRDA licenses them after it is satisfied that they have the financial strength, the
trained manpower, the infrastructure and the skills to undertake this activity.
Likewise, with auto insurance, the TPA ties up with garages and authorized service centers for
cashless settlement of auto insurance claims.
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Lower premiums: The spirit of competition and the broadening of the risk experience of
insurance companies have contributed to a fall in premiums over the years. That’s because, other
things being equal, an insurer who covers the lives just of 10 people bears a higher risk than an
insurer who covers the lives of, say, 100 people. Further, a broader base will provide greater
efficiencies on costs such as distribution, management and claims. A broad basing of the
mortality 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 payment
options in order to address this concern. For instance, one now have the option to pay your
premiums upfront, which is then carried forward for the tenure of the policy. The yearly
premiums 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 to
pay your premium on time. Under this, in the event of your not paying the premium, the insurer
dips 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 paid
to cover your risk.
Physical Evidence:
This can play a significant role for marketing in the Indian scenario. Since Internet users are
comparatively lesser than countries such as US, the offline mode will be preferred in India.
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Although the distribution model is largely agent-based, wherever the customer is in contact with
the 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, customer
relationship has to be taken care of in order to maintain the customer base on a long-term basis.
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PREFACE
The liberalization of the Indian insurance sector has been the subject of much heated debate for
some years. The policy makers where in the catch 22 situation wherein for one they wanted
competition, development and growth of this insurance sector which is extremely essential for
channeling the investments in to the infrastructure sector. At the other end the policy makers had
the fears that the insurance premia, which are substantial, would seep out of the country; and
wanted 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 saw
the day of the light thanks to the maturing polity emerging consensus among factions of different
political parties. Though some changes and some restrictive clauses as regards to the foreign
participation 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 multitude
of challenges and opportunities. But the key issues, possible trends, opportunities and challenges
that 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
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flexibility. 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-up
costs-such as those of setting up a conventional distribution network-are large and high-end
niches offer better returns. However, the middle-market segment too has great potential. Since
insurance 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
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
In today’s corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has the
maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of
growth rate. This growth potential attracts me to enter in this sector and HDFC
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Standard Life Insurance Company Ltd has given me the opportunity to work
and 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
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INTRODUCTION
TO THE COMPANY
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COMPANY PROFILE OF
HDFC STANDARD LIFE INSURANCE COMPANY LTD
ABOUT HDFC STANDARD LIFE INSURANCE
HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd.), India's 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.
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• 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)
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• 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 & Poor's as 'strong'
with a rating of A+ and as 'good' with a rating of A1 by Moody's
• 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 2006
HDFC KEYS STRENGHS
FINANCIAL EXPERTISE
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AS A JOINT VENTURE OF LEADING FINANCIAL SERVICES GROUPS, HDFC STANDARD LIFE HAS THE
FINANCIAL EXPERTISE REQUIRED TO MANAGE YOUR LONG -TERM INVESTMENTS SAFELY AND EFFICIENTLY .
RANGE OF SOLUTIONS
WE HAVE A RANGE OF INDIVIDUAL AND GROUP SOLUTIONS , WHICH CAN BE EASILY CUSTOMISED TO SPECIFIC
NEEDS . OUR GROUP SOLUTIONS HAVE BEEN DESIGNED TO OFFER YOU COMPLETE FLEXIBILITY COMBINED WITH
A LOW CHARGING STRUCTURE .
TRACK RECORD SO FAR
OUR GROSS PREMIUM INCOME, FOR THE YEAR ENDING MARCH 31, 2008 STOOD AT RS. 4,859 CRORES AND
NEW BUSINESS PREMIUM INCOME STOOD AT RS. 2,685 CRORES.
THE COMPANY HAS COVERED OVER 9,59,000 LIVES YEAR ENDING MARCH 31, 2008.
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Accolades and Recognition
• Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in
2004.
• Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India number 1
personal finance magazine
BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY HDFC STANDARDS
LIFE INSURANCE
INSURANCE PLANS AVAILABLE
Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in
mind, we have a varied range of Products that you can choose from to suit all your needs. These
will help secure your future as well as the future of your family.
Protection Plans
You can protect 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
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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 Plus
Savings 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, Children's Plan, Unit Linked Young Star,
Unit Linked Young Star Plus, Unit Linked Young Star Plus II.
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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 employee benefit solutions to their employees. We
offer different products for different needs of employers ranging from term insurance plans for
pure protection to voluntary plans such as superannuation and leave encashment.
We now offer the following group products to our esteemed corporate clients:
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Gro
up
Ter
m
Ins
ura
nce
Gro
up
Var
iabl
e
Ter
m
Ins
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nce
Gro
up
Uni
t-
Lin
ked
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Social Product
Development Insurance Plan
Development Insurance plan is an insurance plan which provides life cover to members of a
Development Agency for a term of one year. On the death of any member of the group insured
during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of
the immediate financial needs following their loss.
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e
pi
n
g
p
ol
ic
y
h
ol
d
er
in
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m
at
io
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e
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Tax Benefits
INCOME TAX GROSS ANNUAL HOW MUCH HDFC STANDARD
SECTION 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
Rs37,389
POSSIBLE **
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.
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Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free,
subject to the conditions laid down therein.
RESEARCH
METHODOLOGY
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TITLE:
To determine customer-buying behavior with a focus on market segmentation for HDFC
Standard Life Insurance.
TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with studying the buying pattern in
the insurance industry with a special focus on HDFC Standard Life Insurance. The various
segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels
etc will also studied.
SIGNIFICANCE TO THE INDUSTRY :
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This is a limited study which takes into consideration the responses of 100 people. This data can
be explorated to take in the trends across the industry. The significance for the industry lies in
studying 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 to
guide 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 and
also provide marketing ways, methods of HDFC Standard Life insurance.
SAMPLING METHODOLOGY
SamplingTechnique:
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study
was done in order to know the accuracy of the Questionnaire. The final Questionnaire was
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arrived only after certain important changes were done. Thus the sampling came out to be
judgemental and convenient.
Sampling Unit:
The respondants who were asked to fill out questionnaires are the sampling units. These
comprise 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 different
regions of Delhi,NCR due to time constraints.
Sampling Area :
The area of the research was Delhi,NCR.
LIMITATIONS OF THE RESEARCH
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1. The research is confined to a certain parts of DELHI and does not necessarily shows a
pattern applicable to all of Country .A small number of 100 also does not show the pattern of
the whole city.
2. Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.
3. In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the
findings.
4. The training period was very less.
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CHAPTER 6
DATA ANALYSIS AND
INTERPRETATION
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DATA ANALYSIS & INTERPRETATION
DATA REPRESENTATION OF PEOPLE WHO ARE EMPLOYED
 DATA GIVES EMPLOYMENT STATUS OF THE INSURED RESPONDENTS.
Table 1
NO.OF
EMPLOYMENT SHARE (%)
RESPONDENT
YES 92 92
NO 8 8
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INTERPRETATION
The data shows that the majority of respondents are employed which would depict the better
picture 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
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1OL-15L 20 20
15L-20L 10 10
INCOME
10%
20% 45%
>5 LAKCS
5-10LACS
10-15 LACS
25% 15-20 LACS
INTERPRETATION
It can be noted that maximum amount of people (45%) fall in the category of > 5 lacks slot .
 DATA SHOWS PEOPLE HAVING INSURANCE
Table 3
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RESPONSE NO. OF SHARE (%)
RESPONDENTS
Yes 70 70%
No 30 30%
Fig 7.6
INTERPRETATION
• 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.
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• 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
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INTERPRETATION
 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
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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 COMPANIES
Table 6
CATEGORY NO. OF SHARE (%)
RESPONDENTS
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PRIVATE 55 55%
GOVERNMENT 45 45%
INTERPRETATION
There are more number of people employed in Private sector(55%) as compared to 45% of
people in govt. Sector.
 DATA GIVES PREFERECE OF RESPONDENTS OF INSURANCE COMPANIES
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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 7.1
INTERPRETATION
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 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 8
REASON NO.OF
SHARE (%)
RESPONDENT
EASY ACCESSABILITY 40 40
MORE SECURITY 20 20
BETTER SECURITY 20 20
MORE INFORMATION &
10 10
HELP
CUSTOMER
10 10
ORIENTATION
TOTAL 100 100
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REASON
10%
10%
40% EASY ACCESSABILITY
MORE SECURITY
20%
BETTER SECURITY
MORE INFORMATION
20%
CUST. ORT
INTERPRETATION
It can be noted that the reason for maximun people for prefering the policy is easy accessability
followed 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
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NO. OF YEARS
10%
20% 45%
>5 YRS
5-10YRS
10-15YRS
25% 15Yrs<
INTERPRETATION
It can be noted that maximum amount of people look for short term insurance as compared to
10% of those who go for long term.
 DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX
Table 10
RESPONSE NO. OF SHARE (%)
RESPONDENTS
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Paying tax 100 100%
Not paying tax - 0%
Total 100 100%
Fig 7.11
INTERPRETATION
Of the sample size of 100 respondents, all the respondents are paying tax
 DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX SAVING
Table 11
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INVESTMENTS NO. OF SHARE (%)
RESPONDENTS
LIC 51 51%
NSC 33 33%
Bonds 32 32%
PPF 25 25%
PF 21 21%
EPF 11 11%
Fig7.12
INTERPRETATION
• 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.
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 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
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INTERPRETATION
• 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
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Fig 7.4
INTERPRETATION
 75% of the respondents have Life Insurance Policy while 45% have both. (The % is
calculated out of 280 positive response)
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CHAPTER 7
FACTS & FINDINGS
FACTS/FINDINGS
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1.As the people think that insurance is a tool to protect their family & a tax saving device. They
are aware of the fact & realizing its, importance. The company should try to expand & build up
its 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 meet
the demands & expectations of the public. Because the entrance of private players will increase
the 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 they
pay greater attention to the service part provided to their customer and thereby forming a long
and trusted relationship.
4.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 trap these customers.
5. 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.
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RECOMMENDATIONS
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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.
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• 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.
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CONCLUSION
CONCLUSION
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Our exhaustive research in the field of Life Insurance threw up some intresting trends which can
be seen in the above analysis. A general impression that we gathered during Data collection was
the immense awareness and knowledge among people about various companies and their
insurance products. People are beginning to look beyond LIC for their insurance needs and are
willing to trust private players with their hard earned money.
People in general have been impressioned by the marketing and advertising campaigns of
insurance companies. A high penetration of print , radio and Television ad campaigns over the
years is beginning to have it’s impact now.
Another heartning trend was in terms of people viewing insurance as a tax saving and investment
instrument as much as a protective one. A very high number of respondants have opted for
insurance for such purposes and it shows how insurance companies ahve been successful to
attract public money in recent times.
The general satisfaction levels among public with regards to policy and agents still requires
improvement. But therein lies the oppurtunity for a relative new comer like HDFC Standard Life
Insurance Company Ltd . LIC has never been known for prompt service or customer oriented
methods and HDFC Standard Life can build on these factors.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
1. 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
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WWW.INSURANCE.IND.COM
 WWW.HDFCINURANCE.COM
3. REPORTS/ARTICLES REFFERED:
REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY….
Dec2008.
BRIEF PROFILE OF LIC, INDIA…Dec 2008.
REPORT: COPING WITH COMPETITION…Mar 2009
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ANNEXURES
AND
QUESTIONNAIRE
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QUESTIONNAIRE
1. ARE YOU EMPLOYED?
YES NO
2. YOUR MONTHLY INCOME?
a)<5L b)5L-10L c)10L-15L d)15L<
3. DO YOU HAVE ANY INSURANCE POLICY?
YES NO
4. WHICH INSURANCE POLICY DO YOU HAVE?
LIFE NON-LIFE BOTH
5. WHAT IS YOUR PURPOSE OF TAKING AN INSURANCE COVER?
(RANK THEM)
a) COVER FUTURE UNCERTAINITY
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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 OVER
GOVERNMENT COMPANIES ?
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YES
NO
8. 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 ORIENTATION
10. YOUR INSURANCE PLAN INSURES YOU FOR HOW MANY YEARS ?
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(Please Tick)
a) >5Yrs b) 5-10 Yrs c) 10-15 Yrs d) 15Yrs<
11. DO YOU PAY TAXES?
YES NO
12. WHERE HAVE YOU INVESTED FOR TAX SAVING?
(RANK THEM)
a) LIC
b) NSC
c) BONDS
d) PPF
e) PF
f) EPF
13. ARE YOU SATISFIED WITH THE POLICY?
a) SATISFIED
b) NOT SATISFIED
c) NO COMMENTS
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14 . WOULD YOU BE INTERESTEDIN AVALING ANY OF THE FOLLOWING
FINANCIAL PLANNING SERVICES?
a) WEALTH CREATION PLANS
b) INVESTMENT PLANS
c) CHILDREN FUTURE PLANS
d) TAX PLANNING
e) RETIREMENT PLANS
f) RISK MANAGEMENT & INSURANCE
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