Ankita garg docunment of hdfc

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Ankita garg docunment of hdfc

  1. 1. SUMMER TRAINING PROJECT ON A STUDY ON PRODUCTS OF H.D.F.C LIFE Submitted in partial fulfillment of the requirement For the award of MASTERS DEGREE IN BUSINESS ADMINISTRATION (Session 2012-2014) Under Supervision of: Submitted By: MR Yoginder Kataria ANKITA GARG (Associate Professor) ROLL NO:12209 PANIPAT INSTITUTE OF ENGINEERING & TECHNOLOGY KURUKSHETRA UNIVERSITY, KURUKSHETRA
  2. 2. DECLARATION I, Ankita student of MBA IIIrd Semester, studying at Panipat Institute of Engineering & Technology Samalkha hereby declare that the summer training report on “A Study On Products Of HDFC LIFE” submitted to Kurukshetra University, Kurukshetra in partial fulfillment of Degree of Master’s of Business Administration is the original work conducted by me. The information and data given in the report is authentic to the best of my knowledge. This summer training report is not being submitted to any other University for award of any other Degree, Diploma and Fellowship ANKITA GARG 12209
  3. 3. ACKNOWLEDGEMENT It is my pleasure to be indebted to various people, who directly o r i n d i r e c t l y c o n t r i b u t e d i n t h e d e v e l o p m e n t o f t h i s w o r k a n d w h o influenced my thinking, behavior, and acts during the course of study. . I am thankful to Mr. Manjeet Sharma (ASM HDFC Life) for his support, cooperation, and motivation provided to me during the training for constant inspiration, presence and blessings. I also extend my sincere appreciation to Mr. Vikram Sir w h o p r o v i d e d h e r v a l u a b l e s u g g e s t i o n s a n d p r e c i o u s t i m e i n accomplishing my project report. Lastly, I would like to thank the almighty and my parents and my teacher Mr Yoginder Kataria for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work. ANKITA GARG 12209
  4. 4. TABLE OF CONTENTS SERIAL NUMBER INDEX OF CONTENTS PAGE NUMBER 1 Chapter-1 Introduction 1.1 Introduction to industry 1.2 Introduction to company 1.3 Introduction to topic 1-10 11-21 22-27 2 Chapter-2 Literature review 28-31 3 Chapter-3 Research methodology 32-34 4 Chapter-4 Data analysis and interpretation 35-51 5 Chapter-5 Suggestion Conclusions 52 53 6 Chapter-6 References Websites Books Appendix 54 55-57 58-61
  5. 5. LIST OF TABLES Table No. Contents Page No. 1 Age group of surveyed respondents 35 2 Gender classification of surveyed respondents 36 3 Customer profile 38 4 No of policy purchased by customer 39 5 Annual premium paid by individual for life insurance 41 6 Popular life insurance plans of HDFC LIFE 42 7 Awareness of unit linked plan 43 8 Consumer willingness to spend on life insurance premium 44 9 Ideal policy term 46 10 Factor that motivate respondents to purchase insurance policy 48 11 Preferred company type of the respondents 49 12 Minimum expected return investnment 50
  6. 6. LIST OF FIGURES Table No. Contents Page No. 1 Age group of surveyed respondents 36 2 Gender classification of surveyed respondents 37 3 Customer profile 38 4 No of policy purchased by customer 40 5 Annual premium paid by individual for life insurance 41 6 Popular life insurance plans of HDFC LIFE 42 7 Awareness of unit linked plan 43 8 Consumer willingness to spend on life insurance premium 45 9 Ideal policy term 46 10 Factor that motivate respondents to purchase insurance policy 48 11 Preferred company type of the respondents 49 12 Minimum expected return investnment 50
  7. 7. EXECUTIVE SUMMARY HDFC Standard Life is the most trusted life insurance company in the India. Standard Life is the largest insurer in the UK and is the 7th largest company in the world. In India, the company is marketing life insurance products and unit linked investment plans. From my research at HDFC- life, I found that the company has a lot of competition from other private insurers like ICICI Prudential, Aviva, Birla Sun Life and Tata AIG. It also faces competition from LIC. To compete effectively HDFC-SL could launch cheaper and more reasonable products with small premiums and short policy terms (the number of year’s premium is to be paid). The ideal premium would be between Rs. 5000 – Rs. and an ideal policy term would be 10 – 20 years. HDFC-life must advertise regularly and create brand value for its products and services. Most of its competitors like ICICI, Reliance and LIC use television advertisements to promote their products. The Indian consumer has a false perception about insurance – they feel that it would not benefit them if they do not live through the policy term. Nowadays however, most policies are unit linked plans where a customer is benefited. The insurance market in India as it has around the globe. even if their death does not occur during the policy term. This message should be conveyed to potential customers so that they readily invest in insurance. Family responsibilities and high returns are the two main reasons, people invest in insurance. Optimum returns of 16 – 20 % must be provided to consumers to keep them interested in purchasing insurance. On the whole HDFC-SL is a good place to work at. Every new recruit is provided with extensive training on unit linked funds, financial instruments and the products of HDFC Standard Life. This training enables an advisor/ sales manager to market the policies better. HDFC-SL was ranked 5 in the Best Places to Work survey. The company should try to create awareness about itself in India. In the global market it is already very popular. With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, HDFC-SL would be all set to capture
  8. 8. INDUSTRY PROFILE
  9. 9. THE INSURANCE INDUSTRY IN INDIA AN OVERVIEW With the largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion (for the financial year 2004 – 2005). Together with banking services, it adds about 7% to the country’s Gross Domestic Product (GDP). The gross premium collection is nearly 2% of GDP and funds available with LIC for investments are 8% of the GDP. Even so nearly 80% of the Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. A large part of our population is also subject to weak social security and pension systems with hardly any old age income security. This in itself is an indicator that growth potential for the insurance sector in India is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and strengthens the risk taking ability of individuals. It is estimated that over the next ten years India would require investments of the order of one trillion US dollars. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain the economic growth of the country.
  10. 10. PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA The life insurance industry in India grew by an impressive 36%, with premium income from new businesses at Rs. 253.43 billion during the fiscal year 2005-2006. Though the total volume of LIC's business increased in the last fiscal year (2005-2006) compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private insurers increased their market share from about 13% to about 22% in a year's time. The figures for the first two months of the fiscal year 2006-07 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75 percent, while the private players have grabbed over 24 percent. With the opening up of the insurance industry in India many foreign players have entered the market. The restriction on these companies is that they are not allowed to have more than a 26% stake in a company’s ownership. Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian market and 14 private life insurance companies have been granted licenses. Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. Some of these products include investment plans with insurance and good returns (unit linked plans), multi – purpose insurance plans, pension plans, child plans and money back plans.
  11. 11. COMPANY PROFILE
  12. 12. HDFC LIFE INSURANCE LTD. The partnership: HDFC is an organization that strives for excellence, with the twin objective of enhancing customer satisfaction and shareholder value. The standard life assurance company was present in the Indian life insurance market from 1847 to 1938 when agencies were setup in kolkata and Mumbai. Each of the JV player is highly rated and been conferred with many awards .HDFC is rated ‘AAA’ by both CRISIL and ICRA. Similarly, standard life is rated ‘AAA’ both by moody’s and standard and poor’s. This reflects the efficiency with which HDFC and standard life manage their asset base of Rs15000 Cr and Rs600000 Cr respectively. HISTORY OF EVENTS 1 JANUARY 1995: HDFC life first came together for a possible joint venture, to enter the life insurance market. At the outset it was clear that both co. shared similar values and beliefs and a strong relationship quickly formed. 2 OCTOBER 1995: The companies signed a three year joint venture agreement around this time Standard life purchased a 5% stake in HDFC, further strengthening the relationship. 3 OCTOBER 1998: The joint venture agreement was renewed and additional resource made available, around this time standard Life purchased 3% of Infrastructure Development Finance company Ltd (IDFC) Standard life also started to use the services of the HDFC Treasury department to advise them upon their investments in India.
  13. 13. 4 JANUARY 2000: An expert team form the UK joined a handpicked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% Stake in HDFC bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. 5 14th AUGUST 2000: The company was incorporated under the name :HDFC STANDARD LIFE INSURACE COMPANY LIMITED: their ambition from as far back as October 1995 was to be the first private company to re-enter the life insurance market in India. 6 23rd OCTOBER 2000: HDFC Standard Life became the” First life insurance company in the private sector: TO be granted a certificate to Registration by the Insurance Regulatory and Development Authority to transact life insurance business in India. HDFC are the main shareholders in HDFC Life, with81.4%, while standard life owns 18.6%. HDFC Life has a long and close relationship built upon shared valued and trust. The ambitions of HDFC life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured. HDFC Life Insurance Company has been signed on by Blue Star to provide insurance cover to its 1805 employees across India and overseas. HDFC life Insurance is on of the leading players in the group insurance segment of the life insurance business. Its group business has grown significantly since inception and now covers over 25,000 lives across the entire industry spectrum including software, FMCG, Pharmaceutical
  14. 14. banking consultancy, BPO retailing and consumer electronics. MANAGEMENT TEAM OF THE H.D.F.C MANAGEMENT TEAM MR.AMITABH CHAUDHARY MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER MS VIBHA PADALKAR EXECUTIVE DIRECTOR AND CHIEF FINANCIAL OFFICER MR.SRINIVASAM PARTHASARATHY CHIEF ACTUARY AND APPOINTED ACTUARY Mr. Prasun Gajri Chief Investment Officer Mr. Rajendra Ghag Senior Executive Vice President & Chief Human Resource Officer Mr. Anup Rau Senior Executive Vice President Mr. Sanjay Tripathy Executive Vice President Mr. Subrat Mohanty Executive Vice President Mr. Sanjeev Kapur Executive Vice President Brief Profile of The Management Team
  15. 15. Mr. Amitabh Chaudhry Managing Director and Chief Executive Officer Mr. Amitabh Chaudhry is the Managing Director and Chief Executive Officer of HDFC Life. Before joining HDFC Life in January 2010, he was the Managing Director and CEO of Infosys BPO and was also heading an Independent Validation Services unit in Infosys Technologies. Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technology and Science, Pilani and MBA in 1987 from IIM, Ahmedabad. Ms. Vibha Padalkar Executive Director and Chief Financial Officer Ms. Vibha Padalkar is the Executive Director and Chief Financial Officer at HDFC Life. Ms. Padalkar joined HDFC Life in August 2008 after a seven year stint as Executive Vice President-Finance at WNS Global Services; a NYSE listed leading global business process outsourcing company. Vibha's key achievement during her tenure at WNS was to lead a team that successfully completed the Group's IPO on the New York Stock Exchange in a short span of six months. Prior to WNS, Vibha was with Colgate Palmolive India, including a short posting to the group's New York headquarters.
  16. 16. Mr. Srinivasan Parthasarathy Chief Actuary and Appointed Actuary Mr. Srinivasan Parthasarathy is the Chief Actuary and Appointed Actuary of HDFC Life. s Mr. Parthasarathy joined HDFC Life in 2011 from Canara HSBC Life Insurance with 18 years of experience in Life Insurance and Pensions in both India and the UK . Mr. Prasun Gajri Chief Investment Officer Mr. Prasun Gajri is the Chief Investment Officer of HDFC Life. He holds a PGDM from IIM Ahmedabad and is also a CFA Charterholder. Mr. Rajendra Ghag Senior Executive Vice President & Chief Human Resource Officer Mr. Rajendra Ghag is the Senior Executive Vice President & Chief Human Resource Officer at HDFC Life. Mr. Ghag joined HDFC Life in September 2009 and has been spearheading the Human Resource function since then. Before HDFC Life, he was associated with DHL Express as Head of HR for India and Senior Advisor - Quality and Processes (First Choice Programme) for South Asia. He holds a Masters Degree in Personnel Management apart from his degree in Commerce and Law.
  17. 17. Mr. Anup Rau Senior Executive Vice President Mr. Anup Rau is the Senior Executive Vice President of HDFC Life. He is a Post Graduate in Management from University of Mumbai (1998) and a Graduate in Economics from University of Delhi (1995). Mr. Sanjay Tripathy Executive Vice President Mr. Sanjay Tripathy is the Executive Vice President responsible for Marketing, Product and Direct Channels at HDFC Life. Mr. Tripathy joined HDFC Life in 2004 and has been responsible for Direct Sales Channels, Marketing Strategy, Brand Planning, Advertising, Communication & Media, Customer Insights, New Product Development, Product Life Cycle Management, Online and Digital Strategy, E-Commerce, Customer Analytics, & Corporate communication. He started his career with GCMMF Ltd. in 1992.. He holds a Management degree from IRMA and he is also a member of the Technical Committee of Indian Readership Survey (IRS) at Media Research Users Council (MRUC)
  18. 18. Mr. Subrat Mohanty Executive Vice President Mr. Subrat Mohanty is the Executive Vice President responsible for Strategy, Customer Relations, Persistency and Technology at HDFC Life. Mr. Mohanty joined HDFC Life in 2010 and has led the strategic themes and transformation initiatives of the organization during a fast changing industry environment. . He holds a bachelor's degree in Mechanical Engineering from NIT Rourkela and an MBA from Indian Institute of Management, Calcutta. Mr. Sanjeev Kapur Executive Vice President Mr. Sanjeev Kapur is the is the Executive Vice President of HDFC Life. At HDFC Life, Mr. Kapur heads the Institutional Sales and HNI Sales functions. He has been associated with HDFC Life since inception Mr. Kapur is A.C.A from Institute of Chartered Accountants
  19. 19. COMPETITIOR PROFILE
  20. 20. COMPETITOR NAME : COMPETITOR SHARE COMPETITOR NAME COMPETITOR SHARE TATA AIG 3% MET LIFE 3% AVIVA 3% BHARTI AXA LIFE 16% ICICI 29% HDFC LIFE 9% BAJAJ 20% BIRLA SUN LIFE 5% SBI LIFE 12%
  21. 21. REGULATORY BODY IRDA IRDA Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body which regulates and develops the insurance industry in India. It was constituted by
  22. 22. a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999 and duly passed by the Government of India. The agency operates its headquarters at Hyderabad, Andhra Pradesh where it shifted from Delhi in 2001. The Insurance regulatory and Development Authority (IRDA), batted for a hike in the foreign direct investment (FDI) limit to 49 per cent in the sector from the present 26 per cent. “I am in favor of hike in the FDI limit for the insurance sector. Unless we go for 49 per cent, we will not have the kind of capital required to underpin the growth of the industry. This sector requires a lot of money,’’ IRDA Chairman J. Hari Narayan said on the sidelines of a summit here. The Insurance Laws (Amendment) Bill has been pending before Parliament for about four years as there has been no consensus among political parties on the issue of raising the FDI limit to 49 per cent. Coming under pressure from its allies, the UPA II government, in May this year, had postponed a decision on raising the FDI limit in the sector to 49 per cent. Earlier, Mr. Hari Narayan said the IRDA would develop ten standard products in consultation with industry bodies which could be launched by insurance companies without seeking the regulatory nod. “We will have to work closely with the Life Insurance Council and the General Insurance Council to see if we can develop such products,’’ he added. The insurance regulator said the persistence level was very low in the industry and there was a need to bring in complete understanding of the market and insurance companies. The persistence level refers to client retention by insurance companies. He said `Use and File’ would not be in the general interest of the policy-holders since the persistence ratio was high History The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra Committee report (1994) which recommended establishment of an independent regulatory authority for insurance sector in India. Later, It was incorporated as a statutory body in April, 2000. The IRDA Act, 1999 also allows private players to enter the insurance sector in India
  23. 23. besides a maximum foreign equity of 26 per cent in a private insurance company having operations in India. It serves as an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith. IRDA role is to protect rights of policy holders & they provides registration certification to life insurance companies & responsible for renewal, modification, cancellation & suspension of this registered certificate. IRDA The acronym for the Insurance Regulatory and Development Authority of India, it is the apex body overseeing the insurance business in India. It protects the interests of the policyholders, regulates, promotes and ensures orderly growth of the insurance in India. News on IRDA. IRDA slaps fine of Rs 3.10cr on Bajaj Allianz Life 21-08-2013| Source:PTI Insurance regulator IRDA today imposed a hefty penalty of Rs 3.10 crore on Bajaj Allianz Life Insurance for violation of various norms, including those related to early-death claims and group IRDA formulates new rules for banks to be insurance brokers Insurance Regulatory Development Authority (IRDA) formulated new set of rules for banks to
  24. 24. act as insurance brokers . Reliance Life welcomes new IRDA regulations Reliance Life Insurance Company, a part of Reliance Capital, today welcomed new regulations announced by IRDA that allows banks to become licensed insurance brokers and sell products of multiple life IRDA eases premium payment mode for policyholders Insurance Regulatory and Development Authority (IRDA) on Wednesday directed all insurance companies to allow policyholders who are paying premium through the Electronic Clearing System (ECS HC directs insurance regulator to issue guidelines on claim The Bombay High court today directed Insurance Regulator and Development Authority (IRDA) to issue guidelines to the Insurance companies to come out with a pre-packaged compensation for 42 ailments
  25. 25. Vission: “The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the vest values for money, and easiest the standards in the industry, In short, “ Them most obvious choice for all. ” MISSION:- HDFC standard Life aims to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like: 1 Customer Service of the highest order.
  26. 26. 2 Value for money for customers. 3 Professionalism in carrying out business. 4 Innovative products to cater to different needs of different costumers 5 Use of technology to improve service standard. 6 Increasing market Share. VALUES: • Integrity • Innovation • Customer centric. • People care. • Team work OBJECTIVES OF THE STUDY
  27. 27. OBJECTIVES OF THE STUDY: Main objective: To know the products of H.D.F.C Life and analyse & interpret the products of H.D.F.C Life To suggest additions to the current product portfolio. Sub objective: 1 To find the market share of various life insurance in India. 2 To recognize the popular insurance plans. 3 To showcase the influence of advertising. 4 To suggest ideal policy term and premium for insurance. 5 To showcase the consumers’ willingness to spend on life insurance.
  28. 28. 6 To showcase the factors that motivates purchase of insurance policies. 7 To understand the type of company preferred for investment. 8 To understand the awareness level of consumers about unit linked insurance plans (ULIP’s). INTRODUCTION TO TOPIC
  29. 29. Insurance – An Introduction Insurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. • A system under which individuals, businesses, and other organizations or entities, in exchange for payment of a sum of money (called a premium), are guaranteed
  30. 30. compensation for losses resulting from certain perils under specified conditions in a contract. • A contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium. Definitions: 1.General definition: In the words of John Magee, “Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals.” 2.Fundamental definition: In the words of D.S. Hansell, “Insurance accumulated contributions of all parties participating in the scheme.” 3.Contractual definition: In the words of justice Tindall, “ Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.” Characteristics of Insurance: ♦ Sharing of risks ♦ Cooperative device ♦ Evaluation of risk ♦ Payment on happening of a special event ♦ The amount of payment depends on the nature of losses incurred.
  31. 31. ♦ The success of insurance business depends on the large number of people insured against similar risk. ♦ Insurance is a plan, which spreads the risk and losses of few people among a large number of people. ♦ The insurance is a plan in which the insured transfers his risk on the insurer. ♦ Insurance is a legal contract which is based upon certain principles of insurance which includes, utmost good faith, insurable interest, contribution, indemnity etc. ♦ The scope of insurance is much wider and extensive. Functions of Insurance: Primary functions: 1. Provide protection:- Insurance cannot check the happening of the risk, but can provide for the losses of risk. 2. Collective bearing of risk: - Insurance is a device to share the financial losses of few among many others.
  32. 32. 3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. 4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to certainty. 5. Tax benefit :- Insurance is a source which reduce tax. Secondary functions:- 1. Prevention of losses: - Insurance cautions businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions. 2 .Small capital to cover large risks: - Insurance relives the businessman from security investment, by paying small amount of insurance against larger risks and uncertainty. 3. Contributes towards development of larger industries. Insurance can be defined as assurance for uncertainty. Insurance is about something going wrong. Its’ often about things going right. One of the Wonders of
  33. 33. human nature is that we never believe anything can actually go wrong. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to liberalized market again. Tracking the development in Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. WHY WE NEED INSURANCE Wealth Children’s Marriages Creation and Education
  34. 34. Dying too soon Living too long Living Death Gap Why we need insurance? For passing a happy life we need to full fill some basic needs. Without fulfill these needs no one can survive, these basic needs these are: • Air • Water • Food • Cloths • Shatter • Safety For making the future safe a sensible person invest their money or take insurance plans to cover themselves or their family members and dependents. You don’t know when a casualty is happen and if you are not having any safety cover what will you do and what will happen then. PRODUCTS OF H.D.F.C LIFE
  35. 35. Each of us leads a unique life and so has unique needs. HDFC Standard life offers a range of products and invites you to choose the one that suits you the best. PLAN BENEFIT SAVING PLANS: Endowment Assurance Plan Life Insurance with savings Unit linked endowment plan Life insurance and saving with Choice of investment funds
  36. 36. Children’s plan Financial security for your child Unit linked youngster plus plan Financial security for your child with Choice of investment funds Money back plan Life insurance with savings. INVESTMENT PLANS: Single premium whole of life plan Investment with life insurance PROTECTION PLANS Term assurance plan Life insurance at an affordable price Loan cover term assurance plan Life insurance customized for home loans RETIREMENT PLANS: Personal pension plan Saving for retirement Unit link pension plan Retirement saving with a choice of investment funds. Young star plan: Get maximum advantage of the HDfC YoungStar Super Premium with flexible premium payments, option to customize your plan according to your child's needs, varied choice of funds to save in and security of your child even after your death. Here are some of the features of the plan: • Level of Protection: You have the flexibility to choose any amount as the "Sum Assured" in multiples its age dependent. Less than 45 10 x above 45 7 x annual premium. You can choose between Life Option and Life & Health Option.
  37. 37. • Regular Premiums: Minimum premium is Rs. 15,000 with no limits on maximum premiums. Premiums are to be paid annually only. • Benefit Payment Preference: You can choose from plan options of 'Save Benefit' or 'Save-n-Gain Benefit'. • Policy Term: The minimum policy term is 10 years and maximum is 20 years. The term period of 11 to 14 years is not available. • Age Limit: The minimum age at entry for the Life Option is 18 years and maximum entry age is 65 years. Maximum age at maturity is 75 years. Please refer to the product brochure for term and age limits for other Plan Options. Here are a few other features of the HDFC SL Youngstar Super Premium: • Save Benefit: In case of your unfortunate demise or critical illness, this plan will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums. With Save benefit option of • HDFC SL YoungStar Super Premium, 100% of all the original regular premiums towards your policy will be paid. Any Death Benefit or Critical Illness cover will terminate immediately. On maturity, the beneficiary of the plan will receive the Fund Value. • Flexibility for customization of the plan: You can determine the level of protection you need and choose the sum assured accordingly. Investment funds can be chosen as per your risk and return appetite. • No Medical tests required: You may not be required to go for elaborate medical tests. Filling a short Medical Questionnaire may suffice. Please refer to the product brochure or contact your Relationship Manager for further details. • Choice of funds: Select from a choice of 5 funds with different equity and debt exposures. Do you want to change your Investment Fund Choices at any point? Here are your options. • Switching: You can move your accumulated funds from one fund to another at any given time. • Premium Redirection: You can pay your future premiums with a different selection of funds, as per your requirement. Features:
  38. 38. • Fulfill and protect your child's dream and future needs through your financial support. • Choose any amount as the 'Sum Assured' in multiples of 10 to 40 times of the annual premium. • No elaborate medical procedures required. Benefits: • Create a customized plan depending on the level of protection your child needs. • Choose from two insurance cover options along with benefit payment preference. • Avail tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961 HDFC Life Click 2 Protect: Looking for an easier way to insure yourself and secure your loved ones happiness? You know that the solution is a term insurance plan and you seek a plan that is convenient to buy and is affordable. Your search ends here. HDFC Life is happy to present the perfect plan for your protection needs HDFC Life Click 2 Protect! HDFC Life Click 2 Protect is a term insurance plan. This plan provides for a payment of a lump sum in the event of your unfortunate death during the policy term.
  39. 39. Features: Advantages: • Buy this plan at click of button , anytime & anywhere • High cover at a very nominal cost. • Flexibility to choose the Sum Assured and policy term • Attractive premium rates for Non tobacco user and those with healthier lifestyle. • Tax benefits under sections 80Cand 10(10D) of Income Tax Act, 1961. Why choose this product? ' With profits ' Insurance plan Choice of premium payment options: monthly, quarterly, half-yearly and yearly Lump sum payment to your family in case of your unfortunate demise Choose your Maturity Benefit Option: • Enhanced Cash Option • Enhanced Cover Option
  40. 40. Sampoorn Samridhi Insurance Plan: HDFC Life Sampoorn Samridhi Insurance Plan is a 'With Profits' insurance plan that offers financial protection to your family when they need it the most. Now ensure a life of respect and dignity for you and your family even in your absence! Features: • Bonuses: Reversionary bonus will be declared. Once added they are guaranteed to be payable on earlier death or maturity. Terminal and interim bonus if declared will be also added. • Term & Premiums: Minimum policy term is 5 years. Maximum policy term is 40 years. Minimum entry age is 18 years. Maximum entry age is 60 years. Maximum age at maturity is 75 years. The premiums depend on the policy term chosen. You can pay premium annually, half yearly, quarterly or monthly. Minimum annual premium is Rs. 12000 for annual, Rs.6000 for Half yearly, Rs. 3000 for Quarterly and Rs. 1000 for monthly for term of 10 years and above. • Maturity Benefit: Choice of Maturity Options: Enhanced Cover Option that offers life cover till 99 years or Enhanced Cash Option that offers Enhanced Terminal Bonus on maturity. • High Sum Assured Discount: Get 5% discount on basic premium for Sum assured of 5 Lakhs and above. Benefits: • Financial protection to your loved ones by way of a lump sum payment in case of your unfortunate demise during the policy term. Sum assured plus attached bonuses will be
  41. 41. paid to the nominee. In case of death due to accident, an additional Sum Assured will be paid. The policy will terminate and no further benefits will be payable. • Choice of Maturity Benefit Option- on survival till maturity , you can choose maturity benefit option: o o Enhanced Cash Option: Sum Assured + Reversionary Bonus +any interim bonus + any terminal bonus + Enhanced Terminal Bonus. Policy terminates and no further benefits are payable. o Enhanced Cover Option: Sum Assured + Reversionary Bonus + any Interim bonus + any Terminal Bonus payable on maturity + Additional Sum Assured on unfortunate death of life assured up to age of 99 years. New Money back plan On completion of every 4 years, get a percentage of your Sum Assured as a cash payout Protection to your family by way of lump sum paymentof SUM Assured + Bonuses in case of unfortunate demise within the policy term, above the payouts already made before the death Large Sum Assured discount of 5% on premium for Sum Assured of Rs 5 Lakhs and above Want added financial security for your loved ones?
  42. 42. Secure the future of your loved ones by providing for their financial security. (This will be redirected to the HDFC Term Assurance Plan) (Can be used to cross-sell other products also)
  43. 43. LITERATURE REVIEW The insurance sector is currently in a state of some uncertainty and companies are increasingly conscious of the need to maintain a competitive edge over their commercial rivals while at the same time getting maximum benefits from in-house resources (Abell, 1998). The insurance market is having a tough time. Costs are rising as risk become tougher. But the best risks see high costs of insurance as a reason to leave the market and insure them. The market cycle has been broken. The key now is to understand and manage risks. Alternative risk transfer
  44. 44. techniques could be an answer. But finance directors need to understand the whole issue of risk and risk management much better (Venezian, 2006). The advanced countries have developed the insurance system and made it effective and mandatory – as a result the loss of lives and property is comparatively less. In India, most of the losses suffered in natural disasters are not insured, for reasons such as lack of purchasing power, lack of interest in insurance, theory of karma attitude and ignorance of availability of such covers. Quite large numbers of agencies provide the insurance cover and foreign insurance companies have already ventured in such areas. This implies that the commercial and private sector can also play an essential role in disaster mitigation (Atmanand, 2003). The practice of insuring essentially involves the determination and assignment of risk to individuals. Such determinations are made almost exclusively on the basis of statistical models. As such, the determination of an individual's risk in relation to a particular form of insurance, and thus ultimately to the determination of the cost and availability of that insurance for the individual, is made in relation to her inclusion in certain statistical groups. However, a number of questions, both practical and philosophical, can be raised about the way in which an individual is assessed upon the basis of such statistical modelling. In this paper, I explore some of these issues in relation to questions of fairness. I begin by examining the basic structure of statistical risk assessment for insurance purposes. I argue that the underlying ethical concern involved with such cases involves the manner in which the attributes of the statistical groups used for insurance purposes can be said to fairly represent the individual qua individual. As such, I go on to explore the general philosophical issues involved in applying statistical models to individuals and the fairness of using such applications to make determinations about individuals for insurance purposes(Palmer, 2007). The insurance industry often experiences criticism for unethical and frequently illegal activities. This document suggests that insurers operate in an uncompetitive environment and that the nature of insurer operations leads otherwise ethical individuals in the direction of questionable ethical decisions throughout the operations of an insurance company.(Barrese, 2007).
  45. 45. Explains that derivatives sellers see insurance companies, because of their representation of some of the biggest financial groups, as a prime target worldwide. Goes on to show the part played by insurance companies using derivates. States that there are only 3 areas where options, generally, can be used in the context of investment management for the insurance companies: use by individual fund managers of stock options; transformation of wholesale products into retail products; and the use of options at balance sheet level. Summarizes that large insurance companies need to fit use of equity and bond derivatives within understandable policies (Mariathasan, 2000). In study the influence of five critical factors on service quality in the insurance sector. Having studied the influence of these critical factors, an attempt has been made to obtain a generic solution to enhance the quality of service by proposing a holistic framework of learning organization. As globalization and IT revolution have made the insurance sector highly knowledge-intensive, customer expectations and perceptions have also grown exponentially. Hence, this research is timely and goal-focused (Rodrigues, 2007). Discrimination by the insurance industry against the disabled and victims of violence in the recent cases. Covers suggested changes to the law, outlining the benefits and pitfalls. Identifies genetics and the use of the Internet as new areas for concern and suggests potential legislation in these cases (Kleiner, 1999). Reporting on ongoing research within a major life insurance company, the difficulties in managing a sales force are examined. Contradictions and strains created by the mode of management, particularly affecting the sales force and customers, are explored. It is argued that a “professionalization of selling”, brought about by a combination of strategic human resource management and government legislation (in the form of the Financial Services Act) will considerably improve the conduct and quality of selling in the future (Morgan, 1990). The major results are that although the factors driving the decisions on health insurance participation are basically the same for rural and urban citizens, the participation levels are quite different. The major difference is that urban SHI has higher coverage and urban citizens have higher income, resulting in a much larger urban medical expenditure (Yan, 2010).
  46. 46. Health insurance in India has shown little development. It has not been able to evoke enthusiasm among Indian insurers. Consequently, several reports on Indian health care insurance have been produced. The purpose of this paper is to offer a review of this matter (Gupta, 2007). Insurance companies are now putting into place amended managerial systems. The marketing function is undergoing changes in responsibilities in all these companies. While most companies have key managers who have visions of how markets can be reshaped to give distinct competitive advantages, effecting such changes within existing operating constraints poses major challenges(Johne, 1993). Insurance liabilities are converging with capital markets products (e.g. derivatives and securitizations), thereby increasing the demand for integrated asset and liability management strategies. This article compares the value-added by an integrative approach-based on scenario optimization modelling-relative to traditional risk management methods. The authors present some examples of products offered by the insurance industry in Italy, and apply the results of the analysis to the design of competitive insurance policies (Zenios, 1993). The practical application of enterprise mobilization is the use of a wireless network system and equipment to allow employees to update information on demand. This study employs a case study method, using in-depth interviews of 29 corporate managers and experts to understand the current state of mobilization in the life insurance industry. The study suggests a conceptual framework for mobilization in the life insurance industry, and formulates possible research propositions incorporating a number of variables. The study also suggests a total of ten key success factors for the implementation of mobilization in the life insurance industry (Luarn, 2003). A study conducted which discusses issues common to the pricing of both insurance and finance. These include increasing collaboration between insurance companies and banks, deregulation of various insurance and finance markets, integrated risk management, and the emergence of financial engineering as a new profession. Rather than attempting to give an exhaustive exposition of the issues at hand, the author highlights developments that, from a methodological point of view, offer new insight into the comparison of pricing mechanisms between insurance and finance (Embrechts, 1993).
  47. 47. Independent agent insurers are found to be cost inefficient compared to insurers with other distribution systems, but the independent agent insurers have better revenue efficiency compared to their long counterpart, the exclusive agent insurers. This study also documents that the direct writing system provides higher cost and revenue efficiencies than other distribution systems, although their efficiencies have been deteriorating during the same time period (Bin Kang, 2009). The article describes the forces that drive financial innovation in the insurance industry, as it relates to the convergence between insurance and capital markets. The authors base their analysis on general principles of supply and demand underlying financial intermediation and innovation, e.g., regulation and taxation. They also provide practical examples from both the capital and insurance markets. Finally, the article addresses the costs and benefits of capital markets-based insurance solutions and inherent challenges to future innovation (Laster and Raturi, 1993).
  48. 48. RESEARCH METHODOLOGY RESEARCH DESIGN A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively.
  49. 49. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods. Research : Research is a process of steps used to collect and analyze information to increase our understanding of a topic or issue. It consists of three steps: Pose a question, collect data to answer the question, and present an answer to the question In the broadest sense of the word, the definition of research includes any gathering of data, information and facts for the advancement of knowledge. Research in more detail as "a studious inquiry or examination; especially : investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application of such new or revised theories or laws". Research Design used: Descriptive research design is used in this Descriptive research, is used to describe characteristics of a population or phenomenon being studied. It does not answer questions about how/when/why the characteristics occurred. Rather it addresses the "what" question (What are the characteristics of the population or situation being studied The characteristics used to describe the situation or population are usually some kind of categorical scheme also known as descriptive categories. For example, the periodic table categorizes the elements. Scientists use knowledge about the nature of electrons, protons and neutrons to devise this categorical scheme. We now take for granted the periodic table, yet it took descriptive research to devise it. Descriptive research generally precedes explanatory research. TITLE OF THE STUDY “ A Study On Products Of HDFC Life”. STATEMENT OF THE PROBLEM
  50. 50. This study was undertaken to identify which type of insurance plans HDFC-SL should market to particular market segments in India. A survey was undertaken to understand the preferences of Indian consumers with respect to insurance. While marketing policies the sole duty of an advisor/ agent is to provide insurance plans as per customer requirements. In effect plans (insurance products) should be flexible to suit individual requirements. This research tries to analyze some key factors which influence the purchase of insurance like the term of the policy, the type of company, the amount of annual premium payable (capacity and willingness to spend), risk taking ability and the influence of advertising. Solutions and recommendations are made based on qualitative and quantitative analysis of the data. TYPE OF DATA COLLECTED There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. PRIMARY SOURCES These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection. SECONDARY SOURCES These include books, the internet, company brochures, product brochures, the company website, competitor’s websites etc, newspaper articles etc. SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required
  51. 51. to select a random sample. SAMPLE SIZE The sample size for the survey conducted was 130 . SAMPLING TECHNIQUE Convenience sampling technique was used in the survey conducted.
  52. 52. ANALYSIS INTERPRETATION & FINDINGS ANALYSIS & INTERPRETATION “A Study On Products of HDFC LIFE”
  53. 53. Q1. AGE GROUP OF SURVEYED RESPONDENTS TABLE 1: AGE GROUP OF SURVEYED RESPONDENTS. Age group No. of Respondents 18 - 25 years 62 26 - 35 years 33 36 - 49 years 22 50 - 60 years 12 More than 60 years 2 47% 25% 17% 9% 2% 18 - 25 years 26 - 35 years 36 - 49 years 50 - 60 years More than 60 years Figure 1 AGE GROUP OF SURVEYED RESPONDENTS. INTERPRETATION: From the above chart we find that 47% of the respondents fall in the age group of 18 – 25 years, 25% fall in the age group of 26 – 35 years and 17% fall in the age group of 36 – 49 years. Therefore most of the respondents are relatively young (below 26 years of age). These individuals could be induced to purchase insurance plans on the basis of its tax saving nature and
  54. 54. as an investment opportunity with high return. Q2. GENDER CLASSIFICATION OF SURVEYED RESPONDENTS Table 2GENDER CLASSIFICATION OF SURVEYED RESPONDENTS Particulars No. of Respondents Male 113 Female 17
  55. 55. Gender of the respondents 17 113 0 20 40 60 80 100 120 Male Female No.ofrespondents Male Female Fig ure 2: GENDER CLASSIFICATION OF SURVEYED RESPONDENTS INTERPRETATION: From the above chart we find that113 male respondandts prefer insurance and only 17 female prefer to insurance among 140 respondandts .In these we can anlaysis the female member is less aware in regards of insurance policy Q3. CUSTOMER PROFILE OF SURVEYED RESPONDENTS. TABLE 3 CUSTOMER PROFILE OF SURVEYED RESPONDENTS Customer profile No. of respondents Student 30 Housewife 3 Working Professional 55 Business 24 Self Employed 12 Government service employee 7
  56. 56. 23% 2% 43% 18% 9% 5% Student Housewife Working Professional Business Self Employed Government service employee Figure 3 CUSTOMER PROFILE OF SURVEYED RESPONDENTS INTERPRETATION: From the above chart it can clearly be seen that 43% of the respondents are working professionals, 23% are students and 18% are into business. Therefore the target market would be working individuals in the age group of 18 – 25 years having surplus income, interested in good returns on their investment and saving income tax. Q4. NO OF LIFE POLICIES PURCHASED BY CUSTOMER? : Table 4 NO OF LIFE POLICIES PURCHASED BY CUSTOMER.
  57. 57. LIFE INSURER NUMBER OF POLICIES HDFC STANDARD LIFE 5 BIRLA SUN LIFE 4 AVIVA LIFE INSURANCE 8 BAJAJ ALLIANZ 9 LIC 64 TATA AIG 8 ICICI PRUDENTIAL 14 ING VYSYA 7 BHARTI AXA 3 OTHERS 2 4% 3% 6% 7% 53% 6% 11% 6% 2% 2% HDFC STANDARD LIFE BIRLA SUN LIFE AVIVA LIFE INSURANCE BAJAJ ALLIANZ LIC TATA AIG ICICI PRUDENTIAL ING VYSYA BHARTI AXA OTHERS Figure 4 NO OF LIFE POLICIES PURCHASED BY CUSTOMER. INTERPRETATION:
  58. 58. In India, the largest life insurance company is Life Insurance Corporation of India. It has been in existence in India since 1956 and is completely owned by the Government of India. Today the organization has grown to 2048 offices serving 18 crore policies and has a corpus of over 340000 crore I Q5. ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE? TABLE 5: ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE. Premium paid (p.a.) No. of respondents Rs. 5000 – Rs. 10000 45 Rs. 10001 - Rs. 15000 29 Rs. 15001 - Rs. 24900 19 Rs. 25000 - Rs. 50000 12 Rs. 50001 - Rs. 60000 5 Rs.60001 – Rs. 80000 2 Rs. 80001 - Rs. 100000 3
  59. 59. 39% 25% 17% 10% 4% 2% 3% Rs. 5000 - Rs. 10000 Rs. 10001 - Rs. 15000 Rs. 15001 - Rs. 24900 Rs. 25000 - Rs. 50000 Rs. 50001 - Rs. 60000 Rs.60001 - Rs. 80000 Rs. 80001 - Rs. 100000 Figure 5 ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE INTERPRETATION: From the above chart we find that, 39% of the respondents surveyed pay an annual premium less than Rs. 10001 towards life insurance. 25% of the respondents pay an annual premium less than Rs. 15001 and 17% pay an annual premium less than Rs. 25000. Hence we can safely say that HDFC-SL would be able to capture the market better if it introduced products/plans where the minimum premium starts at Rs. 5000 p.a.
  60. 60. Q6. What kind of insurance policy would suit you best in your current stage of life? TABLE 6: POPULAR LIFE INSURANCE PLANS of HDFC LIFE Type of Plan No. of Respondents Term Insurance Plans 53 Endowment Plans 62 Pension Plans 8 Child Plans 4 Tax Saving Plans 10 39% 45% 6% 3% 7% Term Insurance Plans Endowment Plans Pension Plans Child Plans Tax Saving Plans Figure 6 POPULAR LIFE INSURANCE PLANS of HDFC LIFE
  61. 61. INTERPRETATION: From the above chart we can clearly see that 45% of the respondents hold endowment plans and 39% of the respondents hold term insurance plans. Endowment plans are very popular and serve two purposes – life cover and savings. If the policy holder dies during the policy term nominee gets death benefit I.e, sum assured and accumulated bonus. On survival the policy holder receives the survival benefit with a bonus Q7. AWARENESS OF UNIT LINKED INSURANCE PLANS? TABLE 7: AWARENESS OF UNIT LINKED INSURANCE PLANS Awareness of Unit Linked Plans No. of Respondents Yes 74 No 56 57% 43% Yes No Figure 7 AWARENESS OF UNIT LINKED INSURANCE PLANS
  62. 62. INTERPRETATION: From the chart given above we find that 57% of the respondents are aware of unit linked life insurance plans and 43% are not aware of such plans. These plans should be promoted through advertising. The company can advertise through television, radio, newspapers, bill boards and pamphlets. This would increase awareness and arouse curiosity in the minds of the consumer which would enable the company to market its products more effectively. Unit – linked plans are those where the benefits are expressed in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds. The number of units a customer would get would depend on the unit price when they pay the premium. Q8. How much would you be willing to spend per annum if you were to go for an investment/ insurance plan? TABLE 8: . CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM Willingness to spend on premium No. of respondents Percentage Less than Rs. 6000 20 15% Rs. 6001 - Rs. 10000 35 27% Rs. 10001 - Rs. 25000 54 41% Rs. 25001 - Rs. 50000 20 15% Rs. 50001 - Rs. 100000 2 2%
  63. 63. 0 10 20 30 40 50 60 Less than Rs. 6000 Rs. 6001 - Rs. 10000 Rs. 10001 - Rs. 25000 Rs. 25001 - Rs. 50000 Rs. 50001 - Rs. 100000 Figure 8 CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM INTERPRETATION: From the above graph, we can clearly see that 41% of the respondents would be willing to spend between Rs. 10001 – Rs. 25000 for life insurance. 27 % would be willing to spend between Rs. 6001 – Rs. 10000 per annum. Only 15% would be willing to spend more than Rs. 25000 per annum as life insurance premium.
  64. 64. Q9. . Which according to you is an ideal policy term? (Number of years you would be willing to pay premium TABLE 9: IDEAL POLICY TERM Ideal policy term No. of respondents 3 - 5 years 25 6 - 9 years 20 10 – 15 years 46 16 – 20 years 18 21 – 25 years 12 26 – 30 years 2 More than 30 years 1 Whole life Policy 6 19% 15% 35% 14% 9% 2% 1% 5% 3 - 5 years 6 - 9 years 10 - 15 years 16 - 20 years 21 - 25 years 26 - 30 years More than 30 years Whole life Policy Figure 9 IDEAL POLICY TERM
  65. 65. INTERPRETATION: From the chart given above it can be seen that 35% of respondents prefer a policy term of 10 – 15 years, 19% prefer a term of 3 – 5 years and 15% prefer a term of 6 – 9 years. This means that HDFC-SL could introduce more plans wherein the premium paying term is less than 15 year. Q10. What motivates you to purchase insurance/ investment plans? TABLE 10; FACTORS THAT MOTIVATE RESPONDENTS TO PURCHASE INSURANCE. Parameter No. of Respondents Advertisements 17 High returns 42 Advice from friends 23 Family responsibilities 45 Others 8
  66. 66. 13% 31% 17% 33% 6% Advertisements High returns Advice from friends Family responsibilities Others Figure 10; FACTORS THAT MOTIVATE RESPONDENTS TO PURCHASE INSURANCE. INTERPRETATION: From the chart above it can be seen that 33% of the respondents purchase life insurance to secure their families, 33% take life insurance to get high returns, 17% purchase insurance on the advice of their friends and 13% purchase insurance because of the influence of advertisements. .
  67. 67. Q11 In which kind of company would you prefer to make a purchase of insurance? TABLE 11: PREFERRED COMPANY TYPE OF THE RESPONDENTS Type of Company No. of Respondents Percentage Government Owned Company 67 47% Public Limited Company 33 23% Private Company 26 18% Foreign Company 17 12% 0 10 20 30 40 50 60 70 80 Government Owned Company Public Limited Company Private Company Foreign Company Figure 11: PREFERRED COMPANY TYPE OF THE RESPONDENTS INTERPRETATION: From the graph above we find that 47% of the respondents preferred to purchase insurance from a government owned company, 23% of the respondents preferred to purchase insurance from a public limited company and only 12% of the respondents preferred a foreign based company. HDFC-SL could be promoted as an essentially “Indian” company with a foreign tie up. Its tie up with HDFC, a trusted name in an Indian industry, could be used to give a “push” to its products/ services Q12. Typically what kind of returns would you look at from your investments? (Please note:
  68. 68. Higher returns involve greater risk) TABLE 12: MINIMUM EXPECTED RETURN ON INVESTMENT Expected Returns No. of respondents Less than 5% 3 5% - 10% 20 11% - 15% 22 16% - 20% 23 21% - 25% 22 26% - 30% 13 31% - 40% 11 41% - 50% 7 More than 50% 10
  69. 69. 2% 15% 17% 18% 17% 10% 8% 5% 8% Less than 5% 5% - 10% 11% - 15% 16% - 20% 21% - 25% 26% - 30% 31% - 40% 41% - 50% More than 50% Figure 12: MINIMUM EXPECTED RETURN ON INVESTMENT INTERPRETATION: From the above chart it can clearly been seen that 18% of the respondents would like 16 – 20% returns, 17% would like returns between 21 – 25% and 17% would like returns of 11 – 15% on their investments. Therefore the average return on investment should be at least 16 – 20 %.
  70. 70. SUGGESTIONS FOR IMPROVENMENT
  71. 71. SUGGESTIONS FOR IMPROVEMENT: 1 Advertise about the company and its products – it motivates individuals to purchase insurance. 2 Create a positive perception about insurance. 3 Speak about the good features a plan offers like high returns, life cover, tax benefits, indexation, accident cover while prospecting customers. 4 Try to sell the product/plan which the consumer requires and not the plan where the advisors benefit is higher. 5 Improve the efficiency in operations. 6 Bring out policies with small premiums payable for short periods of time – Rs. 5000 – Rs. 10000 per annum for 10 years. 7 Attract the youth of India with higher returns on investment as returns are the motivating factor which influence purchase of insurance. 8 Promote insurance in colleges and corporate houses. 9 Promote HDFC-SL as an Indian Company to build trust. 10 HDFC-SL could have a brand ambassador or a mascot to promote its services. 11 Should have partial withdrawals from the first year onwards. 12 Tap the rural market where there is large potential. 13 HDFC diversify its product portfolio.
  72. 72. CONCLUSION
  73. 73. HDFC-SL is one of the world’s largest and oldest life insurance companies. It has businesses spread out across the globe. It came to India in the year 2002. It currently ranks number 2 amongst the insurers in India (Source: annual premium provided by the company) The company faces a large amount of competition. To sustain itself it must promote its products through advertising and improve its selling techniques. Consumers must be aware of the new plans available at HDFC-SL. The medium of advertising used could be television since most of its competitors use this tool to promote their products. The company must be promoted as an Indian company since consumers seem to have more trust in investing in Indian firms. The unit linked concept must be specifically promoted. The general perception of life insurance has to change in India before progress is made in this field. People should not be afraid to invest money in insurance and must use it as an effective tool for tax planning and long term savings. HDFC-SL could tap the rural markets with cheaper products and smaller policy terms. There are individuals who are willing to pay small amounts as premium but the plans do not accept premiums below a certain amount. It was usually found that a large number of males were insured compared to females. Individuals below the age of 30 (mostly male) were interested in investment plans. This was a general conclusion drawn during prospecting clients
  74. 74. LIMITATIONS OF THE STUDY
  75. 75. LIMITATIONS OF THE STUDY 1 The study was limited only to the District areas. 2 The study was conducted only for a short period of eight weeks. 3 The study is based on the assumption that information provided by the respondents is true. 4 Respondents are less aware for insurance sector 5 Lack of willingness to adopt insurance policy 6 Most of the respondents whom my approach where already having lic policy, they were not wiiling to listen about hdfc plan
  76. 76. BIBLIOGRAPHY
  77. 77. BIBLIOGRAPHY 1 “Products and Services.” HDFC-SL. <http://www.hdfcinsurance.com>. 2 “Historical perspective.” <http://www.wikipedia.com>. 3 Regulatory body “<www.irda.com.in> 4 “Overview." Indiacore. <http://www.indiacore.com>. 5 “Reforms." Wikipedia. <http://www.wikipedia.com>. 6 “Unit Linked Plans." Life insurance Corporation of India. <http://www.lic.com>. 7 “Stock price of HDFC-SL." Money Control. <http://www.money control.com>. “Unit Linked Plans." Tata aig. <http://www.tataaig.com>. 8 “Life Insurance." Bajaj allianz. <http://www.bajajallianz.com/ 9 BagicCorp/index.jsp>. 10 “Life Insurance." ICICI Prudential. <http://www.icici.prulife.com>. 11 Sumathi S., and Saranavel P. 2nd ed. New Delhi: Vikas Publishsing House, 2003. 85- 172. 12 “Convenience Sampling.” Statpac.<http://www.statpac.com>. 13 “Business standard” for data collection
  78. 78. BOOKS AND JOURNALS:- 1. Berle Jr., A., and Means G. (1932), “The modern corporation and private property”, Macmillan, New York. 2. Bhimani A., “The role of a crisis in reshaping the role of accounting”,Journal of Accounting and Public Policy, Volume 27, Issue 6, Pages 444-454, (2008) 3. Cooper, D., “Discussion of towards a political economy of accounting”, Accounting, Organizations and Society , 51, pp. 161–166, (1998) 4. Financial Accounting Standards Board, “Agenda of the meeting of the Financial Crisis Advisory Group”, Baruch College Newman Conference Center, New York, (2009) 5. Hoogervorst, H. (2002), “Learning from the Asian Crisis”, Address to the International Monetary Fund and Financial Committee, Washington, D. C. 6. Hopwood A.G., “The economic crisis and accounting: Implications for the research community”, Accounting, Organizations and Society, Volume 34, Issues 6-7, Pages 797-802, August-October 2009 7. Laux C., Leuz C., “The crisis of fair-value accounting: Making sense of the recent debate”, Accounting, Organizations and Society, Volume 34, Issues 6-7, Pages 826-834, August-October, (2009) 8. Miller, P., Hopper, T., Laughlin, R. (1991), “The New Accounting History: an introduction”, Accounting, Organizations and Society, 16 (56), 395-403 9. Previts, G. J., Merino, B. D. (1979), “A History of Accounting in America”, Ronald Press publication, New York 10. Ray, B., Scapens, R., Theobald, M. (2002), “Research Method & Methodology in Finance &
  79. 79. Accounting”, Thomson, London 11. Rahman, M. Z. (1998), “The role of accounting in the East Asian financial crisis: lessons learned”, Transnational Corporations, 7 (3), 1-52 12. Shehu U.H., (2010), “Global economic crisis a challenge to Accounting profession”, paper presented at International Conference with the theme: Global Financial Crises and African Quest for Development, Ahmadu Bello University, Nigeria 13. Stefanescu C., "Corporate governance” concept in Accponting and Auditing literature – an overview “ante” and “post” financial crisis, Proceedings of the 7th International Conference on Management of Technological Changes 2011(ISBN 978-960-99486-3-0), pp. 749-752 14. “Technical Summary of IAS 8 Accounting Policies”, Changes in Accounting Estimates and Errors, IASB , 01.01.2009 15. Tomkins, C., (1978), “The Development of Accounting”, a discussion paper presented at the Workshop on Accounting in a Changing Social and Political Environment, London.
  80. 80. QUESTIONNAIRE
  81. 81. QUESTIONNAIRE Q1. Age group. 1 18 – 25 years 2 26 – 35 years 3 36 – 49 years 4 50 – 60 years 5 Above 60 years Q2. Classification of Gender regarding awareness of insurance policies. Male Female Q3. Profile of respondent. 1 Student 2 Housewife 3 Working Professional 4 Business 5 Self – Employed
  82. 82. 6 Government Service employee Q4. If yes which company/ company’s insurance policies do you hold? 1 HDFC Standard Life 2 Birla Sun Life 3 Aviva Life Insurance 4 Bajaj Allianz 5 LIC 6 Tata AIG 7 ICICI Prudential 8 ING Vysya 9 Bharti Axa 10 Others (specify name) Q5. What is the approximate premium paid by you annually (in Rupees)? 1 Rs. 5000 – Rs. 10000 2 Rs. 10001 – Rs. 15000 3 Rs. 15001 – Rs. 24900 4 Rs. 25000 – Rs. 50000 5 Rs. 50001 – Rs. 6000 6 Rs. 60001 – Rs. 80000 7 Rs. 80001 – Rs. 100000 8 More than Rs. 100000 ( specify premium) Q6. What kind of insurance policy would suit you best in your current stage of life? 1 Life Insurance 2 Life Insurance and Investment Plans 3 Pension Plans 4 Child Plans 5 Tax saving plans Q7. Are you aware of the new unit linked insurance plans in the market? 1 Yes 2 No
  83. 83. Q8. How much would you be willing to spend per annum if you were to go for an investment/ insurance plan? 1 Less than Rs. 6000 2 Rs. 6001 – Rs. 10000 3 Rs. 10001 – Rs. 25000 4 Rs. 25001 – Rs. 50000 5 Rs. 50000 – Rs. 100000 6 More than Rs. 100000 Q9. Which according to you is an ideal policy term? (Number of years you would be willing to pay premium) 1 3 to 5 years 2 6 to 9 years 3 10 to 15 years 4 16 to 20 years 5 21 to 25 years 6 26 to 30 years 7 More than 30 years 8 Whole life policy Q10. What motivates you to purchase insurance/ investment plans? 1 Advertisements 2 High Returns 3 Advice from friends 4 Family responsibilities 5 Others (specify) Q11. In which kind of company would you prefer to make a purchase of insurance?
  84. 84. 1 Government owned company 2 Public Limited Company 3 Private Company 4 Foreign based company Q12. Typically what kind of returns would you look at from your investments? (Please note: Higher returns involve greater risk) 1 Less than 5% 2 5% - 10 % 3 11% - 15 % 4 16% - 20 % 5 21% - 25% 6 26% - 30% 7 31% - 40% 8 41% - 50% 9 More than 50% Personal Details: Name: Phone: Address Gender: Male Female

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