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Final project


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Final project

  2. 2. ACKNOWLEDGEMENTI would like to thanks to all those who have helped me tremendouslyduring the course of the project.My heartiest thanks are due to many persons for assistance in thisproject to present state. The profound gratitude to our facultiesespecially; Mr. Mohit Maurya for being my guide throughout the completion of this project. Mr. Ashish Jaswani ,sales manager of HDFC standard life Insurance corporation ,Rohini NEW DELHI for clarifying the project which I encountered during the preparation of this project .I would also like to thanks Mr. Deepesh Pal Sr. Channel Manager, forguiding me throughout my project. I also extend my gratitude to otheremployer of HDFC Standard Life Insurance Corporation and myfriends who have me directly or indirectly to complete my project.I also acknowledge the knowledge that I have gained during thepreparation of this project. NIKIT GUPTA 1
  3. 3. DECLARATIONI, NIKIT GUPTA a student of PGDM OF NIILM-CMS,GREATERNOIDA, here by solemnly declare that the project title“SEGREGATION OF HDFC STANDARD LIFE INSURANCECORPORATION” with special reference to HDFC-LIFE ( RohiniBranch, NEW DELHI ) is my original work as all the informationand facts & figure produced in this report is based on my ownexperience & study during my summer training under the departmentof MKT in HDFC-LIFE (Rohini , NEW DELHI).Further I also declare that I have tried to my best to complete thisproject with sincerity, honesty and accuracy .Even then if .anymistake or error has crept in I shall most humble request to reader topoint out those error. Any suggestion regarding this project Reportwill be most welcome. 2
  5. 5. INTRODUCTIONIn spite of theoretical knowledge gained through classroom study, aperson is incomplete if not subjected to practical exposure of realcorporate world and the challenges and problems that one has to faceat the actual work place.In this context the study has been taken to make the person aware ofhappening of the real business world. The project entitled“SEGREGATION OF HDFC STANDARD LIFE INSURANCECORPORATION” with the special reference to HDFC-LIFEINSURANCE has been done in NEW DELHI as a summer trainingpart of MBA program and it helped me in understanding about thepolicies and procedures of a company and how these should beformulate together so that they solve the real purpose. It also gave mea chance to have an interaction with people at real workplace who areworking at different positions with different authorities andresponsibilities.The generosity & the patience of these people for spending theirvaluable time for having discussions and interactions has also been agreat experience for me. The study was made to formulate a manualby collecting relevant information about the contents with the help ofQuestionnaire survey and face to face interaction with the salesDevelopment managers, Business development managers & otherHDFC-LIFE branches employer. The valuable information &suggestions provided by the members of HDFC-LIFE itself.Secondary data was collected from the other manuals provided by themarketing department and website of the company. 4
  6. 6. PURPOSE OF THE PROJECtThe main purpose of the project is to do comparative analysis ofdifferent insurance products, check the awareness level andperception of insurance by the individuals. The project would alsohelp in understanding preference of people regarding private andpublic insurance companies.The main objective of the research is Making comparative analysis between:-  HDFC life insurance with life insurance Corporation of India.  HDFC LIFE insurance with Tata AIG life insurance.  HDFC-LIFE with Birla Sun Life.  HDFC-Life with Bajaj Allianz. To find out the awareness level of insurance . To determine customer preference towards private insurance. Private Companies and public insurance companies. Marketing of different insurance products. 5
  7. 7. Review of literature INSURANCE “Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event”. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. For Example, in a Life Policy, by paying a premium to the Insurer, the family of the insured person receives a fixed compensation on the death of the insured. Similarly, in a car insurance, in the event of the car meeting with an accident, the insured receives the compensation to the extent of damage. It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Type of Insurance Generally insurance is divided into 2 categories1. Life Insurance2. Non Life Insurance Life Insurance: Life insurance provides a monetary benefit to a decedents family or other designated beneficiary, and may specifically provide for income to an insured persons family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. 6
  8. 8. Non-Life Insurance or General Insurance: General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. ADVANTAGES OF INSURANCE: Following advantages of Insurance are: ADVANTAGES OF LIFE INSURANCE1. Protection against risk of untimely death Life insurance is a product, which offers protection against the risk of death the full sum assured is made available under a life assurance policy, whereas under other savings schemes, the total accumulated savings alone will be available.2. Educational requirements and charity The object of insurance may be to serve as a security to educational funds in respect of loans advanced for educational purpose or to provide donations to charitable institutions like hospital and school. 7
  9. 9. 3. Nomination and assignment The life insured can name the person or persons to whom the policy money would be payable in the event of his death .the proceeds of a life insurance policy can be protected against the claims of the creditors of the life insured by effecting a valid assignment of the policy. The beneficiaries are fully protected from creditors expect to the extent of any interest in the policy retained by the insured.4. Loans from the insurance company A policy holder can take a loan from his insurance company against the Security of his life insurance policy provided the terms of the terms of his policy allow such a loan. This loan can be taken usually after a period of 3 years from Commencement of the policy and is a percentage of its surrender value.5. Investment options The unit link products gives comprehensive insurance solutions that cater to an Individual‟s dual need of earning potentially high returns as well as stay for life. Thus, there is an option to invest money in the products that combine the best of insurance and investment. In a volatile market conditions it is possible to secure both as one can hedge the investment with saver investment vehicles that provide a diversified portfolio.6. Tax benefits The Indian income tax act provides tax concessions to the policyholder both on payment of premium and on the maturity amount. Under sec 88 the tax benefits on premium paid by an individual for life insurance policies on his own lifeon the life of spouse children minor or major, including married daughters. Under sec 6 of the married women‟s property act if a married man takes a policy of life insurance on his own life and expenses on the face of it to be for the benefit of his wife or of his wife and children or any of them, then it shall be deemed to be a trust for the benefit of his wife and children or any of them. 8
  10. 10. DIFFERENT INSURANCE COMPANIES:Insurance is an upcoming sector, in India the year 2000 was alandmark year for life insurance industry, in this year the lifeinsurance industry was liberalized after more than fifty years.Insurance sector was once a monopoly, with LIC as the onlycompany, a public sector enterprise. But nowadays the market openedup and there are many private players competing in the market. Thereare fifteen private life insurance companies has entered the industry.After the entry of these private players, the market share of LIC hasbeen considerably reduced. In the last five years the private players isable to expand the market (growing at 30% per annum) and also hasimproved their market share to 18%.For the past five years privateplayers have launched many innovations in the industry in terms ofproducts, market channels and advertisement of products, agenttraining and customer services etc. The various life insurers enteredIndia:-1. Bajaj Allianz Life Insurance Company Limited2. Birla Sun Life Insurance Co. Ltd3. HDFC Standard life Insurance Co. Ltd4. ICICI Prudential Life Insurance Co. Ltd.5. ING Vysya Life Insurance Company Ltd.6. Max New York Life Insurance Co. Ltd7. Met Life India Insurance Company Ltd.8. Kotak Mahindra Old Mutual Life Insurance Limited9. SBI Life Insurance Co. Ltd10. Tata AIG Life Insurance Company Limited 9
  11. 11. 11. Reliance Life Insurance Company Limited.12. Aviva Life Insurance Co. India Pvt. Ltd.13. Sahara India Life Insurance Co, Ltd.14. Shriram Life Insurance Co, Ltd.15. Bharti AXA Life Insurance Company Ltd.16. Future General Life Insurance Company Ltd.17. IDBI Fortis Life Insurance Company Ltd.18. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd19. AEGON Religare Life Insurance Company Limited.20. DLF Pramerica Life Insurance Co. Ltd.21. Star Union Dai-ichi Life Insurance Comp. Ltd.The various other general Insurance Companies are as under:-1. National Insurance Company Limited.2. Reliance General Insurance.3. Star Health Plus Insurance.4. Oriental Insurance Company.5. United India Insurance Company Ltd.6. Bajaj Allianz General Insurance Company Ltd. 10
  12. 12. Top companies in insurance sectorLIC: LIC has the strongest market base in comparison with all the lifeinsurance companies in India, with a total share of about 70% ofmarket share. It is still the leader in life insurance market extending itsservices to more than 200 million people in India.Birla Sun Life: Birla Sun Life Insurance today holds the highestmarket share in private life insurance companies in India. Its marketshare is 8% with various life insurance policies to support.Bajaj Allianz: Bajaj Allianz is the second life insurance company tocapture a market share of about 6.8%. The company provides variouslife insurance policies such as term life, whole life, ULIPs, Pensionplans, children plans, etc.ICICI Prudential Life: ICICI Prudential Life is one of the top privatelife insurance companies in India with a market share of 5.9%offering various life insurance policies.HDFC Standard Life: HDFC Standard Life is yet another private lifeinsurance company in India. Its current market share is 3.65% of thewhole life insurance market in India.Tata AIG Life: Tata AIG Life is also one of the private life insurancecompanies in India. Its market share is 2.1% of Indian life insurancemarket. 11
  13. 13. Market share of different companies Market Share of 3.65% 2.10% 3.55% Different Companies 5.90% LIC 6.80% Birla Sun Life 8% Bajaj Allianz 70% ICICI Prudential Life HDFC Standard Life TATA AIG OthersS.NO COMPANY NAME PERCENTAGE1 LIC 70%2 BIRLA SUN LIFE 8%3 BAJAJA ALLIANZ 6.80%4 ICICI PRUDENTIAL 5.90% LIFE5 HDFC STANDARD 3.65% LIFE6 TATA AIG 2.10%7 OTHERS 3.55% 12
  14. 14. COMPANY PROFILE OF HDFC STANDARD LIFEINSURANCE COMPANY LTDABOUT HDFC STANDARD LIFE INSURANCEHDFC Standard Life Insurance Company Ltd. is one of Indiasleading private insurance companies, which offers a range ofindividual and group insurance solutions. It is a joint venture betweenHousing Development Finance Corporation Limited (HDFC Ltd.),Indias leading housing finance institution and a Group Company ofthe Standard Life, UK. HDFC as on December 31, 2007 holds 72.38per cent of equity in the joint venture.HDFC STANDARD LIFE INSURANCE PARENTAGEHDFC Limited.  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. 13
  15. 15.  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 long-standing commitment to community development.  Presented the Dream Homeâ 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)  The Standard Life group has been looking after the financial needs of customers for over 180 years 14
  16. 16.  It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs Its investment manager currently administers £125 billion in assets It is a leading pensions provider in the UK, and is rated by Standard & Poors as strong with a rating of A+ and as good with a rating of A1 by Moodys Standard Life was awarded the Best Pension Provider in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. The 5 Star accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the Best Flexible Mortgage Lender at the Mortgage Magazine Awards in 2006. 15
  17. 17. HISTORYHDFC Standard Life Insurance Co. Ltd was incorporated on 14thaugust 2000. It is a joint venture between Housing DevelopmentFinance Corporation Limited (HDFC Ltd.) India and UK basedStandard Life Company. Both the joint venture partners being one ofthe leaders in their respective areas came together in this 81.4:18.6joint Venture to form HDFC standard life insurance company limited.The MD and CEO of HDFC Standard Life Mr. Deepak S. Parekh ,has given the company new directions and has helped the companyachieve the status it currently enjoys. HDFC Standard Life brings toyou a whole range of insurance solutions be it group or individual orNAV services for corporations, they can be easily customized as perspecific needs.HDFC Standard Life Insurance India boasts of covering around 8.7lakh lives by March2007. The gross incomes standing at a whoppingRs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sureto become one of the leaders and the first Preference for any lifeinsurance customer.The Bancassurance partners of HDFC Standard Life Insurance Co Ltdare HDFC, HDFC Bank India Limited, Union Bank of India, IndianBank, Bank of Baroda, Sarawat Bank and Bajaj Capital. 16
  18. 18. The premium payment options available to the customers vary fromonline payment to direct desk payments at the HDFC Standard LifeBranches, by courier services or in drop boxes provided. You can alsopay by ECS or Automatic Debit System or credit cards or standinginstruction mandate. HDFC Standard Life Insurance Company is acustomer oriented corporation and aim at complete customersatisfaction.The lapsation and renewal policy of HDFC Standard Life are clearlydefined on the official website. Online renewal forms are alsoavailable. For any change in personal details like the contact details orthe nominee of the policy or policy benefits, online servicing is alsoavailable. Even the claim procedure has been simplified since affectof the loss life is irreparable and is thus fully understandable at HDFCStandard Life. A completely hassle-free process has been formulatedto provide maximum convenience.HDFC Standard Life first came together for a possible joint venture,to enter the Life Insurance market, in January 1995. It was clear fromthe outset that both companies shared similar values and beliefs and astrong relationship quickly formed. In October 1995 the companiessigned a 3 year joint venture agreement.Around this time Standard Life purchased a 5% stake in HDFC,further strengthening the relationship. 17
  19. 19. The next three years were filled with uncertainty, due to changes ingovernment and ongoing delays in getting the IRDA (InsuranceRegulatory and Development authority) Act passed in parliament.Despite this both companies remained firmly committed to theventure.In October 1998, the joint venture agreement was renewed andadditional resource made available. Around this time Standard Lifepurchased 2% of Infrastructure Development Finance Company Ltd.(IDFC). Standard Life also started to use the services of the HDFCTreasury department to advise them upon their investments in India.Towards the end of 1999, the opening of the market looked verypromising and both companies agreed the time was right to move theoperation to the next level. Therefore, in January 2000 an expert teamfrom the UK joined a hand picked team from HDFC to form the coreproject team, based in Mumbai.Around this time Standard Life purchased a further 5% stake inHDFC and a 5% stake in HDFC Bank.In a further development Standard Life agreed to participate in theAsset Management Company promoted by HDFC to enter the mutualfund market. The Mutual Fund was Launched on 20th july 2000.Incorporation of HDFC Standard Life Insurance Company Limited:The company was incorporated on 14th August 2000 under the nameof HDFC Standard life insurance company limited. 18
  20. 20. Their ambition from the beginning was to be the first private companyto re-enter the life insurance market in India. On the 23rd of October2000, this ambition was realised when HDFC Standard Life was thefirst life company to be granted a certificate of registration.HDFC are the main shareholders in HDFC Standard Life, with 81.4%,while Standard Life owns 18.6%. Given Standard Lifes existinginvestment in the HDFC Group, this is the maximum investmentallowed under current regulations.HDFC and Standard Life have a long and close relationship builtupon shared values and trust. The ambition of HDFC Standard Life isto mirror the success of the parent companies and be the yardstick bywhich all other insurance companies in India are measured.HDFC Standard Life Insurance Company Limited is one of Indiasleading private life insurance companies offering a range of individualand group insurance solutions. It is a joint venture between HousingDevelopment Finance Corporation Limited (HDFC Ltd), Indiasleading housing finance institution and Standard Life plc, the leadingproviders of financial services in the United Kingdom.HDFC Ltd. as on December 31, 2007 holds 72.38 per cent of equityin the joint venture. HDFC Standard Lifes Product portfoliocomprises solutions, which meet various customer needs such asProtection, Pension, Savings, and Investment. 19
  21. 21. Customers have the added advantage of customizing the Plans, byadding optional benefits called riders, at a nominal price. Thecompany currently has 21 retail and 6 group products in its portfolio.HDFC Standard Life maintains very high professional standardsduring product offerings by providing sound financial advice,efficient post-sale service, and immaculate financial security.Ongoing training for conventional products, and specialized training,for unit-linked products, for its financial consultants, has also helpedits customers choose the product, best suited for their needs.HDFC Standard Life operates across more than 726 cities and townsof the country supported by its strong network of more than 1,45,000Financial Consultants. HDFC Standard Life also has more than 383corporate agents and other sales intermediaries including banks fordistribution of insurance products 20
  22. 22. AWARDS & ACCOLADESIn 2012BestPrax Benchmark 2012 Award HDFC Life has won the BestPrax Benchmark Award 2012 for Leadership Governance in the Service category at the recently held BestPrax Conclave. This award recognizes our efforts inbuilding world class practices at HDFC Life. This is an ongoing journey at creating a culture of excellence .Best Product Innovation Award at Indian InsuranceAward 2012 Received the Best Product Innovation Award for its Product –SAMPOORN SAMRIDDHI The company has received Award for the second consecutive year. This award seeks to honour a life insurer that has launched an innovation product that has set the benchmark in terms of fulfilling an un-met customer need in domain. 21
  23. 23. Celent Model Insurer Global Award HDFC Life has been selected, among the 23 Insurance Companies Worldwide, as a Model Insurer 2012, for the use of Enterprise Wide Learning via the Internet by Celent USA. HDFC Life has also won the Celent Model Insurer Asia 2012 award. 5th Loyalty Awards 2012 - Insurance Sector (Life) Declared as the winner for Customer & Brand Loyalty in Insurance Sector - Life. These awards recognize Customer loyalty efforts of Companies across various sectors. The Theme of this years Summit was Driving Loyalty through Customer Experience Management. 22
  24. 24. Century International Quality ERA Award Received the award in Gold Category. Century International Quality ERA is based on Excellence in Leadership and Business Management, Quality and Excellence, Business and Brand name Prestige, and Technology, Innovation and Expansion.My FM Star of the Industry Awards Excellence in LifeInsurance HDFC Life won the Silver award for Excellence in Life Insurance.The Stars of the Industry Awards recognises individual and corporate excellence across the banking and financial services sector. These Awards were decided by an eminent Jury comprising senior professionals. The Awards were given away in 17 categories. 23
  25. 25. In 2011Amaron Quanta - Express Uptime Champion Awards2011 These awards recognize reliability of IT infrastructure with solutions that guarantee optimal infrastructure uptime 24*7. HDFC Life won the award in the BFSI categoryPower Brands Hall Of Fame Most Dynamic MarketingProfessional of the Year Power Brands Hall Of Fame is a ceremony that seeks to honour the leaders in the marketing & communications fraternity who have carved a niche for themselves with their remarkable strategies that have channelized growth and have been instrumental in taking their companies ahead. 24
  26. 26. Master Brand Award Master Brand Award is conferred upon those brands which appeal to a large set of consumers from premium to masses while constantly keeping in mind a consumer centric approach. It is conferred on brands based on research, market data and consumer centric approach as key parameters.Best Marketing Strategy - Asian Leadership Awards The Asian Leadership Awards is about Achievers, Super Achievers and Future Business Leaders. It recognizes and rewards their ability to steer their businesses through turbulent times, applying the best of business modules to manage and keep their missions afloat. 25
  27. 27. Indias Most Trusted Service Brand 2011 Ranked Indias Most Trusted Private Life Insurance Brand in 2011 in a survey conducted by Economic Times-Brand Equity and the Nielsen Company.Golden Peacock HR Excellence Award Received the Golden Peacock HR Excellence Award‟ for the year 2011 in the Banking Financial & Insurance Sector.‟ This award acknowledges HDFC Life‟s efforts towards innovative people management processes and talent engagement and development initiatives in the highly dynamic Indian life insurance industry. 26
  28. 28. Best Companies to Work for in India in 2010 HDFC Standard Life has been adjudged one of the Best Companies to Work for in India in 2010. The company participated in the Great Places to Work study for the first time and ranked first in the insurance category. It ranked 34th on the Top 50 Best Companies to Work for, in India 2010 list. The company was also awarded for its unique employee initiative - Mission –in-Genius national quiz.YoungStar Super Voted Product of the Year 2010 HDFC Standard Life‟s Young Star Super has been voted „Product of the Year 2010‟ in the Insurance category by more than 30,000 consumers nationwide across 36 markets. Young Star Super is an unit linked Children Plan with unique benefits such as bumper additions, double and triple benefits, attractive allocations rates, and seven different funds. 27
  29. 29. In 2009Received Diamond EDGE Award 2009 HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellence (using IT) is an initiative by the ,Network Computing magazine to identify, recognise, and honour end-user companies in India that have demonstrated the best use of technology to solve a business problem, improve business competitiveness, and deliver quantifiable ROI to stakeholders.Received CIO The Ingenius 100 2009 Award HDFC Standard Life has received the CIO The Ingenious 100 - 2009 Award, for ATLAS (Agency Training Licensing and Servicing System). Additionally, the company has received the CIO 100 Security Award 2009 for pioneering LANDesk Management and Security Suite security implementation and taking its security to a higher level of technological excellence. 28
  30. 30. In 2008Sar Utha Ke Jiyo Among Indias 60 GloriousAdvertising Moments HDFC Standard Lifes advertising slogan honoured as one of 60 Glorious Advertising & Marketing Moments over the last 60 years in India, by 4Ps Business and Marketing magazine. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of death to convey its brand proposition.Silver Abby at Goafest 2008HDFC Standard Lifes radio spot for Pension Plans won a Silver Abbyin the radio writing craft category at the Goafest 2008 organised bythe Advertising Agencies Association of India (AAAI). The radiocommercial Pata nahin chala touched several changes in life in theblink of an eye through an old man‟s perspective. The objective wasdrive awareness and ask people to invest in a pension plan to live lifeto the fullest even after retirement, without compromising on onesself-respect. 29
  31. 31. OUR VISIONThe most successful and admired life insurance company, whichmeans that we are the most trusted company, the easiest to deal with,offer the best value for money, andset the standards in the industry‟.The most obvious choice for all.OUR VALUESValues that we observe while we work: Integrity Innovation Customer centric People Care One for all and all for ones€• Teamwork Joy and Simplicity 30
  32. 32. BOARD MEMBERSBrief profile of the Board of Directors  Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).  Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. 31
  33. 33.  Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland. Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. 32
  34. 34.  Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). 33
  35. 35.  Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC. Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Masters degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited. 34
  36. 36. RESEARCH METHODOLOGYSourcesThe success of any Insurance company depends on how well they areable to align with the objectives and needs of individual customers,and is able to provide proper solutions to them. To know how acompany is performing and whether they have any cutting edgeadvantage over competitors, an intensive study of the market isabsolutely necessary. In order to understand the performance ofdifferent companies in the market, we did two types of surveys,primary survey and secondary survey.Primary surveyPrimary survey included:-➢ Visiting websites and fixing appointments with their agents.➢ Creation of database of prospective clients from different sourcescalling them up to fix appointment and then visiting them.➢ Prepare a questionnaire for the market survey .➢ Meeting different people to know their views, perception andpreference of different insurance companies._Secondary surveySecondary survey included of consulting books, magazines, journals,internet and also taking reference from:-library.Internet.R.L.I. reports 35
  37. 37. Methodology We would go in for a qualitative research as our objective is to judge the perception and preference of different insurance products. The research would be done from primary data. Sample Design Target population: The target population for the research would be people who are in the age group beyond 40 and age group between 25 to 40.We targeted this group of population because these populations are the potential customers of insurance. Sampling Frame : The research would be conducted in Varanasi. The survey has been conducted among the potential customers of R.L.I. from different sectors as Reliance deals in many sectors of business. Sampling Technique : The sampling technique that is adopted is the simple random sampling wherein every element in the target population has an equal chance or probability of getting selected in the sample. That means every unit of the population who is more is in the above mentioned age group, have an equal chance of getting selected Sample Size: I did a survey among 100 people by taking two categories in consideration of 50 each; that is1. Age group beyond 40 2) Age group between 25 to 40 _ 36
  38. 38. Data Collection :The research would be conducted from the source of primary datacollection. Secondary data would help us in knowing the trendsprevailing in the insurance market and would help us in analyzing andinterpretation of the primary data.Findings and InterpretationsWe have presented below the findings and analysis of thequestionnaire addressed to the respondents to gauge the attitude andperception of the people towards insurance._Respondents having life InsuranceThe question was asked to the respondents to know how many of therespondents had a life insurance policy Life insurance policy 15 YES NO 85 No.of respondentYes 85no 15 37
  39. 39. From the survey it was found out that 85% of the respondents had alife insurance policy whereas 15% of the respondents didn‟t had a lifeinsurance policy.In which company you believe most ? no of respodent 38% private public 62%sector No. Of respodentPrivate 38%public 62% 38
  40. 40. Most of the people want to invest his money in public insurancecompany and in private insurance company only 22 respondent wantto invest their money. Most of the people buy insurance from LIC andthere are 24 privateInsurance policy taken from which companyThe question was asked to the respondents so as to get to know fromwhich insurance company they have bought the policy. no .of respodent 60 50 40 30 20 10 0 no .of respodentCOMPANIES NO .OF RESPODENTLIC 55HDFC-LIFE 20BIRLA SUN LIFE 10TATA AIG 10AVIVA LIFE INSURANC 5 39
  41. 41. The finding which came out from the survey was that 40% of therespondents who have a life insurance cover bought life insurancefrom Life Insurance Corporation of India (LIC). LIC is the mostpreferred brand in the insurance industry because it is the onlygovernment company which offers insurance. People prefer to buyinsurance from LIC because of the security being one of the primefactors. In the figure we can also see that nowadays people mindsethave changed towards insurance.ResultsAfter the survey it was found that still major portion of customers gofor public insurance companies, but with the entry of more and moreprivate companies the scenario is changing rapidly, people with aneed of more and better returns are opting for privatecompanies, and this can be justified by the increasing market share ofprivate companies in the Indian insurance sector.There are various ways in which private companies are found muchmore lucrative than public companies and the facts which support thisstatement are as follows:-1. Versatility of products.2. Efficient fund managers.3. Better customer services.4. More returns.5. Regular follow up.6. Quicker settlement_Suggestions and recommendation✔ People are not aware of the life insurance. Most of them knowonly one company which provides life insurance i.e. LIC. Soawareness campaign should be run so that people are aware ofdifferent life insurance companies in India. 40
  42. 42. ✔ People should be educated about the different types of products orplans offered by the life insurance companies. Most of them don‟tknow much of the different types of plan or products.✔ It was felt that most of the people took life for tax savings or justto cover up their life, not as an investment avenue. Life Insurancecompanies need to advertise in such a manner that people startinvesting in life insurance like the way they invest in the stock market✔ Now at the time of global turmoil insurance company had tohold on to the policyholders trust which might lead the company tothe path of success✔ Insurance companies should try to adopt different strategies tomarket their products or plan. Companies should not primarily focuson the agents for their business._ ConclusionInsurance is one sector that witnessed continuous growth owing to thereforms in 2000. The insurance sector is likely to attain a size of Rs.2,00,000 crore ($ 51.2 billion) in 2009-10. In life insurance, thebusiness grew by 23.3% to Rs. 93,000 crore in 2007-08(Source:Assocham). The sector alone employs close to 30 lakh people(including agents and direct employees).A well-functioning insurancemarket plays an important role in economic development andfinancial stability of developing economies such as India‟s. First, itinculcates and encourages the habit of saving. Second, it provides asafety net to rural and urban enterprise and productive individuals.The life insurance market in India is on a growth path. In spite of this,the country lags far behind the others in awareness about lifeinsurance. The challenge is to spread awareness about life insuranceand it true benefits. The industry has to convince people to park theirhard earned money in long-term insurance and not just look at it as atax saving instrument. 41
  43. 43. Limitations 1. Useful Financial insights are not easily available. 2. Due to time constraint sufficient research on all the investment tools is difficult. 3. The survey sample is not very large for analysis 4. Properly convincing people to invest in insurance products is challenging. 5. Due to recession there is liquidity crunch in the market. 6. There might have been tendencies among the respondents to amplify or filter their responses under the testing conditions. 7. The research is confined to Varanasi and does not necessarily shows a pattern applicable to other parts of the country._ 42
  44. 44. BIBLIOGRAPHYMarketing Management- Philip Kotlor, edition-twelth edition….April2004,.Publisher- Prentice Hall of India (p) Ltd, Analyzing ConsumerMarkets & Buyer behavior & consumer behaviour.Broachers from Reliance Life 43