0601072 hdfc insurance


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0601072 hdfc insurance

  2. 2. ACKNOWLEDGMENT I was actively involved with HDFC Standard life insurance company ltd Pune, for a period of 2 months, and I came across a lot of people who put in their time and effort towards acclimatizing me to the workings of their organization. Firstly I would like to thanks Mr. D.M.SATWALEKAR is the MD and CEO of the HDFC Standard Life Insurance Company Ltd. for giving me opportunity to work with this organization. I would like thanks Mr. YUVRAJ SINGH without whose support, this project would not have been possible. Heartiest thanks for his constant support and motivation. My gratitude to everyone there at HDFC Standard Life Company who has helped me directly or indirectly in the completion of this project. I am thankful to my director Dr. SHARAD JOSHI for providing me an opportunity to do my summer training in such a prestigious company, which has truly been a learning experience. I wish to express my gratitude to Prof. MAHESH GADEKAR (project guide) who gave me proper guidance throughout the project, without his guidance and feedback it would not have been possible for me to under take the research & utilize the research methodology tools appropriately. I would also like to convey thanks to all my colleagues who were also summer trainees like me for being ready with a helping hand. 2
  4. 4. 1 Awareness About HDFC Standard Life Insurance Services 54 2 Best Instrument For Investment 55 3 Accepted Insurance Plans 56 4 Various Reasons Not To Invest Money 57 5 Percentage of Investments by People 58 4
  6. 6.  EXECUTIVE SUMMARY HDFC Standard Life insurance is India's premier insurance enabling company. HDFC Standard Life insurance is the one-stop-shop for requirements of services in the areas of insurance, optimum investment, financial coverage and losses, mortality benefit, and health option etc. This is backed by HDFC Standard life insurance service support infrastructure - the widest in the country. The objective of the project was to do “A Study on the Customers Investment Preferences and Awareness of HDFC Insurance Service” for HDFC Standard Life Insurance for that we have to understand the customer needs, Income, constraints, response and emotions. The main objective of the project is to understand the customer investment preferences more effectively and efficiently, best instrument for investment, preference towards various insurance plans and various reasons not to invest money. Market in Pune city was targeted. Various areas in city were selected. The data gave knowledge about customer satisfaction, loyalty & their feel about the HDFC Standard Life Insurance. Survey was conducted using questionnaire. The information about various attributes & factors was collected. All the data collected, primary data was filtered & analyzed, represented in the form of graphs & charts. Secondary data was also used in report such as company profile, on the basis of analysis of data, conclusions were drawn. On the basis of findings & conclusions, suggestions were given. There many limitations of this project like, biased reply, customers busy, time constraint as the project has time limit of 2 months, area limitation etc. 6
  7. 7.  PROJECT TITLE “A Study on the Customers Investment Preferences and Awareness of HDFC Insurance Service”  REASON FOR CHOSEN THIS COMPANY & THIS PROJECT Today in India there are more than 100 insurance companies who are working, but generally people knows about 5-6 insurance company of India. HDFC Standard life insurance is one of them. Every one knows about HDFC Standard life insurance. This thing makes work easy for us. This company has grown up as a top level company in a short period. Now at last I would like to say that during this summer training I tried my best to perform. This will be beneficial for the company, my Institute as well as for me.  LOCATION Gandhi Plaza, CTS No. 47/21, FP No. 70/21, 24, Erandwane, Law College Road, Deccan Gymkhana, Pune.  DURATION OF THE PROJECT The duration of the project was 2 months. That is from 1st June to 30th July. 7
  8. 8.  HOW DID I CARRY OUT THIS PROJECT I carried out this project through descriptive research methodology by preparing questionnaire and conducting personal interviews of various insurance companies.  RESULT During my summer training I have learned much more about consumer behavior. It’s a practical experience, which will be beneficial in my near professional life. In this training I got experience of field work, tele-calling, regular follow up as well as closing the deal. In tele-calling you communicate with customer through telephone and in field work you communicate with customer by face to face interaction. As per my training period experience face to face interaction is more effective method to convince the customer rather then tele-calling. Location of office also plays an important role in carry on any business so that any person can come in office very easily without any inconvenience. 8
  10. 10.  TITLE OF THE PROJECT “A Study on the Customers Investment Preferences and Awareness of HDFC Insurance Service”  DIFFERENT OBJECTIVE BEHIND CONDUCTING THIS PROJECT The project was undertaken to make people aware of the insurance agent as a career. With so many players in this industry and growing competition among the private players it was actually tough getting people recruited as an agent.  OBJECTIVES OF THE PROJECT a) PRIMARY OBJECTIVES: - 1. To understand the customer investment preferences. 2. To get an instant overview of the insurance industry, its perspective, present scenarios and the competitors. 3. To study the factors influencing customer preferences towards various investment instruments 4. To analyse acceptance of HDFC SLIC insurance policies. 5. b) SECONDARY OBJECTIVES: - 1. To know about the working environment of HDFC SLIC. 2. To know about the different policies of HDFE SLIC. 10
  11. 11.  SCOPE OF THE PROJECT In India still there is a big market for insurance field. 1. 75% of Indian market is still untapped. 2. Attract more people by providing more customer centric products. 3. Strong brand of the bank helps to boost sales in market. 4. No.1 in adapting new technologies like online search etc. 5. Tie up with brokers also having a large data base of the customers. 6. Getting leads from the branch members.  AREA OF THE PROJECT Gandhi Plaza, CTS No. 47/21, FP No. 70/21, 24, Erandwane, Law College Road, Deccan Gymkhana, Pune.  AREA COVEERED  F.C College Road  Karve Nagar  L.B.S Road  Tilak Road  Deccan Gymkhana  Singad Road. 11
  12. 12. (3) COMPANY PROFILE 12
  13. 13.  COMPLETE NAME OF THE COMPANY Company Name: - “HDFC Standard Life Insurance Company”  MISSION STATEMENT We aim to be the top insurance company in the market. This does not just mean to be 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. 2. Value for money for customers. 3. Professionalism in carrying out business.  VISION STATEMENT The most successful and admired life insurance company, which mean that we are the most trusted company, the easiest to deal with, offer the best valve for money, and at the standards in the industry. In short “The most obvious choice for all”  COMPANY LOGO 13
  14. 14.  SLOGAN “Sar Uttha Kar Jiyo”  ORGANIZATION CHART • HDFC Securities Limited:- HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors, a capability to transact in the Stock Exchanges & other financial market transactions. HDFC securities, provides you with the necessary tools to allocate, select and manage your investments wisely, and also support it with the highest standards of service, convenience and hassle-free trading tools. HDFC BANK HDFC MUTUAL FUNDS HDFC SLIC HDFC CHUBB HDFC HOME LOAN HDFC GROUP HDFC SECURITIES 14
  15. 15. • HDFC Bank Limited:- HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors, a capability to transact in the Stock Exchanges & other financial market transactions. HDFC securities, provides you with the necessary tools to allocate, select and manage your investments wisely, and also support it with the highest standards of service, convenience and hassle-free trading tools. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive approval from the Reserve Bank of India to set up a bank in the private sector. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai. • HDFC Asset Management Company Limited:- HDFC Fund is a dominant player in the Indian mutual fund space, recognized for its high levels of ethical and professional conduct and a commitment towards enhancing investor interests. 15
  16. 16. • Standard Life:- Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses. Standard Life currently has assets exceeding over £70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor. • HDFC Chubb Insurance Company Limited:- Over one century of experience in the field of non-life insurance from Chubb and HDFC's expertise from the financial segment, HDFC Chubb General Insurance Company Limited has the consumer insight to make its product range world class and comprehensive. • HDFC Limited:- 16
  17. 17. HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.  HDFC STANDARD LIFE COMPANY LTD. HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leading housing financial institution and one of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and thus committed to being a long-term player in the life insurance industry.  THEIR KEY STRENGTHS:- (1) Financial Expertise – As a joint venture of leading financial services groups. HDFC Standard Life has the financial expertise required to manage long-term investment safely and efficiently. (2) Range Of Solution – We have a range of individual and group solution, which can be easily customized to specific needs. (3) Track Record so far – 17
  18. 18. HDFC Standard Life has been recording consistent growth since its inception and is today one of the leading life insurance companies in India. Till December 2006, the company has recovered over 22.5 lakh individuals and achieved a total sum assured of over Rs. 1,25,700 crore. The total premium income also grew to Rs. 1651 crore during the same period on the back of a high persistency of regular premium policies. HDFC Standard Life’s Effective Premium Income grew to Rs. 803 crore in April –Dec 06, highlighting the stress that the company puts on regular products as opposed to single premium products.  PROUCT RANGE & VARIETY At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy. For individuals, we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organizations we have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. 18
  19. 19. We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family. • Type of products (1) Protection A. Term assurance plan B. Loan cover term assurance plan A) Term assurance plan:- Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to one’s family in the unfortunate event of one’s death. Since this no-participating plan is pure risk cover plan, no benefits are payable on the survival to the end of the term of the policy. B) Loan cover term assurance plan:- This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured. As the outstanding loan decreases as per the loan schedule, the cover under the policy decreases as per the policy schedule. Since this is a non- participating, risk is there, no benefits are payable on survival to the end of the term of the policy. 19
  20. 20. (2) Investment  Single premium whole of life Single premium whole of life:- Single Premium Whole of Life Plan is well suited to meet your long term investment needs. This participating (with profit) plan offers you the following benefits: A sound investment: Your money will be invested in our ‘with profit fund’. The fund aims to provide secure and stable long term growth. Normally, we declare a compound reversionary bonus for your policy every year and add it to your policy on its anniversary. In addition, on death, surrender or on the guaranteed dates, a terminal bonus might be payable. You have to pay a single premium and the policy will pay you a lump sum amount. Flexibility of term: Even after choosing your policy, you can decide on the policy term. For 4 weeks after any one of the 10th , 15th , 20th , and subsequent five-year anniversaries, you can choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been received, your policy will cease. (3) Pension plan A. Personal pension plan B. Unit linked personal pension plan A) Personal pension plan:- This participating plan is basically a saving contract, which is designed to provide an income for life from retirement. It does this by providing a national lump 20
  21. 21. sum on retirement, comprising of sum assured plus any attaching bonus. Subject to the prevailing regulations, part of this lump sum can be taken in form of cash and the rest converted to an annuity at the rate then offered by HDFC Standard Life. Alternately, if it is permitted by the prevailing regulation, the national lump sum can be used to buy an annuity with any other insurance company B) Unit linked personal pension plan:- The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On investing the vale of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 1,000. (4) Saving A. Unit linked endowment plan B. Money back C. Endowment plan D. Unit linked youngster plan A) Unit linked endowment plan:- The unit linked endowment plan is an insurance policy that is designed to pay a lump sum amount on the maturity or on earlier death. The unit linked endowment plan also gives the option of additional protection against common critical illness, as well as additional protection if death is as the result of an accident. 21
  22. 22. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On maturity you receive the value of your units. On death (or critical illness, if chosen) you receive the value of your units and your selected basic sum assured. B) Money back:- It is a participating (with profits) insurance plan that offers the features listed below: i) Payment of cash lump sum, each of which is a proportion of the basic sum assured, at 5-year intervals during the term of policy. ii) On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less the cash lump sums paid is provided. In case of the unfortunate death of the life assuror within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts. C) Endowment plan:- It is a participating (with profits) insurance plan that offers the following features: i) It provides financial support to the family by way of a lump sum payment in case of the unfortunate death of the life assured within the term of the policy. 22
  23. 23. ii) It provides a lump sum payment to the life assures on survival up to maturity. The lump sum mentioned is the basic sum assured plus any bonus additions. D) Unit linked youngster plan:- HDFC Unit linked Young Star plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in his future, even in case of the insured parent’s unfortunate death during the policy term. The Unit linked Young Star plan also gives the option of additional protection against the six common critical illnesses. Your premiums are invested in units of the investment funds of your choice, based on the prevailing unit price. On maturity the value of the units will be paid. On death (or critical illness, if chosen) the selected basic sum assured is paid, and the policy continues until maturity. Following a valid death or critical illness claim, we will pay the future premiums (at the level originally chosen at inception) into your policy, as and when they would have fallen due.  LIST OF MAJOR COMPITITOIRS 1. Aviva Life Insurance 2. Bajaj Allianz 3. Birla Sun Life Insurance 4. ICICI Prudential Life Insurance 5. Kotak Mahindra Old Mutual Life Insurance Limited 6. Life Insurance Corporation of India (LIC) 7. Max New York Life Insurance 8. MetLife India Insurance 9. Reliance Life Insurance 10. SBI Life Insurance 23
  24. 24. 11. ShriRam Life Insurance 12. TATA AIG Life Insurance • Aviva Life Insurance:- Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK and Dabur, one of India's leading producers of traditional healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. • Bajaj Allianz:- Bajaj Allianz is a joint venture between Allianz AG one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz is into both life insurance and general insurance. • Birla Sun Life Insurance:- Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group and Sun Life Financial of Canada. Aditya Birla Group is an Indian multinational conglomerate with presence in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. Sun Life Assurance, Sun Life Financials primary insurance business, is one of the leading insurance companies of the world and ranks amongst the largest international financial services organizations in the world 24
  25. 25. • ICICI Prudential Life Insurance:- ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. • Kotak Mahindra Old Mutual Life Insurance Limited:- Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions and offers a range of financial services such as commercial banking, stock broking, mutual funds, life insurance, and investment banking. • Life Insurance Corporation of India (LIC):- LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore generated by the insurance industry through group business in the year 2005-06, LIC alone accounted for Rs 3051 crore. Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956. 25
  26. 26. • Max New York Life Insurance:- Max New York Life Insurance Company Limited is a joint venture between Max India Limited, a multi-business corporate, and New York Life International, a global expert in life insurance. Max New York Life Insurance started its operations in India in 2000. It is the first life insurance company in India to be awarded the IS0 9001:2000 certifications. • MetLife India Insurance:- MetLife India Insurance Co. Pvt. Ltd is a joint venture between MetLife Group and its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu. • Reliance Life Insurance:- Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio. AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar Group. • SBI Life Insurance:- SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital of Rs 350 Crores. • Shriram Life Insurance:- 26
  27. 27. Shriram Life Insurance Company Ltd is a joint venture between the Chennai based Shriram Group and the South African insurance major Sanlam .The Company launched its operations in India in December 2005. • Tata AIG Life Insurance:- Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and American International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalization of insurance.  BRANCHS IN THE WORLD Head Office - Edinburgh, Scotland (UK) • Worldwide Operations and Presence United Kingdom: 31 branches Canada 11 branches Ireland 7 branches Germany 1 branch 27
  28. 28.  HISTORICAL DEVELOPMENT OF THE COMPANY From the beginning, has been to enhance residential housing stock and promote home ownership. HDFC was incorporated in 1977 with the primary objective of meeting a social need – that promoting home ownership by providing long-term finance to household for their housing needs. HDFC was promoted with an initial share capital of Rs.100 million. HDFC Standard Life first came together for a possible joint venture, to enter the life insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1955 the companies signed a 3 yearn joint venture agreement. Around this time Standard Life purchased 5% stake in HDFC, further strengthening the relationship. Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses. Standard Life currently has assets exceeding over £70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor. • Some Facts About The Company • Founded in 1825 • Mutual Life Insurance Company since 1925 • Largest mutual life insurance company in Europe 28
  29. 29. • Assets under management over Rs 707836 crores (£ 89.2 bn) Total assets under management : Rs. 707836 Crores • New premium income 2003 :Rs. 76277 Crores • AA2 rated by Standard & Poor’s and Moody’s  ACHIVEMENT OF THE COMPANY • Awards and Recognition Year Award • 2003 Company of the Year • 2002 Company of the Year • 2001 Best Personal Pension Provider • 2000 Company of the Year • 1999 Company of the Decade • 1996-99 Company of the year • 1995 4 star service award • 1992-94 Overall best company • 1991 3 star service award • Standard Life has been awarded the "Raising Standards" quality mark. This shows that the Company: • uses clear language to describe their products on key documents, • have appropriate products and • Provide a quality service for the customers.  Money Marketing Awards • Company of the Year every year from 1999 to 2005 • Best Pension Provider 2004 and 2005 29
  30. 30. • Best Group Pension Provider every year from 1998 to 2003 • Best Personal Pension Provider every year since 1998 to 2003 • Best Life Investment Product Provider 2003 and 2004 • Gold Award in the Poster Campaign Category (Advertising) 2004  Money facts Investment, Life & Pensions Awards • Best Pension Product 2003, 2004 and 2005 • Best Pension Service 2003, 2004 and 2005  Bank hall Achievement Awards • Pension Provider of the Year 2003 and 2004  Financial Adviser Provider Awards • Overall Winner in 1999, 2000, 2001 and 2002 • Pensions Provider of the Year 1999, 2000, 2001, 2002 and 2003 • Pensions Company of the Year 2004 • Individual Pensions Company of the Year 2004 • Group Pensions Provider of the Year 2004 • Health Insurance Company of the Year 2004  Financial Adviser Service Awards • Company of the Year every year from 1997 to 2001 • 5 Star Life and Pensions Provider every year from 1996 to 2004 • 5 Star Investment Provider every year from 1996 to 2002 and 2004  Pensions Management Administration and Service Awards 30
  31. 31. • Overall Winner - Personal Pensions 2003 • Overall Winner - Stakeholder Pensions 2002 and 2003 • Overall Winner - Group Personal Pensions 2002 and 2004 • Member Communications - Personal Pensions, Group Personal Pensions & Stakeholder Pensions 2003 • Backup (branch office) - Personal Pensions 2003 • Backup (head office technical support) - Personal Pensions & Stakeholder Pensions 2003  CORPORATE GOVERNANCE 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. Mr. Alexander M Crombie joined the Board of Directors of the Company the Standard Life Group in March 2004 and is also the Chief Executive of Standard Life Investments Limited. 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 31
  32. 32. Life Assurance Company and is responsible for Group Operations, Asia Pacific 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 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. Mr. G N Bajpai was the former chairman of Life Insurance Corporation of India and Securities and Exchange Board of India. Mr. Bajpai retired from Life Insurance Corporation of India with more than 3 decades of experience and further served SEBI as its chairman for 3 years, during which time he had strengthened the compliance enforcement in SEBI. Mr. Gautam R Divan is a practicing 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 nationalized 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 (Honors) from Birla 32
  33. 33. 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). 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. 33
  34. 34. SWOT Analysis of the HDFC Standard Life Insurance Company STRENGTH 1. HDFC has one of the highest brand recalls of around 80% (source: AC Neilson ORG MARG). 2. HDFC has different types of training methods for their FC’s, Agents or Advisor. For Example Disha training, IRDA training, Basic training and induction, Advanced training. 3. Financial Expertise. 4. Range of solutions. 5. Having good network. 6. One of the most aggressive marketing strategies. 7. Training provided to all people associated with the bank provides services like checking the plan or policies online. 8. Free switching options online informing customers about the performance of their investment by sending monthly reports and statements WEAKNESS 1. They are unable to target rural area as compare to LIC. 2. Poor awareness for new products in consumers Poor Distribution network. 3. Negligence to customers after the investment is sold. 4. Very Huge Premium of policies compared to major rival LIC. 5. Target Upper class people only. 6. All Brochures are in English only. 7. Sometimes right advice is not given to the customers. 8. The full charges are not revealed to the customers 34
  35. 35. OPPORTUNITIES In India still there is a big market for insurance field. 7. 75% of Indian market is still untapped. 8. Attract more people by providing more customer centric products. 9. Strong brand of the bank helps to boost sales in market. 10. No.1 in adapting new technologies like online search etc. 11. Tie up with brokers also having a large data base of the customers. 12. Getting leads from the branch members. THREATS 1. Many private players are coming into the market. 2. Some brands in the market gives there product with more features. 3. .LIC, ICICI & Bajaj Allianz is the major competitor with better network. 4. Threats from other banks selling same types of investments. 5. Change in the policies of IRDA. 6. Change in the mentality of people 7. Fear of the market to crash down. 8. Employee attrition. 35
  37. 37. What Is Insurance? All assets have economic value. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. In the case of a motor car, it provides comfort & convenience in transportation. There is no direct income. There is a normally expected life time for the asset during which time it is expected to perform. The owner, aware of this, can so manage his affairs that by the end of that life time, a substitute is made available to ensure that the value or income is not lost. However, if the asset gets lost earlier, being destroyed or made nonfunctional, through an accident or other unfortunate event, the owner & those deriving benefits there from suffer. Definition of insurance Hence Insurance is a tool which helps to reduce effects of such adverse Events. Insurance is a contract between two parties - the insurer (the insurance company) and the insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of "premium". These unforeseen events are defined as "risk" and that is why insurance is called a risk cover. History of Insurance The origin and practice of insurance is as ancient as human civilization. From Cave age till date, the story of evolution of mankind is in fact a saga of continuous search for security. His problems have been the same, though the form has changed with the social & economic circumstances. 37
  38. 38. When man used to live in the caves, he used to search for security against animals because they could kill him while he was asleep. He was not at all sure if he could hunt every day & get his food. Because of the above insecurity he used to live in groups so that the other members of the tribe could come to help him in time of crisis. Later on, insurance was practiced in a different form. Small contributions of food grains were collected from farmers, hoarded in the local temple premises to be released when there was a famine or other calamity. Today, insurance works on the same principle. But, with growing financial implications the process started demanding money rather than community contribution. The modern concept of insurance came to India with the arrival of Europeans. The first life Insurance company was established in India in 1818 as Oriental Life Insurance Company by Europeans for the welfare of widows of Europeans. It was strange that many of the Companies floated thereafter were looking after European interest and even charged extra premium on Indian lives. Bombay mutual life Assurance society Ltd. established in 1870 was the first to stop this discrimination. This was the year in which the first Insurance act was passed by the British parliament. The insurance business flourished thereafter. By the year 1955 there were 245 insurance companies and provident societies, out of which 16 were non Indian companies. A comprehensive legislation "The Insurance act 1938" was passed with a view to consolidate and amend the laws relating to the business of insurance. It came into force with effect from July ‘01; 1939.The act was modified in 1950. The broader objectives of socialism prompted the government to nationalize the insurance business, in the year 1956. The general insurance business was nationalized in 1972, through GIC Act 1972. The Life Insurance Corporation of India came into existence on 1st September 1956. Insurance in India The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. 38
  39. 39. A BRIEF HISTORY OF THE INSURANCE The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956: With a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:- 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 39
  40. 40. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four company’s viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. ROLE OF INSURANCE Role 1: Life insurance as "Investment" Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured. 40
  41. 41. Role2: Life insurance as "Risk cover" First and foremost, insurance is about risk cover and protection - financial protection, to be more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an un-timely demise. To provide such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies. Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. An accident or disability can be devastating, and an insurance policy can lend timely support to the family in such times. It also comes as a great help when you retire, in case no untoward incident happens during the term of the policy. Role 3: Life insurance as "Tax planning" Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children or adult children. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. This rebate is can be availed upto a maximum of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy anything upwards of Rs 10 lakh in sum assured (depending upon the age of the insured and term of the policy). This means that you get Rs 12,000 tax benefit. The rebate is deductible from the tax payable by an individual or a Hindu Undivided Family. 41
  42. 42. Risks involved in Insurance business In its November 2002 report, the IAA working party on Solvency suggested the following system of broad categorization of insurance risks- A. Credit Risk B. Liquidity Risk C. Market Risk D. Operational Risk E. Underwriting Risk The various components of the risk categorization suggested by the IAA working party are briefly described below- A) Credit Risk:- These are the risks arising due to default by and change in credit rating of those to whom the company has an exposure. They include reinsurance companies, companies in which the insurer has invested its funds. These risks include external events affecting the credit worthiness of these companies. Examples being – • Business credit risk, e.g. failure of a re-insurer • Invested asset credit risk, e.g. non-performance of invested assets • Political risk (affecting credit worthiness of securities held by the insurer) • Sovereign risk (affecting credit worthiness of securities issued by government or government entities) 42
  43. 43. B) Liquidity Risk:- These are the risks of loses in the event that insufficient liquid assets are available to meet the cash flow requirements of the policy holders obligations when they are due. They include: • Liquidation value risk, e.g. risk of having to realize assets in adverse market conditions • Affiliated company risk, e.g... Risk of difficulty in realization of interests in an affiliated company • Capital market risk, e.g. risk of inability to obtain funding from outside the company or group C) Market Risk:- These are the risks arising due to movements in the level of financial variables such as interest rates, share prices etc. Examples being – • Interest rate risk, e.g. losses arising due to change in interest rates • Equity and property risk, e.g. losses arising due to drop in equity prices • Currency risk, e.g. losses arising due to adverse movements in exchange rates • Basis risk, arising because the yields on instruments of varying risk quality, liquidity and maturity don’t move together; affecting the assets and liabilities of the company independently • Reinvestment risk • Concentration risk • ALM risk • Off balance sheet risk, losses arising from assets or liabilities not shown on the balance sheet e.g. payments required under futures agreements with zero value at the balance sheet date. 43
  44. 44. D) Operational Risk:- There are various definitions available for Operational Risk. The definition used by the British Bankers Association and adopted under Basle II is as follow – “Operational risk is the risk of direct or indirect loss resulting from inadequate or failed processes people and systems or from external events.” In recent years, it has been widely accepted that Operational Risks are significant risks and at the same time are difficult to identify and measure. They include – • Human capital risk, e.g. failure to attract and retain well-trained personnel • Management control risk, e.g. failed internal controls, disciplines etc • Systems risk, e.g. systems failures • Strategic risk, e.g. Management failure to implement appropriate business plan, make decisions, allocate resources and adapt to changing environment E) Underwriting Risk:- These are the risks undertaken by life insurance companies through the contracts they underwrite. The risks within this category are associated with the perils covered (e.g. death, critical illness) and with the specific processes associated with the conduct of life insurance business. They include: • Underwriting process risk, e.g. Financial loss related to selection and approval of risk to be insured • Pricing risk, e.g. financial loss due to insufficient premium charged for a risk undertaken • Product design risk, e.g. exposure to events not anticipated in the design and pricing of the life insurance contracts 44
  45. 45. • Claims risk, e.g. more than expected number of claims arising • Economic environment, e.g. adverse affect on the company due to change in socio-economic conditions • Net retention risk, e.g. losses due to catastrophic or concentrated claims • Experience arising due to higher retention of risk within the company • Policyholder behavior risk, e.g. unanticipated behaviors of the policyholders adversely affecting the company • Reserving risk, e.g. inadequate provision in company accounts for policy liabilities The risks identified will be allocated into the set of risk categories specified If the risk category definitions differ from those used by the regulatory than caution will be needed to ensure that users of the risk categories understand their true meaning and scope. At this stage, companies may also want to assign responsibilities to key personnel to oversee management of these risks. This may be carried out by setting out formal risk policies for each risk category. Need of Insurance  To provide cash to meet various routine expenses of the family on or immediately after the death of the income earner of the family.  To prevent the family s accustomed standard of living even after the death of the breadwinner.  To provide continuous flow of funds for the living spouse.  To allocate income funds for the children s education.  To provide a retirement income throughout old age.  To provide a reliable savings plan for the future.  To supplement income when earning power is reduced or eroded by illness, accident or any handicap. 45
  46. 46.  To furnish surplus earnings for the investors should disaster strike Insurance Sector Reforms In 1993 In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included: 1) Structure  Government stake in the insurance Companies to be brought down to 50%  Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations  All the insurance companies should be given greater freedom to Operate 2) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General 46
  47. 47. Insurance through a single entity foreign companies may be allowed to enter the industry in collaboration with the domestic companies Postal Life Insurance should be allowed to operate in the rural market. 3) Regulatory Body The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be made independent 4) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time) 5) Customer Service LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies 47
  48. 48. with economic motives. For this purpose, it had proposed setting up an independent regulatory body. The Insurance Players Licenses have been issued for the following companies • Aviva Life Insurance • Bajaj Allianz • Birla Sun Life Insurance • ICICI Prudential Life Insurance • Kotak Mahindra Old Mutual Life Insurance Limited • Life Insurance Corporation of India (LIC) • Max New York Life Insurance • MetLife India Insurance • Reliance Life Insurance • SBI Life Insurance • ShriRam Life Insurance • TATA AIG Life Insurance 48
  50. 50. RESEARCH METHODOLOGY  INTRODUCTION Research Methodology is way to systematically solve the research problem. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind them .We also need to understand the assumption underlying various techniques and procedures will be applicable to certain problems and other will not. So it is necessary for us to design methodology for the problem as it differs from problem. So research methodology is not only method research but also logic behind the methods we use in context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated. ⇒ Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to specific marketing situation facing the company. An effective marketing research involves following five objectives. ⇒ Developing research plan. Steps in a sequential manner. ⇒ Defining the research. ⇒ Collecting the information. ⇒ Analyze the information. ⇒ Present the findings  DEFINNING RESEARCH OBJECTIVE: 50
  51. 51. Objective is the main theme of in, which is my job, is based. Research is a good planning of strategy, policy and formulation of procedure to compete in the market. The objective of the project should be very precise; it should neither be very broad nor be very narrow. This research defined the following objective: (1) To find the leading brand of the various molecules under study. (2) To find out the market share of HDFC Standard Life Insurance for the given Set of molecules. (3) To recognize the main competitors and assess their market share for the same set of molecules. (4) To study the availability and movement the brands under study. (5) To recognize the potential Investors mainly investing in HDFC Standard Life Insurance Competitor's brands.  DEVELOPING RESEARCH PLAN: The research plan is the main body or you can call the blue print in which we carry the research. The research plans consist of data sources, research approaches, research instruments, sampling plan and contact methods. 1. DATA SOURCES: I have gathered secondary data, primary data or both. Secondary data are the data, which already exists and were collected for some other purpose or for similar previous studies. Primary data are the data gathered for the specific research project and are directly taken from the very source of information. For this research both type of data were used, secondary data were used 51
  52. 52. for making assumption and the outline of the project. Secondary data were proved to be instrumental in structuring the questions to be asked for collecting primary data. The secondary data used here were in the form of previous reports, sales record of the company and the sales history of the competitor, interviewing the all peoples collected the primary data, and this was the information on which the final report is based on. 2. RESEARCH APPROACH: Primary data can be collected in several different ways these methods of collecting primary data are called research approaches. Research approaches are of following types: a) Observational research b) Focus group research c) Survey research d) Experimental research. e) Behavioral data research For this project the survey research method was adopted, and a survey was conducted in which investors were interviewed to know the movement of the brands under study. 3. RESEARCH INSTRUMENT: The two main research instruments in collecting primary data are: A. Questionnaire B. Mechanical instrument A) Questionnaire: Questionnaires consist of a set of questions presented to the respondent for 52
  53. 53. their answer. Because of its flexibility the questionnaire is by far the most common instrument used to gather primary data. Questionnaire needs to be carefully developed and tested before they are actually used on a large scale. Questionnaires are of two types: a) Open ended questionnaire: It consists of open ended questions that allow the respondent to answer in their own words. Such questionnaires revel more because they do not constraint respondent's answers. B) Closed ended questionnaire: This questionnaire consists of questions that pre-specified all the possible answers, tabulation and interpretation of such Questionnaires are easier as compare to open ended questionnaire. B) Mechanical instruments: Few mechanical instruments like galvanometer, eye-cameras and audiometers are used in marketing research for advertising related works questionnaires were used. 4. SAMPLING PLAN: After deciding on research and research instrument the researcher must design a sampling plan. This plan calls for three decisions. a) Sampling unit b) Sample size 53
  54. 54. c) Sampling procedure a) Sampling unit: The marketing researcher must define the target population that will be sampled; here in this case sampling unit was the businessmen, wholesalers etc. b) Sample size: Large sample gives more reliable results than small samples. However it is not necessary to sample the entire population or even a substantial portion to achieve reliable result. After considering time constraint and cost effectiveness for the project total 600 peoples are surveyed. c) Sampling Procedure: There are mainly two sampling methods. i) Probability Sampling ii) Non-Probability Sampling i) Probability Sampling: In probability sampling method each unit of the population has the equal chance of being selected in the sample. This method is sub-divided into following: • Simple random sampling • Stratified random sampling • Cluster (area) sampling ii) Non-probability: In non-probability sampling researcher himself decide the basis of sample 54
  55. 55. selection, unlike the probability sampling in this method every unit of population does not have the equal chance of being selected. This method is sub-divided in following types: • Convenience sampling • Judgment sampling • Quota sampling In this research work Cluster sampling method was used. • Cluster (Area) Sampling: In this random sampling technique the whole population was divided into mutually exclusive groups based on the area covered by respective marketing representatives of the company. 55
  56. 56. (6) DATA ANALYSIS 56
  57. 57. DATA ANALYSIS I have collected primary data during the course of doing experiments in an experimental research but in case I do research of the descriptive type and perform surveys, whether sample surveys or census surveys, then I have obtained primary data through :- 1. Observation. 2. Direct communication with the people. 3. through personal interviews. 4. Cold calling 5. Tele calling 1. Observation Observation is a kind of process by which with the help of people s face reading and looking at his personality I tried to understand that the profile is good or bad and is that person really beneficial for the company or not. 2. Direct Communication With the help of direct communication i.e. direct talk to people I have tried to make him understand that what are our policies and all plans are very flexible. At the time of interaction I have tried promote my company and also tried to motivate that people to grasp that opportunity whatever we are offering. 3. Personal Interview With the help of this process I have tried to explore that profile and tried to scan that person s quality and also his/her selling ability. 57
  58. 58. 4. Cold Calling In this part I have explained our offering to the persons whom I have met in my way and also try to make him convinced that our offerings are superior to other. 5. Tele Calling At the time of telecalling as the term referred that I used to call the persons whose data I was being got from the company s database and tried to fix up an appointment with that person and after that I used to meet that profile. After meeting that person I used to make him understand our offering and try to convince that person. 58
  59. 59. Data Analysis (1) Awareness About HDFC Standard Life Insurance Services Total No. of Respondent 60 Name of the insurance company No. of respondents LIC 20 ICICI Prudential 14 HDFC 12 Bajaj Allianz 8 Reliance Life insurance 2 Others 4 20, 34% 14, 23% 12, 20% 8, 13% 2, 3% 4, 7% LIC ICICI Prudential HDFC SLIC Bajaj Allianz Reliance Life Insurance Others Findings: - Whenever I had surveyed awareness of people about HDFC Standard Life, I found that there is more no. of respondents who are aware about LIC. HDFC Standard Life Company has got the acceptance of only 20% as we all know that it is still up coming but people are showing interest & it also takes the 3rd position among all others. 59
  60. 60. The percentage of awareness about HDFC Standard Life Company is 20% only. But the employees over there are trying their best to do better & capture the market as fast as possible. 60
  61. 61. 2) Best Instrument For Investment Best Instrument for Investment 15, 25% 24, 40% 9, 15% 12, 20% Insurance Mutual Funds Stock Tax Planning Findings Now a day there is a question in people s mind that what will be the best sector for investment. There are various sectors for investing money. During my survey I came to the decision that the people really like mutual fund first and then they like Insurance. The acceptance of percentage in case of mutual fund is 40% and in insurance sector it is 25%. So as mutual fund is one kind of investment insurance companies should have to more emphasize on the investment plans. (3) Accepted Insurance Plans Total No. Of Respondents 60 Instruments Total No. Of Respondents Insurance 15 Mutual fund 24 Stock 9 Tax Planning 12 61
  62. 62. Total No. of Respond 60 Types of Plans No. of Respond Investment Plan 30 Child plan 15 Pension Plan 15 Preference towards various Insurance Plans 30 15 15 0 5 10 15 20 25 30 Investment Plan Child Plan Pension Plan Investment Plan Child Plan Pension Plan Findings There are various kinds of plans which are being offered by HDFC Insurance Company and the more accepted plans are investment plans. As per as the survey is concerned investment plan comprises of 50% of the total part. From this we can understand that the acceptance level of the investment plans. Because of the high return these plans are really popular. (4)Various Reasons Not To Invest Money 62
  63. 63. Total No. Of Respond 60 Reason No. of Respond High Risk 18 Lack of Knowledge 21 Previous loss 12 Lack of Financial Planning 9 Various Reason Not To Invest Money 18 21 12 9 0 5 10 15 20 25 High risk Lack of knowledge Previous loss lack of financial planning High risk Lack of knowledge Previous loss lack of financial planning Findings When I had visited to talk with the people and tried to emphasize the plans then various factors come to people s mind. There are-n-number of reasons for that people are not investing money in the private sector. After doing the survey I had come to the conclusion that lack of knowledge is the most important factor for which the people are not investing money. The percentage of lack of knowledge is 35%. So I think the top level officers of the HDFC Life Insurance have to take necessary measures to increase the people s knowledge regarding the insurance, and investments. (5) Percentage of Investments by People Total Respond 60 Percentage No. of Respond 5%-10% 16 63
  64. 64. 10%-15% 20 15%-20% 10 And above 14 % of Investment Done From Annual Income 16 20 10 14 0 5 10 15 20 5% - 10% 10% - 15% 15% - 20% And above 5% - 10% 10% - 15% 15% - 20% And above Findings During my project period I had done a project about the percentage of investment of the annual income of the customer. The survey report shows that maximum rate of investment or percentage of investment had been done on 10% - 15% basis. And the second percentage is being done on 5% - 10% basis. So it is being seen that the customers are really interested in investing money and usually to get higher return they are willing to invest money. Due to the presence of the investment plans and many other plans the customers are really investing money to get high return. So in Pune reason it is being seen that there is a lot of customer potential for the HDFC Life Insurance. 64
  65. 65. (7) FINDINGS & LIMITATIONS 65
  66. 66. FINDINGS Findings During my project I have found out various things by which I have learned a lot. As insurance is one of the toughest sectors in business world and we are the dream sellers in the industry because we never give the customers return in that very day we are assuring some amount so its all about faith on we people which customers are suppose to do. General View (1) Promotional tools which are being used are not so much effective. (2) Customers are much more relying upon LIC. (3) Less customer awareness regarding this HDFC Life Insurance. (4) It still not penetrates in rural area. (5) Product variety is very less. (6) All products are not attractive to the customers so that kind of products are very hard to sale. (7) Investment plans are very less, that s why people are not accepting the products. (8) Competitors are very tough. (9) Brand name helped quite a lot to the company. Positive view 1. Brand name helped a lot while financial advisors are opting for calling. 2. Branches are almost everywhere. 3. Higher level of advertising and all are very effective 4. Advertising through all media. 66
  67. 67. LIMITATIONS (1) Time constraints as limited time for the survey. (2) While filling the questionnaires public & FC’s could not provide 100% accurate information because of their personal limitations. (3) The analysis is based on what public & FC’s opinion at the time of survey. The study may not produce the same findings if done at a later stage of time. (4) Biased reply of many people. (5) While calculating the percentages, approximations are made to the nearest figures. (6) The study covers the part of Pune region only and due to the limited sample size, the facts revealed in the study may not generalize. Negative view 1. Customers are much more relying upon LIC. 2. People don t relies upon private insurance sector. 3. Competitors are very tough. 4. All products are not attractive to the customers so that kind of products are very hard to sale. 5. Less number of traditional plans that’s why people who really need traditional plans are still not satisfied. 67
  68. 68. (8) CONCLUSION 68
  69. 69. CONCLUSION Truly speaking neither an insurance policy nor any other investment can replace the other. One must have both for a complete, intelligent and a secure portfolio. Comparing one investment with other is like comparing oranges with apples. Investments deal with attempting to capitalize on calculated risk. Working with HDFC Life Insurance for 2 months was a very nice and a good learning experience. It has helped me a lot learning about different kinds of investments and the pros-corns of its. It has also helped me to know about how works in a corporate world is done. Though we had a very nice experience we had to face some problems even, like we were not given any identity card by the bank so sometime it became very difficult for us to convince people that we are from the bank and not an agent.  No reimbursement for lunch and travel  No proper data base was provided to us  Need to be more organized as there were instances of losing the forms Though there were some problems faced by us but over all it was a very nice experience. 69
  70. 70. (9) RECOMMENDATIONS 70
  71. 71. RECOMMENDATIONS Given the current level of dissatisfaction experienced by customers, it is the time for HDFC Standard Life Insurance to concentrate on providing high quality services for differentiating their offerings. Some areas on which they should concentrate immediately are:-  Gear up sales services particularly those that will help in reducing customer anxieties.  Simplify documents wherever necessary, without loosing control.  Enhance post sales services in such areas as sending all renewal notices in time, expeditious settlement of claims and refunds etc. Customize products to cater to the needs of each individual.  Emphasize with the customers. Employees coming in contact with customers must show courtesy and good behavior.  To deliver the above, will need to build the suitable organization with an appropriate management system, optimum physical infrastructure and a culture of innovation, productivity and customer-orientation that will enable them to survive and grow in exciting and fast growing line of personal insurance. 71
  72. 72. (10) BIBLIOGRAPHY 72
  73. 73. BIBLIOGRAPHY BOOKS 1. MARKETING MANAGEMENT 12th ed., Pub: Tata McGraw Hill - PHILIP KOTLER 2. Pre licensing Agents Training Book (Insurance Institute of India) 3. IC33 Life Insurance S. Bal Chandran (Insurance Institiute of India) 4. Life and Health Insurance - Kenneth Black NEWSPARER 1. The Economic Times 2. The Business Standard JOURNALS 1. BUSINESS STANDERED 2. ICFAI MANAGEMENT RESEARCH Vol. V No. 9 3. ICFAI MANAGEMENT RESEARCH Vol. V No. 10 INTERNATE WEBSITE 1. www.hdfcinsurance.com 2. www.google.com 3. IRDA.com 73
  74. 74. (11) ABBREVIATIONS 74
  75. 75. ABBREVIATIONS  HDFC – Hosing Development Financial Corporation  FC – Financial Consultant  IRDA – Indian Regulatory & Development Authority  SDM – Sales Development Manager  BDM – Branch Development Manager 75
  76. 76. (12) QUESTIONNAIRE 76
  77. 77. Questionnaire Questionnaire NAME: ________________________________________________________________ AGE: _______ SEX: __________ ADDRESS: _____________________________________________________________ _______________________________________________________________________ E-MAIL: 1) Are you aware of HDFC Standard Life Insurance? • YES • NO. If NO, are you aware of any of following Life Insurance Company? • LIC • Reliance Ins. • SBI Life Insurance • ICICI Pro Insurance 2) From which media you came to know about Financial Services? • Magazine • Newspaper • TV • Radio • Interest • Agents • Franchisee •Hoardings • Friends • Others 3) Would you like to invest in Financial Sector? • Yes • No 4) Which Financial Service you will prefer to invest and why? • INSURANCE • MUTUAL FUNDS • TAX PLANNING • BONDS/FD 5) Reason Being: • High Risk • Lack of Knowledge • Previous Loss • Lack of Financial Planning 77
  78. 78. 6) How much do you expect to earn from insurance field ? • 25,000/- • 50,000/- • 50,000/- to 1 lac • 1 lac to 2 lacs • 2 lacs or above 7) How much percentage you will like to invest from your annual income? a) INSURANCE • 5 to 10% • 10 to 15% • 15 to 20% • 20% and above b) MUTUAL FUNDS • 5 to 10% • 10 to 15% • 15 to 20% • 20% and above c) PPF • 5 to 10% • 10 to 15% • 15 to 20% • 20% and above d) TAX • 5 to 10% • 10 to 15% • 15 to 20% • 20% and above e) STOCK • 5 to 10% • 10 to 15% • 15 to 20% • 20% and above f) BONDS/FD • 5 to 10% • 10 to 15% • 15 to 20% • 20% and above 8) What is your Preferable Period for investment? • January March • April June • July September • October December 78