DECLARATION

I, AMIT KUMAR declare that the project report entitled CHILDREN POLICY IN

INSURANCE AND ITS FUTURE PROSPECTUS being submitted to the

U.P.TECHNICAL UNIVERSITY for the partial fulfillment of the requirement for the degree of Master of Business Administration is my own endeavors and it has not been submitted earlier to any institution/university for any degree.

Place: LUCKNOW Date: ( )

ACKNOWLEDEMENT
The six weeks Summer Training at HDFC Life have been a great learning experience. It has been one of the most enriching experiences for me to work along with the employees of one of the best managed organizations, a company rightly considered as the Navratna among the public sector undertakings of the India.
I am very thankful to Sh.P.K GOEL DGM (Finance) who has given an opportunity to learn about the procurement procedures followed here by allowing me to undergo training at their Finance (Concurrence) Department. He gave me full support to learn the crucial things of this whole exercise. I am thankful to sir for the his kind support in completion of this project report by guiding me throughout my training, for his support, guidance and providing the valuable information from his vast experiences which has enabled me in successfully completing the Summer training which is an essential part of my MBA course curriculum.

NISHANT SAXENA

PREFACE
This project report deals with the procedures, practices and guidelines adopted by the NTPC Limited with respect to the procurement of various goods and services which are essential for carrying of the smooth functioning of the activities performed at the office. These practices are followed during all procurement by NTPC. The purchase procedure starts at Indenting by the department that requires the material and goes to the cost department and finance department for required approval and vetting. A brief introduction about the procedure along with the procurement policy is given along with the recommendation and the limitations of the procurement system. Furthermore this project aims to analyze the financial strength of the company and aims to interpret them thereof with the help of ratio analysis

TABLE OF CONTENTS
S.N TOPIC PAGE NUMBER 1 2 3 4 6 7 8 9 10 11 12 13 14 15 INTRODUCTION OF TOPIC NEED AND RELEVANCES OF STUDY OBJECTIVE OF STUDY INTRODUCTION OF NTPC POWER STATION IN INDIA OF NTPC RESEARCH METHODOLOGY PROCUREMENT STEPS TENDERING PROCEDURE RATIO ANALYSIS OF NTPC FINDINGS RECOMMENDATION LIMITATION OF STUDY CONCLUSION APPENDIX 1 3 4 5 9 12 13 14 40 63 64 65 66 69

COMPANY PROFILE
HDFC LIMITED 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.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

Organizational Goals HDFCs main goals are to a) Develop close relationships with individual households, b) Maintain its position as the premier housing finance institution in the country, c) Transform ideas into viable and creative solutions, d) Provide consistently high returns to shareholders, e) To grow through diversification by leveraging off the existing client base.

HDFC STANDARD LIFE The Partnership: HDFC is an organization that strives for excellence, with the twin objectives of enhancing customer satisfaction and shareholder value HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. At the outset it was clear that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship. The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

The company was incorporated on 14th August 2000 under the name: HDFC Standard Life Insurance Company Limited.

Their ambition from as far back as October 1995 was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the only life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.6%, while Standard Life owns 18.4%. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured. HDFC Standard Life Insurance Company has been signed on by Blue Star to provide insurance cover to its 1,805 employees across India and overseas. HDFC Standard Life Insurance is one of the leading players in the group insurance segment of the life insurance business. Its group business has grown significantly since inception and now covers over 25,000 lives, across the entire industry spectrum including software, FMCG, pharmaceuticals, banking, consultancy, BPOs, retailing, and consumer electronics

HDFC STANDARD LIFE

MISSION:HDFC Standard Life aims to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like: Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standard Increasing market share

VALUES:1. SECURITY: Providing long term financial security to its policy holders will be the companys constant endeavor. It will do this by offering life insurance and pension products. 2. TRUST: HDFC Standard Life appreciates the trust placed by its policy holders in it. Hence, it will aim to manage their investments very carefully and live up to this trust.

3. INNOVATION: Recognizing the different needs of its customers, it will be offering a range of innovative products to meet these needs. The companys mission is to be the best new life insurance company in India and these are the values that will guide it in this

Why HDFC Standard Life? There are many reasons why one may choose HDFC Standard Life Insurance Company Ltd. as your partner in meeting your insurance needs:

a) Innovative products to meet your needs. b) Efficient customer service team. c) Good financial track record of both parents HDFC and Standard Life. d) Certified Financial Consultants to advise you. e) Professional approach in managing your investments. f) Income Tax benefits for our insurance products.

FINANCE DEPARTMENT AT HDFC STANDARD LIFE

The finance department of HDFC Standard Life Insurance is headed by the General Manager (Finance), who reports to the MD and CEO. There are four other departments under the Finance Departments. These are: 1. Accounts Department 2. Actuary Department 3. Investment Department 4. Underwriting Department

ACCOUNT DEPARTMENT

UNDERWRITING DEPARTMENT

FINANCE DEPARTMENTS

ACTUARY DEPARTMENT

INVESTMENT DEPARTMENT

 The Accounts Department: The Accounts Department functions like any other Accounts department. It is concerned with the disbursement of salaries, reimbursements, incentives, commissions to agents. It also handles the payments due to other agencies with which the Company interacts, viz. event management companies etc. The work of an Accounts department assumes much importance in an insurance company because it has to be able to pay the claims arising time to time. The Actuary Department: The Actuary Department is the Pricing Department of an insurance company. It must be understood that the basic premise on which the insurance companies work is use the corpus of policy holders for disbursement for any claim. Based on this principle, this department decides the amount of premium to be charged from a client for a particular policy.This is normally done with the help of Mortality Tables, which can either be prepared by the company itself, or the company can use the existing tables available for its use. The Actuary Department is also responsible for Asset-Liability Management of the insurance company. It must ensure that the Solvency margin (Assets-Liabilities) must be at least Rs 50 crores, as prescribed by IRDA. 95% of the surplus above this has to be distributed to the investors a bonus. HDFC Standard Life has till now declared three bonuses to its policyholders The Investment Department: The Investment Department is responsible for the investment of the money of the investors. Since the basic reason for the investors investing their money in Life Insurance is security, IRDA has put certain regulations on such companies for investments so that the money of investors is safe.

IRDA guidelines are: 1. not less than 50% of the corpus will be invested in Government Securities (GSec) 2. Up to15% of the corpus will be invested in infrastructure, social and rural sectors. 3. Not less than 20% can be invested in government and other equities. 4. Remaining 15% can be invested in unapproved equities. Till recent time, HDFC has not been investing in equities. But now it has decided to follow the footsteps of its Joint-Venture partner Standard Life, which invests around 75% of its corpus in equities. The Investment Department is also responsible for calculating the returns of the investment to the investors. Here also the insurance companies are bound by regulations and guidelines. According to IRDA, the returns have to be in the range of 6 %-9 %. The Underwriting Department This department is responsible for taking the decision on whether to insure a person or not. For this it must take into account the risk premium associated, the reinsurance opportunities etc. normally, there are charts available with the people of this department on the basis of which they can come to a viable decision.

Underwriting is done on the basis of two grounds: Financial Grounds: here the underwriters decide on the worth of the person by taking into account his tax returns of the last three years. On this basis they are able to assess the premium paying ability of that person and accordingly take a decision. Medical Grounds: each new customer is required to undergo a comprehensive medical test, which determines the persons general health. On the basis of this report, the underwriters decide upon the premium to be charged from customer.

Functions of Insurance

The functions of Insurance can be bifurcated into three parts: 1. Primary Functions 2. Secondary Functions 3. Other Functions

Primary functions

Functions of insurance
Other fuctions Secondary fuction

The primary functions of insurance include the following:

1) Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others.

2) Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid.

3) Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also

4) Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain.

The secondary functions of insurance include the following:

1) Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses causes lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured.

2) Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty.

3) Contributes towards the development of larger industries - Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The other functions of insurance include the following:

1) Means of savings and investment - Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance.

2) Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways.

3) Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.

Why do I need Childrens Plans? Children's Plans helps you save so that you can fulfill your child's dreams and aspirations. These plans go a long way in securing your child's future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style. Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime. Today, a 2-year MBA course at a premiere management institute would cost you nearly Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later, you would need almost Rs. 9,07,680/- to finance your child's MBA degree. An illustration of how education expenses could rise with passing time due to inflation.

Source: HDFC Standard Life Survey 2008. Inflation assumed as 6% p.a. So, how can you cope with these costs? Children's Plans help you save steadily over the long term so that you can secure your child's future needs, be it higher education, marriage or anything else. A small sum invested by you regularly can help you build a decent corpus over a period of time and go a long way in providing your child a secured financial future along with.

HDFC SL YoungStar Super Premium With HDFC SL YoungStar Super Premium you can fulfil your child's immediate and future needs- all on your own. Start saving now with this unit linked insurance plan and be assured that savings for your child will continue, even in your absence. This plan offers you choice of cover options and benefit payment preferences- all designed to suit your needs. Features

Please roll over your mouse over circles for explanation.;

Advantages The Triple Insurance Benefit helps you secure your child's immediate and future needs. In case of your unfortunate demise or critical illness, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums. With Save -n- Gain benefit ,we will pay 50% of all the original regular premiums towards your policy and 50% of the premiums will be paid to the Beneficiary as and when due, on an annual basis. Any Death Benefit or Critical Illness cover terminates immediately. You can customize the ideal plan for your child by choosing the premium you wish to invest along with the Sum Assured, depending on the level of protection required and Benefit payment preference. This plan can be taken by filling Short Medical Questionnaire, which may not require you to go for medicals. Kindly refer to the product brochure for details. You can change your investment fund choices in two ways: o Switching: You can move your accumulated funds from one fund to another anytime o Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961.

HDFC SL YoungStar Super II There is no bigger joy than being able to fulfil your child's dream on your own. With HDFC SL YoungStar Super II you can fulfil your child's immediate and future needs. So tomorrow when your child needs your support you don't have to depend on anyone else. Features

Please roll over your mouse over circles for explanation.

Advantages In case of your unfortunate demise or critical illness, we will pay the greater of Sum Assured (less partial withdrawals) or Fund Value to your child (Beneficiary). The policy will terminate. We will pay 100% of all the future regular premiums to the Beneficiary as and when due, on an annual basis. Please refer to the sales brochure for details. You can customize the ideal plan for your child by choosing the premium you wish to invest along with the Sum Assured, depending on the level of protection required. This plan can be taken by filling Short Medical Questionnaire, which may not require you to go for medicals. Kindly refer to the product brochure for details. You can change your investment fund choices in two ways: o Switching: You can move your accumulated funds from one fund to another anytime o Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961.

BSLI Classic Child Plan A plan that gives you a joint life cover for you and your child and the freedom to choose how your money is invested to fulfill your childs dreams How Plan works

When it comes to planning for your child's future, you wish for a plan that secures your their future and also gives you the flexibility to manage your savings. Presenting the BSLI Classic Child Plan - a plan that secures your child's future, and gives you the freedom to direct your savings to our range of 10 Investment Funds. This plan offers you: Joint life cover for you and your child Flexibility of growing your savings through 10 Investment Funds, as per your risk appetite Enhanced financial security for your loved ones How BSLI Classic Child Plan works: 1. You choose the Savings Date that suits your financial goals for your child. 2. Your Policy Term will be the Savings Date + 20 years. 3. You choose the Basic Premium you want to pay every year. 4. You will receive Basic Sum Assured which is the minimum death benefit payable on the demise of the primary life insured. The Basic Sum Assured is automatically determined as your Basic Premium multiplied by: The higher of 10 or the number of years to maturity divided by 2, for entry ages below 45; or The higher of 7 or the number of years to maturity divided by 4, for entry ages 45 and above 5. You have an option to choose an Enhanced Sum Assured and increase the financial security for your child's future. With this option you can choose any amount of additional life cover over and above the Basic Sum Assured at a nominal cost.

6. You have an option to choose from our range of riders and customise your family's future financial security.

Plan Summary Entry Age Grand/Parent Child Savings Date Policy Term Basic Premium Pay Term Top-up Premium Enhanced Sum Assured Insurance Dictionary Premium: The periodic payments made to acquire the insurance and maturity benefits Policy Term: Total benefit tenure of the policy Policy Surrender; Voluntary closure of policy before completion of policy term/td> Maturity Benefit; The final amount which the customer receives at the end of policy term Rider: Additional protection for an extra premium on the base policy 18 65 years, provided age on Savings Date is 75 or less 30 days 17 years Childs age 18 27, subject to minimum of 10 policy years Savings Date + 20 years Minimum Rs. 25,000 p.a. if paid annually Minimum Rs. 30,000 p.a. if paid monthly, quarterly or semi-annually Years to Savings Date Minimum Rs. 5,000 Minimum Rs. 50,000 Not exceeding Basic Sum Assured

Disclaimer Birla Sun Life Insurance - BSLI Classic Child Plan - are only the names of the Company and Policy respectively and do not in any way indicate their quality, future prospects or returns. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. Tax benefits are subject to changes in the tax laws. Insurance is the subject matter of solicitation. Investment risk in the investment portfolio is borne by

the policy holder. For more details refer to product brochure. Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th floor, Jupiter Mill Compound, 841, Senapati Bapat Marg,

BSLI Classic Child Plan A plan that gives you a joint life cover for you and your child and the freedom to choose how your money is invested to fulfill your childs dreams

Benefits Based on your choices you will receive a host of benefits as below: 1. Maturity Benefit: You will receive the Fund Value at maturity.

2. Death Benefit: In case of the unfortunate demise of the primary life insured while the policy is in effect, we will pay to the beneficiary the Basic Sum Assured. The policy will continue as long as the secondary life insured is alive. Prior to the Savings Date: In case of the unfortunate demise of the primary life insured (grand / parent), we will pay the Basic Sum Assured plus Enhanced Sum Assured, if any, and all future Basic Premiums in monthly installments starting from the next policy month In case of the unfortunate demise of the secondary life insured (child), we will terminate the policy on the Savings Date and pay the Fund Value as on that date In case of the unfortunate demise of the secondary life insured (child), we will terminate the policy on the Savings Date and pay the Fund Value as on that date Starting from the Savings Date: In case of the unfortunate demise of the primary life insured (child), we will pay the Basic Sum Assured In case of the last unfortunate demise of the primary or secondary life insured, we will terminate the policy and pay the Fund Value Enhanced Sum Assured: Based on your needs you can increase the life cover over and above the Basic sum Assured by opting for the Enhanced Sum Assured at inception. You can choose any amount of Enhanced Sum Assured, subject to a minimum of Rs. 50,000

and not exceeding Basic Sum Assured. Joint Life Benefit: This is a joint life insurance policy where the grand/parent is the primary life insured and the child is the secondary life insured. On the Savings Date, the child becomes the primary life insured and the grand / parent becomes the secondary life insured. Surrender Benefit: In case of emergency fund requirements, you can surrender your policy after the completion of five policy years, and receive the Fund Value at that time. Prior to Savings Date, in situations where the primary life insured (grand / parent) is dead, the secondary life insured (child) can surrender the policy anytime after attaining age 18. Top-up Premium: If you wish to increase your investment in the policy, you have the freedom to invest additional amounts to your premium as top-up premiums, anytime during the policy term, except in the five years prior to maturity and as long as all due policy premiums have been paid. The minimum top-up premium is Rs. 5,000 and your Basic Sum Assured will be automatically increased. For more details please refer to our brochure. Guaranteed Additions: Your policy enjoys a boost in form of additional units. For more details on the guaranteed additions, please contact your financial advisors or refer to our brochure. Partial Withdrawals: You can make unlimited partial withdrawals to meet any financial emergencies any time after (a) five complete policy years or (b) secondary life insured attaining the age of 18, whichever is later. Policy Loans: You can also avail loans on your policy. Self-Managed Option - The flexibility to direct your savings in our range of 10 funds The Self-Managed Option gives you complete access to invest your premiums in our well established suite of 10 investment funds, ranging from 100% debt to 100% equity. You also enjoy full freedom to switch from one investment fund to another, as per your changing requirements. Choose from our range of 10 Investment Funds, to suit your risk appetite Allocate your savings the proportion of your choice Change your allocations as per your changing requirements

Disclaimer Birla Sun Life Insurance - BSLI Classic Child Plan - are only the names of the Company and Policy respectively and do not in any way indicate their quality, future prospects or returns. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. Tax benefits are subject to changes in the tax laws. Insurance is the subject matter of solicitation. Investment risk in the investment portfolio is borne by the policy holder. For more details refer to product brochure. Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013. Reg No. 109

BSLI Dream Child Plan A plan that gives you a joint life cover for you and your child and a guaranteed amount when you require How Plan works

The best education, a successful career, a business start-up or wedding plans when it comes to planning for your child's future; you want to ensure that these dreams are

fulfilled under all circumstances. Presenting the BSLI Dream Child Plan - a plan that gives you a Guaranteed Savings Amount on the date of your choice to fulfill your child's dreams and a range of options to enhance the financial security of your loved ones. This plan offers you: Guaranteed Savings Amount on date of your choice Joint life cover for you and your child Enhanced financial security for your loved ones How BSLI Dream Child Plan works: 1. You choose the Guaranteed Savings Date that suits your objectives. Your Guaranteed Savings Date is the policy anniversary when your child's attained age is from 18 to 27 years, subject to a minimum of 10 policy years. 2. Your Policy Term will be your Guaranteed Savings Date + 20 years. 3. You decide the Basic Premium you want to pay every year. 4. You will receive Basic Sum Assured which is the minimum death benefit payable on the demise of the primary life insured. The Basic Sum Assured is automatically determined as your Basic Premium multiplied by: The higher of 10 or the number of years to maturity divided by 2, for entry ages below 45; or The higher of 7 or the number of years to maturity divided by 4, for entry ages 45 and above 5. You have an option to choose an Enhanced Sum Assured to increase the financial security for your loved ones. With this option you can choose any amount of additional life cover over and above the Basic Sum Assured at a nominal cost. 6. You have an option to choose from our range of riders to further customize the financial security of your loved ones.

Plan Summary Entry Age - Grand/ParentChild Guaranteed Savings Date Policy Term 18 - 65 years, provided age on Guaranteed Savings Date is 75 or less 30 days - 17 years Child's age 18 - 27, subject to minimum of 10 policy years Guaranteed Savings Date + 20 years

Basic Premium

Minimum Rs. 12,000 p.a. if paid annually Minimum Rs. 15,000 p.a. if paid semi-annually Minimum Rs. 20,000 p.a. if paid quarterly Minimum Rs. 24,000 p.a. if paid monthly

Pay Term Enhanced Sum Assured

Years to Guaranteed Savings Date Minimum Rs. 50,000 Not exceeding Basic Sum Assured

Disclaimer Birla Sun Life Insurance - BSLI Dream Child Plan - are only the names of the Company and Policy respectively and do not in any way indicate their quality, future prospects or returns. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. Tax benefits are subject to changes in the tax laws. Insurance is the subject matter of solicitation. Investment risk in the investment portfolio is borne by the policy holder. For more details refer to product brochure. Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013. Reg No. 109

BSLI Dream Child Plan A plan that gives you a joint life cover for you and your child and a guaranteed amount when you require Benefits Based on your choices, you will receive a host of benefits as below: 1. Maturity Benefit: You will receive the Fund Value at maturity. 2. Death Benefit: In case of the unfortunate demise of the primary life insured during the policy term, the beneficiary will receive the Basic Sum Assured. The policy will

continue as long as the secondary life insured is alive. Prior to the Guaranteed Savings Date: In case of the unfortunate demise of the primary life insured (grand / parent), we will pay the Basic Sum Assured plus Enhanced Sum Assured, if any and all future Basic Premiums, in monthly installments starting from the next policy month In case of the unfortunate demise of the secondary life insured (child), we will terminate the policy on the Guaranteed Savings Date and pay the Fund Value as on that date In case of the last unfortunate demise of either the primary or secondary life insured, we will terminate the policy and pay the Fund Value plus the commuted value of all future Basic Premiums that are being paid by us Starting from the Guaranteed Savings Date: In case of the unfortunate demise of the primary life insured (child), we will pay the Basic Sum Assured In case of the last unfortunate demise of the primary or secondary life insured, we will terminate the policy and pay the Fund Value 3. Enhanced Sum Assured: Based on your needs you can increase the life cover over and above the Basic Sum Assured by opting for the Enhanced Sum Assured at inception. You can choose any amount of Enhanced Sum Assured, subject to a minimum of Rs. 50,000 and not exceeding Basic Sum Assured. 4. Joint Life Benefit: This is a joint life insurance policy where the grand / parent is the primary life insured and the child is the secondary life insured. On the Guaranteed Savings Date, the child becomes the primary life insured and the grand / parent becomes the secondary life insured. 5. Surrender Benefit: In case of emergency fund requirements, you can surrender your policy after the completion of five policy years, and receive the Fund Value at that time. 6. Guaranteed Additions: Your policy enjoys a boost in the form of additional units. For more details on the guaranteed additions, please contact your financial advisors or refer to our brochure. 7. Partial Withdrawals: You can make unlimited partial withdrawals to meet any financial emergencies any time after (a) five complete policy years or (b) secondary life insured attaining the age of 18, whichever is later. 8. Policy Loans: You can also avail loans on your policy.

Disclaimer Birla Sun Life Insurance - BSLI Dream Child Plan - are only the names of the Company and Policy respectively and do not in any way indicate their quality, future

prospects or returns. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. Tax benefits are subject to changes in the tax laws. Insurance is the subject matter of solicitation. Investment risk in the investment portfolio is borne by the policy holder. For more details refer to product brochure. Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013. Reg No. 109 Unique No.: 109L065V01

Why Bajaj Allianz Life Insurance? Bajaj Allianz Life Insurance Company Limited is a union between Allianz SE, the worlds leading insurer and Bajaj Finserv, one of Indias most respected names. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion Euros (over Rs. 55,00,000 crores). At Bajaj Allianz, we realize that you seek an insurer you can Trust your hard earned money with. Allianz SE has more than 110 years of Financial experience in over 70 countries and Bajaj Finserv, trusted for over 55 Years in the Indian market, are committed to offering you financial solutions that provide all the security you need for your family and yourself. At Bajaj Allianz , customer delight is our guiding principle. Ensuring world class solutions by offering you customized products with transparent benefits supported by the best technology is our business philosophy.

Are your children destined for greatness? Will they devise the universal currency, or solve the problem of global warming? Will they make music like we have never heard before, or keep shattering records in sports? Will they bring God to men, or peace to the world? Your children may just be the ones to end wars, feed the hungry, and care for many. Your child can aim for the highest echelons of success, for greatness, and immortal fame. Your child can dream. But before your child does, you must. Bajaj Allianz ChildGain Plan Taking care of a child is perhaps the most important job a parent can have. It is natural that you would like to give your child your best, and therefore, this is the time when careful financial planning can help you fulfill the aspirations that you have for your children. The Bajaj Allianz ChildGain Solutions help you to enjoy the joys of parenthood responsibly, with the reassurance of a secure future for your child. What does Bajaj Allianz ChildGain Plan offer you? Bajaj Allianz ChildGain offers a wide array of solutions that allows you to plan for your childs future by providing you with as many as 4 distinct and unique options. Option 1: ChildGain 21 Option 2: ChildGain 24 Option 3: ChildGain 21 Plus Option 4: ChildGain 24 Plus Common features in the 4 Options of Bajaj Allianz ChildGain Plan 1. Limited Premium Payment Term which means that the premiums are payable till your child attains age 18 years. 2. Your contributions grow by the way of compounded annual bonuses, which will be paid to you with the first guaranteed payout (policy anniversary following age 18 of your child), for in-force policies. In addition to the annual bonuses, a terminal bonus may also be paid.

3. You are eligible for Tax Benefits under Section 80C and Section 10(10)D of the Income Tax Act. 4. Assuring Your Childs Future: In an uncertain world, the prime interest of your child cannot be jeopardized in any way. Which is why we have built in some added benefits in all our plans to protect the interests of your childs future, by counter insuring you - the policyholder.

Inbuilt Benefits Premium Waiver Benefit: In case of death or accidental total permanent disability of the policyholder during the premium payment term, all future premium payments are waived. This benefit will not be available in the event of accidental permanent total disability after age 65 of the policyholder. Family Income Benefit: In case of death or accidental total permanent disability of the policyholder during the term of the policy, a monthly income benefit of 1% of the sum assured (12% per annum) subject to a maximum of Rs.10,000 p.m. becomes payable till the end of the policy term. This benefit will not be available in the event of accidental permanent total disability after age 65 of the policyholder. Option to Purchase further Insurance at Maturity: For ensuring continuity of the valuable insurance protection that the child was enjoying, we offer the child an option to purchase a with profits endowment or an equivalent plan from Bajaj Allianz Life Insurance Company for twice the amount of face value of this policy, without any medical examination, on the premium rates prevailing at that time (The application must be made at least 6 months prior to maturity of this policy)

Prohibition of Rebate: Section 41 of the Insurance Act, 1938 states: 1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. 2) Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.

MARKET SURVEY OF CONSUMER PREFERENCES

.Q-1 Gender ratio of the respondents Table Number - 1

PARTICULARS MALE FEMALE %AGE 55 45

%age
male female

45% 55%

Interpretation:
The graphical representation of the table shows that out of the100 Respondents, 55% were male and 45% were female.

Q.2- Occupation of the Respondents Table Number 2

PARTICULARS Service Professional Business Others Total

%AGE 45 13 30 12 100

%age
service professional business others

12% 45% 30% 13%

Interpretation

The graphical representation of the table shows that out of the 100 respondents, 45% respondents were in service , 30% were from business, 13% were from the professional and 12% were from the others working background

Q-3 Income level(per month) of the respondents. Table Number- 3 PARTICULARS Less than 15,000 15,001-25,000 25,001-35,000 35001 & above Total %AGE 40 24 21 15 100

% age
less than 15000 15001 - 25000 25001 -35000 35000 & above

15% 40% 21%

24%

Interpretation
The graphical representation of the table shows that out of the 100 respondents, 40% respondents were from the family whose income is less than 15,000, 24% respondents were from the family whose income is between the 15,001 25,000, 21% respondents were from the family whose income is between 25,001- 35,000 and rest were from the family whose income is above 35,001.

Q-4. Educational Background Table Number- 4 PARTICULARS High school Intermediate Graduate Post graduate Other Total %AGE 14 9 36 40 1 100

% age
high school intermediate graduate post graduate

14% 41% 9%

36%

Interpretation:

The graphical representation shows that out of the 100 respondents, 40 respondent are post graduate, 36 respondent are graduate, 14 respondent are high school, 9 are intermediate and rest have others educational background.

Q. Marital status of the respondents?

Table no. Particulars Married Unmarried %age 90 10

%age
married unmarried

10%

90%

Interpretation:
The graphical representation of the table shows that out of the100 Respondents, 90% were married and 10% were unmarried.

Q.5 How many children you have?

PARTICULARS ZERO ONE TWO MORE THAN TWO

%AGE 10 15 45 30

%age
zero one two more than two

10% 30% 15%

45%

Q.6 - How long you are taken the children policy?

Table No.- 6

S.NO
1 2 3 4

Time Period of taking the children policy Less than 1 year 1-5 years 5-10 years Above 10 years Total

Percentage of Respondents 34 37 20 9 100.0

%age
less than 1 year 1-5 year 5-10year above than 10year

9% 34%

20%

37%

33

Interpretation
Out of the 100 respondents 19 are using for less than year, 30 are using for 1-2years, 23 are using for 2-4 years, 28 are using for above 4 years.

Q. Which children policy you have taken adopted? Table no.

Particulars Life insurance corporation of India HDFC Life Insurance Max Life Insurance Reliance Life Insurance SBI Life Insurance ICICI Life Insurance Birla Sun Life Total %Age 35 29 7 9 5 7 8 100

%age
8% 7% 5% 9% 7% 29% 35% LIC HDFC LIFE MAX LIFE RELIANCE LIFE SBI LIFE ICICI LIFE BIRLA SUN LIFE

Interpretation
The graphical representation shows that out of the 100 respondents, 35 respondent has taken LIC Children policy, 35 respondent has taken HDFC Life Insurance, 7 respondent has taken Max Life, 9 Reliance Life, 5 respondents has taken SBI LIFE, 7respondents has taken ICICI Life, 8Respondents has taken Birla Sun Life, and rest have others Life Insurance.

Q. How long you taken the Children policy? Table no.

Particulars Less than one year 1-5 year 5-10 year More than 10 year %Age 34 37 20 9

%AGE
less than one year 1-5 years 5-10 year more than 10 year

9% 20% 34%

37%

Interpretation
The graphical representation shows that out of the 100 respondents, 34 respondents has taken Children policy less than 1 year, 37 respondent has taken children policy between 1 to 5 years, 20 respondent has taken Children policy between 5-10 years, 9 respondents has taken above the 10 years.

Q. What are the reasons for taking Children policy? Table no.
Particulars For higher education For risk cover For marriage For making business person For other purpose Total %Age 55 8 20 10 7 100

%age
7% higher education 20% 55% 8% risk cover marriage making business person other purpose

10%

Interpretation
The graphical representation shows that out of the 100 respondents, 55 respondents has taken Children policy for Higher Education ,8 respondent has taken children policy between for Risk cover, 20 respondent has taken Children policy for Marriage , 10 respondents has taken Children policy for making Business person, 20 respondent has taken Children policy for other purpose.

Q. Level of satisfaction from existing Children policy? Table no.

Particulars Highly Satisfy Satisfy only Less satisfy Not satisfy Total %Age 20 50 20 10 100

%age
10% 20% highely satisfy satisfy only less satisfy 50% not satisfy 20%

Q. in future if you want to purchase children policy for new child which one you prefer

Table no.
Particulars Life insurance corporation of India HDFC Life Insurance Max Life Insurance Reliance Life Insurance SBI Life Insurance ICICI Life Insurance Birla Sun Life Total %Age 21 43 8 7 5 6 10 100

%age
10% 5% 7% 8% 43% 6% 21%

LIC HDFC LIFE MAX LIFE RELIANCE LIFE SBI LIFE ICICI LIFE BIRLA SUN LIFE

Interpretation
The graphical representation shows that out of the 100 respondents, 21 respondent want to take LIC Children policy, 43 respondent want to take HDFC Life Insurance, 8 respondent want to take Max Life, 7 respondents wants to take Reliance Life, 5 respondents want to take SBI LIFE, 6respondents wants to take ICICI Life, 10 Respondents wants to take Birla Sun Life.

Q. How do you get to know about Children policy though? Table no.
Particulars Friends Relatives Natives Financial consultants Advertisement Total %Age 10 20 7 34 19 100

Sales
11% 22% Friends Relatives natives 38% 8% Financial consultants Advertisement

21%

Interpretation
The graphical representation shows that out of the 100 respondents, 35 respondent get to know about Children policy through Friends, 35 respondent get to know about children policy through Relatives, 7 respondent get to know about Children policy through Natives. Respondents have get to know about Children policy through Financial consultants, 7respondents get to know about Children policy through Advertisement.

METHODOLOGY OF THE PROJECT

Research Methodology is a way to systematically solve the research problem. When we talk to research methodology we not only talk of research methods but also consider the logic behind the methods we use in the context of our research results are capable of being evaluated either by the researchers himself or by others. The purpose of this section is to describe the methodology carried out to complete the work. The methodology plays a dominant role in any research work. The effectiveness of any research work depends upon the correctness and effectiveness of the research methodology.

RESEARCH DESIGN To accomplish the predefined objectives of the research, Descriptive Research Design is used to collect the require information from the sources. Descriptive research design is helpful in collecting in depth information, the demographic characteristics of the customers as well as to get their feedback.

RESPONDENTS Since the research objectives demand the feedback from the customers, the respondents are customers user and non users of Children policy. . SAMPLING METHOD It is not possible to get the information from each and every customer of Lucknow under the limited time and limited resources. Therefore a relevant and sizeable sample is drawn from the total number of customers.
DATA COLLECTION

The task of data collection begins after a research. A problem has been defined and research design/plan chalked out. While deciding about the method of data collection, the researcher should keep in mind two types of data viz., primary and secondary.

The primary data is the one, which is collected fresh and for the first time and thus happen to be original in character. The secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. The methods of collecting primary data is that to be originally collected, while in case of secondary data the nature of data collection work is merely that of compilation

COLLECTION OF PRIMARY DATA THROUGH Customer through Questionnaire

COLLECTION OF SECONDARY DATA THROUGH Various publications Technical and trade journals Books, magazines Internet

Sample Size Place

100 LUCKNOW City

INTRODUCTION

SWOT ANALYSIS OF HDFC LIFE

There are various tools which can be employed to understand the effectiveness of a companys strategies. SWOT Analysis outlines the Strengths, Weaknesses, Opportunities and Threats facing the operating strategy of a company. Analyzing the effectiveness of strategies, strength and weaknesses can be defined as internal to an organization. The businesses do not necessarily have to correct all its weaknesses however; it should be able to retain its strengths. The key success factor for operating in the targeted market depends on the external factor. ie. Opportunity. HDFC Life has numerable opportunities to enlarge its market share, however, they could be faced with a threat which could be challenge posed by an unfavorable trend or development that may lead into absence of defensive marketing action and thus diminish sales and profit.

STRENGTH:
Multi channel distribution and one of the largest distribution networks in India Implementing six sigma process Customer centric products and services Superior investment and risk management frame work 1Million policies sold within 3 and half years company has maximum number of MDRT as well as good number of HNI advisors training process of the company is very strong different plan for different peoples According to the change in surrounding environment like change in customer requirement.

WEAKNESS:

Company does not penetrate on the rural market at a time There is no plan for the low income group. Fees for the advisor is high than the other company.

OPPORTUNITY:

Insurance market is very big. Where company can expand its horizon in insurance industry. Through good investment and insurance it is easy to top Indian customers The huge insurance market is left so company has opportunity to expand our products To associate with the more number of HNI

THREATS:

Sold habits die hard: its still difficult task to win the confidence of public towards private company. The company is facing major threats from LIC which is an only government company. Plans for all income groups are not available which can create adverse effect later on the market share of the company.

FINDINGS The findings of the research I found that HDFC Life is the market leader in the life insurance industry in India. HDFC Life has strong brand image to influence and create large customer base. HDFC Life should launch new children policies that are in optimum balance between premium price and time.

 HDFC Life concern on its enterprise culture, in the company the relationship between individuals is mutual trust, fair and openness. HDFC Life makes courses to train its employees regularly which will assist HDFC Life in achieving its goals.

Conclusion
The Children polices of HDFC Life are very competitive and have an edge over the plans of other companies as they provide higher return to their customers. Children policies are beneficial from the long term perspective such as time varying from 11years to 25years.

 Most of the market is unaware about the HDFC Life Children policies and hence by making proper promotional strategies company can increase their sales.

LIMITATIONS
Details provided by respondents may vary from actual information. Sample size may not sufficient. Being a student lack of time and money is one of the limitations for data collection.

 Data collected can be differed from actual official facts and figures of the related organization. The information collected from the 100 respondents is assumed as information of whole.