PROJECT REPORT

ON
COMPARATIVE STUDY ON TRADITIONAL PLANS OF HDFCSL AND AVIVA LIFE INSURANCE
Undertaken at

HDFC Standard Life Insurance Company Limited

Submitted in partial fulfillment of the requirements for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION

Under the Guidance of

Mr. Mayank Gupta
(Asst. Professor)

Submitted by:
Bhavna Singhal
BBA-VI Sem.(E)
05821001711

Session 2011 14

Ideal Institute of Management and Technology and School of Law

16 X, Karkardooma Institutional Area, (Near Telephone Exchange) Delhi-110092

PREFACE
Risk and uncertainties are part of lifes great adventure; Accidents, Illness, Theft & Natural Calamities they all are pillars
of this world. To overcome these risks and mishaps this project describes the policies and schemes of HDFC LIFE and
AVIVA Life Insurance Company. The way these companies provide different benefits to the policyholder. Insurance is
Cooperative venture where risk and uncertainties are shared by many. Now days a lot is being done to create awareness
among the Insuring Public about the Importance of Insurance in life. In this direction IRDA has planned to create
awareness through Electronic and Print media.
A study of Life Insurance describes the meaning of various policies, comparison and analysis and changing market
scenario.

TO WHOM IT MAY CONCERN

I BHAVNA SINGHAL , Enrolment No. 05821001711 from BBA-VI Sem of the IDEAL INSTITUTE OF
MANAGEMENT AND TECHNOLOGY AND SCHOOL OF LAW Delhi hereby declare that the Project Report (BBA310)entitled________________________________________________________________________________________
___ at ________________________________ is an original work and the same has not been submitted to any other
Institute for the award of any other degree.
Date:

Signature of the Student

Certified that the Project Report submitted in partial fulfillment of Bachelor of Business Administration (BBA) to be
awarded by G.G.S.I.P. University, Delhi by BHAVNA SINGHAL_, Enrolment No. 05821001711 has been completed
under my guidance and is Satisfactory.

Date:

Signature of the Guide

Name of Guide: Mr. Mayank Gupta
Designation: Asst. Professor

ACKNOWLEDGEMENT
A journey is easier when you travel together. Interdependence is certainly more valuable than independence. This report
is the result and supported by many people. It is a pleasant aspect that I have now the opportunity to express my gratitude for all of
them.
I would also express my gratitude towards my respective project guide:
Mr. Mayank Gupta who overlooked and tolerated my mistakes and guided me to the path of success. I will remain thankful to him
for being so generous in providing him valuable and timely guidance to me in completing this project. The knowledge offered was
from the repository of his vast experience. He gave me much needed valuable advice, positive criticism, suggestions and constant
encouragement through discussions.
It is a great privilege and matter of honour for me to complete this project on COMPARATIVE STUDY ON TRADITIONAL
PLANS OF HDFCSL AND AVIVA LIFE INSURANCE "
Last but certainly not the least; I am grateful to my Parents for their constant support and encouragement.

Bhavna Singhal

CONTENTS
PREFACE
CERTIFICATE
ACKNOWLEDGEMENT
CHAPTER I: INTRODUCTION
CHAPTER II: RESEARCH METHODOLOGY
CHAPTER III: DATA REDUCTION, PRESENTATION &

6
33
35

ANALYSIS
CHAPTER IV: OBSERVATION & FINDINGS
CHAPTER V: SUMMARY & CONCLUSIONS
CHAPTER VI:LIMITATION & CONSTRAINT

41
43
45

ANALYSIS
BIBLIOGRAPHY

47

CHAPTER-I
INTRODUCTION

1.1 INTRODUCTION
Life Insurance could be defined as a policy that will pay a specified sum to beneficiaries upon the death of the
insured. It is an agreement that guarantees the payment of a stated amount of monetary benefits upon the death
of the insured. Life Insurance could be said as protection against the death of the insured in the form of payment
to a designated beneficiary, typically a family member or business
It is basically risk insurance intended as protection against the financial consequences of the death of the insured
person which takes the form of payment of a previously agreed lump sum or pension to a beneficiary, if the
insured person dies during the term of insurance. In the case of pure life insurance, without any endowment
insurance component, no payments are due if the insured person survives the term of insurance.
In big terms Life Insurance is a contract agreement between the certificate holder and the insurance company,
providing a specified sum to beneficiaries upon the death of the insured. It is a coverage that pays out a set
amount of money to specified beneficiaries upon the death of the individual who is insured. It is a policy that
will pay a specified sum to beneficiaries upon the death of the insured. There are many types of life insurance,
including whole life, term life, universal life, etc. It is an insurance relating to a risk depending on human life.
This includes contracts providing payment on the insured person's death, endowments providing payment either
on survival to a specified date or on earlier death and annuities which are paid throughout the annuitant's
lifetime but cease on death.
BENEFITS OF LIFE INSURANCE
1. Superior to Any Other Savings Plan:
Unlike any other saving plan, a life insurance policy affords full protection against risk of death. In the
event of death of a policyholder, the insurance company makes available the full sum assured to the
policyholders near and dear ones.
2. Encourages and Forces Thrift:
A savings deposit can be easily withdrawn. The payment of life insurance premiums, however, is
considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. Thus, a
life insurance policy in effect brings about compulsory savings.
3. Easy Settlement and Protection against Creditors:
A life insurance policy is the only financial instrument the proceeds of which can be protected against
the claims of a creditor of the assured by effecting a valid assignment of the policy.
4. Administering the Legacy for Beneficiaries:

Speculative or unwise expenses quickly cause the proceeds to be squandered. Several policies have
foreseen this possibility and provide for payments over a period of years or in a combination of installments and
lump sum amounts.
5. Ready Marketability and Suitability for Quick Borrowing:
A life insurance policy can, after a certain time period (generally three years), be surrender for a cash
value. The policy is also acceptable as a security for a commercial loan, for example, a student loan.

IRDA
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA,
which was constituted by an act of parliament) specify the composition of Authority.
The Authority is a ten-member team consisting of
(a)

a Chairman;

(b)

five whole-time members;

(c)

four part-time members,

(all appointed by the Government of India)

Duties, Powers And Functions Of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
(1)

Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have
the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions
of the Authority shall include, (a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such
registration;
(b) Protection of the interests of the policy holders in matters concerning assigning of policy, nomination
by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and
other terms and conditions of contracts of insurance;
(c) Specifying requisite qualifications, code of conduct and practical training for intermediary or
insurance intermediaries and agents;
(d) Specifying the code of conduct for surveyors and loss assessors;
8

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the insurance and re-insurance
business;
(g) Levying fees and other charges for carrying out the purposes of this Act;
(h) Calling for information from, undertaking inspection of, conducting enquiries and investigations
including audit of the insurers, intermediaries, insurance intermediaries and other organizations
connected with the insurance business;
(i) Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers
in respect of general insurance business not so controlled and regulated by the Tariff Advisory
Committee under section 64U of the Insurance Act, 1938 (4 of 1938);
(j) Specifying the form and manner in which books of account shall be maintained and statement of
accounts shall be rendered by insurers and other insurance intermediaries;
(k) Regulating investment of funds by insurance companies;
(l) Regulating maintenance of margin of solvency;
(m)Adjudication of disputes between insurers and intermediaries or insurance intermediaries;
(n) Supervising the functioning of the Tariff Advisory Committee;
(o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and
regulating professional organizations referred to in clause (f);
(p) Specifying the percentage of life insurance business and general insurance business to be undertaken
by the insurer in the rural or social sector; and
(q) Exercising such other powers as may be prescribed.

THE IMPORTANT FEATURES OF INSURANCE ARE:

State insurance departments regulate the type of investments companies are permitted to make;

Investment profiles of companies differ depending on what type of insurance they underwrite;

Each state enforces laws to protect consumers against unfair discrimination in the provision of
insurance;

Consumers who do not qualify for property insurance in the private market may obtain it through
insurance industry operated plans;

1.2 OBJECTIVES OF STUDY

To compare HDFC standard life insurance company ltd. & AVIVA Life Insurance Company in light of
products offered.
To compare all the basic Product pertaining to traditional plans.
To understand the scope for HDFC standard life insurance company ltd. & AVIVA Life Insurance Company.
To do a S.W.O.T analysis of both HDFC standard life insurance company ltd. & AVIVA Life Insurance
Company.
1.3

SCOPE OF STUDY

This study is mainly confined to QUANTITATIVE factors such as pa. Premium and return on investment.
Comparison is done on the basis of secondary data.
Only traditional plans are studied for the project.
1.4 COMPANY PROFILE
1.4.1 HDFC Standard Life Insurance Company Limited.

1.4.2 Nature Of Organization

HDFCSLIC stands for Housing Development Finance corporation standard life insurance company. It is incorporated in
1977 as a public limited company with the specialization in provision of housing finance to individuals cooperative
societies and the corporate sector. One significant matter about the HDFC is that it is first private sector retail housing
finance company and it is listed on both BSE and NSE. Its market capitalization in June 2002.
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Standard life insurance is founded in 1825. Standard life was reincorporated as a mutual assurance company in 1925. Its
largest mutual life insurance company in Europe. For the joint venture between HDFC and SLIC, the discussion
commenced in January 1995 and the agreement signed in October 1995. Further joint venture agreement renewed in
October 1998. In January 2000 the life insurance project team established in Mumbai. At last the company officially
incorporated in 14th August 2000. It is the matter of great happiness for HDFCSLIC is that it is the first private sector life
insurance company to be granted a certificate of registration in 23rd October, 2000. Today 75% shareholding in the hand
of HDFC and Standard life has 25% shareholding in this joint venture.
HDFC's specialist team of over 1,700 (as on 31st March, 2012) trained and experienced professionals follows a 'singlewindow concept' for providing smooth and value added services at all stages. The team guides the customers right through
the entire process of property purchase - be it property search assistance, technical support prior to finalising the property,
legal advice on property related documentation, personalised home loancounseling or providing tailor-made repayment
options to suit the customer's specific requirements.
HDFC has a wide network of 326 offices (which includes 80 offices of HDFC's wholly owned distribution company
HDFC Sales Private Limited) catering to over 2,400 towns & cities spread across the country. It also has offices in Dubai,
London and Singapore and service associates in the Middle East region, to provide housing loans and property advisory
services to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
Our Parentage

HDFC Limited
HDFC Limited, India's premier housing finance institution has assisted more than 3.8 million families own a home, since
its inception in 1977 across 2400 cities and towns through its network of over 289 offices. It has international offices in
Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's
to own a home back in India. As of March 2011, the total asset size has crossed more than Rs. 1, 32,727crores including
the mortgage loan assets of more than Rs.1, 17,126 crores. The corporation has a deposit base of over Rs. 24,625 crores,
earning the trust of nearly one million depositors. Customer Service and satisfaction has been the mainstay of the
organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector
has come from several national and international entities including the World Bank that has lauded HDFC as a model
housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting
different countries including Egypt, Maldives, Mauritius ,and Bangladesh in the setting up of housing finance companies.

STANDARD LIFE PLC.

Established in 1825, Standard Life Plc. is a leading provider of long term savings and investments to around 6 million
customers worldwide. A Headquartered in Edinburgh, Standard Life has around 9,000 employees across the UK, Canada,
Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. The Standard Life group includes savings and
investments businesses, which operate across its UK, Canadian and European markets; corporate pensions and benefits
businesses in the UK and Canada; Standard Life Investments, a global investment manager, which manages assets of over
157bn globally; and its Chinese and Indian Joint Venture businesses. A At the end of April 2011 the Group had total
11

assets under administration of 198.4bn. Standard Life plc is listed on the London Stock Exchange and has
approximately 1.5 million individual shareholders in over 50 countries around the world.

1.4.3 VISION & MISSION

HDFC Vision
'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest
to deal with, offer the best value for money, and set the standards in the industry'.'The most obvious choice for all'.

HDFC Mission
To reach out an influence our target customer so as to provide them. World class Competitive insurance solution
.HDFCSLIC focuses long term strategy".

HDFC Values
Values that we observe while we work:

Integrity
Innovation
Customer centric
People Care "One for all and all for one"
Team work
Joy and Simplicity

1.4.4 Product Range Of HDFCSL

HDFC Standard Life offers a bouquet of insurance solutions to meet individuals need, the company has a range of
protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. The
customers can choose from a range of products to suit their life-stage and needs. At HDFC Standard Life realize that not
everyone has the same kind of needs. Keeping this in mind, varied range of products that customer can choose from to suit
all needs. These will help secure customer future as well as the future of family. The products of the company are
categorized into various sections which are as follows:

PROTECTION PLANS

SAVINGS &
INVESTMENT PLANS

CHILDREN'S PLANS

RETIREMENT PLANS

HEALTH PLANS

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 PROTECTION PLANS
Protection Plans help you shield your family from uncertainties in life due to financial losses in terms of loss of income
that may dawn upon them incase of your untimely demise or critical illness. Securing the future of one's family is one of
the most important goals of life. Protection Plans go a long way in ensuring your family's financial independence in the
event of your unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in
your family. No matter how much you have saved or invested over the years, sudden eventualities, such as death or critical
illness, always tend to affect your family financially apart from the huge emotional loss.
For instance, consider the example of Amit who is a healthy 25 year old guy with a income of Rs. 1,00,000/- per annum.
Let's assume his income increases at a rate of 10% per annum, while the inflation rate is around 4%; this is how his
income chart will look like, until he retires at the age of 60 years. At 50 years of age, Amit's real income would have been
around Rs. 10,00,000/- per annum. However, in case of Amit's unfortunate demise at an early age of 42 years, the loss of
income to his family would be nearly Rs. 5,00,000/- per annum.

Fig. 1
However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of service tax & educational cess) can
help Amit provide a financial cushion of up to Rs. 10,00,000/- for his family over a period of 25 years.

HDFC Term Assurance Plan

TYPES OF
PROTECTION PLANS

HDFC Premium Guarantee Plan

HDFC Loan Cover Term Assurance
Plan
HDFC Home Loan Protection Plan

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 CHILDRENS PLAN
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

Fig.2
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 Children's Plan

TYPES OF CHILDRENS
PLANS

HDFC SL Young Star Super II

HDFC SL Young Star Super

Premium

14

HDFC SL YoungStar Super II

There is no bigger joy than being able to fulfill your child's dream on your own. With HDFC SL YoungStar Super II you
can fulfill 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

;
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:
Switching: You can move your accumulated funds from one fund to another anytime
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 Premium

With HDFC SL YoungStar Super Premium you can fulfill 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 ULIP plan offers you choice of cover options and benefit payment preferences- all designed to suit your
needs.

15

Features

;
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:
Switching: You can move your accumulated funds from one fund to another anytime
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

SAVINGS & INVESTMENT PLANS

You have always given your family the very best. And there is no reason why they shouldn't get the very best in the future
too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today,
but also in the long term. More importantly, you have to ensure that your family's future expenses are taken care, even if
something unfortunate were to happen to you.

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TYPES OF SAVINGS & INVESTMENT PLANS

Type

Conventional Plans
HDFC SL New Money Back Plan
HDFC Savings Assurance Plan
HDFC Endowment Assurance Plan
HDFC Life Sampoorn Samridhi Insurance Plan

Regular
Premium
Single

Premium/
HDFC Single Premium Whole of Life Insurance

Investment
Limited

Plan
Premium
HDFC SL Classic Assure Insurance Plan

Payment

HDFC SL New Money Back Plan

Being self reliant is a nice feeling. Its comforting to be assured that you have necessary funds to live a fulfilling life. With
HDFC SL New Money Back Plan, you will get regular cash back at periodic intervals, so that you can fulfill your dreams
& aspirations. This plan also offers the financial protection to your loved ones when they need it the most, enabling you to
live life with peace of mind.
Features

Advantages
Money Back on completion of every 4 years, you would get a percentage of your sum assured as cash payout. The
payout will be as defined below.
Policy
Terms
(Yrs.)
12

4th yr

8th yr

25%

25%

Survival Benefit as a % of Sum Assured (Money Back Payout)

12th yr
16th yr
20th yr
50% + attaching

24th yr
17

16

25%

25%

bonus
25%

20

20%

20%

20%

25% + attaching
bonus
20%

24

15%

15%

15%

15%

20% + attaching
bonus
15%

25% + attaching
bonus

Provides valuable protection to your family by way of lump sum payment i.e. Sum Assured plus attaching bonsues, in
case of unfortunate demise within policy term, over and above any earlier payouts.
You can choose to pay your premium as either Annually, Half-Yearly, Monthly or Quarterly depending on your
convenience. You also have a range of convenient auto premium payment options
Tax benefits under sections 80C and 10(10D) of Income Tax Act, 1961

HDFC Assurance Plan

To fulfill your dreams for your family and yourself, you need to start saving today. And you not only need to save enough
but also need the assurance that your family's future is secure. Get the convenience of HDFC Assurance Plan. HDFC
Assurance Plan helps you conveniently build your long-term savings while keeping your family's future protected. This
'With Profits' savings plan helps you build your long-term savings while securing your family's future.
Features

;
Advantages
This plan is a 'With Profits' savings plan, which offers the following features
o

The plan receives simple Reversionary Bonuses, which are usually added annually

At maturity, the plan pays out the basic Sum Assured plus Reversionary Bonuses declared during the policy
term. Interim or Terminal Bonus may also be payable, if declared

The plan can be surrendered for cash value before maturity

Provides financial support to your family by way of a lump sum payment in case of your unfortunate death within the
policy term. The lump sum is the basic Sum Assured plus any bonus additions
Tax benefit under Section 80C and 10(10D) of Income Tax Act 1961, subject to provisions contained therein

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 HEALTH PLANS
Health plans give you the financial security to meet health related contingencies. Due to changing lifestyles, health issues
have acquired completely new dimension overtime, becoming more complex in nature. It becomes imperative then to have
a health plan in place, which will ensure that no matter how critical your illness is, it does not impact your financial
independence. In the race to excel in our professional lives and provide the best for our loved ones, we sometimes neglect
the most important asset that we have - our health. With increasing levels of stress, negligible physical activity and a
deteriorating environment due to rapid urbanization, our vulnerability to diseases has increased at an alarming rate.

Fig.3
As can be seen in the above chart, lifestyle diseases are set to spread at disturbing rates. The result - increased expenditure.
In many cases, people need to borrow money or sell assets to cover their medical expenses. All it takes is a suitable plan to
help you overcome the financial woes related to your health by paying marginal amounts as premiums. For example, if
you are 30 years old, then a mere sum of approximately Rs 3500* annually can provide you a health insurance plan of Rs
5 lakh over a period of 20 years, and a worry-free future for you and your family.

HDFC Critical Care Plan

TYPES OF HEALTH PLANS
HDFC Surgi Care Plan

RETIREMENT PLANS
Retirement Plans provide you with financial security so that when your professional income starts to ebb, you can still live
with pride without compromising on your living standards. By providing you a tool to accumulate and invest your savings,
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these plans give you a lump sum on retirement, which is then used to get regular income through an annuity plan. Given
the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore
become critical today.
India's average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years.
Life spans have been increasing due to better health and sanitation conditions in the country. However, the average
number of years of employment has not been rising commensurately. The result is an increase in the number of postretirement years. Accordingly, it has become necessary to ensure regular income for life after retirement, so that you can
live with pride and enjoy your twilight years.
Priorities at different stages of life:-

Fig.4
TYPES OF RETIREMENT PLANS

Type
Regular Premium

Conventional Plans
HDFC Personal Pension Plan
HDFC Life Single Premium
Pension Super Plan

Single

Premium/

Investment

20

HDFC Life Pension Super Plus Plan

You are thinking about retirement as a time when you would start relaxing, travelling, pursuing your interests - full time.
You want to enjoy your retirement on your own terms. All of these are possible only if you have assurance of income after
retirement. Investing in a pension plan is a way to financially secure your life - after retirement.
HDFC Life Pension Super Plus is a unit linked pension plan designed to build a corpus during the policy term so that you
can enjoy post retirement income for life.
Features

Advantages
Benefit of Assured Maturity (Vesting) Value - At the end of the policy term, you will receive higher of the
following
o

Fund Value or

Assured benefit of 101% of all premiums including top-up premiums paid till date

Your maturity (vesting) benefit will be used to provide you with guaranteed regular income i.e. an annuity, which
you have to purchase from us.
Opportunity to build corpus for post retirement income - Your premium will be invested in exclusive fund
which will allocate assets dynamically between equities and fixed income assets.
Benefits on maturity (vesting) - At vesting, you have to purchase an annuity from us. You can choose from a
range of annuity options. You will get guaranteed income for life for yourself and your spouse. You also have the
option to commute up to 1/3rd of the benefit at vesting tax free.
Benefit on death - In the event of demise during the policy term, your nominee will receive the death benefit
which will provide the much needed financial assistance.
Additional allocation of premium from 11th year onwards - Get benefit from staying invested for longer term
with Premium Allocation Rate of 102.5% from 11th year onwards

HDFC Life Single Premium Pension Super Plan

HDFC Life Single Premium Pension Super is a unit linked pension plan which will create corpus during the policy term so
that you can enjoy post retirement income for life. This plan will safeguard your investments and assists you to live
retirement days simply your way.

21

Features

Advantages
Assured Benefit: At the end of the policy term, you will receive higher of the following
o

Fund Value or

Assured benefit of 101% of single premium and top-up premiums paid till date

Your maturity (vesting) benefit will be used to provide you with guaranteed regular income i.e. an annuity, which
you have to purchase from us.
Opportunity to build corpus for post retirement income : Your premium will be invested in exclusive fund
which will allocate assets dynamically between equities and fixed income assets.
Benefits on vesting : At maturity (vesting), you have to purchase an annuity from us. You can choose from range
of annuity options. You will get guaranteed income for life for yourself and your spouse. You also have option to
commute up to 1/3rd of the benefit at vesting tax free.
Benefit on death : In the event of demise during the policy term, your nominee will receive the death benefit,
which will provide the much needed financial assistance.

1.6 INTRODUCTION of AVIVA LIFE INSURANCE

Aviva is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions
products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Aviva
has a 35 million-customer base worldwide. It has more than 332 billion of assets under management.
In India, Aviva has a long history dating back to 1834. At the time of nationalisation it was the largest foreign insurer in
India in terms of the compensation paid by the Government of India. Aviva was also the first foreign insurance company
in India to set up its representative office in 1995.
In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally
managed company, Dabur is the country's leading producer of traditional healthcare products. In accordance with the
government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per
cent share.
With a strong sales force of over 12,000 Financial Planning Advisers (FPAs), Aviva has initiated an innovative and
differentiated sales approach to the business. Through the Financial Health Check (FHC) Avivas sales force has been
able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis
22

of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the
FHC assesses and recommends the right insurance product for them.
Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise in Bancassurance
successfully in India. Currently, Aviva has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara
Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 15 Co-operative Banks in
Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal and Maharashtra and one regional Bank in Sikkim.
When Aviva entered the market, most companies were offering traditional life products. Aviva started by offering the more
modern Unit Linked and Unitised With Profit products to the customers, creating a unique differentiation. Avivas
products have been designed in a manner to provide customers flexibility, transparency and value for money. It has been
among the first companies to introduce the more modern Unit Linked
Products in the market. Its products include: whole life (Life Long), endowment (Life Saver, Easy Life Plus), and child
policy (Young Achiever) single premium (Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield),
fixed term protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium payment term
(LifeBond5). Aviva products are modern and contemporary unitised products that offer unique customer benefits like
flexibility to chose cover levels, indexation and partial withdrawals.
Avivas Fund management operation is one of its key differentiators. Operating from Mumbai, Aviva has an experienced
team of fund managers and the range of fund options includes Unitised With-Profits Fund and four Unit Linked funds: Protector Fund, Secure Fund, Balanced Fund and Growth Fund.
Aviva has 112 Branches in India (including rural branches) supporting its distribution network. Through its Bancassurance
partner locations, Aviva products are available in 378 towns and cities across India.
Aviva is also keen to reach out to the underprivileged that have not had access to insurance so far. Through its association
with Basix (a micro financial institution) and other NGOs, it has been able to reach the weaker sections of the society and
provide life insurance to them. For three consecutive years in 2005, 2006 and 2007, Aviva has had relatively high scores
on the parameters of Credibility, Respect, Fairness, Pride and Camaraderie in the survey administered by Grow Talent
Company Ltd. along with Great Places to Work Institute, Inc. and Business World magazine.

1.7 VISION & MISSION

AVIVA Vision

Aviva - where exceeding expectations through innovative solutions is "the" way of life This is the compelling
vision that Aviva India has created through the active contribution of its employees. These lines
not only define the way we live and work but also serve as a reminder to deliver the best to our
23

customers, shareholders, colleagues, partners & employees at all times.Embedded in this vision
are the core values of Integrity, Customer centricity, Passion for winning, Innovation and
Empowered team that we have collectively defined and committed to working towards.
AVIVA Values

Every member of the AVIVA Prudential team is committed to 5 core values: Integrity, Customer First, Boundary
less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our
success.

1.8 Product Range Of AVIVA Life Insurance

Investments in life insurance provide the dual benefit of saving for your future financial requirements as well as
financial security for your dependants in case of your death. Unlike other investment instruments (term deposits,
mutual funds and stock market securities etc.), the nature of life insurance products is such that they are
designed for the long term (10 years or more) and provide the best results when they are continued for their full
term.
PENSION PLANS
Pension products as the name suggests are meant for retirement planning and aim to maximize your post
retirement income
Aviva Freedom Life Advantage: Aviva Freedom Life Advantage allows you to choose the proportion of savings
and protection and change it subsequently, in line with your changing needs, with the option to pay premiums for
as few as 5 years, through:

Option to increase / decrease Life Cover (Sum Assured)

Option to cover husband and wife under the same policy

100% allocation from sixth year if Annual Premium is Rs. 1 lakh or more

Inbuilt Accidental Death cover

Loyalty additions every 3 years from the end of 10th policy year
Pay off all the premiums in 5 years or choose to pay throughout the term

Flexibility to choose Life cover

Enhance maturity proceeds and life cover with Top-up Premiums

Select from two optional riders for additional protection Aviva Dread Disease (DD) Rider and Aviva Term
Plus Rider

9 fund options (Bond-II, Protector-II, Balanced-II, Growth-II, Enhancer-II, Infrastructure, PSU, Dynamic P/E
Fund and Index-II Funds), AAA & STP

24

Aviva Dhan Vriddhi : Aviva Dhan Vriddhi is a traditional money back plan that provides you a guaranteed
amount of money at regular intervals along with protection through the Life Cover (Sum Assured), in the event of
death

Guaranteed returns: Guaranteed Additions @7% of Life Cover for each completed policy year till maturity

Limited premium payment: Premiums are not required to be paid during the last five years of the policy

Additional protection: You can opt from 5 riders to enhance protection with the benefits ranging from additional
Sum Assured for the incident covered, waiver of future premiums and also a regular income for your beneficiary
in case you are not around

Rebate for high Sum Assured: Rebate on basic premium is allowed if your Sum Assured is Rs. 1 Lac or higher

CHILD PLANS
Child plans are meant for investments benefiting your child when he/ she needs them. Investments in these
plans can be used for needs like funding higher education, setting up a business, marriage expenses etc.

Aviva Young Scholar Advantage : Aviva Young Scholar Advantage is a comprehensive plan that enables you to
secure your childs future in any eventuality through.

All future premiums being waived off and invested as a lump sum amount in to the funds, so the policy
continues even in the unfortunate event of the parents death while the Life Cover (Sum Assured) is paid out
immediately. These benefits are also applicable upon disability or critical illness if the Comprehensive Health
Benefit (CHB) Rider is opted

Provision of a regular income for the minor child, in the event of parents death if Aviva Child Education (CE)
Rider is opted for

An additional lumpsum being paid in the event of parents death if Aviva Term Plus Rider is opted

Loyalty Additions to enhance your Fund Value

A choice of 9 fund options; Investment flexibility through Automatic Asset Allocation (AAA) and Systematic
Transfer Plan (STP)
The product will be offered only to those who have atleast one child

Aviva Young Scholar Secure : At Aviva we believe there is no greater insurance in the world than a good
education. Education is the bridge between your childs dreams and reality. This journey has many milestones
-schooling years leading up to Board exams, entrance exams, college years and professional courses. Each of the
milestones has a cost attached to it right from extra coaching for Boards to reference material for entrance exams
to admission fee for a professional course.

Now guarantee funds for each of these milestones with Aviva Young Scholar Secure and provide your child the
best education. With AYS Secure you can plan your savings and payouts for your childs education in a manner
that match the childs educational journey.

HEALTH PLANS

25

When it comes to healthcare there can be no compromises. Even though healthcare comes with huge cost
implication and at most unexpected of times. One must at all time be prepared to meet this contingency by
setting aside a certain sum of money in form of saving or premiums for health assurance.
Aviva Health Secure : Due to our current lifestyle and stress levels, incidents of critical illnesses, especially at
younger ages have gone up. You would also be aware that the costs incurred in the treatment of such illnesses are
very high. Often, your savings are not enough to cover for these expenses which can lead to a compromise in
getting the best treatment.

Aviva Health Secure is an online health insurance plan that pays you a lump sum amount as decided by you in
case you are diagnosed with any of the 12 critical illness and procedures as listed ahead like Heart Attack, Cancer,
Bypass etc

Aviva Health Plus : Aviva Health Plus is a health cum savings plan that provides a cover on life, accidents,
critical illnesses, disabilities, surgery and hospitalization, while guaranteeing the return of a part of the premium
on maturity through.

Provision of a Life Cover (Sum Assured) on death

Additional protection against accidental death and disability

Coverage against Total Permanent Disability due to sickness

Coverage against 18 critical illnesses

Protection against 37 major surgeries

Cash payout in case of Hospitalisation

Guaranteed maturity benefit, even if all health benefits have been claimed

PROTECTION PLANS
Aviva LifeShield Plus : Aviva LifeShield plus provides comprehensive protection for your family at a nominal
cost through.

Payment of Life Cover (Sum Assured) to your family in the event of your death, with a provision of double the
Life Cover in the case of an accidental death.

Immediate payment of the Life Cover in the case of critical illness or permanent total disability, while life cover
continues till the policy term

Most competitive rates

Aviva LifeShield Advantage : Aviva LifeShield Advantage provides comprehensive protection for your family
incase you are not around. Additionally, all the money paid as premium will be returned to you on survival at the
end of the Policy Term through:

Payment of Life Cover (Sum Assured) to your family in the event of your death (Option A)

Additional protection against Accidental Permanent Total Disability (Option B)

Return of the money paid towards the base premium on your survival at the end of the policy term

Additional protection against Permanent Total Disability (PTD) and 18 Critical Illness covered by the Aviva
Dread Disease (DD) Rider (available with Option A regular premium mode)
26

COMPARATIVE ANALYSIS OF HDFCSL AND AVIVA LIFE INSURANCE PLANS

1. Children plan
Company Name
Plan Name
Age
Sum Assured
Premium
Lock in period
Surrender allowed

Death and Maturity

HDFC Std. Life Insurance

AVIVA life Insurance

Young Star Super II Plan

Young Scholar Advantage

1 to 20

6 to 18

Minimum-150000

Minimum-Rs.1,00,000

Maximum-No Limits
Minimum -15000
Maximum - No Limits
5years

Maximum-1crore
Minimum -10000
Maximum- No Limits
5years

Before lock in period- Insurance Cover

After 4 years: you get 94%

Will Cease

After 5 years: you get 96%

Death Benefit Under Life Option- has

only Death Benefit
Under Life + Health Option- has Death
Benefit + Critical Illness Benefit
Maturity Benefit On maturity, the
Fund Value is paid

After 6 years: you get 98%

Death Benefit- The amount of Life
Cover shall be payable to the nominee
Maturity Benefit This allows you to
keep the money invested in the fund
even after maturity and enables you to
receive the same systematically over a
period of 1 to 5 years. You can opt for

Fund Option

Balanced Fund
Blue Chip Fund
Opportunities Fund

Term Rider

Critical Illness Benefit rider- This rider is

available with the Life + Health option of
this plan

this option at maturity

No fund option

AVIVA Child Education(CE)

Rider,Comprehensive Health Benefit
Rider (CHB)

27

2. Health plan
HDFC Std. Life Insurance

AVIVA life Insurance

HDFC Critical Care Plan

Aviva Health Plus

18 to 65

18 to55

Minimum-50000

Minimum-Rs.50000

Premium

Maximum- No Limits
Minimum 5000
Maximum - No Limits

Lock in period

Minimum - 5yrs
Maximum- 20yrs

Maximum-350000
Minimum - 5000
Maximum-35000+ applicable service
tax
5years

Company Name
Plan Name

Age
Sum Assured

Surrender allowed

Before lock in period- Insurance Cover

After 5 years: you get 96%

Will Cease

After 6 years: you get 98%

After 7years & above: you get 100%

Death and Maturity

Death Benefit Under Life Option- has

only Death Benefit.
Maturity Benefit On maturity, the
Fund Value is paid.
No additional benefits are paid by the
co.

of fund value
Death Benefit-Full life cover is
payable, irrespective of the health
benefits already paid. The policy
stands terminated after the death
benefit is paid. Maturity Benefit At
maturity, you receive a Guaranteed
Maturity Benefit, depending upon your

Fund Option

Term Rider

Defensive Managed Fund

Balanced Managed Fund
Equity Managed Fund
Covers as many as 30 critical illnesses
Accidental Death and Disability
Benefit (ADD)

age at entry
Balancer ll
Protector ll

Critical Illness (CI) benefit

Surgical Cash benefit (SCB)

Sickness-only Total Permanent

Disability (STPD)

3. Protection Plan
28

Company Name
Plan Name
Age
Sum Assured
Premium
Lock in period
Surrender allowed

Death and Maturity

Fund Option

Term Rider
Charges

HDFC Std. Life Insurance

AVIVA life Insurance

HDFC Term Assurance Plan

Aviva LifeShield Plus

18 to 65

18 to 55

Minimum-Rs.1,00,000

Minimum-Rs.1,00,000

Maximum-No limit
Minimum-Rs.10, 000
Maximum-no limit
3 years

Maximum-1crore
Minimum-Rs.20, 000
Maximum-3,00,000
3 years

After 3 years: no charges

After 3 years: you get 92%

Before lock in period-30% of

After 4 years: you get 94%

outstanding premium

After 5 years: you get 96%

OP= difference between regular

After 6 years: you get 98%

premium expected & received in the

After 7years & above: you get 100%

first two years

On Death-Sum Assured + future
premiums will be given by HDFC on
the behalf of policyholder.
On maturity- Value of accumulated

of fund value
On Death- Sum Assured + Fund Value
will be given to the nominee.
On Maturity-Fund value is given to the

fund is given to the beneficiary.

Liquid Fund
Secure Managed Fund
Defensive Managed Fund
Balanced Managed Fund
Equity Managed Fund
Growth Fund
For accident, Critical Illness- max.
Rs.25,00,000

policyholder
Maxi miser ll
Balancer ll
Protector ll
Preserver
For accident, Critical Illness,

Fund Mgmt. Charges- 0.80% per

Permanent Disability
Fund Management Charges-Different

annum

Charges for different funds selected.

Administration Charges- Rs.20 per

Maxi miser ll-1.50% p.a.

Balancer ll-1.00% p.a.
Protector- 0.75% p.a.
Preserver- 0.75% p.a.
Administration Charges-Rs.60 per

Month
Risk Benefit Charges- Depend upon
the age of the policyholder.
Partial Withdrawal Charge- 6 partial
withdrawal in a policy year is free.

29

4. Retirement Plan
Company Name
Plan Name

Age
Sum Assured
Premium

HDFC Std. Life Insurance

AVIVA life Insurance

HDFC Life Pension Super Plus Plan

Aviva Freedom Life Advantage

Minimum -18 yrs

Maximum -55yrs
Minimum-200000

Minimum -18yrs
Maximum- 55yrs
Minimum-Rs.150000

Maximum-No Limits
Minimum - 20000
Maximum - No Limits
5yrs

Maximum-1corore
Minimum - 15000
Maximum- 300000
5years

Before lock in period- Insurance Cover

After 6 years: you get 98%

Will Cease

After 7years & above: you get 100%

Lock in period
Surrender allowed

Death and Maturity

Fund Option

Term Rider

Death Benefit In the event of demise

during the policy term, your nominee
will receive the death benefit which
will provide the much needed financial
assistance.
Maturity Benefit At vesting, you have
to purchase an annuity from us. You
can choose from a range of annuity
options. You will get guaranteed
income for life for yourself and your
spouse. You also have the option to
commute up to 1/3rd of the benefit at
vesting tax free.
Defensive Managed Fund
Balanced Managed Fund
Equity Managed Fund
Get benefit from staying invested for
longer term with Premium Allocation
Rate of 102.5% from 11th year
onwards)

of fund value
Death Benefit-Life Cover or Fund Value,
whichever is higher, pertaining to top-up
premiums, if any, shall also be payable

Maturity Benefit the Fund Value

pertaining to both regular premiums and
top-up premiums will be paid to the
policyholder along with accrued Loyalty
Additions, if any as on the maturity date.

Bond II,Protector II,Balanced

II,Growth II, Enhancer II,
Infrastructure, PSU, Dynamic P/E
Fund and Index II Funds
Aviva Dread Disease (DD) Rider,
Aviva Term Plus Rider

SWOT ANALYSIS OF HDFC LIFE INSURANCE AND AVIVA LIFE INSURANCE

30

SWOT

STRENGTH

HDFCLIFE INSURANCE

Premiums

are

increasing

AVIVA LIFE INSURANCE

The organization offers

and so are commissions.

maximum number of riders /

The variety of products is

Add On benefits along with

increasing.

the insurance policies

Transparency in working is

Aviva offers triple cover in

followed.

case of accidental death in

Fund charges are less i.e.

mass surface public transport.

0.8%

Stronger financial base.

Employee

Only Aviva Life offers major

surgical benefit rider.

centric

organization.
WEAKNESSES

Insurance companies are

Aviva Life does not offer a

often slow to respond to

critical illness rider, i.e. the

changing needs

policy continues even after

Buying insurance policy is a

claim to the full face amount.

cumbersome process

This rider is only offered by

HDFC Standard Life
Insurance Company.

Aviva Life does not offer

competitive group insurance
policies.

SWOT

HDFCLIFE INSURANCE

AVIVA LIFE INSURANCE

31

OPPORTUNITY

Technology is improving,

Large size of untapped

paper less transactions are

population is also an

available

opportunity for Aviva Life.

Busy Life, customers need

Change in life style and

flexible and customizable

perception in favor of Life

life

insurance is another opportunity

Mobile banking, mobile

for Aviva Life.

insurance can be a hit.

Continuous improvement in
technology is an opportunity for
the organization.

THREATS

Weather cycles

New substitute product

government securities also

emerging

poses a threat to the

Increasing expenses and

organization.

lower profit margins will hit

Reducing interest rates for

Competition posed by the

hard on the smaller agencies

existing life insurers and new

and insurance companies

entrants is also a threat to the

company.

A fast technological
obsolescence is another threat
posed by the organization.

32

CHAPTER-II
RESEARCH METHODOLOGY

2.1 Research Methodology

Research refers to search for knowledge. In other words research is defined as a careful investigation or
inquiry especially through for new facts in any branch of knowledge.
33

Research Methodology is one of the important aspects of any project. This gives us clear-cut view of
method so used while gathering the information so needed for the completion of the report.
a) Type of Study: Study is Quantitative in nature.
b) Sample size-15
2.2 Data Collection
These include books, the internet, company brochures, product brochures, the company website, competitors
websites etc, newspaper articles etc.

2.2.1 Data type

Secondary Data: Secondary data is one which has already been collected by someone else and which has already

been passed through statistical processing. Under this project secondary data is been collected from journals,
magazines, & web sites.

Primary data are always collected from the source. It is collected either by the investigator himself or through

his agents. There are different methods of collecting primary data. Each method has its relative merits and
demerits. The investigator has to choose a particular method to collect the information. The choice to a large
extent depends on the preliminaries to data collection some of the commonly used methods are discussed below.
1. Direct Personal observation:
This is a very general method of collecting primary data. Here the investigator directly contacts the informants,
solicits their cooperation and enumerates the data. The information are collected by direct personal interviews.
The novelty of this method is its simplicity. It is neither difficult for the enumerator nor the informants. Because
both are present at the spot of data collection. This method provides most accurate information as the
investigator collects them personally. But as the investigator alone is involved in the process, his personal bias
may influence the accuracy of the data. So it is necessary that the investigator should be honest, unbiased and
experienced. In such cases the data collected may be fairly accurate. However, the method is quite costly and
time-consuming. So the method should be used when the scope of enquiry is small.
2. Indirect Oral Interviews :
34

This is an indirect method of collecting primary data. Here information are not collected directly from the
source but by interviewing persons closely related with the problem. This method is applied to apprehend
culprits in case of theft, murder etc. The informations relating to one's personal life or which the informant
hesitates to reveal are better collected by this method. Here the investigator prepares 'a small list of questions
relating to the enquiry. The answers (information) are collected by interviewing persons well connected with the
incident. The investigator should cross-examine the informants to get correct information.
This method is time saving and involves relatively less cost. The accuracy of the information largely depends
upon the integrity of the investigator. It is desirable that the investigator should be experienced and capable
enough to inspire and create confidence in the informant to collect accurate data.
3. Mailed Questionnaire method:
This is a very commonly used method of collecting primary data. Here information are collected through a set
of questionnaire. A questionnaire is a document prepared by the investigator containing a set of questions. These
questions relate to the problem of enquiry directly or indirectly. Here first the questionnaires are mailed to the
informants with a formal request to answer the question and send them back. For better response the
investigator should bear the postal charges. The questionnaire should carry a polite note explaining the aims and
objective of the enquiry, definition of various terms and concepts used there. Besides this the investigator should
ensure the secrecy of the information as well as the name of the informants, if required.
Success of this method greatly depends upon the way in which the questionnaire is drafted. So the investigator
must be very careful while framing the questions. The questions should be
(i) Short and clear
(ii) Few in number
(iii) Simple and intelligible
(iv) Corroboratory in nature or there should be provision for cross check
(v) Impersonal, non-aggressive type
(vi) Simple alternative, multiple-choice or open-end type
35

(a) In the simple alternative question type, the respondent has to choose between alternatives such as Yes or
No, right or wrong etc.
For example: Is Adam Smith called father of Statistics ? Yes/No,
(b) In the multiple choice type, the respondent has to answer from any of the given alternatives.
Example: To which sector do you belong ?
(i) Primary Sector
(ii) Secondary Sector
(iii) Tertiary or Service Sector
(c) In the Open-end or free answer questions the respondents are given complete freedom in answering the
questions. The questions are like What are the defects of our educational system ?
The questionnaire method is very economical in terms of time, energy and money. The method is widely used
when the scope of enquiry is large. Data collected by this method are not affected by the personal bias of the
investigator. However the accuracy of the information depends on the cooperation and honesty of the
informants. This method can be used only if the informants are cooperative, conscious and educated. This limits
the scope of the method.
4. Schedule Method:
In case the informants are largely uneducated and non-responsive data cannot be collected by the mailed
questionnaire method. In such cases, schedule method is used to collect data. Here the questionnaires are sent
through the enumerators to collect informations. Enumerators are persons appointed by the investigator for the
purpose. They directly meet the informants with the questionnaire. They explain the scope and objective of the
enquiry to the informants and solicit their cooperation. The enumerators ask the questions to the informants and
record their answers in the questionnaire and compile them. The success of this method depends on the sincerity

36

and efficiency of the enumerators. So the enumerator should be sweet-tempered, good-natured, trained and wellbehaved.
Schedule method is widely used in extensive studies. It gives fairly correct result as the enumerators directly
collect the information. The accuracy of the information depends upon the honesty of the enumerators. They
should be unbiased. This method is relatively more costly and time-consuming than the mailed questionnaire
method.
5. From Local Agents:
Sometimes primary data are collected from local agents or correspondents. These agents are appointed by the
sponsoring authorities. They are well conversant with the local conditions like language, communication, food
habits, traditions etc. Being on the spot and well acquainted with the nature of the enquiry they are capable of
furnishing reliable information.
The accuracy of the data collected by this method depends on the honesty and sincerity of the agents. Because
they actually collect the information from the spot. Information from a wide area at less cost and time can be
collected by this method. The method is generally used by government agencies, newspapers, periodicals etc. to
collect data.
Information are like raw materials or inputs in an enquiry. The result of the enquiry basically depends on the
type of information used. Primary data can be collected by employing any of the above methods. The
investigator should make a rational choice of the methods to be used for collecting data. Because collection of
data forms the beginning of the statistical enquiry.

37

CHAPTER-III
DATA REDUCTION,
PRESENTATION & ANALYSIS

Q1. MARKET SHARE OF LIFE INSURANCE COMPANIES

LIFE INSURER
HDFC STANDARD LIFE
ICICI PRUDENTIAL
AVIVA LIFE INSURANCE
BAJAJ ALLIANZ
LIC
TATA AIG
ICICI PRUDENTIAL BIRLA SUN LIFE
ING VYSYA

NUMBER OF POLICIES
14
5
8
9
64
8
4
7
38

BHARTI AXA
OTHERS

3
2

6%

2% 2% 4%

3%
6%
ICICI PREU LIFE

11%
7%

BIRLA SUN LIFE

AVIVA LIFE INSURANCE
BAJAJ ALLIANZ
LIC

6%

TATA AIG
HDFC STANDARD LIFE
ING VYSYA
BHARTI AXA
OTHERS

53%

Analysis:
In India, the largest life insurance company is Life Insurance Corporation of India. It has been in existence in India since
1956 and is completely owned by the Government of India. Today the organization has grown to 2048 offices serving 18
crore policies and has a corpus of over 340000 crore INR.
The second largest private life insurance company is HDFC. It has a wide network of 326 offices (which includes 80
offices of HDFC's wholly owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns & cities
spread across the country.

Q2. ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE

Premium paid (p.a.)

No. of respondents

Rs. 5000 - Rs. 10000

45

Rs. 10001 - Rs. 15000

29

Rs. 15001 - Rs. 24900

19

Rs. 25000 - Rs. 50000

12

Rs. 50001 - Rs. 60000

Rs.60001 - Rs. 80000

2
39

Rs. 80001 - Rs. 100000

Analysis:
From the chart above we find that, 39% of the respondents pay an annual premium less than Rs. 10001 towards life
insurance. 25% of the respondents pay an annual premium less than Rs. 15001 and 17% pay an annual premium less than
Rs. 25000.
Only 19% of the respondents pay more than Rs. 25000 as premium They should introduce more products like This would
definitely increase their market share as more individuals would be able to afford the policies/plans offered.

Q3. CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM

Willingness

to

spend

on No.

of

premium

respondents

Percentage

Less than Rs. 6000

20

15%

Rs. 6001 - Rs. 10000

35

27%

Rs. 10001 - Rs. 25000

54

41%

Rs. 25001 - Rs. 50000

20

15%

Rs. 50001 - Rs. 100000

2%
40

Analysis:
From the graph above, we can clearly see that 41% of the respondents would be willing to spend between Rs. 10001 Rs.
25000 for life insurance. 27 % would be willing to spend between Rs. 6001 Rs. 10000 per annum. Only 15% would be
willing to spend more than Rs. 25000 per annum as life insurance premium.
We could say that the maximum premium payable by most consumers is less than Rs. 25000 p.a..

Q4. CHART SHOWING IDEAL POLICY TERM

Ideal policy term

No. of respondents

3 - 5 years

25

6 - 9 years

20

10 - 15 years

46

16 - 20 years

18

21 - 25 years

12

26 - 30 years

More than 30 years

Whole life Policy

41

Analysis:
From the chart given above it can be seen that 35% of the respondents prefer a policy term of 10 15 years, 19% prefer a
term of 3 5 years and 15% prefer a term of 6 9 years. This means that Aviva could introduce more plans wherein the
premium paying term is less than 15 years.
The outlook of insurance as a product should be changed from something which you pay for your whole life (whole life
policy) and do not receive any benefit (the nominee only receives the benefit in case of your death) to an extremely useful
investment opportunity with the prospects of good returns on savings, tax saving opportunities as well as providing for
every milestone in your life like marriage, education, children and retirement.

Q5. MINIMUM EXPECTED RETURN ON INVESTMENT

Expected Returns

No. of respondents

Less than 5%

5% - 10%

20

11% - 15%

22

16% - 20%

23

21% - 25%

22

26% - 30%

13

31% - 40%

11

41% - 50%

More than 50%

10

42

8%
5%

2%
15%
Less than 5%

8%

5% - 10%
11% - 15%
16% - 20%
17%

10%

21% - 25%
26% - 30%
31% - 40%
41% - 50%
More than 50%

17%
18%

Analysis:
From the chart above it can clearly been seen that 18% of the respondents would like 16 20% returns, 17% would like
returns between 21 25% and 17% would like returns of 11 15% on their investments. Therefore the average return on
investment should be at least 16 20 %.
Most consumers are willing to adapt to some amount of risk but still want some guaranteed returns. Therefore the bulk of
investment should be made in the balanced fund with 50% debt and 50% equity. The returns on the Secure Fund are
guaranteed as these involve investment is government securities and the debt market. But the returns on these instruments
are low (8 10%). If the company invests in shares, returns are higher (39%) but correspondingly risk borne by the policy
holder is also higher. Therefore a good combination of the two instruments is often a wise choice.

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CHAPTER- IV
OBSERVATION & FINDINGS

4.1 Findings Of The Study

HDFC has higher premium as compare to Aviva still HDFC has more costumers because of its brand name.
HDFC provide wide range of products in comparision with Aviva.
HDFC has more branches all over India then Aviva.
No company has any specific plan for rural market.

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45

CHAPTER- V
SUMMARY & CONCLUSIONS

5.3 Suggestions, & Conclusion

SUGGESTIONS

Advertisement should be done on television and especially Posters and Banners. This will greatly help in raising
awareness level.
Private companies give better services to the customers as compared to public companies.
The private company should create good relations and communication.
Private companies should collaborate to spread awareness regarding the benefits of insurance plans provided by
the Private Companies.
Agents have got maximum influence on customers. They are the one who introduces the prospect to different
policies. So agents should be given full-fledged training and the training should be strict.
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CONCLUSION

On the basis of my study, I conclude that, both the companies are providing very good facilities to their customers.
HDFC Standard Life Insurance is the one that is providing wavier of premium to its customer in case of death of the life
assured, whereas AVIVA is not providing this facility to its customers.
Both the companies have different lock in period. Surrender charges of these companies are different from each
other. On maturity, both the companies provide the amount equal to the market value of the units. Charges taken to
manage the fund are different in both the companies.term riders are different from each other.

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CHAPTER- VI
LIMITATION & CONSTRAINT
ANALYSIS

5.2 Limitations
Time for the completion of the project was too short to do an in-depth study.
I could not get accurate information about the marketing strategies adopted by both companies

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BIBLIOGRAPHY
49

BIBLIOGRAPHY
WEBSITES
https://www.google.co.in/search?
newwindow=1&site=&source=hp&q=hdfc&oq=hdfc&gs_l=hp.1.0.0l10.2139.3631.0.5195.4.3.0.1.1.0.180.475.0j
3.3.0....0...1c.1.41.hp..0.4.477.U2WUGVL3ZoE
http://www.hdfc.com/others/downloads.asp
http://www.hdfc.com/corporate_governance/cor_introduction.asp
http://www.hdfc.com/pdf/ceo-cfo.pdf
http://www.hdfc.com/corporate_governance/cor_updates_bod.asp

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 https://www.google.co.in/search?
newwindow=1&q=aviva+life+insurance&oq=aviva&gs_l=serp.1.1.0l10.134010.134957.0.136349.5.4.0.1.1.0.18
2.625.0j4.4.0....0...1c.1.41.serp..0.5.629.0DDsMLOX-zg
http://www.avivaindia.com/Individual.aspx
http://www.avivaindia.com/en/BecomeAnAdvisor.aspx
BROUCHERS

HDFC Standard Life Insurance

AVIVA Life Insurance

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