c
 



 

1.1 INDUSTRY PROFILE

BRIEF HISTORY OF INSURANCE IN INDIA

Life insurance activity in its modern form started in India in 1818 to provide insurance for the
European soldiers and civilians to benefit their families. The first Indian Life insurance
company, the Bombay Mutual Life assurance society started its business in 1870. This was the
first company, which charged same amount of premium on both Indian and Non-Indian lives.
Earlier native Indian lives were considered more risky and hence were charged more premiums
for coverage. Foreign insurance companies dominated insurance business in India and enjoyed
monopoly right up to the end of nineteenth century.

Insurance regulation formally began in India through the passing of two acts, the life Insurance
companies act of 1912 and the provident act 1912, the first legislation was introduced with the
insurance act of 1938 that provided strict state control over insurance business in the country.
This provided an effective cheek on the large-scale frauds that sullied insurance business during
the 1930`s.

In the 1940s, there were more than 220 Insurance companies in India. There was no control over
the starting and closing of insurance companies. Customer`s money was on stake. After
independence, the business of insurance grew at a faster pace as the competition among the
Indian companies intensified. At this juncture, the government of India decided to merge all the
insurance companies. In the year 1956, the merger and nationalization of all existing life
insurance companies were done which resulted in giving birth to the life insurance corporation of
India (LIC). Closed to foreign competition, the Indian insurance industry was run by the

 
A.I.M.S.BANGALORE
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government for over 40 years through LIC and four general insurance companies that spanned
the length and breadth of the country. LIC enjoyed a monopoly for more than four decades.

GLOBEL MARKET PENETRATION

Penetration of life insurance is beginning to cut across socio-economic classes and

attract people who have never purchased insurance before. With the heightened
awareness and the consumer education comes a willingness to view life insurance
as an integral part of the financial portfolio. No longer is the life insurance a poorly
understood product that is pushed onto people. Nor is it a product that is only to be
bought hurriedly at the time of filling taxes. It`s now catching on as an important
element of the overall financial basket one that is purchased to fulfill specific
rational and emotional needs. Not only there has been a charge in the structure and
nature of the products, but also in the way they are sold.

INSURANCE PENETRATION ACROSS THE NATION:

From being a purely advisor ± driven business, the sector has seen the emergence
of a number of channels including bank assurance, corporate agents, brokers and
direct marketing. These channels, though new, are quickly gaining importance
primarily because they present the customer with multiple ways of approaching life
insurers. There has been a vast improvement in service attitude and delivery too.
As with privatization in any industry, the benefits aren`t restricted to the customer
alone, but extend to the society at large, by generating employment opportunities
for thousands.
 
A.I.M.S.BANGALORE
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Over the past two years, insurance companies; both life and non life insurance
have collectively hired at least 6,000 employees to staff their operation across the
country, another 90,000- odd have been appointed as life insurance advisors who
are engaged in counseling and recommending products to the insurance buyers.
The potential for the growth and spread of life insurance is high as in many other
Asian countries. This is due to stronger economic growth, rapid aging of
population, a weak social security and pension system leaves a majority of workers
with no old age income security. A well-developed insurance sector promotes
economic growth by encouraging risk-taking activity, and also has great potential
in mobilizing long-term contractual savings and the rest is crucially needed for
infrastructure development.

INSURANCE DENSITY ACROSS THE NATIONS

The global insurance market stands at 1521.2 billion US dollar and India stands
23rd position with 9.93 billion US dollar. Out of the 1 billion populations in India
35 millions are insured. India`s life insurance premium as percentage of GDP is
2.32%. The Indian insurance market is set to touch 25 billion US dollar by 2010.
On the assumption of 7% growth in GDP. The role of life insurance is a crucial
one for the development of our country. Life insurance companies have to invest
75% of its revenue in the government specified securities like electricity boards,
housing schemes, water supply and sewage projects, development of road and
transport, industrial development schemes etc.

 
A.I.M.S.BANGALORE
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INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY

Reforms in the insurance sector were initiated with the passage of the IRDA bill in
parliament in December 1999. The IRDA since its incorporation as a statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulation and
registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular to the life insurance companies was the launch of
the IRDA`s online service for issue and renewal of licenses to agents .

The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have a trained workforce of insurance agents in
place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 14 life
insurance and 6 general insurance companies have been registered.

MISSION OF INSURANCE SECTOR;-

 
A.I.M.S.BANGALORE
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DUTIES, POWERS AND FUNCTIONS OF IRDA

1. Adjudication of disputes between insurers and intermediaries or insurance

intermediaries.

2. Promoting and regulation professional organizations connected with insurance

and re-insurance business.

3. Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents.

4. Promoting efficiency in the conduct of insurance business

5. Regulation investment of funds by insurance companies

6. Issue the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration.

 
A.I.M.S.BANGALORE
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T1; PRIVATE LIFE INSURANCE PLAYERS IN INDIA

REG NO. DATE OF NAME OF THE COMPANY

REG.

101 23.10.2000 HDFC Standard life insurance company ltd.

104 15.11.2000 Max New York Life insurance company ltd.

105 24.11.2000 ICICI Prudential life insurance company lt6d.

107 10.01.2001 Om Kotak Mahindra life insurance company ltd.

109 31.01.2001 Birla Sun life insurance company ltd.

110 12.02.2001 Tata AIG life insurance company ltd.

111 30.03.2001 SBI life insurance company ltd.

114 02.08.2001 ING Vysya life insurance company private ltd.

 
A.I.M.S.BANGALORE
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116 03.08.2001 Alianz Bajaj life insurance company ltd.

117 06.08.2001 MetLife India insurance company pvt ltd.

122 14.05.2002 Aviva life insurance Co. India pvt ltd.

127 06.02.2004 Sahara India insurance company ltd

128 17.11.2005 Shriram life insurance company ltd.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE

INSURANCE BUSINESS IN India are;

u u

Oriental life insurance company, the first insurance company on Indian

soil started functioning.

1870: Bombay Mutual life assurance society, the first Indian life insurance
company started its business.

 
A.I.M.S.BANGALORE
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1912: The Indian insurance companies Act enacted as the first







 

 

1928: The Indian insurance companies Act enacted to enable the government to
collect statistical information about both life and non life insurance business.

1938: Earlier legislation consolidated and amended to by the insurance Act with
the objective of protecting the interest of the insuring public.

1956: 245 Indian and foreign insurance and provident fund societies take over the
central Govt and nationalized. LIC formed by an Act of Parliament, viz, LIC Act,
1956, with a capital contribution of Rs. 5crore from the Govt of India.



 
A.I.M.S.BANGALORE
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Definitions

@ 

 

A contract in which one party agrees to pay for another part¶s

financial loss resulting from a specific event (for example, a collision, theft, or
storm damage). Lease agreement generally requires that you maintain vehicle
collision and property damage.



 

A system of protection against loss in which a number of individuals

agree to pay certain sums of money, called premiums, to create a pool of money
which will guarantee that individual will be compensated for losses caused by
events such as fire, accident, illness, or death.

 



 
Insurance is the instrument of security, savings and
peace of mind. It Provides several benefits by paying a small amount of premium
to an insurance company as:-

1. Safeguard oneself and one¶s family for future requirements.

2. Peace of mind-in-case of financial loss.
3. Tax rebate.
4. Protection from the claim by creditors.
5. Security against a personal loan or other type of loan.
6. Provide a protection cover to industries, agriculture, women and child.
7. Provide good returns on investments.

 
A.I.M.S.BANGALORE
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ICICI Bank Prudential, UK




Aditya Birla Group Sun life, Cananda
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Bajai Auto Allianz, Germany
 

SBI Bank Cordiff, France
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HDFC Bank Standard Life, UK
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TATA Group AIG, US
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Max India New York Life,
US
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DABUR Aviva, UK
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KOTAK Mahindra Old Mutual, S.A
Bank
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Vysya Bank ING, Netherlands
 


Reliance Group None
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J & K Bank Met life, US


Sahara India None

 
A.I.M.S.BANGALORE
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HDFCS Standard Life Insurance Company Ltd. is one of India¶s leading

Private insurance companies, which offers a range of individual and group
insurance solutions, it is a joint venture between Housing Development Finance
Corporation Limited (HDFC Ltd.), and India¶s leading housing finance institution
and a Group Company of the Standard Life, UK. HDFC as on March 31, 2007
holds 81.9 Per cent of equity in the joint venture

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As a joint venture of leading financial Services groups, HDFC Standard Life

has the financial expertise required to manager your long-term investments safely
and efficiently.

 





We have a range of individual and group solutions, which can be easily

customized to specific needs. Our group solutions have been designed to offer you
complete flexibility combined with a low charging structure

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A.I.M.S.BANGALORE
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Our Gross Premium income, for the year ending March 31, 2008 stood at
Rs. 2, 856 crores and new business premium income at Rs. 1,624 crores.

The company has covered over 8, 77,000 lives year ending March 31, 2008.

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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 promoted with an
initial share capital of Rs. Million.


 

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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.

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main goals are to

1. Develop close relationships with individual households,

2. Maintain its position as the premier housing finance institution in the
country.

 
A.I.M.S.BANGALORE
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3. Transform ideas into viable and creative solutions,

4. Provide consistently high returns to shareholders,
5. We to grow through diversification by leveraging off the existing
client base

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The Standard Life Assurance Company (³Standard Life´) was

established in 1825 and the first Standard Life Assurance Company Act was
passed by parliament in 1832. Standard Life was reincorporated as a mutual
assurance company in 1925.

The Standard Life group originally operated only through branches or agencies of
the mutual company in the United Kingdom and certain other countries.

Its Canadian branch was founded in 1833 and its Irish operations in 1838. This
largely remained the structure of the group until 1996, when it opened a branch in
Frankfurt, Germany with the aim of exporting its UK Life assurance and pensions
operating model to capitalize on the opportunities presented by EC Directive
92/96/EEC (the ³Third Life Directive´) and offer a product range in that market
with features which local provides were unable to offer.

In the 1990s, the group also sought to diversify its operations into areas,
which complemented its core life assurance and pensions business, which the
intention of positioning itself as a broad range financial services provider.
 
A.I.M.S.BANGALORE
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Economic Development Area General Company (³TEDA´) became

operational in 2003. The group¶s Hong Kong subsidiary, Standard Life Asia
Limited (³SL Asia´), was incorporated in 1999 as a joint venture and became a
wholly ± owned subsidiary of Standard Life in 2002, The group¶s operations in
Hong Kong were established to give the group a presence in the far East from
which it could expand into China. The group¶s joint ventures in India which
Housing Development Finance Corporation Limited(³HDFC´) Were Incorporated
in 2000(in relation to the life assurance and pensions joint venture) and 2003 (in
relation to the investment management joint venture). The group¶s joint venture in
China with Tianjin

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µThe 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¶. ³The most obvious choice for all´.

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Values that we observe while we work:

Integrity

Innovation

Customer centric

 
A.I.M.S.BANGALORE
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Team work

Joy and Simplicity, People Care ³One for all and all for one´

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Housing Development Finance Corporation

HDFC Bank

HDFC Mutual Funds

HDFC Securities

HDFC Chubb General insurance company Limited



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3 MR Deepak S Parekh Chairman

3 MR Deepak M Satwalekar MD&CEO
3 MR Keki M Mistry
3 MR Ravi Narain
3 MR G.N. Bajpai
3 MR Alexander M Crombie
3 MR Gautam R Divan

 
A.I.M.S.BANGALORE
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3 MR Ranjan Pant
3 MRS Marcia Dominic Campbell
3 MR Keith Norman Skeoch

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Life insurance is a contract between a person and an insurance company by

which that person pays in a certain agreed-upon amount regularly (usually
monthly) so that upon that person¶s death, his or her family or other beneficiary
will receive a large lump sum payment and thereafter replaces the loss of income
or pension benefit caused by the death of the policy-holder.

 




1. Protection to the family: Helps maintain lifestyle even in the absence of

its earning member.
2. Savings: Life Insurance facilitates financial planning.
3. Security: Takes care of loans and debts in the event of the death of the
earning member.
4. Establish an emergency fund for the family to meet unexpected expenses.
5. Retirement Benefits.
6. Also Tax savings.
Different life insurance polities may very by frequency and amount of
payments (some policies have a fixed payment amount that never changes; others
will increase on a regular basis), term of coverage, and the amount and method of
 
A.I.M.S.BANGALORE
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final payment to the beneficiary. The following are the products offered by HDFC
standard life.

3 Savings plans
3 Protection plans
3 Retirement plans
3 Child plans
3 Investment plans
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The HDFC Unit Linked Young Star gives you:

1. Access to your accumulated fund before maturity

2. An outstanding investment opportunity by providing a choice of
thoroughly researched and selected investments
3. Valuable protection to your child in case you are not around
4. Flexible benefit combinations and payment options Valuable protection
to your child in case you are not around
Your can choose your premium and the investment fund or funds. We will
then invest your premium, net of premium allocation charges in your chosen funds
in the proportion you specify. At the end of the policy term, you will receive the
accumulated value of your funds.






   


 

 



 
A.I.M.S.BANGALORE
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3 Pay the Sum Assured you had chosen to your child

3 Continue your policy AND continue to pay the original regular
premiums you had chosen.
 

Life
 Speaks about death immediately, sum assured is paid & all remaining
premium are paid by insurance company and at the time of maturity fund value is
given.

Life & health :-Speaks about death immediately & Critical illness which ever is
earlier, sum assured is paid & all remaining premium are paid by insurance
company and at the time of maturity fund value is given. Critical illness include
stork, heart, organ transplant, cancer, kidney failure, and coronary artery bypass
surgery.

 
u: the beneficiary (child) is the sole person to receive the benefit under the
policy. Where the beneficiary is less than 18 years of age, the benefit will be paid
to the Appointee.

 
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there is no nomination facility

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22
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A.I.M.S.BANGALORE
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1. Access to your accumulated fund before maturity

2. An outstanding investment opportunity by providing a choice of
thoroughly researched and selected investments
3. Valuable protection to your child in case you are not around
4. Flexible benefit combinations and payment options Valuable protection
to your child in case you are not around
You can choose your premium and the investment fund or funds. We will
then invest your premium, net of premium allocation charge sin your chosen funds
in the proportion you specify. At the end of the policy term, you will receive the
accumulated value of your funds.






   


 

 


Pay the Sum Assured you had chosen to your child

Continue your policy AND continue to pay the original regular premiums
you had chosen.

 
A.I.M.S.BANGALORE
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Life:- Speaks about death immediately, sum assured is paid & all remaining
premium are paid by insurance company and at the time of maturity fund value is
given.


8


Speaks about death immediately & Critical illness which ever is
earlier, sum assured is paid & all remaining premium are paid by insurance
company and at the time of maturity fund value is given. Critical illness includes
stork, heart, organ transplant, cancer, kidney failure, and coronary artery bypass
surgery.

 
u: The beneficiary (child) is the sole person to receive the benefit under the
policy. Where the beneficiary is less than 18 years of age, the benefit will be paid
to the appointee.

 
1: there is no nomination facility

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22
745
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22
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A.I.M.S.BANGALORE
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it given 0.1% of loyalty bonus every year.

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The HDFC unit Linked Endowment Plan gives you:-

1. An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments.
2. Valuable protection to your family in case you are not around
3. Flexible benefit combinations and payment options
4. Flexible additional benefit options such as critical illness cover
5. Access to your accumulated fund before maturity
You cans choose your premium and the investment fund of funds. We will
then invest your premium, net of premium allocation charges in your chosen funds
in the proportion you specify. At the end of the policy term you will receive the
accumulated value of your funds.






   


 

 


We will pay the greater of your Sum Assured (less any withdrawals you have made
in the two years before your claim) and your total fund value to your family.

 
A.I.M.S.BANGALORE
c
  

 

 

Life

Life & health

Extra Life option

Extra Life & Health Option

 

You will receive the benefits due on maturity due on maturity at the end of the
policy term. In the event of your unfortunate demise, your nominee will receive the
benefits due. Nomination facilities are available.



Policy administration charges: Rs. 20 per month.

Fund manager charges; 0.8% per annum charge on daily basis.

Mortality charges: depends on age, features (on monthly basis).

Surrender charges are 3% of 2years of o/s premium.

 
 
It gives 0.1%of 2yours of o/s premium.

 
A.I.M.S.BANGALORE
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1. An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments.
2. A post retirement income for life.
3. Flexibility to plan your retirement date
4. Freedom to invest premiums as per your preference
You cans choose your premium and the investment fund of funds. We will
then invest your premium, net of premium allocation charges in your chosen funds
in the proportion you specify. At the end of the policy term you will receive the
accumulated value of your funds, which will be used to provide your pension
income.



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Your spouse will receive a cash lump sum to help him or her manage the
retirement years

 
A.I.M.S.BANGALORE
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.
 

You will get the value of the units in your policy.

Your can take up to 1/3 of your fund value as a tax-free cash lump sum and the rest
must be converted in to annuity

You can buy the annuity from us or any other insurer.

On death:

Unfortunate death your nominee will receive the unit fund value. Policy terminates
there after.



Policy administration charges: Rs. 20 per month.

Fund manager charges; 0.8% per annum charge on daily basis.

Revival charge: A charge of Rs. 250 is charged for revival to cover for
administrative expenses

 
A.I.M.S.BANGALORE
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Miscellaneous charges: This is a charge levied for any alterations with in the
contract like premium redirection for any alterations with in the contract like
premium reduction or ad-hoc policy servicing. 12 premium reduction requests will
be free in a policy year and any additional 12 premium reductions will be charged
Rs. 250 per request.

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1. An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments.
2. A post retirement income for life.
3. Flexibility to plan your retirement date
4. Freedom to invest premiums as per your preference
You cans choose your premium and the investment fund of funds. We will
then invest your premium, net of premium allocation charges in your chosen funds
in the proportion you specify. At the end of the policy term you will receive the
accumulated value of your funds, which will be used to provide your pension
income.



" 


   



 

 


Your spouse will receive a cash lump sum to help him or her manage the
retirement years.

 
A.I.M.S.BANGALORE
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.
 




You will get the value of the units in your policy.

Your can take up to 1/3 of your fund value as a tax-free cash lump sum and the rest
must be converted in to annuity

You can buy the annuity from us or any other insurer.

On death: - Unfortunate death your nominee will receive the unit fund value.
Policy terminates there after.



Policy administration charges :- Rs. 20 per month.

Fund manager charges :- 0.8% per annum charge on daily basis.

Revival charge:- A charge of Rs. 250 is charged for revival to cover for
administrative expenses

Miscellaneous charges: This is a charge levied for any alterations with in the
contract like premium redirection for any alterations with in the contract like
premium reduction or ad-hoc policy servicing. 12 premium reduction requests will

 
A.I.M.S.BANGALORE
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be free in a policy year and any additional 12 premium reductions will be charged
Rs. 250 per request.

 
 

At the end of every policy year we will increase the number of units in each of
your funds by 0.10% as long as your policy is in force or paid-up.

The compounding effect of this regular addition is expected to boost your final
vesting benefits.


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The area of operation was national since origin, but in the year 2000 the
company has a joint venture with standard life UK and entered Global market. So
the area of operation of the company is global since 2000.

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HDFC STANDARD LIFE INSURANCE is having

a joint venture with Standard life UK. It was registered on 23.10.2000 & while
registration it took the joint venture with standard life.

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New York Life Insurance Company Ltd

ICICI Prudential Life Insurance Company Ltd
Kotak Mahindra Life Insurance Company Ltd
Sun Life Insurance Company Ltd.

 
A.I.M.S.BANGALORE
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Tata AIG Life Insurance Company Ltd

Life Insurance Company Ltd
ING Vysya Life Insurance Company Private Ltd
Bajaj Life Insurance Company Pvt. Ltd
Life India Insurance Company Pvt. Ltd
SANMAR Assurance Company Pvt. Ltd
Life Insurance Company Ltd
SAHARA India Insurance Company Ltd
Life Insurance Company Ltd

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It covers over 693 cities & towns through its offices in India with over
79000 financial consultants by company. HDFC also has 833 corporate agents and
other sales intermediaries including banks for distribution of insurance products.
The company has a tied agency and an alternate channel. Tied agency mainly deals
with getting business and recruiting the life advisors, alternate channel. Tied
agency mainly deals with getting business and recruiting the life advisors, alternate
channel members are considered as the channel partners and they deal with mutual
funds. In the tied agency as well as alternate channel, each employee is provided

 
A.I.M.S.BANGALORE
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with a computer to perform their operations and a telephone connection is given as

they have to follow up their clients and telephones are very essential to make feel
calling.
Each branch is provided with a seminar room, a branch manager room,
regional manager room, cash counter for premium receipts and many other safety
and welfare facilities to make employees feel free to perform their work.

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3 ³Company of the Year´ for the seventh successive year (Money

Marketing Awards)
3 ³Best Pension Provider´ (2004 and 2005 Money Marketing Awards)
3 ³Best Pension Product´ (2003 ± 2005 Money facts Investment, Life &
Pension Awards)
3 ³Group Pensions Provider of the Year´ (Financial Adviser Life and
Pension Award 2004).

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A.I.M.S.BANGALORE
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The company is performing well at present. It has increased sales by 65% to

euro 70m (2006:euro42m) of which standard life share was euro 12m
(2006:euro11m). There was an increase of 57.9% growth during the year (2007-
2008). It also has the present share of 2.15%. As the HDFC is in various domains
of finance like Banking, Life insurance, Personal loan, Home loan, Mutual
Funds, Securities, and General insurance.

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:

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Mc Kinsley model is familiarly known as 7s model. Two persons namely, Tom

peter and Robert Waterman developed it. They have been consultants at Mc
Kinsley & co. at that time, they published their 7s model in their article ³structure
is not organization´ (1980) and in their books ³the art of Japanese management ³
(1981) and ³in search of excellence´ (1982)

The model is based on concept that an organization is not just structure, but
consists of seven elements.

 
A.I.M.S.BANGALORE
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The Mc Kinsley 7s model is widely discussed framework for viewing the

interrelationship of strategy formulation and implementation. It helps to focus
manager¶s attention on the importance of linking the chosen strategy to a variety of
activities that can affect the implementation of that strategy.

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The structure of the organization basically a network of authority and

responsibility, which has been assumed and delegated to the employees.
 
A.I.M.S.BANGALORE
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Organization structure defines the pattern of formal relationship of superiors and

subordinates. It may be regarded as network of role, relationship, assigned work
and delegated authority of employees. It provides the basic which the managers
and non-managerial employees perform the job assigned to them.

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HDFC is professionally managed organization with a board of directors consisting

of eminent persons who represent various fields including finance, taxation,
construction and urban policy & development. The board primarily focuses on
strategy formulation, policy and control, designed to deliver increasing value to
shareholders.


& 

3 MR Deepak S Parekh Chairman

3 MR Deepak M Satwalekar MD&CEO
3 MR Keki M Mistry
3 MR Ravi Narain
3 MR G.N. Bajpai
3 MR Alexander M Crombie
3 MR Gautam R Divan
3 MR Ranjan Pant

 
A.I.M.S.BANGALORE
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3 MRS Marcia Dominic Campbell

3 MR Keith Norman Skeoch

& 

HDFC SLIC strongly believes that the structure of an organization needs to be

dynamic, constantly evolving and responsive to changes both in the external and
internal environments.

The organizational structure is designed to support the business objectives, and is

flexible while at the same time ensuring effective control and supervision and
consistency in standards across business groups.

HDFC SLIC organization structure is flexible enough to counter balance of the

external and internal environment. This will help in the smooth functioning of the
company.

There are ten boards of directors who decide on & have the authority to take
decision. And in the next level the managing director who controls over finance,
marketing, IT, sales HR departments who comes under the top management.

Zonal officer, branch manager, territory manager, sales manager, all comes under
middle level management.

Assistant sales manager, agency manager, unit manager, assistant unit manager and
advisers comes lower level management.

'  
& 

 
A.I.M.S.BANGALORE
c
  

 

3 Finance departments
3 Marketing departments
3 Information departments
3 Sales departments
Motivating & involving every one in the organization for active participation
towards continuous improvement in its activities.











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According to Dale S. Beach ³Training is organized procedure by which
people learn knowledge and skill for a definite purpose´.

Thus training is a short-term education al process and utilizing a systematic

and organized procedure by which employees learn technical skill and
knowledge for a specific purpose.

Experienced and knowledgeable professionals of the company as well as

great achievers of the industry conduct more frequent training programs at
HDFC SLIC.

 
A.I.M.S.BANGALORE
c
  

 


 
  

Every organization big or small, productive or non-productive, economic
or social, old or newly established should provide training to all employees
irrespective of their qualification, skill, suitability, for job etc.
HDFC SLIC is keen in developing competent work force by conducting
ongoing training programs.

Specifically, the need for training arises due to the following reasons:
3 To match the employee specification with the job requirement and
organizational needs.
3 Organizational viability and the transformation process due to changes in
insurance industry,
3 Technological advances.
3 Organizational complexity due to diversified services change in job
assignment, etc.

 
A.I.M.S.BANGALORE
c
  

 

Y*


Style of management comprise of employees shard and common way of thinking

and individuals creative and innovative approaches to their work that can be
segregated into two significant components.

3 Organizational culture: the dominant values and beliefs, and norms, which
develop over time and become relatively enduring features of organizational
life.

Management style: more a matter of what managers do than what they say, how do
companies managers spend their time? What are they focusing attention on?

An HDFC the leadership style followed is democratic group effect.

Here all employees play an active part in giving suggestion for decision making.

All major decisions is taken in the branch concerned. Managing director & DGM
of the concerned department take the major decisions.

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The strategy is concerned with the direction in which various resources of

organization will be mobilized and utilized for maximizing the chance of
accomplishing specific objectives. It may be concerned as an action plan, initiative
or response of the organization foe seeking achievement of the objectives in
specific situation. Strategy is unified, comprehensive and integrated action plan
designed to achieve specific objectives.

 
A.I.M.S.BANGALORE
c
  

 

Now we shall look in to the strategy of the bank studying the
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In its branches.

The technology implementation will be looked after by department of information

technology, it will follow the following procedure in procuring and implementing
necessary software and hardware in installing core banking solution in its
branches.

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First step in any new technology implementation will be planning the things
which are essential while implementing the technology as such, accordingly
vijaya Bank has planned systematically on how to implement the core Banking
solution (CBS). In the beginning the Board of Directors(BOD)will take decision
on information technology implementation in its branches. In the later stages
rest of the procedure will looked after by department of information technology
(DIT). It will prepare the plans on following factors which are very essential for
implementing the technology:
3 Procurement of hardware and software
3 Training to employees on how to operate the software
3 Deployment of trained employees
3 Recruitment and placement of IT staff
3 Evaluation of project plans of technology and implementation

1!  
 

 
A.I.M.S.BANGALORE
c
  

 

The second step in implementing technology in its branches is

procurement policy. In this step the DIT will find the ways to procure the
Hardware and Software at a minimum cost. It follows centralized
procurement policy, wherein the Head Office procures the necessary
Hardware and Software. DIT will do the following works in the step:
3 Centralized procurement
3 Procurement of Hardware and Software
3 Tendering process
All the material will be procured through a systematic tendering
process. When any supplier willing to supply the necessary material in
the tendering process, his offer will be measured by two parameters; they
are
3 Technical Evaluation
His materials must be in complying with Bank¶s requirement.
Bank¶s officials will visit the warehouse of supplier and evaluate the
product whether it satisfy the Bank¶s requirement or not.
3 Price evaluation
Bank¶s officials also evaluate the prices of the respective materials.
3 Supply and delivery of material
3 Inspection in case of Hardware
7 

After buying necessary Hardware and Software from suppliers, the DIT
officials visit the necessary branches and install the Hardware and Software.

 
A.I.M.S.BANGALORE
c
  

 

When the branch is computerized the DIT officials train all the employees in
respective branch.
For the purpose of computerization and training the Bank has created two teams
called core Banking solution team and Net-work team. These teams consists the
DIT employees and their work is to look after the successful installation of
computers in the branches.

6

 
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It is like follow-up of what has been done. This work will be done by the
CBS team and Net-work team. There are problem occurs these teams will set right
the problem .

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The System contains certain rules and regulation and requires all the work
to be done accordingly. Planning and development department is an integaral part
of any system. In HDFC SLIC also P&D department performs various functions
such as Branch expansion, corporate planning, Management Information, and
Economic Research, now for the purpose of understanding how it works on above
function, we will study
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function.

In the first step Bank¶s officials goes to the area where it is planning to set up
branch. It conducts necessary surveys to find out the potentials of that particular

 
A.I.M.S.BANGALORE
c
  

 

place and evaluates the competition in that place. Officials also project the deposit
and advances it can mobilize and lend there.

Next step is obtaining permission from RBI. Permission for opening new
branch is mandatory for all banks. All banks have to fulfill the stringent rules laid
down by RBI for setting up new branch.

When permission obtained from RBI, the Bank has to plan for procuring
necessary buildings, HR and furniture for opening branch.

Y''

According to waterman and his colleagues the term ³staff´ refers to the way
organization introduces young recruits into the main stream of their activities and
the manner in which they manage their careers as the new develop into future
managers.

HDFC SLIC CO LTD has a well established system of recruiting graduates

from well known technical and management institution and providing them with
on

The job training in a number of functional areas before deciding on the final
placement in consultation with person concerned. Recruitment is done through
consultancy services, tele-recruitment or through advertisement. Generally
advertisement are given only for the high posts & that too after consultation with
the unit head skills refer to the ability to perform certain task based on company¶s
 
A.I.M.S.BANGALORE
c
  

 

strategy. Skills implemented at HDFC SLIC have been classified into three levels.
They are:

u 
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Strategic level requires more conceptual skills, experience, and
decision making ability.

1 ( 
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Managerial level requires managerial skill, problem solving
capacity
7 . 
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Operational level requires more technical skill, operational
knowledge training and development programs ensure people to know
how to do their jobs and stay up to date with latest techniques. HDFC
SLIC organizes series of training and development programs to
improve the skills of the employees. Executives are also required to
have very strong verbal and written communication skills and
especially dealer point service skills, as most of the time they will
need to communicate effectively with clients.

Managers also need to be skilled in multi tasking, efficient planning

and implementing of projects, like wise be good in time keeping and
managing staff.
And more essentially have a pleasing temperament, which is
important in the servicing industry, to improve the efficiency of
 
A.I.M.S.BANGALORE
c
  

 

executive team by motivating, to meet their business targets. The

strong quantitative background as most of the work involves dealing
with numbers, analyzing information, identifying patterns in the data,
and providing meaningfully sights to clients based on the data. Most
of the employees have commerce background and MBA.

Thus,
3 The skill developed by the organization is very astrictive.
3 The company is very strong in competing against the counterpart
and has the ability to lead from the front in satisfying the financial
needs.
3 The company is distinctively good at insuring and covering life of
the customers.

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The core fundamental values that are widely shared in the organization and
serve as guiding principles that are important. These values have great meaning
because they focus attention and provide a broader sense of purpose

Shared values refer to a set of values and aspiration that goes beyond the
conventional formal statement of corporate objectives. Culture of an organization
usually determined by the sum of the values benefits and working practice that
exits with an organization operational standard.

 
A.I.M.S.BANGALORE
c
  

 

The shared values considered by HDFC SLIC are customer first, boundary
standard.

= 
 




Own the customer, deliver the promise.
3 Keep customer interest in the center of all decisions.
3 Promise what you can, deliver it to.
3 Proactively seek of customer and act on it.
=  


Never say it¶s not my job
3 Offer help and support across function to ensure business success.
3 Seek and share ideas freely.
3 Recognize and respect internal customers.
3 Understand and value contribution from colleagues.

=. 



If is it be, it is up to me¶
3 Take responsibility and see tasks to completion.
3 Own mistakes, learn from failures.
3 Pursue goals relentlessly, never give up.
3 Be a team player, take ownership for team performance.

=!




µBoundless energy and enthusiasm¶
 
A.I.M.S.BANGALORE
c
  

 

3 Exhibit¶ winning
3 Demonstrate speed and urgency for achieving results.
3 Challenge status quo and do things differently.
3 Motivate lease members to reach full potential.
= 


µBe honest and fair in what you say and do¶
3 Practice what you preach.
3 Stand up honestly & fearlessly for what is right.
3 Act in a consistent & equitable manner.

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Technology plays a vital role in today¶s banking and insurance sector to be
very fast and accurate and in the process meet its day-to-day operations at a
lighting pace and tremendous accuracy. HDFC STANDARD LIFE is using
advanced technology to satisfy the customers in a large way.
3    
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HDFC enjoys a commanding market share of around 15% in the private
insurance sector where other insurance companies are fighting a battle to get their
market share into double figures.

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A.I.M.S.BANGALORE
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To attract new customers and retain old customers HDFC has range of
products tailor made for everyone¶s requirements ranging from investment plans to
child plans to retirement solutions. An array of products that cannot be found in
the shelf of any other life insurance company.
3 %
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HDFC perhaps has got the best infrastructure support both for its employees
and the advisors. They made huge investments in IT to make the company techno
savvy and competitive.
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HDFC has not catered into the rural market where there are tremendous
opportunities for the company¶s products provided they develop some innovative
products for the rural markets.
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The company is well known in urban areas due the promotions undertaken
in the city but HDFC does not have the brand recognition of an LIC in the rural
area. So HDFC has to undertake promotional activities to generate interest among
the rural folks if it intends to have substantial market share.
3 Y








 
A.I.M.S.BANGALORE
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HDFC group has many subsidiary products like General insurance. Mutual
funds, Securities, Retail banking etc.
3 !







The company fixed the minimum premium that difficult to pay for low-
income class people.
3 Insurance companies are often slow to respond to changing needs.
3 There is an increasing trend of financial weakness among the companies.
3 There are more competitors for agencies to compete with banks and Internet
players.

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As the population of our country is increasing the steadily the demand for
the insurance and other financial products are increasing simultaneously as there
are more people with a variety of needs.
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As the awareness increase in people about insurance. There is need to
expand more branches.

3 ( 
 
 

 




Increase in population in particular area. There is large growth in Retirement
solution and Health products.
3 The ability to cross sell financial services is barely being tapped.
 
A.I.M.S.BANGALORE
c
  

 

3 Technology is improving to the point that paperless transactions are

available.

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HDFC is given a tough run for its money due to the competition from other
private insurance companies like ICICIPRU, Bajaj Allianz and Birla Sun Life
insurance companies.

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šUESTIONNAIRE

I am Manohara.B. student of MBA, Nitte Meenakshi Institute Of
Technology, have undertaken a summer project regarding the topic ³CUSTOMER
perception towards insurance products of HDFC standard life insurance´ of HDFC
Standard life insurance I need your feedback for some of the questions.
Name:
Address:
1) Age :
a) Below ± 30 Years b) 30 ± 40 years
c) 40 ± 50 years d) 50 & above
2) Are you
a) Salaried b) Self Employed
3) What is your income every month?
a) Less than Rs. 10,000 b)Rs. 10,000 ± Rs. 15,000
c) Rs. 15,000 ± Rs. 20,000 d) above Rs. 20,000
4) Do you know about Insurance?
Yes No
If yes, the type of insurance
a) Life Insurance Yes No
b) General Insurance Yes No
5) Do you think insurance is necessary for your life?
A) Yes b) No

 
A.I.M.S.BANGALORE
c
  

 

6) If yes, Why?

-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
7) Rate the following Insurance Company?
[Put to most preferred and 4 for least preferred]
a) LIC [ ] b) HDFC Standard Life Insurance [ ]
c) ICICI Prudential [ ] d) Bajaj Alliance [ ]
8) What is the benefit of securing yourself in insurance company?
{Rank them accordingly}
a) Safe and secure [ ] b) High returns [ ]
c) Death Benefits [ [ d) Tax Benefits [ ]
9) What is the % of investment in Life Insurance out of total savings?
a) Below 10% b) 10 to 20%

c) 20 ± 30% d) 30% to 40%

10) Which insurance company do you prefer most?

{Put 1 to most preferred and 4 for least preferred}

a) LIC [ ] b) ICICI Prudential [ ]

c) Bajaj Alliance [ ] d) HDFC Standard Life Insurance [ ]

11) Which company is accessible for you?

 
A.I.M.S.BANGALORE
c
  

 

{Give 1 to most accessible and 5 to least accessible}

a) LIC [ ] b) HDFC Standard Life Insurance [ ]

c) Bajaj Alliance [ ] d) ICICI Prudential [ ] e)

Others [ ]

12) Which of standard life plans do you prefer most?

{Give 1 to most accessible and 4 to least accessible}

a) Protection plans [ ] b) Investment Plans [ ]

c) Saving Plans [ ] d) Pension Plans [ ]

13) Which plans to you prefer most?

a) Traditional Plan b) Unit Liked plan

14) In Unit linked plans, which plan is most preferable by you?

a) Freedom plan b) High life plan

c) New future perfect plan

15) In savings plan, which plan is most preferable by you?

a) Reassuring Life Plan b) Creative Plan c) Freedom plan

d) High life plan e) Endowment plan

16) How do you feel about the service of HDFC Standard Life Insurance
Company?

 
A.I.M.S.BANGALORE
c
  

 

a) Good b) Satisfactory

c) Average d) poor

17) Give your suggestions about HDFC Standard Life insurance Company?

Thank you for your kind cooperation

Date: Signature

 
A.I.M.S.BANGALORE
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A study on ³Customer perception towards insurance products of HDFC

standard life insurance´

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The title of the research is ?

 


 


 
 



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The main aim of the present study is to accomplish the following objectives:
3 To know the customer¶s perception towards HDFC insurance
products:
3 To identify insurance needs of the customer.

 
A.I.M.S.BANGALORE
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3 To know customer expectations with respect to the HDFC insurance

products.
3 To study the preference of customers on different insurance products
HDFC.

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The study is confined only to insurance investors who invested in various
insurance companies with special reference to HDFC Standard life insurance
Bangalore.

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Research is a systematic and formalized process it follows a certain sequence of

actions. A Systematic research methodology is followed to complete the study the
steps through which the research is undergone are

&




 The data required for the research can be either primary data or
secondary data or both. Primary data is the first hand information that is freshly
gathered by surveying the samples selected. Secondary data is the collected from
company¶s internal and external resources like company website, magazines, etc.

 
A.I.M.S.BANGALORE
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#

 Different people were randomly selected from different areas in
Bangalore were selected for survey. The sample size was 150.

 
 


It is the technique in which we selected the sample. The
non-probability sampling method the approaches for survey under which I have
selected the samples as per my convenience.

 
 



The selection of the method is used for the present study
under which the respondents are contacted personally and filled the šuestionnaire
through them.

 

  

 The required data is collected through the respondents
i.e. the need of life insurance and the opinion regarding private sector.

The community is adult day care centers, in alternate living facilities or in

nursing happens to be a mega opportunity in India. It¶s a business growth at rate of
15-20% annually and presently is of the order of rs450 billion. Together with
banking services, it adds about 7% to the country¶s GDP. Gross premium
collection is nearly 2% GDP and funds available with LIC for investing are 8% of
GDP.

Life insurance can ensure that, should the worst happen, your dependents
and any outstanding debts are taken care of

The government of India in 1956 brought together over 240 private life
insurance and provident societies under one nationalized monopoly corporation

 
A.I.M.S.BANGALORE
c
  

 

LIC was born. Nationalization was justified on the grounds that grounds that it
would create much-needed funds for rapid industrialization. This was in
conformity with the government¶s chosen path of state lead planning and
development.

  #

  

 the data collected from the respondents is

analyzed. The analysis is represented in the form of grabs. The data collected is
analyzed using the statistical tools.

!
 

  


 It is the last step in the market research, which
represents the termination of it. Here the results of analyzed data have been shown.

1








Though the present study aims to achieve the above-mentioned objectives in full
earnest and accuracy, it may be hampered due to certain limitations. Some of the
limitations of the study may be summarized as follows.
3 Difficulties faced during collection of data due to non-familiar of the
respondents.
3 Getting correct information from the customers is very difficult due to
their inherent problems and busy schedule.
3 Getting biased responses from the respondents.
3 The selection of customers to cover the various strata of the society is
tedious and time consuming.
3 Survey is restricted only for the Bangalore city.

 
A.I.M.S.BANGALORE
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3 Accuracy of findings is not exactly the opinion of whole Bangalore

region.
3 The study is based on a sample size and hence the findings cannot be
generalized.
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 To Know the age of the respondent.

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To know, how many people are aware of Insurance

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The main aim to frame the question is to know how important life
insurance in today¶s world.

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 To know the opinion of the customer why they secure their life
and what are reasons.

 
A.I.M.S.BANGALORE
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The purpose is to know the position of the insurance company when
the customer thinks of life insurance and to which company they prefer most.

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 To know what basic benefits are that the customers expects when they
secure their life.

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To Know the peoples percentage of investment of savings in Life
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 The aim is know, how many people are aware of HDFC Standard
Life Insurance.

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This šuestion is posed to know the, accessibility whether the
customer are getting the service easily or not.

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This question is asked to know which plan of HDFC is preferred
more by the customer.

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To know which plan in the unit linked is preferred

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To know the customers satisfaction about HDFC Standard Life
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