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Documenti di Professioni
Documenti di Cultura
Insurance, focuses primarily on assessing the future of the Insurance sector in India
as seen through the eyes of HDFC. Evaluating the performance of this sector has been
Future of a particular service depends on the performance of that service sector and
performance means. From strictly financial perspective, the management can achieve
In the first part, a detailed introduction about the company profile and Product and
services.
In the second part, research methodology, observation, and suggestion that had been
given to the company based on the research study has been given.
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ACKNOWLEDGEMENT
the project.
I also offer my gratitude to Mr. Ravi Saxena under whose guidance the project work
Ravi saxena
(Manager-channel development)
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CONTENTS
Page no.
• Company Certificate
• Preface
• Acknowledgement
PART : 1
Introduction
• Malhotra Report
• The partners
Company Profile
• The partnership
• Our mission
• Our values
• Our vision
Product Information
PART : 2
• Objective of Study 51
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• Limitation of Study
• Significance of Study
• Scope of Study
• Findings (Results)
• Suggestions Recommendation
• Conclusion
• Bibliography
• Questionnaire
• Abbreviations
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INDIAN INSURANCE INDUSTRY
The Indian Insurance sector has been going through a transition. With the private sector
companies making a foray into the market, the scenario has started to change.
Liberalization of the sector has helped in bringing about several positive developments,
including the expansion of the market size, introduction of new product, and
development of new channel of distribution in the market. However, the most important
development is that the insurance companies have become more responsible towards
customer needs.
The first visible change can be found in the introduction of new products. The most
popular among the products are the Unit Linked Policies. Riders have already been
introduced and have become very popular. Some of the new policies introduced are:
• Policies launched for the future benefit of children along with the coverage of
• Travel insurance scheme for students going abroad for higher studies
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• Weather insurance policies
IRDA has, so far, issued 21 regulations, covering all aspects of insurance business.
Many more are likely to come up emphasizing openness and transparency. The industry
settlement of claims, innovative covers for unusual risk and the use of alternative
distribution channels. The regulator will play a major role in bringing discipline in the
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MALHOTRA REPORT, 1994
The Government of India appointed a committee under the chairmanship of Late R.N.
the Insurance Sector. The committee submitted its report in January 1994. It
recommended that:
• No company should deal in both life and general insurance through a single
entity.
The committee felt the need to provide more autonomy to Insurance companies in
order to improve their performance and enable them to act as independent companies
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with economic motives. For this purpose, it proposed setting up an independent
regulatory body.
Regulatory Authority (IRA) was set up in January 1996. The word “development” was
AUTHORITY
Role of IRDA:
promote, and ensure orderly growth of the life and general insurance industry.
• A chairperson
Inaction of IRDA:
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• To conduct inspection/investigation, etc.
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THE PARTNERS
Founded in 1977, HDFC today is the market leader in human finance in India and has
extended financial assistance for more than 19 lakh homes. HDFC has over 120
offices in India, presently. It has one international office in Dubai and Service
Associates in Bahrain, Kuwait, Qatar, Saudi Arabia, and Sultanate of Oman. HDFC’s
asset base amounts to over Rs. 21,450 crore. Its financial strength is reflected in
highest safety ratings of ‘FAAA’ and ‘MAAA’, awarded by CRISIL and ICRA – two
of India’s leading credit rating agencies, respectively, for the last 7 years,
respectively. It has a depositor base of over 13 lakh depositors and deposit agents
force of over 50,000. Of the total deposits, 82% are sourced from individual and trust
depositors, which demonstrate the tremendous confidence that retail investors have in
the company.
need:
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• HDFC Mutual Funds for mutual fund products
• HDFC Life Insurance Company for life insurance and pension products, and
Being an institution that is strongly committed to the highest standards of quality and
excellence, HDFC has won several accolades in the past few years. One such award is
the “Ramakrishna Bajaj National Quality Award” for the year 1999. This award was
instituted to award recognition to Indian companies for business excellence and quality
achievement. HDFC is the only company, so far, to receive this award in the service
category.
Founded in 1825, Standard Life has been at the forefront of the UK insurance
industry for 177 years by combining sound financial judgment with integrity and
reliability. The largest mutual life company in Europe, it has operations in United
Kingdom, Ireland, Spain, Germany, Austria, and Canada with representative offices
One of its most recent successes was launch of Standard Life Bank on 1st January,
1998. The introduction of its innovation mortgage product in January 1999 had an
immediate impact on the UK market, according for 11% of all new lending within the
first operational year. The current deposit base of the bank is US $7.1 billion.
Standard Life has total assets of over US $100 billion and new premium last year of
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US $9.2 billion. Its US investment portfolio accounts for approximately 2% of all
shares listed in London Stock Exchange. It is one of the few insurance companies in
the world to receive AA rating from two the leading international credit rating
Not surprisingly, Standard Life is rated as one of the strongest companies in the
world. In financial terms, the quality and values Standard Life brings to this venture
Besides being voted ‘Company of the Year’ for overall service, for the third
consecutive year, Standard Life has been recently voted ‘Company of the Decade’ by
independent brokers.
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HDFC STANDARD LIFE
About us
Board members
Our parentage
The partnership
Our mission
Our values
Our vision
About us
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
Limited (HDFC Ltd.), India’s leading housing finance institution and The Standard
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Life Assurance Company, a leading provider of financial services from the United
Kingdom. Both the promoters are well known for their ethical dealings and financial
strength. Thus committed to being a long-term player in the life insurance industry –
• Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the
efficiently.
• Range of Solutions
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
Our cumulative premium income, including the first year premiums and renewal
We have covered over 1.6 million individuals out of which over 5, 00,000 lives have
Board members
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Brief profile of the Board of Directors:
• Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive
whole-time director of HDFC Limited in 1985 and was appointed as its Executive
• Mr. Keki M Mistry joined the Board of Directors of the Company in December,
Limited in 1981 and became an Executive Director in 1993. He was appointed as its
Public Accountants.
April, 2002. He has been with the Standard Life Group for 34 years holding various
senior management positions. He was appointed as the Group Chief Executive of the
Standard Life Group in March 2004 and is also the Chief Executive of Standard Life
Standard Life Assurance Company and is responsible for Group Operations, Asia
Services Centre. Ms. Campbell joined the Board of Directors in November 2005.
Investments Limited and is responsible for overseeing Investment Process & Chief
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Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James
Capel & Co. holding the positions of UK Economist, Chief Economist, Executive
Director, Director of Controls and Strategy HSBS Securities and Managing Director
International Equities. He was also responsible for Economic and Investment Strategy
research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in
November 2005.
• Mr. G N Bajpai was the former chairman of Life Insurance Corporation of India
and Securities and Exchange Board of India. Mr. Bajpai retired from Life Insurance
Corporation of India with more than 3 decades of experience and further served SEBI
as its chairman for 3years, during which time he had strengthened the compliance
enforcement in SEBI.
the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman
professional interest. Mr. Divan has wide experience in auditing accounts of large
public limited companies and nationalised banks, financial and taxation planning of
individuals and limited companies and also has substantial experience in structuring
Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-
President at Bain & Company, Inc., Boston, where he led the worldwide Utility
headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and
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• Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange
of India Limited. Mr. Ravi Narain was a member of the core team to set-up the
Securities & Exchange Board of India (SEBI) and is also associated with various
• Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company
since November, 2000. Prior to this, he was the Managing Director of HDFC Limited
since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the
Our parentage
HDFC Limited
• HDFC is India’s leading housing finance institution and has helped build more
• In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
• Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
• Awarded The Economic Times Corporate Citizen of the year Award for its long-
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Standard Life Assurance Company
• Standard Life has been looking after the financial needs of customers for more
It currently has a customer base of over 7 million people who rely on the company for
• Rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a
rating of A1 by Moody’s.
Awards)
• - “Best Pension Product” (2003 -2005 Money facts Investment, Life & Pension
Awards)
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Our group companies
The partnership
HDFC and Standard Life first came together for a possible joint venture when they
entered the Life Insurance market in January in 1995. It was clear that both the
companies shared similar values and belief and a strong relation formed quickly. In
October 1995, both the companies signed a 3 year joint venture agreement.
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The next three years were filled with uncertainty, due to changes in Government and
Authority) Act passed in the parliament. Despite these, both the companies remained
In October 1998, the joint venture agreement was renewed and additional resource
made available. Around this time Standard Life purchased 2% stake in Infrastructure
Development Finance Co. Ltd. (IDFC). Standard Life started to use the services of
Towards the end of 1999, the opening of the market looked very promising.
Both the companies agreed that the time was right to move the operation to the level
of action. Therefore, in January 2000, an expert team from the UK joined a selected
team from HDFC to form the core project team, based in Mumbai.
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Incorporation of HDFC Standard Life Insurance Company
The company was incorporated on 14th August, 2000 under the name of Standard
HDFC’s ambition from as far back as October 1995 was to be the first private
company to re-enter the Life Insurance market in India. On 23rd September, 2000,
this ambition was realized when HDFC Standard Life was the only company to be
HDFC group is the main shareholder in HDFC Standard Life with 81.4% ownership
while Standard Life 18.6%. Given Standard Life’s existing investment in HDFC
HDFC and Standard Life have a long and close relationship built upon single value
and trust. The ambition of HDFC Standard Life is to mirror and showcase the parent
companies and to be the yardstick by which all other insurance companies in India
can be measured.
Our mission
“We aim to be the top new life insurance company in the market”
This does not just mean being the largest or the most productive/competitive in the
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• Customer service of the highest order
Our Values
constant endeavor. We shall do this by offering life insurance and pension products.
• TRUST: We appreciate the trust placed by our policy holders in using our
products. We will aim to manage their investments very carefully and live under trust.
• Integrity
• Innovation
• Customer centric
• Team work
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Our 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
Company' in 2003
• Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s
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Terms of life are hard, but the terms of insurance are easy!!
RESEARCH METHODOLOGY
UNIVERSE OF STUDY
THE SAMPLE
DESCRIPTIVE RESEARCH
DATA COLLECTION
• UNIVERSE OF STUDY
Jaipur
• THE SAMPLE
The study is based on the data collected from some selected locations in jaipur. I have
taken a sample of 300 customers. The aim is to know the views of the people. Due to
shortage of time, the sample taken is small representing the views of all the people.
Thus, for the present study, the sample can be said to be representative of all the
people of jaipur.
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• DESCRIPTIVE RESEARCH
Descriptive research studies are those studies which are concerned with describing
studies, the researcher must be able to define clearly what he wants to measure and
must find adequate method for measuring it along with a clear-cut definition of the
‘population’ he wants to study. Since the aim is to obtain complete and accurate
information, the procedure to be used must be carefully planned. So, I have planned
• DATA COLLECTION
I have used the following data collection methods during my research study:
• SECONDARY DATA
PRIMARY DATA: Primary data is that data which is taken directly from the survey
method
SECONDARY DATA: Secondary data is that data which is taken from manuals,
books, journals, and business magazines, etc. It is also called second-hand data.
Although there are many methods of sampling which can be applied in research
studies, but during the survey, I have applied two methods, which are as follows:
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CLUSTER SAMPLING METHOD:
It is difficult and even impossible to identify uniquely each member of the population.
properties. Typical clusters are city blocks, households, family organizations, farms,
etc.
Thus, for example, in a survey of city population, no up-to-date lists of the residents are
available but a map showing blocks and then sample of each block may be drawn.
Count may be taken of those who live in these blocks. Using cluster sampling for my
research work, I have divided the whole city of Jaipur from where I have started my
survey, which is c scheme into clusters like first, second, third, and fourth.
A sampling procedure for which possible combination of two or more elements have
equal chance of being selected is called Simple Random Sampling.In general, a simple
random sampling procedure of ‘n’ elements from the population has equal chance of
of estimates obtained from such samples which decrease as sample size increase.During
my survey, I adopted random sampling method where I have selected the customer
As we know that collection of data is very necessary for completion of any research
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A. PROBLEM DEFINIATION
A tough competition with LIC, which was enjoying monopoly until the advent
Qualifying ratio of the IRDA examination has gone down due to centralization
B. QUESTIONNAIRE DESIGN
C. DATA COLLECTION
For recruitment procedure a data of 100 people was collected which also
contains their contact number. Data was also collected through telephonic
interview. Care was taken to ensure representation of people from all age
groups, social and economic categories. Data was also collected personally
D. SAMPLE DESIGN
The sample was designed in such a way so as to ensure representatives from all
E. ANALYSIS
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Insurance: The concept
When insurance is purchased, the risk of financial loss due to happening of that
uncertain event is transferred from the policy holder to the insurance company. When
the claim arises, company pays a lump sum amount to the policy holder or to her
nominee that will be utilized to generate income for them. It is important to note that
we do not protect the life of the policy holder but her income earning capacity. We
offer plans that cover the risk of income earning capacity on happening of specified
uncertain events.
Uncertain events
Uncertainty is part of our everyday life. However, all the uncertain events cannot be
uncertain events when income earning capacity is stopped, which happens due to the
• Death
• Sickness
• Accident
• Retirement
Firstly, three events are uncertain. Nobody can predict when they happen. So we have
insurance cover for them. Retirement, however, is a certain event. We know our age
could be minor illness or accidents resulting in temporary disability. All of them need
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not result into loss of income earning capacity. We cover only those accidents and
sicknesses where the income earning capacity is lost either permanently or for a
different companies are also a part of protection category. The claim is paid only if
the stipulated event happens otherwise on maturity at the end of the term.
Insurance products
Today there are many insurance products available in the market. Each company has its
set of products that it offers to the customers. This makes it difficult to keep track of all
the products at the same time. A better way to understand them is by way of
categories:
This classification is based on the needs of the customers. Accordingly, each of these
categories are classified by needs and all the products coming under that category aim
to fulfill that need, e.g. products coming under investment category aim to promote
long-term real growth over the period. Thus, understanding these categories will not
only help us to understand various products but also help us to position our products
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In investment type of products, the focus is on maximizing returns for the customer
over a period of time. In a way, it is opposite to protection type where the focus on
maximizing the risk cover is very low. The objective is to put maximum amount in
investment. The underlying principle is to commit money for a certain period of time
and get the benefits of real long-term growth. The products are usually single-
premium policies where the entire premium is collected in advance. Surrenders are
discouraged and there is a commitment for a certain minimum of years. In the event
Pension products
It is another very popular type of product. Along with the risk of an untimely death or
disability, we also have the risk of living too long to outlive our source of income. In
other words, one needs to ensure that she gets a decent income as long as she lives.
This is where we have pension products addressing the need for a comfortable
retirement. One can opt for an immediate pension or for a pension at a future date (also
called as deferred pension) – one can have a range of options when selecting a pension
product. The important point to note is that pension is a part of one’s present income
that forms the basis for future consumption. Every year income is accumulated and
invested in a pension fund. The lump sum accumulated then is used for purchasing on
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People like to save. Our saving rate is well above 20% of our GDP for last few years.
They save for events like child’s marriage, education, etc. Savings products aim to
strike a good balance between risk cover as well as returns. It acts as a protection on
savings. Sum assured is usually targeted savings that one looks for. She gets that
amount at the end of the term along with the bonuses if it is a participating policy. On
the protection side, if any unfortunate event happens during the term, the sum assured
(targeted savings) is still paid so it encourages a person to save for an event and at the
same time it ensures that her savings are protected. This is the unique advantage of
A typical protection type of product aims at protecting income earning capacity of the
customers on happening of uncertain events during the term of the product. These are
the pure risk product having no saving element. Naturally, these products do not have
any maturity benefits. High risk cover at low cost is the unique of this type of product
that makes this category most attractive for those who want high insurance cover
without spending much for it. Usually offered for a definite term, all these products
come under 4 broad categories. To understand a product, it is essential to find out the
category based on its features. Needless to say, it will not be possible to compare one
product category to another. Each category is unique and caters to particular needs of
the customers.
The best approach is to find out what customers need and then suggest a
solution accordingly.
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Our role
Insurance, as we have seen, is a basic need that every person has. Our role as
insurance service provider, is to make her aware of these underlying needs and help
her to arrive at appropriate solutions that would to her insurance needs. In this
process, we will help her to build up a financial plan for a sound future. It calls for
high degree of professionalism, integrity, and strong faith in the company along with
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Step 1 Choose the premium you wish to invest.
Step 2 Choose the amount of protection (Sum Assured) you desire.
Step 3 Choose the additional plan benefits you desire.
Step 4 Choose the investment fund or funds you desire.
• Quarterly
• Half-yearly
• Annually
You may also choose to pay adhoc Single Premium Top-Up or additional regular
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We offer a range of valuable protection options of secure your family. You can
BENEFIT SUMMARY
TYPES
• We will pay the Sum Assured to your beneficiary
• Your family need not pay nay further premiums. We will pay
future regular premiums on your behalf, at the original level chosen
Death by you
Benefit • Any Critical Illness Cover terminates immediately
• We will pay the Sum Assured to your beneficiary
• Your family need not pay any further premiums. We will pay
Critical future regular premiums on your behalf, at the original level chosen
Illness by you.
Benefit • The Death Benefit Cover terminates immediately
In this plan the investment risk in your chosen investment portfolio is borne by you,
which means that the premiums you pay in this plan are subject to investment risks
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We have 6 funds that balance your level of risk and return. You can choose from all
Asset Class
Fund Composition
Liquid • Extremely low
Fund capital risk
• Very stable 100% - - Low
returns
Secure • More capital
Managed stability than
Fund equity funds
• Higher - 100% - Low
potential return Moderate
than Liquid Fund
• Access to better
Defensive long-term returns
Managed through equities
Fund • Significant
bong exposure
keeps risks down - 70% to 15% Moderate
85% to
30%
Balanced • Increased
Managed equity exposure
Fund gives better long-
term return
• Bond exposure
provides some - 40% to 30% High
stability 70% to
60%
Equity • Further
Managed increased
Fund exposure to
equities to give a
better long-term
return
• A smaller bond
- 0% to 60% Very high
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holding will aid 40% to
diversification 100%
and provide a
little stability
Growth • For those who
Fund wish to maximize
their returns
• 100%
investment in - - 100% Very high
high quality
Indian equities
ELIGIBILITY
Flexible Options Benefits
Premium You can pay your regular premium up to 15 days after the
Payments due date to fit in with your cash flows
Single Premium Once we have issued your policy, you can invest more than
Top-Up your regular premium, subject to the following conditions:
• You have paid all your regular premiums to date
• Your total Single Premium Top-Ups at any time is not
more than 25% of your total regular premium paid to date
• Each Single Premium Top-Up amount is at least Rs. 5,000
The age and term limits for taking out a HDFC Unit Linked Young Star, are as
shown below:
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Min Max Min Max (Yrs.)
Life Option 10 25 18 65 75
Life & Health 10 25 18 55 65
Option
CHARGES
• Surrender Charge
• Other charges
• Under Section 80C, you can save up to Rs. 33,660 from your tax each year
(calculated on the highest tax bracket) as premiums up to Rs. 1,00,000 are allowed as a
• Under Section 10 (10D), the benefits you receive from this policy are
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• An outstanding investment opportunity by providing a choice of thoroughly
Step 2 Choose the premium you wish to invest, based on your retirement
needs
Step 3 Choose the investment fund(s) you desire
You can select any age you wish to retire at (Vesting age), between 50 years and 75
years.
You can choose either a Single Premium Policy or a Regular Premium Policy
• Quarterly
• Half-yearly
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• Annually
In this plan the investment risk in your chosen investment portfolio is borne by you,
which means that the premiums you pay in this plan are subject to investment risks
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Asset Class
Bank Govt. Equit
Fund Details Deposits Securities y Risk &
& Money & Bonds Return
Market Rating
Fund Composition
Liquid • Extremely
Fund low capital risk
• Very stable 100% - - Low
returns
Secure • More capital
Managed stability than
Fund equity funds
• Higher
potential return - 100% - Low
than Liquid Moderate
Fund
Defensive • Access to
Managed better long-term
Fund returns through
equities - 70% to 15% Moderate
• Significant 85% to
bong exposure 30%
keeps risks
down
Balanced • Increased
Managed equity exposure
Fund gives better
long-term
return - 40% to 30% High
• Bond 70% to
exposure 60%
provides some
stability
Equity • Further
Managed increased
Fund exposure to
equities to give
a better long-
term return
•A smaller
bond holding - 0% to 60% Very high
will aid 40% to
diversification 100%
and provide a
little stability
Growth • For those who
Fund wish to
maximize their
returns
• 100% - - 100% Very high
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investment in
high quality
Indian equities
Flexible Options for you and your family’s needs
Flexible Benefits
Options
Premium You can pay your regular premium up to 15 days after the due
Payments date to fit in with your cash flows
Single Premium Once we have issued your policy, you can invest more than
Top-Up your regular premium, subject to the following conditions:
• You have paid all your regular premiums to date
• Each Single Premium Top-Up amount is at least Rs. 5,000
Premium You can increase, reduce, or stop your regular premium at any
Changes time. The minimum increase in regular premium amount is only
Rs. 5,000/- per year and any changes to premiums will take
place from the next premium due date.
Changing your You can change your investment fund choices in two ways:
Investment Switching: You can move your accumulated funds from one
Decisions fund to another anytime.
Premium Redirection: You can pay your future premiums into
a different selection of funds, as per your need.
CHARGES
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• Fund Management Charge (FMC)
• Surrender Charge
• Other charges
Rs. 33,660 from your tax each year (calculated on the highest tax bracket) as premiums
CHILDREN’S PLAN
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3 Easy Steps To Your Own Plan
Step 1 Choose the amount of targeted savings and policy term using our
Financial Planning Tool
Step 2 Choose any one of the 3 plan options as per your child’s
requirement
Step 3 Work out the premium payable and Sum Assured with our
Financial Consultant
This plan gives you the flexibility to structure the ideal plan for your child.
• Estimate the money, which you might require for your child at any one of the
• Choose the amount of targeted savings and policy term using the Financial
You can choose any one of the 3 plan options at the start of the policy:
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Plan Option Death Benefit Maturity Benefit
(On death of insured parent
during the policy term)
Maturity • Your family need not pay • We will pay the Sum
Benefit Plan any further premiums and Assured+Bonuses
policy continues Declared
Double Benefit • We will pay the Sum • We will pay the Sum
Plan Assured Assured+Bonuses
• Your family need not pay Declared
any further premiums and the
policy continues
The table below shown the Indicative Premiums for a male life assured paying annual
premiums for a Rs 5 lakh sum Assured policy with the policy maturing when the child
is 21 years old (i.e. 20 year term period and current age of child is assumed to be 1
year).
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ELIGIBILITY
Age of Accelerated Benefit Maturity Double Benefit
Parent Plan (Rs.) Benefit Plan Plan (Rs.)
(Yrs.) (Rs.)
The age and term limits for the insured parent for taking out the HDFC Children’s
• Under Section 80C, you can save up to Rs. 33,660 from your tax each year
(calculated on the highest tax bracket) as premiums up to Rs. 1,00,000 are allowed as a
• Under Section 10 (10D), the benefits you receive from this policy are
Customer Service
Premium Payment
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This section gives you all the details that you may require to pay your premium and
make it a hassle free experience. Along with various premium payment options
currently available to you, we have also drawn up a checklist of details that you will
You can deposit Cheque / Demand Draft drawn in favour of “HDFC SLIC” at any of
Closed on Sundays
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Postage / Courier
You can send cheques and demand drafts drawn in favour of HDFC SLIC to any of
Online Payment
You can make online payment of premium anytime and from any location, at a click of
the mouse by using the Online payment facility. It is currently offered to all the
policyholders who are registered users of billjunction.com or have net banking facility
with any of the following banks - HDFC Bank, ICICI Bank, UTI Bank, State Bank of
Drop boxes
You can drop cheques and demand drafts drawn in favour of HDFC SLIC into any of
You can also pay renewal premiums through Electronic Clearing Service (ECS) of
New Delhi, Chandigarh, Kanpur, Lucknow, Jaipur, Mumbai, Panjim, Pune, Nagpur,
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Standing Instructions (SI) Mandate
You can also pay your renewal premium through a Standing Instructions Mandate if
• Please mention your policy number and name correctly on the reverse side of
• We do not accept Post Dated Cheques (PDC’s) beyond the next banking day
• As per RBI guidelines, Non MICR Cheques may not be acceptable at few
locations. In this scenario, please contact your nearest branch for more details
• For Unit Linked Polices you can pay using Local Cheques/ Demand Drafts
• For other policies you can pay using either Local or Outstation cheques or
Demand Drafts
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Sales Projection Table
52
Actual Maturity
Age 26 Value
Term 29
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OBJECTIVE OF STUDY
In the short span of time, since the insurance sector has opened up, HDFC Standard
Life Insurance has, literally, dictated the market’s evolution. Catering to all age and
income segments, the company started out with the traditional insurance policies that
were easy to understand. The idea was entice the customers used to LIC’s style of
exploring new areas. It introduced new products like the market-linked products
where returns are linked to the market performance of the underlying assets.
• Productivity of agents
It has set exacting standards for its range of products, riders offered, quality of
organized. What has been in favor of HDFC SLIC is its range of products in each
for retirement plans or children plans. With such a comprehensive bouquet, it caters to
all financial goals of a customer. So, the objective of the study is to see and analyze the
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IMPORTANCE OF THE STUDY
HDFC SLIC has grown exponentially over the past three years, making its mark in a
number of segments such as: retirement solutions, child plans, and market-linked
plans. The success of the business, thus far, has reaffirmed the commitment of both
the partners – HDFC Bank and Standard Life – towards achieving the company’s
HDFC SLIC is the leading private sector life insurance company in India. In
December 2003, it crossed the Rs. 1000 crore total premium mark, the first private
life insurer to do so.So, the research work is important in respect of understanding the
changing insurance sector with special reference to HDFC SLIC. The study is about:
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intangibility of the product is high. People don't see any
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4. Till very recently LIC was something that people used
association.
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deciding factor for the success of private insurance over
to break the jinx of LIC in life insurance and GIT in the non
life insurance.
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insurance players need to differentiate themselves by
company.
SIGNIFICANCE OF STUDY
HDFC SLIC has increased its market share among private life insurers to nearly 40%
April-March period stood at Rs. 464.6 crore, accounting for 39.3% of the Rs. 1,364
Considering the entire life insurance market, including the Rs. 9,780 crore booked by
LIC, HDFC SLIC’s market share works out to be around 4.17%. The life insurance
market continues to be dominated by LIC which has about 87.8% of the shares. This
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is only a marginal dip from its 88.2% share in end-December. These comparisons are
The gap between HDFC SLIC and the second-in-line private insurer is vast. In fact,
this status has led some analysts to wonder if the company is not a trifle too
aggressive. But other say this has more to do with the company’s customer-centric
focus, its pan-India presence, and superior SLIC is not, however, risk-management
the training period and the findings of the research work will definitely focus on the
present condition and future requirement (if any) relating to products of the
company.
STRENGTHS
• HDFC SLIC is the third largest player in the insurance industry in India
• HDFC enjoys the highest AAA credit rating, which ensures highest safety of
money
• Mutual Fund
• Personal Loan
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WEAKNESSES
• Some customers are not satisfied with the service of HDFC SLIC
• High premium
OPPORTUNITY
THREATS
• Tough competition from LIC, ICICI, BAJAJ ALLIANCE, and BIRLA SUN LIFE
• Threat for HDFC SLIC because over 12 new companies are entering the market
• Currently, HDFC SLIC is the 3rd player in the market, and the major threat is to
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FINDINGS (RESULTS)
SAMPLING:
Sampling is simply the process of learning about the population on the basis of the
sample drawn for it. Under this method, small group of the universe is taken as the
representative of the whole mass and the results are drawn. It is a method to make
SAMPLE:
aggregate from which the sample is taken. A sample is the reflection of the universe.”
CLUSTER SAMPLING
Under this method, the total population is divided into some recognizable sub-
division which is termed as clusters and a simple random selection of these clusters is
made and then the survey of each and every unit in the selected cluster is done.
• Clusters should be drawn from a sample which is in tune with the cost and other
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25-35 100
35-45 100
45-55 100
CONTENTS OF SURVEY
25-35 100
35-45 100
45-55 100
Purpose of Insurance
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Businessmen 100
Government employees 50
Private employees 50
Male 100
Female 50
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11%
15% K.I.N.P.
45% T.P.
N.A.I.
U.T.
29%
To
Findings
• This age group is having the second highest number of policy holders
U.T.
11% 4% :Useless thing
27%
K.I.N.P.
T.P.
FINDINGS OF AGE GROUP (35-45) N.A.I.
U.T.
58%
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Total no. of samples : 50
Findings
• This age group is having highest number of policy holders among all age groups
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2% 23%
K.I.N.P.
T.P.
11% N.A.I.
U.T.
64%
Findings
• This age group is having the lowest number of policy holders among all age
groups
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9%
19% 33% K.I.N.P.
T.P.
N.A.I.
U.T.
39%
Findings
• This age group is having low number of policyholders among all age groups
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22% 24% INVESTMENT
LIFE
PENSION
20% CHILD LIFE
17% 17% TAX SAVER
Findings
The major finding of this part of the research study is that business class treat insurance
mainly as a tool of Investment and Tax Savings. They spend less on Pension and Life
Plans.
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PURPOSE OF INSURANCE(PRIVATE EMPLOYEES)
Findings
The major finding of this part of the research study is that Private employees use
insurance mainly as an age old tool of Security and they spend equally on Child Life,
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PURPOSE OF INSURANCE (GOVERNMENT EMPLOYEES)
Findings
The major finding of this part of the research study is that Government employees
spend more on their life and Child Life compared to other sections of the society.
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DEGREE OF AWARENESSAMONG DIFFERENT GENDERS OF
THE SOCIETY
MALE:
KNOW
22%
INSURANCE
45% DON'T KNOW
INSURANCE
33% CAN'T SAY
No. of sample : 50
FEMALE:
KNOW
28% 27% INSURANCE
DON'T KNOW
INSURANCE
CAN'T SAY
45% 72
No. of sample : 50
100.00%
FMCG 10.77%
Glaxo Smithkline Cons 2.48%
Hindustan Lever Ltd. 2.94%
ITC Ltd. 5.36%
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Metal, Metal Products & Mining 8.41%
Hidalco Industries Ltd. 2.83%
Healthcare 6.62%
Divis Laboratories Ltd. 2.99%
Glaxo Smithkline Pharma Ltd. 0.97%
P&G Hygiene & Health Care Ltd. 2.66%
Finance 4.83%
Punjab National Bank 1.46%
State Bank of India 3.37%
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Individual – Life Fund Performance
Rolling Yearly Performance
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90%
80%
70%
60%
50%
40%
30%
20%
10%
HDFC SL Growth Fund
BSE 100
0%
Jan'05 Mar'05 May'05 Jul'05 Sep'05 Nov'05 Jan'06 Mar'06
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Comments: Our Growth Funds offers the opportunity for substantial growth in the
long term. Our performance is excellent, beating the BSE 100 over all the time periods.
when the investment is made. We have achieved returns varying from just under 10%
p.a. for an investment made in mid Jan’04 to a high of over 86% p.a. for an investment
The performance analysis is to present how HDFC SL Unit Linked Funds are
We have illustrated how our unit-linked funds available to our Retail Life Business
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We are illustrating our performance from 01-Jan-05 using charts that look like the
25
20
15
10
5
Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05 Jul'05
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ICICI
PRUDENTIAL
MAX NYL
HDFC
BIRLA SUN
8% 4% 3%
9% 40%
BAJAJ
7% ALLIANZ
7% OM KOTAK
12% 10%
SBI LIFE
TATA AIG
OTHERS
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UK
12
JAPAN
SOUTH
KOREA
10
MALAYSIA
6
4 US
INDIA
CHINA
2
80
PEOPLE HAVING HDFC STANDARD LIFE POLICY
78%
80%
60%
40% 22%
20%
0%
Yes No
HDFC SLIC satisfies the needs and requirements of the customers and provides them
better policy as well as services.People buy HDFC SLIC products because it gives
them dual benefits. It ensures the money that people invested in it and gives good rate
of return, and secondly, it enables them to sell its products much more effectively in a
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HDFC SLIC PREMIUM POLICY
25%
SATISFIED
NOT SATISFIED
75%
Approximately, 82% customers are satisfied with the premium policy of HDFC
SLIC. It means that bulk of the policy holders are satisfied with the premium policy
of HDFC SLIC. Only a meager percentage of 28% customers are not satisfied with
This does not have any negative impact on the creditworthiness of the organization.
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HDFC STANDARD LIFE
100% 85%
80%
60%
40%
20% 15%
0%
S
D
A
IE
TI
SF
S
FI
TI
SA
E
D
T
O
N
According to the survey, 85% of the customers are satisfied with the regular service
of HDFC SLIC, and 15% customers are not satisfied. The services such as intimation
for payment of due premium in time, and about other related documents of the
MARKET EXPANSION
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There has been an overall expansion in the market. This has been possible due to
launched by the players. The scope for expansion is still unlimited as virtually all the
players are concentrating on large cities and towns, except for LIC, which made a
There has been a plethora of new and innovative products offered by the new players,
mainly due to the stability of the customers of the international partners which range
from a large variety of products from pure terms (risk) insurance to unit-linked
benefits as riders, from which they are to choose. More and more customers are
buying products and services based on their true needs and not just traditional money
back policies, which are considered very appropriate for long-term protection
and saving. However, there are still some key products to be introduced, such as,
health products.
CHANNELS OF DISTRIBUTION
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Till the last two years, the only mode of distribution of life insurance products was
the insurance agents. While agents still continue to be the predominant distribution
offered to the customer. Some of them are banc assurance partners, brokers, and
direct marketing. The widespread reach of bank branch network in India could lead to
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VARIETY BASED POSITIONING
This type of positioning is based on varieties in products and services rather than
on certain category of products. One such example is Birla Sun Life Insurance, which
has been focusing on investment related products since its launch in India. Through
its superior fund management capabilities, the insurance company can deliver better
returns on the investment related products, and, thereby, carve a niche for itself in a
customer. This can be done successfully if a company has unique strength to offer
particular service to a group of customers to satisfy their needs better than others.
among different groups of customers. The insurance needs of young families with
small children will be different than the families in which the bread winner is close to
retirement. However, in India, most of the life insurance companies have a wide
variety of products tailored for different needs of the customers, and there is no
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ACCESS BASED POSITIONING
Positioning of customer can also be done in the way by which they are accessible.
Different groups of customers may be accessible by different ways even though they
customer scale.
access based positioning by targeting the rural insurance sector. The rural market for
insurance is very different than urban market in terms of needs, income levels, and
penetration of media, and so on. So far, except for LIC, no player has paid attention or
The right strategy is not a matter of positioning choice alone. It involves the very way
products and services to the customer. The set of activities cover all upstream and
downstream activities, from the selection of the product mix, the way the products are
priced, promoted, the type of distribution mechanism used, the way customers are
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Some life insurance companies focusing on rural market has adopted innovative
used gram sevaks in different villages across the country to promote life insurance
and act as their sales arm. This enabled them to tap the knowledge of the local people,
establish the concept of the product in their mental filter and ultimately striking a
deal.
CONCLUSION
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Practices at HFC Standard Life Insurance Company is best suited for its
clients and what makes it India's one of the most respected Life Insurers.
This company's funds have performed really well. They follow a much
HDFC Standard Life Insurance Company has an army of well trained and
regulated Financial Consultants (advisors). They are all well trained in sales
processes. It shows even when they speak over the phone for the first time.
This company makes the best use of IT and that shows in customer service
too. Certainly, there are going to be a few dissatisfied clients and associates.
But they all can reach the corporate office through e-mail, fax or snail mail
companies in the country, we will realize that HDFC SLIC is way for ahead of
other companies. It's because of their values and ethics. And to entrust
someone with our hard earned money and future prospects, we should
customer. Therefore, what is important is the trust. Every step of the company
present and the future customer. The key factors identified were:
customers.
mainly the financial consultant, which bring the major amount of businesses.
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To develop new products suited to specific requirements of the
challenge in the public sector. It all has been possible because of the effective
In order to take a ride over LIC, they should emphasize on rural sector
as well.
The need for the life insurance is to cover three contingencies i.e. fear
death, fear of living too long and critical illness disability. However, Life
Insurance in India has traditionally been thought for Tax benefits and as a tool
benefits be making them understand human life value (HLV) and to look upon
The private sector has emerged very fast on the success charts, in which
HFC SLIC leaving the rest of the remaining nine fifteen private companies,
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BIBLIOGRAPHY
• www.hdfcinsurance.com
GLOSSARY
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Accident
“The accident must be caused by violent, external, and visible means and the cause of
Benefit is that which provides for the payment of an additional sum (usually equal to
the sum assured of the basic policy) in the event of death by an accident.
Amount Payable
This refers to the amount that is payable according to the terms and conditions of the
insurance policy to the legal heir. This includes payment of agreed payments at
regular intervals from a fixed date. This continues until the death of the individual, on
Annuity
Appreciate
To grow in value
Asset
Asset allocation
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Balanced Fund
A fund that maintains a balanced portfolio, generally, 60% bonds or preferred stocks
Bear market
The period of time, in which, the money market, in general, lose money.
Benchmark
A reference point, that which is chosen for the purpose of comparing other related
values.
Bond
A bond is security in the form of a convertible loan with a maturity date, where the
Bonus
percentage of the sum assured, is generally declared every year. The amount is linked
to the profits earned by the insurer. Depending on the time of withdrawal, there are
two kinds of bonuses – reversionary and cash. A reversionary bonus can be encashed
only on maturity of the policy; a cash bonus can be withdrawn when declared
Budget
Bull market
A good market period, when prices of securities increase greatly over a specific
period of time.
Capital gains
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Profit earned from the sale of stocks, mutual fund units and real estate. Long-term
capital gains arise from assets owned for more than a year while short-term capital
gains are made from assets owned for less than a year.
Claim
Written request by an insured for the insurance company to cover an incurred loss,
Compound Interest
Interest computed on principal plus interest accrued during the previous periods of
the investment
Corpus
The amount of money available with a scheme for investing. If already invested, the
Cost averaging
A strategy that involves investing a fixed amount of money in an asset class like
equity, so that the average cost of acquiring the asset in the long-term is much lower
Cover
illness.
Compounding
Date of commencement
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The date on which insurance cover begins, following acceptance of the risk by the
insurer.
Death benefit
The amount payable to the nominee on death of the policyholder. The amount paid is
the sum assured plus benefits applicable (if any) less outstanding loans.
A type of pure life protection insurance policy where the premia remain the same
while the life coverage keeps declining. They are typically used to cover the life of a
Deferred annuity
An annuity plan where the first annuity payment becomes payable after a chosen
Discretionary expenses
These are expenses like entertainment, dining out and non-compulsory travel that you
Dividends
Down payment
The money that a home buyer has to contribute, often at least 15 per cent of the value
Dividend yield
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The percentage of dividend paid on a share to the value of the share.
beneficiary(ies) upon the death of the insured. The amount paid is the face value plus
Depreciation
Emergency fund
The money, in the form of liquid investments in bank savings accounts, two-in-one
accounts and liquid funds, you need, to take care of emergencies like a job loss that
Endowment plans
An insurance plan that provides a policyholder risk cover and some return on
The true rate as against the nominal rate, which may be incorrect.
Estate
All assets of a person, both financial-like stocks, bonds, mutual funds and fixed
deposits and physical-like a house and gold that can be passed on to his heirs.
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Estate planning
A financial plan to ensure the transfer of all your assets-both financial, such as fixed
deposits and stocks and physical, such as home, after your death to your heirs without
Exclusions
Risks and circumstances not covered by a policy. No claim will be entertained in case
Diversified equity funds that additionally offer a tax deduction under Section 80C on
A borrower must make this payment each month towards repayment of interest and
Equity
Endowment
A type of insurance policy which provides for the face value stated in the contract to
Equity
A stock or the interest in capital gains received from the ownership of a stock.
Financial planning
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Fixed deposit
Funds placed on deposit in a bank, company or post office at a fixed rate of interest.
Fixed-income investment
Any investment that provides a stated percentage of value, say 6 per cent, on the
invested amount.
Interest rate charged on a loan that remains fixed during the tenure of the loan
Interest rate charged on a loan benchmarked to a particular lending rate. The rate gets
adjusted during the tenure of the loan as the benchmark interest rate changes.
Group Insurance
An insurance policy taken out by employers to provide life cover to their employees.
Guaranteed additions
are expressed as a percentage of the sum assured, with the amount payable being
Immediate annuity
An annuity that starts payments immediately after, or soon after, the first premium is
paid
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Index fund
A scheme whose portfolio mirrors the progress of a particular index, both in terms of
composition and individual stock weight ages. It’s a passive investment option, as a
fund’s performance will mimic the index concerned, barring a minor tracking error.
Insurance
A fund that primarily seeks current income, than growth of capital. It will tend to
invest in stocks and bonds that normally pay higher dividends and interest.
Insured
The policyholder
Investments
Assets like fixed deposits, post office savings, bonds and stocks that are acquired for
Investment risks
The risks that your investments face. These include the risk of interest rate
fluctuations impacting your debt investments or the prices of equities going down.
A rider that increases the life cover in non-term plans, up to a maximum of the sum
assured on the base policy. The rider offers death benefit along, and serves the need
Loyalty additions
maturity of certain investment-based insurance plans for staying on through its term.
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Loyalty additions are paid as a percentage of the sum assured, with the amount
Lock-in period
The period of time for which investments made in an investment option cannot be
withdrawn.
Money-back plans
A variant of endowment plans in which survival benefits are disbursed through the
The simplest measure of how a scheme is performing, it tells how much each unit of
it is worth at any point in time. A scheme’s NAV is its net assets (the market value of
the financial securities it owns minus whatever it owes) divided by the number of
Nominee
The person(s) nominated by the policyholder to receive the policy benefits in the
Pension plan
Investment products offered by insurance companies and mutual funds that required
the investor to make defined contributions over regular periods, mostly every year.
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Policy
The legal document issued by an insurance company to a policyholder that states the
Policyholder
The person who buys an insurance policy. Also referred to as the ‘insured’.
Premium
Riders
Sum assured
The amount of cover taken under a life insurance policy, it is the minimum amount
that will be paid on death of the policyholder during the policy term.
Surrender value
The amount payable by the insurer to the owner of an investment-based plan in case
he opts to terminate the policy after three years (the mandatory lock-in period) but
before its maturity date. The surrender value will be the premia paid till date minus
Term plans
A plan that provides life cover for a specified period of time, but no return on the
premium paid
Vesting date
Generally used in the context of pension plans and children’s plans offered by life
it is the date from which the policyholder starts receiving pension. In children’s plans,
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it is the date from which a child becomes the Owner of a policy taken out in his name
Will
Whole-life plan
Class of life insurance policies that provide cover through your lifetime.
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QUESTIONNAIRE
Preferences Name
• In Banks
• In Insurance
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• In Mutual Funds
• In Shares
8.Do you think Mutual Funds together with Life Insurance, are more helpful?
Yes/No
Yes/No
ABBREVIATIONS
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1- HDFC- Housing Development Finance Corporation.
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