A project report on customers attitude towards hdfc standard life insurance

“Customers Attitude towards HDFC Standard Life Insurance”

INDEX

S. N. CONTENTS PAGE NO.

1 Executive Summary 1

2 Introduction to Topic 4

3 Introduction 10

4 Company Profile 32

5 Research Design 57

6 Data Analysis 60

7 Findings 81

8 Suggestions 83

9 Conclusion 85

10 Bibliography 87

Babasabpatilfreepptmba.com Page 1


11 Annexure 89

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Now a day, the insurance sector is playing a vital role in the portfolio of finance
sector. So insurance industry is much concentrating over analyzing
customers attitude, which is very essential for the growth of the
company, to take competitive advantage in the market.

Title of the Study: “Customers Attitude towards HDFC Standard Life Insurance”

Statement of the Problem: The study has been undertaken to know the “Customers
attitude towards HDFC Standard Life Insurance”

Objectives of Study:

 To study the customer awareness for HDFC Standard Life.
 To understand the customers attitude towards HDFC Standard Life brand.
 To know the customers attitude towards the products.
 To know the customers attitude towards the service provided by the company.
 To examine the consumers buying behavior.
 To know the factors which influenced the customers to purchase policy.

.Data Source:
 Secondary: Secondary data consists of readily available information on various
web-sites, journals, insurance books & company database.
 Primary: Through survey method by using questionnaire

Sampling method:
• Sample size: 100 samples
• Sample unit: Existing customers of HDFC Standard Life Insurance



• Sample area: Belgaum city

Limitations of the study:

This survey was restricted to Belgaum city only. Time limit was major constraint. The
Sample size restricted to 100 only

Benefits to the Organization:

This project will help the organization to know the customer’s attitude towards
the products of the company. This will help the organization to provide better services
to its clients.
Findings:
 35% of policy holders are more concentrated on Unit linked plans, it is due to
the reason that the returns on these policies are more compared to the traditional
policies.
 The major competitors are LIC and ICICI Prudential.
 79% of the respondents would like to invest up to 20% of their annual income in
life insurance and keep the substantial part of the income for their livelihood.

Suggestions:
Service should focus on enhancing the customer experience and maximizing
customer convenience. This calls for effective CRM system, which eventually would
create sustainable competitive advantage and build long lasting relationship.

Conclusion:

Family welfare is the main factor, which investors think while investing in any life
insurance company. But other factors such as returns, security, and tax benefit are also
carrying almost same preference.



INTRODUCTION TO THE TOPIC

Consumer behavior



Consumer behavior is the study of how people buy, what they buy, when they buy and
why they buy. It blends elements from psychology, sociology, sociopsychology,
anthropology and economics. It attempts to understand the buyer decision
processes/buyer decision making process, both individually and in groups. It studies
characteristics of individual consumers such as demographics, psychographics, and
behavioral variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference groups, and
society in general.

Attitude

Attitude is a hypothetical construct that represents an individual's like or dislike
for an item. Attitudes are positive, negative or neutral views of an "attitude object": i.e. a
person, behavior or event. People can also be "ambivalent" towards a target, meaning that
they simultaneously possess a positive and a negative bias towards the attitude in
question.

Attitudes are composed from various forms of judgments. Attitudes develop on the ABC
model (affect, behavioral change and cognition). The affective response is a
physiological response that expresses an individual's preference for an entity. The
behavioral intention is a verbal indication of the intention of an individual. The cognitive
response is a cognitive evaluation of the entity to form an attitude. Most attitudes in
individuals are a result of observational learning from their environment.



Attitude-Behavior Consistency: Consumers often do not behave consistently with
their attitudes for several reasons:

 Ability. He or she may be unable to do so. Although junior high school student
likes pick-up trucks and would like to buy one, she may lack a driver’s license.
 Competing demands for resources. Although the above student would like to buy
a pickup truck on her sixteenth birthday, she would rather have a computer, and
has money for only one of the two.
 Social influence. A student thinks that smoking is really cool, but since his
friends think it’s disgusting, he does not smoke.
 Measurement problems. Measuring attitudes is difficult. In many situations,
consumers do not consciously set out to enumerate how positively or negatively
they feel about mopeds, and when a market researcher asks them about their
beliefs about mopeds, how important these beliefs are, and their evaluation of the
performance of mopeds with respect to these beliefs, consumers often do not give
very reliable answers. Thus, the consumers may act consistently with their true
attitudes, which were never uncovered because an erroneous measurement was
made.

Changing behavior: People like to believe that their behavior is rational; thus, once
they use our products, chances are that they will continue unless someone is able to get
them to switch. One way to get people to switch to our brand is to use temporary price
discounts and coupons; however, when consumers buy a product on deal, they may
justify the purchase based on that deal (i.e., the low price) and may then switch to other
brands on deal later. A better way to get people to switch to our brand is to at least
temporarily obtain better shelf space so that the product is more convenient. Consumers
are less likely to use this availability as a rationale for their purchase and may continue to
buy the product even when the product is less conveniently located. (Notice, by the way,
that this represents a case of shaping).



Changing beliefs: Although attempting to change beliefs is the obvious way to attempt
attitude change, particularly when consumers hold unfavorable or inaccurate ones, this is
often difficult to achieve because consumers tend to resist. Several approaches to belief
change exist:

 Change currently held beliefs: It is generally very difficult to attempt to
change beliefs that people hold, particularly those that are strongly held, even
if they are inaccurate. For example, the petroleum industry advertised for a
long time that its profits were lower than were commonly believed, and
provided extensive factual evidence in its advertising to support this reality.
Consumers were suspicious and rejected this information, however.
 Change the importance of beliefs: Although the sugar manufacturers would
undoubtedly like to decrease the importance of healthy teeth, it is usually not
feasible to make beliefs less important--consumers are likely to reason, why,
then, would you bother bringing them up in the first place? However, it may
be possible to strengthen beliefs that favor us--e.g., a vitamin supplement
manufacturer may advertise that it is extremely important for women to
replace iron lost through menstruation. Most consumers already agree with
this, but the belief can be made stronger.
 Add beliefs: Consumers are less likely to resist the addition of beliefs so long
as they do not conflict with existing beliefs. Thus, the beef industry has added
beliefs that beef (1) is convenient and (2) can be used to make a number of
creative dishes. Vitamin manufacturers attempt to add the belief that stress
causes vitamin depletion, which sounds quite plausible to most people.
 Change ideal: It usually difficult, and very risky, to attempt to change ideals,
and only few firms succeed. For example, Hard Candy may have attempted to
change the ideal away from traditional beauty toward more unique self
expression.

Attitude Change



Changing the Function that the Product Serves
Associate the Product with a Famous Personality or an Established Organization
Changing Attitudes by Presenting the Product in a New Light
Change the Beliefs of the Consumer Regarding the Product
Try to Change the Perception of the Consumer

Need to understand:

 Why consumers make the purchases that they make?
 What factors influence consumer purchases?
 The changing factors in society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A
firm needs to analyze buying behavior for:
 Buyers’ reactions to a firms marketing strategy has a great impact on the
firm’s success.
 The marketing concept stresses that a firm should create a Marketing Mix that
satisfies customers, therefore need to analyze the what, where, when and how
consumers buy.
 Marketers can better predict how consumers will respond to marketing
strategies.

If a marketer can identify consumer buyer behavior, he or she will be in a better position
to target products and services at them. Buyer behavior is focused upon the needs of
individuals, groups and organizations.

It is important to understand the relevance of human needs to buyer behavior (remember,
marketing is about satisfying needs).

Let's look at human motivations as introduced by Abraham Maslow by his hierarchy of
needs: The hierarchy is triangular. This is because as you move up it, fewer and fewer
people satisfy higher level needs. We begin at the bottom level.



Physiological needs such as food, air, water, heat, and the basic necessities of survival
need to be satisfied. At the level of safety, man has a place to live that protects him from
the elements and predators. At the third level we meet our social and belongingness needs
i.e. we marry, or join groups of friends, etc.

The final two levels are esteem and self-actualization. Fewer people satisfy the higher
level needs. Esteem means that you achieve something that makes you recognized and
gives personal satisfaction, for example writing a book. Self-actualization is achieved by
few. Here a person is one of a small number to actually do something. For example, Neil
Armstrong self-actualized as the first person to reach the Moon.



INTRODUCTION

INTRODUCTION TO INSURANCE

The business of insurance is related to the protection of the economic values of the assets.
Every asset has a value the asset would have been created through the efforts of the
owner. The asset is valuable to the owner because he expects to get some benefit from it.
Insurance is a mechanism that helps to reduce the effect of such adverse situation.



Purpose and Need of Insurance:
Assets are insured because they are likely to be destroyed through accidental occurrences
such possible occurrences are called perils. Fire floods breakdowns, lightning,
earthquakes etc, are perils. If such perils can cause damage to the asset, the asset is
exposed to that risk.

The risk only means that there is a possibility of loss or damage. The damage may or may
not happen. Insurance is done against the contingency that it may happen. There has to be
an uncertainty about the risk. Insurance is relevant only if there are uncertainties. In the
case of a human being, death is certain, but the time of death is uncertain. In the case of a
person who is terminally ill, the time of death is not uncertain, though not exactly known.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril
can sometimes be avoided, through better safety and damage control management.

Insurance only tries to reduce the impact of the risk on the owner of the asset and those
who depend on that asset.

It only compensates the losses and that too, not fully. Only economic consequences
can be insured. If the loss is not financial, insurance may not be possible.



The Business of Insurance

The business of insurance is to:

1) Bring together persons with common insurance interests (sharing the same risks),

2) Collect the share or contribution (called premium) from all of them, and

3) Pay out compensations (called claims) to those who suffer.

In India, insurance business is classified primarily as life and non-life or general. Life
insurance includes all risks related to the lives of human beings and general insurance
covers the rest. General insurance has three classifications is; Fire, Marine and
Miscellaneous. Personal accident and sickness insurance, which are related to human
beings, is classified as ‘non-life’ in India, but is classified as ‘life’, in many other
countries.

The business of insurance is nothing but one of sharing. It spreads losses of an individual
over the group of individuals who are exposed to similar risks. People who suffer loss get
relief because their loss is made good. People who do not suffer loss are relieved because
they were spared the loss.

Insurance business is divided into four classes:

1) Life Insurance Business.

2) Fire Insurance Business.

3) Marine Insurance Business.

4) Miscellaneous Insurance Business.

Meaning of Life Insurance Business



Life insurance, originally conceived to protect a man's family when his death left them
without income, has developed into a variety of policy plans.

Life insurance or life assurance is a contract between the policy owner and the insurer,
where the insurer agrees to pay a sum of money upon the occurrence of the insured
individual's or individuals' death or other event, such as terminal illness or critical illness.
In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a
premium at regular intervals or in lump sums. There may be designs in some countries
where bills and death expenses plus catering for after funeral expenses should be
included in Policy Premium. In the United States, the predominant form simply specifies
a lump sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the insurer and the
policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or
Beneficiaries) if an insured event occurs which is covered by the policy. To be a life
policy the insured event must be based upon life (or lives) of the people named in the
policy.

Life policies are legal contracts and the terms of the contract describe the limitations of
the insured events. Specific exclusions are often written into the contract to limit the
liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil
commotion.

Life based contracts tend to fall into two major categories:

• Protection - designed to provide a benefit in the event of specified event,
typically a lump sum payment. A common form of this design is term insurance.
• Investment policies - where the main objective is to facilitate the growth of
capital by regular or single premiums. Common forms (in the US anyway) are
whole life, universal life and variable life policies.

Meaning of Fire Insurance Business



Fire insurance usually includes damage from lightning; other insurance against the
elements includes hail, tornado, flood, and drought.

Meaning of Marine Insurance Business
Marine insurance protects shipping companies against the loss of a ship or its cargo, as
well as many other items, and so-called inland marine insurance covers a vast miscellany
of items, including tourist baggage, express and parcel-post packages, truck cargoes,
goods in transit, and even bridges and tunnels.

Meaning of Miscellaneous Insurance Business
Special casualty forms are issued to cover the hazards of sudden explosions
from equipment such as steam boilers, compressors, electric motors,
flywheels, air tanks, furnaces, and engines. Boiler and machinery insurance has
several distinctive features. A substantial portion of the premium collected is
used for inspection services rather than loss protection.

The business of insurance started with marine business. Traders, who used to gather in
the Lloyd’s Coffee house in London, agreed to share the losses to their goods while being
carried by ships. The losses used to occur because of pirates who robbed on the high seas
or because of bad weather spoiling the goods or sinking the ship. The first insurance
policy was issued in 1583 in England. In India, insurance began in 1870.

The business of insurance is the protection of economic values of assets. Every asset is
expected to last for a certain period of time during which it will perform. Insurance is a
mechanism that helps to reduce the effect of such adverse situation. Insurance is relevant
only if there are uncertainties.

Life Insurers transact life insurance business; the rest is transacted by General Insurers.
No composites are permitted as per law.



The business of Insurance essentially means defraying risks attached to any activity over
time (including life) and sharing the risks between various entities, both persons and
organizations.

Insurance companies are important players in financial markets as they collect and invest
large amounts of premium. Insurance products are multi purpose and offer the following
benefits:

1. Protection to the investors

2. Accumulate savings

3. Channelise savings into sectors needing huge long-term investments.

INSURANCE COMPANIES (IC) receives, without much default, a steady cash stream
of premium or contributions to pension plans. Various actuary studies and models enable
them to predict, relatively accurately, their expected cash outflows. Liabilities of ICs
being long-term or contingent in nature, liquidity is excellent and their investments are
also long-term in nature. Since they offer more than the return on savings in the shape of
life-cover to the investors, the rate of return guaranteed in their insurance policies is
relatively low. Consequently, the need to seek high rates of returns on their investments is
also low.

The risk-return trade off is heavily tilted in favor of risk. As a combined result of all this,
investments of insurance companies have been largely in bonds floated by GOI,
PSUs.,state governments, local bodies, corporate bodies and mortgages of long term
nature. The last place where Insurance companies are expected to be over-active is
bourses.
Lately ICs have ventured into pension schemes and mutual funds also. However, life
insurance constitutes the major share of insurance business. Life Insurance depends upon
the laws of mortality and there lies the difference between life and general insurance
businesses. Life has to extinguish sooner or later and the claim in respect of life is certain.
In case of general insurance, however, there may never be a claim and the amount can be
ascertained in advance. Hence, Life Insurance Pension business also derives from life



insurance in as much as the pension outgo again depends upon the laws of mortality .The
forays made by insurance companies in this area are, therefore ,natural corollary of their
business includes, besides covering the risk of early happening of an event, an element of
savings also for the beneficiaries.

Insurance vs. assurance

Outside the United States, the specific uses of the terms "insurance" and "assurance" are
sometimes confused. In general, in these jurisdictions "insurance" refers to providing
cover for an event that might happen, while "assurance" is the provision of cover for an
event that is certain to happen. However, in the United States both forms of coverage are
called "insurance".

When a person insures the contents of their home they do so because of events that might
happen (fire, theft, flood, etc.) They hope their home will never be burglarized, or burn
down, but they want to ensure that they are financially protected if the worst happens.
This example of insurance shows how it is a way of spending a little money to protect
against the risk of having to spend a lot of money.

When a person insures their life they do so knowing that one day they will die. Therefore
a policy that covers death is assured to make a payment. The policy offers assurance on
death; even if the policy has a prescribed termination date the policy is still assured to pay
on death and therefore is an assurance policy. Examples include Term Assurance and
Whole Life Assurance. An accidental death policy is not assured to pay on death as the
life insured may not die through an accident; therefore it is an insurance policy.

A policy might also be assured for other reasons. For example an endowment policy is
designed to provide a lump sum on maturity. Under certain types of policy the lump sum
is guaranteed. Therefore, this may also be called an assurance policy.



The test of whether a policy is assurance or insurance is that with an assurance policy the
insured event will definitely occur (at some point) whereas with an insurance policy there
is a risk the insured event might occur.

With regard to Whole Life policies, the question is not whether the insured event (in
this case death) will occur, but simply when. If the policy has non-forfeiture values (or
cash values) then the policy is assured to pay.

During recent years, the distinction between the two terms has become largely blurred.
This is principally due to many companies offering both types of policy, and rather than
refer to themselves using both insurance and assurance titles, they instead use just one.

Role of Insurance in Economic Development:

For economic development, investments are necessary. Investments are made out of
savings. A life insurance company is a major instrument for the mobilization of savings
of people, particularly from the middle and lower income groups. These savings are
channeled into investments foe economic growth.

All good life insurance companies have huge funds, accumulated through the payments
of small amount of premium of individuals. These funds are invested in ways that
contribute substantially for the economic development of the countries in which they do
business.

All good life insurance companies have huge funds, accumulated through the payments
of small amount of premia of individuals. These funds are invested in ways that
contribute substantially for the economic development of the countries in which they do
business.

The private insurers in India are new and had not built up funds in 2002. But, in course of
time, they also would be directly and indirectly contributing to the country’s economic
development.

A life insurance company will have large funds. These amounts are collected by way
of premiums. Every premium represents a risk that is covered by that premium. In effect,



therefore, these vast amounts represent pooling of risks. The funds are collected and held
in trust for the benefit of the policyholders. The management of life insurance companies
is required to keep this aspect in mind and make all its decisions in ways that benefit the
community. This applies also to its investments. That is why successful insurance
companies would not be found investing in speculative ventures.

Apart from investments, business and trade benefit through insurance. Without insurance,
trade and commerce will find it difficult to face the impact of major perils like fire,
earthquake, floods, etc. Financiers, like banks, would collapse if the factory, financed by

it, is reduced to ashes by a terrible fire. Insurers cover also the loss to financiers, if their
debtors default.

INSURANCE INDUSTRY

Insurance Sector in India

India with about 200 million middle class household shows a huge untapped potential for
players in the insurance industry. Saturation of markets in many developed economies
has made the Indian market even more attractive for global insurance majors. The
insurance sector in India has come to a position of very high potential and
competitiveness in the market.

The insurance industry in India can be broadly classified in two parts. They are:

 Life Insurance

 Non-life (General) Insurance

Brief history of Insurance:



The beginning of the insurance business is traced to the city of London. It started
with the marine Business. Marine traders, who used to gather at Lloyds coffee house in
London, agreed to share losses to goods during transportation by ship.

Marine related losses included
A) Loss of ship by shrinking due to weather in high seas.
B) Goods in transit by ship robbed by sea pirates.
C) Loss if goods in transit by ship due to bad weather in high seas.

The first insurance police was issued in 1583 in England. In India
insurance began in 1870 with life insurance being transacted by an English company the
European and the Albert. The first Indian insurance company was the "Bombay mutual
assurance society Ltd, formed in 1870.In 1956 LIC OF India was nationalized on
1/9/1956.

Some of the important milestones in the life insurance business in India
are:

• 1818:-The British Introduce to India. With the establishment of the Oriental Life
Insurance Company in Calcutta.

• 1850:- Non life insurance debuts, with Triton Insurance Company.

• 1870:- Bombay mutual Life Assurance Society is the first India –owned life
insurer.

• 1907:-Indian Mercantile Insurance is the first Indian non life insurer.

• 1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

• 1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.



• 1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.

• 1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.

• 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973.

• 1993:-Malhotra Committee, headed by former BBI governor R.N.Malhotra, set up
to draw up a blue print for insurance sector reforms.

• 1994:-Malhotra Committee recommends re-entry for private players, autonomy to
PSU insurers.

• 1997:-Insurance regulator IRDA (Insurance Regulatory and Development
Authority) set up.

• 2000:- IRDA starts giving licenses to private insurers, ICICI Prudential and
HDFC Standard Life first private insurers to sell a policy.

• 2002:- Banks were allowed to sell insurance plans , as TPAs enter the scene,
insurers start selling non-life claims in the cashless mode

Insurance Sector Reforms:



In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor
R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its
future direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector. The reforms were aimed at
"creating a more efficient and competitive financial system suitable for the requirements
of the economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall financial system where it
was necessary to address the need for similar reforms". In 1994, the committee submitted
the report and some of the key recommendations included:

1) Structure:

• Government stake in the insurance Companies to be brought down to 50%.

• Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independent corporations.

• All the insurance companies should be given greater freedom to operate.

2) Competition:

• Private Companies with a minimum paid up capital of Rs.1bn should be allowed
to enter the industry.

• No Company should deal in both Life and General Insurance through a single
entity.

• Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.

• Postal Life Insurance should be allowed to operate in the rural market.

• Only One State Level Life Insurance Company should be allowed to operate in
each state.

3) Regulatory Body:



• The Insurance Act should be changed.

• An Insurance Regulatory body should be set up.

• Controller of Insurance (Currently a part from the Finance Ministry) should be
made independent.

4) Investments:
• Mandatory Investments of LIC Life Fund in government securities to be reduced
from 75% to 50%

• GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time)

5) Customer Service:

• LIC should pay interest on delays in payments beyond 30 days. Computerization
of operations and updating of technology to be carried out in the insurance
industry The committee emphasized that in order to improve the customer
services and increase the coverage of the insurance industry should be opened up
to competition. But at the same time, the committee felt the need to exercise
caution as any failure on the part of new players could ruin the public confidence
in the industry. Hence, it was decided to allow competition in a limited way by
stipulating the minimum capital requirement of Rs.100 crores. The committee felt
the need to provide greater autonomy to insurance companies in order to improve
their performance and enable them to act as independent companies with
economic motives. For this purpose, it had proposed setting up an independent
regulatory body.

Bank and Insurance:



Bank assurance symbolizes the convergence of banking and insurance. The term has its
origins in France and involves distribution of insurance products through a bank's branch
network. While bank assurance has developed into a tremendous success story in Europe,
it is a relatively new concept in Australia and Asia.

Most new insurers have entered into memoranda of understanding with banks to use their
branches as outlets for marketing standard products. State Bank of India, Vysya Bank and
J&K Bank already has joint ventures in life insurance. Vijaya Bank and Punjab National
Bank are in the midst of finalizing life and non-life ventures.

The Insurance Act allows only those companies registered under the Companies Act to
become corporate agents. This gives the new generation and old private sector banks a
head start over Public sector banks, which are technically not eligible to sell risk
products.

IRDA, IBA & RBI are in discussions to iron out the various issues, as public sector banks
will play a key role in the distribution of products.

March 2003 Review:

The Insurance Regulatory and Development Authority have said that a bank cannot enter
into a referral arrangement with more than one life insurance company or more than one
general insurance company. Insurance companies can enter into referral arrangements
displaying the insurer’s publicity material in the branch premises.

According to the IRDA, the participation of the bank’s customers in any insurance
scheme shall be purely on a voluntary basis and this fact should appear prominently in all
publicity materials distributed by the bank and the insurer. According to latest IRDA
circular, the total payout under the referral fee has been capped as a percentage of the



Circular, the total payout under the referral fee has been capped as a percentage of the
total premium, which varies from 5.5% to 55% depending on the extent of the business.

The company generates through the referral arrangement. IRDA has barred insurers from
paying any referral fee for any promotional campaign. Besides, insurers cannot pay any
commission or other remuneration along with the referral fees.

March 2004 Review:

IRDA has announced new guidelines pertaining to payment of brokerage to insurance
brokers carrying on direct insurance business in the country. As per the new guidelines
on general insurance contracts, insurance brokers cannot charge brokerage or commission
on the business of Government and public sector undertakings (PSUs. Business from
these classes of customers will be placed directly with the insurance companies, wherein
they will continue to enjoy a five per cent discount on the basic tariff applicable.

The notification will come into effect from April 1, 2003, and applies to all general
insurance contracts. These guidelines will not apply to reinsurance broking contracts.
Brokerage/commission includes any royalty, license fees, administration charges or any
compensation, which any agreement between the parties provide for intermediation.
IRDA has so far issued broking licenses to 32 entities in the country.

IRDA has laid out stringent norms including cap on exposure in MF investment as well
as investment in stocks and shares for both public and private insurance companies
detailing the guidelines for investments in mutual funds (MFs).
According to this circular, the investment in MFs at any point of time shall not exceed 50
per cent of investment falling under the ‘other than approved investments’ (OTAI)
category for both life and general insurance companies. IRDA has also stipulated that the
MFs in which the insurers invest should be registered with the SEBI. Besides, the insurer
should always ensure that the investments in MF are diversified among the products of
different companies.

Life insurers:



S.No. Registration Date of Name of the Company
Number Reg.

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 MetLife India Insurance Company Ltd.

11 133 04.09.2007 Future General India Life Insurance Company Limited

12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

Major Market Players:

1. Life Insurance Corporation of India (LIC)



The Life Insurance Corporation (LIC) was established about 44 years ago with a view to
provide an insurance cover against various risks in life. A monolith then, the corporation,
enjoyed a monopoly status and became synonymous with life insurance. Its main asset is
its staff strength of 1.24 lakh employees and 2,048 branches and over six lakh agency
force. LIC has hundred divisional offices and has established extensive training facilities
at all levels. At the apex, are the Management Development Institute, seven Zonal
Training Centers and 35 Sales Training Centers. At the industry level, along with the
Government and the GIC, it has helped establish the National Insurance Academy. It
presently transacts individual life insurance businesses, group insurance businesses,
social security schemes and pensions, grants housing loans through its subsidiary; and
markets savings and investment products through its mutual fund. It pays off about Rs
6,000crore annually to 5.6 million policyholders.

2. ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial
services group headquartered in the United Kingdom. Prudential plc established in
London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and
Asia, provides retail financial services products and services to more than 16 million
customers, policyholder and unit holders worldwide

ICICI Prudential enjoys the second highest market share after Life insurance corporation.

ICICI Prudential equity base stands at Rs. 925 crore with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. In the period April-December 2004, the
company garnered Rs 860 crore of new business premium for a total sum assured of over
Rs 7,360 crore and wrote nearly 345,000

3 Birla Sun Life Insurance Company Limited



Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life
Financial of Canada to enter the Indian insurance sector. The Aditya Birla Group, a
multinational conglomerate has over 75 business units in India and overseas with
operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and Egypt to
name a few.

Foreign Partner:

Sun Life Assurance, Sun Life Financials primary insurance business, has excellent
ratings with the world's top rating agencies. With assets under management as on
September 30, 2000 totaling more than CDN billion, it ranks amongst the largest
international financial services organizations in the world. Today, the Sun Life Financial
Group of companies and partners are represented globally in Canada, the United States,
the Philippines, Japan, Indonesia, India and Bermuda.

4 OM Kotak Mahindra Life Insurance

Established in 1985 as Kotak Capital Management Finance promoted by Uday Kotak the
company has come a long way since its entry into corporate finance. It has dabbled in
leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc.
The company got its name Kotak Mahindra as industrialists Harish Mahindra and Anand

Mahindra picked a stake in the company. Kotak Mahindra is today one of India's leading
Financial Institutions.

Old Mutual

Old Mutual plc is an international financial services group based in London with
expanding operations in life assurance, asset management, banking and general
insurance. Old Mutual is listed on the London Stock Exchange (where it is included the
FTSE 100 Index) and also on the South African, Namibian, Malawi and Zimbabwe stock
exchanges. It has 156 years of experience in the life insurance business.

OM Kotak Mahindra



OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd., and Old
Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life
insurance products.

5 Max New York Life:

Max India:

Max India Limited is a multi-business corporation that has business interests in telecom
services, bulk pharmaceuticals, electronic components and specialty products. It is also
the service-oriented businesses of healthcare, life insurance and information technology.

New York Life:

New York Life has grown to be a Fortune 100 company and an expert in life insurance. It
was the first insurance company to offer cash dividends to policy owners. In 1894, New

York Life pioneered the then unheard-of concept of insuring women at the same rate as
men. Thereafter, it continued to introduce a series of firsts - a disability benefit clause in
1920, unemployment insurance in 1992, and complete customer care on the Web in 1998.
Today New York Life has over US billion in assets under management and over 30,000
agents and employees worldwide. The October 2000 Fortune Survey named New York
Life amongst the top three most admired life and health insurance companies worldwide.
With over 3 million policyholders, New York Life is a leading provider of insurance in a
host of countries worldwide.

6 Aviva Life Insurance India:

Aviva Life Insurance India is joint venture between Dabur, one of India's oldest and
largest groups of companies and Aviva. Aviva plc. is UK’s largest insurer. In accordance
with government regulations, Aviva holds a 26 percent stake in the new venture and
Dabur holds a 74 percent share.

Aviva:



Aviva is the world's seventh-largest insurance group (Based on gross worldwide
premiums) and the biggest in the UK. It is one of the leading providers of life and
pensions products to Europe and has substantial businesses elsewhere around the world.
Its main activities are long-term savings, fund management and general insurance.

7 ING Vysya Life Insurance:

ING Group:

ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance, ING
Vysya Bank and GMR Group. Over the last 150 years, ING Group has grown to become
one of the largest life insurance organizations in the world. Today it touches the lives of
over 50 million people across 65 countries. It offers a range of financial services
including insurance, pensions, banking and asset management. In the year 2000, total
assets of the group stood at over INR 28, 42,000 crores. ING Group has wide and deep
experience in setting up companies in new markets, which require substantial investments
underlining ING's long-term commitment. In the last 20 years, ING Group has
established successful life insurance companies in 15 countries contributing to the
development of insurance services in these countries.

ING Vysya Bank Limited:

It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5
million customers, 480 outlets and 6000 employees it is known for its innovative banking
services and for pioneering several products and services. ING Vysya Bank has a long-
standing relationship with its customers and deep understanding of the Indian market.

GMR Group:



It has a solid track record of over two decades of growth and has wide-ranging interests

in fields such as power generation, infrastructure, manufacturing, software and banking.

GMR group has an excellent reputation of being able to successfully develop ventures

from scratch.

8 MetLife India Insurance Pvt. Company:

MetLife India was incorporated as a joint venture between MetLife International
Holdings, Inc., Jammu & Kashmir Bank, M Pallonji & Co. and other private investors.
MetLife India is headquartered in Bangalore with offices and presence in major Indian
cities, and additional 1000 outreach points through its channel partners.

MetLife:

Ranked 38 on the Fortune 500 list (April 2003), MetLife, Inc. (MetLife) is one of the
world’s largest, strongest and most respected financial organizations. MetLife, through its
affiliates, is the number 1 life insurer in the U.S. with approximately $2.4 trillion of life
insurance in force (as of December 2002) and has been delivering reliable, high quality
service to customers since 1868. The MetLife companies serve approximately 12million
individuals in the U.S. as well as the employees of 88 of the Fortune 100 companies.
Headquartered in New York, MetLife operates through its affiliates and subsidiaries in 12
countries across the Americas, Europe and Asia.

9 Allianz Bajaj Life Insurance Co.

Allianz Bajaj Life Insurance Co. Ltd. is a joint venture between two leading
conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj
Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.

Foreign Partner:



Allianz Group is one of the world's leading insurers and financial service providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost
174,000 employees. At the top of the international group is the holding company, Allianz
AG, with its head office in Munich. Allianz Group provides its more than 60 million
customers worldwide with a comprehensive range of services in the areas of

• Property and Casualty Insurance,

• Life and Health Insurance,

• Asset Management and Banking.

10 SBI Life Insurance Company Ltd:

SBI Life Insurance Company Ltd. is a joint venture between India's largest bank, State
bank of India (SBI) & Cardiff S.A., a leading Life Insurance company in France. State
Bank of India (SBI) is a household name, and it stands as the last word for financial
strength and security in the country. SBI's illustrious background dates back to the year
1806 when it started business, as a presidency bank, known as Bank of Bengal.

Over the long journey, it has learnt to combine the best of banking practices handed down
from the imperial management with the more dynamic ways of doing banking in the
modern India. It has grown as a responsible giant in the banking field over the years.



COMPANY PROFILE

Housing Development Financial Corporation Ltd



Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as
the largest residential mortgage finance institution in the country. The corporation has
had a series of share issues raising its capital to Rs. 119 crores. The net worth of the
Corporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates through 75
locations throughout the country with its Corporate Headquarters in Mumbai, India.
HDFC also has an international office in Dubai, U.A.E., with service associates in
Kuwait, Oman and Qatar.

HDFC Standard Life Insurance Company Ltd:

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.), India’s leading housing finance institution and The Standard Life Assurance
Company, a leading provider of financial services from the United Kingdom.
Incorporated on 14th August 2000, it was the first life company to be granted a certificate
of registration by the IRDA on the 23rd of October 2000. HDFC Standard Life is one of
the first companies to be granted license by the IRDA to operate in life insurance sector.
It is a joint venture of HDFC Ltd and Standard Life Europe's largest mutual life assurance
company. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and
Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the
venture.

HDFC Standard Life Insurance is a new Indian life insurance company that
operates out of 52 locations. It offers clients a range of insurance plans to meet their
savings, investment and protection needs. In the financial year 2002-03, the company
registered a year-on-year growth of over 260%. It is also the first new life insurance
company to declare its third successive bonus for participating policy holders.

In order to survive in the insurance segment, HDFC had to introduce new
products. They were looking for a robust and integrated solution to support the new



product. HDFC was also facing numerous problems with their current systems in terms of
performance, reliability and scalability.

HDFC Standard Life Insurance sells a range of individual savings, pension and
group life assurance products and has branch offices in 39 locations throughout India. It
was recently rated as the "Best New Insurer - 2003" by Outlook Money magazine. Both
the promoters are well known for their ethical dealings and financial strength and are thus
committed to being a long-term player in the life insurance industry.

HDFC Standard Life Insurance is one of the leading private life insurance companies.
The company generated premium from new business of Rs. 486 Cr in 2004-05,
registering a year-on-year growth of over 132%. The total premium income (including
renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. The company also
achieved a major milestone during the financial year by crossing a Sum Assured figure of
Rs. 30,000 Cr. The company also declared its fifth bonus for participating policyholders.
HDFC operates through 75 locations throughout the country with its Corporate
Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E.,
with service associates in Kuwait, Oman and Qatar.

Standard Life Group, UK



Standard Life is Europe's largest mutual life assurance company. Standard Life, which
has been in the life insurance business for the past 175 years, is a modern company
surviving quite a few changes since selling its first policy in 1825. The company
expanded in the 19th century from its original Edinburgh premises, opening offices in
other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over £70 billion under its management and
has the distinction of being accorded "AAA" rating consequently for the past six years by
Standard & Poor.

The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted license by the IRDA to operate in life insurance sector. Each of the JV player is
highly rated and been conferred with many awards. HDFC is rated 'AAA' by both
CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and
Standard and Poor’s. These reflect the efficiency with which HDFC and Standard Life
manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.

VISION & MISSION



We aim to be the top new life insurance company in the market. This doe’s not just mean
being the largest or the most productive company in the market, rather it is a combination
of several things like-

•Customer service of the highest order

•Value of money for customers

•Professionalism in carrying out business

•Innovative products to cater to different needs of different customers

•Use of technology to improve service standards

•Increasing market share.

Key Values:

 SECURITY: Providing long term financial security to our policy holders will be
our constant Endeavour. We will be doing this by offering life insurance and
pension products.

 TRUST: We appreciate the trust placed by our policy holders in us. Hence, we
will aim to manage their investments very carefully and live up to this trust.

 INNOVATION: Recognizing the different needs of our customers, we will be
offering a range of innovative products to meet these needs. Our mission is to be
the best new life insurance company in India and these are the values that will
guide us in this.

Board Members



Mr. Deepak S Parekh Chairman of HDFC Limited.

Mr. Keki M Mistry Managing Director of HDFC Limited.

Mr. Alexander M Crombie Group Chief Executive of the Standard Life

Ms. Marcia D Campbell Group Operations Director

Mr. Keith N Skeoch Chief Executive in Standard Life

Mr. Ranjan Pant Global Management Consultant

Ms. Renu S. Karnad Executive director of HDFC Limited

Key strengths:

 Financial Expertise



As a joint venture of leading financial services groups, HDFC Standard Life has the
financial expertise required to manage your long-term investments safely and
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
flexibility combined with a low charging structure.

 Track Record so far

Our cumulative premium income, including the first year premiums and renewal
premiums is Rs. 672.3 Crores for the current financial year, Apr-Nov 2005.

We have covered over 11, 00,000 individuals out of which over 3, 40,000 lives have
been covered through our group business tie-ups.

Highlights of Financial Year 2007-08

 New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium
Income is up by 70% @Rs. 4,859 crores as against Rs. 2,856 crores in FY2006-07



 Alternate Channels including banc assurance has recorded an impressive growth
of over 63% to contribute 41% to the Effective Premium Income (EPI)

 Group business funds under management have increased to Rs. 959 crores,
registering a growth of 83% over FY2006-07

 The average premium has increased to Rs. 33,000

 Company products and services are now available in 726 cities and towns across
the country

 Strength of Financial Consultants has increased to 1,45,000

HDFC Standard Life tracks its New Business Premium on the basis of Effective
Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single
Premium policy and is an internationally



PRODUCTS:

HDFC Standard Life offers a bouquet of insurance solutions to meet every need. We
cater to both, individuals as well as to companies looking to provide benefits to their
employees. This section gives you details of all our products. We have incorporated
various downloadable forms and product details so that you can make an informed choice
about buying a policy.
Protection Plans
o Term Assurance Plan
o Loan Cover Term
o Assurance Plan

Investment Plans:
o Single Premium Whole Life Plan

Pension Plans:
• Personal Pension Plan
• Unit Linked Pension Plan
• Unit Linked Pension Plus

Savings Plans:
o Endowment Assurance Plan
o Unit Linked Endowment
o Unit Linked Endowment Plus
o Money Back Plan
o Children's Plan
o Unit Linked Young star
o Unit Linked Young star Plus

GROUP PRODUCTS
o Group Term Insurance
o Group Variable Term Insurance



o Group Unit Linked Plan

OTHER PRODUCTS
• Social Development Insurance Plan

INDIVIDUAL PRODUCTS:

For individuals, they have a range of protection, investment, pension and savings plans
that assist and nurture dreams apart from providing protection. You can choose from a
range of products to suit your life-stage and needs.

HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this
in mind, we have a varied range of Products that you can choose from to suit all your
needs. These will help secure your future as well as the future of your family.

Protection Plans

One can protect their family against the loss of your income or the burden of a loan in the
event of your unfortunate demise, disability or sickness. These plans offer valuable peace
of mind at a small price. Protection range includes our Term Assurance Plan & Loan
Cover Term Assurance Plan.

Investment Plans

Single Premium Whole of Life plan is well suited to meet your long term investment
needs. We provide you with attractive long term returns through regular bonuses.



Pension Plans

Pension Plans helps one secure their financial independence even after retirement.
Pension range includes Personal Pension Plan and Unit Linked Pension Plan.kkk

Savings Plans

Savings Plans offers flexible options to build savings for ones future needs such as
buying a dream home or fulfilling your children’s immediate and future needs. Savings
range includes Endowment Assurance Plan, Unit Linked Endowment Assurance Plan,
Money Back Plan, Children’s Plan, Unit Linked Young star Plan.

GROUP PRODUCTS:

For organizations they have a host of customized solutions that range from Group Term
Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable
plans apart from providing long term value to the employees help in enhancing goodwill
of the company.

Some of the group products to our esteemed corporate clients:
Group Term Insurance :
Whatever the business – It’s the people who make it a success. Everybody requires
Some type of life insurance, especially when others depend on them financially.



The Group Term Insurance (GTI) plan meets this need and serves as an ideal way for
companies to reinforce their bond with their employees. The sort of needs, you, as an
employer need to cater to could be in form of:
 Employee benefits.
 Cover for housing or vehicle loans given by you to your employees.
 A GTI cover for future service gratuity liability to be taken along with the HDFC
Group Unit Linked Plan.

The HDFC Group Term Insurance is a cost-effective plan that addresses these needs.
In addition you have the choice to opt for a GTI with an experience discount feature
("Profit Share"), where a discount is given on future premiums in case of favorable
claim experience (subject to group size).
Group Variable Term Insurance

The Group Variable Term Insurance is a tailor made insurance policy for third party
institutions. HDFC Standard Life Insurance Company will offer life insurance to
customer’s of one or more of the third party’s specific products in order that in the event
of their death, there will be a lump sum available.

The Group Variable Term Insurance:
On death, will pay a lump sum known as a sum assured. The sum assured varies over
time in order that the customer receives the cover that they need.
Is a group policy.
• Has no lengthy underwriting procedure.
• Is simple to administer

GROUP UNIT LINKED PLAN
Many organizations realize that the statutory requirement benefits are not sufficient for
their trusted employees to continue enjoying their quality of life after they retire. The
HDFC Group Unit Linked Plan is a great way for an employer to show his employees
that he not only takes care of them while in service, but has also ensured that they can
lead a comfortable life after retirement.



The HDFC Group Unit Linked plan is also a great employee retention and motivation
tool that helps employers to fund their employees’ post-retirement needs in a systematic,
tax-efficient and cost-effective manner. Moreover, as a unit-linked plan, it gives you
tremendous flexibility and freedom to customize individual retirement funds for your
employees based on their appetite for risk and the stage of life they are in.

This plan helps an organization by:

 Providing an investment vehicle to trustees for making the contribution for each
member.
 Helping build a substantial retirement fund for each member.

 Presenting a potential to provide higher benefits to employees.

 Offering tax benefits for investments made through the formation of a trust

INDIVIDUAL PRODUCTS:

Term Assurance Plan

If you have a family that you care for, you should consider what would happen in case of
your unfortunate death. The emotional void cannot be filled, but financial insecurity can
be avoided. By taking this affordable life insurance plan, you can provide for the well-
being of your family in case of your unfortunate death. This plan comes to you at a
Minimal cost and is well-suited for the value-conscious customer. Under this plan, a sum
assured is payable in case of death of the life assured during the term of the contract. One
can choose the lump sum that would replace the income lost to one's family in the
unfortunate event of one's death. Since this non-participating (without profits) plan is a
pure risk cover plan, no benefits are payable on survival to the end of the term of the
policy.

Term Assurance Plan:



A protection plan to secure higher protection needed for your family at economical rates
Optional riders for enhanced protection Unique joint life option to cover your spouse
under the same plan Single / regular premium payment options

PERSONAL PENSION PLAN

Today, one is busy climbing the ladder of success and realizing their dreams. Today, time
is with you. Just take a moment and think. Will you be able to continue at the same pace?
Will your income be the same forever? Will you be able to live life on your own terms
even after you retire?

HDFC PERSONAL PENSION PLAN:

HDFC understands ones need to build a secure future for them. Hence, the HDFC
Personal Pension Plan is an insurance policy that is designed to provide a post –
retirement income for life with the freedom to choose your retirement date.

You can choose your premium, the Sum Assured and your retirement date. At the end of
the policy term, you will receive the Sum Assured plus any attaching bonus, which will
provide your post - retirement income.

The HDFC Personal Pension Plan is an insurance policy, which can benefit one in the
following ways:

• Provides a post retirement income in your golden years

• Gives you the flexibility to plan your retirement date



• Gives you tax benefits on your premiums

The plan receives simple Reversionary Bonuses, which are usually added annually. At
the end of the term an additional Terminal Bonus may be paid depending on the
performance of the underlying investment.

Easy steps to get insured are:

 Choose your retirement age
 Estimate the post – retirement income you require.

 Work out the premium payable with your Financial Consultant.

UNIT LINKED PENSION PLAN:

Lead a life of respect and dignity. Even after retirement Today, one is busy climbing the
ladder of success and realizing their dreams. Today, time is with you. Just take a moment
and think. Will you be able to continue at the same pace? Will your income be the same
forever? Will you be able to live life on your own terms even after you retire?

HDFC UNIT LINKED PENSION PLAN

HDFC understands ones need to build a secure future for them. The HDFC UnitLinked
Pension Plan is an insurance policy that is designed to provide a retirement income for
life with the freedom to maximize your investment returns by providing a choice of
thoroughly researched and selected investments. Stride into your golden years of
retirement with dignity and pride. You can choose your premium and the investment fund
or funds. We will then invest your premium, net of 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. In the event of
your unfortunate demise during the policy term, your spouse will receive a cash lump
sum to help him or her manage their retirement years.

The HDFC Unit Linked Pension Plan is an insurance policy, which benefits
you in the following ways:
 Provides a post retirement income for life

 Gives you the flexibility to plan your retirement date

 Gives you the freedom to invest premiums as per your preference

 Offers you potentially higher market linked returns

 Give you tax benefits on your premiums and on receiving the lump sum

• Choose your retirement age
• Choose the premium you wish to invest, based on your retirement needs.
• Choose the investment fund or funds you desire.

Endowment Assurance Plan:

You have given your family the very best. And there is no reason why they should not get
the very best in the future too. As a judicious family man, your priority is to secure the
well-being of those who depend on you. Not just for today, but also in the longterm.More
importantly, you have to guard your loved ones against any eventuality. How will they
sustain their way of life, so lovingly built by you, in your absence? With our HDFC
Endowment Assurance Plan, you can ensure that your family remains financially



independent, even if you are not around. You can ensure that they live a life of respect
and dignity. Always

The HDFCSL Endowment Assurance Plan gives:

An ideal way to secure your long-term financial goals
Valuable protection to your family by way of lump sum payment in case of your
unfortunate death within policy term
Provides lump sum payment (basic Sum Assured plus any bonus additions) on survival
up to maturity date
Very flexible benefit options and payment options.

In case of your unfortunate demise during the policy term, this participating (‘With
Profits’) insurance plan will pay your family the Sum Assured (together with the attached
bonuses) you had chosen.

performance of the underlying investment


Choose the amount of targeted savings and policy term using our Financial Planning
Tool.

Choose from any one of the 4 additional benefit options as per your requirement. Work
out the premium payable and Sum Assured with our Financial Consultant.

CHILDREN'S PLAN:



As a parent, your priority is your child’s future and being able to meet your child’s
dreams and aspirations. Today, providing a good education, establishing a professional
career or even a modest wedding is expensive. Costs are increasing fast. Just imagine
how much you’ll need when your child takes these important steps in life!
Plan today to ensure a bright future for your child. Start building savings today with our
HDFC Children’s Plan. So that your child is able to lead a life of respect and dignity with
a secured financial future.

HDFC Children's Plan

The HDFC Children's Plan gives:

Invaluable financial support to your child

Helps you customize an ideal plan for your child

Provides you multiple options for multiple benefits

The HDFC Children’s Plan is designed to secure your child’s future by giving your child
(the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate
demise, early in the policy term. The premiums, paid by you, are invested by the
company to give you good long-term returns.

performance of the underlying investment (See ‘Bonuses’ for more details).

Easy steps to follow:



Choose the amount of targeted savings and policy term using our Financial Planning
Tool.
Choose any one of the 3 plan options as per your child's requirement.

Work out the premium payable and Sum Assured with our Financial Consultant

UNIT LINKED YOUNG STAR PLAN:

As a parent, your priority is your children’s future and being able to meet their dreams
and aspirations. Today, providing a good education, establishing a professional career or
even a modest wedding is expensive. Costs are increasing fast. Just imagine how much
you will need when your children take these important steps in life. Plan today to ensure
a bright future for your children. Start building savings today with the HDFC Unit Linked
Young Star Plan. So that your child is able to lead a life of respect and dignity with a
secured financial future.

The HDFC Unit Linked Young Star Plan gives you:
An outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments
Valuable protection in case of the insured parent’s unfortunate demise
Very flexible benefit combinations and payment options
Flexible additional benefit options such as critical illness cover
You can choose your premium and the investment fund or funds. We will then invest
your premium, net of 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 In case of
your unfortunate demise during the policy term, HDFC Standard Life will continue the
policy and continue to pay the original premiums you had chosen.



Your family will receive the Sum Assured you had chosen* plus the fund built up by
your and HDFC Standard Life’s contributions. Use HDFC Standard Life’s excellent
investment options to maximize your savings and Maximize your child’s achievements.
We will provide security for your child and make those savings on your behalf, in your
absence
Easy steps to follow:
Choose the premium you wish to invest.
Choose the amount of Protection (Sum Assured) you desire.
Choose the additional benefit options you desire.
Choose the investment fund or funds you desire.

Money Back Plan:

You have always believed in living life on your own terms. So why let the changing
realities of everyday life overwhelm you and make your aspirations take a back seat? You
can plan now to ensure that you have the necessary funds to meet your future financial
needs.

The table below will help you identify and classify some of your financial goals. You can
prioritize these goals and set your objectives accordingly (see indicative table given
below).
SHORT TERM GOALS
LONG-TERM GOALS
Provide adequate cover for Life, Critical Buying a car
Illness or disability.
Saving for big-ticket assets like your Saving for your marriage
house.
Saving for your children’s education Vacation abroad
Having a regular system for savings



The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you:

A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals
within the policy term (see the table given below) – an ideal way to secure your long-
term as well as short-term financial goals A lump sum payment on survival up to
maturity date Valuable protection to your family by way of lump sum payment in case of
your unfortunate death within the policy term. This is over and above any earlier payouts
Making the right kind of investment will enable you to achieve your objectives – be it
your immediate expenses or else securing your future financial needs. Our Money Back
Plan gives you a wide range of terms and cash benefit schedule to choose from. A
summary of Key Benefits including the cash lump sum payments, expressed as a
Percentage of Sum Assured is shown below.



Maturity Value
On maturity you receive survival benefit due at that point of time along with
attaching bonuses for the full Sum Assured calculated for the full term.
You can ensure your financial independence. And be able to live life on your own terms.

Steps to be followed:

Choose the amount of targeted savings and policy term using our Financial Planning Tool
Choose from any one of the 4 additional optional benefits as per your requirement.
Work out the premium payable and Sum Assured with our Financial Consultant.

Unit Linked Plan
The Group Term Insurance (GTI) is a cost-effective plan that addresses these needs.
In addition you have the choice to opt for a GTI with an experience discount feature,
Wherein a discount is given on future premiums in case of favorable claim experience

The Group Term Insurance plan will have the following structure
One year renewable term insurance plan
One master policy issued covering all members of the group
Sum assured is payable on death (either due to natural causes or accidents)

Key features of the plan
Our product has been designed to offer innovative features and a high degree of
Customization. These are:

Convenient medical procedures

The members do not need to undergo any medical examination up to the “Free Cover
Limit”. This limit is dependant upon the sum assured and the size of the group.



Awards and Accolades

March, 2008
Unit Linked Savings Plan Tops Mint Best TV Ads Survey

The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading
private insurance companies in India, has topped Mint’s Top Television Advertisement
survey conducted, for February 2008. HDFC Standard Life’s Unit Linked Savings Plan
advertisement was ranked 4th in terms of a combined score of ad awareness and brand
recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and
claim). The respondents were between 18 and 40 years. Mint’s exclusive report, ‘New
Voices in a makeover’ outlines the survey in detail.

February, 2008
Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007

Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received
the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual
Qimpro Awards function. The award celebrates excellence in individual performance and
highlights the quality achievements of extraordinary individuals in an era of global
competition and expectations.

January,



2008
Sar Utha Ke Jiyo among India’s 60 Glorious Advertising Moments

HDFC Standard Life’s advertising slogan honored as one of ‘60 Glorious Advertising
& Marketing Moments' over the last 60 years in India,’ by 4Ps Business and
Marketing magazine. The magazine said that HDFC Standard Life is one of the first
private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead
of 'death' to convey its brand proposition. This was then, followed by others including
ICCI Prudential, thus giving HDFC Standard Life the credit of bringing up one such
glorious advertising and marketing moment in the last 60 years.

December, 2007
Pension Plan Tops Mint’s Survey of Best TV Ads

HDFC Standard Life’s pension plans topped the ad diagnostics and ranked eighth on ad
reach in a survey of new television advertisements in November, 2007, conducted by
Mint, the leading business newspaper of the Hindustan Times Group. Our pension
advertising was ranked first in terms of ad diagnostic scores (likeability, credibility,
enjoyment). The respondents were between 18 and 40 years. We were ranked 8th in
terms of a combined score of ad awareness and brand recall.

September, 2007
Ranked Sixth Most Effective Advertisement



HDFC Standard Life was ranked 6th amongst ‘The 10 most effective ads’ in
September 2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor. We
have moved up from 56th position in August 2007. JuxtConsult’s Ad Box Office is
India’s biggest monthly monitor of most effective television ads amongst urban
consumers. The ranking was based on the total effectiveness of the ad in connecting the
Sar Utha Ke Jiyo ranked 10th in the Top 10 Top-of-mind ad slogans in September,
2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor. The ranking was
based on how much our ad slogan recalled ‘top of mind’ in the daily ad clutter.

June, 2007
Received PCQuest Best IT Implementation Award 2007

HDFC Standard Life received the PCQuest Best IT Implementation Award 2007 for
Wonders, its path-breaking implementation of an enterprise-wide workflow system.
PCQuest, the leading IT publication from the Cyber Media Group identified six most
innovative IT implementation projects deployed successfully across India for the award.
The winners of the 4th PCQuest Best IT Implementation Awards were chosen from 250
nominations across 22 industries and 23 projects ranging from government, banking
finance and insurance, manufacturing, petroleum, and IT/ITES to poultry, travel and
tourism, real estate, construction, power and utilities.

.



RESEARCH DESIGN



Title of the Study: “Customers Attitude towards HDFC Standard Life Insurance”

Statement of the Problem: The study has been undertaken to know the “Customers
attitude towards HDFC Standard Life Insurance”

Objectives of Study:

 To study the customer awareness for HDFC Standard Life.
 To understand the customers attitude towards HDFC Standard Life brand.
 To know the customers attitude towards the products.
 To know the customers attitude towards the service provided by the company.
 To examine the consumers buying behavior.
 To know the factors which influenced the customers to purchase policy.

Benefits to the Organization:

This project will help the organization to know the customer’s attitude towards
the products of the company. This will help the organization to provide better services
to its clients.

Data Source:
The sources of data collected are:

Secondary Data:
• Information is collected through internet
• From various text books
• Journals and magazines
Primary Data:
• Questionnaire
• Personal interview



Sampling method:
• Sample size: 100 samples
• Sample unit: Existing customers of HDFC Standard Life Insurance
• Sample area: Belgaum city
• Sample Technique: Convenience sampling

Tools Used For Analysis:
SPSS Software
MS excel

Data Collection Approach:

Primary data has been used to carry out the research successfully. The secondary
data has been collected from various journals and publications. For the purpose of
gathering primary data a structure and non-disguised questionnaire was designed to
collect data from the Customers. The questionnaire contains both open-ended and close-
ended questions.

Method of Communication:
In order to minimize the bias in data collection, the method of personal interaction
was adopted.

Limitations of the study:

 This survey was restricted to Belgaum city only.
 Time limit was major constraint.
 The sample size restricted to 100 only.



DATA ANALYSIS



CUSTOMERS PROFILE:

Age

Cumulative
Frequency Percent Valid Percent Percent
Valid 20 - 30 41 41.0 41.0 41.0
30 -40 34 34.0 34.0 75.0
40 - 50 17 17.0 17.0 92.0
50-60 8 8.0 8.0 100.0
Total 100 100.0 100.0

Age

50-60

8.0%

40 - 50

17.0%
20 - 30

41.0%

30 -40

34.0%

Analysis:

From the pie chart it depicts that majority of Customers age is in between 20 – 40 age.



Sex

Cumulative
Valid Male 72 72.0 72.0 72.0
Female 28 28.0 28.0 100.0
Total 100 100.0 100.0

Sex
Female
28.0%

Male
72.0%

Analysis

Out of 100 Respondents
• 72% of respondents are male
• 28% of respondents are female



Marital Status

Cumulative
Valid Married 67 67.0 67.0 67.0
Unmarried 33 33.0 33.0 100.0
Total 100 100.0 100.0

Marital Status
Unmarried

33.0%

Married

67.0%

Analysis:

Out of 100 respondents majority of respondents are married.



Education

Cumulative
Valid Graduate 41 41.0 41.0 41.0
Post Graduate 25 25.0 25.0 66.0
Under Graduate 29 29.0 29.0 95.0
Proffesional 5 5.0 5.0 100.0
Total 100 100.0 100.0

Education

Proffesional
5.0%

Under Graduate
Graduate
29.0%
41.0%

Post Graduate

25.0%

Analysis:

According to analysis majority of clients are Graduate.



Occupation

Cumulative
Valid Government Employee 10 10.0 10.0 10.0
Business 26 26.0 26.0 36.0
Private employee 28 28.0 28.0 64.0
Proffesional 5 5.0 5.0 69.0
Other 31 31.0 31.0 100.0
Total 100 100.0 100.0

Occupation

Government Employee

10.0%

Other

31.0%

Business

26.0%

Proffesional

5.0%

Private employee

28.0%

Out of 100 Respondents
• 10% of respondents are Government employees
• 26% of respondents are Business
• 28% of respondents are Private employee
• 5% of respondents are Professionals
• 31% of respondents are others



Annual Income

Cumulative
Valid Below 1 Lakh 28 28.0 28.0 28.0
1- 2lakhs 30 30.0 30.0 58.0
2 - 3 Lakhs 27 27.0 27.0 85.0
3 - 4Lakhs 13 13.0 13.0 98.0
Abow 4l akhs 2 2.0 2.0 100.0
Total 100 100.0 100.0

Annual Income
Abow 4l akhs

2.0%

3 - 4Lakhs
13.0% Below 1 Lakh

28.0%

2 - 3 Lakhs

27.0%

1- 2lakhs

30.0%

Out of 100 respondents the pie chart depicts that majority of respondents have annual
income of 1-2 lakhs per annum.


A project report on customers attitude towards hdfc standard life insurance

A project report on customers attitude towards hdfc standard life insurance

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