Financial planning indian_market-hdfc

A SUMMER TRAINING REPORT

In

HDFC Standard Life Insurance

On

“AWARNESS OF FINANCIAL PLANNING IN EMERGING
INDIAN MARKET”

SUBMITTED IN PARTIAL FULFILLMENT OF
REQUIREMENT OF BACHELOR OF BUSINESS
ADMINISTRATION (B.B.A) GURU JAMBHESHWAR
UNIVERSITY, HISAR

TRAINING SUPERVISOR SUBMITTED BY:
Mr. PRADEEP SHARMA MOHIT
AGARWAL
(TERRITORY MANAGER) ENROLLMENT
NO.
06511243229

SESSION : 2006 - 2009

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Directorate of Distance Learning
Guru Jambheshwar University of Science and Technology
Hisar (India)

ACKNOWLEDGEMENT

We take due pleasure to thank all those who have helped & supported us for completion
of this project.

Mr. Pradeep Sharma (Territory Manager) HDFC Standard Life, our Project Guide,
for guiding us throughout our internship which proved to be very essential for our
project.

We are extremely grateful to him for giving me his time and valuable inputs for our
project. His valuable suggestion and guidance proved to be indispensable for the
completion of my project.

I would like to thank Ms. Anju Dwivedi who helped me in making this project. I also
thank to my faculty for their valuable support. I take this opportunity to thank all those
who have directly or indirectly helped me specially JAGANNATH INSTITUE OF
MANAGEMENT SCIENCES who has provided me an opportunity to do my summer
internship in HDFC Standard Life Insurance co.

All the other people at HDFC Standard Life are regarded with great gratitude for their
valuable time and support without which our project would not have been completed.

MOHIT AGARWAL

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CERTIFICATE FROM THE COMPANY

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PREFACE

The purpose of this project is to study the training procedure provided by HDFC
Standard Life Insurance Company Ltd. to Financial Consultant (FC’s) and its Financial
Analysis.

It’s been a great experience to work with such an esteemed organization. I am grateful to
my guide Mr. Pradeep Sharma (Territory Manager) for providing me right direction
and sparing his valuable time to discuss on various issues of training procedure &
financial analysis of HDFC Standard Life Insurance Company Ltd.

This project report has been divided into different chapters. viz.

The project work has been a great experience for me in it was a learning process. Earlier
I was unaware of many things regarding to insurance industry. But after working with
this organization, I got the knowledge of insurance apart of my project work.

Throughout the development of the project it has been my own endeavor to tailor like
approach, subject matter & presentation according to the requirements of its readers. The
language has been kept simple and the entire discussion has been built on a logical &
coherent outlines. Thus this project will meet the requirements of its readers.

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Future Activities
SECURITISATION

DISTRIBUTION HDFC CHUBB
GENERAL INSURANCE
CO. LTD.

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EXECUTIVE SUMMARY

Overall, the life insurance and pension sector is set for rapid changes and growth in the
years ahead. Delivering service, building trust and being innovative are key areas in
which any company will have to excel in order to do well in the long road ahead.
Different companies will take different approaches and it would be myriad of solutions
that will be found to delight the Indian customer.

During the first part, I was given complete classroom training about the various unit
linked as well as the traditional plans and solutions which the company offers.

Later, Market Research was done through various activities and tele-calling which are
discussed further in the report. Activities led to practical exposure and taught me the
aspects of customer dealing.

Finally, interesting conclusions were drawn out of the data collected regarding the
Awareness of Financial Planning among the people in today’s environment.

It was great experience because selling an insurance product demands a great deal
of confidence and product knowledge.

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TABLE OF CONTENTS
Page No.
1. Introduction to Industry 01-
19

2. Introduction to Company 19-
34

3. Research Methodology 35-39

a) Title 36

b) Objectives 36

c) Significance of study
37

d) Research design
37

e) Sampling methodology
38

f) Limitations
39

4. Facts and Findings 40-48

5. Data Analysis and Interpretation 49-63

6. Recommendations 64-65

7. Conclusion 66-69

8. Bibliography 70-71

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9. Annexure 72-75

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Overview

With largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent
annually.

Together with banking services, it adds about 7 percent to the country’s GDP .In spite of
all this growth the statistics of the penetration of the insurance in the country is very
poor. Nearly 80 per cent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. And this
part of the population is also subject to weak social security and pension systems with
hardly any old age income security. This it-self is an indicator that growth potential for
the insurance sector is immense.

Historical Perspective
The insurance came to India from UK; with the establishment of the Oriental Life
insurance Corporation in 1818.The Indian life insurance company act 1912 was the first
statutory body that started to regulate the life insurance business in India. By 1956 about
154 Indian, 16 foreign and 75 provident firms were been established in India. Then the
central government took over these companies and as a result the LIC was formed. Since
then LIC has worked towards spreading life insurance and building a wide network
across the length and the breath of the country.

Important milestones in the life insurance business in India:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.

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

Important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all
classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.

1972: The general insurance business in India nationalized through The General
Insurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107
insurers amalgamated and grouped into four companies- the National Insurance
Company Limited, the New India Assurance Company Limited, the Oriental Insurance
Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a
company.

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Insurance Sector Reforms

Prior to liberalization of Insurance industry, Life insurance was
monopoly of LIC.
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:

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.

Competition
Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to
enter the sector. 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.

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Regulatory Body
The Insurance Act should be changed. An Insurance Regulatory body should be set up.
Controller of Insurance- a part of the Finance Ministry- should be made independent

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)

Customer Service
LIC should pay interest on delays in payments beyond 30 days. Insurance companies
must be encouraged to set up unit linked pension plans. Computerization of operations
and updating of technology is to be carried out in the insurance industry.

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STATISTICS (INDIAN & GLOBAL)
This section gives the users important and detailed statistics of the Indian as well as the
Global insurance industry. These statistics would give important insights of where the
respective markets are headed for.

• The global life insurance market stands at $1,521.2 billion while the non-life
insurance market is placed at $922.4 billion.

• The United States itself accounts for about one-third of the $2443.6 billion global
insurance market and Japan stands next with a 20.62% share.

• India takes the 23rd position with US $9.933 billion annual premium collections
and a meager 0.41% share.

• Out of one billion people in India, only 35 million people are covered by
insurance.

• India's life insurance premium as a percentage of GDP is just 1.77 per cent.

• The income derived by GIC and its subsidiary companies through investment
was Rs.2491.76 crore and the investable fund generated was Rs.2843 crore in
1999-2000.

• Indian insurance market is set to touch $25 billion by 2010, on the assumption of
a 7 per cent real annual growth in GDP.

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NATURE OF INDUSTRY

The insurance industry provides protection against financial losses resulting from a
variety of perils. By purchasing insurance policies, individuals and businesses can
receive reimbursement for losses due to car accidents, theft of property, and fire and
storm damage; medical expenses; and loss of income due to disability or death.

The insurance industry consists mainly of insurance carriers (or insurers) and
insurance agencies and brokerages. In general, insurance carriers are large companies
that provide insurance and assume the risks covered by the policy. Insurance agencies
and brokerages sell insurance policies for the carriers.

Insurance companies assume the risk associated with annuities and insurance policies
and assign premiums to be paid for the policies. In the policy, the companies states the
length and conditions of the agreement, exactly which losses it will provide
compensation for, and how much will be awarded.

The premium charged for the policy is based primarily on the amount to be awarded in
case of loss, as well as the likelihood that the insurance carrier will actually have to pay.
In order to be able to compensate policyholders for their losses, insurance companies
invest the money they receive in premiums, building up a portfolio of financial assets
and income-producing real estate, which can then be used to pay off any future claims
that may be brought.

There are two basic types of insurance carriers: Direct and Reinsurance.

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Direct carriers are responsible for the initial underwriting of insurance policies and
annuities, while Reinsurance carriers assume all or part of the risk associated with the
existing insurance policies originally underwritten by other insurance carriers.

Direct insurance carriers offer a variety of insurance policies.
Life insurance provides financial protection to beneficiaries—usually spouses and
dependent children—upon the death of the insured.

Disability insurance supplies a preset income to an insured person who is unable to
work due to injury or illness

Health insurance pays the expenses resulting from accidents and illness.

An Annuity (a contract or a group of contracts that furnishes a periodic income at regular
intervals for a specified period) provides a steady income during retirement for the
remainder of one’s life.

Property-casualty insurance protects against loss or damage to property resulting from
hazards such as fire, theft, and natural disasters.

Liability insurance shields policyholders from financial responsibility for injuries to
others or for damage to other people’s property. Most policies, such as automobile and
homeowner’s insurance, combine both property-casualty and liability coverage.
Companies that underwrite this kind of insurance are called property-casualty carriers.

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What is Life Insurance?

Human life is subject to risks of death and disability due to natural and accidental
causes. When human life is lost or a person is disabled permanently or temporarily, there
is a loss of income to the household. The family is put to hardship. Risks are
unpredictable. Death/disability may occur when one least expects it. There are a number
of life insurance products which offer protection and also coupled with savings.

A Term insurance product provides a fixed amount of money on death during the period
of contract.

A Whole Life insurance product provides a fixed amount of money on death.

An Endowment Assurance product provided a fixed amount of money either on death
during the period of contract or at the expiry of contract if life assured is alive.

A Money Back Assurance product provides not only fixed amounts which are payable
on specified dates during the period of contract, but also the full amount of money
assured on death during the period of contract.

An Annuity product provides a series of monthly payments on stipulated dates provided
that the life assured is alive on the stipulated dates.

A Linked product provides not only a fixed amount of money on death but also sums of
money which are linked with the underlying value of assets on the desired dates.

There are a variety of life insurance products to suit to the needs of various categories of
people—children, youth, women, middle-aged persons, old people; and also rural
people, film actors and unorganized laborers.

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Life insurance products could be purchased from registered life insurers notified by the
IRDA. Insurers appoint insurance agents to sell their products.

As per regulations, insurers have to give the various features of the products at the point
of sale. The insured should also go through the various terms and conditions of the
products and understand what they have bought and met their insurance needs. They
ought to understand the claim procedures so that they know what to do in the event of a
loss.

INDIAN INSURANCE SECTOR

REGULATORY BODY
Insurance is a federal subject in India. The primary legislation that deals with insurance
business in India is: Insurance Act, 1938, and Insurance Regulatory & Development
Authority Act, 1999.

The Insurance Regulatory and Development
Authority (IRDA)

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

The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
IRDA’s online service for issue and renewal of licenses to agents. Since being set up as
an independent statutory body the IRDA has put in a framework of globally compatible
regulations.

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MISSION-IRDA
“To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
incidental thereto.”

IMPACT OF LIBERALISATION

The introduction of private players in the industry has added to the colors in the dull
industry. The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LIC. Since the advent of
the private players in the market the industry has seen new and innovative steps taken by
the players in this sector.

The new players have improved the service quality of the insurance. As a result LIC
down the years have seen the declining phase in its career. The market share was
distributed among the private players. Though LIC still holds the 79% of the insurance
sector but the upcoming natures of these private players are enough to give more
competition to LIC in the near future. LIC market share has decreased from 95% (2002-
03) to 81 %( 2004-05).

LIC has the current market share of 79%.

Among the private players ICICI Prudential has the maximum of app. 5.60%

Followed by Bajaj Allianz (3.27 %) and HDFC Standard Life of about 3.11%.

Below is the table that shows the market share of various players of the industry.

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The following companies have the rest of the market share of the insurance industry.

COMPANY NAME MARKET SHARE
LIC 79.30
ICICI PRUDENTIAL 5.63
BAJAJ ALLIANZ 3.27
HDFC STANDARD LIFE 3.11
BIRLA SUNLIFE 2.32
TATA AIG 1.45
SBI LIFE 1.24
MAX NEWYORK 0.90
AVIVA LIFE 0.82
ING VYSYA 0.66
OM KOTAK LIFE 0.54
AMP SANMAR 0.38
METLIFE 0.33
RELIANCE LIFE 0.05

The liberalization of the Indian insurance sector has opened new doors to private
competition and the new and improved insurance sector today promises several new job
opportunities. With private players now in the field, there will be innovative products,
better packaging, improved customer service, and, most importantly, greater
employment opportunities.

There are a number of options to choose from for a career in Insurance. Ideally an
insurance company will have openings in the following fields:

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Actuaries
Evaluates the risk for companies to be used for strategic management decisions.
Actuaries use their analytical skills to predict the risk of writing insurance policies
through the use of mathematical, statistical and economic models.

Underwriters
Insurance underwriters review insurance applications and decide whether they
should be accepted or rejected based on the degree of risks involved in insuring the
people or objects of concern. In the life insurance business, an underwriter is
expected to filter the "bad or substandard lives".

Agents/Brokers:
Insurance agents may work for one insurance company or as independent agents
selling for several companies. Insurance agents and brokers can find openings in the
health insurance sector, financial planning services, retirement planning counseling
or even provide other services, for e.g. sell mutual funds, annuities etc.

Surveyor/Loss Assessor:
Surveyors are professionals who assess the loss or damage and serve as a link
between the insurer and the insured. They usually function only in non life business.
Their job is to assess the actual loss and avoid false claims.

Sales/Marketing:

And who can forget the guys who make and break a brand. They would be required
in a large number in order to promote the number of products that will be launched
by numerous companies in the insurance sector.

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CURRENT SCENARIO OF THE INDUSTRY

INSURANCE MARKET 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.

Innovative products and aggressive distribution have become the say of the day. Indians,
have always seen life insurance as a tax saving device, are now suddenly turning to the
private sector that are providing them new products and variety for their choice. Life
insurance industry is waiting for a big growth as many Indian and foreign companies are
waiting in the line for the green signal to start their operations. The Indian consumer
should be ready now because the market is going to give them an array of products,
different in price, features and benefits. How the customer is going to make his choice
will determine the future of the industry.

CUSTOMER SERVICE
Consumers remain the most important centre of the insurance sector. After the entry of
the foreign players the industry is seeing a lot of competition and thus improvement of
the customer service in the industry. Computerization of operations and updating of
technology has become imperative in the current scenario. Foreign players are bringing
in international best practices in service through use of latest technologies. The one time
monopoly of the LIC and its agents are now going through a through revision and
training programs to catch up with the other private players. Though lot is being done for
the increased customer service and adding technology to it but there is a long way to go
and various customer surveys indicate that the standards are still below customer
expectation levels.

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DISTRIBUTION CHANNELS
Till date insurance agents still remain the main source through which insurance products
are sold. The concept is very well established in the country like India but still the
increasing use of other sources is imperative. It therefore makes sense to look at well-
balanced, alternative channels of distribution.

LIC has already well established and have an extensive distribution channel and
presence. New players may find it expensive and time consuming to bring up a
distribution network to such standards. Therefore they are looking to the diverse areas of
distribution channel to have an advantage. At present the distribution channels that are
available in the market are:

• Direct selling/Retail
• Corporate agents
• Group selling
• Brokers and cooperative societies
• Bancassurance

DIRECT SELLING/RETAIL
Direct selling or retail business is carried out by Agents of the company. This is the
main distribution channel due to the complexity of most insurance products
(Endowment, Whole of Life, Unit Linked). This tends to be the focus of most companies
due to its past success as well as its ability to deliver the right advice. However, this
channel can be expensive and it is a time consuming sales process. An agent is the public
face of an Insurance company. Hence it is important that this face is always smiling and
presentable and the facts and figures at his/ her command are updated and correct.

An agent should be a pleasing personality with complete knowledge about the various
plans and solutions which the company has to offer and must also understand the
customer’s psychology well to deal in an efficient manner.

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BANCASSURANCE
Bancassurance is the distribution of insurance products through the bank's distribution
channel. It is a phenomenon wherein insurance products are offered through the
distribution channels of the banking services along with a complete range of banking and
investment products and services. To put it simply, Bancassurance, tries to exploit
synergies between both the insurance companies and banks.

Advantages to banks
• Productivity of the employees increases.
• By providing customers with both the services under one roof, they can

improve overall customer satisfaction resulting in higher customer retention
levels.
• Increase in return on assets by building fee income through the sale of

insurance products.
• Can leverage on face-to-face contacts and awareness about the financial

conditions of customers to sell insurance products.
• Banks can cross sell insurance products e.g.: Term insurance products with

loans.

Advantages to insurers
• Insurers can exploit the banks' wide network of branches for distribution of
products. The penetration of banks' branches into the rural areas can be utilized
to sell products in those areas.
• Customer database like customers' financial standing, spending habits,
investment and purchase capability can be used to customize products and sell
accordingly.
• Since banks have already established relationship with customers, conversion
ratio of leads to sales is likely to be high. Further service aspect can also be
tackled easily.

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the promise to pay, backed by one of the oldest and most stably regulated financial
industry operating in the Indian sub-continent today

OPPORTUNITIES FOR INSURANCE COMPANIES

In the now open sector on insurance, the following is what I feel will determine the
success of the company in particular and the industry in general:

1) A change in the attitude of the population
Indians have always been wary of employing their hard-earned money in a venture that
will pay them on their death. Insurance has always been used as a Tax saving tool. No
more, no less. It is upon the insurers to educate the people to secure/insure their future
against any unknown calamity and make a shield around their families and businesses.

2) An open and transparent environment created under the IRDA .
The reason for this being on the top of our understanding is that when ever we have seen
any sector open up in India there are always grey areas and unsure policies. These are
not exactly what any player, be it Indian or foreign, looks for. It creates an air of
uncertainty in all the decision making process. Insurance as a sector requires players who
are strong financially and are willing to wait for returns.

A well-established distribution network.
To cater to the largest democracy in the world is by no means a cakewalk. Insurance
profits are directly related to number of insured and this is in turn related to the reach.

3) Trained professionals to build and sell the product.
It is said that the insurance agent is the best salesman in the world. He makes you pay,
regularly, an amount promising to pay back only on your death. Thus the players will
require an excellent sales team to sell their products in the now competitive
environment.

4) Encouragement of new and better products and letting the hackneyed

ones die out.

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This will itself ensure the market grows. And that every class/society gets a product that
best suits them.

SPECIAL PROVISIONS

The Income Tax Act and Life Insurance policies
• Under Section 10(10D), any sum received under a Life Insurance policy (not
being a Key Man policy) is also exempt from taxation. But it is wise to remember
that Pensions received from Annuity plans are not exempted from Income Tax.

• Section 80C provides a deduction up to Rs.1,00,000/- to an individual assesses
for any amount paid as a premium.

POLICYHOLDERS GRIEVANCES
Policyholders may have complaints against insurers either in respect of their policies or
their claims. As per Regulations for Protection of policyholders’ interests, 2002, every
insurer should have in place, a grievance redress system to address the complaints of
policyholders. The IRDA has a Grievance Redress Cell which plays a facilitative role by
taking up complaints against insurers with the respective companies for speedy
resolution. The IRDA however does not adjudicate on complaints.

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SWOT ANALYSIS OF INSURANCE INDUSTRY

STRENGTH
1. Best returns with the added advantage of 100% life insurance coverage.

2. Good option for new investors into the market as all the money is invested by best
fund managers so with less knowledge also they can earn good returns.
3. Best commission charges paid to the agents which vary from 12% to 35%.which is
much higher as compared to mutual funds i.e.,only 2-2.5%.

WEAKNESS
1. HDFC SLIC could not able to match LIC in remote areas services.
2. Misleading facts given by life advisors about the returns of ULIPs.
3. Hidden charges taken by the companies.
4. Less Promotional Campaigns.
OPPORTUNITY
1. 80 percent of Indian population is still under insured. So there is a big opportunity for
insurance companies.
2. As the stock market can be under the mark any time so it can bring loss to the
investors but as in ULIPs there is proper mixture of debt securities and equity so the
loss is incurred during dark trading days also.
3. Unit-linked products are exempted from tax and they provide life insurance.
4. Increasing consumer awareness about Insurance and its use.
THREAT
1. Cannibalism within the industry by providing misleading figures to the investors.

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2. Govt.’s instability has a long term repercussions affecting company’s policies and
its growth.

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COMPANY’S PROFILE
INTRODUCTION
Helping Indians experience the joy of home ownership.

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. HDFC operates through
75 locations throughout the country with its Corporate Headquarters in Mumbai, India.

OBJECTIVES AND BACKGROUND
Background
HDFC was incorporated in 1977 with the primary objective of meeting a social need –
that of promoting home ownership by providing long-term finance to households for
their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.

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

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ORGANIZATION AND MANAGEMENT
HDFC is a professionally managed organization with a board of directors consisting of
eminent persons who represent various fields including finance, taxation, construction
and urban policy & development. The board

primarily focuses on strategy formulation, policy and control, designed to deliver
increasing value to shareholders.

HDFC has a staff strength of 1029, which includes professionals from the fields of
finance, law, accountancy, engineering and marketing.

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SUBSIDIARY & ASSOCIATE COMPANIES

• HDFC Bank

• HDFC Mutual Fund

• HDFC Standard Life

• Intel net Global Services Ltd.

• HDFC Chubb General Insurance Company Ltd.

• HDFC Reality

• Other Companies Co-Promoted by HDFC
 HDFC Trustee Company Ltd.

 HDFC Developers Ltd.

 HDFC Venture Capital Ltd.

 HDFC Ventures Trustee Company Ltd.

 HDFC Investments Ltd.

 HDFC Holdings Ltd.

 Home Loan Services India Pvt. Ltd.

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 Credit Information Bureau (India) Ltd

HDFC STANDARD LIFE INSURANCE

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.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.
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.

THE PARTNERSHIP:
HDFC and Standard Life first came together for a possible joint venture, to enter the
Life Insurance market, in January 1995. It was clear from the outset that both companies

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shared similar values and beliefs and a strong relationship quickly formed. In October
1995 the companies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC, further strengthening
the relationship.

In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the
HDFC Treasury department to advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level. Therefore,
in January 2000 an expert team from the UK joined a hand picked team from HDFC to
form the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in
HDFC Bank.

COMPANY’S MISSION:
To be the top life insurance company in the market.
This not only means being the largest or the most productive company in the market, but
a combination of several things like-
• Customer service of the highest order
• Value for money for customers
• Innovative products to cater to different needs of different customers
• Use of technology to improve service standards
• Increasing market share
COMPANY’S VALUES:
• SECURITY: Providing long term financial security to our policy holders will be
our constant endeavor.
• TRUST: Company appreciates the trust placed by our policy holders in us.
• INNOVATION: Recognizing the different needs of our customers, company will
be offering a range of innovative products to meet these needs. Company’s

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mission is to be the best new life insurance company in India and these are the
values that will guide us in this.

KEY MANAGEMENT PERSONNEL
Chairman
Mr. Deepak S. Parikh

Board Of Directors
Mr. K. M. Mistry
Ms. Renu S. Karnad
Mr. A. M. Crombie
Ms. Marcia D. Campbell
Mr. Norman Keith Skeoch
Mr. G. R. Divan
Mr. G. N. Bajpai
Mr. Ranjan Pant
Mr. Ravi Narain

Managing Director & CEO
Mr. D. M. Satwalekar

AUDIT COMMITTEE
Haribhakti & Company
Chartered Accountants
B.K. Khare & Co.

33

Chartered Accountants
Bankers
HDFC Bank Ltd.
Union Bank of India
Indian Bank
The Saraswat Co-operative Bank Ltd.
Federal Bank

KNOWLEDGE MANAGEMENT

When Should One Go For Insurance?
Your insurance need will change as your life does, from starting to work to enjoying
your golden years and all the stages in between. Each one of these stages may pose a
different insurance need/cover for you. In this section, we have drawn up the basic life
stages and help you analyze various insurance needs accordingly.

34

Stage 1 : Young and Single
This is an important stage where one lays down the foundation of a successful life ahead.
Take advantage of the time and power of compounding to ensure that you build up your
dreams, so start saving early. Your needs:

o Save for a home and wedding
o Tax Planning
o Save for Golden years

Stage 2 - Just Married
Marriage brings about a significant change. New dreams and new opportunities also
bring in additional responsibilities. While both of you look forward to a happy and
secure life , it is equally important to ensure that eventualities don’t come in the way of
shaping your dreams.

Your needs:

o Planning for home / securing your home loan
liability
o Save for vacation
o Save for your first child

35

Stage 3 - Proud Parents

Once you have children, your need for life insurance is even more. You need to protect
your family from an untoward incident. Ensure your protection umbrella takes into
account the future cost of securing your child’s dream. You will want life to go on for
your loved ones, and having enough life insurance is a way to help ensure that.

Your needs:

o Provide for children’s education
o Safeguarding family against loan liabilities
o Savings for post-retirement

Stage 4 - Planning for Retirement
While you are busy climbing the ladder of success today, it is important for you to take
time and plan for your life after retirement. Having an early start for retirement planning
can make a significant difference to your savings. Think about your golden years even
before you have reached them. The key is to think ahead and plan well using your time
and money.

Your needs:

o Provide for regular income post retirement

36

o Immediate Tax benefits
o Lead a secure, independent and comfortable

PRODUCT MIX
At HDFC Standard Life, there is a bouquet of insurance solutions to meet every need.
They cater to both, individuals as well as to companies looking to provide benefits to
their employees.

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

For organizations they have customized solutions that range from Group Term
Insurance, Gratuity, Leave Encashment and Superannuation Products.

PRODUCTS FOR INDIVIDUALS

PROTECTION - You can protect your 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.

Plans: Term Assurance Plan

Loan Cover Term Assurance Plan.

INVESTMENT - This includes a plan that is well suited to meet your long term
investment needs. We provide you with attractive long term returns through regular
bonuses.

Plan: Single Premium Whole Of Life

37

PENSION - Our Pension Plans help you secure your financial independence even
after retirement and live a relaxed retired life.

Plans: Personal Pension Plan

Unit Linked Pension

Unit Linked Pension Plus

SAVING - Our Savings Plans offer you flexible options to build savings for your
future needs such as buying a dream home or fulfilling your children’s immediate and
future needs.

Plans: Endowment Assurance Plan,

Unit Linked Endowment,

Unit Linked Endowment Plus,

Money Back Plan,

Children’s Plan,

Unit Linked Youngstar,

Unit Linked Youngstar Plus

GROUP PLANS
HDFC Standard Life has the most comprehensive list of products for progressive
employers who wish to provide the best and most innovative employee benefit solutions
to their employees. They offer different products for different needs of employers
ranging from term insurance plans for pure protection to voluntary plans such as
superannuation and leave encashment.
Plans: Group Term Insurance with Riders
Group Term Insurance with Profit-Share

38

Group Unit-Linked Plan
For Gratuity
For Defined Benefit Superannuation
For Defined Contribution Superannuation
Group Leave Encashment Plan

RURAL CUSTOMER - According to research findings, there is keenness among
rural customers to invest in savings cum protection plan with a term of five years,
especially, if the premium amount is low and affordable. Keeping this in view, HDFC
STD> LIFE has plans like:
Plans: Bima Bachat Yojana.

Super Bachat Yojana

DISTRIBUTION OFFICES
In addition to the corporate office at Mumbai, your Company had 169 offices in over
135 cities/towns in the country. It has a widespread network of Financial Consultants,
Corporate Agents and Brokers servicing customers in these cities and towns.

FINANCIAL CONSULTANTS
The number of licensed Financial Consultants appointed by your Company increased
from over 23,000 in the previous year to over 33,000 in the current year. During the
year, the Company continued its

39

CURRENT SALES- HDFC Standard Life

“HDFC STANDARD LIFE PACING AHEAD”
The Financial Express 15th May 2006
“HDFC Standard Life has recorded a strong year-on-year growth of 112% for the period April-March
2005-06, in comparison to the same period 2004-05, with a new business first year premium of Rs 1,029
crore.

In terms of effective premium income (EPI), which gives a 10% value to a Single Premium policy and is
an internationally-accepted indicator of an insurance company’s performance, the EPI grew by 103% to
Rs 887 cr from Rs 436 crore. The average premium also grew by 62% to Rs 27,500 in 2005-06 from Rs
17,000 in 2004-05.

During the year the company issued over 3,97,000 policies and has covered more than
5,80,000 lives”

Table Showcasing Financial Results:

April-March April-March
Parameters 2006-07 2007-08 Growth
(Rs. Cr) (Rs. Cr) (%)

Total received premium 668.40 1532.21 129.23

i. New Business 486.15 1028.94 111.65

ii. Renewal 182.25 503.27 176.14

40

Effective Premium Income
(Total) 436.08 887.30 103.47
Group Business Premium
(EPI) 49.40 135.15 173.58

FUTURE PLANS
HDFC has always been market-oriented and dynamic with respect to resource
mobilization as well as its lending program. This renders it more than capable to meet
the new challenges that have emerged. Over the years, HDFC has developed a vast client
base of borrowers, depositors, shareholders and agents, and it hopes to capitalize on this
loyal and satisfied client base for future growth. Internal systems have been developed to
be robust and agile, to take into account changes in the volatile external environment.

HDFC has developed a network of institutions through partnerships with some of the
best institutions in the world, for providing specialized financial services. Each
institution is being fine-tuned for a specific market, while offering the entire HDFC
customer base the highest standards of quality in product design, facilities and service.

41

1. TITLE

“AWARNESS OF FINANCIAL PLANNING IN
EMERGING INDIAN MARKET”

a. TITLE JUSTIFICATION

A research design is one, which simplifies the framework of plan for the study and
adds itself in the quick collection and analysis of the data. It is a blue print that has
been filled in completing the study.
Some 100 respondents were taken randomly.

2. OBJECTIVES

OBJECTIVE ONE:
To study the awareness of Financial Planning among the people and the importance of
Insurance in today’s scenario.

OBJECTIVE TWO:
To study Brand awareness of various private insurance companies and their different
investment tools

OBJECTIVE THREE:
Purpose of buying insurance and choosing right channel for buying life insurance

OBJECTIVE FOUR:

43

Quality of service provided by agents and clients satisfaction level.

OBJECTIVE FIVE:
Customer’s perception of improvements brought in by entry of Private Insurance
companies.

3. SIGNIFICANCE OF STUDY

1) Significance to the industry

Competition is the basic element of a free enterprise system. The internet of both the
organization and the customer are better served when there are choices available in the
market. Competition encourages progress and product development. It forces
organizations to be more innovative and productive.
All the insurance companies are respective competitors of each other in there product
segments but they also face the other competition by the following other companies.

2) Significance for the researcher

A questionnaire was prepared for the responses of the respondents. The questionnaire
was designed on the primary objections were of both open ended and closed ended type.
This help us a lot in knowing what is the customer’s perception about the product and
how to deal with them in the different situations

4. RESEARCH DESIGN

A) Probability/Non-Probability
The sampling design for this study was probability sampling. Under this design, the
method of sampling used was simple random sampling. In simple random sampling, a
simple random sample is a subset of individuals (a sample) chosen from a larger set (a
population). Each individual is chosen randomly and entirely by chance, such that each

44

individual has the same probability of being chosen at any stage during the sampling
process. This process and technique is known as Simple Random Sampling. Simple
random sampling is the simplest of the probability sampling techniques. It requires a
complete sampling frame, which may not be available or feasible to construct for large
populations. Even if a complete frame is available, more efficient approaches may be
possible if other useful information is available about the units in the population.

Advantages are that it is free of classification error, and it requires minimum advance
knowledge of the population. It best suits situations where not much information is
available about the population and data collection can be efficiently conducted on
randomly distributed items.

B) Exploratory:
Type of research carried out was EXPLORATORY in nature; the objective of such
research is to determine the approximate area where the drawback of the company lies
and also to identify the course of action to solve it. For this purpose the information
proved useful for giving right suggestion to the company.

5. SAMPLING METHODOLOGY

a) SAMPLING UNIT:

Interacting with number of customers during the activities performed, which included,
markets, cold calling, canopies, etc, did the research process. Sample Design consists of
Random Sampling.

b) SAMPLING TECHNIQUE:

Questionnaire
The questionnaire was formulated by keep in mind the following Points: -

45

• Giving the respondents clear comprehension of the question.
• Inducing the respondents to co-operate.
• Giving instructions as to what is wanted.
• Identifying the needs to be known.

c) SAMPLING AREA:

The primary data was collected through survey that was systematically carried in
East Delhi and NCR (i.e. NOIDA). The responses of the respondents were recorded in
the questionnaire prepared for them through questionnaires with oral interpretation.

d) SAMPLING SIZE:

The people who have been surveyed by the researcher were 100 i.e. the sampling size is
100

6. LIMITATIONS:

The following were the limitations that were there during the course of the study:
1. Limited time period.
2. Less number of respondents.
3. Biasness of the respondents.
4. Place for research is limited
5. Funds available for the research is limited.

46

1. From which age group you belongs to?

a) Below 30
b) 31 - 45
c) Above 45

Below 30
31 – 45
Above 45

2. Are you married or single?

a) Single
b) Married

Single 76%
Married 24%

48

3. What is your annual income?

)a Below 1.5 lakhs
)b 1.5 – 5 lakhs
)c Above 5 lakhs

Below 1.5 lakhs 40%
1.5 – 5 lakhs 25%
Above 5 lakhs 35%

4. Are you aware about Financial Planning ?

a) Yes
b) No

YES 98%
NO 72%

49

5. Are you Insured?

a) Yes
b) No

Yes 87%
NO 13%

6. Which is your most preferred option among these for investment?

a) Banks and post office
b) Share market
c) Insurance
d) Bonds
e) Mutual Fund
f) Real Estate

Banks and post office 21%
Share market 18%
Insurance 20%
Bonds 11%
Mutual Fund 21%
Real Estate 9%

50

7. How would you rate the following companies from the point of view of investments
as well as returns?

(1 - Excellent, 2 - Very Good, 3 - Good, 4 - Average)

a) ICICI Prudential
b) HDFC Standard Life
c) AVIVA Life Insurance

(A) ICICI Prudential

• Excellent
• Good
• Average
• Poor

EXCELLENT 30%
GOOD 20%
AVERAGE 35%
POOR 15%

51

(B) HDFC Standard Life

• Excellent
• Good
• Average
• Poor

EXCELLENT 35%
GOOD 25%
AVERAGE 25%
POOR 15%

(c) MAX New York Life

• Excellent
• Good
• Average
• Poor

EXCELLENT 35%
GOOD 25%
AVERAGE 25%
POOR 15%

52

8. According to you, which sector is most suitable to invest?

a) Only LIC
b) Private Companies
c) Both

Only LIC 30%
Private Companies 35%
Both 35%

9. Which distribution channel would you prefer to buy the insurance?

a) Known / Current Advisor
b) Group Insurance
c) Telesales / Unknown Advisor
d) Friends and Relatives
e) Bancassurance

Known / Current Advisor 11%
Group Insurance 89%
Telesales / Unknown Advisor
Friends and Relatives
Bancassurance

53

10. In which plan, would you like to invest your money?

a) Money Back
b) Endowment
c) Pension Plan
d) ULIPs

Money Back 34.29%
Endowment 20.23%
Pension Plan 21.28%
ULIPs 24.20%

11. What is your purpose to do investment or buying insurance?

a) Retirement Planning
b) Tax Benefit
c) Investment
d) Risk Cover

Retirement Planning 14%
Tax Benefit 23%
Investment 11%
Risk Cover 52%

54

12. If specifically you need to invest in insurance, than in which company would you
like to invest your finance?

a) LIC
b) ICICI Prudential
c) HDFC Standard Life
d) TATA AIG
e) Birla Sun Life
f) KOTAK Mahindra
g) SBI Life
h) AVIVA
i) MAX New York
j) METLIFE
k) ING Vyasya

LIC

ICICI Prudential

HDFC Standard life

TATA AIG

Birla Sun Life

KOTAK Mahindra

SBI Life

AVIVA

MAX New York

METLIFE

ING Vyasya

55


a) Below 30
b) 31 - 45
c) Above 45

AGE DISTRIBUTION

AGE DISTRIBUTION(yrs.)

Below 30
24%
35%
31 - 45

Above 45
41%

 Highest number of Respondents (41%) from Age group 31 to 45 yrs.
 35% respondents are of age below 30 yrs, small percentage of which is

unemployed.

57

2. Are you married or single?

a) Single
b) Married

MARITAL STATUS

MARITAL STATUS SINGLE MARRIED

100%

90%

16
80%

70%

60%
37
50%
24
40%

19
30%

20%

10%

0%
4
Below 30 31 - 45 Above 45
AGE(yrs)

 Total number of single respondents – 23
 Total number of married respondents – 77

58

3. What is your annual income?

a) Below 1.5 lakhs
b) 1.5 – 5 lakhs
c) Above 5 lakhs

INCOME DISTRIBUTION

INCOME DISTRIBUTION(Annual in Rs.appx.)

> 5 lacs 1 10 6
INCOME

3 - 5 lacs 5 12 12

1.5 - 3 lacs 13 12 6

<1.5 lacs 16 7 0

Below 30 31 - 45 Above 45

 Highest, 16 respondents in income bracket below 1.5 lacs, which mainly
comprises of age group below 30 years.
 Respondents of the age group 31-45 yrs, lie in all the income slabs.
 Minimum, 6 respondents in income bracket of above 5 lacs, which are in age
group of above 45 years.

59

4. Are you aware about Financial Planning?

a) Yes
b) No

ARE YOU AWARE ABOUT FINANCIAL PLANNING ?

DO YOU KNOW WHAT IS
FINANCIAL PLANNING ?

100 YES
90
NO OF PEOPLE

98%
80

70
NO
60

50

40

30
2%
20

10

0

 98% of the respondents were aware about Financial Planning.

60

5. Are you Insured?

a) Yes
b) No

INSURED PERCENTAGE

ARE YOU INSURED?

13%

YES

NO

87%

 87 % of respondents were insured on own life and on life of their family
members.
 So we had 13 % of potential customers to approach.

61


b) Share market
c) Insurance
d) Bonds
e) Mutual Fund
f) Real Estate

INVESTMENT PREFERENCE

INVESTMENT PREFERENCE
Banks & Post
office
9% Share Market
21%
21% Insurance

Bonds
18%
11%
Mutual Funds
20%
Real Estate

 21% respondents prefer banks and post office schemes as an investment tool
preference.
 21% respondents prefer mutual funds for investment purpose.
 Insurance ranks 2nd as an investment tool choice, which itself includes
various protection, saving and pension plans.
 Govt. Bonds & securities are mostly preferred by people of higher age group
rather than young generation.
 Property as an investment option is most lucrative choice. However it is
important to mention that majority of respondents are in age group of above

62

30 years and people with high income bracket prefers to invest in Real
Estate.

as well as returns?

(1 - Excellent, 2 - Very Good, 3 - Good, 4 - Average)

a) ICICI Prudential
c) AVIVA Life Insurance

(A) ICICI Prudential

• Excellent
• Very Good
• Good
• Average

15%
30%

35%
20%

Excellent Good Average Poor

63

(B) HDFC Standard Life

• Excellent
• Very Good
• Good
• Average

15%
35%

25%

25%


64

(c) MAX New York Life

• Excellent
• Good
• Average
• Poor

15%
35%

25%

25%


65


a) Only LIC
c) Both

COMPANY PREFERENCE

COMPANY PREFERENCE(in %)

1
55% 30% 15%

0 20 40 60 80 100 120

ONLY LIC BOTH ONLY PVT. COs

 55% of respondents have insurance cover provided by LIC only

 15% of respondents have insurance cover provided by Private Cos. only

 Whereas 30% have got insurance from both LIC and Private Companies.

66

 Total number of LIC policies sums up to 85% and total number of Pvt.
Companies policies sold sums up to 45%.

 Data provides that though LIC is still got a maximum market share but
Private Companies are making a fast move in the market.


b) Group Insurance
e) Bancassurance

DISTRIBUTION CHANNEL PREFERENCE

CHANNEL PREFERENCE

1
56 17 14 9 4

0 20 40 60 80 100 120

Known/Current Advisor Friends & Relatives
Group Insurance Banccassurance
Telesales/unknown Advisor

 According to the data, known/current Advisors remains the 1st choice for buying
Insurance.
 In retail also known Advisors are preferred over referrals.

67

 Bancassurance is emerging as a popular option for buying life Insurance.
 Group insurance is a channel which customers expect but it is not so popular
because only few employers have taken the initiative.
 Buying insurance from a unknown person or getting a phone call is still not
preferred by most of the people

a) Money Back
b) Endowment
c) Pension Plan
d) ULIPs

TYPE OF PLAN BOUGHT

TYPE OF PLAN

17, 20% MONEY BACK
26, 29%
ENDOWMENT

PENSION PLAN
24, 28%
ULIPs
20, 23%

 Money back Policies have been most popular and also the endowment plans.
 As people today are more aware about financial planning, so people of the
age 30 years have planned for their Retirement now.

68

 ULIPs are fast gaining popularity as they provide investment
benefit with Insurance.


b) Tax Benefit
c) Investment
d) Risk Cover

PURPOSE OF BUYING INSURANCE

PURPOSE OF BUYING INSURANCE

Retirement
Planning
14%

Tax Benefit 23%

Investment 11%

Risk Cover 52%

0 10 20 30 40 50 60

 Risk cover remains the most important purpose for buying insurance followed by
option as Tax saving tools.
 Retirement Planning in a early period is also gaining the market share.

69

 ULIPs are responsible for increasing popularity of insurance as an investment
tool


a) LIC
b) ICICI Prudential
d) TATA AIG
e) Birla Sun Life
f) KOTAK Mahindra
g) SBI Life
h) AVIVA
i) MAX New York
j) METLIFE
k) ING Vyasya

BRAND RECALL

BRAND RECALL

LIC
51 100 ICICI Prudential
60
HDFC Std Life
71 96 TATA AIG
BIRLA SUN LIFE
KOTAK MAHINDRA
75
SBI LIFE
92
AVIVA
64 MAX NEW YORK
82 METLIFE
72
86 INGVYSYA

70

 100 % respondents mentioned first name to be LIC
 Among private players, ICICI Prudential has the highest
Brand Recall i.e. 96%
 HDFC Standard life has Brand Recall of 92%

71

RECOMMENDATIONS

1. In line with the existing competition in the Insurance Sector and with new
companies entering now and then, the cost of becoming a Financial Consultant
with the company should be reduced or waived off.
2. The HR Department should be more open to take advice and suggestions from
the NON-HR Personnel of the company in context with their experience of the
changing scenario of the market.
3. Monetary gains should be given to the Summer Trainees, so that they are
motivated to work more effectively & efficiently.
4. Communication within the company and with the outside world should be given
greater thrust.
5. The Personnel manager should make effort for group cohesiveness because
peoples’ commitment to their groups will be transient and changing.

Formulas for Success
• Critical to expanding the client base is generating leads and maintaining
contacts with the prospects on a regular basis. Ideally one must plan 10-
12 names and phone numbers of prospects to call on each day prior to
10.00 A.M
• Obtain 5 qualified referred leads each day & Book 3 appointments each
day.

Qualified Referrals are people who have a financial need, have the disposal
income to pay the premiums and can been seen by you on a favourable basis.

72

CONCLUSION

The size of the market has grown and the size of the insurable population in India is
indeed vast and the existing player has managed to cover about one-fourth of it. The
opportunities before the players are therefore a plenty in terms of target audience. The
falling interest rates, the collapse of many small-time financial institutions, the scope for
entering related areas like banking and pensions in a bid for synergy and the promise of
e-commerce are some of the other opportunities knocking at the doors of the insurance
majors.

There is a probability of a spurt in employment opportunities. A number of web-sites are
coming up on insurance, a few financial magazines exclusively devoted to insurance and
also a few training institutes being set up hurriedly. Many of the universities and
management institutes have already started or are contemplating new courses in
insurance. Health insurance, which is still in its infancy, is also likely to get a major
boost, ultimately leading to improvement in the quality of medical treatment and
facilities in the country.

Life insurance has today become a mainstay of any market economy since it offers
plenty of scope for garnering large sums of money for long periods of time. A well-
regulated life insurance industry which moves with the times by offering its customers
tailor-made products to satisfy their financial needs is, therefore, essential if we desire to
progress towards a worry-free future.

Economics experts and various studies conducted across the globe envisage India and
China to rule the world in the 21st century. For over a century the United States has been
the largest economy in the world but major developments have taken place in the world

74

economy since then, leading to the shift of focus from the US and the rich countries of
Europe to the two Asian giants- India and China. According to some experts, the share
of the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and that of
India to rise (from 6 per cent to 11 per cent in 2025), and hence the latter will emerge as
the third pole in the global economy after the US and China.

By 2025 the Indian economy is projected to be about 60 per cent the size of the US
economy. The transformation into a tri-polar economy will be complete by 2035, with
the Indian economy only a little smaller than the US economy but larger than that of
Western Europe. By 2035, India is likely to be a larger growth driver than the six largest
countries in the EU, though its impact will be a little over half that of the US. India,
which is now the fourth largest economy in terms of purchasing power parity, will
overtake Japan and become third major economic power within 10 years.

These are the opportunities that lie in India. Therefore insurance sector are coming to
cater the Indian market. Therefore the competition for the Indian companies has also
increased and the companies that want to stay in the competition, they have to come up
with new innovative practices in order to neutralize the competitive advantage taken by
insurance company.

My learning says that HDFC Standard Life Insurance Company, Products has
tremendous potential and strength in the insurance sector. HDFC Standard Life
Insurance Company just needs to create more global awareness through electronic and
print media. The customers’ perception about the company and for the products is really
good and the satisfaction level is very high.

However, the insurance sector companies if concentrates on the following factors will be
able to face the tough challenges:-

 Technology
 Product competition
 Distribution Network

75

 Publicity through various media
 Attractive Schemes
 Innovative Bonus Packages
 Innovative marketing

Thus if the HDFC Standard Life Insurance Company will concentrate on all these
above factors then definitely the near future of the company would be very good. As the
insurance sector market is growing at a fast pace so the company is having a great
opportunity to maximize its wealth as well as to maximize its customer base by
producing quality and defect free products.

The training at HDFC Standard Life Insurance Company taught me that classroom
study is not and end but is a mean to achieve your goals. The stint at HDFC Standard
Life Insurance Company will go on a long way in enhancing my life as student as life
is full of learning one being student throughout it.

76

BIBLIOGRAPHY

BOOKS:
AUTHOR: C.R. KOTHARI
TITLE: RESEARCH METHODOLOGY

BOOKS:
AUTHOR: KOTLER PHILIP
TITLE: MARKETING
MANAGEMENT

Websites:
www.bimaonline.com
www.hdfcinsurance.com
www.iciciprulife.com
www.maxnewyorklife.com
www.licindia.com
www.irda.com
www.rbi.org.in
www.irdaindia.org
www.banknetindia.com
www.businessworldonline.com

a) Search Engines:
www.google.com
www.yahoo.com

78

• Personal Interviews with some Chartered Accountants

• Various Insurance companies Brochures/Manuals

79

QUESTIONNAIRE
1

a) Below 30
b) 31 - 45
c) Above 45

2. Are you single or married?

a) Single
b) Married

3. What is your annual income ?

a) Below 1.5 lakhs
b) 1.5 – 5 lakhs
c) Above 5 lakhs

4. Are you aware about Financial Planning?

a) Yes
b) No

80

5. Are you Insured?

a) Yes
b) No


b) Share market
c) Insurance
d) Bonds
e) Mutual Fund
f) Real Estate

as well as returns?
(1 - Excellent, 2 - Good, 3 - Average, 4 - Poor)

a) ICICI Prudential
c) MAX New York Life


a) Only LIC
c) Both


81

b) Group Insurance
e) Bancassurance


a) Money Back
b) Endowment
c) Pension Plan
d) ULIPs


b) Tax Benefit
c) Investment
d) Risk Cover


a) LIC
b) ICICI Prudential
d) TATA AIG
e) Birla Sun Life
f) KOTAK Mahindra
g) SBI Life

82

h) AVIVA
i) MAX New York
j) METLIFE
k) ING Vyasya

83

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