SUMMER TRAINING PROJECT REPORT ON COMPREHENSIVE STUDY ON CONSUMER PERCEPTION IN HDFC SLIC AND INDIAN LIFE INSURANCE SECTOR

PROJECT REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT THE AWARD FOR THE OF BACHELOR OF BUSINESS ADMINISTRATION [BBA (B&I)] TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

SUBMITTED BY

DIVYA
ENROLLMENT NO.03761101810
UNDER THE SUPERVISION OF

MS. SHIVAANI

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES (AFFILIATED To GGSIP UNIVERSITY, DELHI)

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(2012-2013)

CERTIFICATE
This is to certify that Divya, a student of BBA Guru Gobind Singh Indraprastha University, enrolled for the Batch 2010-13, with Enrolment no. 03761101810 completed her Summer Training Project report COMPREHENSIVE STUDY ON
CONSUMER PERCEPTION IN HDFC SLIC AND INDIAN LIFE INSURANCE SECTOR as part of Course Code: BBA (B&I) under the guidance of Ms. Shivaani,

(MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES (MAIMS)). It was nice to observe that he has worked efficiently and dedicatedly to complete this project in given time under the proper guidance.

Ms.Shivaani Lecturer (MAIMS)

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ACKNOWLEDGEMENT

At the outset, I would like to place on record my gratitude to all those who have been instrumentals in shaping up this project with their guidance and inspiration. I express my hearty respect and profound thanks to Ms. Swati for their valuable guidance in completing my project. I am deeply indebted to Mr. Rishikesh Patel (Channel Development manager, HDFC Standard life Insurance), whose sincere cooperation in directing and guiding me enabled the project to assume its systematic shape. I am also thankful to all the Financial Consultants who guided me on various aspects during the project. Last but not the least I must express my gratitude to my family and various friends who gave moral support for completing this project work.

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DECLARATION

I,, a student of studying at solemnly declare that the project work titled- comprehensive study of consumer perception in HDFC SLIC and Indian Life Insurance Sector, in partial fulfillment of the PGDM program.

This program is undertaken as a part of academic curriculum, according to the College rules and norms and by no commercial interest and motives.

Date:

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EXECUTIVE SUMMARY

Insurance industry is growing rapidly day-by-day. India itself has a population of 1.2billion out of which roughly 5% of the middle class people are insured. This clearly demonstrates that citizens are not insured merely because they dont know much about Insurance sector and its benefits. Generally Insurance is considered as Tax Saving device instead of other implied long term financial benefits. In order to study the environment for the above mentioned status, I did a market research classifying diverse contour of the public and giving them a Business Opportunity to join HDFC Standard Life as an advisor/agent. A marketplace analysis was done on life insurance companies. Sample questionnaire was formulated related to the Insurance Sector. The vicinity covered up in this analysis was Delhi and its suburbs. The Analysis inculcates information of public response with respect to the Insurance Sector and its upcoming growth stratum.

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INDEX
Certificate Acknowledgement Declaration Executive Summary 2 3 4 5

TOPIC
Chapter 1 Insurance in India 1.1 Introduction 1.2 Indian Insurance Industry 1.3 Insurance Business Authority 2.1 Government Regulation 2.2 Duties, Powers, Functions of IRDA 2.3 IRDA Notification Chapter 3 HDFC Standard Life Insurance 3.1 Company Profile 3.2 Vision 3.3 Core Values 3.4 Product Chapter 4 Products of HDFC Standard Life Insurance 4.1 Individual 4.2 Group product 4.3 Claim Settlement Process Chapter 5 Funds
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Page no.
8-27 9-16 17-18 19-27

Chapter 2 Insurance Regulatory & Development 28-33 29-31 32 33 34-39 35-36 36 36 36-39 40-65 41-59 59-61 61-65 66-67

Chapter 6 Methodology Chapter 7 Analysis & Data Interpretation Chapter 8 Findings Chapter 9 Suggestion and recommendations Chapter 10 Conclusion Chapter 11 Bibliography Chapter 12 Annexure

68 69-77 78-79 80 81 82 83-85

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CHAPTER-1 INSURANCE IN INDIA

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INTRODUCTION
Insurance is as old as civilization. It has been developing from the family form of insurance to mutual associations, stock exchange securities and again to state owned organizations. Yogakshema has been the oldest term of insurance used in the Rig-Veda for some kind of insurance. The concept of formal insurance originated in the 12th century in the form of protection against financial loss to the seafarers involved in foreign trade. Growing economic uncertainties caused not only by multiplicity of social, cultural, ethnic and political factors but also natural calamities necessitated invention and development of avenues capable of providing economic security to the bereaved family 8in the event of loss of bread earner. And thus began the concept of Life Insurance. With the development of social security and the welfare status of the societies, the business of life insurance assumed multidimensional. The disintegration in most of the societies, of the extended family system, and ancient social institution, which provided a natural umbrella of economic protection and emotional solace upon the death of the bread earner led to a greater acceptability of the doctrine of life insurance and the growth of life insurance industry around the globe. From a meager beginning of providing pecuniary protection on the death earner it has moved to become major vehicle in the financial planning both for security and investment purpose. The industry hardly resembles 16th or 17th century. It would have been impossible to conceive then the development that has propelled extensive changes in the product field, customer attitudes and market environment.

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BENEFITS OF LIFE INSURANCE :

Superior To Any Other Savings Plan Unlike any other savings plan, a life insurance policy provides full protection risk of death. In the event of death of a policyholders, near and dear ones. In comparisons, any other savings plan would amount to the total savings accumulated till date. If any other incidence occurs prematurely, such savings can be much lesser than the sum assured. Evidently, the potential financial loss to the family of the policyholder is cease able. Encourages and Forces Thrift A saving deposit can easily be withdrawn. The payment of life insurance premium, however, is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. Thus, a life insurance policy in effect brings about compulsory savings. Easy Settlement And Protection Against Creditors A life insurance policy is the only financial instrument the proceeds of which can be protected against the claims of a creditor of the assured by effecting a valid assignment of the policy. Administering the Legacy for Beneficiaries Speculative or unwise expense can quickly cause the proceeds to be squandered. Several policies have foreseen this possibility and provide for payments over a period of years or in a combination of installation and lump sum amount. A Ready Marketability and Suitability for Quick Borrowings A life insurance policy can, after a certain time period (generally 3 years), be surrendered for a cash value. The policy is also acceptable as a security for a commercial loan, for example a student loan, it is particularly advisable for housing loans when an acceptable policy may also cause the lending institution to give loan at lower interest rates.

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Disability Benefits Death is not the only hazard that is insured, many policies also provide disability benefits. Typically, these provide for waiver of future premiums and payment of monthly installment spread over certain time period. Accident Death Benefits Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident.

Tax Relief Under the Indian tax act, the following tax relies are available 1. 2. 30% of the premium paid can be deductible from your total incometax liability. 100% of the premium paid is deductible from your total taxable income.

When these benefits are factored in, it is found that most policies offer return that are comparable/or even better than older savings modes such as PPF, NSC etc. Moreover, the cost of insurance is very negligible.

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AN OVERVIEW OF THE INDUSTRY:

Life Insurance Market in India Many may not be aware that the life insurance industry of India is as old as it is in any other part of the world. The first Indian life insurance company was the Oriental Life Insurance Company, which was started in India in 1818 at Kolkata. A number of players (Over 250 in life and about 100 in non-life) mainly with regional focus flourished all Across the country. However, the Government of India, concerned by the unethical Standards adopted by some players against the consumers, nationalized the industry in Two phases in 1956 (life) and in 1972 (non-life). The insurance business of the country Was then brought under two public sector companies, Life Insurance Corporation of India(LIC) and General Insurance Corporation of India (GIC).

In line with the economic reforms that were ushered in India in early nineties, the Government set up a Committee on Reforms (popularly called the Malhotra Committee) In April 1993 to suggest reforms in the insurance sector. The Committee recommended Throwing open the sector to private players to usher in competition and bring more Choice to the consumer. The objective was to improve the penetration of insurance as a Percentage of GDP, which remains low in India even compared to some developing Countries in Asia. Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms. So far in the private sector.

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POTENTIAL OF INSURANCE MARKET IN INDIA By any yardstick, India, with about 200 million middle class households, presents 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. With the per capita income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for insurance is expected to grow at an attractive rate in India. An independent consulting company, The Monitor Group has estimated that the life insurance market will grow from Rs.218 billion in 1998 to Rs.1003 billion by 2008 (a compounded annual growth of 16.5%).

WINDS OF CHANGE Reforms have marked the entry of many of the global insurance majors into the Indian Market in the form of joint ventures with Indian companies. Some of the key names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC, which has responded to the competition in an admirable fashion by launching new products and Improving service standards.

The following are the key winds of change brought about by privatization.

Market Expansion: There has been an overall expansion in the market. This has been Possible due to improved awareness levels thanks to the large number of advertising campaigns launched by all the players. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns - except by LIC to an extent there was no significant attempt to tap the rural markets.

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New Product Offerings: There has been a plethora of new and innovative products offered by the new players, mainly from the stable of their international partners. Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money-back policies, which is not considered very appropriate for long-term protection and savings. However, there are still some key new products yet to be introduced - e.g. health products.

Customer Service: Not unexpectedly, this was one area that witnessed the most significant change with the entry of new players. There is an attempt to bring in international best practices in service and operational efficiency through use of latest technologies. Advice and need based selling is emerging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt, policy document, premium notice, final maturity payment, settlement of claims etc. However, there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels.

Channels of Distribution: Till two years back, the only mode of distribution of life insurance products was through Agents. While agents continue to be the predominant distribution channel, today a number of innovative alternative channels are being offered to consumers. Some of them are banc assurance, brokers, the Internet and direct marketing. Though it is too early to predict, the wide spread of bank branch network in India could lead to banc assurance emerging as a significant distribution mechanism.

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A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the year: 1818: With the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate collect 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. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850: Calcutta by the British. Some of the 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. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.
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the life insurance business. statistical information about both life and non-life insurance

1928: The Indian Insurance Companies Act enacted to enable the government to

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

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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Indian insurance industry

Life Insurers: Top 10
S.No. Registration Date of Reg. Number 1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd. Name of the Company

2 3 4

104 105 107

15.11.2000 24.11.2000 10.01.2001

Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited

5 6 7 8

109 110 111 114

31.01.2001 12.02.2001 30.03.2001 02.08.2001

Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited . ING Vysya Life Insurance Company Private Limited

9 10

116 117

03.08.2001 06.08.2001

Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company Pvt. Ltd.

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General Insurers : Top 6

Registration S.No. 1 Number 102

Date

of

Name of the Company

Registration 23.10.2000 Royal Sundaram Alliance Insurance

Company Limited 2 103 23.10.2000 Reliance Limited. 3 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd General Insurance Company

108

22.01.2001

TATA AIG General Insurance Company Ltd.

113

02.05.2001

Bajaj Allianz General Insurance Company Limited

115

03.08.2001

ICICI Lombard General Insurance Company Limited.

INSURANCE BUSINESS:
Insurance business is divided into four classes:
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1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance. Life Insurers transact life insurance business; General Insurers transact the rest. No composites are permitted as per law. LEGISLATION (as on 1.4.2000): 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. INSURANCE PRODUCTS (as on 1.4.2000) (for latest information get in touch with the current insurers website information of insurers is provided at the web page for insurers);

Life Insurance:
Popular Products: Endowment Assurance (Participating), and Money Back (Participating). More than 80% of the life insurance business is from these products.

General Insurance:
Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products (please visit website of GIC for details)

2001
New products have been launched by life insurers. These include linked-products. For details, please visit the websites of life insurers.

INFORMATION

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About the insurance industry, the following documents may be helpful: Malhotra Committee Report (The Report of the Committee on Reforms in the Insurance Sector); IRDA's First Annual Report 2001

ENTRY OF FOREIGN PLAYERS

As a few of these players are also in different areas of financial services, the revenue figures do not relate only to insurance related income. However, most of the global insurance majors wish to participate in the opening up of the industry in India. Players like ING Group, Prudential of the U.K., Standard Life, Sun Life of Canada and Zurich Financial Services have already made an entry into the asset management business in India. Further, a few such as AIG, Allianz and Zurich Financial Services have started offering risk management services to Indian corporates. The entrants into the insurance business in India can be divided into the following categories: (i) Major international insurance groups, (ii) large private groups such as the Tatas, Birlas and Reliance, who can enter the insurance industry on their own strength in terms of funds, but who require technical/ managerial support from foreign participants; the number of Indian groups belonging to this category is limited as insurance demands substantial investment in ventures with long gestation periods. Such groups may involve foreign insurance companies as they feel that this would be the best way to proceed, (iii) Indian groups/companies which are not financially very strong but would still like to enter this new field opening up. They can, however, enter the business only in joint ventures with foreign insurance majors. The foreign majors would provide technical, managerial and equity support. However, the amount of equity that would be required over the years is substantial and given the fact that insurance projects have long gestation, such groups may have difficulty in meeting fund requirements on their own at a later date; (IV) banks and financial institutions such as State Bank of India and ICICI.

GUIDELINES FOR ENTRY OF INSURANCE Commercial banks in India have a huge distribution network that cannot be matched by other financial service organizations. Hence commercial banks have been eyeing banc assurance as a logical diversification. The Reserve Bank of India (RBI) has
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come out with detailed guidelines on the entry norms of commercial banks into insurance. Basically for banks wanting to enter the insurance field, there are three options. Strong banks, subject to eligibility norms, will be permitted to set up joint ventures for undertaking insurance business with risk participation. The maximum equity contribution such a bank would hold in the joint venture would normally be 50 per cent of the paid-up capital of the insurance company. However, a higher level of equity contribution may be permitted, subject to divestment of equity within the prescribed period. Banks which are not eligible as joint venture participants can make investments up to ten per cent of the net worth of the bank or Rs. 50 crores, whichever is lower, in the insurance company for providing infrastructure and services support. Such participation shall be treated as an investment and should be without any contingent liability for the bank. Finally, any scheduled commercial bank would be permitted to undertake insurance business as agent of insurance companies on fee basis, without any risk participation. Subsidiaries of banks will also be allowed to undertake distribution of insurance products on agency basis. However, it may be added here that marketing/ selling of insurance products is different from banking products, hence the selling techniques will be different. Norms for NBFCs In the case of non-banking finance companies (NBFCs) also, the RBI has come out with detailed guidelines for diversification into the insurance area. All NBFCs registered with the RBI and satisfy the eligibility criteria will be permitted to set up a joint venture company for undertaking insurance business with risk participation. In fact there are very few NBFCs which meet the stringent norms laid down by the RBI. However, any NBFC registered with the RBI having net owned fund of Rs. 2 crores would be permitted to undertake insurance business as agent of insurance companies on fee basis, without any risk participation.

COLLABORATION OF INDIAN COMPANIES WITH FOREIGN PLAYERS

Birla Sun Life Insurance Company Limited
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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 Financial's primary insurance business, has excellent ratings with the world's top rating agencies. With assets under management as on September 30, 2000 totalling 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.

HDFC - Standard Life

HDFC Standard Life Insurance HDFC Standard Life Insurance Company is a joint venture between India's largest housing finance provider, HDFC and Europe's largest mutual life assurance company - The Standard Life Assurance Company (U. K). HDFC Standard Life Insurance Company Limited is the First Private Sector Life Insurance Company to be granted a license.

Foreign Partner: Standard Life, UK Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance industry for 175 years by combining sound financial judgment with integrity and reliability. It is the Largest Mutual Life company in Europe and has total assets of Rs. 5, 50,000 crore.
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It is one of the very few insurance companies in the world to have received 'AAA' rating from two of the leading international credit rating agencies, Moody's and Standard & Poor's. Standard Life was recently voted 'Company of the Decade' in U.K. by the Independent Brokers called IFAs.

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance is a joint venture between the ICICI Group and Prudential plc, of the UK. ICICI started off its operations in 1955 with providing finance for industrial development, and since then it has diversified into housing finance, consumer finance, mutual funds to being a Virtual Universal Bank and its latest venture Life Insurance. Foreign Partner: Established in 1848, Prudential plc. of U.K. has grown to be the largest life insurance and mutual fund company in U.K. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest life insurance company in the United Kingdom (Source : S&P's UK Life Financial Digest, 1998). ICICI and Prudential came together in 1993 to provide mutual fund products in India and today are the largest private sector mutual fund company in India. Their latest venture ICICI Prudential Life plans to take care of the insurance needs at various stages of life.

OM Kotak Mahindra Life Insurance

Established in 1985 as Kotak Capital Management

73 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 on 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. Royal Sundaram Alliance Insurance Co. Ltd
Royal Sundaram marks the coming together of Sundaram Finance, one of Indias most respected and trusted finance companies, and Royal and SunAlliance, one of the largest insurance groups in the world. Royal Sundaram, aims to bring the customer innovative products, developed and delivered on par with international standards. This vision is built on the foundation of expertise and superior service laid by the parent companies, well known as they are of creating benchmarks in customer loyalty and satisfaction.

Sundaram Finance Founded in 1954, Sundaram Finance is one of Indias leading finance companies. Quality in lending, transparency in transactions, caring for the customer and commitment to be the best, have made Sundaram Finance one of the most respected finance companies in India. From being a leader in automobile financing, Sundaram Finance has expanded its range of financial services and products to encompass deposits, leasing, mutual funds and housing finance.

Tata AIG General Insurance Company The Tata AIG joint venture is a tie up between the established Tata Group
73 and American International Group Inc.The Tata Group is one of the largest

and most respected industrial houses in the country, while AIG is a leading US based insurance and financial services company with a presence in over 130 countries and jurisdictions around the world.

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 policy holders, New York Life is a leading provider of insurance in a host of countries worldwide.

Metropolitan Life
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MetLife India proudly carries a 135 year old legacy of helping build financial freedom for everyone. Metropolitan Life Insurance Company ("MetLife"), a subsidiary of MetLife, Inc. (NYSE: MET), is a leading provider of insurance and other financial services to individual and institutional customers. The MetLife Companies serve approximately 12 million individuals in the U.S. and companies and institutions with 33 million employees and members, including 88 of the Fortune 100 companies. MetLife also has, through its subsidiaries and affiliates, international insurance operations in 12 countries. For more information about MetLife, please visit the company's web site at www.metlife.com.

The Joint Venture MetLife India Insurance Company Private Limited ("MetLife India") is the Indian affiliate of Metropolitan Life Insurance Company ("MetLife"), the number one life insurer in the U.S, based on approximately US$ 2.4 trillion in life insurance in-force as of December 31, 2002. MetLife India was incorporated in April 2001 as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife India benefits from its affiliated company's 135-year old expertise and track record of establishing successful operations in emerging markets, in addition to the unique strengths of its Indian promoters. MetLife India offers a range of innovative products and aims to build financial freedom for everyone. MetLife India is headquartered in Bangalore and has offices in 9 cities and an additional 1,000 outreach points through its distribution channel partners. For more information about MetLife India, please visit the company's web site at www.metlifeindia.com.

ING Vysya Life

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ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in September 2001, and in a short span of 18 months has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor force. It also distributes products in close cooperation with its sister company ING Vysya Bank through Bancassurance. Currently, it has over 3000 advisors working from 22 locations across the country and over 300 employees. ING Vysya Life Insurance Company is headquartered at Bangalore and has established a strong presence in the cities of Delhi, Mumbai, Kolkata, Hyderabad and Chennai. In addition ING Vysya Life operates in Vizag, Vijayawada, Mangalore, Mysore, Pune, Nagpur, Chandigarh, Ludhiana and Jaipur.

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Chapter 2

Insurance Regulatory & Development Authority (IRDA)

GOVERNMENT REGULATION INSURANCE REGULATORY DEVELOPMENT ACT (IRDA): 73

On the recommendation of the Malhotra Committee Indian Parliament passed Insurance Regulatory Development Act. (IRDA) in the year 1999. Government of India has set up on interim Insurance Regulatory Authority (IRA) for proper monitoring and control of the insurance industry. The IRA is headed by a chairman who also controller of insurance and Chairman of IBC. IRDA, for the time being prohibits 100% foreign equity in insurance. It requires the Indian promoters to invest either wholly in an insurance venture or team up with a foreign insurer with a cap of 26% of equity for a foreign partner. The Indian promoter is permitted to divest only after 10 years to the Indian public, through a public offering of shares, at which tune the equity structure will provide for equal participation between the Indian and foreign partner with a share of 26% each in the share capital. IRA is a sole authority responsible for awarding of licenses. There is no restriction on the number of licenses and no composite license for life & non life business. Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority .The Authority is a ten member authority consists of: A chairman 5 whole-time members 4 part-time members

IRDA proposals for new license are: New players should commence business within 15-18 months. Trafficking of licenses not to be permitted and shares are not Transferable without approval.

REPORT 2000: (General Insurance - Reinsurance) Regulations, 2000

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In exercise of the powers conferred by Sections 114A of the Insurance Act, 1938(4 of 1938), the Authority in consultation with the Insurance Advisory Committee hereby makes the following regulations, namely:

PRELIMINARY 1. Short title and commencement

These regulations may be called the Insurance Regulatory and Development Authority (Reinsurance) Regulations, 2000 and are issued in pursuance of Section 114 of the Act. They shall come into force from the date of its publication in the Official Gazette. These regulations apply to all general insurers transacting direct insurance business.

The General Insurance Company The business of general insurance is the monopoly of General Insurance Corporation of India (GIC), owned by the Government of India. This entity is a single organization with four subsidiaries. GIC was incorporated as a holding company in 1992 under the General Insurance Act, 1972. The insurance business is subject to regulations under the Insurance Act. 1938, and General Insurance Act, 1972. Being a fully owned subsidiary of GOI, the paid-up capital of the GIC is fully subscribed by the govt. and GIC, in turn owns fully, the paid-up capital of its four subsidiaries. Before nationalization in November, 1972, a number of Indian and many foreign companies did general insurance business in India and this business was linked with their branches abroad. In addition, this product was also offered by LIC, some mutual companies and cooperative societies In fact, on the eve of nationalisation, 68 Indian (including LIC)and 45 non-Indian entities carried out insurance business in India. Nationalization saw the business of all National Insurance Co. Ltd. New India Assurance Co. Ltd. Oriental Fire and General Insurance Co. Ltd. United India Insurance Co. Ltd.

These organizations absorbed by the General Insurance Company (GIC) with its four subsidiaries viz. These subsidiaries carry out the entire general insurance business in 73

the country and cede 20% of it to GIC through the obligatory reinsurance premium on a quota share basis. GIC's direct business is only in the form of aviation insurance. The general insurance business is mainly of three types: Marine, Fire and miscellaneous

Miscellaneous. As of now, fire insurance contributes the largest share in the business, although its share has been going down. Miscellaneous business has been the growth area with health insurance assuming increasing importance in terms of potential. Marine insurance is relatively less important in India. Acknowledging the trend of growth in miscellaneous business, GIC has recently come out with a host of new policies/plans/schemes. Personal Accident Policy for Visitors in Bank Premises, Mediclaim, Householders' Comprehensive Insurance Policy, Professional Indemnity Insurance, insurance against liability and contingency for members of stock exchanges and joint stock companies, Rejection Insurance on marine products, Nuclear Insurance Pool for insurance of nuclear power plants and other nuclear related risks, hut insurance, and Personal Accident Insurance Social Security Scheme are examples of such policies. GIC has also become active in mutual funds and housing as GIC Mutual Fund, GIC Grih Vitta Ltd. Floating of Loss Prevention Association of India Ltd., and the National Insurance Academy are some of the other long term customer friendly activities.

Duties, Powers and Functions of IRDA 73

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA. Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2)

Without prejudice to the generality of the provisions contained in sub-section1, Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

the powers and functions of the Authority shall include, -

Protection of the interests of the policy holders in matters concerning Assigning of policy, nomination by policy holders, insurable interest, Settlement of insurance claim, surrender value of policy and other Terms and conditions of contracts of insurance; Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; Specifying the code of conduct for surveyors and loss assessors; Promoting efficiency in the conduct of insurance business; Promoting and regulating professional organizations connected with the insurance and re-insurance business; Levying fees and other charges for carrying out the purposes of this Act; Calling for information from, undertaking inspection of, conducting Enquiries and investigations including audit of the insurers,

IRDA NOTIFICATION 73

INSURANCE 2002

REGULATORY

AND

DEVELOPMENT

AUTHORITY

(LICENSING OF INSURANCE AGENTS) (AMENDMENT) REGULATIONS, F.No. IRDA/Reg./ 10/2002.-- In exercise of the powers conferred by section 42 and section 114A of the Insurance Act, 1938 (4 of 1938), the Authority, in consultation with the Insurance Advisory Committee, hereby makes the following regulations to amend the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000, namely:-

1 (1) These regulations may be called the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) (Amendment) Regulations, 2002. They shall come into force on the date of their publication in the Official Gazette. In the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000, after sub-regulation 3(2), the following sub-regulations 3(3) and 3(4) shall be added:(3) The designated person shall grant or renew the licence within a period of 3 months get so. from the date of application. delayed within 60 days of the receipt of the application, inform the (4) The designated person shall, if the consideration of the application is likely to applicant the reasons for such a delay, and the likely time it would take to do

In the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000 after regulation 11, the following regulation shall be added:-

12.

From the date of coming into force of the Insurance Regulatory and

Development Authority (Licensing of Corporate Agents) Regulations, 2002, the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000 or any part thereof applying to corporate agents shall cease to have any effect, except as respects things done or omitted to be done there under.

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Chapter 3 HDFC Standard Life Insurance

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HDFC Standard Life: Company Profile

Welcome to HDFCSLIC, Indias most respected private life insurance company! A company that has already established itself as a company with a difference in the last 4 years. Lets look at the milestones in the journey.

Partnership discussions with Standard Life commenced in January 1995. It resulted into the signing of joint venture agreement in October 1995, the agreement was later renewed in October 1998. With government clearing the decks, a project team was established in Mumbai in January 2000. Company got Certificate of incorporation on 14th August 2000. HDFCSL became the first private sector life insurance company when certificate of registration was granted on 23rd October 2000. The initial shareholdings were HDFC 81.4% and Standard Life 18.6%.

Since then, its the journey of excellence. All of us are contributing towards building up a great company that the world will admire. Its a journey of creating the world-class company. We have already made a mark. Lets take a look the highlights of the performance so far:

We have insured over 350000 lives and have already underwritten a Sum Assured of 15000 crores. We are the first private life insurance company to declare the bonus and last years bonus declaration was 4th in the row. It makes us the only private company to have declared bonuses sfor 4 consecutive years. Winner of Outlook Money award for 2 years.
73 Company with largest distribution network among the private life insurers.

Our claims experience has been best so far across the industry. Business World.

Recently voted as Indias most respected private insurance company by

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

Core values:
Integrity Innovation Customer centric People care Team work

Insurance Products
Today there are many insurance products available in the market. Each company has its set of products that it offers to the customers. This makes it difficult to keep track of all the products all the time. A better way to understand them is by way of classification. All insurance products can be classified in 4 basic categories.

Protection

Investment

Pension

Savings

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This classification is based on the needs of the customers. Accordingly each of these categories has an end need to be satisfied and all the products coming under that category aim to fulfill that need e.g. Products coming under Investment category aim to provide long term real growth over the period. Thus understanding these categories will not only help us to understand various products but also help us to position our products strongly in a competitive market. Let us take a look at the distinctive features of each category.

Protection type of products: A typical protection type of product aims at protecting income-earning capacity of the customers on happening of uncertain events mentioned above during the term of product. These are the pure risk products having no savings element. Naturally, these products dont have any maturity benefits. High-risk cover at low costs is the unique feature of this type that makes this category most attractive for the prospects who want high insurance cover without spending much for it. Usually offered for a definite term, mainly the Term Assurances come under this type. Various riders offered by different companies also a part of protection category. The claim is paid only if the stipulated event happens otherwise there are no maturity values at the end of the term. Youll also find variations when some companies offer to refund all the premiums paid but these products still come under this category.

Investment type of products: In investment type of products, the focus is on maximizing returns for the customer over a period time. In a way, it is opposite to Protection type where the focus is maximizing the risk cover. Here the risk cover is very low. The objective is to put maximum in investments. The underlying principle is to commit money for a certain period of time and get the benefits of real long-term growth. The products are usually single premium policies where the entire premium is collected in advance. Surrenders are discouraged and there is a commitment for certain minimum no of years. In death during the term, value of the investments is returned.

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Pension products: This is another very popular type of product. Along with the risk of an untimely death or disability, we also have a risk of living too long outliving our source of income. In other words, one needs to ensure that he gets a decent income even after his retirement and continues to get it as long as he lives! This is where we have pension products addressing the need for a comfortable retirement. One can opt for an immediate pension or for pension at a future date (also called as deferred pension). There is a range of options that one can have when selecting a pension plan. There is a great amount of flexibility when it comes to selecting a pension product. The important point to be noted is that Pensions is a part of ones present income that he reserves for future consumption. Every year that income is accumulated and invested. The lump sum accumulation then is used for purchasing pension on the vesting date.

Savings type products: People like to save. Our saving rate has been well above 20% of our GDP for last few years. They save for events like childrens marriage, education etc. Savings types of products aim to strike a good balance between risk cover as well as returns. It acts as a protection on savings. Sum assured is usually the targeted savings that one looks for. He gets that amount at the end of the term along with bonuses if it is a participating policy. On the protection side if any unfortunate event happens during the term, the sum assured (in other words the targeted savings) is still paid. So it encourages a person to save for an event at the same time ensures that his savings are protected. This is the unique advantage of savings through life insurance that no other financial product offers. We find very popular products like Endowment Assurances; Money Back plans in this category.

As stated earlier all the products come under these 4 broad categories. To understand a product, it is essential to find out the category of that product based on its features. Needless to say that it will not be possible to compare one category product to another. Each category is unique and caters to particular needs of the customer. The best approach is to find out what customer needs and then suggest a solution accordingly. Our products are discussed in the following pages within the broad framework of PIPS categories.
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Table Showcasing Financial Results: Apr-Mar 2005-06 Parameters (Rs. Cr.) Total received premium 668.40 i. New Business 486.15 ii. Renewal 182.25 Effective Premium Income (Total) Group Business Premium (EPI) 49.40 135.15 436.08 Apr-Mar 2006-07 (Rs. Cr.) 1532.21 1028.94 503.27 887.30 % Growth 129.23 111.65 176.14 103.47 173.58

P I
Personal Pension Plan Endowment Assurance and Money back Plan

P S

HDFC Standard Life continues to have one of the widest reaches amongst new insurance companies. The Companys geographical presence has also increased and covers 169 offices across the country.

Term Assurance and Loan Cover

Single Premium Whole of Life Insuran

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Chapter- 4

Products of HDFC Standard Life Insurance

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At HDFC Standard Life, we offer 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. For individuals, we 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. For organizations we 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.

INDIVIDUALS
We at HDFC Standard Life realize 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 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. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.

Investment Plans

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Our 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 Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus

Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Childrens Plan, Unit Linked Youngstar, Unit Linked Youngster Plus . Individual products can be listed as follows:-

1-Protection Plans =Term Assurance Plan =Loan Cover Term Assurance Plan 2-Investment Plans =Single Premium Whole Of Life plan =Personal Pension Plan =Unit Linked Pension =Unit Linked Pension Plus 3-Savings Plans =Endowment Assurance Plan =Unit Linked Endowment =Unit Linked Endowment Plus =Money Back Plan =Childrens Plan 73

=Unit Linked Youngstar =Unit Linked Youngstar Plus . Details of these products are as under1-Protection Plans Term Assurance Plan :"You have always ensured that your loved ones keep living a respectable life with their heads held high. But life can be uncertain. As a prudent family man, you need to secure your family's future and protect your pride and your family's self respect. You need to have a plan to take care of your family if something unfortunate were to happen to you. With our Protection Plans, you can protect your family from uncertainties in life such as your unfortunate death or critical illness. And ensure that your family lives a life of self-respect and dignity even in your absence. Protection Plans give you:

An ideal way to secure the financial future of your loved ones High cover at a very nominal cost plus an option of adding optional benefits to cover for other eventualities A choice of two plans depending on your requirements HDFC Term Assurance Plan : A pure risk cover plan, which gives you protection against the uncertainties of life HDFC Loan Cover Term Assurance Plan : An ideal way to cover your home loan or any other loan liabilities Choice of premium payment options-regular premium or a single one-time premium Choice of taking the plan on a single life basis or a joint life (first claim) basis.

Highlights 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 73

Loan Cover Term Assurance Plan "You have always ensured that your loved ones keep living a respectable life with their heads held high. But life can be uncertain. As a prudent family man, you need to secure your family's future and protect your pride and your family's self respect. You need to have a plan to take care of your family if something unfortunate were to happen to you. With our Protection Plans, you can protect your family from uncertainties in life such as your unfortunate death or critical illness. And ensure that your family lives a life of self-respect and dignity even in your absence. Our Protection Plans give you: An ideal way to secure the financial future of your loved ones High cover at a very nominal cost plus an option of adding optional benefits to cover for other eventualities A choice of two plans depending on your requirements HDFC Term Assurance Plan : A pure risk cover plan, which gives you protection against the uncertainties of life HDFC Loan Cover Term Assurance Plan : An ideal way to cover your home loan or any other loan liabilities Choice of premium payment options-regular premium or a single one-time premium Choice of taking the plan on a single life basis or a joint life (first claim) basis Highlights Unique protection plan that helps you to safeguard your family by securing your loan liability Different types of loans can be covered under this Optional add on rider to take care of loan liability in case of specified critical illnesses Decreasing sum assured to take care of reducing liability Single premium or limited term premium options to choose from Option of joint life protection

2-Investment Plans

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Single Premium Whole of Life plan Money is like manure. You have to spread it around or it smells. -J. Paul Getty The well-informed rightly said and proves how important investments are in todays date and age. The question that we all fear is What about the risks attached? GOOD NEWS for all the people who are anxious the same way! HDFC Standard Life Insurance brings to you a safe investment plan that would take care of your savings and nurture your earnings. Highlights

HDFC Single Premium Whole Of Life Insurance Plan is a tailor-made plan well suited to meet your long-term investment needs. This participating plan offers you the following benefits: Whole of life plan aimed at providing long-term real growth of your money Single premium investment plan In case of your unfortunate demise during the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as at the date of surrender

Personal Pension Plan Today, you are busy climbing the ladder of success and realizing your dreams.
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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? We understand your need to build a secure future for yourself. 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 you 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. Dont compromise on your self-respect, ever. Go ahead, hold your head high and enjoy life with the HDFC Personal Pension Plan. 3 EASY STEPS TO YOUR OWN PLAN Step 1 Step 2 Step 3 Choose your retirement age Estimate the post retirement income you require. Work out the premium payable with your Financial Consultant.

Unit Linked Pension Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the
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same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC Unit Linked Pension is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. Stride into your golden years of retirement with dignity and pride. The HDFC Unit Linked Pension gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments 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. You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds, 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 the retirement years.Use HDFC Standard Lifes excellent investment options to maximize your savings & secure your golden years. Dont compromise on self-respect, ever. Go ahead, hold your head high and enjoy life with the HDFC Unit-Linked Pension. All Unit Linked Life insurance plans are different from traditional insurance plans and are subject to different risk factors. HDFC Standard Life is the name of our Insurance Company and HDFC Unit Linked Pension is the name of this plan. The name of our company and the name of our plan do not, in any way, indicate the quality of the plan, its future prospects or returns.

3 EASY STEPS TO YOUR OWN PLAN Step 1 Choose your retirement age. Step 2 Choose the premium you wish to invest, based on your retirement needs. Step 3 Choose the investment fund or funds you desire. Unit Linked Pension Plus
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Lead a life of respect and dignity. Even after retirement.

Today, you are busy climbing the ladder of success and realizing your 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? The HDFC Unit Linked Pension Plus is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. Stride into your golden years of retirement with dignity and pride. The HDFC Unit Linked Pension Plus gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Regular Loyalty Units to boost your fund value every year 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. You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds, 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 the retirement years.

Use HDFC Standard Lifes excellent investment options to maximize your savings & secure your golden years. Dont compromise on self-respect, ever. Go ahead, hold your head high and enjoy life with the HDFC Unit-Linked Pension Plus. All Unit Linked Life insurance plans are different from traditional insurance plans and are subject to different risk factors. HDFC Standard Life is the name of our Insurance Company and HDFC Unit Linked Pension Plus is the name of this plan. The name of our company and the name of our plan do not, in any way, indicate the quality of the plan, its future prospects or returns.
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3 EASY STEPS TO YOUR OWN PLAN Step 1 Choose your retirement age. Step 2 Choose the premium you wish to invest, based on your retirement needs. Step 3 Choose the investment fund or funds you desire.

3-Savings Plans
Endowment Assurance Plan

Secure Your Familys Financial Independence. 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 long term. 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 you: 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.

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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.

3 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the amount of targeted savings and policy term using our Step 2 Step 3 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.

Unit Linked Endowment

Invest in financial security and self-respect for you and your family. 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. With HDFC Unit Linked Endowment, 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 HDFC Unit Linked Endowment Plan gives you: An outstanding investment opportunity by providing a choice of thoroughly 73 researched and selected investments

Valuable protection to your family in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds. In case of your unfortunate demise during the policy term, we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family. Use HDFC Standard Lifes excellent investment options to maximize your savings & secure you and your familys future. We will provide financial security for your family in your absence.

4 EASY STEPS TO YOUR OWN PLAN Step 1 Step 2 Step 3 Step 4 Choose the premium you wish to invest. Choose the amount of protection (Sum Assured) you desire. Choose the additional plan benefits you desire. Choose the investment fund or funds you desire.

Unit Linked Endowment Plus

Invest in financial security and self-respect for you and your family. 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. With HDFC Unit Linked Endowment Plus, 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.
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The HDFC Unit Linked Endowment Plus gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Regular Loyalty Units to boost your fund value every year Valuable protection to your family in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds.

In case of your unfortunate demise during the policy term, we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family. Use HDFC Standard Lifes excellent investment options to maximize your savings & secure you and your familys future. We will provide financial security for your family in your absence.

4 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the premium you wish to invest. Step 2 Choose the amount of protection (Sum Assured) you desire. Step 3 Choose the additional plan benefits you desire. Step 4 Choose the investment fund or funds you desire. Money Back Plan

Secure your financial independence. Live life on your own terms. 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.
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The HDFC Money Back Plan is a With Profit Plan that gives you:

LONG-TERM GOALS SHORT TERM GOALS Provide adequate cover Buying a car for Life, Critical Illness or disability. Saving for big-ticket Saving for your marriage assets like your house. Saving for your Vacation abroad childrens education Having a regular system for savings 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 shortterm 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
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earlier payouts

Key Benefits Total Policy Survival Benefit Term 5 Yrs. 10 Yrs. 60% 10 Bonuses 40% 15 30% 30% Bonuses 25% 20 25% 25% 25% Bonuses 20% 25 20% 20% 20% 20% Bonuses 25% 30 15% 15% 15% 15% 15% Bonuses + Attaching + Attaching + Attaching + 15 Yrs. 20 Yrs. 25 Yrs. 30 Yrs.

Death Benefit Within Policy Term 100% Sum Assured + attaching bonuses (Over and above the + earlier Attaching payouts).

40% Attaching -

3 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the amount of targeted savings and policy term using our Step 2 Step 3 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 73

Financial Consultant.

Childrens Plan

Give your child the perfect start in life. As a parent, your priority is your childs future and being able to meet your childs 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 youll 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 Childrens Plan. So that your child is able to lead a life of respect and dignity with a secured financial future. The HDFC Children's Plan gives you: Invaluable financial support to your child Helps you customize an ideal plan for your child Provides you multiple options for multiple benefits The HDFC Childrens Plan is designed to secure your childs 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. 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 (See Bonuses for more details).

3 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the amount of targeted savings and policy term using our Step 2 Step 3 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.
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Unit Linked Youngster Invest in your childs dreams, and secure your self-respect. As a parent, your priority is your childrens 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 our HDFC Unit Linked Young Star 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 gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Valuable protection to your child in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover
Access to your accumulated fund before maturity

This means we will continue to make your savings on your behalf, in your absence. The fund will be available for your familys use until the original Maturity Date. Use HDFC Standard Lifes excellent investment options to maximize your savings & maximize your childs achievements. We will provide financial security for your child All Unit Linked Life insurance plans are different from traditional insurance plans and are subject to different risk factors. HDFC Standard Life is the name of our Insurance Company and HDFC Unit Linked Young Star is the name of this plan. The name of our company and the name of our plan do not, in any way, indicate the quality of the plan, its future prospects or returns.

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4 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the premium you wish to invest. Step 2 Choose the amount of protection (Sum Assured) you desire. Step 3 Choose the additional plan benefits you desire. Step 4 Choose the investment fund or funds you desire. Unit Linked Youngster Plus. Invest in your childs dreams, and secure your self-respect. As a parent, your priority is your childrens 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 our HDFC Unit Linked Young Star Plus 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 Plus gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Regular Loyalty Units to boost your fund value every year Valuable protection to your child in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover
Access to your accumulated fund before maturity

This means we will continue to make your savings on your behalf, in your absence. The fund will be available for your familys use until the original Maturity Date. Use HDFC Standard Lifes excellent investment options to maximize your savings & maximize your childs achievements. We will provide financial security for your child.

All Unit Linked Life insurance plans are different from traditional insurance plans and are subject to different risk factors. 73

HDFC Standard Life is the name of our Insurance Company and HDFC Unit Linked Young Star Plus is the name of this plan. The name of our company and the name of our plan do not, in any way, indicate the quality of the plan, its future prospects or returns. 4 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the premium you wish to invest. Step 2 Choose the amount of protection (Sum Assured) you desire. Step 3 Choose the additional plan benefits you desire. Step 4 Choose the investment fund or funds you desire.

GROUP PRODUCTS
One-stop shop for employee-benefit solutions 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. We 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. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company
Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes

List of Group / Organisations product

Group Term Insurance Group Variable Term Insurance Gratuity Superannuation or Leave Encashment

Group Term Insurance Whatever the business Its the people who make it a success. Everybody requires some type of life insurance, especially when73 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:

The HDFC 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) The plan covers death due to any cause; accidental or natural, and hence is more comprehensive than Group Personal Accident Insurance. Several multinational corporations, large Indian companies, foreign banks and software companies have already chosen the HDFC Group Term Insurance, an innovative product from HDFC Standard Life Insurance, to protect their employees.

Optional Rider Benefits Accidental Death Benefit Total Permanent Disability Total Permanent and Partial Disability Benefit Critical Illness Benefit Terminal Illness Benefit 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 customers of one or more of the third partys specific products in order that in the
73 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

CLAIM SETTLEMENT PROCESS

Claim Settlements-The settlement of a claim arises due to Death of the Policyholder or due to Maturity of the Policy. Death Claim

In respect of a death claim an intimation regarding death of a policyholder from a relative / nominee / or assignee is to be received. The facts required to be submitted are: 1. Date of death, 2. Reason and Place of Death, 3. Full details of policies held by the Life assured should also be submitted.

Death claims are categorized as Non-Early Death claims and Early Claims. The procedure for processing these claims is different. Non-early Death Claim: Non-early Death Claims refer to death of the Life assured occurring after 3 years from the date of commencement of policy or Date of last revival / reinstatement If the policy is in force till death by regular payment of premiums, full sum assured is payable along with bonus (if it is a with profit policy). The following are the requirements for the settlement of the death claim:

Policy Document Death Certificate from the appropriate authority Legal evidence of Title, if the claimant is not an assignee / nominee Abridged claim Form (3783/A) Discharge Form in 3801, duly signed 73

Assignment / Reassignment deed, if any Age proof, if age is not already admitted

Once these documents are received and if they are found in order, claim is settled and payment is made to the person entitled to. Early Claims: Early Claims refer to the death of Life assured occurring within 3 years from commencement of policy. The following forms are to be submitted duly completed:

Claim Form B: Statement from the medical attendants who last treated the deceased Life assured. Claim form B1: certificate of treatment issued by the hospital authorities where the deceased was treated last. Claim form E - certificate by the employer if the deceased was an employee. Claim form C - certificate of burial/cremation signed by a person who attended the funeral of the deceased. Where death takes place due to accident, the death has to be reported to the police and a FIR (First Information Report), police inquest report, and postmortem report (if conducted only) are to be submitted.

Wherever death takes place within 2 years from Date of commencement an enquiry is conducted to determine the genuineness of claim.

On the basis of these, the decisions to settle accidental benefits are taken. Maturity: If the life insured survives to the full term, then basic sum assured is payable. This payment by the insurer to the insured on the date of maturity is called maturity payment. In majority of the plans, full sum assured becomes payable along with Bonus as a maturity payment, unless survivals benefits are paid earlier as in a money back policy.
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At least 2 months before maturity date, information is sent to the life assured with a blank discharge form for signature & completion by him. It is to be returned to the office along with:

Original Policy document Age proof if age not already submitted Assignment /reassignment, if any.

Postdated cheques are submitted to the Life Insured on receipt of the above mentioned requirements. Certain Relaxations in Settlements of the claims: Legally no claim is acceptable in respect of a lapsed policy or death of the Life assured occurring within 3 years from the date of commencement of the policy.

However, some concessions are available and payment of claims are made

If the Life assured had paid at least 3 years' premiums and thereafter if premiums have not been paid, the nominees get proportionate paid up value. In the event of the death of the Life assured within 3 years and the policy is under the lapsed position, nothing is payable.

Other concessions are: If minimum 2 years premiums are paid and if death of Life assured occurs : 1. Within 3 months from the Date of first unpaid premium. Full sum assured along with bonus is payable subject to recovery of the premium already fallen due and the premium that falls during the policy anniversary.
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2. Between 3 to 6 months from fully unpaid premium.Only 50% of basic sum assured is payable. No bonus is paid and no arrears of premium are received. 3. 6 months to 1 year from fully unpaid premium. Only notional paid up value is given. Loans on Policies

Policyholders are eligible to take loans on their policies subject to certain rules. The policyholder has to apply for a loan in a prescribed form and submit the Policy Bond along with the form duly completed. The loan amount is calculated depending on the Surrender Value (SV) that the policy would have acquired, and approximately 85% of the Surrender Value is given as loan.

Rate of interested charged on loans taken on insurance policies varies from company to company and from time to time. A policyholder can repay the loan amount either in part or in full, any time during the term of the Policy. For LIC, the minimum repayment should be Rs. 50 and thereafter in multiples of Rs. 10.

If the loan amount is not repaid during the term of the Policy or early claim, the amount of loan plus interest, if any, will be deducted from the claim money payable and the balance amount will be paid to the claimant. In case of LIC , if the interest is not paid regularly every half year, then the interest is calculated on compound interest basis.

If the premiums are not paid regularly, that is, if the policy is not kept in force, there is a possibility that the loan amount along with accrued interest exceeds the surrender value. At that stage, foreclosure action is taken on the policy.

Generally, plans for Children or special plans like Jeevan Griha and Deferred Annuity/ Pension Plans as well as Money Back Plans etc. are not eligible for loans. Nomination : Nomination is the process of identifying a person to receive the policy money in the event of the death of the Policyholder.

Nomination can be done at the inception of the Policy by providing details of nominee in the proposal form. However, if the nomination is not given at the beginning, the policyholder can give it at a later date.
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This nomination has to be effected by giving notice in a prescribed form to the insurer and getting it endorsed on Policy Bond. Change of Nomination can be done by the Policyholder any time during the term of the Policy and any number of times. For this, the policyholder has to give a notice in a prescribed form to the insurer and get it endorsed at the back of the Policy. Further, Nomination can be removed any time by the Policyholder without giving prior notice to the Nominee.

Nomination can be done only by a policyholder, who is a major, and on a policy on his own life. Under Nomination, the Nominee gets only the right to receive the policy money in the event of the death of the Policyholder. Nomination does not pass on the property in the Policy. If Nominee dies when the Policyholder is still surviving then the nomination would be ineffective. Nomination has no effect if the Policyholder is surviving. If Nominee dies after the death of the policyholder but before receiving policy money, then also Nomination becomes ineffective and only the Legal Heirs of the Policyholder can claim money.

In the case of children policies, nomination is not done until the child becomes a major. Nomination is governed by Section39 of Insurance Act 1938

Chapter-5 Funds
Which investment funds can I invest in? The policy is fully unitised with a range of funds to match your needs and approach to risk. (By risk we mean the likely volatility in the value of units in the fund.) Each investment fund is composed of units. All the units in a fund are identical. You can choose from the following funds:
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Liquid fund The Liquid fund invests 100% in bank deposits and high quality short-term money market instruments. The fund is designed to be cash secure and has a very low level of risk; however unit prices may occasionally go down due to the use of short-term money market instruments. Secure Managed The Secure Managed fund invests 100% in Government Securities and Bonds issued by companies or other bodies with a high credit standing, however a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. This fund has a low level of risk but unit prices may still go up or down. Defensive Managed 15% to 30% of the Defensive Managed fund will be invested in high quality Indian equities. The remainder will be invested in Government Securities and Bonds issued by companies or other bodies with a high credit standing. In addition, a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. The fund has a moderate level of risk with the opportunity to earn higher returns in the long term from some equity investment. Unit prices may go up or down.

Balanced Managed 30% to 60% of the Balanced Managed fund will be invested in high quality Indian equities. The remainder will be invested in Government Securities and Bonds issued by companies or other bodies with a high credit standing. In addition a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in the long term from the higher proportion it invests in equities. Unit prices may go up or down. Growth fund
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The Growth fund invests 100% in high quality Indian equities. In addition a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in the long term from the investment in equities. Unit prices may go up or down.

Chapter-6 Research Methodology

RESEARCH OBJECTIVE: To study the Insurance Industry and understand consumer perception with regard to the Insurance Sector and its upcoming growth stratum with reference to HDFC SLIC

SAMPLE DESIGN:

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The study is conducted upon the Sample survey is conducted in Delhi and its suburbs with the help of Simple random sampling method.

SAMPLE SIZE:

100 People

DATA COLLECTION SOURCES:

a) PRIMARY SOURCES- Sample survey, Personal Interviews, Management meetings, Face to face communication with lawyers, Chartered Accountants and Property Dealers.

b) SECONDARY SOURCES- Internet archives, Official journals, magazines, Insurance literature, Web portals. DATA ANALYSIS TOOLS: Graphical representation Statistical Data Pie Charts Histograms

Chapter-7 Analysis And Data Interpretation

After gathering the data, an in-depth analysis was done by data interpretation process. Then project report was compiled and formulated for the final assessment. LIMITATIONS
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Survey is restricted to Delhi and its suburbs only. The study is limited to Lawyers, Chartered Accountants and Property dealers and home makers only.

The study was undertaken on a small account due to paucity of time and resources.

DATA INTERPRETATION

AGEGROUP
28 28% 40 40%

32 32%

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Below 28

28 - 35

Above 35

Highest number of Respondents were from Age group below 28, mostly were BPO executives 43%

40 35 30 25 20 15 10 5 0 Below 28

MARIT S A AL T TUS
24

12

10

28 -35

Above 35

Single

Married

Total number of single respondents 54 Total number of married respondents 46

INCOMED TRIB IS UTION

20 15 10 5 0 Below 1.5 lacs 1.5 - 3 lacs 15 10 8 5 5 3 5 6 12 10 20

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3 - 5 lacs

1 Above 5 lacs

Below 28

28- 35

Above 35

 Respondents reluctant in providing actual/real figures

Highest, 33 respondents in income bracket 1.5 3 lacs, which comprises mainly of age group below 28 years. Minimum, 12 respondents in income bracket of above 5 lacs, 6 of which are in age group of above 35 years.

INVES TMENT AVINGP TTERN /S A 15

15 10 5 0 Upto 0.25- 0.50-1 Above 0.25 lac 0.50 lac lac 1lac Below 28 28- 35 Above 35 11 10 7 4 9 10 9 7 55 8

Respondents reluctant in providing actual figures, 3 of them didnt provided any figure at all Some of them said they dont remember while other were not certain about the figures

Out of 24 respondents who earn above 3 lacs, 18 of them invest I lac or above

Questionnaire Analysis
Where person prefer to invest most? After taking all the Analysis (sample size 100)

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12 10 8 6 4 2 0 B elow 28 B etween Above 35 28-35 Property as an investment option is most lucrative choice. However it is important to mention that majority of respondents are in age group of below 28 who dont have their own real estate property and intend to buy one. Mutual funds follow because of recent popularity and high returns. Banks and shares are least preferred options because of low returns and high risk respectively

Banks S hares Ins urance Bonds ecurities &S Mutual F und Property

Insurance is 3rd most preferred choice for investment

Are you aware of Life Insurance Policies and its benefits? After taking all the Analysis (sample size 100)

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30 25 20 15 10 5 0 Below 28 B etween 28- Above 35 35 Y es No

According to analysis, below 28 age group respondents are more aware about life insurance as compared to between 28-35 or above 35 respondents. Because young generation have maximum knowledge about market.

Are You Insured? After taking all the Analysis (sample size 100)
3 0 2 5 2 0 1 5 1 0 5 0 Below28 Betw een A bove 3 5 28 -35 Y es No

According to analysis, above 35 age group respondents are more insured as compared to other age group. 30 respondents are insured of above 35 years age.

PURPOSE FOR BUYING INSURANCE Analysis for total Sample (Sample size 65) 73

10 9 8 7 6 5 4 3 2 1 0
Be 28 tw ee n 28 -3 5 Ab ov e 35 Be lo w

R kC is over Inves ent tm Tax Purpos e Old Ag Provis e ion

Risk cover remains the most important purpose for buying insurance followed by option as investment

ULIPs are responsible for increasing popularity of insurance as an investment

tool.

Which Pvt. Insurance Co. you rate as the best in the insurance sector? Analysis for total Sample (Sample size 22)

5 4 3 2 1 0 Below 28 Between 28-35 Ab ove 35 IC I P d tial IC ru en L IC HDFCS d L tan ard ife Max New Y L ork ife Oth In rer er su

According to analysis, below 28 age group respondents are more prefer HDFC SLIC as compared to other insurance company because young generation is more prefer services benefits as compared to other benefits ,HDFC SLIC service benefits are very much good as compare to other .

73 Which distribution channel you prefer?

Analysis for total Sample (Sample size 12)

3 2 .5 2 1 .5 1 0 .5 0 B elow2 B 8 etween Above3 5 2 -3 8 5 T Ag ied ency/F ncia ina l Advisors B nka a ssura e nc D t Ma eting irec rk

According to analysis, between 28-35 age group more prefer Tied Agency /Financial

Advisors as compared to other channel because it is more comfortable for the this age group due to less knowledge about insurance services. Bank assurance is emerging as a popular option for buying life Insurance

Do you prefer Rider benefits or not? Analysis for total Sample (Sample size 65)

1 4 1 2 1 0 8 6 4 2 0 B elow2 8 B etween2 -3 8 5 Above 3 5 Yes No

According to analysis, below 28 age group respondents more prefer rider benefits because they have more knowledge about rider benefits due to involved high risk in their life.

73 Did you have any other insurance policy apart of life insurance?

Analysis for total Sample (Sample size 65)

20 15 10 5 0 Y es No

Below28

Betw een 28-35

A bove 35

According to analysis, below 28 age group respondents more prefer different -different policies to secure their life, because they need a highly secure life in all sectors.

What type of other insurance you prefer? Analysis for total Sample (Sample size 65)

7 6 5 4 3 2 1 0 Below 28 Between 28-35 Ab ove 35 Marin Insu ce e ran Fire In ran su ce Health In ran su ce Motor In ran su ce

According to analysis, below 28 age group respondents are more prefer motor insurance as compare to other insurance because this age group respondents having more risk in motor Vehicle. Above 35 age respondents are more prefer health insurance as compare as compare to other other insurance because this age group respondents having more health problems.
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Are you satisfied with the services of the HDFC STANDARD Life Insurance Company? Analysis for total Sample (Sample size 12)

2 1.5 1 0.5 0 Ex cellent Very Good Good P oor Below28 Betw een28- A bove35 35

According to analysis, below 28 age group respondents are more satisfied of HDFC SLIC service because it give high services as compared to other companies in same amount of premium. & HDFC SLIC fulfills all the need of the respondents.

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Chapter -8 Findings
1. Property as an investment option is most lucrative choice. However it is important to mention that majority of respondents are in age group of below 28 who dont have their own real estate property and intend to buy one.
2.

Mutual funds follow because of recent popularity and high returns. Insurance is 3rd most preferred choice for investment. Banks and shares are least preferred options because of low returns and high risk respectively

3.

According to analysis, below 28 age group respondents are more aware generation have maximum knowledge about market.

about life

insurance as compared to between 28-35 or above 35 respondents. Because young

4.

Risk cover remains the most important purpose for buying insurance followed by option as investment ULIPs are responsible for increasing popularity of insurance as an investment tool.

5.

6.

According to analysis, below 28 age group respondents are more prefer HDFC SLIC as compared to other insurance company because young generation is more prefer services benefits as compared to other benefits ,HDFC SLIC service benefits are very much good as compare to other .

7.

According to analysis, between 28-35 age group more prefer Tied Agency /Financial Advisors as compared to other channel because it is more comfortable for the this age group due to less knowledge about insurance services.

8. 9.

Bank assurance is emerging as a popular option for buying life Insurance According to analysis, below 28 age group respondents more prefer rider benefits because they have more knowledge about rider benefits due to involved high risk in their life.

10.

According to analysis, below 28 age group respondents more prefer different -different policies to secure their life, because they need a highly secure life in all sectors.

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11.

According to analysis, below 28 age group respondents are more satisfied of HDFC SLIC service because it give high services as compared to other companies in same amount of premium. & HDFC SLIC fulfills all the need of the respondents.

12.

According to analysis, below 28 age group respondents are more prefer motor insurance as compare to other insurance because this age group respondents having more risk in motor Vehicle.

13.

Above 35 age respondents are more prefer health insurance as compare as compare to other insurance because this age group respondents having more health problems.

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Chapter-9 Suggestions and Recommendations

Marketing Support: - More marketing support is required to create awareness in the market about the policies of the company as done by the close competitors. It was observed that people are really very conscious about the advertisement run by the company, and it can affect the sales of the company. While appointing agents this problem was faced as they questioned about the less marketing support by the company. Good Attractive Brochures: -Good attractive Brochures are required to have a good impact on the customers because once the policy is communicated by the agent to the customer the brochure remains the key representative of the company. Hence agents requires good more attractive brochures. More Number of Policies: - It was observed that if a company has more number of policies designed to cater the specific need of people then it will have a different impact on people. HDFC Standard Life has a lot of options available to cater the needs of different segments but if they can provide the policies under the specific name then it would be very beneficial in sales promotion. Company also needs to concentrate on the competitors to have some good policies to beat the close competitors. Service Satisfaction: - Service satisfaction is very important in the service industry and HDFC as a group has a good name in rendering quality services but due to some loopholes in some branches the services gets affected and hence have wrong impact on customers mind about the whole group hence service has to be given the utmost important to create goodwill in the market. Continuous up gradation: - Financial Consultants wants a continuous up gradation about the policies of the company. They should be continuously upgraded as HDFC Standard life does and this point should be highlighted while offering the agency.

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Chapter-10 Conclusion 1. Today marketing must be understand not in the old sense of making a sale
telling and selling-but in the new sense of satisfying customer needs. While selling life insurance one does not sell any tangible product .Thats why it becomes very essential to understand customer needs, which will help to distribute and promote the product effectively and it will be easy to sell the products. 2. Life Insurance is all about selling life, for which one should be very realistic and practical because its a matter of a persons life. Selling of insurance policies is not an easy job it is all about convincing people, winning their confidence and assuring them for a safe future. 3. HDFC Standard life Insurance is most respected private life insurance company. In very short time it has won the confidence of people because of its unique features like good services and promising future in insurance sector. While working on this project I came to know facts about insurance business, that there is a cutthroat competition and every company is trying its best to sell the products. Hence it is required to strengthen the selling chain so as to compete in the market, as a part of my project I have tried to strengthen the chain by employing few people for the company with a desired profile. I have discussed various issues in the project, which should be taken care of while recruiting the financial consultants for the company. Lastly I would like to conclude by saying quoting the following quote, which signifies the importance of Life insurance in ones, Life. Iron is strong but fire melts it, Man is strong but death is stronger, So survive death through Life Insurance

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Chapter-11 Bibliography

The data has been collected from the following sources SEARCH ENGINES WWW.GOOGLE.COM Life Insurance revised addition, Insurance Institute of India WEB SITES

www.bimaonline.com WWW.HDFCINSURANCE.COM www.hdfclife.com/sites/.../corporate_governance_policy_revised.pdf www.hdfclife.com/sites/hsfcsl/resources/.../annualreport2011-12.pdf

Various books/Brochure

Vijayakumar Arumugam; Indian insurance sector in 21st century 2009 Kumar Dharmendra, Singh Rahul; India insurance report series-I , 2005 Palande P. S. , Shah R. S. , Lunawat M. L.; Insurance in India: changing policies and emerging opportunities - 2004

Product Manual Data from the Company

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Chapter -12 Annexure

SAMPLE QUESTIONNAIRE (GENERAL PUBLIC) Name: Address: Age: ________________________________________ ________________________________________ ________________________________________

Contact No: ________________________________________

1. Where do you prefer to invest most? Banks Mutual fund Property Shares Insurance Bonds/Securities

2. Are you aware of Life Insurance Policies and its benefits? Yes 3. Are you insured? Yes 4. No No

If Yes, which is the primary purpose for buying insurance most? Risk cover Tax Purpose best in the insurance sector? ICICI Prudential Max New York Life LIC Other Insurer 73 HDFC Standard Life Investment Old age Pension

5. If you invest in the insurance sector, which Pvt. Insurance Co. you rate as the

6. If HDFC Standard Life Insurance, then which distribution channel you prefer? And why? Bank assurance Direct Marketing Tied Agency/ Financial Advisors 7. Do you prefer Rider benefits or not? Yes No

8. Did you have any other insurance policy apart of life insurance? Yes 9. What type of other insurance you prefer? Marine Insurance Fire Insurance No

Health Insurance

Motor Insurance

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10. Are you satisfied with the services of the HDFC STANDARD Life Company? Excellent Very Good Good

Insurance

poor

11. Any suggestions? --------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Signture)

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