SUMMER TRAINING REPORT

ON

To Do Study of H.D.F.C Standard Life Insurance Products & Competitors Products.

(Submitted in partial fulfillment of Master Degree in

Business Administration)

Submitted by- Under the Guidance of-

Nirmal Chand Mr. Amit Rathi

MBA/05/39 Co-operativwe Manager

2005.2007 H.D.F.C Isurance

N.C.COLLEGE OF ENGINEERING, ISRANA (PANIPAT)

(Kurukshetra University Kurukshetra)

 ACKNOWLEDGEMENT

A project report is never the sole product of the person whose name appears on

the cover. There are always some people who guidance proves to be a immense help in

giving its final shape so, it becomes my first duty to express my gratitude towards all of

them.

I am thankful to MR. AMIT RATHI(CO-OPERATIVE MANAGER) for giving me his

kind permission to carry out SUMMER TRAINING in his organization.

I am extremely thankful to god who is the ultimate guide providing me with

valuable, insight, courage and determination at every doorstep with deep regard always

(NIRMAL CHAND)
 CONTENTS OF THE REPORT

TOPICS PA G E N O

Executive Summary (1)

Introduction to Company

Introduction of Study Undertaken

Statement of Objective

Research Methodology

Analysis & Interpretation

Conclusion & Findings

Recommendations

Limitations

Annexure

Bibliography
 EXECUTIVE SUMMARY

First of all we have to know the meaning of research, research is increasing the knowledge or we

can say that search for new ideas. So I am talking about my research to find out the perception of

consumers towards different products in lighting, I prepared my questionnaire and record the

responses of consumers.

The objective of my project is to study To do comparative study of HDFC Standard

Life Insaurance prodoucts & competitor products. And to analyze whether the

customers are satisfied with HDFC Standard Life Insaurance

In order to study the market share towards HDFC Standard Life Insaurance in Haryana.

I use primary and secondary sources to carry out the research study.

Primary data is collected for the first time and secondary data is collected from the past that is

books and Internet.

From the findings and Analysis it is seen that most of the customers are of positive opinion.
 INTRODUCTION

THE HDFC GROUP

HDFC commenced operations as a mortgage bank; it raised large wholesale

resources (domestic & international) and lent primarily to individual households. In mid

1991, HDFC entered the retail deposit market by offering savings and investment

opportunities to households.

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since

emerged as the largest residential mortgage finance institution in the country. The

corporation has had a series of share issues raising its capital to Rs. 120 crores. The net

worth of the corporation is Rs. 28,000 crores.

SUBSIDIARY COMPANIES

HDFC Standard Life Insurance

HDFC Standard Life Insurance Company is a joint venture between Indias largest

housing finance provider, HDFC, and the Europes largest mutual life insurance company,

the Standard Life Assurance Company (U.K.).

HDFC Developers Limited

HDFC promoted a wholly owned subsidiary company; HDFC developer limited, to

undertake housing projects on a selected basis in various regions of the country. HDFC

Developers Limited has also undertaken a number of projects for the office premise of the
corporation. It is also being engaged as a consultant to a number of residential and

commercial projects.

HDFC Investments Limited

HDFC promoted a wholly owned subsidiary company, HDFC Investments limited

(HIL) to undertake investments in stocks, shares, debentures, and other securities. The

Reserve Bank of India under the category of investment Company has registered HIL as

a Non-Banking Insurance Company (NBFC). HIL was set-up with an intention of being the

investment arm of HDFC.

HDFC Realty Limited

HDFC Holding Limited

HDFC Asset Management Company Limited

HDFC Trustee Company Limited

HDFC Finance Limited

ASSOCIATE COMPANIES

HDFC has broadened its service range by entering into strategic associations with

some of the best organizations, both Indian and international, which include:

HDFC Bank Limited:- initially promoted in strategic alliance with Nat West Group,

UK. With Nat West diverting its holding, HDFC Bank has signed a MoU for strategic

business collaboration with the Chase Manhattan Bank. Chase Capital partners through

their various investment funds in India have acquired 15% stake in HDFC Bank.

The Housing Development Finance Corporation and HDFC Bank have promoted

HDFC SECURITIES LIMITED. HDFC Securities has already acquired BSE and NSE

membership.
 Infrastructure Leasing and Financial Services Limited:- Company promoted jointly

with the Unit Trust of India and Central Bank of India.

Maruti Countrywide Auto Financial Services Limited: In alliance with Maruti Udyog

Limited and GE Capital India Limited.

Colliers Jardine India Property Services Limited: Company promoted jointly with

infrastructure Leasing and Financial Services Limited and Colliers Jardine Asia Pacific

Limited.

GRUH Finance Limited

Established with support from the international Finance Corporation, the Aga Khan

Fund for Economic Development and Government of Gujarat.

SBI Home Finance Limited

Company promoted jointly with SBI Capital Markets Limited.

Canara Fin Homes Limited

Company Promoted jointly with Canara Bank and Asian Development Bank.

GIC Housing Finance Limited

Company Promoted jointly with the General Insurance Corporation.

OVERVIEW OF THE INSURANCE INDUSTRY

FIGURES IN THE INDUSTRY

The insurance Regulatory and Development bill is now the cynosure of all the

global insurance players. Numerous players, both Indian and foreign, have announced
their intention to start their insurance shops in India. IRDA, under the chairmanship of Mr.

Rangachary, opened the window for applying; licences in India on the 16 th of August.

Dabur All state the Prudential ICICI were the first of the block to apply on the very first

day. But before anyone starts to talk about the insurance sector in India, it is important to

know the figures that entice each and everybody in the sector.

FIGURES IN THE SECTOR

Table No.1 Source: Indiainfoline.com and NCAER

LIFE INSURANCE STATISTICS

Indian Population 1 bn

GDP as on 2002($ bn) 480 bn

Gross Domestic savings as a % of GDP 23%

NCAER estimate of insurable Population 240 mn

Estimated Market by 2005 650 mn

India has an enormous middle class that can afford to buy life, health, and

disability and pension plan products. The low level of penetration of life insurance in India

compared to other developed nations can be judged by a comparison of per capita life

premium.

Table No. 2: Source Various Newspapers

COUNTRY LIFE PREMIUM PER CAPITA US $ IN 1994

 Japan 3,817

UK 1,80

USA 964

India 4

Clearly, there is considerable scope to raise per capita life premium if the market is

effectively tapped.

India has traditionally been a high savings oriented country- often described as

being on par with the thrifty Japan. Insurance sector in the USA is as big in size as the

banking industry there. This gives us an idea of how important the sector is. Insurance

sector canalizes the savings of the people to long term investments. This has made the

sector the hottest one in India after It. With social security and security to the public at

large being the agenda for opening the sector, the role of the regulator becomes all the

more serious and one that would be carefully watched at every step.

INSURANCE REGULATORY DEVELOPMENT AUTHORITY

(IRDA)
 The opening up of the sector has been long standing and with the passing of the

Insurance regulatory and development Authority-IRDA bill a significant stop has been

taken.

IRDA is formed as an authority to protest the interests of shareholders of insurance

policies, to regulate promote, and ensure orderly growth of insurance industry and for

matters connected therewith or incidental thereto.

With the Insurance Regulatory and Development Act, the focus shifted to the

following:

The Insurance Regulatory and Development Authority (IRDA) should give

priority to health insurance while issuing certificates of registration.

Policyholders funds will be invested in the social sector and infrastructure. The

percentage may be specified by the IRDA and such regulations will apply to all

insurers opening in the country.

Insurers will be expected to undertake a certain percentage of business in the

rural or social sector and provide policies to persons residing in rural areas,

workers in the unorganized and informal economically basic.

In case of the insurers fail to meet the social sector obligation a fine of Rs. 2.5

mn would be imposed the first time. Subsequent failures would result in

cancellation of licenses.

PLAYERS WHICH ARE GOVERNED BY IRDA

 The table below is the list of the likely players in the Indian insurance sector. Apart

from Reliance, who has applied for both Life and Non-Life insurance license, all have

gone in with a foreign partner. The idea is that the foreign partner will bring in expertise of

global nature with products that are India specific. And the Indian partner will bring in the

distribution network and more significantly the required 74% of the equity.

Table No. 3

LIFE INSURERS

Registration
S.No. Date of Reg. Name of the Company
Number
1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
Kotak Mahindra Old Mutual Life Insurance
4 107 10.01.2001
Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited
ING Vysya Life Insurance Company Private
8 114 02.08.2001
Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Metlife India Insurance Company Pvt. Ltd.
AMP Sanmar Life Insurance Company
11 121 03.01.2002
Limited.
12 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
13 127 06.02.2004 Sahara India Insurance Company Ltd
General Insurers

Registration Date of
S.No. Name of the Company
Number Registration
Royal Sundaram Alliance Insurance
1 102 23.10.2000
Company Limited
Reliance General Insurance Company
2 103 23.10.2000
Limited.
3 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd
TATA AIG General Insurance Company
4 108 22.01.2001
Ltd.
Bajaj Allianz General Insurance Company
5 113 02.05.2001
Limited
ICICI Lombard General Insurance
6 115 03.08.2001
Company Limited.
Cholamandalam General Insurance
123 15.07.2002
7 Company Ltd.
8 124 27.08.2002 Export Credit Guarantee Corporation Ltd.
9 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.

The RBI regulations came in light of the fact that most banks are looking at their

NBFC outfits for foraying into insurance sector. For this the Central Bank had laid out a

set of five parameters that need to be met as of March 31, 2000.

A minimum net worth of Rs. 5 bn.

A minimum capital requirement of Rs. 1 bn, this is mandatory for any player in the

sector, including banks.

A minimum capital adequacy ratio of 10%.

 Entry through a joint venture.

A net profit record for last three years.

Net non-performing assets (NPAs) that are reasonable.

A good track record in the case of subsidiaries as well.

Table no 4- Source: Indiainfoline Archives. Figures are rounded off

Net Profit of
Net worth
Minimum Years (in Reasonable net
of Rs. 5 bn
Criteria Year CAR of 10% crores) NPAs (calculated)as
Figure (bn
(CAR as %) Figures (bn % of net advances)
Rs.)
Rs.)

1999-
121 11 20 6
State Bank 00

of India 1998-
104 12 10 7
99

ICICI Ltd. 1999-

80 17 12 8
00

1998- 51 12 10 8

99
 1997-
47 13 11 8
98

1999-
21 N.A. 4 N.A.
00

1998-
HDFC Ltd. 20 N.A. 3 N.A.
99

1997-
18 N.A. 3 N.A.
98

1999-
23 10 4 8
00
PNB
1998-
19 11 4 9
99

1999-
4 11 0.5 7
00

Vijaya 1998-
7 10 0.3 7
Bank 99

1997-
7 10 0.2 7
98

1999-
32 12 5 7
00

Bank of 1998-
29 13 4 8
Baroda 99

1997-
27 12 5 7
98
 1999-
25 10 2 9
Bank of 00

India 1998-
24 10 11 12
99

1999-
9 11 0.7 12
Allahabad 00

Bank 1998-
8 10 11 12
99

1999-
6 12 0.5 9
00

Vyasa 1998-
4 11 0.3 N.A.
Bank 99

1997-
5 N.A. 0.8 N.A.
98

The foreign players are essentially looking to tap their global expertise in the varied

markets and use that know how to work in the Indian scenario. Designing of products,

information systems, technical expertise, manpower planning etc is what one expects the

foreign players to have a say in.

As discussed earlier the most prominent players right now in the insurance industry

are a follows:

1) HDFC Standard life Insurance Co.

2) ICICI Prudential life Insurance Co.

3) TATA AIG
 4) Alliance Bajaj

5) Max New York Life Insurance Co.

6) LIC.

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

Founded in 1977, HDFC is today the market leader in housing finance in India and

has extended financial assistance to more than 15 lakh homes. HDFC has more than 110

offices in India presently. It also has one international office in Dubai and 3 Service

Associate in Kuwait, Qatar, and the Sultanate of Oman.

HDFCs asset base amounts to over Rs. 28000 crores. It financial strength is

reflected in highest safety ratings of FAAA and MAAA awarded by CRISIL and ICRA-two

of Indias leading credit rating agencies- respectively, for the last 6 years consequently. It

has a depositor base of over 11 Lakh customers and a deposits agents force of over

46000. Of the total deposits, 73% are sourced from individual and trust depositors. This

demonstrates the tremendous confidence that retail investors have in the company.

Being an institution that is strongly committed to the highest standards of quality

and excellence, HDFC has won several accolades in the past few years such as

Ramakrishna Bajaj National Quality Award for the year 1999.this award was instituted to

award recognition to Indian companies for business excellence and quality achievement.

HDFC is the only company so far to receive this award.

 Incorporated in 1977 as the first specialized Mortgage Company in India.

Almost 90% of initial shareholding in the hands of domestic institutions and

retail investors.

Currently 78% of shares held by foreign institutional investors.

Besides the core business of mortgages HDFC has evolved into a financial

conglomerate with holdings in:

HDFC Standard Life Insurance Company - HDFC holds 79.44%

HDFC Asset Management Company - HDFC holds 50.1%

HDFC Bank - HDFC holds 22.22%

Intelenet Global (Business Process Outsourcing) - HDFC holds 50%

HDFC Chubb General Insurance Company - HDFC holds 74%

WHAT WEVE ACHIEVED

Loan Approvals Rs. 868 billion (up to Mar 2005)

(US $ 19.73 bn)

Loan Disbursements Rs. 724 billion (up to Mar 2005)

(US $ 16.45 bn)

Housing Units financed 2.6 million

GEOGRAPHICAL SPREAD
 Regional office
Branch office

No. of Outlets

1992 26
1997 32
1998 41
1999 49
2000 67
2001 87
2002 118
2003 142
2004 173
2005 203*
* Inclusive of outlets of wholly owned distribution company

STANDARD LIFE INSURANCE COMPANY

 Founded in 1825, Standard Life has been at the forefront of the UK insurance

industry for 176years by combining sound financial judgment with integrity and reliability.

The largest Mutual life Company in Europe, it has operations in the United Kingdom,

Ireland, Spain, Germany, Austria and Canada with representatives offices in Hong Kong

and China.

One of its most recent successes was the launch of Standard life Bank on 1st

January 1998. The introduction of its innovative mortgage product in January 1999 has an

immediate impact on the UK market, accounting for 11% of all new lending with in the first

operational year. The current loans understanding amount to Rs. 43,300 crore.

Standard life has total assets of Rs. 5, 95,000 crore and new premium income last

year of Rs. 30000 crore. Its UK investment portfolio accounts for approx. 2% of all shares

listed in London Stock Exchange. It is one of the few insurance companies in the world to

receive AAA rating from two of the leading international credit rating agencies, Moodys

and Standard & Poors. The later described Standard lifes ability to meet its claim

obligations as overwhelming under a variety of economic conditions.

Standard life is rated as one of the strongest companies of the world, in financial

terms. The Companys reputation in the UK market remains unrivalled. Besides, being

voted Company of the Year for overall service, for the third consecutive year, Standard

life was recently voted Company of the Decade by independent brokers.

INCORPORATION OF HDFC STANDARD LIFE INSURANCE COMPANY

LIMITED.
 The company was incorporated on 14th August 2000 under the name of HDFC

Standard Life Insurance Company Limited. On the 23rd of October 2000, this ambition

was realized when HDFC Standard Life was the only life company to be granted a

certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while

Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group,

this is the maximum investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared

values and trust. The ambition of HDFC Standard Life is to mirror the success of the

parent companies and be the yardstick by which all other insurance company's in India is

measured.

ORGANIZATIONAL SET UP HDFC STANDARD LIFE CO.

 MANAGING
DIRECTOR

General Manager

Head Retail (Sales)

Business
Development
Manager

Sales Development
Manager

Certified Financial
Consultant
INTRODUCTI
ON OF
STUDY
UNTERTAKE
N
 COMPETITORS PROFILE

HDFC STANDARD LIFE INSURANCE CO.

Company Profile

HDFC was incorporated in 1977 with the primary objective of meeting a social

need that of promoting home ownership by providing long-term finance to households

for their housing needs. HDFC was promoted with an initial share capital of Rs. 100

million.

Standard life is Europes largest mutual life insurance company and specializes in

a wide range of other services like health care. Pension and annuities market with a

global presence. The company has Assets under management at US$ 119 billion.
PRODUCT PROFILE

HDFC Standard Life offers a range of products and invites you to choose the one

that suits you best.

PLAN BENEFITS

SAVINGS PLANS

Endowment Assurance Plan Life Insurance with Savings

Unit Linked Endowment Plan
Childrens Plan
Unit Linked Young Star Plan
Money Back Plan
Life Insurance & Savings with choice of investment
funds
Financial Security for your child
Financial security for your child with choice of
investment funds
Life Insurance with Savings

INVESTMENT PLANS
Single Premium Whole Of Life
Investment with Life Insurance
Plan
PROTECTION PLANS

Term Assurance Plan Life Insurance at an affordable price

Loan Cover Term Assurance
Life Insurance customized for home loans
Plan
RETIREMENT PLANS
Personal Pension Plan Savings for retirement

Unit Linked Pension Plan Retirement Savings with a choice of investment funds

SAVING PLANS

ENDOWMENT ASSURANCE PLAN

It is a participating (with profits) insurance plan that offers the following features:

Provides financial support to the family by way of a lump sum payment in case of

the unfortunate death of the life assured within the term of the policy.

Provides a lump sum payment to the life assured on survival up to maturity.

The lump sum mentioned is the basic sum assured plus any bonus additions.

BENEFIT

This plan is a with profits saving plan and is well suited for saving money for your

long term financial goals. This plan also helps provide for the needs of your family in your

absence by paying out a lump sum in the event of your unfortunate death during the term

of the policy.

UNIT LINKED ENDOWMENT ASSURANCE

 The unit linked endowment plan is an insurance policy that is designed to pay a

lump sum on maturity or on earlier death. The Unit Linked Endowment Plan also gives the

option of additional protection against the six common critical illnesses, as well as

additional protection if death is as the result of an accident.

Your premiums are invested in units of the investment fund of your choice, based

on the prevailing unit price. On maturity you receive the value of your units. On death (or

critical illness, if chosen) you receive the greater of the value of your units and your

selected basic sum assured.

PREMIUMS

You agree to pay a level premium regularly, either quarterly, half-yearly or annually,

throughout the term of the policy. The minimum premium amount is Rs. 10,000 each year.

To facilitate increased investment, we allow additional single premium top-ups at

any time. The minimum single premium top-up is Rs. 5,000.

Premiums can be paid by cash, cheque or demand draft.

INVESTMENT FUNDS
 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:

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

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.

The past performance of any of the funds is not necessarily an indication of future

performance.

There are no investment guarantees on the returns of unit linked funds.

None of the funds participate in the profits of HDFC Standard Life Insurance

Company Limited or any of its policyholder funds.

Can I switch my monies to any fund?

You can switch your existing investments from any endowment unit linked fund to

another endowment unit linked fund. You can also give us a premium redirection

instruction to redirect future premiums to different endowment unit linked funds.

BENEFITS

There are 4 different options available to choose from:

1. Life Option

On death within the policy term, the greater of the Sum Assured and the value of

the unit-linked fund will be paid to your nominee.

On survival to the end of the policy term the value of the unit linked fund will be

paid to you.

2. Life and Health Option

On death or earlier diagnosis of any one of six common critical illnesses within the

policy term, the greater of the Sum Assured and the value of the unit-linked fund will be

paid to your nominee.

On survival to the end of the policy term the value of the unit-linked fund will be

paid to you.

The illnesses covered under this option are cancer, coronary artery by pass graft

surgery, heart attack, kidney failure, major organ transplant (as recipient) and stroke.

3. Extra Life Option

This option pays the same benefits as the Life Option but, should death occur

within the policy term as the result of an accident, an extra benefit equal to the Sum

Assured will be paid.

4. Extra Life and Health Option

This option pays the same benefits as the Life and Health Option but, should death

occur within the policy term as the result of an accident, an extra benefit equal to the Sum

Assured will be paid.

LEVELS OF PROTECTION

Depending on your age at entry, you may choose between 3 levels of cover Low,

Medium or High. For each level the Sum Assured is based on the amount of premium you

pay each year.

Age at Levels of Cover

Entry Low Medium High

18 to 40 5 x Premium 10 x Premium 20 x Premium

41 to 50 5 x Premium 10 x Premium

Over 51 5 x Premium

The Sum Assured can not be changed during the term of the contract.

ELIGIBILITY

The age and term limits for taking out a Unit Linked Endowment Plan are: (years)

Minimum Maximum Minimum Maximum Maximum Age

Term Term Age at Entry Age at Entry at Expiry

Life 10 30 18 60 75
 Life and
10 30 18 55 65
Health

Extra Life 10 30 18 55 70

Extra Life
10 30 18 55 65
& Health

Can I alter the level of my premiums?

Regular premiums can be increased at any time. If needed, the policyholder can

reduce the regular premium levels (even to zero i.e. the policy is converted to paid up

status) provided:

3 years of regular premiums have been paid

The monetary value of the unit holding across all funds is at least Rs 15,000.

What happens if I stop paying premiums?

This product has a grace period of 15 days for the payment of each premium after

the initial premium.

If you stop paying premiums, before you have paid 3 years of annual premiums,

we will cancel you policy and return to you the value of your unitised fund, less

cancellation charges.
 If, after three years, you are unable to pay the premiums, you have the option to

make the policy paid-up, provided the policy has accumulated sufficient policy value.

Currently, this amount will be Rs. 15,000.

If the fund value of a paid-up policy falls below Rs. 15,000 we will cancel the policy

and return to you the fund value, less cancellation charges.

TAX BENEFITS

Premiums paid under this plan are eligible for tax benefits under Section 88 of the

Income Tax Act, 1961.

MONEY BACK PLAN

It is a participating (with profits) insurance plan that offers the following features:

Payment of cash lump sums, each of which is a proportion of the basic sum

assured, at 5-year intervals during the term of the policy. (Please refer to the table

given below).

On survival up to maturity, a payment equal to the basic sum assured plus any

bonus additions less the cash lump sums paid earlier is provided.

In case of the unfortunate death of the life assured within the term of the policy, the

basic sum assured plus any bonus additions is provided. This is over and above

the earlier payouts.

Schedule of Cash Lump sum (as a % of basic sum assured)

Total Policy Number of Years from policy date

Term 5 10 15 20 25
10 40%
 15 30% 30%
20 25% 25% 25%
25 20% 20% 20% 20%
30 15% 15% 15% 15% 15%

BENEFITS

This plan helps you plan for future anticipated expenses by paying periodic cash

lump sums to you at regular intervals. This plan also helps provide for the needs of your

family in your absence by paying them the basic sum assured plus any bonus additions in

the event of your unfortunate death during the term of the policy.

OPTIONAL BENEFITS

You can add the following optional benefits to customise your policy to suit your

needs:

Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen

under this optional benefit, on diagnosis of any one of the 6 common critical

illnesses(1). The sum assured is payable if you survive for 30 days after the date of

the claim. Once such a claim has been met, no further Critical Illness Benefit is

payable. However, your basic policy continues even after we pay a claim on this

benefit.

Waiver of Premium (WOP) Benefit waives the premium for you in case you

become totally disabled. The waiver is applicable during the period of total

disability.
 All optional benefits must be selected at the outset of your plan.

Cancer, coronary artery bypass graft surgery, heart attack, kidney / renal failure,

major organ transplant (as recipient) and stroke

TAX BENEFITS

Tax benefits described in Section 88, Section 80D** and Section 10 (10D) of the

Income Tax Act are applicable.

** Applicable to premiums paid for CI and WOP.

ELIGIBILITY

This plan can be taken on a single life basis or a joint life (first claim) basis. The

eligibility ages are as follows:

Basic Policy Basic Policy for optional benefits

CI ATB ADB WOP

Min. age at entry 12 18 18 18 18

Max. age at entry 60 55 60 55 50

Max. age at expiry 75 70 75 65 60

Min. term : 10 years Max. term : 30 years

PAYMENT OPTIONS
 You have the choice of paying your premium either in yearly, half-yearly or

quarterly modes, depending on your convenience.

CHILDREN'S PLAN

Childrens Plan is designed to provide a lump sum to the child at maturity. It also provides

financial security to the child in the future, even in case of the insured parents unfortunate

death during the policy term..

What are the options that are available with this plan?

You will have the choice of 3 options at the start of the policy.

On the death of the

Option insured parent during On maturity

the policy term

Future premiums
Sum assured +
Maturity Benefit Plan waived and the policy
bonuses paid.
continues till maturity.
On the survival of the

Sum assured + insured parent to the

Accelerated Benefit Plan bonuses paid and the maturity date, sum

policy stops. assured + bonuses

paid.
Sum assured paid,

future premiums Sum assured +

Double Benefit Plan
waived, and the policy bonuses paid.

continues till maturity.

TAX BENEFITS

The premiums you pay will be eligible for tax relief under Section 88 of the Income

Tax Act, 1961. The benefits received under the policy are eligible for tax relief under

Section 10(10D) of the Income Tax Act, 1961.

ELIGIBILITY

The eligibility ages for the life assured under the plan are as follows:

Minimum Age At Entry 18 years

Maximum Age At Entry 60 years
Maximum Age At Maturity 75 years

Minimum Term: 10 years Maximum Term: 25 years

PAYMENT OPTIONS

You have the choice of paying the premium either in yearly, half-yearly or quarterly

modes, depending on your convenience.

 LIFE INSURANCE CORPORATION OF INDIA

COMPANY PROFILE

In January 1956, the management of life insurance business of 245 insurance

players at that time was taken over by Govt. of India. In September 1956 the business

was nationalized and the life Insurance Corporation of India (LIC) was set up which took

over this ownership.

The life fund of LIC has grown to approximately USD 25 billion from a mere USD of

94 million in its inaugural year. Over 100 million lives are covered. The annual premium

income, which was USD 21 million in 1956, was estimated at USD 4.5 billion in the 1997-

98. Presently business investments of the LIC total over USD 23 billion.

PRODUCT PROFILE

There are about 140 plans offered by LIC, LIC being the market leader and the

only market player for over 45 years has drawn sufficient capabilities to enhance the

product suite. LIC has the widest and broadcast product kitty to match all kinds of

insurance needs. The product category extends from different structure from whole life

plan, money back 20 years, 25-year term plan, Jeevan Sanchay plan.

Endowment plan ranging from need to children plan. Plans for married couples,

increasing risk cover plan, high risk low cost endowment plan. LIC also offers various

term life cover plans like renewable and convertible term assurance, temporary term

plans for cover up to 2.5 years.

In the pension category LIC offers retirement plan with guaranteed pension and

returns to policy holders for covering risk against dying too late. All these plans have been

reinstated in the new version to match the changing needs with enhanced features and

convenient terms.
 ICICI PRUDENTIAL LIFE INSURANCE

COMPANY PROFILE

World Bank, the government of India and the Indian industry established ICICI

LTD, in 1955, to promote industrial development of India by providing project and

corporate finance to the Indian industry. Since inception, ICICI has grown from a

development bank to a financial conglomerate and has become one of the largest public

financial institutions of India.

Prudential policy was founded in 1848 and is present in 15 countries. It manages

assets of over USD 259 billion as of December 31, 1999. Prudential policy has had its

presence in Asia for the past 75 years catering to over 1 million customers across 11

Asian countries.
 ICICI Prudential Life insurance company limited was incorporated on July 20,

2000. The authorized capital of the company is Rs. 2300 million and the paid up capital is

Rs. 1500 million.

PRODUCT PROFILE

ICICI Prudential offers the wider range of product with nice plans covering need for

saving, risk and investment as well as the retirement plans. Like the endowment plan, a

money back plan, term assurance plan, single premium investment, annuity, and

retirement plan. It also offers riders add on benefits at a marginally incremental cost.

Its products can be categorized into the following:

Savings Plans

Protection Plans

ICICI Pru LifeTime

Retirement Plans

Savings Plans: Most endowment policies are a good way of saving for the future. Select

one which best suits your needs:

ICICI Pru Single Premium Bond: This policy combines savings with life cover and is an

ideal plan for a one-off investment with reasonable returns and the added benefits of

insurance protection. It is a good way to use that windfall or that huge bonus.
ICICI Pru SavenProtect: This is a traditional endowment savings plan that offers both

savings and protection. This is a fixed term policy and at the end of the term, you get

extended free insurance cover for five years and 50% of the sum assured. This is in

addition to the life cover, guaranteed additions and vested bonuses that you get during

the term period.

ICICI Pru CashBak: This is a policy is for every milestone in life. This is an endowment

savings plan that allows you to get back substantial survival benefits without having to

wait till the maturity date. A three-in-one plan, it clubs liquidity, savings and protection.

Protection Plans: We all hope to live a full lifetill a ripe old age. But what if something

unfortunate befalls us. Such an occurrence completely disrupts life for all those who are

financially dependent on us. We offer a comprehensive range of protection benefits.

ICICI Pru LifeGuard: This is a policy specially designed to provide insurance at a low

cost. It offers protection to your family, should something unfortunate befall you.

Prudential policy was founded in 1848 and is present in 15 countries. It manages

assets of over USD 259 billion as of December 31, 1999. Prudential policy has had its

presence in Asia for the past 75 years catering to over 1 million customers across 11

Asian countries.
 TATA AIG

COMPANY PROFILE

Tata AIG General Manager Company Ltd. and Tata AIG Life Insurance Company

Ltd.., (collectively Tata AIG) are joint venture companies between the Tata group, Indias

most trusted industrial house and American International Group, inc (AIG), the leading

U.S. based international insurance and financial services organization.

Both promoters have a deep and abiding interest in Indias insurance sector. Prior

to nationalization, Tatas pioneered private insurance in India when Sir Dorab Tata set up

New India Assurance in 1919. By 1973, when General insurance was nationalized the

Tata Company had a global presence with 56 overseas offices. AIG too, has always

considered the Indian insurance sector to be of significance. The AIG companies entered

India in 1945 and had offices in several Indian cities prior to nationalization.

AIG is the leading U.S. based international insurance and financial services

organization and the largest underwriter of commercial and industrial insurance in the

United States. Its member companies write a wide range of commercial, personal and life

insurance products through a variety of distribution channels in approximately 130

countries and jurisdictions throughout the world. AIGs global businesses also include

financial services and the asset management, including aircraft finance, institutional, retail

and direct investment management and retirement savings products. Today, AIGs
operations extend cross 130 countries and jurisdictions throughout the world. AIG is

ranked #8 in Forbes 2000 super 100 ranking of all US corporations. AIG is ranked #8 in

Fortune 500 ranking of top US corporations, and ranked #1 in the property and causality

business.

The Tata group is the most respected industrial conglomerate in India, with

revenues of more than US $ 8 billion. The group has long been a market leader in steel,

commercial vehicles, electrical power generation in the private sector and computer

software. In recent years it has promoted several new ventures in high growth areas of

the economy such have financial services, telecommunications, information technology,

auto components, oil field services, and process management systems. The group has

had a long association with insurance sector having been the largest insurance company

prior to the nationalization of insurance.

PRODUCT PROFILE

Tata AIG life insurance policies offer endowment products, money-back

products, and term products. Add- ons and options to these policies give you flexibility

and choice.

The ASSURE Security & Growth plans offer both security for the family and help

grow your hard earned savings. These plans help protest your loved ones in the event of

your untimely death and at the same time works to grow your hard earned money.
 You can from three different terms, 10, 20 or 30 years. You can pay the premium

annually or at other intervals depending on your convenience.

The ASSURE Golden Years plan matures when the policy holder reaches the ripe

age of 60. Regular premiums can be paid you are working. Either annually or at any other

intervals most convenient to you. This plan protects your family in the event of your

untimely demise.

Accordingly, the death benefits may be further increased by way of bonuses. The

bonuses will also increase the maturity benefit under the policy- growing your savings by

that extra mile to further reassure you and your family.

The ASSURE 21- years Money Saver Plan is a unique plan that gives you 10% of

the sum assured back every three years for the next 21 years, with the balance on the

maturity of the policy. Alternatively, you can reinvest these returns with Tata AIG at a

competitive interest rate. In the event of your death, the plan still protect your loved ones

for the sum assured in full, even after taking the money back periodically.

Tata AIG term insurance provides a measurement of stability and continuity in the

untimely death of a loved one. Our policies are specially designed keeping in mind the

comfort that the survivors will need in such circumstances.

The ASSURE Lifeline Plans offers security to your family in case of your untimely

death.
 BAJAJ ALLIANZ

COMPANY PROFILE

Bajaj Auto Ltd. founded in 1942 is Indias largest two and three wheeler

Manufacturers and Exporter producing 1.2 million units with the market capitalization of

Rs. 8000 crore. Bajaj auto has an existing network of over 375 dealers across India and a

distributor network in 60 cities.

Allianz AG is a leading Global insurance company headquartered in Munich,

Germany, established in 1890. Its Global network expand to over 73 countries across

Europe, South & Northern America, Africa and Middle East, Asia Pacific with over 700

subsidiaries and 119,000 employee. The company has asset under management of USD

1000 billion.

In September 2001, Allianz Bajaj received the license to start selling life products.

To date, 12 products have been introduced to the market. The company is actively

recruiting agents and expanding its distribution network.

PRODUCT PROFILE

ABL is offering 5 life insurance products. Save care (An Endowment Assurance

Plan). Cash Care (Money Back Plan), Lifeline Care ( A Whole Life Plan), Risk Care (Pure

Term Insurance Plan) and Term care (Term Plan with return of premiums) all these plans

are available in combination with additional benefit packages to match every individuals

needs.

Its benefit package is as follows:

Economy: Basic plans, with no additional benefits.

Protect: Basic plan along with cover against accidental risk.

Health: Basic plan along with cover against health related risks.

Total: Basic plan with cover against both accidental and health related risks.
 MAX NEW YORK LIFE

COMPANY PROFILE

Max India ltd. is a multi business corporation thats focused on the knowledge,

people and oriented businesses of life insurance, health care and information technology.

New York Life has been one of the worlds leading providers of life insurance for

over 156 years. It has assets in management with over USD 21 billion in annual

revenues. New York life as been ranked among the top 3 most admired life and health

insurance companies worldwide.

PRODUCT PROFILE

MNYL is at present offering insurance plans in broadly 3 categories, namely 20-

year Endowment Assurance Plan, A Whole Life Plan, and A5 Year Renewable and

Convertible Term Assurance Plan. All these plans can co- opt with the rider benefits

offered by the company.

The Endowment Plan is a fixed term plan for 20 year duration, which makes the

plan a convectional insurance cum saving plan.

 The Term Plan provides the coverage against death cover and no maturity benefit

is payable. It also offers a convertible and renewable option to the policy holder.

The life covered can convert the term plan to an either whole life plan without any

underwriting.

The whole life plan with maturity at the age attaining 100, or death benefits

payable. This is a low cost risk cover. The cost of life insurance spreading over the

entire life of the policyholder.

All these plans can be attached with rider benefits with some unique proposition.

The riders provide coverage against critical illness/ dread diseases, accidental death

benefit & Term rider (against natural death). The company also offers special features

look rider, terminal illness benefit option to purchase paid up value.

 COMPARATIVE ANALYSIS

Effect
Paramet Secur Tax Cost of Attache
Rate of Liquidi of
ers ity Risks Benef Managem d
return ty Inflati
Options its ent Benefits
on

ULIP mediu Depends high high 80CC low High --

Pension m on market C

Plan forces

ULIP mediu Depends high High 80, 10 low high --

Endowm m on market (10D)

ent forces

assuranc

Shares Low to Low to high Medi -- low low --

high high um to

high

MF mediu Medium high high -- low low --

m to high

SPWL high Compoun low low 8 high high --

ded

annually

+ TB +

RB
FD high 7% low -- 80L high low loan

Gold Mediu Depends high medi -- mediu medium --

m to on market um m

high

Property Low to Depends Mediu Medi -- low medium Loan

mediu on market m to um to

m high high

Bonds high 6 to 8% low -- 80L high high Capital

appreciat

ion +

Credit

rating

KVP high 8.4% High low Not on high -- Loan

compoun but interes

ded regulati t

annually ve

MIS high 8% + mediu low 80L high high --

10% m

bonus

Regular high Depends low low 88, High high CI + ADB

premium on policy 80CC

C,

80L,
 10(10

d)

Bank RD high 4 to 6% high low 80L mediu medium loan

PO RD high 7.5% mediu low 80L low low Loan

compoun m

ded

annually

PPF high 8% mediu Low 88 High low --

NSC High 8% Low low 88 high Low --

 MARKET FEEDBACK

I have noted down the responses of people on the data sheets I had maintained to

make calls to people and meet them.

These responses involved direct refusal for interest in HDFCSLIC plans to giving

an appointment. Most of the people enquired about the plans on the phone itself. After

sufficient introduction to the plans, they gave an appointment and asked me to meet

them.

People are more concerned about the LICs plans because it is in the market from

past 50 years and people think that it is the most trusted organization in insurance sector

being Govt. owned.

 STRATEGY FORMULATION

During the course of the project, I got a practical knowledge of the mindset of

people in Karnal. I learnt many things from the project. My mentors also helped me a lot

to understand the nuances of marketing. They also provided me an insight into the

mindset and psychology of the people who have to make investment. As per their

experience, they helped me by explaining the different attitudes of people regarding

investment.

I realized that there were infact some flaws in my approach to people. I also realized

that I needed some improvement on the data.

I polished my knowledge of the product by interacting with my mentors and peers.

I came to some conclusions which I think can help for better marketing of insurance

products of HDFCSLIC. These conclusions can be regarded as strategies. They are a

follows:

1) Rather than making cold calls, we should directly meet people in public places or

their homes in their leisure time. It is very essential that they have enough of time

to listen to us so that they can understand the products well. A well understood

person can only be able to go in for a plan with HDFCLIC. After making cold call to
 a particular person for 2 or 3 times, a person gives an appointment even if he is not

interested in the plans. This can be avoided if we meet people directly.

2) We can also go in for walk in interview in official establishments in the city. We can

make presentations there. This would simplify our task as we would be able to

interact with number of people at a time. Also the positive responses of people in

the group would influence others.

3) We can also organize parties for known people. They can be given a presentation

in the parties. This is a costly solution, but can be effective as people in parties are

at leisure and try understanding the plans with interest.

CONSUMERS AREA OF INVESTMENT

Savings form an important part of the economy of any nation. With the savings

invested in various options available to the people, the money acts as the driver for

growth of the country. Indian financial scene too presents a plethora of avenues to the

investors. Though certainly not the best or deepest of markets in the world, it has

reasonable options for an ordinary man to invest his savings. Let us examine several of

them:

POST OFFICE SCHEMES

Just like banks, post offices in India have a wide network. Spread across the

nation, they offer financial assistance as well as serving the basic requirements of

communication. Among all saving options, Post office schemes have been offering the

highest rates. Added to it is the fact that the investments are safe with the department
being a Government of India entity. So the two basic and most sought for features, those

of return safety and quantum of returns were being handsomely taken care of. Though

certainly not the most efficient systems in terms of service standards and liquidity, these

have still managed to attract the attention of small, retail investors. However, with the

government announcing its intention of reducing the interest rates in small savings

options, this avenue is expected to lose some of the investors. Public Provident Funds act

as options to save for the post retirement period for most people and have been

considered good option largely due to the fact that returns were higher than most other

options and also helped people gain from tax benefits under various sections. This option

too is likely to lose some of its sheen on account of reduction in the rates offered.

NATIONAL SAVINGS CERTIFICATES

What is National Savings Certificate?

National Savings Certificates (NSC) are certificates issued by Department of post,

Government of India and are available at all post office counters in the country. It is a long

term safe savings option for the investor. The scheme combines growth in money with

reductions in tax liability as per the provisions of the Income Tax Act, 1961. The duration

of a NSC scheme is 6 years.

FEATURES

NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs

10,000 for a maturity period of 6 years. There is no prescribed upper limit on investment.

Individuals, singly or jointly or on behalf of minors and trust can purchase a NSC

by applying to the Post Office through a representative or an agent.

 One person can be nominated for certificates of denomination of Rs. 100- and

more than one person can be nominated for higher denominations.

The certificates are easily transferable from one person to another through the post

office. There is a nominal fee for registering the transfer. They can also be transferred

from one post office to another.

One can take a loan against the NSC by pledging it to the RBI or a scheduled bank

or a co-operative society, a corporation or a government company, a housing finance

company approved by the National Housing Bank etc with the permission of the

concerned post master.

Though premature encashment is not possible under normal course, under sub-

rule (1) of rule 16 it is possible after the expiry of three years from the date of purchase of

certificate.

Tax benefits are available on amounts invested in NSC under section 88, and

exemption can be claimed under section 80L for interest accrued on the NSC. Interest

accrued for any year can be treated as fresh investment in NSC for that year and tax

benefits can be claimed under section 88.

RETURN

It is having a high interest rate at 8% compounded half yearly. Post maturity

interest will be paid for a maximum period of 24 months at the rate applicable to individual

savings account. A 1000 Rs denomination certificate will increase to 1601 Rs. on

completion of 6 years.
 Interest rates for the NSC Certificate of Rs 1000

YEAR RATE OF INTEREST

1 year Rs 81.60
2 year Rs 88.30
3 year Rs95.50
4 years Rs103.30
5 years Rs 111.70
6 years Rs 120.80

ADVANTAGES

Tax benefits are available on amounts invested in NSC under section 88, and

exemption can be claimed under section 80L for interest accrued on the NSC. Interest

accrued for any year can be treated as fresh investment in NSC for that year and tax

benefits can be claimed under section 88. NSCs can be transferred from one person to

another through the post office on the payment of a prescribed fee. They can also be

transferred from one post office to another. The scheme has the backing of the

Government of India so there are no risks associated with your investment.

HOW TO START
 Any individual or on behalf of minors and trust can purchase a NSC by applying to

the Post Office through a representative or an agent. Payments can be made in cash,

cheque or DD or by raising a debit in the savings account held by the purchaser in the

Post Office. The issue of certificate will be subject to the realization of the cheque, pay

order, DD. The date of the certificate will be the date of realization or encashment of the

cheque. If a certificate is lost, destroyed, stolen or mutilated, a duplicate can be issued by

the post-office on payment of the prescribed fee.

BANKS

Considered as the safest of all options, banks have been the roots of the financial

systems in India. Promoted as the means to social development, banks in India have

indeed played an important role in the rural upliftment. For an ordinary person though,

they have acted as the safest investment avenue wherein a person deposits money and

earns interest on it. The two main modes of investment in banks, savings accounts and

Fixed deposits have been effectively used by one and all. However, today the interest rate

structure in the country is headed southwards, keeping in line with global trends. With the

banks offering little above 9 percent in their fixed deposits for one year, the yields have

come down substantially in recent times. Add to this, the inflationary pressures in

economy and you have a position where the savings are not earning. The inflation is

creeping up, to almost 8 percent at times, and this means that the value of money saved

goes down instead of going up. This effectively mars any chance of gaining from the

investments in banks.

FIXED DEPOSIT
 A fixed deposit is meant for those investors who want to deposit a lump sum of

money for a fixed period; say for a minimum period of 15 days to five years and above,

thereby earning a higher rate of interest in return. Investor gets a lump sum (principal +

interest) at the maturity of the deposit.

Bank fixed deposits are one of the most common savings scheme open to an

average investor. Fixed deposits also give a higher rate of interest than a savings bank

account. The facilities vary from bank to bank. Some of the facilities offered by banks are

overdraft (loan) facility on the amount deposited, premature withdrawal before maturity

period (which involves a loss of interest) etc. Bank deposits are fairly safer because

banks are subject to control of the Reserve Bank of India.

FEATURES

Bank deposits are fairly safe because banks are subject to control of the Reserve

Bank of India (RBI) with regard to several policy and operational parameters. The banks

are free to offer varying interests in fixed deposits of different maturities. Interest is

compounded once a quarter, leading to a somewhat higher effective rate.

The minimum deposit amount varies with each bank. It can range from as low as

Rs. 100 to an unlimited amount with some banks. Deposits can be made in multiples of

Rs. 100/-.

Before opening a FD account, try to check the rates of interest for different banks

for different periods. It is advisable to keep the amount in five or ten small deposits

instead of making one big deposit. In case of any premature withdrawal of partial amount,

then only one or two deposit need be prematurely encashed. The loss sustained in

interest will, thus, be less than if one big deposit were to be encashed. Check deposit

receipts carefully to see that all particulars have been properly and accurately filled in.
The thing to consider before investing in an FD is the rate of interest and the inflation rate.

A high inflation rate can simply chip away your real returns.

RETURNS

The rate of interest for Bank Fixed Deposits varies between 4 and 11 per cent,

depending on the maturity period (duration) of the FD and the amount invested. Interest

rate also varies between each bank. A Bank FD does not provide regular interest income,

but a lump-sum amount on its maturity. Some banks have facility to pay interest every

quarter or every month, but the interest paid may be at a discounted rate in case of

monthly interest. The Interest payable on Fixed Deposit can also be transferred to

Savings Bank or Current Account of the customer. The deposit period can vary from 15,

30 or 45 days to 3, 6 months, 1 year, 1.5 years to 10 years.

Duration Interest rate (%) per annum

15-30 days 4 -7 %
30-45 days 5-8 %
46-90 days 6-8 %
91-180 days 6.5-9.5 %
181-365 days 7-9.5 %
1-1.5 years 8.5-10.25 %
1.5-2 years 8.5-10.5 %
2-3 years 9-10.5 %
3-5 years 9.5-10.5 %
5 years 9.5-11 %

ADVANTAGES

Bank deposits are the safest investment after Post office savings because all bank

deposits are insured under the Deposit Insurance & Credit Guarantee Scheme of India. It
is possible to get loans up to75- 90% of the deposit amount from banks against fixed

deposit receipts. The interest charged will be 2% more than the rate of interest earned by

the deposit. With effect from A.Y. 1998-99, investment on bank deposits, along with other

specified incomes, is exempt from income tax up to a limit of Rs.12, 000/- under Section

80L. Also, from A.Y. 1993-94, bank deposits are totally exempt from wealth tax. The 1995

Finance Bill Proposals introduced tax deduction at source (TDS) on fixed deposits on

interest incomes of Rs.5000/- and above per annum.

NUMBER OF AVAILABLE OPTIONS

Mutual funds invest according to the underlying investment objective as specified

at the time of launching a scheme. So, we have equity funds, debt funds, gilt funds and

many others that cater to the different needs of the investor. The availability of these

options makes them a good option. While equity funds can be as risky as the stock

markets themselves, debt funds offer the kind of security that is aimed for at the time of

making investments. Money market funds offer the liquidity that is desired by big investors

who wish to park surplus funds for very short-term periods. Balance Funds after to the

investors having an appetite for risk greater than the debt funds but less than the equity

funds. The only pertinent factor here is that the fund has to be selected keeping the risk

profile of the investor in mind because the products listed above have different risks

associated with them. So, while equity funds are a good bet for a long term, they may not

find favor with corporate or High Networth Individuals (HNIs) who have short-term needs.

DIVERSIFICATION

Investments are spread across a wide cross-section of industries and sectors and

so the risk is reduced. Diversification reduces the risk because all stocks dont move in
the same direction at the same time. One can achieve this diversification through a

Mutual Fund with far less money than one can on his own.

PROFESSIONAL MANAGEMENT

Mutual Funds employ the services of skilled professionals who have years of

experience to back them up. They use intensive research techniques to analyze each

investment option for the potential of returns along with their risk levels to come up with

the figures for performance that determine the suitability of any potential investment.

POTENTIAL OF RETURNS

Returns in the mutual funds are generally better than any other option in any other

avenue over a reasonable period of time. People can pick their investment horizon and

stay put in the chosen fund for the duration. Equity funds can outperform most other

investments over long periods by placing long-term calls on fundamentally good stocks.

The debt funds too will outperform other options such as banks. Though they are affected

by the interest rate risk in general, the returns generated are more as they pick securities

with different duration that have different yields and so are able to increase the overall

returns from the portfolio.

LIQUIDITY

Fixed deposits with companies or in banks are usually not withdrawn premature

because there is a penal clause attached to it. The investors can withdraw or redeem

money at the Net Asset Value related prices in the open-end schemes. In closed-end

schemes, the units can be transacted at the prevailing market price on a stock exchange.

Mutual funds also provide the facility of direct repurchase at NAV related prices. The

market prices of these schemes are dependent on the NAVs of funds and may trade at
more than NAV (known as Premium) or less than NAV (known as Discount) depending on

the expected future trend of NAV which in turn is linked to general market conditions.

Bullish market may result in schemes trading at Premium while in bearish markets the

funds usually trade at Discount. This means that the money can be withdrawn anytime,

without much reduction in yield.

OBJECTIVE
S OF THE
STUDY

OBJECTIVES OF THE STUDY

WHY THIS PROJECT WAS CHOOSEN

The main objective of my study is to To do comparative study of HDFC Standard

Life Insaurance prodoucts & competitor products . For the purpose of this I also
decided some other objectives of my study, which are as follows.

OBJECTIVES OF STUDY

More and More advertising should be used to tap the customers.

Company should do personal selling.

More awareness campaign should be undertaken so that people can relay on

the company.

Services should be improved procedure to get life insurance policy should be

made easily assessable
Research
Methodol
ogy
 Research Methodology

No project is completed without a research frame work. So I have also gone through a
systematic procedure of research Methodology.

Research Methodology is a way to systematically solve the problem. One can define
research as a scientific and systematic search for pertinent information on a specific topic.
In it the various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind him are studied.

RESEARCH METHODOLOGY PRCEDURE

1- DEFINING RESEARCH PROBLEM.

2- REVIEWING THE LITEERATURE.

3- FORMULATING HYPOTHESIS.

4- RESEARCH DESIGNING.

5- SAMPLE DESIGNING.

6- DATA COLLECTION.

7- ANALYSING DATA.

8- INTERPRETING AND REPORTING.

1- DEFINING RESEARCH PROBLEM: There are two types of research problems, that
is those which relates to state of nature and those which relate to relationship between
variables. Our research is the former one and the problem in precise way is

Recruitment of Financial consultant.

2- REVIEWING THE LITERATURE: I undertook extensive literature study from the

library of HDFC, Standard Life Insurance, journals, newspapers and previous research
findings about insurance, field activity, source of mouth reference, advertisement.
3- FORMULATION OF HYPOTHESIS: Hypothesis is a tentative assumption made in
order to draw out and test its logical and empirical consequences. Our assumptions
are:

People have at least basic knowledge of insurance.

I have assumed certain priorities as per annexure.

Tax consideration in the Market.

Saving venture.

Insurance awareness in terms of risk coverage.

4- RESEARCH DESIGN:

Decision regarding what, where, when, how much, by what means concerning an
inquiry or a research study constitute a research design. A research design is the
arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure. Infact,
research design is the conceptual structure within which the research is conducted.
The research design used for the present study is descriptive in nature. The major
purpose of descriptive study is description of the state of affairs as it exits at present.
The main characteristics of this design is that is used when researcher has no control
over the variables.

Research design is a conceptual structure within which research is conducted.

Research design can be of various types.

-Descriptive -

Detail(Project Sheet)

-Exploratory-

Profile of F.C.

-Experimental.

Body Mass Tast.

 -Analytical-

Need analysis(Past record of FC)

5- SAMPLE DESIGN: Sample is a part of population, which represent the whole

population. Various type of sample design are:

-Deliberate Sampling, it includes:

Convenience Sampling.

Judgement Sampling.

-Simple Random Sampling-

-Systematic Sampling.

Filed activity.

-Stratified Sampling.

House wife.

Student.

-Cluster Sampling.

Group meeting.

6- DATA COLLECTION:

1. Primary data: which are collected afresh and for the first time.

2. Secondary data: which someone else has already collected.

The data collected for the study is primary and secondary in nature.

I have collected data by

-Personal Interview

Accountant Associates, Clubs.

-Telephone Interview.

Questionnaires/Need Analyzers.
(E) Data collection Technique:- The study will largely use primary data, gathered
through Questionnaire prepared for the survey population and some of the data I get
from my trainer, which is considered as a secondary data.

7- ANALYSIS AND INTERPRETATION OF DATA: After doing operations like-

coding, Editing & tabulation, I analyzed the data by making various graphs, which
are depicted in the last of this project report. The findings are also mentioned along
with graphs.

(A) Type of Universe:- Sample design is to clearly define the set of objects, technically
called the universe. The universe can be finite or infinite. In finite universe the no. Of
items is certain, but in case of infinite universe the no. Of item is infinite i.e. we cannot
have any idea about the total no. Of items. In my research I use the finite universe.

(B) Sample selection, size and Technique:-

Sample selection is Rohtak, Panipat, Sonepat and Jind.

Sample size :- Number of person were covered 100.

The Sample Technique used for the study is Simple random sampling.

(C) Analytical Tools:- The data thus collected was tabulated, interpreted & analyzed
with a view to make the study meaningful.
S.W.O.T.
Analysis
 S.W.O.T-ANALYSIS

FINDING
AND
ANALYSIS
Q.1 WHAT IS YOUR OCCUPATION?

RESPONSE DATA COLLECTED % SHARE

STUDENT 40 40%
SERVICE 20 20%
BUSINESS 30 30%
HOUSEWIFE 10 10%

Inferences: - In the collected data 40% of the respondents said they were students,
the next major category belonged to business class, which contributed to about 30%
of the total respondents after that 20% were service class and remaining 10% were
housewives.
 OCCUPATION OF RESPONDENTS
(Total respondents 100)
45
40
35
30
25 DATA COLLECTED
20 % SHARE
15
10
5
0
S

E
T

ES

IF
EN

CI

W
RV

N
D

SE
SI
U

SE

BU
ST

U
O
H

Q. 2 FROM WHICH LOCALITY DO YOU BELONG?

RESPONSE DATA COLLECTED %SHARE

URBAN 30 30%
SEMI-URBAN 65 65%
RURAL 5 5%

Inferences: - In the collected data 30% of the respondents belonged to the URBAN area
and 65% of the respondents belonged to the SEMI-URBAN and remaining 5% from the
rural area.
Respondents distribution according to their locality
(Total Respondents 100)

URBAN
SEMI-URBAN
RURAL
Q. 3 DO YOU HEARD ABOUT HDFC STANDARD LIFE INSURANCE?

RESPONSE DATA COLLECTED %SHARE

YES 70 70%
NO 30 30%

Inferences: - 70% of the people know about the HDFC SLIC while 30% of the people
didnt know about the company.

AWRENESS OF RESPONDENT TOWARD HDFC SLIC

(Total Respondent 100)

100
NO
50 YES

0
DATA COLLECTED %SHARE
Q.4 ARE YOU INTERESTED TO EARN SOME ADDITIONAL EARNING?

RESPONSE DATA COLLECTED % SHARE

YES 85 85%
NO 15 15%

Inferences: - there were 85% people who were interested in earning extra income while
15% people refused due to unavailability of time or such other reasons.

RESPONDENTS WHO WANT TO EARN SOME EXTRA

INCOME
(Total Respondents 100)

YES
NO

Q.5 IF A CHANCE IS GIVEN TO YOU TO WORK WITH HDFC SLIC, WHICH ONE
WOULD YOU PREFER PART TIME /FULL TIME?
 RESPONSE DATA COLLECTED %SHARE
PART TIME WORK 65 65%
FULL TIME WORK 35 35%

Inferences:- IN the people who were asked whether you would like to work with HDFC
SLIC as a part time or full time worker. 65% were in favour of part time while 35%
contribute to full time.

NO. OF PEOPLE WHO WANT TO CONTRIBUTE THEIR TIME

TOWARD HDFC SLIC
(Total Respondents 100)

PART TIME WORK

FULL TIME WORK

Q.6 WHERE WOULD YOU LIKE TO WORK, AT HOME OR OFFICE?

 RESPONSE DATA COLLECTED %SHARE
HOME 72 72%
OFFICE 28 28%

Inferences: - 72% respondents were willing to work at home and 28% were interested
working in office.

WILLINGNESS OF PEOPLE TOWARDS

WORKPLACE
(Total Respondents 100)

HOME
OFFICE

CONCLUSION
1. In competitive world insurance sector is growing very rapidly. Now it is at the

growing stage so there is a lot of opportunity for people.

2. Availability of wide range of product according to the need of customer.

3. Team work- One for all & all for one.

4. The promotion tools used by HDFC SLIC are very effective.

5. HDFC SLIC provides better services to its customer.

6. HDFC SLIC recognized a very good brand image in the market.

7. From its beginning, HDFC SLIC is the first private Life insurance company to

declare the bonus.

8. The environment of HDFC SLIC is full of joy & the way of doing work is also very

simple and step-by-step.

 Recommendations

1) Benefits from the investment in insurance should be increased as compare to

provident fund.

2) More and More advertising should be used to tap the customers.

3) Company should do personal selling.

4) More awareness campaign should be undertaken so that people can relay on the

company.

5) Services should be improved procedure to get life insurance policy should be

made easily assessable.

6) More and more of bonus and extra benefit should be given.

7) Investment plans should be made to as suitable to individual need.

8) The people in rural areas should be taped and brought under the life insurance

policies.

9) Investment plans suitable to the female population (Female Child) should be

brought in the market with premium and additional benefit.

 10)More and more benefits should be added to children segment since they are the

most untapped segment. Secondly policy should be designed in such a way that

they cover both major as well as the minor in a single policy.

LIMITATIONS

Every survey has some sort of limitations and the survey has also some limitations:-

1. Time constraint:- Limited time available was not enough to convince the people.

2. Awareness:- People have not exact and appropriate knowledge about the life
insurance.

3. Some people feel that this work is not respectful in the society.

4. It is very hard to shift the mind of people from LIC to HDFC, because they think
that

OLD IS GOLD
5. Incorrect information:- Their might be wrong information provide in the
Questionnaire.

ANNEXURE
 QUESTIONNAIRE

Topic: To do comparative study of HDFC Standard Life Insurance Products & Competitor
products.
Dear Sir/Madam,
I am a management student conducting research on the above topic at your area. I
would be grateful if you could spare some time to answer these questions. All information
given by you will be treated as strictly confidential.

Thank you.

DEMOGRAPHY
1. Name
Address

Contact No.
2. Age
3. Nationality

(Please the appropriate one)

4. Sex: Male Female

5. Family Income per month

less than 15000 15000-25000 25000 & above

6. Marital Status:
Single Married

7. Occupation
Student Service Business Housewife

8. Educational Qualification
10th 12th Graduate Post Graduate

9. From which locality you belong:

rural urban Semi Urban
10. What infrastructure do you have?
Telephone Computer Car Two wheeler

11. Are you interested to earn some additional earning?

Yes No
12. Do you have some knowledge about Life insurance?
Yes No
13. Do you heard about HDFC Standard Life Insurance?
Yes No
14. If a chance is given to you to work with HDFC SLIC which one would you prefer?
 Part time work Full time work
15. You will work from:
Home Office

Date:
Signature:

BIBLIOGRAPHY

BUSINESS REEARCH METHODS

(WILLIAM G. ZIKMUND)

MARKETING RESEARCH

(NARESH MALHOTRA)

Insurance Plus

Insurance Watch
 www.google.com

www.hdfc.com