aprojectreportoncustomersattitudetowardshdfcstandardlifeinsurance-121028053410-phpapp02

7/27/2019 aprojectreportoncustomersattitudetowardshdfcstandardlifeinsurance-121028053410-phpapp02

1/93

Customers Attitude towards HDFC Standard Life Insurance

INDEX

S. N. CONTENTS PAGE NO.

1 Executive Summary 1

2 Introduction to Topic 4

3 Introduction 10

4 Company Profile 32

5 Research Design 57

6 Data Analysis 60

7 Findings 81

8 Suggestions 83

9 Conclusion 85

10 Bibliography 87

Babasabpatilfreepptmba.com Page 1


2/93


11 Annexure 89

EXECUTIVE SUMMARY



3/93


EXECUTIVE SUMMARY

Now a day, the insurance sector is playing a vital role in the portfolio of finance

sector. So insurance industry is much concentrating over analyzing

customers attitude, which is very essential for the growth of the

company, to take competitive advantage in the market.

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

Statement of the Problem: The study has been undertaken to know the Customers

attitude towards HDFC Standard Life Insurance

Objectives of Study:

To study the customer awareness for HDFC Standard Life.

To understand the customers attitude towards HDFC Standard Life brand.

To know the customers attitude towards the products.

To know the customers attitude towards the service provided by the company.

To examine the consumers buying behavior.

To know the factors which influenced the customers to purchase policy.

.Data Source:

Secondary: Secondary data consists of readily available information on various

web-sites, journals, insurance books & company database.

Primary: Through survey method by using questionnaire

Sampling method: Sample size: 100 samples

Sample unit: Existing customers of HDFC Standard Life Insurance



4/93


Sample area: Belgaum city

Limitations of the study:

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

Sample size restricted to 100 only

Benefits to the Organization:

This project will help the organization to know the customers attitude towards

the products of the company. This will help the organization to provide better services

to its clients.

Findings:

35% of policy holders are more concentrated on Unit linked plans, it is due to

the reason that the returns on these policies are more compared to the traditional

policies.

The major competitors are LIC and ICICI Prudential.

79% of the respondents would like to invest up to 20% of their annual income in

life insurance and keep the substantial part of the income for their livelihood.

Suggestions:

Service should focus on enhancing the customer experience and maximizing

customer convenience. This calls for effective CRM system, which eventually would

create sustainable competitive advantage and build long lasting relationship.

Conclusion:

Family welfare is the main factor, which investors think while investing in any life

insurance company. But other factors such as returns, security, and tax benefit are also

carrying almost same preference.



5/93


INTRODUCTION TO THE TOPIC

Consumer behavior



6/93


Consumer behavior is the study of how people buy, what they buy, when they buy and

why they buy. It blends elements from psychology, sociology, sociopsychology,

anthropology and economics. It attempts to understand the buyer decision

processes/buyer decision making process, both individually and in groups. It studies

characteristics of individual consumers such as demographics, psychographics, and

behavioral variables in an attempt to understand people's wants. It also tries to assess

influences on the consumer from groups such as family, friends, reference groups, and

society in general.

Attitude

Attitude is a hypothetical construct that represents an individual's like or dislike

for an item. Attitudes are positive, negative or neutral views of an "attitude object": i.e. a

person, behavior or event. People can also be "ambivalent" towards a target, meaning that

they simultaneously possess a positive and a negative bias towards the attitude in

question.

Attitudes are composed from various forms of judgments. Attitudes develop on the ABC

model (affect, behavioral change and cognition). The affective response is a

physiological response that expresses an individual's preference for an entity. The

behavioral intention is a verbal indication of the intention of an individual. The cognitive

response is a cognitive evaluation of the entity to form an attitude. Most attitudes in

individuals are a result of observational learning from their environment.



7/93


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

Ability . He or she may be unable to do so. Although junior high school student

likes pick-up trucks and would like to buy one, she may lack a drivers license.

Competing demands for resources . Although the above student would like to buy

a pickup truck on her sixteenth birthday, she would rather have a computer, and

has money for only one of the two.

Social influence. A student thinks that smoking is really cool, but since his

friends think its disgusting, he does not smoke.

Measurement problems . Measuring attitudes is difficult. In many situations,

consumers do not consciously set out to enumerate how positively or negatively

they feel about mopeds, and when a market researcher asks them about their

beliefs about mopeds, how important these beliefs are, and their evaluation of the

performance of mopeds with respect to these beliefs, consumers often do not give

very reliable answers. Thus, the consumers may act consistently with their true

attitudes, which were never uncovered because an erroneous measurement was

made.

Changing behavior: People like to believe that their behavior is rational; thus, once

they use our products, chances are that they will continue unless someone is able to get

them to switch. One way to get people to switch to our brand is to use temporary price

discounts and coupons; however, when consumers buy a product on deal, they may

justify the purchase based on that deal (i.e., the low price) and may then switch to other

brands on deal later. A better way to get people to switch to our brand is to at least

temporarily obtain better shelf space so that the product is more convenient. Consumers

are less likely to use this availability as a rationale for their purchase and may continue to buy the product even when the product is less conveniently located. (Notice, by the way,

that this represents a case of shaping).



8/93


Changing beliefs : Although attempting to change beliefs is the obvious way to attempt

attitude change, particularly when consumers hold unfavorable or inaccurate ones, this is

often difficult to achieve because consumers tend to resist. Several approaches to belief

change exist:

Change currently held beliefs: It is generally very difficult to attempt to

change beliefs that people hold, particularly those that are strongly held, even

if they are inaccurate . For example, the petroleum industry advertised for a

long time that its profits were lower than were commonly believed, and

provided extensive factual evidence in its advertising to support this reality.

Consumers were suspicious and rejected this information, however.

Change the importance of beliefs: Although the sugar manufacturers wouldundoubtedly like to decrease the importance of healthy teeth, it is usually not

feasible to make beliefs less important--consumers are likely to reason, why,

then, would you bother bringing them up in the first place? However, it may

be possible to strengthen beliefs that favor us--e.g., a vitamin supplement

manufacturer may advertise that it is extremely important for women to

replace iron lost through menstruation. Most consumers already agree with

this, but the belief can be made stronger.

Add beliefs : Consumers are less likely to resist the addition of beliefs so long

as they do not conflict with existing beliefs . Thus, the beef industry has added

beliefs that beef (1) is convenient and (2) can be used to make a number of

creative dishes. Vitamin manufacturers attempt to add the belief that stress

causes vitamin depletion, which sounds quite plausible to most people.

Change ideal: It usually difficult, and very risky, to attempt to change ideals,

and only few firms succeed. For example, Hard Candy may have attempted to

change the ideal away from traditional beauty toward more unique self

expression.

Attitude Change



9/93


Changing the Function that the Product Serves

Associate the Product with a Famous Personality or an Established Organization

Changing Attitudes by Presenting the Product in a New Light

Change the Beliefs of the Consumer Regarding the Product

Try to Change the Perception of the Consumer

Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A

firm needs to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the

firms success.

The marketing concept stresses that a firm should create a Marketing Mix that

satisfies customers, therefore need to analyze the what, where, when and how

consumers buy.

Marketers can better predict how consumers will respond to marketing

strategies.

If a marketer can identify consumer buyer behavior, he or she will be in a better position

to target products and services at them. Buyer behavior is focused upon the needs of

individuals, groups and organizations.

It is important to understand the relevance of human needs to buyer behavior (remember,

marketing is about satisfying needs).

Let's look at human motivations as introduced by Abraham Maslow by his hierarchy of

needs: The hierarchy is triangular. This is because as you move up it, fewer and fewer

people satisfy higher level needs. We begin at the bottom level.



10/93


Physiological needs such as food, air, water, heat, and the basic necessities of survival

need to be satisfied. At the level of safety, man has a place to live that protects him from

the elements and predators. At the third level we meet our social and belongingness needs

i.e. we marry, or join groups of friends, etc.

The final two levels are esteem and self-actualization. Fewer people satisfy the higher

level needs. Esteem means that you achieve something that makes you recognized and

gives personal satisfaction, for example writing a book. Self-actualization is achieved by

few. Here a person is one of a small number to actually do something. For example, Neil

Armstrong self-actualized as the first person to reach the Moon.



11/93


INTRODUCTION

INTRODUCTION TO INSURANCE

The business of insurance is related to the protection of the economic values of the assets.

Every asset has a value the asset would have been created through the efforts of the

owner. The asset is valuable to the owner because he expects to get some benefit from it.

Insurance is a mechanism that helps to reduce the effect of such adverse situation.



12/93


Purpose and Need of Insurance:Assets are insured because they are likely to be destroyed through accidental occurrences

such possible occurrences are called perils. Fire floods breakdowns, lightning,earthquakes etc, are perils. If such perils can cause damage to the asset, the asset is

exposed to that risk.

The risk only means that there is a possibility of loss or damage. The damage may or may

not happen. Insurance is done against the contingency that it may happen. There has to be

an uncertainty about the risk. Insurance is relevant only if there are uncertainties. In the

case of a human being, death is certain, but the time of death is uncertain. In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril

can sometimes be avoided, through better safety and damage control management.

Insurance only tries to reduce the impact of the risk on the owner of the asset and those

who depend on that asset.

It only compensates the losses and that too, not fully. Only economic consequences

can be insured. If the loss is not financial, insurance may not be possible.



13/93


14/93


Life insurance, originally conceived to protect a man's family when his death left them

without income, has developed into a variety of policy plans.

Life insurance or life assurance is a contract between the policy owner and the insurer,

where the insurer agrees to pay a sum of money upon the occurrence of the insured

individual's or individuals' death or other event, such as terminal illness or critical illness.

In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a

premium at regular intervals or in lump sums. There may be designs in some countries

where bills and death expenses plus catering for after funeral expenses should be

included in Policy Premium. In the United States, the predominant form simply specifies

a lump sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the insurer and the

policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or

Beneficiaries) if an insured event occurs which is covered by the policy. To be a life

policy the insured event must be based upon life (or lives) of the people named in the

policy.

Life policies are legal contracts and the terms of the contract describe the limitations of

the insured events. Specific exclusions are often written into the contract to limit theliability of the insurer; for example claims relating to suicide, fraud, war, riot and civil

commotion.

Life based contracts tend to fall into two major categories:

Protection - designed to provide a benefit in the event of specified event,

typically a lump sum payment. A common form of this design is term insurance.

Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are

whole life, universal life and variable life policies.

Meaning of Fire Insurance Business

http://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurance


15/93


Fire insurance usually includes damage from lightning; other insurance against the

elements includes hail, tornado, flood, and drought.

Meaning of Marine Insurance Business

Marine insurance protects shipping companies against the loss of a ship or its cargo, as

well as many other items, and so-called inland marine insurance covers a vast miscellany

of items, including tourist baggage, express and parcel-post packages, truck cargoes,

goods in transit, and even bridges and tunnels.

Meaning of Miscellaneous Insurance Business

Special casualty forms are issued to cover the hazards of sudden explosions

from equipment such as steam boilers, compressors, electric motors,

flywheels, air tanks, furnaces, and engines. Boiler and machinery insurance has

several distinctive features. A substantial portion of the premium collected is

used for inspection services rather than loss protection.

The business of insurance started with marine business. Traders, who used to gather in

the Lloyds Coffee house in London, agreed to share the losses to their goods while being

carried by ships. The losses used to occur because of pirates who robbed on the high seas

or because of bad weather spoiling the goods or sinking the ship. The first insurance

policy was issued in 1583 in England. In India, insurance began in 1870.

The business of insurance is the protection of economic values of assets. Every asset is

expected to last for a certain period of time during which it will perform. Insurance is a

mechanism that helps to reduce the effect of such adverse situation. Insurance is relevant

only if there are uncertainties.

Life Insurers transact life insurance business; the rest is transacted by General Insurers.

No composites are permitted as per law.



16/93


The business of Insurance essentially means defraying risks attached to any activity over

time (including life) and sharing the risks between various entities, both persons and

organizations.

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

benefits:

1. Protection to the investors

2. Accumulate savings

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

INSURANCE COMPANIES (IC) receives, without much default, a steady cash stream

of premium or contributions to pension plans. Various actuary studies and models enable

them to predict, relatively accurately, their expected cash outflows. Liabilities of ICs

being long-term or contingent in nature, liquidity is excellent and their investments are

also long-term in nature. Since they offer more than the return on savings in the shape of

life-cover to the investors, the rate of return guaranteed in their insurance policies is

relatively low. Consequently, the need to seek high rates of returns on their investments is

also low.

The risk-return trade off is heavily tilted in favor of risk. As a combined result of all this,

investments of insurance companies have been largely in bonds floated by GOI,

PSUs.,state governments, local bodies, corporate bodies and mortgages of long term

nature. The last place where Insurance companies are expected to be over-active is

bourses.

Lately ICs have ventured into pension schemes and mutual funds also. However, life

insurance constitutes the major share of insurance business. Life Insurance depends upon

the laws of mortality and there lies the difference between life and general insurance

businesses. Life has to extinguish sooner or later and the claim in respect of life is certain.

In case of general insurance, however, there may never be a claim and the amount can be

ascertained in advance. Hence, Life Insurance Pension business also derives from life



17/93


18/93


The test of whether a policy is assurance or insurance is that with an assurance policy the

insured event will definitely occur (at some point) whereas with an insurance policy there

is a risk the insured event might occur.

With regard to Whole Life policies, the question is not whether the insured event (in

this case death) will occur, but simply when. If the policy has non-forfeiture values (or

cash values ) then the policy is assured to pay.

During recent years, the distinction between the two terms has become largely blurred.

This is principally due to many companies offering both types of policy, and rather than

refer to themselves using both insurance and assurance titles, they instead use just one.

Role of Insurance in Economic Development:

For economic development, investments are necessary. Investments are made out of

savings. A life insurance company is a major instrument for the mobilization of savings

of people, particularly from the middle and lower income groups. These savings are

channeled into investments foe economic growth.

All good life insurance companies have huge funds, accumulated through the payments

of small amount of premium of individuals. These funds are invested in ways that

contribute substantially for the economic development of the countries in which they do

business.

All good life insurance companies have huge funds, accumulated through the payments

of small amount of premia of individuals. These funds are invested in ways that

contribute substantially for the economic development of the countries in which they do

business.

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

development.

A life insurance company will have large funds. These amounts are collected by way

of premiums. Every premium represents a risk that is covered by that premium. In effect,

http://en.wikipedia.org/w/index.php?title=Cash_values&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Cash_values&action=edit&redlink=1


19/93


therefore, these vast amounts represent pooling of risks. The funds are collected and held

in trust for the benefit of the policyholders. The management of life insurance companies

is required to keep this aspect in mind and make all its decisions in ways that benefit the

community. This applies also to its investments. That is why successful insurance

companies would not be found investing in speculative ventures.

Apart from investments, business and trade benefit through insurance. Without insurance,

trade and commerce will find it difficult to face the impact of major perils like fire,

earthquake, floods, etc. Financiers, like banks, would collapse if the factory, financed by

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

debtors default.

INSURANCE INDUSTRY

Insurance Sector in India

India with about 200 million middle class household shows a huge untapped potential for

players in the insurance industry. Saturation of markets in many developed economies

has made the Indian market even more attractive for global insurance majors. The

insurance sector in India has come to a position of very high potential and

competitiveness in the market.

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

Life Insurance

Non-life (General) Insurance

Brief history of Insurance:



20/93


The beginning of the insurance business is traced to the city of London. It started

with the marine Business. Marine traders, who used to gather at Lloyds coffee house in

London, agreed to share losses to goods during transportation by ship.

Marine related losses included

A) Loss of ship by shrinking due to weather in high seas.

B) Goods in transit by ship robbed by sea pirates.

C) Loss if goods in transit by ship due to bad weather in high seas.

The first insurance police was issued in 1583 in England. In India

insurance began in 1870 with life insurance being transacted by an English company the

European and the Albert. The first Indian insurance company was the "Bombay mutual

assurance society Ltd, formed in 1870.In 1956 LIC OF India was nationalized on

1/9/1956.

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

are:

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

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

1870:- Bombay mutual Life Assurance Society is the first India owned life

insurer.

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

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

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

collect statistical information about both life and non-life insurance businesses.



21/93


1938: Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz.LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of

India.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized

the general insurance business in India with effect from 1st January 1973.

1993:-Malhotra Committee, headed by former BBI governor R.N.Malhotra, set up

to draw up a blue print for insurance sector reforms.

1994:-Malhotra Committee recommends re-entry for private players, autonomy to

PSU insurers.

1997:-Insurance regulator IRDA (Insurance Regulatory and Development

Authority) set up.

2000:- IRDA starts giving licenses to private insurers, ICICI Prudential and

HDFC Standard Life first private insurers to sell a policy.

2002:- Banks were allowed to sell insurance plans , as TPAs enter the scene,

insurers start selling non-life claims in the cashless mode

Insurance Sector Reforms:



22/93


In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor

R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its

future direction. The Malhotra committee was set up with the objective of

complementing the reforms initiated in the financial sector. The reforms were aimed at

"creating a more efficient and competitive financial system suitable for the requirements

of the economy keeping in mind the structural changes currently underway and

recognizing that insurance is an important part of the overall financial system where it

was necessary to address the need for similar reforms". In 1994, the committee submitted

the report and some of the key recommendations included:

1) Structure:

Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that

these subsidiaries can act as independent corporations.

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

2) Competition:

Private Companies with a minimum paid up capital of Rs.1bn should be allowed

to enter the industry.

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

entity.

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

domestic companies.

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

Only One State Level Life Insurance Company should be allowed to operate in

each state.

3) Regulatory Body:



23/93


The Insurance Act should be changed.

An Insurance Regulatory body should be set up.

Controller of Insurance (Currently a part from the Finance Ministry) should be

made independent.

4) Investments: Mandatory Investments of LIC Life Fund in government securities to be reduced

from 75% to 50%

GIC and its subsidiaries are not to hold more than 5% in any company (There

current holdings to be brought down to this level over a period of time)

5) Customer Service:

LIC should pay interest on delays in payments beyond 30 days. Computerization

of operations and updating of technology to be carried out in the insurance

industry The committee emphasized that in order to improve the customer

services and increase the coverage of the insurance industry should be opened up

to competition. But at the same time, the committee felt the need to exercise

caution as any failure on the part of new players could ruin the public confidence

in the industry. Hence, it was decided to allow competition in a limited way by

stipulating the minimum capital requirement of Rs.100 crores. The committee felt

the need to provide greater autonomy to insurance companies in order to improve

their performance and enable them to act as independent companies with

economic motives. For this purpose, it had proposed setting up an independent

regulatory body.

Bank and Insurance:



24/93


Bank assurance symbolizes the convergence of banking and insurance. The term has its

origins in France and involves distribution of insurance products through a bank's branch

network. While bank assurance has developed into a tremendous success story in Europe,

it is a relatively new concept in Australia and Asia.

Most new insurers have entered into memoranda of understanding with banks to use their

branches as outlets for marketing standard products. State Bank of India, Vysya Bank and

J&K Bank already has joint ventures in life insurance. Vijaya Bank and Punjab National

Bank are in the midst of finalizing life and non-life ventures.

The Insurance Act allows only those companies registered under the Companies Act to

become corporate agents. This gives the new generation and old private sector banks a

head start over Public sector banks, which are technically not eligible to sell risk

products.

IRDA, IBA & RBI are in discussions to iron out the various issues, as public sector banks

will play a key role in the distribution of products.

March 2003 Review:

The Insurance Regulatory and Development Authority have said that a bank cannot enter

into a referral arrangement with more than one life insurance company or more than one

general insurance company. Insurance companies can enter into referral arrangements

displaying the insurers publicity material in the branch premises.

According to the IRDA, the participation of the banks customers in any insurance

scheme shall be purely on a voluntary basis and this fact should appear prominently in all

publicity materials distributed by the bank and the insurer. According to latest IRDA

circular, the total payout under the referral fee has been capped as a percentage of the



25/93


Circular, the total payout under the referral fee has been capped as a percentage of the

total premium, which varies from 5.5% to 55% depending on the extent of the business.

The company generates through the referral arrangement. IRDA has barred insurers from

paying any referral fee for any promotional campaign. Besides, insurers cannot pay anycommission or other remuneration along with the referral fees.

March 2004 Review:

IRDA has announced new guidelines pertaining to payment of brokerage to insurance

brokers carrying on direct insurance business in the country. As per the new guidelines

on general insurance contracts, insurance brokers cannot charge brokerage or commission

on the business of Government and public sector undertakings (PSUs. Business from

these classes of customers will be placed directly with the insurance companies, whereinthey will continue to enjoy a five per cent discount on the basic tariff applicable.

The notification will come into effect from April 1, 2003, and applies to all general

insurance contracts. These guidelines will not apply to reinsurance broking contracts.

Brokerage/commission includes any royalty, license fees, administration charges or any

compensation, which any agreement between the parties provide for intermediation.

IRDA has so far issued broking licenses to 32 entities in the country.

IRDA has laid out stringent norms including cap on exposure in MF investment as well

as investment in stocks and shares for both public and private insurance companies

detailing the guidelines for investments in mutual funds (MFs).

According to this circular, the investment in MFs at any point of time shall not exceed 50

per cent of investment falling under the other than approved investments (OTAI)

category for both life and general insurance companies. IRDA has also stipulated that the

MFs in which the insurers invest should be registered with the SEBI. Besides, the insurer

should always ensure that the investments in MF are diversified among the products of different companies.

Life insurers:



26/93


S.No. RegistrationNumber

Date ofReg.

Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

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

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 MetLife India Insurance Company Ltd.

11 133 04.09.2007 Future General India Life Insurance Company Limited

12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

Major Market Players:

http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.tata-aig-life.com/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.metlife.co.in/http://www.metlife.co.in/http://www.metlife.co.in/http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.tata-aig-life.com/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.metlife.co.in/


27/93


1. Life Insurance Corporation of India (LIC)

The Life Insurance Corporation (LIC) was established about 44 years ago with a view to

provide an insurance cover against various risks in life. A monolith then, the corporation,

enjoyed a monopoly status and became synonymous with life insurance. Its main asset isits staff strength of 1.24 lakh employees and 2,048 branches and over six lakh agency

force. LIC has hundred divisional offices and has established extensive training facilities

at all levels. At the apex, are the Management Development Institute, seven Zonal

Training Centers and 35 Sales Training Centers. At the industry level, along with the

Government and the GIC, it has helped establish the National Insurance Academy. It

presently transacts individual life insurance businesses, group insurance businesses,

social security schemes and pensions, grants housing loans through its subsidiary; and

markets savings and investment products through its mutual fund. It pays off about Rs

6,000crore annually to 5.6 million policyholders.

2. ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse, and Prudential plc, a leading international financial

services group headquartered in the United Kingdom. Prudential plc established in

London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and

Asia, provides retail financial services products and services to more than 16 million

customers, policyholder and unit holders worldwide

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

ICICI Prudential equity base stands at Rs. 925 crore with ICICI Bank and Prudential plc

holding 74% and 26% stake respectively. In the period April-December 2004, the

company garnered Rs 860 crore of new business premium for a total sum assured of over Rs 7,360 crore and wrote nearly 345,000

3 Birla Sun Life Insurance Company Limited



28/93


Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life

Financial of Canada to enter the Indian insurance sector. The Aditya Birla Group, a

multinational conglomerate has over 75 business units in India and overseas with

operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and Egypt to

name a few.

Foreign Partner:

Sun Life Assurance, Sun Life Financials primary insurance business, has excellent

ratings with the world's top rating agencies. With assets under management as on

September 30, 2000 totaling more than CDN billion, it ranks amongst the largest

international financial services organizations in the world. Today, the Sun Life Financial

Group of companies and partners are represented globally in Canada, the United States,the Philippines, Japan, Indonesia, India and Bermuda.

4 OM Kotak Mahindra Life Insurance

Established in 1985 as Kotak Capital Management Finance promoted by Uday Kotak the

company has come a long way since its entry into corporate finance. It has dabbled in

leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc.

The company got its name Kotak Mahindra as industrialists Harish Mahindra and Anand

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

Financial Institutions.

Old Mutual

Old Mutual plc is an international financial services group based in London with

expanding operations in life assurance, asset management, banking and general

insurance. Old Mutual is listed on the London Stock Exchange (where it is included the

FTSE 100 Index) and also on the South African, Namibian, Malawi and Zimbabwe stock

exchanges. It has 156 years of experience in the life insurance business.

OM Kotak Mahindra



29/93


OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd., and Old

Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life

insurance products.

5 Max New York Life:

Max India:

Max India Limited is a multi-business corporation that has business interests in telecom

services, bulk pharmaceuticals, electronic components and specialty products. It is also

the service-oriented businesses of healthcare, life insurance and information technology.

New York Life:

New York Life has grown to be a Fortune 100 company and an expert in life insurance. It

was the first insurance company to offer cash dividends to policy owners. In 1894, New

York Life pioneered the then unheard-of concept of insuring women at the same rate as

men. Thereafter, it continued to introduce a series of firsts - a disability benefit clause in

1920, unemployment insurance in 1992, and complete customer care on the Web in 1998.

Today New York Life has over US billion in assets under management and over 30,000

agents and employees worldwide. The October 2000 Fortune Survey named New York Life amongst the top three most admired life and health insurance companies worldwide.

With over 3 million policyholders, New York Life is a leading provider of insurance in a

host of countries worldwide.

6 Aviva Life Insurance India:

Aviva Life Insurance India is joint venture between Dabur, one of India's oldest and

largest groups of companies and Aviva. Aviva plc. is UKs largest insurer. In accordance

with government regulations, Aviva holds a 26 percent stake in the new venture and

Dabur holds a 74 percent share.

Aviva:



30/93


Aviva is the world's seventh-largest insurance group (Based on gross worldwide

premiums) and the biggest in the UK. It is one of the leading providers of life and

pensions products to Europe and has substantial businesses elsewhere around the world.

Its main activities are long-term savings, fund management and general insurance.

7 ING Vysya Life Insurance:

ING Group:

ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance, ING

Vysya Bank and GMR Group. Over the last 150 years, ING Group has grown to become

one of the largest life insurance organizations in the world. Today it touches the lives of

over 50 million people across 65 countries. It offers a range of financial services

including insurance, pensions, banking and asset management. In the year 2000, total

assets of the group stood at over INR 28, 42,000 crores. ING Group has wide and deep

experience in setting up companies in new markets, which require substantial investments

underlining ING's long-term commitment. In the last 20 years, ING Group has

established successful life insurance companies in 15 countries contributing to the

development of insurance services in these countries.

ING Vysya Bank Limited:

It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5

million customers, 480 outlets and 6000 employees it is known for its innovative banking

services and for pioneering several products and services. ING Vysya Bank has a long-

standing relationship with its customers and deep understanding of the Indian market.

GMR Group:



31/93


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

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

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

from scratch.

8 MetLife India Insurance Pvt. Company:

MetLife India was incorporated as a joint venture between MetLife International

Holdings, Inc., Jammu & Kashmir Bank, M Pallonji & Co. and other private investors.

MetLife India is headquartered in Bangalore with offices and presence in major Indian

cities, and additional 1000 outreach points through its channel partners.

MetLife:

Ranked 38 on the Fortune 500 list (April 2003), MetLife, Inc. (MetLife) is one of the

worlds largest, strongest and most respected financial organizations. MetLife, through its

affiliates, is the number 1 life insurer in the U.S. with approximately $2.4 trillion of life

insurance in force (as of December 2002) and has been delivering reliable, high quality

service to customers since 1868. The MetLife companies serve approximately 12million

individuals in the U.S. as well as the employees of 88 of the Fortune 100 companies.

Headquartered in New York, MetLife operates through its affiliates and subsidiaries in 12

countries across the Americas, Europe and Asia.

9 Allianz Bajaj Life Insurance Co.

Allianz Bajaj Life Insurance Co. Ltd. is a joint venture between two leading

conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj

Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.

Foreign Partner:



32/93


Allianz Group is one of the world's leading insurers and financial service providers.

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost

174,000 employees. At the top of the international group is the holding company, Allianz

AG, with its head office in Munich. Allianz Group provides its more than 60 million

customers worldwide with a comprehensive range of services in the areas of

Property and Casualty Insurance,

Life and Health Insurance,

Asset Management and Banking.

10 SBI Life Insurance Company Ltd:

SBI Life Insurance Company Ltd. is a joint venture between India's largest bank, State

bank of India (SBI) & Cardiff S.A., a leading Life Insurance company in France. State

Bank of India (SBI) is a household name, and it stands as the last word for financial

strength and security in the country. SBI's illustrious background dates back to the year

1806 when it started business, as a presidency bank, known as Bank of Bengal.

Over the long journey, it has learnt to combine the best of banking practices handed downfrom the imperial management with the more dynamic ways of doing banking in the

modern India. It has grown as a responsible giant in the banking field over the years.



33/93


34/93


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

the largest residential mortgage finance institution in the country. The corporation has

had a series of share issues raising its capital to Rs. 119 crores. The net worth of the

Corporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates through 75

locations throughout the country with its Corporate Headquarters in Mumbai, India.

HDFC also has an international office in Dubai, U.A.E., with service associates in

Kuwait, Oman and Qatar.

HDFC Standard Life Insurance Company Ltd:

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life

insurance companies, which offers a range of individual and group insurance solutions. It

is a joint venture between Housing Development Finance Corporation Limited (HDFC

Ltd.), Indias leading housing finance institution and The Standard Life Assurance

Company, a leading provider of financial services from the United Kingdom.

Incorporated on 14th August 2000, it was the first life company to be granted a certificate

of registration by the IRDA on the 23rd of October 2000. HDFC Standard Life is one of

the first companies to be granted license by the IRDA to operate in life insurance sector.

It is a joint venture of HDFC Ltd and Standard Life Europe's largest mutual life assurance

company. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and

Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the

venture.

HDFC Standard Life Insurance is a new Indian life insurance company that

operates out of 52 locations. It offers clients a range of insurance plans to meet their

savings, investment and protection needs. In the financial year 2002-03, the company

registered a year-on-year growth of over 260%. It is also the first new life insurance

company to declare its third successive bonus for participating policy holders.

In order to survive in the insurance segment, HDFC had to introduce new

products. They were looking for a robust and integrated solution to support the new



35/93


product. HDFC was also facing numerous problems with their current systems in terms of

performance, reliability and scalability.

HDFC Standard Life Insurance sells a range of individual savings, pension and

group life assurance products and has branch offices in 39 locations throughout India. It

was recently rated as the "Best New Insurer - 2003" by Outlook Money magazine. Both

the promoters are well known for their ethical dealings and financial strength and are thus

committed to being a long-term player in the life insurance industry.

HDFC Standard Life Insurance is one of the leading private life insurance companies.

The company generated premium from new business of Rs. 486 Cr in 2004-05,registering a year-on-year growth of over 132%. The total premium income (including

renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. The company also

achieved a major milestone during the financial year by crossing a Sum Assured figure of

Rs. 30,000 Cr. The company also declared its fifth bonus for participating policyholders.

HDFC operates through 75 locations throughout the country with its Corporate

Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E.,

with service associates in Kuwait, Oman and Qatar.

Standard Life Group, UK



36/93


Standard Life is Europe's largest mutual life assurance company. Standard Life, which

has been in the life insurance business for the past 175 years, is a modern company

surviving quite a few changes since selling its first policy in 1825. The company

expanded in the 19th century from its original Edinburgh premises, opening offices in

other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over 70 billion under its management and

has the distinction of being accorded "AAA" rating consequently for the past six years by

Standard & Poor.

The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to be

granted license by the IRDA to operate in life insurance sector. Each of the JV player is

highly rated and been conferred with many awards. HDFC is rated 'AAA' by both

CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and

Standard and Poors. These reflect the efficiency with which HDFC and Standard Life

manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.

VISION & MISSION



37/93


We aim to be the top new life insurance company in the market. This does not just mean

being the largest or the most productive company in the market, rather it is a combination

of several things like-

Customer service of the highest order

Value of money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share.

Key Values:

SECURITY : Providing long term financial security to our policy holders will be

our constant Endeavour. We will be doing this by offering life insurance and

pension products.

TRUST : We appreciate the trust placed by our policy holders in us. Hence, we

will aim to manage their investments very carefully and live up to this trust.

INNOVATION : Recognizing the different needs of our customers, we will be

offering a range of innovative products to meet these needs. Our mission is to be

the best new life insurance company in India and these are the values that will

guide us in this.

Board Members



38/93


Mr. Deepak S Parekh Chairman of HDFC Limited.

Mr. Keki M Mistry Managing Director of HDFC Limited.

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

Ms. Marcia D Campbell Group Operations Director

Mr. Keith N Skeoch Chief Executive in Standard Life

Mr. Ranjan Pant Global Management Consultant

Ms. Renu S. Karnad Executive director of HDFC Limited

Key strengths :

Financial Expertise



39/93


40/93


Alternate Channels including banc assurance has recorded an impressive growth

of over 63% to contribute 41% to the Effective Premium Income (EPI)

Group business funds under management have increased to Rs. 959 crores,

registering a growth of 83% over FY2006-07

The average premium has increased to Rs. 33,000

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

the country

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

HDFC Standard Life tracks its New Business Premium on the basis of Effective

Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single

Premium policy and is an internationally



41/93


42/93


o Group Unit Linked Plan

OTHER PRODUCTS Social Development Insurance Plan

INDIVIDUAL PRODUCTS :

For individuals , they have a range of protection, investment, pension and savings plans

that assist and nurture dreams apart from providing protection. You can choose from a

range of products to suit your life-stage and needs .

HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this

in mind, we have a varied range of Products that you can choose from to suit all your

needs. These will help secure your future as well as the future of your family.

Protection Plans

One can protect their family against the loss of your income or the burden of a loan in the

event of your unfortunate demise, disability or sickness. These plans offer valuable peace

of mind at a small price. Protection range includes our Term Assurance Plan & Loan

Cover Term Assurance Plan .

Investment Plans

Single Premium Whole of Life plan is well suited to meet your long term investment

needs. We provide you with attractive long term returns through regular bonuses.

http://www.hdfcinsurance.com/products/individual.asphttp://www.hdfcinsurance.com/products/indi_tap.asphttp://www.hdfcinsurance.com/products/indi_lcta.asphttp://www.hdfcinsurance.com/products/indi_lcta.asphttp://www.hdfcinsurance.com/products/indi_spwlp.asphttp://www.hdfcinsurance.com/products/individual.asphttp://www.hdfcinsurance.com/products/indi_tap.asphttp://www.hdfcinsurance.com/products/indi_lcta.asphttp://www.hdfcinsurance.com/products/indi_lcta.asphttp://www.hdfcinsurance.com/products/indi_spwlp.asp


43/93


Pension Plans

Pension Plans helps one secure their financial independence even after retirement.

Pension range includes Personal Pension Plan and Unit Linked Pension Plan .kkk

Savings Plans

Savings Plans offers flexible options to build savings for ones future needs such as

buying a dream home or fulfilling your childrens immediate and future needs. Savings

range includes Endowment Assurance Plan , Unit Linked Endowment Assurance Plan ,

Money Back Plan , Childrens Plan , Unit Linked Young star Plan .

GROUP PRODUCTS:

For organizations they have a host of customized solutions that range from Group Term

Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable

plans apart from providing long term value to the employees help in enhancing goodwill

of the company.

Some of the group products to our esteemed corporate clients :

Group Term Insurance :

Whatever the business Its the people who make it a success. Everybody requires

Some type of life insurance, especially when others depend on them financially.

http://www.hdfcinsurance.com/products/indi_ppp.asphttp://www.hdfcinsurance.com/products/indi_ppp.asphttp://www.hdfcinsurance.com/products/indi_ulpp.asphttp://www.hdfcinsurance.com/products/indi_ulpp.asphttp://www.hdfcinsurance.com/products/indi_eap.asphttp://www.hdfcinsurance.com/products/indi_eap.asphttp://www.hdfcinsurance.com/products/indi_ulep.asphttp://www.hdfcinsurance.com/products/indi_mbp.asphttp://www.hdfcinsurance.com/products/indi_cp.asphttp://www.hdfcinsurance.com/products/indi_ulysp.asphttp://www.hdfcinsurance.com/products/group.asphttp://www.hdfcinsurance.com/products/group.asphttp://www.hdfcinsurance.com/products/grp_gtistdprop.aspxhttp://www.hdfcinsurance.com/products/indi_ppp.asphttp://www.hdfcinsurance.com/products/indi_ulpp.asphttp://www.hdfcinsurance.com/products/indi_eap.asphttp://www.hdfcinsurance.com/products/indi_ulep.asphttp://www.hdfcinsurance.com/products/indi_mbp.asphttp://www.hdfcinsurance.com/products/indi_cp.asphttp://www.hdfcinsurance.com/products/indi_ulysp.asphttp://www.hdfcinsurance.com/products/group.asphttp://www.hdfcinsurance.com/products/grp_gtistdprop.aspx


44/93


The Group Term Insurance (GTI) plan meets this need and serves as an ideal way for

companies to reinforce their bond with their employees. The sort of needs, you, as an

employer need to cater to could be in form of:

Employee benefits.

Cover for housing or vehicle loans given by you to your employees.

A GTI cover for future service gratuity liability to be taken along with the HDFC

Group Unit Linked Plan.

The HDFC Group Term Insurance is a cost-effective plan that addresses these needs.

In addition you have the choice to opt for a GTI with an experience discount feature

("Profit Share") , where a discount is given on future premiums in case of favorable

claim experience (subject to group size).

Group Variable Term Insurance

The Group Variable Term Insurance is a tailor made insurance policy for third party

institutions. HDFC Standard Life Insurance Company will offer life insurance to

customers of one or more of the third partys specific products in order that in the event

of their death, there will be a lump sum available.

The Group Variable Term Insurance :

On death, will pay a lump sum known as a sum assured. The sum assured varies over

time in order that the customer receives the cover that they need.

Is a group policy.

Has no lengthy underwriting procedure.

Is simple to administer

GROUP UNIT LINKED PLAN

Many organizations realize that the statutory requirement benefits are not sufficient for

their trusted employees to continue enjoying their quality of life after they retire. The

HDFC Group Unit Linked Plan is a great way for an employer to show his employees

that he not only takes care of them while in service, but has also ensured that they can

lead a comfortable life after retirement.

http://www.hdfcinsurance.com/products/grp_gvti.aspxhttp://www.hdfcinsurance.com/products/grp_gvti.aspx


45/93


The HDFC Group Unit Linked plan is also a great employee retention and motivation

tool that helps employers to fund their employees post-retirement needs in a systematic,

tax-efficient and cost-effective manner. Moreover, as a unit-linked plan, it gives you

tremendous flexibility and freedom to customize individual retirement funds for your

employees based on their appetite for risk and the stage of life they are in.

This plan helps an organization by:

Providing an investment vehicle to trustees for making the contribution for each

member.

Helping build a substantial retirement fund for each member.

Presenting a potential to provide higher benefits to employees.

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

INDIVIDUAL PRODUCTS :

Term Assurance Plan

If you have a family that you care for, you should consider what would happen in case of

your unfortunate death. The emotional void cannot be filled, but financial insecurity can

be avoided. By taking this affordable life insurance plan, you can provide for the well-

being of your family in case of your unfortunate death. This plan comes to you at a

Minimal cost and is well-suited for the value-conscious customer. Under this plan, a sum

assured is payable in case of death of the life assured during the term of the contract. One

can choose the lump sum that would replace the income lost to one's family in theunfortunate event of one's death. Since this non-participating (without profits) plan is a

pure risk cover plan, no benefits are payable on survival to the end of the term of the

policy.

Term Assurance Plan :



46/93


A protection plan to secure higher protection needed for your family at economical rates

Optional riders for enhanced protection Unique joint life option to cover your spouse

under the same plan Single / regular premium payment options

PERSONAL PENSION PLAN

Today, one is busy climbing the ladder of success and realizing their dreams. Today, time

is with you. Just take a moment and think. Will you be able to continue at the same pace?

Will your income be the same forever? Will you be able to live life on your own terms

even after you retire?

HDFC PERSONAL PENSION PLAN:

HDFC understands ones need to build a secure future for them. Hence, the HDFC

Personal Pension Plan is an insurance policy that is designed to provide a post

retirement income for life with the freedom to choose your retirement date.

You can choose your premium, the Sum Assured and your retirement date. At the end of

the policy term, you will receive the Sum Assured plus any attaching bonus, which will

provide your post - retirement income.

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

following ways:

Provides a post retirement income in your golden years

Gives you the flexibility to plan your retirement date



47/93


Gives you tax benefits on your premiums

The plan receives simple Reversionary Bonuses, which are usually added annually. At

the end of the term an additional Terminal Bonus may be paid depending on the

performance of the underlying investment.

Easy steps to get insured are :

Choose your retirement age

Estimate the post retirement income you require.

Work out the premium payable with your Financial Consultant.

UNIT LINKED PENSION PLAN :

Lead a life of respect and dignity. Even after retirement Today, one is busy climbing the

ladder of success and realizing their dreams. Today, time is with you. Just take a moment

and think. Will you be able to continue at the same pace? Will your income be the sameforever? Will you be able to live life on your own terms even after you retire?

HDFC UNIT LINKED PENSION PLAN

HDFC understands ones need to build a secure future for them. The HDFC UnitLinkedPension Plan is an insurance policy that is designed to provide a retirement income for

life with the freedom to maximize your investment returns by providing a choice of

thoroughly researched and selected investments. Stride into your golden years of

retirement with dignity and pride. You can choose your premium and the investment fund

or funds. We will then invest your premium, net of charges in your chosen funds in the



48/93


proportion you specify. At the end of the policy term, you will receive the accumulated

value of your funds, which will be used to provide your pension income . In the event of

your unfortunate demise during the policy term, your spouse will receive a cash lump

sum to help him or her manage their retirement years.

The HDFC Unit Linked Pension Plan is an insurance policy, which benefits

you in the following ways:

Provides a post retirement income for life

Gives you the flexibility to plan your retirement date

Gives you the freedom to invest premiums as per your preference

Offers you potentially higher market linked returns

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

Easy steps to get insured are:

Choose your retirement age

Choose the premium you wish to invest, based on your retirement needs.

Choose the investment fund or funds you desire.

Endowment Assurance Plan :

You have given your family the very best. And there is no reason why they should not getthe very best in the future too. As a judicious family man, your priority is to secure the

well-being of those who depend on you. Not just for today, but also in the longterm.More

importantly, you have to guard your loved ones against any eventuality. How will they

sustain their way of life, so lovingly built by you, in your absence? With our HDFC

Endowment Assurance Plan, you can ensure that your family remains financially



49/93


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

and dignity. Always

The HDFCSL Endowment Assurance Plan gives:

An ideal way to secure your long-term financial goals

Valuable protection to your family by way of lump sum payment in case of your

unfortunate death within policy term

Provides lump sum payment (basic Sum Assured plus any bonus additions) on survival

up to maturity date

Very flexible benefit options and payment options.

In case of your unfortunate demise during the policy term, this participating (With

Profits) insurance plan will pay your family the Sum Assured (together with the attached

bonuses) you had chosen.


the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment

Easy steps to get insured are :

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

Tool.

Choose from any one of the 4 additional benefit options as per your requirement. Work

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

CHILDREN'S PLAN:

http://www.hdfcinsurance.com/singlepgs/contact_finan.asphttp://www.hdfcinsurance.com/singlepgs/contact_finan.asphttp://www.hdfcinsurance.com/singlepgs/contact_finan.asp


50/93


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.

HDFC Children's Plan

The HDFC Children's Plan gives:

Invaluable financial support to your child

Helps you customize an ideal plan for your child

Provides you multiple options for multiple benefits

The HDFC 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 end of the term an additional Terminal Bonus may be paid depending on the

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

Easy steps to follow:



51/93


52/93


Your family will receive the Sum Assured you had chosen* plus the fund built up by

your and HDFC Standard Lifes contributions. Use HDFC Standard Lifes excellent

investment options to maximize your savings and Maximize your childs achievements.

We will provide security for your child and make those savings on your behalf, in your

absence

Easy steps to follow:

Choose the premium you wish to invest.

Choose the amount of Protection (Sum Assured) you desire.

Choose the additional benefit options you desire.

Choose the investment fund or funds you desire.

Money Back Plan:

You have always believed in living life on your own terms. So why let the changing

realities of everyday life overwhelm you and make your aspirations take a back seat? You

can plan now to ensure that you have the necessary funds to meet your future financial

needs.

The table below will help you identify and classify some of your financial goals. You can

prioritize these goals and set your objectives accordingly (see indicative table given

below).

LONG-TERM GOALS SHORT TERM GOALS

Provide adequate cover for Life, CriticalIllness or disability.

Buying a car

Saving for big-ticket assets like your house.

Saving for your marriage

Saving for your childrens education Vacation abroadHaving a regular system for savings



53/93


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

A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals

within the policy term (see the table given below) an ideal way to secure your long-

term as well as short-term financial goals A lump sum payment on survival up tomaturity date Valuable protection to your family by way of lump sum payment in case of

your unfortunate death within the policy term. This is over and above any earlier payouts

Making the right kind of investment will enable you to achieve your objectives be it

your immediate expenses or else securing your future financial needs. Our Money Back

Plan gives you a wide range of terms and cash benefit schedule to choose from. A

summary of Key Benefits including the cash lump sum payments, expressed as a

Percentage of Sum Assured is shown below.



54/93


Maturity ValueOn maturity you receive survival benefit due at that point of time along with

attaching bonuses for the full Sum Assured calculated for the full term.

You can ensure your financial independence. And be able to live life on your own terms.

Steps to be followed:

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

Choose from any one of the 4 additional optional benefits as per your requirement.

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

Unit Linked PlanThe Group Term Insurance (GTI) is a cost-effective plan that addresses these needs.

In addition you have the choice to opt for a GTI with an experience discount feature,

Wherein a discount is given on future premiums in case of favorable claim experience

The Group Term Insurance plan will have the following structure

One year renewable term insurance plan

One master policy issued covering all members of the group

Sum assured is payable on death (either due to natural causes or accidents)

Key features of the plan

Our product has been designed to offer innovative features and a high degree of

Customization. These are:

Convenient medical procedures

The members do not need to undergo any medical examination up to the Free Cover

Limit. This limit is dependant upon the sum assured and the size of the group.



55/93


Awards and Accolades

March, 2008

Unit Linked Savings Plan Tops Mint Best TV Ads Survey

The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading

private insurance companies in India, has topped Mints Top Television Advertisement

survey conducted, for February 2008. HDFC Standard Lifes Unit Linked Savings Plan

advertisement was ranked 4th in terms of a combined score of ad awareness and brand

recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and

claim). The respondents were between 18 and 40 years. Mints exclusive report, New

Voices in a makeover outlines the survey in detail.

February, 2008

Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007

Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received

the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual

Qimpro Awards function. The award celebrates excellence in individual performance and

highlights the quality achievements of extraordinary individuals in an era of global

competition and expectations.

January,



56/93


2008

Sar Utha Ke Jiyo among Indias 60 Glorious Advertising Moments

HDFC Standard Lifes advertising slogan honored as one of 60 Glorious Advertising

& Marketing Moments' over the last 60 years in India, by 4Ps Business and

Marketing magazine. The magazine said that HDFC Standard Life is one of the first

private insurers to break the ice using the idea of self respect ( Sar Utha Ke Jiyo ) instead

of 'death' to convey its brand proposition. This was then, followed by others including

ICCI Prudential, thus giving HDFC Standard Life the credit of bringing up one such

glorious advertising and marketing moment in the last 60 years.

December, 2007

Pension Plan Tops Mints Survey of Best TV Ads

HDFC Standard Lifes pension plans topped the ad diagnostics and ranked eighth on ad

reach in a survey of new television advertisements in November, 2007, conducted by

Mint, the leading business newspaper of the Hindustan Times Group. Our pensionadvertising was ranked first in terms of ad diagnostic scores (likeability, credibility,

enjoyment). The respondents were between 18 and 40 years. We were ranked 8th in

terms of a combined score of ad awareness and brand recall.

September, 2007

Ranked Sixth Most Effective Advertisement



57/93


58/93


RESEARCH DESIGN



59/93


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

Statement of the Problem: The study has been undertaken to know the Customers

attitude towards HDFC Standard Life Insurance

Objectives of Study:

To study the customer awareness for HDFC Standard Life.

To understand the customers attitude towards HDFC Standard Life brand.

To know the customers attitude towards the products.

To know the customers attitude towards the service provided by the company.

To examine the consumers buying behavior.

To know the factors which influenced the customers to purchase policy.

Benefits to the Organization:

This project will help the organization to know the customers attitude towards

the products of the company. This will help the organization to provide better services

to its clients.

Data Source:

The sources of data collected are:

Secondary Data :

Information is collected through internet

From various text books

Journals and magazines

Primary Data:

Questionnaire

Personal interview



60/93


Sampling method: Sample size: 100 samples

Sample unit : Existing customers of HDFC Standard Life Insurance

Sample area: Belgaum city Sample Technique : Convenience sampling

Tools Used For Analysis :SPSS Software

MS excel

Data Collection Approach:

Primary data has been used to carry out the research successfully. The secondary

data has been collected from various journals and publications. For the purpose of

gathering primary data a structure and non-disguised questionnaire was designed to

collect data from the Customers. The questionnaire contains both open-ended and close-

ended questions.

Method of Communication :

In order to minimize the bias in data collection, the method of personal interaction

was adopted.

Limitations of the study:

This survey was restricted to Belgaum city only.

Time limit was major constraint.

The sample size restricted to 100 only.



61/93


DATA ANALYSIS



62/93


CUSTOMERS PROFILE:

Age

41 41.0 41.0 41.034 34.0 34.0 75.017 17.0 17.0 92.0

8 8.0 8.0 100.0100 100.0 100.0

20 - 3030 -4040 - 5050-60Total

ValidFrequency Percent Valid Percent

CumulativePercent

Age

8.0%

17.0%

34.0%

41.0%

50-60

40 - 50

30 -40

20 - 30

Documents

aprojectreportoncustomersattitudetowardshdfcstandardlifeinsurance-121028053410-phpapp02