Hdfcsl Final Project

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TABLE OF CONTENTS

Chapter No. Contents Page No

1 Introduction 1-4

2 Research Design 5-16

3 Company Overview 17-41

4 Research Methodology 42-44

5 Data Analysis and

Interpretation

45-62

6 Findings 63-64

7 Recommendations 65

8 Conclusion 66

9 Questionnaire 67-69

10 Bibliography 70

CHAPTER 1: INTRODUCTION

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INTRODUCTION :

HDFC Life Insurance Company Limited is one of the Indias first private life

insurance company to be registered with IRDA, which offers a range of individual

and group insurance solutions. It is a joint venture between Housing Development

Finance Corporation Limited (HDFC Limited), Indias leading housing finance

institution and a Group Company of the Life Plc, UK. As on February 28, 2009

sHDFC Ltd. Holds 72.43% and Life (Mauritius Holding) 2006, Ltd. Holds 26.00%

of equity in the joint venture, while the rest is held by others.

HDFC Life believes that establishing a strong and ethical foundation is an

essential prerequisite for long term sustainable growth. To ensue this, the companyhave concentrated their focus on expansion of branch network, organizing an efficient

and well sales force, and setting up appropriate systems and processes with optimum

use of technology.

VISIONS:

The most successful and admired life insurance company , which means that

we are the most trusted company , the easiest to deal with , offer the best value for

money and set s in the industries.

VALUES:

Integrity

Innovation

Customer centric

People Care

Team work

Joy and Simplicity.

COMPETITORS COMPANYS :

ICICI PRUDENTIAL Life Insurance.

Birla Sunlife Insurance.

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Bajaj Alliance Life Insurance.

ING Vysya Life Insurance .

Reliance Life Insurance.

Met Life.

Max Newyork Life Insurance.

LIC Corporation of India.

AIMS & OBJECTIVES :

To find out the consumer behavior towards HDFC life.

To find out the level of satisfaction towards HDFCSL.

To compare HDFCSL with its main competitors.

To find out the factors that influences the buying of HDFCSL products.

To find out the strength and weakness of HDFCSL.

To find out the requirements and problems of the customer.

To suggest the company for better improvements & changes.

RESEARCH METHODOLOGY :

Research Type : Descriptive Research

Research Techniques : Survey

Population : Bangalore City

Sample Size : 22 Respondents

Sample Criteria : Non-Probability Sampling

Research Tool : Questionnaire

SOURCES OF DATA :

1. Primary Sources Of Data : Personal interview, questionnaires, observations

and experiments.

2. Secondary Sources Of Data : websites , books , newspapers, magazines etc

Duration of the study:

The project work was complete with in 6 weeks.

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FINDINGS

32% of the respondents came to know about HDFC Life from

advertisements, friends are also very important source for the consumers.

Family members are the most important factors in decision making for buying

the products.

54% of the respondent think that the process of HDFCSL is easy.

68% of the respondents have insurance policy in other insurance company.

Consumers have different opinions about HDFCSL customer service.

Endowment plan is the most preferable plan for the consumers and childrens

plan comes the second place.

72% of the respondents are satisfied about their expectations of the product.

45% of the respondents invest their money for future needs and tax benefits

are the second reason why they invest.

54% of the respondent are happy about premium rate they are paying.

95% of the respondents said that the advertisement of HDFCSL is effective

compared to other companies.

According to respondents, LIC is best insurance company in India.

HDFCSL is easy to approach that is the reason why there are many students

who done their project in this company

Competition among insurance company is higher than we think.

RECOMMENDATIONS

Family members can influence much consumers decision making, therefore,

financial advisor should know the importance of family members.

The company must find out the root causes and address dissatisfied

consumers properly.

The company should also contact those who already have insurance policy in

HDFCSL or in other companies.

The company should continue to give training and project guidance to the

students.

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CHAPTER 2: RESEARCH DESIGN

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

the insurer, where the insurer agree to pay a sum of money upon the occurance of the

insured individuals death or other event, such as terminal illness or critical illness. In

return, the policy owner agree to pay a stipulated amount called a premium at regular

intervals or in lump sums. There may be designs in some countries where bills &

death expenses plus catering for afte funeral expenses should be included in Policy

Premium. In the Unites States, the predominant form simply specifies a lump sum to

be paid on the insureds demise.

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

insurer and thepolicy ownerwhereby a benefit is paid to the designated beneficiaries

if an insured event occurs which is covered by the policy.

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

of the insured events. Specific exclusions are often written into the contract to limit

the liability of the insurer; for example claims relating to suicide, fraud, war, riot and

civil commotion.

Life- based contracts tend to fall into two major categories:

Protection policies 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 & variable life policies.

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HISTORY OF INSURANCEInsurance began as a way of reducing the risk of traders, as early as 5000 BC

in China and 4500 BC in Babylon. Life insurance dates only to ancient Rome;

burial clubs covered the cost of members funeral expenses and helped survivors

monetarily. Modern life insurance started in late 17th century England, originally as

insurance for traders: merchants, ship owners and underwriters met to discuss deals at

Lloyds Coffee House, predecessor to the famous Lloyds of London.

The first insurance company in the United States was formed in Charleston,

South Carolina in 1732, but it provided only fire insurance. The sale of life insurance

in the U.S began in the late 1760s.The Presbyterian Synods in Philadelphia and New

York created the Corporation for Relief of Poor and Distressed Widows and Children

of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in

1769. Between 1787 and 1837 more than two dozen life insurance companies were

started, but fewer than half a dozen survived.

Prior to the American Civil War, many insurance companies in the United

States insured the lives of slaves for their owners. In response to bills passed in

California in 2001 and in Illinois in 2003, the companies have been required to search

their records for such policies. New York Life for example reported that Nautilus sold

485 slaveholder life insurance policies during a two year

OVERVIEW

Parties to contract

There is a difference between the insured and the policy owner (policy

holder), although the owner and the insured are often the same person. For example,

if Jeo buys a policy on his own life, he is both the owner and the insured. But if Jane,

his wife, buys a policy on Jeos life, she is the owner and he is the insured. The policy

owner is the guarantee and he or she will be the person who will pay for the policy.

The insured is a participant in the contract, but the necessarily a party to it.

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The beneficiary receives policy proceeds upon the insureds death. The owner

designates the beneficiary, but the beneficiary is not a party to the policy. The owner

can change the beneficiary unless the policy has an irrevocable beneficiary

designation. With an irrecoverable beneficiary, that beneficiary must agree to any

beneficiary changes, policy assignments, or cash value borrowing.

In cases where the policy owner is not the insured (also referred to as the celui

qui vit orCQV), insurance companies have sought to limit policy purchases to those

with an insurable interest in the CQV. For life insurance policies, close family

members and business partners will usually be found to have an insurable interest.

The insurable interest requirement usually demonstrates that the purchaser will

actually suffer some kind of loss if the CQV dies. Such a requirement prevents people

from benefisting from the purchase of purely speculative policies on people they

expect to die. With no insurable interest requirement, the risk that a purchaser would

murder the CQV for insurance proceeds would be great. In at least one case, an

insurance company which sold a policy to a purchaser with no insurable interest (who

later murdered the CQV for the proceeds), was found liable in court for contributing

to the wrongful death of the victim (Liberty National Life v. Weldon, 267 Ala.

171(1957)).

Contract terms

Special provisions may apply, such as suicide clauses wherein the policy

becomes null if the insured commits suicide within a specified time (usually two

years after the purchase date; some sates provide a statutory one-year suicide clause).

Any misrepresentations by the insured on the application are also grounds for

nullification. Most US states specify that the contestability period cannot be longer

than two years; only if the insured dies within this period will the insurer have a legal

right to contest the claim on the basis of misrepresentation and request additional

information before deciding to pay or deny the claim.

The face amount on the policy is the initial amount that the policy will pay at the

death of the insured or when the policy matures, although the actual death benefit can

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provide for greater or lesser than the face amount. The policy matures when the

insured dies or reaches a specified age (such as 100 years old).

Costs, insurability, and underwriting

The insurer ( the life insurance company) calculates the policy prices with

intent to fund claims to be paid and administrative costs and to make a profit. The

cost of insurance is determined using mortality tables calculated by actuaries.

Actuaries are professionals who employ actuarial science, which is based in

mathematics (primarily probability and statistics).

Few expected claims. ( 0.35 to 0.66 expected deaths in each year x$100,000

payout per death = $35 per policy). Administrative and sales commissions need to be

accounted for in order for this to make business sense. A 10 years policy for a 25 year

old non-smoking male person with preferred medical history may get offers as low as

$90 per year for a $100,000 policy in the competitive US life insurance market.

The insurance company receives the premiums from the policy owner and

invests them to crate a pool of money from which it can pay claims and fianc the

insurance companys operations. Contrary to popular belief, the majority of the

money that insurance companies make comes directly from premiums paid, as money

gained through investment of premiums can never, in even the most ideal marketing

conditions, vest enough money per year to pay out claims. Rates charges for life

insurance increase with the insurers age because, statistically, people are more likely

to die as they get older.

Given that adverse selection can have a negative impact on the insurers

financial situation, the insurer investigates each proposed insured individual unless

the policy is below a company established minimum amount, beginning with the

application process. Group Insurance policies are an exception.

This investigation and resulting evaluation of the risk is termed underwriting. Health

and lifestyle questions are asked. Certain responses or information received may

merit further investigation. Life insurance companies in the Unites States support the

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Medical Information Bureau (MIB), which is a clearinghouse of information on

persons who have applied for life insurance with participation companies in the last

seven years. As part of the application, the insurer receives permission to obtain

information from the proposed insureds physicians.

Underwriters will determine the purpose of insurance. The most common is to

protect the owners family or financial interests in the event of the insurers demise.

Other purposes include estate planning or, in the case of cash- value contracts,

investment for retirement planning. Bank loans or buy-sell provision of business

agreements are another acceptable purpose.

Life Insurance companies are never required by law to underwrite or to

provide coverage to anyone, with the exception of Civil Rights Act compliance

requirements. Insurance companies alone determine insurability, and some people, for

their own health or lifestyle reasons, are deemed uninsurable. The policy can be

declined (turned down) or rates. Rating increases the premiums to provide for

additional risks relative to the particular insured.

Many companies use four general health categories for those evaluated for a

life insurance policy. These categories are Preferred Best, Preferred, , and Tabacco.

Preferred Best is reserved only for the healthiest individuals in the general population.

This means, for instance, that the proposed insured has no adverse medical history, is

not under medication for any condition, and his family (immediate and extended)

have no history of early cancer, diabetes, or other conditions. Preferred mean that the

proposed insured is currently under medication for a medical condition and have a

family history of particular illness. Most people are in the category. Profession,

travel, and lifestyle factor into whether the proposed insured will be granted a policy

and which category the insured falls. For example, a person who would otherwise be

classified as Preferred Best may be denied a policy if he or she travels to a high risk

country. Underwriting practices can vary from insurer to insurer which provide for

more competitive offers in certain circumstances.

Life insurance contracts are written on the basis ofutmost good faith. That is,

the propose and the insurer both accept that the other is acting in good faith. This

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means that the proposer can assume the contract offers what it represents without

having to submit.

TEMPORARY TERM

Term assurance:provided for life insurance coverage for a specified term of years

for a specified premium. The policy does not accumulate cash value. Term is

generally considered dost not accumulate cash value. Term is generally considered

pure insurance, where the premium busy protection in the event of death & nothing

else.The three key factors to be considered in term insurance are: face amount (protection

or death benefit), premium to be paid (cost to the insured), and length of coverage

(term).

Various insurance companies sell term insurance with many different

combinations of these three parameters. The face amount can remain constant or

decline. The term can be for one or more years. The premium can remain level or

increase. A common type of term is called annual renewable term. It is a one year

policy but the insurance company guarantees it will issue a policy of equal or lesser

amount without regard to the insurability of the insured and with a premium set for

the insureds age at that time. Another common type of term insurance is mortgage

insurance, which is usually a level premium, declining face value policy. The face

amount is intended to equal the amount of the mortgage on the policy owners

residence so the mortgage will be paid if the insured dies.

A policy holder insures his life for a specified term. If he dies before that specified

term is up, his estate or named beneficiary receives a payout. If he does not die before

the term is up, he receives nothing. In the past these policies would almost always

exclude suicide. However, after a number of court judgments against the industry,

payout do occur on death by suicide (presumably except for in the unlikely case that it

can be shown that the suicide was just to benefit from the policy). Generally, if an

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insured person commits suicide within the first tow policy years, the insurer will

return the premiums paid.

However, a death benefit will usually be paid if the suicide occurs after the two year

period.

Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until

the policy matures (pays out), unless the owner fails to pay the premium when due

(the policy expires OR policies lapse). The policy cannot be canceled by the insurer

for any reason except fraud in the application, and that cancellation must occur within

a period of time defined by law (usually tow years). Permanent insurance builds a

cash value that reduces the amount at risk to the insurance company and thus the

insurance expense over time. This means that a policy with a million dollar face value

can be relatively expensive to a 70 year old. The owner can access the money in the

cash value by withdrawing money, borrowing the cash value, or surrendering the

policy and receiving the surrender value.

The four basic types of permanent insurance are whole life, universal life, limited pay

& endowment.

Whole life coverage

Whole life insurance provides for a level premium, and a cash value table

included in the policy guaranteed by the company. The primary advantages of whole

life are guaranteed death benefits; guaranteed cash values, fixed and known annual

premiums, and mortality and expense charges will not reduce the cash value shown

in the policy. The primary disadvantages of whole life are premium inflexibility, and

the internal rate of return in the policy ma not be competitive with other savings

alternatives. Riders are available that can allow one to increase the death benefit by

paying additional premium. The death benefit can also be increased through the use

of policy dividends. Dividends cannot be guaranteed and may be higher or lower

than historical rates over time. Premiums are much higher than term insurance in the

short-term, but cumulative

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Joint life: insurance is either a term or permanent policy insuring tow or more lives

with the proceeds payable on the first death or second death.

Survivorship life: is a whole life policy insuring tow lives with the proceeds payable

on the second (later) death.

Single premium whole life: is a policy with only one premium which is payable at

the time for policy is issued.

Modified whole life: is a whole life policy that charges smaller premiums for a

specified period of time after which the premiums increase for the remainder of the

policy.

Group life insurance: is term insurance covering a group of people, usually

employees of a company or members of a union or association. Individual proof of

insurability is not normally a consideration in the underwriting. Rather, the

underwriters considers the size and turnover of the group, and the financial strength

of the group. Contract provisions will attempt to exclude the possibility of adverse

selection. Group life insurance often has a provision that a member exiting the group

has the right to buy individual insurance coverage.

Senior and preneed products Insurance companies have in recent years developed

products to offer to niche markets, most notable targeting the senior market to address

needs of an aging population. Many companies offer policies tailored to the need of

senior applicants. These are often low to moderate face value of whole life insurance

policies, to allow a senior citizen purchasing insurance at an older issue age an

opportunity to buy affordable insurance. This may also be marketed as final expense

insurance, and an agent or company may suggest (but not require) that the policy

proceeds could be used for end- of life expenses.

Premed (or prepaid) insurance policies: are whole life policies that, although available

at any age, are usually offered to older applicants as well. This type of insurance is

designed specifically to cover funeral expenses when the insured person dies. In many

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cases, the applicant signs a refunded funeral arrangement with a funeral home at the

time the policy is applied for. The death proceeds are then guaranteed to be directed

first to the funeral services provider for payment of services rendered. Most contracts

dictate that any excess proceeds will go either to the insureds estate or a designated

beneficiary.

Investment policies

With-profits policies:

Some polices allow the policyholder to participate in the profits of the insurance

company these are with-profits policies. Other policies have no right to participate in

the profits of the company, these are non- profitpolicies.

With-profits policies are used as a form of collective investment to achieve capital

growth. Other policies offer a guaranteed return not dependent on the companys

underlying investment performance; these are often referred to as without-profit

policies which may be construed as a misnomer.

Investment Bonds

Pensions: Pensions are a form of life assurance. However, whilst basic life assurance,

permanent heath insurance and non-pensions annuity business includes an amount of

mortality or morbidity risk for the insurer, for pension there is a longevity risk.

A pension fund will be build up throughout a persons working life. When the person

retires, the pension will become in payment, and at some stage the pensioner will buy

an annuity contract, which will guarantee a certain pay-out each month until death.

Annuities

An annuity is a contract with an insurance company whereby the purchase pays an

initial premium or premiums into a tax- deferred account, which pays out a sum at

pre-determined intervals. There are two periods: the accumulation (when payments

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are paid into the account) and the annuitization (when the insurance company pays

out).

Market trends

Life insurance premiums written in 2005

According to a study by Swiss Re, the EU was the largest market for life insurance

premiums written in 2005 followed by the USA and Japan.

Criticism

Although some aspects of the application process (such as underwriting and

insurable interest provisions) make it difficult, life insurance policies have been used

in cases of exploitation and fraud. In the case of life insurance, there is a motivation

to purchase a life insurance policy, particularly if the face value is substantial, and

then kill the insured. Usually, the larger the claim, , and/or the more serious the

incident, the larger and more intense will be the number of investigative layers,

consisting in police and insurer investigation, eventually also loss adjusters hied by

the insurers to work independently.

The television series Forensic Files has included episodes that feature this scenario.

There was also a documented case in 2006, where tow elderly women are accused of

taking in homeless men and assisting them. As part of their assistance, they took out

life insurance on the men. After the contestability period ended on the policies (most

life contracts hav a contestability period of tow years), the women are alleged to have

had the men killed via hit-and- run car crashes.

Recently, viatical settlements have thrown the life insurance industry into

turmoil. A viatical settlement involves the purchase of a life insurance policy from an

elderly or terminally ill policy holder. The policy holder sell the policy (including the

right to name the beneficiary ) to a purchaser for a price discounted from the policy

value. The seller has cash in hand, and the purchaser will realize a profit when the

seller dies and the proceeds are delivered to the purchaser. In the meantime, the

purchase continues to pay the premiums. Although both parties have reached an

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agreeable settlement, insurers are troubled by this trend. Insurers calculate their rates

with the assumption that a certain portion of policy holder will seek to redeem the

cash value of their insurance policies before death. They also expect that a certain

portion will stop paying premiums and forfeit their policies. However, viatical

settlement ensures that such policies will with absolute certainty to paid out. Some

purchasers, in order to take advantage of the potentially large profits, have even

actively sought to collude with uninsured elderly and terminally ill patients, and

created policies that would have not otherwise been purchase. Likewise, these

policies are guaranteed losses from the insurers perspective.

The criticism goes also in the direction of pointing out much lower payouts

for life insurance than for health or disability insurance in some countries ( for

example,UK)

Life Insurance in India

Life insurance is the fastest growing sector in India sine 2000 as Government allowed

private players and FDI up to 26%. Life Insurance in India was nationalized by

incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance

companies at that time were taken over by LIC.

In 1993, the Government of Republic of India appointed RN Malhotra Committee to

lay down a road map for privatisation of the life insurance sector.

While the committee submitted its report in 1994, it took another six years before the

enabling legislation was passed in the year 2000, legislation amending the Insurance

Actof 1938 and legislating theInsurance Regulatory andDevelopment Authority Act

of 2000.The same year that the newly appointed insurance regulator Insurance

Regulatory and Development Authority IRDAstarted issuing licenses to private life

insurers.

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List of Life Insurers ( as of Sept, 2006)

Apart from Life Insurance Corporation, the public sector life insurer, there are 17

other private sector life insurers, most of them joint ventures between Indian groups

& global insurance giants.

Life Insurer in Public Sector

1. Life Insurance Corporation of India

Life Insurers in Private Sector

Metlife India Life Insurance

ICICI Prudential Life Insurance

Bajaj Allianz Life, Pranav, Surat 1

Max New York Life Insurance

Sahara Life Insurance

Tata AIG Life

HDFC Life

Birla Sunlife

SBI Life Insurance

Kotak Life Insurance

Aviva Life Insurance

Reliance Life Insurance Company Limited Formerly known as AMP

Sanmar LIC

ING Vysya Life Insurance

Shriram Life Insurance

Bharti Axa Life Insurance Co ltd

Future Generali Life Insurance Co ltd

IDBI Fortis Life Insurance Co ltd

AEGON Religare Life Insurance

DLF and Pramerica ( will soon Launch the opertions)

CANARA HSBC OBC LIFE INSURANCE COMPA

CHAPTER 3: COMPANY PROFILE

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Introduction

HDFC Life Insurance Company Limited . is one of Indias leading private

insurance companies, which offers a range of individual and group insurance

solutions? It is a joint venture between Housing Development Finance Corporation

Limited (HDFC Limited), Indias leading housing finance institutions and a Group

Company of the Life Plc. UK. As on February 28, 2009 HDFC Ltd. holds 72.43%

and Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture,

while the rest is held by others.

Key Strengths

Financial Expertise

As a joint venture of leading financial services groups, HDFC Life has the

financial expertise required to manage your long-term investments safely and

efficiently.

Range of SolutionsHDFC Life Insurance Company Limited have a range of individual and

group solutions, which can be easily customized to specific need. Their group

solutions have been designed to offer you complete flexibility combined with a low

charging structure.

Track Record So far

IT grosses premium income, for the yard ending March 31, 2008 stood at Rs.4,859

crores. As of 31 December, 2008 It new business premium income stood at

Rs.1,839.70 Crores.

The company has covered over 812,811 lives as on December 31, 2008.

WHY HDFC LIFE

Introduction

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HDFC Life believes that establishing a strong and ethical foundation is an

essential prerequisite for long-term sustainable growth. To ensure this, they have

concentrated their focus on expansion of branch network, organizing and efficient and

well trained sales force, and setting up appropriate systems and processes with

optimum use of technology. As all these areas form he basic infrastructure use for

establishing the highest possible customer service s.

It core values are drilled down to all levels of employees, as these are

inviolable. They continue to promote high integrity in business practices and shun

short cuts and unethical practices, as they wish to be perceived as an institution with

high moral insurance space was opened for private participation, they have

consistently focused on setting benchmarks in all aspect on insurance business. Being

the first private player to be registered with the IRDA and the first to issue a policy

on December 12, 2000, their differentiators are:

Strong promoter

HDFC Life is a strong, financially secure business supported by two strong

and secure promoters HDFC Ltd and Life. HDFC Ltds excellent brand strength

emerges from its unrelenting focus on corporate governance, high s of ethics and

clarity of vision. Life is a strong, financially secure business and a market leader in

the UK Life & Pension sector.

Preferred and trusted brand

Our brand has managed to set a new in the Indian life insurance

communication space. They were the first private life insurer to break the ice using

the idea of self-respect instead of death to convey their brand proposition ( Sar Utha

ke jiyo). Today, they are one of the few brands that customers recognize, like and

prefer to do business. Moreover, their brand thought, Sar Utha Ke Jijos, is the moste

recalled compaign in its category

.

Investment Philosophy

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They follow a conservative investment management philosophy to ensure that

their customers money is looked after well. The investment polices and actions are

regularly monitored by a formal Investment Committee comprising non-executive

directors and the Principal Officer & Executive Director.

As a life insurance company, they understand the customers have invested

their savings with them for the long term, with specific objectives in mind. Thus, their

investment focus is based on the primary objective of protecting and generating good,

consistent , and stable investment returns to match the investors long-term objective

and return expectations, irrespective of the market condition.

Need-based selling approach

Despite the critically of life insurance, sales sin the industry have been characterized

by over reliance on tax benefits and limited advise-based selling. their eight-step

structured sales process Disha however, helps customers understand their latent

needs at the first instance itself without focusing on product features or tax benefits.

Need- based selling process, Disha, the first of its kinds in the industry, looks at the

whole financial picture. Customers see a plan not piecemeal product selling.

Risk control framework

HDFC Life has fully implemented a risk control framework to ensure that all

types of risks ( not just financial) are identified and measured. These are regularly

reported to the board and this ensures that the company management and board

members are fully aware of any risks and the actions taken to ensure they are

mitigated.

Focus on training

Training is an integral part of their business strategy. Almost all employees have

undergone training to enhance their technical skills or the softer behavioral skills to

be able to deliver the service that their company has set for itself. Besides the

mandatory training that Financial Consultants have to undergo prior to being licensed,

they have developed and implemented various training modules covering various

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aspects including product knowledge, selling skills, objection handling skill and so

on.

Focus on long term values

HDFC Life does not focus in the business of ramping up the top line only, but to

create maximization of stakeholders value. Today, they are extremely satisfies with

the base that they have created for the long-term success of this company.

Transparent dealing

They are one of the few companies whose product details, pricing; clauses are clearly

communicated to help customers take the right decision.

Our Parentage

HDFC Limited

HDFC Limited Indias premier housing finance institution has assisted more

than 3.3 million families own a home, since its inception in 1977 across 2400 cities

and towns through its network of over 250 offices. It has international offices in

Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait

and Oman to assist NRIs and PIOs to own a home back in India. As of December

2008, the total asset size has crossed more than Rs. 95,000 crores including the

mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit

base of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors.

Customer Service and satisfaction has been the mainstay of the organization. HDFC

has set benchmarks for the Indian housing finance industry. Recognition for the

service to the sector has come from several national and international entities

including the World Bank that has lauded HDFC as a model housing finance

company for the developing countries. HDFC has undertaken a lot of consultancies

abroad assisting different countries including Egypt, Maldives, and Bangladesh in the

setting up of housing finance companies.

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Life Group ( Life plc and its subsidiaries)

The Life Group has been looking after the financial needs of customers for

over 180 years. It currently has a customer base of around 7 million people who rely

on the company for their insurance, pension, investment, banking and health-careneeds. Its investment manager currently administers 125 billion in assets. It is a

leading pensions provider in the UK, and is rated by & Poor's as 'strong' with a rating

of A+ and as 'good' with a rating of A1 by Moody's. Life was awarded the 'Best

Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it

was voted a 5 star life and pensions provider at the Financial Adviser Service

Awards for the last 10 years running. The '5 Star' accolade has also been awarded to

Life Investments for the last 10 years, and to Life Bank since its inception in 1998.

Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage

Magazine Awards in 2006.

Our Vision & Values

Our Vision

'The most successful and admired life insurance company, which means that we are

the most trusted company, the easiest to deal with, offer the best value for money, and

set the s in the industry'.

'The most obvious choice for all'.

Our Values

Values that we observe while we work:

Integrity

Innovation

Customer centric

People Care One for all and all for one

Team work

Joy and Simplicity

Sept 2008Received 2008 CIO Bold 100 and CIO Security Awards

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HDFC Life has received the 2008 CIO Bold 100 Award. This annual award

recognizes organizations that exemplify the highest level of operational and strategic

excellence in information technology. This year's award theme, The Bold 100,

recognized those executives and organizations that embraced great risk for the sake of

great reward.

HDFC Life has also been one of the five recipients of the Special 2008 CIO

Security Award aimed at CIOs, whose pioneering implementations have taken their

enterprise security to the next level. This award category identifies innovative and

groundbreaking deployment of technologies aimed at creating a secure business

infrastructure.

The company received the 2008 CIO Bold Award for its mobile workforce

portal and the CIO Security Award for its initiatives for a secure computing

environment, including identity management.

May 2008 Received PCQuest Best IT Implementation Award 2008

HDFC Life received the PCQuest Best IT Implementation Award 2008 for

Consultant Corner, the applications for its financial consultants, providing centralized

control over a vast geographical spread for key business units such as inventory,

training, licensing, etc

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HDFC Life has won the PCQuest Best IT Implementation Award for two

years consequently. Last year, the company received the award for Wonders, its path-

breaking implementation of an enterprise-wide workflow system.

March 2008 -Silver Abby at Goafest 2008

HDFC Life's radio spot for Pension Plans won a Silver Abby in the radio

writing craft category at the Goafest 2008 organised by the Advertising Agencies

Association of India (AAAI). The radio commercial Pata nahin chala touched

several changes in life in the blink of an eye through an old mans perspective. The

objective was drive awareness and ask people to invest in a pension plan to live life to

the fullest even after retirement, without compromising on ones self-respect

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

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

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

Advertisement survey conducted, for February 2008. HDFC 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 Award 2007

Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Life,

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

Qimpro Awards function. The award celebrates excellence in individual performance

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

global competition and expectations.

January 2008 - Sar Utha Ke Jiyo Among Indias 60 Glorious Advertising

Moments

HDFC Lifes advertising slogan honoured 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 Life is one of the first private

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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 Life the credit of bringing up one such glorious

advertising and marketing moment in the last 60 years.

Received CIO 'The Ingenius 100 2009' Award

HDFC Life has received the CIO The Ingenious 100 - 2009 Award, for

ATLAS (Agency Training Licensing and Servicing System). Additionally, the

company has received the CIO 100 Security Award 2009 for pioneering LANDesk

Management and Security Suite security implementation and taking its security to a

higher level of technological excellence.

HDFC has received the CIO 100 Award for the third consecutive year. It had

received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award

for our initiatives for a secure computing environment, including Sesame - Identity

and Access Management. In 2007, the company received CIO 100 award for

Wonders and a Special Award in Storage category.

CIO magazine has a long tradition of honoring leading companies for

business and technology leadership and innovations through its flagship award

program CIO 100. Its a celebration of 100 organizations (and the people within

them) that are using IT in innovative ways to deliver business value, whether by

creating competitive advantage, optimizing business processes, enabling growth or

improving relationships with customers.

Received Diamond EDGE Award 2009

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HDFC Life has received the Diamond EDGE Award 2009 for its mobile

workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth and

Excellence (using IT) is an initiative by the ,Network Computing magazine to

identify, recognise, and honour end-user companies in India that have demonstratedthe best use of technology to solve a business problem, improve business

competitiveness, and deliver quantifiable ROI to stakeholders.

Network Computing magazine is part of CMP Technology, which brings

more than 100 IT media brands to more than 18 million technology and business

decision makers worldwide.

'YoungStar Super' Voted 'Product of the Year 2010'

HDFC Lifes YoungStar Super has been voted Product of the Year 2010 in

the 'Insurance' category by more than 30,000 consumers nationwide across 36

markets. YoungStar Super is an unit linked Children Plan with unique benefits such

as bumper additions, double and triple benefits, attractive allocations rates, and seven

different funds.

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The consumer study on product innovation in India was conducted by A C

Nielsen, the leading global research firm. Entries were accepted from products that

demonstrate innovation in their product function, design, packaging or process or any

other specified form. Entries were then filtered by a jury of distinguished industry

professionals to ensure that the products meet the innovation criteria before they were

passed on to the consumer votes/survey round. Product of the Year is an

Internationally Recognised that celebrates and rewards the best innovations in

consumer products and services. The Product of the Year is selected through an

independent consumer survey across the country in 26 countries for the past 20 years.

Brief Profile of The Board of Directors

Mr. Deepak S. Parekh is the Chairman of the Company. He is also

the Chairman and Director of Housing Development Finance

Corporation Limited (HDFC Limited). He joined HDFC Limited in

a senior management position in 1978. He was inducted as a whole-

time director of HDFC Limited in 1985 and was appointed as its

Chairman in 1993. Mr. Parekh is a Fellow of the Institute of

Chartered Accountants (England & Wales).

Mr. Keki M. Mistry joined the Board of Directors of the Company in

December, 2000. He is currently the Vice Chairman and Chief

Executive Officer of HDFC Limited. He joined HDFC Limited in

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1981 and became an Executive Director in 1993. He was appointed as

its Managing Director in 2000. Mr. Mistry is a Fellow of the Institute

of Chartered Accountants of India and a member of the Michigan

Association of Certified Public Accountants.

Ms. Renu S. Karnad is the Managing Director of HDFC Limited.

She is a graduate in Law and holds a Master's degree in Economics

from Delhi University. She has been employed with HDFC Limited

since 1978 and was appointed as the Executive Director in 2000 and

Deputy Managing Director in 2007. She is responsible for overseeing

all aspects of lending operations of HDFC Limited.

Mr. David Nish joined Life on 1 November 2006 as Group

Finance Director and remained in that position until December

2009. He is appointed as the Executive Europe on 1st January 2010.

He was awarded the Scottish Business Awards Finance Director of

the Year and from 2004 to 2005. He is a member of the Institute of

Chartered Accountants of Scotland. He joined the Board of

Directors in February 2010.

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Mr. Nathan Parnaby is appointed as the Chief Executive, Europe

& Asia of Life in the year 2010. Nathan joined Life in 1982 as

Investment Manager, responsible for all UK net funds. He was

appointed a Director of the Life Investments board. He is a

Mathematics graduate from Oxford University and the Member of

the Securities Institute. He joined the Board of Directors in

December 2009.

Mr. Norman K. Skeoch is currently the Chief Executive in Life

Investments Limited and is responsible for overseeing Investment

Process & Chief Executive Officer Function. Prior to this, Mr.

Skeoch was working with M/s. James Capel & Co. holding the

positions of UK Economist, Chief Economist, Executive Director,

Director of Controls and Strategy HSBS Securities and Managing

Director International Equities. He was also responsible for

Economic and Investment Strategy research produced on a

worldwide basis. Mr. Skeoch joined the Board of Directors in

November 2005.

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Mr. Gautam R. Divan is a practising Chartered Accountant and is a

Fellow of the Institute of Chartered Accountants of India. Mr. Divan

was the Former Chairman and Managing Committee Member of

Midsnell Group International, an International Association of

Independent Accounting Firms and has authored several papers of

professional interest. Mr. Divan has wide experience in auditing

accounts of large public limited companies and nationalised banks,

financial and taxation planning of individuals and limited companies

and also has substantial experience in structuring overseas investments

to and from India.

Mr. Ranjan Pant is a global Management Consultant advising

CEO/Boards on Strategy and Change Management. Mr. Pant, until

2002 was a Partner & Vice-President at Bain & Company, Inc.,

Boston, where he led the worldwide Utility Practice. He was also

Director, Corporate Business Development at General Electric

headquarters in Fairfield, USA. Mr. Pant has an MBA from The

Wharton School and BE (Honours) from Birla Institute of

Technology and Sciences.

Mr. Ravi Narain is the Managing Director & CEO of National

Stock Exchange of India Limited. Mr. Ravi Narain was a member of

the core team to set-up the Securities & Exchange Board of India

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(SEBI) and is also associated with various committees of SEBI and

the Reserve Bank of India (RBI).

Mr. A. K.T. Chari has joined HDFC Life as a Director on March

10, 2010. Mr. Chari has completed his Electrical Engineering from

Madras University in 1962. He is associated with Infrastructure

Development Finance Company Ltd. (IDFC) for last 11 years.

Currently he is handling project finance for infrastructure projects at

IDFC. Prior to this he was associated with Infrastructure

Development Bank of India (IDBI) from 1975 to 1999.

Mr. Gerald E. Grimstone was appointed Chairman of Life in May

2007, having been Deputy Chairman since March 2006. He became

a director of the Life Assurance Company in July 2003. He is also

Chairman of Candover Investments plc and was appointed as one of

the UKs Business Ambassadors by the Prime Minister in January

2009. Gerry held senior positions within the Department of Health

and Social Security and HM Treasury until 1986. He then spent 13

years with Schroders in London, Hong Kong and New York, and

was Vice Chairman of Schroders worldwide investment banking

activities from 1998 to 1999. He is the Alternate Director to Mr.

David Nish.

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Mr. Michael G Connarty is responsible for Life's investments in

life assurance Joint Ventures in India and China. He holds a degree

in Law and MBA. He has worked with Life for 33 years in

managerial positions covering a number of fields such as Pensions

law, International Marketing, Operational Management, Strategy,

Risk, Compliance, Company Secretarial and Banking. He has acted

as Project Manager for the start-up project of the Company in 2000.

He is the Alternate Director to Mr. Norman K. Skeoch.

Mr. Amitabh Chaudhry is the MD and CEO of HDFC Life.

Before joining HDFC Life, he was the MD and CEO of Infosys

BPO and was also heading an Independent Validation Services unit

in Infosys Technologies. He started his career with Bank of America

delivering diverse roles ranging from Head of Technology

Investment Banking for Asia, Regional Finance Head for Wholesale

Banking and Global Markets and Chief Finance Officer of Bank of

America (India). He moved to Credit Lyonnais Securities in 2001 in

Singapore where he headed their investment banking franchise for

South East Asia and structured finance practice for Asia before

joining Infosys BPO in 2005. Mr. Chaudhry completed his

Engineering in 1985 from Birla Institute of Technology and

Science, Pilani and MBA in 1987 from IIM, Ahmedabad.

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Mr. Paresh Parasnis is the Executive Director and Chief Operating

Officer of the company. A fellow of the Institute of Chartered

Accountants of India, he has been associated with the HDFC Group

since 1984. During his 16-year tenure at HDFC Limited, he was

responsible for driving and spearheading several key initiatives. As

one of the founding members of HDFC life, Mr. Parasnis has been

responsible for setting up branches, driving sales and servicing

strategy, leading recruitment, contributing to product launches and

performance management system, overseeing new business and

claims settlement, customer interactions etc.

Associate Companies

HDFC Limited

HDFC Bank

HDFC Mutual Fund

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HDFC Sales

HDFC ERGO General Insurance

Other Companies

HDFC Trustee Company Ltd.

GRUH Finance Ltd.

HDFC Developers Ltd.

HDFC Property Ventures Ltd.

HDFC Ventures Trustee Company Ltd.

HDFC Investments Ltd.

HDFC Holdings Ltd.

Credit Information Bureau (India) Ltd

HDFC Securities

Bancassurance Partners

HDFC Bank

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Saraswat Bank

HDFCSL Milestone

2008

2007

2006

Archive

The year witnessed the launch of My Account, a web-based facility with variouspolicy servicing options such as switch, premium redirection to be executed by

clients, without recourse to visiting a brancha as against a regulatory requirement of

writing 18% of all policies in rural areas, the company issued over 1, 21,000 policies

accounting for more than 23% of all policies issued during the year.

The company had been awarded the Intelligent Enterprise Award by the Express

Computer Magazine Part of the Indian Express Group, for investing in workflow

and imaging technology which helped in increasing volumes without affecting service

s.

Was selected as the '4Ps Power Brand 2006', for being one of India's Top 25

'Most Innovative Companies' in an exclusive survey conducted by ICMR (Indian

Council of Market Research) and 4Ps - Business and Marketing (a Business and

Marketing magazine published by Planman Media).

Biggest NGO covered on 28th March 2006 with 14000 lives

HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-

operative banks in the rural areas continued to increase its focus on quality service, by

putting in place a robust mechanism to capture Voice of the Customer through

service audits across its offices. This was complemented by use of technology that

enabled capture of all interactions with customers across all touch points

Sar Utha Ke Jiyo was honoured as Among Indias 60 Glorious Advertising

Moments. The advertisements of the company were ranked 6th amongst The 10 most

effective Advertisements in September 2007.

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Received the PCQuest Best IT Implementation Award 2007 for Wonders, its

path-breaking implementation of an enterprise-wide workflow system. In addition the

company also bagged the EMC storage award for being the most innovative users of

storage and storage management.

Pension Plan Tops Mints Survey of Best TV Ads.

HDFC Lifes advertising created high awareness for the brand and bagged 2

silver and 1 bronze awards at the ADFEST 2007 National Awards organised by the

Advertising Agencies Association of India (AAAI). The 3 awards are the highest won

by any single brand in the financial services business (including banking, mutual

fund, insurance and other financial services).

Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006

according to a study conducted by the Brand Equity Economic Times, the leading

business publication of India.

Received the PCQuest Best IT Implementation Award 2008 for Consultant

Corner, the applications for its financial consultants, providing centralized control

over a vast geographical spread for key business units such as inventory, training,

licensing, etc.

Received the 2008 CIO Bold 100 Award for its mobile workforce portal and

the Special 2008 CIO Security Award for a secure computing environment, including

identity management respectively. Mr. Deepak M Satwalekar Awarded QIMPRO

Gold Award.

Corporate Governance

Introduction

The Corporate Governance Policy provides the framework under which the

Board of Directors operates. It includes its corporate structure, culture, policies and

the manner in which it deals with various stakeholders. The governance policies

address the responsibilities, authority and administration of the Board of Directors.

The policies also include the responsibilities of the Principal Officer and define the

reporting relationships. Timely and accurate disclosure of information regarding the

financial situation, performance, board constitution, ownership of the company etc. is

an important part of corporate governance. Corporate governance arrangements are

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those through which an organisation directs and controls itself and the people

associated with it.

COMPETITORS DETAILS

LIFE INSURANCE CORPORATION OF INDIA

Every day we wake up to the fact that more than 250 million lives are part of our

family called LIC. We are humbled by the magnitude of the responsibility we carry

and realise the lives that are associated with us are very valuable indeed.

Though this journey started over five decades ago, we are still conscious of the fact

that, while insurance may be a business for us, being part of millions of lives everyday for the past 52 years has been a process called TRUST

History of LIC

Life Insurance in its modern form came to India from England in the year

1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first

life insurance company on Indian Soil. All the insurance companies established

during that period were brought up with the purpose of looking after the needs of

European community and Indian natives were not being insured by these companies.

However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign

life insurance companies started insuring Indian lives. But Indian lives were being

treated as sub- lives and heavy extra premiums were being charged on them. Bombay

Mutual Life Assurance Society heralded the birth of first Indian life insurance

company in the year 1870, and covered Indian lives at normal rates. Starting as Indian

enterprise with highly patriotic motives, insurance companies came into existence tocarry the message of insurance and social security through insurance to various

sectors of society. Bharat Insurance Company (1896) was also one of such companies

inspired by nationalism.

The Life Insurance Companies Act, 1912 made it necessary that the premium

rate tables and periodical valuations of companies should be certified by an actuary.

But the Act discriminated between foreign and Indian companies on many accounts,

putting the Indian companies at a disadvantage.

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The demand for nationalization of life insurance industry was made

repeatedly in the past but it gathered momentum in 1944 when a bill to amend the

Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it

was much later on the 19th of January, 1956, that life insurance in India was

nationalized. About 154 Indian insurance companies, 16 non-Indian companies and

75 provident were operating in India at the time of nationalization. Nationalization

was accomplished in two stages; initially the management of the companies was

taken over by means of an Ordinance, and later, the ownership too by means of a

comprehensive bill.

The Parliament of India passed the Life Insurance Corporation Act on the

19th of June 1956, and the Life Insurance Corporation of India was created on 1st

September, 1956, with the objective of spreading life insurance much more widely

and in particular to the rural areas with a view to reach all insurable persons in the

country, providing them adequate financial cover at a reasonable cost.

MAX NEW YORK LIFE INSURANCE

Max New York Life Insurance Company Ltd. is a joint venture between

Max India Limited, one of India's leading multi-business corporations and New York

Life International, the international arm of New York Life, a Fortune 100 company.

The company has positioned itself on the quality platform.

In line with its vision to be the most admired life insurance company in India,

it has developed a strong corporate governance model based on the core values of

excellence, honesty, knowledge, caring, integrity and teamwork.

Incorporated in 2000, Max New York Life started commercial operation in

April 2001. In line with its values of financial responsibility, Max New York Life has

adopted prudent financial practices to ensure safety of policyholder's funds. The

Company's paid up capital as on 30th April, 2009 is Rs 1,968 crore.

Max New York Life has multi-channel distribution spread across the country. Agency

distribution is the primary channel complemented by partnership distribution,

bancassurance, alliance marketing and dedicated distribution for emerging markets.

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The Company places a lot of emphasis on its selection process for agent advisors,

which comprises four stages - screening, psychometric test, career seminar and final

interview. The agent advisors are trained in-house to ensure optimal control on

quality of training. The company currently has around 72,813 agent advisors at 705

offices across 389 cities. The company also has 36 referral tie-ups with banks, 24

partnership distribution and alliance marketing relationships each. Max New York

Life has put in place a unique hub and spoke model of distribution to deepen our rural

penetration. This is the first time such a model has been put in place for rural

marketing of insurance. The company has 139 offices dedicated to rural areas.

New York Life offers a suite of flexible products. It now has 33 products

covering both life and health insurance and 8 riders that can be customized to over

800 combinations enabling customers to choose the policy that best fits their need.

Besides this, the company offers 6 products and 7 riders in group insurance business.

The company currently has more than 10,454 employees.

RELIANCE LIFE INSURANCE

Few men in history have made as dramatic a contribution to their countrys

economic fortunes as did the founder of Reliance, Shri. Dhirubhai H Ambani.

Fewer still have left behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true

genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud

patriot, the leader of men, the architect of Indias capital markets, the champion of

shareholder interest.

But the role Dhirubhai cherished most was perhaps that of Indias greatest

wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias

largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital

of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he

converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement

which earned Reliance a place on the global Fortune 500 list, the first ever Indian

private company to do so.

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Dhirubhai is widely regarded as the father of Indias capital markets. In 1977,

when Reliance Textile Industries Limited first went public, the Indian stock market

was a place patronised by a small club of elite investors which dabbled in a handful of

stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail

investors to participate in the unfolding Reliance story and put their hard-earned

money in the Reliance Textile IPO, promising them, in exchange for their trust,

substantial return on their investments. It was to be the start of one of great stories of

mutual respect and reciprocal gain in the Indian markets.

Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the

greatest growth stories in corporate history anywhere in the world, and went on to

become Indias largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the

ordinary shareholder uppermost in mind, in the process making millionaires out of

many of the initial investors in the Reliance stock, and creating one of the worlds

largest shareholder families.

BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest

Insurance Company and Bajaj finersy. a leading insurance conglomerate globally and

one of the largest asset managers in the world, managing assets worth over a Trillion

(Over INR. 55, 00,000 Crores). Allianz SE has over 119 years of financial experience

and is present in over 70 countries around the world.

At Bajaj Allianz Life Insurance, customer delight is our guiding principle.

Our business philosophy is to ensure excellent insurance and investment solutions by

offering customised products, supported by the best technology.

ICICI PRUDENTIAL LIFE INSURANCE\

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank - one of India's foremost financial services companies-and Prudential plc - a

leading international financial services group headquartered in the United Kingdom.

Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of

74% and Prudentialplcholding26%.

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We began our operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). Today, our nation-wide reach

includes over 1,900 branches (inclusive of 1,074 micro-offices), over 210,000

advisors and 7 bancassurance parterns.

For three years in a row, ICICI Prudential has been voted as India's Most

Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg

survey of 'Most Trusted Brands'. As we grow our distribution, product range and

customer base, we continue to tirelessly uphold our commitment to deliver world-

class financial solutions to customers all over India.

Birla Sun Life Insurance

Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a

joint venture between the Aditya Birla Group, a well known and trusted name

globally amongst Indian conglomerates and Sun Life Financial Inc, leading

international financial services organization from Canada. The local knowledge of the

Aditya Birla Group combined with the domain expertise of Sun Life Financial Inc.,

offers a formidable protection for its customers future.

With an experience of over 9 years, BSLI has contributed significantly to the

growth and development of the life insurance industry in India and currently ranks

amongst the top 5 private life insurance companies in the country.

Known for its innovation and creating industry benchmarks, BSLI has several

firsts to its credit. It was the first Indian Insurance Company to introduce Free Look

Period and the same was made mandatory by IRDA for all other life insurance

companies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance

plans amongst the private players in India. To establish credibility and further

transparency, BSLI also enjoys the prestige to be the originator of practice to disclose

portfolio on monthly basis. These category development initiatives have helped BSLI

be closer to its policy holders expectations, which gets further accentuated by the

complete bouquet of insurance products (viz. pure term plan, life stage products,

health plan and retirement plan) that the company offers.

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Add to this, the extensive reach through its network of 600 branches and

1,75,000 empanelled advisors. This impressive combination of domain expertise,

product range, reach and ears on ground, helped BSLI cover more than 2 million lives

since it commenced operations and establish a customer base spread across more than

1500 towns and cities in India. To ensure that our customers have an impeccable

experience, BSLI has ensured that it has lowest outstanding claims ratio of 0.00% for

FY 2008-09. Additionally, BSLI has the best Turn Around Time according to LOMA

on all claims Parameters. Such services are well supported by sound financials that

the Company has. The AUM of BSLI stood at Rs. 8165 crs as on February 28, 2009,

while as on March 31, 2009, the company has a robust capital base ofRs. 2000 crs.

CHAPTER 4 : RESEARCH METHODOLOGY

Title of the study:

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A study on consumer behavior towards HDFC life.

Objective of the study

To find out the consumer behavior towards HDFC life.

To find out the level of satisfaction towards HDFC life.

To compare HDFC life with its main competitors.

To find out the factors that influences the buying of HDFC life product.

To find out the strength and weakness of HDFC life.

To find out the requirements and problems of the customer.

To suggest the company for better improvement.

Methodology

Research Design

A research design is a logical systematic plan prepared for directing a research

study. It specifies the objectives of the study, objectives. It constitutes the blue print

for the collection, measurement and analysis of the data. It is the plan, structure and

strategy of investigation conceived so as to obtain answers to research questions .The

plan is the overall scheme or program of research. A research design is the program

that guides the investigator in the process of collecting, analyzing and interpreting

observations.

Type of research

In this project, Descriptive research was used. Descriptive research is a fact

finding investigation with adequate interpretation. It aims at identifying the various

characteristics of a community or institution or problem under study and also aims at

a classification of the range of elements comprising the subject matter of the study. It

contributes to the development of a young science and useful in verifying focal

concepts through empirical observation. It can highlight important methodological

aspects of data collection and interpretation. The information obtained may be useful

for predication about areas of social life outside the boundaries of the research. They

are valuable in providing facts needed for planning social action program.

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Research Technique need

Survey method was used in this project; it is a fact finding study involving

collection of data directly from a population or a sample thereof at particular time. Its

purpose is to information, explains phenomena, to make comparisons and concerned

with cause and effect relationships can be useful for making predications.

Sampling technique:

In this study, the sampling technique adopted was non probability sampling.

Sample size:

The sample size of the study is 22 which include employees, self-employed,

housewife, retired from across Bangalore

Locations of the study:

The study was conducted in Bangalore city.

Research Tools used:

Questionnaire was used as research tools in this product.

Sources of Data:

The main sources of data collection are of two types:

Primary data

Secondary data

Primary data:

Primary sources are original sources from which the researcher directly collects

data that have not been previously collected e.g collection of data directly by the

researcher on brand awareness, brand preference, brand loyalty and other aspects of

consumer behavior from a sample of consumers by interviewing through various

methods such as observation, interviewing, mailing etc, primary data was collected

through:

Personal Interview

Questionnaires

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Observations

Experiments

Secondary Data:These are sources containing data which have been collected and complied for

another purpose. The secondary sources consists of readily compendia and already

compiled statistical statements and reports whose data may be used by researchers for

their studies.

The secondary data for the study was collected trough various sources such as:

Company website Magazines

Books

Newpaper

Duration of the study:

The project work was complete within 6 weeks.

Limitation of the study:

The study was conducted only on 22 respondents.

The study was conducted only in Bangalore city

There is chance for bias in the information given by the respondents

Analysis and interpretation of the data:

After collection of data, the result are depicted in tables and graph

CHAPTER 5 : DATA ANALYSIS AND

INTERPRETATION

Table showing gender of respondents:

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Table 1

Gender No. of respondents Percentage

Male 20 91

Female 2 9

Total 22 100

Chart 1

Female=

9%

Male=

91%

Findings:Male are more interest in life insurance than female.

Analysis:91% of the respondents are male and 9% are female.

Table showing respondents age

Table No. 2

Age (Years ) No. of respondents Percentage

20-30 13 59

30-40 6 27

40-50 3 14

Total 22 100

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Chart No. 2

20-30=

59%

30-40=

27%

40-50=

14%

Finding: Persons between 20-30 years are the most interested person in life

insurance and bought more policy than others.

Analysis: Out of 22 respondent, 59% are 20-30 years old, 27% are 30-40 years old

and 14% are 40-50 years old.

Table showing respondents occupation

Table No. 3

Occupation No. of respondents Percentage

Employees 20 90

Self employees 1 5

Retired 1 5

Total 22 100

Chart No.3

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Retired=

5%

Self-

employee

s=

5%

employee

s=

90%

Findings: Those who are working in corporate bought more policy compare to

others.

Analysis:Out of 22 respondents, 90% are employees, 5% are self employed and

5% are retired persons.

Table showing respondents monthly income

Table No. 4

Monthly income (Rs.) No. of respondents Percentage

Less than 10,000 1 5

10,000-20,000 12 54

20,000-30,000 2 9

Above 30,000 7 32

Total 22 100

Chart No. 4

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20k-30k=

9%

10k-20k=

54%

Above 30k=

32%

Less than

10k=

5%

Findings:Person who earned around Rs. 20,000 monthly are the chief buyers of

policy.

Analysis: The above table and chart shows that out of 22 respondents, 5% belongs

to the income category less than 10,000, 54% belongs to the income category of

10,000 20,000, 9% belongs to the income category of 20,000 30,000 and the

remaining 32% belongs to the income category of above 30,000.

Table showing how consumers came to about HDFCSL

Table No.5

Source No of respondents Percentage

Agents 3 14

Friends 6 27Advertisement 7 32

Family 2 9

Others 4 18

Total 22 100

Chart No.5

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Others= 18%

Family= 9%

Advertisements=

32%

Friends= 27%

Agent= 14%

Findings: Advertisement is the best method for attracting consumers and friends

are also very important source for the consumers.

Analysis: The above table and chart shows that out of 22 respondents, 14% came to

know HDFCSL from agents, 27% are from their friends, 32% are from

advertisements, 9% are from family members and 18% from others.

Table showing whom do consumer consult before making

investment?

Table No. 6

Source No of respondents Percentage

Family 9 41Friends 4 18

Agents 6 27

Others 3 14

Total 22 100

Chart No.6

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Family=

41%

Agents=

27%

Others=

14%

Friends=

18%

Findings:Family members are the most important factors in decision making for

consumers before buying the products and agents come to the second place.

Analysis:The above table and chart shows that out of 22 respondents , 41% consult

their family,18% consult their friends, 27% consult agent and the remaining 14%

consult with others. Table showing how long respondents are customers of HDFC

Life?

Table No. 7

Years No of respondents PercentageLess than 1 9 41

1-3 7 32

3-5 4 18

More than 5 2 9Total 22 100

Chart No. 7

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less than 1

year=41%

more than 5

years=

9%

1-3 years =

32%

3-5 years=

18%

Finding: Majority of the respondents are the consumers of HDFC SL less than oneyear.

Analysis: The above table and chart shows that out of 22 respondents, 41% has

been customer of HDFCSL less than 1 year, 32% are between 1-3 years

customer, 18% are between 3-5 years customer and the remaining 9% has

been more than 5 years customer.

Table showing how respondents feel about the process of HDFC

Life?

Table No. 8

Particulars No of respondents Percentage

Yes 12 54

No 5 23

Cant say 5 23

Total 22 100

Chart No. 8

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Yes=

54%

Cant say=

23%

No=

23%

Finding : Majority of the respondent think that the process of HDFCSL is easy.

Analysis : The above table and chart shows that asking how they think the process

of HDFCSL is easy or not, out of 22 respondents, 54% said the

process of HDFC Life is easy, 23% said NO and the

remaining 23% replied Cant say

Table showing do respondents have any other insurance policy in

other insurance company ?

Table No .9

Answers No of respondents PercentageYes 15 68

No 7 32

Total 22 100

Chart No. 9

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No=

32%

Yes=

68%

Findings: Majority of the Consumer are also having in other insurance company.

Analysis: The above table and chart shows that, out of 22 respondents, 68% said

that they also have insurance policy in other insurance company and

the remaining 32% said that they dont have any insurance policy in

other insurance company

Table showing how do respondents rated customer service of

HDFCSL company ?

Table No . 10

Category No of respondents Percentage

Below 25% 3 1425% - 50% 4 18

50% - 75% 8 36

75%-100% 7 32

Total 22 100

Chart No . 10

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Below 25%=

14%

75% - 100%=

32%

25% - 50%=

18%

50% - 75%=

36%

Finding : Majority of the respondents are satisfied about customer service of

HDFCSL.

Analysis : The above table and chart shows that out of 22 respondent, 14% rated

customer service of HDFCSL below 25%, 18% rated between 25% -50%, 36%

rated between 50% -75% and remaining 32% rated between 75% -100

Table showing what kind of product does respondents purchased

Table No.11

Product No of respondents PercentageEndowment Plan 11 49

Retirement plan 1 5

Children plan 5 23Insurance plan 5 23

Total 22 100

Chart No .11

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Insunrance

plan=

23%

Retirement

plan=

5%

Endowment pl

49%

Children

plan=

23%

Finding: Endowment plan is the most preferable plan for the consumers, it gives

customers end of the term good returns and survival benefit and childrens plan

comes the second place.

Analysis: The above table and chart shows that out of 22 respondents, 49% bought

endowment plan, 5% bought retirement plan, 23% bought children plan and

the remaining 23% bought insurance plan for risk cover & protection.

Table showing the satisfaction level of consumers

Table No. 12

Satisfaction level No of respondents PercentageSatisfied 16 72

Dissatisfied 4 18

Highly Dissatisfied 1 5

Not sure 1 5Total 22 100

Chart No .12

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Dissatisfied=

18%

Highlydissatisfie

d=

5%Not sure =

5%

Satisfied=

72%

Finding: Majority of the respondent are satisfied about their expectation of the

products.

Analysis : The above table and chart shows that out of 22 respondents, 72% are

satisfied consumers, 18% are dissatisfied consumers, 5% are highly dissatisfied and

the remaining 5% are not sure about their satisfaction.

Table showing what factors made consumers invest in HDFCSL

Table No . 13

Category No of respondents PercentageTax benefits 8 36

Future needs 10 45

Safety 2 9

Risk cover 1 5

Others 1 5Total 22 100

Chart No. 13

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Risk cover=

5%

Future Needs=

45%

Safety=

9%

Others=

5%

Tax Benefits=

36%

Finding: Majority of the respondents invest their money for future needs and tax

benefits are the second reason for future expected events.

Analysis : The above table and chart shows that out of 22 respondents, 36% invest

their hard and earn money in order to get tax benefits, 45% invests for secure there

future needs, 9% invests for their safety, 5% invest for risk cover and the remaining

5% invests for other reasons.

Table showing how happy are consumer about premium rate they

are paying

Table No. 14

Particulars No of respondents PercentageYes 12 54

No 5 23

Cant say 5 23Total 22 100

Chart No. 14

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Yes=

54%

No=

23%

Cant say=

23%

Finding: Majority of the respondents are happy about premium rate they arepaying

Analysis: The above table and chart shows that asking whether consumers are

happy or not about premium rate they are paying,54% respondents are happy, 23%

respondents are not happy and the remaining 23% cant say whether they are happy

or not.

Table showing consumers opinion about if they were to take

another policy, would they take the policy of the same company or

not

Table no .15

Particulars No of respondents Percentage

Yes 7 32

No 8 36

Cant say 7 32

Total 22 100

Chart No. 15

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No =

36%

Yes =32%

Cant say =

32%

Finding: Many of the respondents will not purchase again from the same company

i,e. HDFC SL if they have were to take another policy that means they dont want to

invest in only one company

Analysis: The above table and chart shows that 32% respondents will take the

policy of HDFCSL if they were to take the policy, 36% will not purchased again

from HDFCSL and the remaining 32% respondent cant say whether they will buy

again or not.

Table showing whether consumer recommends others to buy

HDFCSL product or not

Table No.16

Particulars No of respondents PercentageYes 14 64

No 4 18

Cant say 4 18

Total 22 100

Chart No .16

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Yes=

64%

Documents

Hdfcsl Final Project