Project report on “A Detailed study of Various life Insurances Schemes provided by HDFC Standard Life Insurance and their Analysis

7/29/2019 Project report on A Detailed study of Various life Insurances Schemes provided by HDFC Standard Life Insurance a

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Project report on

A Detailed study of Various life Insurances Schemes provided by

HDFC Standard Life Insurance and their Analysis

Submitted in partial fulfillment of requirement ofDegree of M.B.A (I.C)

SUBMITTED BY:

ROZY RANI

Roll No. 322

M.B.A (I.C) 6TH

Smst

PUNJABI UNIVERSITY PATIALA

BABA DHIAN DASS NIEGHBOURHOOD CAMPUS

(JHUNIR)

SESSION: 2010-2011


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TABLE OF CONTENTS

Title Page no.

Chapter-1

Industry profile 6-7

Company profile 8-9

Research objectives 10

Vision& mission 11

Values 12

Key players 13

Group companies 13

Joint venture 14-16Competitors 17

About insurance 18-26

About products 26-29

Chapter-2

Research methodology 30-31

Chapter-3

Data analysis and interpretation 32-46

Swot analysis 47

Finding 48Limitations 49

Conclusion 50

Recommendation & suggestions 51

Chapter-4

Questionnaire 52-53

Bibliography 54


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ACKNOWLEDGEMENT

The project on Various life Insurances Schemes provided by HDFC Standard Life

Insurance and their Analysis is an outcome of my research. For the completion

of this project I get an opportunity to express my deep gratitude to all those who helped me in

making this report.

First of all I would like to thank The Almighty for his blessing for completing this project

successfully.

I would like to extend my sincere thanks to Mrs. Gitika sajjanhar (sales development manager

of HDFC life insurance Company) and Mr. Vikas(Branch Manager of HDFC life insurance

Company) for providing me articulate guidance and ceaseless encouragement throughout my

training.

Last but not the least, I also express my grateful thanks to respondents for giving their valuable

time to make this project to success.

Rozy Rani


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DECLARATION

I hereby declare that his project report entitled Various life insurance schemes provided by

HDFC life insurance held at janurary, 2011, is the result of Original work Carried

out in intensive study of the field, for the award of the Degree of Bachelor in BUSINESS

ADMINISTRATION.

This Report has not been copied from anywhere, up to the best of my belief and knowledge. It

has not been submitted anywhere else for Award of any other Degree/diploma.


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EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum growth

and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-

80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attractsme to enter in this sector and HDFC Standard Life Insurance Company Ltd has given me theopportunity to work and get experience in highly competitive and enhancing sector.

The success story of good market share of different market organizations depends upon the

availability of the product and services near to the customer, which can be distributed through a

distribution channel. In Insurance sector, distribution channel includes only agents or agency

holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX

etc have adequate agents in the market they can capture big market as compared to the other

companies.Agents are the only way for a company of Insurance sector through which policies and benefitsof the company can be explained to the customer


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Chapter -1

INDUSTRY PROFILE

INSURANCE:

Insurance can be defined as assurance for uncertainty. Insurance is about something going

wrong. Its often about things going right.; One of the Wonders of human nature is that we never

believe anything can actually go wrong.

The insurance sector in India has come a full circle from being an open competitive market to

nationalization and back to liberalized market again. Tracking the development in Indian

insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

The business of life insurance in Indian in its existing form started in India in the year 1818 with

the establishment of Oriental Life. Insurance Company in Calcutta. Some of the important

milestones in life insurance business in India are.

1912: The Indian Life insurance Companies Act enacted as first statue to regulate the life

insurance business.

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

statistical information about life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the insurance Act with the objective of

protecting the interests of the insuring public.


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1965: 245 Indian and foreign insurers and provident societies take 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.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in

December 1999. The IRDA since its incorporation as a statutory body in April 2000 has

fastidiously such to its schedule of framing regulations and registering the private sector

insurance companies.

The other d4ecisoin taken simultaneously to provide the supporting systems to the insurance

sector and in particular the life insurance companies was the launch of the IRDA online service

for issue and renewal of licenses to agents.


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COMPANY PROFILE

HDFC Standard Life Insurance Company Ltd.

HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged asthe largest residential mortgage finance institution in the country The corporation has had aseries of share issues raising its capital to Rs. 119 crores. The gross premium income for the yearending March 31, 2010 stood at Rs. 2, 856 crores and new business premium income at Rs.1,624 crores. The company has covered over 8,77,000 lives year ending March 31, 2010.

HDFC operates through almost 450 locations throughout the country with its corporate headquarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE, with serviceassociates in Kuwait, Oman and Qatar.

HDFC is the largest housing Company in India for the last 27 years.

SNAPSHOT-I

Incorporated in 1977 as the first specialized mortgage company in India.

Almost 90% of initial shareholding in the hands of domestic intuitions and retail

investors. Current 77% of shares held by foreign institutional investors.

Besides the core business of mortgage HDFC has evolved into a financial conglomerate

with holdings In:

HDFC Standard Life insurance Company- HDFC holds 78.07 %.

HDFC Asset Management CompanyHDFC holds 50.1%

HDFC Bank- HDFC holds 22.25%.

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

HDFC Chubb General Insurance CompanyHDFC holds 74%.


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SNAPSHOT-II

Loan Approvals Rs. 805 billion.

(up to Dec 2010) (US $ 18.30 bn.)

Loan Disbursements Rs.669 billion

(up to Dec. 2010) (US $ 15.20 bn)

Housing Units Financed 2.5 million.

Distribution

o Offices 181

o Outreach Programs 90


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Research Objectives

Primary Objectives

To know the awareness of people in various investments.

To know which institutions people prefer for their investment? Either they go for

Private institutions or Government Institutions?

To know what are the expectations of people from their investments?

To know about the peoples satisfaction. Are they satisfied with their investments,

returns they are earning, or they want to change their investment plans? To know what type of returns they expect?

To know the suggestions about the investment plans.

Secondary Objectives

To do SWOT analysis of HDFC Standard Life.


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VISION STATEMENT

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

we are the most trusted company, the easiest to deal with, offer the vest values for

money, and easiest the standards in the industry, In short, The most obvious choice

for all.

Our Mission:

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

largest or the most productive company in the market, rather it is a combination of several things

like

Coustomer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standeards increasing market share


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VALUES

Integrity

Innovation

Customer centric.

People care.

Team work.

Joy and Simplicity.


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KEY PLAYER

Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman 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 Executive Chairman in 1993. He is the Chief Executive

Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants

(England & Wales)

Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since

November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr.

Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology,

Bombay and a Masters Degree in Business Administration from The American University,

Washington DC.

GROUP COMPANIES

HDFC Bank: World Class Indian Bank- among the top private banks in India.

HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.

Intelent Global : BOP services for international customers.

CIBIL: Credit information services bureau.

HDFC Chubb: Upcoming Private companies in the field of General Insurance.


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STANDARD LIFE

Standard Life is u.k.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

kits original Edinburgh premises, opening offices in other towns and acquitting 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 six years by Standard and

Poor.

SNAPSHOT

Founded in 1875, company supporting generation for last 179 years.

Currently over 5 m. Policy holders benefiting from the services offered.

U.ks largest mutual life insurer.


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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. Reach 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 Moodys 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.

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

the majority stakeholder in the insurance JV with 81.4 %stale and Standard :of as a staple pf

18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture.

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. Both the promoters are will known for

their ethical dealings and financial strength and are thus committed to being a long-term player

in the life insurance industry- all important factors to consider when choosing your insurer.


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Financial Expertise

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

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

Range of Solutions

We have a range of individual and group solutions, which can be easily customized to

specific needs. Our group solutions have been designed to offer you complete flexibility

combined with a low charging structure.

Strong Ethical Values:

HDFC is an ethical and Cultural Organization. False selling or false commitment with

the customers is not allowed.

Most respected Private Insurance Company

HDFC was awarded No-1 Private Insurance Company In 2004 by the World Class

Magazine Business World. Integrity, Innovation and Customer Care.


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MAJORPLAYERS IN INSURANCE INDUSTRY

LIFE INSURANCE CORPORATION

ICICI PRUDENTIAL

BAJAJ ALLIANZ: SHARED VISION

MAX NEW YORK LIFE INSURANCE CO.

TATA AIG

Why HDFC is better ?

1. Investment returns: investment returns and business growth provided by HDFC is

validated by bajaj Capital report. HDFC pacify the need of invertors up to healthy level

and make the strong relationship with them.

2. Financial Background and Experience: HDFC existing in the market since 1977. It has

a very handsome experience in the field of finance because it completely involved in

finance Sector only where as the others are running in many other field also like Reliance

(Petroleum, Textile, Telecom etc.)

3. Ethics and Values: HDFC is an ethical and cultural organization which prevents the

false selling and prohibit the false commitment to the customer.

4. Sales Force: Properly trend licensed and Educated People are the strength of thecompany. So that they could give the best customer service.

5. Huge branch network HDFC is having 450 branches in all over the country.

6. Online accessibility : It makes the process faster and make the customer delightely


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What Is Insurance?

Insurance is a contract between two parties whereby one party called insurer undertakes Inexchange for a fixed sum called premiums, to pay the other party happening of a certain event

Benefits Of Life Insurance

It encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

INSURANCE PRODUCTS

Life Insurance:

Popular Products: Endowment Assurance (Participating), and Money Back (Participating). More

than 80% of the Life Insurance Business is from these products.


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General Insurance:

Fire and Miscellaneous Insurance businesses are predominant. Motor Vehicle insurance is

compulsory.

Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance

products new products have been launched by life insurers. These include linked-products. For

details, please visit the websites of life insurers

.

ADVANTAGES OF LIFE INSURANCE

Life insurance is not merely an investment or a saving device- it is much more than that.

In any other investment or saving avenues, bank deposits, savings certificates or mutual

funds or shares and stocks etc., amount of funds available at any time will not be more

than the amount saved, appreciation or interest earned till then. In life insurance, the

amount available is the one that one wished to have at the end of savings period which

may range up to 30 or even more years.

Life insurance has advantages over the other form of savings:

Facility of nomination and assignment makes the claim settlement easy on death.

Life insurance involves compulsory savings.

Tax benefits- on premium paid as well as the amount received by way of claim.

Loans can be raised against a life insurance policy.


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PRODUCT PROFILE

Childrens Plan

Childrens Plan is designed to provide al lumpsum to the child to maturity. It also

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

parents unfortunate death during the policy term. Childrens plan receives simple

reversionary bonuses, which are usually added annually. This is a flexible plan with

three option for you to choose from, depending on your requirements.

Option On the death of the Insured

parent during the policy term

On maturity

Maturity Benefit

Plan

Future premium walved and

the policy continues till

maturity.

Accelerated

Benefit Plan

Sum assured + bonuses paid

and the policy stops.

On the survival of the insured

parent to the maturity date, sum

assured + bonuses paid.

Double Benefit

Plan

Sum assured paid, future

premiums waived, and the

policy continues till maturity.

Sum assured + bonuses paid.

Eligibility

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

Minimum Age at Entry 18 years

Maximum Age at Entry 60 years

Maximum Age at Maturity 75 years

Minimum Term: 10 years Maximum term: 25 years


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Tax Benefits

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

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

Section 100 (10D) of the income tax act, 1961.

Payment Options

You have the choice of paying the premium either in yearly halfyearly or quarterly

modes, depending on your convenience.

Money Back Plan

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

Payment of cash lump sums, each of which is a proportion of the basic sum assured, at 5

years intervals during the term of the policy. On survival up to maturity, a payment equal to the

basic sum assured plus any bonus additions less the cash lump sums paid earlier is provided. In

case of the unfortunate death of the life assured within the term of the policy, the basic sum

assured plus any bonus additions is provided. This is over and above the earlier payouts.

Schedule of cash lump sum (as a% of basic sum assured)

Total policy

term

Number of years from policy date

5 10 15 20 25

10 40%

15 30% 30%

20 25% 25% 25%

25 20% 20% 20% 20%

30 15% 15% 15% 15% 15%


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Other Benefits customize your policy to suit your needs:

* Critical Illness: (CI) Benefit provides an amount, equal

You can add the following optional benefits to

to the sum assured chosen under this optional benefit, an diagnosis of any one of the 6 common

critical illness. The sum assured is payable if you survive for 30 days after the date of he

claim.

Once such a claim has been met, no further Critical illness benefit is payable. However,

your basic policy continues even after we pay a claim on this benefit.

* Additional Term Benefit: (ATB) provides an additional amount, equal to the sum

assured chosen under this optional benefit, in case of your unfortunate death.

* Accidental Death Benefit (ADB) provides an additional amount, equal to the sum assured

chose under this optional benefit, in case of your unfortunate death:

- due to an accident, and

- within 90 days of the accident

* Waiver of Premium (WOP) Benefit eaives the premium for you in case you become

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

Endowment Assurance Plan

It is a participating (with profits) insurance plan that offers the following features:Provides financial support to the family by way of a lump sum payment in case of

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

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

mentioned is the basic sum assured plus any bonus.


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Other Benefits

You can add the following optional to customize your policy to suit your needs:

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

under this optional benefit, an diagnosis of any one of the 6 common critical illness.

The sum assured is payable if you survive for 30 days after the date of the claim.

Once such a claim has been met, no further Critical illness Benefit is possible.

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

Additional Term Benefit (ATB) provides an additional amount, equal to the sum

assured chosen under this optional benefit, in case of your unfortunate death.

Accidental Death Benefit (ADB) provides an additional amount, equal to the sum

assured chosen under this optional benefit, in case of your unfortunate death:


- within 90 days of the accident

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

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

Max. age of

expiry

75 70 75 65 60

Min. term: 10 years

Payment options

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

quarterly modes, depending on your convenience.


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PENSION PLANS

The policy is basically a saving contract, which is designed to provide an income for

life from retirement, with an option to take the lump sum elsewhere to buy the

annuity, provides it is permitted by the prevailing regulations.

Your commitment. You agree to pay a single premium or level premiums with

installments due every quarter halfyear of year throughout the deferment period of

the policy, after which you will start receiving your pension.

Plan is basically a savings contract, which is designed to provide an income for life

from retirement. It does this by accumulating a national lump sum on retirement,

comprising of sum assured plus any attaching bonus.

Can I take the national lump sum as cash on retirement?

Subject to the prevailing legislation and regulations, part of this can be taken as a lump

sum and the rest used to buy an immediate annuity.

MODE OF PREMIUM

You can pay either a single premium or pay premiums in quarterly, half yearly or annual

from by cheque, in cash or by bank drafts.

Cost of the pain

The cost of the plan depends on your age, the amount of benefit you have chosen, the

premium paying frequency and the term of the policy. To give you an idea, here are the annual

premiums in Rupees, payable on a policy with sum assured of Rs. 100,00.

In addition, on death, surrender or on guaranteed dates, a terminal bonus might be payable. You

pay a single premium and the policy will pay you a lump sum.

Flexibility of term: Even after choosing your policy, you can decide on the policy term.

For 4 weeks after any one of the 10 th, 15th, 20th and subsequent fiveyear anniversaries, you can

choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been

received, your policy will cease.


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Surrender Value: You can terminate the policy any time, after it has been in force for at

least 6 months, and receive a surrender value.

In case of unfortunate death: Your nominee gets the sum assured secured by your

premium, plus any attaching bonuses.

No medical requirements: We do not require you to undergo any medical test for this

plan.

Tax benefits

Tax benefits under Section 88 of the income Tax Act applicable on premiums upto 20%

of the sum assured.

Eligibility

The eligibility ages are as follows:

Minimum age at entry : 18 years

Maximum age of entry : 70 years

You can buy the product an a single life basis.

Payment options

A single premium can be paid by cash, cheque or demand draft.

Indicative Premium

Minimum sum assures : Rs. 25,000

Maximum sum assured : Rs. 50,00,000

Premium: Rs. 950 per thousand of sum assured.


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PROTECTION PLAN

Term Assurance Plan

Under this plan, a sum assured Is payable in case of death of the life assured during the

term of the contract. On can choose the lump sum that would replace the income lost to ones

family in the unfortunate event of ones death. Since this non-participating (without profits)

plans is a pure risk cover plan; no benefits are payable on survival to the end of the term of the

policy.

Optional benefits are available with this plan.

You can add the following optional benefits to customize your policy to suit your needs:

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

under this optional benefit, on diagnosis of any of the 6 common critical illness. The

sum assured is payable if you survive for 30 days after the date of the claim.

Once such a claim has been met, no further Critical illness benefit is payable.

However,

- accident

your basic policy continues even after we pay a claim on this benefit.

Accidental Death Benefit (ADB) provides an additional amount, equal to sum assured

chosen under this optional benefit, in case of your unfortunate death:


within 90 days of the


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Various life Insurances Schemes provided by HDFC Standard Life Insurance

and their Analysis

INSURANCE SOLUTIONS FOR INDIVIDUALS

HDFC Standard life Insurance offers a range of innovative, customer- centric products that meet

the needs pf every life stage. Its ten products can be enhanced with up to four riders, to create

customized solutions for each policyholder.

Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range of

products and invites you to choose the one that suits you best.

Plan Features

Savings Plans

Endowment Assurance Plan

Life Insurance with Savings & profit. Financial

support to family. In case of death of the life assured

within term policy. OR Payment of lump sum on

maturity.

Childrens Plan

Financial Security to the child.

Lump sum on maturity.

Flexible plan-three options to choose from.

Unit Linked Young Star PlanFinancial security for your child with choice of

investment funds

Money Back Plan Life Insurance with Savings & profits.
http://www.hdfcinsurance.com/InsuranceProducts/EndowmentAssurance.htmhttp://www.hdfcinsurance.com/InsuranceProducts/EndowmentAssurance.htmhttp://www.hdfcinsurance.com/InsuranceProducts/ChildrensPlan.htmhttp://www.hdfcinsurance.com/InsuranceProducts/youngstarPlan.htmhttp://www.hdfcinsurance.com/InsuranceProducts/youngstarPlan.htmhttp://www.hdfcinsurance.com/InsuranceProducts/MoneyBack.htmhttp://www.hdfcinsurance.com/InsuranceProducts/MoneyBack.htmhttp://www.hdfcinsurance.com/InsuranceProducts/MoneyBack.htmhttp://www.hdfcinsurance.com/InsuranceProducts/youngstarPlan.htmhttp://www.hdfcinsurance.com/InsuranceProducts/ChildrensPlan.htmhttp://www.hdfcinsurance.com/InsuranceProducts/EndowmentAssurance.htm


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Cash payment of lump sum at 5 years interval.

On maturity, payment of lump sum.

Investment Plans

Single Premium Whole Life Insurance

Plan(SPWL)

Investment with Life Insurance with profit.

With-drawl of money on any 10th, 15th.. 5 yrs

term.

In case of death nominee gets the lump sum and

bonuses.

Protection Plans

Term Assurance Plan

Life Insurance at an affordable price

No profit plan

Sum assured is payable in case of death.

It is a risk cover plan.

Loan Cover Term Assurance Plan

Life Insurance customized for home loans

No profit plan

Lump sum amount decreases the percentage of sum

assured.

Risk cover plan

No benefits payable on survival till the term end.

Retirement Plans

Personal Pension Plan

25% share of private life insurance company

business.

Savings for retirement.
http://www.hdfcinsurance.com/InsuranceProducts/FlexibleBond.htmhttp://www.hdfcinsurance.com/InsuranceProducts/FlexibleBond.htmhttp://www.hdfcinsurance.com/InsuranceProducts/FlexibleBond.htmhttp://www.hdfcinsurance.com/InsuranceProducts/TermAssurance.htmhttp://www.hdfcinsurance.com/InsuranceProducts/TermAssurance.htmhttp://www.hdfcinsurance.com/InsuranceProducts/LoanCoverTerm.htmhttp://www.hdfcinsurance.com/InsuranceProducts/LoanCoverTerm.htmhttp://www.hdfcinsurance.com/InsuranceProducts/PersonalPension.htmhttp://www.hdfcinsurance.com/InsuranceProducts/PersonalPension.htmhttp://www.hdfcinsurance.com/InsuranceProducts/PersonalPension.htmhttp://www.hdfcinsurance.com/InsuranceProducts/LoanCoverTerm.htmhttp://www.hdfcinsurance.com/InsuranceProducts/TermAssurance.htmhttp://www.hdfcinsurance.com/InsuranceProducts/FlexibleBond.htmhttp://www.hdfcinsurance.com/InsuranceProducts/FlexibleBond.htm


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With profits.

A savings contract.

Income for life after retirement

Lump sum plus Bonuses on retirement.

Unit Linked Pension PlanRetirement Savings with a choice of investment

funds
http://www.hdfcinsurance.com/InsuranceProducts/pensionplan.htmhttp://www.hdfcinsurance.com/InsuranceProducts/pensionplan.htmhttp://www.hdfcinsurance.com/InsuranceProducts/pensionplan.htm


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CHAPTER-2

Research Methodology

Research is a procedure of logical and systematic application of the fundamentals of science to

the general and overall questions of a study and scientific technique which provide precise tools,

specific procedure and technical rather than philosophical means for getting and ordering the

data prior to their logical analysis and manipulation. Different type of research designs is

available depending upon the nature of research project, availability of able manpower and

circumstances

Methodology

1. Research Design: The research design is the blueprint for the fulfillment of

objectives and answering questions. It is a master plan specifying the method and

procedures for collecting and analyzing needed information.

Exploratory Research is used in this study .

2. Data Collection Methods: The source of data includes primary and secondary data

sources.

Primary Sources: Primary data has been collected directly from sample respondents

through questionnaire and with the help of interview.

Secondary Sources: Secondary data has been collected from standard textbooks,

Newspapers, Magazines & Internet.

3. Research Instrument: Research instrument used for the primary data collection is

Questionnaire.


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4. Sample Design: Sample design is definite plan determine before any data is actually

obtaining for a sample from a given population. The researcher must decide the way

of selecting a sample. Samples can be either probability samples or non-probability

samples.

Sampling Technique: Convenience

Sample Size: 100 Respondents.

Area of Study: Mohali


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CHAPTER- 3

DATA ANLYSIS AND INTERPRETATION
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Q.1: Do you know about HDFC SLIC ?

Option No.of respondents Percentage

Yes 90 90%

No 10 10%

Interpretation

from the above figure 90% respondents know about Hdfc-slic and 10% do not know about the

company.

90%

10%

Yes

NO


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Q.2 what is your occupation?

option no. of respondents Percentage

business 18 18%

Profession 26 26%

Service 12 12%

housewife 13 13%

unemployed 31 31%

Interpretation

The above diagram shows that the unemployed people are highly interested towork as a financial

consultant to earn something in comparision to the other persons of different occupations

18%

26%

12%

13%

31%

no. of respondentsbusiness Profession Service housewife unemployed


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Q.3:- about merital status

Option No.of respondents Percentage

Married 65 65%

unmarried 35 35%

interpretation

The above graph shows that the married people are more conscious to invest because their needs

increases in comparison to the unmarried.

65%

35%

no. of respondents

Married unmarried


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36

Q.4: Do you aware about the investments in insurance?

INTERPRETATIONS

From the above figure it is shown that about 47% people ar aware about ULIPs, about 51%

people aware about Mutual Funds, about 31% people aware about shares and about 97% people

aware about FD( Fixed Deposits).

YES47%

NO53%

ULIPS PLANS

YES49%

NO51%

MUTUAL FUNDS

YES31%

NO69%

SHARE AND DEBENTURE

YES97%

NO3%

FIXED DEPOSIT


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37

Q.5: Where do you want to invest your money?

option No.of respondents %Govt. institutions 63 63%

Pvt. institutions 37 37%

INTERPRETATIONS

From above figure it is shown that maximum people preferring private institutions and 43%

people go to Govt. Banks.

63%

37%

no. of respondents

govt. institutions pvt. Institutions


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38

Q.6: why do you invest your money?

option No. of respondents %Return 38 38%

Safety 22 22%

Save tax 15 15%

Future requirement 25 25%

INTERPRETATIONS

From above figures it is shown that about 38% people want good return, about 22% people want

safety of their funds, about 15% invest their funds for saving tax and about 25% people invest

their funds for future requirements.

0

5

10

15

20

25

30

35

40

Return Safety Save tax Futurerequirement

no. of respondents

no. of respondents


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39

Q: 7 Did you invest your money any where?

Option No. of respondents PercentageYes 80 80%

No 20 20%

INTERPRETATION

From the above figure it is shown that about 80% people have invested their money and about

20%have not invested their money anywhere.

yes80%

no20%


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Q: 7.1 If Yes then where you have invested your money?

option No. of respondents %

Bank 42 42%

Ulip 28 28%

shares 11 11%

Mutual funds 19 19%

INTERPRETATIONS

From above figure it is shown that 19% people have invested their money in Mutual Funds,

about 42% people have invested their money in Banks, about 11% in shares and about 28%

people have invested their money in ULIPs.

Bank42%

ULIP

28%

Share11%

Mutual fund19%

Investment portfolio


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41

Q:8 Do you want to change your current investment?

Option No. of respondents PercentageYes 74 74%

No 26 26%

INTERPRETATIONS

In the above figure , it is shown that 74% current investor want to change their investment

,Remaining 26% investor does not want to change their current Investment.

yes74%

no26%


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42

Q:9 what are your expected returns from your investment?

Option No. of respondents PercentageBelow 15% 60 60%

15-20% 15 15%

20-25% 10 10%

Above 25% 15 15%

Interpretation

In the above figure , it is shown that most of people want below 15% return from theirinvestments. 15% people expect 15%-20% , 10% people want 20%-25% . 15% people wantabove 25% return from their investments.

010

20

30

40

50

60

Blow 15 15 to 20 20 to 25 Above 25

60

15

1015

Return


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43

Q.10. Are you satisfied by Security margin by Company ?

Option No. of respondents %

Yes 53 53%No 47 47%

Interpretation

In the above figure, most of respondents are satisfied with the security margin and 47%

respondents are not satisfied .

44

45

46

47

48

49

50

51

52

53

54

Yes No

No. of respondents

No. of respondents


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44

Q.11 . Have you taken any Insurance scheme?


Yes 73 73%

No 27 27%

Interpretation

In the above figure shows that most of people had taken insurance scheme and 27% people donthave any insurance scheme.

010

20

30

40

50

60

70

80

Yes No

No. of respondents

No. of respondents


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45

Q12. How do you perceive taking Insurance?


Good 34 34%

bad 66 66%

Interpretation

In the above chart , perception of most of respondents is bad about taking insurance.

0

10

20

30

40

50

60

70

good bad

no of respondents

no of respondents


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46

Q13. Are you aware about the insurance schemes provided by the different

Company?

option No. of respondents %

yes 24 24%no 76 76%

Interpretation

This graph analysis that most of the respondents are not aware about the insurance schemes

provided by the company.

0

10

20

30

40

50

60

70

80

1 2 3

no. of respondents

option


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47

SWOT ANALYSIS

STRENGTHS

1. Strong Brand Name2. A large distribution network.

3. Customer centric approach

4. Excellence in Execution

5. Team Work (Together Everyone Achieves More)

6. Proactive Innovation.

WEAKNESS

1. Frequent job rotation by employees

2. Less number of advertisement

3. Hidden Charges

OPPORTUNITIES

1. Scope in Jaipur as it is in the developing phase.

2. Only 25% of insurable people have any insurance.

3. Can introduce innovative products offering a right mix of Flexibility/Risk/Return.

4. Share of FDI is going to raise by

26% to 49%.

THREATS

1. LICs brand name.

2. People prefer short investment rather than in insurance.

3. Other private insurance companies


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FINDINGS

Most of the people are aware about ULIPs, about 51% people aware about Mutual Funds,about 31% people aware about shares and about 97% people aware about FD( FixedDeposits)

maximum people preferring private institutions and about 43% people go to Govt. Banks.

most of people want below 15% return from their investments. 15% people expect 15%-20% , 10% people want 20%-25% . 15% people want above 25% return from theirinvestments.

People invest their money because they want good return, safety of their funds, invest

their funds for saving tax and for future requirements.

26 % investor want to invest in mutual funds, 15% in bank, 46% in ULIPS and remaining

13% investor wants to invest their money in shares and debentures.

most of people had taken insurance scheme and some people dont have any insurance

scheme.

most of respondents are satisfied with the security margin and 47% respondents are not

satisfied .


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Limitations

Though every care has been taken to make this report authentic in every sense, yet there werefew uncomfortable factors which might have had influence on the final report. Linking factors

can be stated as:

Amount of premium is very high (12000 p.a.) in Ulip plans.

The term of traditional plans is also very high i. e.10 years

The term of pension plan in ULIP is high..

Premium cant paid quaterlly or monthly.

Rate of return is very less.

Some respondents did not have serious attitude towards the calls made. Hence their

responses may not reflect the real picture.

Due to time limitations all the respondents could not be covered- The training period was

of one month only.

Some of the respondents were not candid enough to reveal all the required information


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CONCLUSION

After collection of data interpretation is done on that basis conclusion is drawn. Theconclusion drawn.

Conclusion prefer government insurance company other than private insurance

companies due to its reliability.

Customers are more brand oriented rather than product oriented.

Customers are less aware about the private insurance companies.

Customers like to invest in other investment zones due to the hectic rules and regulations

associated with, entering into a contract with insurance companies.

Customers do not feel secure with private insurance companies.

The central problem with the insurance companies is having that they are trying to

convince customers for a product which do not have any present relevance, i.e. each

policy which the customer is going to purchase will have a future set of action and

benefits. Due to which most of the people like to invest in those securities or

investment, which will give them a fruitful return in short period of time ?

Life insurance Corporation has completed more than three decades and thats where

counts, inters of brand name, different number of policies for differed class and age group

of customers.

The Private players are on the way, but they need a lot of time investment for creating a

favorable brand image.


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RECOMMENDATION & SUGGESTIONS

1. According to our research study 56% people do not know about ULIPS Plans and 53%

people do not know about MUTUAL Funds, that means a big part of population do not know

about most beneficiary part of investment portfolio. So a good manager of this sector of

investment should make plans (advertisements) in such a way that explains everything of this

part of investment portfolio very clearly and which will be understandable for customers.

2. A big part of population (98% of my survey) invested in FIXED Deposits so we should

concentrate on this part of investment portfolio with very much care.

3. In the era of quick fast economy there are so many competitors in the market so the company

should recruit able and qualified employees who are able to manage the investments in such a

way that they can make everything easy to customer.

4. According to my 2nd question of survey more part of population (62%) prefer private

institutions so HDFC Bank which is a big player of market should make do better than other

competitors to penetrate the market.

5. Company should provide the proper incentives to their employees so that the can work with

full efforts.

6. The company should motivate and increase the morale of the employees.

7.Company should maintain the regular relationship with the customers.


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CHAPTER-4

QUESTIONNAIRE

1. Name of the respondent

2. Occupation

3. Age

4. Address

.

.

5. Contact No

Q.1: Do you know about HDFC SLIC ?

Ans: (a) Yes (b) No

Q.2 what is your occupation?

Ans. (a) business (b) profession (c) service (d) housewife (e) unemployed

Q.3 adout merital status

Ans. (a) married (b) unmarried

Q.4: Do you aware about the investments in insurance?

Ans. (a) yes (b) no

Q.5: Where do you want to invest your money?

Ans. (a) govt. institutions (b) pvt. Institutions

Q.6: why do you invest your money?

Ans. (a) return (b) safety (c) save tax (d) future requirements


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Q: 7 Did you invest your money any where?

Ans. (a) yes (b) no

Q: 7.1 If Yes then where you have invested your money?

Ans. (a) banks (b) ulip (c) mutual funds (d) shares

Q:8 Do you want to change your current investment?

Ans. (a) yes (b) no

Q:9 what are your expected returns from your investment?

Ans. (a) below 15% (b) 15-20% (c) 20-25% (d) above 25%

Q.10. Are you satisfied by Security margin by Company ?

Ans. (a) yes (b) no

Q.11 . Have you taken any Insurance scheme?

Ans. (a) yes (b) no

Q12. How do you perceive taking Insurance?

Ans. (a) good (b) bad

Q13. Are you aware about the insurance schemes provided by the different Company?

Ans. (a) yes (b) no


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BIBLIOGRAPHY

Magazines:-1. Insurance Times (Insurance Monthly Magazine-April, 2011)

From Company:-1. Company Reports2. Company Brochures

Websites:-www.apnabima.comwww.hdfcinsurance.comwww.indiastat.com

www.google.com
http://www.apnabima.com/http://www.apnabima.com/http://www.apnabima.com/http://www.hdfcinsurance.com/http://www.indiastat.com/http://www.indiastat.com/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.apnabima.com/http://www.apnabima.com/http://www.apnabima.com/

Documents

Project report on “A Detailed study of Various life Insurances Schemes provided by HDFC Standard Life Insurance and their Analysis