A Project Study Report On HDFC Standard Life Insurance Company Limited

TITLED Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! Submitted in Ajmer Institute of Technology ush"ar Bay pass A#mer $ra#%&

Su'mitted to )s% riyan"a Sharma )BA Faculty $finance& AI, A-)./

Submitted by( Shu'hendra *umawat )BA +thSem AI, 0112(0131 /.FAC.

Difference in academic life & practical life is re ealed !"en !e enter t"e real life !"ere t"ere is cut t"roat competition & in order to e#ist in t"is !orld of competition one "as to be fully a!are of all t"e aspects of Industrial life$ Practical %no!led&e is t"e lifeblood of t"e mana&ement$ T"is Practical %no!led&e is termed as field 'no!led&e in mar'etin& mana&ement$ In professional course of mana&ement( t"is field of 'no!led&e ma'es us understand about t"e consumer

be"a ior( "is response to your product( t"e interpersonal s'ills( "o! to ma'e yourself positi e till t"e end of t"e day$ Practical trainin& is t"e most important part of mana&ement study$ Durin& t"e course of trainin& a trainee learns to correlate t"e practical problems & situations to possible t"eory 'no!led&e A professional course li'e )D*+SLI+( "as to "a e a pro ision of t"ese type of practical practices durin& its course time( to en"ance t"e s'ill in corporate !orld & to meet t"is re,uirement in our mana&ement curriculum - Summer Internship ro4rammed. is pro ided$ /is" and uncertainties are part of life5s 4reat adventure6 Accidents7 Illness7 ,heft & 8atural Calamities they all are pillars of this world% ,o overcome these ris"s and mishaps this pro#ect descri'es the policies and schemes of HDFC SLIC and ICICI eru Life Insurance Company% ,he way these companies provide different 'enefits to the policyholder% Insurance is Cooperative venture where ris" and uncertainties are shared 'y many% 8ow Days a lot is 'ein4 done to create awareness amon4 the Insurin4 u'lic a'out the Importance of Insurance in life% In this direction I/DA has planned to create awareness throu4h .lectronic and rint media% A study of Life Insurance describes t"e meanin& of arious policies( comparison and analysis and c"an&in& mar'et scenario$

SH9BH.8D/A *9)A:A,

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /

AC*8;:L.D<.).8, I e#press my sincere t"an's to my project &uide( )S% /I=A8*A SHA/)A( )BA FAC9L,= AI, AL)./( for &uidin& me ri&"t from t"e inception till t"e successful completion of t"e project$ I sincerely ac'no!led&e "im for e#tendin& t"eir aluable &uidance( support for literature( critical re ie!s of project and abo e all t"e moral support "e "ad pro ided to me !it" all sta&es of t"is project$ I !ould also li'e to t"an's To PRO**$0$%$1AR1 230A DEPART3E4T AIT A53ER6 for t"eir "elp and cooperation t"rou&"out our project$ I am t"an'ful to Dr$ Sudhindher Sin4h Chouhan $Head of )BA Department& AI, A-)./ !"o "ad &uided me t"rou&" my project !or' and time to time t"eir aluable information on t"e project !"ic" is important t"rou&"out t"e project$

2Si&nature of Student6 SH9BH.8D/A *9)A:A,

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7

E8E+9TI:E S933ER; T"e main objecti e of t"is project is to study -+omparati e Analysis of 9nit Lin'ed Products of )D*+ SL !it" ot"er 9LIP products of arious companies a ailable in t"e mar'et.( and it !as found t"at HDFC SL not only &i es "i&"est returns to its customers but pro idin& alue added ser ices by &i in& ris' co er to t"em$ 0eside t"is administrati e structure of +ompany !as also analy<ed in t"e report to understand t"e functionin& of t"e same at arious le els$ To create a picture re&ardin& all t"ese aspects analysis of Annual Report and fact s"eet of )D*+ SL !ere used mainly$ Life Insurance in India "as a "u&e potential for &ro!t"$ Statistics re eal t"at only /=> of t"e insurable population in India is insured$ And t"ose insured are in need of still "i&"er insurance co er$ T"e co er ?@@> &ro!t" displayed by pri ate life insurers indicates t"is "u&e untapped potential$ +ompanies try to brin& ne! products !it" special features$ 9LIP is t"e most inno ati e product of insurance !"ic" pro ide better returns !it" insurance co era&e$ )D*+ SL is one of t"e leadin& players in t"is cate&ory$ )D*+ SLAs 9nit Lin'ed Plans( !"ic" are aimed at pro idin& t"e *inancial Plannin& and In estments ser ices to t"e Indi iduals( are one of t"e best products in t"eir cate&ory$ T"ese products &i e best returns to t"e customers$ )D*+ SL is on t"e top in aspect of &i in& returns$ )D*+ SLAs last t!o year returns !ere BC$B> !"ic" is ery "i&"er to its nearest competitor Tata AI1 !"ic" "a in& a return of B/$/>$ Last but not least HDFC SL "as !ider "ori<ons for en&a&in& t"e 30A students in a better and "opeful profession$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! B

,ABL. ;F C;8,.8, Sr.no CONTENT

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CHAPTER 1 Introduction to industry Benefits of life insurance Working of insurance business Insurance as an in estment tool De elopment of insurance in India India an insurance at t"e cross roads A brief "istory of insurance sector Insurance sector reforms

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+)APTER / +ompany Profile )dfcSlic Icici Prudential Life Insurance +o$ +)APTER 7 +onsumer 0e"a ior Define +onsumer 0e"a ior )o! to +onsumer 0uy

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4.

+)APTER =

Researc" 3et"odolo&y Objecti es and Limitation Scope of t"e study *act and findin&

5.

+)APTER = +omparati e Analysis of 9nit Lin'ed Plan Data Analysis and Interpretation

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =

 ?%

*indin& S!ot +onclusion Su&&estion

+)APTER D Appendices 0iblio&rap"y Euestionnaire

I8,/;D9C,I;8 :hat is InsuranceF

)ention a'out insurance industry

E ery asset "as a alue for its o!ner and also for t"ose !"o are benefited !it" t"e e#istence of t"at asset$ Insurance is concerned !it" t"e protection of economic alue of assets$ All of us are interested in t"e creation of assets becauseG All assets "a e alues$ T"ey yield income to t"e o!ner$ T"ey meet some ot"er needs of t"e o!ner$ T"ey may pro ide satisfaction of some needs and also yield income to t"e o!ner$ Insurance does not protect t"e assets$ T"is means t"at insurance cannot pre ent loss to t"e assets due to perils$ 4or can insurance a oid t"e occurrence of t"e perils$ It only Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! D

compensates( may not be fully( t"e economic or financial loss resultin& to t"e asset from suc" dama&e or destruction$

T;PES O* I4S9RA4+E 0asically t"ere are t!o types of InsurancesG 4on-Life Insurance Life Insurance

I8S9/A8C.

8;8(LIF. I8S9/A8C.

LIF. I8S9/A8C.

H3ARI4E I4S9RA4+E H*IRE I4S9RA4+E

HO4L; )93A4 LI*E I4S9RA4+E I4+L9DES I4 T)IS +ATE1OR;

H)93A4 0EI41AS SI+%4ESS( ILL4ESS A4D OT)ER H3IS+ELLA4EO9S ASS9RA4+E 1I:E4 I4 I4S9RA4+E +ATE1OR; Analysis of Consumers Behavior & performance towards T)IS various Investment and

:E)I+LES *9R4IT9RE Insurance roducts of HDFC SLIC! HLO41 TER3 09ILDI41 +O4+EPT AIR+RA*TS 1E4ERAL I4TA41I0LES

Life Insurance@ Definition Life Insurance could be defined as a policy t"at !ill pay a specified sum to beneficiaries upon t"e deat" of t"e insured$ It is an a&reement t"at &uarantees t"e payment of a stated amount of monetary benefits upon t"e deat" of t"e insured$ Life Insurance could be said as protection a&ainst t"e deat" of t"e insured in t"e form of payment to a desi&nated beneficiary( typically a family member or business ,here are many types of Life Insurance 'ut they 4enerally fall into two cate4ories@ ?$ Term Insurance /$ Permanent Insurance ?$ ,erm InsuranceG It pro ides protection for a specific period of time$ It pays a benefit only if one dies durin& t"e term$ So me term insurance policies can be rene!ed !"en you reac" t"e end of t"e term( !"ic" can be from one to 7@ years$ T"e premium rates increase at eac" rene!al date$ 3any policies re,uire t"at you present e idence of insurability at rene!al to ,ualify for t"e lo!est rates$ T"e follo!in& points can "elp you determine if term insurance best suits your needs$

Advanta4es

Disadvanta4es

J Initial premiums &enerally are lo!er t"an t"ose for J Premiums increase as you &ro! older$ permanent insurance( allo!in& you to buy "i&"er le els of co era&e at a youn&er a&e !"en t"e need for J +o era&e may terminate at t"e end of t"e term or protection often is &reatest$ become too e#pensi e to continue$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC J T"eSLIC! policy &enerally doesnAt offer cas" alue or paidJ ItAs &ood for co erin& needs t"at !ill disappear in time( suc" as mort&a&es or car loans$ up insurance$ I

:hat a'out permanent insurance

Insurance and its Benefit to Society

write in points
Insurance is a system by !"ic" a person( business or or&ani<ation transfers a ris' to an insurance company( !"ic" reimburses t"e insured for co ered losses and pro ides for s"arin& t"e costs of losses amon& all insurers$ Insurance "elps society by reimbursin& people and businesses for co ered losses( encoura&in& accident pre ention( in estin& in capital countryAs capital mar'ets and bond mar'ets( enablin& people to borro! money and reducin& an#iety$

T"e major benefit of insurance is t"e indemnification of insurers for co ered losses$ To indemnify is to restore t"e party t"at "as "ad a loss to t"e same financial position as before t"e loss occurred$ T"rou&" indemnification( insurance allo!s indi iduals( businesses and or&ani<ations to maintain t"eir economic position and not suffer financial setbac's causin& a burden to society or to ot"er indi iduals$ In addition( insurance indemnifies t"e injured persons$ K"en a familyAs "ouse is destroyed by fire and t"e loss is co ered by insurance( t"e family is less li'ely to be dependent on relati es or public assistance for lod&in&$ Li'e!ise( !"en a business is co ered for a lar&e liability loss t"at !ould "a e ot"er!ise dri en t"e firm into ban'ruptcy( insurance contributes to society Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! L

because t"e firm continues to pro ide jobs for its !or'ers( products for its customers and business for its suppliers$

/;L. ;F LIF. I8S9/A8C. Don5t repeat LIA /ole 3@ Life Insurance as investment! Insurance is an attracti e option for in estment$ K"ile most people reco&ni<e t"e ta# "ed&in& and ta# sa in& potential of life insurance( many are not a!are of its ad anta&es as an in estment option as !ell as$ Insurance products yield more compared to re&ular in estment option as t"is is besides t"e added incenti es 2read bonuses6 offered by insurers$ ;ou can not compare an insurance product !it" ot"er in estment sc"emes for simple reason t"at it offers financial protection from ris's( somet"in& t"at is t"e missin& in non- insurance products$ Infect( t"e premium you pay for a in estment a&ainst ris'$ T"us( before comparin& !it" ot"er sc"eme( you must accept t"at a part of total amount in ested in life insurance &oes to!ards pro idin& for t"e ris' co er( !"ile t"e rest is used for sa in&s$ In life insurance( unli'e non-products( you &et maturity benefits on sur i al at t"e end of t"e term$ In ot"er !ords( if you ta'e a life insurance policy for /@ years and sur i e t"e term t"e amount in estor as premium in t"e policy !ill come bac' to you !it" added returns$ In t"e unfortunate e ent of deat" !it"in t"e tenure of t"e policy( t"e family of t"e deceased !ill recei e t"e sum assured$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?@

4o!( let us compare insurance as an in estment options$ If you In est Rs$ ?@@@@M- in PP*( year money &ro!s to Rs$ ?@L=@ at L$=> interest o er a year$ 0ut in t"is case( t"e access to your funds !ill be limited$ One can !it"dra! =@> of t"e initial deposit only after four years$ T"e sane amount of Rs$ ?@@@@M- can &i e you an insurance co er of up to appro#imately Rs$ = to ?/ lac's$ 2Dependin& upon t"e plan( a&e and medical condition of life insure etc$6 And t"is amount can become immediately a ailable to t"e nominee of t"e policy "older on deat"$ T"us insurance is a uni,ue in estment a enue t"at deli ers sound returns in addition to protection$ /ole 0@ Life Insurance as /is" Cover! *irst and foremost( insurance is about ris' co er and protection N financial protection( to be more precise-to "elp out last once unpredictable losses$ Desi&ned to safe &uard a&ainst losses suffered on account of an unforeseen e ents$ Insurance pro ide you !it" t"at uni,ueness sense of security t"at no ot"er form of in estment pro ides$ 0y buyin& life insurance( you buy peace of mind and are prepared to face any financial demand t"at !ould "it t"e family incase of an untimely demise$ To pro ide suc" protection( insurance firms collect contributions for many people !"o face t"e same ris'$ A loss claim is paid out of t"e total premium collected by t"e insurance companies( !"o act as trustees to t"e monies$ Insurance also pro ides a safe&uard in t"e case of accident or a drop in income after retirement$ An accident or disability can be de astatin& and an insurance policy can lend timely support to t"e family in suc" time$ It also comes as a &reat "elp !"en you retire( in case unto!ard incident "appens durin& t"e term in t"e policy$ Kit" t"e entry of pri ate sector player in insurance( you "a e a !ide ran&e of products and ser ices to c"oose from$ *urt"er( many of t"ese can be furt"er customi<ed to fit indi idualM&roup specific needs considerin& t"e amount you "a e to pay no!O itAs !ort" buyin& some e#tra sleep$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ??

/;L. >@ Life Insurance as ,aB lannin4! Insurance ser es as an e#cellent ta# sa in& mec"anism too$ T"e 1o t$ of India "as offered ta# incenti es to life insurance products in order to facilitate t"e flo! of funds into producti e assets$ 9MS II of Income Ta# Act ?LD?( an indi idual is entitled to rebate /@> on t"e annual premium payable on "isM"er life and life of "isM"er c"ildren or adult c"ildren$ T"e rebate is reducible from ta# payable by a indi idual or )indu undi ided family$ T"is rebate is can be a ailed up to a ma#imum of Rs ?/@@@M- on payment of yearly premium of Rs D@@@@M- a year( you can buy anyt"in& up!ard of Rs ?@@@@@M- in sum assured$ T"is means t"at you &et Rs ?/@@@M- ta# benefit$ T"is rebate is deductible from t"e ta# payable by an indi idual or a )indu undi ided family$ eit"er t"e acceptance of some of t"e economic burden of a loss( or continuin& to participate in acti ities !it" ris's t"at cannot be transferred or s"ared$ I8S9/A8C. AS A8 I8C.S,).8, ,;;L@ Insurance in ests in t"e economy$ Insurance pro ides funds to "elp businesses &ro! and create jobs$ Premium funds t"at are not immediately needed are lent to &o ernment and businesses$ Lendin& to municipalities( in t"e form of bonds( pro ides local &o ernments across t"e 9nited States !it" t"e means to build( maintain and repair municipal infrastructure H sc"ools( roads( brid&es( se!ers( airports$$ *unds are also lent to businesses( pro idin& t"em !it" t"e means to purc"ase buildin&s( e,uipment and supplies$ Alon& !it" "ousin& interests( t"e insurance industry is probably t"e most acti e oluntary in estor in lo!- and moderate-income communities( particularly t"ose located in urban areas$ +ompared to less-de eloped countries( t"e de eloped countries enjoy a "i&"er standard of li in&( partly because t"ese funds are a ailable from insurance companies$ Insurance and Ris' 3ana&ement Plannin& Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?/

Insurance and Ris' 3ana&ement Plannin& is t"e process of identifyin& t"e source and e#tent of an indi idualAs ris' of financial( p"ysical( and personal loss( and de elopin& strate&ies to mana&e e#posure to ris' and minimi<e t"e probability and amount of potential loss$ Insurance and /is" )ana4ement lannin4 in the ConteBt of ersonal Financial lannin4 In personal financial plannin& 2P*P6( ris' mana&ement and insurance plannin& results in clients !"o are a!are of t"e ran&e of si&nificant ris's to t"eir financial !ellbein& and !"o are ade,uately and properly protected from t"e loss t"at could result from t"ose ris's$ Periodic re ie!s "elp clients understand t"at life c"an&es( suc" as a job c"an&e or di orce( affect ris' mana&ement and insurance co era&e$ /is" )ana4ement Strate4ies Ris' 3ana&ement is muc" broader t"an t"e purc"ase of insurance policies( in ol in& strate&ies suc" asG /is" avoidance in ol in& t"e elimination of a t"reatened financial loss$ /is" reductionH in ol in& strate&ies to minimi<e t"e amount of loss if a loss does occur$ /is" transferH s"arin& t"e burden of loss$ T"is strate&y includes t"e use of insurance to transfer some of t"e burden of loss to t"e t"ird party insurer$

/is" retentionH in ol in&

A rofile of the world Insurance Industry

It will come first when it came into eBistence7 where etc

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?7

T"e 9nited States is t"e !orld leader in insurance !it" 7? percent of t"e premium olume in /@@=$ 5apan is second !it" just under a ,uarter of t"e !orldAs olume$ 1ermany( 9%( *rance( Sout" %orea and Italy combined( "old anot"er ,uarter of t"e premium olume$ T"e insurance industry is a major contributor to t"e 9$S$ economy$ 1o ernment aut"orities in t"e arious states re&ulate t"e operations of C(L@@ domestic insurance companies$ About 7(7@@ companies sell some form of propertyMcasualty insurance$ Alto&et"er( t"e insurance industry pro ides /$7 million jobs$ Kit" lar&est number of life insurance policies in force in t"e !orld( Insurance "appens to be a me&a opportunity in India$ ItAs a business &ro!in& at t"e rate of ?=-/@ per cent annually and presently is of t"e order of Rs B=@ billion$ To&et"er !it" ban'in& ser ices( it adds about C per cent to t"e countryAs 1DP$ 1ross premium collection is nearly / per cent of 1DP and funds a ailable !it" LI+ for in estments are I per cent of 1DP$ ;et( nearly I@ per cent of Indian population is !it"out life insurance co er !"ile "ealt" insurance and non-life insurance continues to be belo! international standards$ And t"is part of t"e population is also subject to !ea' social security and pension systems !it" "ardly any old a&e income security$ T"us it is an indicator t"at &ro!t" potential for t"e insurance sector is immense$ How Insurance Companies :or" 9nli'e ban's( insurance companies are c"artered to pro ide insurance$ T"ey &enerally do not e#tend credit and are often precluded from doin& so by la! and re&ulation$ 0ecause propertyMcasualty policies are s"ort-term N usually oneyear N state insurance la!s re,uire most propertyMcasualty in estments to be s"ort-term and "i&"ly li,uid$ Le&ally permissible in estments include cas"( mutual funds( Treasury bills and notes( mort&a&e-bac'ed securities( specified types of debt securities( and preferred stoc'$ 1enerally( property and casualty insurers cannot in est in real estate( ot"er t"an t"eir o!n buildin&s and property$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?B

To illustrate t"e s"ort-term nature of propertyMcasualty in estments( consider t"at in an a era&e year( out of P?@@ paid in "omeo!nersA premiums( t"e industry pays out PCB in claims$ 7 T"e remainder &oes to a&ent commissions( administrati e e#penses( operatin& costs( and( in &ood years( policy"older protection funds B !"ic" protect a&ainst future catastrop"ic loss$ K"en catastrop"es stri'e( suc" as fires( "urricanes( or eart",ua'es a &reater percenta&e of premiums !ill be paid out in claims$ O er time( customers recei e bac' t"e ast majority of premiums in claims payments$ T"e billions of dollars paid by t"e industry in claims is itself Qrein estmentQ in t"e local community !"en disaster stri'es$ T"is rein estment not only benefits policy"olders( it benefits t"e people !"o rebuild t"e structure after t"e tornado( fi# t"e car dama&ed by "ail or sell t"e appliances and cabinets needed to repair t"e 'itc"en dama&ed by fire$ Life insurance companies primarily issue life insurance policies and annuities$ Policy"older premiums are in ested in compliance !it" state insurance la!s for t"e benefit of policy"olders to ensure t"at t"e company can meet its obli&ations under t"e terms of t"e policies$ As t"ey do for propertyMcasualty companies( state insurance la!s establis" t"e types and amounts of permissible in estments for life companies$ Le&ally permissible in estments include cas"( mutual funds( Treasury bills and notes( mort&a&ebac'ed securities( corporate stoc' and ot"er types of e,uity and debt securities( loans( and real estate$ )o! Insurance is re&ulated 3ention about IRDA Insurance re&ulation is conducted by eac" state t"rou&" its department of insurance( run by a commissioner or director !"o may be elected( or appointed by t"e &o ernor$ Insurance departments are c"ar&ed !it" re&ulatin& t"e safety and soundness of insurance companies and consumer protection$ Primarily t"e Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?=

"ome state re&ulator( !"o leads safety and soundness e#aminations and re ie!s in estments and t"e ade,uacy of policy reser es( conducts safety and soundness re&ulation$ Eac" state re&ulator must license any company t"at !ants to do business in "is or "er state( and re ie! and appro e rates and policy forms to be used by any licensed company$ 9nli'e ban's and t"rifts( most insurance companies "a e no &eo&rap"ic community$ Insurance companies must be QdomiciledQ in a sin&le state and are primarily re&ulated by t"e "ome state re&ulator$ T"ey must be licensed in e ery state in !"ic" t"ey do business$ )o!e er( t"ere may be no connection bet!een a companyAs p"ysical location and its "ome state or ot"er states in !"ic" it is licensed$ *or e#ample( an insurance company may be domiciled in Illinois( "a e its "ead,uarters in +alifornia( and be licensed for business in B@ states$ In t"e case of automobile insurance( t"e company li'ely !ould "a e claims offices and per"aps a&ents in eac" of t"e states in !"ic" it is licensed$ In t"e case of more speciali<ed co era&e suc" as directorAs and officerAs liability insurance( a company may not "a e a p"ysical presence in any of its licensed states$ In a competiti e en ironment( some insurance company failures !ill ine itably occur$ )o!e er( unli'e ban's( t"rifts and credit unions( t"e insurance industry does not "a e a &o ernment-bac'ed fund to "andle insol ency$ Instead( eac" state "as a life insurance &uaranty fund and a propertyMcasualty insurance company &uaranty fund$ T"e &uaranty funds ensure t"at t"e insol ent company is retired from t"e mar'et in an orderly manner t"at &i es ma#imum protection to t"e public$ ,H. .CAL9A,I;8 ;F I8S9/A8C. I8D9S,/= I8 I8DIA@ In Introduction mention this Life Insurance in its modern form is a !estern concept$ T"e Indian insurance industry is as old as it is in ot"er part of t"e !orld$ Alt"ou&" life insurance business "as been ta'in& s"ape for t"e last 7@@ years( it came to India !it" t"e arri al of Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?D

Europeans$ *irst Life Insurance +ompany !as establis"ed in ?I?I as Oriental Insurance +ompany( mainly to pro ide for !ido!s of Europeans$ T"e companies t"at follo! mainly catered to Europeans and c"ar&ed e#tra premium on Indian Li es$ T"e first insurance company insurin& Indian Li es at standard rates !as B;)BA= )9,9AL LIF. I8S9/A8C. C;) A8= !"ic" !as formed in ?IC@$ T"is !as also t"e year !"en ?st Insurance act !as passed by t"e 0ritis" Parliament$ T"e years subse,uent to t"e S!ades"i 3o ement sa! t"e emer&ence of se eral insurance companies$ At t"e end of t"e year ?L== t"ere !ere /B= insurance companies$ All t"e insurance companies !ere nationali<ed in ?L=D and brou&"t under one umbrella- LI*E I4S9RA4+E +ORPORATIO4 O* I4DIA 2LI+6 !"ic" enjoyed a monopoly of t"e Life Insurance business until near t"e end of /@@@$ 0y enactin& t"e IRDA act ?LLL( t"e 1o t$ of India effecti ely ended LI+As monopoly and opened t"e doors for pri ate Insurance companies$ Development of Insurance in India A t"ri in& insurance sector is of ital importance to e ery modern economy$ *irst because it encoura&es t"e sa in&s "abit( second because it pro ides a safety net to rural and urban enterprises and producti e indi iduals$ And per"aps most importantly it &enerates lon&-term in estible funds for infrastructure buildin&$ T"e nature of t"e insurance business is suc" t"at t"e cas" inflo! of insurance companies is constant !"ile t"e payout is deferred and contin&ency related$

T"is c"aracteristic of t"eir business ma'es insurance companies t"e bi&&est in estors in lon&-&estation infrastructure de elopment projects in all de eloped and aspirin& nations$ T"is is t"e most compellin& reason !"y pri ate sector 2and forei&n6 companies !"ic" !ill spread t"e insurance "abit in t"e societal and consumer interest are ur&ently re,uired in t"is ital sector of t"e economy$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?C

Kit" t"e nationRs infrastructure in a state of imminent collapse( India couldnRt "a e afforded to be lumbered !it" sub-optimally performin& monopoly insurance companies and t"erefore t"e passa&e of t"e Insurance Re&ulatory & De elopment Aut"ority 0ill on December /( ?LLL "eralds an era of cautious optimism !"ere sta'es are "i&" for all parties concerned$ *or t"e 1o t$ of India( *orei&n Direct In estment 2*DI6 must pour in as anticipatedO for forei&n insurers( in estments must start yieldin& returns and for t"e domestic insurance industry - t"eir mar'et penetration s"ould remain intact$ On t"e frin&e( t"e customer is ponderin& !"et"er all t"e "ype created on liberali<ation !ill actually benefit "im$ T"e IRDA 0ill pro ides for t"e establis"ment of an aut"ority to protect t"e interests of t"e "olders of insurance policies( to re&ulate( promote and insure orderly &ro!t" of t"e insurance industry and amend t"e Insurance Act( ?L7I( t"e Life Insurance Act( ?L=D and t"e 1eneral Insurance 0usiness 24ationali<ation6 Act( ?LC/$ T"e bill allo!s forei&n e,uity sta'e in domestic pri ate insurance companies to a ma#imum of /D per cent of t"e total paid-up capital and see's to pro ide statutory status to t"e insurance re&ulator$ 0efore pri ati<ation( insurance business in India !as pe&&ed at P D$D 0illion !"ereas industry leaders e#pected at t"at time t"at pri ati<ation !ill increase it to P B@ 0illion !it"in ne#t 7-= years$ I8S9/A8C. /.<9LA,I;8 & D.C.L; ).8, BILL On Oct$ /?st( ?LLL t"e &o t$ *inally offered IRDA bill for t"e consideration of t"e ne! parliament$ T"e ne! bill 'no!s called insurance Re&ulatory Aut"ority 0ill ?LLL$ 0ills to pro ide for establis"ment of an aut"ority to protect t"e interest of "olders of insurance polices and to re&ulate promote and insure orderly &ro!t" of t"e industry$ IRDA As per t"e section B of IRDA ActR ?LLL( Insurance Re&ulatory and De elopment Aut"ority 2IRDA( !"ic" !as constituted by an act of parliament6 specify t"e composition of Aut"ority$ T"e Aut"ority is a ten-member team consistin& of 2a6 A +"airmanO

2b6 *i e !"ole-time membersO Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?I

2c6 *our part-time members( 2all appointed by t"e 1o ernment of India6

Duties7 owers and Functions of I/DA Section ?B of IRDA Act( ?LLL lays do!n t"e duties( po!ers and functions of IRDA$ 2?6 Subject to t"e pro isions of t"is Act and any ot"er la! for t"e time bein& in force( t"e Aut"ority s"all "a e t"e duty to re&ulate( promote and ensure orderly &ro!t" of t"e insurance business and re-insurance business$ 2/6 Kit"out prejudice to t"e &enerality of t"e pro isions contained in sub-section 2?6( t"e po!ers and functions of t"e Aut"ority s"all include( 2a6 Issue to t"e applicant a certificate of re&istration( rene!( modify( !it"dra!( suspend or cancel suc" re&istrationO 2b6 Protection of t"e interests of t"e policy "olders in matters concernin& assi&nin& of policy( nomination by policy "olders( insurable interest( settlement of insurance claim( surrender alue of policy and ot"er terms and conditions of contracts of insuranceO 2c6 Specifyin& re,uisite ,ualifications( code of conduct and practical trainin& for intermediary or insurance intermediaries and a&entsO 2d6 Specifyin& t"e code of conduct for sur eyors and loss assessorsO 2e6 Promotin& efficiency in t"e conduct of insurance businessO

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ?L

2f6 Promotin& and re&ulatin& professional or&ani<ations connected !it" t"e insurance and re-insurance businessO 2&6 Le yin& fees and ot"er c"ar&es for carryin& out t"e purposes of t"is ActO 2"6 +allin& for information from( underta'in& inspection of( conductin& en,uiries and in esti&ations includin& audit of t"e insurers( intermediaries( insurance intermediaries and ot"er or&ani<ations connected !it" t"e insurance businessO 2i6 +ontrol and re&ulation of t"e rates( ad anta&es( terms and conditions t"at may be offered by insurers in respect of &eneral insurance business not so controlled and re&ulated by t"e Tariff Ad isory +ommittee under section DB9 of t"e Insurance Act( ?L7I 2B of ?L7I6O 2j6 Specifyin& t"e form and manner in !"ic" boo's of account s"all be maintained and statement of accounts s"all be rendered by insurers and ot"er insurance intermediariesO Re&ulatin& in estment of funds by insurance companies Re&ulatin& maintenance of mar&in of sol encyO 2'6 Adjudication of disputes bet!een insurers and intermediaries or insurance intermediariesO 2l6 Super isin& t"e functionin& of t"e Tariff Ad isory +ommitteeO 2m6Specifyin& t"e percenta&e of premium income of t"e insurer to finance sc"emes for promotin& and re&ulatin& professional or&ani<ations referred to in clause

2n6 Specifyin& t"e percenta&e of life insurance business and &eneral insurance business to be underta'en by t"e insurer in t"e rural or social sector

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /@

I8S9/A8C. S.C,;/ /.F;/)S In ?LL7( 3al"otra +ommittee( "eaded by former *inance Secretary and R0I 1o ernor R$ 4$ 3al"otra( !as formed to e aluate t"e Indian insurance industry and recommend its future direction$ T"e 3al"otra committee !as set up !it" t"e objecti e of complementin& t"e reforms initiated in t"e financial sector$ T"e reforms !ere aimed at -creatin& a more efficient and competiti e financial system suitable for t"e re,uirements of t"e economy 'eepin& in mind t"e structural c"an&es currently under!ay and reco&ni<in& t"at insurance is an important part of t"e o erall financial system !"ere it !as necessary to address t"e need for similar reformsS. In ?LLL( t"e committee submitted t"e report and some of t"e 'ey recommendations includedG i& Structure TU1o ernment sta'e in t"e insurance +ompanies to be brou&"t do!n to =@> TU1o ernment s"ould ta'e o er t"e "oldin&s of 1I+ and its subsidiaries so t"at t"ese subsidiaries can act as independent corporations TUAll t"e insurance companies s"ould be &i en &reater freedom to operate Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /?

ii& Competition TUPri ate +ompanies !it" a minimum paid up capital of Rs$?bn s"ould be allo!ed to enter t"e industry TU4o +ompany s"ould deal in bot" Life and 1eneral Insurance t"rou&" a sin&le entity TU*orei&n companies may be allo!ed to enter t"e industry in collaboration !it" t"e domestic companies TUPostal Life Insurance s"ould be allo!ed to operate in t"e rural mar'et TUOnly one State Le el Life Insurance +ompany s"ould be allo!ed to operate in eac" state iii& /e4ulatory Body TUT"e Insurance Act s"ould be c"an&ed TUAn Insurance Re&ulatory body s"ould be set up TU+ontroller of Insurance 2+urrently a part from t"e *inance 3inistry6 s"ould be made independent$

iv& Investments TU3andatory In estments of LI+ Life *und in &o ernment securities to be reduced from C=> to =@> TU1I+ and its subsidiaries are not to "old more t"an => in any company 2T"ere current "oldin&s to be brou&"t do!n to t"is le el o er a period of time6 v& Customer Service Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! //

TULI+ s"ould pay interest on delays in payments beyond 7@ days TUInsurance companies must be encoura&ed to set up unit lin'ed pension plans TU+omputeri<ation of operations and updatin& of tec"nolo&y to be carried out in t"e insurance industry

+O3PA4; PRO*ILE T)E )D*+ 1RO9P H;9SI8< D.C.L; ).8, FI8A8C. C;/ ;/A,I;8 L,D%

)D*+ Standard Life Insurance +ompany Ltd$ is one of IndiaRs leadin& pri ate insurance companies( !"ic" offers a ran&e of indi idual and &roup insurance solutions$ It is a joint enture bet!een )ousin& De elopment *inance +orporation Limited 2)D*+ Ltd$6( IndiaRs leadin& "ousin& finance institution and a 1roup +ompany of t"e Standard Life( 9%( and leadin& pro iders of financial ser ices in t"e 9nited %in&dom$ )D*+ as on 3arc" 7?( /@@C "olds I?$L per cent of e,uity and Standard Life !as "oldin& ?I$? in t"e joint enture$ )I1)LI1)TS *irst life insurance +ompany in t"e pri ate sector to &et license from t"e re&ulator IRDA$ *irst life insurance +ompany to come out !it" Term Assurance Plan$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /7

 *irst pri ate life insurance +ompany to declare bonuses consecuti ely for D years from inception$ *irst life insurance +ompany to introduce open option to t"e pension plan policy"olders$ *irst life insurance +ompany to introduce Automatic Allocation Option to all t"e policy"olders under 9nit Lin'ed Plans$ Only )dfc +ompany to &i e /B free s!itc"in& option to 9nit Lin'ed Policy"olders$ )D*+ is one of t"e fastest &ro!in& Pri ate Life Insurers and today "a e more t"an I la'" policy"olders$)D*+ "a e one of t"e !idest net!or's !it" more t"an ?D@ branc"es and ser icin& o er BB@ to!ns$ )D*+ Standard Life Insurance +ompany "as one of t"e "i&"est brand recalls of around ID>$ 2SourceG A+ 4eilson OR1 3AR1( September /@@=6$ )D*+ is also t"e lar&est 3obiliser of retail deposits in t"e pri ate sector outside t"e ban'in& circle$ T"eir deposits "a e been a!arded t"e "i&"est safety credit ratin& R*AAAR & V3AAAA by +RISIL and I+RA respecti ely for ei&"t consecuti e years$ Today( t"eir deposit base is o er ?@(@@@ crores - a depositor base of o er ?7 laces and a net!or' of o er =@(@@@ deposit a&ents$ A !ide &eo&rap"ical spread of acti ities in India( t"rou&" t"eir branc" net!or' of o er ?7@ offices( o er I@ outreac" locations and t"e )D*+ 0A4% branc" net!or' enables us to offer loans and deposit ser ices to indi iduals in o er /(B@@ to!ns and cities across t"e country$ T"ey also "a e an international office in Dubai( 9$A$E$ and ser ice associates in %u!ait( Oman( Eatar( Saudi Arabia and 0a"rain to ser ice 4on-resident Indians$ K"ile bein& a "ouse"old name in India and t"e undisputed mar'et leader in t"e fields of "ousin& finance( t"eir social responsibilities "a e remained in focus$ )D*+ continue to ma'e consistent efforts to!ards economic and social upliftment of t"e mar&inali<ed sections of society by offerin& customi<ed financial assistance$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /B

T"is is done t"rou&" stron& associations and partners"ips !it" se eral 41Os( oluntary a&encies and ot"er de elopment institutions ensurin& effecti e implementation of projects and impro ed sustainability at community le els$ )D*+ "as been oted t"e second R0est 3ana&ed +ompany in IndiaR after Infosys in a poll conducted by Asia money for t"e year /@@@$ T"e boo'( 1lobal +ases in 0enc"mar'in& by Robert +amp includes a case study on )D*+$

1RO9P +O3PA4IES O* )D*+ )D*+ 0an' Limited )D*+ Securities Limited )D*+ Asset 3ana&ement +ompany Limited )ome Loan Ser ices India P t$ Ltd$ )D*+ Standard Life Insurance Business ;'#ectives T"e primary objecti e of )D*+ is to en"ance residential "ousin& stoc' in t"e country t"rou&" t"e pro ision of "ousin& finance in a systematic and professional manner( and to promote "ome o!ners"ip$ Anot"er objecti e is to increase t"e flo! of resources to t"e "ousin& sector by inte&ratin& t"e "ousin& finance sector !it" t"e o erall domestic financial mar'ets$$$ )D*+ Deposits )D*+ +"ubb Intelenet )D*+ Realty Ltd$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /=

;r4aniDational <oals )D*+As main &oals are toG I$ II$ de elop close relations"ips !it" indi idual "ouse"olds( maintain its position as t"e premier "ousin& finance institution in t"e country( III$ I:$ :$ transform ideas into iable and creati e solutions( d6 pro ide consistently "i&" returns to s"are"olders( and to &ro! t"rou&" di ersification by le era&in& off t"e e#istin& client base$

;r4aniDation and )ana4ement

:here is or4aniDation structure

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /D

)D*+ is a professionally mana&ed or&ani<ation !it" a board of directors consistin& of eminent persons !"o represent arious fields includin& finance( ta#ation( construction and urban policy & de elopment$ T"e board primarily focuses on strate&y formulation( policy and control( desi&ned to deli er increasin& alue to s"are"olders$ Board of Directors 3r$ Deepa' S Pare'" - +"airman 3r$ %es"ub 3a"indra - :ice +"airman 3r$ %e'i 3 3istry - 3ana&in& Director 3s$ Renu S$ %arnad - E#ecuti e Director 3r$ S"iris" 0 Patel 3r$ 0 S 3e"ta 3r$ D 3 Su't"an'ar 3r$ D 4 1"os" Dr$ S A Da e 3r$ S :en'itaramanan Dr$ Ram S Tarneja 3r$ 4 3 3unjee Dr$ :ijay S$ %el'ar 3r$ D 3 Sat!ale'ar

)D*+ STA4DARD LI*E I4S9RA4+E +O3PA4; LTD$

)D*+ Standard Life Insurance +ompany Ltd$ is one of IndiaRs leadin& pri ate insurance companies( !"ic" offers a ran&e of indi idual and &roup insurance solutions$ It is a joint enture bet!een )ousin& De elopment *inance +orporation Limited 2)D*+ Ltd$6( IndiaRs leadin& "ousin& finance institution and a 1roup Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /C

+ompany of t"e Standard Life( 9%( and leadin& pro iders of financial ser ices in t"e 9nited %in&dom$ )D*+ as on 3arc" 7?( /@@C "olds I?$L per cent of e,uity and Standard Life !as "oldin& ?I$? in t"e joint enture$

)I1)LI1)TS *irst life insurance +ompany in t"e pri ate sector to &et license from t"e re&ulator IRDA$ *irst life insurance +ompany to come out !it" Term Assurance Plan$ *irst pri ate life insurance +ompany to declare bonuses consecuti ely for D years from inception$ *irst life insurance +ompany to introduce open option to t"e pension plan policy"olders$ *irst life insurance +ompany to introduce Automatic Allocation Option to all t"e policy"olders under 9nit Lin'ed Plans$ Only life insurance +ompany to &i e /B free s!itc"in& options to 9nit Lin'ed Policy"olders$ )D*+ is one of t"e fastest &ro!in& Pri ate Life Insurers and today "a e more t"an I la'e policy"olders$ )D*+ "a e one of t"e !idest net!or's !it" more t"an ?D@ branc"es and ser icin& o er BB@ to!ns$ )D*+ Standard Life Insurance +ompany "as one of t"e "i&"est brand recalls of around ID>$ 2SourceG A+ 4eilson OR1 3AR1( September /@@=6$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /I

/;FIL. ;F S,A8DA/D LIF. T"e Standard Life Assurance +ompany 2QStandard LifeQ6 !as establis"ed in ?I/= and t"e first Standard Life Assurance +ompany Act !as passed by Parliament in ?I7/$ Standard Life !as reincorporated as a mutual assurance company in ?L/=$ T"e Standard Life &roup ori&inally operated only t"rou&" branc"es or a&encies of t"e mutual company in t"e 9nited %in&dom and certain ot"er countries$

)ar"et leader in the Housin4 Finance Sector ;ver 0 million satisfied customers ;ver 37117111 Crores in Loan Approvals /an"ed as India5s >rd Best )ana4ed Company 'y Finance Asia(011E

Servin4 customers for over 321 years Currently administers F30E 'illion in assets Coted E Star Life & ensions provider for last 31 years

0E1 Branches 337117111 Customers )ultiple roducts rotection - 9nit Lin"ed - :ith rofit )ore than 2 la"h policyholders Servicin4 over ++1 towns in India

-;I8, C.8,9/.

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! /L

)D*+ Standard Life Insurance +ompany Limited !as one of t"e first companies to be &ranted license by t"e IRDA to operate in life insurance sector$ Reac" of t"e 5: player is "i&"ly rated and been conferred !it" many a!ards$ )D*+ is rated VAAAA by bot" +RISIL and I+RA$ Similarly( Standard Life is rated VAAAA bot" by 3oodyAs and Standard and PoorAs$ T"ese reflect t"e efficiency !it" !"ic" )D*+ and Standard Life mana&e t"eir asset base of Rs$ ?=(@@@ +r and Rs$ D@@(@@@ +r$ Respecti ely$ )D*+ Standard Life Insurance +ompany Ltd !as incorporated on ?B t" Au&ust /@@@$ )D*+ is t"e majority sta'e"older in t"e insurance 5: !it" I?$B >stale and Standard Gof as a staple pf ?I$D> 3r$ Deepa' Sat!ale'ar is t"e 3D and +EO of t"e enture$ )D*+ Standard Life Insurance +ompany Ltd$ Is one of IndiaAs leadin& Pri ate Life Insurance +ompanies$( !"ic" offers a ran&e of indi idual and &roup insurance solutionsF Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7@

It is a joint enture bet!een )ousin& De elopment *inance +orporation Limited 2)D*+ Ltd$6 IndiaAs leadin& "ousin& finance institution and t"e Standard Life Assurance +ompany( a leadin& pro ider of financial ser ices from t"e 9nited %in&dom$ 0ot" t"e promoters are !ill 'no!n for t"eir et"ical dealin&s and financial stren&t" and are t"us committed to bein& a lon&-term player in t"e life insurance industry- all important factors to consider !"en c"oosin& your insurer$ S,A8DA/D LIF. I8S9/A8C. C;) A8= $SLIC& T"e Standard Life Assurance +ompany 2QStandard LifeQ6 !as establis"ed in ?I/= and t"e first Standard Life Assurance +ompany Act !as passed by Parliament in ?I7/$ Standard Life !as reincorporated as a mutual assurance company in ?L/=$ T"e Standard Life &roup ori&inally operated only t"rou&" branc"es or a&encies of t"e mutual company in t"e 9nited %in&dom and certain ot"er countries$ Its +anadian branc" !as founded in ?I77 and its Iris" operations in ?I7I$ T"is lar&ely remained t"e structure of t"e &roup until ?LLD( !"en it opened a branc" in *ran'furt( 1ermany !it" t"e aim of e#portin& its 9% life assurance and pensions operatin& model to capitali<e on t"e opportunities presented by E+ Directi e L/MLDMEE+ 2t"e -T"ird Life Directi e.6 and offer a product ran&e in t"at mar'et !it" features !"ic" local pro iders !ere unable to offer$ In t"e ?LL@s( t"e &roup also sou&"t to di ersify its operations into areas !"ic" complemented its core life assurance and pensions business( !it" t"e intention of positionin& itself as a broad ran&e financial ser ices pro ider$ Ban"in47 Healthcare & Investments T"e &roup set up Standard Life 0an'( its 9% mort&a&e and retail sa in&s ban'in& subsidiary( in ?LLI and Standard Life In estments( !"ic" "ad pre iously been t"e inAnalysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7?

"ouse in estment mana&ement unit of t"e &roupAs life assurance and pensions business( !as separated into a distinct le&al entity in t"e same year( !it" t"e aim of establis"in& it as an independent in estment mana&ement business pro idin& ser ices to bot" t"e &roup and t"ird party retail and institutional clients$ T"e &roup ac,uired Prime )ealt" Limited 2subse,uently renamed Standard Life )ealt"care6 in t"e 9nited %in&dom in /@@@$ Standard Life )ealt"care e#panded in 3arc" /@@D !it" t"e ac,uisition of t"e P3I business of *irst Assist$

HDFC Standard Life Insurance Company Ltd% )D*+ Standard Life Insurance +ompany Ltd$ is one of IndiaRs leadin& pri ate insurance companies( !"ic" offers a ran&e of indi idual and &roup insurance solutions$ It is a joint enture bet!een )ousin& De elopment *inance +orporation Limited 2)D*+ Ltd$6( IndiaRs leadin& "ousin& finance institution and a 1roup +ompany of t"e Standard Life( 9%$ )D*+ as on 3arc" 7?( /@@C "olds I?$L per cent of e,uity in t"e joint enture$ ;ur "ey stren4ths Financial .Bpertise As a joint enture of leadin& financial ser ices &roups( )D*+ Standard Life "as t"e financial e#pertise re,uired to mana&e your lon&-term in estments safely and efficiently$ /an4e of Solutions Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7/

Ke "a e a ran&e of indi idual and &roup solutions( !"ic" can be easily customi<ed to specific needs$ Our &roup solutions "a e been desi&ned to offer you complete fle#ibility combined !it" a lo! c"ar&in& structure

;ur arenta4e )D*+ Limited$ )D*+ is IndiaAs leadin& "ousin& finance institution and "as "elped build more t"an /7( @@( @@@ "ouses since its incorporation in ?LCC$ In *inancial ;ear /@@7-@B its assets under mana&ement crossed Rs$ 7D(@@@ +r$ As at 3arc" 7?( /@@B( outstandin& deposits stood at Rs$ C(IB@ crores$ T"e depositor base no! stands at around ? million depositors$ Rated VAAAA by +RISIL and I+RA for t"e ?@t" consecuti e year Stable and e#perienced mana&ement )i&" ser ice standards A!arded T"e Economic Times +orporate +iti<en of t"e year A!ard for its lon&-standin& commitment to community de elopment$ Presented t"e VDream )omeA a!ard for t"e best "ousin& finance pro ider in /@@B at t"e t"ird Annual Outloo' 3oney A!ards$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 77

Standard Life <roup $Standard Life plc and its su'sidiaries& T"e Standard Life &roup "as been loo'in& after t"e financial needs of customers for o er ?I@ years It currently "as a customer base of around C million people !"o rely on t"e company for t"eir insurance( pension( in estment( ban'in& and "ealt"-care needs Its in estment mana&er currently administers W?/= billion in assets It is a leadin& pensions pro ider in t"e 9%( and is rated by Standard & PoorRs as Rstron&R !it" a ratin& of AX and as R&oodR !it" a ratin& of A? by 3oodyRs Standard Life !as a!arded t"e R0est Pension Pro iderR In /@@B( /@@= and /@@D at t"e 3oney 3ar'etin& A!ards( and it !as oted a = star life and pensionAs pro ider at t"e *inancial Ad iser Ser ice A!ards for t"e last ?@ years runnin&$ T"e R= StarR since its inception in ?LLI$ accolade "as also been a!arded to Standard Life In estments for t"e last ?@ years( and to Standard Life 0an'

;ur Cision RT"e most successful and admired life insurance company( !"ic" means t"at !e are t"e most trusted company( t"e easiest to deal !it"( offer t"e best alue for money( and set t"e standards in t"e industryR$ RT"e most ob ious c"oice for allR$ ;ur Calues :alues t"at !e obser e !"ile !e !or'G Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7B

 Inte&rity Inno ation +ustomer centric People +are -One for all and all for one. Team !or' 5oy and Simplicity Accolades and /eco4nition Rated by R0usiness !orldR as RIndiaRs 3ost Respected Pri ate Life Insurance +ompanyR in /@@B Rated as t"e Q0est 4e! Insurer - /@@7Q by Outloo' 3oney ma&a<ine( IndiaAs number ? personal finance ma&a<ine

)A-;/

LA=./S I8 I8S9/A8C. I8D9S,/=

3%LIF. I8S9/A8C. C;/ ;/A,I;8 $LIC& Life insurance made its debut in India !ell obBer ?@@ years a&o$ Its salient features are not as !idely understood in our county( as t"ey ou&"t to be$ K"at follo!s is an attempt to ac,uaint readers !it" some of t"e concept of life insurance( !it" special reference to LI+$ It s"ould( "o!e er( be clearly understood t"at t"e follo!in& narration is by no means an e#"austi e description of terms and conditions of LI+ policy or its benefits or pri ile&es$ *or more details( please contact our branc" or di isional office$ An LI+ it !ill be &lad to "elp you c"oose t"e life insurance plan to meet your needs and render policy ser icin&$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7=

0%ICICI /9D.8,IAL I+I+I Prudential life insurance company is a joint enture bet!een I+I+I ban'( a premier financial po!er"ouse and prudential plc$ A leadin& international financial ser ice &roup "ead,uartered in t"e 9nited %in&dom$ I+I+I prudential !as amon&st t"e first pri ate sector insurance company to bein& operations in December /@@@ after recei in& appro al from Insurance Re&ulatory De elopment Aut"ority 2IRDA6 $ I+I+I Prudential e,uity base CB> and /D> sta'e respecti ely$

In t"e period April-December /@@B( t"e company &arnered Rs$ 0illion of ne! business premium for a total sum assured of o er Rs C7$D billion and !rote nearly 7B=@@@ policies$ T"e company "as a net!or' of o er =@@@@ ad isorO as !ell as C ban' assurance tie-ups$ Today( I+I+I Prudential "as emer&ed as t"e 4o -? Pri ate Life insured in t"e country$ Kit" a !ide ran&e of fle#ible products t"at meet t"e needs of t"e customer at e ery step in life$ 3.BA A A!!IA"#$ %HARED &I%I'" A "ouse"old name in India teams up !it" a &lobal con&lomerateS 0ajaj Auto Ltd( t"e fla&s"ip company of t"e Rs$ I@@@ corers 0ajaj &roup is t"e lar&est manufactured of t!o- !"eelers and t"ree-!"eelers in Indian and one of t"e lar&est in t"e !orld$ A "ouse"old name in India( 0ajaj Auto "as a stron& brand ima&e and locality synonymous !it" ,uality and customer focus$ Kit" o er ?=@@@ employees( t"e company is a Rs$ B@@@ crores auto &iant$ It is t"e lar&est /M7 !"eelers manufactured in India and t"e Bt" in t"e !orld $AAA rated by crises( 0ajaj auto "as in an operation for o er == years$ It "as joined "ands !it" Allian< to pro ide t"e Indian consumer !it" a distance option in term of life insurance products$ As a promoter of 0ajaj Allian< Life Insurance +o$ Ltd$ 0ajaj auto "as follo!in& to offer*inancial Stren&t" and Stability to support t"e Insurance 0usiness$ A Stron& 0rand-e,uity$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7D

A &ood mar'et reputation as a !orld class or&ani<ation$ Ade,uate e#perience of rBunnin& a lar&e or&ani<ation$ A ?@ million stron& base of retail customers usin& 0ajaj Products$ :hy HDFC is 'etter AG ?$ Investment returns@ in estment returns and business &ro!t" pro ided by )D*+ is alidated by bajaj +apital report$ )D*+ pacify t"e need of in ertors up to "ealt"y le el and ma'e t"e stron& relations"ip !it" t"em$ /$ Financial Bac"4round and .Bperience @ )D*+ e#istin& in t"e mar'et since ?LCC$ It "as a ery "andsome e#perience in t"e field of finance because it completely in ol ed in finance Sector only !"ere as t"e ot"ers are runnin& in many ot"er field also li'e Reliance 2Petroleum( Te#tile( Telecom etc$6 7$ .thics and Calues@ )D*+ is an et"ical and cultural or&ani<ation !"ic" pre ents t"e false sellin& and pro"ibits t"e false commitment to t"e customer$ B$ Sales Force@ Properly trend licensed and Educated People are t"e stren&t" of t"e company$ So t"at t"ey could &i e t"e best customer ser ice$ =$ )u&e branc" net!or' )D*+ is "a in& B=@ branc"es in all o er t"e country$ D$ ;nline accessi'ility@ It ma'es t"e process faster and ma'es t"e customer deli&"ted$ Financial consultant in HDFC Section B/2B6 of t"e amended Insurance Act( ?L7I states an a&ent to be one !"o is notG A minor$ *ound to be sound mind by a court of competition jurisdiction$ *ound &uilty of criminal bac'&round$ *ound &uilty of "a in& 'no!in&ly participated in or conni ed at any fraud Mdis"onesty or misrepresentation a&ainst an insured$ :or" of financial consultant@ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7C

T"e *+ is t"e interface bet!een t"e customer and insurance company$ T"e a&ent s"ould be able to accomplis" t"e follo!in& ser iceG Assessin& and analy<in& t"e clients ris' profile$ *indin& t"e best product or products a ailable in t"e mar'et$ 4e&otiatin& t"e best deal a ailable$

+O3PETITOR O* )D*+SLI+

AS !e 'no! t"at t"is time insurance sector in on boom$ Reason is t"at it &i es more profit not only to t"e company but also to t"e in estor$ Today company in est money not only in &o ernment securities and bonds but also in t"e e,uity !"ic" &i es more return t"an t"e &o ernment securities and bonds( and ban' deposits$ In t"e mar'et lots of insurance company !"o are tryin& to capture more and more mar'et s"are$ T"ere are se enteen insurance companies in t"e mar'et !"ic" are launc"in& plans after plans for capturin& mar'et s"are$ T"ese insurance companies are t"usG4o$ ?$ Life Insurance +orporation /$ I+I+I Prudential 7$ State 0an' Of India Life Insurance B$ )D*+ SLI+ Limited =$ Tata AI1 Life insurance D$ 0ajaj Allian< 4ame of Insurance company +o$ Lo&o

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7I

I$ 3A8 Life Insurance L$ A i a Life insurance ?@$ In& Life Insurance ??$ 0irla Sunlife Insurance ?/$ 0"artia#aLife Insurance

LA8S ,HA, A/. ;FF./.D B= HDFC S,A8DA/DS LIF. I8S9/A8C. At )D*+ Standard Life( !e offer a bou,uet of insurance solutions to meet e ery need$ Ke cater to bot"( indi iduals as !ell as to companies loo'in& to pro ide benefits to t"eir employees$ T"is section &i es you details of all our products$ Ke "a e incorporated arious do!nloadable forms and product details so t"at you can ma'e an informed c"oice about buyin& a policy$ *or indi iduals( !e "a e a ran&e of protection( in estment( pension and sa in&s plans t"at assist and nurture dreams apart from pro idin& protection$ ;ou can c"oose from a ran&e of products to suit your life-sta&e and needs$ *or or&ani<ations !e "a e a "ost of customi<ed solutions t"at ran&e from 1roup Term Insurance( 1ratuity( Lea e Encas"ment and Superannuation Products$ T"ese affordable plans apart from pro idin& lon& term alue to t"e employees "elp in en"ancin& &ood!ill of t"e company$ Individual roducts

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 7L

Ke at )D*+ Standard Life reali<e t"at not e eryone "as t"e same 'ind of needs$ %eepin& t"is in mind( !e "a e a aried ran&e of Products t"at you can c"oose from to suit all your needs$ T"ese !ill "elp secure your future as !ell as t"e future of your family$ 2E$&$ c"ildren plan6 rotection lans ;ou can protect your family a&ainst t"e loss of your income or t"e burden of a loan in t"e e ent of your unfortunate demise( disability or sic'ness$ T"ese plans offer aluable peace of mind at a small price$ Our Protection ran&e includes our -Term Assurance Plan & Loan +o er Term Assurance Plan.2E$&$ unit lin' plan 6

Investment lans )D*+ SLI+As -Sin4le remium :hole of Life plan! is !ell suited to meet lon& term in estment needs$ T"is pro ides attracti e lon& term returns t"rou&" re&ular bonuses$ ension lans Pension Plans "elp to secure financial independence e en after retirement$ Pension ran&e includes. 2 .%4% ersonal ension lan( 9nit Lin"ed ension( 9nit Lin"ed ension lus&!$ Savin4s lans Sa in&s Plans offer a fle#ible option to build sa in&s for future needs suc" as buyin& a dream "ome or fulfillin& your c"ildrenAs immediate and future needs$ Sa in&s ran&e includes2 E$&$ .ndowment Assurance lan( 9nit Lin"ed .ndowment( 9nit Lin"ed .ndowment lus( 9nit Lin"ed .ndowment lus II( Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! B@

)oney Bac"( 9nit Lin"ed .nhanced Life rotection II( ChildrenHs lan7 9nit Lin"ed =oun4 Star( 9nit Lin"ed =oun4 Star lus( 9nit Lin"ed =oun4 Star lus II&$ <roup roducts ;ne(stop shop for employee('enefit solutions )D*+ Standard Life "as t"e most compre"ensi e list of products for pro&ressi e employers !"o !is" to pro ide t"e best and most inno ati e employee benefit solutions to t"eir employees$

94IT LI4%ED I4S9RA4+E PROD9+TS 29LIP6

9LI 7 A8 I8S9/A8C.

/;D9C, :I,H A ,:;(I8(;8.!

F.A,9/.7 IS D.SI<8.D ,; CA//= B.8.FI,S ;F B;,H7 A8 I8S9/A8C. C;C./ AS :.LL AS )A/*., /.LA,.D I8C.S,).8, /.,9/8S%%%

A 9nit Lin'ed Insurance Plan( Popularly %no!n as 9LIP( is 0lend of an insurance and in estment product$ It combines a life co er !it" an in estment plan( but unli'e a traditional plan money bac' or endo!ment plan( in estment returns are not &uaranteed in t"e case of 9LIPs$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! B?

9LIP( by its nature( is not a product t"at is meant to ma#imi<e returns li'e e,uity in estments eit"er directly or t"rou&" mutual funds$

Introduction Same Aspects )uman bein& by nature is ery comple#$ It is t"e "uman brain( !"ic" directs all t"e acti ities of a "uman bein&$ T"e be"a ior is t"e response of stimuli$ +onsumer is t"e focus of mar'etin& effort$ +onsumer is li'e a 'in& and all t"e attention is paid to t"e customers$

Desire N is a !ant( !"ic" an indi idual is actually a!are of not "a in& reali<ed$ 8eed N is a !ant t"at is a basic re,uirement or a uni ersal !ant$ :ant N a cluster of attributes no all of !"ic" must be possessed by an offerin&$ Belief N 3ental acceptance of a claim as trut"$ <oal - t"e state of affairs t"at a plan is intended to ac"ie e and t"at 2!"en ac"ie ed6 terminates be"a ior intended to ac"ie e it

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! B/

D.FI8.,I;8S ;F C;8S9)./ B.HACI;9/ -+onsumer be"a ior is all psyc"olo&ical( social and p"ysical be"a iors of potential consumers as t"ey become a!are of( e aluate purc"ase( consume and tell ot"er people about products and ser ices$. - Kebster -+onsumer buyin& be"a ior refers to t"e 0uyin& 0e"a ior of final consumers N indi idual )ouse"olds !"o buy &oods &ser ice for personal consumption.$ sycholo4y of Consumer *nowled4e I It is one type of information and on its 'asis7 the psycholo4y of customers develop% Attitude I It is a state of mind or feelin4% It includes a predisposition to 'ehave in some way% Intention I It means desires to do somethin4% )otive I It is the inte4ral state which directs the 'ehavior of a person% It is also called as ur4e% %otler & Armstron&

.Bternal environmental varia'les influencin4 Behavior Cultural Influence Su'(cultural Influence Social Class Influence Social <roup Influence Family Influence ersonal Influence

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! B7

+onsumer 0uyin& 0e"a ior )o! +onsumer 0uySSSSS$F ?$ 4eedMKantMDesire is reco&ni<ed In t"e first step t"e consumer "as determined t"at for some reason "eMs"e is not satisfied 2i$e$( +onsumerAs percei ed actual condition6 and !ants to impro e "isM"er situation 2i$e$( consumerAs Percei ed desired condition6 $ *or instance( internal tri&&ers( suc" as "un&er or t"irst( may tell t"e +onsumer t"at food or drin' is needed$ E#ternal factors can also tri&&er consumerAs needs$ 3ar'eters Are particularly &ood at t"is t"rou&" ad ertisin&( in-store displays and e en t"e intentional use of scent 2E$&$-perfume counters$6

/$ Searc" for Information Assumin& consumers are moti ated to satisfy "is or "er need( t"ey !ill ne#t underta'e a searc" for Information on possible solutions$ T"e sources used to ac,uire t"is information may be as simple as Rememberin& information from past e#perience 2i$e$ memory6 or t"e consumer may e#pend considerable effort to locate information from outside sources$ )o! muc" effort t"e consumer directs to!ard searc"in& depends on suc" factors as t"e importance of satisfyin& t"e need( familiarity !it" a ailable solution( and t"e amount of timer a ailable to searc"$ 7$ E aluate Options +onsumersA searc" efforts may result in a set of options from !"ic" a c"oice can be made$ It s"ould :ie! of t"e purc"ase 2e$&$ friend is critical of purc"ase6$ 0e noted t"at t"ere may be t!o le els to t"is sta&e$ At le el one t"e consumer may create a set of Possible solutions to t"eir needs 2i$e$( product types6 !"ile at le el t!o t"e consumer may be E aluatin& particular Products 2i$e$( brands6 !it"in eac" solution$ *or e#ample( a consumer !"o Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! BB

4eeds to replace a tele ision "as multiple solutions to c"oose from suc" as plasma( L+D and +RT Tele ision$ B$ Purc"ase In many cases t"e solution c"osen by t"e consumer is t"e same as t"e product !"ose e aluation is T"e "i&"est$ )o!e er( t"is may c"an&e !"en it is actually time to ma'e t"e purc"ase$ T"e -intended. Purc"ase may be altered at t"e time of purc"ase for many reasons suc" as t"e product is out-ofStoc'( a competitor offers an incenti e at t"e point-purc"ase 2e$&$ store salesperson mentions a +ompetitorAs offer6( t"e customer lac's t"e necessary funds =$ After-Purc"ase E aluation Once t"e consumer "as made t"e purc"ase t"ey are faced !it" an e aluation of t"e decision$ If t"e Product performs belo! t"e consumerAs e#pectation t"en "eMs"e !ill re-e aluate satisfaction !it" t"e Decision( !"ic" at its e#treme may result in t"e consumer returnin& t"e product !"ile in less e#treme Situations t"e consumer !ill retain t"e purc"ased item but may ta'e a ne&ati e ie! of t"e product$ Suc" e aluations are more li'ely to occur in cases of e#pensi e or "i&"ly important purc"ases$ To )elp ease t"e concerns consumers "a e !it" t"eir purc"ase e aluation( mar'eters need to be Recepti e and e en encoura&e consumer contact$ +ustomer ser ice centers and follo!-up mar'et Researc" is useful tools in "elpin& to address purc"asersA concerns$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! B=

Detail Study ;n Hdfc Slic roducts 98I, LI8*.D =;98< S,A/ L9S A8D 94IT LI4%ED ;O941 STAR

Invest in your childs dreams and secure your future )D*+ 94IT LI4%ED ;O941 STAR & ;O941 STAR PL9S Invest in your c"ildAs dreams( and secure your self-respect$ As a parent( your priority is your c"ildrenRs future and bein& able to meet t"eir dreams and aspirations$ Today( pro idin& a &ood education( establis"in& a professional career or e en a modest !eddin& is e#pensi e$ +osts are risin& fast$ 5ust ima&ine "o! muc" you !ill need !"en your c"ildren ta'e t"ese important steps in life$ Plan today to ensure a bri&"t future for your c"ildren$ Start sa in& today !it" our )D*+ 9nit Lin'ed ;oun& Star Plus so t"at your c"ild is able to lead a life of respect and di&nity !it" a secured financial future$

T"e )D*+ 9nit Lin'ed ;oun& Star Plus &i es youG An outstandin& in estment opportunity by pro idin& a c"oice of t"orou&"ly researc"ed and selected in estments Re&ular Loyalty 9nits to boost your fund alue e ery year :aluable protection to your c"ild in case you are not around

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! BD

*le#ible benefit combinations and payment options *le#ible additional benefit options suc" as critical illness co er Access to your accumulated fund before maturity ;ou can c"oose your premium and t"e in estment fund or funds$ Ke !ill t"en

in est your premium( net of premium allocation c"ar&es in your c"osen funds in t"e proportion you specify$ At t"e end of t"e policy term( you !ill recei e t"e accumulated alue of your funds$ In case of your unfortunate demise durin& t"e policy term( !e !illG Pay t"e Sum Assured you "ad c"osen to your c"ild$ +ontinue your policy and continue to pay t"e ori&inal re&ular premiums you "ad c"osen$ T"is means !e !ill continue to ma'e your sa in&s on your be"alf( in your absence$ T"e fund !ill be a ailable for your familyRs use until t"e ori&inal 3aturity Date$ 9se )D*+ Standard LifeRs e#cellent in estment options to ma#imi<e your sa in&s & ma#imi<e your c"ildRs ac"ie ements$ Ke !ill pro ide financial security for your c"ild$ All 9nit Lin'ed Life insurance plans are different from traditional insurance plans and are subject to different ris' factors$ )D*+ Standard Life is t"e name of our Insurance +ompany and )D*+ 9nit Lin'ed ;oun& Star Plus is t"e name of t"is plan$ T"e name of our company and t"e name of our plan do not( in any !ay( indicate t"e ,uality of t"e plan( its future prospects or returns$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! BC

EAS; STEPS TO ;O9R OK4 PLA4 Step 3G +"oose t"e premium you !is" to in est T"is is t"e premium you !ill continue to pay eac" year of t"e policy$ T"e min$ re&ular premium is Rs$ ?@(@@@$ ;ou can pay mont"ly 2usin& Standin& Instructions or E+S 3andate6( ,uarterly( "alf-yearly or annually$ Step /G /G +"oose t"e amount of protection 2Sum Assured6 you desire ;ou can c"oose any amount of Sum Assured !it"G A minimum of = times your c"osen annual re&ular premium A ma#imum of B@ times your c"osen annual re&ular premium$ Step 7G 7G +"oose t"e additional plan benefits you desire Ke offer a ran&e of aluable protection option to secure t"e future for your family$ ;ou can c"oose any one of t"e follo!in& benefit optionsG Life OptionHDeat" 0enefit Life & )ealt" OptionHDeat" 0enefit X +ritical illness 0enefit Ke "a e D funds for you$ ;ou can c"oose fund in !"ic" you !ant to in est F.A,9/.S ;F ,H. LA8 Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! BI

Step BG BG +"oose t"e in estment fund or funds you desire

Top-9ps

At inception( subject to Sum Assured limits At any ot"er time( top-up allo!ed is

*res" top-ups X total top-ups !it"out co er is less t"an /=> of t"e total re&ular premiums 1race Period 0ac'datin& ?= Days Policies cannot be bac'dated$ )D*+ !ill pay t"e Sum Assured to beneficiary$ Deat" 0enefit *uture premiums !ill pay by )D*+ on be"alf of policy"older Any critical illness co er terminates immediately$ All ris' c"ar&es !ould cease to be le ied follo!in& t"e alid deat" claim T"e policy !ill terminate on maturity$ )D*+ !ill pay t"e Sum Assured to beneficiary$ +ritical Illness 0enefit T"e Deat" 0enefit +o er terminates immediately T"e ris' co er ceases and t"e uniti<ed fund alue is 3aturity 0enefit payable$ T"e policy"older "as t"e option to ta'e "is fund in periodical installments o er t"e period t"at may e#tend to = years$ After = years( remainin& fund alue returned to t"e policy"older$ Loyalty 0enefit 2Applicable to 9L;S plus only6 At t"e end of e ery policy year !e !ill increase t"e number of units in eac" of t"e funds by @$?@> as lon& as t"e policy is in force or paid-up$ 4o furt"er premiums are e#pected to be payable$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! BL

Surrender 0enefit

T"e policy can be surrendered after completion of 7 years$ T"e amount payable !ill be uniti<ed alue less additional surrender c"ar&e( if any$ T"e policy"older "as t"e option of ma'in& lump sum

!it"dra!als at any time after t"e 7rd policy anni ersary( !"ile t"e policy is in force( subject to t"e follo!in& conditionsG T"e !it"dra!al amount is &reater t"an t"e minimum of Rs$ ?@(@@@$ Kit"dra!als 0enefit T"e uniti<ed fund alue after t"e lump sum !it"dra!al and t"e !it"dra!al c"ar&es is not less t"an an amount e,ual to t"e ori&inal annuali<ed re&ular premium amount$ T"e uniti<ed fund alue after t"e lump sum !it"dra!al and any !it"dra!al c"ar&es is not less t"an t"e total alue of top-ups made in t"e last 7 years e#cludin& any Top ups in t"e last 7 years of t"e contract term$ Lapse and Paid-up T"e policy paid-up can be made paid up( pro idedG At least 7 years premium "as been paid and T"e policy "as accumulated sufficient policy premium Ot"er!ise( !e may surrender t"e policy and !ill return any fund after any surrender c"ar&es$ E en after a policy "as been altered to paid-up( )D*+SL !ill Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =@ alue$

+urrently( t"is amount is ori&inal annuali<ed re&ular

continue to collect usual c"ar&es on eac" mont"$

94IT LI4%ED E4DOK3E4T PL9S A4D 94IT LI4%ED E4DOK3E4T

Invest in financial security and self-respect for you and your family.

)D*+ 94IT LI4%ED E4DOK3E4T & E4DOK3E4T PL9S In est in financial security and self-respect for you and your family$ ;ou "a e &i en your family t"e ery best and t"ere is no reason !"y t"ey s"ould not &et t"e ery best in t"e future too$ Kit" )D*+ 9nit Lin'ed Endo!ment Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =?

Plus( you can ensure t"at your family remains financially independent( e en if you are not around$ ;ou can ensure t"at t"ey li e a life of respect and di&nity$$ T)E )D*+ 94IT LI4%ED E4DOK3E4T PL9S 1I:ES ;O9G An outstandin& in estment opportunity by pro idin& a c"oice of t"orou&"ly researc"ed and selected in estments$

Re&ular Loyalty 9nits to boost your fund alue e ery year :aluable protection to your c"ild in case you are not around *le#ible benefit combinations and payment options *le#ible additional benefit options suc" as critical illness co er Access to your accumulated fund before maturity ;ou can c"oose your premium and t"e in estment fund or funds$ Ke !ill t"en

in est your premium( net of premium allocation c"ar&es in your c"osen funds in t"e proportion you specify$ At t"e end of t"e policy term( you !ill recei e t"e accumulated :alue of your funds $

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =/

*EAT9RES O* T)E PLA4 Top-9ps At inception( subject to Sum Assured limits At any ot"er time( top-up allo!ed is

*res" top-ups X total top-ups !it"out co er is less t"an /=> of t"e total re&ular premiums 1race Period 0ac'datin& ?= Days Policies cannot be bac'dated$ 1reater of t"e uniti<ed fund alue and t"e sum assured less Deat" 0enefit any deat" !it"dra!als made durin& t"e t!o-year period immediately precedin& t"e date of intimation to )D*+ SL of

1reater of t"e uniti<ed fund alue and t"e sum assured less +ritical Illness 0enefit any !it"dra!als made durin& t"e t!o-year period immediately precedin& t"e date of intimation to )D*+ SL of +ritical Illness

Accidental Deat" 0enefit

An additional sum assured if deat" occurs as a result of an accident$

3aturity 0enefit

T"e ris' co er ceases and t"e uniti<ed fund alue is payable$ T"e policy"older "as t"e option to ta'e "is fund in periodical installments o er t"e period t"at may e#tend to = years$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =7

After = years( remainin& fund alue returned to t"e policy"older$

Loyalty 0enefit 2Applicable to 9LE plus only6

At t"e end of e ery policy year !e !ill increase t"e number of units in eac" of t"e funds by @$?@> as lon& as t"e policy is in force or paid-up$

Surrender 0enefit

T"e policy can be surrendered after completion of 7 years$ T"e amount payable !ill be uniti<ed additional surrender c"ar&e( if any$ alue less

T"e policy"older "as t"e option of ma'in& lump sum !it"dra!als at any time after t"e 7rd policy anni ersary( !"ile t"e policy is in force( subject to t"e follo!in& conditionsG Kit"dra!als 0enefit T"e !it"dra!al amount is &reater t"an t"e minimum of Rs$ ?@(@@@$ T"e uniti<ed fund alue after t"e lump sum !it"dra!al and t"e !it"dra!al c"ar&es is not less t"an an amount e,ual to t"e ori&inal annuali<ed re&ular premium amount$ T"e uniti<ed fund alue after t"e lump sum !it"dra!al and !it"dra!al c"ar&es is not less t"an sum all top-ups paid to date$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =B

Lapse and Paid-up

T"e policy paid-up can be made paid up( pro idedG At least 7 years premium "as been paid and T"e policy "as accumulated sufficient policy alue$ +urrently( t"is amount is ori&inal annuali<ed re&ular premium Ot"er!ise( !e may surrender t"e policy and !ill return any fund after any surrender c"ar&es$ E en after a policy "as been altered to paid-up( )D*+SL !ill continue to collect usual c"ar&es on eac" mont"$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ==

94IT LI4%ED PE4SIO4 PL9S A4D 94IT LI4%ED PE4SIO4

Lead a life of respect and dignity.

)D*+ 94IT LI4%ED PE4SIO4 & PE4SIO4 PL9S Lead a life of respect and di&nity$ E en after retirement$ Today( people are busy climbin& t"e ladder of success and reali<in& t"eir dreams$ Today( time is !it" t"em$ 5ust ta'e a moment and t"in'$ Kill t"ey be able to continue at t"e same paceF Kill t"eir income be t"e same fore erF Kill t"ey be able to li e life on t"eir o!n terms e en after t"eir retirementF T"e )D*+ 9nit Lin'ed Pension Plus is an insurance policy t"at is desi&ned to pro ide a retirement income for life !it" t"e freedom to ma#imi<e in estment returns$ Stride into your &olden years of retirement !it" di&nity and pride$

T)E )D*+ 94IT LI4%ED PE4SIO4 PL9S 1I:ES ;O9G An outstandin& in estment opportunity by pro idin& a c"oice of t"orou&"ly researc"ed and selected in estments Re&ular Loyalty 9nits to boost your fund alue e ery year A post retirement income for life *le#ibility to plan your retirement date *reedom to in est premiums as per your preference ;ou can c"oose your premium and t"e in estment fund or funds$ Ke !ill t"en in est your premium( net of premium allocation c"ar&es in your c"osen funds in t"e proportion you specify$ At t"e end of t"e policy term( you !ill Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =D

recei e t"e accumulated alue of your funds( !"ic" !ill be used to pro ide your pension income$ In t"e e ent of your unfortunate demise durin& t"e policy term( your spouse !ill recei e a cas" lump sum to "elp "im or "er mana&e t"e retirement years$ 9se )D*+ Standard LifeRs e#cellent in estment options to ma#imi<e your sa in&s & secure your &olden years$ DonRt compromise on self-respect( e er$ 1o a"ead( "old your "ead "i&" and enjoy life !it" t"e )D*+ 9nit-Lin'ed Pension Plus$

*EAT9RES O* T)E PLA4 1race Period 0ac'datin& Deat" 0enefit ?= Days Policies cannot be bac'dated$ 0enefit on :estin& T"e uniti<ed fund alue !ill be payable$ T"e policy !ill cease in t"e e ent of t"e claim$ On estin&( t"e uniti<ed fund alue !ill be a ailable for purc"asin& annuities$ ?M7 part of t"e uniti<ed fund alue can be ta'en as a cas" lump sum and t"e rest con erted to an annuity$ Policy"older can buy t"e annuity from )D*+ SL or any ot"er insurer$

Surrender 0enefit

T"e policy can be surrendered after completion of 7 years$ T"e amount payable !ill be uniti<ed alue less additional surrender c"ar&e( if any$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =C

Loyalty 0enefit 2Applicable to 9LP plus only6 Kit"dra!als 0enefits

At t"e end of e ery policy year !e !ill increase t"e number of units in eac" of t"e funds by @$?@> as lon& as t"e policy is in force or paid-up$ 4o !it"dra!als are permitted durin& t"e term of t"e contract$

Lapse and Paid-up

T"e policy paid-up can be made paid up( pro idedG At least 7 years premium "as been paid and T"e policy "as accumulated sufficient policy alue$ +urrently( t"is amount is ori&inal annuali<ed re&ular premium

F98DS ACAILABL. F;/ I8C.S,).8, I8 98I, LI8*.D /;D9C,S

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =I

*94DS

DETAILS

ASSET +LASS 0an' 1o t$ Deposits Securities E,uit & 3oney & y 3ar'et 0onds *94D +O3POSITIO4 ?@@> ---

RIS% & RET9R4 RATI41

Li,uid *und Secure 3ana&ed *und Defensi e 3ana&ed *und

0alanced 3ana&ed *und

E,uity 3ana&ed *und

1ro!t" *und

E#tremely lo! capital ris' :ery stable return 3ore capital stability t"an e,uity funds )i&"er potential return li,uid fund Access to better lon&term returns t"rou&" e,uities Si&nificant bond e#posure 'eeps ris' do!n Increased e,uity e#posure &i es better lon&-term return 0ond e#posure pro ides some stability *urt"er increased e#posure to e,uities to &i e a &reater lon&term return A smaller bond "oldin& !ill aid di ersification & pro ide a little stability *or t"ose !"o !is" to ma#imi<e t"eir returns ?@@> in estment in "i&" ,uality Indian e,uities

Lo! Lo! 3oderate

--

?@@>

--

--

C@> to I=>

?=> to 7@>

3oderate

--

B@> to C@>

7@> to D@>

)i&"

--

@> to B@>

D@> to ?@@>

:ery )i&"

--

--

?@@>

:ery )i&"

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! =L

In estment 1uarantees

)D*+ !ill not pro ide any in estment &uarantee on t"e Returns of t"e 9nit-Lin'ed funds$

+O3PARATI:E A4AL;SIS +omparison bet!een )D*+ 9nit Lin'ed ;oun& Star Plus and I+I+I Smart %id 4e! 9LRPG

)D*+ 94IT LI4%ED ;O941 STAR PL9S :MS I+I+I S3ART%ID 4EK 9LRP )D*+ 9nit Lin'ed ;oun& Star Plus 1ro!t" *und *und 3ana&ement +"ar&e 0alanced 3ana&ed *und @$I@> @$I@> I+I+I Smart %id 4e! 9LRP 3a#imiser II *und 0alancer II *und ?$=@> ?$@@>

Policy Administration +"ar&e Premium Allocation +"ar&e ;ear ? ;ear / to = ;ear D to ?@ ;ear ??X Additional Allocation of 9nits

Rs$ /@ per mont"

Rs$ D@ per mont"

?@> to D@> ?> @$?> across all funds e ery year

?I> to /@> => /> ?> 4one

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! D@

Top-9ps

Allo!ed

4ot Allo!ed

S!itc"es

/B S!itc"es free in a policy year

B S!itc"es free in a policy year

ILL9STRATIO4 3AT9RIT; :AL9ES A&e of Parent Y 7@ years Premium Amount Y Rs$ =@(@@@ Premium 3ode Y Annual Sum Assured Y Rs$ =(@@(@@@ )D*+ 9nit Lin'ed ;oun& Star Plus 2*or 1ro!t" *und6 Assumed Rate of Return 2Rs$6 ?@> D> TER3 ?@ ;ears ?= ;ears /@ ;ears C(/D(=LL ?B(/L(C=? /=(@L(L/7 =(IC(IL@ ?@(/I(D7B ?=(II(LBC C(/7(=DD ?7(CD(CDC /7(B@(=@B =(I?(==? L(ID(7I@ ?B(I@(?== I+I+I Smart %id 4e! 9LRP 2*or 3a#imiser II *und6 Assumed Rate of Return 2Rs$6 ?@> D>

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! D?

S933ER; ?$ /$ 7$ B$ =$ D$ )D*+ 9nit Lin'ed ;oun& Star Plus "as lo!er c"ar&es o erall and "ence o erall "i&"er Illustrati e 3aturity :alues$ )D*+ 9nit Lin'ed ;oun& Star Plus "as lo!er *und 3ana&ement +"ar&e for e,uity funds$ )D*+ 9nit Lin'ed ;oun& Star Plus c"ar&es lo!er Policy Administration +"ar&e$ )D*+ 9nit Lin'ed ;oun& Star Plus &i es Additional 9nits e ery year$ )D*+ 9nit Lin'ed ;oun& Star Plus allo!s Premium Top 9ps$ )D*+ 9nit Lin'ed ;oun& Star Plus &i es /B s!itc"es$

RESEAR+) DESI14 ?6 Statement of t"e problem /6 Researc" objecti es 76 Researc" 3et"odolo&y Type of study Data collection Samplin& Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! D/

 Tools & tec"ni,ues B6 Scope of study =6 Limitations

>%3 ,I,L.@ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! >%0 Duration of pro#ect@ PRO5E+T D9RATIO4 KAS 7@ DA;S >%> Definin4 /esearch ro'lem Problem definition is t"e first & foremost part of t"e researc" process( !it"out t"is researc" cannot be completed until and unless t"ere is a problem or objecti e( t"e researc" cannot be initiated$ Problem definition refers to t"e objecti e on !"ic" researc" "as to be done( so problem definition in my project !or' is comparati e study of unit lin' products of )D*+-SLI+ & I+I+I Prudential Life Insurance +ompany and to 'no! !"ic" company can pro ide better ser ice to consumer$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! D7

;B-.C,IC.@ To 'no! about company "istory and or&ani<ation structure$ Pro ide an o er ie! of unit lin'ed plans of )D*+ standard life insurance company ltd$ & I+I+I Prudential +ompany$ To ma'e a comparati e performance of unit lin'ed plans To study t"e e#pectations of customers from insurance companies$ Position of Insurance +ompanies in t"e mind of t"e consumer

,= . ;F /.S.A/CH Researc" refers to searc" for 'no!led&e$ In ot"er !ords researc" is defined as a careful in esti&ation or in,uiry especially t"rou&" for ne! facts in any branc" of 'no!led&e$ Researc" 3et"odolo&y is one of t"e important aspects of any project$ T"is &i es us clear-cut ie! of met"od so used !"ile &at"erin& t"e information so needed for t"e completion of t"e report$ a6 ,ype of StudyG descripti e$ b6 Data Collection@ Source of DataG T!o types of data sources !ill be ta'en into consideration Primary Data Secondary Data rimary DataG T"e primary data are t"ose !"ic" are collected a fres" and for t"e first time and t"us "appen to be ori&inal in c"aracter$ 9nder t"is project direct collection of data from source of information & tec"ni,ues suc" as personal inter ie!in& and sur ey t"rou&" ,uestionnaire for customers "as been considered$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! DB

Secondary DataG Secondary data is one !"ic" "as already been collected by someone else and !"ic" "as already been passed t"rou&" statistical processin&$ 9nder t"is project secondary data is been collected from journals( ma&a<ines( & !eb sites$ >%? Sample SiDe and method of selectin4 sample Samplin& refers to t"e met"od of selectin& a sample from a &i en uni erse !it" a ie! to dra! conclusions about t"at uni erse$ A sample is a representati e of t"e uni erse selected for study$ >%?%3 ,ype of universe@ ,"e uni erse is t"e entire &roup of items t"e researc"er !is"es to study and about !"ic" t"ey plan to &enerali<e$ 9nder t"is project type of uni erse include people residin& in 5aipur Area$ >%?%0 Samplin4 9nit@ Samplin& units are t"e persons( !"o "a e purc"ased t"e insurance plan in 5aipur$ >%?%> SiDe of Sample@ 4umber of people sur eyed$ 1enerally lar&e Sample more reliable result t"an small sample$ T"e sample +onsist of ?@@ respondents$ >%?%+ Samplin4 rocedure@ Samplin& procedure refers to tec"ni,ue 9sed in selectin& t"e items for t"e sample$ 9nder t"is project selection of respondents is on t"e basis of con enience samplin&$ *or t"is sur ey +on enience- Samplin& tec"ni,ue is used$ >%?%E ,ools and ,echniJues@ SO9R+ES O* DATA PRI3AR; SO9R+E

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! D=

Our primary source of data collection !as sur ey in !"ic" !e collected data !it" t"e "elp of ,uestionnaire filled up by ?=@ readers$ SE+O4DAR; SO9R+E Directories of arious professions and industries suc" asG *I++I +II 1olf +lub 3edical Association 5aipur +lub Ladies +lub :%I Association E#porters Directories

>%K SC; . ;F ,H. S,9D= T"is study is mainly confined to t"e customer of 5aipur Area$ T"e si<e of sample is ?@@ respondents$ +omparison is done on t"e basis of secondary sources$ >%2 Limitations of the Study@ Time for t"e completion of t"e project !as too s"ort to do an in-dept" study$ T"e facts and concepts of Respondents may be biased( ima&inary and may be based entirely on t"eir personal e#perience$ 3ost of ,uestion in t"e ,uestionnaire !as closin& ended !"ic" reduced t"e scope for people to &i e free opinion$ T"e sample si<e !as not enou&" to reac" on any e#act conclusion$ Study is based on primary or secondary data t"at may not be true$ 3ost of t"e people are not interested to &i e t"e ri&"t data$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! DD

FAC,S A8D FI8DI8< A&ents play major role in a!arin& people about t"e benefits of insurance$ People t"in' insurance as a protection tool$ People purc"ase insurance policy mostly for protection purpose and some of people for sa in&$ T"e &ood!ill of t"e company also attracts customers to!ard a insurance company$ People also ta'e insurance policy as a security for t"eir c"ildren$ o People "a e more number of Life Insurance policies as compared to 4on Life Insurance$ o 3ajority of t"e respondents preferred M "a e LI+ policy since it !as t"e only option due to complete &o ernment control in insurance sector$ o 3ajority of t"e respondents belie e t"at co erin& future uncertainty is t"e most important benefit of an insurance policy$ o 3ajority of t"e respondents belie ed t"at lar&er ris' co era&e of t"eir policy !as t"e main feature of t"eir policy t"at attracted t"em to buy t"at policy t"ou&" lo! premium !as t"e neat important feature$ o Due to t"e increase concern of people to!ards t"eir "ealt"M life t"e Life Insurance business "as &ood prospects$ o Due to increased consumerism ne! product is launc"ed e eryday$ T"us 4on-Life M 1eneral Insurance business is also &oin& to "a e boom period$ o Out of total population of ? billion of country( only //> "a e insurance co er$ So !e can say t"at t"ere is still lar&e potential for bot" public and Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! DC

pri ate companies$ Pri ate companies "a e to &i e customi<ed product to compare !it" t"e LI+ !"ic" is "oldin& about LC> of t"e total mar'et$

A4AL;SIS & I4TERPRETATIO4 A4AL;SIS O* T)E ST9D; T"e in estment in 9nit Lin'ed Products is a ne! trend introduced in India !it" arious Insurance +ompanies into t"is se&ment$ T"is feature is rapidly &ro!in& in t"e Indian 3ar'et$ Today( arious in estment options a ailable in t"e mar'et$ T"e study e#plains t"at "o! people of 5aipur in est t"eir income$ T"e follo!in& dia&ram e#plains it ery !ell$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! DI

15%

30%

Mutual Fund Insurance Shares

30% 25%

Others

T"e study "as s"o!n t"at people of 5aipur are muc" interested in in estin& in 3utual *unds and S"ares t"an Insurance$ T"is is because of people are interested in s"ort-term in estment$ 0ut it is assumed by t"e studies t"at in upcomin& years t"is rate of in estment in insurance !ill increase rapidly$ Amon& ?C insurance +ompanies includin& LI+( t"e )D*+ Standard Life +ompany "as placed its position on pinnacle$ Eac" +ompany "as t"e 9nit Lin'ed Product in its portfolio$ 0ut )D*+As 9nit Lin'ed Products are customer centric and "a in& special features$ )D*+As ser ices are "i&"ly appreciable amon& insurance companies apart from its brand name$ )D*+ Standard Life Insurance +ompany is leadin& t"e mar'et in t"e Returns &i in& to its customers$ All its competitors are be"ind in t"e aspect of Returns$ )ere in t"is &i en c"art( it is s"o!n t"at "o! )D*+ Standard Life Insurance +ompany is a"ead from ot"er life insurance companies$

50 40 30 20 10 0 HDFC SL Tata AIG ICICI Aviva 1-YEAR 2-YEAR

Analysis of Consumers Behavior & performancePru towards various Investment and Life Insurance roducts of HDFC SLIC! DL

)D*+ SL pro ides 9LIP to its customer !it" special benefits !it" minimum c"ar&es$ T"e Policy Administration +"ar&e and *und 3ana&ement +"ar&e is Rs$ /@Mand @$I@> respecti ely( !"ic" are minimum in t"eir cate&ory$

0eside t"is )D*+ SL pro ide /B s!itc"es free in a policy year( ery a"ead t"an B free s!itc"es of I+I+I Prudential( %ota' Life and 7 free s!itc"es of 0ajaj Allian< Life Insurance$ )D*+ SL offers t"e Smart Transfer Option 2STO6 to its customer$ T"is is t"e facility to t"ose customers( !"o are un'no!n about t"e in estment mar'et and !ant s"are t"is responsibility to )D*+ SLAs fund man&ers$ Anot"er ad anta&e t"at )D*+ SL "as o er t"e ot"er Insurance +ompanies is t"e atmosp"ere at t"e ban' !"ic" ma'es t"e customers feels comfortable$ T"e ambience of t"e +ompany is desi&ned accordin& to t"e need of t"e clients$ +omparin& )D*+ SL !it" ot"er +ompanies( !e feel t"at t"e directions( broc"ures( etc are displayed in an appropriate manner !"ic" "elps t"e customer to a ail t"e ser ices re,uired by t"em$

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! C@

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! C?

Comp ny N me %l n N me Age Sum Assured %remium $oc2 in period Surrender llo3ed

!"#C Std. $ife Insur nce &oung st r '( to )5 +inimum,-s.'.**.*** + /imum,No limit +inimum,-s.'*. *** + /imum,no limit 1 ye rs After 1 ye rs4 no ch rges 5efore loc2 in period,1*6 of outst nding premium O%7 difference bet3een regul r premium e/pected 8 recei9ed in the first t3o ye rs

ICICI %ru life Insur nce $ife Time %lus * to )5 +inimum,-s.'.**.*** + /imum,'crore +inimum,-s.0*. *** + /imum,1.**.*** 1 ye rs After 1 ye rs4 you get :06 After 4 ye rs4 you get :46 After 5 ye rs4 you get :)6 After ) ye rs4 you get :(6 After ;ye rs 8 bo9e4 you get '**6 of fund 9 lue

"e th nd + turity

On "e th,Sum Assured < future premiums 3ill be gi9en by !"#C on the beh lf of policyholder. On m turity, = lue of ccumul ted fund is gi9en to the benefici ry. '. $i>uid #und 0. Secure + n ged #und 1. "efensi9e + n ged #und 4. 5 l nced + n ged #und 5. E>uity + n ged #und ). ?ro3th #und #or ccident. Critic l Illness, m /. -s.05.**.***

On "e th, Sum Assured < #und = lue 3ill be gi9en to the nominee. On + turity,#und 9 lue is gi9en to the policyholder

#und Option

+ /i miser ll 5 l ncer ll %rotector ll %reser9er

Term -ider

#or ccident. Critic l Illness. %erm nent "is bility

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! C/

Ch rges

#und +gmt. Ch rges, *.(*6 per nnum Administr tion Ch rges, -s.0* per +onth -is2 5enefit Ch rges, "epend upon the ge of the policyholder. % rti l @ithdr 3 l Ch rge, ) p rti l 3ithdr 3 l in policy ye r is free. All subse>uent p rti l 3ithdr 3 l in th t policy ye r 3ould be ch rged t -s.05* per 3ithdr 3 l. #und s3itching Ch rges. 04 s3itches llo3ed e9ery policy ye r free. Subse>uent s3itches 3ill be ch rged t -s. '** per s3itch premium

#und + n gement Ch rges,"ifferent Ch rges for different funds selected. + /i miser ll, '.5*6 p. . 5 l ncer ll,'.**6 p. . %rotector, *.;56 p. . %reser9er, *.;56 p. . Administr tion Ch rges, -s.)* per +onth % rti l @ithdr 3 l Ch rge,one p rti l 3ithdr 3 l in policy ye r is free. All subse>uent p rti l 3ithdr 3 l in th t policy ye r 3ould be ch rged t -s.'** per 3ithdr 3 l. S3itching Ch rges, 4 s3itches llo3ed e9ery policy ye r free. Subse>uent s3itches 3ill be ch rged t -s. '** per s3itch.

Comp ny N me %l n N me Age

!"#C Std. $ife Insur nce &oung st r 1) to *+

ICICI %ru life Insur nce !ife Ti(e Plus , to *+

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! C7

Sum Assured %remium

-ini(u(.Rs.1/,,/,,, -a0i(u(."o li(it -ini(u(.Rs.1,/ ,,, -a0i(u(.no li(it 3 2ears After 3 2ears$ no c3arges Before lock in 4erio5.3,6 of outstan5ing 4re(iu( 'P7 5ifference bet8een regular 4re(iu( e04ecte5 9 recei:e5 in t3e first t8o 2ears

-ini(u(.Rs.1/,,/,,, -a0i(u(.1crore -ini(u(.Rs.1,/ ,,, -a0i(u(.3/,,/,,, 3 2ears After 3 2ears$ 2ou get ;16 After < 2ears$ 2ou get ;<6 After + 2ears$ 2ou get ;*6 After * 2ears$ 2ou get ;)6 After =2ears 9 abo:e$ 2ou get 1,,6 of fun5 :alue 'n Deat3, Sum Assured < #und = lue 3ill be gi9en to the no(inee. On + turity.>un5 :alue is gi:en to t3e 4olic23ol5er

$oc2 in period Surrender llo3ed

"e th nd + turity

'n Deat3.Sum Assured < future premiums 3ill be gi9en by !"#C on the beh lf of policyholder. On m turity. &alue of accu(ulate5 fun5 is gi:en to t3e benefici ry. =. !i?ui5 >un5 ). %ecure -anage5 >un5 ;. Defensi:e -anage5 >un5 1,. Balance5 -anage5 >un5 11. E?uit2 -anage5 >un5 11. @ro8t3 >un5

#und Option

-a0i (iser ll Balancer ll Protector ll Preser:er

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! CB

Ch rges

>un5 -g(t. C3arges. ,.),6 4er annu( A5(inistration C3arges. Rs.1, 4er -ont3 Risk Benefit C3arges. De4en5 u4on t3e age of t3e 4olic23ol5er. Partial Wit35ra8al C3arge. * 4artial 8it35ra8al in a 4olic2 2ear is free. All subse?uent 4artial 8it35ra8al in t3at 4olic2 2ear 8oul5 be c3arge5 at Rs.1+, 4er 8it35ra8al. >un5 s8itc3ing C3arges/ 1< s8itc3es allo8e5 e:er2 4olic2 2ear free. %ubse?uent s8itc3es 8ill be c3arge5 at Rs. 1,, 4er s8itc3 4re(iu(

un5 -anage(ent C3arges. Different C3arges for 5ifferent fun5s selecte5. -a0i (iser ll.1.+,6 4.a. Balancer ll.1.,,6 4.a. Protector. ,.=+6 4.a. Preser:er. ,.=+6 4.a. A5(inistration C3arges. Rs.*, 4er -ont3 Partial Wit35ra8al C3arge.one 4artial 8it35ra8al in a 4olic2 2ear is free. All subse?uent 4artial 8it35ra8al in t3at 4olic2 2ear 8oul5 be c3arge5 at Rs.1,, 4er 8it35ra8al. %8itc3ing C3arges. < s8itc3es allo8e5 e:er2 4olic2 2ear free. %ubse?uent s8itc3es 8ill be c3arge5 at Rs. 1,, 4er s8itc3.

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! C=

/espondent rofile@ ( /espondent profile has 'een analyDed@ ( Lue% 3@ ( Awareness of HDFC Standard Life Insurance Company@( S% 8o% A B C D articulars Print 3edia Electronic 3edia A&ents Ot"ers /esponse /B 7@ 7= ??

40 35 30 25 20 15 10 5 0 Print Media Electronic Media Agents Others Series1

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! CD

I8,./ /.,A,I;8@( In t"is c"art( !e can see t"at t"e -A&ents play major role in a!arin& people about t"e )D*+-SLI+.$ Apart from t"is electronic media is also a source for a!areness$ /espondents5 response a'out the awareness of the Insurance Companies Lue% 0@ (:hat the people thin" a'out the Insurance S% 8o% A B C articulars 4ecessity for protection security Imposition of a burden of e#penses A compulsory tool for ta# sa in& /esponse DC ?C ?D

!0 0 60 50 40 30 20 10 0 Securit" E#$enses %a# Sa&ing Series1

I8,./ /.,A,I;8@( On t"e basis of abo e analysis( !e can say t"at people mostly treat insurance as a protection instrument$ DC people t"in' insurance as a necessity for -protection & security.$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! CC

Eue$ 7G - 3ain consideration t"at a customer loo's at !"ile purc"asin& an Insurance Policy$ S% 8o% A B C D . articulars TA8 SA:I41 PROTE+TIO4 PE4SIO4 I4:EST3E4T /esponse ?@ /L =7 7 =

60 50 40 30 20 10 0
a& in g %a # ct io n on &e st e' Pe ns i nt

Series1

Pr ot e

I8,./ /.,A,I;8@( On t"e basis of abo e analysis( !e can say t"at people purc"ase insurance policy mostly for t"e protection purpose. so use to purc"ase traditional plans$ Eue$ BG - K"at a respondent see !"ile purc"asin& Insurance from t"e companyF S% 8o% A articulars Standin& and &ood!ill of t"e company Ma4e BD

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! CI

In

B C D .

Product ran&e of t"e company Ad ertisement bein& released by t"e company Ser ices bein& &i en by t"e company Returns of bonus declared by t"e company

C 7 ?I /D

50 45 40 35 30 25 20 15 10 5 0
en t e Pr od uc t* an g ( oo d) ill Ad &e rti se ' Se r& i ce s *e tu rn

Series1

I8,./ /.,A,I;8@( On t"e basis of abo e analysis( !e can say t"at people prefer t"e companies t"ose "a e ery "i&"ly &ood!ill in t"e mar'et$ And apart from t"is !"ile purc"asin& t"em also use to &i e -more !ei&"t a&e to return -also$ Eue$ =G -Plan t"at a respondent prefers to buy S% 8o% A B C D articulars Protection Plan In estment Plan Pension Plan +"ildren Plan Ma4e BC ?L ?@ /B

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! CL

50 45 40 35 30 25 20 15 10 5 0
Pr ot ec tio n In &e st ' Pe ns i ld re n en t on

Series1

I8,./ /.,A,I;8@( On t"e basis of abo e analysis( !e can say t"at people prefer to buy -protection & c"ildren plans mostly.$ Eue$ DG - +ustomersA e#pectations from Life Insurance +ompanies S% 8o% A B C D . articulars Inno ati e Products Attracti e Riders Reasonable Premium 0etter +ustomer Ser ice )i&" Ris' +o era&e Ma4e = / /B BC //

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! I@

+h i

50 45 40 35 30 25 20 15 10 5 0
In no &a t i& e At tra ct i&e ce Pr e' Se r& i *i s, iu '

Series1

I8,./ /.,A,I;8@( On t"e basis of abo e analysis( !e can say t"at people e#pect better customer ser ice from t"e insurance companies & reasonable premium on t"eir -in estment.$ Eue$ CG - )D*+ Standard Life Insurance +ompany pro ides better facilities t"an I+I+I Prudential Life Insurance +ompany S% 8o% A B C articulars ;es 4o +ant say Ma4e 7B / DB

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! I?

0 60 50 40 Series1 30 20 10 0 -es .o +ant Sa"

I8,./ .,A,I;8@( On t"e basis of abo e analysis( !e can say t"at people are not a!are about t"ese companies so !e can not come on any conclusion$ Eue$ IG -Is t"e respondent satisfied !it" t"e plan "e bou&"tF S% 8o% A B C articulars ;es 4o I "a enAt bou&"t any /esponse DC ?C ?D

!0 0 60 50 40 Series1

30 Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! 20 10 0 -es .o /a&en0t

I/

I8,./ .,A,I;8@( On t"e basis of abo e analysis( !e can say t"at people are satisfied !it" t"e plans t"ey "a e bou&"t$ DA,A <IC.S .; L.5S ./C. ,I;8 ;8 A B9=I8< I8S9/A8C. /.S ;8S. After /= years After 7= years After B= years Anytime 8;% ;F /.S ;8D.8,S /L ?@ D == SHA/. $M& /L> ?@> D> ==> /; /IA,. A<. F;/

After 25 years 29% Anytime 55% After 35 years 10% After 45 years 6%

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! I7

I8,./ /.,A,I;8 /L> of t"e respondents are !it" t"e ie! t"at insurance s"ould be bou&"t after t"e a&e of /= years$ ?@> of t"e respondents are !it" t"e ie! t"at insurance s"ould buy after t"e a&e of 7= years$ K"ereas( ==> of t"e respondents are !it" t"e ie! t"at buyin& of

insurance do not "a e any t"in& to do !it" a&e i$e$ t"ere is no a&e limitations$ It can be purc"ased any time accordin& to t"e need$

S,/.8<,H

:..*8.SS

Country :ide /eco4nition FreJuent -o' /otation SKOT A4AL;SIS 8eed Base Analysis Less num'er of Same Standard Services in advertisements all Branches Hidden Char4es Fair Deal in all ,ransactions Customers Centric Approach Analysis of Consumers Behavior & performance towards various Investment and Infrastructu re roducts of HDFC SLIC! Insurance IB

;/,98I,=

,H/.A,
LIC5s Brand 8ame eople of -aipur prefer short(term investment rather than in insurance 9pcomin4 private insurance companies%

Scope in -aipur as it is in the developin4 phase ;nly 0EM of insura'le people have any insurance Hi4her possi'ility of 4rowth in Indian share )ar"et

C;8CL9SI;8 On t"e basis of my study( I conclude t"at( bot" t"e companies are pro idin& ery &ood facilities to t"eir customers$ )D*+ Standard Life Insurance is t"e one t"at is pro idin& !a ier of premium to its customer in case of deat" of t"e life assured( !"ereas I+I+I is not pro idin& t"is facility to its customers$ 0ot" t"e companies "a e same loc' in period i$e$7 years$ Surrender c"ar&es of t"ese companies are different from eac" ot"er$ On maturity( bot" t"e companies Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! I=

pro ide t"e amount e,ual to t"e mar'et alue of t"e units$ +"ar&es ta'en to mana&e t"e fund are different in bot" t"e companies$

RE+O33E4DATIO4S ?$ )D*+ SL can impro e upon its efficiency by not c"an&in& its staff fre,uently$ 0y doin& t"is ban' can continue to create( maintain and &ro! stron& relations"ip !it" e#istin& customers$ Idea be"ind t"is is t"at staff !"ic" is already !or'in& for ban' is !ell ac,uainted !it" t"e nature and !ants of t"e e#istin& customers$ /$ 9se of creati e ad ertisements to attract more and more tar&et customers and to create a!areness amon& t"em$ 7$ )D*+ SL s"ould c"al' out some pro&rams to create &eneral a!areness re&ardin& its presence and arious ser ices of t"e company$ B$ Today is t"e era of competition$ In order to increase t"e company net!or' 2In terms of clients and business olumes6 an a&&ressi e approac" is re,uired$ T"e 0an' s"ould recruit more number of mar'etin& personnel so t"at t"ey can co er t"e !"ole of t"e city and nearest illa&es of 5aipur$ Personal mar'etin& can be one of t"e met"ods of modes of ta'in& people into confidence$ =$ )D*+ SL s"ould try to ma'e its promotional acti ities more effecti ely$ D$ It can use industrial ma&a<ine media as an ad ertisin& tool for approac"in& is mar'et se&ment$ C$ Try to reduce "idden c"ar&es so as to satisfy t"e customers more effecti ely$ Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! ID

I$ It s"ould re&ularly conduct mar'et researc" and sur eys for 'no!in& customers better and for facin& t"reat from competitors$ L$ Supportin& staff s"ould be appointed$ S9<<.S,I;8S Ad ertisement s"ould be done on tele ision and especially Posters and 0anners$ T"is !ill &reatly "elp in raisin& a!areness le el$ Insurance +ompanies s"ould s"o! more commitment !it" t"e customers$ Pri ate companies &i e better ser ices to t"e customers as compared to public companies$ T"e pri ate company s"ould create &ood relations and communication$ Pri ate companies s"ould collaborate to spread a!areness re&ardin& t"e benefits of insurance plans pro ided by t"e Pri ate +ompanies$ A&ents "a e &ot ma#imum influence on customers$ T"ey are t"e one !"o introduces t"e prospect to different policies$ So a&ents s"ould be &i en fullfled&ed trainin& and t"e trainin& s"ould be strict$

.8DIN

L9.S,I;8AI/. $,his information is for our internal use only7 will not to 'e disclosed to any other or4aniDationOdepartment& Consumers Behavior towards various Investment and Insurance roducts A( Study 8ame ,elephone ;ccupation Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! IC Address A4e

)arital status@ Sin4leO)arried E$?G )o! do you 'no! about )D*+ Standard Life Insurance +ompanyF Print 3edia Electronic 3edia A&ents Ot"ers E$/G K"at do you t"in' about insuranceF 4ecessity for protection security Imposition of a burden of e#penses A compulsory tool for ta# sa in& E$7G 3ain consideration t"at you loo' at !"ile purc"asin& an insurance policy$ Ta# Sa in& Protection Pension In estment E$BG K"at do you see !"ile purc"asin& an insurance policy from t"e companyF Standin& and &ood!ill of t"e company Product ran&e of t"e company Ad ertisement bein& released by t"e company Ser ices bein& &i en by t"e company Returns of bonus declared by t"e company

E$=G K"ic" plan !ould you li'e to buyF Protection Plan In estment Plan Pension Plan +"ildren Plan E$DG K"at do you e#pect from )D*+ Standard Life Insurance +ompanyF Inno ati e Products Attracti e riders Reasonable premium 0etter +ustomer Ser ice Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! II

 )i&" ris' co era&e E$CG Do you t"in' t"at )D*+ Standard Life Insurance +ompany pro ides better facilities t"an I+I+I prudential life insurance companyF ;es 4o E$I$ Are you satisfied !it" t"e plan you bou&"tF ;es 4o I "a enAt bou&"t any

A44E89RE TELE-+ALLI41 E9ESTIO44AIRE 4A3EG ADDRESSG +O4TA+TG OR1A4IZATIO4G DESI14ATIO4G O**I+E ADD$ G +O4TA+TG

E?$ E/$ E7$

K"at is your 3obile no$F [[[[[[[[[[[[[[[[[[[[[[[[ K"at is your E-mail IDF [[[[[[[[[[[[[[[[[[[[[[[[ K"ic" insurance do you "a eF 1eneral insurance Life insurance

EB$

K"ic" type of policy do you "a e F [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ E=$ Are you interested to attend seminar or ot"er discussion pro&ram or&ani<ed by )D*+( SLI+F

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! IL

[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ ED$ Are you satisfied !it" present insurance policy do you "a e F ;es 4o *IELD KOR% E9ESTIO44AIRE 4A3EG OR1A4IZATIO4AS 4A3EG ADDRESSG DESI14ATIO4 +O4TA+T

E$ ?$

K"ic" companyRs insurance do you "a e F ?$ LI+ /$ A:I:A 7$ 0A5A5 ALLIA4IZ B$I+I+I PR9 =$ 0IRLA S94LI*E D$ Any Ot"er$

E$ /$

K"at is your annual incomeF ?$ Less t"an ? la'" /$ 7-= la'" 7$ ?-7 La'" B$ 3ore t"an = la'"

E$ 7$ K"at is t"e most li'ely reason for ta'in& insuranceF [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ E$ B$ Euarries re&ardin& policy in your companyF ?$ Return /$ +laim on time 7$ Ser ice B$ Any ot"er

E$ =$ )o! you "a e ma'e secure yourself and your family F ?$ Property 7$ *i#ed deposit /$ Educated c"ildren B$ 4ot secure

E$ D$ K"ic" facility does you li'e most pro ided by usF Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! L@

?$ Rate of return /$ Easy e#it 7$ Any ot"er

B$ Kai er of premium =$ Timely claim settlement

E$ C$ K"at benefits you !ant to see' from an mar'et lin'ed insurance policy F ?$ Only profit /$ 3ore insurance co er & nominal profit 7$ Timely claim settlement B$ 3ore profit & nominal insurance =$ Any ot"er ----------------------------------------------------------------------------------------2T)A4% ;O96

BIBLI;</A H= :.BSI,.S !!!$"dfcinsurance$com !!!$economictimes$com !!!$irdaindia$com !!!$bimaonline$com

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! L?

!!!$&oo&le$com

B/;9CH./S )D*+ Standard Life Insurance I+I+I Prudential Life Insurance

Analysis of Consumers Behavior & performance towards various Investment and Insurance roducts of HDFC SLIC! L/