1

CHAPTER - 1
1.1

GENERAL INTRODUCTION

Insurance is a protection against financial loss arising on the happening of an

unexpected event. You cannot take anything for granted in life. Insurance is system by
which the losses suffered by a few are spread over many, exposed to similar risks.
Insurance policies are a safeguard against the uncertainties of life. Insurance policy
helps in not only mitigating risks but also provides a financial cushion against adverse
financial burdens suffered. Insurance policies cover the risk of life as well as other assets
and valuables such as home, automobiles, jewelry etc. Insurance policies can be
classified into two categories. Which are given below: -

Life Insurance Policy

General Insurance Policy
Life insurance is a guarantee that your family will receive financial support, even in your
absence. It thus protects to your family from the financial crises. It serves as a protective
cover to your family, life insurance acts as flexible money-saving scheme, which
empowers you to accumulate wealth-to buy a new car, get your children marriage and
even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme.
Need of Life Insurance
In modern day investments include gold, property, fixed income instruments, mutual
funds and of course, life insurance. Given the excess of choices, it becomes very
important to make the right choice when investing your hard-earned money. Life
insurance is a unique investment that helps you to meet your dual needs - saving for
life's important goals, and protecting your assets.

Some unique benefits of life insurance in detail:Asset Protection

From an investor's point of view, an investment can play two roles - Asset Appreciation
and Asset Protection. Most of the financial instruments have the underlying benefit of
asset appreciation. Life insurance is unique in that it gives the customer the reassurance
of asset protection, along with a strong element of asset appreciation.
Life insurance or Life Assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay a sum of money upon the occurrence of the
insured individual's or individuals' death. In return, the policy owner (or policy payer)
agrees to pay a stipulated amount called a premium at regular intervals or in lump sums
(so-called "paid up" insurance). There may be designs in some countries where: (Assets,
Bills, and death expenses plus catering for after funeral expenses should be included in
Policy Premium. Anyone whose assets equal more than the value of their primary
residence should not be compensated beyond that value in case they cannot sell their
house. In the case of those who have lost their spouse should be compensated also for
one full year the wages of their spouse which would or should be included to avoid
lawsuits.) However in the United States, the predominant form simply specifies a lump
sum to be paid on the insured's demise.
As with most insurance policies, life insurance is a contract between the insurer and the
policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or
Beneficiaries) if an insured event occurs which is covered by the policy. To be a life
policy the insured event must be based upon life (or lives) of the people named in the
policy.

Insured events that may be covered include:

1. Death
2. Accidental death
3. Sickness
Life policies are legal contracts and the terms of the contract describe the limitations of
the insured events. Specific exclusions are often written into the contract to limit the
liability of the insurer; for example claims relating to suicide (after 2 years suicide has to
be paid in full) (in India after one year Suicide is covered), fraud, war, riot and civil
commotion.

1.2 OBJECTIVES OF THE STUDY

1. To analyze the potential of Life Insurance in Investment Industry.
2. To get better understanding of various Life Insurance Product.
3. To compare the performance of various Life Insurance Companies.
4. To evaluate various need of customers for Life Insurance and their purchase
behavior
5. To know the level of brand awareness of HDFCSLI among the consumers.

1.3 INDUSTRY PROFILE

a) Origin and Development of Insurance Industry
Insurance began as a way of reducing the risk of traders, as early as 5000 BC in
China and 4500 BC in Babylon. Life insurance dates only to ancient Rome; "burial
clubs" covered the cost of members' funeral expenses and helped survivors monetarily.
Modern life insurance started in late 17th century England, originally as insurance for
traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee
House, predecessor to the famous Lloyd's of London.
The first insurance company in the United States was formed in Charleston,
South Carolina in 1732, but it provided only fire insurance. The sale of life insurance in
the U.S. began in the late 1760s. The Presbyterian Synods in Philadelphia and New York
created the Corporation for Relief of Poor and Distressed Widows and Children of
Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769.
Between 1787 and 1837 more than two dozen life insurance companies were started, but
fewer than half a dozen survived.
Prior to the American Civil War, many insurance companies in the United States
insured the lives of slaves for their owners. In response to bills passed in California in
2001 and in Illinois in 2003, the companies have been required to search their records
for such policies. New York Life for example reported that Nautilus sold 485
slaveholders life insurance policies during a two-year period in the 1840s; they added
that their trustees voted to end the sale of such policies 15 years before the
Emancipation Proclamation.

b) Growth & Present Status of Insurance Industry

Before insurance sector was opened to the private sector Life Insurance
Corporation (LIC) was the only insurance company in India. After the opening up of
Insurance sector in India there has been a glut of insurance companies in India. These
companies have come up with innovative and flexible insurance policies to cater to
varying needs of the individual. Opening up of the Insurance sector has also forced the
LIC to tighten up its belt and deliver better service. All in all it has been a bonanza for
the consumer.
Major Life insurance Companies in India are:
1. Aviva Life Insurance
2. Bajaj Allianz
3. Birla S un Life Insurance
4. HDFC Standard Life Insurance
5. ICICI Prudential
6. ING Vysya
7. Kotak Mahindra
8. LIC
9. Max New York Life Insurance
10. Metlife India Insurance
11. Reliance Life Insurance
12. SBI Life Insurance
13. Shriram Life Insurance

14. TATA AIG Life Insurance

c) Future of Insurance Industry

Many hypotheses address why the incidence of insurance has declined in the past
decade: People are anti-insurance; they're buying term and investing the rest; changing
life expectancies and delayed family formation have shifted the need for insurance;
buyers are more sophisticated and prefer other products; agents are forsaking the
middle class and focusing on the wealthy; Boomers refuse to grow up, and buying life
insurance acknowledges mortality; people need less life insurance, and with the
declining need, the industry is shrinking; agents are unpleasant to deal with;
property/casualty insurance is replacing life insurance; and so on. Clearly, a strong
factor in the increase in surplus capital lies at the door of favorable economic
conditions, with equity markets up by around 10%. Reflecting this more buoyant
environment, the results also indicate that the realistic reporters were net purchasers of
equities, with the marginal 0.4bn reversing the downward sales trend that had
emerged since we started collecting this data in 2006. The aggregate Equity Backing
Ratio for assets backing asset shares also increased over the full year moving from 39%
to 43%. All in all, these results are very encouraging and while the economic
environment clearly has had its part to play, the industry has worked hard to deliver
some long awaited stability. And, in terms of the capital with-profits insurers have at
their disposal, the sector is in a far better position to ensure that policyholder
commitments are honored as they fall due, and as such that customers are treated fairly.
In conclusion, we are looking forward to a future for the life industry characterized by
adequate capital, sound management and fair treatment of customers. We think we are
most likely to get there by adopting a more principle based, outcome focused approach
to regulation. To a significant degree this is already happening in the areas that I have

chosen to highlight today the emphasis now needs to be on making sure that policy
decision is turned into effective implementation.

CHAPTER - 2
2.1 ORIGIN OF HDFC STANDARD LIFE INSURANCE CO.LTD
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It
is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.) India and UK based Standard Life Company. Both the joint venture partners being
one of the leaders in their respective areas came together in this 81.4:18.6 joint venture
to form HDFC Standard Life Insurance Company Limited. The MD and CEO of HDFC
Standard Life Mr. Deepak Satwalekar, has given the company new directions and has
helped the company achieve the status it currently enjoys. HDFC Standard Life brings to
you a whole range of insurance solutions be it group or individual or NAV services for
corporations; they can be easily customized as per specific needs
2.2 GROWTH AND DEVELOPMENT OF HDFCSLI
HDFC Standard Life Insurance Company Ltd. is one of Indias leading
private life insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), Indias leading housing finance institution and The Standard Life
Assurance Company, a leading provider of financial services from the United Kingdom.
As a joint venture of leading financial services groups, HDFC Standard Life has the
financial expertise required to manage your long-term investments safely and
efficiently. The company has a range of individual and group solutions, which can be

easily customized to specific needs. The group solutions have been designed to offer
complete flexibility combined with a low charging structure.
HDFC Standard Life Insurance is the first private life insurance company to
be granted a license by IRDA Rated by Business world as Indias Most Respected
Private Life Insurance Company in 2004 Has grown over 130% in the last year, with
more than 8 lakh policyholders Has one of the widest branch networks with offices in
over 100 cities servicing over 440 towns Has the highest brand recall, close to 80%
(Source: AC Neilson ORG MARG, April 2005). HDFC Standard Life, one of the
leading private insurance companies in the country, is in an expansion mode in the state
of Madhya Pradesh. The company has inaugurated its branch office in Morena and will
subsequently open offices in Datia, Bhind and Dabra by the second week of May 2007.'
This expansion comes in line with the companys strategy to strengthen its presence in
the state of Madhya Pradesh, thereby also consolidating its premier position in the
insurance business in India. Speaking on its increasing presence in the region, Mr.
Deepak Satwalekar, CEO & MD HDFC Standard Life Insurance said, The Company
wants to be as close to its customers as possible and wants to ensure complete customer
convenience and delight. We felt the need to increase our spread in MP because of its
growing potential and hence expansion is an obvious choice. With the launch of four
branches consecutively in the region, HDFC Standard Lifes presence will increase to 13
branch locations and 16 spoke locations in MP.

Track Record so far

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The cumulative premium income, including the first year premiums and renewal
premiums is Rs. 1532.21 Crores in FY 2005 - 06. The company has covered over 1.6
million individuals, out of which over 5,00,000 lives have been covered through their
group business tie-ups. The company also declared their 5th consecutive bonus in as
many years for their policyholders.

Key Dates
7th May 2007 - HDFC Standard Life expands its reach to smaller cities in Madhya
Pradesh
15th February 2007 - HDFC Standard Life expands its reach in Vidarbha
16th May 2006 - HDFC Standard Life records impressive growth
7th February 2006 - HDFC Standard Life records impressive growth
29th November 2005 - HDFC Standard Life posts strong growth
16th August 2005 - HDFC Standard Life grows faster than the private sector average
16th May 2005 - HDFC Standard Life declares results for FY 2004-05

2.3 PRESENT STATUS OF HDFCSLI

Nationally HDFC Standard Life Insurance covers over 693 cities and towns
through its offices in India with over 79,000 Financial Consultants appointed by the
company. HDFC Standard Life Insurance also has 833 corporate agents and other
sales intermediaries including banks for distribution of insurance products. HDFC
Standard Lifes Product portfolio comprises solutions, which meet various customer
needs, like Protection, Pension, Savings and Investment. Customers have the added
advantage of customizing the Plans, by adding optional benefits called riders, at a

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nominal price. The company currently has 21 retail and 6 group products in its
portfolio. HDFC Standard Life maintains very high professional standards, during
product offerings, by providing sound financial advice, efficient post-sale service and
immaculate financial security. Ongoing training for conventional products, and
specialized training, for unit-linked products, for its financial consultants, has also
helped its customers choose the product, best suited for their needs.

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2.4 FUTURE PLANS OF HDFCSLI

HDFC Life Insurance Ltd is targeting a 250 per cent growth in its first premium
income in 2009-09 and will soon infuse a further Rs 37.5 cr. to its existing share capital
of Rs 255.5 cr. "Major expansion of branches, higher productivity and contribution from
unit-linked products will enable the company to achieve this high growth in current
year," said Pankaj Seith, head, alternative channels, HDFC Standard Life Insurance.
Over the next 3-4 years, the company will increase its capital base to Rs 700-800 cr. The
company will increase its branch network from 60 to 103 by the end of 2008-09. In
Gujarat, the company is doubling its branch network from 4 to 8 branches by setting up
branches at Vapi, Gandhidham, Bhavnagar and Jamnagar. "Business growth in Gujarat
has been higher than the national average during FY07 and that is why the company has
decided to double its network," said Sanjay Vij., regional manager of Gujarat. The state
constitutes for around 7-8 per cent of the national business. "The unit-linked product
launched by the company in January 04 has met with a strong response from Gujarat as
it offers partial investment in equities. As against the national growth of 30-35 per cent,
the unit-linked business in Gujarat has grown by 40-45 per cent." HDFC Life is also
pushing sales through the bank assurance route. "The company is in talks with a few
banks and even some cooperative banks in Gujarat and elsewhere for marketing
insurance products. Currently, HDFC Bank, Union Bank of India, Indian Bank and
Saraswat Bank are selling HDFC Life products and contribute to around 25 per cent of
total business," said Seith. A special bank assurance product is going to be launched in
future. The company has met its rural market targets and as against 12 per cent of total
policies sold in FY09, it will raise it to 14 per cent in current year.

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2.6 ORGANIZATIONAL STRUCTURE AND ORGANIZATIONAL CHART

HDFCSLI has a Functional structure because here the core product is insurance.
A functional structure is well suited to organizations which have a single or dominant
core product because each subunit becomes extremely adept at performing its particular
portion of the process. The organization is structured according to functional areas
instead of product lines. The functional structure groups specialize in similar skills in
separate units. This structure is best used when creating specific, uniform products.
They are economically efficient, but lack flexibility. Communication between functional
areas can become efficient if there is proper coordination between HR, Customer
Service & Operation, IT, Finance, Sales and Marketing team etc.

2.7 PRODUCT & SERVICE PROFILE OF HDFCSLI

At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every
need. We cater to both, individuals as well as to companies looking to provide benefits
to their employees. This section gives you details of all our products. We have
incorporated various downloadable forms and product details so that you can make an
informed choice about buying a policy.
For individuals, we have a range of protection, investment, pension and savings
plans that assist and nurture dreams apart from providing protection. You can choose
from a range of products to suit your life-stage and needs.
For organizations we have a host of customized solutions that range from Group
Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These

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affordable plans apart from providing long term value to the employees help in
enhancing goodwill of the company.

Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs.
Keeping this in mind, we have a varied range of Products that you can choose from to
suit all your needs. These will help secure your future as well as the future of your family
Protection Plans
You can protect your family against the loss of your income or the burden of a
loan in the event of your unfortunate demise, disability or sickness. These plans offer
valuable peace of mind at a small price. Our Protection range includes our Term
Assurance Plan & Loan Cover Term Assurance Plan.

HDFC TERM ASSURANCE PLAN

(Secure your familys financial independence and self-respect.)
Our Protection Plans give you
An ideal way to secure the financial future of your loved ones.
High cover at a very nominal cost plus an option of adding optional benefits to cover
for other eventualities.
A choice of two plans depending on your requirements:
HDFC Term Assurance Plan: A pure risk cover plan, which gives you
protection against the uncertainties of life.
HDFC Loan Cover Term Assurance Plan: An ideal way to cover your home
loan or other loan liabilities

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Choice of premium payment options-regular premium or a single one-time

premium.
Choice of taking the plan on a single life basis or a joint life (first claim) basis.

The HDFC Term Assurance Plan is an insurance policy that is designed to help
secure your family's financial needs. The plan does this by providing a lump sum to the
family of the life assured in case of death or critical illness (if option is chosen) of the life
assured during the term of the contract. One can choose the lump sum that would
replace the income lost to one's family in the unfortunate event of one's death.
3 EASY STEPS TO YOUR OWN PLAN
Step 1 - Choose the life cover required to secure your family's future in your absence.
Step 2 - Choose from any one of the 3 additional optional benefits as per your
requirement.
Step 3 - Work out the premium payable along with our Financial Consultant.

HDFC LOAN COVER TERM ASSURANCE PLAN

Our Protection Plans give you :
An ideal way to secure the financial future of your loved ones.
High cover at a very nominal cost plus an option of adding optional benefits to cover
for other eventualities.
A choice of two plans depending on your requirements:
HDFC Term Assurance Plan: A pure risk cover plan, which gives you
protection against the uncertainties of life.
HDFC Loan Cover Term Assurance Plan: An ideal way to cover your home
loan or other loan liabilities.

16

Choice of premium payment options-regular premium or a single one-time premium.

Choice of taking the plan on a single life basis or a joint life (first claim) basis.
Investment Plans: Our Single Premium Whole of Life plan is well suited to
meet your long term investment needs. We provide you with attractive long term
returns through regular bonuses.
HDFC Single Premium Whole of Life Plan
Money is like manure. You have to spread it around or it smells.
HDFC Single Premium Whole Of Life Insurance Plan is a tailor-made plan
well suited to meet your long-term investment needs. This participating plan
offers you the following benefits:
Whole of life plan aimed at providing long-term real growth of your money.
Single premium investment plan.
In case of your unfortunate demise during the policy term, this participating (With
Profits) insurance plan will pay your family the Sum Assured and compound
Reversionary Bonuses, which are usually added annually. An additional Terminal
Bonus may be paid depending on the performance of the underlying investments.
During Guaranteed Surrender Periods you get the Sum Assured and all bonuses
vested as at the date of surrender.

HDFC PERSONAL PENSION PLAN

The HDFC Personal Pension Plan is an insurance policy, which can benefit you in the
following ways:
Provides a post retirement income in your golden years
Gives you the flexibility to plan your retirement date
Gives you tax benefits on your premiums

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HDFC UNIT LINKED PENSION

The HDFC Unit Linked Pension gives you:
An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments
A post retirement income for life
Flexibility to plan your retirement date
Freedom to invest premiums as per your preference

HDFC UNIT LINKED PENSION PLUS

The HDFC Unit Linked Pension Plus gives you:
An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments
Regular Loyalty Units to boost your fund value every year
A post retirement income for life
Flexibility to plan your retirement date
Freedom to invest premiums as per your preference

Savings Plans
HDFC Endowment Assurance Plan
The HDFC Endowment Assurance Plan gives you:
An ideal way to secure your long-term financial goals
Valuable protection to your family by way of lump sum payment in case of your
unfortunate demise within policy term
Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to

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maturity date
Very flexible benefit options and payment options

HDFC UNIT LINKED ENDOWMENT

T HDFC Unit Linked Endowment Plan gives you:
An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments
Valuable protection to your family in case you are not around
Flexible benefit combinations and payment options
Flexible additional benefit options such as critical illness cover
Access to your accumulated fund before maturity

HDFC UNIT LINKED ENDOWMENT PLUS

The HDFC Unit Linked Endowment Plus gives you:
An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments
Regular Loyalty Units to boost your fund value every year
Valuable protection to your family in case you are not around
Flexible benefit combinations and payment options
Flexible additional benefit options such as critical illness cover
Access to your accumulated fund before maturity

The table below will help you identify and classify some of your financial goals. You can
prioritize these goals and set your objectives accordingly (see indicative table given
below).

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LONG-TERM GOALS

SHORT TERM GOALS

Provide adequate cover for Life, Critical

Illness or disability

Buying a car

Saving for big-ticket assets like your house Saving for your marriage
Saving for your children's education

Vacation abroad

Having a regular system for savings

HDFC Money Back Plan

The HDFC Money Back Plan is a With Profit Plan that gives you:
A proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervals
within the policy term (see the table given below) an ideal way to secure your longterm as well as short-term financial goals.
A lump sum payment on survival up to maturity date.
Valuable protection to your family by way of lump sum payment in case of your
unfortunate death within the policy term. This is over and above any earlier payouts.

HDFC CHILDREN'S PLAN

The HDFC Children's Plan gives you:
Invaluable financial support to your child
A choice to customize an ideal plan for your child
Multiple options for multiple benefits

HDFC UNIT LINKED YOUNG STAR

An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments

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Valuable protection to your child in case you are not around

Flexible benefit combinations and payment options
Flexible additional benefit options such as critical illness cover
Access to your accumulated fund before maturity

Pay the Sum Assured you had chosen to your child

Continue your policy AND continue to pay the original regular premiums you had chosen

In case of your unfortunate demise during the policy term, we will:

HDFC UNIT LINKED YOUNG STAR PLUS

The HDFC Unit Linked Young Star Plus gives you:

An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments
Regular Loyalty Units to boost your fund value every year
Valuable protection to your child in case you are not around
Flexible benefit combinations and payment options
Flexible additional benefit options such as critical illness cover

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Access to your accumulated fund before maturity

PRODUCT BASKET
INDIVIDUAL PRODUCTS

Protection Plans:
HDFC TERM ASSURANCE PLAN
HDFC LOAN COVER TERM ASSURANCE PLAN
Investment Plans:
HDFC Single Premium Whole of Life Plan
Pension Plans:
HDFC PERSONAL PENSION PLAN
HDFC UNIT LINKED PENSION
HDFC UNIT LINKED PENSION SUPER

Savings Plans:
HDFC Endowment Assurance Plan
HDFC UNIT LINKED ENDOWMENT PLAN
HDFC UNIT LINKED ENDOWMENT SUPER
Children Plan:
HDFC CHILDREN'S PLAN
HDFC UNIT LINKED YOUNG STAR
HDFC UNIT LINKED YOUNG STAR SUPER
GROUP PRODUCTS

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HDFC GROUP TERM INSURANCE PLAN

HDFC GROUP VARIABLE TERM INSURANCE
HDFC GROUP UNIT LINKED PLAN
SOCIETY PRODUCTS
DEVELOPMENT INSURANCE PLAN

Premium Payment
6 Easy Ways to pay your premium:

Lapse & Revival

Your renewal premium should reach us by the due date specified in the premium
reminders. It is always advisable to pay on time so that your valuable policy benefits can
continue.
Policy Servicing
This section is designed to give you information that you may require incase you
wish to make changes in Personal details or Policy details in your existing policy. The
changes that you can avail of are:

Change in personal details

Change in policy benefits
Others such as loss of policy, look- in option etc.

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Claims

We understand that bereavement can be difficult to deal with, specially when you
have to arrange for all the formalities in case of insurance claims.
At HDFC Standard Life we lend a helping hand by enabling faster settlement of
claims and help the family financially at the time of distress.
For any assistance or query relating to reporting claims (Death Claims /
Critical Illness Claims) you may get in touch with us by emailing us at
claims@hdfcinsurance.com and we will get back to you with the details that
will be required to process a claim.
Death claim form
Original Policy Document
A copy of death certificate issued by Municipal Corporation / Government*
Proof of identity of beneficiary viz passport or Election ID or Pan Card
Or Driving License.
Proof of residence of beneficiary viz Electricity bills or Ration card or
telephone bill or passport (bills not greater than 3 months)

2.8 MARKET PROFILE OF THE ORGANIZATION

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HDFC Standard Life Insurance holds market share of 8.7% and ranks 4 among
the private sectors. HDFCSLI expecting to capture 12% of market share by 2009 and to
be in top position among the private sector. The company is increasing the brand
awareness through continuous advertisement on TVC and print. Company is focusing
on complete solution of investment for the customer delighting them through their
service and return on their investment. The Marketing function at HDFC Standard Life
Insurance covers an array of activities - brand and media management, channel
support,

direct

marketing

and

corporate

communications.

The

Brand

and

Communications team is in charge of advertising, consumer research, media planning &

buying and Public Relations; that helps develop and nurture HDFC Standard Life
Insurance corporate identity while effectively communicating its varied product
offerings to the customer. Channel marketing provides support to the sales force by

25

streamlining the design and development of collaterals and sales tools across
distribution channels. The Direct marketing team was set up to generate high quality
leads for profitable business. The team achieves this through target database acquisition
and communicating customized product information through e-mailers, telemarketing
and innovative direct mailers.

CHAPTER - 3
3.1 STUDENT WORK PROFILE (ROLE & RESPONSIBILITES)

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I am working in HDFCSLI as a FINANCIAL CONSULTANT & RECRUITMENT

CONSULTANT.
FINANCIAL CONSULTANT: Major responsibility handed over me is to
generate lead of potential customer through contacts, references and activities. Also
telemarketing through the existing data base given by the manager. Once the
appointment are fixed I have to meet the customer interact with them convince them
about the product after analyzing their need & requirement. Helping the customer to fill
the form collecting the document and finally handing it to sales manager for logins
3.2 DESCRIPTION OF LIVE EXPERIENCE
Working in HDFCSLI has helped me to gain lots of experience in sales and
marketing field. I came to about the insurance business how it works and it gave me an
idea that insurance business starts with is one sale business that is it entirely depend on
networking. During the initial stage of my joining I was not able to sell the products it
was early 30 days when I was not giving any business to my sales manager. I was demotivated but at that time my manager helped me and makes me understand where I
was going wrong. He told me to sell the product first to whom you know rather that
calling customer through data base in which first the customer agrees and shows their
interest to take the product. After following them for 10-20 they refuse to take the
products. Sometime it may happens that they fix the appointment and when I go to
meet them they were not available and when I call them they dont pick the phone or
even if they pick the cut it after listening my voice. I was very much disappointed with
such behavior of customer. First customer whom I was able to sell the product was my
friend to whom I sold ULIP plan with initial cheque of 30000k. After completing all the
formalities and login the form I have asked him to give me some references who are
interested in taking the plan for tax saving. Since he was a software engineer so he has
given me three references. I called them and follow them I in these three two where
finally convinced and taken the same plan. I again asked some references from them
and they given few after following I again succeed to sell the product and in this way I

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developed a network in market and things are going very easily. I always remember one
quote of my manager that dont work hard work smart.
3.3 CONTRIBUTION TO ORGANIZATION
The main contribution of an employee to its organization is to perform his
responsibilities given with 100% effort and honesty. I am working in HDFCSLI as a
Financial Consultant and Recruitment Consultant. My major responsibility is to sell the
product and recruit FC for the organization. I am one of the top performers of my
company where every month I am giving business of 50000-60000k. For the goodwill
of the company I am always honest to tell all the facts and benefits of the product to the
customer and convince them for the right product that best suits them. After login their
forms I call them and do a formal call that whether they received their documents or not
and if some complication occurs with the document I take care about them. It helps me
to generate new business for the company in one hand and getting goodwill to the
company on other hand. As I have joined recently as a recruitment consultant so my
contribution is not very huge but in one month I am able to recruit 3 FC and they all are
taking interest and doing business for the company. So my contribution to the
organization is good I am giving good business and good people to the company who are
working and doing good business. I am very much satisfied with the level of work I am
doing for the company and I am also able to keep my sales manager happy through my
performance and through my quality of work. It was because of my dedication and hard
work that my branch manager has offered me to join as a recruitment consultant. Both I
myself and my seniors are happy with my contribution to the organization.

CHAPTER 4
NEED AND IMPORTANCE OF THE STUDY

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Since the opening up insurance market to private operations, India is considered

one of the hottest place with the majority of market being untapped through there are
restriction for foreign operators. Traditional and ULIP products have their own benefits
and at what extent customers are aware about these products. Research is the
systematic, objective and exhaustive search for and study of facts relevant to the
problem.
Research design means the framework of the study that leads to the collection
and analysis of the data. It is conceptual structure with in which research is conducted.
It facilitates smooth sailing of various research operations to make the research
as effective as possible.
The study was conducted as an exploratory sampling survey method to collect
primary and secondary data.
4.1 RESEARCH PROBLEM
A study on the awareness of customers about Traditional and Unit linked
investment plan of insurance policies with special reference to HDFC Standard Life
Insurance.
4.2 STATEMENT OF RESEARCH OBJECTIVES

To measure awareness among existing customers regarding HDFCs different

insurance products.
To assess customer preference towards these different insurance products.
To compare HDFC Standard Life Insurance products with other products in the
market
To measure the customer satisfaction level with respect to HDFC Standard Life
Products

4.3 RESEARCH DESIGN AND METHODOLOGY

Research Design:

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Research Design that is followed in this report is judgment sampling. Judgment

sampling was the most appropriate because the data has to be collected from the
existing customer of HDFC. So research was done by approaching the customers of
HDFC by visiting different branches of HDFC located at Sagar, 10 sample from each
branches are picked judgmentally. Thus the total sample of 30 was taken and analyzed.

METHODS OF DATA COLLECTION

PRIMARY DATA
A well structured questionnaire was personally administrated to the selected
sample to collect the primary data.
SECONDARY DATA
Secondary data are those which have already been collected by some other
person for their purpose and published. Secondary data are usually in the shape of
finished products.
Two types of secondary data were collected for the project .
INTERNAL DATA: - was generated from companys brochures, manuals and annual
report. have given valuable information for the present study.
EXTERNAL DATA: - was generated from magazines, research articles, books and
internet. Magazines devoted solely to insurance news, such as Asia Insurance News,
insurance chronicle-monthly insurance digest and other marketing magazines.
SAMPLING TECHNIQUES
A sample is a representative part of the population. In sampling technique,
information is collected only from a representative part of the universe and the
conclusions are drawn on that basis for the entire universe. A judgment sampling
technique was used to collect data from respondents. Judgment sampling is a common
non probability method. So while conducting the survey 30 respondents were selected
at judgment.
To know the response, the researcher used questionnaire method. It has been designed
as a primary research instrument. Questionnaires were distributed to respondents and
they were asked to answer the questions given in the questionnaire.
The questionnaire was used as an instrumentation technique, because it is an
important method of data collection. The success of the questionnaire method in

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collecting the information depends largely on proper drafting. So in the present study
questions were arranged and interconnected logically.
SCOPE OF STUDY
The respondents of this dissertation were 30 Life Insurance Policy holders of
HDFC insurance company and study was focus on the awareness of Traditional and
ULIP plan of insurance policies.
Questionnaire was used for survey and was answered by the customers of HDFC
Standard Life Insurance Company.
Survey was done by approaching the customers of HDFC by visiting different branches
located at Sagar.
Personal interview method was apply to collect the actual data for the research
study, the interaction with the respondents before filling questionnaire have made them
more friendly and free to give the information.

SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the
present study, 30 respondents were selected at judgment. All the 30 respondents were
the customers of HDFC Standard Life Insurance Company.

Limitation of study
This research work is done by approaching a small population, in a restricted
geographical area. Uncontrolled factors may affect the outcome of research. So the
actual result may vary from the research conducted.

4.4 ANALYSIS OF DATA AND INTERPRETATION

TABLE NO 4. 1: Monthly income of the respondents

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Particulars

No of Respondents

Percentage (%)

Less than 20,000

11

37

20,000- 30,000

12

40

30,000 40,000

16

More than 40,000

Total

30

100

Analysis
There are variations in monthly income of the people and it is ranging between less
than Rs 20000 to more than Rs 40000.
There are variability of income among the people which is due to their education and
the stages of their career. Many of the respondents are employed (government/ private)
few of them are running their own business.
Graph 4.1: Monthly income of respondents

From the above table it can be inferred that:

37% of the 30 respondents have a monthly income of less than 20,000
40% of the respondents have a monthly income of 20,000 30,000
7 % of the respondents have a monthly income of more than 40, 000

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TABLE NO 4.2:monthly savings of respondents

Particulars

No of Respondents

Percentage (%)

Less than 2,000

30

2,000 4,000

26

4,000 6,000

20

6,000 8,000

14

More than 8,000

10

Total

30

100

Analysis
People in Bangalore have different range of savings which is diversified according to
their income level and here it ranges between less than Rs 2000 to more than Rs 8000.
People are able to save their money after their expenditure which depends on their
income, family size and their lifestyle. Bangalore is comparatively expensive city so the
Customers are able to save very less from their earnings.
Graph 4.2: Monthly savings of the respondents

From the above table it can be inferred that:

30% of the 30 respondents have a monthly savings of less than 2,000

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10% of the respondents have a monthly savings of more than 8,000

TABLE NO 4. 3 purpose of savings of the respondents

Particulars

No of Respondents

Percentage (%)

Medical expenses

20

To buy durables

10

To buy jewelleries

To buy house or site

27

Education

30

Others

Total

30

100

Analysis
People are saving their money for various purposes like for childrens education, to buy
houses, for medical expenses. Here people are more conscious about their health and
education.
People have their own choice of saving their money according to their preferences. Most
of the people give priorities for education, houses and health so they are saving their
money for these purposes.
Graph 4.3: Purpose of savings

34

From the above table it can be inferred that:

20% of the 30 respondents make a monthly savings for the purpose of medical
expenses.
27 % of the 30 respondents make savings for the purpose to buy house or site.
30 % of the 30 respondents make savings for the purpose of education.

TABLE NO 4.4 investment preference of the respondents:

Particulars

No of Respondents

Percentage (%)

Bank deposit

23

Insurance

20

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Shares

13

Debentures

10

Real estate

13

Gold

Mutual fund

10

Chit fund

Others

Total

30

100

Analysis
People have so many options to invest their savings. But most of the people go for bank
deposit due to the safety purposes. People have so many options where they can invest
their money. Some people think about high growth and some people consider about
safety. So they invest their money accordingly. Bank deposit is more preferred by the
people due to security purpose even though they get comparatively less interest on it.

Graph 4.4: Investment Preference

36

From the above table it can be inferred that:

23 % of the 30 respondents preferred to make investments in the bank deposit.
20 % of respondents preferred to make investments in insurance.

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TABLE NO 4.5insurance premium is paid monthly by the respondents.

Particulars

No Of Respondents

Percentage (%)

Less than 1,000

06

20

1,000 2,000

07

23

2,000 3,000

12

40

3,000 4,000

04

14

More than 4,000

01

03

Total

30

100

Analysis
Here the people who are paying premiums Rs 2000 to 3000 are more in numbers.
People pay the premiums from their savings so they decide the premium according to
their savings. People have other commitments also so they plan their premium payment
by considering all the expenses.
Graph 4.5: Approximate monthly insurance premium

From the above table it can be inferred that:

23% of the respondents pay a monthly premium of 1,000 2,000.
40% of the respondents pay a monthly premium of 2,000 3,000.
03% of the respondents pay a monthly premium of more than 4,000.
4.5 SUMMARY OF FINDINGS

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LIC is the clear market leader .HDFC Standard Life Insurance can excuse itself
that people in the age of more than 55 years category could not use its policies,
because HDFC Standard Life Insurance was not around when these people made
their life insurance choices. But at some extent HDFC is able to intervene in the
market of LIC due to varieties of ULIP plans, its good service, and high return on
investments.
1. ULIP plans are more preferred by customers than the traditional plan due to the
following reasons:
Flexibility in investment- traditional plans have to invest at least 85% in debt
instruments which results in low returns. On the other hand, Ulips invest in
market linked instruments with varying debt and equity proportions and if
customer
wishes,
he
can
even
choose
100%
equity
option.
Greater transparency-: Unlike Ulips, in traditional life insurance policy
customers are not aware of how your money is invested, where it is invested and
what the value of his investment is.
Potential for better returns- The top most advantage which Ulips offer over
traditional plans is the flexibility offered to customers to customize the product
according to their needs.
2. Customers knows that traditional plans are with less risk and less growth and
ULIP plans are with high risk high growth.
3. Customers have good knowledge about the investment of their money by the
insurer in different plans. They know that their money is used as dept in
traditional plan where as there are so many option of investing money in ULIP
plan like in high growth and low growth fund.
4. Potential for HDFC Standard Life Insurance exists in the category of respondents
aged between 25 years 45 years old, as awareness of life insurance is gaining
ground here and tomorrow respondents from here will be growing upwardly and
will invest larger amount in life insurance.
5. 9 respondents have a monthly savings of less than 2000, 8 respondents have a
monthly saving of around 2,000 4,000, 6 respondents have a monthly saving
of 4,000 6,000 and only a few respondents have monthly savings of around
6,000 8,000 and more than 8,000.
6. It is inferred from the study that 9 respondents make the savings for the purpose
of education, 6 respondents make the savings for the purpose of medical

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expenses, 8 respondents make the savings to buy house or site and few
respondents make savings for buy durable, to buy jewelleries and some other
purpose also.
7. From the study it is found that. 7 of the respondents prefer bank deposits for
investment purpose, 6 prefer insurance, 4 prefer shares and 4 prefer real estate.
So there is a more scope for the insurance sector and people feel it is secured and
profitable made of investment.
8. In an absurd contrast to the information and awareness of life insurance among
the younger earning generation, respondents seem careless to take up insurance.
HDFC Standard Life Insurance can take up the initiative to create awareness of
its insurance policies right form college level by conducting workshop there.
9. Most of the people takes the insurance policy to save their taxes, few customers
takes the policy for future security, children education and other purposes.
10. From the study, it is clear that HDFC is approaching the customers by various
ways and agents are playing their role very efficiently.
11. Now the days customer are well aware so they have proper knowledge of the
differences between traditional and ULIP plans.
12. Among 30 HDFC policy holders 9 have traditional policies, 14 respondents have
ULIP policies and 3 have other plans like health insurance.
13. For traditional plans LIC is more preferred where as other private companies
have around equal preferences for it.
14. For ULIP plans HDFC is more preferred due to variety of ULIP products in its
basket.
15. Most of the customers have good knowledge of different plans only few dont
have proper knowledge which can be overcome by better consultation to the
customers through insurance agents.

CHAPTER - 5
RECOMMENDATION AND SUGGESTIONS

40

1. Many respondents in their answers to why they did not take HDFC Standard Life
Insurance policies said that HDFC Standard Life Insurance being a private
insurer its reliability and long term existence is a big questions mark. This myth
must be broken through an Ad campaign through radio, TV, print and internet
that tells that HDFC is nothing but the Industrial Credit and Investment
Corporation of India. Which was set up as a public linked company on January 5,
1955 by the government? Hence it has existed for more than half a century and
has gone from strength. So why not even in the future? It can even exist for a
longer time with tremendous reserves and valuable experience in the financial
sector.
2. ULIP plan is starting from the yearly premium of Rs 15,000 and if the premium
is paid half yearly then it is Rs 8,ooo, monthly Rs 2000. So they are not able to
catch lower middle class. HDFC Standard Life insurance should also cater to the
lower middle class.
3. HDFC Standard Life Insurance should give information and data related to
potential customers.
4. According to Abraham Maslows hierarchy of needs, the second step to self
actualization is the fulfillment of the safety needs. Though people feel the needs
for security a large number live in an ivory tower obvious to the uncertainties life
could throw up to the distant future. They procrastinate to take decisions
regarding these aspects. It is this dormant aspect that HDFC Standard Life
Insurance should awaken in the people and bring about restlessness and
unfulfilled feeling regarding their personal and families security. The next choice
then would be insurance. This could be brought about by an innovative campaign
slogan saying The decision is now.
5. HDFC Standard Life Insurance must not to get people when start earning but
much before that. To gain the early bird advantage they must organize sessions in
schools and college giving explanations on life insurance in general and HDFC
Standard Life Insurance in particular. This will make the younger generation
more responsible making them go in for insurance in a big way at the earliest
thus making HDFC Standard Life Insurance the ultimate beneficiary to enjoy the
income from customers from the very beginning of their services lives. It can also
bring about a stronger brand commitment in this manner.
6. HDFC Standard Life Insurance should consol try to change the mindset of the
people from investing in life insurance for the sake of tax exemption to that of
worry exemption. India will move into that mode in the future in its journey to

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being a developed country as is exemplified by the fact that in developed

countries insurance policies are bought whether developing countries it is sold.
7. Use data warehousing management and mining to gauge the profitability and
potential of various customer and product segment and ensure effective cross
selling and understanding the customer better will allow insurance companies to
assign appropriate products, determining pricing correctly and increase
profitability.
8. Ensure high level training and development not just for staff but for agents and
distribution of organizations. Existing organizations will have to train staff for
better service and flexibility. While all companies will have to train employees to
cope with new products and an intensive use of information technology.

CONCLUSION
Since the opening up of the insurance sector in 1994, 20 private insurers are in
the fray. Each one is trying to garner more market share than the other. Among all the
players HDFC Standard Life Insurance with the advantage of being the earliest to
operate in the liberalized insurance market concerned 3,80,000 policies as on March
2008.
Yet the survey has exposed how HDFC Standard Life Insurance is far behind LIC.
HDFC Standard Life Insurance must also be alert of private insurance companies like
Birla Sunlife, Metlife, ING Vysya.

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HDFC have variety of ULIP plans for different age groups. Youngstar is for the
people of age group around 30, endowment for the age group of 30 to 45 and pension
plans for the age group of more than 45. Each ULIP plan have its own specification and
the fund management is done very efficiently in HDFC so the people are getting return
of more than 20% yearly. Due to the high return in ULIP plans customers are attracted
towards HDFC.
I am sure the company will benefits from my findings and I sincerely hope it use
my suggestions enlisted, when I hope will take them miles ahead of competition.
In short, I would like to say that the very act of the concerned management at
HDFC Standard Life Insurance in giving me the job of critically examining consumer
behavior towards financial products of the company is a steep in their continual mission
of making all round improvement as a means of progress.
I am sure that the company has a very bright future to look forward and will be a
trailblazer in its own right.

ANNEXURE AND APPENDICES

Questionnaire
I am pleased to introduce myself, Manish Chandra, 4th semester MBA (MKU) student
studying in Presidency Business School. As my project titled is A STUDY OF HDFC
STANDARD LIFE IN SAGAR CITY I request you to spare your precious time and
check this questionnaire. Feedback will be of immense benefit to me in successful
completion of this project. This information will be used only for academic purpose.
Kindly co operate.
1. Name

................................................................................

2. Age

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3. Gender

Male

Female

4. Marital Status

Married

Unmarried

5. Address

...
...

6. Telephone No.

...

7. E-mail ID

...

8. Qualification

Graduate

Post Graduate

Others
9. Occupation

Employed

Retired

Business

Others

10,000 20,000

20,000 30,000

30,000 40,000

More than 40,000

Part B
1. Monthly Income

2. Approximate monthly savings

Less than 2,000
4,000 6,000

2,000 4,000
6,000 8,000

More than 8,000

3. Purpose of savings

Medical expenses

To buy durables

To buy jewelleries

To buy house

Education

Others

4. Where do you invest your savings

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Bank deposit

Insurance

Share Debentures

Real Estate

Others
5. Approximately how much do you pay towards the insurance premium
monthly?
Less than 1,000
1,000 2,000
2,000 3,000
More than 4,000
6. Purpose for which you taken this policy?
Tax purpose

3,000 4,000

Future security

Childrens education

7.Who pays the premium

Marriage

Others

Self

Employer

Spouse

Others

8. Whose life is insured as per policy taken

Parents

Children

Self

Spouse

9. What is your level of information about the products of HDFC Standard Life
Insurance?
Good

Moderate

Poor
10. Has any HDFC Standard Life Insurance advisor visited you?
Yes
No

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Bibliography

Journals and Catalogs

1. User manual of trading in Product Hand Book published by HDFC Standard Life
Insurance.
2. Catalogs describing the features of HDFC Standard Life Insurance.
Web sites
1. www.hdfcindia.com
2. www.hdfcinsurance.com
3. www.bimaonline.com