Chapter --1

INTRODUCTION
Insurance Companies in India
Insurance in India started as life insurance back in 1818, when it was introduced for English Widows. Even till the end of the nineteenth century, Insurance companies in India were mainly the overseas companies investing in the insurance works in Indian interesting fact here was that higher premiums were charged for India lives, as they were considered riskier for insurance cover. The Indian Government took various steps for the regulation of insurance in India by passing various insurance laws and acts. These include: o o o o o o Life Insurance Companies Act, 1992 Provident Fund Act 1912 Life Insurance corporation Act,1956 Insurance Act of 1938 General Insurance Business ( Nationalization) Act, 1972 Insurance Regulatory and Development Authority ( IRDA) Act,1990

In 1972, the General Insurance Company was nationalized with four main subsidiaries National Insurance Company, New India Insurance Company, Oriental Insurance Company and United India Insurance Company. Today Insurance companies in India have grown manifold. The Insurance sector in India has shown immense growth potential. The insurance sector in India has shown immense growth potential. Even today a giant share of Indian Population nearly 80% is not under life insurance coverage, let alone health and non-life insurance policies. This clearly indicates the potential for insurance companies to grow their market in India. In 1990, various reforms were suggested in the insurance industry in India. This has changed a lot of things for the insurance companies in India. The various fields covered by insurance companies in India include: o Life Insurance: o Health insurance: o Non-life insurance:

Another field coming up in insurance is re- insurance. The general insurance company (GIC) is the major player in re-insurance in India. It assumes the role of national reinsurer and all the insurance companies in India are supposed to pay 20% of their reinsurance businesses to GIC.

Objectives of the study

1. To study about Customers satisfaction. 2. To know the pre and post purchase behavior. 3. To study about the different products offered by HDFC Life Insurance to the customers. 4. To study about the various plans that attracts the customers. 5. To find out the buying pattern of customers of insurance policies.

Methodology
During the research the researcher has collected the data from the sangli city. Primary Data The researcher has collected the primary data Consists of original information gathered for specific purpose. Secondary data The researcher has collected the Secondary data through Internet; Books & Magazines which is already exists.

Questionnaire:The researcher has prepared a Questionnaire which is most common instrument in collecting primary data it consist of set of question presented to respondents for their answers.

Scope and limitations

Scope:The scope of the study is limited to geographical area of sangli city and rural area near to it the existing and new customers of the HDFC standard Life Insurance.

Limitations
1. During the study The Researcher has himself collected the data from the market. 2. The sample taken is very less out of large numbers. 3. No instrument is available to find out the authenticity of the answers of the interviewee. 4. Answer were given by the customer are valid for short period. 5. The time period given to this project is less.

CHAPTER----3

WHAT IS LIFE INSURANCE?

Life insurance is a guarantee that your family will receive financial support, even in your absence, Put. Simply, life insurance provides your family with a sum of money should something happen to you, it thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible moneysaving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme.

Life insurance---Life insurance is insurance for you and your familys peace of mind. Life insurance is a policy that people buy from a life insurance company, which can be the basis of protection and financial stability after ones death. Its function is to help beneficiaries financially after the owner of the policy dies.

Calculation of Life Insurance Amount / Premium:

Individuals getting a life insurance cover have to pay the Monthly/ quarterly /half yearly/ yearly premium/ life insurance rate, which depend on the amount insured. The premium amount also increases or decreases with different life insurance plans, age of the individual etc. The company pays the full insurance amount either on the death of the individual or the expiry of the policy whichever is earlier. Life insurance policy can be renewed after the expiry. Some insurance companies offer a discount while renewing the policies of existing clients. The insurance is done after a medical examination of the individual being insured

Benefits of Life Insurance policy:

y Life insurance Policy can be used to avail loans from banks.

y y

Individuals/ groups can also avail tax benefit by investing in it. Life insurance policy also acts a good saving to meet with the future needs. Life Insurance provides a financial coverage to specified beneficiaries upon the death of the insured individual. It involves a contract providing for payment of an assured sum of money to the person insured.

Need Life Insurance----First and foremost point is that life insurance isnt for you, its for your family. Some people believe that buying life insurance is like planning for their death, the fact is that life insurance is not about death, its about realizing a peace of mind prepared to face any financial crisis that would hit the family in case of your untimely demise. It provides you with a sense of security that no other form of investment provides. Life Insurance is considered one of the most popular savings / investment schemes that provides sound returns as well as protection and also serves as a Tax saving mechanism.

Life Insurance Claim

Procedure:The insured can notify the company that the payment is due under the terms of the policy. This can be done at the expiry of the life insurance policy. In case of the death of the person insured, the beneficiary receives the amount of life insurance. In case of death of insured, insurance companies can repudiate the claim. This is done to ensure the protection of the client. The procedure generally takes from 7-15 days.

ULIP PLANS
Basic Charges in ULIPs:
1. Premium Allocation Charge: This is a percentage of the premium appropriated towards charges before allocating the units. This percentage is generally higher in the first few years varying greatly from company to company to company. Say your premium allocation charges are 30%, and then out of your total premium paid of Rs. 1,00,000 Rs. 70,000 are invested in the fund effectively.

2. Mortality Charges: These are the charges to insure you against life cover which depends on no of factors such as age, amount of coverage, state of health etc. If you dont take a life cover then your mortality charges become zero. As these charges depend upon your age primarily, these charges could be around 1.3 for a 30 year old guy &can extend to 6.4 for a 50 years old guy per Rs. 1000 of the sum assured.

3. Fund Management charges: These charges are deducted for managing the fund before arriving at the Net Asset Value (NPV). The fee is charged as a percentage of funds under management by the fund managers. These are ranging from 0.5-2% per annum. 4. Policy / Administration Charges: These are the charges for administration of the plan which could be flat throughout the policy term or vary at a pre-determined rate. These are a monthly fixed amount which varies every year with inflation or as a percentage of sums assured. 5. Surrender Charges: These charges are deducted for premature partial or full encashment of units. 6. Fund Switching Charges: The charges when you wish to switch ULIP options like from Equity to debt. Generally a limited number of switches are allowed without any charge .

PRODUCTS DETAILS-Term Assurance: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. 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.

Childrens Plan:As a parent, your priority is your childs future and being able to meet your childs dreams and aspiration. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much youll need when your child takes these important steps in life! So that your child is able to lead a life of respect and dignity with a secured financial future. Invaluable financial support to your child. A choice to customize an ideal plan for your child. Multiple options for multiple benefits. The HDFC Childrens Plan is designed to secure your childs future by giving your child (the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy term. The premiums, paid by you, are invested by the company to give you good long- term returns. The plan receives simple Reversionary Bonuses, Which are usually added annually? At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment.

Critical Care:- ( Health Plan )

You have always ensured that you and your family keep living a respectable life. However, life in todays times can be uncertain. As a person who cares so much for his family, you dont want any unfortunate incident to affect your plans for you and your family. So why let any critical illnesses shatter you and your familys aspirations. HDFC Standard Life presents HDFC Critical Care Plan, a unique health plan that provides you with timely support in case of critical illness and helps you and your family to remain financially independent in difficult times. So that your family can always live their life with their head held high always. y y y y y Valuable protection for you in case of critical illness. Cover against 30 critical illnesses. Lump Sum benefits payment irrespective of actual medical cost. Cover continues even after benefit payment on selected illnesses. Flexible premium payment option.

Endowment Assurance Plan

You have given your family the very best. And there is no reason why they shouldnt get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today, but also in the long term. More importantly, you have to guard your loved ones against any eventuality. How will they sustain their way of life, so lovingly built by you, in your absence? 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 maturity date. Very flexible benefit options and payment options.

HDFC Money Back Plan

You have always believed in living life on your own terms. So why let the changing realities of everyday life overwhelm you and make your aspirations take a back seat? You can plan now to ensure that you have the necessary funds to meet your future financial needs. The HDFC Money Back plan is a With Profit Plan that gives you: A proportion of the basis Sum Assured as Cash lump sums at regular 5- year intervals within the policy term ( see the table given below) an ideal way to secure your long- term as well as short- term financial goals. A lump sum payment on survival up 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.

Maturity Value
On maturity you receive survival benefit due at that point of time along with attaching bonuses for the full Sum Assured calculated for the full term.

HDFC Personal Pension Plan

Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the

same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? You can choose your premium, the Sum Assured and your retirement date. At the end of the policy term, you will receive the Sum Assured plus any attaching bonus, which will provide your postretirement income. 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.

HDFC SimpliLife
You have given your family the very best.And there is no reason why they should not get the future too. With HDFC simpliLife, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity always. Valuable protection to your family to your family in case you are not around An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Once you have chose your investment found or funds, will then invest your premium, net of premium allocation charges in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds. In case of your unfortunate demise during the policy term, company will pay the following to your family. y y The Unit Fund Value Plus Sum Assured

HDFC Single Premium Whole of Life Insurance Plan

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 Profit) 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 UNIT LINKED ENDOWMENT II

You have given your family the very best. And there is no reason Why they should not get the very best in the future too. With HDFC Unit Linked Endowment II, You can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity always. Valuable protection to your family in case you are not around An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments.

Flexible benefit combinations and premium payment options. Flexible additional benefit options such as critical illness cover.

You can choose your premium and the investment fund or funds. It will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds. In case of your unfortunate demise during the policy term, The co. will pay the greater of your sum Assured ( less any withdrawals you have made in the two years before your claim) and your total fund value to your family.

HDFC UNIT LINKED ENHANCED LIFE PROTECTION II

You have given your family the very best. And there is no reason why they should not get the very best in the future too. With HDFC Unit Linked Enhanced Life Protection II, you can ensure that your family remains financially independent, even if you are not around. You can ensure that live a life of respect and dignity always. Valuable protection to your family in case you are not around. Increasing insurance cover every year. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. You can choose your premium and the investment fund or funds. IT will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify . At the end of the policy term, you will receive the accumulated value of your funds. In case of your unfortunate demise during the policy term, It will pay the greater of your current sum Assured ( less any withdrawals you have made in the two years before your claim) and your total fund value to your family.

HDFC Unit Linked Pension II

The HDFC Unit Linked pension II is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. Stride into your golden years of retirement with dignity and pride.

An Outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Freedom from tracking the marked with asset allocation option. Bumper addition of 50% of original annualised premium at vesting and on death.

Provides a post retirement income for life. Gives you the flexibility to plan your retirement date. You can choose your premium and the investment strategy, It will then invest your premium, net of premium allocation charges according to your chosen investment strategy. At

the end of the policy term, you will receive the accumulated value of your funds, which will be used to provide your pension income. In the event of your unfortunate demise during the policy term, your spouse will receive a cash lump sum to help him or her manage the retirement years.

HDFC UNIT LINKED PENSION MAXIMISER II

The HDFC Unit Linked pension maxi miser II is an Insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. Stride into your golden years of retirement with dignity and pride. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Bumper Addition of 10% of initial single premium at vesting and on death. Provides a post retirement income for life. Gives you the flexibility to plan your retirement date. You can choose your initial single premium and the investment strategy. It will then invest your premium, net of premium allocation chages according to your chosen investment strategy. At the end of the policy term, you will receive the accumulated value of your funds including Bumper Additions if applicable, which will be used to provide your pension income. In the event of your unfortunate demise during the policy term, your spouse will receive a cash lum sum to help him or her manage their retirement years.

HDFC UNIT LINKED WEALTH MAXIMISER PLUS You have given your best to everything in life. And you will settle for nothing but the best for yourself and your family. No wonder, you want an investment plan that enhances your investment returns. HDFC Unit Linked wealth Maxi miser Plus, a unique single premium investment plan that strives to maximize your investment returns and takes care of your familys protection need. So that while you reap potential returns of your investment, you and yours familys financial independence is also secured.

An outstanding investment opportunity with choice of new exclusive funds Single Premium with cover till age 99 years Flexible options like Managers Fund Regular Loyalty Units to boost your fund value every year No medicals in case you are eligible for applying through Short Medical Questionnaire (SMQ) You can choose your premium and the investment fund or funds. It will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. You will receive the accumulated value of your funds at the end of policy term. In case of your unfortunate demise during the policy tenure, It will pay the greater of your sum Assured (less any withdrawals as defined bellows) and your total fund value to your family.

HDFC UNIT LINKED YOUNG STAR II

As a parent, your priority is your childrens future and being able to meet their dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your children take these important steps in life. Plan today to ensure a bright future for your children. Start building savings today with our HDFC Unit Linked Young Star II so that your child is able to lead a life of respect and dignity with a secured financial future. Valuable protection to your child in case you are not around. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Flexible benefit combinations and premium payment options. Flexible additional benefit such as critical illness cover. Flexible benefit payment preferences Double Benefit and Triple Benefit. You Can choose your premium and the investment fund or fund. It will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds. In case of your unfortunate demise during the policy term, It will: pay the sum Assured you had chosen to the beneficiary AND For Double Benefit continue to pay 100% of the original regular premiums towards your policy.

For Triple Benefit continue to pay 50% of the original regular premiums towards your policy and pay the balance 50% of the premiums to the beneficiary. This means it will continue to make your savings on your behalf, in your absence. The savings can be directed 100% towards your policy or 50% towards your policy and 50% will be available for the beneficiarys regular use until the original maturity Date.