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A
Project Study report
On
Training Undertaken at
HDFC Standard Life Insurance Company Limited
On
A Comparative Analysis of the Services of HDFC Standard
Life Insurance Company with its Major Competitors
Submitted in partial fulfillment for the
Award of degree of
Master Of Business Administration
Submitted To:-
Shailesh Jain
Submitted By:
NILIMA NILAYA NAYAK
ROLL NO: 12MBAS020!
Submited To:
""#$% SAMBAL&'R 'NI($RSI)Y
1
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SHANKAR CINEMA ROAD AN!U" DIST # AN!U" AN!U" ORISSA $%&'((
C!"IFICA"
This is to certify that this Project eport on !HDFC Standard Life Insurance Company Limited
titled" submitted in partial fulfillment of the requirement for the award of #aster of $usiness
%dministration under &&'() *ambalpur +niversity is a bona fide record) done by ,ilima ,ilaya
,aya- bearing oll ,o. 12#$%*21/0.
Shailesh 'ain
$ranch #anager
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AC(#O)LD*M#"
I e)pre** +y *incere t,ank* to +y project guide MR* Shailesh Jain% S$NIOR &'BLI#
R$LA)ION O&$RA)ION MANA+$R ,-".# LI.$/ -or guiding +e rig,t -ro+ t,e inception
ti.. t,e *ucce**-u. co+p.etion o- t,e project/
I *incere.y ackno0.edge+ent ,i+ -or e)tending ,i* 1a.ua2.e guidance *upport -or .iterature
critica. re1ie0* o- project and t,e report and a2o1e a.. t,e +ora. *upport ,e ,ad pro1ided to
+e 0it, a.. *tage* o- t,i* project/
I 0ou.d a.*o .ike to t,ank t,e *upporting *ta-- o- ($$R S'R$N"RA SAI INS)I)')$%
AN+'L-or t,eir ,e.p and cooperation t,roug,out +y project/
Nilima Nilaya Nayak
0
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C!"IFICA" OF A++!O,AL
)his is to #ertif that the &roet Re3ort $ntitled:
4HDFC Standard Life Insurance Company Limited titled5
*ubmitted by #ilima #ilaya #aya- oll ,o. 12#$%*3230) *ambalpur +niversity) $urla
towards partial fulfillment of the requirements for the award of the degree of #aster of $usiness
%dministration #$% is a bona fide record of the wor- carried out by him under the able guidance
of %inaya- %ehera) 4aculty) 5eer *urendra *ai Institute) %ngul.
%pproval of the 'enter &irector
6
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EXECUTIVE SUMMARY
HD3C Standard "i-e in*urance i* t,e o.de*t .i-e in*urance co+pany in t,e 0or.d/ It i* t,e .arge*t
in*urer in t,e UK and i* t,e (4 t,.arge*t co+pany in t,e 0or.d/ In India t,e co+pany i* +arketing .i-e
in*urance product* and unit .inked in1e*t+ent p.an*/ 3ro+ +y re*earc, at HD3C "I3E I -ound t,at
t,e co+pany ,a* a .ot o- co+petition -ro+ ot,er pri1ate in*urer* .ike ICICI A1i1a 5ir.a Sun "i-e and
Tata AI!/ It a.*o -ace* co+petition -ro+ "IC/ To co+pete e--ecti1e.y HD3C S"IC cou.d .aunc,
c,eaper and +ore rea*ona2.e product* 0it, *+a.. pre+iu+* and *,ort po.icy ter+* 6t,e nu+2er o-
year7* pre+iu+ i* to 2e paid8/ T,e idea. pre+iu+ 0ou.d 2e 2et0een R*/ %999 : R*/ (%999 and an
idea. po.icy ter+ 0ou.d 2e '9 : (9 year*/
HD3C +u*t ad1erti*e regu.ar.y and create 2rand 1a.ue -or it* product* and *er1ice*/ Mo*t o- it*
co+petitor* .ike A1i1a ICICI Ma) Re.iance and "IC u*e te.e1i*ion ad1erti*e+ent* to pro+ote t,eir
product*/ T,e Indian con*u+er ,a* a -a.*e perception a2out in*urance : t,ey -ee. t,at it 0ou.d not
2ene-it t,e+ i- t,ey do not .i1e t,roug, t,e po.icy ter+/ No0aday* ,o0e1er +o*t po.icie* are unit
.inked p.an* 0,ere a cu*to+er i* 2ene-ited e1en i- t,eir deat, doe* not occur during t,e po.icy ter+/
T,i* +e**age *,ou.d 2e con1eyed to potentia. cu*to+er* *o t,at t,ey readi.y in1e*t in in*urance/
3a+i.y re*pon*i2i.itie* and ,ig, return* are t,e t0o +ain rea*on* peop.e in1e*t in in*urance/
Opti+u+ return* o- '; : (9 < +u*t 2e pro1ided to con*u+er* to keep t,e+ intere*ted in
purc,a*ing in*urance/
On t,e 0,o.e HD3C *tandard .i-e in*urance i* a good p.ace to 0ork at/ E1ery ne0 recruit i* pro1ided
0it, e)ten*i1e training on unit .inked -und* -inancia. in*tru+ent* and t,e product* o- HD3C/ T,i*
training ena2.e* an ad1i*or=*a.e* +anager to +arket t,e po.icie* 2etter/ HD3C 0a* ranked '> in t,e
5e*t P.ace* to ?ork *ur1ey/ T,e co+pany *,ou.d try to create a0arene** a2out it*e.- in India/ In
t,e g.o2a. +arket it i* a.ready 1ery popu.ar/ ?it, an i+pro1e+ent in t,e *a.e* tec,ni@ue* u*ed a
-air 2it o- ad1erti*ing and +odi-ication* to t,e e)i*ting product port-o.io HD3C 0ou.d 2e a.. *et tocapture t,e in*urance +arket in India a* it ,a* around t,e g.o2e/
/
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)-$ INS'RAN#$ IN"'S)RY IN IN"IA
AN O($R(I$=
In*urancei* a -edera. *u2ject in Indiaand ,a* a ,i*tory dating 2ack to '4'4/ "i-e and
genera. in*urance in India i* *ti.. a na*cent *ector 0it, ,uge potentia. -or 1ariou* g.o2a.
p.ayer* 0it, t,e .i-e in*urance pre+iu+* accounting to (/%< o- t,e country* !DP 0,i.e
genera. in*urance pre+iu+* to 9/;%< o- India* !DP/B'/ T,e In*urance *ector in India ,a*
gone t,roug, a nu+2er o- p,a*e* and c,ange* particu.ar.y in t,e recent year* 0,en t,e
!o1t/ o- India in '&&& opened up t,e in*urance *ector 2y a..o0ing pri1ate co+panie* to
*o.icit in*urance and a.*o a..o0ing 3DIup to (;
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auto+o2i.e and ,o+eo0ner7* in*urance co+2ine 2ot, property#ca*ua.ty and .ia2i.ity co1erage/
Co+panie* t,at under0rite t,i* kind o- in*urance are ca..ed property#ca*ua.ty carrier*/
So+e in*urance po.icie* co1er group* o- peop.e ranging -ro+ a -e0 to t,ou*and* o- indi1idua.*/
T,e*e po.icie* u*ua..y are i**ued to e+p.oyer* -or t,e 2ene-it o- t,eir e+p.oyee* or to union*
pro-e**iona. a**ociation* or ot,er +e+2er*,ip organiGation* -or t,e 2ene-it o- t,eir +e+2er*/
A+ong t,e +o*t co++on po.icie* o- t,i* nature are group .i-e and ,ea.t, p.an*/ In*urance carrier*
a.*o under0rite a 1ariety o- *pecia.iGed type* o- in*urance *uc, a* rea.#e*tate tit.e in*urance
e+p.oyee *urety and -ide.ity 2onding and +edica. +a.practice in*urance/
Ot,er organiGation* in t,e indu*try are -or+ed 2y group* o- in*urance co+panie* to per-or+
-unction* t,at 0ou.d re*u.t in a dup.ication o- e--ort i- eac, co+pany carried t,e+ out indi1idua..y/
3or e)a+p.e *er1ice organiGation* are *upported 2y in*urance co+panie* to pro1ide .o** *tati*tic*0,ic, t,e co+panie* u*e to *et t,eir rate*/
Re'ent de&elopment$(Congre**iona. .egi*.ation no0 a..o0* in*urance carrier* and ot,er -inancia.
in*titution* *uc, a* 2ank* and *ecuritie* -ir+* to *e.. one anot,er7* product*/ More in*urance
carrier* no0 *e.. -inancia. product* *uc, a* *ecuritie* +utua. -und* and 1ariou* retire+ent p.an*/
T,i* approac, i* +o*t co++on in .i-e in*urance co+panie* t,at a.ready *o.d annuitie* 2ut property
and ca*ua.ty co+panie* a.*o are increa*ing.y *e..ing a 0ider range o- -inancia. product*/ In order to
e)pand into one anot,er7* +arket* in*urance carrier* 2ank* and *ecuritie* -ir+* ,a1e engaged innu+erou* +erger* a..o0ing t,e +erging co+panie* acce** to eac, ot,er* c.ient 2a*e and
geograp,ica. +arket*/
In*urance carrier* ,a1e di*co1ered t,at t,e Internet can 2e a po0er-u. too. -or reac,ing potentia.
and e)i*ting cu*to+er*/ Mo*t carrier* u*e t,e Internet *i+p.y to po*t co+pany in-or+ation *uc, a*
*a.e* 2roc,ure* and product in-or+ation -inancia. *tate+ent* and a .i*t o- .oca. agent*/ Ho0e1er
an increa*ing nu+2er o- carrier* are *tarting to e)pand t,eir ?e2 *ite* to ena2.e cu*to+er* to
acce** on.ine account and 2i..ing in-or+ation and *o+e carrier* e1en a..o0 c.ai+* to 2e *u2+ittedon.ine/ Many carrier* a.*o pro1ide in*urance @uote* on.ine 2a*ed on t,e in-or+ation *u2+itted 2y
cu*to+er* on t,eir Internet *ite*/ In -act *o+e carrier* 0i.. a..o0 cu*to+er* to purc,a*e po.icie*
t,roug, t,e Internet 0it,out e1er *peaking to a .i1e agent/
In addition to indi1idua. carrier#*pon*ored Internet *ite* *e1era. .ead#generatingJ *ite* ,a1e
e+erged/ T,e*e *ite* a..o0 potentia. cu*to+er* to input in-or+ation a2out t,eir in*urance po.icy
need*/ 3or a -ee t,e *ite* -or0ard cu*to+er in-or+ation to a nu+2er o- in*urance co+panie*
0,ic, re1ie0 t,e in-or+ation and i- t,ey decide to take on t,e po.icy contact t,e cu*to+er 0it, an
o--er/ T,i* practice gi1e* con*u+er* t,e -reedo+ to accept t,e 2e*t rate/
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t,ey can 2e independent or pu2.ic adju*ter*/ In*urance co+panie* ,ire independent adju*ter* to
repre*ent t,eir intere*t* 0,i.e a**i*ting t,e in*ured 0,erea* pu2.ic adju*ter* are ,ired to repre*ent
t,e in*ured7* intere*t* again*t in*urance carrier*/
%anagement analysts o-ten ca..ed loss control representativesin t,e in*urance indu*try a**e**
1ariou* ri*k* -aced 2y in*urance co+panie*/ T,e*e 0orker* in*pect t,e 2u*ine** operation* o-
in*urance app.icant* ana.yGe ,i*torica. data regarding 0orkp.ace injurie* and auto+o2i.e accident*
and a**e** t,e potentia. -or natura. ,aGard* dangerou* 2u*ine** practice* and un*a-e 0orkp.ace
condition* t,at +ay re*u.t in injurie* or cata*trop,ic p,y*ica. and -inancia. .o**/ T,ey +ig,t t,en
reco++end -or e)a+p.e t,at a -actory add *a-ety e@uip+ent t,at a ,ou*e 2e rein-orced to
0it,*tand en1iron+enta. cata*trop,e* or t,at incenti1e* 2e i+p.e+ented to encourage auto+o2i.e
o0ner* to in*ta.. air 2ag* in t,eir car* or take +ore e--ecti1e +ea*ure* to pre1ent t,e-t/ 5ecau*e t,e
c,ange* t,ey reco++end can great.y reduce t,e pro2a2i.ity o- .o** .o** contro. repre*entati1e* are
increa*ing.y i+portant to 2ot, in*urance co+panie* and t,e in*ured/
Under0riting i* anot,er i+portant +anage+ent and 2u*ine** and -inancia. occupation in in*urance .
'nderwriterse1a.uate in*urance app.ication* to deter+ine t,e ri*k in1o.1ed in i**uing a po.icy/ T,ey
decide 0,et,er to accept or reject an app.ication and t,ey deter+ine t,e appropriate pre+iu+ -or
eac, po.icy/
Sale$ and related o''upation$(!nsurance sales agents a.*o re-erred to a*producers+ay 0orka* e)c.u*i1e agent* or capti1e agent* *e..ing -or one co+pany or a* independent agent* *e..ing
-or *e1era. co+panie*/ T,roug, regu.ar contact 0it, c.ient* agent* are a2.e to update co1erage
a**i*t 0it, c.ai+* en*ure cu*to+er *ati*-action and o2tain re-erra.*/ In*urance *a.e* agent* +ay
*e.. +any type* o- in*urance inc.uding .i-e annuitie* property#ca*ua.ty ,ea.t, and di*a2i.ity
in*urance/ Many in*urance *a.e* agent* are in1o.1ed in cro**#*e..ingJ or tota. account
de1e.op+entJ 0,ic, +ean* t,at 2e*ide* o--ering in*urance t,ey ,a1e 2eco+e .icen*ed to *e..
+utua. -und* annuitie* and ot,er *ecuritie*/ T,e*e agent* u*ua..y -ind t,eir o0n cu*to+er* and
en*ure t,at t,e po.icie* *o.d +eet t,e *peci-ic need* o- t,eir po.icy,o.der*/
.rofe$$ional and related o''upation$( T,e in*urance indu*try e+p.oy* re.ati1e.y -e0 peop.e in
pro-e**iona. and re.ated occupation* 2ut t,ey are e**entia. to co+pany operation*/ 3or e)a+p.e
in*urance co+panie*7 .a0yer* de-end c.ient* 0,o are *ued e*pecia..y 0,en .arge c.ai+* +ay 2e
in1o.1ed/ T,e*e .a0yer* a.*o re1ie0 regu.ation* and po.icy contract*/ Nur*e* and ot,er +edica.
pro-e**iona.* ad1i*e c.ient* on 0e..ne** i**ue* and on +edica. procedure* co1ered 2y t,e
co+pany7* +anaged#care p.an/ "omputer systems analysts computer programmers and computer
support specialists are needed to ana.yGe de*ign de1e.op and progra+ t,e *y*te+* t,at *upportt,e day#to#day operation* o- t,e in*urance co+pany/
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,anagement bu$ine$$ and finan'ial operation$ o''upation$( Manage+ent 2u*ine** and
-inancia. jo2* re@uire t,e *a+e co..ege training a* *i+i.ar jo2* in ot,er indu*trie*/ Manageria.
po*ition* u*ua..y are -i..ed 2y pro+oting co..ege#educated e+p.oyee* -ro+ 0it,in t,e co+pany/
Ho0e1er *o+e co+panie* pre-er to ,ire .i2era. art* graduate* at a .o0er co*t and +any in*urer*
*end t,e+ to co+pany *c,oo.* or enro.. t,e+ in out*ide in*titute* -or pro-e**iona. training/ A
+a*ter7* degree particu.ar.y in 2u*ine** ad+ini*tration or a re.ated -ie.d i* an a**et -or
ad1ance+ent into ,ig,er .e1e.* o- +anage+ent/
3or 2eginning under0riting jo2* +any in*urance co+panie* pre-er co..ege graduate* 0,o ,a1e a
degree in 2u*ine** ad+ini*tration or a re.ated -ie.d/ A* an under0riter7*
career de1e.op* it 2eco+e* 2ene-icia. to earn one o- t,e 1o.untary pro-e**iona. certi-ication* in
under0riting/ 3or e)a+p.e t,e Nationa. A**ociation o- Hea.t, Under0riter* o--er* t0o certi-icationprogra+* t,e Regi*tered Hea.t, Under0riter 6RHU8 de*ignation and t,e Regi*tered E+p.oyee
5ene-it* Con*u.tant 6RE5C8 de*ignation/
T,e A+erican In*titute -or C,artered Property#Ca*ua.ty Under0riter* 6AICPU8 o--er* t,e CPCU
progra+ 0,ic, inc.ude* cour*e* co1ering a 2road range o- in*urance ri*k +anage+ent and
genera. 2u*ine** topic* in1o.1ing 2ot, per*ona. and co++ercia. .o** e)po*ure*/ Earning t,e CPCU
de*ignation re@uire* pa**ing 4 e)a+* +eeting a re@uire+ent o- at .ea*t t,ree year* o- in*urance
e)perience and a2iding 2y t,e AICPU7* and CPCU Society7* code o- pro-e**iona. et,ic*/ Inconjunction 0it, t,e In*urance In*titute o- A+erica t,e AICPCU o--er* (( in*urance#re.ated
educationa. progra+* inc.uding c.ai+* under0riting ri*k +anage+ent and rein*urance/
In a.+o*t e1ery State t,o*e 0orking a* a c.ai+* e)a+iner or adju*ter +u*t o2tain a .icen*e/
"icen*ing re@uire+ent* -or t,e*e 0orker* 1ary 2y State and can inc.ude pre.icen*ing education or
pa**ing a .icen*ing e)a+/ In *o+e ca*e* pro-e**iona. de*ignation* +ay 2e *u2*tituted -or t,e
e)a+ re@uire+ent/ Separate or additiona. re@uire+ent* +ay app.y to pu2.ic adju*ter*/ 3or e)a+p.e
*o+e State* +ay re@uire pu2.ic adju*ter* to -i.e a *urety 2ond/ O-ten c.ai+* adju*ter* 0orking -orco+panie* can 0ork under t,e co+pany .icen*e and not need to 2eco+e .icen*ed t,e+*e.1e*/
Mo*t co+panie* pre-er to ,ire co..ege graduate* and t,o*e 0it, pre1iou* e)perience or 0,o ,a1e
o2tained .icen*ure -or c.ai+* adju*ter and e)a+iner po*ition*/ No *peci-ic co..ege +ajor i* re@uired
a.t,oug, +o*t 0orker* in t,e*e po*ition* ,a1e a 2u*ine** accounting engineering .ega. or
+edica. 2ackground/ In addition +any adju*ter* and e)a+iner* c,oo*e to pur*ue certain
certi-ication* and de*ignation* to di*tingui*, t,e+*e.1e*/ Many State .icen*e* and pro-e**iona.
de*ignation* re@uire continuing education -or rene0a./ Continuing education i* i+portant 2ecau*e
adju*ter* and e)a+iner* +u*t 2e kno0.edgea2.e a2out c,ange* in t,e .a0* recent court deci*ion*and ne0 +edica. procedure*/
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Sa.e* 0orker* +ay ad1ance 2y ,and.ing greater nu+2er* o- account* and +ore co+p.e)
co++ercia. in*urance po.icie*/ T,ey +ay a.*o c,oo*e to *tart an independent in*urance agency/
Many a.*o o2tain re.ated de*ignation* *uc, a* t,e CPCU under0riting de*ignation o--ered 2y t,e
AICPCU/
.rofe$$ional and related o''upation$(3or actuaria. jo2* co+panie* pre-er candidate* to ,a1e
degree* in actuaria. *cience +at,e+atic* or *tati*tic*/ Ho0e1er candidate* 0it, degree* in
2u*ine** -inance or econo+ic* are 2eco+ing +ore co++on/ Actuarie* +u*t pa** a *erie* o-
nationa. e)a+ination* to 2eco+e -u..y @ua.i-ied/ Co+p.etion o- a.. t,e e)a+* take* -ro+ % to '9
year*/ So+e o- t,e e)a+* +ay 2e taken 0,i.e an indi1idua. i* in co..ege 2ut +o*t re@uire e)ten*i1e
,o+e *tudy/ Many co+panie* grant *tudy ti+e to t,eir actuaria. *tudent* to prepare -or t,e e)a+*/
$arnin7sIndu$try earning$(?eek.y earning* o- non*uper1i*ory 0orker* in t,e in*urance indu*try a1eraged
$&4 in May (99; con*idera2.y ,ig,er t,an t,e a1erage o- %;4 -or a.. pri1ate indu*try/ Earning* o-
t,e .arge*t occupation* in in*urance in May (99; appear in ta2.e (
Table 2. #edian hourly earnings of the largest occupations in insurance) #ay 233/
Ou3ation InsuraneAll
industries
+eneral and o3erations mana7ers%>/9( 9/&$
Insurane underCriters(%/(& (%/'$
.irstline su3er9isorsDmana7ers of offie and administrati9e
su33ort Cor@ers (/>; (9/&(
#laims adusters% eaminers% and in9esti7ators (>/( (/>;
$euti9e seretaries and administrati9e assistants'4/$9 '$/&9
Boo@@ee3in7% aountin7% and auditin7 ler@s'%/%% '/;&
Insurane laims and 3oli 3roessin7 ler@s'/&$ '/&;
#ustomer ser9ie re3resentati9es'/$& '>/;(
Seretaries% ee3t le7al% medial% and eeuti9e'(/;% '>/(9
ler@s% 7eneral''/>4 ''/9
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-IS)ORI#AL &$RS&$#)I($
T,e ,i*tory o- .i-e in*urance in India date* 2ack to '4'4 0,en it 0a* concei1ed a* a +ean* to
pro1ide -or Eng.i*, ?ido0*/ Intere*ting.y in t,o*e day* a ,ig,er pre+iu+ 0a* c,arged -or Indian
.i1e* t,an t,e non # Indian .i1e* a* Indian .i1e* 0ere con*idered +ore ri*ky to co1er/ T,e 5o+2ay
Mutua. "i-e In*urance Society *tarted it* 2u*ine** in '4$9/ It 0a* t,e -ir*t co+pany to c,arge t,e
*a+e pre+iu+ -or 2ot, Indian and non#Indian .i1e*/
T,e Orienta. A**urance Co+pany 0a* e*ta2.i*,ed in '449/ T,e !enera. in*urance 2u*ine** in
India on t,e ot,er ,and can trace it* root* to Triton In*urance Co+pany "i+ited t,e -ir*t genera.
in*urance co+pany e*ta2.i*,ed in t,e year '4%9 in Ca.cutta 2y t,e 5riti*,/ Ti.. t,e end o- t,e
nineteent, century in*urance 2u*ine** 0a* a.+o*t entire.y in t,e ,and* o- o1er*ea* co+panie*/
In*urance regu.ation -or+a..y 2egan in India 0it, t,e pa**ing o- t,e "i-e In*urance Co+panie* Act
o- '&'( and t,e Pro1ident 3und Act o- '&'(/ Se1era. -raud* during t,e '&(9* and '&>9* *u..ied
in*urance 2u*ine** in India/ 5y '&>4 t,ere 0ere '$; in*urance co+panie*/
T,e -ir*t co+pre,en*i1e .egi*.ation 0a* introduced 0it, t,e In*urance Act o- '&>4 t,at pro1ided
*trict State Contro. o1er t,e in*urance 2u*ine**/ T,e in*urance 2u*ine** gre0 at a -a*ter pace a-ter
independence/ Indian co+panie* *trengt,ened t,eir ,o.d on t,i* 2u*ine** 2ut de*pite t,e gro0t,
t,at 0a* 0itne**ed in*urance re+ained an ur2an p,eno+enon/
T,e !o1ern+ent o- India in '&%; 2roug,t toget,er o1er (9 pri1ate .i-e in*urer* and pro1ident
*ocietie* under one nationa.iGed +onopo.y corporation and "i-e In*urance Corporation 6"IC8 0a*
2orn/ Nationa.iGation 0a* ju*ti-ied on t,e ground* t,at it 0ou.d create t,e +uc, needed -und* -or
rapid indu*tria.iGation/ T,i* 0a* in con-or+ity 0it, t,e !o1ern+ent* c,o*en pat, o- State .ed
p.anning and de1e.op+ent/
T,e non#.i-e in*urance 2u*ine** continued to t,ri1e 0it, t,e pri1ate *ector ti.. '&$(/ T,eir operation*
0ere re*tricted to organiGed trade and indu*try in .arge citie*/ T,e genera. in*urance indu*try 0a*
nationa.iGed in '&$(/ ?it, t,i* near.y '9$ in*urer* 0ere a+a.ga+ated and grouped into -our
co+panie*# Nationa. In*urance Co+pany Ne0 India A**urance Co+pany Orienta. In*urance
Co+pany and United India In*urance Co+pany/ T,e*e 0ere *u2*idiarie* o- t,e !enera. In*urance
Co+pany 6!IC8/
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K$Y MIL$S)ON$S
1?12:T,e Indian "i-e A**urance Co+panie* Act enacted a* t,e -ir*t *tatute to regu.ate t,e .i-e
in*urance 2u*ine**/
1?2>:T,e Indian In*urance Co+panie* Act enacted to ena2.e t,e go1ern+ent to co..ect *tati*tica.
in-or+ation a2out 2ot, .i-e and non#.i-e in*urance 2u*ine**e*/
1?!>:Ear.ier .egi*.ation con*o.idated and a+ended 2y t,e In*urance Act 0it, t,e o2jecti1e o-
protecting t,e intere*t* o- t,e in*uring pu2.ic/
1?;:(% Indian and -oreign in*urer* a.ong 0it, pro1ident *ocietie* 0ere taken o1er 2y t,e centra.
go1ern+ent and nationa.iGed/ "IC 0a* -or+ed 2y an Act o- Par.ia+ent# "IC Act '&%;# 0it, a capita.contri2ution o- R*/ % crore -ro+ t,e !o1ern+ent o- India/
IN"'S)RY R$.ORMS
Re-or+* in t,e In*urance *ector 0ere initiated 0it, t,e pa**age o- t,e IRDA 5i.. in Par.ia+ent in
Dece+2er '&&&/ T,e IRDA *ince it* incorporation a* a *tatutory 2ody in Apri. (999 ,a* -a*tidiou*.y
*tuck to it* *c,edu.e o- -ra+ing regu.ation* and regi*tering t,e pri1ate *ector in*urance co+panie*/
Since 2eing *et up a* an independent *tatutory 2ody t,e IRDA ,a* put in a -ra+e0ork o- g.o2a..y
co+pati2.e regu.ation*/
T,e ot,er deci*ion taken *i+u.taneou*.y to pro1ide t,e *upporting *y*te+* to t,e in*urance *ector
and in particu.ar t,e .i-e in*urance co+panie* 0a* t,e .aunc, o- t,e IRDA on.ine *er1ice -or i**ue
and rene0a. o- .icen*e* to agent*/ T,e appro1a. o- in*titution* -or i+parting training to agent* ,a*
a.*o en*ured t,at t,e in*urance co+panie* 0ou.d ,a1e a trained 0ork-orce o- in*urance agent* in
p.ace to *e.. t,eir product*
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Introdution to the Or7ani8ation
-".# S)AN"AR" LI.$ INS'RAN#$ #OM&ANY LIMI)$"
Life insurane
"i-e in*urance or .i-e a**urance i* a contract 2et0een t,e po.icy o0ner and t,e in*urer 0,ere t,e
in*urer agree* to pay a *u+ o- +oney upon t,e occurrence o- t,e in*ured indi1idua.* or indi1idua.*
deat, or ot,er e1ent *uc, a* ter+ina. i..ne** or critica. i..ne**/ In return t,e po.icy o0ner agree* to
pay a *tipu.ated a+ount ca..ed a pre+iu+ at regu.ar inter1a.* or in .u+p *u+*/ T,ere +ay 2e
de*ign* in *o+e countrie* 0,ere 2i..* and deat, e)pen*e* p.u* catering -or a-ter -unera. e)pen*e*
*,ou.d 2e inc.uded in Po.icy Pre+iu+/ In t,e United State* t,e predo+inant -or+ *i+p.y *peci-ie* a
.u+p *u+ to 2e paid on t,e in*ured* de+i*e/
A* 0it, +o*t in*urance po.icie* .i-e in*urance i* a contract 2et0een t,e in*urer and t,e po.icy
o0ner 0,ere2y a 2ene-it i* paid to t,e de*ignated 2ene-iciarie* i- an in*ured e1ent occur* 0,ic, i*
co1ered 2y t,e po.icy/
T,e 1a.ue -or t,e po.icy,o.der i* deri1ed not -ro+ an actua. c.ai+ e1ent rat,er it i* t,e 1a.ue
deri1ed -ro+ t,e peace o- +ind e)perienced 2y t,e po.icy,o.der due to t,e negating o- ad1er*e
-inancia. con*e@uence* cau*ed 2y t,e deat, o- t,e "i-e A**ured/
To 2e a .i-e po.icy t,e in*ured e1ent +u*t 2e 2a*ed upon t,e .i1e* o- t,e peop.e na+ed in t,e po.icy/
In*ured e1ent* t,at +ay 2e co1ered inc.udeE Serious illness
"i-e po.icie* are .ega. contract* and t,e ter+* o- t,e contract de*cri2e t,e .i+itation* o- t,e in*ured
e1ent*/ Speci-ic e)c.u*ion* are o-ten 0ritten into t,e contract to .i+it t,e .ia2i.ity o- t,e in*urerF -or
e)a+p.e c.ai+* re.ating to *uicide -raud 0ar riot and ci1i. co++otion/
"i-e#2a*ed contract* tend to -a.. into t0o +ajor categorie*
Protection po.icie* # de*igned to pro1ide a 2ene-it in t,e e1ent o- *peci-ied e1ent typica..y a
.u+p *u+ pay+ent/ A co++on -or+ o- t,i* de*ign i* ter+ in*urance/
In1e*t+ent po.icie* # 0,ere t,e +ain o2jecti1e i* to -aci.itate t,e gro0t, o- capita. 2y regu.aror *ing.e pre+iu+*/ Co++on -or+* 6in t,e US any0ay8 are 0,o.e .i-e uni1er*a. .i-e and
1aria2.e .i-e po.icie*/
O9er9ieC
&arties to ontrat
T,ere i* a di--erence 2et0een t,e in*ured and t,e po.icy o0ner 6po.icy ,o.der8 a.t,oug, t,e o0ner
and t,e in*ured are o-ten t,e *a+e per*on/ 3or e)a+p.e i- oe 2uy* a po.icy on ,i* o0n .i-e ,e i*
2ot, t,e o0ner and t,e in*ured/ 5ut i- ane ,i* 0i-e 2uy* a po.icy on oe* .i-e *,e i* t,e o0ner
and ,e i* t,e in*ured/ T,e po.icy o0ner i* t,e guarantee and ,e or *,e 0i.. 2e t,e per*on 0,o 0i..
pay -or t,e po.icy/ T,e in*ured i* a participant in t,e contract 2ut not nece**ari.y a party to it/
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T,e 2ene-iciary recei1e* po.icy proceed* upon t,e in*ured* deat,/ T,e o0ner de*ignate* t,e
2ene-iciary 2ut t,e 2ene-iciary i* not a party to t,e po.icy/ T,e o0ner can c,ange t,e 2ene-iciary
un.e** t,e po.icy ,a* an irre1oca2.e 2ene-iciary de*ignation/ ?it, an irre1oca2.e 2ene-iciary t,at
2ene-iciary +u*t agree to any 2ene-iciary c,ange* po.icy a**ign+ent* or ca*, 1a.ue 2orro0ing/
In ca*e* 0,ere t,e po.icy o0ner i* not t,e in*ured 6a.*o re-erred to a* t,e ce.ui @ui 1it or C8
in*urance co+panie* ,a1e *oug,t to .i+it po.icy purc,a*e* to t,o*e 0it, an Qin*ura2.e intere*tQ in
t,e C/ 3or .i-e in*urance po.icie* c.o*e -a+i.y +e+2er* and 2u*ine** partner* 0i.. u*ua..y 2e
-ound to ,a1e an in*ura2.e intere*t/ T,e Qin*ura2.e intere*tQ re@uire+ent u*ua..y de+on*trate* t,at
t,e purc,a*er 0i.. actua..y *u--er *o+e kind o- .o** i- t,e C die*/ Suc, a re@uire+ent pre1ent*
peop.e -ro+ 2ene-iting -ro+ t,e purc,a*e o- pure.y *pecu.ati1e po.icie* on peop.e t,ey e)pect to
die/ ?it, no in*ura2.e intere*t re@uire+ent t,e ri*k t,at a purc,a*er 0ou.d +urder t,e C -or
in*urance proceed* 0ou.d 2e great/ In at .ea*t one ca*e an in*urance co+pany 0,ic, *o.d a po.icy
to a purc,a*er 0it, no in*ura2.e intere*t 60,o .ater +urdered t,e C -or t,e proceed*8 0a* -ound
.ia2.e in court -or contri2uting to t,e 0rong-u. deat, o- t,e 1icti+ 6"i2erty Nationa. "i-e 1/ ?e.don
(;$ A.a/'$' 6'&%$88/
#ontrat terms
Specia. pro1i*ion* +ay app.y *uc, a* *uicide c.au*e* 0,erein t,e po.icy 2eco+e* nu.. i- t,e
in*ured co++it* *uicide0it,in a *peci-ied ti+e 6u*ua..y t0o year* a-ter t,e purc,a*e dateF
*o+e *tate* pro1ide a *tatutory one#year *uicide c.au*e8/ Any +i*repre*entation 2y t,e
in*ured on t,e app.ication i* a.*o ground* -or nu..i-ication/ Mo*t US *tate* *peci-y t,at t,e
conte*ta2i.ity period cannot 2e .onger t,an t0o year*F on.y i- t,e in*ured die* 0it,in t,i*
period 0i.. t,e in*urer ,a1e a .ega. rig,t to conte*t t,e c.ai+ on t,e 2a*i* o-
+i*repre*entation and re@ue*t additiona. in-or+ation 2e-ore deciding to pay or deny t,e
c.ai+/
T,e -ace a+ount on t,e po.icy i* t,e initia. a+ount t,at t,e po.icy 0i.. pay at t,e deat, o- t,e in*ured
or 0,en t,e po.icy +ature* a.t,oug, t,e actua. deat, 2ene-it can pro1ide -or greater or .e**er t,an
t,e -ace a+ount/ T,e po.icy +ature* 0,en t,e in*ured die* or reac,e* a *peci-ied age 6*uc, a* '99
year* o.d8/
#osts% insura6ilit% and underCritin7
T,e in*urer 6t,e .i-e in*urance co+pany8 ca.cu.ate* t,e po.icy price* 0it, intent to -und c.ai+* to 2e
paid and ad+ini*trati1e co*t* and to +ake a pro-it/ T,e co*t o- in*urance i* deter+ined u*ing
+orta.ity ta2.e* ca.cu.ated 2y actuarie*/ Actuarie* are pro-e**iona.* 0,o e+p.oy actuaria. *cience
27
http://en.wikipedia.org/wiki/Suicidehttp://en.wikipedia.org/wiki/Maturity_(finance)http://en.wikipedia.org/wiki/Actuaryhttp://en.wikipedia.org/wiki/Suicidehttp://en.wikipedia.org/wiki/Maturity_(finance)http://en.wikipedia.org/wiki/Actuary7/26/2019 5. HDFC Life
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0,ic, i* 2a*ed in +at,e+atic* 6pri+ari.y pro2a2i.ity and *tati*tic*8/ Morta.ity ta2.e* are *tati*tica..y#
2a*ed ta2.e* *,o0ing e)pected annua. +orta.ity rate*/ It i* po**i2.e to deri1e .i-e e)pectancy
e*ti+ate* -ro+ t,e*e +orta.ity a**u+ption*/ Suc, e*ti+ate* can 2e i+portant in ta)ation regu.ation
T,e t,ree +ain 1aria2.e* in a +orta.ity ta2.e ,a1e 2een age gender and u*e o- to2acco/ More
recent.y in t,e US pre-erred c.a** *peci-ic ta2.e* 0ere introduced/ T,e +orta.ity ta2.e* pro1ide a
2a*e.ine -or t,e co*t o- in*urance/ In practice t,e*e +orta.ity ta2.e* are u*ed in conjunction 0it, t,e
,ea.t, and -a+i.y ,i*tory o- t,e indi1idua. app.ying -or a po.icy in order to deter+ine pre+iu+* and
in*ura2i.ity/ Morta.ity ta2.e* current.y in u*e 2y .i-e in*urance co+panie* in t,e United State* are
indi1idua..y +odi-ied 2y eac, co+pany u*ing poo.ed indu*try e)perience *tudie* a* a *tarting point/
In t,e '&49* and &9* t,e SOA '&$%#49 5a*ic Se.ect U.ti+ate ta2.e* 0ere t,e typica. re-erence
point* 0,i.e t,e (99' 5T and (99' CSO ta2.e* 0ere pu2.i*,ed +ore recent.y/ T,e ne0er ta2.e*
inc.ude *eparate +orta.ity ta2.e* -or *+oker* and non#*+oker* and t,e CSO ta2.e* inc.ude
*eparate ta2.e* -or pre-erred c.a**e*/
Recent US *e.ect +orta.ity ta2.e* predict t,at roug,.y 9/>% in '999 non#*+oking +a.e* aged (% 0i..
die during t,e -ir*t year o- co1erage a-ter under0riting/ Morta.ity appro)i+ate.y dou2.e* -or e1ery
e)tra ten year* o- age *o t,at t,e +orta.ity rate in t,e -ir*t year -or under0ritten non#*+oking +en i*
a2out (/% in '999 peop.e at age ;%/Co+pare t,i* 0it, t,e US popu.ation +a.e +orta.ity rate* o- '/>
per '999 at age (% and '&/> at age ;% 60it,out regard to ,ea.t, or *+oking *tatu*8/
T,e +orta.ity o- under0ritten per*on* ri*e* +uc, +ore @uick.y t,an t,e genera. popu.ation/ At t,e
end o- '9 year* t,e +orta.ity o- t,at (% year#o.d non#*+oking +a.e i* 9/;;='999=year/
Con*[email protected] in a group o- one t,ou*and (% year o.d +a.e* 0it, a '99999 po.icy a.. o- a1erage
,ea.t, a .i-e in*urance co+pany 0ou.d ,a1e to co..ect appro)i+ate.y %9 a year -ro+ eac, o- a
.arge group to co1er t,e re.ati1e.y -e0 e)pected c.ai+*/ 69/>% to 9/;; e)pected deat,* in eac, year
) '99999 payout per deat, >% per po.icy8/ Ad+ini*trati1e and *a.e* co++i**ion* need to 2e
accounted -or in order -or t,i* to +ake 2u*ine** *en*e/ A '9 year po.icy -or a (% year o.d non#
*+oking +a.e per*on 0it, pre-erred +edica. ,i*tory +ay get o--er* a* .o0 a* &9 per year -or a
'99999 po.icy in t,e co+petiti1e US .i-e in*urance +arket/
T,e in*urance co+pany recei1e* t,e pre+iu+* -ro+ t,e po.icy o0ner and in1e*t* t,e+ to create a
poo. o- +oney -ro+ 0,ic, it can pay c.ai+* and -inance t,e in*urance co+pany* operation*/
Contrary to popu.ar 2e.ie- t,e +ajority o- t,e +oney t,at in*urance co+panie* +ake co+e* direct.y
-ro+ pre+iu+* paid a* +oney gained t,roug, in1e*t+ent o- pre+iu+* can ne1er in e1en t,e +o*t
idea. +arket condition* 1e*t enoug, +oney per year to pay out c.ai+*
28
http://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Smokinghttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Smoking7/26/2019 5. HDFC Life
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tra1e.* to a ,ig, ri*k country/Under0riting practice* can 1ary -ro+ in*urer to in*urer 0,ic, pro1ide
-or +ore co+petiti1e o--er* in certain circu+*tance*/
"i-e in*urance contract* are 0ritten on t,e 2a*i* o- ut+o*t good -ait,/ T,at i* t,e propo*er and t,e
in*urer 2ot, accept t,at t,e ot,er i* acting in good -ait,/ T,i* +ean* t,at t,e propo*er can a**u+e
t,e contract o--er* 0,at it repre*ent* 0it,out ,a1ing to -ine co+2 t,e *+a.. print and t,e in*urer
a**u+e* t,e propo*er i* 2eing ,one*t 0,en pro1iding detai.* to under0riter/
"eath 3roeeds
Upon t,e in*ured* deat, t,e in*urer re@uire* accepta2.e proo- o- deat, 2e-ore it pay* t,e c.ai+/
T,e nor+a. +ini+u+ proo- re@uired i* a deat, certi-icateand t,e in*urer* c.ai+ -or+ co+p.eted
*igned 6and typica..y notariGed I- t,e in*ured* deat, i* *u*piciou* and t,e po.icy a+ount i* .arget,e in*urer +ay in1e*tigate t,e circu+*tance* *urrounding t,e deat, 2e-ore deciding 0,et,er it ,a*
an o2.igation to pay t,e c.ai+/
Proceed* -ro+ t,e po.icy +ay 2e paid a* a .u+p *u+ or a* an annuity 0,ic, i* paid o1er ti+e in
regu.ar recurring pay+ent* -or eit,er a *peci-ied period or -or a 2ene-iciary* .i-eti+e/
Insurane 9s Assurane
T,e *peci-ic u*e* o- t,e ter+* Qin*uranceQ and Qa**uranceQ are *o+eti+e* con-u*ed/ In genera. in
t,e*e juri*diction* Qin*uranceQ re-er* to pro1iding co1er -or an e1ent t,at +ig,t ,appen 6-ire t,e-t
-.ood etc/8 0,i.e Qa**uranceQ i* t,e pro1i*ion o- co1er -or an e1ent t,at i* certain to ,appen/
QIn*uranceQ i* t,e genera..y accepted ter+ ,o0e1er peop.e u*ing t,i* de*cription are .ia2.e to 2e
corrected/ In t,e United State* 2ot, -or+* o- co1erage are ca..ed Qin*uranceQ principa..y due to
+any co+panie* o--ering 2ot, type* o- po.icy and rat,er t,an re-er to t,e+*e.1e* u*ing 2ot,
in*urance and a**urance tit.e* t,ey in*tead u*e ju*t one/
)3es of life insurane
"i-e in*urance +ay 2e di1ided into t0o 2a*ic c.a**e* : te+porary and per+anent or -o..o0ing
*u2c.a**e* # ter+ uni1er*a. 0,o.e .i-e and endo0+ent .i-e in*urance/
3
http://en.wikipedia.org/wiki/Death_certificatehttp://en.wikipedia.org/wiki/Notary_publichttp://en.wikipedia.org/wiki/Annuity_(financial_contracts)http://en.wikipedia.org/wiki/Life_annuityhttp://en.wikipedia.org/wiki/Death_certificatehttp://en.wikipedia.org/wiki/Notary_publichttp://en.wikipedia.org/wiki/Annuity_(financial_contracts)http://en.wikipedia.org/wiki/Life_annuity7/26/2019 5. HDFC Life
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can 2e re.ati1e.y e)pen*i1e to a $9 year o.d/ T,e o0ner can acce** t,e +oney in t,e ca*, 1a.ue 2y
0it,dra0ing +oney 2orro0ing t,e ca*, 1a.ue or *urrendering t,e po.icy and recei1ing t,e
*urrender 1a.ue/
T,e -our 2a*ic type* o- per+anent in*urance are Chole life uni9ersal life .i+ited pay and
endoCment/
=hole life o9era7e
?,o.e .i-e in*urance pro1ide* -or a .e1e. pre+iu+ and a ca*, 1a.ue ta2.e inc.uded in t,e po.icy
guaranteed 2y t,e co+pany/ T,e pri+ary ad1antage* o- 0,o.e .i-e are guaranteed deat, 2ene-it*
guaranteed ca*, 1a.ue* -i)ed and kno0n annua. pre+iu+* and +orta.ity and e)pen*e c,arge* 0i..
not reduce t,e ca*, 1a.ue *,o0n in t,e po.icy/ T,e pri+ary di*ad1antage* o- 0,o.e .i-e are pre+iu+in-.e)i2i.ity and t,e interna. rate o- return in t,e po.icy +ay not 2e co+petiti1e 0it, ot,er *a1ing*
a.ternati1e*/ Rider* are a1ai.a2.e t,at can a..o0 one to increa*e t,e deat, 2ene-it 2y paying
additiona. pre+iu+/ T,e deat, 2ene-it can a.*o 2e increa*ed t,roug, t,e u*e o- po.icy di1idend*/
Di1idend* cannot 2e guaranteed and +ay 2e ,ig,er or .o0er t,an ,i*torica. rate* o1er ti+e/
Pre+iu+* are +uc, ,ig,er t,an ter+ in*urance in t,e *,ort#ter+ 2ut cu+u.ati1e pre+iu+* are
roug,.y e@ua. i- po.icie* are kept in -orce unti. a1erage .i-e e)pectancy/
Ca*, 1a.ue can 2e acce**ed at any ti+e t,roug, po.icy Q.oan*Q/ Since t,e*e .oan* decrea*e t,e
deat, 2ene-it i- not paid 2ack pay2ack i* optiona./ Ca*, 1a.ue* are not paid to t,e 2ene-iciary upon
t,e deat, o- t,e in*uredF t,e 2ene-iciary recei1e* t,e deat, 2ene-it on.y/ I- t,e di1idend option Paid
up addition* i* e.ected di1idend ca*, 1a.ue* 0i.. purc,a*e additiona. deat, 2ene-it 0,ic, 0i..
increa*e t,e deat, 2ene-it o- t,e po.icy to t,e na+ed 2ene-iciary/
'ni9ersal life o9era7e
Uni1er*a. .i-e in*urance 6U"8 i* a re.ati1e.y ne0 in*urance product intended to pro1ide per+anent
in*urance co1erage 0it, greater -.e)i2i.ity in pre+iu+ pay+ent and t,e potentia. -or a ,ig,er interna.
rate o- return/ T,ere are *e1era. type* o- uni1er*a. .i-e in*urance po.icie* 0,ic, inc.ude Qintere*t
*en*iti1eQ 6a.*o kno0n a* Qtraditiona. -i)ed uni1er*a. .i-e in*uranceQ8 1aria2.e uni1er*a. .i-e
in*urance and e@uity inde)ed uni1er*a. .i-e in*urance/
A uni1er*a. .i-e in*urance po.icy inc.ude* a ca*, account/ Pre+iu+* increa*e t,e ca*, account/
Intere*t i* paid 0it,in t,e po.icy 6credited8 on t,e account at a rate *peci-ied 2y t,e co+pany/
Morta.ity c,arge* and ad+ini*trati1e co*t* are t,en c,arged again*t 6reduce8 t,e ca*, account/ T,e
*urrender 1a.ue o- t,e po.icy i* t,e a+ount re+aining in t,e ca*, account .e** app.ica2.e *urrender
c,arge* i- any/
2
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?it, a.. .i-e in*urance t,ere are 2a*ica..y t0o -unction* t,at +ake it 0ork/ T,ere* a +orta.ity
-unction and a ca*, -unction/ T,e +orta.ity -unction 0ou.d 2e t,e c.a**ica. notion o- poo.ing ri*k
0,ere t,e pre+iu+* paid 2y e1ery2ody e.*e 0ou.d co1er t,e deat, 2ene-it -or t,e one or t0o 0,o
0i.. die -or a gi1en period o- ti+e/ T,e ca*, -unction in,erent in a.. .i-e in*urance *ay* t,at i- a
per*on i* to reac, age &% to '99 6t,e age 1arie* depending on *tate and co+pany8 t,en t,e po.icy
+ature* and endo0* t,e -ace 1a.ue o- t,e po.icy/
Actuaria..y it i* rea*oned t,at out o- a group o- '999 peop.e i- e1en '9 o- t,e+ .i1e to age &% t,en
t,e +orta.ity -unction a.one 0i.. not 2e a2.e to co1er t,e ca*, -unction/ So in order to co1er t,e ca*,
-unction a +ini+u+ rate o- in1e*t+ent return on t,e pre+iu+* 0i.. 2e re@uired in t,e e1ent t,at a
po.icy +ature*/
Uni1er*a. .i-e in*urance addre**e* t,e percei1ed di*ad1antage* o- 0,o.e .i-e/ Pre+iu+* are -.e)i2.e/Depending on ,o0 intere*t i* credited t,e interna. rate o- return can 2e ,ig,er 2ecau*e it +o1e*
0it, pre1ai.ing intere*t rate* 6intere*t#*en*iti1e8 or t,e -inancia. +arket* 6E@uity Inde)ed Uni1er*a.
"i-e and aria2.e Uni1er*a. "i-e8/ Morta.ity co*t* and ad+ini*trati1e c,arge* are kno0n/ And ca*,
1a.ue +ay 2e con*idered +ore ea*i.y attaina2.e 2ecau*e t,e o0ner can di*continue pre+iu+* i- t,e
ca*, 1a.ue a..o0* it/ And uni1er*a. .i-e ,a* a +ore -.e)i2.e deat, 2ene-it 2ecau*e t,e o0ner can
*e.ect one o- t0o deat, 2ene-it option* Option A and Option 5/
Option A pay* t,e -ace a+ount at deat, a* it* de*igned to ,a1e t,e ca*, 1a.ue e@ua. t,e deat,2ene-it at +aturity 6u*ua..y at age &% or '998/ ?it, eac, pre+iu+ pay+ent t,e po.icy o0ner i*
reducing t,e co*t o- in*urance unti. t,e ca*, 1a.ue reac,e* t,e -ace a+ount upon +aturity/
Option 5 pay* t,e -ace a+ount p.u* t,e ca*, 1a.ue a* it* de*igned to increa*e t,e net deat,
2ene-it a* ca*, 1a.ue* accu+u.ate/ Option 5 o--er* t,e 2ene-it o- an increa*ing deat, 2ene-it e1ery
year t,at t,e po.icy *tay* in -orce/ T,e dra02ack to option 5 i* t,at 2ecau*e t,e ca*, 1a.ue i*
accu+u.ated Qon top o-Q t,e deat, 2ene-it t,e co*t o- in*urance ne1er decrea*e* a* pre+iu+
pay+ent* are +ade/ T,u* a* t,e in*ured get* o.der t,e po.icy o0ner i* -aced 0it, an e1erincrea*ing co*t o- in*urance 6it co*t* +ore +oney to pro1ide t,e *a+e initia. -ace a+ount o-
in*urance a* t,e in*ured get* o.der8/
Limited3a
Anot,er type o- per+anent in*urance i* "i+ited#pay .i-e in*urance in 0,ic, a.. t,e pre+iu+* are
paid o1er a *peci-ied period a-ter 0,ic, no additiona. pre+iu+* are due to keep t,e po.icy in -orce/
Co++on .i+ited pay period* inc.ude '9#year (9#year and paid#up at age ;%/
$ndoCments
http://en.wikipedia.org/w/index.php?title=Limited-pay_life_insurance&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Limited-pay_life_insurance&action=edit&redlink=17/26/2019 5. HDFC Life
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Endo0+ent*are po.icie* in 0,ic, t,e ca*, 1a.ue 2ui.t up in*ide t,e po.icy e@ua.* t,e deat, 2ene-it
6-ace a+ount8 at a certain age/ T,e age t,i* co++ence* i* kno0n a* t,e endo0+ent age/
Endo0+ent* are con*idera2.y +ore e)pen*i1e 6in ter+* o- annua. pre+iu+*8 t,an eit,er 0,o.e .i-e
or uni1er*a. .i-e 2ecau*e t,e pre+iu+ paying period i* *,ortened and t,e endo0+ent date i* ear.ier/
In t,e United State* t,e Tec,nica. Correction* Act o- '&44 tig,tened t,e ru.e* on ta) *,e.ter*
6creating +odi-ied endo0+ent*8/ T,e*e -o..o0 ta) ru.e* a*annuitie*and IRA* do/
Endo0+ent In*urance i* paid out 0,et,er t,e in*ured .i1e* or die* a-ter a *peci-ic period 6e/g/ '%
year*8 or a *peci-ic age 6e/g/ ;%8/
Aidental "eath
Accidenta. deat, i* a .i+ited .i-e in*urance t,at i* de*igned to co1er t,e in*ured 0,en t,ey pa**
a0ay due to an accident/ Accident* inc.ude anyt,ing -ro+ an injury 2ut do not typica..y co1er any
deat,* re*u.ting -ro+ ,ea.t, pro2.e+* or *uicide/ 5ecau*e t,ey on.y co1er accident* t,e*e po.icie*
are +uc, .e** e)pen*i1e t,an ot,er .i-e in*urance*/
It i* a.*o 1ery co++on.y o--ered a* Qaccidenta. deat, and di*+e+2er+ent in*uranceQ a.*o kno0n
a* an ADD po.icy/ In an ADD po.icy 2ene-it* are a1ai.a2.e not on.y -or accidenta. deat, 2ut a.*o
-or .o** o- .i+2* or 2odi.y -unction* *uc, a* *ig,t and ,earing etc/
Accidenta. deat, and ADD po.icie* 9er rarel 3aa 2ene-itF eit,er t,e cau*e o- deat, i* not
co1ered or t,e co1erage i* not +aintained a-ter t,e accident unti. deat, occur*/ To 2e a0are o-
0,at co1erage t,ey ,a1e an in*ured *,ou.d a.0ay* re1ie0 t,eir po.icy -or 0,at it co1er* and 0,at it
e)c.ude*/ O-ten it doe* not co1er an in*ured 0,o put* t,e+*e.1e* at ri*k in acti1itie* *uc, a*
parac,uting -.ying an airp.ane pro-e**iona. *port* or in1o.1e+ent in a 0ar 6+i.itary or not8/ A.*o
*o+e in*urer* 0i.. e)c.ude deat, and injury cau*ed 2y pro)i+ate cau*e* due to 62ut not .i+ited to8racing on 0,ee.* and +ountaineering/
Accidenta. deat, 2ene-it* can a.*o 2e added to a *tandard .i-e in*urance po.icy a* a rider/ I- t,i*
rider i* purc,a*ed t,e po.icy 0i.. genera..y pay dou2.e t,e -ace a+ount i- t,e in*ured die* due to an
accident/ T,i* u*ed to 2e co++on.y re-erred to a* a dou2.e inde+nityco1erage/ In *o+e ca*e*
*o+e co+panie* +ay e1en o--er a trip.e inde+nity co1
0
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JOIN) ($N)'R$
HD3C Standard "i-e In*urance Co+pany "i+ited 0a* one o- t,e -ir*t co+panie* to 2e granted
.icen*e 2y t,e IRDA to operate in .i-e in*urance *ector/ Reac, o- t,e p.ayer i* ,ig,.y rated and
2een con-erred 0it, +any a0ard*/ HD3C i* rated AAA 7 2y 2ot, CRISI" and ICRA/ Si+i.ar.y
Standard "i-e i* rated AAA7 2ot, 2y Moody7* and Standard and Poor7*/ T,e*e re-.ect t,e e--iciency
0it, 0,ic, HD3C and Standard "i-e +anage t,eir a**et 2a*e o- R*/ '%999 Cr and R*/ ;99999 Cr/
re*pecti1e.y/
HD3C Standard "i-e In*urance Co+pany "td 0a* incorporated on ' t,Augu*t (999/ HD3C i* t,e
+ajority *take,o.der in t,e in*urance 0it, 4'/< *tap.e and Standard o- a* a *tap.e '4/;< Mr/
Deepak Sat0a.ekar i* t,e MD and CEO o- t,e 1enture/
HD3C Standard "i-e In*urance Co+pany "td/ I* one o- India7* .eading Pri1ate "i-e In*urance
Co+panie* 0,ic, o--er* a range o- indi1idua. and group in*urance *o.ution*/ It i* a joint 1enture
2et0een Hou*ing De1e.op+ent 3inance Corporation "i+ited 6HD3C "td/8 India7* .eading ,ou*ing-inance in*titution and t,e Standard "i-e A**urance Co+pany a .eading pro1ider o- -inancia.
*er1ice* -ro+ t,e United Kingdo+/ 5ot, t,e pro+oter* are 0i.. kno0n -or t,eir et,ica. dea.ing* and
-inancia. *trengt, and are t,u* co++itted to 2eing a .ong#ter+ p.ayer in t,e .i-e in*urance indu*try#
a.. i+portant -actor* to con*ider 0,en c,oo*ing your in*urer/
B'SIN$SS+RO=)-
)ra@ Reord so far
T,e gro** pre+iu+ inco+e o- HD3C -or t,e year ending Marc, >' (99$ *tood at R*/ (4%; crore*
and ne0 2u*ine** pre+iu+ inco+e at R*/ ';( crore*/
T,e co+pany ,a* co1ered o1er 4$$999 .i1e* year ending Marc, >' (99$/ Co+pany a.*o dec.ared
our %t,con*ecuti1e 2onu* in a* +any year* -or our 0it, pro-it7 po.icy,o.der*/
K$Y S)R$N+)-
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.inanial $3ertise
A* a joint 1enture o- .eading -inancia. *er1ice* group*/ HD3C *tandard "i-e ,a* t,e -inancia.
e)perti*e re@uired to +anage .ong#ter+ in1e*t+ent* *a-e.y and e--icient.y/
Ran7e of Solutions
HD3C S"IC ,a* a range o- indi1idua. and group *o.ution* 0,ic, can 2e ea*i.y cu*to+iGed to
*peci-ic need*/ T,e*e group *o.ution* ,a1e 2een de*igned to o--er co+p.ete -.e)i2i.ity co+2ined
0it, a .o0 c,arging *tructure/
Stron7 $thial (alues:
HD3C S"IC i* an et,ica. and Cu.tura. OrganiGation/ 3a.*e *e..ing or -a.*e co++it+ent 0it, t,e
cu*to+er* i* not a..o0ed/
Most res3eted &ri9ate Insurane #om3an
HD3C S"IC 0a* a0arded No#' Pri1ate In*urance Co+pany in (99 2y t,e ?or.d C.a** MagaGine
5u*ine** ?or.d -or Integrity Inno1ation and Cu*to+er Care/
03
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#OR&ORA)$ OBJ$#)I($
(ision
T,e +o*t *ucce**-u. and ad+ired .i-e in*urance co+pany 0,ic, +ean* t,at 0e are t,e +o*t
tru*ted co+pany t,e ea*ie*t to dea. 0it, o--er t,e 2e*t 1a.ue -or +oney and *et t,e *tandard* in
t,e indu*try*
T,e +o*t o21iou* c,oice -or a../
(alues
/Integrity
/Inno1ation
/Cu*to+er centric
/Peop.e Care One -or a..
/Tea+0ork
/oy and Si+p.icity
&RO"'#)S F S$R(I#$S
T,e rig,t in1e*t+ent *trategie* 0ont ju*t ,e.p p.an -or a +ore co+-orta2.e to+orro0 ## t,ey 0i.. ,e.p
you get Sar Ut,a ke iyoJ. At HD3C S"IC .i-e in*urance p.an* are created keeping in +ind t,e
c,anging need* o- -a+i.y/ It* .i-e in*urance p.an* are de*igned to pro1ide you 0it, -.e)i2.e option*
t,at +eet 2ot, protection and *a1ing* need*/ It o--er* a -u.. range o- tran*parent -.e)i2.e and 1a.ue
-or +oney product*/ HD3C S"IC product* are +odern and conte+porary unitiGed product* t,at o--er
uni@ue cu*to+er 2ene-it* .ike -.e)i2i.ity to c,oo*e co1er .e1e.* inde)ation and partia. 0it,dra0a.*/
6Source 000/,d-c*.ic/co+8
01
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&LANS )-A) AR$ O..$R$" BY -".# S)AN"AR"S LI.$
INS'RAN#$
Indi9idual &roduts
&rotetion &lans
A per*on can protect ,i* -a+i.y again*t t,e .o** o- ,i* inco+e or t,e 2urden o- a .oan in t,e
e1ent o- ,i* un-ortunate de+i*e di*a2i.ity or *ickne**/ T,e*e p.an* o--er 1a.ua2.e peace o-
+ind at a *+a.. price/ Protection range inc.ude* our )erm Assurane &lan Loan #o9er
)erm Assurane &lan/
In9estment &lans
HD3C S"IC7* Sin7le &remium =hole of Life 3lani* 0e.. *uited to +eet .ong ter+ in1e*t+ent
need*/ T,i* pro1ide* attracti1e .ong ter+ return* t,roug, regu.ar 2onu*e*/
&ension &lans
Pen*ion P.an* ,e.p to *ecure -inancia. independence e1en a-ter retire+ent/ Pen*ion range
inc.ude*&ersonal &ension &lan 'nit Lin@ed &ension'nit Lin@ed &ension &lus/
Sa9in7s &lans
Sa1ing* P.an* o--er a -.e)i2.e option to 2ui.d *a1ing* -or -uture need* *uc, a* 2uying a drea+
,o+e or -u.-i..ing your c,i.dren7* i++ediate and -uture need*/
Sa1ing* range inc.ude* $ndoCment Assurane &lan'nit Lin@ed $ndoCment'nit Lin@ed$ndoCment &lus'nit Lin@ed $ndoCment &lus IIMone Ba@
'nit Lin@ed $nhaned Life &rotetion II#hildrenGs &lan% 'nit Lin@ed Youn7 Star'nit
Lin@ed Youn7 Star &lus 'nit Lin@ed Youn7 Star &lus II/
02
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+rou3 &roduts
Onesto3 sho3 for em3loee6enefit solutions
HD3C Standard "i-e ,a* t,e +o*t co+pre,en*i1e .i*t o- product* -or progre**i1e e+p.oyer* 0,o
0i*, to pro1ide t,e 2e*t and +o*t inno1ati1e e+p.oyee 2ene-it *o.ution* to t,eir e+p.oyee*/ It
o--er* di--erent product* -or di--erent need* o- e+p.oyer* ranging -ro+ ter+ in*urance p.an* -or
pure protection to 1o.untary p.an* *uc, a* *uperannuation and .ea1e enca*,+ent/
HD3C S"IC o--er* t,e -o..o0ing group product* to e*tee+ed corporate c.ient*
+rou3 )erm Insurane
+rou3 (aria6le )erm Insurane
+rou3 'nitLin@ed &lan
An in1e*t+ent *o.ution t,at pro1ide* -unding 1e,ic.e to +anage corpu*e* 0it,
!ratuity De-ined 5ene-it or De-ined Contri2utionSuperannuationor "ea1e
Enca*,+ent*c,e+e* o- your co+pany
A.*o *uita2.e -or ot,er e+p.oyee 2ene-it *c,e+e* *uc, a* *a.ary *a1ing *c,e+e*
and 0ea.t, +anage+ent *c,e+e*
0
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Soial &rodut
"e9elo3ment Insurane &lan
De1e.op+ent In*urance p.an i* an in*urance p.an 0,ic, pro1ide* .i-e co1er to +e+2er* o- a
De1e.op+ent Agency -or a ter+ o- one year/ On t,e deat, o- any +e+2er o- t,e group in*ured
during t,e year o- co1er a .u+p *u+ i* paid to t,o*e +e+2er 2ene-iciarie* to ,e.p +eet *o+e o-
t,e i++ediate -inancia. need* -o..o0ing t,eir .o**/
$li7i6ilit
Me+2er* o- t,e de1e.op+ent agency and t,eir *pou*e* 0it,
# Mini+u+ age at t,e *tart o- t,e po.icy '4 year* .a*t 2irt,day
# Ma)i+u+ age at t,e *tart o- po.icy %9 year* .a*t 2irt,day
E+p.oyee* o- t,e De1e.op+ent Agency are not e.igi2.e to join t,e group/ T,e group to 2e
co1ered i* on.y e.igi2.e i- it contain* +ore t,an %99 +e+2er*/
&remium &aments
T,e pre+iu+ to 2e paid 0i.. 2e @uoted per +e+2er in t,e group and 0i.. 2e t,e *a+e -or a..
+e+2er* o- t,e group/
T,e pre+iu+ can on.y 2e paid 2y t,e De1e.op+ent Agency a* a *ing.e .u+p *u+ t,at inc.ude*
a.. pre+iu+* -or t,e group to 2e co1ered/ Co1er 0i.. not *tart unti. t,e pre+iu+ and a.. t,e
+e+2er in-or+ation in our *peci-ied -or+at ,a* 2een recei1ed/
Benefits
On t,e deat, o- eac, +e+2er co1ered 2y t,e po.icy during t,e year o- co1er a .u+p *u+ e@ua.
to t,e *u+ a**ured 0i.. 2e paid to t,eir 2ene-iciarie* or .ega. ,eir*/ ?,ere t,e deat, i* a* a
re*u.t o- an accident an additiona. .u+p *u+ 0i.. 2e paid e@ua. to ,a.- t,e *u+ a**ured/ T,ere
are no 2ene-it* paid at t,e end o- t,e year o- co1er and t,ere i* no *urrender 1a.ue a1ai.a2.e at
any ti+e/
)he role of the "e9elo3ment A7en
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Due to t,e nature o- t,e group* co1ered HD3C Standard "i-e 0i.. 2e pa**ing certain
ad+ini*trati1e ta*k* onto t,e De1e.op+ent Agency/ 5y pa**ing on t,e*e ta*k* t,e pre+iu+
c,arged can 2e .o0er/ T,e*e ta*k* 0ou.d inc.ude
Su2+i**ion o- +e+2er data in a *peci-ied co+puter -or+atCo..ection o- pre+iu+* -ro+ group +e+2er*
Recording c,ange* in t,e detai.* o- group +e+2er*
Di*2ur*e+ent o- c.ai+ pay+ent* and t,e +orta.ity re2ate 6i- any8 to group +e+2er*
T,e*e ta*k* 0ou.d 2e in addition to t,e u*ua. dutie* o- a po.icy,o.der *uc, a*
Pay+ent o- pre+iu+*
Reporting o- c.ai+*
Keeping po.icy ,o.der in-or+ation up to date
Training and *upport 0i.. 2e a1ai.a2.e to gi1e guidance on ,o0 to co+p.ete t,e ta*k*
appropriate.y/ Since t,e*e additiona. ta*k* 0i.. i+po*e a 2urden on t,e De1e.op+ent Agencyt,e De1e.op+ent Agency +ay c,arge a R*/ '9 ad+ini*tration -ee to t,eir +e+2er*/
)A)A AI+ LI.$ INS'RAN#$ #OM&ANY LIMI)$"
Introdution
Tata AI! "i-e In*urance Co+pany "i+ited 6Tata AI! "i-e8 i* a joint 1enture co+pany -or+ed 2y t,e
Tata !roup and A+erican Internationa. !roup Inc/ 6AI!8/ Tata AI! "i-e co+2ine* t,e Tata !roup7*
pre#e+inent .eader*,ip po*ition in India and AI!7* g.o2a. pre*ence a* t,e 0or.d7* .eading
internationa. in*urance and -inancia. *er1ice* organiGation/ T,e Tata !roup ,o.d* $ per cent *take
in t,e in*urance 1enture 0it, AI! ,o.ding t,e 2a.ance (; percent/ Tata AI! "i-e pro1ide* in*urance
*o.ution* to indi1idua.* and corporate/ Tata AI! "i-e In*urance Co+pany 0a* .icen*ed to operate in
India on 3e2ruary '( (99' and *tarted operation* on Apri. ' (99'/
)-$ )A)A +RO'&
T,e Tata !roup i* one o- India* .arge*t and +o*t re*pected 2u*ine** cong.o+erate* 0it, re1enue*
in (99#9% o- '$/4 2i..ion 6R*/ $&&''4 +i..ion8 t,e [email protected] o- a2out (/4 per cent o- t,e country*
!DP/ Tata co+panie* toget,er e+p.oy *o+e ('%999 peop.e/ T,e !roup* >( pu2.ic.y .i*ted
enterpri*e* # a+ong t,e+ *tandout na+e* *uc, a* Tata Stee. Tata Con*u.tancy Ser1ice* Tata
Motor* and Tata Tea # ,a1e a co+2ined +arket capita.iGation t,at i* t,e ,ig,e*t a+ong Indian
2u*ine** ,ou*e* in t,e pri1ate *ector and a *,are,o.der 2a*e o- o1er ( +i..ion/ T,e Tata !roup ,a*
operation* in +ore t,an 9 countrie* acro** *i) continent* and it* co+panie* e)port product* and
*er1ice* to '9 nation*/
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AI+
A+erican Internationa. !roup Inc/ 6AI!8 0or.d .eader* in in*urance and -inancia. *er1ice* i* t,e
.eading internationa. in*urance organiGation 0it, operation* in +ore t,an '>9 countrie* and
juri*diction*/ AI! co+panie* *er1e co++ercia. in*titutiona. and indi1idua. cu*to+er* t,roug, t,e
+o*t e)ten*i1e 0or.d0ide property#ca*ua.ty and .i-e in*urance net0ork* o- any in*urer/ In addition
AI! co+panie* are .eading pro1ider* o- retire+ent *er1ice* -inancia. *er1ice* and a**et
+anage+ent around t,e 0or.d/ AI!* co++on *tock i* .i*ted on t,e Ne0 Lork Stock E)c,ange a*
0e.. a* t,e *tock e)c,ange* in "ondon Pari* S0itGer.and and Tokyo/
Tata AI! ,a* *trong 2rand na+e and reca.. -actor 0,ic, +o*t o- it* co+petitor* .ack in/ Ot,er t,an
t,e pu2.ic 2e,e+ot, "i-e In*urance Corporation 6"IC8 o- India 0,ic, ,a* a +ajor ,o.d in t,e +arket
*,are 6o- appro)i+ate.y $&
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?orkp.ace So.ution*
Indi9idual life insurane 3roduts:
Hea.t, 3ir*t
Hea.t, Protector
Ma,a.i-e
In1e*tA**ure II In1e*tA**ure !o.d
S,u2, .i-e Nir2,ay .i-e
?it, re*pect to indi1idua. .i-e in*urance product* Tata AI! ,a* an array o- po.icie* to *uit t,e need*
and re@uire+ent* o- a.. age group* 1iG c,i.dren *tudent* adu.t* retiree* etc/
T,e SUPPORT7 ar+ o- Tata AI! "i-e i* con*tituted o- Operation* Hu+an Re*ource* Marketing
Corporate Training 3inance and Co+p.iance/
Tata AI! "i-e po**e**e* t,e p,i.o*op,y and dri1e to cu*to+iGe retire+ent o2.igation* 6-or t,e
co+pany8 0,ic, occur in t,e -or+ o- ca*, out-.o0* -or t,e +a)i+u+ 2ene-it o- 2ot, t,e e+p.oyer
and t,e departing e+p.oyee/
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&oints of &arit
.unds a9aila6le Cith 'LI& &lans
+eneral "esri3tion Nature of In9estments Ris@ #ate7or
$Huit .undsPri+ari.y in1e*ted in co+pany
*tock* 0it, t,e genera. ai+ o- capita.appreciation
Hig,
Inome% .ied Interestand Bond .unds
In1e*ted in corporate 2ond*go1ern+ent *ecuritie* and ot,er -i)ed
inco+e in*tru+ent*Mediu+
#ash .unds
So+eti+e* kno0n a* MoneyMarket 3und* in1e*ted in ca*,
2ank depo*it* and +oney +arketin*tru+ent*
"o0
Balaned .undsCo+2ining e@uity in1e*t+ent0it, -i)ed intere*t in*tru+ent*
Mediu+
!enera..y a.. .i-e in*urance co+panie* ,a1e t,ree type* o- -und 0,ic, are E@uity -und De2t -und
and 5a.ance -und/ T,e*e -und ,a1e di--erent ri*k pro-i.e/ E@uity -und ,a* ,ig, ri*k 2ut it gi1e* ,ig,
return De2t -und ,a* .o0 ri*k *o it gi1e* .o0 return and 5a.anced -und i* co+2ination o- 2ot, E@uity
and De2t -und *o ri*k i* +ediu+ and return i* a.*o .o0/
5ot, HD3C S"IC and Tata AI! "IC ,a1e $ type* o- -und* 2a*ed on co+2ination o- De2t:E@uity
-und/ T,e*e are .i@uid -und *ta2.e +anaged -und *ecure +anaged -und de-en*i1e +anaged -und
2a.anced +anaged -und e@uity +anaged -und gro0t, -und/
Indeation
Lou ,a1e t,e option to increa*e your regu.ar pre+iu+* 2y an inde)ation rate at any po.icy
anni1er*ary to protect t,e rea. 1a.ue o- your in1e*t+ent again*t in-.ation/ T,e rate o- inde)ation 0i..
2e in .ine 0it, t,e increa*e in t,e ?,o.e Sa.e Price Inde) 6or in t,e e1ent t,at t,i* Inde) cea*e* to
2e pu2.i*,ed *uc, ot,er inde) a* t,e Co+pany +ay *e.ect -or t,i* purpo*e8/ T,e 2a*e *u+ a**ured
and *u+ a**ured o- any attac,ed rider 0ou.d a.*o 2e increa*ed 2y t,e corre*ponding inde)ation
increa*e/
#har7es% .ees and "edutions in 'LI&
&remium Alloation #har7e
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T,i* i* a pre+iu+#2a*ed c,arge/ A-ter deducting t,i* c,arge -ro+ pre+iu+* t,e re+ainder i*
in1e*ted to 2uy unit*/ T,e A..ocation c,arge* are guaranteed -or t,e entire duration o- po.icy ter+/
Mortalit #har7e
T,e Morta.ity C,arge 0i.. app.y on t,e Su+ at Ri*k 6SAR Su+ A**ured .e** t,e 3und a.ue
pertaining to regu.ar pre+iu+*8/ It 0i.. 2e deducted 2y +ont,.y cance..ation o- unit* -ro+ t,e
accu+u.ation unit account/ T,e Morta.ity C,arge *,a.. re+ain guaranteed t,roug,out t,e po.icy
ter+/
.und Mana7ement #har7e
'< p/a/ on ?it, Pro-it* 3und '< p/a/ on De2t 3und '/(%< p/a/ on 5a.anced 3und and '/%9< p/a/
on !ro0t, 3und/ 3MC 0i.. 2e app.ied on t,e -und 0,i.e ca.cu.ating NA on a dai.y 2a*i*/ T,e
+a)i+u+ 3MC on any -und i* (< p/a/ *u2ject to prior appro1a. 2y t,e IRDA/
&oli Administration #har7e
R*/ ;9 per +ont, 0,ic, 0i.. increa*e 2y %< p/a/ on t,e '*t o- anuary eac, year/ PAC 0i.. 2e
deducted +ont,.y 2y cance..ation o- unit* -ro+ t,e accu+u.ation unit account/ I- pre+iu+* are
di*continued t,i* c,arge 0ou.d reduce to ;9< o- t,e c,arge app.ica2.e -or t,e pre+iu+ paying
po.icie*
Surrender #har7e
T,i* i* t,e c,arge t,at app.ie* 0,en t,e po.icy i* *urrendered/ It i* e@ua. to %9< o- t,e di--erence
2et0een regu.ar pre+iu+* e)pected and t,o*e paid in t,e -ir*t year o- t,e contract/
Ser9ie )a "edutions
'(/>;< *er1ice ta) i* app.ica2.e on t,e -ir*t pre+iu+ o- .i-e in*urance po.icy/
)a Benefits
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Ta) 2ene-it* 0i.. 2e a* per Section 49C Section '96'9D8 o- t,e Inco+e Ta) Act '&;'/ In*urance i*
ta) -ree up to R*/ '99999 per annu+ and t,e return* on in1e*t+ent on +aturity o- t,e po.icy are
a.*o ta) -ree/
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RI"$RS AN" BON'S$S
-".# Standard Life
Insurane
)ata AI+ Life Insurane
.ree Loo@ &eriod '% day* '% day*
Re9ersionar Bonus5a*ed on co+pany*
per-or+ance5a*ed on co+pany*
per-or+ance
)erminal Bonus5a*ed on co+pany*
per-or+ance5a*ed on co+pany*
per-or+ance
)O& '& Mini+u+ R*/ %999 Mini+u+ R*/ %999
Riders
#ritial Illness ,#I/ Benefit!i1e* on diagno*i* o-
anyone
o- ; critica. i..ne**
!i1e* on diagno*i* o-anyone
o- '( critica. i..ne**Additional )erm Benefit ,A)B/ Pro1ide* Pro1ide*
Aidental "eath Benefit,A"B/
Pro1ide* Pro1ide*
"ou6le Benefit Pro1ide* Doe* not pro1ide
)ri3le Benefit Pro1ide* Doe* not pro1ide
&aer Benefit Rider ,&BR/ Doe* not pro1ide Pro1ide*
=ai9er of &remium ,=O&/Benefit
Pro1ide* Pro1ide*
&OIN)S O. "I..$R$N#$
-".# Standard Life
Insurane)ata AI+ Life Insurane
+rae &eriod '% day* >' day*
&oli Administration #har7e R*/ ;9 per +ont, R*/ %% per +ont,
+uaranteed Bonus Doe* not gi1e '9< on *u+#a**ureda-ter '9 year
Loalt Bonus 9/'< e1ery year 9/(%< a-ter e1ery t,year
.und SCithin7 #har7eTota. ( -ree *0itc,e* in a
po.icya-ter t,i* R*/ '99 per S0itc,
-ree *0itc,e* per yeara-ter t,i*
R*/ (%9 per *0itc,
+uaranteed Surrender 9alue%9< o- a.. pre+iu+
paid e)c.uding '*tpre+iu+
>9< o- a.. pre+iu+paid e)c.uding '*t
pre+iu+
.und Mana7ement #har7e9/49< per annu+on t,e -und 1a.ue
'/$%< per annu+on t,e -und 1a.ue
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&remium Rediretion #har7e
Tota. '( -ree Pre+iu+Redirection
in a po.icy a-ter t,i* R*/ (%9per Pre+iu+ Redirection
3ir*t ( Pre+iu+Redirection in a
year i* -ree a-ter t,i* R*/'999
per Pre+iu+ Redirection
Last Year Return 2*
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#OM&$)I)I($ ANALYSIS
LI.$ INS'RAN#$ #OR&ORA)ION O. IN"IA ,LI#/
"IC ,a* an e)ce..ent +oney 2ack po.icy 0,ic, pro1ide* -or periodic pay+ent* o- partia. *ur1i1a.
2ene-it* a* .ong a* t,e po.icy ,o.der i* a.i1e/ (9< o- t,e *u+ a**ured i* paya2.e a-ter % '9 '% and
(9 year* and t,e 2a.ance 9< i* paya2.e at t,e (9 t,year a.ong 0it, accrued 2onu*/ 6000/.ic/co+8
3or a (% year* ter+ '%< o- t,e *u+ a**ured 2eco+e* paya2.e a-ter %'9'% and (9 year* and t,e
2a.ance 9< p.u* t,e accrued 2onu* 2eco+e* paya2.e at t,e (% t,year/ An i+portant -eature o-
t,e*e type* o- po.icie* i* t,at in t,e e1ent o- t,e deat, o- t,e po.icy ,o.der at any ti+e 0it,in t,epo.icy ter+ t,e deat, c.ai+ co+pri*e* o- -u.. *u+ a**ured 0it,out deducting any o- t,e *ur1i1a.
2ene-it a+ount* 0,ic, ,a1e a.ready 2een paid/ T,e 2onu* i* a.*o ca.cu.ated on t,e -u.. *u+
a**ured/
HD3C S"IC doe* not ,a1e a +oney 2ack po.icy/ It cou.d o--er a +oney 2ack p.an and capture *o+e
portion o- t,i* +arket/ ?,i.e +arketing in*urance product* I -ound t,at +any cu*to+er* 0anted to
purc,a*e t,e*e p.an*/
"IC o--er* ;; di--erent p.an*F p.an* are -or+u.ated -or *peci-ic occa*ion* : 0,o.e .i-e p.an* ter+
a**urance p.an* +oney 2ack p.an -or 0o+en c,i.d p.an* p.an* -or t,e ,andicapped indi1idua.*
endo0+ent a**urance p.an* p.an* -or ,ig, 0ort, indi1idua.* pen*ion p.an* unit .inked p.an*
*pecia. p.an* *ocia. *ecurity *c,e+e* : di1er*i-ied port-o.io o- product*/ HD3C S"IC cou.d di1er*i-y
it* product port-o.io/ It cou.d add +ore p.an* -or ,ig, 0ort, indi1idua.* and 0o+en/
I#I#I &R'"$N)IAL
ICICI Prudentia. i* a *ti-- co+petitor -or HD3C S"IC/ T,e co+pany i* a +erger 2et0een ICICI 5ank
0,ic, i* t,e 2igge*t pri1ate 2ank in India and Prudentia. P.c 0,ic, i* a g.o2a. .i-e in*urance
co+pany/
T,e co+pany ,a* an in1e*t+ent p.an 0,ic, i* +arket re.ated : In1e*t S,ie.d "i-e/ In t,i* p.an e1en
i- t,e +arket -a..* t,e pre+iu+ 0i.. 2e returned to in1e*tor*/ It i* a guaranteed p.an 0,ic, en*ure*
t,e co+pany care-u..y in1e*t* your +oney/ T,e *tock +arket per-or+ance o- ICICI Prudentia. i*
+uc, 2etter t,an HD3C S"IC/ T,e return* on t,e gro0t, -und 0ere ;/(4< co+pared to t,e
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(/$9< o--ered 2y HD3C S"IC/ Cu*to+er* are attracted 2y ,ig,er return* and t,i* i* a p.u* point
-or Prudentia./
T,e co+pany i* 1ery 0e.. ad1erti*ed/ T,e ad1erti*e+ent* are *,o0ca*ed in +o1ie* te.e1i*ion
ne0*paper* +agaGine* 2i.. 2oard* radio etc/ T,e co+pany ,a* an e)ce..ent 2rand a+2a**ador :
Mr/ A+ita2, 5acc,an/ Hi* pro+otion o- t,e co+pany 2ui.d* tru*t and -ait, in t,e +ind* o- our
peop.e/
Ho0e1er t,e c,arge* are 1ery ,ig, in t,e p.an* o--ered 2y ICICI Prudentia./ It i* >%< during t,e -ir*t
year '%< in t,e ne)t year and >< -ro+ t,e t,ird year on0ard*/ A.*o a ,ig,er +ini+u+ pre+iu+ o-
R*/ 4999 i* c,arged/ Hence t,e po.icie* are not acce**i2.e to t,e .o0er *trata o- t,e *ociety/
6Source 000/icicipru.i-e/co+8
BIRLA S'N LI.$
5ir.a Sun "i-e In*urance Co+pany "i+ited i* a joint 1enture 2et0een T,e Aditya 5ir.a !roup one o-
t,e .arge*t 2u*ine** ,ou*e* in India and Sun "i-e 3inancia. Inc/ a .eading internationa. -inancia.
*er1ice* organiGation/ T,e .oca. kno0.edge o- t,e Aditya 5ir.a !roup co+2ined 0it, t,e e)perti*e o-
Sun "i-e 3inancia. Inc/ o--er* a -or+ida2.e protection -or your -uture/ 6Source 000/2ir.a*un.i-e/co+8
T,e Aditya 5ir.a !roup ,a* a turno1er c.o*e to R*/ >>999 crore* 0it, a +arket capita.iGation o- R*/
%>99 crore* 6a* on >'*t Marc, (99$8/ It ,a* o1er $(999 e+p.oyee* acro** a.. it* unit* 0or.d0ide/
It i* .ed 2y it* C,air+an # Mr/ Ku+ar Manga.a+ 5ir.a/ So+e o- t,e key organiGation* 0it,in t,e
group are Hinda.co and !ra*i+/
Sun "i-e 3inancia. Inc/ and it* partner* today ,a1e operation* in key +arket* 0or.d0ide inc.uding
Canada t,e United State* t,e United Kingdo+ Hong Kong t,e P,i.ippine* apan Indone*iaIndia C,ina and 5er+uda/ It ,ad a**et* under +anage+ent o- o1er US>> 2i..ion a* on >'*t
Marc, (99$/ T,e co+pany i* a .eading p.ayer in t,e .i-e in*urance +arket in Canada/
5eing a cu*to+er centric co+pany 5S"I ,a* in1e*ted ,ea1i.y in tec,no.ogy to 2ui.d 0or.d c.a**
proce**ing capa2i.itie*/ 5S"I ,a* co1ered +ore t,an a +i..ion .i1e* *ince inception and it* cu*to+er
2a*e i* *pread acro** +ore t,an '999 to0n* and citie* in India/ A.. t,i* ,a* a**i*ted t,e co+pany in
ce+enting it* p.ace a+ong*t t,e .eader* in t,e indu*try in ter+* o- ne0 2u*ine** pre+iu+ inco+e/
T,e co+pany ,a* a capita. 2a*e o- %(9 crore* a* on >'*t
u.y (99$/
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It* 3.e)i "i-e "ine P.an o--er* .i-e .ong in*urance co1er ti.. t,e po.icy ,o.der i* '99 year* o- age/ T,ere
are guaranteed return* o- >< p/a/ net o- po.icy c,arge* a-ter e1ery % year* -ro+ t,e e.e1ent, po.icy
year on0ard*/ Ho0e1er t,e c,arge* are 1ery ,ig,/ T,e initia. c,arge* -or t,e -ir*t year are ;% 99999 po.icie* and i* 2acked 2y %%9 o--ice* acro** India/ It o--er* tra1e.
in*urance +otor in*urance ,o+e in*urance ,ea.t, and corporate in*urance/ T,e +orta.ity c,arge*
are .o0er t,an HD3C S"IC/ T,e entry age cou.d 2e Gero year* 0,ic, a..o0 e1en ne0 2orn 2a2ie* to
2e in*ured/ 6Source 000/2ajaja..ianG/co+8
)A)A AI+
Tata Aig i* a joint 1enture 2et0een t,e Tata group and A+erican Internationa. !roup Inc/ In one o-
t,e p.an* t,e co+pany o--er* ,o*pita. ca*, 2ene-it 0,erein it 0i.. pay R*/ (%99 per day in ca*e o-
,o*pita.iGation and R*/'(/% .ak,* in ca*e t,e per*on *u--er* -ro+ any critica. i..ne**/ Annua.
pre+iu+ i* +uc, .e** 6a2out R*/ ;$'(8 to a1ai. *uc, a good 2ene-it/ C,arge* are re.ati1e.y .o0
co+pared to HD3C S"IC -or *o+e po.icie*/
T,e co+pany o--er* ,ig, co1erage p.an* at .o0 co*t/ T,ere i* a p.an e1en -or a po.icy ter+ o- '
year/ Lour -a+i.y can continue to enjoy t,eir current .i-e*ty.e e1en in t,e ca*e o- *o+et,ing
,appening to you/ T,e*e p.an* are 1ery -.e)i2.e and HD3C S"IC cou.d adopt t,i* idea o- in*uring
indi1idua.* -or *,ort period* o- ti+e/ 3or e)a+p.eF t,ere i* a -a+i.y o- -our/ T,e on.y earning +e+2er
i* t,e -at,er/
He ,a* ju*t taken a .oan -ro+ a 2ank o- (9 .ak,* to purc,a*e a ne0 ,o+e/ He i* a2.e to repay t,e
.oan 0it, ,i* current *a.ary in '% year*/ T,e pro2.e+ ari*e* i- *o+et,ing 0ere to ,appen to ,i+
0it,in t,e*e -i-teen year*/ Not on.y 0i.. t,e -a+i.y -ace t,e e+otiona. and -inancia. .o** o- t,eir -at,er
2ut t,ey 0i.. a.*o ,a1e to repay t,e ,o+e .oan or ri*k 2eing ,o+e.e**/ 6Source 000/tataaig/co+8
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MARK$)IN+ &ROBL$MS
T,e o.d and out dated tec,ni@ue o- te.e +arketing i* u*ed to pro*pect cu*to+er*/ More +odern
tec,ni@ue* +u*t 2e adopted/ T,e co+pany +u*t *pon*or *,o0* and gi1e pre*entation* in
corporate ,ou*e*/ T,e -inancia. ,ea.t, c,eck +u*t 2e per-or+ed -or e1ery pro*pect to a**e**
,i*=,er true -inancia. po*ition and need*/ So+e o- t,e ad1i*or* *kip t,i* 1ita. *tep and t,e pro*pect
end* up 0it, a p.an t,ey do not appreciate and *oon *urrender or di*continue/
So+e o- t,e +ain pro2.e+* in +arketing t,e po.icie* are
"arge a+ount o- co+petition 6'4 p.ayer* in t,e +arket8
Ot,er 2rand* are 0e.. ad1erti*ed and ,a1e ,ig,er reca.. 1a.ue
"IC i* con*idered a *a-er option
3ace co+petition -ro+ 2ank* and +utua. -und*
Hig, pre+iu+ po.icie* are di--icu.t to +arket
Incorrect perception a2out in*urance
Intere*ted pro*pect* +ig,t ,a1e a .ack o- ti+e and po*tpone in1e*t+ent*
Cu*to+er* get de-en*i1e i- you co.d ca..
S,ort ter+ p.an* are a1ai.a2.e on.y at .arge pre+iu+
Cu*to+er* do not ,a1e ri*k appetite to in1e*t in *,are*
So+e pro*pect* ,a1e a.ready in1e*ted and are not intere*ted in -urt,er in1e*t+ent*
Con*u+er* don7t 0ant to undertake +edica. e)a+ination*
"arge a+ount o- docu+entation
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Cu*to+er* do not .ike t,eir +oney .ocked up -or +any year*
"ack o- a0arene** a2out t,e unit .inked -und* in t,e +arket
No +oney 2ack p.an pre*ent in t,e product port-o.io
S'++$S)IONS .OR IM&RO($M$N)
Ad1erti*e a2out t,e co+pany and it* product* : it +oti1ate* indi1idua.* to purc,a*e
in*urance
Create a po*iti1e perception a2out in*urance
Speak a2out t,e good -eature* a p.an o--er* .ike ,ig, return* .i-e co1er ta) 2ene-it*
inde)ation accident co1er 0,i.e pro*pecting cu*to+er*
Try to *e.. t,e product=p.an 0,ic, t,e con*u+er re@uire* and not t,e p.an 0,ere t,e ad1i*or*
2ene-it i* ,ig,er
5ring out po.icie* 0it, *+a.. pre+iu+* paya2.e -or *,ort period* o- ti+e : R*/ %999 : R*/
'9999 per annu+ -or '9 year*
Attract t,e yout, o- India 0it, ,ig,er return* on in1e*t+ent a* return* are t,e +oti1ating
-actor 0,ic, in-.uence purc,a*e o- in*urance
Pro+ote in*urance in co..ege* and corporate ,ou*e*
Pro+ote HD3C S"IC a* an Indian Co+pany to 2ui.d tru*t
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#-A&)$RIII
Researh Methodolo7
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R$S$AR#- M$)-O"OLO+Y
)I)L$ O. )-$ S)'"Y
To Co+pare t,e product* o- HD3C Standard "i-e In*urance Co+pany "i+ited and Tata AI! "i-e
In*urance Co+pany "i+ited -or HD3C Standard "i-e In*urance Co+pany "td/J
"'RA)ION O. )-$ &ROJ$#)
T,e duration o- t,e project 0a* -ro+ une to '4 u.y/
OBJ$#)I($S O. )-$ S)'"Y
'/ To ana.y*i* t,e product detai.* o- HD3C Standard .i-e In*urance Co+pany .i+ited and Tata
AI! .i-e In*urance Co+pany "i+ited/(/ To -ind Point* o- Parity7 and Point* o- Di--erence7 o- HD3C Standard "i-e In*urance
Co+pany "i+ited and Tata AI! "i-e In*urance Co+pany "i+ited/>/ To -ind out -actor* t,at in-.uence cu*to+er* to purc,a*e in*urance po.icie* and gi1e
*ugge*tion* -or -urt,er i+pro1e+ent/
)Y&$ O. R$S$AR#-
T,ere are t0o type* o- data u*ed/ T,ey are pri+ary and *econdary data/ Pri+ary data i* de-ined a*
data t,at i* co..ected -ro+ origina. *ource* -or a *peci-ic purpo*e/ Secondary data i* data co..ected
-ro+ indirect *ource*/ 6Source Re*earc, Met,odo.ogy 5y C/ R/ Kot,ari8
&RIMARY SO'R#$S
T,e*e inc.ude t,e *ur1ey or @ue*tionnaire +et,od/
S$#ON"ARY SO'R#$S
T,e*e inc.ude 2ook* t,e internet co+pany 2roc,ure* product 2roc,ure* t,e co+pany 0e2*ite
co+petitor7* 0e2*ite* etc ne0*paper artic.e* etc/
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SAM&L$ SI$ AN" M$)-O" O. S$L$#)IN+ SAM&L$
SAM&LIN+
Sa+p.ing re-er* to t,e +et,od o- *e.ecting a *a+p.e -ro+ a gi1en uni1er*e 0it, a 1ie0 to dra0conc.u*ion* a2out t,at uni1er*e/ A *a+p.e i* a repre*entati1e o- t,e uni1er*e *e.ected -or *tudy/
SAM&L$ SI$
T,e *a+p.e *iGe -or t,e *ur1ey conducted 0a* on
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.A#)S AN" .IN"IN+S
?e -ind t,at $< o- t,e re*pondent* -a.. in t,e age group o- '4 : (% year* (%< -a.. in t,e
age group o- (; : >% year* and '$< -a.. in t,e age group o- >; : & year*/ T,ere-ore +o*t
o- t,e re*pondent* are re.ati1e.y young 62e.o0 (; year* o- age8/ T,e*e indi1idua.* cou.d 2e
induced to purc,a*e in*urance p.an* on t,e 2a*i* o- it* ta) *a1ing nature and a* an
in1e*t+ent opportunity 0it, ,ig, return*/
In India t,e .arge*t .i-e in*urance co+pany i* "i-e In*urance Corporation o- India/ It ,a*
2een in e)i*tence in India *ince '&%; and i* co+p.ete.y o0ned 2y t,e !o1ern+ent o- India/
Today t,e organiGation ,a* gro0n to (94 o--ice* *er1ing '4 crore po.icie* and ,a* a corpu*
o- o1er >9999 crore INR/
T,e out.ook o- in*urance a* a product *,ou.d 2e c,anged -ro+ *o+et,ing 0,ic, you pay -or
your 0,o.e .i-e 60,o.e .i-e po.icy8 and do not recei1e any 2ene-it 6t,e no+inee on.y recei1e*
t,e 2ene-it in ca*e o- your deat,8 to an e)tre+e.y u*e-u. in1e*t+ent opportunity 0it, t,e
pro*pect* o- good return* on *a1ing* ta) *a1ing opportunitie* a* 0e.. a* pro1iding -or e1ery
+i.e*tone in your .i-e .ike +arriage education c,i.dren and retire+ent/
HD3C S"IC i* -aced 0it, a .arge a+ount o- co+petition/ T,ere are '4 in*urance co+panie*
in India inc.u*i1e o- "IC/ Hence to capture a .arger part o- t,e +arket t,e co+pany cou.d
introduce +ore rea*ona2.e p.an* 0it, .e**er pre+iu+ paya2.e per annu+/
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ANALYSIS F IN)$R&R$)A)ION
/A SUR0" +N T# 1I2 INSURANC IN!USTR" IN IN!IA3
A+$ +RO'& O. S'R($Y$" R$S&ON"$N)S
)ABL$ 1:
A7e 7rou3 No* of Res3ondents
1> 2 ears 12< o- t,e re*pondent* are 0orking pro-e**iona.*
(>< are *tudent* and '4< are into 2u*ine**/ T,ere-ore t,e target +arket 0ou.d 2e 0orking
indi1idua.* in t,e age group o- '4 : (% year* ,a1ing *urp.u* inco+e intere*ted in good return* on
t,eir in1e*t+ent and *a1ing inco+e ta)//0
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NO* O. R$S&ON"$N)S =-O -A($ LI.$ INS'RAN#$ &OLI#Y IN )-$IR NAM$
)ABL$ :
&erson Cho ha9e life insurane 3oli
Le* '9>
No ';$
#-AR) :
38%
62% Yes
o
IN)$R&R$)A)ION :
T,i* grap, *,o0* t,at out o- tota. ($9 re*pondent* on.y '9> or >4< re*pondent* ,a1e .i-e
in*urance po.icy in t,eir na+e/ Re*t a.. don7t ,a1e a *ing.e po.icy in t,eir na+e/ So t,ere i* a 1ery
2ig *cope -or .i-e in*urance co+panie* to co1er t,e*e peop.e/ So in -uture 2u*ine** o- .i-e in*urace
0i.. gro -urt,er/
MARK$) S-AR$ O. LI.$ INS'RAN#$ #OM&ANI$S
)ABL$ :
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LI.$ INS'R$R N'MB$R O. &OLI#I$S
-".# S)AN"AR" LI.$
BIRLA S'N LI.$ !
A(I(A LI.$ INS'RAN#$ ;
BAJAJ ALLIAN %< o- t,e re*pondent* pre-er a po.icy ter+ o- '9 :'% year* '&< pre-er a ter+ o- > : % year* and '%< pre-er a ter+ o- ; : & year*/ T,i* +ean* t,at
HD3C S"IC cou.d introduce +ore p.an* 0,erein t,e pre+iu+ paying ter+ i* .e** t,an '% year*/
.A#)ORS )-A) MO)I(A)$ R$S&ON"$N)S )O &'R#-AS$ INS'RAN#$
)ABL$ 11:
&arameter No* of Res3ondents
Ad9ertisements !
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-i7h returns >
Ad9ie from friends ;
.amil res3onsi6ilities >?
Others 1;
#-AR) 11:
13%
31%
17%
33%
6%
A$er'se/e"s
'+! re#r"s
A$'e (ro/ (r'e"$sa/'y reso"s''''es
!ers
IN)$R&R$)A)ION:
3ro+ t,e c,art a2o1e it can 2e *een t,at >>< o- t,e re*pondent* purc,a*e .i-e in*urance to *ecure
t,eir -a+i.ie* >>< take .i-e in*urance to get ,ig, return* '$< purc,a*e in*urance on t,e ad1ice o-
t,eir -riend* and '>< purc,a*e in*urance 2ecau*e o- t,e in-.uence o- ad1erti*e+ent*/
T,e +ain purpo*e o- in*urance i* to co1er t,e -inancia. or econo+ic .o** t,at occur* to t,e -a+i.y in
ca*e o- t,e uncertain deat, o- t,e po.icy ,o.der/ 5ut no0 a day* t,i* trend i* c,anging/ A.ong 0it,
protection 6.i-e co1er8 a *a1ing* e.e+ent i* 2eing added to in*urance/
?it, t,e introduction o- t,e ne0 unit .inked p.an* in t,e +arket po.icy ,o.der* get t,e option to
c,oo*e 0,ere t,eir +oney 0i.. 2e in1e*ted/ T,ey can in1e*t t,eir +oney in t,e e@uity +arket de2t
+arket +oney +arket or a co+2ination o- t,e*e/ T,e de2t and +oney +arket* u*ua..y ,a1e .o0
ri*k attac,ed 0,erea* t,e e@uity +arket i* a ,ig, ri*k in1e*t+ent option/
&R$.$RR$" #OM&ANY )Y&$ O. )-$ R$S&ON"$N)S
)ABL$ 12:
)3e of #om3an No* of Res3ondents &erenta7e
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+o9ernment OCned
#om3an 12<
.orei7n #om3an !2 12
#-AR) 12:
&R$.$RR$" #OM&ANY )Y&$ O. )-$ R$S&ON"$N)S
0%10%20%30%40%50%
60%70% 60%
29%
7% 4%
Type of Company
No. of Repondents (%)
IN)$R&R$)A)ION:
3ro+ t,e grap, a2o1e 0e -ind t,at ;9< o- t,e re*pondent* pre-erred to purc,a*e in*urance -ro+ a
go1ern+ent o0ned co+pany (&< o- t,e re*pondent* pre-erred to purc,a*e in*urance -ro+ a
pu2.ic .i+ited co+pany and on.y < o- t,e re*pondent* pre-erred a -oreign 2a*ed co+pany/ Hea1y
ad1erti*ing t,roug, te.e1i*ion ne0*paper* +agaGine* and radio i* re@uired/
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S=O) ANALYSIS O. -".# S)AN"AR" LI.$ INS'RAN#$
Ana.y*i* o- t,e indu*try7* en1iron+ent
6S?OT Ana.y*i*8HD3C and Standard "i-e -ir*t ca+e toget,er -or a po**i2.e joint 1enture to enter t,e .i-e In*urance
+arket in anuary '&&%/ It 0a* c.ear -ro+ t,e out*et t,at 2ot, co+panie* *,ared *i+i.ar 1a.ue* and2e.ie-* and a *trong re.ation*,ip @uick.y -or+ed/ In Octo2er '&&% t,e co+panie* *igned a >#year
joint 1enture agree+ent/
STREN!TH
'/ Do+e*tic i+age o- HD3C *upported 2y Prudentia.7* internationa. i+age i* *trengt, o- t,eco+pany/
(/ Strong and 0e.. *pread net0ork o- @ua.i-ied inter+ediarie* and *a.e* per*on/
>/ Strong capita. and re*er1e 2a*e/
/ T,e co+pany pro1ide* cu*to+er *er1ice o- t,e ,ig,e*t order/
%/ Huge 2a*ket o- product range 0,ic, are *uita2.e to a.. age and inco+e group*/
;/ "arge poo. o- tec,nica..y *ki..ed +anpo0er 0it, in dept, kno0.edge and under*tanding o- t,e+arket/
$/ T,e co+pany a.*o pro1ide* inno1ati1e product* to cater to di--erent need* o- di--erent cu*to+er*/
?EAKNESS
'/ Hea1y +anage+ent e)pen*e* and ad+ini*trati1e co*t*/
(/ "o0 cu*to+er con-idence on t,e pri1ate p.ayer*/
>/ ertica. ,ierarc,ica. reporting *tructure 0it, +any de*ignation* and cadre* .eading to po0erpo.itic* at a.. .e1e.* 0it,out any e)ception/
/ Poor retention percentage o- tied up agent*/
OPPORTUNITIES
'/ In*ura2.e popu.ation VAccording to IN! on.y '9< o- t,e popu.ation i* in*ured 0,ic, repre*ent*around >9< o- t,e in*ura2.e popu.ation/ T,i* *ugge*t* +ore t,an >99+ peop.e 0it, t,e potentia. to2uy in*urance re+ain unin*ured/
(/ T,ere 0i.. 2e in-.o0 o- +anageria. and -inancia. e)perti*e -ro+ t,e 0or.d7* .eading in*urance
+arket*/ 3urt,er t,e 2urden o- educating con*u+er* 0i.. a.*o 2e *,ared a+ong +any p.ayer*/
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>/ Internationa. co+panie* 0i.. ,e.p in 2ui.ding 0or.d c.a** e)perti*e in .oca. +arket 2y introducingt,e 2e*t g.o2a. practice*/
THREATS
'/ "egi*.ation cou.d i+pact/
(/ !reat ri*k in1o.1ed/
>/ ery ,ig, co+petition pre1ai.ing in indu*try/
/ "ack o- in-ra*tructure in rura. area* cou.d con*train in1e*t+ent/
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#ON#L'SION
HD3C *tandard .i-e in*urance i* -ir*t .i-e in*urance Co+pany in India/ It ,a* 2u*ine**e* *pread out
acro** t,e g.o2e/ It 0a* regi*tered on (>rdDece+2er (999/ It current.y rank* nu+2er a+ong*t t,e
in*urer* in India 6Source annua. pre+iu+ pro1ided 2y t,e co+pany8
T,e co+pany -ace* a .arge a+ount o- co+petition/ To *u*tain it*e.- it +u*t pro+ote it* product*
t,roug, ad1erti*ing and i+pro1e it* *e..ing tec,ni@ue*/ Con*u+er* +u*t 2e a0are o- t,e ne0 p.an*
a1ai.a2.e at HD3C S"IC/ T,e +ediu+ o- ad1erti*ing u*ed cou.d 2e te.e1i*ion *ince +o*t o- it*
co+petitor* u*e t,i* too. to pro+ote t,eir product*/ T,e co+pany +u*t 2e pro+oted a* an Indian
co+pany *ince con*u+er* *ee+ to ,a1e +ore tru*t in in1e*ting in Indian -ir+*/
T,e unit .inked concept +u*t 2e *peci-ica..y pro+oted/ T,e genera. perception o- .i-e in*urance ,a*
to c,ange in India 2e-ore progre** i* +ade in t,i* -ie.d/ Peop.e *,ou.d not 2e a-raid to in1e*t +oney
in in*urance and +u*t u*e it a* an e--ecti1e too. -or ta) p.anning and .ong ter+ *a1ing*/
HD3C S"IC cou.d tap t,e rura. +arket* 0it, c,eaper product* and *+a..er po.icy ter+*/ T,ere are
indi1idua.* 0,o are 0i..ing to pay *+a.. a+ount* a* pre+iu+ 2ut t,e p.an* do not accept pre+iu+*
2e.o0 a certain a+ount/ It 0a* u*ua..y -ound t,at a .arge nu+2er o- +a.e* 0ere in*ured co+pared
to -e+a.e*/ Indi1idua.* 2e.o0 t,e age o- >9 6+o*t.y +a.e8 0ere intere*ted in in1e*t+ent p.an*/ T,i*0a* a genera. conc.u*ion dra0n during pro*pecting c.ient*/
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BIBLO+RA&-Y
=e6sites:
CCC*hdfsli*om
CCC*tataai7life*om
CCC*irdaindia*om
CCC*li*om
CCC*mone ontrol*om
CCC*6aaallian8*om
CCC*iii*3rulife*om
BIBLO+RA&-Y
Ma7a8ine F NeCs &a3er
Insurane =orld
)he Outloo@ Mone
Insurane #hronile
$onomi )imes
http://www.hdfcslic.com/http://www.tata-aig-life.com/http://www.irdaindia.com/http://www.icici.prulife.com/http://www.hdfcslic.com/http://www.tata-aig-life.com/http://www.irdaindia.com/http://www.icici.prulife.com/
