INDEX Chapter-I 1) Introduction 2) Literature Review 3) Statement of the problem 4) Purpose of the study 5) Scope of the study 6) Objectives of study Chapter-II 1) Organization Profile 2) Organization Chart 3) Sampling 4) Research Design Data Collection Methods 5) Measuring tools. Chapter-III 1) Result & discussion with graphs & charts. 2) Summary, conclusion, & a proposed action plan with resource requirements and projected benefits to the organization. BABASAB PATIL 1
Transcript
INDEX
Chapter-I
1) Introduction
2) Literature Review
3) Statement of the problem
4) Purpose of the study
5) Scope of the study
6) Objectives of study
Chapter-II
1) Organization Profile
2) Organization Chart
3) Sampling
4) Research Design Data Collection Methods
5) Measuring tools.
Chapter-III
1) Result & discussion with graphs & charts.
2) Summary, conclusion, & a proposed action plan with resource
requirements and projected benefits to the organization.
Chapter-IV
1) Appendix
Questionnaire
2) Bibliography
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INDUSTRY OVERVIEW
THE HISTORY OF INSURANCE:
As with so many things in so many facts of our life, insurance too was born out
of a primal need and shaped by socio economic realities of the time. The story goes
back to around 2100 BC, the time ancient civilization of Babylon and a business
practice called ‘bottomry’. For all practical purposes a form of marine insurance,
bottomry enabled ship owners to borrow money against their ships to pay for the trip.
With piracy rampant of high seas, traders and seafarers were reluctant to sale to other
lands for fear of their lives and goods. Bottomry gives them some semblance of
security. The arrangement was only if their ship returned did trader have to repay the
loan, along with interest, which was pegged at an above market rate for risk covered.
So, if their ship failed to make it back they did not have to repay the loan ,there by
covering some or all the loss.
ORIGIN:
With the marine rout being the bedrock of trade and commerce in those days, the
practice of bottomry evolved and spread. With the growth towns and trade in Europe,
medieval guilds (group organized on the basses of some common objective like traders)
pooled in money to protect their members from loss by fire and ship wreck, to pay
ransom if they were captured by pirates and to provide burial and support in sickness
and poverty. By the middle of 14th century, as evidences by earliest known insurance
contract (Genoa, 1347) marine insurance was common among maritime nations of
Europe.
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Lioyd’s of London the largest marine insurance today, was found in 1688, in a
coffee shop in London. Lioyd’s coffee house became preferred place for merchants,
ship owners and underwriters to transact business. Insurance develop rapidly with
growth of British commerce in 17th & 18th century, and started becoming organized,
along the way going through a period of defaults and closures.
The British bought insurance to India in 1818, replete with imperialist
prejudices. The oriental life insurance company, the first insurance company in the
country, insured only European widows. British insurers eventually begin insuring
Indian lives, but for a premium that was 15% to 20% higher than that payable by
British. It was only in 1870 that the disparity was corrected. Six Indians peeved by this
second-class treatment, set-up Bombay Mutual Life Assurance Society, and started
insuring Indian lives at the same cost of British lives. Social discrimination, in fact,
turned out to be catalyst for Indians initiative in insurance sector. In 1909, activist
Ishwar Chandra Vidyasagar founded the Hindu family annuity fund the first instant of a
pension-based investment scheme targeted at Indians.
As had happened in England earlier, a flood of new players and patchy regulation
snowballed into a crisis. Several insurers defaulted on their contractual obligations to
policyholders, citing investment losses, some even folded-up. The insurance act 1938
started control on insurance but even they failed to safeguard policyholder’s interests.
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NATIONALSATION:
Post-Independence, discontent against insurers reached a pitch. Business was
chaotic ,, foreign insurers were leaving the country, and Indian insurers, driven by
greed and business consideration, weren’t earning much credibility. The cry for
nationalizing insurance grew louder a move that insurers were, of course, opposed to.
On 19th January 1956, the life insurance business was nationalized. In one swoop,
the government snapped up 245 insurers and provident societies. Eight months later,
the life insurance corporation of India (LIC) was formed, which took over the business
of the erstwhile private insurers, and started expanding at a frenetic pace. Today, this
monolith has 2100 branch, 8lakh agents and offers a bevy of insurance investment
products. LIC marketed insurance less has a risk management tool and more has
savings instruments with tax edge. A look at LIC policy profile shows that 18% of
policies in force currently are protection plans. Insurance cum investment plans account
for 60%, with balance being pure investment plans. Still house holds embraced these
safe investment avenues, with the sum assured (or the total value of cove) increasing
from Rs.1476cr in 1`957 to Rs. 459201cr to 1998 to 1999.
Similar circumstances lead to the nationalization of non-life (general insurance).
As in life insurance per nationalization there were an inordinately largely number of
insurers many of who where notorious of clams. Non life insurance was nationalized in
1972. General Insurance Corporation was setup as a holding company, total of 107
private insurers where merged and group to form general insurance corporation four
subsidiaries.
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PRIVATISATION:
There were various reasons given by the government to nationalize the insurance
sector was to take insurance to the mass, facilitate the flow of long term funds (which
insurance companies, by virtue of the business they are in, have ready access to) into
development of infrastructure in the country, and safe guard the interest of the policy
holders. Towards this end, state insurers did develop the insurance sector, though most
experts believe that these monopolies could have done much, much more.
In the early nineties is, the government went on a reforms binge and started
loosing controls on Indian industry. In 1993 the government appointed the Malhotra
committee headed former RBI governor R.N.Malhotra, to draw up a blue print for
insurance sector reforms. The panel submitted its report a year later, recommending
privatization, backed by stiff entry guidelines and stringent regulations, so as to avoid
repeat per nationalization free for all.
The insurance regulatory and development authority (IRDA) was founded to
regulate the sector and over see the process of privatization. In 2000, the IRDA started
giving out licenses, and a year later, the first of the private players started operation.
The wheel had come full circle.
Under state control, the insurance sector, both life and non-life ,grew steadily.
Still, Indians are not adequately insured and lag behind most countries. Total insurance
penetration (insurance premium as a percentage of gross domestic product) is dismal
when compared to its economic standing. Just 2% of the population has some of life
insurance.
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Why private insurance are queuing up?
In many ways the re-entry of private insurers has marked Second Coming for the
sector. In just 3 years, the sector has under gone a make over, offering the fruits of free
market, more choice better service, and quicker settlements, tighter regulations greater
awareness. State insurers have been compelled to get their act together.
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INTRODUCTION OF LIFE INSURANCE :
History of life insurance in India:
The life insurance industry in India dates back to 1818 .when the Oriental
Life Insurance Company set up office in Kolkata in 1823, the Bombay Life Assurance
Company started operations in Mumbai, India. The Indian Life Assurance Companies
Act was passed in 1912; the Indian Insurance Companies Act 1928 followed
this .These acts allowed the Government to collect data regarding life and non life
businesses conducted by both Indian and foreign insurance companies later the 1928
act was amended and a new act the ‘Insurance Act’ was passed in 1938.
By the mid 1950s, 154 Indian insurers, 16 foreign insurers and 75 provident
societies were operating in the country. The life insurance business was concentrated in
urban areas and was confined to the higher strata of society. In 1956, the management
of these companies was taken over the Government of India LIC was formed in
September 1956 through the LIC Act 1956 with a Capital of Rs 50 million .One of the
main objectives of forming LIC was to make insurance cover available to a larger
number of people particularly to the lower segments of society . In 1972, the
Government took over management control of 106 private general insurance companies
and formed the General Insurance Corporation(GIC) over the years , LIC expanded its
network all over the country and become one of the largest corporations in India .LIC
had seven zonal offices 100divisional offices ,2,048 branch offices and army of agents
totaling 6,28,031.
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Growth in Indian insurance industry was minimal in the 1960s and 1970s
because of low sayings and the low level of literacy. In addition the insurance industry
lacked sufficient funding and infrastructure .However changes in the economy in the
1980s, such as growth in the rate of industrialization improvement in infrastructure the
capital markets increase in the savings rate and substantial capital formation resulted in
tremendous growth in the life insurance industry over the years LIC launched several
group insurance and social security schemes to enhance its reach in the rural areas.
What is life insurance?
Life insurance is a form of insurance that pays monetary proceeds upon the
death of the insured covered in the policy. Essentially , a life insurance policy is a
contract between the named insured and the insurance company wherein the insurance
company agrees to pay an agreed upon sum of money to the insured’s named
beneficiary so long as the insured’s premiums are current.
People take out life insurance policies for a number of reasons. Such
insurance provides security to family members upon the loss of a loved one for instance
if the primary wage earner dies in his or her prime the death benefit received from a
life insurance policy will assist the surviving family members in overcoming the
burden of the tragic loss . Life insurance can be purchased by individuals but is also
offered as a perk by many employers .Often times large employers and government
employers offer group life insurance at no cost the employee . Should the employee
wish to obtain additional life insurance from the employers insurance company they
can usually do so at reduced rates.
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The cost of life insurance varies depending on such factors as the insured ‘s
age health and occupation . For example the premium for a 25 year old male non-
smoker in excellent health will be far less expensive then a similar policy for a 65-year
–old male smoker .similarly a sky dive instructor would have to pay much higher
premiums for life insurance then would a librarian.
Life insurance is available in a number of different forms to fit the tastes of
the proposed insured some of the typical forms of insurance policies include whole life
variable life and term life .Term life insurance policies begin with low premiums
during the initial stages of the policy and these premiums increase steadily as the
insured grows older .There is no cash built-up in a term policy and accordingly the
death benefit will not increase.
With whole life and variable life insurance a portion of premium pays for
the insurance and the remainder serves as a tax-free investment .A whole life policy
sets a premium at the beginning of the policy and that premium does not change over
the life of the policy .This form of insurance allows for a cash of the policy or it will
simply serve to increase the death benefits in the end.
In a variable life product, the premium remains the same over the life of the
policy , and there should be a cash build-up as long as the various mutual funds
selected by the insured perform well.
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What is an insurance premium:
An insurance premium is the actual amount of money charged by insurance
companies for active coverage .An insurance premium for the same service can very
widely among insurance providers which is why experts strongly recommend getting
several quotes before committing to an insurance policy .Insurance agents or brokers
will take your basic information and calculate an insurance premium estimate based on
your answers and other factors. The lowest quoted price on an insurance premium may
be the better bargain but the level of coverage may also be lower.
The cost of an insurance premium is largely based on statistics not
necessarily on individual habits or history .A 22-year –old male seeking car insurance
for a sports car can often anticipate a higher insurance premium than a 45-year-old
women driving a mid-size sedan. Both may have excellent driving records but the
insurance company considers a younger driver in a faster car to be more at risk for
accidents. Therefore the insurance premium quotes will be noticeably different. In
general a more expensive or faster car will cost more to insure simply because owners
of those vehicles TEND to drive faster.
The same philosophy holds true for medical insurance premium costs .Non-
smokers statistically live healthier lives then smokers ,for example Construction worker
may have more serious on the job accidents than accountants . A55-year-old
lumberjack who smokes may be charged a higher health insurance premium than a 30-
year-old non-smoker working in an office conversely an insurance premium may be
reduced if the policyholder changes his or her habits and life style.
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An insurance premium is generally collected in monthly or semi-yearly
payments .If the policyholder fails to make a scheduled payment the insurance
company can choose to cancel the policy entirely. This is often referred to as a lapsed
policy .Either the customer will pay the balance of the insurance premium and become
reinstated or the policy will become null and void. Because the billing cycle can be
lengthy it is not unusual for policy holders to forget to make a payments before the
policy lapses.
An insurance premium is always in a state of flux Rates can go up or remain
stable between billing cycles .An accidents claim can dramatically changes the
insurance premium rate of the claimant especially if the accidents report show the
policy holder was at fault . Because most states now have a mandatory minimal
insurance coverage law for drivers there may be no other choice but to pay the
increased insurance premium or find another company willing to a higher risk
driver .Insurance agencies are for profit businesses , so they will make every effort to
recoup their losses after a pay-out . Paying an insurance premium may seem like a
waste of money ,but knowing your expenses will be met after an accident can bring
peace of mind .
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INDIAN
PROMOTER
FOREIGN
PROMOTER
COUNTRY INSURER WEBSITE
Bajaj Auto Allianz AG Germany Bajaj Allianz
Life Insurance
bajajallianz.co.i
n
ICICI Prudential USA ICICI
Prudential Life
Insurance
iciciprulife.com
HDFC Standard Life UK HDFC Standard
Life Insurance
hdfcinsurance.c
om
Vysya Bank ING Group Netherland
s
INGVysya Life
Insurance
ingvysyalife.com
SBI Cardif(arm of
BNP paribas)
Canada SBI Life
Insurance
sbilife.co.in
TATA American
International
Group
USA Tata-AIG Life
Insurance
tata_aig.com
Dabur India Aviva Plc Aviva Life
Insurance
avivaindia.com
Aditya Birla
Group
Sun Life Canada Birla Sun Life
Insurance
birlasunlife.com
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Literature Review:
The project report on “A study on customer awareness to determine the potential
market “HDFC Standard Life Insurance Plan” in Dharwad. I through under took the
project by the help of “HDFC Standard Life Insurance Plan” Ltd. Sales development
manager Mr. Moin Lohani
Body of the Report:
Primary data was collected by administration questionnaire of 100 customers.
The questionnaire was specially framed to meet the requirement of the survey and the
following details.
Direct contact was made with the respondents through random sample to collect
the needful information with reference to our objective as per to meet the survey
requirement.
Interview technique:
Direct personal interview was conducted throughout project using direct
structured and self administrative questionnaire.
Conclusion & Recommendation:
Analysis was based on the result of the research conducted and the
recommendations are based on the analysis.
Limitation :
The major limitation of the project was time frame.
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STATEMENT OF THE PROBLEM
“A study on customer awareness to determine the potential market of
HDFC Standard Life Insurance Products and plans”.
The main core problem in the project is to know weather the people of Dharwad
city is fully aware of “HDFC Standard Life Insurance Plan”
Purpose of the study:
The study was undertaken to gather information from the respondents
regarding awareness Unit-Linked Youngster plan and the purpose of the study is to
know how many people are aware of “HDFC Standard Life Insurance Plan”
Scope of the study:
The study will help the company to know the awareness of “HDFC
Standard Life Insurance Plan” in Dharwad city.
The study will help the company to know the customer profile.
The company can find out where their competitors stand.
The reason for confining the scope of the research in Dharwad were .
1) One of the fast growing city in educational field in Karnataka and represents
the more scope to the insurance companies.
2) It is also commercial city in the Business field.
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Objectives:
1. To study the awareness level of “HDFC Standard Life Insurance Plan”.
2. To find factor influencing financial planning.
3. To find potential market for “HDFC Standard Life Insurance Plan”
4. To find vital communication media.
RESEARCH METHODOLOGY
Data source: Primary data (field survey)
Area of Research: Dharwad city.
Research instrument: Questionnaire.
Sample Plan: Personal Interview.
Sample Unit: Businessman, Job holders, etc.
Sampling method: Non probability method, Random sampling method.
Sample Size: 50 respondents.
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Organizational Profile:
HDFC (Housing Development Finance Corporation Ltd.)
Founded in 1977, HDFC is today the market leader in housing finance in India
and extended financial assistance for more than 19 lacks homes.
HDFC has 120 offices in India presently. It also has one international office in
Dubai and service associate in Bahrain, Kuwait, Qatar, Saudi Arabia and sultanate of
Oman.
HDFC’s asset based amount of over Rs 21450crore. Its financial strength is
reflected in highest safety rating of FAAA and MAAA awarded by CRISIL ICRA two
of India’s leading credit rating agencies respectively for the last 7 years consequently.
It has a depositor based of over 13 lacks depositors and deposits agent face of over
50000.
Of the total deposit of 82%are sourced from individual and trust depositors,
which demonstrate the tremendous confidence that retails investor, have in the
company.
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HDFC promoted companies have emerged to to meet the investor and
customers needs.
HDFC bank for commercial banking HDFC mutual fund of mutual fund of
products.
HDFC standard life insurance company for life insurance and pension plan
and product and HDFC Chubb for general insurance product.
Being an institution that is strongly committed to the highest standard of
quality and excellence , HDFC has own several accolades in the past few years one
such award is “Ramakrishna Bajaj National Quality Award” for the year 1999.this
award was instituted to award reorganization to Indian companies for business
excellence and quality achievements. HDFC is the only Company so far to receive this
award in the service category.
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Standard Life Assurance Company (SLAC)
Founded in 1825, Standard life has been at the fore front of the U.K. Insurance
Industry for 177 years by combining sound financial judgment with integrity and
reliability. The largest mutual life company in Europe, it has operations in the U.K,
Ireland, Spain, Germany, Austria and Canada with representative offices in Hong Kong
and Chaina.
One of its most recent successes was the launch of standard life bank on 1st
January 1998. The introduction of its innovative mortgage product in January 1999 had
an immediate impact on the U.K. market, accounting for 11% of the all new lending
within the first operational year. The current deposite base of the bank is U.S. $ 7.1 Bn.
Standard life has total assets of U.S.$ 121 Bn and the new premium income last
year of U.S.$ 9.2 Bn. Its U.K. investment portfolio accounts for approximately 2% of
all shares listed in the London Stock Exchange.
It is one of the few insurance companies in the world to receive AAA rating
from two of the leading International Credit Rating Agencies, Moody’s And Standard
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and Poor’s. The letter described standard life’s ability to meet its claims obligations of
overwhelming under a variety of economic conditions.
Not surprisingly, standard life is rated as one of the strongest companies in the
world, in financial terms.
The quality and values standard life brings to this venture are immense. The
companies reputation in the U.K. market remains unrivalled. Besides being voted
‘Company of the year’ for overall service, for the third consecutive year, standard life
was recently voted ‘Company of the Decade’ by independent brokers.
Commissions
The rewards of selling insurance are the lucrative.
The limits on commission as provided in the Insurance Act 1938 are as under:
Type of Policy Commission Limits
Immediate Annuity 2% of premium
Deferred Annuity
(single premium)
2% of premium
Deferred Annuity
(regular premium)
7.5 % of the first year’s premium
2% of each renewal premium
All other Cases
(Endowment, Money-back, etc.)
A maximum of 40 % of the first
year’s premium
A maximum of 7.5 % of the
second year’s premium
A maximum of 5 % of the 4th & 5th
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year’s premium
Thereafter, 5% of the renewal
premium
Total commission payable in the
first five years cannot exceed 60 %
of the annual premium payable on
the policy.
Role of the HDFC Standard Life Agent-The consultant
The Company’s agent would be a professional sales person & would be given the
designation of a “consultant” by the Company.
The consultant would act as a financial advisor to the customer. He/She would:
Analyze the customer financial requirements
Help them plan their goals &
Recommend appropriate solution, so that the customer is able to meet his /her
financial objectives in the most optimum manner. He/She shall provide support
to customers on an ongoing basis.
The Company would also support the consultant by providing the required
training & information so that he/she is able to provide the best service to the
customers.
Thus, the Company’s Consultant would have a far wider role to play than “the
typical insurance agent.”
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Why should be a consultant with HDFC standard life insurance Company Ltd.?
HDFC standard life are companies with tremendous financial strength as
endorsed by credit rating agencies. Both enjoy an excellent reputation in terms
of goodwill and efficient customer service.
Sales training imparted to our consultants will be based on the finest
international practices.
Promote and effective communication on marketing campaigns, new products.
The customer service process will be highly leveraged on technology, whether
it is getting a new policy on the books, paying your commission or setting a
claim.
New business will be processed through a local branch network.
Our objective is to get policies on our books and disburse.
Commission paid to you as quickly as possible.
A range of comparative products backed by quick and efficient service supported
by highly trained and customer focused administration of team. The idea is to
designe all our process around the customers want, when they want it and where
tyeu want it.
Additional recognition for top performers.
Published service turnaround times, which will be used to measures our performance.
Customer satisfaction surveys will be conducted proactively and the company will
the act on the results.
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Scope of Insurance Business in India
The malhotra committee estimated that the insurance penetration in India is to
extent of about 25% of the insurable population.
As of 1999-2000, LIC’s insurance premium income was approximately
rs.32000 crore. It is observed that currently LIC has about 10 crore policies in force,
which contribute a premium of about 6% of GDS (Grosss Domestic Savings ) of
households in India.
Based on a report by the confederation of Indian Industries (CII), it is
anticipated that this figure of 10 crore policies inforce is likely to double in the next
decade.by the year 2010, the premium income is expected to account for 18% of the
GDS,amounting to Rs. 5,12,000 crore.
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90
100
120
135
150
165
180
0
20
40
60
80
100
120
140
160
180
1years
Number of policies in force
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6
7
9
11
12
15
19
0
2
4
6
8
10
12
14
16
18
20
Life premeum as a proportion of GDS
Series1
About us
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance solutions.
It is a joint venture between Housing Development Finance Corporation Limited
(HDFC Ltd.), India’s leading housing finance institution and The Standard Life
Assurance Company, a leading provider of financial services from the United
Kingdom. Both the promoters are well known for their ethical dealings and financial
strength and are thus committed to being a long-term player in the life insurance
industry – all important factors to consider when choosing your insurer.
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Our key strengths Financial Expertise As a joint venture of leading
financial services groups, HDFC Standard Life has the financial
expertise required to manage your long-term investments safely and
efficiently.
RangeofSolutions
We have a range of individual and group solutions, which can be easily customized to
specific needs. Our group solutions have been designed to offer you complete
flexibility combined with a low charging structure.
TrackRecordsofar
Our cumulative premium income, including the first year premiums and renewal
premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.
We have covered over 1.6 million individuals out of which over 5,00,000 lives have
been covered through our group business tie-ups.
Customer services
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We at HDFC Standard Life are committed to maintaining the highest level of
customer service. Interacting with you via this website is an extension of this
commitment.
We have designed the ‘Customer Service’ section keeping in mind all the
information you may want to seek regarding procedures such as paying your premium,
various policy servicing options, processing a claim and so on. We have also provided
relevant forms that can be downloaded easily for your use.
Premium Payment
This section gives you all the details that you may require to pay your
premium and make it a hassle free experience. Along with various premium payment
options currently available to you, we have also drawn up a of details that you will need
in case you are paying through cheque or demanddraft
6 Easy Ways to pay your premium:
Lapsation & Revival
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Your renewal premium should reach us by the due date specified in the
premium reminders. It is always advisable to pay on time so that your valuable policy
benefits can continue.
However we do understand that there may be times when you may not be able
to pay the renewal premium by the due date. Therefore we allow for some additional
number of days from the due date, which is specified in your policy document, to help
you make your premium payment.
Make the policy “Paid up” – if otherwise
Either of these may mean loss/reduction of valuable benefits of your policy.
Please refer to your policy document for details.
We do, however, allow you to restore the original benefits for a Lapsed or a
Paid up policy under certain conditions. Here is what you would need to do:
Claims
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In case we still don’t receive your premium payments by the end of the above
mentioned period, we would do either one of the following:
“Lapse” the policy – if you haven’t paid premiums for the first 3 policy years
29
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We at HDFC Standard Life realize that not everyone has the same kind of needs.
Keeping this in mind, we have a varied range of Products that you can choose from to suit all
your needs. These will help secure your future as well as the future of your family.
Protection Plans
You can protect your family against the loss of your income or the burden of a loan in
the event of your unfortunate demise, disability or sickness. These plans offer valuable
peace of mind at a small price.
Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance
Plan.
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long term investment
needs. We provide you with attractive long term returns through regular bonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even after retirement.
Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked
On survival of the life assured to maturity, a benefit of Rs 200 will be paid.
Age Limit : 18 to 50 years
Super Bachat Yojana
Super Bachat Yojana combines the benefits of life protection as well as super
savings. It helps you save money to meet the expected long term needs. What’s
more, it lets you participate in the surplus profits of the company!
Benefits on Maturity
Sum Assured + Reversionary Bonus + Interim and Terminal Bonus
(Bonuses will be declared normally as on 31st March)
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Benefits On Death
During the first year a basic benefit of 80% of premiums paid and after the first
year lesser of
basic sum assured +reversionary bonuses paid and
total premiums paid to date +interest @ 6 % per annum
Tax Benefits
Premiums paid are eligible for tax relief under Section 80 C of the Income Tax
Act, 1961
Any sum received is exempt under Section 10[10D] of the Income Tax Act,
1961
Age and Term Limits
Minimum Age at Entry 18 years
Maximum Age at Entry 60 years
Maximum Age at Maturity 75 years
Minimum Term 10 years
Maximum Term 30 years
Minimum Premium & Policy Fee
Option Premium Fee
Annual 1800 150
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Half Yearly 1000 80
Quarterly 550 45
Documents Required for Claim Payments
Fully completed Claim Form
Original Policy document
Original Death Registration Certificate
Original Certificate of Doctor certifying death
Original Certificate of cremation
There are NO exclusions under this product
Development Insurance Plan
Development Insurance plan is an insurance plan which provides life cover to members
of a Development Agency for a term of one year. On the death of any member of the
group insured during the year of cover, a lump sum is paid to that member’s beneficiaries
to help meet some of the immediate financial needs following their loss.
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Eligibility
Members of the development agency and their spouses with:
- Minimum age at the start of the policy 18 years last birthday
- Maximum age at the start of policy 50 years last birthday
Employees of the Development Agency are not eligible to join the group. The group to
be covered is only eligible if it contains more than 500 members.
Premium Payments
The premium to be paid will be quoted per member in the group and will be the
same for all members of the group.
The premium can only be paid by the Development Agency as a single lump sum
that includes all premiums for the group to be covered. Cover will not start until the
premium and all the member information in our specified format has been received.
The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.
.
Benefits
On the death of each member covered by the policy during the year of cover a lump
sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where
the death is as a result of an accident, an additional lump sum will be paid equal to
half the sum assured. There are no benefits paid at the end of the year of cover and
there is no surrender value available at any time.
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The role of the Development Agency
Due to the nature of the groups covered, HDFC Standard Life will be passing certain
administrative tasks onto the Development Agency. By passing on these tasks the
premium charged can be lower. These tasks would include:
Submission of member data in a specified computer format
Collection of premiums from group members
Recording changes in the details of group members
Disbursement of claim payments and the mortality rebate (if any) to group members
These tasks would be in addition to the usual duties of a policyholder such as:
Payment of premiums
Reporting of claims
Keeping policy holder information up to date
Training and support will be available to give guidance on how to complete the tasks
appropriately.
Since these additional tasks will impose a burden on the Development Agency, the
Development Agency may charge a Rs. 10 administration fee to their members.
Prohibition of rebates
Section 41 of the Insurance Act, 1938 states
No person shall allow or offer to allow, either directly or indirectly, as an inducement
to any person to take out or renew or continue an insurance in respect of any kind of
risk relating to lives or property in India, any rebate of the whole or part of the
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commission payable or any rebate of the premium shown on the policy, nor shall any
person taking out or renewing or continuing a policy accept any rebate, except such
rebate as may be allowed in accordance with the published prospectus or tables of the
insurer
If any person fails to comply with sub regulation (previous point) above, he shall be
liable to payment of a fine which may extend to rupees five hundred
Tax Benefits
INCOME TAX
SECTION
GROSS
ANNUAL
SALARY
HOW MUCH TAX
CAN YOU SAVE?
HDFC STANDARD LIFE
PLANS
Sec. 80CAcross All
income Slabs.
Up to Rs. 33,660
saved on investment
of
Rs. 1, 00,000.
All the life insurance plans.
Sec. 80 CCCAcross all income
slabs.
Up to Rs. 33,660
saved on Investment
of
Rs.1, 00,000.
All the pension plans.
Sec. 80 D* Across all income
slabs.
Unto Rs. 3,366 saved
on Investment of
All the health insurance riders
available with the conventional
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Rs. 10,000. plans.
TOTAL
SAVINGS
POSSIBLE **
Rs. 37,026
Rs. 33,660 under Sec. 80C and under Sec. 80 CCC , Rs.3,366 under Sec. 80
D, calculated for a male with gross annual income not exceeding Rs.
10,00,000.
Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free,
subject to the conditions laid down therein.
* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver
of Premium Benefit.
** These calculations are illustrative and based on our understanding of current tax legislations.
Please contact your tax consultant for exact calculation of your tax liabilities.
Knowledge Centre
Our Knowledge Centre is your personal resource for information that can help you
understand the basics of insurance and help you make an informed decision about
buying a policy.
This section includes details on insurance terms and concepts, helps you analyze plans
for your various needs and lends meaning to some of the insurance jargon that you may
encounter.
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HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance solutions.
It is a joint venture between Housing Development Finance Corporation Limited
(HDFC Ltd.), India’s leading housing finance institution and The Standard Life
Assurance Company, a leading provider of financial services from the United
Kingdom. Both the promoters are well known for their ethical dealings and financial
strength and are thus committed to being a long-term player in the life insurance
industry – all important factors to consider when choosing your insurer.
Our key strengths
FinancialExpertise
As a joint venture of leading financial services groups, HDFC Standard Life has the
financial expertise required to manage your long-term investments safely and
efficiently.
RangeofSolutions
We have a range of individual and group solutions, which can be easily customized to
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specific needs. Our group solutions have been designed to offer you complete
flexibility combined with a low charging structure.
TrackRecordsofar
our cumulative premium income, including the first year premiums and renewal
premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.
We have covered over 1.6 million individuals out of which over 5,00,000 lives have
been covered through our group business tie-ups.
carriers
HDFC's finest investment is in its Human Resources. It draws its personnel from
many disciplines. They are the building blocks on which the company's performance
& productivity is based". Mr. H T Parekh Founder-Chairman, HDFC Ltd.
We welcome you to the family of HDFC Standard Life Insurance Company Ltd.
This section will help you identify various career opportunities with us, give you an
insight into our work culture and also our various learning and development initiatives
amongst host of other information.
HDFC Standard Life is one of the leading life insurance companies having a track
record of declaring bonuses every year since inception. We attribute this success to our
people, who are our most important asset. We believe they are a key facet of the
company and it is their contribution that has enabled us to achieve our current status.
Since they deserve the best, our efforts have been to provide them with the best
environment, best culture and best development opportunities possible.
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Join the Winning Team at HDFC SL
In our quest to be a competitive player in the insurance space, we are keen to
partner with talented, high performing people. We pride our self for a rich
talent base that can successfully propel the company to even greater heights
in an increasingly competitive platform. So if you think, you have it in you to
emerge victorious in this challenging environment, join us. You can in order
to send us your CV.
Current Opportunities
Accounts & Finance
Group Sales
Human Resource & Administration
Inferior & Technology
Marketing
Operations
Sales-Retail
Sales-Alternate Channel
Underwriting
Training
Process Management
Agency
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Legal & Compliance
Medical
Group Companies
Some of our valued bancassurance partners.
16th May 2006
HDFC Standard Life records impressive growth
Premium Income grows by 112%
HDFC Standard Life has recorded a strong year on year growth of 112% for the
period April-March 2005- 06, in comparison with the same period 2004-05, with
new business first year premium of Rs.1029 corers. The growth achieved by the
company was considerably higher than the private sector industry average of 84%
for 2005-06. In terms of effective premium income (EPI), which gives a 10% value
to a Single Premium policy, and is an internationally accepted indicator of an
insurance company’s performance, the EPI grew by 103% from Rs.436 Cr. to Rs.
887Cr.
HDFC Standard Life’s growth in new business is a result of number of lives
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insured as well as, an increase in the average premium. For the individual business,
volume measured by the number of lives insured, witnessed a 32% growth. The
average premium also increased by 62% from Rs.17, 000 in 2004-05 to Rs. 27,500
in 2005-06.
Commenting on the huge potential that exists in the Indian market today, Mr.
Deepak Satwalekar, Managing Director & CEO of HDFC Standard Life
emphasized, “The GDP has been growing over 8% per annum and 47% of all
savings are now in financial saving forms; 16% of savings is in the form of
insurance premiums and another 16% is in Provident Fund and Pensions i.e., 32% of
India’s financial savings of the household sector are available to be tapped.
Therefore, growth for the private life insurance industry is inevitable and HDFC
Standard Life is confident of maintaining a steady growth pace.”
Highlighting HDFC Standard Life’s differentiators, Mr. Deepak Satwalekar said,
“Our Company has the most competitive fund management charge, which is the
lowest in equity based products. Our fund management charge is as low as 0.8% per
annum, the key to enhancing long-term returns. Our other differentiator is that we
believe in offering life insurance solutions to customers based clearly on their needs,
and ‘Disha’ is the way it is done.”
‘Disha’ is a Professional Sales Skills Training Program. The delegates in this
program are introduced to a ‘Need-based’ selling approach, which can cater to all
our clients opting for life insurance solutions. ‘Disha’ is aimed at providing a good
service to the client and building long-term relationships.
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Contribution to the individual business premium income by the different channels of
distribution also changed significantly, compared to last year. The Corporate
Agency and Banc assurance channel has grown tremendously and currently
accounts for 43% of the company’s business. Speaking on this, Mr. Satwalekar said,
“The strategy to concentrate on activating a limited number of bancasurance
partners rather than going in for signing up a large number of banks in the early
years, also paid off. Our key to achieving banc assurance success is our belief in a
partnership approach, customized product offerings, highly ethical dealings and
providing good “value to our partners and their customers.”
HDFC Standard Life’s offerings of Employee Benefit Solutions, to the corporate
sector, through Group Business, have met with increased success with year on year
growth of 174%. Commenting on the strong growth of HDFC SL’s Group Business,
Mr. Satwalekar said, “Our excellent fund performance on retirement products and
increase in our client base with 150 clients cutting across a spectrum of industries
spanning from multinationals to PSUs to the older business houses, have been the
highlights of the year.”
Ongoing training for conventional products and specialized training for unit linked
products for more than 33,000 of our financial consultants has also helped its
customers choose the products best suited for their need for protection, savings,
investments and pensions. HDFC Standard Life is the only company requiring its
sales force to undergo specific training in ULIPs before they are permitted to sell the
same. There has been a huge jump in the number of its Financial Consultants who
have qualified to become members of the prestigious Million Dollar Round Table
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(MDRT). From 124 members as on 31st December 2004, the number has increased
to 318 members as on 31st December 2005.
HDFC Standard Life continues to have one of the widest reaches amongst new
insurance companies. The Company’s geographical presence has also increased and
covers 169 offices across the country.
Table Showcasing Financial Results:
Parameters
Apr-Mar
2004-05
(Rs. Cr.)
Apr-Mar
2005-06
(Rs. Cr.)
% Growth
Total received premium 668.40 1532.21 129.23
i. New Business 486.15 1028.94 111.65
ii. Renewal 182.25 503.27 176.14
Effective Premium
Income (Total)
436.08 887.30 103.47
Group Business
Premium (EPI)
49.40 135.15 173.58
News
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16th May 2005
HDFC Standard Life declares results for FY 2004-05
Premium Income grows by 132%
HDFC Standard Life Insurance Company Limited declared its annual results for the
financial year ending March 31st, 2005. The company generated New Business Premium
Income of Rs. 486 Crore in 2004-05 registering a year-on-year growth of 132%. The
growth was primarily driven by the success of the company's initiative on structured sales
processes based on customer needs and their assessments.
Mr. Deepak Satwalekar, Managing Director & CEO, HDFC Standard Life attributed this
growth to the quality of life insurance solutions offered by the company. Speaking on the
occasion he said, "We are equipped to offer some of the best solutions to our customers
given our wide range of products and the quality of advice offered by our Financial
Consultants and Corporate Consultants. Training was one of the biggest initiatives we had
undertaken last year. Clearly, this initiative has started giving us good results."
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Highlights of Financial Year 2004-05
New Business Premium Income up by 132% to Rs. 486 Crores. Total Premium Income
of Rs.687 Crores as against Rs. 298 Crores in FY 03-04.
Alternate Channels including banc assurance have recorded an impressive growth of over
400% to contribute 37% to the Effective Premium Income (EPI).
Group business increased to Rs. 32 Crores on EPI basis.
The average premium doubled to Rs 17,000
Company products and services available in 444 locations across the country
HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium
Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy
and is an internationally accepted indicator of an insurance company's performance. While
the company recorded New Business Premium Income of Rs. 486 Crores, the EPI figure
was lower at Rs. 436 Crores. The total premium income (including renewal premium)
grew by 130% to touch a figure of Rs. 687 Crores. High levels of persistency have resulted
in a higher level of renewal premiums. High persistency is an important contributor to
future profitability. The cumulative sum assured for all policies issued up to March 31,
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2005 crossed Rs. 30,000 Crores.
In the first full year of offering unit linked products, the structured sales process adopted
by the company has paid rich dividends. HDFC Standard Life offers, both, life insurance
policies as well as pension products on a unit linked platform. Unit linked products
accounted for over 50% of the new business premium. Given the nature of the unit linked
product, the company provided specialized training to a limited number of its Financial
Consultants who were then tested for their understanding of the products and separately
licensed. HDFC Standard Life is unique in stipulating this requirement for its sales force.
The company's national relationships with HDFC Limited, HDFC Bank, Union Bank of
India, Indian Bank and Saraswat Bank have also helped it reach out to a larger number of
customers across the country. The alternate channel business grew by over 400% to
contribute 37% of the premium income. The company plans to further strengthen these
relationships through the introduction of products specially designed for this channel.
HDFC Standard Life continues to have one of the widest reaches among new insurance
companies. The company doubled the number of offices to 104 across the country.
Through these offices, the company today services customer needs in over 440 towns. The
company also increased its depth in existing markets by increasing its Financial Consultant
strength from 17,000 as on 31st March 2004 to over 23,000 as on 31st March 2005. There
has been a huge jump, of over 220%, in the number of its Financial Consultants who have
qualified to become members of the prestigious Million Dollar Round Table (MDRT).
From 38 members as on 31st December 2003, the number has increased to 124 members as
on 31st December 2004.
During the year, the company expanded its portfolio of products by launching plans to
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cover Superannuation and Leave Encashment needs, thereby offering a wide range of
employee benefit solutions to its corporate clients. Consequently, HDFC Standard Life's
Group Business saw a huge growth over the previous financial year. The New Business
Premium grew to Rs. 49 Crore to cover over 200,000 lives for a sum assured of over
Rs.10,000 Crores.
Given its parentage and its financial expertise, the company is confident of offering good
long-term returns to its policyholders. Speaking on this Mr. Satwalekar said, "Our
investment philosophy and cost consciousness together will help us in providing good long
term growth to policyholders on their investments with us. This is evident in the
performance of our equity based unit linked funds which have outperformed most indices
over the last one year".
Accident Benefit
An add-on with a life policy. It compensates a policyholder in the event of
death or injury by accident
Annuity
An investment option that makes a series of regular payments to an individual in
exchange for a premium or a series of premia.
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Appreciate
To grow in value
Asset
Everything owned or due to a person
Asset allocation
How your investments are spread across various asset classes
Bond
It is like an IOU. By buying a bond you loan money to a company, a municipality,
state or the Central Government
Bonus
The amount paid as return in a ‘with-profit’ policy. The bonus, expressed as a
percentage of the sum assured, is generally declared every year. The amount is
linked to the profits earned by the insurer. Depending on the time of withdrawal,
there are two kinds of bonuses – reversionary and cash. A reversionary bonus can
be encashed only on maturity of the policy; a cash bonus can be withdrawn when
declared
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Budget
It is a tool used to monitor and control expenditures and purchases.
Capital gains
Profit earned from the sale of stocks, mutual fund units and real estate. Long-term
capital gains arise from assets owned for more than a year while short-term capital
gains are made from assets owned for less than a year.
Compound Interest
Interest computed on principal plus interest accrued during the previous periods of
the investment
Corpus
The amount of money available with a scheme for investing. If already invested,
the corpus is the current value of the scheme’s portfolio.
Cost averaging
A strategy that involves investing a fixed amount of money in an asset class like
equity, so that the average cost of acquiring the asset in the long-term is much
lower than that in the short-term.
Cover
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Another word for insurance; it also refers to the amount of insurance.
Critical illness rider
A rider that provides a policyholder financial protection in the event of a critical
illness
Death benefit
The amount payable to the nominee on death of the policyholder. The amount paid
is the sum assured plus benefits applicable (if any) less outstanding loans.
Declining term cover
A type of pure life protection insurance policy where the premia remain the same
while the life coverage keeps declining. They are typically used to cover the life of
a person with a pending loan repayment, like home loan.
Deferred annuity
An annuity plan where the first annuity payment becomes payable after a chosen
period that exceeds one year.
Discretionary expenses
These are expenses like entertainment, dining out and non-compulsory travel that
you can reduce at will.
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Disability / dismemberment benefit rider
A rider that provides for additional cover in the event of disability, or
dismemberment, of the policy holder due to an accident
Dividends
Payments made by companies and mutual funds to shareholders and unit-holders,
respectively, from the income generated by it.
Down payment
The money that a home buyer has to contribute, often at least 15 per cent of the
value of the house, when he is taking a home loan.
Dividend yield
The percentage of dividend paid on a share to the value of the share.
Emergency fund
The money, in the form of liquid investments in bank savings accounts, two-in-one
accounts and liquid funds, you need, to take care of emergencies like a job loss that
your insurance policies wouldn’t cover
Endowment plans
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An insurance plan that provides a policyholder risk cover and some return on
investment. Usually suitable for the risk-averse
Effective rate of interest
The true rate as against the nominal rate, which may be incorrect.
Estate
All assets of a person, both financial-like stocks, bonds, mutual funds and fixed
deposits and physical-like a house and gold that can be passed on to his heirs.
Estate planning
A financial plan to ensure the transfer of all your assets-both financial, such as
fixed deposits and stocks and physical, such as home, after your death to your heirs
without any delay or loss.
Exclusions
Risks and circumstances not covered by a policy. No claim will be entertained in
case of losses arising out of such situations
ELSS (equity-linked savings schemes)
Diversified equity funds that additionally offer a tax deduction under Section 80C
on investments up to Rs.1 lack.
EMI (equated monthly installment)
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A borrower must make this payment each month towards repayment of interest and
principal of a loan taken by him.
Equity
The actual ownership interest in a specific asset or group of assets
Financial planning
It covers the essential elements of a person’s financial affairs and is aimed at
achieving a person’s financial goals.
Fixed deposit
Funds placed on deposit in a bank, company or post office at a fixed rate of
interest.
Fixed-income investment
Any investment that provides a stated percentage of value, say 6 per cent, on the
invested amount.
Fixed rate loan
Interest rate charged on a loan that remains fixed during the tenure of the loan
Floating rate loan
Interest rate charged on a loan benchmarked to a particular lending rate. The rate
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gets adjusted during the tenure of the loan as the benchmark interest rate changes.
Group Insurance
An insurance policy taken out by employers to provide life cover to their
employees. Usually the cheapest form of insurance.
Guaranteed additions
The amount paid as returns in assured-return insurance plans. Guaranteed additions
are expressed as a percentage of the sum assured, with the amount payable being
stated by the insurer at the outset.
Hospital cash benefit rider
A rider that provides cover for hospitalization
Immediate annuity
An annuity that starts payments immediately after, or soon after, the first premium
is paid
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Index fund
A scheme whose portfolio mirrors the progress of a particular index, both in terms
of composition and individual stock weight ages. It’s a passive investment option,
as a fund’s performance will mimic the index concerned, barring a minor tracking
error.
Insured
The policyholder
Insurer
The insurance company
Investments
Assets like fixed deposits, post office savings, bonds and stocks that are acquired
for the purpose of earning a return
Investment risks
The risks that your investments face. These include the risk of interest rate
fluctuations impacting your debt investments or the prices of equities going down.
Level term cover rider
A rider that increases the life cover in non-term plans, up to a maximum of the sum
assured on the base policy. The rider offers death benefit along, and serves the need
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for extra protection for a specified time period.
Liabilities
Monies owed, debt and other financial obligations of a person
Life annuity
An annuity that makes regular income payments till the policyholder is alive. On
the policyholder’s death, all income payments cease and there are no beneficiary
benefits.
Liquidity
The quality of assets that can be easily and quickly converted into cash without
any, or significant, loss in value.
Loyalty additions
Additional benefits (other than guaranteed additions/bonus) paid to policyholders
on maturity of certain investment-based insurance plans for staying on through its
term. Loyalty additions are paid as a percentage of the sum assured, with the
amount depending on the insurer’s financial performance.
Lock-in period
The period of time for which investments made in an investment option cannot be
withdrawn.
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Marginal tax rate
The highest tax rate applicable to a person for paying income tax.
Market value
The monetary value an asset will fetch if sold in the market today.
Maturity date
The date on which a policy term or fixed-income investment like fixed deposit or
bond comes to an end.
Money-back plans
A variant of endowment plans in which survival benefits are disbursed through the
policy term, rather than in a lump sum at the end.
Net asset value (NAV)
The simplest measure of how a scheme is performing, it tells how much each unit
of it is worth at any point in time. A scheme’s NAV is its net assets (the market
value of the financial securities it owns minus whatever it owes) divided by the
number of units it has issued.
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Nominee
The person(s) nominated by the policyholder to receive the policy benefits in the
event of his death.
Participative plans
See ‘with-profit’ policy
Pension Plan
Investment products offered by insurance companies and mutual funds that
required the investor to make defined contributions over regular periods, mostly
every year. The contributions are invested according to a pre-decided investment
plan. At retirement, the accumulation is paid out through regular pay-out options.
Periodic payment investments
Investment options that have payouts in fixed intervals. For example, money-back
life insurance policies.
Permanent partial disability
Permanent loss of any body part, one eye, one limb or one finger or a toe, or
injuries that render the insured in capable of earning an income from the date of the
accident onwards from any work, occupation or profession. While the loss of the
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body part may be permanent, its effects on the insured’s life are partial.
Permanent total disability
Permanent loss of use of any two limbs, or permanent and complete loss of sight in
both eyes and any other injury that renders the insured incapable of earning an
income. Cover this risk to secure your wealth.
Policy
The legal document issued by an insurance company to a policyholder that states
the terms and conditions of an insurance contract.
Policyholder
The person who buys an insurance policy. Also referred to as the ‘insured’.
Policy term
The period for which an insurance policy provides cover
Post office schemes
Also known as Small Savings schemes, they are offered at post offices and carry
the highest returns among fixed income instruments. Government backing makes
these instruments like Public Provident Fund (PPF), National Savings Certificate
(NSC), Kisan Vikas Patra (KVP) and Post Office Monthly Income Scheme
(POMIS) risk-free
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Pre-payment
Partial or full repayment of the loan before the end of the tenure.
Premium
The amount paid by the insured to the insurer to buy cover
Recurring deposit
This is offered both in post office and banks where you are required to contribute a
fixed amount ever month. It is a great tool for making small and regular savings.
Rest
The frequency at which interest is calculated on the outstanding loan balance. The
more regularly the interest is calculated on the outstanding loan amount, the lesser
the interest costs and cheaper the loan. For example, monthly rests would make a
loan with the same rate cheaper than a quarterly rest.
Revolving credit
A pre-established credit line, typically in a credit card, against which a person may
borrow to make purchases.
Riders
Additional covers that can be added to a life policy, for a cost
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Small savings
See post office schemes
Sum assured
The amount of cover taken under a life insurance policy, it is the minimum amount
that will be paid on death of the policyholder during the policy term.
Surrender value
The amount payable by the insurer to the owner of an investment-based plan in
case he opts to terminate the policy after three years (the mandatory lock-in period)
but before its maturity date. The surrender value will be the premia paid till date
minus surrender charges and any outstanding loans due.
Survival benefits
The amount payable to a policyholder under an investment-based plan if he
survives the policy term. Typically, it is the sum assured plus returns (guaranteed
additions / bonus) accrued.
Temporary total disability
An injury that results from an accident and renders a person immobile or affects his
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earning capacity temporarily. For instance, a fracture in the arm or leg that keeps
you from work: you may be mobile but the injury may prevent you from working.
Term plans
A plan that provides life cover for a specified period of time, but no return on the
premia paid
Terminal bonus
A one-time bonus paid on maturity of a with-profit plan
Vesting date
Generally used in the context of pension plans and children’s plans offered by life
insurance companies. It is a date signifying a milestone in a policy. In pension
plans, it is the date from which the policyholder starts receiving pension. In
children’s plans, it is the date from which a child becomes the owner of a policy
taken out in his name (generally, around his 18th birthday).
Waiver of premium rider
A rider that waives the premia payable on the base policy and other riders in certain
circumstances mostly related to death, disability or injury. An important feature
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especially for investment products such as children’s policies.
Wealth
The difference between the values of what you own (assets) and what you owe
(liabilities).
Will
A document that designates the assets of a person-both financial and physical- to
various family members and other heirs.
With-profit policy
An insurance plan in which the policyholder gets a share of the insurer’s profits ( in
the form of guaranteed additions / bonus). Along with the sum assured.
Without-profit policy
An insurance plan in which the policyholder does not get any share of the insurer’s
profits
Whole-life plans
Class of life insurance policies that provide cover through your lifetime.
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BOARD OF DIRECTORS
Mr.Deepak S Parekh:
Is the chairmen of the company. He is also the Executive chairmen of
Housing Development Finance Corporation Limited (HDFC Limited). He joined
HDFC Limited in a senior management posision in 1978. he was inducted as a
whole time director of HDFC Limited in 1985 and was appointed as its Executive
Chairmen in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh
is the Fellow of the Institute of Chartered Accountants (England & Wales)
Mr. Keki M Mistry:
Joined the board of directors of the company in December 2000. He is
currently the Managing Director of HDFC Ltd. He joined HDFC Ltd in 1981 and
become a Executive Director in 1993. He was appointed as its Managing Director
in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered
Accountants of India and a member of the Michigan Association of Certified
Public Accountants.
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Mr. Alexander M Crombie:
Joined the Board of Directors of the company in April, 2002. He has been
with the Standard Life Group for 34 years holding various senior Management
Positions. He was appointed as the Group Chief Executive of the Standard Life
Investment Limited. Mr. Alexander M Crombie is the Fellow of the Faculty of
Actuaries in Scotland.
Ms. Marcia D Campbell:
Is currently Group Operations Director in the Standard Life Assurance
Company and is responsible for Group Operations, Asia Pacific Development
Strategy & Planning Corporate Responsibilities and Shared Service Centre. Ms.
Marcia D Campbell joined the Board of Directors in November 2005.
Mr. Keith N Skeoch:
Is currently the Chief Executive of the Standard Life Investment Limited
and is responsible for overseeing Investment Process and Chief Executive Officer
Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co.
holding the Positions of UK Economist, Chief Economist, Executive Director,
Director of Control and Strategy HSBS Securities and Managing Director
International Equities. He was also responsible for Economic and Investment
Strategy Research Produced on a worldwide basis. Mr. Keith N Skeoch joined the
Board of the Directors in November 2005.
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Mr. G N Bajpai:
Was the former chairman of the Life Assurance company of India and
Securities of Exchange Board of India. Mr. G N Bajpai retired from Life
Assurance company of India with more than 3 decades of experience and further
served as SEBI as its Chairmen of for 3 years, during which time he had
strengthened the compliance enforcement in SEBI.
Mr. Gautam R Divan:
Is a practicing Chartered Accountant and is a Fellow of the Institute of
Chartered Accountants of India. Mr. Gautam R Divan was the chairmen and
managing committee Member of Midsnell Group international, an international
Association of Independent Accounting Firms and has authored several papers of
professional interest.
Mr. Ranjan Pant
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Is a global Management Consultant advising CEO/Board of Strategy and
Change Management. Mr. Ranjan Pant, until 2002 was a partner & Vice President at
a Bain & Company, Inc.,Boston,where he led the worldwide Utility Practice. He was
also director, Corporate Business Development at General Electric headquarters in
Fairfield, USA. Mr. Pant has an MBA from the Wharton School and BE (Honours)
from Birla Institute of Technology and Sciences.
Mr. Ravi Narain
Is the Managing Director & CEO of National Stock Exchange of India
Ltd. Mr. Ravi Narain was the core team to set up the securities & Exchange Board of
India (SEBI) and is also associated with various committees of SEBI and the Reserve
Bank Of India (RBI).
Mr. Deepak M Satwlekar
Is the Managing Director and CEO of the Company since November,
2000. Prior to this, he was the Managing Director of the HDFC Ltd since 1993. Mr.
Deepak M Satwlekar obtained a Bachelors Degree in Technology from the Indian
Institute of Technology, Bombay and a Master Degree in Business Administration from
The American University, Washington DC.
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42
8
0
5
10
15
20
25
30
35
40
45
a b
1.what is your gender?.
Series1
The above graph shows that the sex wise classification of the respondents.
In total 50 respondents 42% of respondents are males.
And remaining 8% of respondents are females.
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2
19
23
6
0
5
10
15
20
25
a b c d
2.What is your age?.
Series1
The above graph shows that the age wise classification of the
respondents.
2% of respondents are coming under the age between 15 to 20 years.
21% of respondents are coming under the age between 20 to 30 years.
23% of respondents are coming under the age between 30 to 40 years.
And remaining 6% of respondents are coming under the age of 40 years
and above.
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3. What is your qualification?.
4
2118
5
a
b
c
d
The above graph shows that the 4% of respondents have completed SSLC, 21%
of respondents have completed PUC, 18% of respondents have completed degree and
15% of respondents have completed master degree.
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4. Are you living in your own house?.
39
8
0
5
10
15
20
25
30
35
40
45
a b
Series1
The above graph shows that the numbers of respondents are living in their own
house.
39%of respondents have their own house.
Remaining 8% of respondents do not have their own house.
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1410
22
20
10
20
30
a b c d
5. Are you using the following?.
a
b
c
d
The above graph shows that the number of respondents is using the
following luxuries goods.
14 % respondents are using Car.
10% respondents are using Colour TV.
22% respondents are using Bikes.
2% respondents are using Refrigerator.
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6. What is your occupation?.
15
19
4 0
a
b
c
d
The above graph shows that the respondents occupation.
15% of respondents are job holders.
19% of respondents are Business mans.
4% of respondents are Professionals.
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3
26
16
3
0
5
10
15
20
25
30
a b c d
7. What is your monthly income?.
a
b
c
d
The above graph shows that the monthly income of the respondents. In
the survey it was found that the.
3% of respondents are come under below Rs.5000 per month.
26% of respondents are coming under Rs.5000 to 10,000 per month.
16% of respondents are coming under 10,000 to 15,000 per month.
Only 3% of respondents are coming under Rs.15, 000 & above.
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19
26
0
5
10
15
20
25
30
a b
8.Are you aware of any thing about HDFC Standard Life Insurance?.
a
b
The above graph shows that the 19% of respondents aware about HDFC
Standard Life Insurance and 26% of respondents unaware about HDFC Standard Life
Insurance.
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9.If yes how do you come to know?.
6
10
1
2
3 0 a
b
c
d
e
f
The above graph shows that the number of respondents are come to
know about this HDFC Standard Life Insurance Plans and Policies.
Only 6% of respondents are come to know from the executives.
10% of respondents are come to know from their friends.
1% of respondents are come to know from Television.
2% of respondents are come to know from local NEWS Papers.
3% of respondents are come to know from Pamphlets.
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39
10
0
10
20
30
40
a b
10. Do you want to know more about HDFC?.
a
b
The above graph shows that the number of respondents wants to know
more about HDFC Standard Life Insurance Plans and Policies.
39% of respondents are wants to know more about HDFC Standard Life
Insurance Plans and Policies.
10% of respondents don’t want to know.
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26
20
0
5
10
15
20
25
30
a b
11. Do you want to invest your money in the HDFC Standard Life Insurance?.
a
b
The above graph shows that the numbers of respondents are interested to
invest their money in HDFC Standard Life Insurance.
26% of respondents are interested to invest their money in HDFC
Standard Life Insurance.
20% of respondents are not interested to invest their money in HDFC
Standard Life Insurance.
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79 8
6
0
5
10
a b c d
S1
12. If yes in which plan you want to invest?.
Series1
The above graph shows that the numbers of respondents are interested to
invest their money in the following plans in HDFC Standard Life Insurance.
7% of respondents are interested to invest their money in the
“Investment Plans”.
9% of respondents are interested to invest their money in the “Saving
Plans”.
8% of respondents are interested to invest their money in the “Pension
Plans”.
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13. In which company you have invested your money?.
a
b
c
d
The above graph shows that the numbers of respondents are invested
their money in the following companies.
17% of respondents are invested their money in the “LIC”.
9% of respondents are invested their money in the “HDFC”.
8% of respondents are invested their money in the “ICICI”.
2% of respondents are invested their money in the “Bajaj Allianz”.
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2
14
13
27
00
5
10
15
20
25
30
a b c d e f
14. Your saving consist of?.
a
b
c
d
e
f
The above graph shows that the numbers of respondent’s saving consist
of in the following companies.
2% of respondent’s consist their savings in the Post Office.
14% of respondent’s consist their savings in the Bank F.D.
1% of respondent’s consist their savings in the Shares.
3% of respondent’s consist their savings in the Land and Building.
27% of respondent’s consist their savings in the Life Insurance.
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Findings
In 50 respondents presently 46% of respondents age between 30 to 40 years.this
indicates that they have ability to take financial investment decisions. So it is
suggests that the company catch such kind of respondents.
In the survey it was found that more number of respondents i.e.36% of
respondents have completed graduation. This indicates that the respondents in
the Dharwad city are educated and they are easily understood what are the
benefits and importance of the policies.
In this survey it was found that 44% of respondents have their own bikes and
28% of respondents have cars. This indicates that these financially sound and
they can easily understand the importance of policies and they can invest thhier
money in that.
In this survey it was found that 52% of the respondents monthly income is in
between Rs.5000 to Rs.10000. such kind of respondents are wants save money
or invest money which will help for their children’s in future.
It was found that 52% of respondents in Dharwad city are unaware about the
HDFC standard Life Insurance. This indicates the advertisements which are
using for creating awareness in Dharwad is not effective so it is suggests the
company to use more effective ad camps to create awareness.
In Dharwad city 78% of respondents wants to know more about HDFCs
policies so it is suggest that the company should give ads in local NEWS Paper
and also give advertisement in local cable TV.Dharwad city is aware or knows
about this scheme.
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In this survey it was found that 52% of respondents are wanted to invest their
money in HDFC Life Insurance Policy. These respondents are potential
customer for the organization.
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Conclusion
From the survey analysis it was found that in Dharwad City more than half of
respondents are unaware about HDFC Standard Life Insurance Plans and Policies.
In this survey it was also found that more number of respondents have
perception in that they are interested to invest their money in HDFC Standard Life
Insurance In short many respondents are still not decided to in which company they
have to invest their money. So they have opportunity in Dharwad city and the company
has an opportunity so it suggests that they catch the such customers to tap the market.
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Recommendations
1. More number of respondents have their monthly income below Rs.5000. And
such kind of population wants to make policies in HDFC Standard Life
Insurance. More number of the respondents are come to know about this
scheme from TV and Friends. So it suggests that they should use other sources
of advertisement like Big Eye Catching Hoardings and Road shows etc.
2. Here it can recommended that the company should provide bonus for the
potential financial consultant and Company almost all plans and policies have
duration period of minimum 10 years for this long duration people are not
interested to invest their money so the company should reduce their duration period.
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Bibliography.
MARKETING RESEARCH BY DONALD S. TULL & DELL HAWKINS.
PRINCIPLE OF MARKETING BY PHILLIP KOTLER & ARMSTRONG.
NEWSPAPER AND MAGZINES
COMPANY MANUALS.
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Questionnaire.
This is an anonymous survey
Dear respondent.
1. What is your gender?
Male female
2. What is your age?
15-20 20-30
30-40 40 and above
3. What is your qualification?
SSLC PUC
Degree Masters
4. Are you living in your own house?
Yes No
5. Are you using the following?
Car Colour TV
Bike Refrigerator
6. What is your Occupation?
Job Holder Businessman
Professional Others
7. What is your monthly income?
Below 5000 5000-10,000
10,000-15,000 Above 15,000
8. Are you aware of any thing about HDFC Standard Life Insurance?
Yes No
(If No skip to the question no. 10)
9. If yes how do you come to know?
Executive Friends
TV NEWS Paper
Pamphlet Others
10. Do you want to know more about HDFC Plans?
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Yes No
11. Do you want to invest your money in the HDFC standard Life Insurance?
Yes No
12. If yes in which plans you want to invest?.
Investment Plans Saving Plans
Pension Plans Others
13. In which company you have invested your money?
a) LIC b) HDFC
c) ICICI d) Bajaj Allianz
14. Your saving consists of.
a) Post office b) Bank F.D c) Shares d) Land / Building e) Life insurance f) Gold
S.N0. 1 2 3 4 5 6 7 8 9 10 11 12 13 141 a b a a c b b b a a d a e2 a c c a a a c a b a b b c3 a c c a c b c b a a d a e4 a c b a b b a a c a b a b5 a c c a b b b a a c c e6 a d c a c b b a b b b d7 a b b b b a a b a a b b
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