SUMMER TRAINING PROJECT REPORT ON HDFC STANDARD LIFE INSURANCE

FOR THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD FOR THE DEGREE OF

MASTERS IN BUSSINES ADMINISTRATION

SUMITED TO PUNJAB TECHNICAL UNIVERSITY, JALANDER UNDER THE GUIDANCE OF UNDER THE SUPERVISION OF:

SUBMITTED BY:
AMAN PREET KAUR 80607317002 MBA 2008-2010

GLOBAL INSITUTE OF MANAGEMENT AMRITSAR

CERTIFICATE

This is to certify that project done on INSURANCE is a bonafide work carrired out by AMAN PREET KAUR under my supervision and guidance .the project report is submitted towards the partial fulfillment of two years ,full time degree in MASTERS IN BUSSINESS ADMINISTRATION The work has not been submitted anywhere else for any other degree or diploma. the original work was carried out 15 june-31 july in GLOBAL INSITUTES , AMRITSAR

DATE: AMAN PREET KAUR ROLL NO:80607317002

Acknowledgement

The training has been successfully undergone with the highly acclaimed organization
HDFC STANDARD LIFE INSURANCE

I would like to thank our Company Guide , Mr. JASWINDER RANA for extending his immense help while completing our project successfully and to our Faculty Guide ,sales manager MRS. DEEPA who was always their to guide us. I would like to take this opportunity to extend our heartfelt gratitude to, for his immense support and guidance throughout the project. He guided us and gave valuable inputs and advises at every stage of our project. I am also thankful to , territory manager, VISHAL GUPTA, Aviva for providing us the deep insight into the of the Project, under whose guidance I was able to take initial steps in the corporate world and also have the feel of the market, giving us the opportunity to apply our theoretical knowledge into the practical application we gained throughout of our one year studies we have done in our Post Graduation Program in Management.

PREFACE

Education becomes more meaningful when its theoretical aspects are combined with practical experience. These provide an opportunity to the students to improve their understanding of the studies. M.B.A. is a course, which combines both its theory and application as its content of study in an organization as a part of this course, every aspirant has to undergo at least six weeks on the job training in an organization of repute. The purpose of this training is to expose students to real business situation and to provide insight into the various function carried out within the organization. In order to use the theoretical knowledge I get the opportunity of on the job training in HPFC STANDARD LIFE INSURANCE COMPANY. As complementary to training, I have prepared and submitted a project on the perception and preference for life insurance. It is an attempt to present on account of practical knowledge and observations gather during the vocational training.

DECLARATION

I Aman preet

here by declare that the project report entitled

LIFE INSURANCE SECTOR IN HDFC has been carried out and submitted towards the partial fulfillment of the requirement for the degree of MASTER OF BUSINESS affiliated ADMINISTRATION to the global institutes Amritsar with Punjab Technical University. This report is my original work and not submitted for the award of any other degree, diploma and fellowship of other similar titles.

Aman preet kaur

PART I (Organization Profile)

WHAT IS INSURANCE? INSURANCE COMPANIES IN INDIA INTRODUCTION TO TOPIC 1.1 Industry Profile 1.2 Company Profile a) Aim & Establishment of the company b) Departments of the Company 1.4 SWOT Analysis of Company

PART II (Practical framework of Training Report) 2.1Introduction to topic 2.2Review of Literature 2.3Research Methodology 2.4Data Analysis and Interpretation 2.5Findings and Conclusion 2.6Recommendations & Suggestions 2.7Limitations Bibliography Annexure

INSURANCE
Introduction and Meaning

Successful financial planning is like a three-legged stool. One leg is investment planning, one is estate planning and the third is insurance planning. Take one leg away, and your ability to achieve your financial goals is likely to be severely threatened.

So, why is having the right level of insurance so important? Insurance is basically a sharing advice. The losses to assets resulting from natural calamities like fire, earthquake, accidents, etc. are met out of the common pool contributed by large number of persons who are exposed to similar risks. This contribution of many is used to pay the losses suffered by unfortunate few. However the basic principle is that loss should occur as a result of natural calamities or unexpected events, which are beyond the human control. Secondly insured person should not make any gain out of insurance. It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but often we forget that creator of all these assets is the human being whose efforts have gone a long way in building up the assets. In that sense, human life is unique income-generating assets. Unlike the physical assets, which decrease in value with passage of time, the individual becomes more experienced and more matured as he advances in age. This raises his earning capacity and purpose of life insurance is to protect the income in the event of his premature death. The individual himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of saying in certain cases. In one classic example of insurance, a ship-owner insures a ship and receives payment if the ship is damaged or destroyed. This example is one of the earliest uses and developments of concepts like insurance. Interestingly, ships are now more often insured through risk pooling and spreading organizations such as Lloyd's of London because the loss of a large ship going down is too great for one insurer to accept.

Definitions 1. Bierce Ambrose, promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company. 2. Hansell D.S., contract or certificate of insurance; you should have read the small print on your policy" 3. Merge Johan, protection against future loss Insurance in 21st Century A financial planner once said this about the life insurance buying habits of Indians: They dont buy life insurance its sold to them. Unfortunate, it is true. Individual awareness and understanding of life insurance products is extremely low, and many among the insured dont even know whether the life insurance policy they own meets their insurance needs, and in larger context, their personal finance needs. Life insurance is chiefly a risk management tool, meant to offer financial protection to your dependents in the unfortunate event of your death. If you are adequately insured, your life insurance should enable to your dependents {spouse, children, and parents} to maintain their current life style and pursue their goals---till such time as they are in a position to set up an attractive income stream by themselves. Thats the basic purpose of life insurance. But in India, as the most other developing markets, life insurance has come to represent more than just risk cover. The best selling insurance products in the market double as investment options and offer attractive tax breaks.

Types of Insurance

Insurance can be classified in following categories 1. Health insurance 2. Life insurance 3. Auto insurance 4. Homeowners insurance 5. Appliance protection 6. Business insurance 7. Life insurance

INTRODUCTION TO LIFE INSURANCE

Introduction With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countries GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC. Since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

Meaning Life insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or an unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the assured. Life insurance is universally acknowledged to be an institution, which eliminates 'risks', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of the death or of total permanent disability of the breadwinner. By and large, life insurance is civilization's partial solution to financial uncertainties caused by untimely death. Definitions

1. Tindall Justice, The act or system of insuring against death; a contract by which the insurer undertakes, in consideration of the payment of a premium (usually at stated periods), to pay a stipulated sum in the event of the death of the insured or of a third person in whose life the insured has an interest.

Objectives of life Insurance

There are many reasons for investing in life insurance policies, such as: 1. Protection for the Family The most important objective of life insurance is to provide financial protection for the family in case of an unexpected and premature death of its breadwinner. The purpose is to protect the dependents against the loss of earning power of the insured through death or disability. Those who have insured their lives for an adequate sum can live in peace and comfort, free of the gnawing worry of what would happen to their families in the event of their sudden and premature death. Life insurance has long been recognized as a necessary and essential element in a familys total financial program. 2. Regular Savings Saving is not a physical need, unlike hunger or sleep. Many of us may not save unless there is compulsion to do so. For such people, life insurance is a compulsory, regular savings scheme, especially the monthly salary savings schemes. Even if you do not subscribe to the salary savings scheme, you can issue standing instructions to your bankers to pay the premium regularly without reference to you. The element of savings in a life insurance contract should be understood in a proper perspective. Typically, life insurance is made available on the basis of equated periodical payments. In the initial years, you tend to pay more compared to the risk factor. Strictly, speaking, the 'savings' aspect in a life insurance policy should not be compared with other pure savings media.

3. Bonus from ICICI pru life ICICI pru life pays bonus to policyholders on all with-profits policies. The bonus becomes payable at the maturity of the policy or on death, whichever is earlier. Once in two years, ICICI pru life undertakes valuation of its assets and liabilities. The 'surplus,' if any, is passed on to the policyholders by way of a bonus. The bonus declared by ICICI pru life on policies has been steadily increasing. 4. Tax Benefits There is a tax rebate under Section 88 on life insurance premium. Many investors, especially those in higher tax brackets, used to buy life insurance mainly to take advantage of these tax benefits. Additional tax benefits are available under Section 80DD and Section 80CCC applicable to specific schemes. Hence, attractiveness from the tax angle has come down. 5. Housing Finance One of the easier ways of acquiring a house property is through a loan under the various scheme of ICICI pru life, under which a life insurance policy is accepted as a collateral security. The proceeds of the policy can be adjusted towards the housing loan. To enjoy this loan facility, many people even go in for additional life insurance. However, with the advent of HDFC and various other housing finance schemes, you have alternatives to choose from.

6. Annuities for Regular Income during Retirement If the life-insured survives till the maturity of a policy, the maturity value represents a sizable estate for the insured person. Normally, this estate would be available around one's age of retirement. Insurance money comes quite handy for investment so that retirement

may not create any undue financial worries. It is also possible to buy annuity policies from ICICI pru life. More details are given later.

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

Founded in 1977, HDFC is today is the market leader in housing finance in India and has extended financial assistance for more than 19 lakhs homes. HDFC has 120 offices in India presently. It also has one international office in Dubai and service associates in Bahrain, Kuwait, Qatar, Saudi Arabia and Sultanate of Oman. HDFCs asset base amount to over Rs. 21450 crores. Its financial strength is reflected in highest safety rating of FAAA and MAAA awarded by CRISIL and ICRA-T two of Indias leading credit rating agencies- respectively, for the last 7 years consecutively. It as a depositor base of over 13 lakhs depositors and a deposit agents force of over 50,000. Of the total deposits, 82% are sourced from individual and trust depositors, which demonstrate the tremendous confidence that retail investors have in the Company. HDFC- promoted companies has emerged to meet the investors and customers needs. HDFC Bank for commercial banking, HDFC Mutual Fund for Mutual fund products, HDFC Standard Life Insurance Company for the Insurance Company for life insurance and pension products and HDFC Chubb for general Insurance products. Being an institution that is strongly committed to the highest standards of quality and excellence, HDFC has won several accolades in the past few years. One such award is the Ramakrishna Bajaj National Quality Award for the year 2004. This award was instituted to award recognition to Indian Companies for business excellence and quality achievement.

STANDARD LIFE ASSURACE COMPANY (SLAC) Founded in 1825 Standard Life has been at the forefront of the UK 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 United Kingdom, Ireland, Spain, Germany, Austria and Canada with representative offices in Hong Kong and China. Standard Life has total assets of over US $100 billion and new premium income last year of US$ 9.2 billion. Its UK 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 AA rating from two of the leading international credit rating agencies, Moody and Standard & Poors. Not surprisingly, Standard Life brings to this venture are immense. The companys reputation in the UK 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.

Our Vision & Values

Our Vision
'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'.

Our Values
Values that we observe while we work:

Integrity Innovation Customer centric People Care One for all and all for one Team work Joy and Simplicity

History of HDFC standard life insurance

Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) - India's leading housing finance institution, and a Group Company of the Standard Life Plc, UK. The Company is one of leading private insurance companies, offering a range of individual and group insurance solutions, in India. Being a joint venture of top financial services groups, HDFC Standard Life has adequate financial expertise to manage long-term investments safely and resourcefully. HDFC Standard Life Insurance offers a range of individual and group solutions, which can be easily personalized to specific needs. Its group solutions have been planned to offer complete flexibility, together with a low charging structure. As of 31 December, 2008, the Company's new business premium income stood at Rs. 1,839.70 Crores; it has covered over 812,811 lives so far. Given below is a comprehensive list of policies and products on offer by HDFC Standard Life Insurance:

Various plans offered by HDFC insurance

Protection Plans

HDFC Term Assurance Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan

Children's Plans

HDFC Children's Plan HDFC Unit Linked Young Star II HDFC Unit Linked Young Star Plus II HDFC Unit Linked YoungStar Champion

Retirement Plans

HDFC Personal Pension Plan HDFC Unit Linked Pension II HDFC Unit Linked Pension Maximiser II HDFC Immediate Annuity

Savings & Investment Plans

HDFC Unit Linked Endowment Plus II HDFC SimpliLife HDFC Unit Linked Endowment II HDFC Unit Linked Enhanced Life Protection II HDFC Unit Linked Wealth Maximiser Plus HDFC Unit Linked Endowment Winner HDFC Endowment Assurance Plan HDFC Money Back Plan HDFC Single Premium Whole of Life Insurance Plan HDFC Assurance Plan HDFC Savings Assurance Plan

Health Plans

HDFC Critical Care Plan HDFC SurgiCare Plan

Group Plans

Group Term Insurance Plan Group Variable Term Insurance Plan Group Unit Linked Plan - Gratuity Group Unit Linked Plan - Superannuation Group Unit Linked Plan - Leave Encashment

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. Range of Solutions We have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. Track Record So Far Our gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 crores. The company has covered over 8,33,070 lives as on March 31, 2009.

Hdfc Parentage
HDFC Limited
HDFC Limited, Indias premier housing finance institution has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies.

Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life Group has been looking after the financial needs of customers for over 180 years. It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs. Its investment manager currently administers 125 billion in assets. It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's. Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006

Awards & Accolades

Sept, 2008 Received 2008 CIO Bold 100 and CIO Security Awards

HDFC Standard Life has received the 2008 CIO Bold 100 Award. This annual award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. This year's award theme, The Bold 100, recognized those executives and organizations that embraced great risk for the sake of great reward. HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO Security Award aimed at CIOs, whose pioneering implementations have taken their enterprise security to the next level. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure.

The company received the 2008 CIO Bold Award for its mobile workforce portal and the CIO Security Award for its initiatives for a secure computing environment, including identity management.

May, 2008 Received PCQuest Best IT Implementation Award 2008

HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc. Read more about the Consultant Corner tool in the HDFCSL in News Section.

March, 2008 Silver Abby at Goafest 2008

HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing craft category at the Goafest 2008 organised by the Advertising Agencies Association of India (AAAI). The radio commercial Pata nahin chala touched several changes in life in the blink of an eye through an old mans perspective. The objective was drive awareness and ask people to invest in a pension plan to live life to the fullest even after retirement, without compromising on ones selfrespect

March, 2008 Unit Linked Savings Plan Tops Mint Best TV Ads Survey
The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading private insurance companies in India, has topped Mints Top Television Advertisement survey conducted, for February 2008. HDFC Standard Lifes Unit Linked Savings Plan advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim). The respondents were between 18 and 40 years. Mints exclusive report, New voices in a makeover outlines the survey in detail.

February, 2008 Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007
Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations.

January, 2008 Sar Utha Ke Jiyo Among Indias 60 Glorious Advertising Moments
HDFC Standard Lifes advertising slogan honoured as one of 60 Glorious Advertising & Marketing Moments' over the last 60 years in India, by 4Ps Business and Marketing magazine. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then, followed by others including ICCI Prudential, thus giving HDFC Standard Life the credit of bringing up one such glorious advertising and marketing moment in the last 60 years.

The Board of Directors

Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

Sir 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 Group in March 2004. Sir Crombie is a fellow of the Faculty of Actuaries in Scotland.

Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an 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.

Ms. Marcia D. Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005.

Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & 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 Controls 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. Skeoch joined the Board of Directors in November 2005.

Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.

Associate Companies

Other Companies

HDFC Trustee Company Ltd. GRUH Finance Ltd. HDFC Developers Ltd. HDFC Property Ventures Ltd. HDFC Ventures Trustee Company Ltd. HDFC Investments Ltd. HDFC Holdings Ltd. Credit Information Bureau (India) Ltd HDFC Securities

Bancassurance Partners

HDFC PLANS
Protection Plans help you shield your family from uncertainties in life due to financial losses
in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness. Securing the future of ones family is one of the most important goals of life.For instance, consider the example of Amit who is a healthy 25 year old guy with a income of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10% per annum, while the inflation rate is around 4%; this is how his income chart will look like, until he retires at the age of 60 years. At 50 years of age, Amits real income would have been around Rs. 10,00,000/- per annum. However, in case of Amits unfortunate demise at an early age of 42 years, the loss of income to his family would be nearly Rs. 5,00,000/- per annum.

However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of service tax & educational cess) can help Amit provide a financial cushion of up to Rs. 10,00,000/- for his family over a period of 25 years.

Types of Protection Plans

Childrens Plans helps you save so that you can fulfill your childs dreams and aspirations.
These plans go a long way in securing your childs future by financing the key milestones in their lives even if you are no longer around to oversee them. Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime. An illustration of how education expenses could rise with passing time due to inflation

Types of Childrens Plans

Our range of Children's Plans includes

Retirement Plans provide you with financial security so that when your professional
income starts to ebb, you can still live with pride without compromising on your living standards. By providing you a tool to accumulate and invest your savings, these plans give you a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today.

The above illustration shows how with each passing year your annual savings requirement would increase. For instance, if you are 30 years old and plan to retire at 60, then, with a current annual expenditure of Rs. 3,00,000/- , you would need a corpus in excess of Rs. 2,00,00,000/- to maintain your living standards, assuming you live till 85 years and the inflation rate is 4%. To build this retirement corpus, you need to invest Rs 3,60,000/- per annum in a retirement plan that offers 8% returns per annum. In case you delay planning your retirement by 5 years then the investment amount would increase to Rs 6,90,000/- per annum.

Types of Retirement Plans

Saving and investment plans

You have always given your family the very best. And there is no reason why they shouldnt get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. A big factor that you need to consider while building your wealth is inflation. It has a dual impact on your hard-earned savings. Inflation not only erodes your current purchasing power but also magnifies your monetary requirements for the future. Sample this: An 35 Year individual needs to invest Rs. 36,000/- per year with 8% returns to build a corpus of Rs. 10,00,000/- by the age of 50 Years.

However, Rs. 10,00,000/- after 15 years would be worth roughly around half of what it is today once adjusted for inflation at the rate of 4%. Therefore, an individual will need to save nearer to Rs 50,000/- annually to reach your targeted savings at the age of 50 Years, if you consider inflation.

Types of Savings & Investment Plans

Health plans give you the financial security to meet health related contingencies. Due to
changing lifestyles, health issues have acquired completely new dimension overtime, becoming more complex in nature. It becomes imperative then to have a health plan in place, which will ensure that no matter how critical your illness is, it does not impact your financial independence.In the race to excel in our professional lives and provide the best for our loved ones, we sometimes neglect the most important asset that we have our health. With increasing levels of stress, negligible physical activity and a deteriorating environment due to rapid urbanization, our vulnerability to diseases has increased at an alarming rate.

Source: National Commission on Macroeconomics and Health Report 2005. Note: Current figures are for the year 2000(Cardiovascular diseases)), 2001 (COPD and Asthma), 2004 (Cancer) and 2005(Diabetes and Mental Health). All figures above are on a per lakh basis.

Types Of Health Plans

HDFC Term Assurance Plan

This plan is designed to help secure your familys financial needs in case of uncertainties. The plan does this by providing a lump sum to the family of the life assured in case of death or critical illness (if option is chosen) of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to ones family in the unfortunate event of ones death. This helps your family to maintain their financial independence, even when you are not around.

Features

Advantages

High cover at a very nominal cost. Flexibility to choose the Sum Assured. Additional benefit options can be availed at marginal costs. Premium amount remains the same over the term of the policy in case of regular premium Option of paying single premium or regular premium. Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961.

HDFC Personal Pension Plan

Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC Personal Pension Plan is a With Profits insurance policy that is designed to provide a post-retirement income for life with the freedom to choose your retirement date.

Features

Advantages

This plan is designed to provide you a post retirement income for life You can choose your premium, the Sum Assured and your retirement date. At the end of the policy term, you will receive the Sum Assured plus any attaching bonuses, which will provide you a post retirement income in your golden years

On your chosen retirement (Vesting) date, you will get the lump sum comprising the Sum Assured plus any attaching bonus. You can take up to 1/3rd of your Sum Assured as a tax free cash lump sum
o o

The rest must be converted to annuity You can buy the annuity from us or any other insurer

HDFC Single Premium Whole of Life Insurance Plan

Ideally, just how spending comes to you, so must saving and investing. You are able to finance your expenses and take care of your familys needs in present times. However, to ensure that family is able to maintain the same standard of living in the future, you need to make the right kind of investment today. HDFC Single Premium Whole of Life Plan is a tailor made plan well suited to meet your long-term investment needs and help you maintain your familys financial independence. This single premium investment plan is a Whole of Life plan aimed at providing long-term real growth of your money.

Features

Advantages

By nature, this is a whole life policy where the term extends for the life However, you can decide on the policy term by using a feature built into it. For a period of 4 weeks, after any one of the 10th, 15th, 20th and subsequent five-year anniversaries, you can choose to receive the Sum Assured plus any attaching bonuses, in full.

You can terminate the policy any time, after it has been in force for at least 6 month and receive a surrender value. We will pay discretionary surrender value based on our experience. However, after completion of 3 years there will be a guaranteed surrender value of 50% of premium paid.

HDFC Critical Care Plan

Critical Illness can strike anyone. Today with advancement in medical science it is possible to survive a critical illness. Expenses on survival with a critical illness can be very high. HDFC Critical care plan provides for a lump sum payment on survival post diagnosis of a critical illness, so that in the event a critical illness strikes, you dont have to dig into those precious savings of yours.

Features

Advantages

Provides valuable protection on survival post diagnosis of a critical illnesses Covers as many as 30 critical illnesses Lump sum benefit payment paid irrespective of medical expenses The policy continues even after the benefit payment paid on selected illness Choice of the level of health cover and premium payment Convenient and hassle free claims Tax benefits are available under section 80D under Income Tax Act, 1961

HDFC Home Loan Protection Plan

This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the policy term. It ensures that your family does not lose the dream house that you have purchased for them, in case you are not around to repay the outstanding monthly installments on your housing loan..

Features

Advantages

A decreasing Sum Assured payable if you die during the term of the contract. This sum assured is intended to help pay-off your outstanding home loan

Policy can be availed by paying a single premium in advance

The premium amount can be included in the housing loan and repaid as part of the loan repayment installments

Decreasing Sum Assured makes sure that you do not pay for protection you dont need

HDFC SurgiCare Plan

In the fast paced lives that we lead, medical contingencies may arrive at our doorstep uninvited.Surgery costs form a substantial portion of health care expenditure and needs to be provided for. Health issues can get compounded if left unattended and may require a surgery. Plus, the ever increasing costs of surgical procedures are sure to burn a hole in our pockets. HDFC SurgiCare Plan provides you with timely support in case you have to undergo a major surgery and hospitalisation, as the case maybe, ensuring your financial independence at all times.

Features

Advantages

82 major surgical procedures are covered. Option to include hospital cash benefit Automatic increase in the level of health cover (subject to terms and conditions) ensures that the increasing medical costs are taken care of. Lump sum benefits are paid regardless of the actual medical expenses.
The policy continues even after the after the payment of first or subsequent surgical procedures, subject to terms and conditions as stated in the policy brochure.

SWOT Anaylsis OF HDFC STANDARD LIFE:

Strengthens
Strong tie up With HDFC being major Housing Financial Institution and Standard Life being major player in insurance Sector. Brand Equity HDFC being major brand in India and Standard Life being major brand worldwide. Strong Network HDFCs Strong presence and awareness in the Indian market. Huge Customer Databas

WEAKNESSES OF HDFC STANDARD LIFE:

Less promotion Low customer awareness

OPPORTUNITIES OF HDFC STANDARD LIFE:

32 crores uninsured population Network building Targeting the rural segment

THREATS OF HDFC STANDARD LIFE :

LIC Other Aggressive New Entrants.

Practical framework
Introduction to the topic
HDFC Standard Life Insurance Company Limited is one of the first companies to be licensed by IRDA to operate in the Insurance sector. The company came into existence on 14th August 2000. Both Crisil and ICRA have honored it with AAA Ratings. Similarly Moody's and Standard and Poors have also honoured it AAA ratings. HDFC holds 81.4% share in HDFC and the remaining 18.6% stake is with Standard Life. It integrates the strong expertise and stability of Standard Life and HDFC. It is one of the most trusted companies; it is easily accessible and approachable, offering value services to its customers. The company aims to provide: Innovative products to cater to different needs of different customers Customer service of the highest order Use of technology to improve service standards Value for money for customers Increasing market share Professionalism in carrying out business The values ingrained in the company are to provide financial security to policyholders, maintain trust and keep innovating to establish it as a unique player.

HDFC Standard Life Insurance Reviews Revie Product Rating Review Date w Rating
Product Rating: Customer Service: Claims Settlement: Rates/Premium : Range of Plans: Staff Attitude: Member's Recommendation: No Product Rating: Customer Service: Claims Settlement: Rates/Premium : Range of Plans: Staff Attitude: Member's Friends,The only purpose of writing this review, is to make you all aware of HDFC Insurance Products. Please read below review before buying any HDFC Life Insurance Products:When I decided... HDFC Life Insurance. Bad Products Worst Service By: milindbrane | Jun 19, 2009 03:12 PM Useful Last month I purchased the HDFC standard lifes product named Growth Fund 2.The HDFC has got a good service levels and the process of application, response,websites were preety fast.When... Useful Feedback on HDFC standard life's Growth fund-2 By: myview348 | Jul 02, 2009 02:30 PM

Recommendation: No Product Rating: Customer Service: Claims Settlement: Rates/Premium : Range of Plans: Staff Attitude: Member's Recommendation: Yes Product Rating: Customer Service: Claims Settlement: Rates/Premium : Range of Plans: Staff Attitude: Member's Recommendation: No Product Rating: ***Association Of Thieves*** Please Don't Invest By: chandan32 | May 09, 2009 11:30 AM Very Useful Dear Readers!!!If you Luv your money please dont Invest it in HDFC Bank & HDFC Standard Life Insurance. They are going into loss as told to me by Senior Law Manager HDFC Standard Life that... Useful No Money***Please Don't Invest in HDFC Read Why??? By: manish32 | May 30, 2009 12:56 PM Dear all,Before reading my review,I want to say that dont take my words in a negative way and dont think that I am justifying the company mistakes.As a private company we cant compare this Not Useful Very advanced servicing,can beat LIC in future By: apositiveperson | Jun 01, 2009 10:45 PM

Customer Service: Claims Settlement: Rates/Premium : Range of Plans: Staff Attitude: Member's Recommendation: No

Why The Management at HDFC Standard life Insurance Co. Dont reply & give clarification its because they know they are corrupt and investigation in the below case shows that they are now looking

Research Methodology
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps, the research process that are generally adopted to study the research problem and basic logics behind them. The basic steps in this research are shown in the chart below

The Research Process

Define the research problem and its objectives Review concepts and theories Research design including sample design Collection of data survey Analysis of data Interpretation and report writing

The research consisted of two stages. In the first stage, a survey was conducted to collect the data about the people. The second stage-involved analysis of the data collected in the first stage.

Data Collection
Data has been collected both from primary as well as secondary sources as described below.

Primary sources
The primary source of data was Questionnaire filled by people at different places of Fatehgarh Sahib Distt.

Secondary sources
The secondary sources of data were the various websites and insurance manuals. This mainly provided information about the insurance sector and the companys profile. These helped in gaining knowledge about the industry. These sources are listed in References. Sample size The sample size for the survey was 100 respondents of different companies. Universe Distt. Fatehgarh Sahib. Sampling Units General Public. Sampling Procedure Questionnaire Method.

Research design

The methodology consisted of Descriptive research. The problem was solved by studying peoples perception about insurance sector. The information was collected through questionnaire.

- Awareness of HDFC Standard Life Insurance Company:S. No. Particulars Response

Print Media

24

Electronic Media

30

Agents

35

Others

11

4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 Pin r t Md e ia E c o ic le tr n Md e ia A e ts gn O es th r Sr s eie 1

INTERPRETATION:-

In this chart, we can see that the agents play major role in awaring people about the HDFC-SLIC. Apart from this electronic media is also a source for awareness.

Respondents response Insurance Companies

about

the

awareness

of

the

Que. 2: -What the people think about the Insurance

S. No. Particulars Response

Necessity for protection security

67

Imposition of a burden of expenses

17

A compulsory tool for tax saving

16

8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 Sc r e uity Ep n e x es s TxS v g a ain Sr s eie 1

INTERPRETATION:-

On the basis of above analysis, we can say that people mostly treat insurance as a protection instrument. 67 people think insurance as a necessity for protection & security. Main consideration that a customer looks at while purchasing an Insurance Policy.

S. No.

Particulars

Response

TAX

10

SAVING

29

PROTECTION

53

PENSION

INVESTMENT

6 0 5 0 4 0 3 0 2 0 1 0
ti o n io n g s te m

Sr s eie 1

0
a x T S

a v in

ro te c

e n s

In v e

n t

INTERPRETATION:-On the basis of above analysis, we can say that

people purchase insurance policy mostly for the protection purpose so use to purchase traditional palns What a respondent see while purchasing Insurance from the company?

S. No.

Particulars

%age

Standing and goodwill of the company

46

Product range of the company

Advertisement being released by the company

D E

Services being given by the company Returns of bonus declared by the company

18 26

50 45 40 35 30 25 20 15 10 5 0
dw ill G oo

Series1

R an g

en

ce s er vi S

se m

uc t

ro d

dv e

rt i

R e

tu

rn

INTERPRETATION:-On the basis of above analysis, we can say that

people prefer the companies those have very highly goodwill in the market. And apart from this while purchasing they also use to give more weight age to return also. Plan that a respondent prefers to buy

S. No.

Particulars

%age

Protection Plan

47

Investment Plan

19

Pension Plan

10

Children Plan

24

tio n

e n t

st m

e n s

ro te c

In ve

C h

ild

re n

io n

5 0 4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0

S rie e s1

INTERPRETATION:On the basis of above analysis, we can say that people prefer to buy protection & children plans mostly. Customers expectations from Life Insurance Companies

S. No.

Particulars

%age

Innovative Products

Attractive Riders

Reasonable Premium

24

Better Customer Service 47

High Risk Coverage

22

ve

ct iv e

re m iu m

a ti

ic e

5 0 4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0
In n o v

S rie e s1

tt ra

e rv

R is

INTERPRETATION:-On the basis of above analysis, we can say that

people expect better customer service from the insurance companies & reasonable premium on their investment.

HDFC Standard Life Insurance Company provides better facilities than ICICI Prudential Life Insurance Company

S. No.

Particulars

%age

Yes

34

No

Cant say

64

70 60 50 40 Series1 30 20 10 0 Yes N o C Say ant

INTERPETATION:-

On the basis of above analysis, we can say that people are not aware about these companies so we can not come on any conclusion.

Is the respondent satisfied with the plan he bought?

S. No.

Particulars

Response

Yes

67

No

17

I havent bought any

16

8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 Ys e N o Hvn ae 't Sr s eie1

INTERPETATION:-

On the basis of above analysis, we can say that people are satisfied with the plans they have bought.

FINDING
Agents play major role in awaring people about the benefits of insurance. People think insurance as a protection tool. People purchase insurance policy mostly for protection purpose and some of people for saving. The goodwill of the company also attracts customers toward a insurance company. People also take insurance policy as a security for their children.

CONCLUSION

On the basis of my study, I conclude that, both the companies are providing very good facilities to their customers. HDFC Standard Life Insurance is the one that is providing wavier of premium to its customer in case of death of the life assured, whereas ICICI is not providing this facility to its customers.

Both the companies have same lock in period i.e.3 years. Surrender charges of these companies are different from each other. On maturity, both

the companies provide the amount equal to the market value of the units. Charges taken to manage the fund are different in both the companies.

SUGGESTIONS

 Advertisement should be done on television and especially Posters and Banners. This will greatly help in raising awareness level. Insurance Companies should show more commitment with the customers. Private companies give better services to the customers as compared to public companies. The private company should create good relations and communication. Private companies should collaborate to spread awareness regarding the benefits of insurance plans provided by the Private Companies. Agents have got maximum influence on customers. They are the one who introduces the prospect to different policies. So agents should be given full-fledged training and the training should be strict.

BIBLIOGRAPHY

WEBSITES www.hdfcinsurance.com www.economictimes.com www.irdaindia.com www.bimaonline.com www.google.com

BROUCHERS HDFC Standard Life Insurance ICICI Prudential Life Insurance

QUESTIONAIRE (This information is for our internal use only, will not to be disclosed to any other organization/department)
Consumers Behavior towards various Investment and Insurance Products A- Study Name Telephone Occupation Marital status: Single/Married

Address Age

Q.1: How do you know about HDFC Standard Life Insurance Company?
Print Media Electronic Media Agents Others

Q.2: What do you think about insurance?

Necessity for protection security Imposition of a burden of expenses A compulsory tool for tax saving

Q.3: Main consideration that you look at while purchasing an insurance policy.

Tax Saving Protection Pension Investment

Q.4: What do you see while purchasing an insurance policy from the
company? Standing and goodwill of the company Product range of the company Advertisement being released by the company Services being given by the company Returns of bonus declared by the company

Q.5: Which plan would you like to buy?

Protection Plan Investment Plan Pension Plan Children Plan

Q.6: What do you expect from HDFC Standard Life Insurance Company? Innovative Products Attractive riders Reasonable premium Better Customer Service High risk coverage

Q.7: Do you think that HDFC Standard Life Insurance Company provides better facilities than ICICI prudential life insurance company?

 Yes No Q.8. Are you satisfied with the plan you bought? Yes No I havent bought any

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