SUMMER TRAINING PROJECT REPORT ON POLICIES OF HDFC LIFE AND LIC AT HDFC LIFE, DEHRADUN

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE MASTERS DEGREE IN BUSINESS ADMINISTRATION OF UTTARAKHAND TECHNICAL UNIVERSITY, DEHRADUN

SUBMITTED TO: INTERNAL GUIDE Prof.A S Pandey Dean(MBA) IMS Dehradun SUBMITTED BY: ROHIT UPADHYAY MB10B22 EXTERNAL GUIDE Mr.Kapil Kumar Sales Manager HDFC LIFE Dehradun

INSTITUTE OF MANAGEMENT STUDIES-DEHRADUN

ACKNOWLEDGEMENT
I would like to take the opportunity, especially to express my profound gratitude to Mr.KAPIL KUMAR (SM),HDFCLIFE, for his constant assistance and guidance in the completion of my project.

I also deem it to be my privilege to acknowledge the encouragement and facilities provided to me by HDFC Life Insurance Pvt. Ltd. Co. to make this project a fruitful one. I am also thankful to all those people of HDFC Life Insurance Pvt. Ltd. Co, whom I came across for their extended support during the project period.

RohitUpadhyay MB10B22

CERTIFICATE
I have the pleasure in certifying that Mr./Ms. .......is a bonafide student of IInd Semester of the Masters Degree in Business Administration (Batch 2010-12), of Institute of Management Studies, Dehradun under Uttarakhand Technical University Roll No. ... . He/She has completed his/her project work entitled .. under my guidance.

I certify that this is his/her original effort & has not been copied from any other source. This project has also not been submitted in any other Institute / University for the purpose of award of any Degree.

This project fulfils the requirement of the curriculum prescribed by this Institute for the said course. I recommend this project work for evaluation & consideration for the award of Degree to the student.

Signature

: :. :

Name of the Guide : Designation Date

EXECUTIVE SUMMARY
Someone has rightly said that practical knowledge is far better than classroom teaching. During this project I fully realized this and I came to know about how a consumer choosesamong a varied range of products available to him. The objective of the study is a comparison between strategies and policies followed by public sector and private sector . To understand the difference, in the policies of

HDFC(private sector) and LIC (public sector).

The report contains first of all brief introduction about the companies. It gives a detailed description of the strategies (both marketing and otherwise) for both the companies. Then comes a comparision between the strategies of both the companies. Finally, there comes data presentation and analysis at the end of the report followed by suggestions. Since 1956, with the nationalization of insurance industry, the state-run Life Insurance Corporation of India (LIC) has held the monopoly in that country's life insurance sector. With around 600,000 agents in every nook and corner of the vast country, it has created an enviable brand name, particularly among the rural population of the country. It has around $40 billion as its life fund and is a strong player in the financial sector. However, on the qualitative side, it has very little to take pride in.

The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance

products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. Private companies are making a headway in the sector due to their strategic management and tailored made projects. However, there is still not enough awareness among the general public about the private insurance companies, awareness and people opting for LIC plans are more as compare to HDFCSLIC gaining momentum in the market day by day. but the later are

INDEX
CONTENTS
PREFACE INTRODUCTION HOW INSURANCE WORK? OBJECTIVES HDFC STANDARD LIFE PRODUCTS OF HDFC STANDARD LIFE MARKETING STRATEGIES OF HDFC LIFE INSURANCE CORPORATION OF INDIA PRODUCTS OF LIC MARKETING STRATEGIES OF LIC COMPARISION OF HDFC AND LIC POLICIES FINDINGS AND ANALYSIS FINDINGS AND SUGGESTIONS RECOMMENDATION CONCLUSION QUESTIONNAIRE BIBLIOGRAPHY

Pages

1 3 4 10 13 16 42 48 50 63 66 73 86 89 91 93 96

INTRODUCTION

Insurance is basically a sharing device. The losses to assets resulting from natural calamities like fire, flood, 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 gains 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 a 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 the purpose of life insurance is to protect the income in the event of his premature death. The individual himself also needs financial security for old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of savings in certain cases.

How insurance works?

Suppose there are 1000 persons all aged 35 years and healthy lives. They are insured for one year against the risk of death. Each person is insured for Rs. 50,000. If the past experience indicated that 4 out of 1000 persons, at this age are expected to die during the year, expected amount of death claim to be paid to the family of four persons would come to Rs. 2,00,000. The contribution to be paid by each of the 1000 persons will come to Rs. 200 per year. Thus, all the 1000 persons share loss caused to the 4 unfortunate families. 996 persons who survived till one year have not lost anything as they secured peace of mind and a feeling of security of their family.

While insurance cannot prevent accidents or premature death, it can help protect the family of the deceased against the loss of income, caused by the death of the main breadwinner. In return for specified payments, insurance will provide protection against the incidence of an uncertain event- such as premature death.

The business of insurance company called insurer is to bring together persons who are exposed to similar risks, collect contribution (premium) from them on some equitable basis and pay the losses (claims) to the unfortunate few who suffer.

OBJECTIVES
To study the marketing strategy of LIC(public sector) and HDFC(private sector)

insurance companies in life insurance segment.

To compare the strategies followed by LIC and HDFC sector companies in life

insurance segment.

RESEARCH METLHODOLOGY

The research design was essentially exploratory and non-descriptive in nature. However it must be mentioned, given the nature of the study, the conclusion is subjective in nature.

DATA Collection Procedures:

Primary Data: First hand information was obtained through Direct or face to face interviews. 1.Manager In charge , HDFCSLIC 2.Sales development manager, HDFCSLIC. 3.Primary Data was collected directly . Personnel interview was conducted of the concerned persons and observation were noted down.

Secondary Data: The secondary data was obtained from the following sources: 1. Journals and business magazines 2. Books 3. World Wide Web

Research Instrument In-depth and detailed interview of the concerned person were undertaken.

Sampling Method Convenient sampling method was used . Questionnaire Design A questionnaire is designed to know the view of employees of the company as well as the customer perception about insurance.

HDFC
The Housing Development Finance Corporation (HDFC), a pioneer in housing finance in India, is known for its strong retail focus and service to the masses. It has turned the concept of housing finance into a profitable, professionally managed, world- class enterprise. It has assisted over 1.9 million families to own a home through loans over RS. 370 billion(Rs. 37000 Crores). This is supported by its strong distribution network of over 125 offices across the country serving customers in over 2400 cities/towns. It also has over 46000 deposit agents, with a deposit base of over RS. 85 billion (Rs. 8500 Crores) from over 1.2million depositors. Over the years, HDFC has grown into a very strong brand, promoting various companies to offer financial services like banking, mutual funds, life insurance, stock market and real estate related services.

HDFC Limited
HDFC

Standard

Life

Insurance

Company

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. The net worth of the corporation as on March 31, 2000 stood at Rs. 2,096 crores.

Standard Life
Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. Standard Life currently has assets exceeding over 70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor.

The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred with many awards.. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs.15,000 Cr and Rs. 600,000 Cr respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance companies, which offers a range of individual and group insurance solutions.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.

Values
Integrity Innovation Customer centric People Care Teamwork One for all and all for one Joy and Simplicity

PRODUCTS OFFERED BY HDFC STANDARD LIFE INSURANCE

Protection Plans Protection range includes our Term Assurance Plan&Loan Cover Term Assurance Plan.

Investment Plans Single Premium Whole Of Life plan is well suited to meet your long term investment needs

Pension Plans Pension range includes our Personal Pension Plan, Unit Linked Pension,Unit Linked Pension Plus

Savings Plans Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Childrens Plan, Unit Linked Youngstar, Unit Linked Youngstar Plus .

Group Term Insurance:

HDFC Standard Life Insurance offers a Group Insurance scheme for companies called 'Group Term Insurance'. This product has been designed to offer innovative features and a high degree of customization

Gratuity Plan

The HDFC Gratuity Plan is an insurance policy, which offers you, as an employer and gratuity scheme trustee, a new and flexible way to fund your gratuity liability. The contributions that you decide to invest in this policy will assist you in meeting your gratuity obligations in a systematic manner.

Leave Encashment Plan

The HDFC Leave Encashment Plan is a flexible insurance policy which helps employers and leave encashment scheme trustees in funding leave encashment obligations without the employers profit and loss account being unexpectedly impacted.

Development Insurance Plan:

This product is well suited for the economically weaker sections of society and caters specifically to their needs. It makes available life cover at affordable rates.

Group Term Insurance - HDFC Standard Life

SUITABILITY

This plan has been designed for an employer to take insurance for all or certain categories of their employees (e.g. - employees in a particular grade/ designation). All members of the group, subject to some basic insurability conditions, are eligible for membership.

BENEFITS

Sum assured designated for the employee will be paid.

EXCLUSION

The policy does not cover suicide in the first policy year.

Money Back Policy SUITABILITY

The policy is suitable for people who wish to receive amounts at regular intervals during one's career to meet contingencies or for re-investment, all the while having life insurance protection. Also, lump sum amounts are paid to the life assured at periodic intervals on survival.

BENEFITS ON SURVIVAL

Basic sum assured plus any bonus additions less the previous cash lump sums is provided. Schedule of cash lump sum (as a % of basic sum assured) No of years from policy date 10 15 20 25 10 40%

Total policy term

15 30% 30%

20 25% 25% 25%

25 20% 20% 20% 20%

30 15% 15% 15% 15% 15%

On Death

Basic sum assured plus any bonus additions is provided irrespective of earlier survival benefits.

Apart from the basic benefit of receiving insurance benefits at regular intervals within the term of the policy, benefits depends on the type of the plan chosen. However premiums are accordingly charged for availing these benefits.

Children's Plan SUITABILITY

The plan is suitable for people who wish to provide for their children's higher education/marriage. Policy is offered in three variants. Options available are o 1. Maturity Benefit Plan 2. Accelerated Benefit Plan 3. Double Benefit Plan

BENEFITS
Option Maturity On the death of the insured parent during the policy term Future premiums are waived and On maturity

Benefit Plan the policy continues till maturity. Accelerated Sum assured + bonuses are paid Benefit Plan and the policy stops. Sum assured is paid, future premiums are waived, and the policy continues till maturity

Sum assured + bonuses are paid. On the survival of the insured parent to the maturity date, sum assured + bonuses are paid.

Double Benefit Plan

Sum assured + bonuses are paid.

EXCLUSIONS

If the death of the life assured has occurred directly or indirectly as a result of suicide within one year of the date of commencement or the date of issue, if later, no benefit is payable and the policy will lapse without any value.

Endowment Assurance Plan SUITABILITY

The policy provides for family protection as well as old age provision. This policy is suitable for all categories of people, Lump sum amount is payable on survival to maturity or on death, whichever is earlier.also, Riders available under the plan are: 1. Double Sum Assured 2. Accidental Death Benefit 3. Waiver of Premium 4. Critical Illness

BENEFITS
On Death

Basic Sum Assured + Bonus is payable On Survival

Basic Sum Assured + Bonus is payable Riders

Double Sum Assured (DSA): This benefit provides for an additional amount equivalent to the basic sum assured in case of unfortunate death.

Accidental Death Benefit (ADB): This benefit provides for an additional amount equivalent to the basic sum assured in case of death due to accident.

Waiver of Premium (WOP): By the virtue of this benefit all future premiums stand waived in case of total disablement of the life assured. The waiver applies during the period of total disability.

EXCLUSIONS

The company will not be liable to pay the benefit amount, if the death of the life assured is caused directly or indirectly by suicide within one year of the date of commencement, or the date of issue of the policy, if later.

Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition.

Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practitioner.

War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion.

Taking part in any flying activity, other than as a passenger in a commercially licensed aircraft.

Taking part in any act of a criminal nature.

Term Assurance Plan

SUITABILITY

The policy is suitable for people who wish to provide maximum insurance protection to the family at a minimal cost. This plan is well suited for the value-

conscious people. It is a term assurance policy which provides the financial security to the family in the unfortunate event of death of the life assured within the term.. Additions benefits available are: 1. Accidental Death Benefit 2. Critical Illness Benefit 3. Accelerated Sum Assured Benefit

BENEFITS
On survival

No benefits are payable on survival to the end of the term of the policy. On death

Sum assured is payable in case of death of the life assured during the term of the contract.

EXCLUSIONS

The benefit amount is not payable if the death of the Life Assured or the death of the first to die of the Lives Assured is caused directly or indirectly by suicide within one year of the date of commencement, or the date of issue of the Policy, if later.

Accidental Death Benefit is not payable if death is caused directly or indirectly from any of the following:

1. Suicide within one year of the date of commencement or the date of issue of the Policy, if later.

2. Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practitioner. 3. Taking part or practicing for any hazardous hobby, pursuit or race unless previously agreed to by us in writing. 4. War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion. 5. Taking part in any flying activity, other than as a passenger in a commercially licensed aircraft. 6. Taking part in any act of a criminal nature.

Critical Illness Benefit is not payable if death is caused directly or indirectly from any of the following:

Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition.

Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practitioner.

War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion.

Taking part in any flying activity, other than as a passenger in a commercially licensed aircraft.

Taking part in any act of a criminal nature.

Pregnancy or childbirth or complications arising therefrom.

Accelerated Sum Assured Benefit is not payable if death is caused directly or indirectly from any of the following: 1. Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition. 2. Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practitioner. 3. War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion. 4. Taking part in any flying activity, other than as a passenger in a commercially licensed aircraft. 5. Taking part in any act of a criminal nature. 6. Pregnancy or childbirth or complications arising therefrom. 7. A condition for which the Life Assured had previously received treatment or of which he was aware at the time of issue of the policy, if the claim arises within 2 years of the latest of date of commencement, date of reinstatement and date of issue of the Policy.

Unit Linked Endowment Plan

Unit Prices as at 18/08/2007 Unit Linked Fund Liquid Fund Secure Managed Fund Defensive Managed Fund Balanced Managed Fund Growth Fund 35.5745 56.6321 33.7958 53.8005 28.8956 27.4508 Offer Price Bid Price (Rs) 23.3539 22.5654 (Rs) 22.1862 21.4371

* As is the standard in the finance industry, we are Forward Priced; these prices are not applicable for any future deals. Product(s): HDFC Group Unit Linked Plan - for Defined Benefit Superannuation Schemes Unit Prices as at 18/08/2007 Unit Linked Fund Liquid Fund Secure Managed Fund Defensive Managed Fund Balanced Managed Fund 24.5906 23.3611 23.2619 22.0988 Offer Price Bid Price (Rs) 21.7488 21.7558 (Rs) 20.6614 20.6680

SUITABILITY
If you are taking a loan to buy a house for your family, this plan can help you ensure that life's uncertainties do not affect their shelter. It is an affordable plan that has been designed to help your family repay the outstanding loan in case of your unfortunate death.

OPTIONAL BENEFITS
You can add the following optional benefit to customise your policy to suit your needs:

1. Accelerated Sum Assured (ASA) Benefit

Accelerated Sum Assured (ASA) Benefit provides, on diagnosis of any one of the 6 common critical illnesses(1), an amount equal to the amount payable on death. As soon as the claim is accepted:

the sum assured is paid, and the basic policy immediately terminates without value. This optional benefit must be selected at the outset of your plan. (1) Cancer, coronary artery bypass graft surgery, heart attack, kidney / renal failure, major organ transplant (as recipient) and stroke.

ELIGIBILITY
The eligibility ages are as follows: Basic Policy Minimum age at entry Maximum age at entry 18 55* 18 55 65 Policy with optional benefit

Maximum age at expiry 65 *60 yrs. for a single premium policy.

PAYMENT OPTIONS
premium can either be paid yearly, half-yearly or quarterly , or it could be paying a single one-time premium, depending on your convenience. Indicative Premium* for the basic policy The age and term limits for taking out a Loan Cover Term Assurance are: Annual Premium** (Rs.) Term of loan (in yrs.) Age of Life 10 Assured 30 35 40 45 50 1,592 1,757 2,114 2,782 3,955 1,634 1,799 2,163 2,915 4,175 15 Single Premium (Rs.) Term of loan (in yrs.) 10 5,781 6,324 8,515 10,636 15,921 15 7,993 9,152 12,991 16,663 25,038

The premium quoted above may vary as a result of underwriting. The above rates

are for a male life assured for an initial sum assured of Rs. 3.5 lakh. In case of annual premium payment, the premium is to be paid for only the first

2/3rd of the term while the cover continues for the full term Unit Linked products accounted for 50 per cent of the new business premium. The average premium was Rs17,000 and the cumulative sum assured for all the policies issued last financial year crossed Rs30,000 crore.

Smart Kid

. It is a plan that provides guaranteed benefits to your child along with the life insurance cover. Smart kid is so designed that it provides money at all the critical milestones in his/her life, whatever be the uncertainties.

SUITABILITY
Parents (between 20-60 years) with children in the age group of 0-12 years can purchase this policy

BENEFITS
In the event of death of the Life assured Sum assured of the plan is paid immediately assists the family in meeting the unforeseen expenses incurred because of the unfortunate loss. Waiver of premium no future premium are payable, thereby ensuring that your family is not burdened financially. Thus, there will be no financial obstacle in realizing the dream which the parent or child had. Mode of payment: Monthly, half yearly and yearly. The premium that you will be paying will be tax exempt under section 88.

Save n Protect
This is an ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection. It is a fixed term policy that combines savings with life cover. It is a plan in which you pay premium regularly during the term. On death of the life assured, the beneficiary will get the sum assured, the guaranteed additions and the vested bonuses. Once the policy matures, i.e. at the end of the term, you can get the full sum assured and guaranteed additions as well as the vested bonuses. In addition, you will get an extended term

insurance cover for five years after the maturity date of the policy for 50% of the sum assured. No premium has to be paid for the same.

SUITABILITY
Any individual in the age group of 0 to 60 years. The maximum cover ceasing age is 70 years. The minimum sum assured you should apply for is Rs. 50,000 and the minimum term is 10 years. The minimum premium is Rs. 4,8000 p.a. after 3 years premiums are paid. However, the insurance protection provided under this policy will also cease.

ADD ON COVER
Accident & Disability Benefit Critical Illness Benefit Major Surgical Assistance

Cash Back
As an individual you have to be financially prepared for various milestones in your life. If you are newly married, you need to plan for a baby a few years from now. If you have teenage children you need to plan for their university education. What you need is a plan to meet your periodic financial, requirement with the added benefit of insurance protection. It is a three in one plan that combines savings, liquidity and protection through the following: Fixed term of 15 or 20 years

Survival benefit payments at regular intervals Premiums are payable throughout the term of the policy

On the death of the life assured, the beneficiary will get the sum assured, the guaranteed additions and the vested bonuses.

SUITABIILITY
Anyone between the age of 16 and 55 years can apply. The minimum sum assured needed to be paid is Rs. 75,000. The minimum premium amount is Rs. 4,800 p.a. No loans are available under this policy.

ADD ON COVER
Accident & Disability Benefit Critical Illness Benefit Major Surgical Assistance

Forever Life
It is a comprehensive retirement solution that is developed keeping in mind a persons various capabilities and needs, with respect to ones retirement planning. This is a plan that ensures you to maintain your lifestyle for a lifetime. So, whether you are 30 or 60 this is a just the right retirement plan for a person.

SUITABILITY

 Ideally, this plan is suitable for those peoples who are between 30-35 years of age to take the maximum benefit of this plan. This gives a person a longer period for your retirement plan. It is a deferred annuity plan and it provides regular incomes for life after a stipulated date. The amount you receive depends on the premium you pay till the stipulated date and the annuity option you choose. It also offers life cover during the deferment phase. The plan has two phases The Deferment Period (Policy Term) and the Annuity Period. Premiums are paid in the deferment period till the time of vesting. From the vesting date annuity is paid for the lifetime of the annuitant. The premium depend upon the age of the person and also the term of the product, which the deferment period. This plan has two main benefits they are:

Spouse Benefits
In case of the unfortunate event of death, the annuity starts for the spouse. The annuity payable is determined on the basis of your sum assured plus guaranteed additions plus the vested bonuses if any at the time of the death. Your spouse would have the option to either take the accumulated value of the Sum Assured + Guaranteed Additions + Vested Bonuses (if any) or opt for an annuity using a desired portion of the accumulated value and take the rest as lump sum.

Annuity Benefit
On the date of vesting (retirement), you start receiving a regular income for life. This amount would depend upon the annuity option chosen by you and the accumulated value as on the vesting date. The annuity would also depend upon the annuity rates offered by the company as on that date and are not guaranteed.

ADD ON COVER
Critical Illness Benefit Major Surgical Benefit Accident and Disability Benefit

Life Link Pension

This plan is a complete retirement solution with total flexibility, total control that gives a person the power to plan for own retirement. It provides regular income for life from a date, which can be chosen. The amount received would depend upon the premiums paid, the market value of investment and the option of the annuity chosen. It is a pension plan that provides the benefit to invest your money in market linked funds. During the deferment period, a part of the premium is used to pay for the initial charges and the rest would be invested in the plan of choice. Entry into the plan will be based on the Unit Value applicable on the date of issuance.

Some benefits that are offered by this plan to the customer

are as follows: Death benefit:
There is flexibility of choosing a zero death benefit or a death benefit of 105% of the premium. In case of the unfortunate event of death, the spouse would get the higher of the death benefit (105% or 0% of the premium paid) chosen or the value of units as on that date. The spouse would have the option to either take the higher of the death benefit or the value of units or opt for an annuity.

At vesting, you will have the option of taking up to 25% of the value of units at the time of vesting as lump sum. The remaining will be used to provide with a regular stream of income for life.

Choice of plans: You have the option to choose between our Growth plan, Income
plan or balanced plan. Maximiser (growth) plan: This plan offers you the benefit of long term capital appreciation from a portfolio that is primarily invested in equity and equity linked securities. Protector (Income) plan: This plan offers you steady returns with a portfolio that primarily invested in debt and debt related securities. Balancer (balanced) Plan: This plan offers you the flexibility of growth and steady returns with the portfolio being invested in a mix of equity and fixed income securities. Switch between funds: During the deferment period you can switch between the various plan options to take advantage of the prevailing market conditions or with the change in your priorities. You can do one free switch every year. Annuity Options: You have the flexibility to choose from four different annuity options. Life Annuity: Annuity for Life. Open market option: This option gives you the flexibility to buy a pension from any other insurer of your choice, at the time of vesting. Retirement Plans Joint Life, Last Survivor with Return of Purchase Price: In this case the annuity is first paid to the annuitant, after the death of the annuitant the spouse starts getting a pension which is equal in amount of the annuity paid to the

annuitant. After the dearth of the last survivor the purchase price is returned back to the beneficiary. ADD ON COVER Critical Illness Benefit Rider Accident and Disability Benefit Rider Income benefit rider

MARKETING STRATEGY MARKETING STRATEGIES OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED # Ad line: - Making Life Easier for you. With this particular punch line HDFC Std. Life has been able to make a great impact in the minds of the potential customer .It is being communicated that a lot of worries of the lives of the customers are being taken care of, by the company so that they can now enjoy their life in a much more better manner and a comparatively less stressful manner. #WORSTATION MARKETING: Customers visiting the offices of HDFC SLICL are given information about the details of the various products at the office itself, by the company officials , so that the products can be sold to the customer at that point and time itself , if the customer gets interested. #CORPORATE MARKETING: Company officials often go to various corporate houses to make presentations regarding various products they are offering. They are even ready to sell the policies then and there, in case customer wants. This is specially taken care of because, at given any time, customer might go to the competitor. #STALLS IN TRADE FAIR: This strategy is basically undertaken to expose general public to various life insurance products available at HDFC SLICL. Also, this strategy helps generating leads. This is short-term strategy as is limited to duration of trade fairs and all.

# ROAD SHOWS: -

This strategy is aimed at reaching more and more customers by moving to various places. And creating awareness among public. #AWARENESS CAMPS: This is one of the strategies which has the greatest effect on the mindset of the prospective customers and is considered to be the most effective. Most of the Indian population is still unaware of life insurance as such and the various benefits which life insurance carries for them. Thus, making people aware of these things will definitely help company increasing its sales. #SEGMENT TARGETING THROUGH CONSULTANTS: This is a unique strategy in itself and a new concept . We know that every insurance company has consultants or agents. Now HDFC SLICL has divided their customers into various segments like transporters, doctors, housewives, teachers, etc. and has made one person out of them as their consultant. Thus, this helps them cater to the whole segment since a individual from same level can easily influence others. This strategy has

infactbeen quitesucessful. #RIDERS: Almost every private player has such strategy. Under this, the HDFC SLICL has added few more benefits or covers with the original life policy like accident, illness etc. With a slight increase in the original premium an individual can avail multiple benefits/insurance covers, thus, avoiding the hassle of buying separate policies for separate purposes. # HOARDINGS: Though HDFC SLICL reacted late to such kind of advertising efforts, but still such hoardings bring visibility. Among the various marketing strategies followed by HDFC

SLICL, most of them are Proactive in nature whereas few are Reactive strategies, which it was forced to follow because of the actions of the competitors. Like, creating visibility through hoarding is a late reaction by HDFC SLICL which actually came since the competitors like HDFC LIFE was putting more stress on hoarding,. Now strategies like

corporate marketing, segment consultants are proactive strategies of marketing followed by HDFC SLICL.

MARKET SEGMENTS The life insurance and pension business has two distinct customers segments Individuals and Corporates. In case of the retail business for individuals, the 4 subsegments are - protection, investment, savings and pension. Apart from the existing leader LIC, new companies such as HDFC Standard Life, TATA AIG, and more will seek to be present across all the segments of the market. Among the retail products for individuals, pure risk protection products have been introduced by some of the new life insurance companies in the market. As these products have no savings component to it, the premiums are very low compared to other products. Investment products provide long term investment growth and insurance cover. This segment is growing rapidly. Savings products like Endowments and MoneyBacks provide a combination of protection and investment benefits. The last segment of pension includes products that are aimed at offering customers an income during their retirement years. In case of the group business, there are three sub-segments - protection, statutory savings and pension. Group insurance products are taken to provide low cost life insurance cover to a group of people. Group insurance can be taken to provide low cost life insurance cover as part of employee benefit packages to motivate employees or to cover the housing or vehicle loan given by employer to employee. The statutory savings segment essentially comprises of the gratuity products for companies. The pension segment will include products like group superannuation, which will enable a company to benefit from the actuarial, investment and operational expertise of a specialist company to manage its superannuation funds.

MARKETING MIX POLICIES

Different companies can choose to position themselves differently and hence the marketing mix would be different. However, there are certain common characteristics that one can cull out from the possible strategies that companies can adopt. Product: The development of flexible products to suit individual requirements is what will differentiate the winners from the also-rans. The key to success is in providing insurance solutions, not standardised insurance products. The concept of riders/optional benefits has already been a huge innovation brought about by the new players, which has led to customisation of products for individual needs. However, companies may differentiate themselves on the basis of product segments that they choose to focus on and excel in. Distribution: Different companies may however choose different channels and different geographies to focus on. The channel options are - tied agency force, corporate agents and brokers and this is an area where different companies will make different choices. Many companies like HDFC Standard Life are focussing on all channels whereas companies like Max New York Life are focussing on the tied agency force only. Customer interface will be a key challenge for life insurance companies and includes every that interaction that the customer has with the company, such as sales, new business underwriting, policy servicing, premium payments, claim processing and so on. Technology can play a crucial role in delivering the highest standards of service set by the company and it will be imperative for any serious player to excel in all of these.

Price:Priceis a relevant differentiator only in two segments - pure term insurance and
in pure annuities. Here too, service delivery and financial strength will need to be present at a minimum acceptable level for price to be a relevant differentiator. In case of savings oriented products, long term returns generated will be more relevant than just the price of the product. A focus on generating good investment performance and keeping a tight control on costs will help in generating good long-term maturity value for customers. Norms have been laid down on all of these by IRDA and adhering to these while delivering good returns will be a challenge.

Advertising and Promotion: The level of demand is latent and will have to be
activated considerably. The market needs to be developed. Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning measure needs to be appreciated by the Indian people.

LIFE INSURANCE CORPORATION OF INDIA (LIC) Company Profile

It is the single largest Life Insurance Player of India having an life fund corpus of Rs. 1,86,024crore (Approx.). It is the only player in the public sector life insurance segment. If we add up the asset base of all other private players who have recently ventured into India with local alliance after the liberalization of the Insurance sector in the 1999, then also it comes nowhere near to LIC. Moreover, it can be predicted ,that in the near future , no other company in the life insurance segment would topple over LIC as per the asset base is concerned. No. Of Agents: -8,00,000 agents. Coverage: - Till date it has sold nearly 113 million policies covering approximately 80 million individuals. Insurance in India has been under public sector for over four decades. Life Insurance was nationalized way back in 1956 by merging 245 private insurance companies thus forming Life Insurance Corporation (LIC) of India. Similarly after nationalization of general insurance in 1972, General Insurance Corporation (GIC) was formed by merging 106 private insurance companies. General Insurance Corporation currently has four subsidiary companies operating in India. When the insurance industry was nationalized, it was considered a landmark and a milestone on the way to the socialistic pattern of society that India had chosen after independence. But now four decades after the Insurance sector was nationalized, the nationalized sector companies have failed to cover its entire potential. The main objectives of privatization were: 1. To provide for proper back ups if there is any unforeseen economic shocks.

2. To make sure there is a win-win situation for both the common man and the industry players. 3. To provide better Insurance coverage to Indian citizens. 4. To augment the flow of long-term financial resources to finance the growth of Infrastructure. 5. The Public Sector Insurance Companies had not succeeded in extending the insurance cover to all the needy people of the country due to various reasons. Hence this onerous responsibility now has been entrusted to the private insurers.

JeevanSaathi LIC IN UNIT LINK PLANS

SUITABILITY

This plan is ideal for employed couples. With a marginal addition to the premium of an Endowment Assurance, two lives are covered under this policy.

SALIENT FEATURES

This plan is issued on the lives of husband and wife. Premium payment ceases on first death or up to maturity date if both lives survive up to the date of maturity.

Sum assured along with vested bonus is payable on date of maturity if both lives survive up to date of maturity.

Basic sum assured is payable on first death within the term, to the surviving spouse.

If the second life also dies within the term of the policy, the nominee gets another sum assured along with vested bonus.

If the second life survives to maturity, an amount equal to sum is paid along with vested bonus.

assured

Bonus is calculated on basic sum assured.

JeevanSaritha SUITABILITY

Couples who desire to have monthly income benefits till the last survivor dies may take this policy. Premiums are payable during selected period. It is attractive, as it participates in bonus up to the death of the second life or date of maturity. Sum assured is paid partly on death.

SALIENT FEATURES

The policy is taken on Joint-lives. Maturity benefits are payable partly in lump sum and partly in the form of an annuity for life. If both lives survive to the Date of maturity

Lump sum payment of Rs.2500 + any final additional bonus. A joint life annuity of Rs. 50 per month payable in arrears. A lump sum payment of Rs 5000/- on death of the last survivor to his/her legal heirs. On death of either life before Date of maturity

Lump sum Rs 2500/- (with any final additional bonus) to the surviving life assured.

An income benefit of Rs. 50 pm to the surviving life assured. A lump sum payment of Rs. 5000 on death of the surviving life assured to his legal heirs.

Both lives dying simultaneously before maturity date

Payment of full basic sum assured i.eRs 7500 per unit to the legal heirs.

Joint Life Plan SUITABILITY

This is an ordinary joint life plan where two or more lives are covered. Apart from husband and wife taking the policy, partners in business can also take a policy under this plan, to cover the refund of capital in the event of death of one of the partners.

SALIENT FEATURES
Sum assured is payable on first death of either of the lives assured or expiry of the term which ever is earlier. Premium ceases on death of the either of the lives assured, or expiry of the selected term which ever is earlier.

BENEFITS
On both partners surviving till date of maturity

Basic Sum Assured + Bonus is payable. On Death of first Partner

Basic Sum Assured + Bonus is payable to the surviving partner. Other Conditions

Minimum sum assured: Rs.10,000. Minimum premium must be Rs.800 per annum

Minimum age at entry: 20 years(mean age )(both major). Maximum age at entry: 50 years(mean age). Maximum maturity age: 70 years.

JeevanAadhar SUITABILITY

It is a Limited Payment Whole Life Plan specifically designed to make provision for the maintenance of handicapped dependants.

SALIENT FEATURES
The plan has been designed to assure a handicapped dependant to have a secured life. Benefits can be availed of only in the event of death of life assured. In the event of the death of the life assured, the benefits are payable partly in lump sum and partly in the form of an annuity to the handicapped through a nominee or a trustee.

The policy is a whole life plan with limited premiums. Premium paying terms are 10, 15, 20, 25, 30 and 35 years.

BENEFITS
On Death of Life Assured 20% of the Notional Sum Assured is paid immediately to the nominee.

The remaining 80% of the Notional sum assured is utilized to provide an annuity certain for 15 years and life thereafter of the handicapped dependant. The actual Annuity is calculated at the time of claim.

Notional Sum Assured: Basic sum assured + Guaranteed Additions + Terminal Addition.

Guaranteed additions of Rs.100 per Rs. 1000 sum assured, for each completed policy year for which the policy was in full force. Such guaranteed additions will accrue up to age 65 years or till the life assured's death, whichever is earlier.

Terminal Addition: Payable only if 10 years' premiums have been paid and policy is in force. Amount payable on death of life assured depends on the rates declared by LIC on favorable working experience.

Handicapped dependantpre-deceasing the life assured In the event of the handicapped dependant pre-deceasing the life assured during the premium term the contract ceases.

The life assured then has the option of : 1. Making the policy paid-up or. 2. Refund of premiums (excluding extra premium).

Mortgage Redemption without profits SUITABILITY

This plan has been designed to extinguish any outstanding loan in the event of the untimely death of the life assured.

SALIENT FEATURES

Amount is payable as per schedule of benefits at the beginning of each year and only on death of life assured.

The premiums are quoted on application, payable for periods equal to 2/3 of the repayment period of the loan.

Policies on which premiums are payable.

BENEFITS

Outstanding loans of the individual borrower or institutions are automatically extinguished in the event of the borrowers death.

Children's Deferred Assurance Plan SUITABILITY

This policy can be taken for children from 0 years. Hence, maximum Endowment period is available under this plan, which means low amount of premiums need to be paid. Therefore, an assurance for a relatively large amount is secured for the child, at a substantially small premium amount.

SALIENT FEATURES
This plan can be taken for the benefit of children by parents/ legal guardians. Basically an Endowment Assurance plan with risk commencing at a select age of the child. The period from the commencement of the policy to the age at which it vests i.e. risk commences, is called Deferred period.

The life assured receives the full sum assured on survival to date of maturity or on early death.

No medical exam is required where the deferment period is 10 years or more.

BENEFITS
In case the child happens to die before the deferred date i.e. before the policy vests, the premiums paid are refunded. In case, the proposer i.e. the parent happens to die during the deferment period, the policy has to be continued by regular payment of premiums. (However, by payment of an additional premium, the proposer can secure a waiver of premium benefit i.e. premium need not be paid on proposer's death till date of vesting). Before the expiry of the deferred period, the proposer can receive the cash option available under the policy by making a request in writing. If the request for cash option is not made before the deferred date, and the policy is in force, then risk commences on the life assured from the vesting date, and the contract becomes an ordinary Endowment Assurance plan. Sum assured is payable on survival to date of maturity or on death, whichever is earlier.

JeevanBaalya SUITABILITY
The income benefits being phenomenal, this plan is ideal for meeting the educational expenses of children. The plan can be secured by the proposer for a relatively low premium.

SALIENT FEATURES
Children in the age group of 0 to 17 years can take this policy . Risk on the child's life commences at age 21 years, and thereafter the policy continues like any other Endowment Assurance. Sum assured is payable either on survival to the term or on death happening within the term. Basic premiums are payable throughout the term or till the death of the child if the proposer is alive on the vesting date. The premiums in respect of additional benefits are payable up to date of vesting or earlier death of the proposer.

BENEFITS After Vesting

The policy continues as an Endowment Assurance plan. Full Sum Assured is payable on death during the term or on survival to date of maturity. Premiums to be paid by the life assured till date of maturity or earlier death. Accident benefits are also available.

Income Benefits
Rs. 300/- per quarter if the child's age is less than 5 years. Rs. 600/- per quarter if the child's age is 5 years and above.

Rs.

900/-

if

the

child's

age

is

15

years

and

above.

Future premiums till vesting date are waived by securing the premium waiver benefit.

Death of the life assured (child) before vesting i.e. during the deferment period.
The policy shall stand cancelled and a sum equal to all premiums paid is refunded. If premium waiver benefit has been secured, i.e. in the event of the child dying after the proposer dies, waived premiums are also refunded.

Conditions for Proposers

Only standard male and female (category I) are eligible to have this policy. Sub standard lives and persons following hazardous occupation are not eligible.

Minimum age at entry: 21 years. Maximum age at entry: 50 years. Standard age proof on both lives required (Life assured and Proposer). Proposer to undergo medical examination. Cost of special reports to be borne by proposer and the cost will not be reimbursed.

No loan will be granted. No paid up value if deferred period is less than 10 years.

If the policy is discontinued, and if the deferred period is more than 10 years, a reduced cash option is available on deferred date. Minimum three years premiums have to be paid.

After deferment period paid up value will be quoted on application. No paid up value on additional benefits. Guaranteed surrender values are available on surrender of policy.

Jeevan Kishore SUITABILITY

This is an improved version of the New Children's Deferred Assurance plan. Parents or legal guardians can propose the policy for children between ages 1 and 12 years, with risk commencing at an early age .

SALIENT FEATURES
Children between ages 1 and 12 years are eligible Parents can propose for the childs life. The Plan is basically endowment type .i.e. Sum assured is payable either on survival to the term or on death happening within the term

Risk Commencement Age

For children aged 1 to 4 years, risk commences from policy anniversary after attaining age 7 years For children aged 5 to 10 years, risk commences from second policy anniversary from the date of commencement of policy

For children aged 11 years, risk commences from first policy anniversary from the date of commencement of policy

BENEFITS
On death of child during waiting period all premiums are refunded In case, the proposer i.e. the parent happens to die during the deferment period, the policy has to be continued by regular payment of premiums. (However, by payment of an additional premium, the proposer can secure a waiver of premiums i.e. premium need not be paid on proposer's death till date of vesting) Once the risk is commenced, Sum Assured is payable on survival to term or on earlier death of life assured i.e. the child

KomalJeevan

SUITABILITY
This policy is suitable for parents who wish to provide for the childrens education expenses. It can be availed by parents having children aged between 0 to 10 years.

SALIENT FEATURES
Parents can propose the child's life. It is money back plan wherein survival benefits are paid at regular intervals after the child attains the age of 18 years. Guaranteed additions @ Rs.75 per Rs.1000 sum assured are payable under the policy. This additions are payable either on death within the

term (after commencement of risk) or on child attaining the age of 26 years. Loyalty additions are paid either on death or on maturity depending on the performance of the company. Risk commences after 2 years from the date of commencement of policy or on policy anniversary following completion of 7 years by the child, whichever is later. Policy vests on life assured on the policy anniversary or the child attaining the age of 18 years. Premiums cease on the policy anniversary immediately after the child /life assured attains age 18. Proposer can avail insurance cover to the extent of 20% of basic sum assured subject to a maximum of Rs.100,000 by paying additional premium. Policy can be gifted by grand parents, elder sisters and brothers, uncles by taking a single premium plan.

BENEFITS

Sum assured is paid in instalments at periodic intervals. 1. 20% on policy anniversary after completing age 18. 2. 20% on policy anniversary after completing age 20. 3. 30% on policy anniversary after completing age 22. 4. 30% on policy anniversary after completing age 24.

Death Benefits

In case of death of life assured before the commencement of risk, the policy is cancelled and premiums paid are refunded.

After the commencement of risk, if the life assured dies before policy matures, full sum assured plus guaranteed additions are payable without deduction of earlier installment benefits paid.

Special benefit in maturity: Loyalty additions depending on policy duration and sum assured are paid on maturity.

EXCLUSION
This policy shall be void if the Life Assured commits suicide at any time on or after the date on which the risk on the policy has commenced but before the expiry of one year from the date of the policy.

MARKETING STRATEGIES OF LIFE INSURANCE CORPORATION OF INDIA

PUNCHLINE: We Know India Better

A well thought out punch line is a great arsenal for any Marketing Strategy. The punch line should generate curiosity as well as attraction towards the brand. So in any case the importance of punch line in the success of the Marketing Strategy of any product is of immense important. Through this punch line the company wants to convey a very important message to its customers. It reminds them the decade old relation of customers with LIC. It is a classic example of eternal brand equity. It gives a feel to the customers of Indian soil that LIC will be able to deliver policies much better than anybody else according to their needs. #MASSIVE ADVERTISING IN PRINT MEDIA: No other company gives so much advertisement using print media tools as LIC does. Here they give advertisements to newspapers both in the metro dailies as well as regional ones. Soon after the entry of new players, LIC felt newcomers could erode its supremacy. So, it has started using a print ad campaign to address its perceived weaknesses. Life is Beautiful, says the LIC ad, explaining the concepts generic purpose. Keeping in mind the cultural differences amongst different regions they come with advertisements in various flavors. #VAST PRODUCT RANGE: -

LIC has around 80 differentiated products which is very difficult to imitate by other players as offering all these baskets of products requires huge financial strength. LIC boasts of innumerable number of Development Officers as well as well trained agents who are very much capable of personal selling and direct selling. # HIGHER COMMISSION TO AGENTS: LIC feels, more the commission on the product, more the product is pushed and more strongly it is registered in the minds of the consumers. #SAVINGS INSTRUMENT: Life insurance products are being pushed more as a saving instrument since Indians have a strong saving-orientation. Infact, LIC policies have been sold as an alternative to bank deposits for years. # TAX SAVING DEVICE: LIC likes to highlight the tax saving aspect of the life insurance product while dealing with its customers. Due to its vast experience of around 46 years, LIC knows the general Indian public much better. It understands that people are much more interested in paying less taxes than anything else. So they try to exploit the psychology of the customers as a tool for their Marketing Strategy. #EASY ACCESS IN RURAL INDIA: Till date LIC has the most well developed infrastructural set up in rural India. It can also be supplemented by the fact that in most of the major blocks in the rural India, there is a LIC office. Population in Rural India is aware of LIC rather than any other company from the field of the life insurance. #PUPPET SHOWS: -

LIC has taken the help of this unique tool as a part of their Marketing Strategy to promote life insurance in the rural India. Through the puppet show in disguise of a famous tale from a religious book like Ramayana, Mahabharata, etc. they try to spread the message of LIC among the rural folk in a much easier manner. Sometimes, they also portray the day to day lives of the rural villagers and thereby try to make them understand the need for a life insurance in their life. # SPONSORING EVENTS: LIC sponsors various events and thereby tries to increase the brand awareness of LIC. #CONCERN FOR GENERAL PUBLIC: LIC also comes out with several message (both educative as well as consultative) in the leading dailies which are issued on public interest. Thus, LIC wants to communicate that they do think for the general well being of the citizens of the country, which indirectly helps itself to build its brand. # TELEVISION ADVERTISING: -

LIC has been using television advertising since a long time. Time and again as the environment changes LIC has changed its contents while advertising. Now they are showing more and more concern for incorporating technology aspects into their advertising. This is to prepare and counter the threat that foreign life insurance players .

COMPARISON BETWEEN THE POLICIES OF THE LIFE INSURANCE CORPORATION OF INDIA AND HDFC STANDARD LIFE INSURANCE
LIC and HDFC Standard Life Insurance both provide different policies and plans depending upon the various requirements of people. Different plans have been categorised under seven major categories of policies. And a comparative analysis has been carried out between the plans of both LIC and HDFC Standard Life Insurance.

LIFE TIME POLICIES

LIC HDFC Standard Life Insurance

WHOLE OF LIFE PLANS

LIFE TIME PLAN

The most cheapest form of LIC policy Policy that meets your changing need over a lifetime Premiums are payable through out the life Premium part is adjusted towards morality and administrative charges Sum assured is payable on the death and rest is invested in plan of your of the life assured choice.

Bringing the difference in the plan of LIC and HDFC Standard Life Insurance we can find out that LIC plans are very simple to understand whereas the other provide plans according to the changing needs of people.

ENDOWMENT POLICIES
LIC HDFC Standard Life Insurance

ENDOWMENT WITH PROFITS

HDFC

STANDARD

LIFE

These are the policies of limited INSURANCE SAVE N PROTECT duration payable on maturity or death An HDFCSLIC ideal plan for those of the life assured. who want to accumulate funds on a regular basis with life cover These plans are available with

different option like with or without It is a fixed term policy that combines profit or double or special saving with life cover. The premium is paid regularly during the term

endowments

On death up to age: - basic premium returned without interest On death after age 7: - sum assured @3.5% compounded interest for first 4 yrs and then vested bonus.

While HDFC is more concerned about saving and has categories for different section of people. LIC offers a straight and simple plan.

MONEY BACK POLICIES

LIC HDFC STANDARD LIFE INSURANCE

JEEVAN MITRA

HDFC

STANDARD

LIFE

A high risk low cost plan and with INSURANCE CASH BACK profit plan An ideal plan for every milestone of life. It combines life

This plan provide for an additional cover+liquidity+savings. insurance cover, equal to the sun assured in the event of policy holder It provides survival benefit after every death during the term of policy. JEEVAN SURBHI Premium payable for limited periods available with periods of 12,15 and 18 yrs 3 or 4 yrs and add-on benefit for a nominal extra premium.

Money back at interval of 4 and 5 yrs as per policy term JEEVAN SANCHAY Plan having a provision of guarantee addition at 70p.a. per thousand and loyalty addition payable on date of maturity.

LIC under money back policies provide various plans each having different kinds of features. On the other hand, HDFC Standard Life Insurance, combines all the features in just one single plan. The LIC plans like jeevansurbhi are suitable for high income and tax categories.

SINGLE PREMIUM POLICIES

LIC HDFC STANDARD LIFE INSURANCE

BIMA NIVESH

HDFC

STANDARD

LIFE

This is a unique, short-term, multiple INSURANCE REASSURE benefits insurance plan which provide A safe and comprehensive plan for safety, liquidity attractive returns and those about to retire or has retired. It tax benefit. combines best of insurance and investment This plan can be assigned as a collateral security Liquidity with assured and steady annual returns. Life cover up to 110% It provides loyalty and guarantee of premium paid. addition too. HDFC STANDARD LIFE

INSURANCE ASSURE INVEST An investment with healthy returns and added benefit of insurance. This policy has a fixed term of 7 or10 yrs HDFC STANDARD LIFE

INSURANCE LIFE LINK An ideal market linked insurance plan that enables you to enjoy the upside of market returns It gives you flexibility of choosing your investment option between growth, income or balanced plan.

LIC just provides one policy as compared to HDFC Standard Life Insurance, which gives different policies. Moreover HDFC Standard Life Insurance gives higher assured returns and various other benefits.

TERM INSURANCE PLANS

LIC HDFC STANDARD LIFE

INSURANCE

BIMA KIRAN

HDFC

STANDARD

LIFE

A plan with the provision for return of INSURANCE LIFE GUARD premium paid on surviving of the term An ideal low cost policy that covers your life with uncertainties Free term cover after maturity It comes with a choice of two convenient premium payment modesHaving an added attraction of loyalty one time and regular addition JEEVAN GRIHA It gives the flexibility of accident and

provided the policy is in full force

For people desirous of obtaining a disability cover for a extra premium housing loan with policy acting as collateral security Minimum premium payable 2400 per annum. It has no maturity benefits It ensure repayment of loan in the event of premature death of the borrower A high risk low cost plan Available as double and triple cover plans

Comparison between the plans of both the companies shows that while HDFC Standard Life Insurance provides more flexible and stable return plans . LIC offers safer plans taking care of family as a whole. Again LIC provides different plan under this category of life insurance.

CHILDREN POLICES
LIC HDFC STANDARD LIFE

INSURANCE

JEEVAN BALYA

SMART KID

Plan provides for a monthly income Plan designed for critical educational up to age of 21 in case of unfortunate milestone include specialised course death of parents in the country and abroad

Premium waiver benefit is available BAL VIDYA The plan takes care of family

The sum assured is paid immediately from 100,000 to 300,000

expenses-on school college, health or All future payments are waived off just starting a career Most importantly the to receive Childs the will

Money in regular monthly instalment continue and in lump sum at specific point of benefits. time.

policy

LIC provides different plans for children as compared to HDFC Standard Life Insurance, which gives only one plan for kids. Both aim at providing the parents aid for higher studies of their children. While LIC policies are designed to meet the different needs of family budget, HDFC Standard Life Insurance policies are more customer tailored.

FINDING & ANALYSIS

The present section attempts to discuss: 1) The analysis of the research conducted through a questionnaire 2) Try to find the how aware people are about the various insurance companies and the type of insurance that the people avail in general. 3) Find in detail the awareness about the plans of LIC and HDFC Standard Life Insurance. Understanding the level of satisfaction people derive from the

insurance company and the problems faced by them.

INSURANCE AVAILED
This graph shows the number of people who are aware and thus availed the different kind of insurance product. The percentage of people who avail insurance plan is full 100 %.

80% no of people 60% 40% 20% 0% yes no

ANALYSIS: In present market situation almost all the people are aware of insurance and have opted for some or the other type of insurance policy

+++++++++

2. INSURANCE COMPANY AWARENESS

The bar diagram shows the awareness among people about the various insurance companies in the market. LIC is most popular with 95% awareness, while HDFCSLIC has 5%.

ANALYSIS

100 90 80 no. of people 70 60 50 40 30 20 10 0 LIC ICICI Pru HDFC Std. Birls Sun life Allianz bajaj others

100 90 80 70 60 50 40 30 20 10 0 OTHERS HDFC Std.

no. of people

ANALYSIS:
The concept of insurance means LIC is changing with time. Although most people know about LIC but their awareness about other insurance companies is also good and is improving.

SATISFACTION AMONG PEOPLE/CONSUMERS

The graph shows how satisfied is the general public with the working of the company. The number of people satisfied is 65% while the percentage of dissatisfied public is 35%.
70 60 no. of people 50 40 30 20 10 0 yes no

ANALYSIS: Satisfaction derived by people from the products and services of insurance companies is quite high. Around 65% of the people are satisfied from the working of insurance companies and feel that the problems faced are handled properly and effectively.

QUESTIONNAIRE ANALYSIS
1. Do you know about Insurance? (a) Yes (b) No
8%

92% 8%

92%

Yes No

2.

Have you ever opted for Insurance from any Company? (a) Yes (b) No 39% 61%

39%

61%

Yes No

1. If Yes, Which Company have you taken Insurance from? LIC TATA AIG life Insurance HDFC Standard Life Insurance ICICI Prudential Max New York Life Insurance Birla sun life Insurance Met life insurance
45% 42%

42% 7% 12% 19% 8% 10% 2%

40%

35%

30%

25% 19% 20%

15% 8%

12% 10%

10%

7%

5%

2%

0% LIC TATA AIG ICICI Pur Max new life HDFC birla san life Met life insuracne

4.

How did you come to know about Insurance? (a) Advertisement (b) Word of Mouth (c) Referred by your company / Friend 76% 14% 10%

14% 10%

Advertisement

Word of Mouth

Referred by your company/friend

76%

5.

What made you select a particular Company for the Insurance?

(a) EMI (b) Brand name (c) Procedures (d) Facilities (e) Policies (f) Advertisement
78% 80% 70% 60% 50% 40% 30% 20% 10% 0% EMI 3%

78% 3% 9% 1% 7% 2%

9% 1% Procedures

7% 2% Policies

6. How do you like the Marketing strategy adopted by different Companies? (a) Good 68% (b) Average 19% (c) Bad 13%
13%
Good Average

19%
Bad

68%

7. Which Company would you prefer if you were to apply for Insurance for the firstime?

LIC

56%

Birla sun life Insurance HDFC Standard Life Insurance ICICI Prudential Max New York Life Insurance TATA AIG life Insurance Met Life Insurance

7% 12% 17% 8% 5% 3%

60%

56%

50%

40%

30% 19% 20% 12% 10% 7% 5% 3%

0%
LIC HDFC Bank ICICI Bank Birla san life insurance TATA AIG Met Life insuracne

8. Advantages or Comment about Insurances (a) Advertisement should be more on the advantages and fact rather the features. (b) There is a Tax saving factors while opting for Insurance.

(c) Procedure should be made easier for the normal public as it consumes a lot of time and effort for providing all the documents. (d) Insurance is a need and not Luxury.

FINDINGS & SUGGESTIONS

This chapter deals with the concluded aspects of the study carried out on General perception about Life Insurance. The basic objective of the study is to study the strategies of HDFCSLIC and LIC. In order to attain this objective an interview schedule was designed. Data collected based on this schedule was analyzed and based on that certain findings have emerged.

Major Findings of the Study

Based on the quantitative analysis, the major findings of the study have been highlighted below. Most of the people are satisfied with the extent of their life insurance cover. They are not interested in buying more life insurance.

People do not consider life insurance as a good saving because of low returns. As life insurance is a long term contract. Maximum people do not have faith on private life insurance companies, they still prefer LIC.

Because of less advertising not many people are aware about private life insurance companies.

Most of the people do not know about broker, corporate agents and bank assurance, they rely on their agents only

The most preferred type of plan is money back. The reason being availability of funds after every five years which can be used for paying further premium, thus saving the regular income.

Some people have no idea about what type of cover they have. Most of the people feel that life insurance is essential but they think returns are low.

Some people have their doubts on the credibility and long stay of private insurance companies.

SUGGESTIONS
Advertising of the insurance product should stress on the need of security. Insurance should be popularized as the means of securing future rather than saving tax. New entrants should come out with innovative riders. Policies should be issued quickly and with less formalities

Other services should also be improved. Newspaper/Magazines and television are the most effective medium of advertising life insurance. and thus, they should be used to the best.

Insurance agents should be well trained.

RECOMMENDATION
There are certain flaws existing in the present working of the insurance industry. These are some of the recommendations, on the basis of the project which can help make insurance a more prominent sector in todays economy. The need of the hour, is to devise a comprehensive strategy that will help the insurance firms face the challenges of the future. The financial service industry around the world over is undergoing a major transformation. It is very important that trained marketing professionals with good communication skills and knowledge sell the policy. From this research its been found that that people are still not aware about the policies and features of insurance. Therefore, LIC and HDFCSLIC are recommended to shed light on policies and explain the benefits, in order to increase the awareness. The penetration of insurance in India is around 22%. This indicates that a vast majority of rural population is still not covered. The market players thus, need to explore this untapped potential through their marketing and sales network. Other factors that should be looked into by insurance companies are: The returns of the policies are not properly managed and never given in time. So, this must be looked at. Pricing of insurance products, as empirically available in India, shows that pricing is not in consonance with market realities. Life Insurance premium is generally perceived, as being too high while general insurance (especially motor insurance) is priced too low. Some insurance products, which are not available in India, should, be introduced in market. There are areas for new product development: Industry all risk

policies, Large projects risk cover, extended public and product liability cover Insurance companies will also have to get savvy in distribution. Enhanced

marketing thus will be crucial. Already many companies have full operation

capabilities over a 12-hour period. Facilities such as customer service center are already into 24-hour mode. Technology will also play an important role on the market. The lines of distinction between banks insurance companies and brokerages are getting blurred. The future seems to belong to financial supermarkets that will offer a host of services and products to the consumer. In the next millennium all these activities would play a crucial role in the overall development and maturity of the insurance industry

CONCLUSION
There has been tremendous change in the insurance sector. And with it there has been continuous growth in this sector both in Indian as well as world context. The opening up of the insurance sector has changed the whole look of the industry. While LIC, in order to face the competition is coming up with new strategies. New players like HDFCSLIC are leading the sector due to their strategic management and tailored made projects. Moreover, it may be conclude from the research , that though the awareness and people opting for LIC plans are more as compared to HDFCSLIC gaining momentum in the market day by day. The primary reasons for buying an insurance policy, whether life or non-life is to protect us from vagaries of life. We do not invest in insurance for returns; rather we invest in it for regrettable necessities. Though a large proportion of policies available in the country provide for returns, but nobody is looking for returns to the inflation rate. So what does insurance offer, perhaps peace of mind, but even that takes time, due to poor claim performance The demand for insurance is likely to increase with rising per-capita incomes, rising literacy rates and increase of the service sector, as has been seen from the example of several other developing countries. In fact, opening up of the insurance sector is an integral part of the liberalization process being pursued by many developing countries. Insurance is a Rs.400 billion business in India and yet its spread in the country is relatively thin. Insurance as a concept has not been able to make headway in India. There has been a strong fall in insurance business in recent years. Furthermore, it can be observed that non-life business is not increasing as strongly as life business. On the other hand, growth fluctuations have been relatively small with growth rates varying between 1% and 5%. Life insurance business by contrast achieved average growth rates of 6%, although the actual rates ranged from 0% to 13%. This shows on the one but the latter is

hand the increasing significance of life insurance as an instrument for old age provisions and on the other hand indicates the sensitivity of life insurance to changes in the institutional and economic environment. Thus,it is important to conduct the business of insurance with utmost economy, with the spirit of trusteeship; thereby help make insurance is a growing sector.

QUESTIONNAIRE 1. Name: 2. Occupation 3. Do you know about Insurance? Yes No 4. Have you ever opted for Insurance from any company? Yes No 5. If Yes, Which company have you taken Insurance from? LIC SBI Insurance HDFC Standard Life Insurance ICICI Prudential Max New York Life Insurance Birla san life Insurance TATA AIG life Insurance

6. How did you come to know about Insurance? Advertisement Word of Mouth Referred by your company / Friend 7. What made you select a particular company for the Insurance? EMI Brand name Procedures Facilities Policies Advertisement 8. How do you like the Marketing strategy by different Insurance Company? Good Average Bad 9.Which Company would you prefer if you have never applied for Insurance? LIC Met life insurance India HDFC Standard Life Insurance Icici Prudential

Max New York Life Insurance Birla sun life Insurance TATA AIG life Insurance 10. Advantages or Comment about Insurances

BIBLIOGRAPHY The various sources For data collection were as follows. Internet Sites:1. www.google.com 2. www.hdfcstd.com 3. www.indiainfoline.com 4. www.lic.com 5. www.money.com 6. www.insurance.com 7. www.bimaguru.com News Papers:The Economic Times. 1. Times of India. 2. Business standard. 3. Financial Express. Magazines:1. Business world. 2. Business Today 3. Outlook.

BOOKS 1. William , Smith and young 1998 Risk Management & Insurance : edition VII : Mcgraw hill Publication 2. Vaughan & Vaughan , (1999) , Insurance & Risk Management ; Edition I