dhfl pramerica life insurance co. ltd by maninder singh

Life Insurance

Market research and Study of DHFL PRAMERICA Life Insurance products.Presenter to: presented by:Dr.maninder Singh gill Maninder SinghMs. Ridhim pathak mba 3rd

What is Life Insurance?Life insurance is a contract between you and a life insurance company, which provides you a risk cover against death during the contract term.Buying insurance is extremely useful if you are the principal earning member in the family as in unfortunate premature demise, your family can remain financially secure because of the life that you have purchased.9/28/2015Tolani Institute of Management Studies2

History of Life Insurance

Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s. The oldest existing company in India is National Insurance Company Ltd, which was founded in 1906 and even doing business today.

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It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being set up.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were prevalent in most of these companies.

As a result, the government decided to nationalize the life assurance business in India. The Life Insurance Corporation (LIC) of India was set up in 1956 to take over around 250 life insurance companies.

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For years thereafter, insurance remained a monopoly of the public sector. The sector was finally opened up to private players in 2001.

The Insurance Regulatory & Development Authority (IRDA), an autonomous insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured.


Why to have a Life Insurance?ProtectionLiquidityTax ReliefMoney when you need it


INTRODUCTION TO DHFL PRAMERICA LIFE INSURANCEDHFL, Indias second largest private housing finance company

DHFL was established by Late Shri Rajesh Kumar Wadhawan (16th April, 1949-30th September, 2000), a visionary Indian businessman.9/28/2015Tolani Institute of Management Studies7

The Founder Chairman observed the sad truth that most Indians couldnt get a housing loan on fair terms. He believed that owning a home is a critical element to the building of an identity for every Indian. He thus set out on a mission to manage this social need.

On April 11, 1984, DHFL was established to enable access to affordable housing finance to the lower and middle income groups in semi-urban and rural parts of India..

In India DHFL has:

Branches: 74Service centers: 79Headquarter: Mumbai

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Today, DHFL has presence across 550 locations in India, and 2 international representative offices in UK & UAE. These offices deal in a variety of home loan products. DHFL offers :

Home Loan products, Plot Loan, Construction Loan, Loan against Property, Mortgage Loans, Project Loans.

The Company also offers a range of Fixed Deposit (FD) products that ensure high yield, safety and liquidity.

ABOUT DHFL PRAMERICA DHFL Pramerica Life Insurance Company Ltd. (DPLI) is a joint venture between Dewan Housing Finance Corporation Ltd. (DHFL), Indias second largest private sector housing finance company and Prudential International Insurance Holdings, Ltd. (PIIH), a fully owned subsidiary of Prudential Financial, Inc. (PFI), a financial services leader headquartered in the U.S. The life insurance joint venture agreement between the two partners was signed in July 2013.

DHFL PRAMERICA THE JOINT VENTURE

Dewan Housing Prudential International Finance Corporation Ltd. Insurance Holdings Ltd.(PIIH)

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74 %26 %

DHFL Pramerica Life Insurance Company Limited is one of the fastest growing life Insurance companies in India headquartered in Mumbai, India. We provide a wide range of life insurance solutions for individuals as well as groups taking care of our customers various financial protection needs such as securing their childs future, retirement planning, savings and wealth creation. At a Glance:>

Branches: 69Employees: 2432Assets Under Management: 1669.99 Crs. CustomersMore than 4 Million lives secured. Sum assuredIndividual: 3653.15 Crs.Group: 25,940.53 Crs.

Data as on 30th June, 2015 Shahrukh Khan: Brand ambassador of DHFL

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DHFL PRAMERICA LIFE INSURANCE REPORTS HIGHEST EVER PROFIT AT RS. 39.9 CRORE IN FISCAL YEAR 2014-15

RISING 8 PLACES, consolidates its industry position at number 13 among private life insurance companies in terms of new business premium. DHFL Pramerica Life Insurance Co. Ltd. (DPLI) reported robust growth in FY 2014-15 posting a profit of Rs. 39.9 crore against Rs. 0.9 crore in FY 2013-14.

OBJECTIVESTo find out who buys more insurance policies: Males or Females.

To find out at what age most of the people buy the insurance policy.

My next objective was to know which type of insurance policy is said thr most.

To find out which DHFL policy most of the people preferred.

To find out whether the consumers of DHFL product are satisfied or not. 9/28/2015Tolani Institute of Management Studies13

Products of DHFL PRAMERICA

Types of Life Insurance


Term Life InsuranceIncreasing/Decreasing term policiesConvertible Term Assurance PolicyLevel Term Life InsuranceRenewable term life Insurance

Endowment InsuranceJoint life endowment planMoney back endowment planMarriage endowment plan

Permanent (Whole) Life InsuranceOrdinary whole life planLimited payment whole life plan

Unit Linked Plans

Term Life InsuranceSum assured is payable only in the event of death during the term.

In case of survival, the contract comes to an end at the end of term.

Term Life Insurance can be for period as long as 40 years and as short as 1 year.

No refund of premium

Low premium as only death risk is covered.16

Since only death risk is covered, the premium is low and the contract is simple. However some companies do offer participating policies under term life insurance plans.16

DHFL PRAMRICA offers Term Insurance plan U- PROTECT Plan

DHFL Pramerica U-PROTECT is a plan designed especially for you so that you can ensure that your family is secure and leads a comfortable life, even when you are not around. It is a plan that provides pure life insurance cover for the benefit of your loved ones at a very nominal cost. So go ahead and opt for DHFL Pramerica U-PROTECT because it is you who has to secure your familys tomorrow.

Advantages:

Attractive Premium Rates for male and female livesLower premiums.Tax Benefits as applicableEnhanced Cover With optional Accidental Death Benefits Comprehensive Insurance Protection at nominal cost


Endowment InsuranceEndowment insurance plans is an investment oriented plan which not only pays in the event of death but also in the event of survival at the end of the term.

Is a contract underwritten by a life insurance company to pay a Fixed term plus Accumulated profits that are declared annually.

Premium includes 2 elements -mortality element & investment element

Minimum age at entry : 12yearsMaximum age at entry: 65yearsMaximum age at maturity : 75years

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DHFL PRAMERICA LIFE OFFERS ENDOWMENT PLAN Future Idol Gold Plus Plan

This is a traditional plan available both for normal life as well as in case of death. The age for investing in this plan is 18-50 years. Maximum maturity age is 65 years. Maximum sum assured is 5 crores and there is no risk of loss of money. Familys future is secured even after the death of the insured person(during the insurance period only).

Advantages: Guaranteed ReturnsTax Benefits under Section - 80 CGuaranteed Bonus Loan Facilty


Permanent(Whole) Life InsuranceWhole life plans are another type of endowment plan, which cover death for an indefinite period.

When the policy holder dies, the face value of the policy, known as a death benefit, is paid to the person or persons named in the life insurance policy (the beneficiary or beneficiaries).

It can be with or without profits.

If you cancel the policy after a certain amount of time has passed, the insurance company will surrender the cash value to you.


DHFL PRAMERICA OFFER WHOLE LIFE INSURANCE PLAN

Aajeevan Samriddhi plan

This plan provides you a corpus at the age of 65 years so that you can take care of your post retirement expenses. So plan today and assure yourself of a secure future.Advantages:A plan for lifetime i.e. 99 yearsIncreasing ProtectionGuaranteed AdditionsEnhanced CoverLumpsum BenefitFlexibility to borrow against the policy


Unit Linked Plans

It has emerged as one of the fastest growing insurance products.

It is a combination of an investment fund( such as mutual fund) and an insurance policy.

The premium amount is invested in the stock market and returns better income on the maturity period.9/28/2015Tolani Institute of Management Studies22

Better for long-term investment option.

ULIPs generally provide higher returns as large portion of the funds are invested in equities.

There is also flexibility and the assured can choose levels and extent of cover needed.

There is also option of switching over from one fund to another if it does not seem to be profitable.

ULIPs can be classified as Unit linked equities, bonds, real estate & money market instrumentsEquity linked only in equitiesIndex linked equity, bonds or money market instruments.


DHFL PRAMERICA OFFERS ULIP PLANS

Wealth+ AceInvest one time and reap many benefits across the policy term. Choose a policy term from 10, 15, 20 or 25 years, subject to the minimum maturity age of 18 years and maximum maturity age of 75 years.Pay the premium as a one-time lump sum amount. Your Sum Assured would be dependent on the age at entry of the Life Insured. Advantages :Provide high rate of return.Provide 105% sum assured after death.Tax benefits under section 80 c.


Ratings Of Insurance Companies In India - Top 5Companies Market Share (2014)Market Share (2015)LIC64% 74% ICICI Prudential Life Insurance Co Ltd 11.8% 8.93%SBI Life Insurance Co Ltd 15%6.99%Bajaj Allianz Life Insurance Co Ltd 13.1% 7.36%Reliance Life Insurance Co Ltd 9.8%2.96%

(Source: Insurance review)28 September 2015Tolani Institue of Management Studies25

Lic: has dropped from 74% a year before, mainly owing to entry of private players with innovative products and better sales force.ICICI Prudential Life Insurance Co Ltd : It experienced growth of 58% SBI Life Insurance Co Ltd :

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How Much Life Insurance Coverage Should Be Purchased? The Rule of Thumb is-Coverage should equal to 6 to 10 times annual income.

The other Rule is-Coverage to cover his family consumption need.

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Current News in Life Insurance Sector Life insurance premium collection down by 22%LIC premium collection down by 20.5% and 22 private life insurance premium down by 25%.

AUM of life insurer cross Rs. 15 lakh crore, due to rise in renewal premium which means that increasing number of policy holder are renewing their policies.28 September 2015Tolani Institue of Management Studies27

REVIEW OF LITERATURE

Mishra and Simita Mishra (2014) Brings the position of insurance compared with European countries, where life insurance accounts for 58% of global direct premium and non-life 42% during the year 2013. The study states that the need for insurance arises when economic activity increases, family becomes nuclear and individual become more dependent on employment.

Rudra Saibaba (2012) Conducted an enquiry on Perception and attitude of Women towards Life Insurance Policies. According to him, 75% of women perceived that life insurance plans provided coverage against future risk, 58% of women felt that insurance provided accidental coverage, nearly 41% of women considered insurance beneficial for availing housing loans, 70% of the respondents are satisfied with the services offered by the corporation.


Krishan Kumar, S. (2011)

Article highlights Life Insurance Companies rural penetration, inherent problems in implementation, growth over the years, social schemes over the year, social schemes for the rural poor and the Bima gram Program. The study indicates that nearly 55% of its new, individual policies have come from the rural sector. Its performance stands miles ahead of the private players. But amongst the insurance products available, very few are tailor - made for the rural population.

A study conducted by Raju, S. and Gurupandi, (2010) in their article Analysis of the Socio Economic Background and Attitude of the Policyholders towards Life Insurance Corporation of India, Smart Journal of Business Management Studies revealed that the study was of great help to the policyholders, as it was aimed at finding the attitude towards the services of Life Insurance Company. Hence the prospective customers, who propose to buy the insurance products and avail of the services of an insurance company for the first time, can get benefited by the best service provider.


Research Methodology

Research is an art of scientific investigation through search for new facts in any branch of knowledge. It is a moment from known to unknown.

For the research of this project, both primary data and secondary data was collected. Data includes facts and figures, which are required to be collected to achieve the objectives of the project, in order to determine the present position and satisfaction of customer of DHFL Pramerica Life Insurance.

[a) Primary DataThe data that is being collected for the first time or to particularly fulfil the objectives of the project is known as primary data.

These types of data were,The market share of DHFL Pramerica Life Insurance.The market share of other brands available in the market. Responses of consumer. Identifying pros and cons of the brand. The above primary data were collected through responses of consumer was conducted through questionnaires prepared for them.


Secondary DataSecondary data are that type of data, which are already assembled and need not to collected from outside.

These types of data were:

Company Profile Product Profile Competitors Profile The aforesaid data were collected through Internet and companys financial report.

The survey has been done on 50 respondents including general public as well as DHFL customers.


Data Analysis and interpretation9/28/2015Tolani Institute of Management Studies32

9/28/2015Tolani Institute of Management Studies33Classes (Age)No. of Respondents% of Respondents18-244824-35193835-45163245-5581655-6536

ANALYSIS:Above diagram consist five classes of different age groups. Here, 19 customers belongs to 25-34 age group, 16 customers fall in the age group 35-44 years.Other 8 customers are in the class 45-54 years. The age group of 18-24 consists 4 customers and remaining 3 customers fall under age group 55-65 years.Here majority of the customers belong to the group 25-34 years.

9/28/2015Tolani Institute of Management Studies34Gender NO of respondents% of respondentsMales3570%Females1530%Total 50100%

ANALYSIS:Above diagram consist of two groups of respondents. Here 35 respondents belong to male category i.e. 70% and 15 respondents are females i.e. 30%

Do you think it is essential to have Life Insurance? YesNoTotalNo. of Respondents45550% of Respondents9010100

ANALYSIS: To this question 45 respondents say YES and 5 respondents say NO.

9/28/201536Type of insurance plansNo of respondents% of respondentsTerm insurance plan1020%Endowment insurance plan2244%Whole life insurance plan1326%ULIP life insurance plan510%

ANALYSISHere in above diagram shows 10 respondents prefers Term plan i.e. 20%, 22 respondents prefer Endowment plan i.e. 44%, 13 respondents prefers whole life plan i.e. 26%, rest of 5 respondents prefers ULIP plans i.e. 10%.

What kind of services you expect from DHFL PRAMERICA insurance providers?No. of Respondents% Of RespondentsEasy access ability to Deposit Center2040Time to time premium collection816Provision in case of Dues612Bonus & other schemes1632TOTAL50100

ANALYSIS: Out of total 50 respondents 40% like to have easy accessibility to deposit center as a prime concern, 32% like to have bonus schemes and remaining 16% & 12% respondents say, They need time-to-time premium collection and provision in case of dues as a concern before choosing insurance provider.

9/28/2015Tolani Institute of Management Studies38Policy nameNo of respondents% of respondentsAajeewan samriddhi 816%Future idol gold plus2550%U- protect1020%Wealth + Ace714%

The above diagram shows 8 respondents purchased Aajevan samriddhi plan i.e. 16%, 25 respondents purchased future idol gold plus i.e. 50%, 10 respondents purchased U-protect i.e. 20%, rest of the 7 respondents purchased Wealth + Ace i.e. 14%.

Why did you choose DHFL Pramerica Life Insurance?

No. of Respondents% Of RespondentsROI1836Peer Pressure1530Tax Benefit1020Security /safety24Low Premium510TOTAL50100

ANALYSISThe above diagram shows 36% of respondents choose because of goodreturns, 30% because of peer pressure and remaining 34% opt because of tax benefit, safety and affordable premium respectively.

9/28/2015Tolani Institute of Management Studies40Satisfaction levelNo of respondents% of respondentsVery satisfied1428%satisfied2040%Average1224%Not satisfied612%

ANALYSIS: 40% of people are satisfied with the policy they have purchased. 28% are very satisfied, 24% feel its average and rest 6% are not satisfied.

If not DHFL which companys policy would you prefer to buy.

CompaniesNo. of Respondents% of RespondentsLIC1020Bajaj Allianz510Tata AIG36Max Life Insurance816HDFC Life Insurance816ICICI Prudential Life Insurance612SBI510

ANALYSIS: This shows that maximum people prefer to invest in renowned companies like LIC,MAX and HDFC and new private firms are less trusted by people.

OBSERVATIONS AND FINDINGSOut of total 50 respondents 19 customers belongs to 25-34 age group.70% respondents belong to male category 90% people feel that it is essential to have a life insurance policy.44% respondents prefer Endowment plan. Out of total 50 respondents 40% like to have easy accessibility to deposit center as a prime concern.25 respondents purchased future idol gold plus i.e.50%The above diagram shows 36% of respondents choose because of goodreturns40% of people are satisfied with the policy they have purchasedMaximum people prefer to invest in renowned companies like LIC,MAX and HDFC and new private firms are less trusted by people.

Recommendations and SuggestionsThere is scope to sale insurance policy by concentrating on age group 18-24 years here potential of customers are there.(Example. Software professional, BPO employees, and professionals). DHFL Pramerica Life Insurance should try to build trust among the public by making people aware of their investment is safe, high return on investment, tax benefits.DHFL Pramerica Life Insurance should introduce attractive policies & also attractive bonus on policies to attractive more potential customers.

Conclusion

After conducting market research for DHFL Pramerica Life Insurance Company we came to know different needs of consumers, their valuable suggestions, responses to the different questions. With this information we can conclude that there is good market awareness about DHFL Pramerica Life Insurance Company in the market.Customer satisfaction level of most respondents is higher for DHFL Pramerica Life Insurance Company, which is seen through the survey. Most of the consumers like the product and services of DHFL PRAMERICA LIFE INSURANCE.

Future Idol Gold Plus plan is the best-sold plan in market by DHFL Pramerica Life Insurance. This conveys that the customers are switching more towards retirement plan.

REFERENCESwww.irda.comwww.licindia.com www.hdfcinsurance.comwww.businessindiaonline.com www.maxnewyorklife.comwww.dhflpramerica.comwww.iciciprulife.com

FREEPRESS JOURNALIIFL (indiainfoline.com)FORBES INDIA MAGAZINESMART JOURNAL OF BUSINESS MANAGEMENT STUDIES

ANNEXURE1. Personal detail

Name:

Age:18-24 25-34___35-4445-54____55 and abovePhone No.

Email.

Office Address: -

Residential Address: -

2. Do you think is it essential to have Life Insurance? YES____NO____3. Which are the companies you invested your money for Life Insurance?a) Dhfl pramerica Life Insuranceb) LICc) Bajaj Allianz d) Tata AIGe) Max New York Life Insurance f) HDFC Life Insuranceg) ICICI Prudential Life Insuranceh) SBI

4. Why did you choose DHFL Pramerica Life Insurance? a) ROIb) Peer Pressure c) Tax Benefitd) Security /safety e) Low Premium

5. Which of the following planed you is insured?a) Aajeevan Samriddhi Planb) U- Protectc) Future Idol Gold Plus6. What kind of services you expect from insurance provides?a) Easy access ability to Deposit Centerb) Time to time premium collection c) Provision in case of Dues (Policy Lapse)d) Bonus & other schemes

7. How will you rate the services given by DHFL Pramerica Life Insurance? a) Poorb) Averagec) Goodd) Excellent

8. What difference you find between DHFL Pramerica & your previous Insurance provider.a) Good Returns (HIGHEST) b) Effective Service/Liquidity c) Tax Planningd) Security/ Safety Benefit & Protection on your Capital9. Do have any suggestion for Dhfl pramerica Life Insurance YES___ / NO___ Please Specify:- ___________________________________________

10. In future, will you purchase policies from Dhfl pramerica Life Insurance? YES ______ NO

Get insuredThank You

dhfl pramerica life insurance co. ltd by maninder singh

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