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SUMMER TRAINING PROJECT REPORT
ON
COMPARISON BETWEEN THE PRODUCTS OF HDFC LIFE
AND
OTHER INSURANCE COMPANIES
SUBMITTED TO:
KURUKSHETRA UNIVERSITY
KURUKSHETRA
In par!a" #$"#!""%&n #'r (& )&*r&& '#
M+B+A
S&,,!'n -./.0-./-
UNDER THE GUIDANCE OF: 0 SUBMITTED BY:0
M,+ N!)(! P$n1 Na%&: M!2(!" B(an
M+B+A 3D&p+4 R'"" N'0000000000000000
M+B+A 5r) S&%&,&r
S6a%! D&7! Da8a" In,!$& O# Mana*&%&n S$)!&, Bar6a"a9
Pan(2$"a 3Har8ana4
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ACKNOWLEDGEMENT
I would like to take this opportunity to thanks and express my gratitude to all who have
helped and made this project a success.
I would like to extend my gratitude and special thanks to MR+A1a8 C(a$(an 3C!r"&
H&a)4 for giving me an opportunity to gain experience and expertise in an esteemed
organization like HDFC L!#&. I would also like to thanks Mr+ S(a%! Ja"a"! an) Mr,+
Sar7pr&& Ka$r for extending constant guidance and support throughout the period of
Internship. Their continuous support and guidance has helped me enhance my skills both
personally and professionally.
I would also like to express my immense gratitude to all the other team members at
HDFC L!#&. The working environment of the company was very healthy and provided
me an opportunity to learn.
Further , I would wish to extend my thanks to M, NIDHI PUNJ9 Fa$"8 3MBA49
SDDIMSfor giving me an opportunity to enhance my learning and skill base in the
Insurance sector by including a two months training programme
This project has indeed given me a lot of exposure in terms of handling different kinds of
people, in particular, potential customers.
I!"I# $"%&'Trainee(
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PREFACE
)ractical knowledge is an important part of theoretical studies. %ny professional degree
remains incomplete without practical exposure. The students are re*uired to develop deep
into the intricacies of the human resource related activities.
It covers all that which remains uncovered in the classroom. It offers all that which
remains an invaluable treasure of experience. It offers an exposure to practical of
management of business organization
%s we know well that practical knowledge plays an important role in future building of
an individual. +ne can easily overcome the fear from that life in which he has to join is a
member after sometime
The research and methodology includes the research procedure, research ,research
design,sample design,data collection and finally limitations of study. The methods used
for conducting survey are by preparing a structured *uestionnaire and then taking the
views of respective respondents.
The analysis of the research data is done with the help of tabulation and diagrammatic
representation of data in respect to attitude of people towards respective facilities.
In last the findings and suggestions, which came out after going through the whole survey
of the organization are mentioned.
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LIST OF TABLES
.&+ T%$#- )%- &+.
/ Table / 01
1 Table 1 02
2 Table 2 03
3 Table 3 00
0 Table 0 04
4 Table 4 05
5 Table 5 06
7 Table 7 48
6 Table 6 4/
/8 Table /8 42
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// Table // 43
/1 Table /1 40
/2 Table /2 44
LIST OF FIGURES
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.&+ FI9:- )%- &+.
/ Fig;/ 01
1 Fig;1
02
2 Fig;2
03
3 Fig;3
00
0 Fig;0
04
4 Fig;4
05
5 Fig;5
06
7 Fig;7
48
6 Fig;6
4/
/8 Fig;/8 42
// Fig;// 43
/1 Fig;/1 40
/2 Fig;/2 44
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ABBREVATIONS
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C(ap&r / Inr')$!'n
A4 Sa&%&n '# Pr';"&% S$**&,!'n,
a4 F!n)!n* '# (& ,$)8
b( S$**&,!'n, > r&'%%&n)a!'n,
C(ap&r @ C'n"$,!'n
B!;"!'*rap(8
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INRODUCTION
STATEMENT OF PROBLEM
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This study was undertaken to identify which type of insurance plans "
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Insurance is a collective bearing of risk, $asic "uman trait is to be averse to the Idea of
risk taking. Insurance, whether related to life or non;life, it provides people with a
reasonable level of security and assurance that they will be protected in any calamity.
Insurance in modern form originated in the /2th century. arine Insurance is the oldestform of insurance followed by life and fire insurance. +riental #ife Insurance =ompany
was incorporated at =alcutta in/7/7, followed by $ombay life %ssurance =ompany in
/712 and Trion insurance company for eneral Insurance in /708, in the year /627 there
were /54 insurance companies.Insurance regulation began in India through the passing of
two acts i.e. life insurance companies %ct of /6/1 and the provident funds act of /6/1
but the first comprehensive legislation was introduced with the insurance %ct of /627
that provided strict state control over insurance business in the country. The Insuranceact was amended to allow for social control over the general insurance business. #ater on
in /652, non;life insurance business was nationalized and the eneral Insurance
$usiness '&ationalization( %ct. The business of India Insurance grew at a faster pace as
competition amongst the Indian companies. The decision of nationalization of life
insurance business took place in /604, 130 Indian and Foreign insurance provident
societies were merged and nationalized. Aith all these changes which occurred 30 years
ago came into being the #ife Insurance =orporation of India '#I=(. In the year /65/ I=
got nationalized, this resulted in the =reation of eneral #ife Insurance as a holding
company of four subsidiaries>
Na!'na" In,$ran& C'%pan8 L)+
Or!&na" In,$ran& C'%pan8 L)+
N&6 In)!a A,,$ran& C'%pan8 L)+
Un!&) In)!a A,,$ran& C'%pan8 L).
In the year 1888;8/, the Indian federal government lifted all entry restrictions for privatesector investors. Foreign investment insurance market was also allowed with 14 percent
capital. I= was converted into IndiaBs national reinsure from
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In /662, alhotra =ommittee which was headed by former Finance ecretary and :$I
overnor :.&. alhotra was formed to evaluate the Indian insurance industry and
recommend its futuredirection. The alhotra committee was set up with the objective of complementing the
reforms initiated in the financial sector.
The reforms were aimed at>
Cr&a!n* a %'r& #!!&n an) '%p&!!7& #!nan!a" ,8,&% ,$!a;"& #'r (&
r&$!r&%&n, '# (& &'n'%8+
K&&p!n* !n %!n) (& ,r$$ra" (an*&, $rr&n"8 $n)&r6a8 an)
:ecognizing that insurance is an important part of the overall financial system where itwas necessary to address the need for similar reforms
PRESENT SCENARIO 0 LIFE INSURANCE INDUSTRY IN INDIA
The life insurance industry in India grew by an impressive 35.27C, with premiumincome at :s. /048.3/ billion during the fiscal year 1884;1885. Though the total volume
of #I=Bs business increased in the last fiscal year '1884;1885( compared to the previous
one, its market share came down from 70.50C to 7/.6/C.
The /5 private insurers increased their market share from about /0C to about /6C in a
yearBs time. The figures for the first two months of the fiscal year 1885;87 also speak of
the growing share of the private insurers. The share of #I= for this period has further
come down to 50 percent, while the private players have grabbed over 13 percent.
Aith the opening up of the insurance industry in India many foreign players have entered
the market. The restriction on these companies is that they are not allowed to have more
than a 14C stake in a companyDs ownership.
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ince the opening up of the insurance sector in /666, foreign investments of :s. 7.5
billion have poured into the Indian market and /6 private life insurance companies have
been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than anyone expected.
Indians, who had always seen life insurance as a tax saving device, are now suddenly
turning to the private sector and snapping up the new innovative products on offer. ome
of these products include investment plans with insurance and good returns 'unit linked
plans(, multi E purpose insurance plans, pension plans, child plans and money back plans.
'www.wikipedia.com(
KEY MILESTONES
//-: The Indian #ife %ssurance =ompanies %ct enacted as the first statute to regulate
the life insurance business.
/-:The Indian Insurance =ompanies %ct enacted to enable the government to collectstatistical information about both life and non;life insurance businesses.
/5: -arlier legislation consolidated and amended by the Insurance %ct with the
objective of protecting the interests of the insuring public.
/?@:130 Indian and foreign insurers along with provident societies were taken over by
the central government and nationalized. #I= was formed by an %ct of )arliament; #I=
%ct /604; with a capital contribution of :s. 0 crore from the overnment of India.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
http://www.wikipedia.com/http://www.wikipedia.com/ -
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The Insurance :egulatory and
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%s per the section 3 of I:
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2. pecifying the code of conduct for surveyors and loss assessorsH
3. )romoting efficiency in the conduct of insurance businessH
0. )romoting and regulating professional organisations connected with the
insurance and re;insurance businessH
4. #evying fees and other charges for carrying out the purposes of this %ctH
5. =alling for information from, undertaking inspection of, conducting
en*uiries and investigations including audit of the insurers, Intermediaries,
insurance intermediaries and other organizations connected with the
insurance businessH
7. =ontrol and regulation of the rates, advantages, terms and conditions that
may be offered by insurers in respect of general insurance business not so
controlled and regulated by the Tariff %dvisory =ommittee under section
439 of the Insurance %ct, /627 '3 of /627(H
6. pecifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and
other insurance intermediariesH
/8. :egulating investment of funds by insurance companiesH
//. :egulating maintenance of margin of solvencyH
/1. %djudication of disputes between insurers and intermediaries or Insurance
intermediariesH
/2. upervising the functioning of the Tariff %dvisory =ommitteeH
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/3. pecifying the percentage of premium income of the insurer to finance
chemes for promoting and regulating professional organizations.
INTRODUCTION TO ORGANISATION
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ABOUT STANDARD LIFE
tandard #ife is -uropeDs largest mutual life assurance company. tandard #ife, which
has been in the life insurance business for the past /50 years is a modern company
surviving *uite a few changes since selling its first policy in /710. The company
expanded in the /6thcentury from kits original -dinburgh premises, opening offices in
other towns and ac*uitting other similar businesses.
tandard #ife =urrently has assets exceeding over J 58 billion under its management and
has the distinction of being accorded K%%%L rating conse*uently for the six years by
tandard and )oor,
Founded in /750, company supporting generation for last /56 years.
=urrently over 0 million )olicy holders benefiting from the services offered.
-uropeDs largest mutual life insurer.
LOGO OF STANDARD LIFE INSURANCE COMPANY:
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"
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E) "
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H4 "
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BOARD OF MEMBERS
Mr+ D&&pa2 S+ Par&2( ;;;;;;;;;;;;;;;;;;; =hairman of the =ompany.
Mr+ Na(an Parna;8 ;;;;;;;;;;;;;;;;;;; =hief -xecutive, -urope @ %sia of #
Mr+ N'r%an K+ S2&'( ;;;;;;;;;;;;;;;;;; =hief -xecutive in tandard #ife
Mr+ Par&,( Para,n!, ;;;;;;;;;;;;;;;;;;; -xecutive
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Mr+ A+ K+T+ C(ar! ;;;;;;;;;;;;;;;;;;;;
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=onservation ratio 'individual business( improved substantially to 7/C in
18/8;18// from 51C in 1886;/8.
2/C growth in %ssets 9nder anagement over arch 2/, 18/8 to
:s.15,/55cr from :s.18,545cr same period last year.
olvency ratio as on arch 2/st,18// was /51C as against regulatory
re*uirement of /08C.
=laim repudiation ratio for financial year 18/8;// is 2.65C, which means
settlement of 64.82C claims.
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R&!r&%&n P"an> Aith rising inflation, itDs absolutely necessary to make provisions forthe future which makes retirement plan an important financial decision. $etter knownas )ension plan, this plan takes care of financial needs after retirement by investing a part
of your savings for limited period. )ension plan provides steady income after retirementand takes care of daily needs. The pension plans offered by " )arenthood brings responsibilities and no one is better judge of that thanyou. =hild )lan is a plan specifically designed to take care of financial needs of yourchild. =hild plan provides with necessary funds that will take care of childDs education,marriage etc. $y investing small portion of your savings you secure the financial end ofyour child. =hild plan of " )opularly known as 9#I), an investment plan invests part of yoursavings in e*uity or debt market as per your preference. The objective of investment plan
is to give you returns which easily beat the rising costs since the usual returns in a bankare extremely low. 9#I)Ds offered by " lightly different from health insurance, health plan provides cover forsurgery costs, critical illness. % lump sum is paid irrespective of actual hospital bill.=ritical =are )lan and urgi =are )lan are "
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"
:etirement?)ension )lan "
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avings and Investment )lan "
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%n investment solution that provides funding vehicle to manage corpuses with
ratuity,
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E"!*!;!"!8
embers of the development agency and their spouses with>
; inimum age at the start of the policy /7 years last birthday ; aximum age at the start of policy 08 years last birthday
-mployees of the
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members
These tasks would be in addition to the usual duties of a policyholder such as>
)ayment of premiums
:eporting of claims!eeping policy holder information up to date
Training and support will be available to give guidance on how to complete the tasks
appropriately. ince these additional tasks will impose a burden on the
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The premium is collected from the policy holder. "e is allotted a certain number of
units based of his contribution. The &et %sset alue is the value of each unit of the
fund. It is found by subtracting the charges and current liabilities from the current
assets and investments and dividing this number by the total number of outstanding
units.
#et us take an example. There are /88 investors and each invests :s. /8 in a fund.
The total value of the fund is :s. /888 and each person is allotted / unit of :s /8.
&ow the money ':s. /888( is invested in the debt or e*uity market. uppose the
fund value increased by 18C. %s a result the :s. /888 invested became :s. /188.
"ence the value of every investor is now :s. /1 and not :s. /8.
UNIT LINKED VERSUS OTHER FINANCIAL INSTRUMENTS
Para%&&r, RBI B'n), F!&) D&p',!, M$$a" F$n), Un! "!n2&)
Sa#&8 H!*( H!*( M&)!$% H!*(
L!$!)!8 N'n& H!*( H!*( H!*(
R&$rn, L'6 L'6 H!*( H!*(
L!#& C'7&r / !%& a%'$n / !%& a%'$n / !%& a%'$n /. !%&,
Ta ;&n!, Ta #r&& Ta&) Ta&) Ta #r&&
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Ae find that life insurance unit linked plans is a good area to invest money in as it
provides li*uidity, safety, high returns, life cover and tax benefits in a single plan.
"
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T+T%# %I&
)+I$#-R,595
:s. 22,668 under ec. 78= and under ec. 78 === , :s.2,266 under
ec. 78
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tandards of ethics and clarity of vision. tandard #ife is a strong, financially
secure business %nd a market leader in the 9! #ife @ )ensions sector.
A4 PREFERED AND TRUSTED BRAND:
The brand has managed to set a new standard in the Indian life insurance
communication space. The first private life insurer to break the ice using the Idea
of self;respect instead of BdeathB to convey our brand proposition 'ar 9tha !e
Giyo(. Today, it is one of the few brands that customers recognize, like and prefer
to do business. oreover, $rand thought, ar 9tha !e Giyo, is the most recalled
campaign.
=( INVESTMENT PHILOSOPHY:
The =ompany follows a conservative investment anagement philosophy to
ensure that the customerBs money is looked after well. The Investment policies
and actions are regularly monitored by a formal Investment =ommittee
comprising non;executive directors and the )rincipal +fficer @ -xecutive
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to be able to deliver the service standards that the company has set for itself.
$esides the andatory training that Financial =onsultants have to undergo prior
to being licensed, they "ave developed and implemented various training
modules covering various aspects including )roduct knowledge, selling skills,objection handling skills and so on.
-4 DIVERSIFIED PRODUCT PRORTFOLIO>
"
)rotection> &eed for a sound income protection in case of your unfortunate demise
Investment> &eed to ensure long;term real growth of your money
avings> ave for the milestones and protect your savings too
)ension> &eed to save for a comfortable life post retirement
Mar2&!n* Ca%pa!*n,>
"
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BThe most successful and admired life insurance company, which means that we are the
most trusted company, the easiest to deal with, offer the best value for money, and set the
standards in the industryB+
BThe most obvious choice for allB.
Va"$&,
.Integrity
.Innovation
.=ustomer centric
.)eople =are +ne for all
.Teamwork
.Goy and implicity
B$,!n&,, O;1&!7&,
The primary objective of "
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"
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without deducting any of the survival benefit amounts which have already been paid. The
bonus is also calculated on the full sum assured.
"
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brand ambassador E r. %mitabh $acchan. "is promotion of the company builds trust
and faith in the minds of our people.
"owever the charges are very high in the plans offered by I=I=I )rudential. It is 20Cduring the first year, /0C in the next year and 2C from the third year onwards. %lso a
higher minimum premium of :s. 7888 is charged. "ence the policies are not accessible to
the lower strata of the society.
BIRLA SUN LIFE
$irla un #ife Insurance =ompany #imited is a joint venture between The %ditya $irlaroup, one of the largest business houses in India and un #ife Financial Inc., a leading
international financial services organization. The local knowledge of the %ditya $irla
roup combined with the expertise of un #ife Financial Inc., offers a formidable
protection for your future.
The %ditya $irla roup has a turnover close to :s. 22888 crores with a market
capitalization of :s. 02388 crores 'as on 2/st arch 1885(. It has over 51888 employees
across all its units worldwide. It is led by its =hairman ; r. !umar angalam $irla.
ome of the key organizations within the group are "indalco and rasim.
un #ife Financial Inc. and its partners today have operations in key markets worldwide,
including =anada, the 9nited tates, the 9nited !ingdom, "ong !ong, the )hilippines,
Gapan, Indonesia, India, =hina and $ermuda. It had assets under management of over
9U232 billion, as on 2/st arch 1885. The company is a leading player in the life
insurance market in =anada.
$eing a customer centric company, $#I has invested heavily in technology to build
world class processing capabilities. $#I has covered more than a million lives since
inception and its customer base is spread across more than /888 towns and cities in India.
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%ll this has assisted the company in cementing its place amongst the leaders in the
industry in terms of new business premium income. The company has a capital base of
018 crores as on 2/stGuly, 1885.
Its Flexi #ife #ine )lan offers life long insurance cover till the policy holder is /88 years
of age. There are guaranteed returns of 2C p.a. net of policy charges after every 0 years
from the eleventh policy year onwards. "owever the charges are very high. The initial
charges for the first year are 40C. "ence the fund value is greatly reduced.
BAJAJ ALLIAN
$ajaj %llianz is a joint venture between %llianz % with over //8 years of experience in
over 58 countries and $ajaj %uto, a trusted automobile manufacturer for over 00 years in
the Indian market. Together they are committed to offering you financial solutions that
provide all the security you need for your family and yourself. $ajaj %llianz is the
number one private life insurer for the year 1880 E 1884. It is leading by 57 crores. It has
experienced a whopping growth of 1/4C in the last financial year.
The company has sold /2, 88,888 policies and is backed by 008 offices across India. It
offers travel insurance, motor insurance, home insurance, health and corporate insurance.
The mortality charges are lower than "
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The company offers high coverage plans at low cost. There is a plan even for a policy
term of / year. Sour family can continue to enjoy their current lifestyle even in the case
of something happening to you. These plans are very flexible and "
#arge amount of competition '/7 players in the market(
+ther brands are well advertised and have higher recall value
#I= is considered a safer option
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Face competition from banks and mutual funds
"igh premium policies are difficult to market
Incorrect perception about insurance
Interested prospects might have a lack of time and postpone investments
=ustomers get defensive if you cold call
hort term plans are available only at large premium
=ustomers do not have risk appetite to invest in shares
ome prospects have already invested and are not interested in further
investments
=onsumers donDt want to undertake medical examinations
#arge amount of documentation
=ustomers do not like their money locked up for many years
#ack of awareness about the unit linked funds in the market
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=ohen and ebstad '1884( highlight the need to carefully study clientsD insurance needs
before introducing a new product, where market research can include studying
'i( =lients needs
'ii( pecific products
'iii( The size of the potential market
%nalyzing demand studies from 9ganda, alawi, )hilippines, ietnam, Indonesia, #ao).
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innovative, cost;effective ways and channels of communication and financial educationtailored to cater to low;educated, illiterate people.
% serious constraint to the uptake of insurance has to be trust. The contrast of micro
insurance with micro credit helps to see the difference between these two micro insuranceactivities. In the latter, money is offered first, and then lenders have to find ways ofensuring that clients repay the loan E lenders have to find ways to ensure they can trustthat repayment by clients will take place. In insurance, clients first part with their money,and then they have to trust the insurer that they will indeed get money 'or a service, suchas health care( when problems arise. #enders have to trust borrowersH while insurers haveto be trusted by clients.:adermacher et al. '1884( underline the importance of trust along these two dimensions>first, that the insurer is willing to make payments to clientsH and second, that the insurer isable to deliver the payments. Trust is also essential for customer retention. Trust ofindividuals and communities can be built by education, building on existing structures, or
through careful marketing and sales strategies.c=ord '1887( underlines that a fine balance is re*uired between ac*uisition of newtechnologies 'which decrease costs by making the insurance product less labor intense(and human contact to educate policy holders and build trust.
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188/a(. ore educated households have been found to be the ones who are more likely totake up insurance '=hankova et al., 1887H ine et al., 1885b(.
+vercoming this constraint re*uires a dual effort to improve communication and financial
education on riskpooling, insurance and rights of policy;holders tailored to low;educatedand illiterate individuals on the one hand, and simplify policies on the other hand.=lientsD understanding of insurance products is key not only to take up of insurance, butalso to use and appreciation of the policy as well as satisfaction with the insurance. Theimpact of microinsurance on the welfare of the poorest households strongly depends onwhether households are aware of the benefits of the insurance, can therefore make fulluse of it, and continue to stay members of their insurance policy. "owever, keepingproducts affordable implies keeping costs low. Therefore, more research is needed oninnovative, cost;effective ways and channels of communication and financial educationtailored to cater to low;educated, illiterate people.
% serious constraint to the uptake of insurance has to be trust. The contrast of insurancewith microcredit helps to see the difference between these two insurance activities. In thelatter, money is offered first, and then lenders have to find ways of ensuring that clientsrepay the loan E lenders have to find ways to ensure they can trust that repayment byclients will take place. In insurance, clients first part with their money, and then they haveto trust the insurer that they will indeed get money 'or a service, such as health care(when problems arise. #enders have to trust borrowersH while insurers have to be trustedby clients.
:adermacher et al. '1884( underline the importance of trust along these two dimensions>first, that the insurer is willing to make payments to clientsH and second, that the insurer isable to deliver the payments. Trust is also essential for customer retention. Trust ofindividuals and communities can be built by education, building on existing structures, orthrough careful marketing and sales strategies.
c=ord '1887( underlines that a fine balance is re*uired between ac*uisition of newtechnologies 'which decrease costs by making the insurance product less labor intense(and human contact to educate policy holders and build trust.
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RESEARCH METHODOLOGY
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SCOPE OF THE STUDY
The study concentrates to know the comparison between the products of "
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project that stipulates what information needs to be collected, from which sources and by
what methods.
SAMPLING
ampling refers to the method of selecting a sample from a given universe with a view to
draw conclusions about that universe. % sample is a representative of the universe
selected for study.
SAMPLE SIE
The sample size for the survey conducted was -. r&,p'n)&n,+ This sample size was
taken on 60C confidence level and 4 significant level.
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The data was collected over a period of six to seven weeks within G%9 city using
well structured *uestionnaire. The respondents were contacted at their respective retail
outlets in various parts of the city.
P"an '# (& )aa ana"8,!,:
)lanning and analysis of data can be done through three steps. They are editing coding
tabulation. These three are very important in analyzing the data.
E)!!n*:
-diting is the process of examining errors when there is some inconsistency in the
responses as entered in the *uestionnaire or where it contains partial or vague answers.
C')!n*:
=oding is necessary to carryout the subse*uent operations of tabulating and analyzing
data. If coding is not done, it will not be possible to reduce a large number ofheterogeneous responses into meaningful categories with the result that the analysis of
data would be weak and ineffective and without proper focus.
Ta;$"a!'n:
Tabulation comprises sorting of the data into different categories and counting the
number of cases that belong to category the simplest way to tabulate is to count the
number of responses to one *uestion. This is called uni variate tabulation. Ahere two or
more variables are involved in tabulation, it is called bi variate or multivariate tabulation.
In marketing research projects and generally both types of tabulation are used.
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DATA COLLECTION TECHNIUES
TYPE OF DATA COLLECTED
There are two types of data used. They are primary and secondary data. )rimary data is
defined as data that is collected from original sources for a specific purpose. econdary
data is data collected from indirect sources. 'ource> :esearch ethodology, $y =. :.
!othari(
PRIMARY SOURCES
These include the survey or *uestionnaire method, telephonic interview as well as the
personal interview methods of data collection.
SECONDARY SOURCES
These include books, the internet, company brochures, product brochures, the company
website, competitorDs websites etc, newspaper articles etc.
STATISTICAL TOOLS USED FOR INTERPRETATION AND ANALYSIS
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Tables were used for the analysis of the collected data. The data is also neatly presented
with the help of statistical tools such as graphs and pie charts. )ercentages and averages
have also been used to represent data clearly and effectively.
LIMITATION OF STUDY
% few limitations and constraints came in way of conducting the present study, under
which the researcher had to work are as follows>
%lthough all attempts were made to make this an objective study, biases on the
part of respondents might have resulted in some subjectivity.
Though, no effort was spared to make the study most accurate and useful, the
Ksample izeL selected for the same may not be the true representative of the
customer community, resulting in biased results.
This being my maiden experience there is possibility of errors and mistakes.
=ustomers are very busy and have no time to attend the call.
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ANALYSIS AND INTERPRETATION
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ANALYSIS > INTERPRETATION
A SURVEY ON THE LIFE INSURANCE INDUSTRY IN INDIA
/4 W(a !, (& a*& *r'$p '# ,$r7&8&) r&,p'n)&n,
T%$#- /
A*& *r'$p N'+ '# R&,p'n)&n,
/ 0 -? 8&ar, /-
-@ 0 5? 8&ar, @
5@ 0 = 8&ar, =@
?. 0 @. 8&ar, -=
M'r& (an @. 8&ar, @
47%
25%
17%
9% 2% 18 - 25 years
26 - 35 years
36 - 49 years
50 - 60 years
More than 60 years
FIG /:
Ana"8,!,
From the chart above we find that 35C of the respondents fall in the age group of /7 E 10
years, 10C fall in the age group of 14 E 20 years and /5C fall in the age group of 24 E 36
years.
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Therefore most of the respondents are relatively young 'below 14 years of age(. These
individuals could be induced to purchase insurance plans on the basis of its tax saving
nature and as an investment opportunity with high returns.
-4 W(a !, (& *&n)&r '# ,$r7&8&) r&,p'n)&n,
T%$#- 1>
Particulars No. o R!s"o#$!#ts
Ma"& /5
F&%a"&
FIG -:
Male Female0
50
100
150
200
250
193
77
No. of Respondents
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54 W(a !, (& pr'#!"& '# ,$r7&8&) r&,p'n)&n,
T%$#- 2>
C$,'%&r pr'#!"& N'+ '# r&,p'n)&n,
S$)&n @-
H'$,&6!#& ?
W'r2!n* Pr'#&,,!'na" //@
B$,!n&,, =
S&"# E%p"'8&) -=
G'7&rn%&n ,&r7!& &%p"'8&& /=
FIG 5:
23%
2%
43%
18%
9%5%
Student Housew!e
"or#n$ ro!essonal &usness
Sel! 'm(loyed )o*ernment ser*+e
em(loyee
Ana"8,!,:
From the chart above it can clearly be seen that 32C of the respondents are working
professionals, 12C are students and /7C are into business. Therefore the target market
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would be working individuals in the age group of /7 E 10 years having surplus income,
interested in good returns on their investment and saving income tax.
=4 H'6 %an8 r&,p'n)&n, (a7& "!#& !n,$ran& p'"!8 !n (&!r na%&
T%$#- 3>
P&r,'n 6(' (a7& "!#& !n,$ran& p'"!8
Ses /82&o /45
FIG =:
38%
62% ,es
o
ANALYSIS :
This graph shows that out of total 158 respondents only /82 or 27C respondents have life
insurance policy in their name. :est all donDt have a single policy in their name. o there
is a very big scope for life insurance companies to cover these people. o in future
business of life insurace will gro further.
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?4 W(a !, (& %ar2& ,(ar& '# "!#& !n,$ran& '%pan!&,
T%$#- 0>
LIFE INSURER NUMBER OF POLICIES
HDFC STANDARD LIFE =
BIRLA SUN LIFE 5
AVIVA LIFE INSURANCE @
BAJAJ ALLIAN
LIC ??
TATA AIG @
ICICI PRUDENTIAL /-
ING VYSYA @
BHARTI AA -
OTHERS -
FIG ?:
0%10%20%30%40%50%60%
4%3%6%7%
53%
6%11%6%2% 2%
Company Name
Percentage
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Ana"8,!,:
In India, the largest life insurance company is #ife Insurance =orporation of India. It has
been in existence in India since /604 and is completely owned by the overnment of
India. Today the organization has grown to 1837 offices serving /7 crore policies and hasa corpus of over 238888 crore I&:.
@4 H'6 %$( !, (& ann$a" pr&%!$% pa!) ;8 !n)!7!)$a", #'r "!#& !n,$ran&
T%$#- 4>
FIG @:
39%
25%17%
10%
4%2% 3%
.s/ 5000 - .s/ 10000 .s/ 10001 - .s/ 15000
.s/ 15001 - .s/ 25000 .s/ 25001 - .s/ 50000
.s/ 50001 - .s/ 60000 .s/60001 - .s/ 80000
.s/ 80001 - .s/
100000
Pr&%!$% pa!) 3p+a+4 N'+ '# r&,p'n)&n,
R,+ ?... 0 R,+ /.... =.
R,+ /.../ 0 R,+ /?... -@
R,+ /?../ 0 R,+ -=.. /
R,+ -?... 0 R,+ ?.... /.
R,+ ?.../ 0 R,+ @.... =
R,+@.../ 0 R,+ .... -
R,+ .../ 0 R,+ /..... 5
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Ana"8,!,:
From the chart above we find that, 26C of the respondents surveyed pay an annual
premium less than :s. /888/ towards life insurance. 10C of the respondents pay an
annual premium less than :s. /088/ and /5C pay an annual premium less than :s.
10888. "ence we can safely say that "
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4 W(!( ar& (& p'p$"ar "!#& !n,$ran& p"an,
T%$#- 5>
FIG :
39%
45%
6%
3% 7% erm nsuran+e
lans
'ndowment lans
enson lans
hld lans
a Sa*n$ lans
Ana"8,!,:
T8p& '# P"an N'+ '# R&,p'n)&n,
T&r% In,$ran& P"an, /.?
En)'6%&n P"an, /--
P&n,!'n P"an, /@
C(!") P"an,
Ta Sa7!n* P"an, /
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From the chart given above we can clearly see that 30C of the respondents hold
endowment plans and 26C of the respondents hold term insurance plans. -ndowment
plans are very popular and serve two purposes E life cover and savings.
4 Ar& 8'$ a6ar& '# (& n&6 $n! "!n2&) !n,$ran& p"an, !n (& %ar2&
T%$#- 7>
A6ar&n&,, '# Un! L!n2&) P"an, N'+ '# R&,p'n)&n,
Y&, /?=N' //@
FIG :
57%
43%
,es
o
Ana"8,!,:
From the chart given above we find that 05C of the respondents are aware of unit linked
life insurance plans and 32C are not aware of such plans. These plans should be
promoted through advertising
Ahen the policy matures the individual gets his fund value. The value of his fund is
calculated by multiplying the net asset value and number of units held by them on that
day.
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4 H'6 %$( 6'$") 8'$ ;& 6!""!n* ' ,p&n) p&r ann$% !# 8'$ 6&r& ' *' #'r an
!n7&,%&n
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0%5%10%15%20%25%30%35%40%45%
15%
27%
41%
15%
2%
Insurance Premium
Percentage
Ana"8,!,:
From the graph above, we can clearly see that 3/C of the respondents would be willing
to spend between :s. /888/ E :s. 10888 for life insurance. 15 C would be willing to
spend between :s. 488/ E :s. /8888 per annum. +nly /0C would be willing to spend
more than :s. 10888 per annum as life insurance premium.
Ae could say that the maximum premium payable by most consumers is less than :s.
10888 p.a. This is further reduced as most customers have already invested with #I=,
I=I=I )rudential, $irla un #ife, $ajaj %llianz etc.
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/.4 W(!( a'r)!n* ' 8'$ !, an !)&a" p'"!8 &r%
T%$#- /8>
I)&a" p'"!8 &r% N'+ '# r&,p'n)&n,
5 0 ? 8&ar, ?/
@ 0 8&ar, =/
/. 0 /? 8&ar, ?
/@ 0 -. 8&ar, 5
-/ 0 -? 8&ar, -=
-@ 0 5. 8&ar, ?
M'r& (an 5. 8&ar, 5
W('"& "!#& P'"!8 /5
FIG /.:
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0%
10%
20%
30%
40%
19% 15%
35%
14%9%
2% 1% 5%
Years
Percentage
Ana"8,!,:
From the chart given above it can be seen that 20C of the respondents prefer a policy
term of /8 E /0 years, /6C prefer a term of 2 E 0 years and /0C prefer a term of 4 E 6
years. This means that "
A)7&r!,&%&n, 5?
H!*( r&$rn, =
A)7!& #r'% #r!&n), =@
Fa%!"8 r&,p'n,!;!"!!&,
O(&r, /@
FIG //:
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13%
31%
17%
33%
6% d*ertsements
H$h returns
d*+e !rom !rends
Famly
res(onsltes
thers
Ana"8,!,:
From the chart above it can be seen that 22C of the respondents purchase life insurance
to secure their families, 22C take life insurance to get high returns, /5C purchase
insurance on the advice of their friends and /2C purchase insurance because of the
influence of advertisements.
/-4 In 6(!( 2!n) '# '%pan8 6'$") 8'$ pr&r ' %a2& a p$r(a,& '# !n,$ran&
T%$#- /1>
T8p& '# C'%pan8 N'+ '# R&,p'n)&n, P&r&na*&
G'7&rn%&n O6n&)
C'%pan8 /- =
P$;"! L!%!&) C'%pan8 @- -5
Pr!7a& C'%pan8 = /
F'r&!*n C'%pan8 5- /-
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FIG /-
)o*ernment wned om(any0%
10%
20%
30%
40%
50%
60%70%60%
29%
7%4%
Type of Company
No. of Repondents (%)
Ana"8,!,:
From the graph above we find that 48C of the respondents preferred to purchase
insurance from a government owned company, 16C of the respondents preferred to
purchase insurance from a public limited company and only 3C of the respondents
preferred a foreign based company. "eavy advertising through television, newspapers,
magazines and radio is re*uired.
/54 W(a 2!n) '# r&$rn, 6'$") 8'$ "''2 a #r'% 8'$r !n7&,%&n,
T%$#- /2>
Ep&&) R&$rn, N'+ '# r&,p'n)&n,
L&,, (an ? ?
? 0 /. 5
// 0 /? =@
/@ 0 -. =
-/ 0 -? =@
-@ 0 5. -
5/ 0 =. --
=/ 0 ?. /=
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M'r& (an ?. --
FIG /5:
0%2%4%6%8%
10%12%14%16%18%20%
2%
14%17% 18% 17%
10%8%
5%
8%
Expected Returns
No. of Respondents (%)
Ana"8,!,:
From the chart above it can clearly been seen that /7C of the respondents would like /4
E 18C returns, /5C would like returns between 1/ E 10C and /5C would like returns of
// E /0C on their investments. Therefore the average return on investment should be at
least /4 E 18 C.
ost consumers are willing to adapt to some amount of risk but still want some
guaranteed returns. Therefore the bulk of investment should be made in the balanced fund
with 08C debt and 08C e*uity. The returns on the ecure Fund are guaranteed as these
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involve investment is government securities and the debt market. $ut the returns on these
instruments are low '7 E /8C(. If the company invests in shares, returns are higher '26C(
but correspondingly risk borne by the policy holder is also higher. Therefore a good
combination of the two instruments is often a wise choice.
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FINDINGS AND SUGGESTIONS
FINDINGS:
It revels that 35Cof respondents belongs to /7 E 10 age group, 10C of
respondents belongs to 14 E 20 age group, and /5C of respondents belong to 24 E
36 age group.
The survey that maximum 32 Cof the respondents are in working professionals,
+ut of 158 respondents 27C of the respondents have life insurance policy
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Insurance has grown to 1837 offices serving /7 crore policies and has a corpus of
over 238888 crore I&:.
26C of the respondents surveyed pay an annual premium less than :s. /888/
towards life insurance. 10C of the respondents pay an annual premium less than
:s. /088/ and /5C pay an annual premium less than :s. 10888. /6C of the
respondents pay more than :s. 10888 as premium
30C of the respondents hold endowment plan
05C of the respondents are aware of unit linked life insurance plans and 32C arenot aware of such plans.
3/C of the respondents would be willing to spend between :s. /888/ E :s. 10888
for life insurance.
20C of the respondents prefer a policy term of /8 E /0 years, /6C prefer a term
of 2 E 0 years and /0C prefer a term of 4 E 6 years
22C of the respondents purchase life insurance to secure their families
48C of the respondents preferred to purchase insurance from a government
owned company
/7C of the respondents would like /4 E 18C returns
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SUGGESTIONS AND RECOMMENDATIONS
%dvertise about the company and its products E it motivates individuals to
purchase insurance
=reate a positive perception about insurance
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peak about the good features a plan offers like high returns, life cover, tax
benefits, indexation, accident cover while prospecting customers
Try to sell the product?plan which the consumer re*uires and not the plan where
the advisors benefit is higher
Improve the efficiency in operations
$ring out policies with small premiums payable for short periods of time E :s.
0888 E :s. /8888 per annum for /8 years
%ttract the youth of India with higher returns on investment as returns are the
motivating factor which influence purchase of insurance
)romote insurance in colleges and corporate houses
)romote "
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.
CONCLUSION
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CONCLUSION
"
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BIBLIOGRAPHY
%( $++!> =.:. !othari , :esearch ethodology
$( G+9:&%#?%%VI&-?&-A)%)-:> Insurance Aorld, The
+utlook oney, ecrets of uccessful Insurance ales by r. Gack !inder.
=( A-$ )%-> www.indiacore.com ,www.hdfclife.com, www.tata;aig;
life.com ,www.birlasunlife.com ,www.iciciprulife.com , www.lic.co
www.bajajallianz.com
http://www.hdfclife.com/http://www.hdfclife.com/http://www.lic.co/http://www.lic.co/http://www.bajajallianz.com/http://www.bajajallianz.com/http://www.hdfclife.com/http://www.lic.co/http://www.bajajallianz.com/ -
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UESTIONNAIRE/4 W(a !, (& a*& *r'$p '# ,$r7&8&)r&,p'n)&n,
o / 0 -? 8&ar,
o -@ 0 5? 8&ar,
o 5@ 0 = 8&ar,
o ?. 0 @. 8&ar,
o M'r& (an @. 8&ar,
-4 W(a !, (& *&n)&r '# ,$r7&8&) r&,p'n)&n,
o Ma"&
o F&%a"&
54 W(a !, (& pr'#!"& '# ,$r7&8&) r&,p'n)&n,
o S$)&n
o H'$,&6!#&
o W'r2!n* Pr'#&,,!'na"
o B$,!n&,,o S&"# E%p"'8&)
o G'7&rn%&n ,&r7!& &%p"'8&&
=4 H'6 %an8 r&,p'n)&n, (a7& "!#& !n,$ran& p'"!8 !n (&!r na%&
o Y&,
o N'
?4 W(a !, (& %ar2& ,(ar& '# "!#& !n,$ran& '%pan!&,
o HDFC San)ar) L!#&
In,$ran&
o B!r"a S$n L!#& In,$ran&
o A7!7a L!#& In,$ran&
o Ba1a1 A""!an L!#& In,$ran&
o LIC
o Taa AIG L!#& In,$ran&
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o ICICI Pr$)&n!a" L!#&
In,$ran&
o ING V8,8a L!#& In,$ran&
o B(ar! Aa L!#& In,$ran&
o O(&r, 3,p&!#8 na%&(o
o @4 H'6 %$( !, (& ann$a" pr&%!$% pa!) ;8 !n)!7!)$a", #'r "!#& !n,$ran&o
o R,+ ?9... R,+ /.9...
o R,+ /.9../ R,+ /?9...
o R,+ /?9../ R,+ -?9...
o R,+ -?9../ R,+ ?.9...
o R,+ ?.9../ R,+ @.9...
o R,+ @.9../ R,+ .9...
o R,+ .9../ R,+ /9..9...
o M'r& (an R,+ /9..9... 3,p&!#8 pr&%!$%4
o
o 4 W(!( ar& (& p'p$"ar "!#& !n,$ran& p"an,o
o T&r% a,,$ran&
o En)'6%&n P"an,
o P&n,!'n P"an,
o C(!") P"an,
o Ta ,a7!n* p"an,
o
o
o 4 Ar& 8'$ a6ar& '# (& n&6 $n! "!n2&) !n,$ran& p"an, !n (& %ar2&
o
o Y&, o N'
o
o 4 H'6 %$( 6'$") 8'$ ;& 6!""!n* ' ,p&n) p&r ann$% !# 8'$ 6&r& ' *'
#'r an !n7&,%&n
o
o
o //4W(a %'!7a&, 8'$ ' p$r(a,& !n,$ran&
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o A)7!& #r'% #r!&n), o Fa%!"8 r&,p'n,!;!"!!&,
o O(&r, 3,p&!#84
o
o
o
o /-4 In 6(!( 2!n) '# '%pan8 6'$") 8'$ pr&r ' %a2& a p$r(a,& '#
!n,$ran&
o
o G'7&rn%&n '6n&) '%pan8
o P$;"! L!%!&) C'%pan8
o Pr!7a& C'%pan8
o F'r&!*n ;a,&) '%pan8
o
o
o
o /54 W(a 2!n) '# r&$rn, 6'$") 8'$ "''2 a #r'% 8'$r !n7&,%&n,
o
o L&,, (an ?
o @ 0 /.
o // 0 /?
o /@ 0 -.
o -/ 0 -?
o -@ 0 5.
o 5/ 0 =.
o =/ 0 ?.
o M'r& (an ?.
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o