new project of hdfc life -

7/25/2019 NEW Project of Hdfc Life -

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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.


55/82

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


56/82

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


57/82

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.


58/82

?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


59/82

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


60/82

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 "


61/82

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, /


62/82

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


64/82

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.


65/82

/.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 /.:


66/82

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 //:


67/82

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- /-


68/82

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 ?. /=


69/82

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


70/82

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.


71/82

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


72/82

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


73/82

SUGGESTIONS AND RECOMMENDATIONS

%dvertise about the company and its products E it motivates individuals to

purchase insurance

=reate a positive perception about insurance


74/82

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 "


75/82

.

CONCLUSION


76/82

CONCLUSION

"


77/82


78/82

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/


79/82

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&


80/82

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&


81/82

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 ?.


82/82

o

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