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  • 1. 1 | P a g e TABLE OF CONTENT 1. INTRODUCTION OF INSURANCE -CHAPTER 1 PAGE NO 1.1Insurance industry in India...8 1.2 Historical Perspective........9 1.3 Insurance Regulatory and Development Authority.10 1.4 Present Scenario-Life Insurance in India.11-13 2. RESEARCH DESIGN-CHAPTER 2 2.1 Introduction................................................................................................15 2.2 Title of Study.........15 2.3 Statement of the problem........15 2.4 Objective of Study.........16 2.5 Research methodology.......16-18 3. COMPANY PROFILE OF HDFC LIFE INSURANCE-CHAPTER 3 3.1 Introduction.20-24 3.2 Joint Venture........25 3.3 Business Growth..25-26 3.4 Key Strength.26 3.5 Corporate objective...27 3.6 Analysis of financial performance28-30 3.7 Ratio Analysis...30-46 4. ORGANISATIONAL STRUCTURE OF HDFCSTANDARD LIFE-CHAPTER 4 4.1 Functional department of organization.48 4.2Organizational chart..................................................48-49 4.3 Workflow..50 5. DETAILED ANALYSIS OF PRODUCTS OF HDFC STANDARD LIFE- CHAPTER 5 5.1 Protection Plan..52-55 5.2 Childrens Plan...55-58 5.3 Retirement Plan.58-62

2. 2 | P a g e 5.4 Savings and Investment Plan....62-70 5.5 Health Plan70-72 5.6 Group Products.72-74 6. COMPANY PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE-CHAPTER 6 6.1 Introduction76-79 7.COMPARATIVE ANALYSIS OF HDFC & ICICI-CHAPTER 7 7.1 Comparison of HDFC &ICICI term insurance.81-82 7.2 Other Competitors of HDFC Life Insurance.83 a. LIC .83 b.Birla Sunlife Insurance84 c.Bajaj Allianz85 d.TATA AIG.85-86 e.ING Vyasa86 8. DATA ANALYSIS AND I NTERPRETATION-CHAPTER 8 8.1 Graphs and Analysis88-97 9. CONCLUSION AND RECOMMENDATIONS-CHAPTER-9 9.1 Conclusions and Recommendations...99-100 10.SUPPLEMENTARY PAGES 10.1 Questionaire101-103 10.2 Bibliography...104 3. 3 | P a g e INTRODUCTION OF INSURANCE 4. 4 | P a g e THE INSURANCE INDUSTRYIN INDIA With the largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 32-34 per cent annually and presently is of the order of $41 billion (for the financial year 2009-2010). Together with banking services, it adds about 7% to the countrys Gross Domestic Product (GDP). Even so nearly 65% of the Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. A large part of our population is also subject to weak social security and pension systems with hardly any old age income security. This in itself is an indicator that growth potential for the insurance sector in India is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and strengthens the risk taking ability of individuals. It is estimated that over the next ten years India would require investments of the order of one trillion US dollars. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain the economic growth of the country.(Source: www.indiacore.com) 5. 5 | P a g e HISTORICALPERSPECTIVE The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non - Indian lives, as Indian lives were considered more risky to cover. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge the same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to Triton Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of the nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during the 1920's and 1930's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over the insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create the much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State led planning and development. The non-life insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance 6. 6 | P a g e industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC). KEY MILESTONES 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers along with provident societies were taken over by the central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crore from the Government of India. INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service 7. 7 | P a g e for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products. PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA Indian insurance sector is likely to register unprecedented growth of 200% and attain a size of Rs. 2000 billion by 2009-10, in which a private sector insurance business will achieve a growth rate of 140% as a result of aggressive marketing technique being adopted by them against 35- 40% growth rate of state owned insurance companies. The aforesaid findings are made by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on `Insurance in Next 2 Years, saying that in the last couple of years, the insurance sector has grown by CAGR of around 175% and the trend will emerge still better because of potential factor. Currently, the insurance sector size is estimated at Rs.500 billion. On account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies like GIC, LIC and others have come down to 70% in last 4-5 years from over 97%. The private insurance players despite the sector is still regulated has been offering rate of return (RoR) to its policy holders which is estimated at about 35% as against 20% of domestic insurance companies. This factor is mainly responsible for hike in private insurance market share which will grow further which is why the ASSOCHAM estimates that its growth rate could even exceed 140%. Secondly, the state owned insurance companies such as LIC and GIC have limited number of policies to offer to their subscribers while in case of private insurance companies, their policy numbers are many more and the premium amount as well as the maturity period is much competitive as against those of government insurance companies. Interestingly, the private sector 8. 8 | P a g e insurance players have started exploring the rural markets in which until recently, the state owned companies had the monopoly. The Chamber has projected that in rural markets, the share of private insurance players would increase substantially as these have been able to generate a faith among their rural consumers. Estimating the potential of the Indian insurance market from the perspective of macro-economic variables such as the ratio of premium to GDP, ASSOCHAM reveals that Indias life insurance premium, as a percentage of GDP is 1.8% against 5.2% in the US, 6.5% in the UK or 8% in South Korea. ASSOCHAM findings further reveal that in the coming years, the corporate segment, as a whole will not be a big growth area for insurance companies. This is because penetration is already good and companies receive good services. In both volumes and profitability therefore, the scope for expansion is modest. The Chamber has suggested that insurers strategy should be to stimulate demand in areas that are currently not served at all. Insurance companies mostly focus on manufacturing