report on ulip plans

8/8/2019 Report on Ulip Plans

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DECLARATION

This is to certify that Sonia Rani student of Geeta Institute of

management & Technology, kanipla studying in M.B.A Roll No.

3609853 has undergone summer traning of HDFC STANDERD LIFE

INSURANCE, KARNAL for six weeks and have submitted a project

report on the title COMPARISION OF ULIP PLAN as assigned by the

company for partial fulfillment of degree of M.B.A to Kurukshetra

University, Kurukshetra.

I hereby declare that the work done by me on project report

titled COMPARISION OF ULIP PLAN is my own work and has

been carried out under the able guidance of Mr. Himmat Singh

(Manager Channel Development), HDFC SLIC Branch (Kurukshetra).

is original and no copy of it has been submit to any other

Universities for award of any other degree or on similar title and

topic.

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ACKNOWLEDGEMENT

There is race for existence in which only fittest succeed. In

every walk of life, the intellectual work of a candidate is adjusted

not only by the division, grade or marks obtained in the examination

but also practical work matters a lot. So as for practical fulfillment, I

joined the practical field. It would not have been possible for me to

accomplish without any help or contribution.

My Sincere thanks are to all the members of HDFCSL, KARNAL

who have lightened me with their precious guidance during my

training. I am also grateful to the management of this organization

who has given me a chance to undergo training in their

organization.

I am deeply thankful to my teacher Dr. Pooja Malhotra (HOD)

MBA department GIMT, kanipla for their valuable contribution during

the academic session & guidance in preparation of this project

report.

I also want to pay my sincere regards to Mr. Himmat Singh, who

allow me to do this project in HDFC Standar Life successfully. I

extend my sincere gratitude towards my parents, who have always

encouraged me and gave suggestions as how to work on project.

They always stand by me in solving all my queries. Their support

has always motivated me.

Above all it gives me immense pleasure to thank authors of various books those

indirectly helped me in gaining knowledge about insurance industry.

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PREFACE

Indian insurance industry is emerging rapidly after year 2000. To

survive in this highly competitive scenario, managers are being

pressured to improve quality, recruit quality and skilled people and

eliminate inefficiency. The collective efforts of the employer,

managers and other relative people assume relevance in thiscontext. And this is where marketing management and human

resources play important role.

Recruitment is very important in todays scenario. But still it is

ignored and considered as a secondary aspect. In case of insurance

industry recruitment only decide success or failure of company.

I have made an attempt to study this aspect of Insurance industry in

my project. In this project, recruitment for developing channel at

HDFCSL is considered. I have tried to find out how exactly

recruitment is very important for this firm as well as this industry,

which are the different strategies firm use to recruit quality people

and so on. It is more qualitative rather than a quantitative data.

To get knowledge of above question and to fulfill the requirements

for my project on Channel Development at HDFCSL, I have worked

in HDFCSL and searched some internet sites.

On the basis of my study, I have included following topics as the

important aspect of Channel Development at HDFCSL.

Insurance industry introduction.

Strategies for recruitment.

Eligibility of recruitment and so on.

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In this project I have tried to give attention to all the above topics

and study them in depth. But I would still like to receive all sorts

feedback to enhance my knowledge on the topics as far as this

industry is concern.

Company Profile

HDFC Standard Life Insurance

HDFC Standard Life Insurance Company Ltd is one of Indias leading private

insurance companies, which offers a range of individual and group insurance solution.

It is a joint venture between Housing Development Finance Corporation Limited

(HDFC Ltd.), Indias leading housing finance institution and Group Company of the

Standard Life, U.K.HDFC as on December 31,2007 holds 72.38 percent of equity in

the joint venture.

Our Key Strengths

Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard

Life has the financial expertise required to manage your long-term

investments safely and efficiently.

Range of Solution

We have a range of individual and group solutions, which can be easily

customized to specific needs. Our group solutions have been designed

to offer you complete flexibility combined with low charging structure.

Track Record so Far

Our gross premium income, for the year ending March 31, 2008 stood

at Rs. 4,859 crores and new business premium income stood at Rs.

2,685 crores. The company has covered over 9, 59,000 lives year

ending March 31, 2008.

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Unit Linked Endowment Plus Plan

Unit Linked Endowment Suvidha Plan

Unit Linked Endowment Suvidha Plus

Unit Linked Endowment Suvidha Plus II

Unit Linked Young Star Plan

Unit Linked Young Star Plus

Unit Linked Young Star Suvidha

Unit Linked Young Star Suvidha Plus

Unit Linked Enhanced Life Protection II

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INTRODUCTION TO INSURANCE

WHAT IS INSURANCE?

Insurance may be described as a social device to reduce or eliminate riskof

life and property. Under the plan of insurance, a large number of people associate

themselves by sharing risk, attached to individual.

The risk, which can be insured against include fire, the peril of sea, death,

incident, & burglary. Any risk contingent upon these may be insured against at a

premium commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called insurer

undertakes in exchange for a fixed sum called premium to pay the other party

happening of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the

insured, the insurers pay the financial losses suffered by the insured as a result of

the occurrence of unforeseen events.

With the help of insurance, large number of people exposed to a similar risk makes

contributions to a common fund out of which the losses suffered by the unfortunatefew, due to accidental events, are made good.

Insurance is the most important aspect a novice to insurance market should be

conversant with. Insurance is a hedging instrument used as a precautionary

measure against future contingent losses. Insurance is used for managing the

possible risks of the future.

Insurance can be defined as the process of reimbursing or protecting a person from

contingent risk of losses through financial means.

Insurances are bought in order to hedge the possible risks of the future which

might / might not take place. This is a mode of financially insuring that if

such a incident happens then the loss does not affect the present well-being of

the person. Thus, through insurance, a person buys the future happiness and

smooth living.

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A simple example will make meaning of insurance easy to understand. A biker

is always subjected to the risk of head injury. But it is not certain that the

accident causing him the head injury would definitely occur. Still people riding

bikes cover their heads with a helmet. This helmet in such cases act as insurance

by protecting him/her from the contingent accident and the ultimate danger.

Though loss of life or injuries cannot be measured in financial terms, still in this

materialistic world it is quantifiable which tries to compensate the potential future loss

financially.

It may sound that the financial reimbursement by the insurance giving companycomes free of cost. But in real life, insurance is not a free commodity. The Insurance

companies do charge a regular payment from the insurance customers (known as

Insurance Premium) which are reimbursed, either in part or entirety, to the

customers in cases of actual loss (for which the insurance has been bought).

Insurance can range from life to medical to general (residential, commercial

property, natural incidents, burglary, etc).

LIFE INSURANCE: - It insures the life of the person buying the Life Insurance

Certificate. Once a Life Insurance is sold by a company then the company remains

legally entitled to make payment to the beneficiary after the death of the policy holder

MEDICAL INSURANCE: - This is also known as mediclaim. Here, the policy

holder is entitled to receive the amount spent for his health purposes from the

insurance company.

GENERAL INSURANCE: - This insurance type involves insuring the risks

associated with the general life such as automobiles, business related, natural

incidents, commercial and residential properties, etc

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Research Methodology

RESEARCHDESIGN

A research design is a framework or blueprint for conducting the marketing research

project .It details the procedures necessary for obtaining the information needed to

structure or solve marketing research problems.

A descriptive research study is done, which is concerned with describing the

characteristics of a particular individual or group of individuals.

Objectives of Study

The objectives of my studies are:

To Study interest of general public in part time business

To Study the preference in insurance sector of different prospects

Identifying the different financial product provided by HDFC Standard.

To study whether general public wants to be a financial advisor.

To study why people are adopted ulip plans than traditional plans

Stages of Research Process

Formulating the Research Problem

Research Design

Sampling

Data collection

Data processing and analysis

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Interpretation and report writing.

Defining Of Problem:-

1). To analyze the customer satisfaction regarding life insurance plans of

Insurance Company Limited in market.

2). Comparison of ULIP Plans of different insurance companies in the life

Insurance sector.

Research Design:-

A descriptive research study is done, which is concerned with describing the

characteristics of a particular group of individuals.

Sampling:-

Population:-

To study the satisfaction of customers having life insurance policies of Different

Insurance Companies constitute my universe.

To study the market share of these insurance companies

Sampling Technique:-

1) Convenient sampling techniques is used to determine the customer satisfaction

of Different Insurance Products.

2) Random sampling is done to determine the market share of the company over

other competitors.

Sample Size:-

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Sample size for the study of customer satisfaction is 100 customers who have

taken life insurance plans by these insurance companies.

Sample size of 100 people was taken who have visited our canopy in a market. This

sample represented the people who either have these companies insurance plans This

sample was taken to determine the market share of these Insurance Companies

Data Collection:-

Sources of Data:

Both primary and secondary sources of data has been used to collect information

Primary data was collected from HDFC Insurance (Karnal), ICICI (Ktl), Max

New York(Ktl), Birla life(Ktl),Kotak Life(Ktl), by products offered by the

company

Secondary Data was collected by making extensive use of the internet. Data

was also collected from various books, journals and publications.

Technique of data collection:-

Data was collected through discussions with employees of the company.

And by personally interviewing the customers of the company and through

questionnaires.

LIMITATION

How so ever impeccable a thing may see to be there always dwell some possibilities

of failure and incompleteness. The result of this work also subject to some of

limitations.

Which are as follows?

The main limitation of the study is the availability of time. As the sufficienttime was not available for collection of information.

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Some respondents were not interested in giving answer and they appeared to

be busy.

Data analysis and Interpretations:-

In order to extract meaningful information from the data, analysis of the data was

done. Analysis was done by using certain statistical tools like bar-graphs, pie-charts,

percentages etc. and from these analysis interpretations were drawn.

Occupation

Table No. 1.1

Options Responses Percentage

Salaried 53 53

Professional 29 29

Business 12 12

Others 6 6

Total 100 100

Graph No. 1.1

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Salaried 53%Professional 29%

Business 12%

Agriculture 6%Salaried

Professional

Business

Agriculture

Interpretation:

The above Pie Chart indicates that 53% of the respondents belong to salaried

class while 29% of respondents are professional. Only 12% of respondentsbelong to

business class and rest 6% are engaged in Agriculture.

Annual Income

Table No. 1.2


Up to Rs. 2,00,000 21 21

Rs.2,00,000- Rs. 5,00,000 63 63

Rs. 5,00,000 Rs. 8,00,000 11 11

Above Rs. 8,00,000 5 5

Total 100 100

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Graph No. 1.2

21%

63%

11% 5%Up to Rs. 2,00,000

Rs.2,00,000- Rs.

5,00,000

Rs. 5,00,000 Rs.

8,00,000

Above Rs. 8,00,000

Interpretation:

The above Pie Chart shows that 21% of respondents fall in group

having income up to Rs. 2,00,00, 63% of the respondents fall in the

income group of Rs.2,00,000Rs.5,00,000,11% of the respondents

in the income group of Rs.5,00,00 Rs.8,00,000 and only 5% of

respondents fall in the income group above Rs. 5,00,000.

Duration of Companys as Insurance provider

Table No. 1.3


Less than 2 Years 48 48

to 5 Years 37 37More than 5 Years 15 15

Total 100 100

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Graph No. 1.3

48%

37%

15%

Less than 2 Years

2 to 5 Years

More than 5 Years

Interpretation:

The above Pie-Chart depicts that 15% people have insurance policies of HDFC Standardfor more than 5 years, 37% people have policies

from 2- 5 years (this shows that people have started trusting HDFC as a

brand) and 48 % are customers of HDFC for less than 2 years.

Type of Insurance Policy

Table No. 1.4


Life 100/100 100

Health 23/100 23

Children 37/100 37

Pension 28/100 28

Total 30 100

Graph No. 1.4

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100

23

37

28

0

10

20

30

40

50

60

70

80

90

100

Series1 100 23 37 28

Life Health Children Pension

Interpretation:

The above graph depicts that 100% people have Life insurancepolicy, 23 out of 100 have health insurance, 37 have taken Children Insurance Plans

and 28 out of 100 have opted for Pension Plans of the company. This shows that still

Health, Children, Pension be marketed properly

Reason for Selecting HDFC STANDARDTable No. 1.5


Attractive Plans 75/100 75

Recommended By some person. 60/100 60

You are an employee of HDFC 17/100 17

`Because of Market Ranking. 45/100 45

Graph No. 1.5

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75

60

17

35

0

10

20

30

40

50

60

70

80

Series1 75 60 17 35

Attractive

Plans

Recommen

ded By

Employee of

ICICI Pru

Because of

market

Interpretation:

The above bar- graph shows that 75% of customers have taken insurance plans because

of attractive plans and quality service and 60% have taken on recommendation of some

person.

Expectations from an Insurance Policy

Table No. 1.6


Higher growth of money invested 80/100 80

Convenience in branch availability. 45/100 45

Less formalities and paperwork 55/100 55

Transparent Transactions 65/100 65

No Hidden charges 78/100 78Efficient Customer Care dept. 75/100 75

Easy Claim Settlement 80/100 80

Graph No 1.6

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80

4555

65

7875

80

0

10

20

30

40

50

60

70

80

Series1 80 45 55 65 78 75 80

Higher

return

money

Easy

branch

availabi

Less

formalit

ies

Transp

arent

Transa

No

Hidden

charge

Custo

mer

Care

Easy

Claim

Settle

Interpretation:

The above graph depicts that 80% of people expect higher growth of invested

and easy claim settlement.85% says no hidden charges should be there. Other

expectation covers up less paperwork, customer care department and easy branch

availability

Does HDFC STANDARD Provides Customers with the

expected features in a policy

Table No.1.7


Yes 92 92

No 8 8Total 100 100

Graph No 1.7

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92

8

0

20

40

60

80

100

Series1 92 8

Yes No

Interpretation:

The graph shows that 92% customers feel that HDFC STANDARD is providing

insurance plans which are up to their expectations and only 8% feels that the plans

are not according to their wish. They pointed out the hidden charges which

constitute a very small percentage.

Proper solution to Insurance policy relating queries

Table No. 1.8


Yes 94 94

No 6 6

Total 100 100

Graph No. 1.8

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94

6

0

10

20

30

40

50

60

70

80

90

100

Series1 94 6

Yes No

Interpretation:

The graph depicts that 94% customers are satisfied with the customer care

department of the company. Only 6 respondents were not satisfied with the query

handling of the department.

Satisfaction regarding Administration charges

Table No. 1.9


Yes 90 90

No 10 10

Total 100 100

Graph No.1.9

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90

10

0

10

20

30

40

50

60

70

80

90

Series1 90 10

Yes No

Interpretation:

The graph shows that 90%respondents are satisfied with the

administration charges being charged by the company but 10% feel that

administration fees should be reduced.

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FINDINGS

Most of the respondents belong to Salaried and professional class.

Business class still needs to be tapped.

The clientele has increased in past 3 years, this shows that people

have started trusting HDFC STANDARD as a Brand.

Most of the respondents are satisfied with the insurance plans and

services provided by HDFC STANDARD Life Insurance

Company. The company is providing the customers a huge product

range which is customized according to the customers

requirements.

HDFC STANDARD provides Insurance plans which cover up all

the features which customers want in their Insurance plans.

From Graph No. 4 it is inferred that still the market for Health,

Children and Pension plans is not tapped fully so, efforts should be

made to promote these plans.

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The main reason due to which customers are choosing HDFC

STANDARD as their insurance provider is the huge product range

which suits the requirements of all income and age groups. And

In their recommendations a few number of respondents asked for

lesser administration charges and no hidden charges should be

there.

85% of respondents are willing to invest in the company in future.

Satisfaction regarding the services provided by company is rated as

very good by the respondents. This shows that the company is

working in accordance to its Vision.

Recommendations

1. Making HDFC more accessible: Here I mean that as 80% of the

population of India is rural therefore HDFC must have there branches in

important towns such as Ambala, Jagadhari ,Kaithal, not only this will

increase the awareness among people more over it will help the company to

acquire local market and cater to their needs effectively.

2. There should be a product with similar features and low initial

premium: A product like Young star is suitable for all but the initial

premium which cannot be less than 18000 rs. is on the higher side , thereforethe company should derive a product with similar features but with low initial

premium so that it is affordable to normal service class.

3. Administration charges should be low as in comparison with

mutual funds, national saving certificate (N.S.C),etc.: The

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company should lessen down the administration charges so that this product

can have an edge over other investment modules like N.S.C, P.P.F etc.

4. Market surveys should be conducted regularly so that to know

about customer demands and changing needs: The company

should know about the customers changing needs and demands by

conducting market surveys which are helpful in innovating a product which

suits the customers requirements.

5. There should be Training batches on weekends : It is advised that

the company should have training batches for the already serving class on

weekends , so that the willing candidates can opt it as a part time business

opportunity

CONCLUSION

In India, insurance is generally considered as a tax-saving device instead of its other

implied long-term financial benefits. Indian people are prone to investing in propertiesand gold followed by banks deposits. They selectively invest in shares also but the

percentage is very small4.5%. Even to this day, Life insurance market has become

more vibrant.

The top three insurance companies-ICICI Prudential Life Insurance Company, HDFC

Standard Life and Max New York Life- combined managed to sell over two lakh

policies in a single year. ICICI Prudential, touted as the number one private life

insurer, scored on all three fronts-with the maximum number of policies sold

(1,00,000 policies), highest amount of premium collected (Rs. 2,700 crore).

Max New York Life scored second place with Rs. 43 crore Premium income received

on 64,000 whole-life policies sold. It has built business to the tune of Rs.2,100 crore

in its first year of operations. HDFC Standard Life, even as it belongs to the

December 2001 vintage when it and ICICI Prudential were the first to commence

operations, is placed at number three position. HDFC Standard Life has sold

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32,000.policies against 44,311 lives. On a business portfolio of Rs.1,266 crore , it has

received a premium income of Rs. 36, crore.

Of course, the numbers come no where closed to the state the Life Insurance

Corporation of India (LIC) which sold2.32 Crore policies in the fiscal 2006.The

fiscal was marked by phenomenal growth rates for (LIC) as the number of policies

sold short up by over16 percent. The state player mopped up first premium income

from new policies sold to the extranet of R.S. 40,844.05 crore, growth of 137 percent

over its performance last fiscal. This is over an about the regular yearlypremium of

Rs. 35,000 crore. At the same time, LIC has managed to grow its books by

underwriting an additional R.S. 1,92,575.36 crore of fresh business. Tata AIG Life

and non-life Combined has sold over five lakh policies in the first year. Birla Sun life

Insurance. Has returned a business size of R.S. 1,6,00 crore.

Bibliography

1) Literature available at HDFC Standard Life Insurance (Karnal)

2) www.hdfcstandardlife .com

3) www.bajajcapital.com

4) www.moneymarket .com

5) Broachers of different insurance companies

6) Websites of different insurance companies

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http://www.hdfcstandardlife/http://www.bajajcapital.com/http://www.moneymarket/http://www.hdfcstandardlife/http://www.bajajcapital.com/http://www.moneymarket/


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QUESTIONNAIRE

on

CUSTOMER SATISFACTION

1)Occupation:

Salaried

Businessman

Professional

2)Annual Income of Household:-

Up to Rs.2 lakh

Rs 2 lakh to Rs. 5 lakh

Rs.5 lakh to Rs.8 lakh

Above Rs.8 lakh

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3) From how much time is HDFC Standard Life Insurance Company

is your insurance provider?

0 year 2 years

2- 5 yrsAbove 5 yrs.

4) What kind of insurance policy you have?

Life Health Children

5) Why did you select HDFC Standard Life Insurance Company as

your insurance provider?

Attractive Plans

Recommended by some one.

You are an employee of HDFC Standard Life.

Because of Market ranking.

6) What do you expect in your insurance policy?

Higher growth of money invested

Convenience in branch availability

Less formalities and paperwork

Transparent transactions

Easy claim statement

Efficient Customer Care Department

No hidden Charges.

7) Does HDFC Standard provide you with the desired features which

you expect in your insurance policy?

Yes No

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8) Are your queries relating to your insurance plan being solved

properly?

Yes No

9)Are you satisfied with the administrative fees charged by HDFC

Standard Life Insurance Company?

Yes No

10) What do you think about the standard of services provided by

HDFC Standard Life Insurance Company?

Fair Good

Very Good Excellent

report on ulip plans

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