CONSUMER PERCEPTION ON LIFE INSURANCE

INDUSTRY & POSITIONING OF HDFC

At
HDFC STANDARD LIFE

SUBMITTED BY:

SURYA PRAKASH TIWARI

MBA-G
A7001911081
MARKETING & IT
UNDER GUIDANCE OF:
INDUSTRY GUIDES NAME: FACULTY GUIDE:

Mr.AMAN TANDON Dr. NIMISH GUPTA

Asst. Sales Manager Asst. Proffesor

HDFC standard life ABS, Lucknow

(SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME MASTERS IN
BUSINESS ADMINISTRATION (2011-13))

AMITY BUSINESS SCHOOL

STUDENTS CERTIFICATE
SYNOPSIS:

SCOPE OF THE STUDY:

The result of this research would help the company to have a better
understanding about the consumers perception towards life insurance.

The study helps the company by creating awareness about the consumers
of different ages and income levels.

The study also enables the company to focus the consumers preferences and
expectations on the product which they offer.

OBJECTIVES OF THE STUDY:

a) To know about the various Investment alternatives that is mostly preferred

by the people.

b) To find out the important criteria that people think about before investing
in a life insurance policy.

c) To find out whether gender bias involved in investing life insurance or not.

d) To find out the awareness of HDFC Life Insurance among the people

2
RESEARCH METHODOLOGY:

Methodology is a systematic way of solving a problem it includes the research

methods for solving a problem it includes the research methods for solving
the problem.

Type of research

Descriptive research

Data source

Primary and Secondary data

Data collection method

Interview and surveyData collection tools Questionnaires Sampling universe

Sample size

100

SAMPLE DESIGN

The target population of the study consists of various respondents of

various places. This survey was done by collecting the data from the respondents.

SAMPLE SIZE

After due consultation with the company supervisor as well as with the
collegeguide, also keeping in mind the requirements of the company for the
research, the samplesize that was found to be appropriate for the study was 100.

3
SAMPLING TECHNIQUE

The sampling technique that adapted to conduct the survey was Convenient
Random Sampling and the area of the research was concentrated in the city of
Erodeonly. The survey was conducted by visiting different places like colleges,
corporate offices, respondents home etc

DATA SOURCE

The task of data collection begins after a research problem has been defined.
Inthis study data was collected through both primary and secondary data source.

A. PRIMARY DATA

A primary data is a data, which is collected for gathering information first timeand
to analyze the problem. In this study the primary data was collected among the
consumers using questionnaire.

B. SECONDARY DATA

Secondary data consist of information that already exits somewhere, having been
collected for some other purpose. In this study secondary data was collected from
company websites, magazines and brochures.

STATISTICAL TOOLS

Simple percentage analysis, ranking method and chi square analysis are the
mainstatistical tool used for the study.

4
SIMPLE PERCENTAGE ANALYSIS

Percentage refers o a special king of ratio in making comparison between two

or more data and to describe relationships. Percentage can also be used to
compare the relation terms between two or more sources of data.
Percentage of respondents = Number of respondents * 100 /Total respondents.

5
EXECUTIVE SUMMARY

The project A study on Consumer Perception about Insurance Company is

undertaken under the guidance of Mr. AMAN TANDON (Asst. Sales Manager).It
looks deep into the effectiveness at senior level. It also provides a comparative
study of HDFC STANDARD Life Insurance Company
Ltd. withsome national companies with similar profiles to discuss their working str
ucture andsuggest to organization .On the basis of feedback through questionnaire,
interview and observation method, we find out the perception view about the
insurance companys working style and
services offered is quite effective, Management of HDFC STANDARD LIFE is
constantly making efforts to make the company the best place to work for level. As
they are measures of individuals psychological makeup and personality and as such
are extremely powerful instruments as find out from our comparative analysis
results.

In order to make them proactive., it is required to provide them with such kind
of environment, and equally have people oientation too in order to make a
company best place to work for high performers and creating a congenial
environment.

6
 TABLE OF CONTENT:

S.NO TOPIC PAGE

NO.
* STUDENT CERTIFICATE 2

* FACULTY CERTIFICATE 3

INDUSTRY GUIDE CERTIFICATE 4

SYNOPSIS 5

EXECUTIVE SUMMARY 9

1. CHAPTER -1-INDIAN INSURANCE INDUSTRY AN 14

OVERVIEW
1.1 INTRODUCTION TO LIFE INSURANCE 15

1.2 NEED FOR INSURANCE 16

1.3 CHARACTERISTIC OF INSURANCE 18

1.4 FUNCTIONS OF INSURANCE 19

1.5 OVERVIEW 20

1.6 IMPORTANT MILE STONES OF INSURANCE INDUSTRY 23

1.7 LIBRALIZATION OF INDIAN INSURANCE 24

1.8 ROLE OF IRDA IN INSURANCE 24

1.9 ROLE OF INDIAN BANKS 26

7
1.10 POLE OF PRIVATE INSURANCE COMPANY 27

1.11 PLAYERS IN INSURANCE INDUSTRY 28

2. CHAPTER-2 CONSUMER PERCEPTION ON LIFE 30

INSURANCE
2.1 INTRODUCTION 31

2.2 ABOUT CONSUMER PERCEPTION 33

2.3 CONSUMER BEHAVIOUR 35

3. CHAPTER-3 COMPANY PROFILE:HDFC LIFE 36

3.1 OVERVIEW 37

3.2 COMPANY PROFILE 39

3.3 OFFICES IN INDIA 40

3.4 VISION AND VALUES 42

3.5 ASSOCIATE COMPANIES 43

3.6 PRODUCTS OF HDFCSL 49

3.7 AWARDS 60

3.8 ORGANISATIONAL STRUCTURE 62

4. CHAPTER-4 RESEARCH DESIGN 64

8
4.1 RESEARCH METHODOLOGY 65

4.2 RESEARCH OBJECTIVE 66

4.3 RESEARCH DESIGN 67

4.4 RESEARCH LIMITATION 69

5. CHAPTER-5 FINDINGS AND ANALYSIS 70

5.1 SWOT ANALYSIS 71

5.2 GRAPHS 73
5.2.1 MARKET SHARE OF KEY PLAYERS 73
5.2.2 BENEFIT OF INSURANCE 74
5.2.3 SATISFACTORY LEVEL 75
5.2.4 WHICH SECTOR-PRIVATE OR PUBLIC 76
5.2.5 WHERE TO IMPROVE 78
5.2.6 TOTAL SUM ASSURED OF LIFE INSURANCE 79
5.2.7 REASON FOR INVESTING 81

6. CHAPTER-6 CONCLUSION 82

6.1 CONCLUSION 83

6.2 FACTOR INFLUENCING CONSUMER BEHAVIOUR 87

6.3 SUGGESTIONS 88

6.4 LIMITATIONS 89

7. QUESTIONAIRE 90

8. RESUME 94

9
9. BIBLIOGRAPHY 97

CHAPTER -1
INDIAN INSURANCE
INDUSTRY
AN OVERVIEW

10
THE INSURANCE INDUSTRY IN INDIA
1.1 INSURANCE:

Definition:

Insurance is a contract providing for payment of a sum of money to the person

assured or failing him to the person entitled to receive the same on the happening
of certain event.Uncertainty of death is inherent in human life. It is this risk, which
gives rise to thenecessity for some form of protection against the financial loss
arising from death.Insurance substitutes this uncertainty by certainty.The objective
of insurance is normally to provide:

a)Family protection and / or

b)Provision for old age.

c)Protection against risks

Why Insurance?

Insurance cover is essential because it provides the following benefits:

A lump sum payment to the nominees at the time of the death of the policy
holder.
A regular payment to the nominees in the event of the death of the policy
holder. Tax benefits, as premiums paid reduce the liability of tax.
Relieves economic hardships in the family on the uneventful death of the
sole income holder.
Inculcates the habit of savings.

11
1.2 NEED FOR INSURANCE:

Who will take care of my family if tomorrow something unfortunate happens to

me? If this question bothers you, then Life Insurance is the answer.
Of course, under any circumstances, the loss of a loved one is a traumatic
experience. But, if your family is also left without sufficient money to meet basic
living needs or prepare for future goals, they will have to cope with a financial
crisis at the same time. A Life Insurance plan ensures that your family is
financially secure even if tomorrow you are no longer around to care for them.Life
insurance, especially tailored to meet your financial needs:

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from.

Modern day investments include gold, property, fixed income instruments, mutual
funds and of course, life insurance. Given the plethora of choices, it becomes
imperative to make the right choice when investing your hard-earned money. Life
insurance is a unique investment that helps you to meet your dual needs - saving
for life's important goals, and protecting your assets. Let us look at these unique
benefits of life insurance in detail.

Asset Protection

From an investor's point of view, an investment can play two roles - asset
appreciation or asset protection. While most financial instruments have the
underlying benefit of asset appreciation, life insurance is unique in that it gives the
customer the reassurance of asset protection, along with a strong element of asset
appreciation.

12
The core benefit of life insurance is that the financial interests of ones family
remain protected from circumstances such as loss of income due to critical illness
or death of the policyholder. Simultaneously, insurance products also have a strong
inbuilt wealth creation proposition. The customer therefore benefits on two counts
and life insurance occupies a unique space in the landscape of investment options
available to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly
married couple, it could be buying a house. Once, they decide to start a family, the
goal changes to planning for the education or marriage of their children. As one
grows older, planning for one's retirement will begin to take precedence.
Clearly, as your life stage and therefore your financial goals change, the instrument
in which you invest should offer corresponding benefits pertinent to the new life
stage.

Life insurance is the only investment option that offers specific products tailor
made for different life stages. It thus ensures that the benefits offered to the
customer reflect the needs of the customer at that particular life stage, and hence
ensures that the financial goals of that life stage are met.

The table below gives a general guide to the plans that are appropriate for different
life stages.

g Life Stage e Prim Primary Need ary Life Insurance Product Life Insurance Product
Need
Young & Single Asset creation Wealth creation plans

Young & Just married Asset creation & protection Wealth creation and mortgage protection plans

13
Married with kids Children's education, Asset Education insurance, mortgage protection & wealth creation
creation and protection plans

Middle aged with grown up Planning for retirement & asset Retirement solutions & mortgage protection
kids protection

Across all life-stages Health plans Health Insurance

1.3 Characteristics of insurance

Sharing of risks
Cooperative device
Evaluation of risk
Payment on happening of a special event
The amount of payment depends on the nature of losses incurred.
The success of insurance business depends on the large number of people
insured against similar risk.
Insurance is a plan, which spreads the risk and losses of few people among a
large number of people.13
The insurance is a plan in which the insured transfers his risk on the insurer.
Insurance is a legal contract which is based upon certain principles of
insurance which includes utmost good faith, insurable interest, contribution,
indemnity, causes proximal , subrogation, etc.
The scope of insurance is much wider and extensive.

14
 1.4 Functions of insurance:
Primary functions:
1.Provide protection: - Insurance cannot check the happening of the risk, but can provide for
the losses of risk.
2.Collective bearing of risk: - Insurance is a device to share the financial losses of
few among many others.
3.Assessment of risk: - Insurance determines the probable volume of risk by
evaluating various factors that give rise to risk.
4.Provide certainty: - Insurance is a device, which helps to change from
uncertainty to certainty.
Secondary functions:
1.Prevention of losses: - Insurance cautions businessman and individuals
to adoptsuitable device to prevent unfortunate consequences of risk by ob
serving safetyinstructions.
2.Small capital to cover large risks: - Insurance relives the businessman from
security investment, by paying small amount of insurance against larger risks and
uncertainty.
3.Contributes towards development of larger industries.

Other Function:
Means of savings and investment :Insurance companies are business houses.
The product they sell is financial protection. To succeed and survive, they must
cover their costs, which include payments to cover the losses of policyholders, as
well as sales and administrative expenses, taxes and dividends.

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1.5 .AN OVERVIEW:
With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total value
of the Indian insurance market is estimated at Rs. 450 billion (US$10 billion).
According to government sources, the insurance and banking services
contribution to the country's gross domestic product (GDP) is 7% out of which the
gross premium collection forms a significant part. The funds available with the
state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.

Till date, only 20% of the total insurable population of India is covered under
various life insurance schemes, the penetration rates of health and other non-life
insurances in India is also well below the international level. These facts indicate
the of immense growth potential of the insurance sector. The year 1999 saw a
revolution in the Indian insurance sector, as major structural changes took place
with the ending of government monopoly and the passage of the Insurance
Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions
for private players and allowing foreign players to enter the market with some
limits on direct foreign ownership. Though, the existing rule says that a foreign
partner can hold 26% equity in an insurance company, a proposal to increase this
limit to 49% is pending with the government. Since opening up of the insurance
sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian
market and 21 private 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
16
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer.

The life insurance industry in India grew by an impressive 36%, with premium
income from new business at Rs. 253.43 billion during the fiscal year 2004-2005,
braving stiff competition from private insurers. This report, Indian Insurance
Industry: New Avenues for Growth 2012, finds that the market share of the state
behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by
selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest
the fall in its market share, as private players grew by 129% to mop up Rs. 55.57
billion in 2004-05 from Rs. 24.29 billion in 2003-04. Though the total volume of
LIC's business increased in the last fiscal year (2004-2005) compared to the
previous one, its market share came down from 87.04 to 78.07%. The 14 private
insurers increased their market share from about 13% to about 22% in a year's
time. The figures for the first two months of the fiscal year 2005-06 also speak of
the growing share of the private insurers. The share of LIC for this period has
further come down to 75 percent, while the private players have grabbed over 24
percent.

There are presently 12 general insurance companies with four public sector
companies and eight private insurers. According to estimates, private insurance
companies collectively have a 10% share of the non-life insurance market.

Though the focus of this market research report is on the potential growth on the
Indian Insurance Sector, it also talks about the market size, market segmentation,
and key developments in the market after 1999. The report gives an instant
overview of the Indian non-life insurance market, and covers fire, marine, and

17
other non-life insurance. The data is supplied in both graphical and tabular format
for ease of interpretation and analysis. This report also provides company profiles
of the major private insurance companies.

The Indian Insurance Sector went through a full circle of phases from being
unregulated to completely regulate and then being partly deregulated which is the
present situation. A brief on how the events folded up is discussed as follows: The
Insurance Act of 1938 was the first legislation governing all forms of insurance
to provide strict state controls over insurance business. In 19th January, 1956, the
life insurance in India was completely nationalized through the Life Insurance
Corporation Act of 1956. At that time, there were 245 insurance companies of both
Indian and foreign origin. Government accomplished its policy of
nationalization by acquiring the management of the companies. Bearing this
objective in mind, the Life Insurance Corporation (LIC) of India was created on 1st
September, 1956 which has grown in leaps and bounds henceforth, to become the
largest insurance company in India. The General Insurance Business
(Nationalization) Act of 1972 was formulated with the
objective of nationalizing nearly 100 general insurance companies and subsequentl
yamalgamating them into four basic companies namely National Insurance, New
India Assurance, Oriental Insurance and United India Insurance which have their
head quarters in four metropolitan cities. The Insurance Regulatory and
Development Authority (IRDA) Act of 1999 deregulated the insurance sector in
India and allowed the entry of private companies into the insurance sector.
Moreover, the flow of Foreign Direct Investment (FDI) was also restricted to 26
%of the total capital held by the Indian Insurance Companies.

18
1.6.IMPORTANT MILESTONES IN THE LIFE INSURANCE:
1818:

Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.

1870:

Bombay Mutual Life Assurance Society, the first Indian life 'Insurance Company
started 'Its business,

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 to by the Insurance Act with the
objective of protecting the 'Interests of the insuring pubic.

1956:

245 Indian and foreign insurance and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act,1956, with a capital contribution of Rs. 5 chores from the Government of
India.

19
1.7.Liberalization of Indian Insurance:
1994:

Insurance sector invited private participation to induce a spirit of competitionamon

gst the various insurers and. to provide a choice to the consumers.

1997:

Insurance regulator IRDA was set up as there felt the Feed:

To set up an independent regulatory body, that provides greater autonomy to

insurance companies in order to improve their performance, In the first year of
insurance market liberalization (2001) as much as 16 private sector companies
including joint ventures with leading foreign insurance companies have entered the
Indian insurance sector. Of this, 10were under the life insurance category and six
under general insurance. Thus in all there are25 players (12-life insurance and l3-
general insurance) in the Indian insurance industry till date.

1.8.ROLE OF IRDA IN INSURANCE SECTOR:

IRDA plays an important role in insurance sector giving important guide lines to
various companies in the area of insurance. The IRDA's green signal to insurance
companies for investments in venture capital funds would provide a boost in
growth pertaining to the infrastructure segment. The insurance companies would
be allowed to invest about 5% of the total investment in the venture capital funds
pertaining to infrastructure based projects. The total aggregate of the assets under
the life insurance companies is Rs 699,375 crores. The proposed alterations in the
regulations pertaining to investments of the insurance companies were settled by
the Insurance Regulatory and Development Authority of India (IRDA), at the
board meeting on the 25th of March 2008. Several other alterations were also done

20
with the investment norms.The other important norm is the expansion of the
sanctioned investments category, which would also include the mortgaged
securities and the initial public offerings unlike previously when these two were
not included. The proposal would be submitted to the Insurance Regulatory and
Development Authority of India (IRDA) board for approval. The final draft was
published in the Gazette of the Central Government at the end of March 2008. The
alterations would help in developing the instruments of investment and provide
flexibility for insurers. The alterations would provide more margins pertaining to
the investments in certificates of deposit issued by the banks and term deposits.

At present the insurance companies may invest about 10% of its investment funds
to a particular sector. The Insurance Regulatory and Development Authority of
India (IRDA) constituted a working group in the year 2006 to probe the existing
investment regulations and provide review on the present statutory advices and the
trends of investments for insurance companies.According to the Insurance
Regulatory and Development Authority (IRDA), the private insurers had collected
premium income from new business of about Rs. 18,980 crores, in 2007.

21
1.9.ROLE OF INDIAN BANKS IN INSURANCE SECTOR:

Many Indian banks are planning to enter the insurance sector due to the huge
growth that is estimated to take place in this sector. Indian banks plan to foray into
the insurance sector by setting up their own insurance companies. The Indian
insurance sector collected a premium of about Rs. 75,000 crores in the segments of
non- life and life insurance, during the first nine months of 2007- 2008. Further,
the business of insurance in the country is expected to increase due to the growth in
the categories of semi- urban and rural insurance and is expected to be worth about
US$ 60 billion by 2010. The major Indian Banks that are planning to enter the
insurance sector of the country are Union Bank, Federal Bank, Allahabad Bank,
Bank of India, Karnataka Bank, Indian Overseas Bank and Bank of Maharashtra.
Further, there are a number of banks that are planning to set up their own
companies for insurance such as Bank of Baroda, Punjab National Bank, and Dena
Bank. Indian banks are planning to enter the insurance sector on their own, without
partnering with insurance companies due to several reasons. One important reason
is that they would get better dividends than the commission they would get by
entering into partnerships with other insurance majors. Moreover, this would help
them to diversify from the regular banking activity that they are involved in. The
insurance companies have been affected with the planning of Indian banks to foray
into the insurance sector of the country. This is due to the fact that the insurance
companies are now unable to find banks with whom they can enter into
partnerships for the distribution of their products.

22
1.10.ROLE OF PRIVATE INSURANCE COMPANIES IN INSURANCE
SECTOR:

Private sector also plays important role in this sector and tried to capture maximum
shares in this sector. Max New York Life Insurance Company is the leading
private life insurance company in India. Max New York Life Insurance Company
Ltd. launched 'lifeline' a health insurance product on March 2008, across India.
Now, the company can boast of offering complete health and life insurance
products across 11 regions in India. This newly launched health insurance product
of Max New York Life Insurance Company offers three groups of heath insurance
solutions. The director marketing product management and corporate affairs of
Max New York Life Insurance said that these three distinct heath insurance
products are meant to cover eventualities like hospitalization, surgery and critical
illness of the insured and these plans have been structured with features like
coverage for a wide range of ailments, no claim discount on revised premium for a
healthy life, a fixed premium for a five-year term, free second opinion from the
best health care institutions of India on detection of illness. Further, it also has
provision for a free telephonic medical helpline across India. The hospitalization is
covered by "Medicash Plan", which is meant to provide a fixed amount of cash
benefit on a day-to-day basis during the entire period of hospitalization of the
insured. The Medicash Plan would also cover expenses for admission in ICU,
lump sum benefits against an unlimited number of surgeries and recuperation
benefits. The second plan of the newly launched health insurance of Max New
York Life Insurance, is the "Wellness Plan", which is a more attractive one and
covers 'critical illness' like cancer, alzheimers, heart ailments, liver disease,
deafness, permanent disability, etc. The Wellness plan covers thirty eight critical
illnesses, which is the highest number of illness covered under one insurance plan

23
in India by any insurance company. The third health insurance policy of Max New
York Life Insurance is a term plus health protection plan known as "Safety Net".
Max New York Life Insurance Company is one of the fastest growing life
insurance companies in India and is the first life insurance company of India to be
awarded with ISO 9001:2000 certification.

1.11.Players in Indian insurance industryLife insurers:

Insurance industry, as on 1.4.2000, comprised mainly two players: the state

insurers:

Life Insurance Corporation of India (LIC)

General insurers:

General Insurance Corporation of India (GIC) with effect from Dec'2000,

a National ReinsureGIC had four subsidiary companies,namely with effect
from Dec'2000, these subsidiarieshave been de
linked from the parent company and made as independent insurancecompanies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited4. United India Insurance Company

Limited.

Yr: 2000-2007

: Insurance Industry in the year 2009-2010 had 15 new entrants, namely:

24
Life Insurers:

1. Max New York Life Insurance Co. Ltd.

2. HDFC Standard Life Insurance Company Ltd.
3. ICICI Prudential Life Insurance Company Ltd.
4. Om Kotak Mahindra Life Insurance Co. Ltd.
5. Birla Sun Life Insurance Company Ltd.
6. Tata AIG Life Insurance Company Ltd.
7. SBI Life Insurance Company Limited
8. ING Vysya Life Insurance Company Private Limited
9. Allianz Bajaj Life Insurance Company Ltd.
10.MetLife India Insurance Company Pvt. Ltd.
11.Reliance Life Insurance Company Ltd.
12.Shriram Life Insurance Company Ltd.
13.Sahara India Life Insurance Company Ltd.
14.Bharti AXA Life Insurance Company Ltd.
15.Aviva Life Insurance Company Ltd.

25
 CHAPTER -2

CONSUMER PERCEPTION ON
LIFE INSURANCE

26
2.1 INTRODUCTION

Perception is the process by which organisms interpret and organize sensation to produce a
meaningful experience of the world. Sensation usually refers to the immediate,
relatively unprocessed result of stimulation of sensory receptors in the eyes, ears,
nose, tongue, or skin. Perception, on the other hand, better describes one's ultimate experience
of the world and
typically involves further processing of sensory input. In practice, sensati
on andperception are virtually impossible to separate, because they are part of one
continuous process.Thus, perception in humans describes the process whereby
sensory stimulation is translated into organized experience. That experience, or percept,
is the joint product
of th e sti mul ation and o f the pro cess its elf . R ela t ions fou nd b et we e
n va rious t ypes of stimulation (e.g., light waves and sound waves) and
their associated percepts suggest inferences that can be made about the
properties of the perceptual process; theories of perceiving then can
be developed on the basis of these inferences. Because the perceptual process
is not itself publicor directly observable (except)to the perceiver himself, whose pe
rcepts are given directly in experience), the validity of perceptual theories can bech
ecked only indirectly.
Historically, systematic thought about perceiving was the province of philosophy.
Philosophical interest in perception stems largely from questions about the sources
and validity of what is called human knowledge (epistemology). Epistemologists ask whether
areal, physical world exists independently of human experience and, if so, how its properties
can be learned and how the truth or accuracy of that experience can be determined.
They also ask whether there are innate ideas or whether all experience originates through
contact with the physical world, mediated by the sense organs.
27
As a scientific enterprise, however,the investigation of perception has especiallyd
eveloped as part of the larger discipline of psychology. For the most part,
psychology bypasses the questions about perceiving raised by philosophy in favors
of problems thatcan be handled by its special methods. The remnants of
such philosophical
questions,ho w ev er, do re ma in ; res ea rch e r s ar e still conc e r ned , fo r
ex a mpl e , with the rel ative contributions of innate and learned factors to the
perceptual process. Such fundamental philosophical assertions as the existence of a
physical world, however are taken for granted among most scientific students of
perceiving. Typically, researchers in perception simply accept the apparent
physical world particularly as it is described in those branches of physics
concerned with electromagnetic energy, optics, and mechanics. The problems they
consider relate to the process whereby percepts are formed from the interaction of
physical energy (for example, light) with the perceiving organism. Of further interest is the
degree of correspondence between percepts and the physical objects to which they ordinarily
relate. In philosophy, psychology, and cognitive science, perception is the process of
attaining awareness or understanding of sensory information. The word "perception" comes
from the
Lat in wo rds pe rcep tio , pe rcipi o , and me ans " re ceiving , col l ecting ,
a ct ion o f takin g possession, apprehension with the mind or senses.
P e rcep t io n i s o ne of the old es t f i elds in ps ycho l og y. The olde st qu
a ntit ative l a w in psychology is the Weber-
Fetcher law, which quantifies the relationship between theintensity
of physical stimuli and their perceptual effects. The study of perception gave rise
to the Gestalt school of psychology, with its emphasis on holistic approach.

28
2.2 ABOUT CONSUMER PERCEPTION:

Consumer behavior studies the behavior of individual or a group of

people. The study of consumer behavior provides marketers to understand
and predict the future market behavior. In this paper, role of IRDA, role
of Indian banks, role of private insurance companies, function of
insurance company, various factors influencing consumer behavior,
factors influencing buying decision and model of consumer decisions
making process have been considered. Also, the types of insurance policy
taken by consumer, the total sum assured of life insurance, the total sum
assured of life insurance for the spouse, the share of public insurance in
insurance sector, share of LIC in life insurance in insurance sector and the
reasons for invested in life insurance have been studied. The survey was
conducted across 334 cities/towns in all the states and union territories. A
sample of 1947 individuals has been selected by setting questionnaire.
The online response system has selfchecking and its validation system
vetted the quality and veracity of the responses.Indicus Analytics then
cross-checked and inputs with its databases on investors and their habits.
The majorities of the respondents were from the top five metros and 10
major cities and had at least 30 participants. The profile of the target
respondents is typically matched. The target respondents are well
educated, familiar with English, spread over major urban centers having a
higher socioeconomic and income profile and spread across a range of
occupations, professions and different age groups.

29
2.3.INTRODUCTION:

Consumer behavior is the process where the individual decides what,

when, how and from whom to purchase goods and services. Consumer
behavior studies how individuals, groups and organization select, buy, use
dispose off goods, services, ideas or experiences to satisfy their needs and
desire. The study of consumer behavior enables marketers to understand
and predict consumer behavior in the market place in advance and it is
concerned not only with what consumers buy but also with why, when,
where, how and how often they buy it. Consumer research is the
methodology which is used to study consumer behavior and it takes place
at every phase of the consumption process during before and after the
purchase. Consumer behavior is inter disciplinary approach that is based
on concepts and theories about people that have been developed by
scientists in diverse disciplines such as psychology, sociology, social
psychology, cultural anthropology and economics. Consumer behavior has
become an integral part of strategic and social responsibility. It should
also be an integral component of every marketing decision embodied in a
revised marketing and the social marketing concept. It helps marketers to
fulfill the needs of their target markets in such a way that it develops a
society. The insurance sector in India come a full circle from being an
open competitive market to nationalization and back to a liberalized
market. Tracing the developments in the Indian insurance sector reveals
the 360-degree turn witnessed over a period of almost 190 years. The
business of life insurance started in India in the year 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta.

30
Insurance may be described as a social device to reduce or eliminate risk
of 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 two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium to pay the other
party on 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. The Indian insurance market is characterized by the
presence of 'young pensioners', as per an article in the 'Times of India'.

31
 CHAPTER-3

COMPANY PROFILE:

HDFC STANDARD LIFE

32
3.1.OVERVIEW:

The company can take decision according to the suggestions and itwill provide
better experience to the students for their bright carrier. My project will provide
help in these matters which are thus:-Analyze the people perception about
HDFCSL.

To enhance the distribution channel in the selling of insurance policies.

To find out the competitive edge of the company over the

competitors.ABOUT HDFSLICHDFCSLIC stands for Housing Development
Finance corporation
standardlife insurance company. It is incorporated in 1977 as a public limitedco
mpany with the specialization in provision of housing finance toindividualscoo
perative societies and the corporate sector. One significant matter about the
HDFC is that it is first private sector retail housing finance company and it is
listed on both BSE and NSE.

Its market capitalization in June

2002.Standard life insurance is founded in 1825. Standard life wasreincorporate
d as a mutual assurance company in 1925. Its largest mutual life insurance
company in Europe.

For the joint venture between HDFC and SLIC, the discussion commenced in
January 1995 and the agreement signed in October 1995.Further joint venture
agreement renewed in October 1998. In January 2000the life insurance project
teem established in Mumbai. At last the
companyofficially incorporated in 14th August 2000. It is the matter of greatha
ppiness for HDFCSLIC is that it is the first private sector life insurance
company to be granted a certificate of registration in 23rd October, 2000.Today
33
75% shareholding in the hand of HDFC and Standard life has 25%shareholding
in this joint venture.

34
3.2.COMPANY PROFILE:

Incorporated in Aug, 2000 HDFC Standard life is one of the leading private life
insurance companies in India. HDFC Standard Life is a joint venture between
HDFC- Indias housing finance company and Standard plc United Kingdoms
savings and investment Company. HDFC Ltd. holds 72.43% and Standard Life
(Mauritius Holding) Ltd. holds 26% of equity in the joint venture while the rest
is owned by others. When we talk about company profile then HDFC standard
life insurance
company is targeting insurance sector. It is launching various type of insurance
plan and product which is enticing people to buy its plan. As a insurance
company it focus mainly in the recruitment of financial consultant and the
whole company based on it because the aim of company is
toget business and sell lots number of policy and this work is done by financial
consultant. HDFC Standard Life Vision and Values Vision of HDFCSL .The
most successful and admired life insurance company, which mean that we are
the most trusted company, the easiest to deal with, offer the best value for
money, and set the standards in the industry. In short, The most obvious choice
for all For retention in the market and highest market share, we need
trustof our customer. The customer should trust on our policies, services,emplo
ys and they should be friendly with us. It wants to live in the eye and heart of
the customer. It wants to give them the easiest deal so that they can be
understood the terms and policies. As we know that profit is the main aim of
any business but it think not only about his profit but also profit of the
customer. It wants to be the choice of all people on the basis of trust
of customer, delivering high value to the customer, and deliver Of best value of
the money.

35
3.3.OFFICES IN INDIA:

---Extensive branch network reach to customers

Dedicated Email team for resolution of email requests/queries

SMS Services for customers On the Move through SMS key words

Web based services enhanced for customers and channel partners

Constant evaluation and capture of Voice of Customer through renowned

research agencies for experience at various touch points

Drishti Our exclusive Customer Contact Center for customer queries

36
COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE:

Corporate Governance is a process that aims to meet stakeholders aspirations and

societal expectations. It is not a discipline imposed by a Regulator, rather is a
culture that guides the Board, Management and Employees to function towards
best interest of Stakeholders.

At HDFCSL, Corporate Governance philosophy stems from the belief that

corporate governance is a key element in improving efficiency and growth as well
as enhancing investor confidence. Accordingly, the Corporate Governance
philosophy has been scripted as under: As a good corporate citizen, the Company
is committed to sound corporate practices based on its vision, values & principles

37
in building confidence of its various stakeholders, thereby paving the way for its
long term success and sustenance.

At the core of its corporate governance practice is the Board, which oversees how
the management serves and protects the long-term interests of all the stakeholders
of the Company. The Company believes that an active, well-informed and
independent Board is necessary to ensure the highest standards of corporate
governance.

The Companys corporate governance practices are aimed at meeting the corporate
governance requirements as per the IRDA Corporate Governance Guidelines,
besides good practices either recommended by professional bodies or practised by
leading companies in India. .

The following Corporate Governance Policy has been adopted by the Board of
Directors to assist the Board in the exercise of its responsibilities. This Policy is
subject to future amendments or changes, as may be necessary, in the light of the
amendments in various regulations in force for governance requirements.

3.4.OUR VISION AND VALUES

HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India's leading housing finance institution and Standard Life
plc, a Group Company of the Standard Life, UK. HDFC, as on December 31,
2008, holds 72.26 per cent of the paid up equity in the joint venture.

38
Our Vision

'The 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 industry'. In short, 'The most obvious choice
for all'.

Our Values

Values that define how we work:

Integrity Innovation Customer centric People Care Team work Joy and Simplicity

Besides the above (which provides an insight into the Corporate Structure of the
Company), the Committees appointed by the Board focus on specific areas and
take informed decisions within the framework of delegated authority, and make
specific recommendations to the Board on matters within their areas of purview.
All decisions and recommendations of the Committees are placed before the Board
for information or for approoval.

HDFC Life Product Portfolio:

HDFC Standard Life has vast portfolio of retirement plans, children plans, term
plans, savings investment plans and health plans.

Retirement Plan: With rising inflation, its absolutely necessary to make

provisions for the future which makes retirement plan an important financial
decision. Better known as Pension plan, this plan takes care of financial needs after
retirement by investing a part of your savings for limited period. Pension plan
provides steady income after retirement and takes care of daily needs. The pension

39
plans offered by HDFC Life are Personal Pension Plan, Immediate Annuity and
Pension Maximus.

Child Plan: Parenthood brings responsibilities and no one is better judge of that
than you. Child Plan is a plan specifically designed to take care of financial needs
of your child. Child plan provides with necessary funds that will take care of
childs education, marriage etc. By investing small portion of your savings you
secure the financial end of your child. Child plan of HDFC Life are called SL
Youngstar Super II, SL Youngstar Super Premium and Childrens Plan.

Term Plan: A risk plan which provides comprehensive cover for your family in
the unfortunate event of untimely demise. A term life insurance plan provides good
cover at relatively nominal cost and has no survival benefits. HDFC Life term
plans are Term Assurance Plan, Premium Guarantee Plan, Loan Cover Term
Assurance Plan and Home Loan Protection Plan.

Investment Plan: Popularly known as ULIP, an investment plan invests part of

your savings in equity 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 bank are extremely low. ULIPs offered by HDFC Life are

Endowment Assurance Plan, SL Crest, SL ProGrowth Super II, SL ProGrowth

Maximiser, SL New Money Back Plan and Single Premium Whole of Life
Insurance Plan.

Health Plan: Slightly different from health insurance, health plan provides cover
for surgery costs, critical illness. A lump sum is paid irrespective of actual hospital
bill. Critical Care Plan and SurgiCare Plan are HDFC health plan.

40
Distribution Network:

HDFC has wide distribution network with 568 branches and has over 200000
Financial Consultants. HDFC Standard Life also has bancassurance partners-
HDFC Bank, Saraswat Bank and Indian Bank. HDFC products like HDFC SL
Crest, HDFC SL Youngstar Super II, HDFC SL ProGrowth Super II, HDFC SL
Youngstar Super Premium and HDFC SL ProGrowth Maximiser are also
availableonline.

Financial Information:

The total premium earned for the half year ended September 30, 2010 was Rs
35,909 million. The profit after tax for the same period is Rs 646 million. There
have been 1,298 death claims during the period out of which 1,045 claims were
settled and 45 claims were rejected.

Marketing Campaigns:

HDFC Standard Life Insurance has taken dynamic steps as part of changing brand
identity. HDFC Standard life in order to connect to younger target market made a
series of changes. HDFC Standard life dropped the standard word from their

name to make it HDFC Life. HDFC Life also changed their logo depicting more
energy, exuberance, vibrancy, dependability in their brand. HDFC Life also pushed
their tagline sar utha ke jiyo with television commercial, radio ads, print and
other communication mediums. The tagline presents the idea of living life with
dignity which can be achieved through being self dependent and insurance is part
and parcel of the same.

41
Distinctions:

HDFC Standard Life has been adjudged one of the Best Companies to Work
for in India in 2010. The company participated in the Great Places to Work
study for the first time and ranked first in the insurance category.

HDFC Standard Lifes YoungStar Super has been voted Product of the
Year 2010 in the 'Insurance' category by more than 30,000 consumers
nationwide across 36 markets. The consumer study on product innovation in
India was conducted by A C Nielsen, the leading global research firm.

HDFC Standard Life has received the CIO The Ingenious 100 - 2009
Award, for ATLAS (Agency Training Licensing and Servicing System).
Additionally, the company has received the CIO 100 Security Award 2009
for pioneering LANDesk Management and Security Suite security
implementation and taking its security to a higher level of technological
excellence.

HDFC Standard Life has received the Diamond EDGE Award 2009 for its
mobile workforce portal - Consultant Corner. EDGE - Enterprises Driving
Growth and Excellence (using IT) is an initiative by the ,Network
Computing magazine to identify, recognize, and honor end-user companies
in India that have demonstrated the best use of technology to solve a
business problem, improve business competitiveness, and deliver
quantifiable ROI to stakeholders.

42
3.5.ASSOCIATE COMPANIES:
1. HDFC Limited

2. HDFC Bank

3. HDFC Asset Management Co. Limited

4. HDFC Securities Limited

5. HDFC Standard Life Insurance Company

6. Intel net Global

7. CIBIL Credit Information Bureau Investigation Ltd

8. HDFC Chubb General Insurance

OTHER COMPANIES:

HDFC Trustee Company Ltd.

GRUH Finance Ltd.

HDFC Developers Ltd.

HDFC Property Ventures Ltd.

HDFC Ventures Trustee Company Ltd.

HDFC Investments Ltd.

HDFC Holdings Ltd.

43
 Credit Information Bureau (India) Ltd

HDFC Securities

44
3.6.PRODUCT OF HDFCSL:

As we know that lots of insurance plan are playing in the market of

differentcompanies. HDCFSL has launched various insurance plans which based
onunit link plan. It invests the investment of his consumer in bank
deposits,Government securities and Bonds, and Equity. The percentage of theseinv
estments in these plans depends upon the consumer whether he wants totake more
risk and more return or less risk or less return. It has launchedseveral insurance
plans which are thus in the table:-

1.Unit link pension plan

2.Unit linked pension plus

3.Unit linked enhanced life protection II

4. Unit linked young star plus II

5.Endowment assurance plan

6.Children plan

7.Money back plan

8.Single premium whole of life plan

9.Personal pension plan

10.Saving assurance plan

11.Assure plan

45
Products list:

Retirement/Pension Plan HDFC Personal Pension Plan

Retirement/Pension Plan HDFC Immediate Annuity

Retirement/Pension Plan HDFC SL Pension Maximus

Child Plan HDFC Childrens Plan

Child Plan HDFC SL Youngstar Super II

Child Plan HDFC SL Youngstar Super Premium

Term Plan HDFC Term Assurance Plan

Term Plan HDFC Premium Guarantee Plan

Term Plan HDFC Loan Cover Term Assurance

Plan

Term Plan HDFC Home Loan Protection Plan

Savings and Investment Plan HDFC SL Crest

Savings and Investment Plan HDFC Endowment Assurance Plan

Savings and Investment Plan HDFC SL ProGrowth Super II

Savings and Investment Plan HDFC SL ProGrowth Maximiser

Savings and Investment Plan HDFC SL New Money Back Plan

Savings and Investment Plan HDFC Single Premium Whole of

Life Insurance Plan

46
 Savings and Investment Plan HDFC Assurance Plan

Savings and Investment Plan HDFC Savings Assurance Plan

Health Plan HDFC Critical Care Plan

Health Plan HDFC SurgiCare Plan

HDFC SL CREST:

Guaranteed highest net asset value (NAV) plans are gaining prominence in the
market. This is due to the fact that they satisfy customer needs and offer a new
avenue for insurers to sell their services especially after the implementation of the
new guidelines. The new Ulip season has a number of such plans.

HDFC SL CREST is a unique guaranteed highest NAV plan launched by HDFC

Standard Life Insurance. This is a short-term plan leaning more towards
investment than insurance. The premium payment term under the plan is limited to
five years and the policy tenure is fixed for 10 years.

The plan offers two investment strategies, namely, free asset allocation and highest
NAV guaranteed option. The highest NAV fund guarantees a minimum of Rs 15 or
highest NAV during the initial
seven years of the fund or the
NAV on the date of maturity
(whichever is higher) to the
policyholder. The free asset
allocation strategy provides five

47
investment options (funds) for policyholders.

One can choose from equity, debt or balanced portfolio. For instance, blue chip
and opportunity are equity based, whereas short term and income funds are debt
based. Those looking for a balanced portfolio can opt for the balanced fund and
highest NAV guaranteed fund.

HDFC CHILDREN PLAN:

Children's Plans helps you save so that you can fulfill your child's dreams and
aspirations. These plans go a long way in securing your child's future by financing
the key milestones in their lives even if you are no longer around to oversee them.
As a parent, you wish to provide your child with the very best that life offers, the
best possible education, marriage and life style.

Most of these goals have a price tag attached and unless you plan your finances
carefully, you may not be able to provide the required economic support to your
child when you need it the most. For example, with the high and rising costs of
education, if you are not financially prepared, your child may miss an opportunity
of a lifetime.

Today, a 2-year MBA course at a premiere management institute would cost you
nearly Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later,
you would need almost Rs. 9,07,680/- to finance your child's MBA degree.

An illustration of how education expenses could rise with passing time due to
inflation. So, how can you cope with these costs? Children's Plans help you save
steadily over the long term so that you can secure your child's future needs, be it
higher education, marriage or anything else. A small sum invested by you regularly

48
can help you build a decent corpus over a period of time and go a long way in
providing your child a secured financial future alongwith.

Source: HDFC Standard Life Survey 2008. Inflation assumed as 6% p.a.

The plan can be taken by those in the 18-60 age group with the maximum age at
maturity being 75. The minimum and maximum terms are 10 and 25 years
respectively. Under this plan, the payer of the premiums is the life insured and the
child is the beneficiary. The plan is available in three variants.

49
 They are:

Maturity Benefit Plan

Should the life insured die during the term of the plan, the future premiums are
waived and the policy continues till maturity. On maturity, the beneficiary will
receive the sum assured and the accumulated bonuses. Bonuses under this plan are
of reversionary nature and are on sum assured (non-compounded).

Accelerated Benefit Plan

If the life insured dies the beneficiary will receive the sum assured and the
accumulated bonuses immediately, and the policy will terminate. Should the life
assured survive up to maturity, the sum assured and the bonuses will be paid.

Double Benefit Plan

Under this plan, on the death of the life insured during the premium paying term,
the beneficiary will receive the sum assured, and the future premiums are waived.
On maturity, the beneficiary will receive an additional sum assured plus bonuses.

50
HDFC Endowment Assurance Plan:

As a judicious family man, your priority is to secure the well-being of those who
depend on you. Not just for today, but also for the long term. With our HDFC
Endowment Assurance Plan, you can start building your savings today and ensure
that your family remains financially independent, even when you are not around.
This 'With Profits' plan is designed to secure your family's future by giving your
family a guaranteed lump sum on maturity or in case of your unfortunate demise,
early into the policy term.

Advantages:

Ideal way to secure your long-term financial goals and your family's
financial independence by giving a lump sum payment (basic Sum Assured
plus any Bonus Additions) on survival up to Maturity date

Provides invaluable protection to your family by way of lump sum payment

in case of unfortunate demise within policy term

51
 Gives you the flexibility to customise your policy according to your needs
by adding any one of the 3benefit options available

You can choose to pay your premium as either Annually, Half-Yearly or

Quarterly depending on your convenience. You also have a range of
convenient auto premium payment options

Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961

52
HDFC Life Smart Woman Plan:

HDFC Life Smart Woman Plan, a unique insurance cum investment plan designed
specifically for women. This plan ensures that your savings continue, while you
adjust to the new stages of your life, and you remain confident to live life your
way.

The plan comes with comprehensive coverage options where we will cover you
against pregnancy complications and congenital conditions or for malignant
female-specific cancers. During these critical moments, we assure you the peace of
mind by waiving and funding your premiums so that as you overcome and adjust
to your life your investments continue to grow.

FEATURES:

53
Advantages:

Choose plan options as per your needs i.e. Classic or Premier or Elite

Uninterrupted savings with Waiver & funding of premiums for next 3 years
on the following events

o Pregnancy complications or birth of child with congenital disorder

o Diagnosis of malignant cancer of female organs

o Death of spouse (Only with Elite option)

Additional periodic cash payouts under Premier & Elite Options

This plan provides valuable protection to your family in case you are not
around. In case of your unfortunate demise during the policy term, we will
pay the greater of the Sum Assured or your total fund value to your nominee.

On maturity, you can take the Fund Value at the prevailing unit prices as
lump sum or you can opt for settlement option. You can use the maturity
benefit to fund your needs - be it for child's education, travel, upgrading
your entrepreneurship venture etc.

You have flexibility to make partial withdrawals to meet any unplanned

expenses

54
Unit Linked Enhanced Life Protection II

The massage of this policy is invest in financial security and self respectfor you
and your family. In this policy, the investment risk in investment portfolio is
borne by the policyholder. In our life I try to give the very best toour family and
there is no reason why they should not get the very best inthe future too. This plan
gives financially independent, even if you are notaround.

Benefits of this planThe HDFC Unit Linked Enhanced Life Protection II gives

1) Valuable protection to your family in case you are not around

2) Increasing insurance cover every year.

3) An outstanding investment opportunity by providing a choice f thoroughly resea

rched and select investment.

.4) Flexible premium payment options.

HDFC Life has a strong presence across India:

481 branches

5,000+ partner bank branches

Strong team of 3,000 Front Line Sales (FLS) serving partner bank branches.

55
3.7.AWARDS AND ACCOLADE OF HDFCSL AWARDSAPRAIL:

Product of the year 2010 award for HDFC Young Star Super

Global consumer recognition standard that recognizes the best innovations in

retail products

A consumer verdict for best innovations

based on a survey of 30,000 Indian consumers by AC Nielsen

Innovative product features appreciated by customers

triple insurance benefit,

bumper additions,

low premium allocation charges,

low fund management charges; and

low policy administration charges

CIO 100 The Bold 100, 2008 for Mobile workforce Solution (Consultant Corner)

CIO 100 Special Award for IT Security, 2008

CQUEST Best IT Implementation Scale Of Deployment, 2008 for Workforce

Mobility

Intelligent Enterprise Award by the Express Computer Magazine Part of

the Indian Express Group, 2006

56
 HDFC Standard Life ranked 29th most trusted Indian Brands amongst the Top
50 Service Brands to a study conducted by the Brand Equity Economic Times,
2008

'4Ps Power Brand 2006', for being one of India's Top 25 'Most Innovative
Companies' in an exclusive survey conducted by ICMR (Indian Council of Market
Research) and 4Ps - Business and Marketing (a Business and Marketing magazine
published by Planman Media 2008.

57
3.8.ORGANIZATION STRUCTURE:

58
COMPETITORS:

59
 CHAPTER -4
RESEARCH DESIGN

60
4.1.RESEARCH METHODOLOGY:

Data collection:

For data collection, I developed a well defined questionnaire as a research

instrument ,consisting questions aimed to measure the consumer perception about
insurance companyin India, their views and comments about Companys structure.
I conducted unstructured interviews (sample size) of 100 persons of different age
group in time duration of threedays. All the data generated was primary data that
was generated from different peoplesof age group under NCR region.

Primary data:

Individual respondents, Chartered

Accountants,TaxConsultants, Insurance Agents, Auto loan providers were personal
ly visited andinterviewed. They were the main source of Primary data. The method
of collection of primary data was direct personal interview through a structured
questionnaire.

Secondary Data:

It was collected from internal sources. The secondary data was collected on the
basis of organizational file, official records, newspapers, magazines, management
books, preservedinformation in the companys database and website of the
company.

61
4.2.RESEARCH OBJECTIVES:

To know about the types of insurance policy taken by consumer

To know about the total sum assured of life insurance

To know about the total sum assured of life insurance for the spouse

To know about the share of public insurance in insurance sector

To know about the share of LIC in life insurance in insurance sector

To know about the reasons for investment in life insurance

The main aim of the research was to explore consumers attitudes to allowing
insurance companies to access results of genetic tests for the purpose of risk
assessment and premiumsetting. More specifically, the objectives of the research
were:

Proper understanding and analysis of life insurance industry.

To know about brand awareness of HDFC Life Insurance and

customers preference HDFC Life Insurance.

Conduct market survey on a sample selected from the entire population and
deriveopinion on that research.

To help company in establishing a network of Life Insurance Advisors and

to promote the benefits those are provided by HDFC Life Insurance.

To explore consumers understanding of life insurance companies use of

differentfactors in assessing risk.

62
To understand consumers attitudes to life insurance companies use of
differentfactors in assessing risk.

These factors included sex, age, smoking status, current and past health,family
history of cancer or heart disease, and genetic make-up.

To determine if the use of genetic test results by life insurance companies

woulddeter consumers from having such tests.

To explore consumer attitudes to disclosure of information to insurance

companies.

Attitudes to voluntary and involuntary disclosure.

To gain an understanding of why consumers hold particular attitudes.

4.3.Research design:

Research was initiated by examining the secondary data to gain insight into the
problem.The primary data is evaluated on the basis of the analysis of the secondary
data.

Developing the research plan:

The data for this research project has been collected through self administration.
Due totime limitation and other constraints direct personal interview method is
used. A structuredquestionnaire was framed as it is less time consuming, generates
specific and to the pointinformation, easier to tabulate and interpret. Moreover
respondents prefer to give directanswers. In questionnaires open ended and closed
ended, both the types of questions has been used.

63
Sampling plan

Since it is not possible to study whole population, it is necessary to obtain

representativesamples from the population to understand its characteristics.

Sampling Units:

Individual respondents for studying Customer Buying Behavior and Market

Segmentation,selected randomly from different areas in NCR, like various
shopping malls and markets,Government Offices. Chartered Accountants, Tax
Consultants, Lawyers, Business Men,Professionals and House Wives of for
recruitment of Life Insurance Advisors

Sample Technique:

Random Sampling

Research Instrument:

Structured Questionnaire

Contact Method:

Personal Interview

Sample size

Study of Customer Buying Behavior and Market Segmentation: 100Respondents

Data collection instrument development

The mode of collection of data is based on Survey Method and Field Activity.
Primary datacollection is based on personal interview. I have prepared the
questionnaire according tothe necessity of the data to be collected.

64
4.4.Research limitations

The research is confined to certain parts of NCR and does not necessarily show
a pattern applicable to all of country.

Some respondents were reluctant to divulge personal information which can

affectthe validity of all responses.In a rapidly changing industry, analysis on one
day or in one segment can change veryquickly. The environmental changes are
vital to be considered in order to assimilate the findings.

65
 CHAPTER -5
FINDINGS & ANALYSIS

66
I have presented below the project findings and analysis, addressed to the
respondents togauge the attitude, perception and consumer behavior of the people
toward life insurance.

5.1.SWOT ANALYSIS OF HDFC STANDARD LIFE INSURANCE:

Analysis of the industrys environment:

HDFC and Standard Life first came together for a possible joint venture, to enter
the life Insurance market, in January 1995. It was clear from the outset that both
companies shared similar values and beliefs and a strong relationship quickly
formed. In October 1995, the companies signed a 3-year joint venture agreement.

5.1.1.STRENGTH:
1. Domestic image of HDFC supported by Prudentials international image is
strength of the company.
2. Strong and well spread network of qualified intermediaries and sales person.
3. Strong capital and reserve base.
4. The company provides customer service of the highest order.
5. Huge basket of product range which are suitable to all age and income groups.
6. Large pool of technically skilled manpower with in depth knowledge and
understanding of the market.
7. The company also provides innovative products to cater to different needs of
different customers.

5.1.2.WEAKNESS:
1. Heavy management expenses and administrative costs.
2. Low customer confidence on the private players.
3. Vertical hierarchical reporting structure with many designations and cadres

67
leading to power politics at all levels without any exception.
4. Poor retention percentage of tied up agents.

5.1.3.OPPORTUNITIES:
1. Insurable population According to ING only 10% of the population is insured,
which represents around 30% of the insurable population. This suggests more than
300m people, with the potential to buy insurance, remain uninsured.
2. There will be inflow of managerial and financial expertise from the worlds
leading insurance markets. Further the burden of educating consumers will also be
shared among many players.
3. International companies will help in building world class expertise in local
market by introducing the best global practices.
4. Insurance liberalization in India is expected to result in a wider choice of major
commercial insurance covers, such as fire, export credit.

5.1.4.THREATS :

1. Legislation could impact.

2. Great risk involved

3. Very high competition prevailing in the industry.

4. Vulnerable to reactive attack by major competitors.

5. Lack of infrastructure in rural areas could constrain investment.

6. High volume/low cost market is intensely competitive.

68
5.2 Findings-Graphs

1.Market share of the key players in the life insurance sector in India:

Employed customers

The question was asked to that the policy holder is job holder or not?

INTERPRETATION

It was founded that 83% customers who have taken the policy are job oriented.

69
2.BENEFIT OF INSURANCE:

What is the main cause of taking the life insurance policy?

Future Security--59%

Tax Deductions--28%

Future Investment--13%

INTERPRETATION

The majority of consumer find it as future security followed by tax saving.

70
3.Satisfied with the policy:
The question was asked to know that what percentage of customers is satisfied
with the policies.

INTERPRETATION

It was founded that majority of customer are not satisfied with their current policy.

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4.Which sector customer chose public or private?

INTERPRETATION

After the survey it was found that still major portion of customers go for public
insurancecompanies, but with the entry of more and more private companies the
scenario is changingrapidly, people need of more and better returns are opting for
private companies, and thiscan be justified by the increasing market share of
private companies in the Indian insurancesector. There are various ways in which
private companies are found much more lucrativethan public companies and the
fact which support this statement are as follows:

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1.Versatility of products

2.Efficient fund managers

3.Better customer services

4.More returns

5.Regular follow up

6.Quicker settlement

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5.Where do private life insurance companies need to improve?

This question was asked to know where private companies are lacking. It might
be in termof service, return, information, verity or easy claim.

INTERPRETATION

From the research it was found that there is a need for the private player to
improvement incertain sector to complete with the government sector companies,
majority of the People
think that people think that private companies need to improve in easy claim andinf
ormation.

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TOTAL SUM ASSURED OF LIFE INSURANCE:

Explains about the types of insurance taken by consumer. About 20.20 %

respondents have taken vehicle insurance, 19.61 % respondents have taken term
cover insurance, 14.6 % respondents have taken medical/health insurance,
purchase, 11.1 % respondents have taken personal accident insurance, 10.60 %
respondents have taken unit linked insurance plan and 7.13 % respondents have
taken pension plan etc.

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TOTAL SUM ASSURED OF LIFE INSURANCE FOR THE SPOUSE:

Explains about the total sum assured of life insurance for the spouses. About 695
respondents having sum assured of life insurance for the spouses less than Rs 10
lakh, 132 respondents having sum assured of life insurance for the spouses
between Rs 10 lakh to Rs 20 lakh, 39 respondents having sum assured of life
insurance for the spouses between Rs 20 lakh to Rs 50 lakh and 1067 respondents
have not taken any sum assured life insurance for the spouses etc.

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REASONS FOR INVESTING IN LIFE INSURANCE:

The figure explains about the reason for investing in life Insurance. About 35.70 %
respondents have invested in life insurance due to higher risk coverage and 32.43%
respondents have invested in life insurance for tax saving.

Explains about the reasons for investing in life Insurance. About 35.70 %
respondents have invested in life insurance due to higher risk coverage, 32.43%
respondents have invested in life insurance for tax saving and 19.65 % respondents
have invested in life insurance due to easy way to invest.

77
CHAPTER -6
CONCLUSION

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6.1.CONCLUSION:
HDFCSLIC is the renounce industry in the insurance sector. It believes in quality
not in quantity. HDFC have total 12 group companies. It is the first insurance
company who has gotten the license of insurance in firstly. It has started its
insurance industry with the joint venture of U.K. based standard life insurance
company .In the insurance sector main work is done by the financial consultant
who brings business to the industry. It gives more priority for the recruitment of
financial consultant thats why it has setup 5-qscore. It gives priority that is
professional like as MBA, CA, ENGINEERS, DOCTORS,LAYERS, AND
OTHER PROFESSIONAL. During summer training I have given presentation in
study centre of IGNOU and SIKKIM MANIPAL and phone call, and try to contact
those person to whom I know and contact them for the purpose of financial
consultant. In this process I have recruited 12 people who are either
CA,MBA, SOFTWARE ENGINEER, STUDENT, OR EMPLOY OF THEORGA
NISATION.It gives more facilities to their employ and provides better opportunity
to their employ for promotion because it has minimum target for fulfillment. FC
have to give 36 policy or 360 lack premium with in six months which less in
comparison to the other insurance industry and for Delhi region where the
transaction of money is too high. FC has chances to become sales development
manager with in six month months when he fulfills the target. The post of SDM is
based on payroll. He will get package of 2.75 lack per year. India is one of the
most lucrative financial services market in the world. The insurance market in
India is estimated to be around 400Bn growing at an astounding rate of 30% p.a.
Still the experts believe that the potential is largely untapped. The insurance market
is dominated by the public sector giant LIC with a market share of around 71.4%.

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With the private players leading the growth story, this sector is witnessing more
marketing actions than even the FMCG sector. Traditionally insurance are sold
through direct selling The reason being purely the nature of product warrants direct
communication with the consumer. Kilter categorizes Insurance as an "Unsought"
product. Unsought products are those which are ranked lowest in terms of
consumer interest .Consumers may not be even aware of either the need or
existence of this product. Historically, Indian insurance products are sold for
wrong reasons. People buy insurance to avail the tax benefit and not to ensure
protection and LIC was happy to oblige. Hence most of the sales talks start with
the question " How much do you pay tax?" . Little money was spent on
brand building because there was no competition for LIC. Things have now
changed. With the increasing financial literacy, volatile economy and uncertain
future are prompting Indians to look seriously at insurance as a means for
protection rather than tax saving instrument. With more private players entering
the domain, the issues of differentiation and branding became important. HDFC
Standard Life Insurance (HDFCSL) is one of the major players in theinsurance
market. One of the first private insurers to enter the market, HDFC SL entered the
scene in 2000. It is a joint venture between the housing finance major HDFC and
the UK insurance giant Standard
Life. Now a days we are seeing a lot of media action from this company.Although
a slow starter HDFC SL was having a small share of the pie. It was eclipsed by
ICICI prudential with its media and sales blitz making it second largest player in
the Insurance market. 2006 saw a shake up in this market with Bajaj Allianz
edging out ICICI from the second spot . Bajaj have a market share of around 8%
and HDFC SL and ICICI fighting at 3rd place with around 7.5%.HDFC is
currently focusing on The Pension Plan and the Child Plan aiming to cash in on the
potential of these segments. The pension market in India is estimated to be around
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1000 crore with a huge potential for growth in the future. The change in the
demographics is going to drive the pension market in India. Traditionally in a Joint
family, there was an inherent protection for elders. With the urbanization and the
evolution of Nuclear Urban Family( NUF) , elders are often forgotten. Out of the
314 men workers in India only 11% has some sort of old age security. People
earlier depend on social security products like EPF and PPF to build a corpus for
their golden years. It is this potential that has encouraged HDFC to promote its
pension plans. Introduced in 2002, this product has been well received by the
consumers. The ads are well executed and revolve around the positioning of
"Respect Yourself" The target segment being the 30 year old family man. The
basic theme of the campaign is to appeal to the self respect of these men who are in
their prime of their career. "Even after retirement let your hands give rather than
receive" is one of the best themes for a pension plan. Since I am in that category,
these ads strike a chord in me and remind me of the need to plan for my retirement.
The same theme is carried to the Child plan also. Although these campaigns will
help to invoke an interest in TG, the market is in its nascent stage and lot of
convincing has to be done to crack this huge market. One of the stumbling block
being the expensive annuity plans. For example, it takes a 2 lakh corpus to
generate Rs 1000 per month pension. Also if you put 10000 per month in a pension
plan if you are 30 yrs old,

what you will get after 20 years is a monthly pension of 10000. (Correct me if I am
wrong). So it looks unattractive in the first look compared to MFs. HDFC Standard
Life has correctly identified the pulse of the target market and is all set to reap the
benefits.

With increase in population and income there is a wide scope in insurance sector.
Insurance sector provides some security to the consumer for any type of miss

81
happening. In this sector, IRDA plays an important role and time to time gives
important guide lines to various companies. Still, LIC plays an important role and
has maximum share in this sector. Recently banking sector has also moved towards
insurance sector since they would get better dividends than the commission they
would get by entering into partnerships with other major insurance market players.
Union Bank, Federal Bank, Allahabad Bank, Bank of India, Karnataka Bank,
Indian Overseas Bank, Bank of Maharashtra, Bank of Baroda, Punjab National
Bank, and Dena Bank are planning to enter in this sector. Among private sectors
Max New York insurance company plays a vital role. There are various factors that
affect the consumer buying decision and also influence consumer thinking when
they are planning to invest in insurance scheme .Major respondents generally
prefer insurance like vehicle insurance, term cover insurance, medical/health
insurance and they also prefer sum assured of life insurance less than Rs 10 lakh.
Most of the respondents show their interest in life insurance having higher risk
coverage and also for tax saving purpose.

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6.1.FACTORS INFLUENCING CONSUMER BEHAVIOUR:

1. Social factor: Social factor divides the society into a hierarchy of distinct
classes. The members of each class have relatively the same status and
members of other classes have either more or less status. It includes family,
group, celebrity etc.
2. Cultural factor: It has potent influences that are brought up to follow the
beliefs, values and customs of their society and to avoid behavior that is
judged acceptable. Beliefs, values and customs set subculture apart from
other members of the same society. Thus sub-culture is a distinct cultural
group that exists as an identifiable segment, within a larger, more complex
society.
3. Personal factor: It is a very important factor. Personal factors also influence
buyers behavior. They include age, income, occupation, life style. They
simply direct our outer personality.
4. Psychology factor: The buying behavior of consumer is influenced by a
number of psychological factors which includes motivation, perception,
learning, beliefs and attitude and personality.

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6.3.SUGGESTION:

When we talk about suggestion I think I have small experience of this sector but
whatever I have pointed out which are thus.

In the recruitment of financial consultant I found that mostly person dont want
to give rs.925 or rs.825. I have faced some difficulties when they dont agree to
give this much amount. If the company willless this charge then it will get more
FC.

It should organize weakly meeting with FC for the business and give appraisal
training to FC. It works as a performance appraisal of the FC.

It should give monthly party to the FC for the attachment with the industry.

It should give canopy facility to CDM or RC for the recruitment of FC and if it

will give canopy facility to FC then they can give more facility.

Generally we buy only that thing whatever we see. It means that its hould spend
more on advertisement. Other insurance industry like LIC and ICICI advertise
mostly through banner on metro station, on road and advertise in the cinema hall.
Add more and more movie hall for the advertisement.

The role of recruitment is not easy so it should increase commission or give

salary instead of commission so that RC will take more interest in the recruitment
on financial consultant.

Regular canopy should be established such areas like metro

Stations,college campus, and malls, supermarket, and hypermarket for the purpose
of recruitment FC and getting business form FC.

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6.4.LIMITATIONS OF THE STUDY:

The information given in the above part is based on market survey, meeting with
the people, and phone calls, and the other medium like internet and browser of
HDFCSL. My project is based upon the interaction with the people for the purpose
of recruitment of Financial Consultant. My study is totally based on the perception
of the people that what they think about the insurance when someone offer him to
work in the insurance sector. I analyze that the person who is needy for money,
greedy about fast life and
believesin speed join insurance because this sector gives you a platform for unlimit
ed earning and life time earning like life time validity in mobile phone.

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7.QUESTIONNAIRE

A STUDY CONDUCTED TO UNDERSTAND THE

CONSUMERSPERCEPTION ABOUT LIFE INSURANCE POLICIES

1.Name:____________________________________________________________

2. Age: ___________________________________________________________

3.Address:__________________________________________________________
____ ______________________________________________________________

4.Phonenumber:____________________________________________________

5.Occupation:______________________________________________________

6. Monthly income:

o<5000

o5001-10,000

o10,000-15,000

o15,001-20000

o20,001-25,000

>25,0007.

7.Do You Own

O House

o Two Wheeler

o Car

8. Do you have a Life Insurance Policy with any Life Insurance Company?

O Yes

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o No

a)If yes, name the

Company________________________________________________

b)Name the policy which you

own___________________________________________

9. What factors do you consider while selecting a life insurance company?

O Premium Outflow

o Company Reputation

o Service Quality

o Product Quality

o Return on Investment

10.What factors influenced to select a Life Insurance company?

O Personal interest

o Friends

o Family

o Agents

o Advertisements

o Others

11. What is the value of your life insurance?

o>10,000

o10,000-25,000

o25,000-50,000

o50,000-1,00,000

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o>1,00,000

12. Do you prefer to invest your money in a Insurance company or in a Bank?

oInsurance Company

oBank

13. Are you satisfied with your current Life Insurance Company?

oYes

oNo

If Yes Why?
____________________________________________________________ If No
Why? _____________________________________________________________

14. How do you rate the service offered by your Life Insurance Company?

oExcellent

oVery Good

oGood

oAverage

oPoor

15. Would you like to communicate the service offered by your Life Insurance
Company toothers?

oYes

o No

16. How many Life insurance Companies do you know?

o<5

o5-7

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o8-10

o>10

17. How do you rate the following Life Insurance Companies?

oLIC

oHDFC

oING Vysya

oMet life India insurance

oBirla sun life

oICICI Prudential

oTATA AIG

18. Would you like to continue with the same Life Insurance Company?

oYes

oNo

19. Any suggestions for improving the service offered by life insurance
companies _________________________________________________________
__________ _______________________________________________________
____________ _____________________________________________________
______________ ___________________________________________________
____________

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8.RESUME:

SURYA PRAKASH TIWARI

C/O M.SHARIF

1/138,VIRAJ KHAND,NEAR JAGRAN PUBLIC SCHOOL

GOMTI NAGAR,LUCKNOW-226001

Mobile: 91 9616481348

E-mail:--prakash.amity@gmail.com

Date of Birth: 10/07/1990

CAREER OBJECTIVE

Seeking a challenging opportunity in a result oriented company where my

knowledge and acquired skills can be applied towards the growth and development
of the company.

EDUCATION :

Qualifications Specialization Board/Univ. Year CGPA/%age

MBA MARKETING AMITY BUSINESS 2011-2013 6.00 in 1st

& IT* SCHOOL,LUCKNO sem(CGPA)
W

B.E CSE VMKV ENGG 2007-2011 78.0%

COLLEGE,Salem

12TH SCIENCE CBSE,K.N.I.C.E,SU 2004-2006 57.3%

LTANPUR

10TH SCIENCE CBSE,S.V.M 2002-2004 67.8%

,SULTANPUR

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COMPUTER SKILLS:

Good Knowledge of Microsoft Office

Internet proficiency.

MS Office.

Basic Knowledge of Programming Languages like C,C++,C#

(certification).

Proficient in Word, Excel, PowerPoint, internet and email.

Office tools: Microsoft Office package (Word, Excel and PowerPoint).

Operating Systems: Windows XP, Vista, 2007, 2000 & 98.

RELATED COURSEWORK:

Computer Information Systems for Business: Acquired a strong

understanding of software applications such as the Microsoft Office Suite.
Prepared numerous presentations and reports using Excel, PowerPoint and
Word.

Special Project on Corporate e-applications: Closely examined the use

and effectiveness of e-applications in the corporate world.

PROFESSIONAL ACTIVITIES:

Seminars / Conferences Attended:

Attended state level seminar on Ethical Hacking -2009 taken by sunny

Vagela.

Won 2nd price in Science-expo 2008 at VMKV Engg College.

Participated in TechCare-2010 at DHS Information Private

Limited,Banglore.

Participated in worlshop on National Workshop On Nano Science

Instrumentation at VMKV Engg college.

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 Completed soft skill training conducted by HP Education India at VMKV
Engg College.

Personal Skills & Attributes:

Honesty, team player,Ready to learn, Self confidence.

Project and deadline oriented team player.

Able to multitask in busy work environment.

Interests / Hobbies:

Listening music, roaming with friends, Surfing, Chatting

Languages: Proficient in Hindi & English

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