Tariq Ali 1

Customer Satisfaction towards HDFC LIFE EXECUTIVE SYNOPSIS
STATEMENT OF PROBLEM:
The objective of every company is to ensure customer satisfaction, which in turn creates loyal customers. Measuring customer satisfaction is always a challenge, as customer either would not disclose or sometimes do not assess their satisfaction level clearly. Many times the customer can not specify the reasons for his satisfaction.
NEED FOR THE STUDY:

HDFC Life believes in satisfactory delivery of service quality to the customer, but due to unknown reasons that the customer satisfaction analyzed by the company is not up to the make. The company intends to find out the causes and remedies for the low customer satisfaction.
OBJECTIVES OF THE STUDY
To understand the customer satisfaction levels with HDFC Standard Life. To identify the factors influencing the customers to deal with HDFC Standard Life.
To identify the customers suggestions with respect to HDFC Standard Life. To understand the marketing strategies adopted by HDFC Standard Life. To understand the different services provided by HDFC Standard Life.
GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 1
Customer Satisfaction towards HDFC LIFE
LIMITATIONS OF THE STUDY
It is primarily a micro level study. Due to constraints of time only Kadapa Dist. is selected and so it cannot claim to be a comprehensive study of the population.
The sample size is restricted to 100 respondents. The data is obtained through a structured questionnaire and it has its own limitations in its analysis and interpretation.
FINDINGS
1. From the survey it is found that every body is aware of HDFC life. 2. Nearly 60% of the respondents are highly satisfied with the quality of HDFC life. 3. From the study it is found that when compared to other brands, HDFC life giving services to their customer in highly manner. 4. 65% of the customers are satisfied with the after sales service provided by HDFC life. 5. 4% customers are known about The HDFC life through print media, 2% customers are known about the Heft life through television 64% through friends and 30% through dealers. 6. 39 % customers have strongly agreed that the HDFC life company is best company in a AP while 33% have not decided, 28% of disagreed. 7. 50 % of the people are regular customers and 50% people are not regular customers to the HDFC life insurance. 8. 10% customers are interested to buy the insurance directly from company while 47% through dealers, 3 % through brokers, 2% through friends and 38% through sales. 9. 2% have strongly agreed that the HDFC life company mainly concentrates on agricultural sector, while 44% have agreed and 54% have not decided. 10. 61 % are customers of HDFC life Company less than 6 month while 32% are since 6- 12 months, 3% 1to 2 years and 4% are since more than 8 years. 11. 38 % customers have strongly agreed that they share the information with the friends and relation while 61% have agreed and 1% has strongly disagreed. 12. 27% customers have strongly agreed that the company concentrates on the rural market more than urban market while 43% customers have agreed 26 % have disagreed and 4% have strongly disagreed. 13. 10 % have strongly agreed that HDFC life has highest market share in south GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 3
Customer Satisfaction towards HDFC LIFE India while 62% have agreed 28 % have not decided.
SUGGESTIONS
1. The company has to improve the communication of marketing strategies . 2. The company has to increase the sales promotion activities to counteract the competitors effectively. 3. The company has to enhance the service quality by being empathetic, responsive and reliable towards the customers complaints. 4. The company executives have to visit the regular customers to diagnose the problems and to find a feasible solution to them. 5. The employees of the company have to be more responsive towards the customers problems. 6. The company has to enhance the lead time to 3 weeks ( as the majority of the customers are requesting for it and other companies are offering it )
INTRODUCTION
CUSTOMER SATISFACTION
Meaning: The contentment which the customer gets when the performance of the product meets the customers expectations, it is termed as Customer Satisfaction.
Definition: Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy If the consumers are satisfied with the product they can be easily get into utilization. So these preferences should be satisfied with the utilization Survey. The Consumers are becoming very conscious about the quality, credit price, strengthens, durability of the product. They need better at competitive price. To know about the preferred media of advertising and other factors. An opinion survey has been conducted in Andhra Pradesh for a period of one month and the findings have been presented with suitable a suggestion for the improvement .It has been felt that well conceived and organized industries have to be developed in rural areas. Which would be essential for the speedy growth of cement production in the country and the major survey is based on the responses of the Customers GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 5
CHAPTER-I
INDUSTRY PROFILE
INTRODUCTION: In recent times, there has been growing awareness about life insurance products and the various benefits they offer to individuals. Offerings like unit linked insurance plans (ULIPs) have done their bit to draw individuals towards the insurance segment. Also tax benefits, presently under Section 80C of the Income Tax Act, have contributed to their allure and helped in popularizing insurance products. Conversely, there are products like medical insurance or mediclaim as it is commonly referred to, which can add value to an individuals insurance portfolio, but are relatively lesser known. Lets start off with why people need Life Insurance in the first place. An insurance policy is primarily meant to protect the income of the familys breadwinners. The idea is if any one or both die, their dependents may hereto continue to live comfortably. The circle of life begins at birth, followed by education, marriage and eventually, after a lifetime of work, we look forward to a life of retirement. Our finances too tend to change as we go through the various phases of our life. In the first twenty years of our life, we are financially and emotionally dependent on our parents and there are no financial commitments to be met. In the next twenty years, we gain financial independence and provide for our families. This is also the stage when our income may be insufficient to meet the growing expenses of a young household. In the following twenty years, as our children grow and become financially independent, we see our savings grow, a nest egg put away for life after retirement. The final twenty years of life, post retirement is the time to reap the rewards of our hard work. It is important to remember that with time, our GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 6
Customer Satisfaction towards HDFC LIFE needs and aspirations tend to change and we have to ensure that we have a suitably dynamic financial plan
WHY LIFE INSURANCE?
Very often it is said that before you let the worry get into your head, buy Life Insurance. Why? Life Insurance provides protection to your family - your family gets a specified sum in a lump sum when they need it the most i.e. when you are not around. While the emotional loss cannot be mitigated, the lump sum received from an insurance company can help take care of your familys financial future. Life Insurance policies also offer tax benefits though tax saving should not be the primary reason an individual should look at a Life Insurance policy. Finally, Life Insurance contracts allow an individual to save money in a tax efficient manner and allow savings to grow to help meet our future financial obligations. The most important question is what is the value of your life? Heard of this Yaksha question: What is the greatest mystery on earth? Yudhisthir answers, Every one has to die. But no one thinks that for himself. This is the greatest mystery. That is the paradox that makes people avoid life insurance, That also makes agents take the wrong line of selling Insurance as a tax saving and/or Investment product (ULIP). So what should we do? Start with calculating the Human Life Value (HLV). A very simple way of looking at it is as following: Imagine a monthly income of Rs 10000 and the net income provided to the family is Rs./- 8000 after deducting Rs 2000 for personal expenses. Thus the annual income provided to your family is Rs 96000. The amount of money that will earn Rs 96000 p.a. at 8% interest rate is Rs 12,00,000. This is only a representation of the value of HLV. It is not the exact way of calculating your HLV. The future income growth, your income generating assets, liabilities, spouse income, childrens education, etc are also to be factored in. Various private insurers like Bajaj GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 7
Customer Satisfaction towards HDFC LIFE Allianz, Met Life etc. have placed on their websites the HLV calculators to make you understand the HLV and your life insurance needs better.
Indian consumers have bought life insurance for reasons of tax saving rather than the core need of providing for ones family in case of death of breadwinner. With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It is a business growing at the rate of 15-20 percent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. MYTHS ABOUT LIFE INSURANCE Nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continue to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. Life insurance is not bought in India. General insurance is often bought because there are compulsions under the law (motor vehicles, public liability, workmen etc.) or from the financiers asking for insurance as collateral security. In the case of life insurance, there is very little compulsion. The tendency is to defer the decision. The possibility of death is either ignored or not considered imminent. Most people never do believe that they can succumb to destiny and they think, they will live a long and healthy life. Sadly, that is not always true. A prudent financial plan needs to build in the risk of dying too early to ensure that our familys financial future is protected. There are financial tools that help us determine the risk of dying early leading to the quantum of Life Insurance required. While the algorithms may be different, conceptually, all that these tools try and determine is the present value of your future earnings keeping in mind your future goals GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 8
Customer Satisfaction towards HDFC LIFE and aspirations. It is important that each one of us put some thought into the potential exposure of our family to the risk of the primary wage earners risk of dying too early and arrive at the level of protection required.
Before we get into the recommended approach to Life Insurance, let us delve on some of the myths surrounding Life Insurance in India. These myths will help explain why the number of individuals insured and the average amount of insurance cover per individual is so low in our country. Life insurance protects you and your loved ones in the event that you meet with an untimely demise. You are accustomed to a certain standard of living, and you would like to sustain the same standard of living for your wife in your absence. Maybe you would like your grandchildren to receive some money from you as well, even in your absence. Life insurance can help you achieve such goals. TAX SAVING CONCEPT The question that we should ask ourselves is - do we believe that destiny will announce its arrival in our lives? Will destiny always allow you to complete your tax planning for the year and then strike? The answer is a resounding no. However, lack of education has made customers believe that insurance is a tax-planning tool and the protection element is only a marketing strategy. Sad, but true; this is the way Life Insurance has been largely sold in this country. Individuals buy enough Life Insurance to get tax breaks just before the financial year ends. The moot question is - are we buying Life Insurance to save taxes or are we buying it to protect our familys financial future? Since people believe that nothing ever can happen to them, the decision on quantum of insurance cover and timing is made just before the financial year ends. Tax benefits have been driving LICs business over the years and the same will drive private players too, since the same incentives are available to all insurance companies. There is a large potential in rural India. As stipulated by the Insurance GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 9
Customer Satisfaction towards HDFC LIFE Regulatory Development Authority, five per cent of our new business must cover rural India and the figure must reach 15 per cent by the fifth year. All of this is very encouraging for the life insurance sector. Innovative products, smart marketing and aggressive distribution, thats the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. GUARANTEED RETURNS The question we need to ask is - how much is the guaranteed return that a Life Insurance contract can give. The answer is, I do not know. Unfortunately, individuals expect life insurance companies to give high guaranteed returns. What most individuals fail to understand is that life insurance contracts are long-term contracts. The way in which the contract works is that the premium that each of us pays gets invested after deducting for the cost of mortality and other administrative expenses of the insurance company. Since the premium is paid over a period of time, the investment return that the insurance company can generate on our savings depends upon the prevailing investment opportunities at the time when the premium is paid. With volatility in interest rates and capital markets, the level of investment return that an insurance company can generate can vary substantially. In such a scenario, where is the scope for the insurance company to offer a fixed return to their policy holders but have an earning stream that is highly volatile and variable? Interest rates on Government of India securities have fallen by over three hundred basis points in the last three years. Given such an economic environment, it is foolhardy to expect that the high guaranteed return policies can continue for very long. The classic example is Japan where with interest rates at sub zero levels, insurance companies that offered guaranteed return policies to their policyholders are going down. Again, if you are buying Life Insurance for the high guaranteed return GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 10
Customer Satisfaction towards HDFC LIFE the policy offers, please examine the company and the product again. Your insurance company may not be able to pay you the promised return when your family needs the money most. SELECTION OF RIGHT PRODUCT Almost all the insurance companies offer what is called an illustration to customers the illustration is designed to help the customer understand the policy values better. From a customer point of view, it is imperative that each customer understands and is able to determine the benefits of the product. Given the long-term nature of the Life Insurance contract, it is important to look at the profile of the life insurance company that is underwriting the risk. Given that all the private sector insurance players are new to the business, it would help to look at the past record of the foreign partner in the joint venture and the ability of the Indian partner to continue to infuse capital, given the capital-intensive nature of the business. Again, it is very simple to compare the product with other company products because almost all insurers have their web portals with their product details. Even cost comparisons can be made through premium calculators. What is needed most is the guaranteed return and wider risk coverage. Riders are very economical and one should always choose the desired riders along with the basic life insurance policy. THE STIFF COMPETITION The competition is stiff and, besides, theres a behemoth to contend with. Private players realize what they are up against and are, consequently, tailoring their strategy to suit the circumstances. There is no question of competing with LIC. It already has about 10 lakh agents and that number is likely to go up to 11 lakh by the end of the current fiscal. No company is allowed to poach on anothers agents, least of all on LICs. Private players only select fresher and, five years down the line, they hope to have about 1-lakh agents. Right now most of them have about 5000 to 8,000 agents, GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 11
Customer Satisfaction towards HDFC LIFE either undergoing training or already on the streets. Unlike the non-life segment, selling life insurance requires a more personal touch, which is why good agents are important in this business. In life insurance, policies are sold not bought.
As of now about 60 per cent of the agents work on a part-time basis, but the ratio will come down to 50 per cent by the end of their 10th year in operation. All insurance agents earnings are commission-based. They make a 40 per cent commission in the first year on new business and 7.5 per cent in the next two years on renewable business. The commission rate declines to 5 per cent in the fourth year. All insurers are careful about selecting and training their agents. They want them to remain committed. Insurers know that there is enough business for everybody. Even if an insurer gets 1 to 2 per cent of the 250 to 300 million insurable Indians, it would have covered a lot of ground. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned company still dominates segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes, they have a virtual monopoly with over 90 percent of the customers. FEW PROMINENT REASONS OF FAILURE 1. Beneficiary: The most prominent feature of a life insurance policy is the beneficiary clause, which facilitates the easy transfer of your money to your successors. However, you need to be aware of the different kinds of beneficiaries in life insurance. You can have your children as multiple beneficiaries. All you have to do is to indicate the names of these recipients and the amount of proceeds that they are going to get. Naming a contingent beneficiary is always practical. Suppose that your first beneficiary dies near the time of your own death. In that case, your children will qualify for your insurance money if you nominate them as contingent or secondary GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 12
Customer Satisfaction towards HDFC LIFE beneficiaries. A contingent beneficiary can get life insurance proceeds if the primary beneficiary dies before he or she can receive the assets.
If you have named your minor child as a beneficiary, you will have to appoint a guardian/appointee who will administer the insurance proceeds upon your death. As revocable beneficiary, the recipient can be changed any time during the policy. While in irrevocable beneficiary clause as in the case of absolute assignments, you cannot change your assignees name unless they consent to it. With an irrevocable assignee, creditors cannot touch the policy proceeds, as these monies are not considered to be a part of your assets. 2. Lapsation of policy: It can happen that due to certain circumstances you forget to pay your premiums, even in the specified grace period. Unfortunately, because you have missed the deadline your policy will lapse. Consequently, your insurance company can stop covering you or may provide you reduced insurance coverage equivalent to the total premiums paid formerly (also called paid-up policies). Nonetheless, a lapsed policy may be renewed in some plans, although the exact renewal procedure varies among different insurers. Revival of policy is not simple. Other than payment of interest the life insured has to undergo the medical examination and accordingly the policy terms may be revised. 3. Cash Surrender Value: Permanent life insurance policies like universal life insurance, whole life insurance and variable life insurance are more attractive because of the presence of built-in cash value. Term life insurance policies do not offer cash values. The interesting aspect of these policies is that you can surrender your policy and get the accrued cash value in your hands provided you have a substantial amount of cash value. GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 13
Customer Satisfaction towards HDFC LIFE Cash Value is a part of your premium is put in savings or another investment account according to the type of policy you purchase. As a result, the ongoing interest you receive from your investment account gradually increases your cash value.
4. Non-Forfeiture Options: In permanent life insurance policies, if you fail to pay the premiums in the grace period, you wont lose your life insurance - your accumulated cash value will come to your rescue with the following options. The above non-forfeiture options may differ from one insurance company to another. 5. Surrender: It is always easy to terminate (surrender) your policy and get the entire cash surrender value, which will solve your liquidity problems. However, you need to consider many factors before surrendering your policy, such as the increase in the cash surrender value if your policy is maintained for the full term. Consult your insurance advisor to about the full consequences of these issues before deciding whether the policy should be cashed or kept. 6. Policy Loan: Another positive characteristic of a life insurance policy is that you can take out a policy loan against your policy to cater to your emergency needs. The interest is relatively low and the policy loan can be repaid in a lump sum or installments. If you are incapable of repaying your policy loan, your insurance company will use your cash value to settle the loan. 7. Dividends: Dividends are the earnings paid out by the insurer to its shareholders and/or policyholders. You are entitled to enjoy the fruits of your insurance companys labor, for example, dividends if you own a participating policy. GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 14
THE INDIAN PSYCHE Traditionally, the psyche of the Indian insurance seeker has been such that they have been averse to term insurance plans. Term plans require regular premium payments to be made throughout the tenure of the policy; the sum assured is paid only upon the unfortunate death of the policyholder during the policy tenure. If the policyholder survives the tenure, he is paid nothing; in other words, there are no survival benefits. The absence of survival benefits makes these plans rather unpopular among policyholders, as they like to receive a return as a reward for investing. They fail to appreciate that insurance is about insuring and not investing, so typically there should not be any expectations of a return. A mediclaim policy or car insurance or home insurance or factory/warehouse insurance doesnt offer returns. Similarly, there are no returns from a term plan. To worsen matters, insurance advisors werent interested in educating insurance seekers about why term plans are a must-have for every individual regardless of age. This gave a fillip to endowment plans not only because they pay the sum assured on the unfortunate death of the policyholder during the policy term, but also because they pay a survival benefit if the policy holder survives the term. Jeevan Anand, given the LIC tag, has always been among the preferred plans, since it is a combination of both endowment term insurance. It provides financial protection against the death of the policyholder, throughout his lifetime. However, now some private players have introduced the Term Plans where the proceeds are also paid on maturity of the policy if the insured survives. MONOPOLY REGIME AND OPENING UP
Customer Satisfaction towards HDFC LIFE The life insurance sector was nationalized and consolidated into one entity viz. LIC in 1956. Since then, the LIC has been a monopoly operator, charged with the tasks of making life insurance available throughout the country, particularly in rural areas, and mobilizing savings by providing attractive insurance products.
On the first count, LIC has been fairly successful having built up a large regional distribution network comprising 2,048 branches, rural areas now account for over 25 percent of new policies. However, the Indian insurance market, with an estimated $5 in annual premiums paid per capita, has not made a significant contribution to savings mobilization. Like other long-term saving instruments, life insurance has experienced a relative decline recently, mainly owing to the comparatively low interest rate paid on life insurance funds. The LIC is subject to similar, although somewhat less restrictive portfolio allocation constraints as pension funds, some 75 percent of annual portfolio investments must be allocated to Central/State government securities or socially oriented purposes, while the remaining 25 percent can be invested in private sector, cooperative sector as per IRDA regulation. Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body, the IRDA has put in a framework of globally compatible regulations. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector, 15 life insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. POTENTIAL OF LIFE INSURANCE BUSINESS IN INDIA GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 16
Indias life insurance market has grown rapidly over the past six years, with new business premiums growing at over 40% per year. The premium income of Indias life insurance market is set to double by 2012 on better penetration and higher incomes. Insurance penetration in India is currently about 4% of its GDP, much lower than the developed market level of 6- 9%.
In several segments of the population, the penetration is lower than potential. For example, in urban areas, the penetration of life insurance in the mass market is about 65%, and its considerably less in the low-income unbanked segment. In rural areas, life insurance penetration in the banked segment is estimated to be about 40%, while it is marginal at best in the unbanked segment. The total premium could go up to $80-100 billion by 2012 from the present $40 billion as higher per capita income increases per capita insurance intensity. The average household premium will rise to Rs 3,000-4,100 from the current Rs 1,300 as will penetration by the existing and new players. Indias ratio of life insurance premium to its GDP is around 4 per cent against 6-9 per cent in the developed world. It could rise to 5.1-6.2 by 2012 in tandem with the countrys demographic profile. India has 17 life insurers and the state owned Life Insurance Corp. of India dominates the industry with over 70 percent market share, though private players have been growing aggressively. Considering the worlds largest population and an annual growth rate of nearly 7 per cent, India offers great opportunities for insurers. US based online insurance company ebix.complans to enter the Indian market following deregulation of its insurance sector. Online insurer ebix.coms expansion into India is a major step for the company to become a global supplier of internet-based insurance tools for consumers and insurance professionals. In a diverse country such as India it is imperative that a universal insurance infrastructure be created to maximize efficiency in the insurance industry. Online insurer ebix.com can offers the Indian market a business-to-consumer internet portal where consumers have more choice while purchasing insurance and an GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 17
Customer Satisfaction towards HDFC LIFE internet-based agency management system that will help agents work more efficiently with multiple carriers. Foreign holding in Indian insurance companies is limited to 26 per cent. The government wants to increase the cap to 49 percent, but its communist allies oppose such a move. The market is moving beyond single-premium policies and unit linked insurance products which are easier to sell.
The agency model is the dominant sales channel accounting for more than 85 per cent of fresh premiums but overall inactivity and attrition is much higher at 50-55 per cent than the global average of 25 per cent. Opportunities include health insurance and pensions, the report said, adding only 1.5-2 per cent of total healthcare expenditure in India was currently covered by insurance. A life insurance policy covers ones personal self. Unlike with general insurance, it is not like insuring a vehicle. Having said that, if we consider that Indias population is over one billion and growing, we get a picture of the true potential of the life insurance sector in India. LIC Bimaquest - Vol. VIII Issue I, January 2008 q 49 Life Insurance
Industry-Past, Present & the Future
has been in business for 50 years now and has not
covered the entire population base yet. About 250 to 300 million Indians are still insurable. LIC has issued about 120 million policies till now, with new premium income of US$ 1 billion. Its assets have been estimated at $37 billion and in the last quarter it reported a 60 per cent growth in new business. LICs business is growing at the rate of 20 per cent every year. That is the kind of potential one is talking about in life insurance in India. It would not be wrong to say that a lot of the advantage of advertising by new private sector insurance companies has by default gone to LIC. While they have created a lot of awareness through private insurers advertisements, LIC has benefited. Why? Because LIC has a much wider branch network, and buyers are surer of LIC because it has been in existence for long; they are more comfortable about its safety. Some LIC agents continue to follow the unethical
Customer Satisfaction towards HDFC LIFE practice of offering discounts from their commissions to new policy buyers; this makes a difference. PENETRATION- LOWER THAN POTENTIAL Management consultancy firm McKinsey has forecast that Indias life insurance industry will be double in the next five years from $40 billion to $80-100 billion in 2012. This growth would improve the level of insurance penetration from 5.1% of gross domestic product to 6.2% in 2010-2012.
The Indian life insurance industry could witness a rise in the insurance sector premiums between 5.1% and 6.2% of GDP in 2012, from the current 4.1%. Total market premiums are likely to more than double during this period, from about $40 billion to $80-100 billion. This implies a higher annual growth in new business annual premium equivalent (APE) of 19% to 23% from 2007 to 2012. The large part of the growth would come from second- and third-tier cities and small towns. Based on MGI forecasts, 26 tier-II cities with Population greater than one million and 33 tier-III towns with the population of more than 5 lakh will account for 25% of the middle class and newly bankable class in 2025. Over 5,000 tier-IV small towns will account for as much as 40% of these two classes in 2025. However, if an insurer decided to be a niche player and concentrated on metros and their suburbs, they will have a big market, since 60% of the very rich (annual income over Rs 10 lakh) would be concentrated in the top eight cities. Although these consumers will be highly accessible, players will have to reckon with intense competition that is only going to increase and extend to other segments as well. LIC- AHEAD OF ALL LIC of India has mobilized Rs 12,361 crore of new business premiums in March 07 the highest recorded by the corporation in any single month. This has enabled the corporation post new business premium of Rs 55,934 crore in 06-07, a 118% growth over the previous year. LICs premium collection in March 07 was higher than the premium collected in the whole of whole of 03-04. LICs has been the growth driver GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 19
Customer Satisfaction towards HDFC LIFE for the entire life insurance industry which grew 110.7% to Rs 75,406 crore from Rs 35,897 crore during the current financial year. The rise in premium gives LIC a market share of over 74% of the total new business premium mobilized in India, which is substantially higher than the 72% as on March 106. The rise in premium is on the back of unit-linked policies which account for nearly 70% of the total individual premium. The surge in sales in March attributed to higher sales of unit linked insurance and group insurance business.
In March the corporation booked over Rs 4,826 crore in group insurance, which accounted for nearly 30% of total collections. Collection from single premium plans amount to Rs 24,927 crore, which is nearly 44% of the premium raised by the corporation during the current fiscal. Single premium plans are a demand of the market. There are a large section of people who do not want to commit premium payments for every year. Meanwhile, the private life insurance industry has recorded a growth of 89% with total new business premium for the year standing at Rs 19,471 crore as against Rs 10,252 crore in the corresponding period last year. ICICI Prudential continues to be the largest private life insurance player with a market share of 7% followed by Bajaj Allianz Life Insurance which has a market share of 5.7%. The companies that have recorded the fastest growth in the current year include Reliance Life Insurance, which grew 381% recording new business premium of Rs 931 crore, followed by SBI Life Insurance which grew 209% to Rs 2,566 crore. The high growth has enabled SBI Life to move into the number three positions after Bajaj Allianz Life Insurance. NEW JOINT VENTURE SET UPS Canara Bank, Oriental Bank of Commerce (OBC) and HSBC Insurance (AsiaPacific) Holdings Ltd have signed an agreement to jointly establish a life insurance company in the country. The company has been christened Canara HSBC Oriental GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 20
Customer Satisfaction towards HDFC LIFE Bank of Commerce Life Insurance Company Limited. Canara Bank would take a 51 per cent stake in the company, while HSBC and OBC will hold 26 per cent and 23 per cent stake respectively. The new life insurance company will be capitalized at Rs 325 crore, of which Canara Bank will contribute Rs 102 crore, HSBC Rs 177 crore and OBC Rs 46 crore. Under the terms of the agreement, HSBC would provide a range of management services, which would include nominating executives for certain senior roles.
While both Canara Bank and OBC offer an extensive client base, complementary distribution networks and broad local market knowledge, HSBC brings to the partnership its considerable insurance experience, product range and proven bancassurance capabilities. IRDA gave clearance to a joint venture between Kishore Biyanis Pantaloon Retail India and Italian insurance firm The Generali Group to start insurance businesses. The joint venture, Future Generali India Life Insurance Company Ltd, would transact life insurance business. Besides, it also granted approval to Future Generali India Insurance Company to transact general insurance business. Generali is one of the largest insurance groups in the world, operating in 40 countries through 107 companies. It ranks 22 in the list of Fortune 500 companies and is the largest corporation in Italy with an asset base of\ over 300 billion euro. EYING ABROAD Although Japanese insurance companies account for one-fifth of the total life insurance premium in the world, they have been slow to expand internationally as most companies were going through a consolidation phase locally. The crash in interest rates to near-zero levels in Japan had made it difficult for insurance companies to generate surpluses to cover costs. Financial sector juggernaut LIC of India is now on the look out for a potential buy abroad.
Customer Satisfaction towards HDFC LIFE The company is planning to use its massive cash reserve to finance the acquisition of a company in the New Zealand and Australia markets. If approved, LIC would become the second public sector financial institution, after State Bank of India, to acquire a company abroad. For LIC, a buyout of an insurance company Down Under could make sense, as it has already established its presence in some of the Oceania markets, like Fiji. The plan would, however, require prior passage of the amendments to the LIC Act, to enable the company to raise its paid-up capital from Rs 5 crore to Rs 100 crore, at par with private insurers. The government plans to amend the Act passed in 1956 to give more flexibility to the largest insurance company to expand its footprint.
LIC commands a 77% market share. Its premium income soared to 182.26% during the period against the industry average of 177.44%. Its new premium grew 191% to Rs 10,381.57 crore as in August 06. It has offices in the UK, Nepal, Bahrain, Kenya and Mauritius other than Fiji. But its UK operations have not been able to grow at the expected rate. While the insurance industry in the UK is growing at 10- 12%, LIC has been growing at 4-5% annually. It is understood that it has been capitalized a couple of times. RIDING ON WOMAN POWER A woman has unique needs and concerns when it comes to preparing for the future. While the basic life insurance policy protects the bread-earner and his loved ones, he also needs some protection against health risks specific to women. In todays society, there is no difference in professional men and women and they both have the same earning power and both contribute to the family kitty. Both incomes are important for family lifestyle and standard. When the whole world seems to be riding on woman power, can insurance companies remain far behind? Today even banks and financial institutions are regularly churning out innovative schemes to woo the dames? Insurance traditionally has been targeted at the earning member of the family as insurance means helping the family to maintain the standard of living for a few years in case something unfortunate happens to the main breadwinner. GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 22
Customer Satisfaction towards HDFC LIFE Moreover, insurance products not only provide security for family, but also help in savings, investment towards creating a fortune for needs in future or pension for the golden years. There is a strong-felt need for women to also insure and invest and, therefore, insurance companies are targeting women with specially-designed products. What is more, some insurance companies also offer some discounts to women, although they dont have any specific product for them. For instance, ING Vysya Life Insurance Company doesnt have any product targeted specifically at women; however, women enjoy lower rates of premium than men owing to their longevity. Whatever be the case, insurance companies penchant for woman customers is growing by the day and not without reasons.
Women investors have shown longer investment tenure and regular saving habits. So, the future products are aimed to target these two specific characteristics and would span over both health and investment domain. Insurers also feel that the womenspecific insurance market is expected to grow much faster than the overall insurance sector. No wonder, this is one domain which will become a strong focus point for them in the near future. AGENTS A remarkable achievement is that Indias third largest private sector insurance company SBI life Insurance has been ranked fifth across the world in terms of number of MDRT members, which is 801. Life insurance agents from India are moving fast into the realm of global insurance. The total number of Indian agents registering with the Million Dollar Round Table, a prestigious international trade association of insurance agents, has more than tripled to 1,931 agents for 2007 compared with 532 in 2006. The MDRT has a total of 35,781 qualifiers.Which is 1% of the total insurance agents or advisors in the world. Within the MDRT, there are three levels such as the basic MDRT, the Court of Table (CoT) and Top of Table ( ToT). To qualify for tht MDRT, an Indian insurance agent has to get a premium of Rs. 23.92 lakh to his insurance company or earn a commission of Rs. 5.98 lakh. For the agent to qualify for the CoT, he has to do thrice GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 23
Customer Satisfaction towards HDFC LIFE the MDRT business, while to qualify for the TOT, insurance agent has to do six times the business required for the MDRT. On the other hand IRDA has taken the first step to crack the whip on agents misleading customers on unit-linked insurance plans. To start with, it has tightened the norms for sale of actuarial-funded unit-linked products which are on their way out. The Regulator intends asking customers and agents to sign illustrations on the entire gamut of ULIP products offered by insurers. While the features of ULIPs vary from product to product, the onus will be on agents to indicate the explanation that customers have been given on the nature of investment. Agents will also have to give a break-up of the money spent on various expenses.
The objective is to enlarge the scope of disclosures made by agents and such transparency will be in the interest of the entire insurance sector. IRDA appears to be taking the UK route to tackle mis-selling of policies. In the UK, if an agent is accused of mis-selling, the onus is upon the insurer to prove that the policy was explained. Similarly, insurers in India will now have to retain documentary evidence to prove that the policy was properly explained to the insured. In the UK, the experience has been the complaints of mis-selling emerge after a period when policyholders discover that their investments were performing far worse than they were told to expect. Acturial-funded products have a complex structure, where the insurance company allocates significant sums to the policyholders account in the first year. However, these initial allocations are notional i.e. in the form of actuarial units, which convert into real money only in the future. The downside of such products is that there is not much balance in the policyholders account in the initial years. ULIP PRODUCTS The regulator had given an indication that checks would be in place to prevent mis-selling of ULIPs, which have become popular investment instruments. IRDA is understood to have extended the deadline for Bajaj Allianz to phase out its actuarial-
Customer Satisfaction towards HDFC LIFE funded product or capital unit. This is set to be replicated in other ULIPs as well in due course. The regulator has asked private insurer Bajaj Allianz Life Insurance to ensure that policyholders investing in the actuarial-funded products sign on sales illustration given out by agents. This will form part of the policy document, and IRDA will have the authority to inspect it at a later stage, if need be. The entire exercise is aimed at ensuring that the customer is fully aware of the features of the product. Aviva Life Insurance is the other company that has been asked to withdraw actuarial-funded products. IRDA justified the withdrawal of these products, saying that its objective was to enable the policyholders of ULIP products to compare features and charges across products and companies. However this order of IRDA is stayed by the High Court of Chennai.
The regulator has also introduced safeguards to see that actuarial-funded products are not sold aggressively while they are being phased out. In the case of Bajaj Allianz, for instance, the regulator has stipulated that the total premium collected under this product between August 2007 and September 15, 2007 should not exceed the average growth in sales posted in the previous quarter of July 31, 2007. Although ULIPs may have become popular for more wrong reason that right ones, the segment does have its fair share of positives. The right reasons includes multiple benefits to the customers like Life protection, Investment and Savings, Flexibility, Adjustable Life Cover, Investment Options, Transparency, Options to take additional cover against, Death due to accidents, Disability, Critical Illness, Surgeries, Liquidity and Tax Planning. The Regulator is in the process of modifying the guidelines for ULIPs so that products with high concentration of investments will be treated as mutual funds and term products if the proportion is tilted towards a greater risk. The reviewed is aimed at bringing in better information, transparency standards and understanding of such products among customers. GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 25
Customer Satisfaction towards HDFC LIFE Customers should have an idea as to what the risk and the return in the policy are when they subscribe to them. IRDA has also proposed to make it mandatory for insurance companies to issue sales of document with illustration as a part of the over all policy document. This would give an idea to policyholders about the instruments they are investing in and risks are taking. The company, in this document, will have to explain what component actually goes towards life cover and what towards investment. The Regulator has clarified that the policyholders in the unit-linked scheme could remain invested in the policy for another five years after the maturity, but could not withdraw any amount. The decision to continue with the scheme after maturity will be purely at the option of policyholders. The objective was to ensure that the insurance companies cannot act as a fund manager while it can only provide the option to the policyholder for waiting for a better NAV.
The Regulator has observed that the proportion of unit linked insurance plans in the total product portfolio has gone up by 65-70 per cent, which ties the fortunes of the insurance company and its investors to the vagaries of the stock market. Meanwhile, all companies are well above the solvency margin of 150%. The life insurance industry is growing at 30 per cent each year; its one of the fastest growing industries in the country. Private players have captured a sizeable chunk of the market in these six years, with the Life Insurance Corporation of Indias (LIC) share in the new business falling to 74 per cent. The upside includes improved service, riders with policies, unit linked insurance policies health care for as little as Rs100 per month, need-focused products with flexibility, and sales channels to suit the customers convenience. Theres a wide range of products and services competing to deliver the best value to customers, which has increased the market. Expansion coupled with a rapidly growing business is the big reason for the fresh capital infusion at regular intervals. Most private insurers have stabilized their operations in the last five years and fine-tuned their business models. Now is the time for expansion and launching their services beyond metros and big cities, to get the real benefits of mass business and GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 26
Customer Satisfaction towards HDFC LIFE exponential growth. Pension and health are two areas that have tremendous growth potential in the future. Almost 90 per cent of the people in the country have no old age benefits or health cover. New products are launched targeting niche markets. Pension products are developing in a big way, and will benefit a large section of people in the organized and unorganized sector. The annuity market has also started growing, and new players are offering a plethora of new and innovative products. Alternate channels of distribution like corporate brokers, online selling and bancassurance are increasing their share in the business of all the companies. Increasing the insurance sector FDI limit to 49 per cent is the foremost issue, to provide financial flexibility to the existing players and make the Indian market attractive for foreign investment.
Also, the fringe benefit tax (FBT) needs to be eased, especially for group products like superannuation schemes. FBT has caused this market to stagnate, and most companies have withdrawn this product, as companies find it increases their costs by more than 30 per cent. Now FBT restricted to more than Rs. 1 lac contribution per member per year. The prospects for Indias insurance sector are good on the back of expected buoyant economic growth and rising levels of wealth in society. The new insurance companies aims to fulfill the needs of high net worth individuals, professionals, small and medium enterprises, farmers and also rural and semi-urban masses. Private insurance ventures, allowed to compete with state owned Life Insurance Corporation and non-life companies beginning 2000, are trying to tap expanding demand for insurance in an economy growing nine percent a year. The demand, which has seen annual premiums double to more than 20 billion dollars since 2000, is being driven by the absence of a social security system and low penetration dating back to the decades when government-owned insurers enjoyed a monopoly. Dismally low life insurance penetration rates, a growing need for social and old age security, strong GDP growth and the expected rise in savings The life insurance GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 27
Customer Satisfaction towards HDFC LIFE industry is close to eclipsing the mutual fund sector in terms of its total investment in equities through the success of unit-linked products. The MF industry registered a total AUM of Rs 4.86 lakh crore till July 2007, while the investment in equities stood at Rs 1.59 lakh crore. As per figures compiled by the Life Insurance Council. Life insurers total investment in equities was close to Rs 1.5 lakh crore as of March 2007, while total AUM stood at about Rs 6.1 lakh crore. As much as 75% of investments made in ULIPs get routed to the stock markets at SBI Life. At least 60% of the funds from unit-linked products are invested in the equity market. With the growth in ULIPs, the total investment in equities rose sharply over the last few years. ULIPs are sold like hot cakes but still they are under constant scrutiny. ULIPs have given Life Insurance market a big boost to grow and expend.
The reason behind foreign companies making a beeline to enter the insurance business in the country is pretty obvious: Insurance in India is only 3.14 per cent of its GDP compared with the global average of 7.52 per cent. And this is expected to rise to only 4 per cent. This means a vast majority of Indian population is left to be covered by insurance. At present, there are 16 companies providing life insurance in the country. In India, insurance is seen with an improper perspective. Insurance products are sold rather than bought, as most people do not realize that insurance is for the security and benefits of their dependants. While the objective of life insurance is to provide a lump sum amount in the eventuality of untimely death of the insured, most Indians buy insurance to save taxes. This is evident from that around 40 per cent of the insurance business of any insurer takes place in March, which marks the deadline for submission of investment details for computation of income-tax liabilities. The IRDA is currently toying with the idea of allowing insurance companies to issue composite policies for micro-insurance Buyers soon be able to insure their life as well as their motor pump by buying a single policy. GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 28
Customer Satisfaction towards HDFC LIFE In India micro-insurance is defined by the size of the policy (Rs 5,000-Rs 50,000 sum assured) and covers health, household, fire and motor insurance portfolios that are non-commercial or of lower asset value. As per the new regulation, individual companies will now be allowed to design composite products within broad parameters. They will be branded as micro-insurance products for file and use. A single agency system can sell these packaged composite products. The IRDA will soon issue broad guidelines authorizing composite products for micro-insurance.
CHAPTER-II COMPANY PROFILE

Introduction: HDFC Standard Life, one of India's leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India's leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Standard Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 32 retail and 4 GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 29
Customer Satisfaction towards HDFC LIFE group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Standard Life continues to have one of the widest reaches among new insurance companies with 568 branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its existing markets with a base of 2,00,000 Financial Consultants.
Associate Companies
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. Credit Information Bureau (India) Ltd HDFC Securities HDB Financial Services
Board Members Brief Profile of The Board of Directors Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and Director of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants.
Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in Law and holds a Master's degree in Economics from Delhi University. She GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 31
Customer Satisfaction towards HDFC LIFE has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy Managing Director in 2007. She is responsible for overseeing all aspects of lending operations of HDFC Limited. Mr. David Nish joined Standard Life on 1 November 2006 as Group Finance Director and remained in that position until December 2009. He is appointed as the Executive Europe on 1st January 2010. In 2000 he was awarded the Scottish Business Awards Finance Director of the Year and from 2004 to 2005 he served on the Government Employers Pension Task Force. He is a member of the Institute of Chartered Accountants of Scotland. He joined the Board of Directors in February 2010. Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standard Life in the year 2010. Nathan joined Standard Life in 1982 as Investment Manager, responsible for all UK net funds. He was appointed a Director of the Standard Life Investments board. He is a Mathematics graduate from Oxford University and the Member of the Securities Institute. He joined the Board of Directors in December 2009. Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Skeoch is a Fellow of the Securities Institute, Fellow of the Royal Institute for the Encouragement of the Arts, Manufacture and Commerce, BA, MA. Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest.
Customer Satisfaction towards HDFC LIFE Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalized banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & VicePresident at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. Ravi Narain is a Cambridge University-trained Economist and an MBA from Wharton School, University of Pennyslvania, USA. Mr. A. K.T. Chari has joined HDFC Standard Life as a Director on March 10, 2010. Mr. Chari has completed his Electrical Engineering from Madras University in 1962. He is associated with Infrastructure Development Finance Company Ltd. (IDFC) for last 11 years. Currently he is handling project finance for infrastructure projects at IDFC. Prior to this he was associated with Infrastructure Development Bank of India (IDBI) from 1975 to 1999. Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in May 2007, having been Deputy Chairman since March 2006. He became a director of the Standard Life Assurance Company in July 2003. He is also Chairman of Candover Investments plc and was appointed as one of the UKs Business Ambassadors by the Prime Minister in January 2009. Gerry held senior positions within the Department of Health and Social Security and HM Treasury until 1986. He then spent 13 years with Schroders in London, Hong Kong and New York, and was Vice Chairman of Schroders worldwide investment banking activities GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 33
Customer Satisfaction towards HDFC LIFE from 1998 to 1999. He is the Alternate Director to Mr. David Nish. He has completed Master of Arts, Master of Science in Chemistry, Merton College, Oxford University and NATO-CCMS Fellowship Wolfson College, Oxford University. Mr. Michael G Connarty is responsible for Standard Life's investments in life assurance Joint Ventures in India and China. He holds a degree in Law and MBA. He has worked with Standard Life for 33 years in managerial positions covering a number of fields such as Pensions law, International Marketing, Operational Management, Strategy, Risk, Compliance, Company Secretarial and Banking. He has acted as Project Manager for the start-up project of the Company in 2000. He is the Alternate Director to Mr. Norman K. Skeoch. Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life. Before joining HDFC Standard Life, he was the MD and CEO of Infosys BPO and was also heading an Independent Validation Services unit in Infosys Technologies. He started his career with Bank of America delivering diverse roles ranging from Head of Technology Investment Banking for Asia, Regional Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore where he headed their investment banking franchise for South East Asia and structured finance practice for Asia before joining Infosys BPO in 2005. Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technology and Science, Pilani and MBA in 1987 from IIM, Ahmedabad. Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. A fellow of the Institute of Chartered Accountants of India, he has been associated with the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible for driving and spearheading several key initiatives. As one of the founding members of HDFC Standard life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing strategy, leading recruitment, contributing to product launches and performance management system, overseeing new business and claims settlement, customer interactions etc. Our Parentage GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 34
Customer Satisfaction towards HDFC LIFE HDFC Standard Life HDFC Limited, India's premier housing finance institution has assisted more than 3.4 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 271 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own a home back in India. As of December 2009, the total asset size has crossed more than Rs. 104,560 crores including the mortgage loan assets of more than Rs.90,400 crores. The corporation has a deposit base of over Rs. 23,000 crores, earning the trust of nearly one million depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies . Standard Life Standard Life is one of the UK's leading long term savings and investments companies headquartered in Edinburgh and operating internationally. Established in 1825, Standard Life provides life assurance, pensions and investment management propositions to over 6 million customers worldwide. The Standard Life Group has around 10,000 employees across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. At the end of December 2010 the Group had total assets under administration of 170.1bn. Standard Life's diverse business includes one of the largest life and pensions businesses in the UK with more than 4 million customers and Standard Life Investments, currently manages assets of over 138.7bn globally. On 10 July 2006, after 80 years as a mutual company, Standard Life Assurance Company demutualised and Standard Life plc was listed on the London Stock GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 35
Customer Satisfaction towards HDFC LIFE Exchange. Standard Life now has approximately 1.5 million individual shareholders in over 50 countries around the world. Corporate Governance Introduction The Corporate Governance Policy provides the framework under which the Board of Directors operates. It includes its corporate structure, culture, policies and the manner in which it deals with various stakeholders. The governance policies address the responsibilities, authority and administration of the Board of Directors. The policies also include the responsibilities of the Principal Officer and define the reporting relationships. Timely and accurate disclosure of information regarding the financial situation, performance, board constitution, ownership of the company etc. is an important part of corporate governance. Corporate governance arrangements are those through which an organisation directs and controls itself and the people associated with it. Bancassurance Partners HDFC BANK SARASWAT BANK INDIAN BANK
CHAPTER-III Customer Satisfaction

Customer Satisfaction Customer Satisfaction is the pillar of the marketing concept Satisfaction is consumers fulfillment response. It is a judgment that a product or a service feature or the product or service itself provides pleasurable level of consumption related fulfillment. Customers satisfaction influenced by specific product are service features and by perceptions of quality. It is also influenced by specific service attributions, and their perceptions
Customer Satisfaction towards HDFC LIFE The telling factor in the companys long run fortunes will be the amount of customer satisfaction that it managers to generate. But it doesnt not mean he companys sole aim is to maximize Customer Satisfaction. If that where the case, it should simply put out the best product and service in the world and price is below cost. There by it would be creating substantial customer satisfaction. But in the long run it would be also be out of business. Customer Satisfaction like happiness bet achieved by rendering substantial forma of assistance to others rather than by direct pursuit. Companies that move towards adopting the market concept benefit themselves and The society. It leads the societys recourse to move in the direction of social needs, there by bringing the interests of business firms and the interest of society in to harmonious relationship.
Measuring customer satisfaction Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 38
Customer Satisfaction towards HDFC LIFE on other options the customer may have and other products against which the customer can compare the organization's products. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry, Brooder between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement. Customer Loyalty "It takes a lot less money to increase your retention of current customers than to find new ones-but I know I don't give it as much effort as I should because it does take a lot of energy and effort!" Strategize And Plan For Loyalty! Do you even have a specific plan for building customer loyalty? I bet you haven't given it as much thought as you should- because to tell the truth I need to give it more effort also. If you currently retain 70 percent of your customers and you start a program to improve that to 80 percent, you'll add an additional 10 percent to your growth rate. Particularly because of the high cost of landing new customers versus the high profitability of a loyal customer base, you might want to reflect upon your current business strategy. These four factors will greatly affect your ability to build a loyal customer base: Products that are highly differentiated from those of the competition. Higher-end products where price is not the primary buying factor. Products with a high service component. Multiple products for the same customer. GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 39
Market to Your Own Customers! Giving a lot of thought to your marketing programs aimed at current customers is one aspect of building customer loyalty. When you buy a new car, many dealers will within minutes try to sell you an extended warranty, an alarm system, and maybe rust proofing. It's often a very easy sale and costs the dealer almost nothing to make. Are there additional products or services you can sell your customers. Use Complaints To Build Business! When customers aren't happy with your business they usually won't complain to you - instead, they'll probably complain to just about everyone else they know - and take their business to your competition next time. That's why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made. They find that if they promptly follow up and resolve a customer's complaint, the customer might be even more likely to do business than the average customer who didn't have a complaint.
Reach Out To Your Customers! Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The more the customer sees someone from your firm, the more likely you'll get the next order. Send Christmas cards, see them at trade shows, stop by to make sure everything's okay. Send a simple newsletter to your customers-tell them about the great things that are happening at your firm and include some useful information for them. Send them copies of any media clippings about your firm. Invite them to free seminars. Loyal Customers and Loyal Workforces
Customer Satisfaction towards HDFC LIFE Building customer loyalty will be a lot easier if you have a loyal workforce-not at all a given these days. It is especially important for you to retain those employees who interact with customers such as sales people, technical support, and customerservice people. Many companies give a lot of attention to retaining sales people but little to support people. I've been fortunate to have the same great people in customer service for years-and the compliments from customers make it clear that they really appreciate specific people in our service function. The increasing trend today is to send customer-service and technical-support calls into queue for the next available person. This builds no personal loyalty and probably less loyalty for the firm. Before you go this route, be sure this is what your customers. MARKETING MARKETTING JOB IS TO CONVERT SOCIETAL NEEDS IN TO PROFITABLE OPPORTUNITIES.
Definition of marketing as follows:

Marketing is a social managerial process by which individuals and group obtain what the need and want through creating. Offering and exchanging products of value with others. This definition of marketing rests on the following core concepts needs, wants and elements, products (goods, services and ideas); value cost and satisfaction exchange and transactions, relationships and networks, markets and marketers and prospects. THE MAKETING CONCEPT The marketing concept hold that key to achieving organizations goals consists of being more effective than competitor in integrating more effective then competitive
Customer Satisfaction towards HDFC LIFE in integrating marketing activities towards determining and satisfying the needs and wants of target markets.
CHAPTER-IV DATA ANALYSIS AND INTERPRETATION

4.1. Are you Aware of HDFC life company. Table 4.1 Aware of HDFC life company Decision Yes No Total Responses 100 0 100 Percentages 100% 0% 100%
Graph 4.1 Awareness of HDFC life company GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 42
0%
Yes No
100%
Inference: From the above table it is inferred that out of 100 respondents, 100 % have aware the HDFC life company.
4.2 Know about the brand HDFC life company Table 4.2 Know about the brand HDFC life
Decision Print media Television Friends & Relatives Dealers Total
Responses 4 2 64 30 100
Percentages 4% 2% 64% 30% 100%
Graph 4.2 Know about the brand HDFC life
4% 2% 30% Print media Television Friends & Rel Dealers 64%
Inference: From the above table it is inferred that out of 100 respondents, 4% customers are known about The HDFC life through print media, 2% customers are known about the HDFC life through television 64% through friends and 30% through dealers.
4.3 HDFC life is the best company in A.P. Table 4.3 HDFC life is the best company in A.P.
Decision Strongly Agree Agree Not decide Disagree Strongly disagree Total
Responses 39 33 0 28 0 100
Percentages 39% 33% 0% 28% 0% 100%
Graph 4.3 HDFC life is the best company in A.P.
0% 28% 39% 0% S.Agree Agree Not decide Disagree S.disagree
33%
Inference: From the above table it is inferred that out of 100 respondents, 39 % customers have strongly agreed that the monarch pipe company is best company in a AP while 33 % have agreed, 28% of disagreed.
4.4 Inspired to buy the HDFC life by. Table 4.4 Inspired to buy the HDFC life by.
Decision Friends Relatives Neighbors Advertisements Total
Responses 29 39 8 24 100
Percentages 29% 39% 8% 24% 100%
Graph 4.4 Inspired to buy the HDFC life by. GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 45
24%
29% Friends Relatives Neighbors Advretisements
8%
39%
Inference: From the above table it is inferred that out of 100 respondents, 29% customers have inspired to buy the HDFC life through friends, 39% have relatives, 8% have neighbors and 24% have advertisements.
4.5 Regular customer to HDFC life. Table 4.5 Regular customers to HDFC life .
Decision Yes `No Total
Responses 50 50 100
Percentages 50% 50% 100%
Graph 4.5 Regular customers to HDFC life Company.
50%
50%
Yes No
Inference: From the above table it is inferred that out of 100 respondents, 50 % of the people are regular customers and 50% people are not regular customers to the HDFC life.
4.6 The customers of the HDFC life Company. Table 4.6 The customers of the HDFC life company.
Decision Yes No Total
Responses 68 32 100
Percentages 68% 32% 100%
Customer Satisfaction towards HDFC LIFE Graph 4.6 the customers of the HDFC life Company.
32% Yes No 68%
Inference: From the above table it is inferred that out of 100 respondents, the customers of the HDFC life company 68% customers have yes and 32% have no.
4.7 The customer of the HDFC life Company since. Table 4.7 The customer of the HDFC life company since.
Decision Less then 6 Ms 6 to 12 Ms 1 to 2 Years More then 2 Ys Total
Responses 61 32 3 4 100
Percentages 61% 32% 3% 4% 100%
Graph 4.7 the customer of the HDFC life Company since.
3% 4%
Less then 6 Ms 32% 6 to 12 Ms 1 to 2 Years 61% More then 2 Ys
Inference: From the above table it is inferred that out of 100 respondents, The customer of the HDFC Life company since.61 % are customers of monarch pipes company less than 6 month while 32% are since 6- 12 months , 3% 1to 2 years and 4% are since more than 2 years.
4.8 Share information with friends and relatives. Table 4.8 Share information with friends and relatives
Decision S.Agree Agree Disagree S.disagree Total
Responses 38 61 0 1 100
Percentages 38% 61% 0% 1% 100%
Graph 4.8 Share information with friends and relatives.
1% 0%
38%
S.Agree Agree Disaree S.disagree
61%
Inference: From the above table it is inferred that out of 100 respondents, share information with friends and relatives 38% customers have strongly agreed that they share the information with the friends and relation while 61% have agreed and 1% have strongly disagreed.
4.9 Company concentrates on rural market more then urban market. Table 4.9 Decision S.Agree Agree Disagree S.disagree Total Responses 27 43 26 4 100 Percentages 27% 43% 26% 4% 100%
Graph 4.9 Company concentrates on rural market more then urban market.
4% 27% 26% S.Agree Agree Disaree S.disagree
43%
Inference: From the above table it is inferred that out of 100 respondents, Company concentrates on rural market more then urban market 27% customers have strongly agreed that the company concentrates on the rural market more than urban market while 43% customers have agreed 26 % have disagreed and 4% have strongly disagreed.
4.10 Company provides better services than other company. Table 4.10 Company provides better services than other company.
Decision S.Agree Agree Disagree S.disagree Total
Responses 38 60 2 0 100
Percentages 38% 60% 2% 0% 100%
Graph 4.10 Company provides better services than other company.
2%
0%
38%
S.Agree Agree Disaree S.disagree
60%
Inference: From the above table it is inferred that out of 100 respondents, Company provides better services than other company. 38% customers have strongly agreed while 60% customers have agreed and 2 % have disagreed.
CHAPTER-V Research Methodology STRUCTURE OF RESEARCH METHODOLOGY

RESEARCH DESIGN DATA SOURCES RESEARCH APPROACH RESEARCH INSTRUMENT CONTACT METHOD SAMPLING PROCEDURE : : : : : : Descriptive Primary data, Secondary data Survey method Structured questionnaire Personal Random Sampling
Customer Satisfaction towards HDFC LIFE POPULATION SIZE SAMPLE SIZE STATISTICAL TOOL : : : Consumers in Kadapa dist 40 Consumers, 20 Dealers.
Simple Percentage
STATEMENT OF PROBLEM:
The objective of every company would be ensuring customer satisfaction for the customer satisfaction would create loyal customers. Measuring customer satisfaction is always a challenge, as customer either would not disclose or sometimes do not assess their satisfaction level clearly. Many times the customer can not specify the reasons for his satisfaction.
NEED FOR THE STUDY: HDFC Life believes in satisfactory delivery of service quality to the customer, but due to unknown reasons that the customer satisfaction analyzed by the company is not up to the make. The company intends to find out the causes and remedies for the low customer satisfaction.
OBJECTIVES OF THE STUDY
To understand the customer satisfaction levels with HDFC Standard Life.
Customer Satisfaction towards HDFC LIFE To identify the factors influencing the customers to deal with HDFC Standard Life. To identify the customers suggestions with respect to HDFC Standard Life. To understand the marketing strategies adopted by HDFC Standard Life. To understand the different services provided by HDFC Standard Life.
LIMITATIONS OF THE STUDY
It is primarily a micro level study. Due to constraints of time only Kadapa Dist. is selected and so it cannot claim to be a comprehensive study of the population.
The sample size is restricted to 100 respondents. The data is obtained through a structured questionnaire and it has its own limitations in its analysis and interpretation.
SOURCE OF DATA: Primary Data: The Primary Data is collected through questionnaire survey to customers. Secondary Data: Information is gathered from company profile, website and book Consumer Behaviour author by Loudon and Della Betta.
SAMPLE SIZE:
The sample size of the project is 100 Costumers.
SAMPLING METHOD:
Random sampling method of sampling was adopted to get over the limitation. The researcher followed the sampling technique, sample random sampling method for the study.
SAMPLING UNIT / AREA:

The survey was conducted in KADAPA.
RESEARCH INSTRUMENT / TOOL:

The research tool of the project is questionnaire. This research used structured questionnaire with question of Open- ended question.(Saying the words through mouth) Closed-ended question.(opinion Type) Multiple-choice question.(Options Type)
RESEARCH APPROACH:
Survey method
CONTACT METHOD:
Personal / direct
STATISTICAL TOOL:
In this research various percentages are identified in the analysis and they are represented pictorially by the way of bar diagrams in order to have a better quality.
Customer Satisfaction towards HDFC LIFE NO OF RESPONDENTS ______________________ TOTAL NO OF RESPONDENTS *100
CHAPTER-VI FINDINGS
1. From the survey it is found that every body is aware of HDFC life. 2. majority of the respondents are highly satisfied with the quality of HDFC life. 3. From the study it is found that when compared to other brands, HDFC life giving services to their customer in highly manner. 4. 65% of the customers are satisfied with the after sales service provided by GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 56
Customer Satisfaction towards HDFC LIFE HDFC life. 5. 4% customers are known about The HDFC life through print media, 2% customers are known about the HDFC life through television 64% through friends and 30% through dealers. 6. 39 % customers have strongly agreed that the HDFC life company is best company in a AP while 33% have not decided, 28% of disagreed. 7. 50 % of the people are regular customers and 50% people are not regular customers to the HDFC life insurance. 8. 10% customers are interested to buy the insurance directly from company while 47% through dealers, 3 % through brokers, 2% through friends and 38% through sales. 9. 2% have strongly agreed that the HDFC life company mainly concentrates on agricultural sector, while 44% have agreed and 54% have not decided. 10. 61 % are customers of HDFC life Company less than 6 month while 32% are since 6- 12 months, 3% 1to 2 years and 4% are since more than 8 years.38 % customers have strongly agreed that they share the information with the friends and relation while 61% have agreed and 1% has strongly disagreed. 11. 27% customers have strongly agreed that the company concentrates on the rural market more than urban market while 43% customers have agreed 26 % have disagreed and 4% have strongly disagreed. 12. 10 % have strongly agreed that HDFC life has highest market share in south India while 62% have agreed 28 % have not decided.
SUGGESTIONS
1. The company has to improve the communication of marketing strategies .
2. The company has to increase the sales promotion activities to counteract the competitors effectively. 3. The company has to enhance the service quality by being empathetic, responsive and reliable towards the customers complaints. GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 57
Customer Satisfaction towards HDFC LIFE 4. The company executives have to visit the regular customers to diagnose the problems and to find a feasible solution to them. 5. The employees of the company have to be more responsive towards the customers problems. 6. The company has to enhance the lead time to 3 weeks ( as the majority of the customers are requesting for it and other companies are offering it )
CONCLUSION
The HDFC Life Insurance company is having good perception, positive acceptance and healthy growth rate in the recent years. But the level of concentration has to increase with respect to :
Customer Satisfaction towards HDFC LIFE Sales promotional strategies to attract customers, improve communication strategies to communicate effectively, Empathetic to wards customers complaints, diagnose the customers problems and provide feasible solutions and more importantly enhance the lead time to 3 weeks as customers are demanding and the competitors are offering it. By doing the above the HDFC can achieve its short run and long term objectives certainly.
Questionnaire
Questionnaire for Measuring Customer Satisfaction 1. What are the brands you are aware mostly a) HDFC LIFE b) ICICI c) LIC [ ]
2. Are you aware of HDFC life? a a) Yes B) No
3. How did you get to know about the brand HDFC life insurance? [ a) Print media b) television c) friends / relatives [ ] ]
4. Which company products do you prefer to use? a) HDFC LIFE b) ICICI c) LIC
5. HDFC LIFE is best company in A.P. a) Strongly agree b) Agree c) Not decide d) Disagree e) strongly disagree 6. I am inspired to buy the HDFC life by a) Friends b) Relatives c) Neighbors d) Advertisements
7. Are you a regular customer to HDFC life Company ? a) Yes b) No
8. You are interested to buy the insurance from a) Company 9. HDFC b) Brokers life c) Friends mainly concentrates d) Disagrees
company
on [
rural ]
market
a) Strongly agree
b) Agree
c) Not decide
e) strongly disagree GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 60
10. Are you the customer of the HDFC LIFE Company? a a) Yes b) No
11.I am the customer of the HDFC LIFE Company since a) Less than 6 months d) More than 2 years 12.I share the information with my friends and relatives a) Strongly agree b) Agree c) Disagree d) Strongly disagree 13. Company concentrates on rural market more than urbanMarket. a) Strongly agree b) Agree c) Disagree d) Strongly disagree 14. HDFC LIFE Company provides better services than other Company. a) Strongly agree b) Agree c) Disagree d) Strongly disagree 15. I think HDFC LIFE Company has highest market share in south India. a) Strongly agree e) Strongly disagree b) Agree c) Not decide d) Disagree b) 6 to 12 Months c)1 to 2 years
BIBILIOGRAPHY Philip Kotler Marketing management, 11th edition, Publication, 1999. Marketing Research, 2nd edition, S.C. & Co.Publication, 2000.
D.D.Sharma
A.Singaravelu & R.Senapathy
Quantitative methods in business, 1st edition, Meenakshi Agencies, 1998. Statistical Techniques, 11th edition and S.C. & co.1997.
S.P.Guptha
WEBSITES: WWW.HDFCLIFE.CO.IN WWW.GOOGLE.COM

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Customer Satisfaction towards HDFC LIFE EXECUTIVE SYNOPSIS

NEED FOR THE STUDY:

OBJECTIVES OF THE STUDY

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 1

Customer Satisfaction towards HDFC LIFE

LIMITATIONS OF THE STUDY

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 2

Customer Satisfaction towards HDFC LIFE

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 4

Customer Satisfaction towards HDFC LIFE

Customer Satisfaction towards HDFC LIFE

WHY LIFE INSURANCE?

Customer Satisfaction towards HDFC LIFE

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 15

Customer Satisfaction towards HDFC LIFE

has been in business for 50 years now and has not

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 18

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 21

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 24

CHAPTER-II COMPANY PROFILE

HDFC Trustee Company Ltd.

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 30

Customer Satisfaction towards HDFC LIFE

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 32

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 36

Customer Satisfaction towards HDFC LIFE

CHAPTER-III Customer Satisfaction

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 37

Customer Satisfaction towards HDFC LIFE

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 40

Definition of marketing as follows:

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 41

CHAPTER-IV DATA ANALYSIS AND INTERPRETATION

Customer Satisfaction towards HDFC LIFE

Decision Print media Television Friends & Relatives Dealers Total

Percentages 4% 2% 64% 30% 100%

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 43

Customer Satisfaction towards HDFC LIFE

Graph 4.2 Know about the brand HDFC life

4% 2% 30% Print media Television Friends & Rel Dealers 64%

Percentages 39% 33% 0% 28% 0% 100%

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 44

Customer Satisfaction towards HDFC LIFE

Graph 4.3 HDFC life is the best company in A.P.

0% 28% 39% 0% S.Agree Agree Not decide Disagree S.disagree

Decision Friends Relatives Neighbors Advertisements Total

Percentages 29% 39% 8% 24% 100%

Customer Satisfaction towards HDFC LIFE

29% Friends Relatives Neighbors Advretisements

Decision Yes `No Total

Percentages 50% 50% 100%

Graph 4.5 Regular customers to HDFC life Company.

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 46

Customer Satisfaction towards HDFC LIFE

Decision Yes No Total

Percentages 68% 32% 100%

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 47

32% Yes No 68%

Decision Less then 6 Ms 6 to 12 Ms 1 to 2 Years More then 2 Ys Total

Percentages 61% 32% 3% 4% 100%

GLOBAL COLLEGE OF ENGINEERING & TECHNOLOGY,KADAPA 48

Customer Satisfaction towards HDFC LIFE